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Saturday, December 17, 2016 Vol. 12 No. 66

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RELEASE OF TOURISM ACT I.R.R. ENDS UNCERTAINTY IN GRANT OF TIEZA PERKS

Here come the tourism investments

El Nido, Palawan

Goncharov2006 | Dreamstime.com

By David Cagahastian

he Department of Tourism (DOT) expects hundreds of billions in investments in the tourism industry in the next five years, after the long-awaited implementing rules and regulations (IRR) of Republic Act 9353, or the Tourism Act of 2009, was finally issued.

Recently, Finance Secretary Carlos G. Dominguez III issued Revenue Regulation 7-2016 to provide the rules for the use of tax incentives for new and existing investors in the tourism industry. The regulation was issued by Dominguez upon the recommendation of Revenue Commissioner Caesar R. Dulay.

End of uncertainty

Tourism Assistant Secretary Frederick M. Alegre said the new revenue regulation was long awaited by prospective investors in the tourism industry, who have withheld their

investments since the passage of the Tourism Act in 2009 because there was uncertainty on whether they could enjoy the tax incentives granted by the law. “We’re expecting billions of pesos in new investments in the tourism industry in the next five years,” Alegre told the BusinessMirror. The DOT does not have an exact estimate of how much investments are expected to flow into the existing and upcoming tourism economic zones (TEZs) in the next five years; but based on recent estimates, the Philippines has missed around P58 billion in investments

in tourism annually for the past four years. According to the Tourism Infrastructure and Enterprise Zone Authority (Tieza), the tourism industry lost some P232.33 billion in investments from 2013 to 2016 because of the delay in the crafting of the IRR for the Tourism Act of 2009, which came out only in late2016 during the Duterte administration after being left on the back burner for almost seven years. The delay was due to the previous administration’s policy of frowning upon new tax incentives Continued on A2

₧232B Estimated worth of investments lost from 2013 to 2016 because of the delay in the crafting of the IRR for the Tourism Act of 2009

Military ready to deal final blow to Mindanao-based terrorists

By Rene Acosta

he military is intensely pursuing the Maute Group, also known as the Dawla Islamiya, in the aftermath of its recent attack and nearly weeklong occupation of Butig in Lanao del Sur, where it even hoisted the black emblem of the Islamic State of Iraq and Syria (Isis), which is currently being pummeled by Iraqi and Syrian forces in the Middle East. The pursuit operation is being carried out simultaneously with the ongoing offensive against the other terrorist Abu Sayyaf Group

(ASG) in the provinces of Sulu and Basilan, which have seen the spike of kidnapping cases during the past several weeks. The twin operations were being undertaken as the Armed Forces has learned its lesson from the ASG, the original homegrown terrorist group that has evolved into Mindanao’s foremost security threat from being a ragtag jihadist group in the 1990s. Such metamorphosis happened right under the government’s nose. While it may be a tall order to defeat the Maute Group in the short term, especially now that it

PESO exchange rates n US 49.9220

is already aligned with the Isis and even backed by the regional terror group Jemaah Islamiyah, it is still possible to break the group since it is still on its infancy.

Grappling with terrorism

No less than President Duterte has warned about the danger posed by the Maute Group with matching words of urgency for the military to lick it, along with the ASG problem, with his statements that the country would have to grapple with terrorism within the next two to three years. See “Military,” A2

New Armed Forces chief Lt.Gen. Eduardo M. Año (right) and outgoing chief Gen. Ricardo R. Visaya salute during the change-ofcommand ceremony at Camp Aguinaldo in Quezon City on December 7. AP/Bullit Marquez

n japan 0.4226 n UK 62.0481 n HK 6.4333 n CHINA 7.1853 n singapore 34.5888 n australia 36.7126 n EU 51.9988 n SAUDI arabia 13.3139

Source: BSP (16 December 2016 )

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A2 Saturday, December 17, 2016

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Here come the tourism investments Continued from a1

until all the fiscal perks given out by the government has been rationalized to ensure that only those deserving companies in priority sectors are provided the incentives.

Perks

Under the IRR issued by Dominguez, a prospective or existing locator in a TEZ may avail itself of either an income-tax holiday (ITH) of six years starting from its date of operation, or a preferential rate of 5 percent of its gross income instead of the usual 30 percent income-tax rate imposed on corporations. Other incentives that the law will give to prospective or existing locators in a TEZ are the longer use of net operating loss carry over (Nolco) from the usual three years to a maximum of six consecutive taxable years, the exemption from taxes on importation of capital investment and equipment and exemption from taxes on the importation of transportation equipment and spare parts. The locators shall be given exemption from the value-added tax (VAT) and excise taxes on the importation of goods necessary to carry out its Tieza-registered activities, and may be given a tax credit

Military…

equivalent to the national internal revenue taxes paid on all locally sourced goods and services. They shall also be entitled to up to 50-percent deduction on the cost of their activities for environmental protection, cultural heritage preservation, sustainable livelihood programs and other similar activities. Existing accommodation establishments outside of TEZs may also avail themselves of a nonextendible income-tax holiday of up to six years if they undergo substantial expansion on their businesses. These existing accommodation establishments shall also be exempt from the taxes due on importation of capital investment and equipment, and a longer period of six years within which they can deduct from their gross income their net operating loss carry over. There are also nonfiscal incentives given to tourism enterprises under the law, including the relaxation of rules on the employment of foreign nationals, the granting of special investor’s resident visas, and an easier process of leasing lands to foreign nationals.

‘Sunset provision’

The DOT, however, has appealed to Congress to continue supporting the tourism industry with relevant leg-

Continued from a1

The Commander in Chief again conveyed this sense of urgency when he gathered top military officials right after installing former Army Commanding General Lt. Gen. Eduardo Año as chief of staff of the Armed Forces. “The President reiterated his directive to us…that he wanted terrorism to be addressed properly, particularly the Abu Sayyaf Group (ASG) in Sulu and Basilan and other terrorist groups, like the Maute Group,” Año said after the command conference. Duterte wanted the military to do more in addressing the problem, ordering the officials to ensure that terrorist groups would not have the capabilities to carry out their activities. Año, whose designation as top military chief was seen as part of the effort in dealing with the existing threat of terrorism, refused to give a time frame in achieving the goal,

but ensured he would see to it that the directive is achieved. “We will do our best to make sure that these lawless groups will no longer be a threat to our people in the area,” he said. Compared with his predecessor, retired Armed Forces Chief of Staff Gen. Ricardo R. Visaya, who failed Duterte both in the campaign against the ASG and the Maute Group, Año is highly respected by his peers for his intelligence and operational grit. It was under Visaya’s term that the ASG committed a rash of kidnappings, snatching Indonesian and Malaysian seafarers, while the Maute Group occupied the whole municipality of Butig.

Pushing on with the campaign

Just a day after Año was given full control of the military, fighters of the Moro Islamic Liberation Front

PANGLAO, Bohol

Kjorgen | Dreamstime.com

islation, such as the removal of the so-called sunset provision in the effectivity of tax incentives granted under the Tourism Act of 2009. Under the original law, the ITH and other tax and fiscal incentives given to tourism enterprises shall be extended to them only for 10 years, which means that those incentives can only be granted up to 2019. Tieza currently has identified five flagship TEZs, which will be the main destinations of the billions of pesos in investments in the tourism sector in the next five years.

These TEZs are in San Vicente in Palawan; Rizal Park Complex in Manila; Mount Samat Shrine of Valor in Bataan; Bucas Grande in Surigao del Norte; and Panglao Bay Premiere Properties in Bohol. These flagship TEZs will be operated and managed by Tieza. There are also some private TEZs that have been approved, such as the Ciudad de Victoria in Bulacan, Bravo Golf Resort in Dumaguete, Hijo Plantation in Davao, Queen’s Castle in Cebu and Resorts World in Parañaque.

(MILF) who were supported by elements of the Army’s 37th Infantry Battalion encountered Maute members at the Mount Cararao complex within the triboundary of Buldon and Barira in Maguindanao and Butig in Lanao del Sur. The Maute fighters led by two of their leaders, Omar and Abdullah Maute, were withdrawing from Butig, which they have occupied earlier, as government troops pursued them. The municipalities of Buldon and Barira were considered traditional strongholds of the MILF, which has signed a preliminary peace agreement with the previous administration, and which the Duterte administration wanted to make permanent by working on a final agreement. The involvement of the MILF in the antiterrorism campaign, finally, has been courted by the Duterte administration, believing that as a peace ally, the MILF has to do its share or even perform its task at the other end of the peace table. The tapping of the MILF’s help,

at least in the case of the Maute, which could translate to the denial of a sanctuary for the Lanao-based terrorist group and would therefore constrict its movement, was a new tack for the administration. The government was also working for the same arrangement with the Moro National Liberation Front in the case of the ASG in Sulu and Basilan.

Surrender or die

Dropping his antidrugs slogan, Duterte gave the fleeing Maute Group the only choice of yielding to the government or perish. The Commander in Chief enumerated the options as he dismissed the group’s quid pro quo call of a stop to the military’s pursuit operation in exchange for the Maute to stop its attacks. Duterte said there would be no let up in the campaign against Maute and even with the ASG, an operation that failed previous military commanders, including Visaya, but which will test the mettle of Año once more.

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Saturday, December 17, 2016

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Japan moves to allow casino gambling at integrated resorts

apan’s parliament approved on Thursday a law on “integrated resorts” that is the first major hurdle in allowing casinos to set up shop in the wealthy nation.

Lawmakers stand to approve a law on “integrated resorts” at the parliament’s lower house in Tokyo early Thursday. Japan’s parliament approved the law that is the first major hurdle in allowing casinos to set up shop in the wealthy nation. AP

Supporters of the casino legislation say it would enhance Japan’s allure as a tourism destination and draw in wealthier travelers. Big players in the industry welcomed the news, with Wynn Resorts saying it was “extremely pleased” by its passage. Opponents object to an expansion of legalized gambling, saying it will fuel organized crime and encourage gambling addiction. Surveys have shown a majority of Japanese opposes the plan. Casinos are unlikely to start operating in Japan until 2021 or beyond, after the Tokyo 2020 Olympic Games. The new legislation would authorize the drafting of regulations for details such as the number and location of casinos, entry restrictions for Japanese and tax rates, which are expected to take up to a year to gain approval. The approval of the final version of the legislation came in the wee hours on Thursday, after a failed attempt by opposition lawmakers to pass a no-confidence motion against its top supporter, Prime Minister Shinzo Abe. Abe has sought passage of the long-delayed legislation for years, over the objections of

5M The estimated number of Japanese who are addicted to gambling, according to a 2014 study

many in his own ruling Liberal Democratic Party. Tokyo, Osaka and Yokohama are among the cities said to be planning to seek casino licenses. Casino operators view Japan as a lucrative “final frontier.” In a report this month, analysts at investment bank CLSA estimated the potential market at $30 billion a year in gross revenue. “This is a landmark occasion and should be a shot in the arm, as it relates to investor sentiment in all gaming names that could be players in Japan,” Grant Govertsen, a Macau-based analyst at investment firm Union Gaming, said in a commentary. CLSA’s forecast is based on

revenues from Japan’s existing forms of gambling, which include lotteries, pachinko—a kind of pin-ball machine—and wagering on horse, auto, bicycle and power boat racing, which combined rake in more than $30 billion. Billionaire US casino moguls such as Sheldon Adelson, head of Las Vegas Sands Corp., and Steve Wynn of Wynn Resorts, or their representatives have often visited Japan to lobby for legalization. The American Gaming Association, a trade group representing the $240-billion US casino industry, said it had been working to inform Japanese lawmakers about various issues. Fac i ng dow n f ierce objections from opposition lawmakers, Abe argued that gambling would amount to only a small fraction of the total business of the hoped-for integrated resorts, which combine casinos with hotels, convention space, theme parks and shopping malls. “It’s not like the whole city will be taken over by casinos,” Abe said, in response to sharp jibes from Renho, an opposition leader. “These facilities will attract investment and do much to help create jobs. Japan could become the world ’s second-largest gambling market behind No. 1 Macau, Govertsen said. “Quite simply, it represents the next and perhaps only other large opportunity to develop large-scale integrated resorts in Asia for a lot of these companies,” Govertsen said. “Some of these companies, their revenues and cash flow are so large today that it would take an opportunity like Japan to move the needle for them.” Adelson told analysts in 2014 that his company was “willing to commit substantial capital investment to develop large-scale, truly iconic integrated resorts” if Japan legalizes casinos. “The reason everyone’s spending the time on this is that the potential is absolutely enormous,” James Murren, chairman of Las Vegas-based MGM Resorts International, said in a recent conference call with analysts. Japan is taking a gamble as the market cools elsewhere. A sweeping antigraft campaign by Chinese President Xi Jinping has crimped lavish spending by high-rollers from mainland China, causing gambling revenue in Macau, which provides the bulk of profits for companies like Wynn and Sands, to fall for 26 straight months until August. Macau raked in about $29 billion in casino revenue last year, about five times more than the Las Vegas strip, but down about a third from the year before. Japan’s casinos are expected to follow Singapore’s model in some areas, perhaps charging an entry fee to local residents. Some other Asian nations with legalized gambling, such as Vietnam and Malaysia, have tighter restrictions on their own citizens visiting casinos. Other places like the Philippines and Macau have no restrictions. Public opposition to the casinos is mainly based on concerns over gambling addiction. In a 2014 study, researchers w ith Japan’s health ministry found that nearly 5 million people, or 5 percent of the adult population, were thought to be addicted to gambling. That’s far higher than the 1 percent rate found in many other countries, said the researchers, who said pachinko was the main problem. AP

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‘UNACCEPTABLE LEVEL’ The Fifa president is already trying to please clubs with expansion options—including 16 groups of three teams— that retain the current maximum of seven World Cup games per team.

Jenel has eyes fixed on Conor

ILIPINO fighter Jenel Lausa has one dream match in mind. And that is to square off with Ultimate Fighting Championship (UFC) star Conor McGregor. Lausa, who hurdled his first tough test by making mincemeat of Chinese Yao Zhikui for a unanimousdecision victory late last month, viciously pointed reigning lightweight champion McGregor as his target for inside the octagon. “We are both strikers, so definitely it would be an interesting fight,” said Lausa, a former Philippine Boxing Federation super-bantamweight king before trying his luck in the UFC. But Lausa’s dream could turn into a nightmare, unless he prepares real hard for a fight with McGregor. McGregor has an obvious advantage in height, reach and weight, not to mention reports that he would momentarily shift to boxing for a multimillion fight with retired but unbeaten Floyd Mayweather Jr. The brandish fighter from Ireland, 4 inches taller than the 5-foot-5 Lausa, recently got his boxing license, which created a wild spur that the blockbuster bout between the two biggest faces of mixed martial arts and boxing scene may come to life. And Lausa, 28, knows that a clash with McGregor is far from reality. He opts to make his own name to be a successful practitioner. “If he goes down in weight, even at 135 lbs, I want to have a fight with him,” said Lausa, referring to the Irishman who had an impressive debut in the 155 lbs territory against Eddie Alvarez last month. “I’ll try my best and give 100 percent every time I fight. Winning is important to me, and I’m carrying the pride of our country and my family,” added the Iloilo native, who holds a record of seven wins and two losses. Ramon Rafael Bonilla

By Graham Dunbar

The Associated Press

ENEVA—Fifa has found a difficult opponent to President Gianni Infantino’s plan to expand the World Cup to 48 teams. A group of 220 of Europe’s top clubs called on Infantino on Thursday not to increase the tournament from its 32-team format. The European Club Association said the number of games played each season “has already reached an unacceptable level.” “In the interest of the fans and the players, we urge Fifa not to increase the number of World Cup participants,” ECA chairman Karl-Heinz Rummenigge said. Rummenigge wrote to Infantino ahead of a possible Jan. 10 decision on expansion by the Infantino-chaired Fifa Council. Infantino wants 48 teams at the 2026 World Cup, adding 368 players in the 16 extra squads who would be committed to national team duty for at least one month. The Fifa president is already trying to please clubs with expansion options—including 16 groups of three teams—that retain the current maximum of seven World Cup games per team. A bigger and more lucrative World Cup would help fulfill Infantino’s election promises to Fifa’s 211 member-federations. He campaigned on adding eight teams to make a 40-team tournament and more than doubling development grants to $5 million for members from each World Cup. Still, Rummenigge, who Fifa appointed deputy chairman of its new football stakeholders committee in May, urged Infantino to put football first. “Politics and commerce should not be the exclusive priority in football,” said Rummenigge, the Bayern Munich chairman. European clubs are likely to be the employers of the majority of players at the 2026 World Cup. The ECA’s research before the 2014 World Cup said European clubs employed more than 76 percent of players picked to go to Brazil. Only 13 of the 32 teams were European. Bayern and Manchester United topped a table of clubs providing players to the tournament with 14 players each in Brazil. The Rummenigge-led ECA has been a tough negotiator with Fifa since it was created in 2008, driving talks to win a share of World Cup revenues with an insurance program for injured players and a cash share through a daily rate paid for each player’s participation. Fifa paid into a $40-million fund to compensate clubs whose players took part in the 2010 World Cup in South Africa. That rose to $70 million in Brazil and will be $209 million for each of the next two World Cups, in 2018 in Russia and 2022 in Qatar. The 2026 World Cup, potentially to be hosted across North America, is the first opportunity Fifa and Infantino have to increase the tournament’s size. More teams and bigger broadcasting revenues would inevitably lead to clubs calling for an increased compensation fund. Qatar, meanwhile, announced recently it is introducing long-expected reforms to policies governing its vast foreign-labor force, though the changes still require workers to seek clearance from their bosses before leaving the country. The new policies follow years of intense criticism from labor and human-rights activists over working conditions in Qatar. The natural gas-rich country is in the midst of a torrid

BEERMEN VS NLEX D

EFENDING champion San Miguel Beer seeks the solo leadership as it battles struggling NLEX, as the 2017 Philippine Basketball Association (PBA) Philippine Cup travels to Cagayan de Oro City on Saturday. The Beermen try to stretch their winning streak to three in their 5 p.m. encounter against the Road Warriors, who dropped their last three matches after winning their opening assignment against Alaska, 99-97, in overtime. Head Coach Leo Austria’s Beermen are coming off a shaky 94-91 win over lowly Mahindra behind the 28-point performance of reigning Most Valuable Player June Mar Fajardo. “That game was a good lesson for us. Everybody is really competitive in this league,” said Austria, who also drew 18 points from Arwind Santos against the Floodbuster. “We cannot afford to have a game like that, so complacent. We really struggled in that game,” he added. The Beermen are currently in a three-way logjam for the top spot with GlobalPort and Rain or Shine. Austria knows he needs consistency from his second

unit to ease the burden from his starters. They will be facing an off-form NLEX quintet of new coach Yeng Guiao. The Road Warriors are licking an 85-96 loss to Blackwater, their third straight in the tournament. Veteran center Asi Taulava and Garvo Lanete sat out the match against the Elite because of injuries, but they are expected to be back on Saturday. Carlo Lastimosa tallied a team-high 23 points in that loss but was ejected after incurring two technical fouls. Joel Orellana

SAN MIGUEL Beer big man June Mar Fajardo barrels his way past Mahindra’s Philip Paniamogan.

building boom tied to its hosting of the 2022 World Cup. Critics say Qatar’s long-standing kafala sponsorship system binding workers to their employer leaves migrants open to abuse, and in some cases can amount to forced labor. Qatar touted the reforms as abolishing the kafala system altogether. Rights groups say the changes fall far short of what is needed to protect the armies of mostly Asian lowwage workers transforming the tiny country. A statement released by the Ministry of Administrative Development, Labor and Social Affairs said the changes are intended to ensure “greater flexibility, freedom and protection” to the more than 2.1 million workers in Qatar. The minister responsible for labor, Issa bin Saad al-Jafali al-Nuaimi, said Qatar welcomes constructive criticism and he urged outsiders to give the law time to take root before drawing any conclusions. He said the ministry is boosting its monitoring efforts and hiring more labor inspectors to enforce compliance. “We are doing this because we believe it is the right thing to do and because it provides tangible new benefits to expatriate workers,” al-Nuaimi said. Although the statement suggested the policies take effect on Monday, the government subsequently confirmed they would only become law on Tuesday—a year after the ruling hereditary emir signed off on the change. Under the new law, workers will generally be free to leave Qatar so long as they inform their employer first. Employees whose bosses refuse can appeal to a government committee that must address requests within three days. Workers who have unsettled debts—potentially anyone who has taken out a local credit card, mortgage, or car or personal loan—or those wanted as part of a criminal case can be forced to stay. The law allows workers to change jobs, but only after they complete an existing fixed-term contract or have worked five years on an open-ended one. Rights activists that have examined the reforms say they continue to leave workers ripe for exploitation by unscrupulous employers. “This new law may get rid of the word ‘sponsorship’ but it leaves the same basic system intact,” said James Lynch, Amnesty International deputy director for global issues.

EUROPEAN clubs call on Fifa and its President Gianni Infantino not to expand 32-team World Cup. AP

BUBBA WATSON to use Volvik golf ball.

COLOR HIM PINK

EOUL—Bubba Watson might be adding a pink golf ball to go with his pink driver—and a green ball for the Masters. The JoongAng Daily in South Korea is reporting that Watson has agreed to a deal to use the Volvik golf ball starting next month. The Korean ball manufacturer mainly has been used on the Ladies Professional Golf Association Tour and is best known for golf balls it produces in a variety of colors. And that might be the perfect fit for the two-time Masters champion. Watson for years has used a driver with a pink shaft and pink club head. He also wears different colored golf gloves. Shin Dong-hwan, president of Volvik USA, told the newspaper that Watson suggested using a pink golf ball for the final round of tournaments—and maybe even a green ball at the Masters. Watson’s agent, Jens Beck, called the report “unsubstantiated rumors” and declined further comment. Watson’s deal with Titleist expires at the end of this year. The JoongAng Daily said Volvik planned to announce the deal next week. According to the newspaper, the five-year agreement is worth about $1.2 million a year, plus stock options and a signing bonus. AP

Refs use video replay to award penalty at Club World Cup

UITA, Japan—Referee Viktor Kassai made some soccer history on Wednesday, using video replay to award a penalty kick during the Club World Cup semifinals. Kashima Antlers midfielder Gaku Shibasaki sent in a free kick in the 31st minute, and teammate Daigo Nishi was then fouled inside the box by Atletico Nacional forward Orlando Berrio. After receiving information about a missed incident from video assistant referee Danny Makkelie, Kassai drew an imaginary square with his hands to indicate that he would conduct a review of the footage via a monitor on the sidelines. Kassai then pointed to the penalty spot, ruling from the replay that Nishi was tripped inside the penalty area by Berrio. Shoma Doi took the penalty and scored Kashima’s first goal in the 3-0 win, calmly putting a right-footed shot into the lower left corner of the net. “The communication between the referee and the video assistant referee was clear, the technology worked well, and ultimately the final decision was taken by the referee, which will always be the case since the VARs are only there to support,” Fifa head of refereeing Massimo Busacca said in a statement. Prior to Kassai’s penalty decision, the assistant referee called for the “wait and see” rule with regard to a player possibly being offside on the play. Fifa said the player was cleared because he was “unable to challenge the opponent for the ball.” The replay system allows referees to halt games to review footage of “game-changing decisions.” They can also rely on information being fed by video assistant referees (VARs) watching broadcast feeds away from the field. The South American champions dominated the first half but the momentum shifted to Kashima with the history-making call. Live tests are set to be expanded globally in 2017 with a decision anticipated by the following year on VARs becoming a permanent feature. Fifa President Gianni Infantino, who has observed recent off-line trials with VARs at Italy games, wants video replays in use at the 2018 World Cup in Russia. The system was introduced last week at the start of the Club World Cup but wasn’t used until Wednesday’s game. In the final on Sunday, Kashima will play either Real Madrid or Club America. AP

A6 Saturday, December 17, 2016

Best of the Best

The 4th green at Wack Wack Golf and Country Club’s East Course

Ranking the country’s By Mike Besa

Part One

t’s the end of the year and as is our custom, it’s time to rank the courses that represent the very best the Philippines has to offer. It’s a tough task, one made more difficult by the quality of the courses on this list. It’s a little like choosing which of your children is your favorite. It’s quite the task. But there’s a method that helps make this job easier. As the former editor-in-chief of Golf Digest Philippines, it was one of my responsibilities to put together the course rankings for the country. We relied on a survey of low handicap golfers that rated the courses based on seven criteria: n Shot Values—How well do the holes pose a variety of risks and rewards and equally test length, accuracy and finesse? n Resistance to Scoring—How difficult, while still being fair, is the course for a scratch player from the back tees? n Design Variety—How varied are the holes in differing lengths, configurations, hazard placements, green shapes and green contours? n Memorability—How well do the design features provide individuality to each hole yet a collective continuity to the entire 18? n Aesthetics—How well do the scenic values of the course add to the pleasure of a round? n Conditioning—How firm, fast and rolling were the fairways, and how firm yet receptive were the greens on the day you played the course? n Ambiance—How well does the overall feel and atmosphere of the course reflect or uphold the traditional values of the game? They are good standards and consider the golf course only; the

clubhouse, food and beverage, standard of service and other niceties are not considered here. This ranking evaluates the golf course only. I will say that this system tends to favor the more recent, more modern courses that used newer construction methods but we attempt to balance things out to make the older courses competitive here. In the end, things balance out and the most deserving golf course wins. Let’s start with who isn’t in the running this year. Sta. Elena Golf and Country Club is a perennial favorite but since the club is in the process of renovating the first hole, we’ve excluded it for this year. Sherwood Hills Golf Club is another superb track and like Sta. Elena is a past winner of Golf Digest’s architectural award but the condition of their greens this year has not quite been up to their usual standards so as good a golf course as it is, it isn’t in the running this year. The Country Club in Calamba Laguna has been newly renovated but has not been seen or played by any of the golfers involved in these rankings but if what we’ve heard about it is true, it should be a very strong contender for next year. It’s neighbor, Canlubang Golf and Country Club is home to two of the most iconic golf courses in the country and easily two of the most beautiful. But it falls short in the conditioning of the two courses. Not that they’re in bad shape, but it’s just that the final four are so much better in this regard. We’ve narrowed things down to the top four courses in the land and will list them here in alphabetical order.

Anvaya Cove Golf and Sports Club

The 7030-yard course, designed by Golfplan partner Kevin Ramsey, opened for play on Dec. 7 to the universal delight to all that have played it. Perched on the hills of Morong, Bataan just outside Subic Bay, the layout meanders in and around the hills about the West Philippine Sea, through verdant

rain forests and the surf below. It is a stunning piece of property that easily makes the final four. Although not long, the course has a bit of everything. It is beautiful and challenging all at once. You will be asked to employ every shot at your disposal and manage yourself around the extreme variety the course provides. It isn’t overly difficult or penal but it’s no pushover either. The greens are planted with mini verde; a micro-Bermuda hybrid that does well in the Philippine setting. They are fast and roll true and are a pleasure to play.

Hacienda Luisita Golf Club

Luisita is a gem, it is the only design of the great Robert Trent Jones, Sr in the whole of Asia. Built by the Cojuanco family in the 1960s, Luisita was the first golf course to use modern turf grasses on its fairways and greens with Tifton 419 on the fairways and Tifdwarf on the greens. It is tough but fair. It’s both beauty and beast to the golfer. It requires the golfer to have both draw and fade in his arsenal to score well. Under the stewardship of new owner Martin Lorenzo, Luisita Golf and Country Club has blossomed. Under his management, the club has removed a lot of trees that obscured views of the abundant water features and the golf course is once again in superb condition. It is interesting to note that the greens have never been redone; a testament to the care that they’ve received over the years. The club has lengthened the golf course to keep it current and maintain its shot values with modern equipment. It’s a track that’s withstood the test of time and continues to impress.

Manila Southwoods Golf and Country Club’s Masters Course

One of three signature courses of the Golden Bear, Jack Nicklaus, in

the country, Manila Southwoods’ Masters Course has proven its worth against the best golfers in the country and the world. It has hosted the Eisenhower Cup (the world amateur golf championship), the Philippine Open on a number of occasions and is the home of the Resorts World Manila Masters, a leg of the Asian Tour and the richest professional tournament in Philippine golf. It is over 7400-yards from the tips and has the variety and length to challenge the very best the game has to offer. It is a true championship test and deserves its place as one of the best golf courses in the country. It was our pick for the best modern golf course in the country last year.

Wack Wack Golf and Country Club’s East Course

Wack Wack Golf Club’s East Course is the country’s oldest and most storied championship golf course. It is a course that will challenge, reward and frustrate golfers of all abilities. It is classic construction for courses of the Philippines; Carabao grass with small, elevated, often severely sloped Bermuda greens. This is a course that has hosted the likes of Jackie Burke, Lloyd Mangrum, Billy Casper, Peter Thomson, Norman Von Nida, Slammin’ Sam Snead, Kel Nagle, Bruce Crampton, Ed “Porky” Oliver and the 1997 World Cup of Golf which was attended by the likes of Gary Player, Hugh Biocchi, Nick Faldo, Ian Woosnam, Ignacio Garrido and Seve Ballesteros. It is the home of the Philippine Open and one of the toughest golf courses in the country. The zoysia greens are small targets that roll fast and true. They are grainy but that just adds to the challenge. The East Course is the current holder of Golf Digest’s Architectural Award as the best golf course in the country and easily deserves to be on this list. So, which of the four gets the nod as the best in the country? The answer will be forthcoming in our next issue so don’t miss it.

The Golf Geek

TaylorMad

How many wedges should you have in your bag?

ext to the putter, the wedge is the club that most amateur golfers will use the most in a round of golf. Since most amateurs hit precious few greens in regulation, they will wind up using a wedge of some sort or other each time they miss a green. With room for just fourteen clubs in the bag, it can be tough deciding which ones to put in, and which ones to leave out. This will probably come down to a choice between losing a wedge and adding a fairway wood to improve your chances of hitting more long par 4s and par 5s, or losing a fairway wood and adding a wedge, so you don’t have to hit as many awkward half and three-quarter shots from inside 120 yards. Your iron set already comes with a pitching wedge with a loft of 44 to 47 degrees. The most common method to determine which wedges you should be carrying is to figure out the loft of your pitching wedge and choose wedges with gaps of 4-5 degrees in between to fill out your bag. But there is another factor that you need to consider and that is the design and shape of the sole of your wedges. This is vital because the sole design determines how the wedge interacts with the turf. Using the wrong wedge from a tight lie will often result on the ball being bladed across the green just as the wrong wedge played from a wet, spongy lie will result in chunking the ball. Yet another consideration is bounce. Bounce is defined as the angle created by the ground and the sole of the bottom of the club from the trailing edge to the leading edge. You’ll notice that if you place a wedge down in the playing position on top of a table that

the leading edge is often a small distance above the table top. The higher it is off the surface, the more bounce the wedge has and the closer it is to the table then the wedge has a low amount of bounce. On tight lies, you need a wedge with less bounce; typically, 10-degrees or less. On soft surfaces, you need something on the order of 12-14 degrees to be effective. If you come into the ball at a steep angle and take deep divots, then you need wedges with more bounce. Conversely, if you have a shallow angle of attack and like to just brush the grass with the sole of the wedge, you can do with less bounce. If you like to play short game shots with the clubface open, you’ll need a wedge with some material ground out of the heel of the clubhead. This will allow you to open the clubface without raising the leading edge of the clubface too much. If you have difficulty hitting shots with anything less than a full swing, it will be advantageous to carry an extra wedge you can hit the required distance. If this describes your wedge play, the best way to achieve your ideal gaps between clubs is to get even loft gaps. In this four-wedge system, starting with your 46-degree pitching wedge, you can then add a gap wedge at 50-degrees, a sand wedge at 54-degrees and a lob wedge at 58-degrees, which should equate to 8-12 yard gaps for the average golfer. Arguably the most common choice for club golfers, three wedges leaves you with room for two fairway woods, which is often more important for players who lack the distance tour professionals can muster. If you do choose a three-wedge system, we recommend

something along the lines of a pitching wedge at 46-degrees, a gap wedge at 52-degrees, and a lob wedge at 58-degrees, which gives you even 6-degree gaps between clubs, which should give you all the options you need. It might sound complicated but understanding what your preferences and tendencies are and what kind of surfaces you play on determines the number and types of wedges you need to have in your bag. Get this right and you’re going to save a lot of strokes during your round. Mike Besa

t’s tough to follow one successful product with another. How many times have you seen a company fall on its face trying to improve on an already successful product? Often, the new product winds up being worse than its predecessor. This is not the case with TaylorMade’s new M1 and M2 product lines. Not one to shirk from a challenge, TaylorMade has taken their hugely successful M1 and M2 drivers and made them better. They were already the leaders in their respective categories but TM found a way to eke

o d T e m n T a d i f

www.pinoygolfer.com

Saturday, December 17, 2016 A7

Golf tourism gets a shot in the arm

The 17th is the most infamous hole at Luisita Golf and Country Club. Mike Besa

s top golf courses Masters 10 of Manila Southwoods. Marty Ilagan

The clubhouse at Anvaya Cove.

PHOTO COURTESY of Anvaya Golf Club

ade Ups the Ante

out even more performance from the most popular drivers in the last two years. TM pushed the boundaries of golf club engineering with the next generation of M metalwoods. In 2017, highlighted by the new M1 & M2 drivers, fairways and hybrids, TaylorMade is elevating performance once again by focusing on materials and geometry designed to deliver improved launch conditions, increased personalization and more forgiveness for every golfer, answering the challenge to

once again design the best-performing drivers in company history. With the M1, the challenge was how to free up even more discretionary weight that the engineers could repurpose to further increase the most dominant driver on Tour’s performance. By using a new, lower density Titanium alloy called 9-1-1 and an added carbon toe panel that accounts for a total of 43% more Carbon composite than its predecessor, the new M1 460’s mass properties have been optimized to deliver optimal launch

Image supplied by TaylorMade

conditions, more personalization and increased forgiveness. The iconic two-tone crown of the M1 driver incorporates a proprietary 6-layer Carbon composite panel that is precision-fit to the skeletal titanium body —a breakthrough engineering technique that results in craftsmanship of the highest quality with manufacturing repeatability for consistent, aggressive looks and undeniable performance. The new Carbon composite crown in the new M1 saves more weight because the composite is

10% thinner, the bonding ledge is 18% shorter and the adhesive is half the thickness than the original M1. Furthermore, the new M1 also has a composite sole panel which utilizes the same thinner composite, shorter ledge and thinner adhesive approach as the crown. The combined weight savings of the new M1 composite crown and sole panel construction is 8g lighter than an equivalent titanium construction. This, combined with the 3g savings from the 9-1-1 lower density titanium results in a total of 11g savings compared to a conventional titanium head such as that found on the R15 driver and more than twice the weight savings than the first generation M1. In saving this critical weight, engineers designed a new, more aerodynamic T-Track system that houses 27g of moveable weight (2g more than the first generation M1), 12g of which resides in a re-designed back track that has been lengthened by 12.7 mm (19% longer) giving the golfer more high-to-low adjustability (64% more CG movement). The 15g located in the front track allows for the weight to be distributed from heel to toe (7% more than its predecessor) and the adjustment to their draw or fade bias by up to 25 yards. Engineers used the extra discretionary weight to make the footprint of the clubhead larger (4%) leading to a higher moment of inertia for more forgiveness. The new M1’s CG is lower than that of its

t is amazing to me that golf courses in the Philippines remain largely unknown to the rest of the world. It’s true. It doesn’t matter that we’ve produced some of the best golfers the region has ever seen. Larry Montes, Celestino Tugot, Golem Silverio, Frankie Miñoza...they all had to develop their skills on some pretty tough tracks, didn’t’ they? So why don’t more people know about our golf courses? Why isn’t the Philippines even on the golf tourism map of Asia? What the heck is going on? Apart from the fledgling efforts to promote golf to the rest of the world under the administration of President Fidel V. Ramos, golf tourism has been completely ignored by the Philippine government. This is a tragedy of monumental proportions. Firstly, because the golf courses in the Philippines can compare to any in the region. In fact, I’ll go out on a limb and say that some of the best golf in Asia is right here in our own backyard. I’ve had the privilege of playing some beautiful layouts in Thailand and Malaysia and I can say unequivocally that our best golf courses are on par with any that you’d care to mention and are probably better than most. Next, and more importantly, the world golf tourism industry generates two-hundred-fifty billion Dollars in revenue every year; a number which increases with each year. How much of that do you think we see? The answer? Next to nothing. Apart from the now shrinking number of Korean tourists, we get absolutely no business from the major markets. Heck, we barely make anything off the Koreans anyway. They way they’ve structured their business, Korean nationals keep most of the income generated by their countrymen’s visits to the Philippines. Sure, their business keeps a lot of our local golf courses afloat but they’ve developed a network of their own hotels and restaurants and so keep most of the income in their pockets, leaving little for our countrymen and local businesses. It is therefore a Godsend to the industry that the Business Mirror’s own Frederick “Ricky” Alegre was recently appointed as Assistant Secretary of Tourism serving under Secretary Wanda Teo. Ricky is a passionate golfer whose love for the game is superseded only by the love of his family and country. Ricky was quick to recognize the opportunity for growth in this area of the tourism industry and was quick to act on it. His first order of business was to convene the Philippine Golf Tourism Council which is to consist of representatives from tour operators, the media, the golf courses, the golf equipment suppliers, the golf managers and the private sector. The purpose of the Council is to create the necessary infrastructure to ensure Philippine golf tourism flourishes and survives beyond the term of the Duterte administration. These efforts are in their infancy, to be sure. The initial meetings are still works in progress. But the enthusiasm of all the stake holders is high that this administration cares enough about the industry to support these efforts. I was fortunate to be called on by the assistant secretary to take part in convening the council and I am looking forward to serving under him. His goals and passion for the industry are mine, as well. The prospects are bright and we’re all excited to see what the future will bring. Watch this space. Mike Besa

predecessor which results in a CG projection that is even closer to the center of the face for a hotter trajectory and more ball speed protection at all impact locations. TaylorMade engineers relied on proven internal acoustic management techniques and modified them as necessary to meet the demands of new materials and shaping. The result: the re-definition of best-in-class sound to control vibration and pitch at impact. Combined, TaylorMade has delivered maximum distance and forgiveness through multimaterial use and complete personalization. New to the next-generation of M drivers is a 440cc model, which utilizes a slightly smaller head, deeper face and 30g of moveable weight, working in unison with all the same technologies as its larger 460cc counterpart. The M2 uses a new multi-material construction and advanced shaping by way of a breakthrough design technique called ‘Geocoustic’. Along with the new Geocoustic design, the M2 driver houses a newlydesigned Speed Pocket that is three times more flexible than its predecessor to improve on the already impressive performance of its predecessor. The new Geocoustic feature combines geometry and acoustical engineering to unlock more forgiveness and best-in-class sound. The new breakthrough in geometry is the sunken sole portion of the driver. This section utilizes an ultra-light, thick-thin 9-1-1 Titanium, a design that enabled engineers to

free up volume while not raising the center of gravity. The Geocoustic feature makes the structure stiffer and easier to manage vibrations caused at impact. With this added stiffness, minimal sound ribs were needed to create best-in-class sound and feel of the M2. The freed-up volume allowed engineers to make the driver’s head larger, both the visible footprint as well as the club’s face (7%), ultimately making the driver not only appear more visibly forgiving, but feel more forgiving at the same time. The new lower density 9-1-1 Titanium body, 6-layer carbon composite crown and minimal sound ribs allowed for 25g of discretionary mass to be relocated low and back in the sole of the club. Together, these applications combine to increase the overall inertia of the M2 driver over the 5,000 g-cm2 barrier without sacrificing low CG, hot trajectory or aerodynamic performance. To compliment the new drivers, two distinct families of fairway metals, hybrids and irons were also introduced, all of which use the same technologies as both the M1 and M2 drivers. This puts TaylorMade at the forefront of new golf clubs for 2017. They look set to continue the dominance started by the original M1 and M2 drivers. If you’ve been sitting on the sidelines waiting for the right time to join the M bandwagon, 2017 is the year to do so.

Mike Besa

OurTime

A8 Saturday, December 17, 2016 • Editor: Efleda P. Campos

BusinessMirror

Romarico Vitug: A life-fulfilling century journey

news@businessmirror.com.ph

DU30 ready to pardon old, ailing political prisoners before Christmas Day

By Rizal Raoul Reyes

@brownindio Contributor Photos by Nonoy Lacza

n December 8 Romarico G. Vitug celebrated a magnificent milestone in his life as he marked his 100th birthday. Aside from being a landmark event, it also enabled the second, third and even fourth generation of the family to learn and be inspired by the accomplishments of their patron.

As far as Romarico is concerned, one of his nephews noted the Lord showered a lot of blessings to the man known as “Yaya” to his younger siblings. The “Yaya” tag did not come from his being his siblings’ nanny, but was coined by younger sister, the late Justina Vitug-Montemayor, who, as a toddler, was too young to properly pronounce the honorific “Kuya” or “Coya” to her older brother. Aside from being a member of the exclusive centenarian club today, Romarico became a successful businessman in his younger years. A descendant of a Chinese immigrant who settled and flourished in Lubao, Pampanga after adapting the surname Vitug in the late1800s, Romarico established and managed the predecessor of Foremost Farms of Filipino-Chinese businessman Lucio Tan Sr. in Antipolo. He also operated a Manila-based travel agency, a number of logging concessions here and there, and a law firm. He had enough to invest his earnings in prime real estate, stocks and an array of other blue-chip investments. Violeta Vitug-Catacutan, the eldest daughter of Romarico’s youngest brother, the late Jesus G. Vitug, said her uncle was generous to his nephews and nieces. He’s a modest and frugal gentleman who, despite his fortune, was always watchful of his spending. But whenever someone in the family needs moral and financial assistance, Romarico has been there to provide help. “He was the patriarch of the family, and a true gentleman of the old school in his ways and manners. Gifted with good looks, he’s prim

The good life is one inspired by love and guided by knowledge.” —Bertrand Russell and proper, stands tall and proud in any crowd with his own brand of dry humor,” she said. Romarico served as an inspiration to the Garcia-Vitug clan. He was raised in a middle-class family and as a young student, he strove consistently hard in his studies. After graduating class valedictorian from a public school in Lubao, Pampanga, the Lubao Elementary School, the same school where former President Diosdado P. Macapagal studied, Romarico pursued his studies in Manila to become a certified public accountant. He later added a law degree and passed the Bar the same year he graduated from the University of Santo Tomas law school. There was no stopping Romarico, or Ricong to his town mates, to become one of the most successful and affluent citizens of Lubao, Pampanga during his salad days. Aside from his God-given knowledge, charm and an imposing presence, perhaps good karma played a major role in his successes in life. According to a family story, Violeta learned from elder members of the Garcia-Vitug family that Romarico made a vow to his dying mother, the late Antonia Garcia-Vitug, he would take care of the family, especially the

youngest in the brood, the late Jesus G. Vitug, Violeta’s father. Romarico was generous in sharing his wisdom to the younger Vitugs. “He told us to be like a bamboo tree, bending wherever the wind blows, when we grow up so we can be flexible in facing challenges in life. He would also call our attention when he thinks we are off the track in our life direction,” Violeta recalled. “He pursued bigger dreams by studying hard and working diligently to reach the top.” As the “Big Brother,” Violeta recalls Romarico had a strong bond with Jesus, nicknamed Susing or Song. Being the ever-responsible brother, he made sure all siblings are well taken care of in their financial and personal needs. “Being the eldest and the wealthiest in the Vitug clan, he was the goto-guy in the family,” Violeta said. Romarico ensured the family ties remain strong. He loved to receive visitors especially during special occasions like Christmas and New Year holidays when nephews and nieces received crisp P5 paper bills from him, a fortune for young lads and lasses during that time. He also gives regular treats to his siblings either at his home in Bel-Air Village,

Manila, D.O.L.E. fund livelihood programs of senior-citizen organizations, groups

ANILA City Hall and the Department of Labor and Employment (DOLE) have partnered in extending financial grants to local senior citizens’ organizations that could use the fund for their livelihood program. Manila Mayor Joseph E. Estrada, on behalf of DOLE-National Capital Region (NCR), on Friday presented a P210,000 check to Necita Salivid, president of the Nagkakaisang Senior Citizens ng Maynila (NSCM), the first beneficiary of the joint welfare program of DOLE and the city government. “This financial assistance we’re giving you, we hope will help fund your organization’s livelihood program so that you will continue to earn money for your daily needs,” Estrada told 115 of the 300 members of NSCM who attended the ceremony

at City Hall. “This is just the beginning. There will be more benefits to make life better for our senior citizens. We will also provide grants to other senior citizens’ groups in other districts.” Jeffrey Manansala of the Office of the Senior Citizens Affairs (OSCA) said the NSCM, based in District 6, will use the P210,000 grant as additional capital for their bead-making business. DOLE-NCR Director Jhonson Canete Jr. said the department’s Assisted Livelihood Program helps senior citizen-beneficiaries to be productive, self-reliant and self-developed; fosters their capacity to attain a more meaningful, productive and satisfying life; and promotes entrepreneurship through small income-generating projects despite their age. Senior citizens in Manila, numbering about

130,000, are entitled to free medical checkups, hospitalization, medicines and other healthcare services in the city’s six public hospitals and 59 community health centers. They also receive a P500 cash gift on their birthdays. The city government has also started giving out P6,000 in social pensions annually to indigent senior citizens. Centenarians, or those who are 100 years old and older are given a special cash gift of P100,000. Since April 17 centenarians have received P100,000 each. Every centenarian also receives P10,000 each during the yearly celebration of Araw ng Maynila on June 24. Manila’s elderly can also watch movies for free on Mondays, Tuesdays and Thursdays in any movie house in the city. PNA

Makati City or in some of the fanciest restaurants in the city. Len, Tel and Eugene Jacinto, children of Romarico’s sister Cristeta Vitug- Jacinto, flew all the way from the United States to greet the celebrator and join the dinner celebration. Daughter Charina Vitug-Villegas, a doctor, said she is very proud of her father’s achievement. “I am very, very happy for my father because very few people are given the privilege to achieve his numerous feats not only in his career, but in his blessed and diamond-studded life as a whole.” Asked about the formula for her father’s longevity, Charina noted her father’s being a stickler to clean and proper living as a major factor. Romarico does not smoke nor drink.“He’s also very religious in his checkup and medicines,” Charina said. Having a sweet tooth, Romarico eats a bar of his favorite dark chocolate daily. “My father does not have diabetes in his DNA. Cholesterol is low although he loves to eat sisig and lechon,” she said. Under Charina’s watchful eyes, Romarico undergoes his laboratory tests every two months. He is still mentally sharp since

he does the computation of taxes of the family members. As a form of mental exercise, he does the crossword puzzle daily of a major broadsheet newspaper and reads the newspapers he subscribes to. Another secret of Romarico is he maintains a cool demeanor even in the most stressful situations. Such an inherently calm and composed demeanor, Violeta noted, may have been his uncle’s “secret” for his long life. Although the Vitugs have been blessed with good fortune, Charina and her brother Paolo have been honed by their father of the values of simple living and hard work. “Our parents are traditional and conservative. They have encouraged us to practice modest means in living,” Charina said. Perhaps, travelling every summer was the only luxury Romarico provided his children. “Having a travel-agency business, we were able to see various places that gave us another form of exposure,” Charina said. Travel was one of Romarico’s passions in life during his younger days as he was one of the few Capampangans in the old days who toured the world. Charina smilingly recalled that her father was the “force” who inspired and guided her to a medical career. “Actually, he played a very large part in my decision to go to medical school. My father told me he could have done better if he became an accountant, a lawyer and a doctor all rolled into one,” she said.

Over 1,000 older citizens gather for 2016 Congress in Antique

AN JOSE De BUENAVISTA, Antique - More than 1,000 senior citizens from the 18 towns of Antique province gathered for their 2016 Congress at the EBJ Gymnasium in the capital town San Jose de Buenavista, on December 13. Dr. Neneth Q. Pador, Iloilo Provincial Social Welfare and Development Officer and the keynote speaker of the affair, said she was mesmerized by the huge number of elderly who showed their vitality and agility as they paraded from the Antique capitol to the EBJ Gymnasium.“Age is just an issue of the mind,” Pador said, adding with the talents showcased by the seniors through dancing, singing and drama, it is a misnomer that “the elderly has nothing to offer anymore.” Pador said older people are inspirations to community building and national development. Thus, they are not supposed to stop learning and contributing for the good of their community.

She also urged the seniors to demand the benefits provided them under Republic Act 9994 to include the 20-percent discount on goods and services and the fast lane when they go buy their grocery for these are their privileges. Meanwhile, Antique Vice Gov. Edgar Denosta said seniors are considered “living heroes of today’s generation.” He said they molded the present-day generation so they also give honor to their province. Denosta said seniors possess wisdom and experience the youth still do not have. Antique board member Fernando Corvera and San Jose de Buenavista town mayor Elmer Untaran also lauded the seniors for their active participation and assured them of support in their programs and activities. The affair was also supported by Gov. Rhodora J. Cadiao who allocated fund for the gathering of the Federation of Senior Citizens Associations of the Philippines, Antique branch. PNA

RESIDENT Duterte said he will release the elderly and ailing political prisoners in the country before Christmas Day.He made this announcement on December 5 before lighting a 12-foot Christmas tree made of 360 pieces of Las Piñas Christmas lanterns at the Malacañang Palace building in a ceremony attended by Miss International 2016 titlist Kylie Versoza. “There is no point of detaining a person who is old and sick. I find it a very awkward feeling. I’m uncomfortable. So all the elderly, ailing, you can go,” the 71-year-old Filipino leader said in his speech. Duterte said qualified detainees for his pardon are those 70 years and older and suffering from incurable diseases, like kidney failure and cancer. “If they are ready to be released and will be accepted by their families, I will release them before Christmas time,” he said. The President failed to give the number of elderly and ailing political prisoners, but reports said there are 25 elderly political detainees and 140 who are sickly. Meanwhile,Duterte said he will also agree to the release of over 130 political prisoners if the Communist Party of the Philippines (CPP) can show a peace agreement signed between the Philippine government and the CPP-National Democratic Front (NDF). “ They’re asking for the release of 130 political prisoners. I said I cannot give you that. I’m sorry, but I have already conceded so much on the side of the government,” the President said, referring to the detained CPP-NDF leaders who were allowed to attend the peace talks in Oslo, Norway. “But if you can show me a document signed by the Republic of the Philippines representatives and the Communists, then I will release the 130 plus more,” he said. “I know the left has a vision for our countr y. I used to cross the ideological border because I was a student once and I saw the iniquity, the sense of uselessness of the Filipinos, and I saw also the other side how it should be in the government,” the President explained. As President, Duterte said he pleads for unity of the country free from communal wars and for a generation of Filipinos who are able, competent, healthy and good. “I plead for peace so that our citizens can move around anytime of the day or night,” the President said. He reiterated his campaign promise to extinguish illegal drugs, corruption and criminality in the country. “Expect to pass to this world but once, therefore, any good that I can do to any fellow creature, let me do it now. Let me not defer or neglect it, for I shall not pass this way again,” Duterte said, quoting from an anonymous writer. The President also promised to work hard to achieve peace with the Moro rebels particularly with Moro Islamic Liberation Front (MILF) and the Moro National Liberation Front (MNLF). “The MILF has shown its sincerity to talk to us about peace. Nur Misuari [of the MNLF] chooses to be different, but he has said he will work with us in government to find peace,” Duterte said. “So I’m happy except for the extremists. Actually, that would really be a danger to our country in the days to come,” he said. PNA

The Millennials BusinessMirror

news.businessmirror@gmail.com

Saturday, December 17, 2016

Young businessman reveals rivers of success bridged by enthusiasm C

By Rizal Raoul Reyes

@brownindio

local business had called Aileen to ask if she would offer them a discount if they purchased thirty of her gift cards. They planned to give the gift cards to attendees at a banking seminar that they were hosting. So, connecting the dots, I realized these people were the attendees from the seminar—and, from the looks of it; they brought a number of their friends with them. Since it was too crowded for me to enjoy my coffee, I went instead into the back office to share a moment of celebration with Aileen. When I found her there, she had an astonished look on her face, startled and dumbfounded, as if the idea had never occurred to her, that the beautiful and appealing gift cards we had launched for her business would change its core economics. There was a period in late-2015, before Christmas, when gift-card sales at Marmalade Kitchen exceeded their organic sales. Like I said, gift cards are not just a pretty gimmick. We’ll always be grateful to Chef Aileen and the staff at Marmalade for being our product incubator.

ARLOS Korten is a confident man. So confident that Korten, a Filipino-American executive from New York, believed he can make a big difference in the thriving digital commerce in the Philippines. Thus, he put up Pasig & Hudson Pvt. Ltd., the parent firm of onlineshopping portal Gifmo. The BusinessMirror sent Korten an e-mail asking about his journey to Philippine business.

BusinessMirror: How did everything start? Carlos Korten: When I decided to

leave my comfortable executive job in New York to start a new company, it was with the idea to bring everything I had learned—over 25 years working in the payments industry— to the Philippines where my mother was born and raised before immigrating to the US as a young woman in the 1970s. The Philippines is blooming. Evidence of growth is everywhere. The Internet Age favors the country, by drawing employers to its enormous, young, hardworking, English-speaking and digitally ready labor force. Well-paying jobs are abundant. Disposable income is on the rise. New products and services are appearing to support a new emerging middle class. But with regard to payments technology, the Philippines is still lagging and catching up: cash dominates the market, the credit-card penetration in the country is very low, consumer engagement with retail banking is poor and fees for domestic remittances are very high. This is a promising market for the type of business my company is chartered to do. So although many of my friends and family were surprised and astonished, in late-2014 I moved from New York to Manila with the idea to launch a business in the Philippines, for the Philippines.

What’s with the company name Pasig & Hudson? Our parent company is called Pasig & Hudson, combining the names of the two rivers that anchor Manila and New York City. We use the rivers as old world analogies for commerce and trade in the digital era. Pasig & Hudson combines decades of practical experience building world-class systems for major banks and credit-card companies around the world with handpicked entrepreneurs from Manila who bring deep local market knowledge of the Philippines. Our charter is to bring world-class payment technology, and tried and true business practices to markets that have been chronically underserved by the major multinationals. The Philippines is our first market.

Why did you decide to focus on gift cards? In the retail sector of the Philippines, a few megaretailers offer modern, reloadable gift cards. Star-

Thomasians to hold gab on journalism

bucks has an incredibly popular and successful gift-card product that is especially strong with young, aspirational Filipinos. But, beyond that, for most businesses in the country, paper gift certificates still remain “state of the art”. When my cofounders and I considered the landscape, we knew right away this is a place where we wanted to compete. We did not invent the private label gift card. That is a tried and true business practice that has withstood the test of time in markets around the world. Our core product is not a fad or a gimmick—gift cards work. They create sales.

How is Gifmo doing these days?

Marmalade Kitchen is a bistro in Bonifacio Global City, owned and run by Chef Aileen Anastacio and our beta partner. In October last year, two months after we went live with her gift-card program, when I saw “the light go on” for Chef Aileen. We laugh about it now but I know Aileen agreed to be our beta partner mostly out of friendship, plus a kind and willing spirit. At the time when she agreed to be our beta partner, there wasn’t a lot of reason to believe that we were going to be a roaring success. My core team consisted of myself, plus two displaced Americans wandering Manila, discovering things, like ampalaya and calamansi, for the first time, and two Manila locals, a family friend who was eager to participate in a start-up, and a gifted creative designer recommended to me. A bag of mixed nuts—this was the early core of Pasig & Hudson, our launch team. I showed up at Aileen’s bistro one afternoon, that day in October, to have a coffee and spend some time with her staff. The restaurant was full, overflowing with people. Over the many months my team had spent at Marmalade Kitchen to launch the beta, I had never seen so many customers there at one time. I made eye contact with one of the servers, who was one of our Gifmo trainees, and gave him a look as if to say, “What is going on here?” The server smiled at me, and rushing to the kitchen to pick up an order, he said over his shoulder, “Sir, the bank gave out the gift cards today.” I knew that a few days earlier a

Today we operate gift cards for dozens of strong brands in Metro Manila: Wildflour Bakery and Café, Yoga Plus, Shi Lin, Brothers Burger and Kuppa Coffee. We are constantly adding more services: a client-branded mobile app for consumers, to extend the gift card into Loyalty Services—the app will especially appeal to millennials who live on their phones. We added third-party distribution agents, to increase offsite sales. We added an affiliate sales distribution network and an e-commerce experience to drive sales. We know we’re on the right track, because our clients are happy. One of our earliest clients recently asked us to add new cards to their portfolio, with higher initial load values, at the request of their customers. So far, Gifmo has been growing quickly just through word-of-mouth. Many of our newest clients are referrals from existing clients, or other friends in the industry who admire our product. There is nothing more demonstrative of support than when a client actively recommends your service to a friend. Some of our new clients spotted one of our cards at a favorite restaurant or coffee shop, and called to ask if we can do a card for them, too. They say it is easy to sell a great product. In May, of the in-person meetings we had with prospective clients to discuss Gifmo, 82 percent resulted in a sale. With that kind of engagement and enthusiasm, we really haven’t had to pursue any elaborate marketing campaigns to promote our business. New business continues to come to us through organic channels and that’s always the best. In Manila, especially, the business community is very tightly knit. Nothing here stays a secret for very long. In our first full year of operation, we have launched 50 customdesigned, premium gift cards on our platform. For Christmas, our cards will be for sale at over 80 retail loca-

press as an engine of democracy. “It will discuss how campus journalists, like mainstream media, can contribute to the national discourse and promote good governance,” a statement by The Varsitarian said. It added that speakers will share their expertise through sessions

in news writing, feature writing, sports writing and photojournalism, among many others. A fee of P1,600 is required for participation. Inquiries on the conference can be coursed through Angela Coloma (0977-6498442), Winona Sadia (0916-7917582) or The Varsitarian

What makes Gifmo a bellwether in gift cards? Most merchants around the world don’t have the resources or payments acumen to launch a gift-card program on their own, because the programs are technically, operationally and fiscally complex. It takes special expertise to operate a modern gift card. Gifmo makes it simple by deploying a world-class gift-card platform and sharing the cost across a large portfolio of clients. We are able to reduce costs to a point where even a small business with a single store can run their own profitable giftcard program. Gifmo combines our proprietary card-processing software, dedicated back-office operations and business consulting services to help businesses in the Philippines launch their own gift card and digital loyalty programs. Gifmo is the invisible infrastructure that powers our clients’ cards. Our goal is quite simple: to drive profitable growth for our clients. We create top-line sales by attracting new customers to our clients’ brand and by bringing their existing customers back for more. Gifmo is designed to be the digital marketing engine that powers businesses all across the Philippines. We will replace all the paper gift certificates where they still exist in the country. We will shift consumer marketing in the Philippines away from paper coupons and printed loyalty punch cards, into mobile phones and the Internet.

How did you launch Gifmo? In May 2015 I made an important phone call to a guy I had worked with at American Express (Amex). Years before, Cory Moreira and I had spent time illuminating together on a project in India for Amex, chartered to find an innovative way to bring digital payments to the rural unbanked population there. The India efforts struggled to

he Varsitarian, the 88-yearold official student publication of the University of Santo Tomas (UST), will hold a three-day conference on new trends and issues in the media landscape. Called “Inkblots”, the conference to be held from December 19 to 21

Gifmo founder Carlos Korten

build momentum. But in the course of the evaluation, Cory and I found that we are very like-minded about technology and innovation. Cory was formerly the chief technology officer of a start-up that Amex had acquired for about $300 million. The system he built for them became the global processing platform for gift cards at Amex. By 2015, he had left Amex to return to the start-up community. Meanwhile, I was in Manila toying with ideas around operating a stored-value, private-label gift-card business. We had both left Amex to find new ways to bring innovation to market, without the overhead of a big corporation. On that phone call last year, I told Cory, “Hey man, want to build a stored-value platform? We’re going to run gift cards in the Philippines.” I pitched Gifmo to him, premised on a Bring-Your-Own-Device model to reduce setup costs, and to power a carefully crafted user experience over a proprietary closed loop. And I stepped him through the four API [application programming interface] services we would need to ship a minimum viable product [MVP]. To which he said: “Sounds exciting. Count me in.” The entire conversation probably took 20 minutes. Thanks to Cory, the bones of our proprietary technology are best in class. Secure and encrypted, high performing, payment card industry-compliant, built-in failover and digital-optimized, our technology platform was designed from the very start using the high standards of software development that we had at Amex for our baseline. Pasig & Hudson was incorporated in June. The first Gifmo cards went at the Thomas Aquinas Research Complex Auditorium, UST, España, Manila, is on its 18th year. Inkblots is the annual gathering of campus journalists, journalism and communication enthusiasts and media practitioners. This year’s conference will tackle the role of campus

on sale August 22 last year.

How was the beta launch?

tions across Metro Manila and via our online distributor. That is a great start for a young, small company. But we’re just beginning.

What’s your growth plan? Our 2016 strategy was to target the “boutique” business segment— small businesses with strong brand appeal. We were most interested in businesses with no more than three to five locations, to keep operations simple while we worked on high-quality deployment. The cards we created for these businesses are beautiful, custom-designed collectables that will appeal to a premium, brand-conscious and aspirational customer base. On the strength of our success in this space, we have a few important growth goals for 2017. First, we are expanding our businesses to support the needs of larger clients that we call “middle market”—companies with 20 to 50 store locations. We are adding more professional, operational and technical services to our product offering to meet the special needs for larger clients. Second, we are expanding our service offering to better penetrate consumers in the mass market demographic. In doing so, we will also expand our sales and operations beyond Manila, to Davao, Cebu and other key cities across the country, to establish a truly national footprint. Eventually, we will also develop an “enterprise” product and compete for business from the major recognized Philippine consumer brands. Some of the most sophisticated companies already have entire divisions of their organization devoted to operating their digital marketing infrastructure. We know we can provide those services with a higher level of quality than they get today, at a fraction of the cost.

Are you also looking outside of the Philippines? Starting in 2017, and over the next few years, we will start marketing Gifmo in additional regional markets: Singapore, Hong Kong, Malaysia, Taiwan, Thailand and Indonesia. Because our core service is technology and operations, it can be virtualized and delivered to additional countries with superior margins. Work is already begun to make this achievable.

What is your outlook on Gifmo? The company is still less than two years old but already we know we have a winner. The skills and expertise of the team are rare in combination, globally and domestically. Our ability to execute is already proven. Our clients are enthusiastic, and the economics of the business are excellent for all parties. Our endconsumers love the cards, and are showing strong adoption. Since inception, we have raised $1 million in capital from multiple private investors. In 2017 we will raise a new round of funding to capitalize our growth plans, in the range of $3 million to $6 million. We are open to speaking with new investors who are interested in learning more about our business. office at 406-1611, local 8235. The conference is endorsed by the Commission on Higher Education (CHEd) in accordance with the pertinent provisions of Republic Act 7722, otherwise known as the Higher Education Act of 1994, according to a CHEd memorandum issued in November.

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BusinessMirror

Saturday, December 17, 2016

Affordable doesn’t have to be cheap-Cellprime CEO By Vernon Velasco | Special to the BusinessMirror

HERE Samsung and iPhone are the order of the day, local mobile-phone brands, like CloudFone, does more than a radical rethink of how to challenge the status quo to be the dynamic and leading contender that it is in the ever-intensifying race for mobile-market supremacy.

“Tech leaders, like Apple, are actually the drivers of technology. If you notice, they were the first ones to tell the world that a phone should be on a touchscreen. Nobody generally accepted that in the beginning,” Cellprime Distribution Corp. President and CEO Eric Yu told the BusinessMirror. While everybody generally likes to change consumer behavior and the way people use certain things with the products that they create (think Apple Watch Samsung Edge), CloudFone takes a step higher up the evolutionary ladder by refusing to change the way people do things. “We don’t change consumer behavior. Our No. 1 goal is to understand consumer behavior and create products that will solve their daily problems and make their lives better,” Yu said. “We understand what they need and what they do, and we base our products on those needs and generally anticipate what they are wanting and needing in the future.” As CloudFone’s goal is to be the benchmark local mobile-phone company, Yu said that to be a leading technology brand means being one that enables Filipinos to have access to the Internet by providing devices complementary to different lifestyles. If it means making products that are

not just beautifully designed and user-friendly, but ones that never compromise design, quality and customer service for price. “Inexpensive doesn’t have to be cheap. Consumers appreciate what we do with our devices, and the way we price our products,” Yu said. “I think that, in the future, the consumers are going to realize that a P5,000 phone can do the same thing as a P20,000 phone. When that day comes, it means we’ve achieved our goal of telling our consumers that quality can be not that expensive.” Striving, as always, for quality by being the first in a lot of things, CloudFone products, according to Yu, were the first in the country to have an exceptional battery life. They were the first local mobile brands to launch dual OS. They were the first to launch certain versions of Android. “At the end of the day, you are only as good as your next first.” Moreover, the way CloudFone looks at things is that its core strength is its unprecedented partnership with technology companies and brands across the globe to achieve scale: companies that believe what it believes. “We buy chipsets together, components together, so we can drive down cost. Because it doesn’t really

According to Taitra, the laptop by ASUSTeK Computer Inc. features a Li-Polymer battery that gives up to 700 charge cycles or 2.5 times longer than the life span of standard Li-ion cylinder batteries. It also has an IceCool technology that keeps heat-generating components away from the palm rest and maintains temperatures between 28 degrees Celsius and 35°C, according to Taitra. Another gadget promoted by Taitra is the D-Link DWA-192 wireless-fidelity (Wi-fi) adapter. About the size of a baseball, the DWA-192 is powered with a 3x3 antenna design, supporting speeds of up to 600 megabytes per second (Mbps) on the 2.4 gigahertz (GHz) and 1,300 Mbps on the 5 GHz to deliver fast wireless speeds and less interference, Taitra said. Rizal Raoul Reyes

help brands and serve consumers if we create cheap products with cheap specs,” Yu said. “We really want to change that inexpensiveequals-cheap mind-set, and the only way to do that is to make partnering with different brands in the world our business model.” CloudFone has established a proactive collaboration with giant local companies (PBA, Blink, ABSCBN), as well as globally reputable partners (Intel, Qualcomm, MediaTek, Tinno, Disney, Microsoft, NBA, Opera Max and Spotify). “These partnerships help elevate us as a brand and also help elevate the way we build our products. Working with global companies really helps us learn about global business. That’s what separates us from any other local brands,” Yu stressed.

Yu said that, in the years ahead, CloudFone will continue leveraging on and making more content partnerships. “I continue to see very innovative stuff coming from the appdevelopment world, and, being a device company, it is of our best interest to work with best app developers and the best content providers to create products that will run very smoothly,” Yu said. “Case in point: People who want to play NBA 2k17 can’t play those game on a ‘cheap’ phone. The specs just won’t do magic. The way we see ourselves moving forward to the future is we’re inclined toward breaking that barrier. We make sure that all apps that run on a high-end device, like iPhone and Samsung, will run just as well on a CloudFone.

joined Hooq in a coproduction of the On the Job series based on the hit movie of the same title,” Horan said. “We are very excited to finally start production of this new venture as it strengthens our commitment to provide the best content for our customers whether they are at home or on mobile.” Horan added: “From partnering with content producers, we are now taking the next big step by coproducing all original materials

value physical mail as a recordkeeping tool, thereby serving as payment reminders.” “Nevertheless, more and more companies are switching to the digital dimension driven by the increasing trends of big data, cloud technology, end-user focus, socialsharing information and security,” Tangco said. “More and more companies are now targeting and working on achieving a workspace that depends less on paper.” In today’s digitally connected world, the expectation that information will be available on demand and accessible on any device is likely to be the norm for companies to boost their efficiency. A digital DMS addresses the issues of traditional filing systems head- on, helping to create more efficient and secure solutions to improve document workflows. Rizal Raoul Reyes

This December 14 photo shows Marilen Young, consumer sales and marketing manager at iSecure Networks Inc.; and Anthony Chua, Kaspersky Lab ZAO Southeast Asia territorial channel manager for the Philippines and Singapore, presenting a new security solution from Kaspersky Lab ZAO.

Kaspersky promises consumer security Story & photo by Oliver Samson

This undated photo courtesy of the Taiwan External Trade Development Council (Taitra) shows the Adata HD720 external drive, one of the gadgets the Taitra is promoting bearing the Taiwan Excellence seal.

Globe, Hooq ramp up marketing of online film HE development of more local films can be a source of content for a major video online provider not only in the country but the Asian region, as well. Dan Horan, Globe Telecom Inc. senior advisor for consumer business, said in an earlier interview that the Philippines has the potential to produce quality films for the local and Asean market because it has a large pool of talented people. “In fact, Globe has walked the talk as it

OTWITHSTANDING the pervasive use of digital technolog y, consumers still prefer holding physical copies of their documents as compared to having a digital copy, according to ePDS Inc. “The demand for data printing continues to be strong despite the growing presence of digital media,” said Minetta Tangco, executive v ice president and general manager of ePDS, a local document management services (DMS) company. “This is particularly true for financial institutions, banks and credit-[card] companies, as well as utility companies handling telecommunications, power and water, where the majority of their clients expect to receive statements of their accounts via physical documents.” Tangco said that “additionally, when it comes to bills, consumers

Eric Yu

Taiwan center promotes award-winning gadgets HE Taiwan External Trade Development Council (Taitra) is promoting gadgets that it recognized as symbolizing excellence. According to Taitra, these gadgets bear the Taiwan Excellence seal and “help users embrace a life of efficiency and practicality.” One of these gadgets is the Adata HD720 external drive. According to Taitra, this device is an alternative to shelling out a monthly subscription fee for extra online storage. Taitra said the Adata is being offered at storage capacities of 500 gigabytes, 1 terrabyte (TB) or 2TB. “Its durable design survived stringent tests for waterproofing, dust proofing and even shock resistance.” Another gadget being promoted by Taitra is the Asus Vivobook X556UR laptop.

ePDS believes paper still accepted medium

and the On the Job series is the perfect choice given the success of its movie counterpart.” “Creating a miniseries exclusively for a video-on-demand service like Hooq will allow us to explore unique stories that will be sure to pull in viewers who will want to get more immersed in this compelling world we’re building,” Horan added Krishnan Rajagopalan, Hooq cofounder and chief content officer, said this is Hooq’s

first foray into producing original content. Rajagopalan added, “It is the natural direction of the company to introduce variety in its content and to play a part in growing the local content industry.” Jeffrey Remigio, director of content at Hooq Philippines, said the On The Job series has developed a strong following when the movie version was shown three years ago. Rizal Raoul Reyes

ASPERSKY Lab ZAO recently launched a solution that the company said it tweaked and promises consumer security in the wake of today’s continuing threats. The solution offers more ways for securing consumers online and safeg uarding their data, Anthony Chua, Kaspersky Lab Southeast Asia territory channel manager for the Philippines and Singapore, said during the launch in Manila on December 13. Chua said the tweaked software was launched as attacks continue to threaten users. Over 99 percent of mobile malware are targeting Android, he said adding that some 6 million attacks on Mac devices were detected last year. Chua pointed out no less than 67 percent of respondents use more than one device in going online at home, at work, on travel and elsewhere. Some 82 percent of travelers connected to unsecured public Wi-fi networks, he added. Attacks had also threatened the security of online kids, Chua said. No less than 63 percent of children could not distinguish true information online from the false, he added. Some 37 percent of the young users encountered online risks like bullying and inappropriate content, according to Chua. “ We believe that infor mation-technolog y [IT] security is

not only about the effectiveness of a security solution. It is also about the user’s own cyber savviness,” Sylvia Ng, general manager at Kaspersky Lab Southeast Asia, was quoted in a statement as saying. “Cyber-sav v y people behave carefully and watchfully online, and they are also ready to apply the latest technological achievements to protect what is most important for them— whether that’s personal information, files, privacy, their devices or peace of mind for their family members.” Kaspersky Lab claims its solution encrypts data sent and received. The company emphasized the importance of encryption when performing financial operations, author ization on sites, or transferring confidential information, as in these cases traffic interception by a stranger could cause users serious losses. According to the Kaspersky Lab, every fifth (18 percent) user has fallen victim to cybercriminals when traveling. “This is not surprising considering the fact that one in five [18 percent] traveler does not take any step to protect themselves online,” Ng said. “Filipinos are heavy mobile and internet users. Filipinos are also known as one of the most active social media users,” Chua said. “Through social engineering or hacking of the human mind, careless and unaware Filipinos could be easy prey for cybercriminals.”

BusinessMirror

Bosch, Sony ink deal for video security B OSCH Security Systems Inc. (BSS) and Sony Corp. signed a contract to establish a business partnership to collaborate in the development of innovative products and solutions in the field of video-security applications. “Effective from the beginning of 2017, the two companies aim to combine their technological expertise to set new standards in high-resolution and low-light video imaging,” Sony said in a statement. “As part of the agreed partnership, Sony’s v ideo-security customers in all markets except Japan will be served and supported by the sales and marketing organization of [BSS]. The partnership is subject to approval by the antitrust authorities.” Accord ing to Sony, it w i l l bring its expertise in video image quality and performance,

while Bosch will add an extensive set of video analytics to interpret data, as well as technologies to achieve bitrates and storage requirements. “ Video -secur it y cameras a nd more spec if ica l ly t he d at a t he y a re c ol l e c t i n g pl ay a n impor t a nt role in t he f u r t her development of t he Inter net of T hings [IoT],” BSS President Ger t va n Iperen was quoted in t he st atement as say ing. “ T he v ideo ca meras m ight be ca l led as ‘t he eyes of t he IoT ’.” According to van Iperen, his company will provide a sales and marketing team responsible for Sony-branded products, as well as Sony’s customers to grow the business. Meanwhile, Sony will continue to develop and manufacture its video security products under its brand. Oliver Samson

Local electronic goods seller touts videoke tech

UDIO-Video Solutions Cor p. (AVSC) recent ly launched a marketing campaign touting the technology in its videoke product. AVSC, a subsidiary of the Wow Group of Cos., said its videoke product called Grand Videoke Plus allows finding songs in just about five seconds. Through the voice command function, one simply needs to say the song title directly to the microphone, wait a few seconds and start singing, AVSC said in a statement. The microphone also has a technology for “louder, clearer and more natural voice pickup,” the 15-year-old company said.

The product is also equipped with a sound module “for more realistic, concert-like sound.” The product also serves as a full-featured multimedia player capable of playing movies, music and pictures through a secure digital, or SD, card or universal serial bus (USB) drive. AVSC, an importer, designer, supplier and installer of professiona l audio, v ideo and lighting products, has launched a marketing promotion wherein a purchase of its videoke product off line and online comes w ith a free dig ita l telev ision box it said is wor th P1,500. Rizal Raoul Reyes

Concepcion firm cites washer’s tech feature

ONCEPCION Midea Inc. (CMI) recently cited the technology feature of its washing machine as industr y moves to adopt the Internet of Things (IoT). In a statement, the company said the machine’s main feature called the iAdd auto-dosing technology is the first of its kind in the Philippines. The feature offers an intelligent weighing system that regulates the amount of detergent and fabric softener depending on the weight of the laundry. “This [feature] takes away the stress from monitoring whether there is too much or too little detergent and fabric softener while washing,” the company said in a statement. In addition, the company said the machine also features a sensor “that runs the ideal drying setting, saving time, electricity and clothes from over drying and shrinking.” According to CMI, most Filipinos are yet to become aware of the front-load washing machine,

especially these technology features. The company admitted that front-load washing machines may cost a bit more than the conventional top-load washing machines. But the former “makes up for it with the savings it gives on water and electricity.” The launch of CMI’s washing machine comes at a time when the International Data Corp. (IDC) said that, by 2020, half of the top companies in the Asia Pacific, excluding machines, “will see the majority of their business depend on their ability to create digitally enhanced products, services and experiences [DX].” “For industry leaders, the fastest revenue growth will come from information-based products and ser v ices,” IDC said. “To facilitate the development of these products and services, worldwide investment in DX initiatives will reach $2.2 trillion in 2019, almost 60 percent more than in 2016.” Rizal Raoul Reyes

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Dell launches laptop as IDC says PC market ‘improving’

ELL Inc. launched recently a laptop positioned in the gaming market segment as the International Data Corp. (IDC) said the slowdown in personal-computer (PC) shipments have shown improvement. The company founded by Michael Dell in 1984 launched on December 7 in the Philippines its Inspiron 15 gaming laptop eight days after IDC said forecast worldwide PC shipments to decline by 6.4 percent year over year (YoY) in 2016. “The PC market continues to perform close to expectations,” Loren Loverde, IDC worldwide tracker forecasting and PC research vice president, was quoted in a statement as saying. “Some

volatility in emerging regions is being offset by incremental gains in larger mature markets, while the interaction with tablets and phones is stabilizing. We continue to see steady progression toward smaller desktops and notebooks as replacement buying helps stabilize overall shipments in the coming years.” A ccord i n g to C h r i s Pap a , Dell country manager for the Philippines, the notebook was

Cris Papa Dell Philippines Corp.

launched because they believe the “game-development industry in the Philippines continues to grow and the growing number of colleges and universities in the country offering formal game development courses means we’ll see many developers and game enthusiasts soon.”

In the usual setup that is very popular in emerging market, like the Philippines. Papa said a regular user in the Philippines would have two sets of computers: one for personal use and one for gaming. However, Papa noted that economics is a vital factor as some users have experienced budgetary problems and find it hard to maintain two machines. “There is a segment of people and it is not just us that recognize this development but the market itself because people dictate the trend,” Papa explained. “They have gaming consoles but they are limited.” As a result, a new segment called casual gaming emerged. “You can bring this laptop to your customers for presentations and you will not be ashamed to show it because of the sleek design and appearance,” Papa said. Rizal Raoul Reyes

Apps for haggard parents with wailing child on flight

BOA R D Jetblue Fl ight 669—There are few things worse than getting on a plane and discovering a wailing child and a haggard parent sitting next to you. Few things, that is, except being that haggard parent of the wailing child. As a parent who flies alone with a baby regularly, I have a lot of sympathy for fellow frazzled parents, stuck on long flights with squirmy 1-year-olds, fussy toddlers, clingy 5-month-olds or perhaps some combination of the three. Thankfully, there are a quite a few digital and analog ways to distract and soothe your offspring. I tried several on recent cross-country flights just before my daughter turned 1. Something must have worked; at the end of one flight, an attendant told me she “didn’t even notice” there was a baby in row 22. Of course, nothing’s guaranteed. On another flight, we didn’t have an extra seat to stretch out on, and The Squirmy One expressed her displeasure loudly despite apps and toys.

Screen time ok? Ok!

This photo courtesy of Concepcion Midea Inc. shows a kitchen with an iAdd washing machine.

Saturday, December 17, 2016

In this September 26, 2014, file photo, Ann Walden checks her phone as 15-month-old daughter Delphine plays while waiting in line after their flight to Baton Rouge was delayed at O’Hare International Airport in Chicago. There are several ways to distract and soothe little ones when traveling by air. AP

LET’S get this out of the way. The American Academy of Pediatrics generally frowns on screens for children under 18 months, especially without adults to guide them. But it acknowledges exceptions in a recent update. An earlier guideline called for no screen time at all. The change reflects the reality that even 1-year-olds need to video conference with grandma sometimes. While the new guideline is better, it’s still not very realistic. The pediatricians’ group, apparently, has never had to fly from New York to California with a baby or needed to distract a screaming child in a car seat. I follow the AAP’s recommendations for some things, like vaccine scheduling. I don’t give a hoot what it says about screen time. As a friend with a toddler recently told me, all rules go out the window when flying with a baby. Whether it’s phones, Cheetos or your car keys, I’m willing to hand my child anything that will distract her—anything safe, that is.

or hold it for him or her. A red barn will appear with the door closed. Some sort of farm animal will make its farm-animal sound behind the door. After it knocks on the door, kiddo taps the barn door with a finger, the door opens and the animal appears. Its English name is written on the screen and pronounced with good enunciation. The door closes, and the whole thing repeats again. Verdict: Not bad. For my child, this app works best in screamingin-the-car seat situations. She immediately calms down, is super excited and does a little dance when the theme music (“Old McDonald”) starts playing. But it doesn’t hold her interest any longer than, say, wheat puffs offered one at a time, or the zipper on my sweatshirt. After 30 seconds or so, she prefers to inspect my phone’s leather cover.

Peekaboo Barn

Fisher Price

THIS free app for iPhones and Android was among the first mentioned in my online mom groups when I asked about long flights. Like other apps for babies, it is deceptively simple for adults, but engrossing for entire minutes for the littlest ones. Have the kiddo hold your phone,

THE toy maker has a bevy of apps available for iPhones and Android, usually for free. I chose “Soothing Sights & Songs for Baby”, as it promises to “keep your little one calm and entertained.” It comes with two “games”, though that’s a generous description. The one we played features cartoon sheep

jumping over a fence as stars twinkle and crickets chirp. My city baby has never seen stars or sheep or heard crickets, but she seemed fairly engrossed in the app. She also realized something I didn’t: If you tap the screen, a lightning bug will appear. The other game is similar, except it’s an undersea world instead of sheep in a pasture, and a tap brings up bubbles instead of lighting bugs. Verdict: This is the baby version of the burning fireplace or the fish tank that sometimes plays on TV. Not much is happening, but it’s quite relaxing if you stare at it long enough, at least for an adult. My squirmy child was moderately soothed.

Guided access for grabby fingers

THIS setting for iPhones and iPads keeps your device in a single app, say, YouTube or Peekaboo Barn, so your child can’t start deleting all your photos. It also makes it easier to let kids watch movies or videos; even if they are constantly poking the screen, the video won’t pause or stop. To set up, go to “settings,” then “general” and click on “accessibility.” Scroll all the way down and turn on “guided access.” To start it, open the app you want to use,

then triple-click the home button. On Android tablets, you can set up a separate profile for your kid and employ a slew of parental controls, such as selecting “lock home button” to keep a kid from exiting apps. On phones you can create a guest profile with limited access. Verdict: I didn’t know this setting existed until after the trip. Next time.

Analog solutions

THE thing with giving your kid your phone on a long plane ride is that you can’t use the phone at the same time. And I’m not ready to buy my daughter her own phone. So I bought a set of fish-shaped “gel clings” on Amazon for less than $10. We had oodles of fun sticking the little jiggly gel fish on the tray table and other places, then unsticking them. Repeat until bored. All I had to do was keep them out of her mouth. Verdict: You probably don’t need apps for a baby to survive a f light, but because they are free and, if you don’t mind some “screen time”, it’s worth a shot. But any app will distract a baby for only so long. Older kids are more likely to pay attention to apps and videos—though they might need more advanced apps. AP

A12 Saturday, December 17, 2016

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Yahoo! suffers world’s biggest hack affecting 1 billion users BY Michael Liedtke

AP Technology Writer

AN FRANCISCO—Yahoo! has discovered a 3-year-old security breach that enabled a hacker to compromise more than 1 billion user accounts, breaking the company’s own humiliating record for the biggest security breach in history.

The digital heist disclosed on Wednesday occurred in August 2013, more than a year before a separate hack that Yahoo! announced nearly three months ago. That breach affected at least 500 million users, which had been the most far-reaching hack until the latest revelation. “It’s shocking,” security expert Avivah Litan of Gartner Inc. said. Both lapses occurred during the reign of Yahoo! CEO Marissa Mayer, a once-lauded leader who found herself unable to turn around the company in the four years since her arrival. Earlier this year, Yahoo! agreed to sell its digital operations to Verizon Communications for $4.8 billion—a deal that may now be imperiled by the hacking revelations.

Two hacks, more than a billion accounts

YAHOO! didn’t say if it believes the same hacker might have pulled off two separate attacks. The Sunnyvale, California, company blamed the late 2014 attack on a hacker affiliated with an unidentified foreign govern-

ment, but said it hasn’t been able to identify the source behind the 2013 intrusion. Yahoo! has more than a billion monthly active users, although some have multiple accounts and others have none at all. An unknown number of accounts were affected by both hacks. In both attacks, the stolen information included names, email addresses, phone numbers, birthdates and security questions and answers. The company says it believes bank-account information and payment-card data were not affected.But hackers also apparently stole passwords in both attacks. Technically, those passwords should be secure; Yahoo! said they were scrambled twice— once by encryption and once by another technique called hashing. But hackers have become adept at cracking secured passwords by assembling huge dictionaries of similarly scrambled phrases and matching them against stolen password databases. That could mean trouble for any users who reused their Yahoo! password for other online

In this July 19 file photo, a cyclist rides past a Yahoo! sign at the company’s headquarters in Sunnyvale California. The Yahoo! hack announced on December 14 exposed personal details from more than 1 billion user accounts, potentially the largest breach of an e-mail provider in history. AP

accounts. Yahoo! is requiring users to change their passwords and invalidating security questions so they can’t be used to hack into accounts. (You may get a reprieve if you’ve changed your password and questions since September.) Security experts said the 2013 attack was likely the work of a foreign government fishing for information about specific people. One big tell: It doesn’t appear that much personal data from Yahoo! accounts has been posted for sale online, meaning the hack probably wasn’t the work of ordinary criminals. That means most Yahoo! users probably don’t have anything to worry about, said J.J. Thompson, CEO of Rook Security.

Questions for Verizon

NEWS of the additional hack further jeopardizes Yahoo!’s plans to fall into Verizon’s arms. If the hacks cause a user backlash against Yahoo!, the company’s services wouldn’t be as valuable to Verizon, raising the possibility that the sale price might be renegotiated or the deal may be called off. The telecom giant wants Yahoo! and its many users to help it build a digital ad business. After the news of the first hack broke, Verizon said it would reevaluate its Yahoo! deal and in a Wednesday statement said it will review the “new development before reaching any final conclusions.” Spokesman Bob Varettoni declined to answer further questions.

At the very least, the security lapses “definitely will help Verizon in its negotiations to lower the price,” Litan predicted. Yahoo! has argued that news of the 2014 hack didn’t negatively affect traffic to its services, strengthening its contention that the Verizon deal should be completed under the original terms. “This just adds to fuel to the fire and it won’t help Yahoo!’s cause,” said Eric Jackson, a longtime critic of the company’s management. Although he has in the past, Jackson doesn’t currently own Yahoo! stock. Investors appeared worried about the Verizon deal. Yahoo!’s shares fell 96 cents, or 2 percent, to $39.95 after the disclosure of the latest hack.

Motorola banks on innovation Lazada sale features Starmobile laptop T H

HE local business of Lenovo Corp.’s mobile division is banking on innovation of smartphone technology, rather than going into a price war with other brands. Dino Romano, Country manager for Lenovo Smartphone, Philippines, told the BusinessMirror the company will stick to its pricing strategy for the Moto brand, which is directed to what they call as the “premium” segment. Launched in the Philippines midOctober, Lenovo took on the competition offered by a Korean brand as the Chinese and homegrown brands vied for share in the under-$200 smartphone segment. But while Lenovo also shoulders its way into the smartphone mass market with 14 models, it is now eyeing to further push into the over

$500 smartphone segment with the Moto brand, currently with six models. The priciest is the Moto Z at P49,999 (around $1,002.49 at current exchange rates). Romano said the company plans to roll out 20 to 30 devices next year. We’re more into innovation, he said, citing the devices under the Moto brand is differentiated with its so-called mod, a detachable hardware for additional digital experience, or DX. Romano said they expect new mods next year to add to the current five that the company sells separately with the feature phone. There is a mod that becomes a projector, one that operates a Hasselblad camera and another that becomes an external speaker. There is also a mod that adds an additional power supply. A mod skin can also be purchased to change the device’s skin. A style shell comes free with a Moto Z and Moto Z play purchase,

according to Romano. “We may be coming out soon with a mod that can read cards for financial transactions and one to check blood pressure,” Romano told the BusinessMirror. He added the company is encouraging developers to further innovate the mod. And as long as the hardware fits the 5.5-inch device, Lenovo can have another business line that the company can grow.“The pace of smartphone technology is slowing down so brands need to innovate.” Aside from innovation, Lenovo is also aiming to expand its reach by beefing up distribution channel. The company is putting up offline stores for the Moto brand, mainly in two shopping centers in the National Capital Center. Romano said they have not yet refurbished its two stores but these will be formally launched in the first quarter next year.

OMEGROWN brand Starmobile has officially launched its brand-new Windows 10 laptop, the Engage Aura. The laptop bearing the eponymous brand is being featured at Lazada’s 12/12 sale at a special discounted price of P7,990 ($159.99 at current exchange rates), the Filipino smartphone and tablet manufacturer said in a statement. Starmobile’s sales launch of its device comes as the International Data Corp. (IDC) pinned the improvement in personal computer (PC) sales during the third quarter to the transition to Windows 10. Still, IDC said more than the transition, the improvement in PC shipments in the third quarter came largely as a result of stronger momentum in the United States, Western Europe and Japan, and were driven by channel build up in anticipation of component shortages in areas, such as display panels and

storage. “This is expected to slightly boost shipments into early 2017, but will not carry into later periods,” IDC said in a statement on November 30. IDC said the third quarter of 2016 saw a year-over-year decline in shipments of 4.6 percent, more than two percentage points ahead of expectations.

The Starmobile Engage Aura laptop Photo courtesy Starmobile Inc.

Digital integration to continue–IPC

P Converge Data Services Inc. (IPC) recently revealed that integration of various digital tools and solutions in the workplace will continue to lead as increasing trends and the benefits that go with them emerge. The adoption of digital tools which started in 2016 extends to 2017 and beyond, as Filipinos become more digitally reliant not only in their personal lives, but at work, as well, IPC Director for Product Management and Marketing Niño Valmonte said. With the horrendous and anarchic traffic situation occurring daily, Valmonte also pointed out that telecom-

muting is a viable option for working people, as well as small, medium and large enterprises and large enterprises. Moreover, these businesses are also planning to look at the possibility of implementing “work-at-home” or “work-from-anywhere” options. “With almost everyone having devices and Internet connection at home or on the go, the option of telecommuting is viable for employees who want to stay productive,” Valmonte said. The Department of Information and Communications Technology expressed its support to these initiatives during the first DICT Summit

Growing demand for radiologists tackled by start-up

in November. In their resolution, the DICT said they recognize that the amount of time spent on the road decreases work productivity, which translates to a P240-billion revenue loss every day. With the proliferation of various SaaS (software-as-a-service) business applications available today, companies can maintain and even increase productivity anytime and anywhere, according to Valmonte. G Suite, Google’s office collaboration suite, is a viable option, especially for small and medium enterprises’s, where it enjoys almost 50-percent

global market share, he added. The future of telecommuting is seen to be clearer in light with high smartphone penetration rate, which is expected to reach 70 percent by 2018 and general price reduction of other mobile devices becoming prevalent in the market, Valmonte added. Online chat apps allow teams to both collaborate in open forums or just casually talk or catch up in private messages. This saves precious time and effort since employees need only to type on their PCs or even in their mobile phones anytime and anywhere. Instant messaging tools

are useful in the workplace because everyone can see what’s going on in real time. “It’s just like a meeting but better since everything sent is saved and archived,” Valmonte said. According to a study made by We Are Social, the Philippines emerged as the country that spent most time spent on social media each day, with an average time of five hours and 12 minutes. Knowing the potential of an internal office messaging system, several online companies released their own services dedicated to optimized online collaboration at work. Rizal Raoul Reyes

ACED with a growing demand for diagnostic imaging services, but with a shortage of professional radiologists to conduct case readings for patients, Philippine startup Lifetrack Medical Systems (LMS) Inc. has come up with an enhanced software. In a statement, LMS touts its software called “Lifesys” as the first fourth-generation radiology software designed to handle enterprise-level usage and wider distribution globally. “This development is in line with the company’s founding mission to address the shortage of radiologists and provide a technology platform that provides hospitals, clinics and even the remotest medical facilities access to radiologists anywhere in the world,” the company said in a statement. The global demand for radiologists is dire as up to two-thirds of the world’s population has no access to diagnostic radiology, LMS said, citing international public health agency Pan American Health Organization. In the Philippines it is estimated that for every 100 million Filipinos there are only about 1,500 radiologists. In this kind of challenging scenario, LMS credits its information-technology (IT) infrastructure built on the cloud technology of Amazon Web Services for the f lexibility to scale up quickly as needed and the agility to introduce innovative features instantly, the company said. LMS said it has relied on AWS cloud computing platform since starting operations in 2012. Through the cloud infrastructure, LMS is capable of rolling out updates and new features within 30 minutes across multiple geographic locations, something that used to take at least six months on traditional on-premise hardware setups. The company’s software thus facilitates radiological diagnosis and speeds up radiologists’ response time to doctors and patients anywhere in the world. Further speeding up the process is the use of Amazon CloudFront, which accelerates delivery of content to end users in any specified location worldwide. Since the software operates on the highly secure AWS cloud platform, medical institutions can collaborate with LMS anytime, anywhere for diagnostic consultation. The company has a team of in-house radiologists to provide diagnostic services and can also tap a network of experts worldwide. In contrast to having on-premise data servers that are expensive and maintenance-heavy, the use of AWS cloud computing enables LMS to reduce its monthly operational costs. This results in lower service fees that make its solutions more affordable to clients and benefit a wider market. “Being able to access and manage our services anytime at a low operating cost with the highest security standards, as well as scale according to our needs, are some of the key benefits in using AWS cloud services,” Dr. Eric Schulze, founder and CEO of LMS, was quoted in the statement as saying. LMS is a Philippines-based start-up that provides profession a l r ad iolog y ser v ices a s well as a cloud-based radiology i n for m at ion s y stem, pic t u re archiving and communications system. Rizal Raoul Reyes