BusinessMirror June 8, 2015

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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 20148,Vol.2015 10 No.Vol. 40 10 No. 242 Monday,

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TOLLWAYS ARM OF METRO PACIFIC INVESTMENTS CORP. SETS SIGHTS ON ROAD PROJECTS IN C. LUZON

MNTC keen on bidding for CLEX Life A WANTED: FRESH IDEAS INSIDE

B L S. M

PULIT ISLAND, Palawan— The tollways arm of Metro Pacific Investments Corp.(MPIC) is looking at participating in two more road-construction projects under the government’s flagship infrastructure program, a senior executive said over the weekend.

‘MANG BEN’ THE GREAT ALL ACCESS: THE FUTURE IS BRIGHT FOR LIZA SOBERANO

Constant unfailing care

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EAR God, in any unforeseen situation, we be rest assured that You are always with us. There is no place where You are not there. No place where You cannot keep us safe and secure. No place where we can hide away from You. No time that You can ever forsake us. Your loving protection is mightier than any circumstance. We know, we are blessed by Your constant unfailing care. Amen.

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SILENT UNITY PRAYER, YETTA CRUZ AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Monday, June 8, 2015 D1

A tribute to ‘Mang Ben’ the great ❶

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❼ ➑ ❶ PINK horse hair-draped gown ❷ BLACK and white checkered kaftan modeled by Marina Benipayo ❸ GOLD checkered kaftan modeled by Patty Betita ❹ POLKA dots kaftan modeled by Aya Abesamis, daughter of Ben Farrales muse Desiree Abesamis

❺ ONESHOULDER fully beaded black gown ❻ YELLOW-GOLD Muslim-inspired dress modeled by Patty Betita ❼ BLUE draped dress modeled by Aya Abesamis ❽ THE Dean of Philippine Fashion Ben Farrales with SM Megamall Mall Manager Egbert Lim, SM SVP for Marketing Millie Dizon and Filipino Heritage President Armita Rufino at the recent Ben Farrales Tribute Fashion Show at SM Megamall’s Mega Fashion Hall.

T’S not often that people get to see the masterful artistry of design legend Ben Farrales outside the usual avenues of posh social gatherings and exclusive fashion shows. That said, mallgoers could only have regarded as a privilege the rare opportunity to see the couture collections of Ben Farrales, the Dean of Philippine Fashion, in a fashion show and exhibit held recently at SM Megamall’s Mega Fashion Hall. A joint project of the Filipino Heritage Festival Inc. and SM, with support from the National Commission for Culture and the Arts, the show was held in time for the Heritage Month celebrations. Fashion, after all, is an integral part of our culture, and the presentation gave a whole new generation of stylish women a glimpse of Mang Ben’s creative genius. These included timeless pieces that celebrate his work: vibrant Muslim-themed dresses (as inspired by Cotabato women), printed kaftans, draped horse-hair gowns, and fully beaded blouses and skirts that artfully display a woman’s shape and beauty. The audience was also spellbound with the allure of elegant Maria Claras and traditional ternos as only Mang Ben could do Filipiniana. A reprise of an earlier tribute fashion show, the clothes were worn by Mang Ben’s muses: Annette Coronel, Celine Magat-Lopez, Suyen Chi-Sia, Izza Gonzalez-Agana, Marina Benipayo, Patty Betita and Desiree Abesamis, along with upcoming models Aya Abesamis, Justine Gabionza and Emerald Villahermosa. Among Filipino designers, Ben Farrales is most famous for his Muslim-inspired look where tribal elements and indigenous materials are woven together, his Filipiniana works of art, and color-rich designs. His creations are unmistakably Filipino and without question world-class, and the event honored his artistry and love for his craft. The event paid tribute not only to Mang Ben’s artistry, but also his advocacies that made him a recipient of the 2005 10 Outstanding Filipinos.

Florsheim regional exec visits Manila

SPECIAL REPORT

FOR EL NIÑO MITIGATION

FLORSHEIM Regional Executive Eric Leung

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OP Florsheim Regional Executive Eric Leung returned to Manila recently to further highlight the significance of the Philippine market for its growing global presence. “The Philippines is the third biggest market in Asia-Pacific region. We see the relevance of our brand here and commit to continuously address the fashion requirements of every Filipino, male and female,” Leung said. Florsheim Philippines (tinyurl.com/ p6bkphm) grows with an additional store in Ayala Fairview Terraces in Quezon City, its 10th in the country which Leung visited. In an intimate gathering with select members of the media and bloggers, Leung talked about the brand’s 22-year partnership with Retail Specialist Inc. (RSI), the exclusive distributor of Florsheim around these parts, current and exciting future fashion trends, and the Florsheim edge.

“We have been partners with RSI for over 22 years now. Through them, Florsheim is made available to the Philippine market— competitively priced and expertly showcased in strategically located stores in prominent malls in Manila, Cebu and Davao.” Leung also shared his impressions on the discerning taste of Filipinos when it comes to footwear. For classic brands like Florsheim, which was established in 1982, loyal customers are maintained by making sure that the classic styles remain relevant and updated. New customers are gained with the development of new styles that come in a variety of colors. Florsheim enjoys consumer preference particularly because it supplies the need of consumers for the basic and the new— produced with premium-quality raw materials and meticulous product development. “We have a rich heritage incomparable

to others. Our focus remains on designing sophisticated, elegant and contemporary shoes that cater to all walks of life. We make our shoes using leading-edge technology and superior workmanship that results in exceptional quality, comfort and styling that people around the world have grown to love for the past more than 120 years.” As for trends, Leung sees men going for a more directional, rounder toe shape with neutral tones like cognac and taupe. Women, on the other hand, will continue to see the man shoe and ankle bootie increasingly become popular, with the gradual introduction of flats coming back in to fashion. Consumers will also continue to look for comfort, flexibility and durability when buying quality classic and fashionable shoes, he said, adding that the Asian market will direct its sights on fashion, especially for young executives.

LIFE

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CRAZY IDEAS BusinessMirror

www.businessmirror.com.ph

Monday, June 8, 2015 E 1

GET BUY-IN FOR YOUR CRAZY IDEA B D B

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OUR boss told you to “think outside the box.” You found a great idea, prepared an amazing pitch—and still got shot down. We like to think that great ideas are recognized from the start, but that’s rare. We’re not always so

good at recognizing the value of innovative thinking. In fact, in an experiment by Jennifer Mueller,

managers were more likely to reject the very ideas that excited customers. The most creative ideas also are likelier to look impossible to execute, even if they are entirely feasible. How can we persuade others that our ideas are worth investing in? Everett Rodgers, a sociology professor at Ohio State University, published the now-famous “Diffusion of Innovation” study in 1962 and coined the term “early adopter.” Rodgers gathered data from more than 500 studies on

why ideas catch on. He identified five essential influencers: Relative advantage is the degree to which an idea or product is perceived as better than the existing standard. If your idea can be framed as an advantage over existing products, it stands a far better chance of being tried. Compatibility refers to whether the idea is a logical extension of the status quo. The less compatible your new idea is with existing systems, the harder the adoption. Complexity concerns how readily

How marketing is evolving in Latin America B N K

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ATIN America is a modern marketer’s dream. By 2020 nearly one out of every 10 dollars in the world economy will come from Latin America. The region will soon represent 9 percent of global gross domestic product, with 640 million customers. It also has the fourth-largest mobile market in the world, with social-media adoption surpassing that of the US. Positioned at the forefront of digital and mobile adoption, Latin America provides insight into how new marketing trends are taking hold on a global scale. At HubSpot, we surveyed 2,700 marketers in Latin America about inbound marketing, which involves capturing customers’ attention with content through social media and organic search—a more efficient approach to generating sales in the Internet era than traditional “push”

marketing efforts. Our research reveals that inbound methods are a particularly good fit for small- and medium-sized businesses. A few highlights show how marketing, and especially inbound marketing, are evolving in Latin America:

Inbound marketing is commonplace

THE vast majority (86 percent) of Latin American marketers surveyed were familiar with inbound marketing, and 60percent said they practice it today.

The cost of acquiring leads is lower

COMPANIES using inbound techniques spend 63 percent less to acquire new leads than those that do not. That’s likely because inbound marketing focuses a marketer’s efforts on reaching buyers when they are already interested.Outbound techniques are far more expensive, and often involve flooding the market, including those

who are not necessarily interested, with messages to lure buyers.

Marketing automation software is not prevalent yet

MORE than one in every three companies in North America purchases some type of marketing automation software, which automates processes such as sending e-mail campaigns to segments of a database, guiding them to marketing offers and collecting their data. By comparison, very few companies in Latin America use marketing software today, and only 3 percent of respondents listed automation as their top priority for software features. Instead, these marketers are more focused on content creation and search engine optimization. Why? Generally, leads from inbound techniques, in which someone is already searching for a solution, tend to close more rapidly than

leads from outbound methods.

Visual and video content are more important in latin america

SEVENTEEN percent of marketers in Latin America reported prioritizing visual and video content, compared to 11 percent of their North American counterparts. With higher adoption of mobile and social in this region, it makes sense that this type of content would be prioritized. In today’s increasingly online world, small- and medium-sized businesses with less capital are more empowered than ever to gain market share from larger rivals by expanding their reach faster and inexpensively. Global businesses are not only embracing the inbound marketing trend, they’re driving it forward. Nataly Kelly is the vice president of marketing at HubSpot.

Be a leader who can admit mistakes T

B J W

HIS might sound obvious, but if you want to build a more engaged work force you need to engage. Whether you are a CEO or a frontline manager, you must work hard to connect faceto-face with your people. But most leaders can’t sit down with every person in the company, in every office around the world. So what should you do instead? In my experience as CEO of Red Hat, I’ve learned that being accessible and approachable is critical to effective leadership. I try to connect with associates

whenever I can, either in person or via electronic correspondence. And nothing builds engagement more than being accountable to the people in your organization. You have to have the confidence to own your mistakes and admit when you’re wrong. Think about it: Who would you trust—the person who denies anything is amiss or the person who admits his error and follows up with a plan to correct it? I’ve found that leaders who show their vulnerability foster greater engagement among their associates. Early in my tenure as CEO, we acquired a company whose

underlying technology wasn’t entirely open source. But rewriting the code would mean months of work. After much debate, I made the call to go to market with the product as is. Big mistake. Both our associates and our customers disliked the product. There was only one thing to do at that point: rewrite the code. Now we would be off schedule by more than a year. The delay caused quite a bit of anger and frustration among Red Hatters. But I admitted I was wrong to the staff and my board of directors, and I told them we were doing our best to address the mistake. That earned my staff’s trust.

When you don’t make time to explain why you’ve made a decision, people may assume the worst: that you’re detached, dumb or don’t care. When I explained my original rationale, people understood. Explaining why decisions were made builds engagement which also makes you a stronger leader. Being accessible, admitting mistakes and saying you’re sorry aren’t liabilities. They are tools you can use to build your credibility and authority to lead.

people can grasp the new idea or use the new product. If you have to spend significant time explaining how your idea will work, it’s never going to win people over. Trialability is the degree of effort involved in implementing the innovation. If an idea requires significant investment before returning any advantage, it’s less likely to be deemed worth trying. If it can’t be tried on a small scale, it’s less likely to be adopted on a large scale. Observability refers to how discernible the results are to people

B S A, D D  P M.A. S

HAT should leaders do to boost their organization’s ability to innovate? The list of options is seemingly endless. Set up a new-growth group. Change the reward system. Form a venture investment fund. Build an open innovation platform. Hire seasoned innovators. Too frequently, however, companies decide what they’re going to do before determining whythey’re doing it. First you need to answer a fundamental question: What problem does innovation solve?

A clear problem innovation can solve is creating new growth

PERHAPS competitive intensity has increased or a new development has emerged, or a company’s core business has slowed. Meeting growth and profit objectives now requires a company to boost its ability to create new businesses that wouldn’t naturally result from day-to-day operations. In this case, efforts are best isolated from the core business to minimize distraction. Start by building what we have called a minimum viable innovation system, a focused set of interventions designed to kick-start new growth.

David Burkus is the author of The Myths of Creativity: The Truth About How Innovative Companies and People Generate Great Ideas. He is also founder of LDRLB and assistant professor of management at Oral Roberts University.

A different problem is how to compete more effectively in existing markets

THROUGH innovation, perhaps frontline salespeople can find,

Or you may want to tackle both problems simultaneously

THAT is, reap new growth from existing operations while also pursuing business beyond its current boundaries. Here, efforts should focus on institutionalizinginnovation by working on under lying systems that govern resource allocation and decisionmaking. Such efforts, because of their scale and scope, require senior leadership commitment. Innovation is not a one-size-fitsall proposition. Taking the time to determine which strategy is appropriate will focus your attention and accelerate the impact of your innovation efforts. Scott Anthony is the managing partner of Innosight. His new book is The First Mile: A Launch Manual for Getting Great Ideas into the Market. David Duncan is a senior partner with Innosight. Pontus M.A. Siren is a partner in Innosight’s Singapore office .

© 2013 Harvard Business School Publishing Corp. (Distributed by The New York Times Syndicate)

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U.S. UPS PRESSURE Perspective BusinessMirror

E4 Monday, June 8, 2015

SOUTH CHINA SEA WATCH

US ups pressure with overflights

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HE dispute over the strategic waterways of the South China Sea has intensified, pitting a rising China against its smaller and militarily weaker neighbors who all lay claim to a string of isles, coral reefs and lagoons known as the Spratly and the Paracel islands. Only about 45 of them are occupied. The area is one of the world’s busiest shipping routes, rich in fish and potentially gas and oil reserves, but it has now emerged as a possible flashpoint involving world powers and regional claimants. A look at some of the most recent key developments:

THE alleged ongoing reclamation of Subi Reef by China is seen from Pag-asa Island in the Spratly Islands in the South China Sea, western Palawan, on May 11. Gen. Gregorio Pio Catapang, the Philippines’s military chief, has flown to the Filipino-occupied island of Pag-asa amid territorial disputes in the area with China, vowing to defend the islet and help the mayor develop tourism and marine resources there. RITCHIE B. TONGO/POOL PHOTO VIA AP

IN this May 24, 2015, file photo, an antisurface gunnery is fired from China’s Navy missile frigate Yulin during the “Exercise Maritime Cooperation 2015” by Singapore and Chinese navies in the South China Sea. BAO XUELIN/XINUA VIA AP

U.S. RATCHETS UP PRESSURE ON CHINA

THE US military has begun actively—and more publicly—challenging China’s sovereignty claims over half a dozen artificial islands Beijing has been rapidly constructing through massive land reclamation. On May 22 a US Navy P-8A Poseidon surveillance aircraft—a militarized version of the Boeing 737—flew from Clark Air Base in the Philippines over Mischief Reef and Fiery Cross Reef, previously submerged coral features that China occupied in the mid-1990s and late 1980s, and is now expanding into a landmass several times their original size. Recent satellite images show the construction of an airstrip, port facilities, cement factories and barracks, among other installations. US defense officials also revealed that China had put two large artillery vehicles on one island. In a video captured by CNN, which had a crew on the P-8 flight, China’s navy dispatcher warned the plane eight times to leave the area, and each time the US pilots responded by saying: “I am a United States military aircraft conducting lawful military activities acting outside national airspace. I am with due regard in accordance with international law.” The US refuses to recognize China’s sovereignty over disputed islands. Defense Secretary Ash Carter said the US will continue to enforce freedom of navigation in what it considers international waters. US officials are concerned that

China could use the islands to fortify its claims and gain the upper hand by force and intimidation. Washington is considering more military flights and naval patrols, possibly within 12 nautical miles of the islands—a parameter China considers its territorial waters. The littoral combat ship USS Fort Worth, among the Navy’s most modern vessels, in May completed its patrol of the South China Sea. It encountered a Chinese navy ship, but they contacted each other to avoid any mishap, according to US military officials. Capt. Fred Kacher, commodore of the destroyer squadron, said routine operations like this in the South China Sea “will be the new normal” as four more littoral warships are expected to be deployed in the region.

CHINA STANDS BY ISLANDBUILDING, TELLS MILITARY TO PROTECT SEAS

CHINA says it is “extremely concerned” with the possibility that the US could start patrolling close to the islands. Foreign Ministry spokesman Hua Chunying says freedom of navigation does not mean that foreign military ships and aircraft can enter another country’s territorial waters or airspace at will. Hua said that China has always safeguarded the freedom and safety of navigation and overflight in the South China Sea. Defense Ministry Spokesman Yang Yujun compared the island-

IN this June 28, 2014, file photo, US Navy personnel raise their national flag during the bilateral maritime exercise between the Philippine Navy and US Navy, dubbed Cooperation Afloat Readiness and Training, aboard the USS John S. McCain in the South China Sea near waters claimed by Beijing. NOEL CELIS/POOL PHOTO VIA AP

building to ordinary construction, such as road-building going on elsewhere in the country. He says such activities are designed to satisfy both military and civilian purposes. Yang says the issue has been brought to the fore by an increase in surveillance activities and an effort to “deliberately play up the issue in order to smear China’s military and raise tensions in the region.” “I don’t rule out that certain countries are looking for excuses to take certain actions,” Yang said. Communist Party newspaper Global Times warned that Washington should not test Beijing’s restraint or China would have “no choice but to engage.” In the newly updated report on its military strategy, China has added “open seas protection” to its traditional “offshore waters defense.”

COLD WAR REDUX?

THE US and China may not agree on the South China Sea, but the world powers are unlikely to start a conflict over it. Instead, the South China Sea could become a new theater of Cold War-style confrontations involving close-in military flights and naval run-ins, the US arming old allies (the Philippines) and seeking new ones (Vietnam). US Secretary of State John Kerry expressed Washington’s deep concern with China’s islandbuilding when he visited Beijing in May. Chinese Foreign Minister Wang Ji politely but pointedly dis-

U.S. Defense Secretary Ash Carter shakes hands with his Vietnamese counterpart Gen. Phung Quang Thanh after the two signed a joint vision statement between the two defense ministries in Hanoi, Vietnam, last Monday. Carter is on a three-day visit to Vietnam to deepen military cooperation between the two former foes. AP/TRAN VAN MINH

PERSPECTIVE

missed it. Both stressed the importance of dialogue. Wang said that the differences between China and the US could be managed “as long as we can avoid misunderstanding and, even more importantly, avoid miscalculation.” “There aren’t any silver bullets to resolving this,” said Assistant Secretary of Defense for Asian and Pacific Security Aff airs David Shear. “It’s going to take time, and it’s going to take some

determined diplomacy by us and with our partners.” Sen. John McCain, chairman of the Armed Services Committee, asked for supplying lethal weapons to Vietnam and disinviting China from a major Pacific military exercise next year. However, Adm. Harry Harris, who just took over the US Pacific Command, says China’s invitation stays and the two countries must engage if they are to build a better relationship.

C  A

Thailand scrambles to boost image on human trafficking

attract and retain customers; or internal support functions can deliver more with less. In this case, innovation mindsets and behaviors need to be infused into the day-to-day activities of a broader population. High-leverage interventions might include investing in employee training or dedicating a team to help others with common innovation activities, like designing and executing experiments.

MONDAY MORNING Jim Whitehurst is the president and CEO of Red Hat and the author of the book The Open Organization.

dinner on Saturday. Specifically, the company is interested in vying for the second phase of the CLEX, as the first phase of the toll-road development project will be implemented under a loan from Japan. Phase One will involve the construction of a thoroughfare that will interconnect Tarlac and Cabanatuan in Nueva Ecija. The state has

trying the idea. Those first testers have to experience clear results to share with others. Regardless of how enthusiastic you are about your idea, you must assess it against these five factors. If most are lacking, perhaps it’s time to rethink your idea or refine your pitch.

Innovation isn’t the answer to all your problems W

In a media briefing here, Manila North Tollways Corp. (MNTC) President Rodrigo E. Franco said his company will be vying for the Central Luzon Expressway (CLEX) and the Plaridel Bypass Tollroad once these public-private partnership (PPP) deals have been placed on the auction block. “Since both are in the north, MNTC will be keen to participate in these projects,” he said over

LAST WORD

“TURNING an underwater rock into an airfield simply does not afford the rights of sovereignty or permit restrictions on international air or maritime transit.”—US Defense Secretary Ash Carter, speaking at the Shangri-La Dialogue security conference in Singapore.

The Associated Press writers Hrvoje Hranjski in Bangkok and Jim Gomez in Manila contributed to this report

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PESO EXCHANGE RATES

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ANGKOK—Thailand is eager to show its newfound toughness on human trafficking, taking reporters on patrols and tours of former camps; cooperating with neighboring countries and the US; and arresting dozens of officials—including a high-ranking officer in the military that now controls the country. The junta even had a “National Anti-Human Trafficking Day.” The Southeast Asian country is trying to dissuade Western governments from leveling economic sanctions, but it has a daunting enemy: history. “Thailand remains a major center for human trafficking.” Those words were emblazoned on a huge headline in a Thai daily

US 44.8080

JAPAN 0.3603

newspaper printed nearly three years ago. The country’s answer was largely to ignore the problem, until recent events made that impossible. The discovery of 36 bodies at abandoned traffickers’ camps near Thailand’s southern border with Malaysia has intensified international pressure on Thailand to crack down on smugglers. So has a subsequent crisis involving thousands of migrants who were stranded at sea by their traffickers—and whose boats were pushed back by Thai officials. Those migrants, mainly Bangladeshis and ethnic Rohingya migrants from Myanmar, are just part of a human-trafficking problem that also includes Thai fishing boats that have used slave labor.

UK 68.8699

IN this February 25, 2010, file photo, a pond is dried up due to an El Niñoinduced drought in Jones, Isabela province. NANA BUXANI/BLOOMBERG

B A S. D | Correspondent  M G P First of three parts

IN Spanish El Niño means “the little child.” But there is nothing “little” in the weather phenomenon that bears the Spanish name. In a May 27 article by Bloomberg, forecasters said changes in the weather caused by El Niño may have a global impact from the rice lands of the Philippines to the food markets of Mexico. According to the US National Oceanic and Atmospheric Administration (NOAA), El Niño is characterized by unusually warm ocean temperatures in the Equatorial Pacific. The NOAA said the weather phenomenon can cause increased rainfall in the US and in Peru, and drought in the West Pacific. A study conducted by government statisticians, led by former National Statistical Coor-

dination Board (NSCB) chief Romulo A. Virola, noted that the Philippines has experienced a total of 19 El Niño events, seven of which are considered strong, four moderate and eight weak, from 1950 to 2010. “According to the Philippine Atmospheric, Geophysical and Astronomical Services Administration [Pagasa], some of the El Niño years that hit the Philippines were 1965-1966, 1968-1969, 1972-1973, 1976-1977, 1982-1983, 1990-1994, 1997-1998, 2002-2003 and 2009-2010,” the report read. While the primary impact of El Niño on the Philippines is drought, it has “second- and thirdorder” impacts, according to Pagasa. Citing the state weather bureau, the study noted that El Niño caused unemployment, food shortages and “significant” reduction in productivity. Using data from 1970 to 2009, the study found C  A

S “T,” A

HK 5.7803

CHINA 7.2259

SINGAPORE 33.2625

AUSTRALIA 34.3725

EU 50.3866

SAUDI ARABIA 11.9488 Source: BSP (5 June 2015)


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