Businessmirror august 28, 2016

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Sunday, August 28, 2016 Vol. 11 No. 323

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PHL current account close to deficit By Bianca Cuaresma

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@BcuaresmaBM

HIS year the country’s currentaccount surplus is under threat to fall in the deficit territory this week, after years of consistently providing surpluses to support the local currency, economists warned.

Pinoys support Duterte’s deadly war on drugs

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N the day he was sworn into office, President Duterte went to a Manila slum and exhorted residents who knew any drug addicts to “go ahead and kill them yourself, as getting their parents to do it would be too painful.” Two months later, nearly 2,000 suspected drug pushers and users lay dead, as morgues continue to fill up. Faced with criticism of his actions by rights activists, international bodies and outspoken Filipinos, including the top judge, Mr. Duterte has stuck to his guns and threatened to declare martial law if the Supreme Court meddles in his work. A sur vey early last month showed President Duterte has the support of nearly 91 percent of Filipinos. The independent poll was done during his first week in office,

In separate reports, economists from HSBC and ING Bank Manila welcomed a plausible scenario of the country’s current account sinking into the deficit territory due to the weak external demand affect-

ing the country’s trade numbers. The current account has been the biggest and most stable components of the country’s balance of payments (BOP), the summary of the Philippines’s transactions with

the rest of the world. This component is usually buoyed by the strong inf lows from overseas Filipino workers’ remittances and the revenues from the business-process outsourcing (BPO) sector. The export and import numbers of the country is also part of the country’s current account. In the first quarter of the year, however, poor trade numbers of the country caused a sharp decline in the country’s current core component of the BoP. The two powerhouse dollargenerating sectors for the Philippine economy were also not enough to cover the country’s weak trade numbers due to the flat remittances growth during the period. “ With ex ports falling, imports climbing and the growth of remittances f latlining, the See “Current account,” A2

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ARTuro T. VALDEZ, undersecretary of the Department of Environment and Natural Resources, points to the flattened mountains of Claver, Surigao del Norte. Soil from the flattened mountains are loaded to waiting Chinese cargo ships for shipment to China. During his inspection on August 26, 300,000 metric tons of dug soil were still piled at the foothills, while a still undetermined volume was also stacked at the other side of the mountain. MANUEL CAYON

God of compassion, Your help is near for those who call upon You. In trust we pray. God, come to our aid. Fashion our hearts to reflect Your wisdom, truth and mercy. Transform our ways of public communication to reflect honesty, authenticity and goodness. Advance dialogue and understanding between Christians, Muslims, Jews and other religions. May Your word instruct our hearts and guide our actions in love and wisdom. May we be inspired to live Jesus in our hearts forever. Amen! Give Us This Day, Committee on Divine Worship Shared by Luisa M. Lacson

ALEXANDER Cauguiran (right), newly appointed Clark International Airport president and CEO, and Airport Operations Manager Hilarion Nacpil inspect the Clark passenger terminal, which has a 4.5-million annual passenger capacity. LEO VILLACARLOS By Joey Pavia | Correspondent

Continued on A2

TRANSFORM OUR WAYS

AIRPORT C.E.O.WANTS NEW CLARK TERMINAL

LARK FREEPORT—The new president and CEO of the Clark International Airport Corp. (CIAC) is pushing for the construction of a French-designed terminal at the ClarkInternational Airport (CIA), in anticipation of more passenger volume and aviation activities under the administration of President Duterte. Former Angeles City Councilor Alexander Cauguiran, who was designated officer in charge of the CIA on August 19, said he will pursue the construction of the low-cost carrier (LCC) passenger terminal building (PTB) designed by the French firm Aéroport de Paris. “President Duterte’s order to the airline companies to transfer flights from the Ninoy Aquino International Airport [Naia] to Clark is firm. It is final, knowing his style in leadership. We are anticipating growth and we must prepare for it,” said Cauguiran, who was a former CIAC executive vice president for five years beginning 2006. Mr. Duterte was vocal in his desire to tap the CIA to decongest the Naia in Metro Manila, which had a record-breaking annual passenger traffic of 36,618,601 in 2015. The CIA had less than 1 million passengers on the same year. “The design is free and is modular. We can extend it, that’s why I like it,” said Cauguiran, who toured the BusinessMirror at the existing terminal, which can accommodate 4.5 million passengers annually. Continued on A2

DENR stops soil export to China by Surigao mining company By Manuel T. Cayon

Mindanao Bureau Chief @awimailbox

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LAVER, Surigao del Norte—The Department of the Environment and Natural Resources (DENR), backed by battle-clad soldiers and the police, nailed on Friday two signs “reemphasizing the suspension order” against a nickel-mining operation

PESO exchange rates n US 46.4890

owned by Rep. Prospero A. Pichay Jr. of the First District of Surigao del Sur. The two 1.5-meter by 4-meter signs read: “Notice to the Public: The mining operation of Claver Mineral Development Corp. [CMDC] is hereby suspended.” The signage was placed at the side of the entrance to the company’s field operation here near the mountain barangay of Cagdianao in the boundary with Surigao del Sur. There was no resistance from

the guards, who witnessed it. Environment Undersecretary Arturo T. Valdez said the putting up of the signs “only reemphasizes the authority of the government and to announce that the task force is ready to enforce the order.” He said the company operation was suspended in 2012 over environmental issues, including siltation of the bay of Claver. Environment Secretary Regina Paz L. Lopez also announced early

this month the DENR was suspending the operation of CMDC, after an audit found it to have erred on environmental protection. The company claimed, however, ​it is a “responsible mining company that sets and upholds the highest ethical standards and business practices, focusing toward local community development and maintaining environmental and ecological balance.” CMDC was established in 1995,

taking over from the Shenzou Mining Group Corp. of China. The regional Mines and Geosciences Bureau said there are 26 mining operations in the Surigao mountains, and the flattening of its mountains to ship the soil to China has generated public uproar. Photographs show copper orange-colored mountains made dusty by incessant diggings by several hundred bulldozers and trucks transporting them to barges,

n japan 0.4625 n UK 61.3329 n HK 5.9948 n CHINA 6.9794 n singapore 34.3625 n australia 35.4014 n EU 52.4721 n SAUDI arabia 12.4007

See “DENR,” A2

Source: BSP (26 August 2016 )


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