Businessmirror november 9, 2014

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U.N. Media Award 2008

BusinessMirror

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week ahead

ECONOMIC DATA PREVIEW Foreign exchange

n Previous week: The local currency fell in value against the US dollar in the previous week, crossing the 45 territory on Thursday. The peso started the week with a 2-centavo depreciation against the dollar on Monday, closing trade at 44.9 to a dollar. The trend continued on Tuesday, when the peso lost 1.5 centavos against the greenback to trade at 44.915 against the dollar. Wednesday’s trade has the steepest decline of value of the peso, with a loss of 5.5 centavos from the previous day’s trade to hit 44.97 to a dollar. The peso crossed the 45 territory and closed at flat 45 to a dollar on Wednesday before hitting 45.03 against the greenback at the end of the week. The general reason for the decline in peso value was pointed to the continued strong US sentiment fueling the robust dollar movement.

n Week ahead: In an earlier response to the BusinessMirror’s queries, Bank of the Philippine Islands (BPI) associate economist Nicholas Antonio Mapa said the dollar continues to “regain its prominence in the world market” due to the positive economic data it has been releasing. In the short term, the need may arise to look at economic data releases from the US, as well as possible policy moves (or nonmoves) from the European Central Bank.

Manufacturing data (September 2014)

Tuesday, November 11

n August’s manufacturing data: The Philippine Statistics Authority (PSA) reported that the volume of production in August grew at a slower pace of 7.5 percent, compared to the 8.1 percent seen in the previous month and the 17.5 percent seen in the same month last year. The PSA attributed the slower growth to the reduction of production in the wood and wood products sector, chemical products sector and food manufacturing sector.

n September’s manufacturing data: After several months of continuous cooling down of growth, manufacturing is expected to rebound in September this year due to the solid demand arising from the recovery of advanced economies, particularly the US.

Exports data (September 2014)

Tuesday, November 11

n August’s exports: The growth of the country’s exports slowed in August compared to that of the previous month but sustained its double-digit growth to hit 10.5 percent in August.

PSA data showed that the top gainers for the month include coconut; article of apparel and clothing accessories; machinery and transport equipment; ignition wiring sets and other wiring sets for vehicles, aircraft and ships; mineral products; metal components; chemicals; and electronic products. Top losers, meanwhile, include woodcraft and furniture production.

n September exports: In the latest issue of the First Metro Investment Corp. and University of Asia and the Pacific Market Call, the research tie-up expressed bullish views on the country’s exports, especially for agro-based products. Economists there also said the lifting of Manila’s truck ban may aid the exports’ continuous rise along with the solid growth of the US. Bianca Cuaresma

A broader look at today’s business

n Sunday, November 9, 2014 Vol. 10 No. 32

Moody’s cites stability of PHL banking system F

By Bianca Cuaresma

OLLOWING a wave of reforms implemented in the industry, the Philippine banking system is seen as having one of the strongest financial networks in the region.

In the inaugural publication of Inside Asia, a quarterly publication covering themes and research highlights of sovereigns and financial institutions in the region, Moody’s Investors Service deemed the country’s financial system as one of strength and stability compared to other countries in the region.

The publication not only reiterated that the Philippine banking system is the only one with a positive outlook in its banking systems; it also said that the local lending network is the only one in the region with an “improving” assess-

ment on two out of six parameters of banking strength amid bouts with volatility in recent months.

In particular, the Philippine banking system tops 14 countries whose banking systems have also been assessed based on operating environment, asset quality, capital, liquidity and funding, profitability and efficiency, and systemic support.

Out of these 14 countries in the region, only the Philippines has a positive banking-system outlook. The country’s banking

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How G.O.P. Congress could

boost U.S. economy

W

ASHINGTON—American voters made it clear on Tuesday that they’re worried about the economy, despite steady job gains, a robust stock market and faster economic growth this year. GlobalEye»C1

See “Moody’s,” A2

SDAs unchanged in October

D

EPOSITS parked in the Bangko Sentral ng Pilipinas’s special deposit account (SDA) facility remains unchanged a month after the Monetary Board (MB) decided to increase its interest rates in the low-risk, high-yield investment window for the second time this year.

Latest data from the central bank showed SDAs hit P1.12 trillion as of October 17 this year, more than a month since the BSP’s dual action of 25-basis-point hikes in both the policy rate and the SDA rate on September 11 this year.

The October 17 data is slightly lower than the previous week’s P1.14 trillion worth of deposits. It is higher than the end-September level of P1.07 trillion.

It is also significantly lower compared to the P1.44 trillion seen in October last year—a month before the deadline of the BSP’s mandate to push out all the investment management accounts (IMAs) out of the facility and into the cash stream.

In previous statements, the central bank blamed the mandate to push out IMAs out of the SDA facility to the rise of domestic liquidity in the country. Then, the following sustained high domestic-liquidity growth in the country’s stream warranted necessary action from the central bank.

As such, the MB decided to raise its SDA interest rate by 25 basis points, from 2 percent to 2.25 percent first on June 19 this

PESO exchange rates n US 45.0380 n japan 0.3911

BSP Gov. Amando M. Tetangco Jr. said the tamer inflation environment will give them a breathing room to pause monetary tightening and wait for the recent movements to settle into the system.

year to siphon off excess liquidity from the system and back to the central bank’s vaults.

Another 25-basis-point hike was made in September this year, from 2.25 percent to 2.5 percent on the same facility to further lure depositors into putting their money out of the cash stream and into the vaults to tame high domesticliquidity growth.

BSP officials earlier said they will still have to wait for these new tightening measures—including the most recent hike in SDA interest rates—to “work their way” through the market.

In his statement following the lower inflation rate seen in October this year, BSP Gov. Amando M. Tetangco Jr. said the tamer inflation environment will give them a breathing room to pause monetary tightening and wait for the recent movements to settle into the system. As such, the effects of the SDA-rate and policy-rate hikes are expected to be felt more in the coming months. Bianca Cuaresma

n UK 71.3087 n HK 5.8093 n CHINA 7.3684 n singapore 34.7650 n australia 38.6658 n EU 55.7435 n SAUDI arabia 12.0053 Source: BSP (7 November 2014)

News BusinessMirror

A2 Sunday, November 9, 2014

Yolanda...

the disaster survivors have become more glaring. No notable relief and rehabilitation has been done, calamity funds are being pocketed by government officials, while big corporations are set to benefit from the ‘rebuilding’ plans,” he said.

Crisostomo also lambasted Mr. Aquino for avoiding and disrespecting the victims by not visiting Tacloban.

Tacloban was the hardest-hit city during Yolanda, where the registered death toll was more than 2,000. Tacloban’s damage was placed at P202.67 million.

“The Aquino administration’s crimes against the people of Tacloban continue until now,” Crisostomo said.

Citing data from IBON Foundation, Crisostomo said it is “infuriating that only 364 houses were built by the government a year after the tragedy.”

“That is only 0.03 percent of the

ICTSI...

Joblessness...

continued from A8 1.2 million houses destroyed by the storm. Only 213 classrooms were built out of the 19,648 destroyed.

Mr. Aquino should definitely explain to the people where the billions for reconstruction went,” he said.

Anakbayan also assailed the government’s “master plan” as “disaster capitalism for Aquino cronies” where big corporations are set to benefit, and said agriculture and agrarian reforms are neglected in the government plan. The group also condemned the use of the tragedy to further militarize the typhoon-affected areas.

“As military presence increased in the typhoon-devastated areas, cases of military harassment, theft and other humanrights abuses were reported.

Peasant leaders Jefferson Custodio in Carigara, Leyte, and Rodolfo Basada in Pinbacdao, Samar, have been killed by suspected state elements,” Crisostomo said.

“We have sustained improvement in the labor market, but what’s frustrating is that it’s not yet generating wage growth,” said Michelle Meyer, senior US economist at Bank of America Corp. in New York.

Limited wage gains partly explain Americans’ dim perceptions of the economy, which helped Republicans capture control of the Senate from Democrats and solidify their majority in the US House during the midterm elections this week. The results ensured that the GOP will control both chambers of Congress for the remainder of President Barack Obama’s term.

When voters talk about the health of the economy, “they’re talking about their paychecks and not their stock portfolios,” said Jared Bernstein, a senior fellow at the Center on Budget and Policy

continued from A8

technology compounded with best industry practices, absolute transparency and agility in all our processes, and excellent client service, make CMSA the best port services option on Mexico’s Pacific Coast,” Gutiérrez said.

He said container traffic has increased, even surpassing productivity targets for the new terminal, since it started operating in August. The formal inauguration of the port, however, happened in November last year.

“Today we can affirm that our offering is the best one in the port, because of the tangible competitive services we offer our clients. For example, our facilities include well-planned

Moody’s...

and strategically ordered spaces that provide greater amplitude compared to other terminals,” Gutiérrez said.

The SCT-2 boasts of modern facilities. The berth is equipped with four super post-Panamax quay cranes, the largest in the ports industry, long enough to reach a vessel of up to 22 containers wide. CMSA’s operations use the Navis4 system, widely regarded as the industry’s best software, supporting fully automated operations and processes.

ICTSI is the largest port operator in the Philippines and has a portfolio of 29 container terminal operations in 21 countries in six continents.

Priorities, a Washington-based research group. Economic growth, “while solid and reliable at this point, is not showing up in median pay in the way it needs to for people to feel reconnected to the overall improvement,” said Bernstein, a former chief economic adviser to Vice President Joe Biden.

percent, the lowest since September 2008, from 11.8 percent.

Fed officials cited further labor market progress last week, when they ended monthly asset purchases that bloated the central bank’s balance sheet to more than $4 trillion in a bid to stimulate growth. The policy-making Federal Open Market Committee referenced “solid job gains and a lower unemployment rate.”

New job

Global efforts

continued from A8

measure pay climbed 3.1 percent in the year before the recession began in December 2007.

Wages disappoint

Zara Rahim, 24, is among those seeing an improvement. She just landed a communications job at a technology start-up company in San Francisco and will move there after working in Washington for a digital strategy firm the last two years.

“I think things have gotten better,” she said. “A lot of Americans are disappointed with how slowly it’s going, but over time it’ll get better.”

The underemployment rate— which includes part-time workers who’d prefer a full-time position and people who want to work but have given up looking—declined to 11.5

continued from A1

system is also the only one with an “improving” assessment on the operating environment and systemic support aspect. All other parameters—including asset quality, capital, liquidity and funding, and profitability and efficiency—are marked “stable” for the Philippine banks.

Following the Philippines is the South Korean banking system with a generally stable banking outlook with the liquidity and funding parameter marked as “improving.”

The banking system of Japan, Taiwan, Malaysia and Sri Lanka also got a “stable” rating.

Even though other countries have one or two “deteriorating” as-

sessments on the parameters, they are still deemed as “stable” in terms of the general banking system outlook. These countries include Thailand—with a deteriorating operating environment for banks, China—with deteriorating asset quality and profitability and efficiency; and Indonesia—with deteriorating operating environment and asset quality.

The rest of the banking systems, including Singapore, Hong Kong, India, Mongolia and Vietnam got a negative outlook as they have three or more parameters marked as “deteriorating.”

The Bangko Sentral ng Pilipinas (BSP) has been implementing

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

NOVEMBER 9, 2014 | SUNDAY NORTHEAST MONSOON AFFECTING NORTHERN AND CENTRAL LUZON. (AS OF NOVEMBER 8, 5:00 AM)

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.

SBMA/CLARK 24 – 31°C METRO MANILA 22 – 32°C

TAGAYTAY CITY 20 – 29°C

MONDAY

NOV 11 TUESDAY

21 – 31°C

23 – 31°C

TUGUEGARAO

19 – 30°C

20 – 30°C

20 – 31°C

21 – 31°C

Today’s employment report showed the share of the population with jobs rose to 59.2 percent in October, the highest since July 2009, from 59 percent the prior month.

“The US is on a roll, the momentum is pretty strong,” said Nariman Behravesh, chief economist of IHS Inc. in Lexington, Massachusetts, and the second-best forecaster of payrolls over the past two years, according to data compiled by Bloomberg.

reforms in the local banking system, as what other senior monetary officials would call “taking advantage of the time of strength” to implement safeguards for future potential risks that may arise in the banking system.

One of the more recent major changes in the system include the transition of the banking system to Basel 3 capital accord in January this year.

Just this month, the central bank implemented three reforms for banks to comply with, involving increased minimum capitalization, credit-risk management improvements and assessment, and strengthening of domestic systemically important banks—or the so-called too-big-to-fail financial NOV 7 institutions.

In a recent speaking engagement, BSP Deputy Governor for the Supervision and Examination Sector Nestor Espenilla Jr. said the BSP is not yet through with the reforms for the industry.

“So much more can be discussed and be explored. This is not the end of reforms. As you know, we have been active since the last Asian Financial Crisis. So there has been a series of reforms that the BSP has been introducing. And there is more to come—all geared toward preserving the strength and stability of our banking system,” Espenilla said.

“I think this simply highlights that the concerns of the industry are not one and done but are continuously evolving,” NOV he said.

7

NOV 12

WEDNESDAY

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 24 – 31°C

TACLOBAN CITY 24 – 32°C

TACLOBAN

23 – 31°C

23 – 32°C

23 – 30°C

21 – 32°C

CAGAYAN DE ORO

23 – 32°C

24 – 32°C

24 – 33°C

25 – 31°C

24 – 32°C

25 – 32°C

25 – 32°C

24 – 33°C

24 – 31°C

24 – 32°C

23 – 33°C

ZAMBOANGA

METRO CEBU 25 – 32°C CAGAYAN DE ORO CITY 23 – 32°C ZAMBOANGA CITY 24 – 32°C

PUERTO PRINCESA

ILOILO/ BACOLOD

SUNRISE

SUNSET

MOONSET

MOONRISE

5:54 AM

5:25 PM

7:48 AM

7:34 PM

21 – 29°C

24 – 32°C

FULL MOON HALF MOON

NOV 7

25 – 32°C

25 – 29°C

NOV 14

11:16 PM

CELEBES SEA

11:03 PM

1.10 METER

Cloudy skies with rain showers and/or thunderstorms.

25 – 31°C

24 – 32°C

25 – 32°C

Partly cloudy to at times cloudy with rain showers.

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SABAH

6:18 AM

-0.18 METER

Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

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

METRO DAVAO 24 – 33°C

LOW TIDE MANILA HIGH TIDE SOUTH HARBOR

6:06 AM

25 – 31°C

NOV 12

WEDNESDAY

21 – 31°C

24 – 32°C

24 – 31°C

TUESDAY

25 – 30°C

SBMA/ CLARK

25 – 29°C

NOV 11

24 – 32°C

14 – 23°C

LEGAZPI

MONDAY

24 – 31°C

14 – 23°C

20 – 28°C

NOV 10

22 – 32°C

13 – 22°C

19 – 28°C

Population working

METRO CEBU

LEGAZPI CITY 25 – 29°C

ILOILO/ BACOLOD 25 – 32°C

3-DAY EXTENDED FORECAST

BAGUIO

TAGAYTAY

that make up about 70 percent of the economy. Ford Motor Co., Toyota Motor Corp., Fiat Chrysler Automobiles NV and Nissan Motor Co. reported October sales that exceeded analysts’ estimates as buyers emboldened by falling gasoline prices flocked to sport-utility vehicles.

“The US economy has steadily improved all year,” Kurt McNeil, US sales chief at General Motors Co., said in a November 3 statement. “Now we are poised for a stronger expansion backed by an improved job market, higher consumer confidence and lower fuel prices.”

Unlike the US, central bankers in Europe and Japan are battling to shore up growth. Mario Draghi on Thursday sought to restore the faith of investors in the European Central Bank’s (ECB) ability to revive its ailing economy. He said the ECB will buy assets for at least two years and study further stimulus.

His comments came days after the Bank of Japan extended its own stimulus campaign.

Gains in employment in the US, and more recently a drop in prices at the gas pump, are helping to bolster consumer sentiment and underpin the household purchases

METRO DAVAO

TUGUEGARAO CITY 20 – 31°C BAGUIO CITY 14 – 22°C

NOV 10

METRO MANILA

LAOAG

LAOAG CITY 20 – 31°C

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EconomySunday

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

BusinessMirror

Sunday, November 9, 2014 A3

PHL growth fails to translate to better, equitable health care

I

By Jonathan L. Mayuga

NEQUITIES in accessibility, availability and affordability of health services across the country still exist, a senior research fellow of state think tank Philippine Institute for Development Studies (PIDS) said.

PIDS senior research fellow Celia Reyes said that the recent economic gains have not translated to better and equitable social outcomes, particularly in the health sector.

She said that people in Luzon, particularly in the National Capital Region (NCR), generally have better access to health services and facilities compared to those in the Visayas and Mindanao.

Citing official government data, she said there are more health facilities and health professionals in Luzon, particularly in the NCR compared to Visayas and Mindanao.

As an example, she said that only onethird of the provinces are able to meet the required one bed for every 1,000 people ratio, and most of these hospitals, she said, are in the NCR. Reyes also underscored the uneven distribution of health labor force across the country. She said that there are 28 physicians for every 100,000 people in Metro Manila, whereas there are only 12 per 100,000 in Central Visayas. In Bicol

region, the ratio is lower at 10 physicians per 100,000 and even lower in the Autonomous Region in Muslim Mindanao at only three per 100,000 population.

Moreover, she said that when it comes to health facilities, not all hospitals have x-ray and ultrasound machines. Hospitals in Metro Manila are more equipped compared to other regions. Aside from this, not all hospitals have complete basic emergency equipment.

Only 56 percent of hospitals in Metro Manila have complete basic emergency equipment while for the rest of the regions, less than half of hospitals have these facilities.

“Access to health facilities translates to better health situation. For example, in NCR where people have better access to health services and facilities, health indicators such as infant mortality, maternal health, antenatal care, etc., are also better,” she said.

These regional disparities, she said, need to be addressed to continue the gains that have been achieved in the

health sector. She noted that the government should put more resources and capacity-building programs for regions that persistently trail behind in terms of health indicators.

Reyes, nevertheless, noted improvements in the overall health status among regions from 2008 to 2013.

Reyes said that by 2011, the rates in infant-mortality rate, malnutrition, antenatal care, immunization, and birth delivery by health professional have gone down and have become slightly more equitable across the regions.

She also said that except on acquired immune deficiency syndrome-human immunodeficiency virus (AIDS-HIV) infection, the Philippines remains on track in achieving health-related Millennium Development Goals, particularly targets related to reducing child mortality, as well as combating malaria and tuberculosis.

“There has been no significant difference for the maternal mortality figures between 2006 and 2011 and given this progress, it could be very difficult for the country to achieve the goal by 2015. The indicators for HIV AIDS are also not favorable given the increasing number of reported cases,” Reyes added.

Reyes spoke at a regional forum on Philippine Health Sector Performance in Cebu City recently, where she presented the study, which is part of a project by PIDS and the Department of Health that looks into the government’s Kalusugang Pangkalahatan, or Universal Health Care program, a component of the Health Sector Reform Agenda in 2010.

Business chamber seeks to revive Islamic banking

T

HE Davao City Chamber of Commerce and Industry Inc. (DCCCII) is pushing to revive or create another Islamic financing institution that caters to the needs of Muslims.

DCCCII President Antonio dela Cruz said micro, small, and medium enterprises are looking for cheap source of financing and that Islamic banking is a good source of financing for them.

“The government is looking into it [Islamic financing] because it’s a good source of financing.

We already have the Al Amanah Islamic Investment Bank of the Philippines but, it just needs to revive or improve,” he told the BusinessMirror.

Cruz added that there are foreign banks already interested in offering Islamic banking in the Philippines. “The Saudi government is interested, as well as other Malaysian banks. We heard there are interested investors in Al Amanah. We’re very happy that all sectors were doing something for Mindanao,” he added.

He said Malaysia’s Maybank is doing good business here in the Philippines and that they have good product loans being offered.

We just need to improve the existing Islamic bank to become more competitive to cater to our brother Muslim and also Christian, Cruz said.

“Al Amanah is managed by Development Bank of the Philippines. It boils down to the one managing it,” he said.

Cruz also said the chamber is looking forward to Islamic banking and that the Monetary Board

can decide on what needs to be done. “We believe that the Monetary Board is looking into this.”

“It [Islamic banking] will be part of the Bangsamoro basic law and it’s up to Congress [to pass the law]. We will wait for law and I hope it will be passed and we praise Allah. We are optimistic that it will happen,” he said.

Early this year, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. discussed the opportunities and challenges in Islamic banking and finance in the country.

He said the foundation of Islamic finance is the principle of risk sharing. “Risk sharing is the justification for the fundamental requirements of profit and loss sharing,” Tetangco said.

The guarantees or assurances of return of capital and return on capital, rewards without commensurate risk and preferential awards are all not permissible in Islamic finance.

“Trading and partnership or joint-venture arrangements are thus the appropriate risk-reward paradigms,” he added.

Another feature of Islamic finance is the tenet that financial transactions should be supported by genuine productive economic activity that subscribes to the ethics of the Islamic faith.

“This principle can serve to reinforce links between finance and the real sector, reducing the perils of unbridled innovation excessive and risk taking. In this context, it contributes to financial stability in the system,” Tetangco said. Genivie Factao

SundayV

Busine

A4 Sunday, November 9, 2014 • Editor: Alvin I. Dacanay

editorial

Betrayal in PHL

J

OHN MAYNARD KEYNES, perhaps the greatest economist of the 20th century, gave the government a highly expanded role in the political economy of capitalism, where, before, it had little beyond the promotion, protection and regulation of profit-making.

Initially addressed to mature industrial economies, Keynesian economics can also be applied to underdeveloped economies, as, indeed, it has been.

Keynesian economics, in its simplest form, says the government must create or increase demand for goods and services, so that the productive sector will respond by increasing the supply. By doing this over time, the government will not only rouse productive impulses in the economy, but also strengthen them for long-term growth and transformation.

The government can perform this role by increasing its budgetary expenditure on what we now call infrastructural and suprastructural facilities, even to the point of creating a deficit in the budget.

The adoption of Keynesian economics in developing countries created and opened up tremendous spaces for all sorts of people to aspire for public service. But, now, there is a fly in the ointment. The people, after being given the opportunity to help execute this enlarged role of the government in economic affairs, seem bent on proving that they are unworthy of it. The higher one goes up the totem pole, the deeper the ignorance of this critical role of the government. Here, government officials enjoy the privileges of high office without knowing the obligations attached to them.

Unpardonable as this ignorance is, it is just dust in the balance when compared to what apparently preoccupies their minds 24 hours a day, seven days a week: the plundering of billions upon billions of the people’s money to gratify their greed. Whatever it does to their grotesque character, this leaves the government with that much less resources to carry out its developmental function. As a consequence, development is slowed down, if not halted altogether.

This is what is happening in the Philippines. Members of the civil service, as far as can be judged from the records, remain loyal to their mandate. But it is the duly elected officials and their appointees to high government offices, oddly, who are strongly suspected of being guilty of betraying the government’s role in development.

How do we solve this problem? We can begin by blaming ourselves for electing to high office people who are clearly committed to the pulverization of our fundamental interests. Perhaps, we might also wonder about the soundness of an electoral process that allows every Pedro and Maria to cast his or her vote.

Are we justified in expecting a justice system that is continuously badgered and bludgeoned by the powers-that-be to make it subservient to their will to dispense justice? These are difficult questions. We leave them to political scientists and other experts to answer.

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Sunday, November 9, 2014

EADING mass-housing firm 8990 Holdings Inc. has come up with an enviable growth strategy that, if successful, could partially solve the Philippines’s housing backlog, which now stands at 4 million units. This strategy involves a “halfway house” concept, which seeks to uplift the living conditions of working people in Metro Manila who are either renting bedspaces, living in dormitories or sharing apartment rooms.

8990 Holdings President and CEO Januario Jesus Gregorio B. Atencio III told me recently that the listed company, whose earnings grew by a staggering 74 percent from P580 million in the third quarter of 2013 to P1.02 billion in the same period this year, is planning to build condominiums in the metropolis that would allow members of the working class to transform their “present rental expense into a monthly amortization toward the ownership of a unit that is cleaner, more convenient, newer, more secure and more flood-free.”

Atencio even has a slogan for the halfway-house concept: From urban decay to urban Deca (the company’s brand name). He’s so enthusiastic about it that he is thinking of marketing the inexpensive housing units that he and other company officials have envisioned through social media.

8990 Holdings has been electrifying the investing world lately, with Malaysian sovereign wealth fund Khasana Nasional Berhad and top American fund manager Texas Pacific Group each putting P2.9 billion into the housing firm. In fact, Atencio went to Singapore over the weekend to conduct a presentation to an investor, who wanted to look at the company’s investment model, which has a social-enterprise component.

One hundred percent of those who buy 8990 Holdings’s housing units (each costs less than P1 million) are “gainfully employed and earning at least P30,000,” said Atencio, who zealously attends all of the Ateneo de Manila University basketball team’s University Athletic Association of the Philippines games. The reason for the takeup? Those who buy just switch their current rental expense into amortization for the units they

would eventually own. That is what the company offers, Atencio said with a smile on his face.

Globe’s challenge for PLDT

ANOTHER battlefront has emerged in the country’s telecommunications war. This time, it’s on domestic Internet protocol (IP) peering, wherein the need for domestic Internet traffic to go out of the country first before going back in is eliminated. Unfortunately, that is not happening in the telecommunications infrastructure of the Philippine Long Distance Telephone Co. (PLDT), according to Globe Telecom.

Francisco Claravall IV, Globe vice president for product development and management, recently told PLDT not to allow Internet traffic to be diverted out the country first before letting it back in if the connection is only between one domestic point— say, Dagupan City in Pangasinan province—and another (Zamboanga City, for example). He said that, if the telecommunications giant does this, it would greatly impact Internet speed.

“Even the Department of Science and Technology supports this position,” Claravall said, “as it allows Internet exchange through the Philippine Open Internet Exchange [PHOpenIX], the only Internet-exchange facility operated by a neutral organization—in this case, by the government. In the middle of this year, Globe challenged PLDT to make good on its claim of supporting IP peering by connecting to PHOpenIX. Citing a report that the National

The Passover of the Jews was at hand, and Jesus went up to Jerusalem. In the temple He found those who were selling oxen and sheep and pigeons, and the money-changers at their business.

And making a whip of cords, He drove them all, with the sheep and oxen, out of the temple; and He poured out the coins of the money-changers and overturned their tables.

And he told those who sold the pigeons, “Take these things away; you shall not make my Father’s house a house of trade.”

His disciples remembered that it was written, “Zeal for thy

Telecommunications Commission shared during a Senate hearing on the subject, the Globe official said that, in Singapore and South Korea, Internet traffic is mostly generated internally, thanks to their effective IP-peering policies. As a result, Internet speed is enhanced.

“In fact, the issue has fired up even ordinary customers, as they have become interested in [such] a technical subject as IP peering,” Claravall said.

It would be interesting to see how PLDT would respond to Globe’s challenge in light of the government’s findings that domestic IP peering offers benefits to the public.

RFM’s Q3 performance disappoints

CONCEPCION-LED RFM Corp. has disclosed disappointing financial results for the third quarter (Q3), which the listed company is blaming on the recent cargo congestion at the Port of Manila (the result of the Manila city government’s daytime truck ban), and the red tape at Bureau of Customs, which needlessly held up shipments.

RFM’s net income grew by only 10 percent for the first nine months of the year, posting earnings of P578 million. This falls far short of the P1 billion that company officials had projected to get by year-end.

RFM may have reason to blame the cargo congestion as the reason for its underwhelming Q3 performance, but, still, stock-market pundits are certainly not happy about it.

house will consume me.” The Jews then said to him, “What sign have You to show us for doing this?”

Jesus answered them, “Destroy this temple, and, in three days, I will raise it up.”

The Jews then said, “It has taken 46 years to build this temple, and will You raise it up in three days?” But he spoke of the temple of his body.

When, therefore, he was raised from the dead, his disciples remembered that He had said this; and they believed the scripture and the word, which Jesus had spoken.— John 2:13-22

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, November 9, 2014 A5

Is the GOP good for Japan?

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Bloomberg View

By William Pesek

ERHAPS, no one in Asia is happier than Japanese Prime Minister Shinzo Abe and his ruling Liberal Democratic Party (LDP) to see Republicans take over control of the United States Congress.

Japan’s conservatives tend to prefer their American counterparts, who favor national security and nuclear power, not to mention a strong stance against China.

For Abe, the prospect of Mitch McConnell of Kentucky running the Senate must seem like great news for US-Japan relations and his own standing.

Not exactly. There are at least two snags awaiting Abe’s government as Republicans measure drapes on Capitol Hill: a plummeting currency and the Trans-Pacific Partnership (TPP) trade deal, which has stalled in large measure because of Japan’s reluctance to open up its agricultural and automotive sectors.

October 31’s dramatic move by Bank of Japan Governor Haruhiko Kuroda to increase the central bank’s already massive bond purchases has driven down the yen to a seven-year low. While that’s good news for Japanese exporters, it also threatens to touch off a fresh currency war in Asia. Chinese President Xi Jinping is sure to bring up Japan’s beggar-thy-neighbor policies when wooing other Asian leaders at this week’s Asia-Pacific Economic Cooperation summit in Beijing. The move could also cause friction with Washington.

“Kuroda’s Halloween surprise smacks of currency manipulation, and the GOP [Grand Old Party] has a track record of not taking kindly to competitive devaluations,” says Jeff Kingston, head of Asian studies at the Tokyo campus of Temple University.

At the least, Congress is going to have a harder time browbeating China to boost its exchange rate when Japan is allowed to do precisely the opposite.

TPP puts Abe in a tough corner, too.

There’s rising optimism that Republicans will give US President Barack Obama the “fast track” authority he needs to ratify the 12-member trade deal, which excludes China. The catch, though, is that conservatives in Washington may demand that Japan go all-in.

Thus far, Abe’s negotiators have been able to stall even on what might be called TPP Lite, involving only modest concessions on autos and agriculture, because it didn’t look like Obama would be able to clinch a deal in Washington. Republicans could remove that excuse—and might resist giving Japan special treatment. TPP Lite could well be off the table soon.

“Problem is,” Kingston says, “this impinges on powerful vested interests that are well represented in Abe’s own party, so he will be on the hot seat on trade, while he’s also trying to finesse structural reforms,” such as loosening labor markets, pulling more women into the work force and strengthen-

ing Japan’s corporate governance. Played right, pressure from the US could be great news for Abe, who, advisers say, views TPP as a Trojan horse of sorts. Once bound by a signed agreement, Japan will, in theory, be forced to shake up inefficient sectors that have long been coddled by political patrons in the LDP. As Nicholas Smith, a strategist at CLSA in Tokyo, puts it, the trade pact represents potentially “a big step for a nation where rice farmers and other groups have long blocked efforts to lower import barriers.” Smith believes that Abe’s ministers “are keen to get TPP done, and regard this as their chance.”

The question is whether the prime minister’s own party, which has long been financed by the farm lobby, will go along. Parliament members facing elections next spring will, no doubt, have misgivings. There’s also a view in Tokyo that Abe never really expected TPP to get through the US Congress, and that he’s merely been feigning support to bolster his reformist bona fides. If that’s true, he’ll have a hard time keeping up the charade if the Republicans lift obstacles to a deal in Washington.

Abe would be wise to take on Japan’s “sacred cows” while he still has the approval ratings to do so. It would be an important down payment on boosting Japan’s competitiveness—and keeping Japan’s erstwhile friends in Congress happy, too.

“Curse me, criticize me, but I believe I must do the right thing.”

—President Aquino, defending the slow and deliberate pace that his administration is taking in rebuilding the areas hit hard by Supertyphoon Yolanda (international code name Haiyan), in a speech delivered during his visit to Guiuan town, Eastern Samar province, on Friday. The super storm first made landfall in that municipality on November 8, 2013.

Once strangers, now brothers

By Franziska Holzschuh The Philadelphia Inquirer (TNS)

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NE day a new girl entered our classroom. I don’t remember her name, but she must have been 7 or 8, as we were.

I still recall the way she looked: Very fair skin, dark curly hair, a bright red coat that had been fashionable several years ago. She spoke with an unfamiliar dialect and smelled strange.

She was different, we immediately noticed. That girl came not only from another region, but another country; she originated from the German Democratic Republic (GDR), often referred to as East Germany.

We, born and raised in the Federal Republic of Germany (West Germany), felt uncomfortable and were not sure if we liked the newbie.

Rather not.

It was 1989. A couple of weeks before her arrival, on the evening of November 9, the Berlin Wall had been torn down. Thousands of East Berliners had marched to the Wall and made the surprised and overwhelmed border guards open the gates.

At a moment’s notice, two nations—that once had been one— met, elated, on the streets of Ber-

lin, and soon the same was happening in other places of the two German countries.

But, over the previous four decades, they had become strangers.

And people soon realized how far apart they were.

West Germans were startled by Easterners who invaded supermarkets with eyes wide open, did not know what a honeydew melon was, and loaded their carts with exotic fruit and vegetables. It sounds like a myth, but some of my friends witnessed this: Not long after the Wall fell, bananas were sold out in many supermarkets close to the border.

For East Germans, the Wende— the collapse of communist East Germany and the creation of a reunified German state in 1990—meant more than cleared grocery shelves.

They gained freedom, but had to cope with a new system—politically, socially and economically. Soon, in the East, the unemployment rate hit the roof, especially as the welleducated moved to the wealthy West; those who stayed feared to fall behind.

This happened in most former socialistic countries.

I will never forget my first journey to Eastern Europe. My parents took

IN this November 10, 1989, file photo, Berliners sing and dance on top of the Berlin Wall to celebrate the opening of East-West German borders. Thousands of East Germans moved to the West after East German authorities opened all border-crossing points to West Germany. In the background is the Brandenburg Gate. AP

me as an 8-year-old on a day trip to Czechoslovakia, now the Czech Republic. They wanted to visit Mariánské Lázne, a spa town famous for its 19th-century noble mansions and beautiful parks.

It was a gray and rainy day, the bumpy streets did not deserve to be called streets, and dark smoke poured out of the chimneys to the sky. Buildings were rundown, more ruins than glorious houses. Ev-

erything—including the people— looked incredibly poor.

I started to cry, desperate to get back to my clean, prosperous West German home.

Since then, I have returned to the East several times.

It has changed a lot over the years.

Though it has not yet reached the level of the West—the unemployment rate is still higher, as is the decline in population, and the average income

is lower—the economy in East Germany is steadily catching up.

Cities in the east, like Dresden, Leipzig or Weimar, are spruced up, beautifully renovated and popular destinations for many tourists. Berlin, the once-divided city, is the place to be—not only for Germans, but international hipsters. Some of the hottest areas, like Prenzlauer Berg, used to be in the GDR. The reunification has not been easy: Both East and West Germans had to contribute their parts. The achievements were costly, financially and emotionally. But it has been worth it.

Twenty-five years after the Wende, when I meet someone from the East German states, I sometimes can still identify the origin by listening to the dialect, just as I would recognize a Bavarian or Swabian.

I know my counterpart might have another background and other experiences, habits, likes and dislikes. But that does not make him a stranger.

Despite all the differences, we are both Germans, part of the same nation. Finally.

Franziska Holzschuh is a reporter at the German daily newspaper Nuernberger Nachrichten.

A tale of two loafers to keep you on your toes

By Reg Henry

Pittsburgh Post-Gazette (TNS)

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HIS is the story of a husband who became distracted—as hardworking husbands sometimes do—and wore two different brown loafers to work, one with tassels and one without.

No better time exists for this story because, in some quarters, weeping and gnashing of teeth have greeted the results of the United States midterm elections—and not just among the people who make the political advertisements on television and are forced to return to honest employment.

So, in the interest of smiling bravely through our tears, let us then consider the husband who got off on the wrong foot just the other day.

He did not know that he was

wearing two different shoes until midmorning, No coworker alerted him. As it was just a normal workday morning in America, everybody was completely oblivious. He just happened to glance down and noticed tassels.

That’s funny, he said to himself, I did not mean to put on my party shoes. Then he looked at the other shoe and noticed the absence of tassels—and he realized that, at least, he had gotten it half right. He also noticed that, in every other aspect, these brown loafers were in completely different styles.

He was a little embarrassed, but only a little, because this is America, and people wear all sorts of outlandish clothing without anybody saying anything. Just visit any golf course to confirm this observation.

So he went on with his day. He

heard no guffaws in the cafeteria, saw no stares in the street as he walked to his Rotary Club meeting. Once there, the Rotarians made no jokes at his expense—and as a group they love a joke. His feet just weren’t drawing any interest.

By midafternoon, he decided to risk telling his wife. This was dangerous, because she is always on the outlook for evidence that he is “losing it,” as she likes to say. But as he had lost only one shoe in his distraction, he thought she might think it funny.

She did. She roared with laughter.

But then her voice changed and the phone call suddenly became very solemn. “Tonight we are going to a reception at the Duquesne Club for former Australian Prime Minister Julia Gillard and then we are going to hear her lecture. You cannot go without matching shoes.”

The husband said no worries— the Australians are an informal people and the ex-prime minister would not mind if one man in the crowd was one loafer short of a load. But the man’s wife minded. She minded very much, because if her husband were to appear in public with ill-matched loafers, everybody, of course, would blame her, in the unlikely chance they noticed.

Besides, she feared that appearing in the superior confines of the exclusive Duquesne Club with the wrong shoes would set off some sort of alarm. Butlers would appear and footmen would rush forward and speakers would blare, “Class impostor alert! Class impostor alert!” and she would be mortified.

So that night she brought the missing loafer (the one with the tassels) with her and the husband duti-

fully put it on, silently asking himself, “Am I a man or a mouse?” and imagining then some squeaking. So it was that Gillard and all the people and all the butlers and footmen were none the wiser.

There is a moral to this admittedly odd column, boys and girls. When you are in kindergarten and they teach you how to tie your shoelaces, pay special attention. A person who ties his laces will not make the same mistake as our loafing husband did.

When you tie laces, you look into the eyelets of the shoes and see fashion security there.

There’s a moral here for postelection adults, too. You may be disappointed with the results, but you can still put your best foot forward without fear of embarrassment or marital correction, not like one husband I know. (OK, it was me.)

NewsSunday

A6 Sunday, November 9, 2014 • Editor: Vittorio V. Vitug

BusinessMirror

WB to continue rural projects in Mindanao

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By Manuel T. Cayon | Mindanao Bureau Chief

APALONG, Davao del Norte—A World Bank senior executive said assessments of the bank’s rural development projects in Mindanao that are replicated in many other countries have strengthened the bank’s resolve to continue the projects, but this time on a national scale.

With a fund of P5 billion, World Bank’s Philippine Rural Development Program will start next year as a follow through to the exit of the Mindanao Rural Development Program (MRDP).

Axel van Trotsenburg, World Bank vice president for East Asia and the Pacific Region, exhorted

Mindanaoans “to demonstrate how these projects have improved lives and encouraged more community participation.”

“Now, you can fight for your next projects,” he told tribal leaders in Barangay Dagohoy in Talaingod town, an Ata-Manobo community that has become a recipient of livelihood and

infrastructure projects from several national and international donors.

The MRDP has constructed a P3.5-million elevated one-lane bridge in this farming village where residents have to cross the Semong River to do their regular farm work, transport their farm produce, and to go to school. It also rehabilitated an 8-kilometer farm road. Both projects cost P10.2 million.

The MRDP briefed Trotsenburg on Friday before he went around Kapalong to take a look at the MRDP and projects of the Department of Social Welfare and Development.

In the briefing Trotsenburg was told that reports from all over Mindanao indicate that the projects have indeed uplift conditions of the rural poor.

“What is commendable in these projects is the community who voices out what projects they want,” he said.

In an agrarian-reform community in Barangay Sampao, 15 km west of this town, the World Bank team and MRDP senior officials were told how a P2.3-million drying faclity for

food-grade banana flour allowed an Ata-Manobo woman and other former banana plantation workers to be trained in managing the cooperative and transacting business.

The Ata-Manobo woman said she was able to send her children to high school and college, buy a motorcycle and open a bank account.

Trotsenburg said these accounts of the rural poor across many countries engaged in fighting their respective rural poverty kept coming in as testimonies of how community-designed projects would go far in helping the poor themselves.

In encouraging the countryside residents to speak out what they want, he said the World Bank “would continue to assure that there’s funding for these projects.”

Trotsenburg attended the November 5 and 6 Philippine Development Forum on the Bangsamoro in Davao City, where he also assured of full World Bank support “to the government-Moro Islamic Liberation Front [peace] negotiation.”

Comprehensive job protection for Filipino seafarers sought

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BILL providing comprehensive protection to thousands of sea-based Filipino workers, following reports that they may face ban in European ships over inadequate training and ferry safety issues, has been filed in the Senate.

“Despite Filipino seafarers’ huge contribution to our economy, the glaring failure of existing labor laws and legislation to safeguard their specific needs is very apparent, especially now with the possibility of Filipino seafarers being blacklisted in European ships,” Sen. Edgardo “Sonny” Angara said.

Recent news reports indicate that the British government has stated that it will not allow Filipino maritime professionals to work and operate in European ships unless concerns regarding training are addressed and substantial reforms in the safety operations in the sea are put in place.

Currently, there are approximately 80,000 Filipino seafarers aboard European ships based on the data from the British embassy in Manila.

The Philippines has been the world’s top supplier of seafarers since 1987, accounting for some 400,000, or a fourth of the 1.5 million seafarers worldwide.

“The jobs of our hardworking seafarers are now at risk because they receive inferior training resulting to unsatisfactory compliance with international standards.

“Our proposed measure seeks to address this issue by mandating concerned government agencies to actively promote, professionalize and prepare our seafarers for today’s competitive maritime industry,” Angara said.

Under Senate Bill 1986 or the Magna Carta of Filipino Seafarers, first on the list of rights of Filipino seafarers is their right to educational advancement and training at reasonable and affordable costs.

The bill provides that the government should pursue grant programs such as scholarships, subsidies, loan assistance and other measures that will harness the skills of Filipino seafarers toward greater competitiveness to new demands in the industry.

Filipino seafarers must undergo and successfully complete the required basic training under the International Convention on Standards of Training, Certification and Watch-keeping (STCW) for Seafarers

www.businessmirror.com.ph

Lawmaker says seven more firms volunteer to join ILP

By Jovee Marie N. dela Cruz

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parTy-list lawmaker on Saturday said that seven more large corporations have volunteered to generate their own electricity consumption to address the looming power shortage in the summer of next year.

House Deputy Minority Leader and Liquefied Petroleum Gas Marketers’ Association Rep. Arnel Ty said the electricity saved by these corporations could be utilized by other consumers under the Interruptible Load Program (ILP).

ILP is a voluntary program whereby businesses, such as malls and factories that have their own generators, can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors.

Ty identified the seven large corporations which have joined the call to run their standby generators as GMA Network, Century Properties Group Inc., Federal Land Inc., Fort Bonifacio Development Corp., Philam Properties Corp., Posh Properties Development Co., and Trafalgar Plaza Condominium Corp.

“These firms are ready to drive their backup generators under the Interruptible Load Program,” said Ty, who speaks for the minority bloc in the House energy committee.

“We applaud these entities for going out of their way to shield consumers, by helping to minimize the threat of any potential power shortages in Luzon between February and June next year,” Ty said.

Currently, Ty said a total of 29 firms have offered to operate their standby generators, if required, in-

stead of obtaining their electricity from the Luzon grid in the summer of 2015, when demand is seen to be at its peak due to summer heat, while supply becomes fragile owing to reduced water pressure at hydropower facilities.

“Should all 29 firms run their own generators, some 169 megawatts [MW] of supply may be freed and available for smaller businesses and homes,” according to Ty. The Department of Energy has warned that the supply deficit for Luzon could reach up to 900 MW next year due to the onset of mild El Niño.

Based on established protocols, ILP is implemented during a red-alert status (minimal power reserve) upon the notice of the National Grid Corp. of the Philippines and the distribution utilities informing ILP participants to deload from the grid.

Last month, President Aquino has asked Congress to grant him an emergency powers through a joint resolution that will allow him to contract additional power capacity to avert the looming power crisis in summer next year.

The President cited Section 71 of the Electric Power Industry Reform Act which states that, “Upon determination by the President of the Philippines of an imminent shortage of the supply of electricity, Congress may authorize, through a joint resolution, the establishment of additional generating capacity.”

According to the draft resolution on emergency powers, the House of Representatives wants the government to use the committed ILP in addressing the looming power shortage next year.

WB lauds Albay DRR model

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Soft and stuffed

Shoppers mill around a tiangge booth selling soft and colorful stuffed toys of different shapes, sizes and designs at reasonable prices in Pandi, Bulacan. The stall owner said her stuffed-toy merchandise presents an ideal and practical Christmas gift not only for children but also for adults. Roy Domingo

and the International Labor Organization Conventions of which the Philippines is a signatory.

The Commission on Higher Education (CHED), Technical Education and Skills Development Authority (Tesda), Maritime Training Council and Maritime Industry Authority (Marina) will be in charge of maritime training and education, from upgrading the curriculum to upgrading the quality of navigational tools of maritime schools and training centers.

The lawmaker noted that the Magna Carta would complement the recently enacted law that designates the Marina as the single maritime administration on SCTW. “Our measure aims to develop a huge pool of competitive and efficient seafarers fully skilled to work aboard modern-generation merchant marine ships. We call on the CHED, Tesda and Marina to continue and scale up efforts to improve educational and training institutions for maritime sector workers, “ the senator said.

Aside from the right to education and training, the Angara bill lists the right to just compensation and work under humane conditions; the right

to self-organization and collective bargaining; the right to repatriation; the right against discrimination, exploitation and any kind of physical harm, sexual harassment or slavery among Filipino seafarers’ rights.

The right not to be charged in cases of pollution and ship accidents is also covered, as is the right to speedy processing of papers and claims.

The right to legal representation, relevant information, consultation and communication are also included.

“The Magna Carta seeks to protect Filipino seafarers especially on unforeseen circumstances like this when their jobs are on the line or when their rights are threatened,” Angara said.

“Labor laws and social legislation, including the Overseas Filipinos and Migrant Workers Act, are focused on land-based workers while the specific needs of merchant marine workers are hardly recognized. Special laws must be crafted explicitly for the benefit of Filipino seafarers as their circumstances are unique from either the OFWs or the mainstream labor force,” he added.

The measure further seeks to create the Philippine Seafarer OneStop Processing Center (Psoc), which would streamline the procedures involved in overseas employment to cut the time required for documentary and certification processing.

SB 1986 also aims to put up a database on Filipino seafarers and ensure that occupational safety and health protection rules, and minimum wages accepted internationally are applied on Filipinos working onboard overseas ships.

Latest figures from the Bangko Sentral ng Pilipinas showed that for the first eight months of 2014, money remitted by sea-based workers rose 8 percent to $3.7 billion and is expected to grow to $5.5 billion by the end of the year.

“The government must endeavor to improve the Filipino seafarers’ working conditions, terms of employment, career prospects and provide them opportunities to harness their potentials to the fullest. We must recognize the rights, contributions and unique role of Filipino seafarers, as well as their vulnerabilities, and afford them full protection,” Angara added.Recto Mercene

lbay’s disasater-risk reduction (DRR) program has reaped raves and praises at the recently concluded World Bank summit where the participants hailed Albay as decidedly a model in DRR for social protection, among others, and for being the only province in the country to have built 11 permanent evacuation centers.

Co-sponsored by the Department of Social Welfare and Development and attended by representatives from 27 countries, including officials from the Australian Aid, Asian Development Bank, and the United States Agency for International Development, the summit was held on November 3 and 4 at the Crowne Plaza Galleria in Quezon City.

Albay Gov. Joey Salceda presented the Albay DRR strategy during the summit, which was focused on effective DRR management in relation to social protection. Albay hosts an active volcano and is visited by strong typhoons the whole yearround, which cause major floods in many areas.

Through a pioneering DRR strategy, the province has mastered disaster resilience to become the country’s fastest-growing tourist destination and hub of development in the Bicol region.

The participants specifically praised Albay’s “Zero Casualty” goal via preemptive evacuation and the doctrine of safety first via buffer maintenance, as well as its “adherence to Sphere's standards during evacuation,” which emphasizes “quality and accountability of humanitarian response.”

Preemptive evacuation for a

zero casualty goal was pioneered

by Albay more than six years ago, and has since then become a household byword and strategy. It has now been adopted by the national government and many local government units in the country.

Salceda said the summit participants particularly hailed Albay for having built 11 major permanent evacuation centers, six of which were financed by Japan International Cooperating Agency and five by the Spanish aid agency Aecid.

Albay’s strategy on early relief and recovery has also impressed the summit participants. It employs packets of monetarist approaches which rely on local social security systems such as loan-payments deferrals, emergency loans and easy access homerebuilding loans.

On rehabilitation and risk reduction, the participants admitted being impressed by the relocation of 10,076 families, with sustainable ecosystems through geostrategic intervention. This Albay relocation program was also cited as model by an Oxford University study, according to the World Bank 2013 Climate Change expenditure review.

Albay’s DRR strategy has consistently been praised and adjudged as most effective, for which the province had received numerous major local and international awards and recognitions from private and government institutions.

Albay is the Philippines’s bet for the prestigious 2015 United Nations Sasakawa Award for DRR, banking on its strong culture of disaster resilience as among its best points. PNA

Angara keynotes Philippine Economic Society’s 52nd annual meeting in Makati City

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HE Philippine Economic Society will gather the country’s top economic policy-makers, market leaders, academe, civil society and students to discuss and debate the theme “Forging Ahead: The Philippines as a Developed Economy in 2050” during its 52nd annual meeting on November 14 at the Hotel InterContinental Manila in Makati City.

The theme addresses the forecasts of finan-

cial institutions such as HSBC and Goldman Sachs, which included the Philippines in the list of “new emergers” and projected its rise to become one of the largest economies in the world in the next few decades.

Leading the roster of prominent speakers is Sen. Edgardo “Sonny” Angara, chairman of the Senate Committee on Ways and Means, who will discuss the much-needed reforms to steer the economy

toward sustained and inclusive long-run growth and his proposed legislation on income taxes.

Socioeconomic Planning Secretary Arsenio M. Balisacan, World Bank lead economist on Poverty Reduction and Economic Department for East Asia and Pacific Region Rogier van den Drink, and International Monetary Fund Resident Representative Shanaka Jayanath Peiris will share their insights on the Philippines’s economic prospects in 2015

and beyond during the first plenary session.

The second plenary session, headed by Speaker Feliciano Belmonte Jr. and European Union Ambassador to the Philippines Guy Ledoux, will focus on reforms in another important policy area to secure the desired investments for long-term economic growth: competition.

Discussion on equity at the closing plenary in light of the recent work by Thomas Picketty

will be led by Prof. Raul Fabella of the University of the Philippines School of Economics and Prof.

James Roumasett of the University of Hawaii.

In addition to the plenary presentations, over 40 research papers will be read in 15 parallel sessions covering the following topics: small and medium scale enterprises and inclusive growth; disaster management and electricity; labor markets, jobless growth and human capital; investing in

Bangsamoro for the development of Mindanao; mining and development; the political economy of post-disaster recovery and reconstruction; agriculture and industry; poverty and social protection; economic integration; institutions, values and economic growth; research, innovation and development; and issues on monetary policy. Twelve papers were also chosen for poster presentation at the conference.

RegionsSunday BusinessMirror

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Editor: Efleda P. Campos • Sunday, November 9, 2014 A7

Largest wind farm in Southeast Asia starts operating

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By Marvyn Benaning | Correspondent

HE Philippines’s bid to wean itself off fossil fuels and tap its massive potential for renewable energy (RE) got a big boost after the Lopez-led Energy Development Corp. (EDC) announced the completion of the largest wind farm in Southeast Asia.

EDC Burgos Wind Power Corp., an affiliate of EDC, informed the Department of Energ y (DOE) that its 150 -megawatt (MW ) Burgos Wind Project in Burgos Ilocos Norte had achieved successful commissioning.

“We are happy to have met our target commissioning date, even a bit earlier than expected.

This is a major achievement for us,” said Richard B. Tantoco, EDC president and chief operating officer. “Renewable energy has a long way to go before it can meet our country’s ever-growing energy demands. But this is a significant step.”

Under the DOE’s Guidelines for the Selection Process of Renewable Energy Projects Under Feed-In Tariff System and the Award of Certifi-

cate for Feed-In-Tariff Eligibility, successful commissioning means that the RE project “is now physically connected to the grid” and is “delivering power to the transmission system.”

The Burgos Wind Project will be providing 370 gigawatt-hours of electricity to power approximately 2 million households, Tantoco said, which is enough to displace about 200,000 tons of carbon emissions annually.

It is the largest investment to date in Ilocos Norte. The project occupies 600 hectares in three barangays in Burgos, Ilocos Norte, namely, Saoit, Poblacion and Nagsurot.

As demonstration of EDC ’s strong commitment to heed the gover nment’s ca l l in the Renewable Energy Act to invest in

Windmills generate electricity at Burgos Wind Farm in Ilocos Norte.

emerging renewable resources, EDC has invested $450 million in the project and recently closed a $315-million financing deal with the support of EKF, Denmark’s export credit agency, and a group of leading international and local banks. The Burgos Wind Project is now the largest wind-power proj-

ect in Southeast Asia.

The Burgos Wind Project is also poised to be the first to avail of the feed-in-tariff (FIT), which the DOE will grant 200 MW of windprojects on a “first to commission, first served” basis.

Under the FIT system pursuant to the Renewable Energy Act

Australia supports Yolanda-recovery efforts

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USTRALIA was one of the first countries to respond to the needs of those who were severely affected by Supertyphoon Yolanda, providing over P1.64 billion (A$41 million) in immediate humanitarian assistance for aid and emergency supplies of drinking water, food, clothing, hygiene and health kits.

A year ago on Saturday, Yolanda struck with deadly force provinces in the Eastern Visayas.

Yolanda was one of the deadliest Philippine typhoons on record and the strongest storm globally to have made landfall.

Australians were also among the first international personnel to arrive in the worst affected areas, with members of Australian Medical Assistance Team, Australian Defence Force and Australian Federal Police deployed to assist

the victims.

In remembrance of the anniversary of Yolanda, Australian Ambassador to the Philippines Bill Tweddell said: “The loss of life and damage caused by Typhoon Yolanda was unprecedented. Responding to the disaster would be a massive challenge to any country in the world. I have traveled to the affected areas a number of times since the disaster and, while shocked at the extent of the devastation, I must express my admiration for the resilience and courage of the Filipino people.”

“I have nothing but the highest regard for the way Filipino officials and people have responded to this challenge and have been proud for Australia to do its bit in support.

As a close friend of the Philippines, Australia continues to work with the Philippine government and our

partners on the ongoing recovery efforts.”

Tweddell on Saturday visited Palo, Leyte, to turn over houses to families who are unable to return to their homes after the typhoon.

The houses were constructed by Gawad Kalinga with support from the Australian government.

“In the year since Yolanda struck, Australia has expanded its ongoing assistance to the Philippine government and other partners to ensure that the country is better prepared to manage and respond to future disasters,” Tweddell said.

Since Yolanda struck, Australia has provided P1.45 billion (A$36.3 million) to support the ongoing, longer-term recovery and reconstruction tasks in the affected areas, including: P920 million (A$23 million) for

Red Cross turns over core shelters, other facilities in Compostela Valley

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S part of Philippine Red Cross’s (PRC) rehabilitation efforts on Typhoon Pablo (international code name Bopha), core shelters and water and sanitation facilities were turned over to beneficiaries in Compostela Valley.

PRC Chairman Richard Gordon and Secretary-General Gwendolyn Pang turned over 350 core shelter units to Pablo victims in the towns of New Bataan and Monkayo on Thursday.

Through funding support of P70,000 per shelter from the International Federation of the Red Cross and Red Crescent (IFRC) hundreds of families can now live in decent homes.

Water and sanitation facilities in Compostela Central Elementary School and New Visayas Elementary School were also officially inaugurated.

The Watsan facilities are composed of two units of male toilets and urinals, two units of female comfort rooms and two units of hand-washing facilities each.

In December 2012 Pablo made landfall in Mindanao. It is considered as the worst typhoon of 2012 affecting 208 towns, and displacing more than 30,000 families.

Over 32,000 houses were destroyed, with recorded casualties of 627 dead, 3,248 persons injured and 568 still missing.

T he w or s t - h it p ro v i nc e s w e re Davao Oriental and Compostela Valley, where the typhoon caused mas-

sive f looding and landslides.

Through the continuous efforts of the PRC, and with the support of partner national societies, the IFRC and International Committee of the Red Cross, effective, and expeditious assistance were extended to survivors of the storm.

“The Philippines has always been in the path of powerful and destructive typhoons.

It makes a lot of sense for us to be always ready and prepared to respond to such disasters. More and more, the cumulative impact of these devastating storms should make us realize that disaster risk- reduction programs must be part of any sustainable approach to prevent the loss of life or destruction of property,” Gordon said.

More than 4,350 families were provided with core shelters and 7,285 individuals were given shelter tool kits to immediately repair and reconstruct their homes. PRC also provided livelihood opportunities to more than 3,100 individuals through cash-forwork program and 25,453 families benefited from the livelihood programs.

Clean and potable water is one of the pressing issues that PRC addressed in the affected provinces. More than 3.7 million liters of water were produced catering 20,145 families.

Health and hygiene promotions were conducted for 40, 190 families in Agusan del Sur, Bukidnon, Compostela Valley, Davao Oriental, Palawan, Siquijor and Surigao del Sur. Claudeth Mocon-Ciriaco

construction of up to 617 classrooms and day-care centers; P160 million (A$4 million) for community small grants to help approximately 35,000 people restore livelihoods; P292 million (A$7.3 million) to help 12 local governments and 150 communities build back better through risk assessments, updated land-use planning and building codes, and establishing early-warning systems; Technical assistance through deployment of seven Australian Civilian Corps recovery specialists to support the planning, implementation and coordinate of recovery and reconstruction work; and P40 million (A$1 million) for replenishment of prepositioned stocks of dignity kits and of rice and high-energy biscuits.

Recto Mercene

Cultural, trade, sports events lined up to celebrate Muslim region’s 25th year

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ARTY-LIST Rep. Sitti Djaliah Turabin Hataman of Anak Mindanao and the Autonomous Region in Muslim Mindanao (ARMM) have lined up several projects to mark the autonomous government’s 25th year this month.

Composed of Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi, the ARMM has been the traditional homeland of Filipino Muslims.

For centuries, the sultanates in this part of Mindanao have established their own culture and government. The ARMM was created by law as an independent region in Muslim Mindanao and held its first elections in 1990. As part of President Aquino’s reform agenda in establishing peace in the region, the ARMM will be known as Bangsamoro by 2016.

The festivities kicked off with a local pilgrimage to the country’s oldest mosque, the Sheik Makdum, in Simunul, Tawi-Tawi, on November 7. Built in the 14th century by an Arab trader, this historic site was named a National Treasure by then-President Ferdinand Marcos.

The Morolympics sports festival will be held from November 14 to 18 at the Office of the Regional Council Compound in Cotabato City. The teams will come from the ARMM local governments and the executive branch. Former ARMM secretaries, legislators and governors will be honored during the anniversary celebration. Likewise, the ARMM will also give awards to its pioneering employees and retirees.

The climax of the two-week festivity is a cultural program titled “Gabi ng Kultura at Kasaysayan,” showcasing Muslim history and culture. Prince of Beads and Tausog designer Amir Sali will present his fashion collection inspired by the Maranao, Maguindanao,Yakan and Tausug clothing. Maranaos, Yakans, Tausugs and Maguindanaons will present the best of their music, drama and dance in cultural numbers.

Delicacies, handicraft and products from the ARMM region will also be displayed in booths at the ORC compound.

ARMM Gov. Mujiv Sabbihi Hataman said these events are a good vehicles for the promotion of the region's culture. “These will take us out from obscurity as the public sees our cultural treasures.”

Congresswoman Hataman said, “We have to make sure that the reforms we are doing now will be redounded to the benefit of the region.” said Hataman.

of 2008, the Energy Regulatory Commission (ERC) will allow payments on a fixed rate per kilowatthour—called FIT rates—for power producers harnessing RE. The successful commissioning, set to be verified by the DOE, followed the DOE’s nomination of the project to the ERC as an eligi-

ble project under the FIT system, Phase 1 (87 MW) and Phase 2 (63 MW) of the project, all having achieved the requisite 80 percent electro mechanical completion on September 25, 2014 and on October 10, 2014. To date, the Burgos Wind Project is the only project that has been nominated by the DOE to the ERC. The Burgos Wind Project features 50 units of model V90 wind turbines of Vestas, the world’s No. 1 wind-turbine manufacturer. Vestas has already issued commissioning certificates for each of the 50 turbines, which were furnished to the DOE as vital substantiation of successful commissioning.

Groundbreaking for the Burgos Wind Project took place in April 2013, while the construction for the initial 87-MW capacity of the wind farm started in June 2013.

EDC has several geothermalpower projects but the company is now venturing into solar and wind energy. The DOE has awarded the company contracts for one solar-power project and six wind-energy projects.

The Philippines has set a target to significantly increase its RE capacity by 2030. The government aims to have an installed RE capacity of 15,400 MW to account for half of the country’s power demand.

443rd Pampanga Day celebration kicks off Dec. 1

By Joel P. Mapiles Correspondent

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ITY OF SAN FERNANDO—The “443rd Aldo Ning Kapampangan” celebration will kick off from December 1 to 11 with a theme, “Kulturang Kapampangan Ya Ing Dalan Ning Kaunlaran” ( Kapampangan Culture is the Way to Progress).

Gov. Lilia Pineda said the Pampanga Day celebration will be marked with simplicity, genuine unity and camaraderie among the Capampangans who want to get access to more development.

She said this time of the year, the province has all the reason to celebrate the founding anniversary as the provincial government has already set the tone to progress and the Capampangans are united to make a big difference toward a healthy, fully secured and employed population enjoying the fruits of economic development Tentatively, on December 1 the celebration will start with a Holy Mass to be officiated by Archbishop Florentino “Apung Dong” Lavarias, followed by a visit of the image of the Virgin Mary, flag ceremony, opening of the trade fair, jobs fair, distribution of Department of Labor and Employment grants, street dancing, festival parade of different towns and cities, individual festival performances in front of the Capitol, medical and dental mission at the Provincial Jail, ceremonial lighting of the Capitol’s Christmas tree, and fireworks display and concert at the park.

On December 2 there will be a trade fair, “Aldo ding Ortelano” (Farmers’ Day) to be attended by 1,000 farmers and “Aldo Ding Kapampangan OFWs” which will be graced by 1,000 participants—mostly families of migrant workers.

Come December 3 another trade fair will be held and thousands of Ayta families from Nabuklod, Floridablanca, Tent City in Porac and Mabalacat City will gather for the “Aldo ding Katutubo.”

Pineda will personally interact with the tribesmen and treat them

PINEDA: “We’re going to give Aytas due care and attention as part of the highlights of the 443rd founding anniversary of the province.”

to a fun-filled “Katutubo Day” event. “We’re going to give Aytas due care and attention as part of the highlights of the 443rd founding anniversary of the province,” the governor said.

On December 4 the provincial government will celebrate the Barangay Health Workers’ Day and the Persons with Disabilities Day at the Bren Z. Guiao Convention Center.

On December 5 in the same venue, 4,000 teachers will celebrate “Aldo Ding Talaturo” (Teachers’ Day), followed by the celebration of “Aldo ding Pulis” or Police Day. Come December 8 “Aldo da ring Manasan” (Fishermen’s Day) and the Tilapia Fishpond Owners fairwill be held in Lubao and Macabebe towns, respectively.

On December 9 Pineda will meet the Pampanga mayors, vice mayors and town and city councilors in a grand meeting.

On December 10 the mostawaited Coronation Night for “Mutya Ning Kapampangan” will be done at the Bren Z. Guiao Convention Center.

The governor said this year, all 19 towns and three cities will vie for the title of Mutya Ning Kapampangan 2014.

On the night of December 11, winners of the Most Outstanding Kapampangan Awards in different categories will be recognized and honored in a program at Widus Convention Center in the Clark Free Port.

“This 443rd Aldo Ning Kapampangan celebration is an opportune time to recognize our distinguished Cabalen who excelled in their field of profession that benefited the province and its people through the holding of Most Outstanding Kapampangan Awards night,” she said.

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Aquino administration gets mouthful from Yolanda survivors in Tacloban

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By Jovee Marie N. dela Cruz

ACLOBAN CITY—Many business establishments in the city are still struggling to recover one year after Supertyphoon Yolanda (international code name Haiyan) struck central Philippines, an official said on Saturday.

Tacloban City Mayor Alfred Romualdez, in an interview, said there were 17,000 business establishments in the city when the world’s strongest typhoon ever recorded hit the country, particularly Leyte.

“I would say [that] a little bit more than half [of the 15,000 to 17,000 of business establishments here before Yolanda struck are recovering] and it [recovery] is moving along,” he said.

Romualdez said the recovery of many business establishments is slow, owing to the problem that

still besets the Daniel Romualdez Airport, where aircraft larger than turboprops are banned from using the airport until December 3.

The Tacloban airport was severely damaged when Yolanda made landfall last year.

“It’s still the same. They are still struggling, especially now that we have problems in our airport. We hope that our airport will be returned to 100 percent [operations] so that we can start moving on,” he said.

Romualdez said the local government is still coordinating with

non-governmental organizations (NGOs) to help local businesses.

“We [local officials] partnered with NGOs because we are trying to put up many shelters.... Also, we deferred taxes to help them,” he said.

The first anniversary of the strongest typhoon to make landfall was commemorated on Saturday.

Yolanda affected 171 towns and cities in 14 provinces and six regions.

Thousands were reported dead, millions of families affected, and billions of pesos worth of public and private property were damaged.

Housing

ROMUALDEZ expressed dismay on the housing program for the affected families and residents.

He said that only more than 200 of the much-needed 14,000 permanent housing units have been built.

The mayor also said half of those units were constructed through the efforts of the various NGOs.

“They [national government] didn’t give us housing or even temporary shelters...in terms of addressing really those people that need to be relocated to temporary shelters, we received nothing,” he said.

Romualdez said the first time the city got a piece of the P180-

million rehabilitation and reconstruction fund was only five months after Yolanda, and that money should be used only for the reconstruction of government buildings and civic centers based on the mandate by the Department of the Interior and Local Government (DILG).

“DILG Secretary [Manuel Roxas II] gave us about P180 million, but I have to sign a memorandum of agreement [with him] and the money was solely focused on the reconstruction of government buildings and civic centers, and not for shelters or anything like that,” Romualdez said.

Romualdez also said it would be better if President Aquino had gone to Tacloban so he can personally assess the ongoing rehabilitation program in his city.

“It would be nice if the President visited the place he hasn’t visited yet,” the mayor said.

Gratitude

LAKAS Rep. Ferdinand Martin Romualdez of Leyte expressed gratitude to all local and foreign donors who extended help to the victims of Yolanda.

Romualdez, however, said the

continuity of work is still needed for the complete rehabilitation and recovery of affected areas.

“It has officially been a year after Yolanda. On behalf of the whole province of Leyte, we say thank you for the overwhelming support extended to us in our most desperate time of need,” Romualdez said.

“We saw the outpouring of support not only from the international community but from private citizens, as well. Aside from the innumerable food and medical supplies donated to the relief effort, we cannot quantify the countless hours people spent volunteering, rescuing and providing relief to the affected communities,” Romualdez added.

According to the lawmaker, government agencies and the people should continue to work for the recovery of typhoon-hit areas.

“We know that the work is far from over. A year after Yolanda, the effort to rebuild Leyte continues, so let’s keep moving,” Romualdez said.

“Reconstruction and disaster preparedness are the priorities now. These commemorative activities serve as a good reminder that the work continues a year after Yolanda, and that everyone can contribute to this massive ef-

fort to get Leyte back on its feet,” Romualdez said.

The commemoration started with the awarding of livelihood projects, a commemorative run, tree-planting, memorial services for the victims (which include a candlelighting ceremony, offering of flowers and blessing of mass graves), health-and-fitness activities, and various arts and music events.

Protests

ALSO on Saturday, thousands of storm survivors from the Visayas and Mindanao converged in protest sites in Tacloban against the “continuing negligence, government corruption and anti-people rebuilding plan.”

Vencer Crisostomo, the national chairman of youth group Anakbayan, one of the organizers of the protests, said 20,000 people joined the protests.

Sanlakas, Alyansa Tigil Mina, People Surge, Kilusang Mayo Uno, Philippines Chapter of the International League of Peoples’ Struggle, Gabriela and Philippine Movement for the Climate Change joined the rally.

“A year after Yolanda, the Aquino administration’s crimes against See “Yolanda,” A2

Joblessness drops as U.S. powers past global slump

By Michelle Jamrisko Bloomberg

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he American labor market is powering past a global slowdown as unemployment decreased to a six-year low in October and 214,000 workers were added to payrolls.

The jobless rate fell to 5.8 percent, the lowest since July 2008, from 5.9 percent in September, Labor Department figures showed in Washington on Friday. The increase in hiring last month followed a 256,000 advance that was larger than first estimated as job gains head for their best showing in 15 years.

The report probably keeps Federal Reserve policy-makers on track to raise interest rates in 2015, even as wages continued to show little momentum.

Disappointing average hourly earnings help explain the voter discontent that gave the Republican party control of the Senate in this week’s election.

“The labor market is firming,” Federal Reserve Bank of Chicago President Charles Evans said in a speech on Friday. “Labor-market slack is definitely diminishing.” Evans has often warned of the dangers of raising interest rates too quickly.

Forecasts show central bankers view unemployment in the 5.2-percent to 5.5-percent range as consistent with full employment. The rate has dropped 1.4 percentage points since October 2013, matching the biggest 12-month retreat since 1984.

Evans said the drop in joblessness was “good

news,” even as “we’ve got some distance to go.”

Stocks held at all-time highs and Treasury securities climbed. The Standard & Poor’s 500 Index rose less than 0.1 percent to 2,031.92 at the close in New York. The yield on the benchmark 10-year note, which moves inversely to prices, fell to 2.30 percent from 2.39 percent late Friday.

Median forecast

The October gain in payrolls fell short of the 235,000 median forecast of 100 economists surveyed by Bloomberg. Estimates ranged from increases of 140,000 to 314,000. Revisions to prior reports added 31,000 jobs to the previous two months’ job count.

Employment has climbed by at least 200,000 for nine consecutive months. The last time that’s happened was a stretch that ended in March 1995.

At this year’s pace, the increase in payrolls for 2014 would be the biggest since 1999.

Hiring gains were broad-based, with factories, construction companies and retailers among those adding staff.

The one soft spot in the employment picture remains the inability of wages to show bigger increases. Average hourly earnings for all workers rose 0.1 percent in October from the prior month, and were up 2 percent since October 2013, less than the 2.1-percent median forecast. By this See “Joblessness,” A2

Phase 1 of $517.16-million ICTSI project complete

By Lorenz S. Marasigan

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NTERNATIONAL Container Terminal Services Inc.’s (ICTSI) unit in Mexico has completed the initial phase of its $517.16-million development project at the Port of Manzanillo in Colima, a senior official said.

Contecon Manzanillo Sociedad Anopmina (CMSA) Managing Director Enrique Gutiérrez said the company has invested $221.64 million to complete the first phase of the 12year development plan, which has a total price tag of $517.16 million in investments. It is being implemented in three phases.

“Investments have primarily

been channeled to building infrastructure and acquiring latestgeneration equipment for port management, including processmanagement tools and resources to support personnel training.

Our operations also had a direct positive impact on the port’s social and economic development, yielding some 400 direct jobs and over 1,100 indirect ones, amounting to close to 70 million Mexican pesos in annual salaries,” Gutiérrez said.

CMSA, the developer and operator of the second specialized container terminal (SCT-2) in the Port of Manzanillo in Colima, Mexico, celebrated its first anniversary this month.

The opening of SCT-2, CMSA cemented Manzanillo’s position as the leading port in Mexico, further boosting the port’s rank both regionally and globally.

Today the Port of Manzanillo is the fifth-largest port in Latin America and 66th largest in the world.

“A year after the first vessel arrived at our terminal, we can guarantee that CMSA is effectively fulfilling a commitment to strengthening Manzanillo’s positioning as the country’s leading port, and consolidating it as the main gateway for Mexico’s foreign trade.

Modern infrastructure, worldclass equipment and leading-edge See “ICTSI,” A2