BusinessMirror February 18, 2015

BusinessMirror

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

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The wave of healings

WORD AND LIFE, FR. SAL PUTZU AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

NOTE TO SELFIE: GET SOME OF THESE NEW GADGETS... »D2

BusinessMirror

Wednesday, February 18, 2015

By Butch Fernandez & Lorenz S. Marasigan

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4 rules to keep technology from ruining your relationship

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B J C. O San Jose Mercury News

communication between couples for generations, now we use instant messaging, text messaging and e-mails daily. With text-based communications, however, context is largely absent, which can lead to innocuous comments inflaming a situation and messages that never fade.

“Haven’t we all said things that we really regretted?”

Weiss asked. “Well, it’s one thing to say something and then five hours later take it back or apologize, but if it’s in black and white, it’s a lot harder—that person can read it and read it and read it.”

To avoid these issues, always pick up the phone or get together in person when a conversation takes a bad turn.

“If you’re upset with somebody, put it in a phone call,” Weiss suggests.

Angry messages may not even be enough to signal time for a real conversation, as many people can mask anger or hurt feelings with curt messages.

“In person, you can see all those important cues and come to conclusions a lot quicker than in three hours battling it out over e-mail,” Andersen noted.

AN JOSE, California—Technology has made meeting potential partners and communicating with loved ones easier.

However, mobile gadgets and social networks can distract and cause rifts, especially for high-tech workers who feel the need to be constantly connected to their jobs to ensure everyone else doesn’t lose their favorite service.

“Technology can certainly lead to a lot of distractions,” said Amy Andersen, founder and CEO of Linx Dating, a matchmaking service with many clients in the high-tech sector.

The key to avoiding such problems, experts say, is open communication between couples, with special focus on areas that could cause tension. To foster that communication, we developed four rules that couples can follow or at least discuss to keep gadgets and online profiles from interfering with a special relationship.

“The real key is being able to have the conversation and, even if you feel differently about how you use technology, working it through just like you would work through any other conflict,” said Santa Clara couples and marriage therapist Sheila Kreifels, who counsels clients to establish boundaries for technology.

Consider these rules for beginning to establish those boundaries, even though Kreifels acknowledges, “It’s a tough conversation for many couples.”

ASK BEFORE YOU TAG SOCIAL media has become one of the biggest danger zones for prospective paramours, with many couples’ first major discussion about a committed relationship centered on changing their Facebook relationship status.

“In the last few years, different media platforms on the Internet built up different cultures,” noted Robert Weiss, a licensed clinical social worker who has written books on technology’s effect on relationships including the freshly released Always Turned On: Sex Addiction in the Digital Age. “Something that I would absolutely post in an IM just to my partner I absolutely would not put up on their timeline.”

Potential issues with social media are rife through the life of a relationship, including differing opinions on posting pictures of children or each other, as anyone who has posted an unflattering picture of a partner can tell you. The rule to avoid these issues is to always seek

permission before involving a loved one in your socialmedia post. “Consider photos and information people’s intellectual property, if you will,” Kreifels says. “Just like we need permission to use intellectual property, get permission.”

ESTABLISH TIME WITHOUT TECHNOLOGY EVEN if you and your partner are not experiencing issues with technology in your relationship, establishing regular times to put the gadgets away can be beneficial, especially on early dates.

“I tell people, before a date, leave your phone in the car,” said Andersen, the matchmaker. “You can focus on that one person for an hour and then check your phone—not a big deal.”

These tech-free times can be daily—no phones at the dinner table or no tablets in bed, for example—or less

frequent, with Andersen noting that many of her friends promise to leave their phones at home on weekly or monthly “date nights” with their spouses.

The most important component of this rule is undivided attention. Kreifels advises her clients to make sure they build in 30 minutes of face-to-face dialogue daily, even if that time is broken up into smaller chunks.

“Truly, nothing really replaces that kind of emotional presence for a relationship, for intimacy to take hold and develop,” she said.

END THE THREAD BEFORE IT BECOMES A FIGHT THE biggest change technology has wrought on relationships is the advancement of text-based communications systems. While an occasional love letter and quick notes were typically the only written

DON’T SHARE PASSWORDS IN a long relationship, it can happen so easily—one person needs another’s smartphone passcode to grab a number or e-mail password to look something up. But having that information can open a Pandora’s box.

“It’s great as long as you trust your partner, but as soon as they’ve shown you that they’re cruising hookers on Tinder—once you have that information, all bets are off,” Weiss said.

Most communications that could cause strife are not as clear-cut as Weiss’s example, however.

Even the most bland text or e-mail conversations can be taken the wrong way from the view of a third party, the experts pointed out, and online habits one person may find completely normal could be offensive to others.

While communication can help establish parameters that both members can agree upon, it’s probably better to just avoid the temptation to snoop that sharing of passwords can create. People should be understanding if partners—at any stage in the relationship—are reluctant to pass along passwords, the experts said, and all said they share few, if any, passwords with their own spouses.

“I would never give my personal information about my cellphone to my wife, husband, girlfriend or boyfriend—that’s my business,” Weiss said. “If they trust me, they trust me.” ■

GLOBE and HOOQ executives and representatives from global and local partner companies

EDU MANZANO

BENJAMIN ALVES

KRIS BERNAL

Stars flock to HOOQ launch in PHL THE local entertainment industry recently celebrated the arrival of HOOQ, Asia’s video-on-demand service, to Philippine shores in a starstudded event held at The Green Sun in Makati City.

A start-up joint venture between Singtel, Sony Pictures Television and Warner Bros. Entertainment, HOOQ was launched in the Philippines in partnership with Globe Telecom to give Filipinos access to top Hollywood and Filipino movie and TV content across multiple devices.

This includes a selection of over 10,000 movies and television episodes

from Sony and Warner Bros., as well as from the country’s top studios, such as ABS-CBN, GMA, Regal Entertainment and Viva Communications.

Hosted by TV personality Nikki Gil, the galactic-inspired event, dubbed “Wonderworld,” was attended by lots of celebrities and personalities. Among those who walked down the event’s famed blue carpet included Kris Bernal, Yassi Pressman, Albie Casiño, Martin del Rosario, Benjamin Alves, Anthony Semerad, David Semerad, Edu Manzano, Pinky Amador, and Robi Domingo.

To signify the big partnerships,

industry giants, such as Vic and Vincent del Rosario of Viva Communications, Roselle Monteverde of Regal Films, Judd Gallares of GMA, and Evelyn Raymundo of ABS-CBN raised their glasses alongside Globe President and CEO Ernest Cu, Globe Senior Advisor for Consumer Business Dan Horan, HOOQ CEO Peter Bithos, Sony Pictures Executive Vice President for Networks George Chung-Chi Chien and Warner Bros. Digital Distribution Vice President for Business Strategy Anuraj Shavantha Goonetillek.

According to Bithos, “The Philippines is a natural first market for

us. Filipinos’ dual love of local and Hollywood content combined with their digital savviness makes the Philippines a perfect place for us to start. Our partnership with Globe Telecom, the leader in digital partnerships in the Philippines, helps us bring Philippine customers a premium video service and new form of entertainment that combines the best of Hollywood, Asian and Philippine video content across all devices.”

Customers can watch Hollywood movies such as Harry Potter, SpiderMan and Inception, while enjoying popular TV series, such as Gossip Girl,

Friends and Smallville on HOOQ. They can also watch local topgrossing films such as Metro Manila, A Secret Affair, Shake Rattle and Roll and Ang Tanging Ina, as well as classics, including Dyesebel, Bagets and Bituing Walang Ningning. Highly rated TV shows like My Husband’s Lover, Mulawin, Tayong Dalawa and Mara Clara will also be available.

HOOQ will soon be available to Globe customers on a plan-based service for P199 per month. It will also be offered as a bundled service with the telco’s GoSURF and Tattoo broadband plans.

LIFE

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euro zone issues ultimatum; athens still hopeful of deal BusinessMirror

World The

B3-1 | Wednesday, February 18, 2015 • Editor: Lyn Resurreccion

PREPARING FOR CHINESE NEW YEAR

A woman shops for good luck ornaments at the traditional Dihua market for the upcoming Chinese New Year celebrations in Taipei, Taiwan, on Monday. The first day of the Chinese Lunar New Year falls on February 19. AP/WALLY SANTANA

Euro zone issues ultimatum; Athens still hopeful of deal

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RUSSELS—European creditors issued Greece with an ultimatum on Monday, saying the country must accept a key condition in bailout talks by the end of the week or face having to meet its debt commitments on its own—a prospect that many in the financial markets think would leave Greece little option but to leave the euro.

After a meeting of the 19 finance ministers of the euro zone over how to make Greece’s debts sustainable broke down in seeming-acrimony after barely more than three hours, Greece was told it has to ask for an extension to its bailout program before further negotiations on the country’s future financing and economic course can take place.

“We simply need more time and the best way for that at this point is

extend the current program, which would allow a number of months for us to work on future arrangements,” said Jeroen Dijsselbloem, the head of the so-called euro group.

Without some sort of financing arrangements in place after the current bailout ends after February 28, Greece would face real difficulties meeting its obligations, such as debt repayments, over the coming months. Bankruptcy and a potential

exit from the euro would loom for Greece once again.

That’s why investors grew increasingly concerned on Monday that a deal may not emerge in time to avoid a so-called Grexit from the euro—the main stock market in Greece fell 3.8 percent while the euro slipped.

Investors are worried that the two sides are poles apart, especially as a cornerstone of the election campaign of Greece’s new left-wing government was to scrap the bailout program.

In return for €240 billion ($275 billion) of rescue money from 2010 onward, successive Greek governments have had to implement a wide array of austerity measures, such as deep cuts to spending and pensions.

The new Syriza government, in power for barely three weeks, blames those measures for the country’s economic ills—the Greek economy is around a quarter smaller than in 2008, despite a recent modest return to growth while unemployment and poverty have swelled.

“It would be an act of subterfuge to promise to our partners to complete successfully a program we challenged the logic of,” Greece’s finance

A PEDESTRIAN passes by in front of an anti-austerity graffiti in Athens on Monday. AP/THANASSIS STAVRAKIS

minister, Yanis Varoufakis, said.

And despite the talk of deadlines, Varoufakis insisted a deal between the two sides was achievable and that visible progress could still be made within the next 48 hours despite Monday’s swift breakdown in discussions.

“We are ready and willing to do whatever it takes to reach an agreement over the next two days,” he said. “Europe will do the usual trick: It will pull a good agreement or an honorable agreement out of what seems to be an impasse....

I have no doubt that, within the next 48 hours Europe is going to come together and find phrasing that is necessary so we can submit it and move on to do the real work that is necessary.”

For all his talk about deadlines, Dijsselbloem also said there was scope for compromise provided the Greek government commits to the broad outlines of the current program, such as maintaining tight budgetary discipline.

He added that he thought it was “still feasible” that Athens would ask for an extension.

“The request for an extension only commits to one thing: that you keep to the broad lines of the program,” he said.

However, his suggestion that there was “some flexibility” built in the bailout program met with a fair degree of ambivalence from Varoufakis, who said it was a “nebulous” turn of phrase.

Varoufakis said he had been “perfectly happy to sign there and then” a plan proposed by Pierre Moscovici, the European Commission’s monetary and economic affairs official.

Details of the plan were sketchy but did apparently involve Athens putting on hold its anti-austerity measures in return for loans and the start of a six-month negotiation to a future financial arrangement.

“We were offering to refrain from implementing our program for six months and all we were getting back was a nebulous promise of some flexibility that wasn’t specified,” Varoufakis said.

Malta’s finance minister, Edward Scicluna, worried about the implications of a failure by Athens to request an extension, said: “Then we won’t meet. There won’t be anything.

It will be a disaster.” AP

Japan to give $15.5M for antiterror efforts

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OKYO—Japan says it will provide $15.5 million in development aid to support anti-terrorism efforts in the Middle East and Africa.

The move comes after the recent beheadings of two Japanese hostages by militants from the Islamic State (IS) group.

Foreign Minister Fumio Kishida said on Tuesday the contribution, about half of which Japan had already pledged, is intended to bolster counterterrorism capacity in the re-

gions affected by the group and other militants.

Earlier this year, before the hostage crisis, Prime Minister Shinzo Abe announced $200 million in non-military support for nations fighting against the IS militants that control large parts of Iraq and Syria.

Vice Foreign Minister Yasuhide Nakayama will announce the aid, to be paid through international organizations, at a conference on Thursday in Washington. AP

FEDERAL JUDGE STALLS OBAMA’S EXECUTIVE ACTION ON IMMIGRATION

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OUSTON—A federal judge in Texas on Monday temporarily blocked President Barack Obama’s executive action on immigration, giving a coalition of 26 states time to pursue a lawsuit that aims to permanently stop the orders.

US District Judge Andrew Hanen’s decision comes after a hearing in Brownsville, Texas, in January. It puts on hold Obama’s orders that could spare as many as 5 million people who are in the US illegally from deportation.

Hanen wrote in a memorandum accompanying his order that the lawsuit should go forward and that without a preliminary injunction the states will “suffer irreparable harm in this case.”

“The genie would be impossible to put back into the bottle,” he wrote, adding that he agreed with the plaintiffs’ argument that legalizing the presence of millions of people is a “virtually irreversible” action.

The federal government is expected to appeal the ruling to the 5th US Circuit Court of Appeals in New Orleans. Neither the White House nor the Justice Department had any immediate comment early on Tuesday.

The first of Obama’s orders—to expand a program that protects young immigrants from deportation if they were brought to the US illegally as children—was set to start taking effect on Wednesday.

The other major part of Obama’s order, which extends deportation protections to parents of US citizens and permanent residents who have been in the country for some years, was not expected to begin until May 19.

Joaquin Guerra, political director of the Texas Organizing Project, called the ruling a “temporary setback.”

“We will continue getting immigrants ready to apply for administrative relief,” he said in a statement.

In a 2013 ruling in a separate case, Hanen suggested that the Homeland Se-

curity Department should be arresting parents living in the US illegally who induce their children to cross the border illegally.

The coalition of states, led by Texas and made up of mostly conservative states in the South and Midwest, argues that Obama has violated the “Take Care Clause” of the US Constitution, which they say limits the scope of presidential power.

They also say the order will force increased investment in law enforcement, health care and education.

In their request for the injunction, the coalition said it was necessary because it would be “difficult or impossible to undo the president’s lawlessness after the defendants start granting applications for deferred action.”

“Judge Hanen’s decision rightly stops the president’s overreach in its tracks,” Texas Gov. Greg Abbott said in a statement.

Hanen, who’s been on the federal court since 2002 after being nominated

by President George W. Bush, regularly handles border cases but wasn’t known for being outspoken on immigration until a 2013 case.

In his ruling in that case, Hanen suggested the Homeland Security Department should be arresting parents living in the US illegally who induce their children to cross the border illegally.

Congressional Republicans have vowed to block Obama’s actions on immigration by cutting off Homeland Security Department spending for the program.

Earlier this year the Republicancontrolled House passed a $39.7-billion spending bill to fund the department through the end of the budget year, but attached language to undo Obama’s executive actions. The fate of that House-passed bill is unclear as Republicans in the Senate do not have the 60 votes needed to advance most legislation. AP

World

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nvestors will continue to support the government’s Public-Private Partnership (PPP) Program as long as there will be no repeat of Malacañang’s controversial decision on the rebidding of the 47-kilometer Cavite-Laguna Expressway (Calax) contract.

“Hopefully, this [Calax rebid] will be the sole exception,” Peter Angelo B. Perfecto, executive director of the Makati Business Club (MBC), told the BusinessMirror.

The MBC earlier echoed the concern of local and foreign business chambers that holding another auction for the Calax project—when it was already won by the consortium of Ayala Corp. and Aboitiz Group in a fair bidding—will erode the confidence of the private sector in the Aquino administration’s PPP Program.

On Monday the National Economic and Development Authority (Neda) Board, chaired by President Aquino, approved the rebidding of the Calax project, setting a new P20.1-billion minimum bid price for the premium payment.

“I believe our position and our concerns remain the same as our official statement,” Perfecto said.

There was an apparent softening in the group’s stand, however, as Perfecto said: “I believe that there remains still a level of confidence that the government will roll Continued on A2

GOLFHILL GARDENS BusinessMirror

E1 Wednesday, February 18, 2015

Golfhill Gardens YouR own gated and exclusive Residential communitY in caPitol Hills

AKING up to peaceful and serene mornings in an exclusive posh neighborhood but right at the center of the country’s premier business district of Quezon City is an ideal and attractive setting to have a home.

Rockwell Primaries opens two-bedroom units R P

This idyllic luxurious enclave with lush green scenery can awaken your zest for life every day as it smoothly drowns out the noise elements outside the city, while enhancing the sophistication and elegance, which a posh village possesses.

Just when you can no longer picture a quiet neighborhood in the bustling district in Quezon City, Megaworld, the country’s leading real-estate developer that pioneered the “livework-play-learn” township concept in the Philippines, captures that rare and precious lifestyle at Golfhill Gardens.

Megaworld is bringing in its own pool of expertise to provide future residents of Golfhill Gardens a fresh and secure living space that enchants the rapid pace of the urban lifestyle. It is perfect for those who crave for soothing views and fresh breeze to ignite one’s yearning for simplicity and privacy.

Golfhill Gardens is a six-clustered residential community situated in the known posh neighborhood of Capitol Hills, beside Capitol Golf Course.

The residential community has a lowdensity development, offering studios to two-bedroom units ranging from 30 to 72 sq m. All units come with a balcony that overlooks either the golf course, amenity areas, or the residential village.

Golfhill Gardens is also complete with amenities that family and friends can convene to hang out, have fun and stay healthy, such as children’s pool, koi pond, sitting areas, jogging path, children’s playground, picnic area with barbecue pits, fitness gym, day-care center with outdoor play area, business center, pocket gardens and function rooms.

If you are planning to go out for a weekend or a weekday break with family or friends, Golfhill Gardens is an address that provides easy access to all destinations. Set along Capitol Hills Drive, Golfhill Gardens has a direct link to Tandang Sora, Katipunan Avenue and Commonwealth Avenue, which brings you to various universities, business centers, malls, leisure hubs and 30 government agencies, including Quezon City Hall.

It is also 15 to 25 minutes away from Eastwood City, ABS-CBN, GMA, and first-rate academic institutions such as University of the Philippines, Ateneo de Manila, Miriam College, Saint Bridget School and Claret School, among others. For more security and safety, Golfhill Gardens will have its own school shuttle service to bring your children to school and back home without worries.

Community life is at its best in Golfhill Gardens. The relaxing and suburban feel of its surroundings provides residents with a sense of familiarity and belongingness, among the fast-paced bustle of the central business district.

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Bullish office market reflects economic momentum

ERCHED by scenic views of the city, 53 Benitez will be ready for occupancy by year-end.

53 Benitez is the first condo project under Rockwell Primaries with twobedroom and three-bedroom affordable premium condominium units located at the pulse of New Manila.

With the first phase nearing completion, unit owners and interested buyers will have a firsthand glimpse on the floor plan, space and overall experience of 53 Benitez.

“We understand the value and trust that customers put on our brand Rockwell Primaries, that is why we strive to ensure that the quality of our development is nothing short of exceptional. With 53 Benitez, we are offering customers affordable premium units that fit their family’s needs,” said Malou Pineda, Rockwell Primaries senior vice president.

During the open house, homeowners visited 53 Benitez to view the actual model unit at Tower One of 53 Benitez. According to unit owner Willen Tan, “My family and I are happy that Rockwell Primaries invited us to preview our home. We are very excited to move in and impressed that the developer is on schedule for turnover. This viewing opportunity was great for the whole family to see the exact size of the model unit we bought. We are thrilled to finally be a step closer to getting the home of our dreams. A standout from the walkthrough was the detailed finishes of the unit,

The general look and finishing of a home unit of 53 Benitez in New Manila.

which is exactly what we want.”

A mid-rise enclave near enough to major malls and learning institutions in Quezon City and San Juan, 53 Benitez provides the safety, exclusivity and convenience that the Rockwell brand is best known for.

53 Benitez boasts unique design innovations of floating corridors and bridgeways to ensure the abundance of lighting and ventilation.

The property will feature two tow-

ers, each with seven residential floors and unit options of two or three bedrooms with at least two toilet and bathrooms per unit. The property will also include wellness and recreational amenities, such as two adult and kiddie pools, a club house, salon, kid’s playground and a garden.

“We are proud to say that we are on schedule to turn over the keys to our first home owners this

December. It is our vision to make the Rockwell Primaries brand accessible to Filipino families and individuals who are looking for an affordable premium property. In addition to that, we’ve got a lot of exciting things planned for Rockwell Primaries in 2015, which will be announced in the next few months,” added Pineda.

OSY economic momentum is reflected in the current global office status. In a recent study released

by CBRE, “Cost Increases Signal Economic Momentum,” over half of 126 office markets saw annual increases in prime occupancy costs. From these, 13 saw increases of at least 10 percent, led by Dublin, Manila and Seattle (Suburban).

Asia dominated the top 10 list of most expensive markets, with Hong Kong (Central) at second place, Beijing (Finance Street) at third, Beijing (CBD) at fourth, New Delhi (Connaught Place-CBD) at sixth, Hong Kong (West Kowloon) at seventh, Tokyo (Marunouchi Otemachi) at ninth, and Shanghai (Pudong) at 10th. London (West End), meanwhile, remained the most expensive market. Other markets include Moscow at fifth and London City at eighth place.

Regionally, the Americas registered a 4.1-percent year-per-year change in occupancy cost, while Europe and Asia Pacific registered 0.3 percent and 2.8 percent, respectively.

The increase in occupancy rates can be attributed to the recovery and positive outlook on the economies of the markets. Demand likewise remains high, with global, multinational organizations looking for highestgrade, prime-located properties that will attract top talent. These companies, in expense, are willing to “pay the price” for their expansions.

Corporations will continue to focus on Asia-Pacific as a key region for business growth and expansion this 2015, according to CBRE. The unemployment rate in AsiaPacific markets is low and will range from 1 percent to 7 percent in 2015. Job growth in the coming year will be above the five-year average in most markets.

The strongest growth will come in Southeast Asian markets, including the Philippines and Malaysia, which are projected to see growth of 4.3 percent and 2.4 percent, respectively.

“Cost efficiency and a professional labor pool—these remain as the top drivers for multinationals in expanding their operations within or outside their home countries. As with any other industry, there’s a price for this and, gladly, these companies are willing to pay for it,” shared Rick Santos, chairman, founder and CEO of CBRE Philippines.

The increase in prime office occupancy costs, at a 2.5-percent annual rate for the 12 months ending Q3 2014, mirrors the gradual, multispeed recovery of the global economy. “As recovery continues, the demand and power to expand will likewise increase. When this happens, Asia-Pacific, with highlight to the Philippines, will benefit greatly,” said Santos.

CBRE Group Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real-estate services firm.

With over 37,000 employees, CBRE serves real-estate owners, investors and occupiers through more than 300 offices and 50 countries worldwide.

In the Philippines, CBRE has established its presence in 1994 and has emerged as the leading real-estate service provider through its comprehensive portfolio of offerings: corporate agency and brokerage, commercial office leasing, BPO/callcenter solutions, residential sales and leasing, research and consultancy, valuation and advisory, capital markets and asset services.

PROPERTY www.cbre.com.ph

www.rockwellprimaries.com.ph

E1

On ‘Money’ and manny

Sports BusinessMirror

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| Wednesday, February 18, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

THE world wants to know if the super fight between Floyd Mayweather Jr. (left) and Manny Pacquiao will really push through. AP

MEGA FIGHT REMAINS A MYSTERY

ON ‘MONEY’ AND MANNY

By Bill Dwyre

O

Los Angeles Times

NCE upon a time, not long ago, there were two boxers named Manny and Floyd. Their fairy-tale story is much like that of The Three Little Pigs, because it features lots of huffing and puffing.

To date, we still have no idea if any houses will get blown down. Actually, we still have no idea about anything.

This is supposed to be the week that the big announcement will be made. It will say that the boxing world will finally get the big one, the mega-show, the event that will rock the world. Ta-da.

Mayweather-Pacquiao.

Of course, it was supposed to be announced last week. Also, the week before.

So we wait, held hostage by, from all reports, Floyd Mayweather Jr., whose whims are as legendary as his ability to duck punches. (Notice we didn’t say throw them). Manny Pacquiao, we are told, has signed off on all the details, has even agreed to take the short end of a roughly 60-40 purse cut. That sounds reasonable because, if you know Pacquiao, that’s what he is.

Reasonable. Sometimes to the point of being a soft touch.

People praise Mayweather’s ability to bob and weave inside a boxing ring. Apparently, he is even better at that when dealing with lawyers, fight promoters and TV executives.

Maybe this isn’t Floyd’s orchestration. Maybe the long delay and the daily tease is the brainchild of Mayweather’s manager, the new godfather of the sport, the seldom-seen, rarely quoted, master of mystery, Al Haymon.

Haymon now controls an increasing percentage of the sport’s stars, most of them acquired after other promoters had built them into stars.

But, hey, nobody said life was fair. Especially boxing life.

Maybe Mayweather just doesn’t want to do this fight and public opinion has overwhelmed him. Certainly, the money is hard to turn down, especially if you have nicknamed yourself “Money” and like to bet six figures on the over-under in the Pro Bowl. Some estimates put this fight in the $250 million-purse category and in the $100 pay-per-view strata.

It is mind-boggling that anyone would even ponder sidestepping that. It is the kind of fight where each corner will need a trainer, a cut man and an IRS agent.

Maybe the delay is much simpler. Maybe Floyd is trying to decide to which children’s hospital he will donate his purse. Or maybe his lawyers

haven’t had time to set up a future bail escrow fund.

Mayweather has a 47-0 record and cherishes that zero. Pacquiao hasn’t got that kind of pressure. He’s been beaten a few times and even sent to la-la land by Juan Manuel Marquez, whose knockout punch was so lethal that it left a packed arena at the MGM Grand shocked and fearing for Pacquiao’s health.

Maybe Mayweather sees that, plus the silly wrong decision that Tim Bradley got in his fight win over Pacquiao, as a sign that he needs a more worthy opponent than Pacquiao, one with a zero in his record.

Hard to find. Leo Santa Cruz is too small, Gennady Golovkin is too big and too good and Andre Ward is too big and too rusty.

If Mayweather really doesn’t want this fight, but still wants the money, the solution is simple. Just announce the fight, figure out a way to sell the tickets as non-refundable, and then tear a calf muscle a week before the fight. Calf muscles are hard to confirm, and the fightcancellation news conference could include some words of regret that the children’s hospital won’t get its money.

Outrageous? Impossible? This is boxing, folks.

Consider the public eagerness to see this fight. At least that was the case four or five years ago. Some reports say the interest level is still driven solely by people wanting to see Mayweather resting on his back in the ring, as the referee counts to 10. A personal survey debunks this. Only 80 percent cited this as their viewing goal.

In the meantime, this fight—hyped for years without one iota of real substance—has turned our boxing writer corps into a collection of parrots.

“Manny, are you gonna fight Floyd?”

“Floyd, are you gonna fight Manny?”

“When is the fight going to be?

Where? How big a purse?”

These are all legitimate reporting pursuits. But after four or five years, they are also tedious.

Sunday, in New York, a reporter found Mayweather at the National Basketball Association All-Star game and asked him the question, for the

4,356,712th time. Mayweather snarled something about this being a basketball game and not a boxing match and demanded his privacy.

They should add a clause to our Constitution’s Bill of Rights that says one of the richest athletes on the planet, whose millions come from a public whose conduit to him is the media, should be free of the burden of answering reporters’ questions when he is at a basketball game.

If this fight isn’t announced this week, look for lots of finger-pointing—promoters at promoters, lawyers at lawyers, TV people at other TV people, Haymon at his shadow. The proposed fight date is May 2, and 10 weeks is barely adequate to put together the kind of show this should be.

Also, if this is a no-go, expect the prevailing sound track to be about it being a fatal blow to the sport. That would, of course, be the same sport that has survived even after Mike Tyson bit off a piece of Evander Holyfield’s ear.

All things point now to Floyd being in a corner, against the ropes on this one. But never underestimate how fast Mayweather’s feet are.

Nor mess with the hair on his chinny chin chin.

LEBRON, CAVALIERS BEGIN

CHASE OF NBA LEADERS

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EW YORK—LeBron James isn’t used to looking up at so many teams at the All-Star break.

The Golden State Warriors and Atlanta Hawks occupy his former perch atop the standings, and Stephen Curry and Paul Millsap think that’s where their teams belong. The Western Conference is loaded as usual—so good that All-Star Game Most Valuable Player (MVP) Russell Westbrook wouldn’t even be in the playoffs if they started now.

There are three teams between the Hawks and fifth-place Cleveland in the East, putting James in the rare position of chaser.

He can’t wait to try.

“I’m excited. I’m excited what our team can accomplish,” he said. “We entered the break playing some really, really good basketball; winning 14 of our last 16. I’m going to take these next couple of days off and get back in the gym on Wednesday a little bit, go hard on Thursday and get ready to play Washington on Friday.”

The National Basketball Association (NBA) has a longer midseason break than usual this season, with play not resuming until Friday. That gives Westbrook extra time to rest after pouring in 41 points on Sunday in the West’s 163-158 victory at Madison Square Garden.

His Oklahoma City Thunder have overcome injuries to he and Kevin Durant to win three straight, but they are still just outside the West’s top 8. No such worries for the Warriors, who rolled into the break with a 42-9 record and an MVP candidate in Curry.

“It’s fun right now. We have a great team that has aspirations this year. I think it’s something that we’re poised to go after,” Curry said.

“You want to just embrace the higher expectations that we put on ourselves and that are surrounding our team. We talk about what we’re trying to do this year. We want to back it up.”

It won’t be easy, with challenges throughout a rugged West where

defending champion San Antonio will try to mount a charge from seventh place.

The East was widely expected to come down to Chicago and Cleveland, and maybe it still will. Besides the Cavaliers’ strong run to the first-half finish, with James looking healthy and Kevin Love appearing more comfortable, the Bulls won their last four to surge into third place.

Neither is likely to catch the Hawks, who rode an undefeated January to a 43-11 record. Their balanced team play put four players in the All-Star Game, and in two months they can try to prove it would work in the postseason.

“I’m not going to look too far ahead,” Millsap said. “We’re going to try to take care of the regular season first, but we feel like there’s still room for improvement. We still feel like we haven’t played our best basketball. It’s shocking to say, but we feel like we can still get better and still have a lot to work on.”

Here are some things to watch when play resumes this week: TALKING TRADES: The trade deadline is Thursday afternoon, and teams such as Cleveland and Memphis have already shown this season how the right moves can pay off.

MORE MELO: With the Knicks last in the league and the All-Star Game in his home arena over, Carmelo Anthony will have to decide how much more to play—if he does at all—after battling a sore left knee much of the season. AP

LEBRON JAMES and his Cleveland Cavaliers are winners of 14 of their last 16 games before the AllStar break. AP

sports

CHINESE NEW YEAR IN BINONDO Children join the Filipino-Chinese revelry welcoming the Year of the Wood Sheep, highlighted by the traditional lion dance at Megaworld’s Lucky Chinatown Mall, one of the centers of festivities for the Chinese New Year celebration in Binondo, Manila. ALYSA SALEN

OIL GAINS ANEW AS SUPPLY GLUT Real estate, auto consumers STARTS TO THIN drive retail-lending growth

Editor: Tet Andolong

W

P25.00 nationwide | 7 sections 32 pages | 7 days a week

‘Calax should be sole exception’

4 RULES TO KEEP TECHNOLOGY FROM RUINING YOUR RELATIONSHIP D

TfridayNovember 18,18, 2014 Vol. 10 Wednesday, February 2015 Vol.No. 1040 No. 132

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M.B.C. SAYS INVESTORS TO CONTINUE SUPPORTING PPPs IF THERE WILL BE NO REPEAT OF CALAX MESS

INSIDE

EAR Lord, these miracles continue through the centuries. The wave of healings that started with You in Nazareth during Your public life. Those miracles were the clear sign not only of Your divine power, but also of Your loving concern for the good of all those who were afflicted by whatever illness or handicap, or who were harassed by demonic possession. Even up to this time, the wave of healings continue as in Your very word, You said, “Your faith has healed you.” Amen.

A broader look at today’s business

c1

il traded at the highest price in almost two months in London, as Organization of Petroleum Exporting Countries (Opec) ministers signaled confidence that the market can sustain its rebound.

Futures advanced as much as 1 percent, gaining for the third time in four days. There’s a sense of optimism in rising prices and the trend has changed over the past two weeks, Qatar’s Energy Minister Mohammed bin Saleh Al Sada said on Monday. The global supply glut is smaller than a previously estimated 1.8 million barrels a day, according to Ali Al-Omair of Kuwait, the third-largest producer in the Opec.

Oil is recovering from the lowest prices in almost six years, as drillers in the US, now pumping crude at a record pace amid a shale boom, reduced the number of active rigs to the fewest since August 2011. The market is shifting its focus to tightening supply, according to Standard Chartered Plc. “We’ve seen the rig numbers, that will impact estimates going forward,” David Lennox, a resource analyst at Fat Prophets in Sydney, said

PESO exchange rates n US 44.2510

See “Oil,” A8

R

By Bianca Cuaresma

etail lending remained buoyant in the third quarter, broadly in sync with the continued expansion of the $272-billion economy, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday.

Latest data from the central bank show consumer loans extended by universal, commercial and thrift banks across the Philippines aggregated P849.6 billion at end-September 2014.

This was 5.7 percent higher than loans of only P804 billion at end-June the same year.

Compared against the comparable quarter in 2013, the consumer loans in September represented a 21-percent growth from only P702 billion at end-September 2013. The central bank attributed the rise in consumer loans to the increase in residential real estate and auto loans. The BSP also said credit-card loans also rose, albeit at a slower pace during the period.

Residential real-estate loans continued to account for the largest bulk of the consumer-loan portfolio of the various lenders, at P382.2 billion, at the end of the third quarter last year, growing

from the P306.39 billion residential real-estate loans in the same period the previous year.

This was followed by the share of auto loans that accounted for P217.35 billion of the total consumer-loan pie. This, too, represented a robust expansion from only P181.12 billion at end-September 2013 and the P2017.04 billion the previous quarter.

Credit-card receivables, meanwhile, hit P156.54 billion in end-September 2014, higher than the P151.91 billion seen in end-September 2013, but lower than the P157.22 billion during the previous quarter.

Salary loans—the newest addition to the reportage requirement of banks as they engage in consumer lending—also rose from P44.61 billion reported a quarter earlier.

As retail loans, the BSP said, banks continue to provide so-called safety nets on consumer lending. In the third quarter last year the banks’ nonperforming consumer loans represented 4.9 percent of their total consumer loans, a slight decrease from the 5 percent recorded in the quarter earlier. The BSP said soured, or nonperforming loans, at this level remain “manageable.”

PHL TO IMPORT 500,000 MT OF RICE TO BEEF UP BUFFER

By Alladin S. Diega Correspondent

T

he Philippine government said on Tuesday it will import 500,000 metric tons (MT) of rice to beef up its buffer stock for the lean months, which will start in July. “ The National Food Authority [NFA] Council met last February 13 [of this year] and agreed to import a maximum of 500,000 MT of rice,” the NFA said in a statement.

The Philippines would purchase the volume via a government-to-government deal, which requires an existing executive agreement for a country to participate in the bidding. Currently, only Vietnam, Thailand and Cambodia have a rice-purchase agreement with the Philippines.

Under the terms of reference, the See “Rice,” A2

n japan 0.3736 n UK 67.9961 n HK 5.7067 n CHINA 7.0818 n singapore 32.6214 n australia 34.3964 n EU 50.2337 n SAUDI arabia 11.7955 Source: BSP (17 February 2015)

News

BusinessMirror

Wednesday, February 18, 2015

A2

Rail system. . .

Continued from A8

the Philippine National Railways’ right-of-way which starts in Caloocan City and ends in Buendia, Makati City. It will connect the Nlex and the Slex to decongest traffic in Metro Manila.

The Neda Board, chaired by President Aquino, also approved the expansion of the Tarlac-PangasinanLa Union Expressway (TPLEx) project of the DPWH from two (one lane per direction) to four lanes (two lanes per direction). The project entails an estimated government support of P2 billion.

Full project cost for the TPLEx Ultimate Stage is P24.3 billion for the design, financing, construction and operations and maintenance of the 88.5-km expressway from the terminus of the Subic-Clark-Talac Expressway in Tarlac City to Rosario, La Union.

The planning body also gave its go-signal to the rebidding of the Cavite-Laguna Expressway project of the DPWH, for the “highest premium” for the government, with a floor price of P20.1 billion. The third PPP project approved by the Neda Board is estimated to cost P35.4 billion.

With a total of 47.018 kms, the project will start from the Cavite Expressway in Kawit and will end at the Slex-Mamplasan Interchange in Biñan, Laguna.

There will be nine interchanges in areas, such as Kawit, Daang Hari, Governor’s Drive, Aguinaldo Highway, Silang, Santa Rosa-Tagaytay, Laguna Boulevard, Technopark and a toll barrier before Slex.

Also approved by the Neda Board were the P5.09billion Panguil Bay Bridge Project and two projects under the North-South Railway masterplan.

The Panguil Bay Bridge Project, which will be undertaken by the DPWH, involves the construction of a bridge across Panguil Bay connecting Tangub City in Misamis Occidental and the municipality of Tubod in Lanao del Norte. It is expected to reduce travel time along the 100-km national road between Ozamiz City, Misamis Occidental, and Tubod to 37 minutes from 2.5 hours.

The project’s total estimated cost will be fully financed by the government. Construction of the bridge is expected to begin this year and will be finished by 2018.

The government has awarded nine PPP contracts since the program was launched in 2010. The Aquino administration aims to sign at least 15 PPP contracts by the time the President steps down from office in 2016.

news@businessmirror.com.ph

‘Calax should be sole exception’ Continued from A1

out more PPPs without such similar issues.”

This is a welcome remark for Malacañang, which expressed confidence that the business sector will also get to appreciate the wisdom of President Aquino’s decision.

“Rebidding is based on legal grounds that can stand scrutiny,” Communications Secretary Herminio B. Coloma told the BusinessMirror. “We believe this will allow the government to maximize the economic gains from the project.”

The Ayala-Aboitiz consortium won the initial bidding for the project with an P11.6billion tender last year.

But Mr. Aquino decided to scrap the result of the first bidding and reauction the Calax project after the winning bidder, Team Orion of the Ayala-Aboitiz, and the losing bidder, San Miguel Corp.’s Optimal Infrastructure Development Inc. (Oidi), which offered a higher P20.105-billion premium payment, assured they would not go to court if the project is rebid.

San Miguel infrastructure arm was disqualified from the first bidding due to an alleged defective bid security, which was said to be four days short of the required cover period. But Oidi petitioned Malacañang to reconsider its offer.

Initially indicating his inclination to

Rice. . .

rebid the project, President Aquino then cited foregone revenues from San Miguel’s offer of P20 billion if the government accepts the winning bid of P11 billion tendered by Team Orion.

At the annual Foreign Correspondents Association of the Philippines Forum last October 22, Mr. Aquino admitted he was “inclined” to rebid, saying he would have some explaining to do if he foregoes the P9-billion difference that could bankroll other government projects.

“Anyway, ’yung Calax, what is the fundamental issue there? In the bid documents submitted and the portion, which is more or less a template, San Miguel [position] is…there was a typographical error of parang a lack of four days in the bid security document. The DPWH asked for a clarification—a clarification by the ANZ Bank [Australia and New Zealand Banking Group]—and San Miguel, itself, stated that their bid security was good for 180 days as opposed to 176,” Mr. Aquino recalled.

Mr. Aquino added that “allegedly... the bid documents were returned to San Miguel and they opened it up before the media. They said that their bid would have been over P20 billion, if I remember it correctly, versus the winning bid of about P11 billion. Now, if we accept the winning bid at this time when there is an allegation

that there was a much superior bid, then we will have to explain to the people the P9-billion difference that we forego. We get the infrastructure; we get a premium of P20 billion allegedly from one bid, or an P11-billion premium from another bid.

Now, at the end of the day, we have to protect the people’s interests.”

Before this, the MBC, American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce Philippines, Canadian Chamber of Commerce of the Philippines, Employers Confederation of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines Inc., and the Management Association of the Philippines had issued a joint statement seeking to dissuade President Aquino from ordering a rebidding of the Calax project.

“While the PPP Program encountered some difficulties in its initial stages, it has since begun to catch up, with high-impact projects being steadily rolled out, catching the attention of domestic and international investors. It is imperative that this pipeline be clear of any blockages and inconsistencies if we are to protect the credibility of this program and our procurement system as a whole. In light of this, the proposed rebidding of the Cavite-Laguna Expressway would

be an inopportune and ill-advised decision that would surely have a negative impact on our improving standing in the investor community,” the joint statement read.

It asserted that the Department of Public Works and Highways had conducted the bidding of the Calax with “complete transparency and fairness” and in full compliance with the build-operate-transfer (BOT) law, thus, rebidding the project would have no legal basis.

“We share the concern of our colleagues in the private sector that a disregard of the present rules through a rebid will adversely impact investor confidence in the PPP Program and in our bidding procedures…. Thus, we call on the government to remain consistent with the provisions of the BOT law, not just in this particular case but also for the other projects in the pipeline,” the business groups’ statement added.

Asked if the government has plans or incentives lined up to regain business confidence in joining future PPP biddings, the outcome of which could also be rebid, Coloma expressed optimism that the Aquino administration can retain investors’ trust based on its track record.

“Business confidence is sustained by our investment grade rating, sound macroeconomic fundamentals and good governance,” Coloma said.

later than April 30 of this year.

“Evaluation of the offer and contract award shall be undertaken on the basis of the lowest price offered, provided that the offer conforms to the volume and delivery period requirement,” the NFA said.

NFA is required by law to have at least 15day buffer stock at any given time, and 30-day

buffer stock during the lean months of July, August and September.

Earlier, the NFA admitted that its inventory is below 13 days, which made it necessary for the government to import rice to beef up the food agency’s buffer.

Last year the Philippines imported over 1.7 million metric tons (MMT).

Despite the strong typhoons that battered major farm areas in the country, data from the Philippine Statistics Authority (PSA) showed that Philippine rice output reached 19.07 MMT last year, higher than the 18.88 MMT recorded in 2013.

This year the Philippines is targeting to produce 20.05 MMT of unmilled rice.

Continued from A1

state-run food agency will buy 250,000 MT of 25 percent brokens and 250,000 MT of 15 percent brokens, well-milled long grain white rice, with minimum volume to be offered at 50,000 MT for each variety.

The NFA also requires bidders to deliver 50 percent of the volume to be awarded not later than March 31 and the other 50 percent not

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Business

A4 Wednesday, February 18, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

briefs sc junks sen. estrada’s petition for tro

THE Supreme Court (SC) denied on Tuesday the plea of Sen. “Jinggoy” Estrada for the issuance of a temporary restraining order (TRO) to stop the anti-graft court Sandiganbayan from admitting evidence from pork-barrel scam whistle-blower Benhur Luy in resolving his petition for bail in connection with the plunder case filed against him.

At a media briefing, SC Spokesman Theodore Te said the Court did not find the need for the issuance of the TRO while resolving his petition on the merit.

However, the Court directed the Sandiganbayan’s Fifth Division to comment on Estrada’s petition within 10 days from notice.

Estrada filed the petition after the prosecution presented the testimony of Luy as finance officer of JLN during the hearing of the senator’s application for bail before the Sandganbayan’s Fifth Division.

Luy testified that he encoded the purported cash and check disbursement reports of the alleged transactions between alleged porkbarrel scam mastermind Janet LimNapoles and certain lawmakers in JLN’s computer system.

He added that he was the one who transferred all computer files in JLN Corp.’s computer system into an external drive, and that he gave the hard drive to the National Bureau of Investigation Cybercrime Investigation Unit.

The hard drive and the contents are part of the evidence against

petitioner Estrada and the subject of his motion to suppress and exclude, which the Sandiganbayan denied.

In recent petition, Estrada specifically questioned the resolutions of the anti-graft court’s Fifth Division in October and December last year denying his request to exclude the purported daily JLN Corp. cash/check disbursement reports prepared by Luy. In a nutshell, Estrada accused the anti-graft court of committing grave abuse of discretion and violating his constitutional right against unreasonable searches and seizure in denying his plea. Joel R. San Juan

court: ejercito ‘guilty’ of campaign overspending

THE Supreme Court (SC) on Tuesday affirmed with finality its decision disqualifying the election of Laguna Gov. Emilio Ramon “ER” Ejercito after having been found guilty by the Commission on Elections (Comelec) of campaign overspending during the 2013 election.

At a media briefing, SC Spokesman Theodore Te said the magistrates denied the motion for reconsideration filed by Ejercito seeking the reversal of its November 25, 2014, decision during its regular en banc session on Tuesday.

“In the matter of... Emilio Ramon “ER" P. Ejercito v. Commission on Elections and Edgar San Luis) the Court denied the motion for reconsideration filed by petitioner Ejercito of its decision dated November 25, 2015 onthe ground that the basic issues raised in the motion for reconsideration had already been passed upon and that no substantial new arguments had been raised to merit a consideration,” the SC ruled. Joel R. San Juan

Govt revokes Sulpicio Lines’s CPC, limits firm’s authority to ship cargo

T

By Lorenz S. Marasigan

a hard but fair decision. We’re very much willing to support the shipping industry but not the expense

of passenger safety,” he said in a news briefing.

The certificate of public convenience (CPC) of Sulpicio Lines, now called Span Asia Carrier, was revoked, seven years after MV Princess of the Stars sank off the waters of Romblon.

“So far, no shortage has come up. It’s a deregulated environment, hopefully the operators could fill in the demand, franchise is not even difficult to get.

Hopefully, new players [could be able to] see an opportunity,” Abaya said.

The decision of Marina means that operations of Span Asia will be limited to only “cargo operation.”

The MV Princess of the Stars sailed from Manila at 8 a.m. on June 20, 2008, bound for Cebu City but sank off Sibuyan Island, Romblon, on June 22 after being battered by strong winds and big waves brought about by Frank.

The fatal incident took the lives of 851 passengers and crew members of the ship. Only 32 survived.

The Span Asia Carrier was also slapped with a mere fine of P800 for carrying endosulfan, a corrosive substance, without a special permit.

However, Marina dismissed the complaint against the officials and crewmembers of MV Princess of the Stars for “lack of evidence.”

agreement] totaling 323 accounts with an aggregate potential deloading capacity of 617 megawatts [MW],” Meralco Head of Utility Economics Larry Fernandez said in a text message.

The five largest ILP participants are SM Prime Holdings Inc. (57.96 MW), Robinsons Land Corp. (23.15 MW), Waltermart Malls (14.30 MW), Belle Corp. (10 MW) and Rustans Supercenters Inc. (8.66 MW).

The House of Representatives is the only captive customer of Meralco from the government sector that has, so far, signed up in the program.

“We have not announced the details of the dry run so that

we may better assess the participants’ level of preparedness,” Fernandez added.

The government is banking on the success of ILP to address the power shortage anticipated to happen in the summer months this year.

With the ILP, power supply from the grid that will not be consumed by participating customers will be available for use by other customers within the franchise area. Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the anticipated power crisis next year.

The program will only be part of the answer to the looming power shortages next summer. The ILP, likewise, does not guarantee zero brownouts, as it will only be implemented during the red-alert level of the power supply.

A red alert means there is a supply deficiency. Separately, the DOE continues to encourage more ILP participants and the adoption of energy-efficient practices.

With the ongoing progress of the ILP, the DOE is set to ramp up the importance of energy efficiency and conservation to address the shortand long-term power requirements of the country.

ransportation Secretary Joseph Emilio A. Abaya said on Tuesday that the decision of the Maritime Industry Authority (Marina) to revoke Sulpicio Lines Inc.’s authority to ferry passengers is a “hard but fair decision.”

“It just shows that passenger safety is very important for government. We are willing to make

Meralco sets ILP dry run this week

By Lenie Lectura

T

HE Manila Electr ic Co. (Meralco) will conduct a dry run of the Interruptible Load Program (ILP) this week, an official said on Tuesday.

“Upon instructions of the Department of Energy [DOE], we are planning to conduct a dry run of the ILP within this week. The test is intended to involve all customers with signed MOA [memorandum of

nomy

sMirror

briefs lawmakers’ support for bbl passage wanes A House leader on Tuesday admitted that the majority coalition support for the proposed Bangsamoro basic law (BBL) has dwindled in the aftermath of the Mamasapano incident that killed 44 members of the Philippine National Police-Special Action Force (PNP-SAF) on January 25.

Deputy Speaker and Nationalist People’s Coalition (NPC) Rep. Giorgidi Aggabao of Isabela, at a news conference, said the majority bloc’s support, which include the NPC, is waning.

“The environment [in the Lower House] is not very favorable [for the passage of BBL]. This is a serious matter, this is a very serious matter,” he said.

“Our party was in favor of the BBL prior to the Mamasapano incident. But, after what happened, we called for our members to give their side in a caucus. I suggested coming out with a resolution expressing our solidarity with the nation and the bereaved families. Some others said we should go beyond that and ask for a suspension on BBL hearings,” Aggabao said. Jovee Marie N. dela Cruz

binay to miaa: scrap p550 ofw terminal fee VICE President Jejomar C. Binay on Tuesday joined the call to stop the imposition of a P550 terminal fee for overseas Filipino workers (OFWs), and asked the Manila International Airport Authority (Miaa) to suspend its decision to integrate the amount in OFW airline tickets.

Binay said the edict of the Miaa contravenes the law that provides

news@businessmirror.com.ph A5 exemption from payment of travel tax and airport fee for OFWs. “I write with utmost urgency to seek the suspension of Miaa Memorandum Circular [MC] 8 directing the integration of the P550 International Passenger Service Charge into the airline tickets at the point of sale insofar as it directly affects our overseas Filipino workers,” Binay said in a letter to Miaa General Manager Jose Angel Honrado.

“While I fully understand the primary objective of Miaa MC 8 to promote smoother, seamless, convenient, safe and hassle-free travel experience at all our airport terminals, the integration of the IPSC into the airline tickets unfortunately has adversely affected the rights of our OFWs under Republic Act (RA) 8042, as amended by RA 10022, otherwise known as the “Migrant Workers Act of 1995,” Binay, also presidential adviser on OFW Concerns, said. Recto Mercene

north cotabato farmers get support for peace, development

TO promote peace and development in Mindanao, the Department of Agrarian Reform (DAR) recently launched livelihood projects under the Payapa at Masaganang Pamayanan program.

Five different organizations benefitted from the project, with each of the five organizations receiving P300,000 worth of farm inputs and other enterprise development projects.

These are the Kisante Fisheries Association, Kisante Flower Growers Association, Bulacanon Irrigators Association, Bato Farmers Association and Sto. Niño Farmers Association, says Provincial Agrarian Reform Program Officer II Marion Abella. Jonathan L. Mayuga

SPI power plant in Mindanao sets maintenance shutdown

S

TEAG State Power Inc. (SPI) said on Tuesday it will shut down its 210-megawatt (MW) Mindanao coal-fired power plant until next month.

Unit 1 of the power facility will be on preventive maintenance shutdown from February 19 to March 2.

Unit 2 is also scheduled to undergo similar maintenance procedure from February 21 to March 16.

SPI Power Plant Manager Dr. Carsten Evers said the two units will be on planned outage during

the period in order for SPI to carry out the necessary unit inspection and maintenance activities. “These maintenance activities are part of the company’s commitment to sustain quality customer service by way of ensuring that the power plant is able to optimize its long-term operations and produce the power needed

to sustain Mindanao’s growth and development,” Evers said.

He added that the maintenance schedule has been carefully planned and closely coordinated with the National Power Corp. and approved by the grid operator, the National Grid Corp. of the Philippines.

“We have closely coordinated this schedule with our partners in the power industry in order to minimize any impact on the island’s volatile electric power-supply condition,” the SPI official said. SPI hopes to complete the maintenance activities as planned and within schedule.

SPI’s power plant is at the Phividec Industrial Estate in Mis-

amis Oriental. The power plant is composed of two identical powergenerating units, each with a net generating output of 105 MW. Since the start of its plant operations in November 2006, SPI has delivered more than 11.5 billion kilowatt-hours of electricity to the Mindanao grid, representing about a fifth of the island’s total power supply.

SPI is owned by the German company Steag GmbH. SPI is a leader in advance coal-power generation technology and one of the pioneers in operating and maintaining a highly efficient and reliable coal-fired power plant in the country.

BPO firm to hire 10K more Pinoy workers

By Roderick L. Abad

B

USINESS-Process outsourcing (BPO) firm Accenture is hiring over 10,000 employees in the Philippines, bringing its total talent pool to around 36,000 by the end of the fiscal year.

Jesper Madsen, Accenture human resources head for the Philippines, told the BusinessMirror the move is in line with the firm’s continuous global expansion.

“We’ve been operating here for 30 years, and we have a success story here,” he said. “They are doing a great job for our clients locally and worldwide. So the growth of this country will continue with that of Accenture.”

As a global management consulting, technology services and outsourcing firm, Accenture has approximately 319,000 employees the world over.

The Philippines Delivery Cen-

ter—with 35,000 people working for the company—is the second-largest in Accenture’s Global Delivery Network. Recruitment-wise, the multinational BPO provider hires more than 90,000 annually worldwide.

While the BPO firm seeks to absorb more new workers, it also intends to keep its exiting employees to stay and assume available slots.

“Our attrition here is below the market norm,” Accenture chief human resources officer Ellyn Shook

said without citing the exact figure.

“We’d like to still capture a portion of that to fill some of those jobs.”

Employing outgoing Accenture workers, she pointed out, is important given their familiarity with the organization’s operations and culture.

In this view, Shook revealed that the Accenture Careers Marketplace tool—wherein employees can search and apply for open roles across the company—will be made available to Filipino employees next month.

Opinion BusinessMirror

A6 Wednesday, February 18, 2015

editorial

Studies on how not to do the job

I

f the government decision-making on the Ninoy Aquino International Airport (Naia) Terminal 3, the Camp John Hay Property, and the North Luzon Expressway (Nlex)-Tondo Extension project is a demonstration of the way the government deals with infrastructure issues, it explains why infrastructure facilities in the Philippines take decades to build. Further, it shows why they are riddled with defects, despite the recognition of their urgency and indispensability to our country’s economic development.

After planning the Naia 3 in 1997, the government entangled itself with all sorts of legal problems with the private builder Philippine International Air Terminals Co. (Piatco)-Fraport. These problems frustrated the scheduled soft opening of the completed structure in 2002, stretched the period of total idleness to 2008—when the government began operating the facility—and now has been told by the Court of Appeals (CA) that it could not take over until it compensated the private owner.

The Camp John Hay Property involved the government Bases Conversion and Development Authority (BCDA) entering into a contract with the private sector Camp John Hay Development Corp. (CJHDC) in the early 1990s for the development of the resort. Before long the characteristic legal problems arose over payments for rent and incomes foregone. The CA last week decided that the BCDA had no right to collect back rents. On the contrary, it must compensate CJHDC for its failure to comply with some of its contractual obligations.

The Nlex-Tondo Extension project involved an unsolicited proposal from Metro Pacific Investment Corp. (MPIC). Accepted in the 1990s, the proposal was put up by the government to a Swiss Challenge some time later, but no bidders responded. The project then went into hibernation, until now, when MPIC decided to go ahead with its implementation, obviously hoping no impediment crops up along the way.

Clearly, something is wrong with this kind of government decision-making. After 13 years the Naia 3 is still in limbo; so is Camp John Hay, after a similar length of time. The Nlex-Tondo project is being saved from oblivion only by private-sector initiative.

The first thing wrong with this kind of government decision-making is its utter lack of a sense of urgency. Untiring references to completion periods of three or four years notwithstanding, the government seems happy to show results within periods of 25 years. At the rate we are going, not only will we never catch up with our neighbors, but we will fall even farther behind.

Second, the government does not care about project planning, though it is obsessed with annual macro planning. Lack of detail in macro plans understandably gives rise to unwelcome initiatives by the other party, generating controversy.

Finally, the government has no respect for its contractual obligations because it thinks it is too powerful to be resisted by the other party. Wrong. The other party may be puny in comparison with the gigantic government, but it can resist government power, as it has shown in various instances.

This kind of government behavior is anathema to the requirements of accelerated economic development. It must change.

What our country needs is a government that delivers on its promises, now and not 25 years from now. Infrastructure that is well conceived and well constructed, built through the collaborative endeavor of the public sector and the private sector properly, underpins the economy’s long-term growth.

Since 2005

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Contractual workers of govt agencies get social-security coverage Susie G. Bugante

All About Social Security

C

ontractualization of the labor force is a global phenomenon that has been happening for some time now.

It means replacing regular workers with temporary workers who receive lower wages with fewer benefits or none at all. It is practiced not only in the private sector—even the government bureaucracy employs contractual or job-order (JO) workers who, heretofore, were neither Social Security System (SSS) nor Government Service Insurance System members.

Through the efforts of the Department of Labor and Employment, new regulations providing benefits for contractual employees were enforced since 2011. Along these lines, the SSS actively pursued the coverage of contractual and JO workers of government

agencies by entering into memoranda of agreement with various government departments and local government units (LGUs). Early last year the SSS inked key partnerships with two national government agencies, namely, the Department of the Interior and Local

Government (DILG) and the Department of Social Welfare and Development, that employ 100,000 and 12,000 workers, respectively, as JO and contractual hires.

This agreement was followed by many more, including the Department of Public Works and Highways Zamboanga District, Western Mindanao State University, Philippine Coconut Authority Zamboanga Research Center, Zamboanga City government, DILG Region 3, Metropolitan Manila Development Authority with 3,000 workers and recently, the LGUs of Tulunan, Kidapawan and Taytay, Palawan.

Through their coverage as selfemployed SSS members, JO and contractual workers hired by state agencies gain access to financial assistance during times of SSScovered contingencies, such as maternity, sickness, disability, retirement or old age and death. Under the agreements forged by the SSS

and the various state agencies, the government offices facilitate the SSS registration and regular remittance of SSS contributions of their JO and contractual personnel. The SSS, on the other hand, assigns a representative or account officer from the nearest SSS branch to assist with the SSS needs of the government offices concerned.

This year the SSS will continue its efforts to reach out to JO and contractual workers in the government to ensure they enjoy social-security protection under the law.

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

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

Developing economies increasingly vulnerable in unstable global financial system

By Yilmaz Akyuz Inter Press Service

G

ENEVA—After a series of crises with severe economic and social consequences in the 1990s and early 2000s, emerging and developing economies have become even more closely integrated into what is widely recognized as an inherently unstable international financial system.

Both policies in these countries and a highly accommodating global financial environment have played a role. Not only have their traditional cross-border linkages been deepened and external balance sheets expanded rapidly, but also foreign presence in their domestic credit, bond, equity and property markets has reached unprecedented levels.

New channels have thus emerged for the transmission of financial shocks from global boom-bust cycles.

Almost all developing countries are now vulnerable, irrespective of their balance-of-payments, external debt, net foreign assets and international reserve positions, although these play an important role in the way such shocks could affect them.

Stability of domestic banking and asset markets is susceptible even in countries with strong external positions.

Those heavily dependent on foreign capital are prone to liquidity and solvency crises, as well as domestic financial turmoil.

The new practices adopted in recent years—including more flexible exchange-rate regimes, accumulation of large stocks of international reserves or borrowing in local currency—would not provide much of a buffer against severe external shocks such as those that may result from the normalization of monetary policy in the United States.

And the multilateral system is still lacking adequate mechanisms for an orderly and equitable resolution of

external financial instability and crises in developing economies.

This process of closer integration was greatly helped by highly favorable global financial conditions before 2008, thanks to the very same credit and spending bubbles that culminated in a severe crisis in the United States and Europe.

The crisis did not slow this process despite initial fears that it could lead to a retreat from globalization. Integration has even accelerated since then because of ultra-easy monetary policies pursued in advanced economies, notably in the United States, in response to the crisis.

The surge in capital inflows that started in the early years of the new millennium, and continued with full force after a temporary blip due to the collapse in 2008 of the Lehman Brothers financial services firm, holds the key to the growing internationalization of finance in developing countries.

It has resulted in a rapid expansion of gross external assets and liabilities of developing economies. More important, the structure of their external balance sheets has undergone important changes, particularly on the liabilities side, bringing new vulnerabilities.

The share of direct and portfolio equity in external liabilities has been increasing. An important part of the increase in equity liabilities is due to capital gains by foreign holders. In many developing countries presence in equity markets is greater than that in the United States and Japan.

While still remaining below the levels seen a decade ago as a percentage of gross domestic product (GDP), external debt buildup has accelerated since the crisis in 2008. This is mainly due to borrowing by the private sector, which now accounts for a higher proportion of external debt than the public sector in both international bank loans and security issues. A very large proportion of private external debt is in foreign currency. There is also a renewed tendency for dollarization in domestic loan markets.

As a result of a shift of governments from international to domestic bond markets and opening them to foreigners, the participation of nonresidents in these markets has been growing. The proportion of local-currency sovereign debt held abroad is greater in many developing countries than in reserveissuers such as the United States, the United Kingdom and Japan. It is held by fickle investors rather than by foreign central banks as international reserves.

International banks have been shifting from cross-border lending to local lending by establishing commercial presence in developing countries. Their market share in these countries has reached 50 percent compared with 20 percent in developed countries.

These banks tend to act as conduits of expansionary and contractionary impulses from global financial cycles and increase the exposure of developing economies to financial shocks from advanced economies.

One of the key lessons of history of economic development is that successful policies are associated not with autarky or full integration into the global economy, but strategic integration seeking to use the opportunities that a broader economic space may offer while minimizing the potential risks it may entail. This is more so in finance than

in trade, investment and technology.

For one thing, the international financial system is inherently unstable in large part because multilateral arrangements fail to impose adequate discipline over financial markets and policies in systemically important countries that exert a disproportionately large impact on global conditions.

For another, the multilateral system also lacks effective mechanisms for orderly resolution of financial crises with international dimensions.

Thus, closer integration of several into the international financial system in the past 10 years, after a series of crises with severe economic and social consequences, is a cause for concern.

In all likelihood, these countries will be facing strong destabilizing pressures in the years ahead as monetary policy in the United States returns to normalcy after six years of flooding the world with dollars at exceptionally low interest rates.

In weathering a possible renewed instability, they cannot count on the more flexible currency regimes they came to adopt after the last bouts of crises or the reserves they have built from capital inflows or the reduced currency exposure of the sovereign.

It is important that they, as well as the international community, avoid going back to business-as-usual in responding to a new round of financial shocks, bailing out investors and creditors and maintaining an open capital account at the expense of incomes and jobs.

They need to include many unconventional policy instruments in their arsenals to help lower the price that may have to be paid for the financial excesses of the past several years They should also take the occasion to rebalance the pendulum and to bring about genuine changes in the international financial architecture.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Formalizing the informal insurers

A7

Is the Bush family brand a liability for Jeb? Albert R. Hunt

Dennis B. Funa

INSURANCE FORUM

O

ne of the amendments introduced by the amended Insurance Code is the insertion of the word “cooperatives” in Section 190, which defines what juridical entities may become insurers. For the first time in Philippine insurance history, cooperatives were statutorily recognized as being legally capable of carrying out an insurance business. Thus, the birth of “cooperative insurance.”

As of the end of 2013, there are a total of 1,137 cooperatives registered with the Cooperative Development Authority (CDA). The Autonomous Region in Muslim Mindanao (ARMM) has the most number with 126, followed by Region 3 with 120, and by Region 4 with 119 cooperatives. There are, of course, other cooperatives that are not registered with the CDA. Of the total number of registered cooperatives, 278 can be classified as credit cooperatives, 247 as producer (or production) cooperatives, and 170 as consumer cooperatives. Some of these cooperatives, the exact number of which is undetermined, are engaged in informal insurance or insurance-like activities. By “informal”, we refer to those operating outside the regulatory jurisdiction of the Insurance Commission (IC).

In other words, they are unlicensed and, therefore, unregulated. Thus, the term “informal insurers”.

With contributions sourced only from its members, cooperatives can most likely engage only in microinsurance, which is also a statutory novelty in the amended Insurance Code. Under Sections 187 and 188 of Title 6 of the amended Insurance Code, micro-insurance is where the “amount of contributions, premiums, fees or charges, computed on a daily basis, does not exceed sevenand-a- half percent [7.5%] of the current daily minimum wage rate for non-agriculture workers in Metro Manila” and the “maximum sum of guaranteed benefits is not more than 1,000 times of the current daily minimum wage rate for non-agricultural workers in Metro Manila.”

There are several modes by which these informal insurers may be licensed as insurers under the amended Insurance Code. First, as a regular insurance company in which case it will have to comply with the P1-billion capitalization requirement. If, however, it will engage in micro-insurance, it may avail of the capital incentive under a Department of Finance department order which reduces such requirement by 50 percent. Second, which is the more feasible route, is the registration of the cooperative into a Mutual Benefit Association (MBA) under Sections 403 to 423 of the amended Insurance Code. The other modes should include the affiliation of a cooperative with an existing MBA or a cooperative insurance society. This process of conversion into regulated and licensed entities is the process of “formalization”.

Recognizing the challenge posed by these informal insurers, the IC, the CDA, and the Securities and Exchange Commission (SEC) issued Joint Memorandum Circular (JMC) 01-2010, dated January 29, 2010 (Defining Government’s Policy on Informal Issuance Activities), directing the termination of all “informal insurance or insurance-like activities within one year from the effectivity” of the circular. The circular was to take effect 15 days after publication in a newspaper.

JMC 01-2010 recognized that the primary challenge posed by informal insurers is the threat faced by “the general public from unsafe and unsound insurance and informal risk-protection schemes.” Thus, the joint circular required all informal insurers “to secure a Certificate of Authority from the Insurance Commission, within two years from the

Wednesday, February 18, 2015

effectivity of the circular.” The three agencies committed to “undertake the necessary measures including the issuance of cease and desist orders, after due notice and hearing, to ensure that insurance providers are operating within the provisions of the Insurance Code.”

JMC 01-2010 expressly excluded certain risk pooling activities from the definition of insurance such as the concept of damayan or abuloy where “individuals or group of individuals voluntarily pledge and contribute a certain amount of money to a fund and the benefits are not predetermined but are contingent to the amounts collected.”

On June 25, 2010, Joint ICCDA-SEC Memorandum Circular 02-2010 was issued to deal with the “pool of funds” collected by informal insurers in their transition to formalization. It was directed that they be utilized as premium payments for those transitioning to formal insurance and as contributions for those transitioning toward licensed MBAs. It also prescribed the courses of action which may be taken against those that will not heed the call to formalize, i.e., revocation proceedings before either the SEC or CDA, without prejudice to administrative and criminal sanctions and actions under the Insurance Code.

With poor compliance toward formalization, JMC 01-2011 was issued extending the deadline to December 31, 2011. JMC 02-2011 was issued on December 12, 2011, reminding the target entities of the impending deadline. Notwithstanding, the challenge of informal insurers continues to this day.

It should also be pointed out that Republic Act (RA) 9520, otherwise known as the “Philippine Cooperative Code of 2008,” expressly recognizes that a cooperative may be organized to engage in insurance business (Article 6 [9]) and to engage in insurance activities for its members (Article 6 [7]). If so, it will be classified as a service cooperative (Article 23 [e]) which should be distinguished from an insurance cooperative which is “engaged in the business of insuring life and property of cooperatives and their members” (Article 23 [9]).

Under Article 105 of RA 9520, “[e]xisting cooperatives may organize themselves into a cooperative insurance entity [cooperative insurance society] for the purpose of engaging in the business of insuring life and property of cooperatives and their members.”

Under Article 106 of RA 9520, “cooperative insurance societies shall provide its constituting members different types of insurance coverage.” As mandated by Article 107, the insurance laws “shall apply to cooperative insurance entities organized under this code” and that “the requirements on capitalization, investments and reserves of insurance firms may be liberally modified upon consultation with the authority [CDA] and the cooperative sector, but in no case may the requirements be reduced to less than half of those provided for under the Insurance Code and other related laws.”

Dennis B. Funa is the Insurance Commission’s deputy commissioner for legal services. Send comments to dennisfuna@yahoo.com.

BLOOMBERG VIEW

T

he legacy matchup—Jeb versus Hillary—has politics aficionados salivating, or recoiling, with the first 2016 presidential votes almost a year away.

The former secretary of state, a prohibitive favorite to win the Democratic nomination, won’t simply be coronated, as some anticipate.

Already, there are internal frictions in Clinton and that recall her 2008 campaign.

The problems facing the former Florida governor are more in the open: For a candidate that much of the Republican Party establishment views as a strong front-runner, he gets surprisingly bad marks from voters.

In an NBC/Wall Street Journal national poll last month, Jeb Bush was viewed positively by only 19 percent of respondents; 32 percent viewed him negatively. By contrast, Hillary Clinton had a 45 percent positive and 37 percent negative.

Two recent Bloomberg Politics

polls, in Iowa and New Hampshire, the initial tests, are revealing.

In Iowa, among likely Republican voters, Bush has a 43-percent unfavorable rating, unusually high.

In a tightly packed race, he finishes first among New Hampshire Republican primary voters. But he is viewed unfavorably by 50 percent of the general electorate in that battleground state. Of the 22 possible presidential aspirants, only Donald Trump is perceived more negatively.

Bush’s backers counter that such early polls are irrelevant because the public doesn’t yet know his achievements as a successful conservative two-term governor or his reputation as the most substantive politician in the Bush clan. If Jeb Bush runs, these attitudes “will change when they get to know him and his record,”

says Mike Murphy, a Bush political confidant.

The negatives probably reflect views about his older brother, George W. Bush, whose presidency ended six years ago. “All they know” about Jeb, Murphy said, is that “he is the brother.”

Unsettling to some other Republican strategists is that the Bush brand itself might be problematic. The record of Jeb Bush’s father, the 41st president, George H.W. Bush, has been re-evaluated more positively: He is credited with expertly managing the end of the Cold War, the successful first Iraq War, a budget deficit deal and passing the Americans with Disabilities Act. But those are distant memories for many voters, unlike George W. Bush’s presidency.

The 43rd president remains decidedly less popular than Bill Clinton, his predecessor. In a Quinnipiac poll last year that asked who was the best of the dozen post-World War II presidents, George W. Bush tied for last place, with only 1 percent.

Jeb Bush probably would have to try to strike some distance from his brother. The most noteworthy domestic achievement of Bush 43, legislation giving prescription drug benefits to senior citizens, is hard to embrace when Republicans are

Out of pocket, out of control

O

bamacare’s goal to expand access to health care has been only half a success: More Americans have insurance, but a rise in cost sharing means fewer can use it. Copayments— those predetermined charges you pay at the doctor’s office—are a big part of the problem. In recent years, they’ve risen to the point where they no longer work as they’re meant to.

In theory, charging moderate fees to see a doctor or get a procedure gives people an incentive to consider whether they really need it. Done carefully, copays can thus reduce unnecessary spending, benefiting everyone.

That means the charges have to be just large enough to influence people’s decisions, and not so big as to keep people from getting the care they need. Yet copays have been going up significantly. In the past five years, the average price to see a primary care doctor has risen 20 percent. For a specialist it’s gone up 29 percent, and for outpatient surgery it’s up 43 percent. And that’s just for employer-sponsored insurance; on average, those covered through the Affordable Care Act’s exchanges face even higher expenses.

No wonder 22 percent of people now say the cost of getting care has led them to delay treatment for a serious condition. That’s the highest percentage since Gallup started asking in 2001. Another poll found that as many as 16 million adults with chronic conditions have avoided the doctor because of out-of-pocket costs.

The wisdom of copayments also relies on the notion that consumers understand the incentives the payments are supposed to impose.

Yet almost two-thirds of Americans don’t know what costs they face for using an emergency room or a walkin clinic, a recent survey found.

When copayments grow too big and confusing to be effective cost controls, they merely shift an ever-greater share of insurance costs away from premiums. And this undermines the

basic purpose of insurance, which is to spread the risk of unforeseen costs across populations and over time— among not just the minority who need care, but also everyone covered by the plan. Unlike premiums, out-of-pocket payments concentrate spending on the few who get sick.

Obamacare has begun to solve the problem by banning copayments on preventive care, such as immunizations, annual wellness visits and screenings for various diseases. The law also imposes a cap on annual outof-pocket payments (that includes both copays and deductibles, which are also rising and discouraging people from getting needed care), though at a level so high—$6,600 this year for an individual, $13,200 for a family plan—that few people benefit from it.

And the law subsidizes copayments and deductibles for people earning between 100 percent and 250 percent of the poverty line. For people who get their health insurance through work, however, no such protections exist.

There’s precedent for going fur-

denouncing Obamacare.

The Bush tax cuts led to soaring deficits and its jobs record isn’t one Republicans relish: Almost 21 million private sector jobs were created during Clinton’s eight years in office, and there were 7.5 million in President Barack Obama’s first six years.

Under George W. Bush, 463,000 jobs were lost.

On foreign policy, the conservative icon William F. Buckley once declared that President George W. Bush’s decision to go to war in Iraq was all-defining: “If he’d invented the Bill of Rights, it wouldn’t get him out of his jam.” That decision still looks like a jam.

On Friday Bush said he “won’t talk” about his brother’s wars in Iraq and Afghanistan.

But the association may be hard to shake. In Iowa, 50 percent of Republicans said the strength of his potential candidacy rested more on family connections than on his vision for the country or unique qualities; only one in five Democrats thought that was the case with Hillary Clinton and the connection to her husband.

The view was even more widespread in New Hampshire, where two-thirds of general-election voters said Jeb Bush’s candidacy would be based on his family connections.

ther still: Canada has disposed of almost all out-of-pocket costs for doctor and hospital services since 1984—and still spends half as much per person on health care as the US does. While Canadians are more likely to see a doctor in any given year, they’re less likely than Americans to wind up in the hospital.

Rather than ban copayments entirely, however, the US could make better use of their ability to steer people away from high-cost, lowvalue care—emergency rooms for routine treatments, for example, or brand-name drugs when generics are available. Imposing higher upfront costs for these makes sense, so long as services that provide better value are easier to afford. The government should also look at extending copay subsidies to lower-income beneficiaries on employer plans and lowering the cap on out-of-pocket costs.

Simply charging people more and more for every episode of care doesn’t automatically make the system more efficient. Copays can work well only if they’re designed to provide clear incentives. Bloomberg

2nd Front Page BusinessMirror

A8 Wednesday, February 18, 2015

BSP: NEW FOREIGN-EXCHANGE RULES TO EASE TRANSACTIONS

By Bianca Cuaresma

T

he Bangko Sentral ng Pilipinas (BSP) has institutionalized a new set of amendments to the operation foreign-exchange (FX) activities of banks in the country as part of the continuing effort for an appropriate regulatory framework for FX transactions in the country.

The central bank said the amendments include the sale of FX by authorized agent banks and affiliate forex corporations to residents, this time without need of prior BSP approval to settle net obligations to trade transactions of resident entities. The BSP further said the central bank will only require the presentation of documentary requirements.

“This policy is expected to further facilitate legitimate trade transactions and will allow the BSP to better capture data on trade transactions through reporting of gross importations,” the central bank said.

Likewise, to hasten the settlement of transactions among related entities considering current trends involving the use of a clearing unit for

payments and financial transactions, the BSP now allows for the inclusion of payment centers as a beneficiary of FX payments and remittances by Philippine resident for settlement of trade and nontrade current account obligations.

The BSP now also allows the sale of FX to Filipinos for settlement of their credit-card obligations. This, however, is only exclusive to resident credit-card companies.

“This will address cases where obligations of residents to resident credit-card companies incurred with non residents as counterparties are billed and payable in foreign currency,” the BSP explained.

The BSP also exempted peso refunds from the initial P10,000 limit on crossborder transfers in an effort to address possible breach of the limit arising from the implementation of such refund.

Other amendments include the changes in the banks’ manual of general policy including the consolidation of guidelines for reporting or importations to simplify the banks repertory requirements for better understanding and compliance.

www.businessmirror.com.ph

₧287-B Manila-Sorsogon rail system ready by 2019

I

By Lorenz S. Marasigan

NFRASTRUCTURE remains one of the priorities of the government, so much so that it targets to commercially open the P287-billion NorthSouth Railway System, which will run from Manila to Sorsogon, in a matter of five years.

With the Philippines lagging behind its peers in terms of infrastructure, Transportation Secretary Joseph Emilio A. Abaya said his office is more determined to turn plans into reality.

One of them, he said, is the multibillion-peso commuter-rail system, which will be auctioned

off sometime this year.

The first phase of the facility will involve the construction of a 36.7-kilometer narrow gauge elevated commuter railway from Malolos in Bulacan to Tutuban in Manila. It is seen to be completed by the third quarter of 2017.

The second phase, which will

extend the commuter rail up to Matnog, Sorsogon, will be completed by the fourth quarter of 2019.

“The system will be operational four years into the term of the next president. So it is critical at this point that we make the right plans and decisions and bid projects out, because it takes time before these kinds of projects to be completed,” Abaya said in a news briefing on Tuesday.

The two-phase deal will be implemented under the official development assistance and Public-Private Partnership Program.

“For a mega city like Manila, the clear consequence of a growing economy is the growing capacity of our people to own their own vehicles— and clearly, given our traffic, that should not be the way to go. The solution to that natural tendency is to develop mass transit systems,” the transport chief said. “Thus the government is investing in rails, in bus

rapid transits or BRTs, likewise, reforming the bus system.”

He said the government aims to entice Filipinos to shift to public transport system and “eventually migrate private owners into mass transit systems.”

The North-South Railway System is just one of the six transport projects approved by the National Economic and Development Authority (Neda) Board late Monday.

Among the key infrastructure projects approved include the P20billion North Luzon Expressway (Nlex)-South Luzon Expressway (Slex) Connector Project of the Department of Public Works and Highways, which will be subjected to a Swiss Challenge.

The Nlex-Slex Connector Project involves the construction and operation and maintenance of a 13.4-km, four-lane elevated expressway over See “Rail system,” A2

ABAD: DBCC TO REVIEW REVENUE GOALS ON EXPECTED LOWER B.O.C., B.I.R. HAULS

By Estrella Torres

B

udget Secretary Florencio B. Abad said the Department of Budget Coordination Committee (DBCC) will review revenue targets due to the lower collection of the Bureau of Internal Revenues (BIR) and the Bureau of Customs (BoC).

Abad,who chairs the DBCC, noted that the BIR had already revised its collection target due to the scheduled implementation of a law that increased the taxexemption cap for 13th-month pay and other bonuses.

President Aquino signed the law increasing to P80,000—from the previous threshold of P30,000—the maximum year-end bonuses that will not be subject to tax.

The BOC’s collection is also expected to fall due to the prevailing low price of oil in the international market.

“We will review the revenue targets in light of the lower collection from oil imports and the newly enacted tax exemptions,” Abad said in an interview on Tuesday following his speech at Mind Museum in Taguig.

Earlier, the BIR has reduced its collection target for the full year of 2015 by P16.9

Oil. . .

billion because of additional tax exemptions granted to taxpayers recently.

The BIR has set its collection target at P1.704 trillion, down from the previous goal of P1.721 trillion for 2015.

The BIR’s lowering of the collection target is due to the increase in allowable de minimis benefits, which are exempt from tax, that may be granted by employers to their employees.

De minimis benefits are privileges given by an employer to employees to promote the workers’ health, company goodwill and efficiency of employees.

Current allowable de minimis benefits include, among others: P750 medical cash allowance to dependents; P1,500 for a 50-kilogram rice subsidy; P4,000 uniform and clothing allowance per year; P10,000 for annual medical allowance; P300 laundry allowance; P10,000 for employees achievement award; P5,000 Christmas gifts and/or anniversary certificate; and 25-percent meal allowance for overtime work and night shift in all regions.

The increase in de minimis benefits will result in foregone revenues but will allow more benefits to workers due to higher take home pay.

Continued from A1

by phone. “There are forecasts for lower production by the end of 2015, especially out of the US, and that’s put a halt on the downtrend.”

Brent for April settlement climbed as much as 61 cents to $62.01 a barrel on the London-based ICE Futures Europe exchange and was at $61.94 at 12:08 p.m., Singapore time. The contract fell 12 cents to $61.40 on Monday. The volume of all futures traded was about 39 percent below the 100-day average.

Price ‘optimism’

West Texas Intermediate for March delivery was up 29 cents from Friday’s close at $53.07 a barrel in electronic trading on the New York Mercantile Exchange. The floor session was suspended on Monday for the US Presidents’ Day holiday and transactions will be booked on Tuesday for settlement purposes.

Opec, which supplies about 40 percent of the world’s oil, on February 9 made the deepest cut in at least six years to its monthly projection for output growth from other producers, predicting the market’s drop means US drillers will pump less than previously anticipated.

“Brent is near $62 and there’s a sense of optimism surrounding this issue,” Qatar’s Al Sada said at an annual meeting of Mesaieed Petrochemical Holding Co. US drillers reduced the number of rigs in

service by 84 to 1,056, according to Baker Hughes Inc., an oil field services company.

Companies have idled 519 machines the past 10 weeks, a 33-percent reduction, the data showed.

Rig counts

The decrease in rig counts isn’t enough to stop production growth, Goldman Sachs Group Inc. said. Lower prices may be needed to balance the market because US output could still expand by 600,000 barrels a day in the fourth quarter, compared with a year earlier, the bank said in a note on Monday.

The nation’s oil boom has been driven by a combination of horizontal drilling and hydraulic fracturing, which has unlocked supplies from shale formations including the Permian and Eagle Ford in Texas and the Bakken in North Dakota. Production averaged 9.23 million barrels a day through February 6, the most in weekly Energy Information Administration records dating back to January 1983.

Brent has technical resistance at $61.83 a barrel, according to data compiled

by Bloomberg.

That’s the 23.6 percent Fibonacci retracement of the slide from a nine-month intraday high of $115.71 in June to January’s low of $45.19. Sell orders tend to be clustered around chart-resistance levels.

Bloomberg News