BusinessMirror June 27, 2015

BusinessMirror

THREETIME ROTARY CLUB OF MANILA JOURNALISM AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18,June 201427, Vol.2015 10 No. 40Vol. 10 No. 261 Saturday,

www.businessmirror.com.ph

n n

P.  |     | 7 DAYS A WEEK

LOWER ELECTRICITY RATES, OIL PRICES TO PULL DOWN CONSUMER PRICES

Inflation seen easing to 1.1% in June A Life INSIDE

B B C

FTER inflation hit a 20-year low in May, consumer-price acceleration across the Philippines could slow down further in June, as energy and oil prices—aided by favorable base effects— continue to push inflation lower.

MARRIOTT GRAND

The innumerable blessings

D

EAR Lord, make us aware always on the innumerable blessings You bestow on us: The life we live each day; the presence of our loved ones, near and far; the support and caring of friends; the abundance of needs we enjoy daily and the simple and clean condition of our families. Help us manifest our gratitude in many ways and inspire us to express it concretely through actions, words and deeds. Amen.

HELPING A CHILD WITH A DEPRESSED PARENT »D3

EXPLORING GOD’S WORDS, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

BusinessMirror

Saturday, June 27, 2015

D1

Grand in every sense of the word

WITH a total 10,000 square meters of function space, Marriott Hotel Manila is securing its position as the premier meeting destination in the country.

B JT N

A

LONG with the gasps, the “wows” and other monosyllabic expressions of wonderment, stepping foot on the Marriott Grand Ballroom (MGB) can unleash a flood of gushing adjectives.

It’s huge. It’s spacious. It’s a work of art. It’s state-ofthe-art. It’s wonderful. But perhaps the term that encapsulates the whole facility is the very one attached to its name. In every sense of the word, the four-story MGB is G-R-A-N-D. Described by Resorts World Manila (RWM) Chief Operating Officer Stephen Reilly as their “latest, greatest, biggest project,” this marvel of an events venue has 8,000 square meters of function space with 28 versatile meeting spaces plus six VIP sky boxes that can accommodate any social gathering—from weddings, debuts, exhibitions, large conferences, corporate meetings and concerts, among others. This newest facility, which will formally open on July 1, stretches the Marriott Hotel Manila’s total function space to 10,000 sq m, the largest in Philippine hotel industry.

C  D

LIFE

D1

ODE TO FATHERS Relationships BusinessMirror

D4 Saturday, June 27, 2015

www.businessmirror.com.ph

Ode to fathers

D

AD, Papa, Ama, Itay...last Sunday, many families expressed their gratitude and celebrated the virtues of the most important man in their lives: their father.

Our family, however, was never big on Father’s Day, because to Papa, it was not a religious holiday. And Papa was all about religion and Catholic traditions. We would often joke that if only priests were allowed to marry, Papa would have probably become a man of the cloth.

Every morning we would find him praying the Holy Rosary and expressing his devotion to the Most Sacred Heart of Jesus, this before even having had breakfast or read the newspaper. In the evening, he would also pray before sleeping. He would go to Mass every first Friday, or lead all of us to church for Visita Iglesia on Holy Thursday, or Misa de Gallo on Christmas Eve. And he never missed the 16-day Misa de Aguinaldo before Christmas. Sometimes this made me think that he did so much praying because all of us, including Mama, were either maldita or probably smart-alecky brats.

Someone had to pray for our salvation and he made it his job to do just that!

When some people ask me why I went into journalism, I think it could have been because of Papa’s habit of reading the newspaper each morning. I remember emulating him as a child, and trying to “read” the Daily Express (this was the 1970s, hello!), even if I only understood half of what was on it. And to think Papa wanted me to become an economist! Or a lawyer like him—probably because he recognized my excellent, ahm, debate skills.

Papa was kind and generous to fault. He just gave so much of himself even though it may have hurt sometimes. But anyone who knew him would always say, ““Mabait Mabait ang Papa mo.” I miss him very much.

SOMETHING LIKE LIFE

MA. STELLA F. ARNALDO http://stella-arnaldo.blogspot.com @Pulitika2010

Friends and colleagues also share memories of their late fathers:

make sense to him. “ “Pag-namatay ako, bawal magluksa. Have a one-day wake, bury what’s left of me, and then eat lunch at my favorite Chinese restaurant right after the burial. Death is just about the next journey.”

That sort of characterized him and the way he raised with Mama their two headstrong daughters. Papa left behind many foods-for-thought but here are the ones that I keep very close to my heart: 1) Be your own person and you don’t have to keep up with the Joneses; 2) Doing the right thing is never easy and most of the time it’s not popular, but you must always try; and 3) Think of others, but most of all, you should always give special care and attention to your Mama as I do. Y You and your sister are my princesses, but she will always be my queen.

MARIVIC SEGISMUNDO-LEMETTE Director for Sales Channels and Marketing, NEC Philipines

LORENZO R. PEREZ, banker

DONDI LIMGENCO Editor in Charge Custom Publications, Summit Media

MONEY Y runs out sooner for Communication Arts majors like me—there is always that extra film to buy or editing machine rental fees to pay. So one time my father dash backed into the house to get something he had left behind after handing me my baon in the car, and I looked through his wallet to see how much more money I could ask for. It was empty.

It was the mid-1980s and our family printing business wasn’t doing too well. My father had just given me his last money. But that was him all throughout the 40 short years that I had him: selfless, hardworking, giving his family everything that he had, leaving none for himself.

NINA INA with her Papa, businessman Victorio Fabie Posadas

WHENEVER EVER I drill a hole into the wall, I think of my Dad. Whenever I flatten my thumb with a hammer, or struggle with a rusty screw threatening to disintegrate at any moment, I imagine him breathing down my neck.

Fathers are supposed to imbue their sons with a passion for all manner of manly pursuits: sports, cars, alcoholic beverages, women, and, in my case, DIY. Y Y. As an avowed nerd, I confess to being a spectacular disappointment when it comes to cars or sports, or even drinking. But while I make no claims to Technical Education and Skill Developement Authority-certified proficiency, I like to think I’m handy with home repairs—thanks to my Dad. He taught me that DIY Y can be a creative activity, not just physical or sweaty. He showed how DIY Y teaches other virtues, like patience and perseverance. And while the ostensible motive for DIY Y is frugality, the real lesson he passed on is that no one can care for your home the way you do.

JOSEN PEREZ DE TAGLE Assistant Vice President Philippine Airlines External Affairs

CELSO DIZON SEGISMUNDO, entrepreneur

NINA POSADAS Manager and Head Marketing Corporate Business Group, Meralco STELLA TELLA with her Papa, lawyer/civil servant Ramon Arnaldo Jr.

PAPA frowned on just about any holiday commercialism PAPA and even the most sacred of family traditions that didn’t

ROBERTO LIMGENCO, Certified Public Accountant

JOY FLAVIER ALAMPAY Health Communications Consultant World Health Organization-Western Pacific Regional Office

ALFREDO PEREZ DE TAGLE, airline purser/restaurant manager

MY Y Dad was very thoughtful. He would always have pasalubong for us, if even just the smallest tokens: a half-eaten bag of chicharon, a piece of polvoron, freebie pens from whatever meeting he attended, or the small bottle of shampoo from his hotel room. Kuripot, we would tease him, but I always loved the gesture which simply said, “I thought of you...kaya lang wala akong pera.” I see him in the little things I do now: scribbling little notes of reminders to myself, everyday the whole day; religiously sending postcards to my kids and family wherever I’m privileged to go; and writing personal notes to anybody who spends any small amount of time or effort with or for me.

I miss him, especially this time of year. We usually celebrate his birthday on Fathers’ Day. I see him at the end of our dining table, wearing his polo barong over puruntong shorts. He understands the joint celebration.

Kuripot din kami.

ANA PEREZ Vice President, Head of Creative Services TV5

RELATIONSHIPS

D4

JOY with her Dad, Health Secretary Juan Flavier

TOWNS AT NO. 1 Sports BusinessMirror

C1

| SATURDAY, JUNE 27, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

TOWNS AT NO. 1 KARLANTHONY TOWNS’S selection at No. 1 isn’t a surprise. AP

Minnesota selected Kentucky center KarlAnthony Towns as the first of three straight college freshmen who went with the first three picks before New York chose Latvian forward Kristaps Porzingis, triggering loud, long boos from skeptical fans inside Barclays Center.

S

AN FRANCISCO—Baseball history was made on a field of wistful dreams in California’s wine country with the appearance of the sport’s first openly gay active professional.

Pitcher Sean Conroy, 23, took the mound in his first start for the Sonoma Stompers, a 22-man team that is part of the independent Pacific Association of Baseball Clubs.

The Stompers recruited the upstate New York native out of college in May. General Manager Theo Fightmaster says Conroy privately shared his sexual orientation with teammates and management before agreeing to come out publicly in time for the team’s home field gay-pride night.

“The first conversation I had with Sean was, ‘I want you to know this organization supports you, we respect who you are. We respect who you are as a pitcher and a person and to whatever degree you want your story told, we’ll help facilitate that,” Fightmaster said. “His goal has always been to be the first openly gay baseball player, so he was very much in favor of telling the story, of carrying that torch.”

Major League Baseball (MLB) historian John Thorn confirmed that Conroy is the first active professional to come out as gay. Glenn Burke, an outfielder for the A’s and Dodgers, and Billy Bean, a utility player with the Tigers, Dodgers and Padres, came out after they retired.

“Of course, that over the years there have been rumors of this Major League player or that one being gay, but that’s just idle chatter and counts for nothing,” Thorn said. “In terms of an openly gay player as [the] pitcher

N

B B M The Associated Press

EW YORK—The Minnesota Timberwolves got their man in the middle by selecting Karl-Anthony Towns with the first selection in Thursday’s National Basketball Association (NBA) draft, while the Los Angeles Lakers got a playmaking partner for Kobe Bryant, and New York Knicks fans just got mad—though not for long.

Minnesota selected Kentucky center Towns as the first of three straight college freshmen who went with the first three picks before New York chose Latvian forward Kristaps Porzingis, triggering loud, long boos from skeptical fans inside Barclays Center.

They were cheering later in the first round when the Knicks acquired the rights to Notre Dame guard Jerian Grant from Atlanta for Tim Hardaway Jr. Before that, the Timberwolves went for a center in their first time having the No. 1 pick. The selection wasn’t a surprise—though he said he didn’t know until it was announced.

“When Mr. Adam Silver came out, I saw him, and he said, ‘With the No. 1 pick,’ I was racing,” said Towns, who

was sitting with Kentucky Coach John Calipari.

“I told Coach Cal before when he first came out that I was trying to drink the water and I was shaking uncontrollably, and I told him, ‘Coach, don’t give me the ball right now for the last-second shot. I wouldn’t make it.’”

The Lakers then took guard D’Angelo Russell of Ohio State. He drew huge cheers when he was announced, but his entourage was dwarfed by that of Towns. The New Jersey native said he had above 50 family and friends in attendance.

“This is home to me,” he said. “Been able to come here and have all my closest friends and love ones come out here. It’s the most special moments in my life.”

Towns averaged 10.3 points and 6.7 rebounds in just 21 minutes per game for Kentucky, which reached the Final Four of the college playoffs.

It was Kentucky’s third No. 1 pick in six years, joining Anthony Davis in 2012 and John Wall in 2010. The Wildcats were hoping to have a record seven players picked and were well on their way when Sacramento took center Willie Cauley-Stein with the sixth pick, Utah grabbed Trey Lyles at No. 12 and guard Devin Booker followed one spot later to Phoenix.

“Just shows our team was special. Unlike any other,” Lyles said.

But they had to settle for tying the record with six selections, as Dakari Johnson and Andrew Harrison went in the second round, but Aaron Harrison was not picked.

For weeks, Towns and Duke’s Jahlil Okafor had been considered the top 2 selections. But the Lakers skipped Okafor and instead went for Russell, choosing a player who can step right in and play alongside Bryant in what could be the superstar’s final season.

“Kobe’s a great dude,” Russell said. “Not knowing how much he has left in the tank is the scary thing. I’m really looking forward to him taking me under his wing, if possible, and feed me the most knowledge he can and use that as fire against my opponents.”

Okafor fell to the Philadelphia 76ers at No. 3, becoming the 19th lottery selection and a record 29th first-round pick for players schooled at Duke by Coach Mike Krzyzewski. Those numbers increased when Miami drafted Justise Winslow 10th and Cleveland took Tyus Jones at No. 24—though his rights were later dealt to Minnesota.

The Knicks changed the pattern of freshmen when they took Porzingis with the No. 4 pick. The 19-year-

FIRST OPENLY GAY PRO PITCHER

A MAJOR League Baseball historian confirms that Sean Conroy is the first active professional to come out as gay. AP

in your neck of the woods, we haven’t had one yet.”

Conroy, a right-hander who has earned four saves and allowed only two hits in the seven innings he has pitched so far as a closer for the 15-3 Stompers, said he had been open with his high-school, summer league and college teams, and told his family he was gay at age 16. It would have been strange not to do the same with

once he moved across the country and started making friends on the team in Sonoma, he said.

“People would talk about their girlfriends and who they were going out to see that night. Instead of getting the different looks or questions when I didn’t join them, I’d rather tell you the truth and let you know who I am and have real conversations instead of the fake ones,”

old forward had been surging in draft previews, but Knicks fans booed lustily, with memories of the acquisition of previous European players Frederic Weis and Andrea Bargnani.

“Lot of fans weren’t happy they drafted me,” Porzingis said. “I have to do everything in my hands to turn those booing fans into clapping fans. The fans are harsh sometimes, that’s how it is in New York and I’m ready for it.”

Another international player followed, as Orlando took Croatian Mario Hezonja at No. 5, and Emmanuel Mudiay, born in Congo, raised in Texas and a professional last season in China, went seventh to Denver. Detroit took Arizona’s Stanley Johnson eighth before National Player of the Year Frank Kaminsky went to Charlotte at No. 9.

The Lakers later added Wyoming’s Larry Nance Jr. with the No. 27 pick, while Boston used its two firstround selections on Terry Rozier of Louisville (16th) and R.J. Hunter of Georgia State (28th).

The NBA champion Golden State Warriors used the 30th and final pick of the first round on UCLA forward Kevon Looney, who thought he would go higher and instead lasted so long he left the green room before returning shortly before he was selected.

Bean, who serves as MLB’s ambassador of inclusion, called Conroy a pioneer and said he planned to keep tabs on the young pitcher’s career.

“It will be a great day for the LGBT community. I hope he pitches well and gets another opportunity to start another game,” Bean said. “It doesn’t matter if he pitches in the big leagues or not, he’s going to become a leader [tonight] in many ways, an influential leader for a lot of young kids not only in that community but those who will read the story and who may be pondering that same decision in their teenage years, and they want to be baseball players or they want to be football players” Conroy’s history-making start comes at a watershed moment for gay rights, with the US Supreme Court scheduled to rule any day now on whether to make same-sex marriage legal across the nation.

The Stompers are not planning to make a special announcement or call attention to the milestone so Conroy can focus on his pitching, although some players will be wearing rainbow socks or other gay-pride symbols in support of their teammate, Fightmaster said.

The life of a Stomper is certainly a far cry from the majors. Players live with host families during the June-to-August season, earn $650 a month on average and supply their own cleats, batting gloves and elbow guards. Arnold Field, their home turf, seats 370.

Conroy hopes to catch the eye of a big-league scout, but hasn’t focused on much beyond this season.

“I’m just looking to play well and do, as well as I can wherever they put me,” he said. AP

SPORTS

Conroy said.

As far as coming out publicly, Conroy said he regards it as a way to both help his team and to set an example for other players.

“It’s not that I wanted it to go public, but I didn’t care if it was open information.

It’s who I am,” he said. “I am definitely surprised that no one else has been openly gay in baseball yet.”

for the month,” Tetangco said in a text message.

“These may be offset by slightly higher rice prices, gasoline prices and tuition in June,” he added.

Whether inflation hits the low end or the upper range of Tetangco’s forecast for the month should not be an issue for the central bank, however, as both are within target inflation numbers.

Should inflation hit 1.1 percent in June, for instance, the average inflation in the first half would S “I,” A

PHL DOLLAR BONDS RATED MOST RESILIENT TO FED RATE RISES

MY Y Dad was everybody’s rock-solid friend. I called him “ambassador” because he couldn’t walk a block without meeting someone he knew and liked and wanted to talk to and kid around with.

Dad could connect with anyone, from the highest-born to the humblest, and he never stopped connecting—zestfully, relentlessly, joyfully. Even now, 27 years after he passed on, I still meet people who remember him with great fondness: “Ah, Freddie, he was FUN!” For a quiet guy like me, Dad was my window to a world of happy wonders. He really cared, and that made all the difference.

MY Y Dad was the most generous of men. No one around him ever went hungry; no one who visited our home or his office ever left empty-handed; and when you happened to be in the same restaurant with him, he would automatically pick up your table’s tab. He was also the over-orderer extraordinaire when dining out.

My Mom, my sister and I never even had to ask for anything as his largesse was of epic proportions. When I first started baking, I came home to a Kitchen Aid stand mixer; when I took a Photography class in college, he gave me the top-of-the-line Nikon, far beyond my fledgling abilities; and, on one of his trips, he bought me the first ever Sony Walkman and I felt gypped because it was so much smaller than the boom box my sister got and only one person could listen at a time!

It wasn’t just food and gifts with my Dad, though: he was also generous with his advice, time, attention and

In particular, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said inflation could prove as low as 1.1 percent in June, or even lower than record-low inflation in May of only 1.6 percent.

Tetangco’s forecast inflation for the month was within the 1.1-percent to 2-percent range, he announced to reporters on Friday.

“Lower diesel, kerosene, LPG [liquefied petroleum gas] prices and decline in Meralco [Manila Electric Co.] electricity rates provide downside inflation pressures

C1

P

HILIPPINE dollar bonds, Southeast Asia’s biggest gainers this year, look set to keep their lead as the peso’s stability shows the economy’s resilience to rising US borrowing costs.

The notes have returned 2 percent, compared with a 1-percent advance for Indonesian debt and a 1.5-percent drop in Malaysian securities, according to JPMorgan Chase & Co. indexes. The peso weakened the least in the region, falling 0.8 percent, compared with declines of 6.9 percent for Malaysia’s ringgit and 7.1 percent for Indonesia’s rupiah.

While economic growth slowed to a three-year low last quarter as government spending faltered, the Philippines saw its current-account surplus double from a year earlier

PESO EXCHANGE RATES n US 45.1430

on strong remittances from Filipinos working overseas and call-center growth. A less-volatile currency decreases the risk of higher foreigndebt servicing costs for the Philippines, which mostly benefits from falling global commodity prices that are harming Malaysia and Indonesia.

“The Philippines has been extremely stable from a macroeconomic perspective,” said Rajeev de Mello, who oversees about $10 billion as head of Asian fixed income at Schroder Investment Management Ltd. in Singapore. “Malaysia and Indonesia are suffering from the deterioration of their terms of trade,” he said, adding that the Philippines isn’t as sensitive to higher US interest rates.

S “D ,” A

MVP ON INNOVATION Manila Electric Co. (Meralco) Chairman Manuel V. Pangilinan delivers his message during the opening of the Meralco Technology and Innovation Summit at the Meralco Multipurpose Hall in Ortigas, Pasig City. NONOY LACZA

Frustrated Modi leaves India loan bankers idle as plans on hold

S

YNDICATED lending fell 8 percent in the second quarter from the previous three months to $1.1 billion, set for the lowest volume since the period ended September 2013. Borrowers have put expansion plans on hold, waiting for Prime Minister Narendra Modi to deliver on growth-boosting legal changes.

“Capacity utilization for many manufacturing companies remains at modest levels and unless demand improves, fresh capital expenditure for expansion appears unlikely,” said Sidharth Rath, president for treasury in Mumbai at Axis Bank Ltd., the second-biggest arranger

of overseas loans. “Many companies haven’t gone ahead with their borrowing plans.”

One year in and Modi is grappling with stalled projects and souring bank loans, while a bill to ease landownership rules is stuck in the upper house of Parliament. Stressed assets at Indian banks rose to almost 11 percent of total lending as of March 31, and the infrastructure backlog of delayed projects has climbed to 13.5 trillion rupees ($212 billion), official data show.

Hindustan Petroleum Corp., Reliance Utilities & Power Pvt. and Rural Electrification Corp. were the only borrowers in the syndicated

loan market this quarter, according to data compiled by Bloomberg. That’s half the number of last quarter, while total loans the first six months of $2.3 billion compare with $7.7 billion the second half of 2014, the data show.

Bharat Petroleum Corp. decided to postpone a $500-million, fiveyear facility in April after seeking proposals from lenders earlier that month. Steel Authority of India Ltd. still hasn’t proceeded with a $200million loan after getting feedback from banks in December.

In April Reliance Power Ltd. terminated a 3,960-megawatt project S “I ,” A

n JAPAN 0.3653 n UK 71.0777 n HK 5.8238 n CHINA 7.2701 n SINGAPORE 33.6261 n AUSTRALIA 34.9892 n EU 50.5827 n SAUDI ARABIA 12.0385 Source: BSP (26 June 2015)

A2

News

BusinessMirror

Saturday, June 27, 2015

SM earmarks ₧1B for Legazpi mall

L

EGAZPI CITY—Henry Sy’s SM Prime Holdings said it has earmarked P1 billion to construct another mall in Legazpi City’s central business district.

Mayor Noel Rosal said the SM City management is currently negotiating with LKY Corp., the operator of Legazpi City Terminal, for a possible team up to build a new mall within the heart of this city.

Rosal said the Henry Sy Group allotted P1 billion for this city which has proven to be resilient in the face of natural calamities due to climate change.

The announcement was made after the city government of Legazpi lifted the five-year moratorium on

Dollar bonds. . .

The peso’s three-month implied volatility is 5.54 percent, compared with 9.86 percent for the ringgit and 10.38 percent for the rupiah. The yield premium investors demand to hold Philippine dollar debt over US Treasuries narrowed 29 basis points this year to 104. The spread for Indonesia fell 12 basis points to 254, while that for Malaysia rose 19 to 190.

Philippine debt is resilient because, credit-wise, the country is on an “improving path” with good tax collection, strong growth and better political governance, said Sergey Dergachev, a senior portfolio manager who helps oversee $13 billion of emergingmarket debt at Union Investment

the construction of big business establishments to protect small entrepreneurs here.

Currently, three malls are being constructed in Legazpi—the LCCAyala Mall, Yashano Mall and Gregorian Mall.

The SM City in Legazpi, according to Rosal, would be built within the Legazpi City Grand Terminal, near the Ibalong Centrum for Recreation and a few meters away from Metro Gaisano-Pacific Mall and Yashano Mall and a half kilo-

meter from LCC-Ayala Mall.

SM Prime Holdings currently has 58 malls, six of which are in China.

Aside from expanding malls in this city, Gaisano will also be putting up a condotel to cater to the growing number of tourists who visit Legazpi.

“With these investments and new malls, Legazpi City will be expanding as a trading hub in South Luzon as people from Leyte and Samar will only cross Ticao Island in Masbate. We’re expecting 5 million people in Legazpi once all business establishments are operational,” Rosal said.

Being a trading and services hub in South Luzon, as well as education and convention center, Rosal expects a booming economic

growth and more hotel investments in the city.

“Five years from now, Legazpi will be one of the country’s booming cities in South Luzon, with bigger taxes. We started from P200-million taxes from business permits to P700 million today. A few years from now, I expect about P1.1-billion income from local taxes with our new investments,” he said.

New investments are expected to pour into Legazpi two years before the completion of the Bicol International Airport (BIA) in Alobo, Daraga, Albay.

Rosal said the 69-hectare-old airport in Legazpi City will be converted into an economic zone as soon as the BIA becomes operational in 2017. PNA

India loan. . .

Continued from A1

in Jharkhand state after failing to secure land after six years. The decision will reduce its capital expenditure requirements by 360 billion rupees, it said.

Fund-raising slowed even as the average margin on loans denominated in either US dollars, euros or yen fell to 126 basis points over benchmark rates, the least since mid-2007.

“The investment cycle of India Inc. is yet to pick up,” said Prabal Banerjee, Mumbai-based president for finance and strategy at the Bajaj Group conglomerate. “This has led companies to hold back their major borrowing plans. No company wants to add leverage unless there’s a corresponding return visible in medium term.”

India will spend 1 trillion rupees on ports, power stations and roads this year, Junior Finance

Minister Jayant Sinha said earlier this month.

According to World Economic Forum estimates, Asia’s third-biggest economy needs to find some $640 billion by 2031 to develop its urban infrastructure, and the funding gap is about $80 billion to $110 billion.

Reserve Bank of India Governor Raghuram Rajan has reduced the benchmark repurchase rate by 75 basis points to 7.25 percent in three moves this year and economists forecast it isn’t done yet. Deutsche Bank AG said on June 19 it expects another 25 basis-point reduction because “monetary transmission is proving to be insufficient.”

Even though interest rates have moderated, they still “need to come down further to improve corporates margins and viability of new projects,” Axis Bank’s Rath said.

Bloomberg News

Monetary officials. . .

Continued from A1

Privatfonds GmbH in Frankfurt.

“Philippine dollar debt is mostly held by local retail clients and local banks,”he said. “This is a key differentiation with Indonesia where local involvement is relatively thin.”

The current-account surplus in the Philippines was $3.3 billion in the first quarter, compared with $1.5 billion in the year-earlier period, central bank data show. BSP Governor for Monetary Stability Sector Diwa C. Guinigundo forecast last month the excess would swell to $14.2 billion this year.

Remittances rose 5.4 percent to $7.8 billion in the first four months of 2015 from a year earlier. Revenue from business-process outsourcing, which in-

news@businessmirror.com.ph

cludes call centers, will increase 18 percent to $21.3 billion this year, according to the IT & Business Process Association of the Philippines.

Falling oil prices have benefited the Philippines, a net importer, while weighing on crude exporter Malaysia. Indonesia has been harmed by continued weakness in the prices of commodities like coal, palm oil and tin.

Filipinos will go to the polls in May 2016 to choose a new leader as President Aquino can’t run for a second six-year term. State spending rose last quarter at about half the pace it did in the previous three months, contributing to GDP growth of 5.2 percent.

“The recent bottlenecks in spending

and election-related noise should limit” the rally in Philippine dollar bonds, said Pedro Florescio, executive vice president and treasurer at BDO Unibank Inc., the nation’s largest lender.

The country’s global debt will be supported by a lack of supply, said Robert Ramos, the Manila-based chief investment officer at Union Bank of the Philippines.

The Bureau of the Treasury is looking at a borrowing mix of 86 percent local-currency notes in 2016, compared with 84 percent this year, according to National Treasurer Roberto Tan. The Philippines last tapped the international market in January, when it sold $2 billion of 25-year dollar bonds. Bloomberg News

■ Downside risk to the inflation outlook June: Slower global economic activity.

May: Global growth, even as prospects have become evenly balanced.

■ Domestic demand June: Remain firm despite the lowerthan-expected first quarter.

May: Remain robust.

■ Drivers for domestic demand June: Solid private household and capital spending, as well as buoyant business confidence.

May: Solid private demand and buoyant business sentiment.

■ Sustaining the economy ’s momentum June: Ample domestic liquidity and

Continued from A8

planned higher public spending.

May: Ample domestic liquidity and higher public spending.

Mapa said these changes point to a hawkish sounding BSP, or a central bank favoring a tighter interest rate regime.

“I’d still say that the statement was still rather hawkish given the focus on upside inflation due to El Niño. Also, BSP clearly knows that the slowdown in growth was due to the government’s inability to spend planned spending.

Thus, they expect this to correct and thus there would be no need to accommodate the slowdown with cuts,” Mapa said. The next meeting of the central bank Monetary Board will be on August 13.

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Saturday, June 27, 2015 A3

Legal experts confirm ‘selective justice’ under Aquino

S

By Joel R. San Juan

EVERAL legal experts have echoed Vice President Jejomar C. Binay’s accusation of “selective justice” under the Aquino administration.

Integrated Bar of the Philippines National President Vicente M. Joyas; Levito Baligod, an anticorruption crusader and lawyer; Fr. Ranhilio Aquino, dean of the San Beda College of Law Graduate School and University of the Philippines law Prof. Harry Roque Jr. agreed with Binay’s position that the Department of Justice (DOJ) appears to have employed double standard in its investigation and prosecution of corruption anomalies, particularly the Priority Development Assistance Fund (Pdaf) scam.

Baligod, an anticorruption crusader, said Binay was correct in criticizing the manner by which the Aquino administration is handling the investigation on corruption in the government. “[What Vice President Binay] said is true. This administration is timid to prosecute decadent allies, and brave to use the entire government apparatus to ram its political opponents,” Baligod said.

Baligod was a former lawyer of whistle-blowers in the PDAF scam led by Benhur Luy. “It is selective justice, it is immoral, and it is graft and corrup-

tion in itself,” the lawyer added.

For his part, Joyas, who heads of the 55,000-strong mandatory organization of lawyers in the country, said the delay in the filing of the third batch of Pdaf cases where several administration allies—Technical Education and Skills Development Authority (Tesda) Director General Joel Villanueva, Centrist Party Rep. Rufus B. Rodriguez of Cagayan de Oro and former Lakas Rep. Rachel Arenas of Pangsinan—have been implicated proves selective justice under the present administration.

“I do not agree with her [Justice Secretary Leila de Lima]. There is selective justice and that holds true up to this day,” he said.

“We are still surprised why is there such a delay. There appears to be a selective justice. We are all aware there are many people involved and, yet only three senators were charged,” the lawyer added.

Aquino agreed, saying that the double standard on investigations against opposition lawmakers and officials vis-à-vis administration allies has been very glaring.

“The ‘selection’ is clear. Why

BINAY

AQUINO

were some hurriedly prosecuted and why does it take so long to conclude investigations against the President’s allies? Has any high-profile ally like [Budget Secretary Florencio B. Abad been prosecuted?” Aquino pointed out.

Abad was included on the socalled Napolist submitted by alleged Pdaf scam mastermind Janet Lim-Napoles to de Lima early last year along with her supposedly tell-all testimony on the multibillion-peso racket.

Mea nwh i le, Roque cr it icized de Lima for denying the selective justice statement of Binay, who resigned from the Cabinet earlier this week.

“She’s playing blind and deaf to the fact that no one in the administration has been indicted despite COA [Commission on Audit] reports against administration allies on Pdaf and despite the Supreme Court ruling on DAP [Disbursement Acceleration Program],” stressed Roque, who was a petitioner in SC cases on Pdaf

and DAP. “There’s just no reason for the delay when you have common [pieces of] evidence, COA reports and whistle-blowers. It’s foot dragging since they don’t want to file, he claimed.

Philippines seeks neighbors’ help vs China

By Rene Acosta

T

HE country is in discussions with its neighbors, including two claimants to the Spratly Islands, as it moves for a regional defense and security cooperation and training, that is seen as directed against China’s aggressiveness in the disputed territory.

Defense Secretary Voltaire T. Gazmin said that the country is talking with Association of Southeast Asian Nations (Asean), particularly Malaysia, Indonesia and Brunei Darussalam for the possibility of forging a Status of Visiting Forces Agreement (Sovfa).

Gazmin, however, said the Philippines eyes a Sovfa with each of its three neighbors “for defense technology enrichment.”

The Sovfa will allow the country’s forces to train together with forces from the three countries in joint maneuvers and military drills, and as such, permits the temporary basing of Asean troops in the country.

“There are ongoing talks... discussions on Status of Visiting Forces Agreements with Malaysia, Indonesia and Brunei. They are part of the Asean,” Gazmin said during a forum on the proposed Visiting Forces Agreement with Japan where he was the guest speaker.

Threatened by neighbor DURING the forum, he said both the Philippines and Japan are threatened by a “common neighbor,” which he did not identify, although he was obviously referring to China. He later admitted to journalists after the forum that China is a threat from the “perspective of defense” because of its activities on the West Philippine Sea (WPS, South China Sea), where it was undertaking reclamation projects for military purposes.

Gazmin said there is a necessity for a Sovfa with the three countries because the country is lagging behind in military modernization, and it is only through the joint training that the Armed Forces can catch up with the foreign militaries by enriching the knowledge of its

members on new equipment and technology.

However Brunei, Malaysia and Indonesia are also against China’s expansive claims on the South China Sea and are supporting the Philippines’s push for the Asean to adopt a Code of Conduct governing South China Sea claimants.

The country only has a Sovfa with Australia, which was seven years in the making, and has an existing Visiting Forces Agreement with the US.

More military assets THE Air Force commander, Lt. Gen. Jeffrey Delgado, said that plans are afoot for the construction of additional hangars in the area of the Armed Forces Central Command (Centcom) so that they could accommodate more assets that would support the military’s mission in the WPS. Delgado said that because of the Centcom’s strategic location, it could support both Luzon and Mindanao, thus, additional hangars should be constructed in the area. “We intend to put up more hangars for our fighter aircraft in the future and our transport aircraft and helicopters,” he said.

Delgado said that the Second Air Division alone, which is based in Cebu could house more aircraft.

“We intend to put some more aircraft there once the aircraft arrive… modernization aircraft,” he said.

The Air Force is expecting for the arrival of multipurpose attack helicopters and a squadron of South Korean-made FA-50 lead in fighter jets, while the acquisition of a long range patrol aircraft, combat helicopters, maritime and mediumlift aircraft are being worked out.

Not stoking tension MALACAÑANG on Friday pressed China to heed an international clamor to stop its nearly finished artificial island-reclamation projects on the WPS that are seen to justify its extended territorial claims that encroach on its neighbors borders.

Pa lace Spokesman Edw in Lacierd a virtually dismissed as baseless China’s complaint that the

Philippine government, in allowing its troops to conduct joint naval exercises with the US and Japan in the vicinity of the disputed area, was “deliberately exaggerating the tense atmosphere” in the region.

“The Chinese has heard the concern of the international community regarding their reclamation activities,” Lacierda said on Friday, referring to calls for China to halt its massive reclamation projects.

Lacierda suggested, in turn, that it is the Chinese officialdom that holds the key to preserving peace and stability in the resourcerich region.

“If the Chinese [government] is concerned about the ‘tense atmosphere,’ the simple solution is to listen to the clamor of the international community that is to stop the reclamation activities,” he said.

Lacierda, however, voiced lingering doubts among Philippine officials saying, “the question is: Will China, as a responsible member of the family of nations, listen to the reasonable voice of the international community?”

At a Palace briefing on Friday, Deputy Presidential Spokesman Abigail Valte explained it is not Manila’s fault that many other parties, even nonclaimants, have expressed concerns on what is happening in the disputed area.

“It can’t be denied that a significant part of global trade that passes through this area” Valte said, noting that it, therefore, has an impact on those outside the dispute. She also assured that the Philippine government, “as a matter of policy, does not resort to exaggeration.”

“We have always engaged in rational discussions,” she added.

According to Valte, the Palace does not find it productive to “engage in exaggeration in discussions regarding the disputes we are involved in.”

“Given the fact that the Philippines has chosen a peaceful and rules-based approach to resolving the dispute, it is in our interest to keep discussions as objective as possible,” she added. With Butch Fernandez

Marcos on jailing of political foes

THE next president should not make it a government policy to jail political opponents, Sen. Ferdinand Marcos Jr. said on Friday.

Marcos said such policy, adopted in the past and present administrations, is counterproductive and divides the people.

“We should do away with what we have been seeing in the past few years when recent administrations adopted a deliberate campaign of vengeance against their political foes, practically making it a national policy,” Marcos said.

Former President Gloria Macapagal-Arroyo sent her predecessor President Joseph Estrada to jail on plunder charges. Arroyo, in turn, met the same fate under

the Aquino administration.

The Aquino administration had also actively sought the impeachment of former Chief Justice Renato Corona, who is an appointee of Arroyo and pressured Ombudsman Merceditas Gutierrez to resign owing to threats of impeachment.

Recently, opposition Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Revilla Jr. were jailed on allegations of corruption.

The three voted for the conviction of Corona during his impeachment trial.

Many political observers believe President Aquino may suffer the same fate, as Arroyo and Estrada owing to the SC ruling that declared unconstitutional the administration’s DAP, which funneled billions of public funds into various projects.

If Aquino had, indeed, violated the laws, then he should face charges that may be filed against him after his term, Marcos said.

However, Marcos said the next administration should not have a direct hand in the filing of such charges and should treat them as any ordinary criminal case.

“We should leave that culture of vengeance behind us. What the next president should strive is to unite the country so that every Filipino could work together for the good of our country—not for personal gain, not for the benefit of a party, but for the benefit of the entire nation,” Marcos added.

“The top priority of the next president should not be to go af-

ter political opponents and play politics. His priority should be how to push the development of our country, how to improve the lives of our people, how to grow the economy,” he added.

Tw o b u s i ne s s g rou p s d e nounced the ongoing word war between the Aquino administration and Binay, saying that the focus should shift to filling the vacancy at the Housing and Urban Development Coordinating Council (HUDCC) and the Office of the Presidential Adviser on Overseas Filipino Workers Affairs.

T he Ma k ati Business Club (MBC) and the Management Association of the Philippines (MAP) said that the word war that ensued following Binay’s resignation from the Cabinet is ill-advised.

“More than the word war, what is important is ensuring that competent and credible persons are appointed to the positions left by the VP. The work must continue on the concerns of housing and the overseas workers,” MBC Executive Director Peter V. Perfecto said.

MAP, on the other hand, had stronger words against the embattled Binay.

“The reaction of Binay, a presidential aspirant, is bad for the investment climate and confidence. His relationship w ith President Aquino dates a long way back; what he could have done is keep quiet when he resigned,” MAP President Francisco F. del Rosario said. With Recto

Mercene and Cathy Pillas

Economy

A4 Saturday, June 27, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

BBL seen as Mindanao’s ticket to board FDI boat

M

indanao has been missing the boat of foreign direct investments (FDI) in the country attributed to the high incidence of poverty in the region.

The Philippine government, through the Bangsamoro basic law (BBL), aims to lift the local economy of Mindanao, particularly in the Bangsamoro area, by promoting peace and stability in the region.

Philippine Institute for Development Studies senior research fellow and University of the Philippines School of Economics Prof. Erlinda Medalla said many investors had second thoughts of locating in Mindanao mainly due to the peace situation in the area.

In fact, data from the Philippine Statistics Authority showed that in the first quarter of 2015, Mindanao only attracted 2.0 percent of the country’s total FDI in the period, or some P417.2 million.

FDI inflows in Mindanao slumped by 77 percent from P1.8 billion in the first quarter of 2014.

“They need clear and stable

policies,” Medalla said, noting that the BBL will be Mindanao’s ticket to ride the boat of FDI coming in waves in the country.

“Even without the BBL, FDI are still coming, but they’re coming in trickles. We have missed the boat in many cases. They come in waves.

This is an opportunity to have now,” she pointed out.

She mentioned that it is now time for the government to hasten economic development in Mindanao by passing the BBL in order to attract more foreign investments as the Philippines is in its “sweet spot.”

“We have seen a bright spot in the region. This should not be another lost opportunity for Mindanao,” Medalla stressed.

“We are already pouring so many resources for the BBL. We need to decide; that is the most important,” she said. PNA

PHL aims to produce world-class seafarers with firm govt support

By Butch D. Enerio Correspondent

C

AGAYAN DE ORO CITY—The Maritime Industry Authority (Marina) in Northern Mindanao sees better years ahead in the implementation of its mandate, particularly in the regulation aspect of seafarers and schools offering maritime courses, owing to its increased funding and logistics.

Engr. Emmanuel Carpio, Marina regional director for Regions 10 and 13, said that with the government support to further develop the maritime industry in the country, there will be more quality graduates in the future, which would ensure and meet the demand worldwide for Filipino seafarers.

“As a single administration and regulating agency with regard to maritime-related endeavors, Marina will now be able to push further and institute quality education and trainings for deck officers and ratings, essential in maintaining the country’s reputation as the seafaring capital in the world,” Carpio said.

Lawyer Casimero Juarez Jr., Capitol University president who was the guest speaker during the celebration of the Day of the Filipino Seafarers with the theme: “Marinong Pilipino. Isulong ang Edukasyon at Pagsasanay,” on Thursday underscored the existence of thousands of graduates from maritime schools who are not onboard or not employed because they did not pass the standards of the International Maritime Organization.

He said the experience of the past where schools were accredited to

offer maritime courses by the Commission on Higher Education without regard of setting standards, has rendered graduates without jobs in their related field.

Juarez, who is running Capitol University, and who has been in the maritime education for 40 years, said seafarers should be given accolade and be in a higher standing in society as modern heroes who have largely contributed to the Philippine economy.

“Our seafarers should be on a pedestal and given the highest respect for their contribution. They are our modern heroes, unknown to many, who sacrificed being away from their loved ones just so to contribute with their earnings for our economy.”

Juarez said.

Marina said there are about 300,000 Filipino seafarers onboard international vessels occupying one-fourth of the total seafarers in the world, who are contributing $5 billion to $7 billion part of overseas Filipino workers remittances to the economy annually.

Juarez said that with Marina at helm in the development of the maritime industry, the country’s downturn by producing nonquality graduates would be corrected, where institutions without the capacity to meet the standards would not be allowed to offer maritime courses.

“What happened in the past was that the country was producing maritime graduates in quantity rather than of quality. And we do hope that only competent institutions would be given the responsibility to educate and train would-be seafarers worthy to be on board,” Juarez said.

T

he Netherlands’s Queen Máxima will be in the country for a three-day visit, from June 29 to July 1, to promote greater public access to financial services.

The Queen is visiting the country in her capacity as United Nations (UN) Secretary-General Ban Ki-moon’s special advocate for finance and development, and upon the invitation of the Philippine government and central bank, a UN news statement in Manila said on Friday.

On the morning of Tuesday, June 30, she will discuss inclusive finance with representatives of international organizations and the private sector.

She will then visit in the afternoon the province of Cavite, where she will speak with local businesses about how financial services, like how a bank or savings account, loan or insurance, could improve their economic development.

The Queen will give a speech in Manila on July 1, at the launch of the National Strategy for Financial Inclusion, a government action plan coordinated by the central bank that aims to enhance cooperation between ministries, government agencies and the private sector to improve the population’s access to financial services.

Prior to the launch, the Queen will meet with the governor of the central bank.

She will also take part in a discussion with parties involved in the national strategy. These include the Bangko Sentral ng Pilipinas, the departments of Finance, Social Welfare and Development, Education, and of Trade and Industry, and government agencies like the National Economic and Development Authority, the Insurance Commission and the Philippine Statistics Authority.

There will also be a meeting with the secretary of finance, as well as with the Speaker of the House of Representatives and the Senate President.

Queen Máxima was designated as UN Secretary-Gen-

QUEEN MÁXIMA

eral Ban Ki-moon’s special advocate for inclusive finance for development in September 2009.

In this capacity, she advises the secretary-general and works worldwide to make financial services accessible to all, including low-income groups and the small and medium enterprise sector.

In June 2011, Queen Máxima became honorary patron of the G-20 Global Partnership for Financial Inclusion. PNA

DTI proposes inclusion of SMEs in SGL

‘Spice girl’ An elderly garlic vendor fiddles with her cell phone as she waits for customers

to buy her spicy merchandise. The price of garlic in Metro Manila has remained steady, with the imported variety selling at P80 per kilo while its native counterpart is being sold at a pricier P250, according to the Bureau of Agricultural Statistics. NONIE REYES

Drop in power reserve prompts NGCP to place Luzon on yellow alert status

By Lenie Lectura

uzon was placed on yellow alert on Friday after reserves fell to 445 megawatts (MW).

According to the Manila Electric Co. (Meralco), which services the power distribution franchise for 22 cities and 89 municipalities, including the whole of the National Capital Region, the yellow alert lasted from 10 to 11 am and 12 noon to 3 pm.

“Reserve at 11 am was 526 MW and at 2 pm it was 445 MW,” said Meralco Spokesman Joe Zaldarriaga.

briefs

MERCOSUR COUNTRIES EYE TRADE OPPORTUNITIES IN PHL THE Mercosur free-trade bloc composed of South American countries, including Argentina, Brazil, Paraguay, Uruguay and Venezuela, is eyeing business opportunities in the Philippines.

The Philippine Chamber of Commerce and Industry (PCCI) said the organization will be hosting a trade and investment forum as there will be business delegations from MercosurAsean Chamber of Commerce (MACC) coming here on Monday.

PCCI President Alfredo M. Yao said MACC business delegates are seeking opportunities in sectors of meat, chicken and fish, soya and soybean meal, motorcycles, textiles, wines and ciders, pharmaceutical products, telecommunications, milk and cheese, leather products and olive oil.

Mercosur delegations are also eyeing to do business with Filipino companies, particularly in supplying prefab houses manufactured with synthetic materials, iron and aluminum; sandwich panels for housing external and internal walls; intelligent LED lighting systems; antennas for Internet coverage; treatment plants for sewage water, manufactured in modular structures with capacity for 10,000 to 60,000 inhabitants; solar energy and renewable-energy systems; sustainable architecture; LED traffic-light systems for cities, highways and routes; potential investors in manufacturing in Pilar, Argentina; products, systems and equipment for street and route pavement; sewage control systems; public transport.

PCCI invites local firms to explore business opportunities with Mercosur countries through a business forum.

Interested parties may call PCCI through 846-81-96 local 128. PNA

PHL WILLING TO ACQUIRE OTHER EXCESS JAPANESE DEFENSE EQUIPMENT

T

he Department of Trade and Industry (DTI) is proposing the inclusion of small and medium enterprises (SMEs) in the Super Green Lane Facility (SGL) Program of the Bureau of Customs (BOC) to facilitate SMEs’ compliance with Customs procedures.

In a news statement, the DTI said it is pushing for the expansion of the coverage of Executive Order 230-2000, or the SGL Program, to involve SMEs. This proposal can be part of the package of reforms being carried out under the Customs Modernization and Tariffs Act. “What is important is that we give due recognition to our SMEs, particularly to those who strive to keep a high level of compliance in doing business with Customs policies and requirements, providing them access to the same SGL, which were already made available to top 1,000 corporations,” Supervising DTI Undersecretary of Liaison Office for Legislative Affairs Prudencio Reyes said.

The SGL facility of the BOC is enforced through the Revised Kyoto Convention (RKC), which the Philippines is a signatory to. Under the RKC, countries are required to come up with special facilitation procedures for “authorized persons,” provided they meet the criteria specified by the BOC. Catherine N. Pillas

L

Pag-ibig workers and seafarers join the one-week celebration of the International Day of Seafarers on Thursday on TM Kalaw Street, Ermita, Manila. PNA

Dutch Queen sets manila visit

He said this was due to the emergency shutdown of Calaca unit 1 (240 MW). Moreover, there are other power plants that are on scheduled shutdown. These are the Malaya 1 (300 MW), Malaya 2 (350 MW), Limay 1 (100 MW), Limay 2 (70 MW), Tiwi A-2 (27 MW), Pagnilao1 (382 MW) and Santa Rita module 40 (264 MW).

Zaldarriaga said Quezon Power is also operating on limited capacity, from 460 MW to 190 MW. Early this month, Luzon was twice placed on yellow alert because of gas- flow restriction from the

Malampaya platform. When power reserves dwindle and fall below 647 MW, a yellow alert is issued by the National Grid Corp. of the Philippines (NGCP).

The Malampaya facility supplies natural gas to Kepco Philippines’s 1,200-MW Ilijan combined cycle plant and to the 1,000-MW Santa Rita and 500-MW San Lorenzo natural gas plants of First Gas, a subsidiary of the Lopezes’ First Gen Corp.

These gas plants, in turn, supply about 45 percent Meralco’s power requirement.

The country is open to acquire other military equipment, which may be declared surplus by Japan.

This was stressed by Department of National Defense (DND) Spokesman Dr. Peter Paul Galvez on Thursday.

“If they [Japanese] will have excess defense articles [in the form] of Hueys [UH-H helicopters] and C-130 cargo planes, we will be very much interested in acquiring them,” he said in Filipino.

Galvez said that it is easy for the Philippines to “absorb” these equipment as the country has the maintenance facilities, spare parts and knowhow to operate these machines as the Filipino military has the same type of planes in its inventory. He earlier confirmed the DND’s interest in acquiring P-3C “Orion” maritime patrol and surveillance aircraft from Japan.

“We are interested in acquiring them [P-3Cs], especially if they become excess defense articles, as we can acquire these at a very reasonable price that is advantageous to the government,” he added.

Sources said that Japan and the Philippines are talking about the possible transfer of two to four P-3C to the Filipino military. PNA

MORE THAN A THOUSAND EXAMINEES TOOK NCLEX IN Q1

A total of 1,183 Philippine-educated nurses took the US National Licensure Examination (NCLEX) for the first time from January to March this year in the hope of practicing their profession in America, House Assistant Majority Leader and Cebu Rep. Gerald Anthony Gullas Jr. said on Friday.

“The number is up 37.5 percent when compared to the 860 Filipino nurses who took the NCLEX for the first time, excluding repeaters, in the first quarter of 2014,” said Gullas, vice chairman of the House Committee on Higher and Technical Education.

The NCLEX refers to the National Council Licensure Examination administered by the US (National Council of) State Boards of Nursing Inc. The number of Filipino nurses taking the NCLEX for the first time is considered a reliable indicator as to how many of them are trying to seek gainful employment in America. PNA

Economy BusinessMirror

news@businessmirror.com.ph

briefs PCCI HOLDS PHILIPPINE BUSINESS CONFERENCE IN OCT The Philippine Chamber of Commerce and Industry (PCCI) will be holding the 41st Philippine Business Conference (PBC) this October, and will be giving focus on a stronger partnership between government and the private sector. A PCCI news statement the theme for this year’s PBC will be “Synergies in Partnerships with Global Competitiveness.”

Conference Chairman and past President of the Confederation of Asia-Pacific Chambers of Commerce and Industry Benedicto V. Yujuico said that both the private sector and the government are beset by their own set of problems and a key solution is by solidifying their relationship.

“The main challenge facing business is how to take advantage of new resources and markets while dealing with intense and growing competition, while for governments, it is how to design and implement supportive policies and strategies,” Yujuico said in a statement.

A prestigious annual dialogue between the government and private sector leaders, the 41st PBC will touch on a number of issues, including investment opportunities in the local, regional and global settings, and advancing international trade partnerships. “An intense focus of every Filipino businessman is to maximize the benefits offered by a market of 650 million consumers whose purchasing power is among the fastest growing in the world,” PCCI President Alfredo M. Yao said. Catherine N. Pillas

dpwh on the lookout for 1,396 young civil engineers The Department of Public Works and Highways (DPWH) will employ 1,396 young civil engineers to augment its work force in the regional and district offices nationwide.

In a news statemen, Public Works Secretary Rogelio L. Singson said that the Department of Budget and Management (DBM) has authorized the DPWH to hire additional civil engineers to augment technical capabilities to implement much bigger infra budget. “To meet the department’s target to increase infrastructure spending, we are hiring more than a thousand of dedicated civil engineers nationwide to be part of our team of field engineers,” Singson said.

The 1,396 civil engineers will be hired as Engineer II in the DPWH, with a monthly salary of P26,878.

An applicant must be a Bachelor of Science in Civil Engineering graduate; has passed the Civil Engineering Licensure Examination given by the Professional Regulation Commission (PRC); has a one year of relevant working experience with at least four hours of training. Preference is given to those who are not more than 30 years old, Singson said.

Those who meet the requirements must submit to the DPWH the following: (1) completed Personal Data Sheet (CSC Form 212); (2) covering letter; (3) original or authenticated Transcript of Records; and (4) authenticated copies PRC license and Certificates of Training. As an additional requirement, qualified applicants will have to pass the Computer Literacy Exam being administered by the DPWH Information Management Service free of charge.

P.A.F. PLANS TO DEVELOP FURTHER CEBU AIR FACILITIES AS more aircraft become available for the Philippine Air Force (PAF), plans are now under way to further develop its air facilities in Cebu, according to PAF chief Lt. Gen. Jeffrey Delgado.

He said this is possible as the Benito Ebuen Air Base, which is in Lapu-Lapu City, Cebu, is very strategic as aircraft base, a facility can access and support operations in the western, southern and northern parts of the country. Incidentally, the PAF will celebrate its 68th founding anniversary at the former Clark Air Base in Pampanga this coming July 1 with President Aquino as the keynote speaker.

“We intend to put up more hangars for our fighter aircraft in the future and our transport aircraft, and helicopter hangars [in our Cebu air facilities] due to its strategic location,” the PAF chief said. PNA

Saturday, June 27, 2015 A5

Millions of world’s poorest children left behind despite progress–Unicef

U

nited Nations Children’s Fund (Unicef) warned on Thursday that the global community will fail millions of children if it does not focus on the most disadvantaged in its new 15-year development road map.

Uncef’s final report on the childrelated Millennium Development Goals (MDGs), Progress for Children: Beyond Averages, says that despite significant achievements, unequal opportunities have left millions of children living in poverty, dying before they turn 5, unschooled and suffering chronic malnutrition.

“The MDGs helped the world realize tremendous progress for children—but they also showed us how many children we have left behind,” Unicef Executive Director Anthony Lake said at a news briefing on Thursday in New York. “The lives and futures of the most disad-

vantaged children matter—not only for their own sake, but for the sake of their families, their communities and their societies.”

Disparities within countries have left nearly 6 million children from the poorest households twice as likely to die before their fifth birthday; and far less likely to achieve minimum reading standards than children from the richest households. In effect, 58 million children globally don’t go to primary school. The report also highlights the 289,000 women who die every year while giving birth.

Continued failure to reach these children can have dramatic conse-

quences. At current rates of progress, given the projected global population growth by 2030, the report estimates that: n 68 million more children under 5 will die from mostly preventable causes; n An estimated 119 million children will still be chronically malnourished; n 500 million people will still be defecating in the open, posing serious risks to children’s health; n It will take almost 100 years for all girls from sub-Saharan Africa’s poorest families to complete their lower secondary education.

“Especially in typhoon-prone countries like the Philippines, the effects of disasters can offset gains from years of development efforts.

In emergencies and in conflict zones, it is the most marginalized children and families that bear the disproportionate burden of natural hazards, damages to life, livelihood and properties. Aggravated economic burden can exacerbate poverty, impede survival, development and protection of children,” Unicef Philippines Representative Lotta Sylwander said. “It is

Malampaya: The future of energy, today

imperative that we built in disaster risk reduction, preparedness and appropriate response as an essential part for development planning.”

Meanwhile, the report also highlights notable successes since 1990: n Under-5 mortality dropped by more than half; from 90 to 43 per 1,000 live births; n Underweight and chronic malnutrition among children under 5 decreased by 42 percent and 41 percent, respectively; n Maternal mortality has decreased by 45 percent; n Some 2.6 billion people have gained access to improved drinking water sources.

The gaps between the poorest and the wealthiest are also narrowing in more than half of the indicators Unicef analyzed: n In many countries, greater gains in child survival and school attendance are seen in the poorest households. n The gap in maternal mortality rates between low- and high-income countries halved between 1990 and 2013, from 38 times higher to 19 times higher.

T

W

henever someone turns on the lights, an island of steel and concrete located 80 kilometers northwest of Palawan is constantly at work, providing clean, reliable and naturally abundant fuel that is converted to electricity. This powerhouse is the Malampaya Deep Water Gas-to-Power Project, more commonly known as “Malampaya.”

A first of its kind in the Philippines, Malampaya heralded the birth of the natural-gas industry in the country, saving the government billions of pesos from importation of expensive oil abroad to fuel power plants and generate electricity. Since its inception in 2001, the project has actually been providing a stable supply of energy, meeting 35 percent to 40 percent of Luzon’s power needs.

Malampaya derives natural gas from the Camago-Malampaya reservoir, a gigantic reserve of natural gas discovered in 1992 by Shell Philippines Exploration B.V. The natural gas flows through wells before arriving at the production platform, where it is separated from water and condensate, which is a highquality byproduct. The dry natural gas then traverses a 504-kilometer subsea pipeline to fuel three power stations in Batangas.

As part of the original field development plan of 1998, additional two phases of the Malampaya project had already been put in place.

Execution of Malampaya Phase 2 (MP2) was completed in 2013 with the drilling of two new production wells. Meanwhile, the current

Malampaya Phase 3 (MP3) project entails the design, fabrication and installation, and commissioning of a second Malampaya offshore platform. This Depletion Compression Platform (DCP), in combination with the two new wells, will sustain the gas output of the site for many more years to come.

February 2015 finally saw the completion of the fabrication and tow-out, as well as installation of the Malampaya DCP, marking another historical milestone for the country being the first oil and gas platform designed and constructed in the Philippines. It was designed

by Fluor Philippines and was built at the Keppel Shipyard in Subic, Zambales. The construction of DCP was done over a period of two years with a team of more than a thousand workers.

Workers tapped for the construction underwent mandatory training to build their competencies up to world-class oil and gas industry health, safety, and environment (HSE) standards. These were carried out at the dedicated Malampaya HSE Training Center, which has so far upgraded the skills and technical know-how of more than 9,000 Filipino workers to Opito (Offshore Petroleum Industry Training Organization) international standards.

As such, the MP3 project has placed the Philippines in the world map of oil and gas platform fabrication, demonstrating the excellent technical capability of Filipinos.

This competitive edge is important in opening up possibilities for future

oil and gas projects globally and in the region.

To further contribute to economic development, Shell companies in the Philippines has adhered to a Local Content Development Policy, which requires the utilization of local materials, equipment, and manpower in the exploration, development, manufacturing, distribution, and sale of Philippine crude oil, gas, and its products. Shell Philippines ensures that it conducts all of its endeavors for the sustainable growth of the local oil and gas industry without compromising business principles, quality, health, safety and environmental standards.

Claudeth Mocon-Ciriaco

Three firms secure bid documents for CGC lot

By Catherine N. Pillas

The Malampaya Phase 3 project has elevated the technical know-how and competitiveness of Filipino engineering talent to world-class standards.

“Unicef will continue to work with the Philippine government to help strengthen local health, education and social protection systems to help more children to survive and thrive.

Smarter investments tailored to poverty reduction and meeting the needs of the most vulnerable children can yield short- and long-term dividends, and this is a global objective of Unicef’s work with governments across the world,” Sylwander added.

As world leaders prepare to adopt the Sustainable Development Goals (SDGs), the most disadvantaged children should be at the heart of the new goals and targets, Unicef said.

Better data collection and disaggregation—going beyond averages such as those used to measure the MDGs—can help identify the most vulnerable and excluded children and where they live. “The SDGs present an opportunity to apply the lessons we have learned and reach the children in greatest need—and shame on us if we don’t,” Lake said, adding that greater equity in opportunity for today’s children means less inequality and more global progress tomorrow.

he state-owned Bases Conversion and Development Authority (BCDA) said on Friday that three firms have secured bid documents for the selection of BCDA’s joint venture partner in the development of 288 hectares of Clark Green City (CGC).

BCDA President and CEO Arnel Paciano D. Casanova said in a news statement that the three firms that secured the bid documents were Ayala Land Inc., Filinvest Land Inc. and Megaworld Corp.

Casanova also announced that, upon the request of an interested proponent, BCDA has extended the deadline for the issuance of the Terms of Reference (TOR), as well as the submission of Eligibility Documents and Final Proposals.

He added there are other proponents who have expressed interest to purchase the TOR but are still undertaking their due diligence in preparation of their bids.

Casanova said the extension of the deadline “will also provide an equal opportunity to other interested proponents to be able to purchase the TOR and participate in the bidding.” The new deadline for the issuance or purchase of the TOR is on September 3 from the original date of July 1.

Similarly, the new deadline for the submission of eligibility documents and final proposal is on

Construction acrobats in action

September 8 at 12 noon from the original date of July 3.

The BCDA is looking to partner with a well-established corporation with proven track record in the development, marketing, management and leasing of large property mixed-use development.

It would be recalled that 16 firms attended the pre-bid conference held on June 9.

The partnership shall be in the form of a joint-venture corporation (JVC) to be owned 45 percent by the BCDA and 55 percent by the winning bidder. The joint-venture agreement (JVA) will have a period of 50 years renewable for another 50 years.

The JVC shall have the full development and usufructuary rights over the 288-hectare property.

Earlier, Casanova said the usufructuary right may be converted to full land ownership if and when the law allows it in the future, subject to mutual agreement of the two parties.

Casanova noted the development of CGC will definitely boost the economy of Central Luzon.

“It will serve as an economic driver that is expected to generate jobs and attract investments in the region.”

The minimum acceptable bid is set at P160 million or approximately $3,600,000 million. The winning bidder shall be responsible for forming the JVC pursuant to the JVA to be signed with the BCDA.

Workers climb iron scaffoldings as they rush the construction of a pillar for the elevated Skyway 3 near the Ninoy Aquino International Airport Terminal 3 in Pasay City before seasonal downpour. Nonie Reyes

Opinion BusinessMirror

A6 Saturday, June 27, 2015

editorial

How US may change the PHL Constitution

T

HE United States-led Trans-Pacific Partnership (TPP) is the most contentious international treaty in memory.

It starts from the fact that the US government has not released a full copy of the agreement. In fact, the most detailed information comes from the group WikiLeaks. The controversy has been going on for 18 months, and negotiations started five years ago.

For an agreement that will cover about 40 percent of the global economy, shrouded in secrecy and confusion even from supporters, no one seems that enthusiastic about TPP, except government officials and multinational corporations.

US labor unions say that the TPP will allow a massive inflow of foreign workers pushing Americans out of their jobs. South Koreans are opposed, because the potential to disrupt their beef and rice industries is very real, as they must open up to foreign imports. Because the TPP requires signatories to adhere to US copyright regulations, Japanese artists are furious that the Japanese tradition of “self-publishing” will be curtailed.

All countries must also follow a drug-patent extension provision, which, according to the US publication the New England Journal of Medicine, will “cause an increase in medical drug prices in less-developed countries, as generic drugs might not be available until the US Food and Drug Administration gives its approval.”

As recently as April 3, Trade Secretary Gregory L. Domingo, said there is not enough time for the Philippines to join the TPP. The song has now changed. From the BusinessMirror on June 25: “The Philippines is definitely joining the US-led Trans-Pacific Partnership bloc once presented the opportunity, Trade Secretary Gregory L. Domingo said on Thursday.”

But here is the kicker: “The DTI noted that the TPP will require liberalizing restrictions on foreign-equity ownership and government procurement and adopting zero tariffs for all products with sensitivities to agriculture and industrial products. The DTI conceded that ‘selected sections of the Constitution may be amended at a certain point when the Philippines takes a solid step toward joining the TPP.’” While we will give Domingo the benefit of the doubt for thinking out loud about possible future discussions, the irony of all this is unmistakable.

The Philippines is “definitely joining” a trade agreement of which no one in the public has seen the details. We have not been enlightened on any of the specific benefits or disadvantages to the Philippines. The TPP requires changes to the economic provisions of the Philippine Constitution that has strong opposition and that Congress has already tacitly rejected.

Why the sudden urgency for joining the TPP? Is there any chance at all that the Philippines must be a part of the TPP and change the Constitution because of US pressure in light of the current situation in the West Philippine Sea? Things are never what they appear to be.

Since 2005

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

T. Anthony C. Cabangon Jun B. Vallecera

Associate Editor News Editor City & Assignments Editor Special Projects Editor

Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon

Online Editor

Ruben M. Cruz Jr.

Research Bureau Head Creative Director Chief Photographer Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

06272015

What if the US dollar dies?

John Mangun

T

HE last earthquake on the faults running through Metro Manila occurred several hundred years ago. We know that only through geologic record, as no one kept any sort of historical record of that event. Yet, we are interested in understanding the risk and preparing for it, even if it might be another hundred years before anything happens.

Yes, a major earthquake could happen tomorrow, but there is no particular reason to assume that will come to pass.

The foreign-currency exchange market (FX) and why a currency has a particular rate of exchange is a mystery to most people, although the reason is simplicity itself: the market decides. The foreign-currency market is the largest in the world, trading the equivalent of trillions of dollars around the clock and realistically never stopping, as the Middle East trades on the weekends.

Nations and their central banks can “peg” or fix the exchange rate of their currency to a specific “price” or keep it trading in a specific band of movement. Examples of countries with fixed rate to the US dollar are Hong Kong, Cuba, Saudi Arabia and Venezuela. Nations that peg to the euro are Bulgaria, Denmark and the countries using the Central African

HOM

www.businessmirror.com.ph

REGIONAL OFFICES

n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO STATION MANAGER: JENNIFER B. YTING E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU STATION MANAGER: JULIUS A. MANAHAN E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN STATION MANAGER: RAMIR C. DE GUZMAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building, Rizal Street, Dagupan City

CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO STATION MANAGER: RYAN C. RODRIGUEZ E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS STATION MANAGER: AILYM C. MATANGUIHAN E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: Ground Floor, Dimalanta Building, Pioneer Avenue, General Santos City CONTACT NOs.: (083) 301-2769/ 553-6137/ 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO STATION MANAGER: MARIPAZ U. SONG E-MAIL ADDRESS: homeiloilo@yahoo.com ADDRESS: 3rd Floor, Eternal Plans Building,

Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI STATION MANAGER: CLETO PIO D. ABOGADO E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal St., Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA STATION MANAGER: JUSTO MANUEL P. VILLANTE JR. EMAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993

Printed by BROWN MADONNA Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila

CFA franc. But, even these nations have different rates when compared to countries which do not use their pegged currency. But even nations that peg or “band” their exchange rate do so, because the market allows them to do that. Thailand pegged its baht to the US dollar until the market would no longer exchange dollars at the pegged rate.

Of the nearly $6 trillion transacted daily in the FX market, the vast majority of currency-trading volume is based on speculation—traders buying and selling for short-term gains based on price fluctuations. However, that is a somewhat distorted figure, since virtually all of these transactions are effectively “bets” between two individual people or institutions.

The actual transactions in currency pairs, other than those created for betting, are made to take physical delivery. If a Japanese import company wants to buy American

China’s latest reform shouldn’t be its last William Pesek

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

OUTSIDE THE BOX

lumber, it must first “buy” US dollars to settle the transaction in the same way an American must buy euros to then buy a German Mercedes-Benz.

More than 80 percent of all global trade is settled in US dollars.

This creates a rather strange situation. If a Philippine importer wants to buy something from China, it, in effect, must buy dollars to pay the Chinese exporter. The Chinese exporter then uses the dollars to buy US goods or exchanges the dollars for Chinese renminbi. But what if all nations started settling their payments not in US dollars but in home currencies, with the Philippine importer paying in Philippine pesos?

The “value” of the dollar is not based on any intrinsic value but because it is used as a medium of exchange. Currently, China has signed a currency-swap agreement with 28 countries, including Russia, the United Kingdom, Germany, Canada, Brazil, Indonesia and South Korea.

These nations will no longer buy dollars when doing business with China.

Needless to say, the Philippines and China do not have a currency-swap agreement but we do have one with Japan.

What would happen if the majority of nations started settling trade without US dollars?

In just the past 100 years, the international monetary system has collapsed three times: in 1914, in 1939 and in 1971, when the US severed the dollar’s last ties to gold. In 1914 the UK was the banking and financial

BLOOMBERG VIEW

W

HEN the Chinese government proposed this week to end its decades-long policy of capped bank lending, there was good reason to be skeptical about its motives. China had just had its biggest weekly stock plunge since 2008. The new policy—which would scrap a rule limiting bank lending to 75 percen t of deposits—seemed like the government’s latest attempt to artificially sustain economic growth at 7 percent.

That suspicion may be entirely justified. But it’s too soon to know for sure.

Removing restrictions on bank lending could also turn out to be a big step by President Xi Jinping toward internationalizing China’s financial system and putting it on more solid long-term footing.

But that will hinge on whether Xi has the courage to go one step farther, by ditching the government-imposed ceiling on deposit interest. Such a shift, which China’s central bank calls one of the “riskiest” the country must consider, would prove Xi is willing to put market forces in control of the country’s financial system.

Removing the cap on interest rates that lenders pay on deposits would show

that the Communist Party is prepared to tolerate the uncertain effects of an open competition for cash. While it would mark a vital step toward internationalizing the yuan, it would also be a financial Pandora’s box. The increase in volatility in the banking system could mean higher borrowing costs for companies, including the state enterprises that dominate China and enrich the Communist Party bigwigs looking over Xi’s shoulder.

That’s why Xi’s party would probably prefer to put off reforming interest rates for a few more years. But in the absence of such a shift, Tuesday’s lending-cap proposal will only serve to gin up stock prices—at least until the stock bubble bursts.

Wednesday’s (June 24) 3.5-percent plunge in the Shanghai Composite suggests investors are beginning to sense China’s rally is mostly driven by momentum, not corporate earnings. Xi’s team hasn’t backed up the 124-percent surge in Shanghai shares over the past 12 months with structural changes to the Chinese economy. Moves to rein in state-owned enterprises have been vague and modest. The shadow-banking system Beijing pledged to curtail still churns out untold trillions of dollars of credit. Economic policy still favors smokestack industries that blacken China’s skies over services.

China’s worsening debt profile makes the stock boom look even more ephemeral. For a sense of the scale of China’s debt problem, consider Bloomberg’s recent reporting on the northern port city of Tianjin. The city had planned to build its own Manhattan skyline dotted with ultra-modern skyscrapers, riverside parks and six-lane highways. Today it looks more like the set of a post-apocalyptic zombie movie.

Local-government debt alone now exceeds the $3.7 trillion of currency reserves Beijing has spent the last 15 years amassing. The Communist Party underwrote this mania by cutting the cost of opening trading accounts and creating new avenues for margin lending. It also mounted a huge PR offensive to cloak share ownership in patriotic terms.

center of the world, and the system fell because of bank runs in England and as World War I started, preventing England from financing world trade.

The same happened in 1939, as World War II began, again as global trade financing was disrupted. The third time in 1971 was when the US stopped the dollar’s convertibility to gold and the value of the dollar was no longer fixed. Up to 1971, gold had been the global settlement “currency.”

If and when the US dollar is no longer the trade currency, the effects would be monumental. If nations no longer had to buy dollars to settle trade, the value of the dollar would plummet, as there would be minimal demand, except for when buying US goods and services.

The control of the US government would crash also, as no longer would it have the power to decide to pick and choose who it wants to cut off from the US-dollar-based financial system, as it has recently done with Russia.

Like the earthquake, this will probably not happen tomorrow.

But the Philippines must prepare for the time to come—which is almost inevitable as things are going now—when the US dollar is not king of the currencies.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

The good news is that Xi still has a window to get serious about putting China’s financial house in order. Two private-sector gauges of economic activity —HSBC’s purchasing managers’ index and a survey from advisory firm China Beige Book—suggest that the government’s stimulus efforts are gaining traction. Recent moves to ease monetary policy and bolster provincial finances have increased the odds economic growth will approach Beijing’s target for the year. Even property “has started to show signs of improvement after 11 consecutive months of price decline,” says Liu Li-Gang of Australia & New Zealand Bank. All this should give Xi breathing space to pursue more ambitious reforms, including on deposit interest.

Still, as long as China’s stock gains are outpacing its fundamentals, there’s reason to fear a massive fallout. At the moment, there are two ways for financial turbulence in China—whose $10trillion economic output is now roughly double Japan’s and nearly eight times South Korea’s—to reverberate around the globe: a debt crisis or plunging equities. Policy-makers from Seoul to Brasilia can only hope both don’t crash at once. With his shift on bank-lending policy, Xi may be signaling that he’s ready to create a more rational economic system. All the rest of us can do is hope the skeptics are wrong.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Our Lady of Piat: Strong testament of the Filipino faith

Caritas Manila strengthens social entrepreneurship programs Rev. Fr. Antonio Cecilio T. Pascual

Cecilio T. Arillo

database

T

HERE is no doubt that, for centuries now, our society lives within the structures of the Catholic Church. All the 81 provinces, 144 cities and 1,490 towns in the country have churches right at the middle of our social, economic and political life.

Even our historical past had its early beginnings with the church as the starting point when the country was created into a cohesive nation.

A recent publication of Calidad Humana, the project of former Ambassador of Chile Roberto Mayorga, depicted the truth that the Filipino identity is parallel to the Calidad Humana of early Chilean society.

Calidad Humana referred to this Filipino identity as the kabutihang loob of the Filipino society. Kabutihang loob is an authentic Filipino expression of relationships with his fellowmen and country. At present, nevertheless, there are reasons to fear that Filipino society is experiencing the gradual extinction of these old authentic values of the Filipino society, said Ernesto R. Gonzales, a noted historian and economist.

A perfect example today of our historical past is the quiet town of Piat in Cagayan Valley, where, for centuries now, thousands of devotees, tourists and pilgrims flock to venerate and celebrate every July 2 the Feast of Our Lady of Piat, one of the world’s most worshipped and miraculous Marian images of the Blessed Virgin Mary.

Known as the Black Virgin Mary, the Our Lady of Piat was sculptured in Macau, then a colony of Portugal, upon the request of Dominican missionaries and was eventually brought to the Philippines in 1604 and placed in Lal-lo, Cagayan, then the Episcopal See of Nueva Segovia.

From Lal-lo, the image was brought to Piat in 1622 and enshrined in one of the two altars of the Church of Santo Domingo. As a testament to the love and devotion to the Our Lady of Piat, Fr. Juan de Santa Ana sent the image to Tuguegarao in the same year and ordered a “more beautiful” version from Manila to replace the image.

The move was met with public protest, and the people demanded that the original image be returned to them. Father Santa Ana relented and returned the image.

However, a d ispute a rose between the people of Piat and Tuao as to where the sanctuary should be constructed. A solomonic solution was found when it was agreed to have the sanctuary built between Piat and Tuao.

Construction was completed in 1623 and on December 26, the image of Our Lady of Piat was brought in solemn procession from the parish of Santo Domingo to its new sanctuary.

“History tells us,” Gonzales said, “that the church was also in the hub of our struggles for freedom and self-determination as a free people of God. This church became the source of our spiritual strength; the beacon of revolutions and change in our country’s past and present; and is still the source of our values and identity as one nation who loves her God and people.”

One member of the local aristocracies of Piat, Doña Ines Maguilabbun, took upon herself the responsibility of camarera (caretaker) to the Our Lady of Piat. It was she who introduced the pious custom of keeping a votive light burning day and night before the image, a practice kept up to this date.

In the 1700s the people built a more spacious church of more

Known as the Black Virgin Mary, the Our Lady of Piat was sculptured in Macau, then a colony of Portugal, upon the request of Dominican missionaries and was eventually brought to the Philippines in 1604 and placed in Lal-lo, Cagayan, then the Episcopal See of Nueva Segovia From Lal-lo, the image was brought to Piat in 1622 and enshrined in one of the two altars of the Church of Santo Domingo. durable materials on a hill about a mile from the parish church of Santo Domingo. The present sanctuary was built by Rev. Fr. Diego Pinero and later restored by Fr. Jose Gurumeta in 1875.

On June 22, 1999, the sanctuary was elevated as a basílica minore (minor basilica) by the Vatican through rites officiated by the Vatican’s representative, Antonio María Cardinal Javierre Ortas.

It was the first basílica minore in the region and the fourth in the Philippines.

The Our Lady of Piat is known for its many miracles spanning since its arrival.

One such popular miracle described in Wikipedia was in 1624 in the Itawes agricultural region, an area often experiencing severe droughts, when not a single drop of water had fallen for months as farmers tirelessly planted their seeds in vain. Fathers Juan de Santa Ana and Andres de Haro, vicars of Piat and Tuao, respectively, organized a procession and rogation, imploring from heaven the muchneeded rain “But they were afraid,” said the Wikipedia, “that the new Christians might falter in their faith or lose their trust in the power of prayer if the much-wanted result were not achieved.” As the two fathers insisted that the people repent from their sins during the procession, rains began to pour, first over Piat and then over Tuao, lasting for three days. That year the region saw an abudant harvest of crops.

Among other miracles attributed to the Miraculous Lady were the boy who recovered from insanity; the devastating flood when the Itawes riverbank overflowed but did not damage the shrine; the man freed from the grip of an attacking crocodile; and the child cured from leprosy after praying for help.

The feast of the 411-year-old miraculous icon starts every last week of June with the Sambali Festival, a religious and cultural rite which includes a novena, sports tournament, beauty contest, cultural dances and other indigenous presentations.

On July 1 Archbishop Sergio L. Utleg of the Archdiocese of Tuguegarao will celebrate a Mass at 5 p.m., followed by a procession, and it will be ended on July 2 by a succession of Masses from 2 a.m. to 6:30 p.m.

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

Saturday, June 27, 2015

SERVANT LEADER

T

HE Caritas Manila believes that meaningful assistance must be an empowering process and are geared toward integral human development, and spiritual and socioeconomic development of the poor.

As part of strengthening its social entrepreneurship programs, the Caritas Manila recently opened new outlets for its Caritas Margins and Segunda Mana.

On June 22 an exhibit was opened at the Globe Telecom Inc. Tower Art Gallery in the Bonifacio Global City, featuring artworks made by inmates of the National Bilibid Prison using pyrography or wood burning.

Also made available are products of Caritas Margins made by marginalized families, such as bags from Samar; buri fans from Quezon; banig mats from Albay; food items from Iloilo; and organic fruits and vegetables produced by farmers from Quezon, Sorsogon, Tarlac and other provinces.

The opening of the exhibit was graced by yours truly, together with Globe officials, namely, Reymond Aguilar, workplace management head; and Quimby Rodriguez, executive staff.

Last month Caritas Margins also opened an outlet at Level 1, Greenfield District Pavilion, United Street, Mandaluyong City. The blessing and ribbon-cutting ceremony was also attended by Sen. Paolo Benigno Aquino, Mandaluyong Mayor Benjamin Abalos, Renena Prieto and Emilie Cruz.

Caritas Margins works handin-hand with the Caritas Manila’s livelihood program, providing skills training, like tailoring, food processing and production of herbal soaps, perfumes and home-care product.

It helps the livelihood of poor communities by encouraging their entrepreneurial spirit. To date, Caritas Margins supports over 500 families in Metro Manila and the provinces by providing them livelihood opportunities and in marketing their products.

Caritas Margins has a wide array of products, from food, home care and personal-hygiene products,

bags and more, made by urban-poor partners trained under the Caritas Manila skills training program and accessories, as well as handicrafts and artworks by resident-inmates under the Caritas Restorative Justice program.

Margins, coined from “marginalized,” aims to empower the socially excluded individuals or groups through social entrepreneurship.

Through the generosity of Jeffrey Campos, chairman of Greenfield Development Corp., Caritas Margins was able to get a pro bono space at Greenfield District Pavilion.

Other stores are at Caritas Manila Head Office, 2002 Jesus Street, Pandacan, Manila; Mary Mart Mall, Valeria Street, Iloilo City; kiosks in Glorietta 3 and Greenbelt 1, Ayala Center, Makati City; and at Asian Hospital in Muntinlupa City.

Also last month the Caritas Manila Segunda Mana opened its 20th charity outlet at Ang Palengke Natin service cooperative on Hito Street, Barangay Longos, Malabon City.

The blessing and opening was attended by Malabon City Vice Mayor Jeannie Sandoval, and other former Malabon City officials Ben Galauran and Enzo Oreta.

Segunda mano are preloved items, such as clothes, shoes, bags, toys, home and fashion accessories, at affordable prices. The Caritas Manila’s Segunda Mana advocates the 3Rs: reuse, reduce and recycle. These 20 charity outlets, likewise, provide

A7

employment to almost 6.7-percent unemployed from the urban-poor sector and livelihood to families who make trading as their source of income.

You can support Segunda Mana by donating items which you no longer need, have excess of, or your company’s old but reusable items, slowmoving and old inventories. You may visit any of our 20 charity outlets in our main office at 2002 Jesus Street, Pandacan, Manila, or in our partner malls in Starmall Edsa, Alabang and Las Piñas branches; Victory Mall Caloocan, Alabang, Pasay, Las Piñas and Lacson-Quiapo branches; Sta. Lucia East; Greenfield District; Isetann Recto; Riverbanks Marikina; Farmer’s Plaza Cubao; Makati Square; Harrison Plaza, Comoda Ville Antipolo; San Roque Cathedral in Caloocan; and Sanctif Josef Commercial Malabon.

Proceeds of both Caritas Margins and Segunda Mana help sustain the Caritas Manila flagship Youth Servant Leadership and Education Program, which focuses on education for the underprivileged youth, supporting 5,000 scholars nationwide.

To know more about the programs of Caritas Manila, visit www.caritas. org.ph. For donations, call 563-9311.

For inquiries, call 563-9308 or 5639298. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph.

For comments, e-mail veritas846pr@ gmail.com.

The UN at 70: United Nations disappoints on its 70th anniversary

By James A. Paul | Inter Press Services Part 1

N

EW YORK—It is hard to imagine today the public enthusiasm that greeted the founding of the United Nations in 1945. After massive suffering and social collapse resulting from the Second World War, the UN seemed almost miraculous—a means at last to build peace, democracy and a just society on a global scale.

Everywhere, hopes and aspirations were high. Seven decades later, results have fallen far short. On this anniversary, we can ask: What might have been possible and what is still possible from this institution that has inspired such passion, positive and negative, over the years?

The organization, of course, was not set up by the United States and its allies to fulfill the wishes of utopian thinkers. Though the Charter of 1945 invokes “We the Peoples,” the war victors structured the UN as a conclave of nation-states that would express the will of its members—particularly themselves, the richest and most influential countries.

Despite statesmen’s pronouncements about noble intentions, the UN’s most mighty members have never seriously considered laying down their arms or sharing their wealth in an unequal world. They have been busy, instead, with the “Great Games” of the day—like securing oil and other resources, dominating client states and bringing down unfriendly governments.

Nevertheless, through the years, the UN has regularly attracted the hopes of reforming intellectuals, nongovernmental organizations (NGOs), humanitarians and occasionally even some governments—with ideas about improvement to the global system and well-being on the planet. In the run-up to the 50th anniversary in 1995, many reports, conferences and books pro-

MAIL

posed UN institutional reform, some of which advocated a direct citizen role in the organization.

Among the ideas were a chamber of directly elected representatives, a vitalized General Assembly and a more representative Security Council, shorn of vetoes. Some thinkers wanted an institution “independent” from—or, at least, buffered against—the sordid arena of great power politics. But most reforming ideas, including relatively moderate changes, have come to naught.

Governments of all stripes have had a very short-term perspective and a narrow, outmoded conception of their “national interest” in the international arena. They have shown remarkably little creativity and farsightedness, and they have taken care not to threaten powerful status quo interests.

The UN’s 70th anniversary has come at a moment of exhaustion and frustration among reformers that has sapped belief in creative change. We are at a low point in UN institutional prestige and public support. Not surprisingly, the organization has attracted few proposals and initiatives this time around.

As we know, the planet is facing unprecedented problems that the UN is in business to address: poverty, gross inequality, civil wars, mass migration, economic instability and worsening climate change. Secretaries-general have regularly appointed panels of distinguished persons to consider these “threats,” but member-states

The International Monetary Fund, the World Bank and global financial interests have pushed neoliberal reforms for three decades, undermining national tax systems and downsizing the role of public institutions in economic and social affairs. Governments have privatized banks, airlines and industries, of course, and they have also privatized schools, roads, postal services, prisons and health care.

The vast new inequalities have led to more political corruption, a plague of lobbying, and frequent electoral malfeasance, even in the oldest democracies. As a result, nation-states command less loyalty, respect and hope than they did in the past. Traditional centrist parties are losing their voters and the public is skeptical about governing institutions at all levels, including the UN. When nations cut their budgets, they cut the budget of the UN, too, small as it is. Bold steps to improve the UN would require money, self-confidence and a long-term view, but memberstates are too weak, politically unstable, timid and financially insecure to take on such a task. As states slouch into socially, economically and politically conservative policies, the UN inexorably follows, losing its public constituency in the process.

Tightening UN budgets have tilted the balance of power in the UN even more sharply toward the richest nations and the wealthiest outside players.

Increasingly, faced with urgent needs and few resources, the UN holds out its beggar’s bowl for what amounts to charitable contributions, now totaling nearly half of the organization’s overall expenditures.

This “extrabudgetary” funding, enables the donors to define the projects and set the priorities. The purpose of common policy-making among all member-states has been all but forgotten.

To be continued

Politics may overshadow fight vs insurgency

G Please e-mail your letters to the editor to opinion@businessmirror.com.ph.

Letters chosen for publication in this section are edited for brevity and clarity.

have not been ready to produce effective solutions.

Most of the money and energy at the UN in recent years has poured into “peacekeeping,” which is typically a kind of military intervention outsourced by Washington and its allies.

The organization, dedicated in theory to ending war, is ironically now a big actor on the world’s battlefields. It has a giant logistics base in southern Italy, a military communications system, contracts with mercenaries, an intelligence operation, drones, armored vehicles and other accouterments of armed might. Meanwhile, the Department of Disarmament Affairs has seen its funding and status decline considerably.

The richest and most powerful states like to blame the smaller and poorer countries for the UN reform impasse (fury at the “G-77”—the group of “developing” countries—can often be heard among well-fed Northern diplomats at posh New York restaurants).

But, in fact, the big powers (with Washington first among them) have been the most ardent “blockers”—strenuously opposed to a strong UN in nearly every respect, except military operations.

The big power blocking has been especially strong when it comes to global economic policy, including proposals to strengthen the Social and Economic Council. The same powers have also kept the UN Environment Programme weak, while opposing progress in UNsponsored climate negotiations.

Poor countries have complained, but they are not paragons of reform either: Their leaders are inclined to speak in empty populist rhetoric, demanding “aid,” while pursuing personal enrichment. We are far from a game-changing “new Marshall Plan” or a global mobilization for social justice that reformers rightly call for. Well-meaning NGOs repeat regularly such ideas, with little effect, in comfortable conference venues.

The UN has weakened as its member-states have grown weaker.

eneral Gregorio Pio P. Catapang Jr. is now less than a month from the mandatory retirement age. When he came into office as chief of staff of the Armed Forces of the Philippines, he projected a lot of things, including the very bold promise to declare the whole country as “peaceful and ready for further development,” before he steps down.

Regardless of how that “declaration” translates on the ground, we

know that he’s not going to reach his target. But we already know that, don’t we? With the latest additions of Negros Occidental, Albay and Camarines Sur, he’s still short by around 20 more provinces.

We need to understand, though, with the persistent insurgency problem rooted at socioeconomic, political and even ideological stagnation in both rural and urban areas of the country, this isn’t something the

military could, or should, solve on its own. Ignoring possible statistical meanderings that serve as basis for the declarations, P-Noy’s administration still have plenty of time to render insurgency irrelevant. But a lot of things could happen and momentum could sway both ways with the 2016 elections getting closer. We need everyone’s cooperation.

Jessie R. Martinez Ternate, Cavite

2nd Front Page BusinessMirror

A8 Saturday, June 27, 2015

www.businessmirror.com.ph

EU lifts ban on PHL carriers T

By Recto Mercene

he Philippines achieved a historic milestone of sorts when the European Union (EU) announced on Thursday that all aircraft registered with the Civil Aviation Authority of the Philippines (Caap) can now fly to the 28-member bloc.

T he a n nou ncement s were made simultaneously in Manila at 6:30 p.m., and in Brussels, Belgium, at 10 a.m., lifting the ban that the EU air-safety committee imposed in 2010.

“That gives me the great pleasure of sharing with you that all airlines certified in the Philippines have been removed on Friday from the European Air Safety List, and are, therefore, allowed to operate in European airspace,”

HOTCHKISS: “The Caap [Civil Aviation Authority of the Philippines] achieved the EU [European Union] aviation safety standards due to good corporate governance, and the road to sustainability is still in progress until 2020.”

EU Chargé d ’Affaires Lubomir Frebort said.

Frebort made the announcement at the Caap headquarters in Pasay City, in the presence of ranking officials of the agency, including representatives of various commercial airlines and members of the media.

Prior to the lifting of the ban, only Philippine Airlines (PAL) and Cebu Pacific were allowed to access EU airspace. The EU lifted the ban on PAL in 2013, while Cebu Pacific started flying to European countries last year.

Philippine carriers could not fly to the EU after the Federal Aviation Administration downgraded the country’s aviation status to Category 2.

Frebort said a formal letter announcing the lifting of the ban will follow and will be sent to various stakeholders.

Caap chief William Hotchkiss III (Ret.) AFP said they were able to regain the “world safety standard

after five years of hard labor,” and promised that the road to sustain it is “a work in progress.”

“The Caap achieved the EU aviation-safety standards due to good corporate governance, and the road to sustainability is still in progress until 2020,” Hotchkiss said.

Frebort said the EU lifted the ban based on two criteria— the oversight capacity of the Caap when it comes to the airlines registered in the Philippines, and the capacity of management of those airlines to comply with all those safety requirements.

“The EU assessed those criteria and once there was guarantee [from the Caap], the EU air-safety committee decided that this capacity is sustainable,” he said.

He added that the Philippines is an important partner of the EU with a sizable and growing aviation sector.

“Today’s breaking news can serve as a bright example for other countries which still encounter

difficulties in matching their safety oversight capabilities with the growth of their industries,” Frebort added.

He said the Philippines’s achievement is “very significant because, for the first time, not just some, but all airlines registered in the country were removed from the ban.”

“In case of other countries, a couple of airlines are removed, but the majority of others are still on the blacklist,” Frebort added.

He said there are still 20 countries covered by the EU ban, affecting more than 223 airlines which are on the blacklist. “From time to time, some airlines of some countries are removed from the list to comply with air-safety standards, but this is the first time that the entire sector, all airlines registered in one country, in this case the Philippines ,were removed from the blacklist.”

Frebort said opening the country to Europe would probably encourage other European airlines

to come back, since only KLM f lies to Manila through a thirdcountry connection.

“I believe some big European airlines are now in the process of assessing what might be the best time for resumption of flights in the Philippines, and maybe the fact that Philippine carriers want to fly to Europe will encourage them also for practical reasons to resume their direct flights to the Philippines,” he said.

He added that aside from the lifting of the ban, European airlines could also be encouraged to come, since the issue of double taxation has been resolved a few years back.

AirAsia Philippines CEO Josephine Cañeba hailed the lifting of the ban.

“This will encourage more Europeans to travel to the Philippines and increase our tourists to be able to reach the DOT [Department of Tourism] target of 10 million and improve the economy which is doing pretty well at the moment,” she said.

‘Monetary officials show signs of subtle shift in policy stance’

By Bianca Cuaresma

T

he Bangko Sentral ng Pilipinas (BSP) may be showing the first signs of a subtle shift in language in the formulation of monetary policy, an economist from a local banking giant said.

In a special commentary following on Thursday’s monetary-policy meeting, Bank of the Philippine Islands (BPI) Research Officer Nicholas Antonio T. Mapa said a careful analysis would show hints of a subtle shift in tone of the monetary authorities in June this year.

Mapa compared the central bank ’s concluding polic y statements in June this year with the policy statements in the May 2015 policy meeting of the BSP and found differences in the language of the BSP in terms of the appropriateness of monetary-policy settings, risks to inflation outlook, domestic demand conditions

and economic momentum.

Changes in the way the central bank’s language toward the monetary-policy setting is often watched closely by markets, as these dictate forward guidance to their future movements without central banks giving too much away.

In particular, Mapa found the following changes: ■ Appropriateness of monetary-policy settings June: Within-target inflation forecasts and underlying strength of domestic demand conditions.

May: Manageable inflation environment.

■ Upside risk to the inflation June: Impact of stronger-than-expected El Niño on food prices and utility.

May: Pending petitions for adjustments in electricity rates and possible power.

See “Monetary officials,” A2

Tubbataha Reef gets certificate of excellence from TripAdvisor

P

UERTO PRINCESA CITY—American travel web-site company TripAdvisor.com has awarded the Tubbataha Reefs Natural Park (TRNP) the prestigious certificate of excellence for consistent great travel reviews posted by travelers all over the world.

According to the Tubbataha Management Office (TMO), headed by Angelique Songco, the certificate of excellence makes the world-known marine park as winner this year of the travel superiority award due to a number of reviews posted by tourists who have gone to the site off Cagayancillo town in Palawan.

The certificate was signed by Stephen Kaufer, president and CEO of TripAdvisor.

The TMO thanks all its visitors for the positive reviews they posted about their

Inflation. . .

experience in Tubbataha.

Many of the reviews actually mentioned Tubbataha as one of their favorites and one of the best sites they have visited.

The TMO shares the award to the dive operators, who are in the frontline of tourism activities in Tubbataha, for keeping the standard of live-aboard and diving services above par.

T he T R NP is a n u nder water nature reserve that “is considered both a mecca for scuba divers and model for coralreef conservation.”

It is a 97,030-hectare marine-protected area (MPA) in Palawan, the westernmost Philippine province. It is located 150 kilometers southeast of Puerto Princesa City, at the heart of the Coral Triangle, the global center of marine biodiversity. PNA

Continued from A1

only be 2 percent.Should inflation hit 2 percent, which is the ceiling of Tetangco’s forecast for the month, the average inflation for the period would be more or less 2.2 percent.

In either case, the numbers are a deceleration from the previous year’s inflation averaging 4.4 percent.

Inflation trended up in the mid months last year and peaked in the July/August period, a development that further boosts price pressures in the remaining months as statistical base effects come into play.

The central bank, nevertheless, remained confident that inflation this year will fall within the government’s target as it did the past six years.

“We may continue to see low rates of inflation in the very near term. We see inflation moving back up to within target range toward the latter part of this year,” BSP Managing Director Francisco G. Dakila Jr. said after the rate-meeting of the Monetary Board on Thursday.

The BSP lowered its inflation forecast for the year to only 2.1 percent from 2.3 percent announced earlier. For next year, the BSP said inflation was seen hitting 2.5 percent, slightly lower than the 2.6 percent earlier announced.

“Moving forward, the BSP will remain watchful of developments in price pressures and stands ready to undertake policy action to help ensure price and financial stability,” the central bank governor said.