BusinessMirror February 27, 2016

BusinessMirror

OUT NOW To order, e-mail us at bmturningpoints@businessmirror.com.ph or call 893-1662, 814-0134 to 36 Available at all National Book Store and Fully Booked branches

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n

B C U. O

E

LECTION spending and low inflation will accelerate economic growth in the first quarter of 2016, according to a local think tank.

INSIDE

BEIJING IS WORLD’S NEW BILLIONAIRE CAPITAL

In its latest Market Call report, First Metro Investment Corp.-University of Asia and the Pacific (FMIC-UA&P) Capital Markets Research said GDP growth in the January-to-March period in 2016 will be faster than the 6.3 percent posted in the fourth quarter of 2015.

“We think GDP should expand at a faster pace in Q1 2016, as the government keeps the taps open as election day nears, consumer spending is still strong, especially when compared to a fairly low base in the same quarter last

B23

GARCIA, THOMPSON SHARE LEAD

SPORTS

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

Economy off to a good 2016 start–think tank

WORLD

Saturday, February 27, 2016 Vol. 11 No. 142

6%-6.5% Full-year 2016 growth projected by the FMIC-UA&P Capital Markets Research

IMF’S LAGARDE STILL SEES GROWTH EVEN AMID GROWING GLOBAL RISKS

We consider at the moment that the likelihood of materialization of such risks is slightly higher, but we still see growth.Ó ÑLAGARDE

year. The economy should slow down in the third quarter, but resume its robust growth in the fourth quarter,” the think tank said.

The research group is also keeping its full-year GDP growth forecast of 6 percent to 6.5 percent on the back of higher spending and low oil prices, which will keep inflation low amid the worsening El Niño.

Increased government spending this year, the think tank added, will not reach the target budget deficit of 2 percent.

However, it is in the process of revising its inflation forecast downward on account of the low oil prices. In January the think tank estimated that inflation will average 2.5 percent this year.

The FMIC-UA&P Capital Markets Research said crude-oil prices have been below $30 per barrel in most of January. This will help cushion the impact of El Niño C  A

I

PHL stocks are sure bet to top analyst on election spending

P

A8

RESIDENTIAL elections are a boon for Philippine stocks.

The nation’s benchmark equity index has climbed an average 20 percent in each of the years when the past four polls have been held, compared with an annual average of 14 percent since 1992, the date of the first elections since the ouster of dictator Ferdinand E. Marcos. The battle for the presidency will salvage stocks this year, as spending by politicians and officials spurs profit growth at media and consumer companies, according to Luz Lorenzo, the nation’s top-ranked analyst.

Filipinos go to polls on May 9 to choose a president and vice S “S,” A

AP PHOTO

UNITED NATIONS

AP PHOTO

MEDIA PARTNER OF THE YEAR

2015 ENVIRONMENTAL MEDIA AWARD LEADERSHIP AWARD 2008

NTERNATIONAL Monetary Fund (IMF) Managing Director Christine Lagarde said she still sees growth intact, even amid growing risks to the global economy.

As finance chiefs from the world’s 20 biggest economies begin a two-day meeting in Shanghai, Lagarde cited threats from geopolitical risk, the credit cycle, capital outflows and falling commodity prices.

“We consider at the moment that the likelihood of materialization of such risks is slightly higher, but we still see growth,” she said.

China is in a massive transition toward focusing on services and consumption, and the IMF strongly recommended that the nation set a growth target range of 6 percent to 6.5 percent, Lagarde said. The government this month said it set a 6.5 percent-to-7 percent range for its economic-growth target this year, slower than last year’s goal of about 7 percent.

Meanwhile, the effects of central bank monetary policies, even innovative ones, are diminishing, Lagarde said on Friday at an Institute of International Finance conference on the sidelines of the Group of 20 finance ministers’ and central bankers’ meeting.

The IMF this week urged the world’s biggest economies to come up with new ways to support demand and contain risks, as the outlook for global growth deteriorates.

The Washington, D.C.-based fund wants G-20 nations to unleash fiscal stimulus and structural reforms. Officials, including US Treasury Secretary Jacob J. Lew, have talked down prospects for a major global effort to stem financialmarket turbulence. Bloomberg News

El Niño, global headwinds sour business sentiment for Q1 2016

B

B B C

USINESS sentiment soured under the latest survey conducted by the Bangko Sentral ng Pilipinas (BSP) in the first quarter, with businessmen anticipating a dip in the economy’s performance as consequence of so-called local and global headwinds.

In the survey, the BSP said business optimism weakened in the January-to-March period, with the overall confidence index (CI) declining to 41.9 percent.

This marks a significant decrease from the 51.3 percent CI in the fourth quarter last year, when the so-called CI averaged 6.3 percent for the quarter.

The CI is computed as the percentage of optimistic firms minus the percentage of pessimistic firms looking at the local economy. A higher CI means the number of optimists proved greater than the number of pessimists for the period.

The BSP reported respondents who held less sanguine outlook of the economy on quarter-onquarter basis was due to seasonal factors, such as the postholiday slowdown in business activity.

PESO EXCHANGE RATES n US 47.6770

The adverse effects of El Niño on crop production and on businesses were also part of the seasonal factors behind the drop in confidence.

Local firms were also concerned with the topsy-turvy external sector, whose volatility could unduly impact the local scene, including worries on the outlook for global growth given continued weakness in China and the decline in global oil prices and other commodities.

Businesses have also adopted a wait-and-see attitude with regard to the outcome of the 2016 national and local elections.

Strong market competition and the bearish trend of the Philippine stock market also weighed rather heavily on their outlook in the first quarter.

The sentiment of businesses in the Philippines mirrored the less sanguine business outlook in the United Kingdom, Germany, China and South Korea, but was in contrast to the views of firms in the United States, Canada, France, the Netherlands and Russia. Across various sectors, firms in the services and wholesale and retail trade sectors were less favorable compared to that in the fourth quarter of 2015, while the sentiment of

construction-related firms was steady. Industrial firms, meanwhile, were more buoyant. For the next quarter, businesses turned more optimistic, with a CI rising to 49.6 percent. “The next quarter confidence index suggests that economic growth could be higher for the next quarter,” the BSP said.

Among the factors that spurred the optimism of firms in the second quarter this year include electionrelated spending; sustained increase in orders and volume of production; increase in demand during summer with higher influx of tourists; and expansion of new product lines for the quarter.

n JAPAN 0.4224 n UK 66.5809 n HK 6.1366 n CHINA 7.2963 n SINGAPORE 34.0380 n AUSTRALIA 34.3519 n EU 52.6020 n SAUDI ARABIA 12.7169

Source: BSP (26 February 2016 )

BMReports BusinessMirror

A2 Saturday, February 27, 2016

Exporters want ₧20B slashed from CCT funds for MSMEs

P

BY C N. P

HILIPPINE exporters want the government to establish a P20-billion emergency lending fund, which can be sourced from the P64-billion Conditional Cash Transfer (CCT) Program, to spur the development and competitiveness of micro, small and medium enterprises (MSMEs).

Assistant Vice President for Advocacy and Communications for the Philippine Exporters Confederation Inc. (Philexport) Ma. Flordeliza Leong said the proposal has been transmitted to the office of Trade Secretary Adrian S. Cristobal Jr. The fund, as proposed by Philexport, should be administered by the Small Business Corp. (SB Corp.), the financing arm of the Department of Trade and Industry catering mainly to the MSMEs. “The concept is, because MSMEs are having difficulty sourcing or accessing funds from the bank, we’re looking for all sources, and we are suggesting carving out P20 billion from the CCT Program, which is P64 billion, to serve as an emergency fund for MSMEs to be administered

by the SB Corp., which has a mandate for SME development,” Leong said in a recent interview.

To make the availment of funds easy for MSMEs, Philexport suggests imposing no collateral and setting a low interest rate with minimum documentary requirements.

Since the amount will serve as an emergency fund to finance what the organization defines as “high-impact programs” for export competitiveness, the government should consider credit exposure of about 25 percent of the proposed P20 billion.

Leong emphasized that substantial funds are needed to be directed to product development and export promotions, especially for traders coming from trade shows abroad.

“We cannot guarantee everyone of our members could be beneficiaries; but there are projects that are just waiting to be funded,” she added. The SB Corp. could set the metrics for the viable projects eligible for funding.

Philexport underscored the urgency of government support for export promotions, as the onset of economic integration in the Asean region is pitting Philippine-made exports with those of its neighbors.

According to the group, because of production costs, Philippine products are still more expensive than their Asean counterparts even with the lower tariffs. This is aggravated further by the fact that other Asean exporters receive government financial aid for trade-fair participation.

Economy off to a good 2016 start–think tank…

and election spending on inflation.

“Given the benign inflation outlook and the weak global economy, we think that the BSP [Bangko Sentral ng Pilipinas] will keep policy rate and SDA [Special Deposit Account] rate at their present level for the year, except possibly in December, when some signs of higher inflation may appear more firm,” the think tank said.

FMIC-UA&P Capital Markets Research also said that, despite global uncertainties, the country’s exports will slightly improve in 2016.

The growth of the country’s export earnings has been anemic in 2015. Export receipts contracted 5.6 percent to $58.65 billion in 2015, from $62.1 billion in 2014.

The group said the weak global economy will make the peso com-

petitive this year. This augurs well for both exporters selling goods abroad and overseas Filipino workers (OFWs) sending dollars home.

“Relatively weak exports and OFW remittances compared to the past, and the US economy poised to expand further, albeit at a historically lower trajectory, should continue to pressure the peso. However, we expect greater volatility since

the US growth may not be linearly upward bound,” the group said.

Last year government underspending in the first half of the year, weak export earnings and lackluster performance of the agriculture sector dampened the country’s GDP growth. The economy merely posted a full-year growth of 5.8 percent, the slowest since 2011, when the economy only grew 3.7 percent.

C  

The economy grew 6.3 percent in the fourth quarter, preventing the government from meeting its revised 6-percent to 7-percent growth target for 2015.

The fourth-quarter GDP was driven by the Services sector, whose growth accelerated to 7.4 percent from 5.6 percent, while Industry decelerated to 6.8 percent from 9.1 percent.

news@businessmirror.com.ph

Stocks. . .

C  A

president, just two of the more than 18,000 posts that will be filled nationwide. This year’s election spending could reach as much P47 billion ($987 million), based on the government’s official list of candidates for president, vice president, senate and party-list groups, and spending limit per voter set by law. The Philippine Stock Exchange index is down 2.6 percent this year, after falling in 2015 for the first time since the global financial crisis.

“There is a bias for stocks to go up during elections because there is a lot of spending going on that companies benefit from and this shows later in the bottom-line,” said Lorenzo, head of Philippine research at Maybank ATR Kim Eng. “Obvious beneficiaries of this spending are the media and consumer companies.”

Lorenzo, who was named best strategist and best research analyst in 2015 by the Fund Managers Association of the Philippines, recommends investors buy shares of media and consumer companies, including ABS-CBN Corp., the nation’s top broadcaster, and Jollibee Foods Corp., the biggest local fastfood company. She predicts the index will rise to 7,000 by the end of the year, or 3.4 percent above Wednesday’s closing level.

Shares get a sustained boost after the results as the new government historically rolls out market-friendly policies to boost economic growth, Lorenzo said. “The rise in share prices is no longer election-related and it’s driven more by what’s happening in the economy,” she said.

“What we have seen historically is the economy gets progressively stronger with each administration.”

Bloomberg News

news@businessmirror.com.ph

1 FTA deal before Aquino ends Palace term–DTI

T

HE Department of Trade and Industry (DTI) is sticking to its goal to conclude at least one free-trade agreement (FTA) before the end of President Aquino’s Palace term The DTI said in a news statement released on Friday that the Philippines is currently negotiating with at least three free-trade initiatives with the European Free Trade Association (EFTA) FTA, which it said, is the closest one to completion.

“We have made substantial progress in key areas of complementation and are optimistic that we can sign the agreement before June this year,” according to Trade Undersecretary for Industry Development Ceferino S. Rodolfo.

EFTA, which is composed of member economies Switzerland, Liechtenstein, Norway and Iceland, concluded its fifth round of negotiations with the Philippines early this month.

Prior to the negotiations, the DTI conducted eight consultations on a possible PHL-EFTA free-trade agreement.

If the DTI concludes the said agreement by June 2016, it would be the country’s second FTA, and first under the Aquino administration.

According to the DTI, the top Philippine exports to the EFTA countries include gold in semi-manufactured forms, digital monolithic integrated circuits, aircraft parts, printed circuits, artificial teeth and silver.

Philippine imports from EFTA include medicaments, diagnostic or laboratory reagents, parts of airplanes or helicopters and wristwatches.

“Improving market access with Europe through EFTA will encourage investments in the services and non-services sector, bring in high valueadded products, technological know-how and capital from their highly developed economies to our local economy,” Rodolfo added.

With the Philippines having gained preferential treatment for its exports through the European Union Generalized System of Preferences Plus (EUGSP+), the country can further cement its advantage by securing an FTA. “Right now, most Philippine products have duty free access to the EU through the EU-GSP+. We are targeting a more permanent and long term relationship through the ongoing negotiations with EFTA,” Rodolfo said.

Philippine exports to the EU have increased by 27 percent in the first half of 2015 due to the preferential scheme.

The Philippines is also actively participating in negotiations on the Regional Comprehensive Economic Partnership.

Rodolfo said that the DTI will continue technical consultations with the rest of the Trans-Pacific Partnership member countries including Chile, Peru, Japan and Vietnam.

In 2015 technical consultations were held with Canada and Mexico following consultations with the United States, Malaysia, Australia and New Zealand.

The DTI is also eyeing to conduct the first round of negotiations with the European Union for an FTA this year after 3 years of being in the scoping stage of talks. Catherine N. Pillas

News

BusinessMirror

Saturday, February 27, 2016 A3

‘Poe case different from Arnaldo’s’

T

B J R. S J

HE legal team of Sen. Grace Poe on Friday cried foul over news reports insinuating that the presidential candidate would suffer the same fate as the local official who was recently disqualified by the Supreme Court (SC) for using his foreign passport after renouncing his American citizenship.

Lawyer George Garcia clarified that the case of disqualified mayor Rommel Arnaldo of Kauswagan, Lanao del Norte, was totally different from that of Poe, because she never used a passport other than her Philippine passport after she renounced her US citizenship in October 2010, when she assumed the chairmanship of the Movie and Television Review and Classification Board (MTRCB).

“Lest the public be misled, the recent SC decision in Arnaldo v.

Comelec [Commission on Elections]

is inapplicable to the case of Sen. Grace Poe,” Garcia said.

In its decision in the Arnaldo case, which became final last December, the SC considered the use of a foreign passport by dual citizens as proof of ineligibility to hold public office as natural-born residents, with undivided allegiance to the Philippines.

Court records showed that Arnaldo used his passport just 11 days after he renounced his US citizenship. Such act, the Court said, was tantamount to recantation of his

Oath of Renunciation abandoning his American citizenship News reports said the ruling in the Arnaldo case is seen to set a precedent that will have a bearing on the disqualification case against Poe, who had asked the SC to reverse two Comelec decisions cancelling her certificate of candidacy (COC) for president, owing to alleged false material representations regarding her citizenship and residency.

But Garcia said there is “absolutely no basis” to compare Arnaldo’s case to that of his client.

“Records would show that Sen. Grace Poe never used her US passport after her renunciation of US citizenship in October of 2010,” Garcia pointed out. “The last time it was used by her was in March of 2010 or several months before said renunciation.”

“This was confirmed by the entries on the US passport itself and the travel records at the Bureau of Immigration, and this was further amplified during the oral arguments,” he added.

Show cause order sought

FORMER Sen. Francisco S. Tatad, meanwhile, asked the SC to order

officials of the Commission on Human Rights (CHR) to explain why they should not be cited in contempt for filing a memorandum on the issue of the disqualification of Poe without being told so.

In a motion filed before the Court, Tatad through his lawyer Manuelito Luna castigated the CHR for filing a memorandum on Poe’s case although it is neither a party nor appointed as an amicus curiae (friend of the court) by the SC. Luna said the CHR is considered an “interloper,” thus, may be held in contempt of court under Rule 71, Section 3 (c) and (d).

Under the said provision, a person may be punished for indirect contempt for “any unlawful interference with the processes or proceedings of a court and for “improper conduct tending, directly or indirectly, to impede, obstruct, or degrade the administration of justice.”

Luna named CHR officials, led by Chairman Jose Luis Martin C. Gascon and Commissioners Gwendolyn LL. Pimentel-Gana, Karen Lucia S. Gomez, Leah C. Tanodra-Armamento and Roberto Eugenio Cadiz, as among those should be ordered

explain for filing the memorandum.

The CHR on Wednesday asked the Court to accept its memorandum as an amicus curiae on the issue of Poe’s citizenship and residency.

In its memorandum submitted motu propio, the CHR through legal counsel Francis Tom F. Temprosa, said the State has an obligation erga omnes (toward everyone) to prevent stateleness among foundlings and that they are “inherently entitled to a nationality at birth.”

The CHR noted that as party to several international human rights instruments, the State has recognized “the need to provide for the protection” of foundlings’ rights, thus ensuring their right to a nationality.

But, Luna pointed out that the matter being litigated before the SC. does not concern foundlings in general.

“Suffice it to state that petitioner’s cases should be the least of CHR’s concern since the same do not involve severe cases of human rights or human-rights violations involving civil and political rights,” Luna said.

Luna also asked the Court to expunge from the records of the case the memorandum filed by the CHR.

Importance Tacloban airport gets ₧118.5-M equipment from Jica of rule of law in diplomacy T tackled in forum B C U. O

B R L. M

T

HE Philippines underscored the importance of the rule of law in the conduct of diplomacy and international relations, particularly in the field of disarmament and collective security, during a recent panel discussion with the theme “Disarmament and Collective Security.”

As an example on the importance of the rule of law in disarmament and collective security, Ambassador Cecilia B. Rebong of the Philippine Mission to the United Nations and other organizations in Geneva, Switzerland, focused on the Philippines’s arbitration case before the United Nations tribunal on the Convention of the Law of the Sea. “Sustainable peace and security are made possible by a rules-based regime, generally accepted by countries, that equalizes powerful actors and their less influential ones. Sustainable peace and security are direct products of the reason and ascendancy of the rule of law,” Rebong said, adding, “disregard the rule of law and you fail in conflict prevention.”

These sentiments were echoed by Michael Moller, director general of the United Nations Office at Geneva, who said in his opening remarks: “Disarmament is not only a security issue, it is interlinked with rule of law, human rights, trust among others. A wholistic approach which prioritizes prevention rather than focusing on the cure.”

The panel discussion focused on the practical and achievable steps, which disarmament mechanisms could provide to build confidence, political trust, defuse tensions and bolster cooperation in an increasingly charged international environment.

Other panelists included: Ute FinchKramer, member of parliament and vice chairman of the subcommittee for disarmament affairs of the German Bundestag; retired Ambassador Sergey Batsanov, director of the Pugwash Office; and Dan Plesch, director of the Center for International Studies and Diplomacy of the School of Oriental and Africal Studies (Soas) of the University of London.

Organized by the Permanent Mission of Canada and Soas, the event was attended by Soas graduate students, representatives of the Graduate Institute of International and Development Studies of Geneva, the diplomatic corps and civil society representatives.

HE Japanese government has turned over P118.5 million worth of equipment for the rehabilitation of the Daniel Z. Romualdez Airport in Tacloban City.

Rescue vehicles, fire trucks, baggage x-ray inspection systems and walkthrough metal detectors are among the quipment given by the Japanese government.

Japan International Cooperation Agency (Jica) said these will improve the airport’s safety capabilities and resiliency in case of natural disasters.

“Jica continues to support the Philippines’s rebuilding efforts post-Supertyphoon Yolanda [international code name Haiyan]. We’ve recognized the important role of

airports in the entire transport chain. Aside from being a main gateway to a region or country, an airport is also a base for emergency rescue and relief operations,” Senior Representative Tetsuya Yamada said.

“With this, we hope that the new airport equipment will help move forward the build-back better strategies of the Philippines for Yolanda recovery,” Yamada added.

The equipment assistance is a component of the Japanese aid agency’s P2.3-billion grant in aid program for projects designed for the country’s rehabilitation and recovery from Yolanda.

The grant also includes rebuilding schools, medical facilities and government offices. Under this assistance, Jica will also provided equipment to National Maritime

Polytechnic, as well as to meteorological radar stations and electric cooperatives.

“Japan’s experience with the Great East Japan Earthquake and Tsunami in 2011, which damaged our Sendai Airport, showed us that clearing and restoration works in calamity-affected airports must be done as soon as possible,” Yamada added. “Without early resumption of airport operations, transporting critical goods and services will be delayed.”

Jica said the Department of Transportation and Communications (DOTC) and Civil Aviation Authority of the Philippines (Caap) sought its assistance to improve the resiliency of the Tacloban airport.

Aside from the Tacloban airport, Jica is also working with DOTC

US Asia Pacific commander says China ‘militarizing’ WPS

C

B R A

HINA is transforming the international waters of South China Sea, or West Philippine Sea to the Philippines, into a military zone with its extensive military activities, including the installation of radars and deployment of surface to air missiles in the reefs that it has reclaimed, US Pacific Command commander Adm. Harry Harris Jr. said.

In a news conference at the Pentagon on Thursday (Friday in Manila), whose transcript was made available by the US Department of Defense, Harris said that Beijing was moving to militarize what was supposed to be international waters, constricting international navigation and overflights.

“I am of the opinion that they are militarizing the South China Sea [SCS]. And when they add their advanced fighters to Woody Island…and when they put their advanced missile systems on the Paracels, and when they build three 10,000-foot runways in the Spratlys, on the basis that they’ve reclaimed, when they do all of that, they’re changing the operational landscape in the SCS,” he said.

“With regard to what China is doing differently, over the past few years, what they’ve done is reclaimed almost 3,000 acres of bases, military bases, in my opinion, in the South China Sea,” Harris added.

The statement of America’s top military commander in the Asia-Pacific region simultaneously came with the holding of a maritime conference with focus on China at the Dela Salle University, which was attended by top political and military thinkers in the region.

Aside from looking into Beijing’s expansive claims, both in the East and South China Sea, the meeting also delved into the activities of other contending countries and how these activities have generated territorial disputes and tensions in the region.

Harris said that the United States and its allies are challenging China’s declared sovereignty in the WPS, partly by putting up more patrols that would have bigger number of US ships sailed closer into the islets and reefs that it has occupied, including in the WPS. “With regard to complexity, I think there are many things we could do in terms of increasing the complexity

of these operations, such as picking other formations to go through, to go near, and the like,” Harris added.

The ships’ formations could be in the form or combination of destroyers, cruises, littoral-combat ships and even a carrier strike group, which the admiral said has always been in the SCS. “So I think these, or any mix of these is a good combination of ships to have in the area. And we also bring carriers through the region, carrier strike groups and all that,” he said. Harris also raised the possibility that China will declare an air defense identification zone (Adiz), as it has done in the East China Sea, of which he is very much concerned, although he said it will never be followed by the US. “With regard to Adiz, or air defense identification zone, I am concerned about the possibility that China might declare an Adiz,” he said.

“I’m concerned about it from the sense that I would find that to be destabilizing and provocative. We will, we would ignore it, just as we’ve ignored the Adiz that they put in place in the East China Sea,” he added.

As early as last year, Defense Secretary Voltaire T. Gazmin said that China was already practicing the imposition of an air zone in the West Philippine Sea through its continued challenge of not only Philippine patrols but even by commercial or civilian aircrafts.

In fact, he said an Adiz could have already been in place, although it was not formally or officially declared.

On Wednesday, Sen. John McCain, chairman of the US Senate Armed Services Committee, prodded the Obama administration to do more in checking China which is acting “more like a bully.”

“The United States must now consider fresh options to raise the costs on Beijing’s behavior. Shaping rather than reacting to Beijing’s actions will mean adopting policies with a level of risk that we have been unwilling to consider up to this point,” he said.

and Caap in a project for new Communications, Navigation, and Surveillance-Air Traffic Management (CNS-ATM) systems development.

The project will help install new satellite-based systems in selected sites nationwide to enhance air traffic safety, reduce flight delays, and improve air space efficiency.

The CNS-ATM project has been identified by the National Economic and Development Authority (Neda) in its 2014 Official Development Assistance (ODA) Portfolio Review as one of the “problematic” ODA projects.

However, there has already been some improvement as the Neda has said the project posted a decrease in backlog of $205.62 to $30.71 million in Calendar Year 2013 from $236.33 million in CY 2012.

A4 Saturday, February 27, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Houston, Texas to Manila, PHL

T

HE city of Houston, Texas, is the capital of the oil industry in the United States. Some 5,000 companies involved in oil exploration, development, refining and distribution have their headquarters in this city.

Over two decades, compensation to the oil-company executives has come from stock options. In 1992 the US Congress passed a law encouraging “performance-based” pay, and 70 percent to 80 percent of these executives’ income depends on profitable company results and the share price.

During the oil boom, Houston was adding 100,000 new jobs per year, driven by the oil industry. That pace is now at a virtual standstill. Overall, home building is down, and commercial and office buildings are having problems with occupancy rates. Sales of single family homes fell 2 percent in January, and sales of houses priced over $500,000 tumbled 9 percent.

It is not just the executives that are feeling the pain. Thousands of middlemanagement jobs have been lost in oil exploration and production, and Uber drivers are being stocked with former energy-industry professionals trying to keep up on their car payments and put food on the table.

Over the last few months there has been a continuing conversation about the effect on the jobs of Filipinos working in the Middle East. At this point, the amount of remittances from overseas Filipinos is still growing. But, despite the Philippine government assurances that it has everything under control, we wanted some independent confirmation of that, and what we were told is not good.

Several organizations representing the interests of overseas Filipino workers have been sounding the alarm that workers are being fired. Several news organizations have done their own anecdotal stories from returning works.

We decided to ask someone we know well who is on the ground in a Persian Gulf state, which has thousands of Filipino workers. The story is not good and belies the government report.

This gentleman has been in the region for two decades and is a top finance officer of a company that manufactures construction materials. Our friend tells us that any government talk about this being a result of a move to employ their own citizens is false. Locals cannot do the jobs that Filipinos are doing.

However, his company has laid off 60 percent of overseas workers of all nationalities, from the rank and file to executives. There is just no business to keep the company employing these individuals.

The construction industry is dependent on government infrastructure projects, and almost all but the most vital projects have been canceled outright.

These governments do not have the revenues as a result of low oil prices to keep their economies growing. Companies are planning for this situation to continue for at least two more years. More layoffs will happen in the future, as the next wave of unemployment will come to Filipino employees not working for government-dependent companies as the local economies decline some more.

The Philippine government has had more than a year to prepare for this downturn, and another legacy of the Aquino administration will be to pass this serious problem to its successor.

What’s wrong with PSE? John Mangun

OUTSIDE THE BOX

T

HE first time I visited the then-Makati Stock Exchange in 1989, I was struck by how quiet was the trading floor. The other stock markets that I had been to were noisy with activity. The only commotion here was in the line of floor traders and clerks waiting to get food from the canteen in the rear of the room.

The bid and ask price postings from the various stockbrokers were written in chalk on a blackboard, as runners came forward from the trading stations. About three years before, the London Stock Exchange had effectively closed its trading floor, as the trades were now being done electronically through computers. The Philippine stock market was behind the times then as it is now.

Talking to members of the Philippine Stock Exchange (PSE) board of governors, there was a sense of optimism, although little did anyone there know that in a few months a coup attempt against the government would shatter all the good predictions.

Over the last nearly three decades, the PSE has bounced from the extremes of confidence and gloom rather frequently, including during the Asian financial crisis, the trading scandals of the presidential administration of Joseph Estrada, natural disasters, more coup attempts, and the worst global financial situation since the 1930s.

Like the Philippines, the PSE has never realized its full potential. Public participation as a percentage of the population is not much higher today than in 1989—at less than 1 percent. However, the percentage is not much better in Thailand, at less than 2 percent, and both a far cry from the 40 percent to 50 percent

The PSE has never quite evolved to use—for better or worse —modern trading habits like trading with borrowed money on margin and “short selling,” where you “sell high and then buy low.” The investment vehicles are almost completely unchanged since the days of the blackboard. in other countries.

Nothing much else has changed, except that the PSE now has fully computerized trading. The PSE has always been accused of being an “Old Boy’s Club” but, closer to the truth is that, the PSE is just an “Old Club.”

The PSE has never quite evolved to use—for better or worse—modern trading habits like trading with borrowed money on margin and “short selling,” where you “sell high and then buy low.” The investment vehicles are almost completely unchanged since the days of the blackboard. The PSE members and leaders have tried to bring the stock market into the 21st century with little success, and it is not their fault, because they have diligently tried.

Perhaps, in no other place on

Flexible working booming, but training for remote managers is still lacking

A

B L W | Country Manager, Regus Philippines

S the demand for flexible working in the Philippines continues to increase, it is important for managers to get with the times and ensure they are maximizing the potential productivity of both remote teams and fixed office employees.

The latest research by Regus, canvassing the opinions of over 44,000 senior managers and owners in business from more than 100 countries, including the Philippines, has found that 79 percent of firms are shifting their focus to measuring employee outputs with results-based assessments, rather than focusing exclusively on time spent in the office.

This signals that remote working is becoming more and more customary, and that firms have no interest in rewarding unproductive presenteeism. Clueless remote managers, it would seem, who still measure their workers on time spent in the office are fast becoming outnumbered as this new approach takes over. Also, while measuring outputs is clearly a much more suitable method of gauging remote worker performance, it is also a way for remotely based managers to effectively measure their team’s productivity wherever they are.

Remote working in the Philippines has gained popularity primarily due to the worsening traffic con-

ditions in Metro Manila. Employees waste between four and six hours a day just to travel to and from their office. Remote workers are given the freedom to maximize their hours productively, without the added stress and costs of commuting.

The Regus research revealed that 76 percent of businesspeople globally believe that senior management can actually become more productive if they are able to work flexibly, while 63 percent manage a remote worker at least part of the time. Some 61 percent of firms also use flexible working as a way of attracting and retaining staff, highlighting the important role that flexible working has in boosting productivity and motivating or rewarding talented staff. With the benefits increasingly becoming clear to both parties, it is no surprise that 54 percent of respondents revealed that companies like theirs are looking to increase the amount of remote workers.

In spite of this, it is alarming that less than half of firms, 43 percent, are

As Filipinos continue to demand remote working options, businesses in the Philippines need to invest in remote management training to ensure that the transition from fixed to mobile work force becomes a smooth one. With the amount of modern technology at our fingertips, a professional and properly equipped remote work location should be seen as an extension of the workplace, not a career or productivity-killer.

putting special training in place for the management of a remote work force. With more businesses embracing flexible working, implementing successful remote management processes is essential to ensuring top workers are recognized, nurtured and developed. Excelling in remote management, unsurprisingly, plays an integral part in fostering employee relations, motivation and loyalty, yet too few firms are putting a strategy in place to help managers make their remote workers truly shine. Special training for remote management should be high on the agenda, or the risk is that performance may suffer.

As Filipinos continue to demand remote working options, businesses

earth does the Executive branch of government take so much credit for stock-market performance to the upside while doing almost nothing to enhance the nation’s equity market.

For example, the Real Estate Investment Trust (REIT) has been a regular investment around the world since the 1960s and is now available from Ghana to Bulgaria.

In the region, it is common in Singapore, Malaysia and Thailand but, of course, not in the Philippines although a law was passed to regulate REITs in 2009.

However, because of the inability of Congress, the Securities and Exchange Commission and, particularly, the Bureau of Internal Revenue to figure out a fair, sensible and rational taxation scheme, the Philippine REIT lies dead on arrival.

There is really nothing wrong with the PSE that could not be remedied if the government ever decided to bring it into the 21st century.

But then again, that is true of many government efforts.

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

in the Philippines need to invest in remote management training to ensure that the transition from fixed to mobile work force becomes a smooth one. With the amount of modern technology at our fingertips, a professional and properly equipped remote work location should be seen as an extension of the workplace, not a career or productivity-killer.

The full benefits of flexible working are unlikely to be reached, however, if the locations offered in alternative to the main office are not conducive to productivity and are ill-equipped, noisy or distracting, for example. Additionally, employers should not assume that their remote staff would like to work from home.

Most don’t want to encroach on their home life, and workers are far more productive when working from a professional environment, which is closer to home, alongside like-minded businesspeople. Being in the same environment as other professionals also helps eliminate any potential feelings of isolation or loneliness.

Given the significant surge in flexible working, it is positive news that more and more firms are adapting their performance analysis to measuring real outputs regardless of location. A major caveat for manager’s remains, however: Firms need to invest in remote management training to get the best out of their work force.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Democrats are the real conservatives of 2016 B S T Bloomberg View

A

S the contest between Hillary Clinton and Bernie Sanders moves into its next phase —primaries in South Carolina and other Southern states—the question of who is the more “progressive” candidate still seems to preoccupy many Democrats.

On the issues, it’s beside the point.

Clinton and Sanders broadly agree on most things, and when they differ, one or the other may end up further to the left: Sanders in his attacks on Wall Street and call for free college tuition, Clinton in her advocacy of stricter gun laws and pleas for more generous treatment of immigrants.

But these mappings have lately obscured the more important, if sometimes oversimplified, distinction between the two candidates: their contrasting relation to the politics of the 1960s, in particular, the Democrats’ tumultuous nomination battle of 1968 that ended with riots on the streets of Chicago.

The analogy seemed especially suggestive in the first stages of the 2016 election, when Sanders’s surprising connection with young voters recalled the antiestablishment campaign of Sen. Eugene McCarthy, while Clinton was cast as the heir to Hubert Humphrey, the longtime liberal, with a sterling record in areas like health and education, but who sounded like the tired voice of the establishment.

But there was another legacy of 1968, and it is the one that matters now.

Coiled within the political drama that year was the collapse of the New Deal coalition that, for more than 30 years, held together the different factions of the Democratic Party.

That coalition had begun to fray in the mid-1960s, when many workingand middle-class white Democrats began to fear the party’s leadership was deserting them. Not at first: Those voters generally agreed with new laws, enacted under Lyndon Johnson, that ended legal segregation and voter discrimination in the South. The change came when Johnson introduced policies that redressed inequities in employment and housing that existed throughout American society.

The 1968 election was the first referendum on these changes. White voters left the party in droves. Some were attracted to Richard Nixon’s appeal to the “silent majority,” others to the populist, racially inflected campaign of the Alabama politician George Wallace.

Humphrey’s loss to Nixon began a new phase in which the Republican Party seized the political center. Meanwhile, the Democrats developed a new identity: The party of the New Deal became the party of the Great Society.

Over time, its base grew to consist of African-Americans, who became the most dependable and also influential Democratic bloc. They were instrumental in giving Democrats victories in the 1990s (Bill Clinton) and then again in 2008. Today those voters appear to favor Hillary Clinton by substantial margins in the Southern states, an edge that could decide who will win the nomination.

Why the attraction to Clinton? To begin with, she remains true to the ideals and vision of the Great Society.

This was clear in her speech after her victory in the Nevada caucus last Saturday. Her assertion that America is not a “single-issue country” sent the message social and cultural values matter as much as economic ones. And her vow to “build ladders of opportunity” echoed Johnson’s promise in 1965 that African-Americans would receive “the same chance as every other American to learn and grow, to work and share in society.”

Today that language sounds oldfashioned—its aspirational outlook is steeped in “images from the 1990s,” as the New Yorker writer Benjamin Wallace-Wells has written. But those same images may be reassuring to Great Society Democrats, who today represent their party’s conservative base—conservative in its caution and

in its preference for tried-and-tested approaches to policy and governing.

In other words, Great Society Democrats, like the New Deal Democrats they replaced, are keen to hold on their gains and advances—which include twice electing Barack Obama. They also distrust novelty.

This has been the case for some years now. And there is more involved than race. At the outset of 2008 election, African-American voters favored Clinton over the upstart Obama by as much as 25 percent. The shift toward Obama came only after he proved his viability and showed Great Society Democrats he really was one of them.

As we might expect of conservative voters, these Democrats turn out in high numbers in presidential election years. A bigger percentage of AfricanAmericans than whites voted in the 2012 election. They are also expected to vote at a higher rate than either Latinos or Asians in 2016.

All this leaves Sanders in a paradoxical position. His bold agenda of economic “revolution” seems geared to this Democratic base. Yet, it seems skeptical of him. This frustrates many of his supporters, including some influential African-American activists and intellectuals.

“You can go down Sanders’s platform issue by issue and ask, ‘so how is this not a black issue?’” the political scientist Adolph Reed, a prominent socialist, told an interviewer in January. “How is a $15 minimum wage not a black issue? How is massive publicworks employment not a black issue? How is free public college higher education not a black issue?” Cornel West, Ta-Nehisi Coates and Spike Lee have said much the same thing.

They have a point. In theory, Sanders’s program should resonate with African-Americans since they, as a group, were hit especially hard by the Great Recession and have not reaped many benefits from the recovery. The obstacle is their conservatism. They are “values voters,” many of them churchgoers, and may feel a stronger bond with Clinton, their fellow Great Society Democrat, who talks often of her Methodist upbringing and faith.

Ideology is important, too. Sanders, the avowed “democratic socialist,” connects easily on campuses, with their history of “grassroots” activism and “participatory democracy” that took root in universities, like Michigan and Berkeley, in the 1960s.

But “the children of turbulence,” as the historian Arthur Schlesinger Jr. called them, also look like children of privilege.

This was certainly the case in 1968.

In New York State, for instance, Gene McCarthy’s strength was “concentrated not in poor precincts but in the most fashionable neighborhoods [Manhattan’s East Side] and suburbs [Great Neck],” Kevin Phillips wrote in his classic election book, The Emerging Republican Majority.

It happened again with the prairie populist Sen. George McGovern in 1972. Though he had a strong prolabor record, his campaign resonated most powerfully on campuses and among intellectuals.

And so again with Bernie Sanders.

Even as his support surpassed expectations, its limits began to show. He performed well in overwhelmingly white Iowa and New Hampshire, which have two of the lowest unemployment rates in the country.

But in the South, economic and social conditions are very different.

Sanders has been bitingly critical of Wal-Mart, which in South Carolina employs some 30,000 people, many of them black. Nationwide, blacks make up almost 20 percent of Wal-Mart’s 1.3 million workers.

To the person who holds such a job, Clinton’s plea that “the middle class needs a raise” sounds more practical and also more respectful than Sanders’s observation in the last debate that “no one thinks that working in the factory is the greatest job in the world.” And Sanders’s martial attacks on “the 1 percent” in some cases include those who own or finance factories and businesses that employ many working-class people.

‘Misericordiae Vultus’ Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER Part Six

Note: Today we continue the reprint of Misericordiae Vultus—the Bull of Indiction of the Extraordinary Year of Mercy by His Holiness, Pope Francis.

I

T would not be out of place at this point to recall the relationship between justice and mercy. These are not two contradictory realities, but two dimensions of a single reality that unfolds progressively until it culminates in the fullness of love. Justice is a fundamental concept for civil society, which is meant to be governed by the rule of law. Justice is also understood as that which is rightly due to each individual. In the Bible, there are many references to divine justice and to God as “judge.”

In these passages, justice is understood as the full observance of the law and the behavior of every good Israelite in conformity with God’s commandments. Such a vision, however, has not infrequently led to legalism by distorting the original meaning of justice and obscuring its profound value. To overcome this legalistic perspective, we need to recall that in Sacred Scripture, justice is conceived essentially as the faithful abandonment of oneself to God’s will.

For his part, Jesus speaks several times of the importance of faith over and above the observance of the law.

It is in this sense that we must understand His words when, reclining at table with Matthew and other tax collectors and sinners, He says to the Pharisees raising objections to Him, “Go and learn the meaning of ‘I desire mercy not sacrifice.’ I have come not to call the righteous, but sinners” (Matthew 9:13). Faced with a vision of justice as the mere observance of the law that judges people simply by dividing them into two groups—the just and sinners—Jesus is bent on revealing the great gift of mercy that searches out sinners and offers them pardon and salvation. One can see why, on the basis of such a liberating

vision of mercy as a source of new life, Jesus was rejected by the Pharisees and the other teachers of the law. In an attempt to remain faithful to the law, they merely placed burdens on the shoulders of others and undermined the Father’s mercy. The appeal to a faithful observance of the law must not prevent attention from being given to matters that touch upon the dignity of the person.

The appeal Jesus makes to the text from the book of the prophet Hosea—“I desire love and not sacrifice” (6:6)—is important in this regard. Jesus affirms that, from that time onward, the rule of life for His disciples must place mercy at the center, as Jesus himself demonstrated by sharing meals with sinners. Mercy, once again, is revealed as a fundamental aspect of Jesus’ mission. This is truly challenging to his hearers, who would draw the line at a formal respect for the law. Jesus, on the other hand, goes beyond the law; the company He keeps with those the law considers sinners makes us realize the depth of His mercy.

The Apostle Paul makes a similar journey. Prior to meeting Jesus on the road to Damascus, he dedicated his life to pursuing the justice of the

Saturday, February 27, 2016 A5

law with zeal (cf. Philippians 3:6). His conversion to Christ led him to turn that vision upside down, to the point that he would write to the Galatians: “We have believed in Christ Jesus, in order to be justified by faith in Christ, and not by works of the law, because by works of the law shall no one be justified” (2:16).

Paul’s understanding of justice changes radically. He now places faith first, not justice. Salvation comes not through the observance of the law, but through faith in Jesus Christ, who in His death and resurrection brings salvation together with a mercy that justifies. God’s justice now becomes the liberating force for those oppressed by slavery to sin and its consequences. God’s justice is His mercy (cf. Psalm 51:11-16).

Mercy is not opposed to justice but rather expresses God’s way of reaching out to the sinner, offering him a new chance to look at himself, convert and believe. The experience of the prophet Hosea can help us see the way in which mercy surpasses justice. The era in which the prophet lived was one of the most dramatic in the history of the Jewish people. The kingdom was tottering on the edge of destruction; the people had not remained faithful to the covenant; they had wandered from God and lost the faith of their forefathers.

According to human logic, it seems reasonable for God to think of rejecting an unfaithful people; they had not observed their pact with God and, therefore, deserved just punishment: in other words, exile. The prophet’s words attest to this: “They shall not return to the land of Egypt, and Assyria shall be their king, because they have refused to return to me” (Hosea 11:5). And yet, after this invocation of justice, the prophet radically changes his speech and reveals the true face of God: “How can I give you up, O Ephraim! How can I hand you over, O Israel! How can I make you like Admah! How can I treat you like Zeboiim! My heart recoils within me, my compassion grows warm and tender. I will not execute my fierce anger, I will not again destroy Ephraim; for I am God

and not man, the Holy One in your midst, and I will not come to destroy” (11:8-9). Saint Augustine, almost as if he were commenting on these words of the prophet, says: “It is easier for God to hold back anger than mercy.”

And so it is. God’s anger lasts but a moment, his mercy forever.

If God limited Himself to only justice, He would cease to be God, and would instead be like human beings who ask merely that the law be respected. But mere justice is not enough. Experience shows that an appeal to justice alone will result in its destruction. This is why God goes beyond justice with His mercy and forgiveness. Yet, this does not mean that justice should be devalued or rendered superfluous. On the contrary: anyone who makes a mistake must pay the price. However, this is just the beginning of conversion, not its end, because one begins to feel the tenderness and mercy of God. God does not deny justice. He rather envelopes it and surpasses it with an even greater event in which we experience love as the foundation of true justice. We must pay close attention to what Saint Paul says if we want to avoid making the same mistake for which he reproaches the Jews of his time: “For, being ignorant of the righteousness that comes from God, and seeking to establish their own, they did not submit to God’s righteousness. For Christ is the end of the law, that every one who has faith may be justified” (Romans 10:34). God’s justice is his mercy given to everyone as a grace that flows from the death and resurrection of Jesus Christ. Thus, the Cross of Christ is God’s judgment on all of us and on the whole world, because through it He offers us the certitude of love and new life.

We will continue with Misericordiae Vultus next week.

To know more about Caritas Manila, visit www. caritasmanila.org.ph. For your donations, please call our DonorCare lines 563-9311, 564-0205, 09997943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@gmail.com.

Trump’s debate was a disaster…if voters notice

REPUBLICANS Ted Cruz and Donald Trump. BLOOMBERG

D

B J B | Bloomberg View

ONALD TRUMP is better at TV than anyone else who has ever appeared in presidential debates. Much better.

He also has no capacity at all to speak coherently on policy. He’s lazy: He’s developed about five minutes, maybe 10, of talking points, and he sticks with them. And as one crazy billionaire on a sitcom said when he ran for president, Trump doesn’t just have skeletons in his closet. He has “skeletons running around eating leftovers from the fridge.”

Of course, as my Bloomberg View colleague Megan McArdle pointed out during tonight’s debate, plenty of people have written about Trump’s lack of policy knowledge, but it hasn’t been dramatized in front of a large audience, yet. Tonight, Marco Rubio and Ted Cruz turned their attacks on him, and fully exposed him as basi-

cally a fraud and a buffoon. Whether the media will say that—in the news pages, not just the opinion pages—is an open question. It’s also unclear whether Republican voters will care.

The biggest moment came on health care, when Trump was repeatedly urged by CNN’s Dana Bash and by Marco Rubio to go beyond

“get rid of the lines,” which is all Trump has rehearsed on the subject.

He couldn’t. Rubio, quick on the uptake after his infamous glitch in the pre-New Hampshire debate, pointed out that Trump was now repeating himself; in fact, he continued, “I just watched you repeat yourself five times five seconds ago,” and proceeded to mock Trump’s slogans.

It was great theater, and it was also dead-on accurate. That’s what Trump has: A handful of slogans to fill in on each subject, which he repeats as much as necessary. That, and, of course, talking about how great he is. He did the same thing on Israel later in the debate. He does the same thing on immigration: He has a great line (for those who enjoy that sort of thing) about building a

wall and making Mexico pay for it, but he can’t really speak coherently beyond that.

Yes, all of that has been true from the start. Maybe Republican voters don’t care; after all, they’ve been trained by their party to oppose the very idea of complex government policy, including conservative policies. But at least tonight it was more obvious than usual that Trump is wildly unprepared for the office he is seeking.

Cruz and especially Rubio came prepared to hit Trump hard on personal issues, as well, including a civil lawsuit he’s currently been slapped with over “Trump University” and over hiring foreign workers for a Florida project. While these had been reported on before, they were new to the Republican debate stage. As was pressure on Trump to release his tax returns, an issue raised earlier today by Mitt Romney, of all people.

Trump’s response was his usual bluster, denial and attack. One of his specialties when confronted with something he’s said, on policy or anything else, is just to flat-out deny it. But if it generates highprofile follow-up stories, none of that plays well.

The pattern is clear and predictable: When faced with a poor performance, a tough story, or good news from another candidate, Trump says something crazy to pull the attention back to himself and on his own terms.

He’s likely to do it within the next 24-hour news cycle, maybe within the next 24 minutes.

To my eyes, Trump’s performance was a disaster, start to finish. But my eyes aren’t important. What will matter is how a third of the Republican electorate reacts to it—the third who are not yet sold on Trump, but not yet repulsed by him either.

Sports BusinessMirror

mirror_sports@yahoo.com.ph | sports@businessmirror.com.ph

LUISITA HIKES LEAD

CEREMONIAL RONDA RIDE T

HE Mindanao Leg of the LBC Ronda Pilipinas 2016 concludes with Saturday’s fifth and final stage that would serve as the ceremonial ride for virtual champion Jan Paul Morales of Navy-Standard insurance at the Malaybalay City Plaza in Bukidnon.

The 30-year-old Morales has already pocketed the Mindanao Leg crown after he dominated the 21.7-kilometer individual time trial Stage Four in Manolo Fortich on Thursday.

The ITT victory gave Morales 10 extra points to hike his total to 49 points, 14 ahead of closest pursuer and Navy teammate Ronald Oranza (34 points).

All Morales need to officially hoist the trophy is to finish the 3-km criterium.

“It’s finished,” said Morales, originally from Taytay, Rizal, but now lives in Calumpang, Marikina. “I’ll just try to play it safe and just finish the race.”

Morales also topped the criterium Stage Three in Cagayan de Oro City Tuesday and finished second to Oranza in the first two stages in Butuan City last week.

Daniel Ven Carino (30), Rudy Roque (26), Joel Calderon (23), El Joshua Carino (16), John Mark Camingao (12), Ronnilon Quita (12) and James Paolo Ferfas (9) rounded out the top 10.

Subic Bay to Boracay race kicks off sailing grand prix

T

HE 2016 Philippine Sailing Grand Prix sailed off on Friday with three equally exciting races from Subic Bay to the shores of Boracay Island.

The Subic Sailing Club, cochaired by Lighthouse Marina Resort President Jun Avecilla, launched the three-leg series to be highlited anew by the Standard Insurance Seventh Subic Bay to Boracay Race that started on Friday.

The Boracay Cup Regatta sails on from March 1 to 4 off the shores of the world-famous Malay municipality and the Ninth Commodore’s Cup Regatta gets going from March 29 to April 2 off Subic.

The two regattas are part of the prestigious Asian Yachting Grand Prix Circuit that also

stages races in Malaysia, Vietnam, Indonesia, Singapore, Thailand and Hong Kong.

“Over the years, we work tirelessly with our sailing partners toward opening more doors and spread [ing] the spark of sailing and enliven [ing] big boat-racing pursuits in the Philippines,” Avecilla said.

Eighteen yachts are sailing in three categories—Racing Class 1, Racing Class 2 and Cruising Class. Ramon Rafael Bonilla

THE organizers seal their partnership during the event’s press launch on Thursday night at the Century City Mall in Makati City. Shown above are (seating, from left) Subic Bay Metropolitan Authority Director Raul Marcelo, Lighthouse Marina Resort President Jun Avecilla, Standard Insurance Marketing Head Jie Saldavia, Organizing Committee Chairman Ricky Sandoval, Philippine Coast Guard Deputy Commander Commo. Athelo Ybañez and PLDT-Smart Luzon Area Sales Head Marlon Alberto. They are joined by (standing, from left) Papaya Charter and Services Director Renato Ticzon and Sperry Philippines Marketing Officer Carmela Castillo. STEPHANIE TUMAMPOS

E

DDIE BAGTAS fired 50 points, as Luisita hiked its lead over defending champion Canlubang by 12 points halfway through the 30th Philippine Airlines Senior Interclub golf team championships on Friday at the Mimosa Golf and Country Club in Clark, Pampanga.

Bagtas, who topped the individual category last year in Cebu City, had one birdie against five bogeys to lead Luisita at the Acacia and Lakeside composite course.

Benjamin Sumulong, playing for Luisita for the first time, birdied the closing ninth hole for 48 points, while Herminio Maravilla rounded out scoring with 44. Bong Sison signed a wrong scorecard and was promptly disqualified.

Luisita has a two-day total of 288 points.

Luisita nonplaying captain Jeric Hechanova said they will try to protect the lead.

All eight players of Luisita have now seen

O

action and Hechanova hinted a possible reshuffle of lineup to ensure victory.

Canlubang, which had a history of comefrom-behind wins, failed to reduce the overnight eight-point lead despite fielding top gunner Tommy Manotoc.

Manotoc, still a force to reckon with at 67, shot 51 points behind three birdies against six bogeys.

No other Canlubang player, however, scored better than 44.

Rolly Viray had a tough day, posting 44 points; while rookie Zaldy Villa had an embarrassing finish, needing five blasts to get out of the greenside bunker on the final hole. He picked up and limped with 43 points.

Tony Olives did not count for the second straight day with 41.

“We better do something on Saturday, hopefully reduce the deficit to six or seven,” Olives said.

While Luisita and Canlubang fight it out in the championship division, Mimosa continued

T

HE International Container Terminal Services Inc. (ICTSI) Ladies Philippine Golf Tour goes international again with its first two legs serving as part of the Taiwan Ladies Professional Golf Association (LPGA) Tour, guaranteeing another crack international rosters for the twin events set at Splendido and Manila Southwoods.

Korean Ye-nah Hwang nipped local amateur ace Princess Superal by one for the inaugural ICTSI Ladies Open at Southlinks last year with this year’s ICTSI Champion Tour at Splendido, also presented

by Champion Infinity, and the Taiwan LPGA slated fron March 9 to 11 at the wind-raked Splendido Taal Golf Club in Tagaytay City.

Recognizing the growing status of the LPGT in the region, the Taiwan LPGA has also made the next LPGT leg at Southwoods part of its circuit with the same Splendido field tipped to vie for the ICTSI Champion

T

ALYSA SALEN

T

later become the biggest spectacle on television,” Juico said in a statement on Thursday. “The main impetus behind the founding of modern Olympics was the promotion of peace, especially among the youth.”

Olympic Council of Malaysia President Tan Sri Tunko Imran said they are dropping the athletics events—plus bodybuilding, canoeing, fencing, judo and triathlon—because their “athletes are not even ranked compared from the other Southeast Asian countries.”

Imran added that their main objective of hosting the SEA Games “is to become the

Zobel boys fight back in Game 2 B R R B

T

Juico slams Malaysia SEA Games organizers HE head of the national athletics federation is dismayed over Malaysia’s announcement that it would exclude eight events from the centerpiece sport when it hosts the 28th Southeast Asian (SEA) Games next year.

Philippine Amateur Track and Field Association (Patafa) President Philip Ella Juico assailed his Malaysian counterpart for dropping eight events from the 2016 program. Included in the deleted list are decathlon, heptathlon, marathon, 3,000-meter steeplechase and 10,000 meters.

“The ancient Olympics had its origins in athletics when the Greeks launched what would

Ramontito Garcia shot the day’s best score—53 points—to lead Cebu Country Club into second place behind Mimosa with 275 points. Third was Orchard with 266.

The 69th PAL Interclub is sponsored by People Asia, Travelife, Mareco Broadcasting Network (Crossover), Manila Broadcasting Corp., Airbus, the BUSINESSMIRROR and Philippine National Bank.

Other supporters are the Philippine Daily Inquirer, Inquirer.net, Plantation Bay Resort and Spa, Tanduay Distillers, Asia Brewery, Splash Corp., RFM Corp., Goldilocks, Eastgate Publishing Corp., Robinsons Land and Rolls-Royce.

EDDIE BAGTAS (left) reacts on the green as Tommy Manotoc uses a long putter.

Tour at Manila Southwoods, also presented by Champion Infinity, and the Taiwan LPGA from March 16 to 18 at the Legends course in Carmona, Cavite.

The LPGT events, serving as the sixth and seventh legs of the 22-stage Taiwan LPGA, offer a total prize fund of $75,000 each.

That ensures a slam-bang action along with the rest of the LPGT schedule, now stretched to 10 legs, the biggest thus far in the four-year-old circuit sponsored by the ICTSI and organized by Pilipinas Golf Tournaments Inc. (PGTI).

“We take pride in hosting two Taiwan LPGA Tour legs, which only underscores the LPGT’s emerging status as one of the circuits to play in the region,” PGTI General Manager Colo Ventosa said. “The twin events will also give our local players the chance to measure up with their foreign counterparts and, at the same time, raise the level of play here.”

overall champion.”

Malaysia has initially selected 34 sports composed of 342 events for next year’s games.

Juico warned that, as vice president of the Asian Athletics Association (AAA), he supports any move by the AAA to withdraw recognition of the athletics event in Malaysia “should organizers remove even one event from the competition.”

“We call on the Philippine Olympic Committee to officially relay the sentiments of the Patafa on this issue to the authorities concerned,” Juico said. Ramon Rafael

Bonilla

HE National University (NU) Bullpups are not invincible after all.

De La Salle-Zobel proved that with a 7160 victory over NU in Game Two on Friday, which leveled the race-to-two series for the Season 78 University Athletic Association of the Philippines juniors basketball crown at the Arena in San Juan.

The loss was the first for the Bullpups in 15 games. Game Three will be at 2 p.m. next Friday in the same venue.

“We are just out to prove that we are worthy challengers. We’re not in the Finals for nothing,” said Head Coach Boris Aldeguer, whose Junior Archers lost Game One by a mile, 58-78.

Season Most Valuable Player Aljun Melecio scored 14 points and dished out nine assists, while Marco Sario topscored for the Junior Archers with 16 points on a five-of-eight shooting and MR Romero had a double-double of 14 points and 10 rebounds.

John Lloyd Clemente fired 25 points and Justine Baltazar booked his 13th triple-double with 15 points and 20 rebounds for the Bullpups.

Consecutive miscues by the Bullpups in the final two minutes secured the win for the Junior Archers. Miguel Fortuna’s steal and a lay-up in the last 1:15 and two free throws from Joaqui Mariano sealed the game for the Muntinlupabased squad.

Carl Tamayo of Adamson University, meanwhile, was named Rookie of the Year, while brothers Javi and Juan Gomes de Llano joined Melecio, Baltazar and Clemente in the Mythical Five.

ATENEO-DLSU SHOWDOWN

James and Dwyane Wade in 2008-2009.

Curry surpassed Kyle Korver’s mark of 127 straight games with a three, which he tied while making six threes at Miami on Wednesday night.

The Warriors improved to 52-5, the best 57-game start in league history. The 19951996 Chicago Bulls won 51 of their first 57 on the way to finishing 72-10.

Evan Fournier led Orlando with 20 points. Nikola Vucevic had 17 points and nine rebounds.

Elsewhere on Thursday, it was Golden State 130, Orlando 114; Boston 112, Milwaukee 107; New Orleans 123, Oklahoma City 119; Brooklyn 116, Phoenix 106; Houston 119, Portland 105; and San Antonio 96, Utah 78. AP

A

VALDEZ

LYSSA VALDEZ has, indeed, become not only the face of Philippine volleyball but, more important, the benchmark for other players to match or surpass.

Ask De La Salle Lady Spikers Head Coach Ramil de Jesus.

“For coaches like me, Alyssa has been a headache for us,” de Jesus told the BUSINESSMIRROR. “She is a great asset for their team [Ateneo]. But it’s good for us, because without Alyssa Valdez, the level of play in the University Athletic Association of the Philippines [UAAP] won’t rise. You will really have to push yourself to reach her level.”

The two-time defending champion Lady Eagles and Lady Spikers clash for the first time in Season 78 of the UAAP volleyball tournament on Saturday.

Game time is 4:30 p.m. but expect long queus to the Smart Araneta Coliseum gates for the highly anticipated showdown between the most popular women’s volleyball teams in the country.

And, like in previous seasons, the Ateneo-De La Salle clash is a standalone extravaganza—meaning there will be two separate tickets for the day’s twin-bill. The other

20th season of women’s volleyball league unfurls HE Basketball Efficiency Scientific Training (BEST) Center’s Women’s Volleyball League (WVL) kicked off its 20th season recently with 60 teams from top-ranked schools in the National Capital Region (NCR) seeing action.

Saint Paul College of Makati is back to defend its title against 12 other teams in the 13-under Developmental Division, while Colegio de San Agustin Makati faces the challenge from five squads as it tries to retain its crown in the 13-under Competitive Division.

In the 17-under Developmental Division, Hope Christian High School will also hold the fort against 20

its remarkable play in the Founders division.

The host club collected 140 points from Enrico Santos (49), Noel Yamzon (48) and Danny Abad (43) to improve to 289, a point better than Luisita.

Mimosa moved into a good position to become the first team outside the championship division to win the Interclub.

Ladies tour goes international

Curry sets record in 3-pt shooting RLANDO, Florida—Stephen Curry scored 51 points and set a National Basketball Association (NBA) record with a threepointer in his 128th consecutive game, as the Golden State Warriors beat the Orlando Magic, 130-114, on Thursday night.

A night after scoring 42 in a six-point victory at Miami, Curry made 20-of-27 shots from the field, going 10-of-15 on threepointers. The Warriors pulled away in the closing minutes of the third quarter, with Curry banking in a 44-foot shot at the buzzer for a 99-91 lead.

The reigning Most Valuable Player topped 50 points for the third time this season, the first player to do it that many times since LeBron

Saturday, February 27, 2016 A7

other teams. La Salle College Antipolo has 19 teams teams to contend with in the 17-under Competitive Division.

Milo Sports executive Robbie de Vera, Larong Volleyball sa Pilipinas Inc. President Jose Romasanta, BEST Center Founder Nic Jorge and WVL Commissioner Florentino Santos made the ceremonial serves to open the season. WVL first-timers include Saint Dominic Savio College, Young Achiever’s School of Caloocan Inc., Sisters of Mount Carmel Catholic School Inc. and San Pedro Relocation National High School.

“We’re very excited to host another season of the

WVL. This is a great avenue for young girls to showcase their volleyball skills and test their abilities in a major competition. With this tournament, we hope to train and produce more promising volleyball players who will dominate the game in the big leagues someday,” Jorge said. executive Robbie de Vera (left) makesMILOtheSports ceremonial serve with (from second from left) volleyball federation head Jose Romasanta, Nic Jorge and league commissioner Florentino Santos.

eliminations match pit Adamson University against University of the East at 12:30 p.m.

The men’s matches pit Adamson University against University of Santo Tomas at 8 a.m. and reigning titlist Ateneo against National University at 10 a.m.

Although her superior skills are obvious, Valdez refuses to be complacent about Saturday’s big game.

“De La Salle has a good system,” Valdez said. “They’re really prepared every time they go into a game. They have a polished standard through the years.”

“But we also prepare hard for each game and Coach Tai [Bundit] will definitely want us to work hard,” she added.

Ateneo only needs to beat De La Salle to complete a seven-game sweep of the first round of eliminations.

De La Salle is running second at 4-1 won-lost, followed

by NU (3-2), University of the Philippines (2-3), UST (2-3), Adamson University (2-4) and UE (0-6).

Valdez and the Lady Eagles will have their hands full against a De La Salle side that could potentially explode behind the comebacking Ara Galang, Kim Fajardo and Mika Reyes.

“I’m excited because it’s a big game and I know that it will be a good fight,” Galang said. “Our performance against Ateneo would determine how we improved as a team.” Lance Agcaoili

GALANG

Ceres, Kaya back in action in UFL

F

RESH from their Asian Football Confederation (AFC) Cup debuts, CeresLa Salle and Kaya return to action in the United Football League Cup when they battle separate foes on Saturday at the Rizal Memorial Stadium.

Ceres locks on the Group B leadership against Green Archers United at 4 p.m., while Kaya shoots for a share of the Group A lead with Stallion against JP Voltes at 6:15 p.m., Loyola Meralco and Global clash for solo second seed in Group B at 8:30 p.m.

After forcing a 2-2 draw with Selangor in its AFC Cup match on Tuesday in Bacolod City, Ceres is unbeaten in three matches.

Lance Agcaoili

Sports BusinessMirror

A8 | S

ATURDAY A TURDAY, FEBRU EBRUARY ARY 27, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

SURVEYS of voters and confederations indicate Sheikh Salman has the most support and could win a majority on the first ballot. AP

SHEIKH SALMAN FAVORED Garcia, Thompson share Honda lead

P

ALM BEACH GARDENS, Florida—Sergio Garcia made an eagle, avoided an alligator and wound up in a share of the lead on Thursday in the Honda Classic.

Garcia holed out with an 8-iron from 142 yards into the wind on the second hole for an eagle, and he narrowly missed an eagle putt on the 18th hole at PGA National. The Spaniard shot five-under 65 and shared the lead with Michael Thompson, the 2013 Honda Classic winner, who also birdied the last hole.

They were one shot ahead of Rickie Fowler and William McGirt.

The biggest excitement for Garcia was on the par-4 sixth hole, where he made his lone bogey.

His tee shot found the water left of the fairway, shallow enough for him to roll up his pants and try to play it out to the fairway.

That part was easy. He looked over his shoulder because of an alligator on the island, making sure it wasn’t going anywhere soon.

“I was more worried about the alligator that was on the other side of the island than getting out of the water,” Garcia said. “The ball, I could see probably half of it, so I knew that I could get it out. Almost made 4, which would have been a great 4. I’m not going to lie, I was happy with a 5.”

For the early starters, it was a rude welcome to the Florida swing—chilly and gusts that approached 30 mph.

Phil Mickelson extended his good play from a runner-up finish at Pebble Beach and shot 69, among 10 players who managed to break par in the morning. The wind eased slightly and the warmth returned briefly in the afternoon, and the crowd had a lot more to cheer.

That included the loudest cheer of the day on the par-3 17th, where Alex Cejka made a hole-in-one.

Rory McIlroy, however, wasn’t in a happy place when he finished. Standing outside the scoring area, he smacked his putter on the concrete before going inside to sign for a 72. It wasn’t an awful score, but the finish led to his angst. AP

Djokovic retires in Dubai

D

UBAI, United Arab Emirates—Top-ranked Novak Djokovic retired during his quarterfinal in the Dubai Tennis Championships with an infection in both eyes on Thursday, ending his global run of 17 consecutive final appearances.

“It’s an eye problem,” Djokovic, wearing dark sunglasses, said at his postmatch news conference. “I have had it ever since I arrived to Dubai.

Started with an infection, and then severe allergy.”

Djokovic said the infection started in his right eye but then presented in both eyes. He was instructed not to wear his contact lenses, except during matches, because it aggravates the condition.

“It’s gotten worse the last two days, unfortunately,” he added.

“It’s the first time that I have had such a problem with the eye. It was ultrasensitive today, the lights, and just wasn’t to be.”

The retirement ended Djokovic’s run of 17 straight finals dating to the 2015 Australian Open. He had won 13 of those finals, including the last seven since the US Open in September. He was one final away from tying Ivan Lendl’s Open era record of 18 straight in 1981 and 1982. But he wasn’t worried about his streak ending.

The last time Djokovic retired from a match was against Juan Martin del Potro of Argentina in a Davis Cup semifinal in 2011. He’s played 350 matches since then for a 312-38 win-loss record. AP

Z

URICH—The support of most nations in Africa and Asia and the backing of one of sports’ biggest power brokers should be enough to put Sheikh Salman of Bahrain in charge of the world’s most popular sport on Friday, as Fifa elects a president to maneuver the soccer body away from decades of corruption.

Fifa officials, delegates and observers told the Associated Press (AP) that surveys of voters and confederations indicate Salman had the most support and could win a majority on the first ballot. A second

round of voting will likely be necessary, unless the other four candidates concede.

Fifa rules require a two-thirds majority (138 of 207 federations) on the first ballot, and a majority (104) on later rounds.

Salman seems on track to get the biggest first-round tally, Fifa observers and officials not linked to any candidate told the AP on condition of anonymity. The officials, who didn’t want their names used to avoid angering voters in the secret ballot, said Salman had received solid pledges of support to get votes ranging from the “high-90s” to 117.

Fifa elections are typically secretive. Few voters offer public opinions and many promise votes to more than one candidate. “The only people you believe are the ones who say they won’t vote for you,” US Soccer Federation President Sunil Gulati once said.

But even supporters of Salman’s biggest competition—Gianni Infantino, the Swiss general secretary of European governing body UEFA—were not saying on Thursday they thought he was leading.

Salman would give the Asian region its first

WBC SLAMS AIBA B G B

T

The Associated Press

HE president of the World Boxing Council (WBC) sharply criticized the International Boxing Association (Aiba) on Thursday for its intention to allow professional fighters to compete in the Rio de Janeiro Olympics.

The WBC’s Mauricio Sulaiman said Aiba “does not have a clue of what boxing means and represents.” The head of pro boxing’s most prominent governing body also predicted “dangerous mismatches between experienced professional fighters and amateur boxers” if the pros take Aiba’s invitation.

Aiba President Ching-Kuo Wu confirmed his intention this week to change his organization’s qualifying structure to allow pro fighters to compete for gold medals in the multiday Olympic tournament in August.

Aiba’s latest proposal to erase the line between pro and amateur boxing has

attracted attention around the sport, and some pros are intrigued.

“I would if I could,” Wladimir Klitschko told the Associated Press (AP) through a spokesman, when asked about the possibility of fighting for his second gold medal after winning for Ukraine in Atlanta in 1996.

But the former long-reigning heavyweight champion added that his rematch with Tyson Fury in the spring would take precedence over any attempt to make the Ukraine team, likely making it impractical for the 39-year-old to compete in Rio. For Klitschko to get a chance at the 2020 Tokyo Games, Aiba would have to change its age limit of 40 on competitors.

Most top pros would face major obstacles to

president in Fifa’s 112-year history. His election would extend a run of success in Olympic and international soccer votes for candidates and host cities supported by Fifa and International Olympic Committee (IOC) member Sheikh Ahmad and his Kuwait-based vote-getting operation.

“He is a friend, he is a brother, he is a colleague, a mentor,” Salman said of Ahmad. “All of the above. We work together.”

Ahmad was key to delivering the IOC presidency to Thomas Bach in 2013, but has kept a lower profile presence in this four-month campaign. He maintained his public silence on Thursday evening, declining to comment to the AP, even while making last-minute visits with Salman to the Zurich hotel shared by voters from the Concacaf and Oceania regions— the nonaligned, “swing states” in a race between candidates from Asia, Africa and Europe.

Ahmad joined Fifa’s executive committee last year, after years of building coalitions in the IOC. Though Ahmad publicly rejects the “kingmaker” label, he flashes a smile when asked about it.

The other candidates are Prince Ali of Jordan, who conceded to Blatter after a first-round vote last May; Jerome Champagne of France; and Tokyo Sexwale of South Africa. AP

World Boxing Council President Mauricio Sulaiman said the International Boxing Association (Aiba) “does not have a clue of what boxing means and represents.” The head of pro boxing’s most prominent governing body also predicted “dangerous mismatches between experienced professional fighters and amateur boxers” if the pros take Aiba’s invitation. participation in the Rio Games. Even after getting the imprimatur of their national sanctioning body, they likely would have to travel to Aiba’s world Olympic qualifying tournament in Azerbaijan in June to earn a spot.

Injuries, financial sacrifices, pro commitments and the strictures of a multiday, multifight tournament would all hurt elite boxers considering the move.

“I just think that it’s highly unlikely” for any pros to make the US team in Rio, USA Boxing executive director Mike Martino told the AP. Aiba’s proposed changes almost certainly would lead to veteran pros fighting inexperienced amateurs, a factor pointed out by Sulaiman in a news release headlined “Aiba has reached rock bottom.”

“By matching amateurs against professionals and eliminating headgear, Aiba is showing that it does not seem to care about the physical well-being of the fighters or the correct practice of the sport around the world,” Sulaiman said. “How can multiday boxing tournaments be conducted safely and fairly without headgear? The youth of the world deserve to have the options and opportunities in amateur boxing.”

Many professional promoters and governing bodies have spoken out against Aiba’s evolution in recent years, at least partly because Aiba’s attempt to control pro boxing is an invasion of their own long-held turf.

Wu has repeatedly stated Aiba’s goal to control every level of boxing, and it began a version of pro fight promotion with its establishment of the World Series of Boxing and APB boxing leagues. The organization dropped the word “amateur” from its name and removed head guards from its male fighters in recent years to speed its transformation into a version of pro boxing.

Wu also championed the inclusion of women’s boxing in the London Olympics, an addition met with widespread acclaim. Women boxers are allowed to wear headgear in Aiba tournaments, including the Rio Olympics.

EASY WIN California Chrome, ridden by Victor

Espinoza, races to the $150,000 prize money at the Meydan Racecourse in Dubai, United Arab Emirates, on Thursday. The 2014 Kentucky Derby and Preakness winner appears to be back in top form with an easy two-length victory, a second straight win for the popular horse on the comeback trail. AP