BusinessMirror October 28, 2015

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INSIDE

Life

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H Mother of Christ, Mother of the Eucharist and grace, our Holy Mother, Blessed Mary, bless all of us in our life journey. Never allow us to commit anything that will cause You sorrow. We are Yours, our Queen and Mother. Take care of us as Your own now and forever. Amen.

SPECIAL PRAYERS TO THE LADY AND LOUIE M. LACSON

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

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Wednesday, October 28, 2015

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A phablet for the selfie generation

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B G R Lifestyle & Entertainment Editor

O doubt not a few of you found your social-media timelines recently flooded with bits about the latest smartphone hotness from Sony.

The mobile communications division of the consumer electronics giant has just added to its portfolio a trio of flagships—the Xperia Z5, Xperia Z5 Compact and Xperia Z5 Premium—which should not only permanently silence recent talk about Sony getting out of the cutthroat smartphone business (and, yes, the company is in the process of opening a manufacturing plant in Thailand dedicated solely to cranking out Xperia devices) but also further strengthen its reputation as the one of the best purveyors of Android goodness.

“Smartphones are part of people’s lives” said Hiroki Totoki, president and CEO at Sony Mobile Communications, in a statement. “Since users already create, share and enjoy most of their content on the go, we’ve set out to bring Sony’s latest innovations in camera, design and display to ensure the Xperia Z5 series is the best possible lifestyle and entertainment platform.”

“We continue to redefine mobile entertainment with the world’s first 4K Ultra HD smartphone display and 4K Ultra HD Upscaling technology,” added Jhoana Benedicto, product marketing officer for Xperia.

Benedicto is, of course, talking about the Sony Xperia Z5 Premium, which is the first-ever smartphone to boast of a 5.5-inch display with a resolution of 3,840x2,160 pixels and 801 ppi. The iPhone 6s Plus, on the other hand, has a 5.5-inch display with 1,920x1,080 pixels resolution and 401 ppi, while the Samsung Galaxy S6 edge+ packs a 5.7-inch display with a 1440x2560 pixel resolution and 518 ppi. Take a moment to let those numbers sink in.

Needless to say, the Sony Xperia Z5 Premium’s specs would also tally up to a premium price, presumably a few thousands more than the suggested retail price (SRP) P35,990 commanded by the Xperia Z5 that is now available in Sony Centers and Sony Mobile Stores nationwide, along with the Xperia Z5 Compact.

Not everybody needs a premium device, however, and your typical user would be more than happy enough with a smartphone with decent specs and some extra goodies thrown in for good measure, like a display and a camera that make for a smartphone solid enough for consuming and generating content.

For this mid-range market, Sony also has a number of great offerings—like the Sony Xperia C5 Ultra (www.sony.com.ph), with an SRP online and in physical stores well under P20,000. It is the third Xperia smartphone with the “Ultra” appellation, the first being 2013’s fabulous Xperia Z Ultra with a 6.4inch display and last year’s underwhelming T2 Ultra with a 6-inch screen that was crippled by a paltry 8GB of built-in storage.

The new LTE-packing Sony Xperia C5 Ultra has no such shortcoming, coming as it does with 16GB of user storage out of the box (as with its immediate predecessor, the C5 Ultra’s storage can be expanded via a microSD card slot that can take in a card packing as much as 200GB), while the display, though still a 6-incher, bests the T2 Ultra’s 720x1280 pixel resolution with a full-HD 1080x1920 display. And, yes, the panel does make it a glorious platform for content consumption, be it the latest episode in the final series of Downton Abbey (I still can’t get over that dinner scene where the Earl of Grantham made quite a mess of the linens) or the seemingly neverending AlDub stream on your Twitter feed.

Despite sharing the same screen size as its predecessor, the Xperia C5 Ultra feels far more comfortable and ergonomic in the hand, as Sony has managed to shave off some millimeters here and there in both length and width, yielding a near-borderless design that makes the display seemingly float, especially

when consuming media.

Still, there’s no denying this is a big phone, and also a tad thicker and heavier than the T2 Ultra (187 grams versus 171.7 g)—although the extra bit of weight does make the C5 Ultra feel better in the hand. Moreover, while the phone is pretty much ventures into phablet territory, this is one that I can easily slip into my jeans’ front pocket with no trouble. And, better even, with no trepidation: like all of the Sony smartphones I’ve had the privilege of giving a test run, the Xperia C5 Ultra is solidly built with its tough metal frame dressed in plastic and glass. Also tucked in the insides is a 1.7GHz octa-core MediaTek MT6752 SoC plus 2GB RAM, which powers Android 5.0 Lollipop quite nicely. (An upgrade to Android 6.0, also known as Marshmallow, should be forthcoming.)

When Sony unveiled the Xperia C5 Ultra back in August, it was touted as a smartphone for the selfie generation, and that was, it turns out, not an exercise in marketing speak. The smartphone packs a 13 MP

Exmor RS camera with autofocus, flash and HDR mode in the front and in the back. Yes, pick the Xperia C5 Ultra as your new smartphone and you enjoy not only Sony’s award-winning imaging expertise but also a 13-MP rear shooter for all your random visual musings, and another one for scratching that terminal case of selfie itch, resulting in your best-looking selfies ever—and by selfie, I’m subscribing to the actual definition of the word (“a self-portrait photograph, typically taken with a digital camera or camera phone held in the hand or supported by a selfie stick,” according to Wikipedia), and not how today’s so-called social-media darlings define selfies that were actually taken by some pathetic lackey.

With a solid twofer of imaging muscle, a big and bold and bright display, a gorgeously unfussy design, and plenty of the bells and whistles that you would expect from a flagship smartphone (LTE, NFC, Wi-Fi and so on), there is certainly plenty to love about the Sony Xperia C5 Ultra. ■

LIFE

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B M G S

The eyes of the country—and parts of the world—have, in fact, been focused on Cebu, as it has been leading in growth and trade. Yet, as it rushes head first into pulling the Philippine economy into tiger-hood, the lifestyle in the Metro is still laid-back. The city sits on the ninth largest island in the country and has been blest with coastlines that have evolved into some of the country’s best beaches—giving the province its position as a global tourist destination. The city’s economic development, affectionately nicknamed “Ceboom,” has not diminished the province’s rustic personality. Its people are content, cheerful and optimistic—making Cebu one of the best places in the world to live in, invest in, build a career or business in, and raise a family in.

Naturally, the influx into the province has been beyond enthusiastic. Thus, there is currently a need for homes in the booming metropolis. Vista Residences Inc. (VRI)—the condominium arm of Vista Land— is responding to this with a magnificent 32-story, two-tower development right in the heart of Metro Cebu.

VRI evolves the country’s definition of ‘mixed use’ condominiums

THE magnificent 32-story, mixed-use, two-tower marvel will rise on Gorordo Avenue, right in the heart of Metro Cebu.

VISTA RESIDENCES REDEFINES

‘MIXED USE’ IN CEBU A FASCINATING concept in maximizing a condominium’s capability, Vista Suarez will be both a hotel and a residential development.

THE Roof Deck will have landscaped areas where family can bond and enjoy the view and the famous Cebuano sky.

VISTA Residences is currently building what could become one of the city’s finest vertical properties, Vista Suarez Cebu. It’s designed to create the ideal human habitat by responding to nearly every aspect of human life—education, business, leisure, family, the need for growth, and of course, building and nurturing dreams. In this sense, “mixed use” goes beyond the customary “business, commercial, residential” scope.

The property will rise on Gorordo Avenue putting it in the middle of the Metro’s key hubs: Fuente Osmeña Circle, the Cebu Provincial Capitol, and a commercial and leisure center. It is accessed from Cebu’s many streets and avenues, and easy to reach from via the city’s public transport system. Its central location puts it a stone’s throw away from the city’s government centers, office buildings, commercial and leisure areas—making Vista Suarez Cebu perfect not just for residents but for businesses and tourists, as well. One of Cebu’s gifts is that though at its center is the dynamic, modern-day hub that is Metro Cebu, within 30 minutes one can be at the foothills of mountains and alluring beaches.

Redesigning the way we live in the sky CONNECTING the two towers, the amenities area on the fourth floor will offer a gym equipped with top-of-the-line exercise machines.

AN infinity and wading pool

BLUEPRINTED for both work and sanctuary, Vista Suarez Cebu will offer a minimal 27 units per floor in Tower 1, and only 14 units per floor in Tower 2—allowing for more privacy, less crowding in the public areas and breathing space—a huge premium in condominium living.

Entirely unique to Vista Suarez Cebu is that it is smartly designed in an L-shape. This was specified to make sure every single unit shared in the incredible views of the city and the mountains that fringe the Visayan metropolis.

At the street level, the property will house commercial shops and restaurants. The next two levels will

Electronic products hiked PHL’s August import bill MRT BUYOUT: DEAL OR NO DEAL? T HE country’s import bill rose by 4.1 percent to $6.08 billion in August, from $5.85 billion recorded a year ago, on the back of higher payments for electronic products, according to data released by the Philippine Statistics Authority (PSA) on Tuesday.

IN this May 27, 2014, file photo, the USS Lassen, a guided missile destroyer, is anchored in Yokosuka near Tokyo. The US Navy is preparing to sail the USS Lassen near artificial islands built by China in the South China Sea in a long-anticipated challenge to what it considers Beijing’s “excessive claim” of sovereignty in those waters, two US officials said on October 26.

AP/ KOJI SASAHARA

be for offices and business centers.

A fascinating concept in maximizing a condominium’s capability, Vista Suarez Cebu will be a “condotel,” a residential development, and a collection of serviced residences. The sixth to the 14th floor will be run as a hotel. The rooms offering studio and one-bedroom selections will be outfitted and run with the same expertise and customer care as are the world’s top hotels. The 15th to the 28th floors make up the tower’s condotel floor or serviced residences, allowing owners to make good on their investments by having their units leased. The condotel will be serviced by the hotel management and will take in longer staying guests. At the top four floors will be residential studios, and one-and two-bedroom flats—more spacious than the hotel units.

Connecting the two towers, the amenities area on the fourth floor will offer an infinity and wading pool, a kids play area, a gym, twin lounging areas, an all-day dining hall and a spa. At the tower’s roof will be the Sky Lounge with a series of lazing areas. The area will offer spa cabañas and al-fresco dining spaces where the residents can hold parties or romantic dinners.

Both towers will offer separate lobbies with concierge services. Beyond all that, three below-ground guarded parking floors, 24/7 security, fire and smoke detection systems, and intelligent management and building systems.

VRI is investing in the Cebuano

WITH the business and lifestyle dynamic Cebu has to offer, and the growth predicted for this busy Metro, leasing opportunities are immense. Cebu is VisMin’s key business hub. This means not only is the expat and employee population on the rise, but the number of universities the city has to offer signifies a major growth in the student population as well. Add to that the number of conferences, meetings and exhibitions the city attracts yearly, and the number of tourists coming in, you have what will be a monumental growth in both the hospitality and the residential industries, both of which Vista Suarez Cebu was designed to respond to.

VRI understands that most condominiums are purchased as investments. Thus, the group designed leasing options to strengthen its customers’ investment opportunities. The Vista Residences Leasing Group offers a selection of four leasing services designed as proactive solutions for unit owners: Asset Management Service, Leasing Services Only, Serviced Suites and the “Condormitels” created for the University Series condominiums.

Vista Residences: Thoughtful and sustainable design

PROPERTY VISTA Residences is a formidable player in the country’s condominium industry. In 12 short years it has managed to rise to becoming among the top 5 in the industry. The group carries with it Vista Land’s fourdecades of experience in developing properties and vertical residences —integrating into every project expertise in space planning, and flair for finding accessible locations. www.vistaresidences.com.ph.

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US Navy sails near China-claimed reefs

EBU has always been uniquely fascinating. It is the oldest city in the Philippines, but also the most progressive. Within its borders are the country’s oldest school, the oldest church and the oldest fort, but, rushing into the 21st century and those very same borders also contain the fourth largest shipbuilder in the world, it is eighth among the world’s top informationtechnology and business-process outsourcing destinations, it is the second-most developed province in the Philippines—following Metro Manila, the country’s premier tourist destination—and, by 2018, it will have the first and only “Resort Airport” in the world.

E1 | Wednesday, October 28, 2015 Editor: Tet Andolong

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

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VISTA RESIDENCES IN CEBU BusinessMirror

Thursday 18,October 2014 Vol.28, 10 No. 40 Vol. 11 No. 20 Wednesday, 2015

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B C U. O

A PHABLET FOR THE SELFIE GENERATION Mother of the Eucharist and grade

A broader look at today’s business

U.S. Navy ship sailed near an artificial island built by China in the South China Sea in a long-anticipated challenge to what the Obama administration considers Beijing’s “excessive claim” of sovereignty in those waters, a US defense official said on Monday.

The official said the White House approved the movement by the

PESO EXCHANGE RATES ■ US 46.6070

USS Lassen, a guided missile destroyer, inside what China claims as a 12-nautical-mile (22-kilometer) territorial limit around the Subi Reef in the Spratly Islands archipelago, a disputed group of hundreds of reefs, islets, atolls and islands in the South China Sea. The patrol was completed without incident, said the official, who

B L S. M

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Conclusion

HERE is no stopping the government from executing the multibillion-peso buyout of the Metro Rail Transit (MRT) Line 3’s private owner, even if experts see it as an unfitting way to address the chronic problems of the train system.

Once the planned takeover has been completed, money being pumped into the development of the train system will then be sound investments, Trans-

portation Secretary Joseph Emilio A. Abaya noted. Today the government spends public funds to finance the improvement of a train line owned by a private company.

“One of the problems that the buyout will solve, at least on the budget side, is that we will then be investing in a government-owned facility, because we are now investing in a privately owned facility,” he explained.

In order to spend money for the modernization of the train line, the Department of Transportation and Communications (DOTC) has to place special items C  A

S “US N,” A

■ JAPAN 0.3852 ■ UK 71.5511 ■ HK 6.0139 ■ CHINA 7.3363 ■ SINGAPORE 33.4868 ■ AUSTRALIA 33.8222 ■ EU 51.5287 ■ SAUDI ARABIA 12.4358

Source: BSP (27 October 2015)

A2 Wednesday, October 28, 2015

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Mrt buyout: Deal or no deal?

Continued from A1

on its budget under the “leased facilities” component.

“There is a special item on the budget on how we improve leased facilities,” he said. “We could make better decisions when we become the owner. It frees us from talking to other parties, with the fear of opinions coming from the left field.”

Proposals left to gather dust

Metro Rail Transit Corp. (MRTC) Director Rafael R. Perez de Tagle Jr., however, believes that a buyout is not necessary to improve the train line, after all, the build-lease-transfer agreement between the government and private sector requires the two parties to cooperate with each other to improve the train line.

All that is needed, he said, is for the government to be open to proposals sent by the private partner —even those that merely want to help in modernizing the train line that serves more than half-a-million Filipinos daily.

The executive, who also sits as the president and COO at Fil-Estate Urban Development Corp., a shareholder in MRTC, noted that an equity-value buyout could only mean that there happens to be—what he called—an “economic sabotage.”

“The equity-value buyout, which Executive Order [EO] 126 espouses, is not possible because a buyout requires declaring the government in default. As per the build-leasetransfer agreement, this is a remedy available only to the owner, the MRTC, and not to the DOTC,” he said.

Perez de Tagle alleged that people whispered wrong information to President Aquino, leading him to sign the EO in 2013. This, he said, would cause an economic shakedown, and pull the country down from its current rise as one of the fastest-growing economies in Asia.

“So why would the government

declare themselves in default and cause our country’s credit rating to deteriorate? It is obvious that people have fed misinformation to the President, which led him to sign an erroneous order—that would look like economic sabotage,” he said.

Proposals to develop the line, the official said, were already in place— even before President Aquino took office in 2010.

“Even if the [Gloria Macapagal] Arroyo administration ignored the previous private-sector proposals to expand and upgrade the capacity of the MRT, this current administration would have had doubled the capacity of the MRT by last year, if only they followed the build-leasetransfer agreement and agreed to work with the private owners to expand the MRT 3’s capacity at no cost to the government,” he said.

Metro Global Holdings Corp., a stakeholder in MRTC, had proposed to shoulder the multibillion-peso upgrade of the train line.

Together with foreign firms Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings offered to “fix” the sailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, as well as the rehabilitation of the existing 73 coaches, increasing its capacity by fourfold to 1.2 million daily passengers.

Under the proposal, a single point of responsibility will be implemented, meaning the rehabilitation and the maintenance of the line will be handled by a single company.

“Our proposals to rehab, upgrade and fix the MRT 3 system, at no cost to the government, have come by way of first, the proposal of the fast-track rehab of Metro Global Holdings to repair and rehab 19 kilometers of new rail and overhaul all 73 light-rail vehicles in the system.

This, with an upgrade of the existing signaling system for $97 million

at no cost to the government,” MRT Holdings II Inc. (MRTH) Chairman Robert John L. Sobrepeña said.

The second phase of this proposal is to add new trains and implement the capacity-expansion program for the MRT 3 project — all of which will come at no cost to the state.

“The private sector will be repaid from fare box revenues from the MRT collections, wherein the price of the fare box will not be higher than the prevailing bus fare pricing,” Sobpreña said. Currently, fare prices of the MRT is cheaper when compared to the ticket prices of buses that ply the same route.

“This is the best solution and all without DOTC spending a single centavo on the rehab and upgrade, not to mention saving P7 billion per annum in tax payers’ money in subsidizing the MRT 3 project, since private sector will take over maintenance and operation of the system and fund any shortfall,” Sobrepeña noted.

“They have not acted in all our proposals, so how can we move if they don’t want us to move and fix the problem?” he added.

Separately, Metro Pacific Investments Corp. (MPIC) is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments.

The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line.

The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimilliondollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily.

It was submitted in 2011, but the

transportation agency’s chief back then rejected the proposal.

On the other hand, German firms Schunk Bahn-und Industrietechnik GmbH and HEAG Mobilo GmbH are seeking to place the whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila.

The P4.64-billion proposal, submitted in February with Filipino partner Comm Builders and Technology Phils. Corp., calls for the complete overhaul of the 73 light-rail vehicles of the MRT, replacement of the rails, upgrade of the line’s ancillary system, upgrade of the track circuit and signaling systems, modernization of the conveyance system and a three-year maintenance contract.

These are left to gather dust in the office of Abaya. Currently, the government is implementing a P9.7billion multiyear venture to overhaul the line. The complete makeover is expected to be done within the term of President Aquino.

“The current state of disarray of the MRT 3 is solely the fault of DOTC! They removed Sumitomo Corp. and awarded the maintenance to unqualified local service providers who never provided for parts for the maintenance of the system,” Sobrepeña said.

PPP might be the solution

But, for Abaya, the only way to effectively improve the train line is to eliminate opposition, which mainly comes from temporary restraining orders (TROs) being lodged against his office in developing the train line.

“When we have successfully executed the buyout, there will be no more TROs from the private sector,” he said.

The transportation department was peppered with stay orders in past

years, with one particularly significant and very controversial.

Two years ago, a Regional Trial Court ordered the transportation department to temporarily stop the purchase of new MRT trains from Dalian Locomotive and Rolling Stock Co., as the private partner wanted to have a hand in the procurement of new trains.

The case is still pending before the Supreme Court, but the Chinese manufacturer has vowed to deliver the 48 new trains through 2017 starting in the first quarter of 2016.

“Right now, people get the impression that we are blaming each other, but when we get to take over the line, we will now have a government-owned, governmentoperated, government-maintained facility,” he said in a mix of Filipino and English.

The next step after the buyout is for the government to bid out the operations and maintenance (O&M) contract of the railway facility to the private sector.

This, however, will take time.

“The next level is to bid out the O&M, but that, I’m sure, won’t be done during this administration because we have to have a feasibility study first before going to the Neda [National Economic and Development Authority] Board,” the transport chief said, referring to the Neda Board.

The auction for the contract will be done under the Public-Private Partnership (PPP) Program, the flagship infrastructure-development measure of the Aquino administration. “What will happen there is that the next secretary will decide if he wants to follow what happened with the Light Rail Transit Line 1 —wherein private sector operates and the government owns,” Abaya said. “He could decide whether to continue that or to totally ignore our proposal to bid out the O&M of the MRT under the PPP Program.”

He added: “It is really best left to

private sector, then the government is the regulator.”

Business leaders find good purpose to this initiative, saying that they are ready to aid the government in its bid to procure a private-sector partner for the operations and maintenance of the train system .

“It’s difficult to speculate on whether the MRT will drastically improve after a buyout, since substantial improvements still have to be done. Nevertheless, the private sector does have the technology and expertise to properly operate a transport system. Should a buyout occur, the government must ensure that a competent private partner be engaged in improving and running the system,” Makati Business Club Executive Director Peter Angelo B. Perfecto said.

American Chamber of Commerce Senior Advisor John D. Forbes echoed Perfecto’s sentiments. he, however, noted some constraints in foreign business’s partnership with the government.

“We are advocating a credible and transparent bidding and awards process for PPP and public-sector projects. Also, we advocate the repeal of the 1936 Flag Act and other restrictions on foreign participation in the infrastructure sector, including the 60-40 restriction on ownership and operation of public utilities in the constitution. When the playing becomes level, we will ask more foreign companies to invest here,” he said.

However, European Chamber of Commerce of the Philippines External Vice President Henry J. Schumacher, seem to have lost all hope in the Philippine government, known to many as filled with so much bureaucracy and corruption.

“With the present snail pace on biddings, no, it would not be too much of a solution. It needs crisis decisions with the Commission on Audit being party to the deal,” he said.

Jose Regin F. Regidor, a transportation expert, added that the government will have to be more prudent in finding good and honest partners—not to mention that these parties should also have a good track record in providing good service—if it really wants to pursue traversing this road.

“What we know now, based on past experiences, is that the government is not that good in operating or managing systems,” he said. “But then, the question then as now is if the government can attract good managers, leaders to be able to manage these systems efficiently and, very important, profitably. That means a good compensation and perhaps little intervention by national government in operations.”

‘Folly’

The current mess with the MRT is a classic example of how the government should be prudent and careful in entering into partnerships with the private sector. Buying out the line might be a solution, but this jumble should teach the government lessons in handling public utilities.

“The main or root issue seems to be legal and not at all technical. The technical problems experienced are manifestations of a contract that is a textbook case for how not to do a PPP,” Regidor, a research fellow at the University of the PhilippinesDiliman National Center for Transportation Studies, said.

“We now know it is not favorable to the public and that the current and future officials should learn from this lesson from a past PPP project. Hopefully, current and future PPPs will not be like the MRTC deal,” he added.

Regidor, however, dissuaded the government from its seemingly late decision to buy the private partner out in the MRT, as the public opinion might be geared toward the negative.

“I would think that the general public would see this as another folly for the government given the way it has fumbled with this matter,” he said.

news@businessmirror.com.ph

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Wednesday, October 28, 2015 A3

PHL ecstatic over US destroyer’s passage through WPS

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By Recto Mercene

AILURE to challenge false claims of sovereignty would undermine order and lead China to the false conclusion that its claims are accepted as a fait accompli,” the Department of Foreign Affairs (DFA) said on Tuesday.

The department was reacting to reports that a US-guided missile destroyer had sailed within the 12-nautical-mile territorial limit that China claims around artificial islands it built in the South China Sea [West Philippine Sea].

A US defense official said the destroyer USS Lassen “conducted a transit” within 12 nautical miles of Subi Reef in the Spratly Islands on Tuesday morning local time.

The operation put the ship within an area that would be considered Chinese sovereign territory if the US recognized the manmade islands as being Chinese territory, the official added.

In a statement, the DFA said, “It is important for the international community to safeguard freedom of navigation and overflights in the West Philippine Sea.” “This is of paramount concern to all countries, ” the DFA added.

“If the US decides to send naval vessels within 12 nautical miles of the reclaimed low-tide elevation features in affirmation of this objective, this would be consistent with international law and a rules-based order for the region.”

Silahis case: SC asked not to set bad precedent

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HE owners of Silahis International Hotel Inc. (Sihi) have cautioned the Supreme Court (SC) from coming out with a bad precedent if it eventually denies its second motion for reconsideration seeking to declare null and void the auction and sale of its property, Grand Boulevard Hotel (formerly Silahis Hotel), with adjacent parking lot in Roxas Boulevard, Manila.

“If denied, it will change a basic principle in the rules—that a co-equal branch of court may not intrude into the sphere of another on a matter already pending before it. It may leave a black mark on Chief Justice Ma. Lourdes Sereno’s court,” Jocel M. Panlilio, scion of the owners of Sihi and Pacific Hotel Corp. (PHC), said.

It can be recalled that Judge Lyliha Abella-Aquino of Branch 24 of the Regional Trial Court (RTC) in Manila issued a decision on August 13, 2012 and October 25, 2012 and an order and writ of execution dated November 8, 2012 on the cases involving the transfer of title, ownership and possession of the said property in favor of Pacific Wide Realty Inc. (PWRI) for lack of jurisdiction over Sihi.

“We filed an administrative case against Aquino and the sheriff of Branch 24 for gross ignorance of the law and rules and for evident partiality in favor of Pacific Wide Realty,” Panlilio said.

Panlilio added that the issue of possession and ownership is pending before Judge Tita Alisuag of Branch 1 of the RTC in Manila.

He added that Sihi and PHC were not parties or summoned as parties nor informed of the pendency of the case in Aquino’s sala.

“We were in a no-win situation in Manila courts,” Panlilio said.

Sihi and PHC went to the Court of Appeals but were denied.

Then they filed a petition for review before the SC but was, likewise, denied.

A first motion for reconsideration was denied by a minute resolution.

“We have filed a second motion for reconsideration which we hope will merit a discussion and deliberation by the justices,” Panlilio said.

The SC is known to have granted second motions for reconsideration and reversed its ruling even on a third motion for reconsideration. Joel R. San Juan

IBP can no longer junk complaints vs lawyers

By Joel R. San Juan

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HE Integrated Bar of the Philippines (IBP) has been stripped of its power to dismiss complaints against lawyers.

The Supreme Court (SC) said power to dismiss a complaint against a lawyer rests solely with the SC and cannot be delegated to the IBP. The Court issued the statement after it approved the amendments to Rule 139-B of the Rules of Court dealing with Disbarment and Discipline of Lawyers in Bar Matter (BM) 1645 issued on October 13.

The Court also directed the IBP to revise its rules of procedure in accordance with the amendments to Rule 139-B. Before the amendment, the IBP Board of Governors had the authority to dismiss any complaint upon recommendation of the investigator.

Section 5 of BM 1645 now only grants the IBP recommendatory powers, “[i]f the complaint does not merit action, or if the answer shows to the satisfaction of the investigator that the complaint is not meritorious, the investigator will recommend to the Board of Governors the dismissal of the complaint.” The amendments also include the clarification that the Court’s power to dismiss complaints against lawyers is one that cannot be delegated to the IBP.

Reports quoting US officials said the mission was approved by US President Barack Obama.

Before Tuesday the US had not breached the 12-mile limit since China began massive reclamation operations to turn three reefs into artificial islands in 2014, although it conducted aerial surveillance of the area this year. Aboard the P8-A Poseidon are members of the media.

The incident triggered a strong response from the Chinese, telling the pilot: “Foreign military airplane, you are approaching my military secure area. Please go away quickly in order to...[indiscernable],” the transcribed message read.

After one-and-a-half years of reclamation, China has reclaimed more than 2,000 acres at three main loca-

tions in the Spratly Islands—Subi, Mischief and Fiery Cross reefs—all features the Philippine claims as part of its exclusive economic zone.

The South China Sea, parts of which the Philippines named West Philippine Sea, is the subject of overlapping claims by the Philippines, China, Brunei Darussalam, Malaysia, Taiwan and Vietnam.

On Tuesday morning before it was

confirmed that the US warship had breached the 12-mile zone, Wang Yi, China foreign minister, said: “We advise the US side to think twice before action, not to conduct any rash action and not to create trouble out of nothing.”

China has repeatedly said its activities on the South China Sea do not target any other country or affect freedom of navigation by sea or air.

Economy

A4 Wednesday, October 28, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

briefs cebu city’s 60K elderly receive cash assistance CEBU CITY—The Cebu City government on Tuesday distributed the fifth trance of the cash assistance for the city’s 60,000 elderly of P2,000 each.

Cebu City Treasurer Diwa Cuevas said the distribution of the cash assistance was done in the city’s 80 villages.

Each senior citizen in the city by now has received a total of P10,000.

A qualified senior citizen receives a total of P12,000 a year from the city.

Cuevas said the city set aside P120 million for the fifth tranche of the cash assistance for senior citizens.

Cuevas said the remaining balance will be given in December.

She added that the city will also distribute the P1,000 cash assistance for the city’s 9,000 persons with disabilities (PWDs) on Thursday.

Earlier, the city’s senior citizens council approved a resolution barring senior citizens from getting financial assistance if they failed to get it in two consecutive distributions.

Their names will also be deleted from the list of qualified beneficiaries and they have to reapply before the Department of Social Welfare and Services as new applicants to claim the cash assistance.

The records of the Office of the Senior Citizens Affairs showed that only 47 percent of those on the list claimed the aid in January and 64 percent in April. PNA

‘fast-track completion of gensan road project’ GENERAL SANTOS CITY—The city council has urged the Department of Public Works and Highways (DPWH) on Tuesday to expedite the completion of the northern section of the P1.135-billion circumferential road project here.

In a resolution, the council specifically asked the DPWH in Region 12 to fast-track the ongoing construction of the P60-million Silway Bridge in Barangay Apopong that connects the road’s northern section to the national highway and its western component.

The construction of the bridge resumed earlier in the first quarter after several months of suspension due to road right-of-way problems.

City Councilor Arturo Cloma, author of the resolution and chaiman of the council’s public works and infrastructure committee, said the bridge project is due for completion on December 31, but raised whether such target could be met.

In his visit to the site last week, he said there were only 10 to 20 people actually working on the project.

“We learned that the bridge’s project engineer earlier withdrew, and there were some that needs approval by the DPWH central office,” he said.

Cloma said a DPWH representative who joined the site visit admitted that he has no information as to the status of the change order. PNA

farmers seek compensation for kalibo intl airport expansion KALIBO, Aklan—Hundred of farmers, tenants and residents of Barangay Nalook, Kalibo, gathered on Tuesday morning to seek for a P5,000per-square-meter compensation with the expansion of the Kalibo International Airport (KIA).

“Currently, the Department of Transportation and Communications [DOTC] has promised to pay us P280- to-P600-sq-m expropriation compensation for our collective 5-hectare lot. The rate may be considered legal but we do not consider it moral, since the minimum rate of per-sq-m lot in Kalibo is around P3,000,” said Arnel Meren, president of the newly formed association from Barangays Nalook, Pook, Ca-ano and Estancia.

The letter was signed by Gov. Florencio Miraflores in behalf of the DOTC. Aside from the expropriation fee, the Department of Agrarian Reform will also assist the DOTC in providing disturbance fee to tenants of the affected areas. PNA

BusinessMirror

news@businessmirror.com.ph

Online recruitment in PHL showed signs of recovery in August-to-September period

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By Roderick L. Abad

LOBAL online job site Monster.com reported on Tuesday that recruiting on the Web in the country dropped by -16 percent year-over-year (YOY) between September 2014 and 2015.

“Although online hiring across the Philippines remains less active overall this September when compared to the same month last year, the latest MEI [Monster Employment Index] data indicate a significant recovery,” said Sanjay Modi, managing director of Monster.com (India, Middle East, Southeast Asia, Hong Kong).

Compared to August’s -31-percent decline in two comparable years, it’s an improvement by almost half, he said. This only means that hiring activity via the Internet in the Philippines has grown from August to September this year, reflecting stabilization of certain industries, according to the executive.

Based on the latest MEI Philip-

pines, the information technology (IT), telecom/Internet service provider (ISP) sector saw the highest annual increase at 16 percent for September YOY. It jumped from last month’s 10-percent growth over the periods in review, and also hiked the steepest since March 2015.

Joining IT, telecom/ISP on the positive trend was the banking, financial services and insurance (BFSI) industry at 10 percent. “[They] are picking up hiring as foreign businesses are encouraged to expand their operations into the Philippines,” Modi said.

The other eight sectors monitored, on the other hand, were on the downside, with the production/ manufacturing, automotive and

ancillary industry as the worst performer at -56 percent.

Despite this, however, it slightly improved from the -62-percent YOY growth in the month of August between the two respective years analyzed.

Of the 10 occupational growth g roups s u r ve ye d , t he i nde x showed that customer service jobs experienced the greatest YOY rise at 6 percent.

It was the only industry that saw a positive surge in September during the two years in review.

Demand for employment in the hospitality and travel sector remained weak at -47-percent YOY growth.

Meanwhile, online hiring activity in the business-process outsourcing (BPO) and IT-enabled services field slightly decreased to -1 percent from 0 percent YOY. Modi remained bullish on the so-called Sunshine industry as the country’s outsourcing industry is expected to grow further and boost job creation locally.

“For example, as the US adopts a highly detailed medical diagnosis coding system for insurance claims, the Philippines is in a good position to provide talent, thanks to its large

pool of medical graduates,” he cited.

It has been noted that more than 1,000 firms are now comprising the country’s BPO industry, already employing 1 million in September of last year. BPO employment is seen to increase to 1.1 million and 1.3 million for 2015 and 2016, respectively.

The managing director of Monster.com also said the BFSI sector is also “set to look up, as more bank branches open up across the nation.”

The MEI is a gauge of online jobposting activity, which records the industries and occupations that show the highest and lowest growth in recruitment activity locally.

It is based on a real-time review of millions of employer job opportunities culled from a large representative selection of career web sites and online job listings across the Philippines.

Monster.com has an innovative focus on mobile applications for recruitment (Monster’s Mobile App), and online Professional Networking for jobs to better connect recruiters and job seekers.

It also conducts Virtual Career Fairs in the Philippines to join graduate job seekers with potential employers in an easy-to-navigate online environment.

Albay bags $1-M Pata 2015 CEO Challenge’s Top Destination Award

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EGAZPI CITY—Albay has bagged the Pacific Asia Travel Association (Pata) firstever $1-million 2015 CEO Challenge’s Top Destination Award, proving once again its global standard tourism program genre.

Albay Gov. Joey Salceda is set to formally receive the award during Pata’s Aligned Advocacy Dinner in London on November 2. The province won the award in Region’s/ State/Province category, along with Thekkady, Kerala, India, which bagged the Second- and Third-Tier Cities category. United Nations World Tourism Organization Secretary-General Taleb Rifai will be guest of honor at the ceremony.

As part of the prize, Albay will work with leading international travel web site and Pata’s Top Destination Awards partner TripAdvisor to develop and create digital marketing campaigns that will showcase its destinations to a global audience, valued at $500,000.

Pata CEO Mario Hardy, in announcing the winners, said: “It was difficult to choose only two winners, as we received some excellent submissions from destinations both near and far. All the submissions had unique stories that every traveler should get to know and experience.”

Hardy said the winners “had the most authentic, culturally diverse and innovative offerings,” and needed the most assistance in helping promote their assets. Albay hosts Pata’s New Tourism Frontiers Forum 2015 from November 25 to 27 here in Legazpi City.

Elated by the news, Salceda said Albay is finally reaping the fruits of years of its hard work in promoting its tourism wealth. He now prepares to personally receive the award at the London rites.

Speaking about the new honors for the province, Salceda stressed that “the issue is not about being the best but about what can be done together,” and that all the awards and accolades their province has reaped “are the products of Albayanos’ unity of purpose and vision.”

Salceda has been the driving force behind Albay’s strong tourism program for the past eight years, introducing many innovations that transformed the province’s sedate travel environment into a world-class and bustling tourist destination.

The Department of Tourism has declared Albay as the Philippines’s

Warning vs stress, anxiety

Dr. Helen Ong-Garcia (left) of the Philippine Heart Association (PHA) warns that stress and anxiety cause hyperventilation—a condition characterized by abnormally prolonged and rapid breathing—which is not good for the heart during the weekly forum on health education of the Philippine College of Physicians at Annabel’s Restaurant in Tomas Morato Avenue corner Scout Delgado Street, Quezon City, on Tuesday. The forum is being held in cooperation with the PHA. Also in photo is Dr. Alex T. Junia, PHA president. PNA

fastest-growing tourist destination, posting a sustained tourism growth of 47 percent in 2012; 66 percent in 2013; and 52 percent in the second quarter of 2014, and a soaring increase in foreign tourist arrivals from 8,700 in 2006 to 339,000 in 2014.

Within that period, Salceda initiated the construction of some 320 kilometers of roads, which provide access to new and unique tourism destinations. His innovative programs have made Albay a national partner for tourism growth, which the DOT formally recognized by conferring on Salceda its First Tourism Star Award early this year.

As a top tourist destination, Albay will also receive other benefits, including a complimentary pass to the Pata Annual Summit 2016; in Guam on from May 18 to 21, 2016; and free stand space at the Pata Travel Mart 2016 in Jakarta, Indonesia, from September 7 to 9 next year, aside from an extensive international brand exposure through a variety of well-established Pata communications channels. PNA

House panel set to restore S.U.C. budget cuts RIDON: “With the President expressly providing that ‘no new Cafgus shall be recruited for training and the costs attendant to the training of existing Cafgus shall be gradually scaled down,’ there can be no justification for the Cafgu budget’s increase to P3.4 billion in 2016.”

By Jovee Marie N. dela Cruz

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he House Committee on Appropriations is set to restore the budget cuts of 42 state universities and colleges (SUCs) in the 2016 national budget bill.

Party-list Reps. Terry Ridon of Kabataan and Silvestre Bello III of 1-BAP, and Nationalist People’s Coalition Rep. Rodito Albano of Isabela said the decision of the committee, headed by Liberal Party Rep. Isidro Ungab of Davao City, to restore the P477.8-million allocation for SUCs will benefit 1.6 million students nationwide.

“The right to education is a universal entitlement,” Albano said, adding that the government has all the resources to send children to schools.

Bello, meanwhile, said that the 1.6 million SUC students should not be the victims in the continued underfunding of the government for the SUCs. Moreover, Ungab said the ad hoc committee on the amendments to the 2016 budget is “inclined to restore the cuts for regular MOOE [maintenance and other operating expenses]” in 42 SUCs. Ungab explained that upon deliberation by the ad hoc committee, it was revealed that of the 59 SUCs that will suffer MOOE cuts, only 42 were due to the normative funding formula.

The MOOE budget of the 17 other SUCs were reduced due to the removal of funds for the Tulong Dunong Program, Ungab added.

On October 14 27 legislators, including the said lawmakers, filed House Resolution 2377, which seeks the restore the multimillion-peso budget for the SUCs. Ridon added that the funds can be sourced from the P3.4-billion budget for the Compensation and Separation Benefits of the Citizen Armed Forces Geographical Units (Cafgus), noting that even President Aquino, in his veto message for the 2015 national budget, called on the Armed Forces of the Philippines to gradually reduce funding for Cafgus.

“With the President expressly providing that ‘no new Cafgus shall be recruited for training and the costs attendant to the training of existing Cafgus shall be gradually scaled down,’ there can be no justification for the Cafgu budget’s increase to P3.4 billion in 2016. Instead, the House Committee on Appropriations should rechannel the aforementioned portion of said funds to the MOOE of SUCs,” Ridon said.

Lawmakers back pay raise proposal for state workers

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senior lawmaker has expressed support to the proposal to raise the pay for government workers.

Nationalist People’s Coalition Rep. Rodito Albano III of Isabela, a senior member of the minority bloc, said “a decent and reasonable amount of pay increase will inspire and encourage all government workers to work harder.”

According to Albano, the proposed pay hike is big help to the country’s 1.6 million government workers.

“A decent and reasonable amount of pay increase will inspire and encourage all government workers to work harder and with utmost dedication and shun corruption in keeping with the daang matuwid [the straight path] program of the Aquino administration,” Albano said.

The lawmaker added that he is confident that the administration would give a generous amount of the much-needed pay hikes to the gov-

ALBANO: “We really need to help uplift the lives of our state workers to help them cope with the rising cost of living. They are also considered as public servants.”

ernment employees anytime soon.

Albano, citing Deputy Presidential Spokesman Abigail Valte, said the Palace is “making very good progress” to standardize the salaries of state workers is a welcome development.

“We really need to help uplift the lives of our state workers to help them cope with the rising cost of living.

They are also considered as public servants,” Albano added.

Valte had earlier said the salary increase for the government

workers could be possible “because at the end of the day, we want to be able to give our government workers a competitive standing as compared to their counterparts in the private sector.”

President Aquino has said a new round of salary standardization increases will be implemented soon.

“The idea is to match the private sector by about 70 percent of what a private sector employee gets and the bonuses will no longer be pro forma bonuses but rather performancebased bonuses,” Mr. Aquino said.

In the Senate and the House of Representatives there are several bills seeking to increase the salary of government workers. Party-list Rep. Leah Paquiz of Ang Nars has filed a bill increasing the basic salary of nurses from P18,000 to P25,000.

In the Senate, Sen. Antonio Trillanes IV has also filed a bill seeking to raise the salaries of government employees. Jovee Marie N. dela Cruz

Economy BusinessMirror

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Wednesday, October 28, 2015 A5

TMAP steps up drive for income-tax reform measures

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By David Cagahastian

S the Executive and Legislative appear to budge on their previous hard-line stand against incometax reforms, the Tax Management Association of the Philippines (TMAP) steps up its efforts to drum up more public support for its proposal to at least update the income-tax brackets.

In a news statement issued on Tuesday, TMAP called on the public to join an online protest on Friday, October 30, to put more pressure on President Aquino to certify as urgent the income-tax

reforms proposed in Congress, even just the watered-down version which leaders of Congress had been floating lately.

Last week Senate President Franklin M. Drilon and House Speaker

Feliciano Belmonte Jr. had been quoted as saying that they would “seek an audience” with President Aquino to discuss with him the income-tax reform bills pending in Congress, which he threatened to veto if it ever passes the Liberal Party (LP)-controlled houses of Congress.

TMAP views this development as a softened stance to what used to be the hard-line stand by the Senate and the House of Representatives to “kill” the incometax reform bills in Congress because the LP leadership said so. LP standard-bearer Manuel Roxas II had already dismissed proposals to change the income-tax regime, while opposition candidate and Vice President Jejomar C. Binay expressed support for the populist reforms.

The Department of Finance

(DOF) had no comment when asked about the reported seeking of an audience by the two leaders of Congress with the President to discuss the income-tax reform bills that have gained popularity with the working class, since the proposals seek to lower the income-tax rates on individual taxpayers earning a taxable income of P500,000 per year, or roughly around P40,000 of taxable income per month.

The online protest being organized by TMAP is called “Black Payday Friday” and aims to put the incometax reform bills to the fore of debates, especially in the run-up to the election period, to convince the President to certify the bills as urgent so that Congress can immediately enact them into law before the end of the Aquino administration.

“At the very least, Congress is

urged to update the 19-year-old income-tax brackets for individuals,” TMAP said in a statement released by its president, Terence Conrad Bello.

TM AP’s proposal, which is backed by several business groups like the Philippine Chamber of Commerce and Industr y, the Makati Business Club, and the American Chamber of Commerce, is to adjust the income- tax brackets and lower the income- tax rates, which at 32 percent on a taxable income of P500,000 per year is already the highest and most inequitable in Asia.

“While the compromise proposal involving only the updating of the tax brackets as widely reported in the papers is not what TMAP, along with other business groups that supported the Unity

Lingering ROW dispute triggers power failure in Mindanao anew

By Lenie Lectura

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lmost 30 megawatts (MW) of power coming from the Agus 1 hydroelectric power plant was not immediately delivered to the Mindanao grid due to rightof-way (ROW) issues.

According to the National Grid Corp. of the Philippines (NGCP), the Agus plant was isolated from the grid at 9:14 a.m. of Tuesday when Agus 2 and Agus 1’s 138-kilovolt (kV) line tripped and could not be repaired immediately because of an uncooperative landowner, Mitmug Dimaampao, who refused to allow the grid operator to conduct line maintenance and repair activities within the property.

The NGCP said Dimaampao is the same landowner who previously barred NGCP linemen from entering the property to cut trees that obstruct the transmission lines. The said line was finally energized at the Agus 2 switchyard side at 11:37 a.m.

The tie line is operated and maintained by the state-owned National Power Corp., and private concessionaire grid operator NGCP assisted in

the efforts to restore power.

The NGCP reiterated its appeal for the public’s cooperation and warns that ROW violations along transmission lines compromise not just the safety of the people, but also the security of the power grid.

Because of Mindanao’s current power situation, the isolation of any power plant from the grid may result in more load curtailment during peak hours to allocate whatever power is available to the rest of the customers.

The NGCP earlier appealed for government and military assistance.

The Department of Energy (DOE), for its part, said it is enjoining all stakeholders to render support and assistance in safeguarding power facilities from any obstructions that would affect the continuous supply of electricity to all households and establishments.

“We appeal, particularly to the local government units and land owners, to cooperate with the NGCP, the concessionaire of the national transmission lines, in resolving the transmission issues on right-of-way and easements,” Energy Secretary Zenaida Y. Monsada said.

briefs dbm releases p124.77m for zamboanga city infra rehab Budget Secretary Florencio B. Abad has announced the release of P124.77 million for the rehabilitation of infrastructures destroyed during the Zamboanga siege launched by a faction of the Moro National Liberation Front (MNLF).

He said the funds released was part of the P3.9-billion required funds for the relief and rehabilitation of affected communities under the Zamboanga City Roadmap to Recovery and Reconstruction (Z3R) plan that includes the building of a Fleet Marine detachment.

The rehabilitation plan was based on the estimates of the Department of Social Welfare and Development (DSWD). It aims to address the long-term aspects of recovery for Zamboanga City, from the reconstruction of damaged infrastructure to the resettlement of internally displaced people.

Abad said the Department of Budget and Management (DBM) released the P124.77 million to the Philippine Navy on October 15 for the construction of a Fleet-Marine detachment in Rio Hondo village makes for 11 out of a total of 13 projects under the Z3R plan with allotment releases.

He said the amount will “cover building of the detachment in Rio Hondo, the site of the September 2013 siege that shut down Zamboanga City for almost three weeks. “ He added that the fund was charged against the National Disaster Risk Reduction Management Fund pursuant to the approval of the Office of the President. Estrella Torres

jinggoy hails enactment of law amending p.e.s.o. system

Sen. Jinggoy Ejercito Estrada on Tuesday hailed the enactment of a broader network of the Public Employment Service Office (Peso) to better facilitate and manage the employment of Filipino manpower.

On Monday President Aquino signed into law

Statement on Income Tax Reform, had in mind, the compromise proposal would still alleviate somehow the plight of salaried individuals who are overtaxed and underserved,” the TMAP statement added.

Taxpayers who wish to join Black Payday Friday are asked to do the following: wear black at work and encourage your coworkers and friends to do the same; change their online avatar or profile picture to black and add the #TaxReformNow twibbon to your profile picture, which can be found at (https:// twibbon.com/Support/tax-reformnow-2); take a selfie or groufie on October 30, while wearing black with the #TaxReformNow sign; and tweet or post a status message on what tax reform means to you using the hashtag #TaxReformNow.

DOTC girds for All Saints’ and All Souls’ day holiday traffic

By Lorenz S. Marasigan

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Flowers in full bloom

A comely stall keeper in Dangwa, dubbed as Manila’s “flower capital,” puts up an attractive floral arrangement of her blooming merchandise ahead of the anticipated influx of shoppers with the approach of All Saints’ Day holiday this coming weekend. The price tag on practically all varieties of flowers may have gone up, considerably following Typhoon Lando’s onslaught in the north, but the price hike is not expected to dampen the commemoration of departed loved ones. Roy Domingo

Republic Act 10691, which updated the Peso Act of 1999 (RA 8759) and defines the role of the Department of Labor and Employment (DOLE), the local government units and non-governmental organizations in establishment and operation of the Peso.

RA 10691 was the consolidated version of Senate Bill 1386 and House Bill 4275 that President Aquino signed during the 15th National Peso Congress.

Estrada, the principal author of the law, said the enhanced Peso Act will pave the way for a more systematic and grassroots approach to employment administration toward effective reduction of joblessness and poverty.

“We hope that the Peso, with enhanced capacity and clearer mandate and systems, will assist more out-of-work Pinoys and further ease unemployment rate in the country,” Estrada said, noting that the Peso’s budgetary requirement for the past years has been largely unsubstantiated.

The new law seeks the establishment of the Peso in all provinces, cities and municipalities, which previously were only set up in key cities, capital towns and strategic areas.

The Peso will be operated, maintained and funded by the local government units, and will be linked to the central and regional offices of the DOLE for coordination and technical supervision to constitute the national public employment service network. PNA

p.a.f. b-205a up for repairs The Philippine Air Force (PAF) has allocated the sum of P6 million for the acquisition of spare parts needed for the repair and maintenance of one of its B-205A helicopters.

Bid opening is scheduled at November 10, 9 a.m. at the PAF Procurement Center Conference Room at the Villamor Air Base in Pasay City.

The B-205 is the civilian version of the Bell UH-1 Iroquois single-engine military helicopter.

It is type-certificated in the transport category and is used in a wide variety of applications, including crop dusting, cargo lifting and aerial firefighting.

The PAF is known to operate four to six units of the said helicopter. PNA

Aquino says govt still weighing option on joining China-led Asian infra bank

By Butch Fernandez

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resident Aquino on Tuesday confirmed the Philippine government has yet to firm up a decision to accept an invitation to join the China-led Asian Infrastructure Investment Bank (AIIB).

“We are still considering the invitation whether or not to join the AIIB,” President Aquino told journalists at the Foreign Correspondents Association of the Philippines (Focap) Forum at Solaire Resort and Casino on Tuesday.

Mr. Aquino, however, said he was looking forward to another meeting with President Xi Jinping when the Chinese leader comes to Manila for the Apec Leaders Summit next month, but did not say if the AIIB invitation will be on the table.

Asked if he would initiate a small talk with the Chinese president, Mr. Aquino replied: “I’d like to be the perfect host to all of my counterparts, including the observers, and in the two days, primarily, obviously I will try to engage all 21 [Apec leaders] in fruitful conversations.”

The President admitted he was not sure his “accidental” meeting with the Chinese leader when he attended last year’s forum in Beijing “was really by accident,” but added that he was looking forward to such meeting with Jinping happening again in Manila.

“Well, I look forward to having, ’di ba, the ‘C’ portion of Apec is cooperation in the community. So that is the goal,” he said.

This, even as Mr. Aquino confirmed

there was no bilateral talk set with his visiting Chinese counterpart at the sidelines of the Apec Leaders Summit, but assured he was “open to it.”

“Currently, there is no schedule for a bilateral talk, but we are very open to it,” Mr. Aquino said. “But there are others that have already indicated that they want bilateral discussions, including those that will be coming on state visits before the launch of Apec.”

But should he get to talk with the Chinese president, Mr. Aquino said he will just convey what he already told Jinping’s predecessors that “all our governments are supposed to be there for the improvement of the lot of our people, improvement in their lives, and this can only happen if there’s stability. So if there is a central message that would be what I would want to convey.”

On whether he believes that China should do more to improve the economic interaction between the two countries, the President recalled he already pointed this out earlier.

“Chinese companies invested something like $600 million in the Philippine economy. Philippine companies, I am told, invested something like two-and-a-half billion dollars in the Chinese economy. China sent us tourists of about 200,000-strong annually in 2011. We were sending about 800,000 at that point in time, so obviously…. Culture. I’m sure you’ve been around the country, I think you don’t think there is any place in the country that hasn’t have a Chinese restaurant, for instance,” Mr. Aquino reminded Focap members.

he number of travelers around the Philippines is expected to spike up in the coming days due to the holidays, prompting the government to deploy congestion-mitigating measures to ensure a smoother flow of traffic for all transport modes in the country.

In a news statement released on Tuesday, the Department of Transportation and Communications (DOTC) said it has activated Oplan Ligtas Biyahe: Undas 2015 “to ensure the safety and reliability of various modes of transport.”

The government anticipates peak period to run from October 30 until November 2.

“The DOTC has mandated all its attached agencies to implement 24/7 operations of their action centers in order to attend to passenger concerns. Additional security personnel and K9 units will be deployed at bus terminals, airports, and ports. First aid and help desks will also be put up, as well as charging stations and additional seats,” it said.

Specifically, the Land Transportation Franchising and Regulatory Board (LTFRB) was ordered to issue special permits for buses in order to meet the expected boost in passenger demand.

It has also started conducting inspections at transport terminals to ensure all operating public-utility buses (PUBs) meet roadworthiness requirements. At the same time, random drug and alcohol testing are scheduled “to ensure that drivers are not under the influence while conveying passengers from one point to another.”

On the other hand, the Toll Regulatory Board (TRB) was ordered to remind expressway operators to strictly implement traffic rules and regulations, especially the speed limit, in order to avoid any untoward incidents.

The Manila International Airport Authority, which has started its own program yesterday (October 27), has instructed airline companies to deploy additional personnel at check-in counters for efficient processing in order to prevent long queues, as up to 50,000 daily passengers are expected to fly during the holiday.

The Civil Aeronautics Board, meanwhile, reminded airlines to abide by the policies under the Air Passenger Bill of Rights. Public assistance desks will also be available for any concerns or complaints among passengers.

The Maritime Industry Authority and the Philippine Coast Guard are scheduled conduct routine seaworthiness checks on ships, while the Philippine Ports Authority is slated to implement stricter security checks at port facilities.

A6 Wednesday, October 28, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

A word on the Chinese yuan once again

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rom all indications, the International Monetary Fund (IMF) is all set to include the Chinese yuan into the currency basket of the IMF’s Special Drawing Rights (SDR). This inclusion of the yuan into the SDR basket will be good to the international economy, the Chinese economy and, to a lesser extent, the United States economy.

To enter into the SDR basket, a currency has to be a major medium in international trade—i.e., a currency for the payment of much of the world’s exports—and a major reserve currency of many countries. The Chinese yuan is now a strong currency in both fields and is on the way to becoming even stronger in those two respects.

This development on the Chinese yuan will be an unambiguous gain for the world economy. Now the developing countries, including the Philippines, can have access to five currencies instead of four in the settlement of balance of trade problems. These countries can now also have the yuan as an international reserve currency. In fact, according to the Standard Chartered Plc. and the AXA Investment Managers, at least $1.0 trillion of global reserves can be expected to migrate to the yuan as soon as the yuan is accepted into the SDR. This recognition of the importance of the yuan in the international trade and financial system places at least two obligations on the Chinese government, one, a readiness to accept an increasing volume of imports from developing countries and, two, commitment to free currency convertibility. Without the former, developing countries cannot acquire the positive trade balance they need to amass any currency reserves in yuan. Without the latter, no country will want to build up any reserves in the Chinese currency, to begin with. Compliance with these obligations will enhance the role of the yuan in international economic transactions and give political prestige to the Chinese government.

What will be the impact of these prospective changes on the US economy?

Answer: A diminution of the privilege that arises from being the major currency of the world trading and financial system, somewhat of an embarrassment in the short term, but a gain in the long term.

Being the issuer of the major reserve currency of the world, the US economy, has for a long time, now freed itself from the usual penalties that flow out of trade deficits. It simply printed money to pay for deficits—blatantly, according to critics—in all these years. The value of the US international debt, in the trillions of dollars, is a measure of the extent the US has been paying with pieces of paper, its purchases of real commodities and real services from the rest of the world. With interest rates on federal deposits currently close to zero, the US government is taking loans from the rest of the world at no cost to itself.

With the Chinese now looking closely, the US government might be constrained to more actively promote its exports and, thus, reduce its perpetual gargantuan trade deficit and control more energetically the explosion of its international debt.

The SSS salary loan program Susie G. Bugante

All About Social Security

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he Social Security System’s (SSS) salary loan program is one of the most popular SSS programs among members. Over a million actively paying members avail themselves of this loan every year to address their short-term financial needs.

To be eligible to borrow under the program, a member must be currently employed, currently contributing self-employed or voluntary member.

If employed, the employer must be updated in the payment of contributions. The member-borrower has not been granted final benefits, i.e., total permanent disability, and retirement. He or she must be under 65 years of age at the time of application and has not been disqualified due to fraud committed against the SSS. A member is qualified to a one-month loan if he or she has contributed at least 36 monthly

contributions and a two-month loan if he or she has paid at least 72 monthly contributions. In both instances, at least six of the contributions should be within the last 12 months prior to the filing of application.

A one-month salary loan is equivalent to the average of the member’s latest posted 12 monthly salary credits, or amount applied for, whichever is lower. The two-month salary loan is equivalent to twice the average of the member’s 12 monthly salary credits, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower.

Bancassurance strategy Atty. Dennis B. Funa

INSURANCE FORUM Part 1

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ancassurance “is the process of using a bank’s customer relationships to sell life and nonlife insurance products;” it is “the process of using a bank’s branches, sales network and customer relationships to develop sales of insurance products.” The Comite Europeen des Assurances defines bancassurance as “the provision of insurance-services by banks in an integrated approach.”

It is an insurance-distribution channel of recent creation.

It was first introduced in France in the 1980s where today it is noted for its huge success, so much so that life insurance (epargne assurance) has been perceived as a banking product. In 2000, for example, French bancassurance accounted for 35 percent of life premiums and 7 percent of property premiums. In France, banks are considered as the main providers of financial advice.

The underlying rationale for the partnerships with banks is the acceptance that banks can be a “trusted financial adviser.” Other motivations would be the large branch networks of banks and the fact that banks hold the funds for which to purchase insurance products. Thus, the convergence of banks and insurance as a financial service provider is inevitable. On the other hand, for banks, the sale of insurance policies is a new source of revenue.

The profit margins in traditional

banking products have been decreasing, particularly with decreasing interest rates. Thus, there is a need to boost profits and productivity. Indeed, bancassurance should be noted for its “synergy effect.”

It is noted, though, that “there is nothing intrinsic within the term bancassurance that implies linkage in ownership terms between bank and insurer.” In other words, equity ownership is not a factor. The growth of bancassurance as a channel is largely affected by “the number of banks per unit of population,” and regulatory constraints.

It is noted that the traditional insurance intermediaries had objected initially against bancassurance. Indeed, the tendency is to lead to a decline in agents’ productivity.

Today banks have been proven to have a higher productivity than traditional agents. Bancassurance competes directly with agents and

The loan is payable within two years in 24 monthly installments, with an interest of 10 percent per year based on diminishing balance.

A service fee of 1 percent of the loan amount will be charged and deducted from the loan proceeds.

To apply for a salary loan, an employed member goes through his or her employer either by filling out a form or through the SSS online facility (in this case, both employee and employer must be registered). Selfemployed and voluntary members may file directly through the SSS branch nearest them.

Here’s a piece of good news! Members can now opt to receive their salary-loan proceeds through electronic cards instead of checks. Early this year the SSS announced the availability of the SSS-Citibank cash card in which a member’s salary loan will be credited if he or she opts for it. The use of electronic cards provides members with greater ease, convenience and efficiency compared to check payments.

Yesterday, SSS announced the launching of the SSS-UnionBank Quick Card, an automated teller

machine (ATM) card linked to a member’s personal UnionBank savings account that would be opened as part of the SSS salary-loan application. Quick Cards will be issued to members free of charge on the same day as the salary-loan approval.

Members can withdraw their salaryloan proceeds from any Bancnet, Expressnet and Megalink ATMs, as well as use their SSS-UnionBank Quick Cards for over-the-counter and online purchases at Visa-affiliated merchants, similar to a debit card.

This salary-loan electronic facility is initially available at the SSS Diliman, Makati-Gil Puyat and PasigShaw branches.

brokers for customers.

Lately, we have also seen the development of a concept, known as “assurbank,” or the selling of banking products to an insurers’ clients.

In France the largest assurbank is AXA Bank. In Germany, Switzerland and Austria, the concept of “allfinanz” could also refer to bancassurance although allfinanz is broader in scope. Allfinanz or “all finance” is “the bundling of different products to offer integrated and personalized financial solutions to customers.”

barriers between banking and insurance services.

In South Korea restrictions on bancassurance were only relaxed in 2005. In Japan bancassurance was introduced in 2000, and fully liberalized by 2007, when the Financial Services Agency lifted the ban on bancassurance.

Among the regulatory concerns would include a limitation on the bank’s commission or fees. In South Korea, as of 2012, banks are not allowed to have exclusive arrangements with insurance companies, and certain banks are required to have bancassurance agreements with at least three insurance companies and none can write more than 50 percent of the bank’s insurance business.

Experience in other countries

The market share of bancassurance (both life and nonlife) in other countries is varied. For example, as of 2007, the market share of bancassurance (life) in Portugal was 88 percent, while in Chile it was 13 percent. In Italy it was 59 percent, while it was 64 percent in France.

It has been noted that in Europe, bancassurance accounts for onethird of the total life insurance market. In Spain bancassurance represented over 65 percent of life insurance premium income in 2001.

In Poland bancassurance accounts for 46.7 percent of life insurance premiums in 2013.

In the United States the selling in banks of insurance was prohibited under the 1933 Glass-Steagall Act. The passage of this act was a direct off-shoot of the 1929 economic crash. Among other objectives, the law sought to prevent commercial banks from owning insurers in order “to reduce systematic financial risks.” This prohibition was lifted only in 1999 by the Gramm-LeachBliley Act, which eliminated the

For more information about the Social Security System (SSS) and its programs, call our 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_ relations@sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante.bmirror@ gmail.com.

Bancassurance products

Insurance products offered in banks are varied, ranging from accident and health to motor and household. From investment and retirement to professional indemnity.

From life to credit.

It has been observed that in most countries, life insurance has met more success in bancassurance than nonlife. Thus, the core product of bancassurance is life insurance. Although recently this has been replaced by investment products “with perhaps an insurance wrapper.” Another product category would be those related to traditional banking products, i.e., mortgages and personal loans.

Specifically, credit or creditor life insurance, which protects the borrower, in this case the banks, against the inability to repay a loan in the vent of death or disability.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Sustainability and inclusive growth

Real Americans Teddy Locsin Jr.

Kent Marjun Primor

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Driving Momentum

ast week the Swedish Institute, a public agency promoting interest and confidence in Sweden around the world, visited Manila for the first time. The primary goal of their visit was to talk about sustainable business practices in the Philippines and to encourage our Filipino executives to take part in the 2016 Swedish Institute Management ProgrammeAsia. The Philippines has been chosen as one of the six countries in Asia along with China, India, Indonesia, Thailand and Vietnam to be given representation in the management program that highlights strategies on finding innovative ways to integrate social, environmental and ethical considerations in business and politics.

It is no coincidence why these countries were chosen to participate in the program—Asia is the future of the world. China and India each have more than a billion people, while Indonesia, Thailand, Vietnam and the Philippines belong to one of the most dynamic economic regions in the world. Asia is, and will remain, the center of strategic economic activities. But as this development unfolds, we need to ensure that our growth equates to becoming more sustainable.

Sustainable development

AS investment firm Robecoscam reported in 2013, Sweden is the most sustainable country in the world due to advanced development of renewable-energy sources and low carbon emissions, and best practices in labor, education and institutional governance framework. In 2014 it became the sixth country in the world to adopt a national action plan in accordance with the UN Guiding Principles on Business and Human Rights.

Hence, our Filipino executives can benefit from these experiences and replicate best practices applicable to the Philippines.

Many organizations and private firms put emphasis on sustainability to drive business goals; meeting incumbent needs without jeopardizing the future generation. Good governance, structural reforms, profits, business expansion, human capital investment and environmental protection are concepts that can go together boosting growth and inclusiveness. It is good for business, the government and people.

Having a sustainable business increases competitiveness, promotes brand excellence and creates investment opportunities. When we visited the Integrated Microelectronics Inc. (IMI) facility in Laguna, we witnessed firsthand the embodiment of profitable business with social and environmental responsibility. IMI calls it 3Ps: Making money (profit), investing on its employees (people), and committing to sustainable environmental practices such as reducing waste and conserving energy (planet).

They have embarked on a sustainability program from top management down the line, including their products and services. The result is a 13-percent increase in IMI revenue from $745 million in 2013 to $845.5 million in 2014, and more relevant and well-respected products worldwide. It was particularly impressive to see how continuous people development and putting a hefty premium on social and environmental responsibility led to being able to innovate cutting-edge solutions in an intensely competitive global marketplace.

What do we gather from their experience? Its growing big and getting more involved with environmental cause yet yielding more business opportunities. It shows human ingenuity in harmony with nature, nurturing communities and enriching people’s lives.

Inclusive growth

Sustainability promotes inclusiveness. It generates higher

revenues, improved preparedness toward natural disasters, and a deeply embedded concept of growth. Such realizations have been recognized by our government, as exemplified by instituting a good governance framework.

Nevertheless, continued structural reforms are needed for growth to be sustainable and inclusive.

The approach needs to be trilateral: system, people and environment. A good system enables trade and vibrant business activities. It creates jobs that empower people, which, in turn, preserve nature.

These factors support one another. It is a win-win solution, but it has to start with the right systems in place.

For example, despite 6-percent to 7-percent GDP growth rate of the Philippines, 25.6 percent of the population is still considered poor. This is simply because growth has not trickled down to the poorest communities.

The current system needs to be improved so that substantial foreign investments will flow to the country. It is foreign direct investment that creates employment, and a more conducive business environment means bigger opportunity.

It is only then that we can uplift the conditions of our people—just look at the case of China, South Korea, and perhaps, Singapore. When systems work, people are empowered and sufficient resources are allocated for environmental protection. It has to be structurally embedded for it to be sustainable.

Just like how corporations benefit from business sustainability, the government too can create more value from it. Say for instance in tourism, a green environment does not only attract tourist arrivals but also stimulates employment and generate revenues. If good governance initiatives are sustained, corruption is minimized if not totally eliminated.

If sustainable strategies are implemented within the bureaucracy then business facilitation and government performance are enhanced.

If people engagement schemes are integrated, government workers will be motivated and more productive because their needs are responded and individual contributions are recognized. In other words, there are endless possibilities when sustainable practices are deeply entrenched at the core of every operation.

Finally, the attitude must be forward-looking whether in business or politics. Sustainability and inclusive growth are what we need —as a country, and as people. We either perish or survive. But when sustainability and inclusivity are integrated in our daily lives, we will always see the brighter side.

Kent Marjun Primor serves as the market research and communications specialist at the Nordic Business Council of the Philippines. For comments and inquiries, please direct it to kent. primor@nbcp.com.ph. For more information about the Swedish Institute Management Programme-Asia, go to www.si.se/simpasia.

Free fire

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ennifer Percy in the New York Times writes about the real Americans she’s met, fixing the mess made by America in Syria.

Killing should be giving nightmares to Lawton but his first kill brought its own eraser. An ISIS militant, strapped around with grenades, aimed a grenade launcher at Lawton who shot him first.

The turbaned son of a bitch went up in a plume of smoke and sand.

No sleep lost over a self-erasing target. Outta sight, outta mind.

Lawton, 26, heard about ISIS on the Daily Show; he was driving tour boats in Key West, partying, chatting up the girls. When he ran out of things to do he went back to his parents on Rhode Island; did a bit of house painting and thought of becoming a carpenter. He’d had a couple of years in the army but never deployed.

One day a friend from boot camp sent him a video showing the execution by ISIS of 250 Syrian soldiers

of the benevolent, not to say cosmopolitan dictator Assad. Lawton pulled out his $800 dollars of savings; bought a ticket to Iraq; took a fake cab to a Syrian safehouse where he met a scared American who was desperate to conquer his fears by fighting and killing ISIS militants.

They joined up.

Lawton and his new friend joined the Kurds, a race branded as terrorist by the US. The Kurdish rebels call him

Wednesday, October 28, 2015

Captain America. “After this I wanna relax, New York, maybe Miami,” Lawton mused. Cool. After his first kill, Lawton was good to go again.

Percy met Harrington,48, in Ohio, visa expired but still killing ISIS. Hopped up in Iraq with $10,000 for expenses, a suit of body armor, canned hams, turkey bacon, 25 pairs of clean socks, 10 packets of baby wipes, and paid $500 in overweight.

No problem with the body armor but the ham was a problem.

He spent a week in a Kurdish boot camp with two other Americans, a New Zealander, an Iranian (so it’s not true they are forced to fight ISIS, they just love to out and kill Sunnis, nice), and two Brits, one of them an actor who appeared in Law and Order, along with everyone else on the planet. Guys steer clear of the British actor who’s a bit of a psycho: cleans his weapon not taking out the bullets.

The youngest fighter was 19, the oldest 66—yeah, there’s a time to live and a time to die; a time to heal and a time to kill. Words are wasted trying to understand their motives. Simple.

To everything there is a season. They got themselves a pass to experience all the seasons in an abbreviated.

It’s not been all a bed of roses.

They don’t fight as well as seasoned Kurds who fight out of survival; if the Western-backed ISIS don’t rape and kill them; the Turks will because they are classified as terrorists by the US. The guys fear they might not be making a difference.

They miss their own point. It is not making a difference that counts but fighting when others are watching American Idol. A Texan says, “This should be seasonal, plow snow back home in winter; fill graves back here in spring.” Fuckin’ A. Despite disappointments everyone’s afraid to go home. What if you miss the big one, that crack at eternity, and the chance to make a difference by ridding the earth of more Westernbacked militants? What else is there, death in an old people’s home? In this sorry age of peace and all talk, there are still heroes and a poem is being written with blood in the sand in a sandstorm of bullets.

US is driving Mideast allies toward Putin

By Josh Rogin & Eli Lake Bloomberg View

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merica’s traditional Middle East allies, having run out of patience with President Barack Obama’s policy in Syria, are now reaching out to a resurgent Russia—even though it is bolstering the very dictator so many of them have pushed to leave power.

Some in Washington see the new ties as a threat to US interests, especially because the US has worked since the 1970s to keep Russian influence out of the Middle East. But the Obama administration sees an opportunity. The State Department is now quietly encouraging US allies to engage with Moscow, as part of Secretary John Kerry’s quest to win Russian support for a political process in Syria.

Kerry is the main US official still arguing for cooperation with Russia to start peace talks that could resolve the Syrian civil war. But the Russian response has been consistently to rebuke Kerry’s offers. Since Kerry began his latest diplomacy push in the spring, the Russians have sent tanks, bombers and soldiers to Syria. The Russian air force has focused its bombing on the US-backed opposition instead of the Islamic State (IS), the terrorists whom Kerry believes present a common enemy for Russia and the US. Nevertheless, Kerry has been pushing forward with his plan to convince Russia to be a partner in stabilizing the Middle East. He convened a meeting in Vienna last Friday between the foreign ministers of Russia, Saudi Arabia and Turkey and expressed optimism the four countries could work together on Syria.

“While we can agree to disagree on what and

when might occur with respect to the resolution of the Assad problem, we clearly can agree on a process that helps to bring about a resolution of that question. And that is a very important starting place,” Kerry said.

After the meeting, Russian Foreign Minister Sergei Lavrov in his remarks to the press briefly focused on common objectives Russia shared with the US. But Lavrov used the opportunity mainly to launch into a broad criticism of US policy in the region. He complained about the US interventions in Iraq and Libya and said that Russia would never support a plan that included regime change in Damascus.

“I have already heard rumors that deals are being or will be made here that in a certain time period President Assad will go,” he said.

“All this is not so.”

A senior administration official told us last week that this time around Kerry is trying to start a political process despite the disagreement over Bashar al-Assad. Kerry has said recently that the US could accept Assad remaining in power for a transition period, but the official said the Russians won’t concede to that.

“If we can get into a political process, sometimes these things have a way of resolving themselves,” Kerry said on Friday.

But while Kerry focused on convincing Russia to join with the West, Putin has been working to convince America’s Middle East allies that Moscow is the new power in the region.

Prince Turki al-Faisal, Saudi Arabia’s former ambassador to Washington and former intelligence chief, said as much Friday at the Center for Strategic and International Studies in Washington. There he gave President Vladimir Putin credit for outmaneuvering the US and said

Russia was now in a position to demand attention and respect.

“Putin is a man who has done so much harm to innocent people throughout the area in Syria.

But I must also consider that he is the head of a state, and that state is a big state, and he feels that state should have a decision-making role in the world,” he said. “And we have to deal with him. And it’s not that you ignore him or cast him off as a megalomaniac. He has a vision of the world and a strategy to put that vision in place.”

By hosting Assad in Moscow, Turki said, Putin sent a message to the region that anyone who wishes to oust Assad must go through him.

Putin may not be sincere when he says he wants to fight the IS, but the US-led coalition has not committed the resources necessary for the mission either, he said.

While Russia participates in the new US-led discussions over Syria, it is simultaneously striking side deals with US allies to further its military presence there, which the US government has called counterproductive.

On the same day as the Vienna meeting, Russia signed an agreement with Jordan to coordinate militarily against the IS. The next day, Kerry traveled to Jordan and Saudi Arabia to discuss Syria with leaders there. (Putin didn’t have to go to Saudi Arabia; the Saudi defense minister had visited Moscow earlier this month.) And while Kerry was in the region, the government of Iraq announced it had given Russia the green light to begin air strikes there too, over US objections.

Other gulf states have sent senior diplomats to Moscow in the last two weeks to discuss Russia’s recent moves into Syria. One senior Arab diplomat told us that these discussions were

A7

mainly to gauge Russia’s long-term intentions in Syria and to try to persuade Moscow to bomb IS targets rather than more moderate rebels.

American allies who are not active in multilateral diplomacy over Syria have been establishing closer ties to Moscow as well.

This month, after Prime Minister Benjamin Netanyahu went to see Putin, Israel established a hotline with Russia’s military to avoid an accidental confrontation between their forces.

After Egyptian President Abdel el-Sisi visited Putin in August, he pledged Egypt would work with Moscow against the IS. Retired General Jack Keane testified last week that Moscow is betting on US inaction.

“Putin is counting on the United States’s fear of escalation and fear of confrontation to scare off any US retaliation,” Keane said. “We need to continue to push for Assad to go, but let us be realistic. Russia, as Assad’s protector, will now play the decisive role.”

Some within the Obama administration tell us that Putin and Lavrov are leading Kerry on and that the only way Russia would become a constructive partner in Syria would be through coercion, such as sanctions against Putin or more military aid to the rebels Putin is attacking. But the White House is unwilling to escalate pressures against Russia because the guiding principle is to avoid a new crisis with Moscow.

The immediate problem with Kerry’s approach is that it forces America’s friends in the region to hedge their bets and move closer to Russia. Over the long term, there is a contradiction in Kerry’s plan. Putin is either the key to a peaceful resolution in Syria or the main obstacle.

He can’t be both.

2nd Front Page BusinessMirror

A8 Wednesday, October 28, 2015

Govt seen revising FPI, BOP projections for 2015

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By Bianca Cuaresma

HE government is seen revising its 2015 projections for the country’s trade performance and foreign portfolio inflow (FPI) assumptions, both of which could suffer from the global economic downturn, even as the balance of payments (BOP) is expected to remain in the surplus territory by year-end.

In an interview on Tuesday at the sidelines of the Asia-Pacific Financial Inclusion Summit 2015, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. told reporters that the new BOP projection—revised twice a year— is still being finalized.

“Trade might be changed because of the actual performance in the first nine months. We will look at all the components, but changes might be needed for trade and maybe portfolio investments,” the governor said.

Latest data from the Philippine Statistics Authority (PSA) showed

TETANGCO: “Trade might be changed because of the actual performance in the first nine months. We will look at all the components, but changes might be needed for trade and maybe portfolio investments.”

that the country’s exports to all countries from January to August this year hit $39.34 billion, down 4.4 percent from $41.13 billion during the same eight-month period

last year. The government earlier announced a target of 5-percent growth for exports this year.

Meanwhile, data from the PSA showed that imports grew by 1.5 percent from January to August against comparable figures last year.

This is slightly higher than the government’s 1-percent growth target for 2015.

For FPIs, or more popularly known as “hot” money, latest BSP data showed that net outflows as of October 2 this year have reached $413.94 million. This is a reversal of the government’s expectation for a net inflow of $1.4 billion.

Despite the global economic headwinds, however, the central bank governor said that the “overall trend will remain” in the positive territory.

“There will be a current-account surplus and an overall BOP position that is positive. If you recall, in the the first nine months, the BOP position was $1.8 billion [surplus],” Tetangco said.

The government projected a surplus for the year at $2 billion.

“So it is very close, it is achievable. The $2-billion [projected surplus] is achievable, given the

performance in the first nine months,” the governor said.

A mid developments in adv a nce d e conom ies a f fe c t i ng emerging markets like the Philippines, the BSP said last week that the country’s BOP position will meet its projection for 2015.

The BOP is the summary of all the country’s transactions with the rest of the world.

Tetangco said a healthy BOP position augurs well for the stability in the foreign-exchange market.

Last wee the central bank reported that the country’s BOP hit a surplus of $219 million at the end of the third quarter. September’s surplus was a reversal of the $450-million deficit seen in August.

Local markets have been rattled by developments abroad, particularly the speculation surrounding the monetary-policy movement in the US and the economic progress in China.

BSP data showed that the BOP stood as a deficit of $2.88 billion in 2014. This was a steep reversal from the previous year’s BOP, which was a surplus totaling $5.085 billion.

www.businessmirror.com.ph

GENERAL GOVT DEBT TO GDP RATIO FALLS FURTHER TO 36.2%

By David Cagahastian

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HE General Government (GG) debt as of June 2015 amounted to P4.7 trillion, or a 4.1-percent increase from the P4.5 trillion registered in June 2014, the Department of Finance (DOF) said on Tuesday.

As a percentage of GDP, however, the GG debt as of June 2015 constitutes only 36.2 percent of GDP, down by more than a full-percentage point from the previous ratio of 37.3 percent in June 2014.

In 2009 this ratio of GG debt in relation to the GDP was at 44.3 percent, which went down to 42.2 percent by the end of 2010.

The DOF said this continuing decline in the ratio of GG debt to the country’s GDP indicates an “improving capacity and sustainability of the GG debt.”

“Our general government debtto-GDP ratio has consistently taken a downward trajectory, since the President prioritized putting our fiscal house in order. Further narrowing reflects how we continue run a tight ship—crucial, especially in sailing through these uncertain times,” Finance Secretary Cesar V. Purisima said in a statement.

The nominal increase in the

amount of the GG debt was caused by the increase in the outstanding national government (NG) debt, which increased by P193.2 billion for the period of June 2014 to June 2015.

The DOF explained that the increase in NG debt was due to financing operations and the impact of peso depreciation as against foreign debt, which, up to this time, constitutes 37 percent of the country’s total debt.

The debt of local government units (LGUs), meanwhile, went down by 3 percent to P67.5 billion because of loan repayments and higher revenues collected by LGUs to fund their operating expenses, capital expenditures and debt payments.

Social-security institutions, like the Social Security System (SSS) and the Government Service Insurance System (GSIS), did not contribute to the increase in the GG debt, and instead raised their holdings of government securities by 1 percent of P4.6 billion from the June 2014 level.

GG debt is the total of the outstanding debt of the national government, the Central Bank Board of Liquidators, social security institutions, and local government units, minus intrasector holdings of government securities.

ENVOYS & EXPATS NIGHT/ DANGAL AWARDS FOR ELDERLY CARE A photo taken at the Third BusinessMirror Envoys & Expats Night and Dangal Awards for Elderly Care. (From left) Vince Guerrero, RiteMed general manager; Jun Vallecera, BusinessMirror editor in chief; Gen. Eduardo Ermita; Rep. Eileen Ermita-Buhain and husband Eric Buhain; Art Loyola, OIC, United Bayanihan Foundation; and BusinessMirror Publisher T. Anthony C. Cabangon.

STEPHANIE TUMAMPOS

US Navy. . .

Continued from A1

spoke on condition of anonymity to discuss the Lassen’s movements. A Pentagon spokesman, Navy Cmdr. Bill Urban, declined to comment.

The Obama administration has long said it will exercise a right to freedom of navigation in any international waters, including in the South China Sea. The point of sailing a US ship within 12 nautical miles of any of the artificial islands created by China would be to demonstrate the US assertion that they are not sovereign Chinese territory.

“Make no mistake, the United States will fly, sail and operate wherever international law allows, as we do around the world; and the South China Sea is not and will not be an exception,” Defense Secretary Ash Carter said on October 13.

“We’ll do that at times and places of our choosing,” Carter said. “And there’s no exception to that, whether it’s the Arctic or the sea lanes that fuel international commerce widely around the world, or the South China Sea.” Asked for comment about the US move, a spokesman at the Chinese embassy in Washington, Zhu Haiquan, said China respects freedom of navigation in the South China Sea. “Freedom of navigation and overflight should not be used as excuse to flex muscle and undermine other countries’ sovereignty and security,” he said. “We urge the US to refrain from saying or doing anything provocative and act responsibly in maintaining regional peace and stability.”

State Department Spokesman John Kirby said on Monday the US would not be required to consult with other nations if it decided to conduct freedom of navigation operations in international waters anywhere on the globe.

“The whole point of freedom of navigation in international waters is that it’s international waters. You don’t need to consult with anybody. That’s the idea,” Kirby said. He referred questions about specific Navy ship movements to the Pentagon.

China’s assertive behavior in the South China Sea has become an increasingly sore point in relations with the US, even as Obama and Chinese President Xi Jinping have sought to deepen cooperation in other areas, such as climate change.

China claims virtually all of the South China Sea. The Philippines and other countries that have territorial disputes with China in the busy sea have been particularly concerned by China’s recent land-reclamation projects that have turned a number of previously submerged reefs in the Spratly archipelago into artificial islands with runways and wharves.

Adm. Harry Harris Jr., commander of the US Pacific Command, has said the South China Sea is no more China’s than the Gulf of Mexico is Mexico’s.

The US should exercise caution in its foray into the South China Sea defined by Beijing as sovereign waters, the Chinese Foreign Ministry cited Foreign Minister Wang Yi as saying on Tuesday. AP/PNA/Sputnik

Electronic products. . .

The latest PSA data boosted the government’s confidence that the holidays and the onset of the election season would boost imports further.

“Merchandise imports growth is expected to maintain its growth momentum until the end of the year.

This outcome supports our view that domestic consumption will be the main driver of economic growth, at least in the short term, while the manufacturing sector is seen to remain vibrant,” Economic Planning Secretary and Neda Director General Arsenio M. Balisacan said.

Figures from the PSA showed that payments for electronic products, which accounted for 33.7 percent of total import bill, amounted to $2.05 billion in August. The PSA said this is 68.5 percent higher than last year’s figure of $1.21 billion.

“Mineral fuels, lubricants and related materials placed second with a 10.5-percent share to total imports, valued at $635.87 million. This registered a decrease of 49.7 percent, from its previous year’s level of $1.264 billion,” the PSA said.

Continued from A1

The Neda said spending for imported consumer goods grew by 19 percent to $1 billion in August, from $865.9 million a year ago due to higher purchases of both durable goods and nondurable goods.

“Imports of raw materials and intermediate goods, as well as consumer goods, will provide the boost going forward. Ramped-up importation for these commodity subsectors suggests an upward tick in the coming months, as the manufacturing sector is expected to increase production in anticipation of increased demand during the holiday season,” Balisacan said.

Among the monitored trade-oriented economies in East and Southeast Asia for August this year, the Neda said only the Philippines and Vietnam recorded positive imports.

“The onset of the election season in early 2016 is also seen as driver of import growth within the year, particularly of manufactured goods, such as paper and similar products, textile yarn, fabrics and made-up articles,” Balisacan said.

He, however, warned that the “chal-

lenging” external environment, coupled with severe weather disturbances that can exert upward pressure on the price of commodities, may dampen the country’s growth prospects.

“Thus, the government should remain committed to put in place policies to encourage investments, even those that cater to the domestic market. Similarly, the government should also ensure that there is ample supply of commodities, particularly food, to manage risks of inflation due to weather disturbances, thus protecting the purchasing power of consumers,” Balisacan said.

In August the country’s top sources of imports were China, the US, Taiwan and Japan.

The balance of trade in goods of the Philippines during the period registered a deficit of $953.89 million, higher than the $373.28-million deficit in August 2014.

Combined imports for January to August amounted to $43.65 billion, a 1.5-percent increase compared with $43.02 billion in the same period last year.