BusinessMirror February 3, 2015

U.S., ALLIES TO RETAKE IRAQI CITY FROM I.S. A L UDEID AIR BASE, Qatar—Working from this sun-scorched desert base, US and allied commanders are beginning perhaps the most perilous phase of their fight against the Islamic State (Is) group: an attempt to recapture Mosul, Iraq’s second-largest city, from the entrenched militant forces.

Military officers here say air strikes over the past two weeks helped sever two crucial routes that the extremist militants used to move fighters and supplies from the Syrian border to Mosul, their self-declared capital in Iraq and most

In this January 29 photo, a Kurdish peshmerga fighter fires a weapon toward positions of the Islamic State group who are 500 meters or half a mile away, overlooking the strategic town of Sinjar, northern Iraq. AP

2006, 2010, 2012

U.N. Media Award 2008

www.businessmirror.com.ph INSIDE

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WORD OF LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSON

Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

Tuesday, February 3, 2015

B A S Saint Louis Post-Dispatch

E confront it everyday, morning and night, for one of our most basic needs—the search for food.

If your pantry is a mess, it can bookend your day in frustration.

Fortunately, it’s also one of the quickest organization projects that offers one of the biggest returns in improved efficiency and peace of mind. We turned to two professional organizers to makeover two different types of kitchen pantries.

The first one, a floor-to-ceiling cabinet with six pullout shelves was my very own challenge. The second, a closet pantry combined with a mudroom, was a neighbor’s. It took about an hour to complete the cabinet pantry, and it took two organizers about two hours to make over the larger one. Each one, however, followed the same basic steps: 1. Assess your needs. Take note of what works about your pantry. Then, list the things that make you crazy about it.

Lisa Bianco, director of marketing for the National Association of Professional Organizers Saint Louis chapter and owner of Perfectly Organized in O’Fallon, Missouri, said she starts every project with a conversation with the client about how often the items in the pantry are used and by whom.

The stuff that gets used every day needs to stay near the middle. The things that children help themselves to should be within their reach. The less often an item is used, the higher or lower up it can live.

Gretchen Bender, owner of Creative Spaces Organizing in Saint Louis, said the first question she asks is: What is your goal?

“A lot of time people have the space, but they don’t know what to do with it. They just see a series of shelves.” The organizer starts envisioning what can be grouped together, taken out and added to improve the functionality.

2. Empty it out. The next step is to empty out the entire pantry. It sounds daunting, but it’s truly the only way to get a handle on everything that is hidden there.

People will often discover they own multiples of the same product or have a backlog of expired foods.

“If you don’t see it, you won’t use it,” Bianco said.

We discovered several unopened bottles of vitamins and supplements that had been purchased with good intentions but lost in the recesses of the pantry.

3. Sort into categories. The next step is to group like items. Bianco brought a few storage containers in which she grouped all the protein bars, and fruit and nut

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LUCKY POUCH FOR THE WOOD GOAT YEAR

bars roaming around. She created a section for snacks, one for breakfast items, pasta and dinner, spices, grains/ rice and an entire shelf for baking.

4. Toss the excess and expired. First, you purge, Bianco said. Get rid of things that are stale or expired. I threw out some year-old granola and half a package of stale shortbread cookies. (I don’t even like shortbread cookies.) We also tossed the Tupperware that was missing lids and consolidated things into empty jars that kept turning up.

Taking note of the redundancy in the pantry can help cut down future costs. “It can be a money saver,” Bender said. Think about the money wasted on food that gets thrown away, excess items and impulse buys.

It can help with menu planning to keep a grocery list on the inside door of the pantry and make a note of things you needs before you shop for the week’s meals.

5. Put the puzzle back together. In the case of both the pantries our organizers worked on, they added a few storage baskets that grouped together certain items, such as teas, spices or lentils. In my pantry, Bianco added Lazy Susans for soup cans. She also added labels on each shelf as a reminder for everyone who uses the pantry.

Bianco moved the largest box of cereal to a middle shelf where our children could reach it more easily. She grouped it with the oatmeal and other breakfast foods.

She also suggested tearing the loose box tops off of boxes to make the overall space appear cleaner.

For shelves that don’t pull out, it’s important to use the vertical space, so everything is within eye level. This may require buying a few tiered shelves, she said. She added two small containers, two medium ones and two Lazy Susans that cost very little.

In the closet pantry, they added a few more storage containers. In both cases, they played with a few different ways of putting the contents back together.

“It’s like putting together a puzzle,” Bianco said.

Some pieces fit better in different configurations and it takes a little bit of trial and error.

A pantry project is a good start for those who want to become more organized, Bianco said. “It doesn’t take as long. It gets you motivated and lets you feel successful.”

In less than an afternoon and less than $50 in supplies, you can make enough tweaks in an area of the house you use every day to have a significant impact on the rest of your day. ■

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Carrying this pouch throughout the year will help attract the “1-6-8”money luck for you.

❷

TRAY OF

HARMONY Since the ruling star in the center this year is the “Conflict Star”, to help attract harmony and minimize conflict, it is best for all households to have one of this.

❸

DOOR GUARDS Since

the “Robbery Star” of the year is quite aggressive, having a pair of these Door Guards by your door will help protect your home.

❹

AGAR WOOD This wood

is reputed to be the most expensive wood in the world. There are many names for this resinous, fragrant heartwood produced by trees. The sweet, deep but balanced fragrance that it gives off soothes, calms, heals and rejuvenates the mind, body and spirit.

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Bring in some more good ch’i BACK when feng shui was regarded as only for the Chinese in the country, it was the Yin & Yang Shop of Harmony which pioneered and popularized this age-old Chinese tradition and made it accessible “outside of Chinatown”.

Yin & Yang, which opened shop in 1998 with the late renowned feng shui master and icon, Paul Lau Tak Lun, together with the mother-anddaughter team of Baby and Princess Lim Fernandez, has established itself as the preferred and sought-after choice of discerning feng shui traditionalists, advocates, and enthusiasts in the country.

A one-stop curio shop which offers a broad range of feng shui-related goods and services, Yin & Yang features carefully curated items and one-of-akind Chinese antiques and collectibles,

authentic and natural crystals in raw and polished form, and other unique feng shui objects that are exclusively designed and handcrafted using only the finest, authentic and traditional materials.

The shop also offers consultations that cater to a wide range of needs— personal, residential and commercial, lot and house purchase, selection of auspicious dates, site development and floor plan consultations.

While adhering to the traditions of the feng shui practice, the shop has adapted to modern times to create a distinct Yin & Yang touch.

“Apart from feng shui, we have been collaborating for the Chinese New Year and Mid-Autumn Moon Festival celebrations in the country, notably with Mandarin Oriental, Manila. This year, as we welcome the Year of the Wood Goat

BABY and Princess Lim Fernandez

on February 19, the Yin & Yang Shop of Harmony is delighted to lead the Chinese New Year festivities of two major global brands,” says feng shui expert Princess

Lim Fernandez.

The Yin & Yang Shop of Harmony is expected to be at the forefront of Chinese New Year events for Autohub, the

exclusive distributor of Mini Cooper, Rolls Royce, and Lotus, on the eve of February 18; and for New World Makati Hotel on February 19.

A 2015 Year of the Wood Goat Feng Shui Lucky Diary will also be launched

by Yin & Yang Shop of Harmony, in time for the Chinese New Year. The specially designed diary will serve as a useful reference and guide to feng shui advocates and enthusiasts, as they endeavor in their daily undertakings throughout the year, be it personal, business, or social.

Now on its 17th year and with its new address at New World Makati Hotel, the shop, with feng shui expert Fernandez at the helm, will continue to educate and work with clients on the significance and benefits of a properly guided feng shui. It is at the lagoon area in lobby.

life

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obama ties foreign profits tax to big public-works spending World The

B3-1 | Tuesday, February 3, 2015 • Editor: Lyn Resurreccion

BELGIUM’S LIGHT FESTIVAL

Visitors look at a light projection on a house during the light festival in Ghent, Belgium, on February 1. More than 40 light installations are on display during the festival, which takes place every three years. AP/VirginiA MAyo

W

ASHINGTON—President Barack Obama unveils a $4-trillion spending plan on Monday, a budget that calls for huge spending on infrastructure funded by a one-time tax on profits US companies have amassed overseas. The business-friendly Republican-controlled Congress is all but certain to say no.

The foreign earnings tax would be part of a broader administration plan to overhaul corporate taxes by ending certain tax breaks and lowering rates, a challenging task that Obama and Republican congressional leaders insist they are poised to tackle this year.

The spending document for the 2016 fiscal year beginning October 1 also reflects goals Obama set out in his State of the Union speech, particularly higher taxes on wealthy Americans to shrink the growing gap between high-income and middle-class citizens.

The question is what kind of negotiated middle ground, if any, will emerge in a climate of the overwhelming partisan divide separating Obama and his Democrats

from Republicans, many of whom have made their goal to stop or reverse virtually all of the president's domestic initiatives.

Obama, in an NBC interview before the Super Bowl, disputed a suggestion that he and Congress are so far apart that his budget proposals have no chance of winning approval.

“I think Republicans believe that we should be building our infrastructure,” Obama said. “The question is how do we pay for it? That’s a negotiation we should have.”

Obama’s new budget offers an array of spending programs and tax increases on the wealthy that Republican lawmakers have already rejected.

The likely meeting ground is

the tax rate on US companies. The current 35 percent top tax rate for corporations in the US, the highest among major economies, serves as a disincentive and many US companies with overseas holdings simply keep their foreign earnings abroad.

The question remains whether there will be sufficient flexibility in negotiations to keep Obama from vetoing the budget, a move that would force, yet again, last-minute emergency talks, a possible government shutdown or a so-called continuing resolution that would fund the government at current levels.

Under Obama’s plan, the top corporate tax rate for company profits earned in the US would drop to 28 percent. While past foreign profits would be taxed immediately at the 14 percent rate, going forward new foreign profits would be taxed immediately at 19 percent, with companies getting a credit for foreign taxes paid.

Republicans are opposed virtually across the board to anything that would increase taxes, such as closing loopholes. They also are against taxing foreign profits and will likely block that avenue for funding Obama’s infrastructure plans.

The White House believes it has some leverage on taxing foreign earnings by linking the revenue to construction projects that could potentially benefit the home districts of every member of Congress.

The budget will call for the onetime 14 percent mandatory tax on the up to $2 trillion in estimated US corporate earnings that have accu-

mulated overseas. That would generate about $238 billion, by White House calculations. The remaining $240 billion would come from the federal Highway Trust Fund, which is financed with a gasoline tax.

White House officials were not authorized to discuss the budget by name and described the proposal to the Associated Press on the condition of anonymity.

Obama is releasing his budget as the federal deficit drops and his poll numbers inch higher. Although Republicans will march ahead on their own, they ultimately must come to terms with the Democratic president, who wields a veto.

Ahead loom big challenges.

Obama is proposing to ease automatic cuts to the Pentagon and domestic agencies with a 7 percent increase in annual appropriations.

He wants a $38-billion increase for the Pentagon that Republicans probably will want to match.

But his demand for a nearly equal amount for domestic programs sets up a showdown with Republicans.

Another centerpiece of the president’s tax proposal is an increase in the capital gains rate on couples making more than $500,000 a year. The rate would climb from 23.8 percent to 28 percent. Obama wants to require estates to pay capital gains taxes on securities at the time they are inherited. He also is trying to impose a 0.07-percent fee on the roughly 100 US financial companies with assets of more than $50 billion. AP

1 hurt as small blasts rattle Bangkok mall shoppers

B

ANGKOK—Police in Thailand on Monday were investigating a pair of bombings outside a luxury shopping mall in the heart of Bangkok, the first such violence reported in the capital since last year’s army coup.

One person was slightly injured in the blasts on Sunday night, and police said the small homemade bombs were designed to sow panic, not kill.

The explosions occurred about 8 p.m. between the upscale Siam Paragon shopping mall and a mass transit elevated train line, which was undamaged but briefly shut as a precaution.

Siam Paragon was titled the world's most photographed location on Instagram in 2013 and is a trendy meeting place in Bangkok that claims to have more than 100,000 Thai and foreign visitors a day.

Police initially said the explosions were caused by a malfunctioning transformer, but National Police Spokesman Lt. Gen. Prawut Thawornsiri later said they were caused by devices that were probably not meant to hurt anyone. Service at the station was suspended for about an hour.

“The explosions were caused by two pipe bombs, but the flash powder that was used had low pressure. You can see that the damage was not much,” national police Spokesman Lt. Gen. Prawut Thawornsiri told reporters on Monday. “It showed the perpetrators intended only to cause panic, threaten or stir up chaos.”

“We have not ruled out a possibility that it was politically motivated but we are pursuing all kinds of motives,” he said.

The explosive ordnance disposal team said the two bombs were controlled by

digital clocks and one of them was hidden behind a transformer, which sent out some plume of smokes near the busy sky train station, according to police Col. Kamthorn Auicharoen, who heads the unit. He said a Thai man was slightly injured in his left hand.

Kamthorn said police were looking for two male suspects seen on closed-circuit television camera footage and will likely issue arrest warrants for them in a few days.

The incident came at a time of slightly raised political temperatures in Thailand, as the country’s ruling junta has tightened its clampdown on critics of its rule. It came a little more than a week after the impeachment of former Prime Minister Yingluck Shinawatra.

Thailand has been under martial law since the army seized power in a May 22 coup that toppled her elected government.

There has been little open opposition, and virtually no violent opposition, to the military regime that took over from an elected civilian government after the coup d’etat.

Martial law remains in effect under the dual administration of the junta and a militaryappointed interim Cabinet, and any dissent is strongly discouraged.

Junta-leader-cum-Prime Minister Prayuth Chan-ocha said on Monday that security measures will be tightened and asked the public to help prevent such an incident from happening again.

Thailand has a history of conspiratorial politics, and political protests in the capital, especially aggressive street demonstrations, have become more common since a 2006 coup toppled Yingluck’s brother, Thaksin Shinawatra, from the prime minister’s job. AP

France oFFers support For Greece amid bailout tensions

Continued on A2

GrEEk Finance Minister Yanis Varoufakis addresses reporters during a joint news conference with his French counterpart Michel Sapin at the Economy Ministry in Paris on February 1. Varoufakis, who had a tense meeting with Eurogroup leader Jeroen Dijsselbloem in Athens on Friday, has brought forward a trip to Paris, London and rome to meet his counterparts. AP/reMy de lA MAuViniere

P

ARIS—France’s Socialist government offered support on Sunday for Greece’s efforts to renegotiate debt for its huge bailout plan, amid renewed fears about Europe’s economic stability.

The backing was a victory for Greek Finance Minister Yanis Varoufakis, striking a more conciliatory tone as he seeks new conditions on debt from creditors who rescued Greece’s economy to save the shared euro currency. Worries have mounted that Greece’s new far left government might not pay back its debts.

Varoufakis is also visiting London and Rome—and in a sign that his government may be trying to avoid a collision course with key creditors, he said Sunday that he would visit Berlin and Frankfurt as well. The German government has been particularly angry at the new Greek government’s position and bluntly rejected suggestions that Greece should be forgiven part of its rescue loans.

Varoufakis insisted that Greece wants to pay the money back, but said he wants new terms and new negotiating partners, arguing that it's not worth discussing with the technocrats from the so-called “troika” of creditors who set the strict terms for Greece’s rescue.

France’s Socialist leadership, whose president has campaigned

against austerity, presented itself Sunday as a possible “link” between Greece and creditors.

French Finance Minister Michel Sapin insisted his country wouldn’t support canceling the debt, but offered backing for a new timeframe or terms.

“France is more than prepared to support Greece,” Sapin said after meeting Varoufakis, saying Greece’s efforts to renegotiate were “legitimate.” Sapin urged a “new contract between Greece and its partners.”

Greek Prime Minister Alexis Tsipras and his new government have worried financial markets and German and other European officials by pushing to scrap painful budget cuts and rethinking the debt. Tsipras sought to calm worries Saturday after days of increasingly heated discussions, and he too is heading to European capitals for talks in the coming days.

Greek government spokesman Gavriil Sakellaridis said Sunday’s meeting in Paris “proves that the positions of the Greek government are now finding fertile ground in Europe.”

Varoufakis announced that he has retained financial consultants Lazard as advisers to the Finance Ministry on public debt and fiscal management. AP

World

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Sports

| TUESDAY, FEBRUARY 3, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

BusinessMirror

BRADY RALLIES PATRIOTS TO SUPER BOWL WIN OVER SEAHAWKS

IN TOM WE TRUST

G

B B W The Associated Press

LENDALE, Arizona—Ten years removed from his last Super Bowl win, Tom Brady wasn’t letting this one slip away.

Sure, the brilliant Brady needed a huge play by an undrafted rookie to preserve New England’s 28-24 Super Bowl victory over Seattle on Sunday night. But Brady’s imprint was all over the Patriots’ sensational fourthquarter rally for their fourth National Football League (NFL) championship of the Brady-Bill Belichick era.

“You know, whatever it takes,” the record-setting Brady said after throwing for four touchdowns, including a 3-yarder to Julian Edelman with 2:02 remaining as New England rallied from a 10-point deficit. “Every team has a journey and a lot of people lost faith in us...but we held strong, we held together, and it’s a great feeling.”

The Patriots (15-4) had to survive a last-ditch drive by the Seahawks (14-5), who got to the 1, helped by a spectacular juggling catch by Jermaine Kearse. Then Malcolm Butler stepped in front of Ricardo Lockette to pick off Russell Wilson’s pass and complete one of the wildest Super Bowl finishes.

Brady leaped for joy on the Patriots sideline after Butler’s first career interception.

“It wasn’t the way we drew it up,” said Brady, who won his third Super Bowl Most Valuable Player award. “It was a lot of mental toughness. Our team has had it all year. We never doubted each other, so that’s what it took.”

Brady surpassed Joe Montana’s mark of 11 Super Bowl touchdown passes with a 4-yarder to Danny Amendola to bring the Patriots within three points.

Seattle, seeking to become the first repeat NFL champion since New England a decade ago, was outplayed

for the first half, yet tied at 14. The Seahawks scored the only 10 points of the third period, but the NFL-leading defense couldn’t slow the brilliant Brady when it counted most.

“He’s Tom Brady,” Edelman said. “He’s the greatest quarterback on the planet.”

It didn’t matter how much air was in the balls, Brady was unstoppable when the pressure was strongest. While pushing aside the controversy over air pressure in the footballs stemming from the AFC title game, the Patriots moved the ball easily in the final 12 minutes.

Seattle didn’t quit—it never does—and Kearse’s 33yard catch with 1:06 remaining got it to the 5. Marshawn Lynch rushed for 4 yards, then backup cornerback Butler, who was victimized on Kearse’s reception, made the biggest play of his first NFL season with 20 seconds remaining.

“I just had a vision that I was going to make a big play and it came true,” Butler said. “I’m just blessed. I can’t explain it right now. It’s crazy.”

Seahawks linebacker Bruce Irvin was ejected in the final seconds for instigating a near-brawl, delaying the celebration for the Patriots.

Soon they were mobbing one another on the same field where their 2007 unbeaten season was ruined in the Super Bowl by the Giants. They also fell to the Giants for the 2011 title.

But thanks to superstar Brady and the obscure Butler, they are champions again.

“Malcolm, what a play,” Brady said. “I mean, for a rookie to make a play like that in a Super Bowl and win us the game, it was unbelievable.”

Brady has equaled Montana with

BRADY POCKETS 3RD MVP AWARD G LENDALE, Arizona—As a boy, years before he became a pretty good quarterback in his own right, Tom Brady idolized Joe Montana.

Now, at age 37, Brady owns just as many Super Bowl championships—and just as many Super Bowl Most Valuable Player (MVP) awards—as the Pro Football Hall of Famer.

And no quarterback in history has more.

Brady completed 37 of 50 passes for 328 yards with four touchdown passes, each to a different receiver, including an 8-for-8 bit of perfection on the drive that led to the go-ahead score with about two minutes left on Sunday night.

That performance, and a victory-clinching interception by rookie cornerback Malcolm Butler, lifted the New England Patriots to a 28-24 comeback victory over the defending champion Seattle Seahawks in a Super Bowl with a slow start and a “Whoa!” finish.

This was not Brady at his best throughout. He threw two interceptions, including one deep in Seattle territory in the first quarter, and another in the third that led to points for the Seahawks.

That’s part of why the Patriots trailed 24-14 in the fourth quarter, before Brady got the comeback going.

“It wasn’t the way we drew it up. Certainly, throwing a couple of picks didn’t help,” said Brady, who broke Peyton Manning’s Super Bowl record of 34 completions set last year. “It was a lot of mental toughness. Our team has had it all year. We

never doubted each other, so that’s what it took. That was a great football team we beat. I’m just so happy for our team.”

Sitting in his family’s season-ticket seats at San Francisco’s Candlestick Park while growing up, Brady would wear a No. 16 jersey, just like Montana, and cheer for his favorite player’s team.

Brady did a fairly good impression of Joe Cool against Seattle.

He connected with Danny Amendola for a 4-yard touchdown with about eight minutes left. That gave Brady 12 TD passes in Super Bowls, breaking Montana’s mark. Then, with 2:02 to go, Brady hit Julian Edelman from 3 yards for TD toss No. 13 in Super Bowls—and, more important, the lead.

Brady turned to New England’s sideline, pointed, then raised his right fist.

Only after Butler grabbed Russell Wilson’s pass from the 1-yard line in the final half-minute could Brady really begin to celebrate, leaping up and down on the sideline and embracing Coach Bill Belichick.

Now Brady, Montana and Terry Bradshaw of the Pittsburgh Steelers are the only starting quarterbacks to earn four Super Bowl rings. AP

four Lombardi Trophies and three Super Bowl MVPs. He stands alone with 13 Super Bowl touchdown passes. He was 37 for 50 for 328 yards against the NFL’s top-ranked defense.

He also was picked off twice; Brady was intercepted a total of two times in his previous five Super Bowls.

Yet, he picked apart the Seahawks on fourth-quarter drives of 68 and 64 yards, solidifying his championship legacy.

His heroics offset those of Chris Matthews, one of Seattle’s least-used players before the postseason. Matthews recovered the onside kick that helped the Seahawks beat Green Bay in overtime for the NFC crown, and had a breakout performance on Sunday.

Having never caught a pass in the NFL, Matthews grabbed four for 109 yards and a touchdown. Lynch ran for 102 yards, but didn’t get the ball at the 1 on the decisive play—a decision the Seahawks will rue forever.

“For it to come down to a play like that, I hate that we have to live with that,” Coach Pete Carroll said, “because we did everything right to win the football game.”

The teams got down to football under the open retractable roof at University of Phoenix Stadium—the first venue to host an indoor and an outdoor Super Bowl—after dealing with distractions far beyond the typical Super Bowl hype. The Patriots are still being investigated for using those underinflated footballs at the AFC championship game.

It was a game of spurts by both teams before a crowd of 70,288 that was clearly pro-Seattle.

Jeremy Lane made the first big play to negate a nearly eight-minute drive by the Patriots with a leaping interception at the goal line late in the

first quarter. Lane made his first pro interception, but left with a wrist injury after being tackled by Julian Edelman.

His replacement, Tharold Simon, got torched by Brady the rest of the way.

Wilson didn’t get off a pass in the first quarter. When Brady completed his record 50th postseason TD throw, 11 yards to Brandon LaFell against Simon, it was 7-0.

Seattle went to its bench to help tie it.

Matthews’s first career catch, a reaching 44-yarder over Kyle Arrington and by far the longest first-half play for Seattle, led to Lynch’s bruising 3-yard TD run to make it 7-7.

But Brady to Rob Gronkowski made it 14-7 and seemed to finish off a dominant first half for the Patriots. Except no one told the resilient Seahawks.

A dormant offense turned dangerous in a span of 29 seconds, covering 80 yards in five plays, including a late gamble.

Lockette caught a 23-yard pass and Arrington was flagged for a facemask, putting Seattle at the 10 with :06 remaining. Carroll went for it and the new Seahawks star, Matthews, grabbed Wilson’s pass in the left corner of the end zone.

It was the most lopsided halftime tie imaginable.

Then Seattle stormed to a 24-14 lead in the third quarter on Steven Hauschka’s 27-yard field goal and Doug Baldwin’s 3-yard TD reception. New England was stumbling—until Brady once again stepped up.

“I’ve been at it for 15 years and we’ve had a couple of tough losses in this game,” Brady said. “This one came down to the end, and this time, we made the plays.”

SEATTLE Seahawks fans are stunned after watching their team losing to New England Patriots. AP

NEW England Patriots quarterback Tom Brady now matches his idol Joe Montana with three Super Bowl Most Valuable Player trophies. AP

ALIBABA’S MA REGAINS SPOT AS ASIA’S RICHEST

A

in tom we trust NEW England Patriots tight end Rob Gronkowski raises the Vince Lombardi Trophy after the Patriots beat the Seattle Seahawks in the National Football League Super Bowl XLIX. AP

he 6.1-percent economic expansion in 2014 also translated to a better jobs picture, with an additional 1 million Filipinos gaining employment last year.

The quality of employment in the Philippines, however, remained a problem.

In the preliminary data of the 2014 Employment Situation report, the Philippine Statistics Authority (PSA) said the number of employed Filipinos increased to 37.3 million in 2014, from 36.3 million in 2013.

However, the growth in the number of employed Filipinos was driven by part-time employment. Parttime employment rose sharply by 9.1 percent, or 1.1 million, while persons with full-time jobs declined by 227,000 in 2014.

“Amid the expansion, the quality of employment remained a key challenge. Employment growth this

BusinessMirror

Obama ties foreign profits tax to big public-works spending

Sleepless in Seattle: Fans reeling after ‘heartbreaker’

S

EATTLE—People in Seattle poised to celebrate a second straight Super Bowl win by the Seahawks were instead left stunned.

“I’m sad,” said Rebe Wolverton, who was part of a crowd watching Sunday’s game on large screen televisions outside a restaurant near Century Link Field.

A late interception preserved New England’s 28-24 victory.

“This hurts,” said Wolverton, who was wearing a Seahawks winter cap and holding a bag of Skittles, the favorite candy of the team’s running back, Marshawn Lynch.

Moments before the turnover Seattleites were certain their team would score with a run from the 1-yard-line. The boisterous crowd in the Pioneer Square neighborhood near where the Seahawks play home games was instead left shocked.

In the city’s University District police officers kept watch on a crowd of dozens of fans, some waving “12th Man” flags.

In north Seattle 46-year-old George Bunting was mystified that Seahawks Coach Pete Carroll would make the “wrong decision” and decide to throw instead of having Lynch take the ball.

“This is a major upset. He should’ve just used the man,” Bunting said, referring to Lynch.

Emily Simpson and Steven Baily were already for another celebration.

“This is heartbreaking,” the 25-year-old Simpson said. “I didn’t hear any fire arms or fireworks or anything. But it’s just a game.”

Baily called the Seahawks play “just insane.”

“I was hoping they were going to just fall into the goal. That’s all that needed to happen,” Baily said, 23. AP

sports

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

By Cai U. Ordinario

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Organize your pantry with a five-step makeover

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TfridayNovember 18,3,2014

Tuesday, February 2015Vol. Vol.1010No. No.40117

nn

‘Quality of jobs still a challenge’ T

DAKOTA JOHNSON, JAMIE DORNAN DIDN’T RUSH INTO ‘50 SHADES’... »D2

BusinessMirror

A broader look at today’s business

2014 GROWTH ONLY TRANSLATED TO 9.1% HIKE IN PART-TIME JOBS WHILE FULL-TIME EMPLOYMENT DROPPED

organize your pantry with a five-step makeover The opportunity to experience

See “U.S.,” A8

BusinessMirror

three-time rotary club of manila journalism awardee

E rejoice, Lord, that Pope Francis knows that we Filipinos love him. His presence in the country during his visit gave him the opportunity to experience firsthand our love for him in thousands of ways, which he will treasure as long as his memory endures. Now it is time for us to think of the future, and to plan and build it on the solid foundation of the key word that he left with us— Love! This life-giving and demanding love will make all the difference for our country and each of us. Amen.

significant battlefield prize.

US commanders who help oversee the air war say the joint offensive with Iraqi Kurdish ground forces pushed back the Sunni Islamists’ defensive line west of Mosul, recapturing territory and removing a key obstacle, at least for now, as military planners consider tactics for retaking the city as early as this summer.

American and allied advisers are training and equipping Iraqi security forces expected to lead any major ground assault. But options appear limited, given

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libaba Group Holding Ltd. Chairman Jack Ma regained his spot as Asia’s richest person with a higher valuation for the company’s finance affiliate ahead of a stock sale that also created a dozen new billionaires.

Zhejiang Ant Small & Micro Financial Services Group Co., which owns payments processor Alipay, is valued at about $50 billion, according to people familiar with the matter. Ant Financial is weighing a private placement before going public in 2016, and details of the planned fund-raising aren’t finalized, the people said last week, asking not to be identified because the discussions are private.

The latest valuation for Ant Financial boosted Ma’s fortune by about $10 billion to $36.4 billion as of Friday in New York, according to the Bloomberg Billionaires Index, overtaking Amazon.com Inc.’s Jeff Bezos. The new billionaires from the bigger valuation include the e-commerce giant’s CEO

PESO exchange rates n US 44.0840

Continued on A8

Farmers shave their heads in front of Camp Crame in Quezon City on Monday to sympathize with the 44 Special Action Force commandos slain in a recent encounter with the Muslim rebels in Maguindanao. Kevin De la Cruz

House to wait for results of Board of Inquiry probe

By Jovee Marie dela Cruz

T

HE leadership of the House of Representatives on Monday announced that it will temporarily hold off the investigation on the bloodbath in Mamasapano, Maguindanao, that killed 44 Philippine National Police-Special Action Force commandos. Related story on B3.

Speaker Feliciano Belmonte Jr. said the House will allow the government’s Board of Inquiry (BOI) to finish its investigation first before the House conducts its own probe.

“The results of which [BOI investigation]

lawmakers can use as basis for their discussions in their own possible inquiry later on,” he said.

“Let them finish that because part of the work is in the field and so forth. Let them finish it, and when they have finished, we cannot preclude any body in Congress wanting to look at it further,” Belmonte said.

He added that the BOI, composed mainly of top police officers, are more aware of the situation on the ground.

“I would like to leave that [immediate investigation] to the professionals, to the people who are actually investigating it.

They are more aware of the situation on

the ground. It’s very easy to say do this, do that, but I want to leave that to them. We can make a discussion, a proper discussion on the basis of their own findings,” Belmonte said.

The BOI is headed by Deputy Director General Leonardo Espina, National Police officer in charge; Director Edgardo Inking, Directorate for Integrated Police Operations Western Mindanao head; Director Benjamin Magalong, Criminal Investigation and Detection Group chief; and Chief Supt. Catalino Rodriguez, Directorate for Research and Development head.

n japan 0.3756 n UK 66.4743 n HK 5.6870 n CHINA 7.0523 n singapore 32.5800 n australia 34.2480 n EU 49.7841 n SAUDI arabia 11.7323 Source: BSP (2 February 2015)

News BusinessMirror

Tuesday, February 3, 2015

A2

Abe confronts wider Islamic State threat Continued from A8

react to these two unfortunate deaths is going to lead back to the issue of the foreign and security policy Abe is trying to promote.”

In a video purporting to show Goto dead, a masked man said Abe’s decision to take part in “an unwinnable war” made Japan a target for the jihadist group. He threatened “carnage wherever your people are found”and warned of a“nightmare for Japan.”

‘Only way’ Speaking at the start of a meeting of ruling parties on Monday in Tokyo, Abe said Japan would not“cave in” to terrorists, and would increase humanitarian aid to the Middle East. “We take a firm stance on Japan’s responsibility to the international community in its fight against terrorism,” he said. “This is the only way to stand up to terrorism.”

Since coming to office Abe has increased

US. . . Continued from A8

Syria since August. Combined with attacks by Iraqi government forces, Kurdish fighters and Sunni Arab tribesmen who oppose the Islamist group, the campaign has stopped the militants from seizing much new territory and pushed them back in several areas.

I n the past week , Kurdish fighters backed by hundreds of coalition air strikes broke a four-month Islamist State siege on Kobani, a Syrian town on the border with Turkey. In Iraq pro-government Shiite militias claimed they had taken “complete control” of Diyala province, northeast of Baghdad, after seven months of fighting the Sunni extremists.

But Islamic State has not been dislodged from any of the cities that it captured during its offensive last year.

Mosul fell quickly in June when convoys of heavily armed IS fighters stormed out of neighboring Syria and overran much of western and northern Iraq. Declaring an Islamic caliph-

A poll published by Kyodo News after Yukawa’s

murder showed opposition to the bills had risen to about 21 percent, the same proportion who approve of them. About half of the 814 respondents said time should be taken to debate the changes.

The process in parliament may become more contentious following the hostage crisis. The Cabinet resolution on the constitution prompted demonstrations outside Abe’s official residence in July and a poll conducted by Nippon TV from January 16 to 18 found almost 54 percent of respondents did not believe the changes would contribute to peace.

IS said in a previous video its threats against Goto and Yukawa were prompted by Abe’s speech in Cairo last month, in which he pledged $200 million in humanitarian aid for countries confronting the group. Nevertheless, Kyodo’s January poll showed Abe’s support was down only slightly on the previous month to 52.8 percent, and more than 60 percent of respondents approved of his handling of the crisis. Bloomberg News

ate, the insurgents used the city to launch attacks that pushed nearly 250 miles south to the edge of Baghdad before government forces and Shiite militias rallied to stop them.

Many residents of Mosul, who faced discrimination from the Shiite-dominated central government and military, initially welcomed the Sunni invaders. The militants seized US-supplied arms and munitions and hundreds of armored vehicles from fleeing government troops.

In the deadliest single battle after the 2003 US-led invasion of Iraq, US Marines fought for six weeks in late 2004 to oust entrenched Sunni insurgents from Fallouja, a city less than a third the size of Mosul. The battle was heaviest urban combat for the US military since Vietnam. More than 90 Americans were killed and nearly 600 were wounded. Fallouja fell to IS fighters early last year.

A battle in Mosul could be tougher.

Kurdish officials say the militants already

have reinforced their fighters, blocked roads and blown up a key bridge on the city’s western edge to augment their defenses.

They also have forged alliances with former Iraqi military officers and local Sunni officials who supported autocrat Saddam Hussein before he was toppled in the 2003 invasion.

“We’ve received information that they are creating fortifications, digging trenches around the city,” said Jabar Yawar, spokesman for the Kurdish armed forces in Irbil, capital of the semi-autonomous Kurdish region in Iraq. “Also in every area they control, it is their custom to put bombs and booby traps.”

An attacking force would need supporters or informants in the city for intelligence on the insurgents’ positions and defenses. Although many Mosul residents complain of harsh edicts enforced by the extremists and shortages of basic commodities, the discontent does not appear close to a popular revolt. MCT

military spending, removed a ban on defense exports and reinterpreted the US-imposed pacifist constitution to let Japan defend other countries.

He must now protect Japanese citizens from the unaccustomed threat of global terrorism, and may seek further powers for the country’s defense forces.

“He will no doubt repeat his argument that greater military might will protect Japanese lives better,” said Koichi Nakano, a professor of politics at Sophia University in Tokyo. “He will try to take advantage of the situation” to push his changes, Nakano added. The government is expected to present a package of more than 10 bills to parliament around April to enshrine the new interpretation of the constitution. Abe requires support from his pacifist coalition partner, Komeito, to get the bills through the upper house, where his Liberal Democratic Party is just shy of a majority.

Parliament debate

3-DAY EXTENDED FORECAST FEBRUARY 3, 2015 | TUESDAY

TODAY’S WEATHER Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rain showers.

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‘Quality of jobs still a challenge’ year was largely driven by the rise in parttime employment [9.1 percent] alongside the increase in the number of self-employed persons and unpaid family workers,” the PSA said.

“As a result, the mean hours of work was down [-2.4 percent] from last year, which parallels the slowdown in the country’s gross domestic product [GDP] in 2014,” the PSA added.

The highest increase in part-time work was noted among farm, forestry and fishery sector, where there was an addition of 339,000 part-time workers; service workers and shop and market sales workers, 185,000; and clerks, 165,000.

Most of the increase in part-time work was observed in Region 4A, or Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), where there was an addition of 231,000 part-time workers.

Other regions where the most increase in part-time work was observed were parts of the Yolanda Corridor namely, Region 6, or Western Visayas, and Region 7, or Central Visayas, where there was an increase of 147,000 and 114,000 part-time workers, respectively.

Meanwhile, the country’s underemployment rate stood at 18.4 percent in 2014. This was only a 0.6-percentage point decline from the 19 percent posted in 2013.

The PSA said the underemployed are those employed Filipinos who express the desire to have additional hours of work in their present jobs, or to have additional jobs, or to have new jobs with longer working hours.

“The decline was accompanied by reduction in the total number of underemployed persons by 42,000 to 6.9 million,” the PSA said.

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Underemployment was highest in the agriculture sector, with an underemployment rate of 25.3 percent, higher than the 20 percent posted in the industry sector and 14.1 percent posted in the services sector.

The PSA noted that between 2013 and 2014, underemployment increased only in the industry sector with an addition of 68,000 underemployed Filipinos in the sector.

Underemployment was at the highest rate in Region 5, or the Bicol region, with an 34.9 percent, followed by Region 10, or Northern Mindanao, 25.7 percent; and Caraga, 25.2 percent.

The lowest underemployment rate was recorded in the National Capital Region, or Metro Manila, at 11.1 percent, followed by Region 2, or Cagayan Valley, 11.2 percent; and the Autonomous Region in Muslim Mindanao, 11.7 percent.

“Between 2013 and 2014, underemployment rate improved in 12 regions, most notably in Region 1 [-4.0 percentage points or ppt] and Region 4B [-3.0 ppt]. Underemployment rate worsened in Region 7 [+3.3 ppt] and Region 11 [+2.0 ppt],” the PSA said. “Little changes were observed in the rest of the regions.”

The PSA said the figures cited in the report are preliminary and, unless indicated, represent the average of the four rounds of the Labor Force Survey (LFS) conducted in the months of January, April, July and October.

The estimates for both periods under review exclude Region 8, or Eastern Visayas, for comparability. The January 2014 excluded estimates for Region 8 because the LFS was not conducted in this region as a consequence of Supertyphoon Yolanda. For the subsequent rounds, the LFS was not conducted for Leyte province.

Continued from A1

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Soldier killed in clash with bandits

A

By Rene Acosta

SOLDIER was killed and four others were wounded in a firefight with the Abu Sayyaf Group in Sulu on Sunday, the military said.

A bandit encampment was captured during pursuit operations.

Capt. Maria Rowena Muyuela, spokesman for the Armed Forces Western Mindanao Command, said soldiers engaged about 50 Abu Sayyaf bandits under subcommanders Hatib Aseri and Basarun Asaruk at Bud Pula, Barangay Bungkaong, Patikul.

During the firefight, which occurred at around 4 p.m., one soldier was killed while four others were wounded. Muyuela did not identify the casualties.

Muyeula said the group of Aseri and Asaruk was behind the recent ambush of elements of the Army’s 35th Infantry Battalion on January 30.

She said the group is operating in barangays Latih, Danag and Bungkaong, all in Patikul.

On Monday pursuing troops encountered another bandit group at Barangay Langhub, Patikul, and captured an Abu Sayyaf encampment.

Ens. Chester Ian Ramos, public affairs officer of the Armed Forces Joint Task Force Zambasulta (Zamboanga, Basilan, Sulu and Tawi-Tawi), said the encampment has 42 structures and can accommodate at least 100 people.

The soldiers who entered the camp unearthed empty shells of 57mm recoilless rifle ammunition, an M-60 machine gun, an M-203 grenade launcher, and assorted firearms and other equipment.

The camp also yielded a solar panel, water containers, three solar headlights, sandals and slippers.

Editor: Dionisio L. Pelayo • Tuesday, February 3, 2015 A3

Election watchdog raises alarm on ownership of Comelec supplier

E

By Joel R. San Juan

LECTION watchdog Citizens for Clean and Credible Elections (C3E) has raised the alarm over alleged anomalies in the ownership structure of technology provider Smartmatic, which, it said, has been ignored since the company bagged the automated election system (AES) contract for elections in the Philippines in 2010.

C3E claimed that information gathered on the origins of Smartmatic would show troubling details that would cast doubts on the company’s transactions. “ T he way Smar tmatic was formed in Venezuela is too worrisome to ignore as it would have an impact, if it had not already made an impact, on Philippine elections,” C3E co-convenor Melchor Magdamo said in a statement.

Based on its own reserch, C3E

claimed that Smartmatic’s experience in elections started in June 2003, when the Venezuelan government under then-President Hugo Chavez bought a 28-percent stake in a company called Bitza R&D Software CA. Bitza was owned by Venezuelan businessmen Antonio Mugica and Alfredo Anzola, and was part of a consortium that included Smartmatic, Bizta, SBC and another company that had been contracted

by the Venezuelan government to automate elections.

In early 2004 SBC got a $121-million contract of which $91 million went to Smartmatic and Bizta, both owned by Mugica and Anzola.

This contract was the first for Smartmatic, according to C3E. C3E noted that since then, Smartmatic had been getting Venezuelan government contracts, worth at least $131 million, all without public bidding as the deals were virtually handed to Smartmatic by the dictatorship of Hugo Chavez.

Later on, C3E said, Mugica and Anzola expanded its operations outside of Venezuela.

C3E added that in 2005, Smartmatic bought a US company called Sequoia Voting Sytems for $16 million.

However, in 2006, an investigation of the deal and links between Smartmatic and the Chavez government was launched by the Committee on Foreign Investment in the United States (CFIUS), an investigating body of the US government, as a result of an electoral fiasco in Chicago that involved both Smartmatic and the company it bought, Sequoia.

C3E said instead of submitting itself to the investigation, Smartmatic

sold Sequoia, effectively blocking an investigation by the CFIUS into its ownership structure.

The group added that on May 28, 2004, the Miami Herald, a major newspaper in Miami, Florida, reported finding connections between the earlier partner company of Smartmatic, Bizta Corp., and the Venezuelan government.

The report said the Venezuelan government had investments in Bizta, which was then a ballot software company.

“These are just a few of the details that we have uncovered about Smartmatic’s ownership structure,” Magdamo said.

“We are studying more details that would reveal the shady character of the company that we entrusted with our elections in 2010 and again in 2013 and which the Commission on Elections (Comelec) is again unquestioningly entrusting with the 2016 elections,” he added.

“What is scary is the possibility that Smartmatic had already manipulated elections results in 2010 and 2013 and no one is raising a howl over the possibility that it would be given another chance to manipulate elections in 2016,” Magdamo said.

“What is scary is the possibility

that Smartmatic had already manipulated elections results in 2010 and 2013 and no one is raising a howl over the possibility that it would be given another chance to manipulate elections in 2016,” Magdamo said.

Meanwhile, petitions seeking to exclude Smartmatic from participating in any bidding process for contracts relating to the 2016 elections are beginning to mount at the Supreme Court.

On Monday another petition against Smartmatic was filed before the SC by Auxilliary Bishop of Manila Broderick Pabillo, former Elections Commissioner Augusto Lagman and several other registered voters and taxpayers.

In their 44-page petition, Pabillo and his co-petitioners asked the Court to annul Comelec Resolution 9922 for having been issued with grave abuse of discretion.

The said resolution awarded to Smartmatic the contract for the diagnosis and minor repair services for 80,000 Precinct Count Optical Scan machines to be used in the 2016 elections.

The petitioners also asked the Court to issue a writ of prohibition to stop the Comelec from directly contracting with Smartmatic.

Economy

A4 Tuesday, February 3, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Phoenix, Chevron interested to bid for Ilijan diesel-fuel supply contract

By Lenie Lectura

T

WO oil firms have expressed interest to supply Ilijan power plant with diesel fuel, according to the Power Sector Assets and Liabilities Management Corp. (PSALM) on Monday.

“There are two interested bidders. These are Chevron and Phoenix,” PSALM President Emmanuel Ledesma Jr. said in a text message.

PSALM held on January 30 a pre-bid conference after it recently started soliciting bids for the supply and delivery of 60 million liters of industrial diesel oil (IDO) for the Ilijan power plant.

Ledesma said that the winning bidder is required to “deliver a minimum of 4 million liters, and that they will deliver a minimum of 30 million liters three days after Malampaya shutdown within 15 days.” The state firm has set aside an approved budget for contract of P1,664,911,472 for the fuel procurement.

“The IDO procurement project shall ensure the operation of Ilijan this year, especially with the anticipated tightening of power supply in the summer,” the PSALM chief said.

Bid submission deadline is on February 16. Chevron Philippines and Phoenix Petroleum paid 75,000 each to procure bidding documents.

Last week the Department of Energy (DOE) said one unit of the power plant will run on liquid fuel.

The second unit will proceed with its 30-day scheduled maintenance work. The Ilijan power plant in Batangas is composed of two units, with a generating capacity of 600 megawatts (MW) each. It is one of the natural-gas power plants fueled by the Malampaya gas facility.

Ilijan Block B is scheduled for a 30-day maintenance work to coincide with the Malampaya gas facility from March 15 to April 15.

Block A can still be utilized in the absence of natural gas because the power plant is designed to run on both liquid fuel, which is either diesel or biodiesel (B2), and natural gas.

“Running Ilijan on liquid fuel will ensure the much-needed additional energy. PSALM is prepared for that,” Ledesma assured.

There is an anticipated power shortage this summer. Based on latest projection, the DOE said Luzon would need 782 MW, of which 135 MW are needed to meet the required regulating reserve, and 647 MW to meet the required contingency reserve.

Aside from Ilijan, the Malampaya gas field in offshore also supplies natural gas to two more natural gas power plants in Luzon—the 1,000MW Santa Rita and 500-MW San Lorenzo power plants, both owned by the Lopez group.

BusinessMirror

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Govt infra programs to jump-start 2015 public spending, Abad says

T

HE early enactment of the 2015 General Appropriations Act is set to power this year’s public spending, courtesy of the national government’s massive infrastructure programs lined up for the year.

Budget Secretary Florencio B. Abad said that “last year’s underspending issue will be addressed by the increase in our infrastructure investments, which is equivalent to 4 percent of our projected GDP [gross domestic product] for this year. Ultimately, we’re targeting an infrastructure spending level of 5 percent by 2016.”

In the 2015 national budget, the Department of Public Works and

Highways received the second-largest allocation and the highest yearon-year increase at P303.2 billion, or an increase of 37.9 percent from P219.9 billion last year. Of this total, P185.8 billion will be allotted for the completion of all national roads by 2016 and all bridges along national roads by 2015.

There are also the major publicprivate partnership projects supported by the national government

in the offing, like the Tarlac-Pangasinan-La Union Toll Expressway, the Daang Hari-Southern Luzon Expressway Link Project, the North Luzon-Slex Link Connector, the Cavite-Laguna Expressway, the Laguna Lakeshore Expressway Dike project and the Ninoy Aquino International Airport Expressway Project.

Meanwhile, the Department of Transportation and Communications has a budget of P59.5 billion— higher by 21.9 percent in 2015 as compared to last year’s budget of P48.8 billion—from which to fund their own infrastructure programs.

These include P10.6 billion for the improvement of the country’s railway systems (including the rehabilitation and extension of the Light Railway Transit Lines 1 and 2, and the subsidy for Metro Railway Transit Line 3, and P15.4 billion allotted for various airport

and seaport projects.

The Department of Agriculture (DA) has a budget of P89.1 billion for 2015—higher by 11.5 percent compared to their 2014 budget of P80 billion—to address a number of agricultural infrastructure programs. With this funding, the DA will be able to construct a number of irrigation projects, farm-tomarket roads, and fishery infrastructure projects like fish landings and fish ports.

Abad said, “Drafting a national budget that will support our country’s inclusive development means [that] we must not only sustain the rapid growth of our economy but also improve the quality of life for our people. We can do this by creating employment and livelihood opportunities, and by revitalizing employment-generating industries and connecting towns to growth centers.” PNA

Meralco still welcoming late registrants for ILP

By Lenie Lectura

T

HE Manila Electric Co. (Meralco) continues to encourage potential Interruptible Load Program (ILP) participants to sign up with the utility firm amid the lapse of an earlier deadline.

Under House Joint Resolution 21, the last day of registration for the ILP was on January 31. “We will defer to the legislature on any new date that maybe set in the final Joint Resolution.

Still, we encourage all interested customers to sign up as soon as possible to allow for enough time for preparations ahead of the summer season,” Meralco Utility Economics Head Larry Fernandez said in a text message.

As of January 8 Meralco has signed up a Committed Interruptible Load of 209.72 megawatts (MW) from ILP participants and is eyeing a potential 54.72 MW more.

There were 45 ILP participants with 163 services, Fernandez added.

The five largest participants are SM Prime Holdings Inc. (57.96 MW); Robinsons Land Corp. (23.15 MW); Waltermart Malls (14.30 MW); Ayala Land Inc. (9 MW); and Rustans Supercenters Inc. (8.66 MW).

Meralco awaits more ILP participants. “We will continue to invite as many participants as we can. We have also been working with Peza [Philippine Economic Zone Authority] to enable locators in the Cavite public economic zone to join the program,” Fernandez added. ILP works by calling on business customers with loads of at least 1 MW to run their own generator sets, if needed, instead of drawing power from the grid.

briefs phl stocks retreat from record highs

Local share prices retreated anew as investors pocketed their gains after last week’s record highs, with losses in the United States and European markets overnight also affecting sentiment.

The bellwether Philippine Stock Exchange index lost 59.20 points to 7,630.71 on Monday from Friday’s 7,689.91 close. ”Market leads weren’t encouraging,” said Jun Calaycay, analyst at Accord Capital Equities Corp.

Calaycay said US stocks melted anew with the Dow Jones Industrial Average dropping 250-points and the S&P500 declining 26 points.

He said the European equities market was also in red after the new Greek leadership indicated it would not honor the previous regime’s agreements with the troika and instead sought to negotiate a new one.

All counters were in negative territory, led by financials that declined 1.28 percent.

Volume turnover reached 2.75 billion shares valued at P10.48 billion.

Decliners won advancers, 111 to 76, while 36 issues unchanged.

The day’s most active stocks were led by Universal Robina Corp., Global Ferronickel Holdings Inc., Philippine Long Distance Telephone Co., Metropolitan Bank & Trust Co. and Alliance Global Group Inc. PNA

business leader bats for embedded power source in negros occidental

Trader from Mindanao A Muslim entrepreneur arranges assorted colorful slippers being sold for P150 a pair at a public market in San

Andres, Manila. ROY DOMINGO

Zambales farmers to get compensation for mining impact

A

T least 30 farmers will receive compensation for the adverse impact of mining operations in the towns of of Candelaria and Santa Cruz in Zambales.

Director Leo L. Jasareno of the Mines and Geosciences Bureau (MGB) said Benguet Corp.

Nickel Mines Inc., Eramen Minerals Inc. and LNL Archipelago Minerals Inc. have decided to settle the P3,210,739 claim for the damages caused by their operation in the two towns.

Jasareno said the amount does not yet include

fines for damage to fish ponds affected by the mining operations.

It will be recalled that the Contingent Liability and Rehabilitation Fund Steering Committee (CLRFSC), also led by Jasareno as chairman, signed a resolution approving the farmers’ claims for compensation in December last year.

The claims were approved based on the report of the Regional Investigation and Assessment Team created by the MGB Regional Office III after conducting an assessment of the impact

of the mining operations in the area.

Affected are farms in barangays Tubo-Tubo North, Tubo-Tubo South and Lomboy. Jasareno said the computation of the amount for damages was based on the impact areas and river systems draining the contract areas of the said mining companies.

The three companies will share the burden of paying the amount as approved agreed by all parties considering the weight of the contributory factors that caused damage to the farm lots. Jonathan L. Mayuga

Summer construction season raises cement price by P10/bag

By Catherine N. Pillas

M

A worker sets aside bags of cement for later use at a construction site in Makati City. Three cement manufacturers have announced a P30 increase effective on Tuesday per bag on the price of the construction commodity. Nonie Reyes

anufacturers have raised by P10 the price of cement for every 40-kilo bag.

Three cement firms, Cemex Corp, Lafarge Cement Corp. and Eagle Cement have advised distributors of the price hikes which took effect on Monday.

Before the hike, Cemex Corp.’s brand Rizal cement’s distributor price was at P198 per bag, Lafarge Cement Corp. for its Republic brand was at P197 per bag and Eagle Cement for its Eagle brand was at P193 per bag.

Eduardo Sahagun, CEO of Holcim Cement, said they will not increase prices but said that construction activity is heavy during the summer, and that prices fluctuate depending on the season.

The trade office has requested

manufacturers to lower prices in view of plummeting fuel prices since last year.

Trade Undersecretary for Consumer Protection Victorio Mario A. Dimagiba said they have yet to receive notification of a price hike, as manufacturers are required to inform the trade office of any increase.

He said that its latest price monitoring report showed that retail prices of cement have gone down.

The National Price Coordinating Council is set to meet on Wednesday to discuss issues on commodity price and supply.

The robust activity in the construction sector this summer season is expected to trigger a spike in the demand, and consequently, in the price of cement.

BACOLOD CITY—Negros Occidental needs a stable power supply from an embedded power source like the diesel-fueled power plant of Energreen Power Development and Management Inc. in Bago City, a local business leader said.

“We, in the business sector are looking for power reliability and stability when we put our investment in a certain place,” said Frank Carbon, president of Metro Bacolod Chamber of Commerce and Industry, on Monday.

Carbon said, “When we say reliability it means that the power requirements can be supplied by distribution utilities like Central Negros Electric Cooperative with a reserve.”

Carbon said that during summer, power supply demand increases by about 10 percent to 15 percent and along with the expansion of investments in the city, demand is also expected to increase in the near future.

He said Energreen, which will operate an 18.9-megawatt plant through its project company Central Negros Power Reliability Inc., will supply peak and reserve loads to Ceneco.

Carbon said that the company's total project cost in the province was about P900 million and they had already brought in an initial investment of P750 million, including five generator sets, at their plant site in Barangay Calumangan, Bago City. PNA

pampanga capitol recruitment fair records 469 applicants CITY OF SAN FERNANDO—A total of 469 Capampangans attended and submitted applications for various positions at the recently concluded Special Recruitment Activity conducted by the provincial government through its Public Employment Services Office.

The provincial capitol, headed by Gov. Lilia G. Pineda, partnered for the first time with PhilStar International Services Corp. which was in urgent need of more than 700 skilled workers to be deployed to Guam.

“We are very satisfied with the activity’s turnout. Our partners from PhilStar were also pleased to have met with enthusiastic applicants,” Luningning Vergara, provincial public employment services officer, said.

Lourdes Ocampo, PhilStar vice president for operations, also led a preemployment orientation for the applicants. Ocampo briefed the aspirants on the prevailing salary rates in Guam and what to expect when working abroad. PNA

Economy BusinessMirror

news@businessmirror.com.ph

Tuesday, February 3, 2015 A5

PHL submits maritime defense ‘wish list’ to Japan

Mamasapano massacre no effect on investor confidence–Palace

T

alacañang maintained on Monday that the massacre of 44 members of the National Police Special Action Force (SAF) by Moro rebels in Mindanao last week did not affect investors’ confidence in the country.

By Rene Acosta

he military wanted Japan to chip in to its ongoing modernization by providing to the country assets and equipment that could be used in areas of humanitarian assistance and disaster response and maritime-domain awareness.

Defense Secretary Voltaire T. Gazmin admitted on Monday that he provided his Japanese counterpart a “military wish list” that could help the country stand up to the challenge of responding to calamities and natural disaster and increased patrol of its territorial waters.

However, the defense chief refused to disclose these types of assets, other than “everything that could address our maritime security.”

Earlier, the Navy wanted Japan to provide them with brand-new patrol boats, which it could be used in patrolling and securing the country’s territorial waters, especially in the West Philippine Sea where Chinese military and paramilitary vessels are a regular sight.

Gazmin was in Tokyo last week for the Japan-Philippines Defense Ministerial Meeting wherein he met with Japanese Defense Minister Gen Nakatani.

Japan is currently locked in a territorial dispute with China over a portion of the East China Sea, while the Philippines is battling off an aggressive China over its territory in the West Philippine Sea. During their meeting, Gazmin and Nakatani agreed that any dispute should be settled peacefully and without the use of force or coercion, in accordance with basic principles of international law.

They also reaffirmed the importance of the freedom of navigation and overflight in the high seas as they briefed each other on the situations in the East and South China Sea. Gazmin welcomed Japan’s efforts in actively contributing to the peace and stability, not only in the region but around the world, in partnership with the international community.

Gazmin and Nakatani highlighted the progress of bilateral cooperation and exchanges between the two countries through the high-level exchanges, vice ministerial dialogue and Japan Self Defense Force’s contribution to the relief operations during Supertyphoon Yolanda.

M

By Butch Fernandez

Pa l a c e Sp ok e s m a n E d w i n Lacierda pointed out that the stock market had even reported “another record high last week amid all the differences we are experiencing.”

Lacierda admitted that the death of SAF commandos in a protracted firefight with the forces of the Moro Islamic Liberation Front (MILF) and Bangsamoro Islamic Freedom Fighters (BIFF) may have had an emotional effect but “nothing nega-

tive in the business sector.”

“Certainly, this [Mamasapano massacre of SAF commandos] has an effect on the state of bereavement and mourning for our Fallen 44,” he said, “but we have not seen any indication otherwise on the business market—anything negative in the business sector.” “ S o f a r, t he re h av e b e e n no indications that this [massacre] has [hurt the economy].

Certainly this has an effect on

the state of our bereavement and mourning for our Fallen 44...”

Lacierda added.

He pointed out that according to Trading Economics, the Philippine Stock Market even registered 7689.90 index points in January 2015, noting this was an “all-time high since 1986.”

The country is mourning the death of 44 members of the police’s elite group in what the government said was due to a “misencounter” with members of MILF and BIFF on January 25 in Mamasapano, Maguindanao.

The SAF members were on a mission to serve the arrest warrants of two suspected terrorists—Filipino bomb maker Abdulbasit Usman and Malaysian Zulkifli bin Hir, also known as Marwan, reportedly a leader of the terrorist group Jema’ah Islamiyah.

President Aquino has declared January 30 as a Day of Mourning for the fallen heroes.

Despite all the ruckus on the incident, the trading at the local bourse,

among others, remains strong.

Investors have been trooping to the Philippines’s stock market following the announcement by the European Central Bank of its €60-billion monthly stimulus program from March 2015 to September 2016.

Analysts have been projecting higher capital inflows to the Philippines as a result of some negative developments in advanced economies, except in the US as investors look for higher yields.

Relatively, the Philippine peso has been generally strong against the dollar buoyed by the capital flows, as well as investors’ preference on emerging markets like the country.

Analysts have been saying that the Philippine economy remains among the top destinations of foreign investments because of the proven strength of the country’s fundamentals like the external payments position, sound banking system and improvement in its fiscal management. With PNA

Bulacan vegetable fest Sen. Cynthia A. Villar happily looks at the different kinds of vegetables produced in San Ildefonso, Bulacan, during its celebration of the Fifth Gulay Festival. In her speech,

the senator, who chairs the Senate Agriculture and Food committee, pushes for the innovative concept of farm tourism, considered a responsible approach in tourism and agriculture. She stresses that farm tourism, or the business of attracting visitors and travelers to farm areas for educational and recreational purposes, have been helping numerous families and communities all over the Philippines.

150+ Subic Freeport investors, locators join SBMA integrity program

By Henry Empeño Correspondent

S

UBIC BAY FREEPORT—Locator companies in this free port are supporting a move by the Subic Bay Metropolitan Authority (SBMA) to break the cycle of corruption by institutionalizing ethical business practices through the Integrity Pledge program.

SBMA Chairman Roberto Garcia said that last Friday more than 150 executives from various investor-firms here signed the Integrity Pledge, which seeks to eliminate bribery and other forms of corruption in order to foster a more conducive investment climate.

The signatories included big-ticket investors like Philip Morris Philippines Manufacturing Inc., which operates its regional leaf warehouse here, Ayala Malls’ Harbor Point, as well as government offices like the Bureau of Customs (BOC)-Port of Subic.

Garcia said that Collector Arnulfo Marcos of the BOC at the Port of Subic was the first signatory to submit his accomplished and signed form during the mass-signing ceremony held at the Subic Bay Exhibition and Convention

Center on Friday.

“This marks another significant milestone for the SBMA in its fight against corruption,” Garcia said in statement on Monday. “Good governance means good business, and we have seen the fruits of good governance,” he added. The SBMA official also pointed out that aside from being a good corporate citizen, companies that sign this pledge will get certain perks given to clean and ethical companies.

The SBMA’s Integrity Program has been institutionalized in the Subic Bay Freeport starting last year with the creation of a Code of Conduct for all employees and officials of SBMA. The program was endorsed by the SBMA board of directors through a board resolution in March 2014.

With this, the Subic agency implemented various measures to ensure transparency and implemented strict guidelines on receiving and giving of gifts, contributions, sponsorships and other tokens from or to all sectors.

All these, Garcia explained, were designed to impress upon everybody that the SBMA is serious in breaking the cycle of corruption.

Following the institutionalization of

Derrick Manuel, manager of Harbor Point Ayala Mall, submits a signed Integrity Pledge to Subic Bay Metropolitan Authority Chairman Roberto Garcia during the mass-signing ceremony for Subic Bay Freeport locators. Also in photo are SBMA Deputy Administrator for Business Joy Alvarado, Subic Bay Freeport Chamber of Commerce President Rose Baldeo, and Dr. Edilberto de Jesus of the Asian Institute of Management. Photo courtesy of SBMA

the program, the SBMA now required stakeholders like Subic Bay Freeport locators, neighboring local government units that receive revenue shares from the SBMA, and suppliers to sign the Integrity Pledge before the agency makes

any transaction with them.

The Integrity Pledge, which was introduced in the country by the Makati Business Club and the European Chamber of Commerce of the Philippines , is a document signed by heads

of companies and agencies to express commitment to ethical business practices and to support a national campaign against graft and corruption.

Garcia said the pledge is regarded as an effective tool aimed at preventing corruption in public contracting, as it enables companies to abstain from bribing by providing assurances that their competitors will, likewise, refrain from bribery.

The pledge stipulates rights and obligations of the signatories to the effect that neither side will pay, offer, demand, or accept bribes, collude with competitors to obtain contract, or engage in such abuses while executing any contract.

“At the same time, Garcia said, the pledge enables government agencies like the SBMA to reduce the high cost and distorting impact of corruption on private procurement, privatization or business licensing, and issuance of permits.

According to Dr. Edilberto de Jesus of the Asian Institute of Management, of the hundreds of companies nationwide that applied and were assessed by the Integrity Initiative Office, only 33 had passed and only 12 were given Integrity Pledge certifications.

briefs shell, phoenix to rollback diesel pump prices Pilipinas Shell Petroleum Corp. and Phoenix Petroleum will rollback their diesel pump prices by 30 centavos on Wednesday at 12:01 a.m. for Shell and at 6 a.m. for Phoenix.

On the other hand, both companies noted no change in gasoline and kerosene prices.

Phoenix said the decrease was due to the appreciation of the peso in the foreign exchange.

The energy department’s oil monitor recorded on January 27 showed diesel prices in Metro Manila were around P24 to 29.04 per liter, having a common price of P26.20 per liter. PNA

govt eyes to tap google earth in mid-decade survey DAVAO CITY—The Philippine Statistics Authority (PSA) would use the Google Earth mapping to make estimates of populations in areas that pose statistical problems for enumerators in the past, a statistical officer in the Davao region said.

Google Earth, a free application in the Google sets of computer and Internet softwares, would be used to peek into a certain locality to estimate the number of houses and enable statisticians and survey enumerators to extrapolate the actual population of the place, said Randolph Gales, provincial statistical officer of the PSA. He said the application has become an internationally accepted tool in population surveys and in the case of the Philippines, it was tapped to make estimates of population, or correct “statistically improbable data” in the critical and interior villages of the Autonomous Region in Muslim Mindanao (ARRM).

“Google Earth enables us to count the houses and residential structures, and allows us to make estimates of the possible population count of the place,” he said. “For instance, in the ARMM, we may estimate the population from the number of houses counted from the Google Earth and multiply them with the average number of members of a household in the ARMM, which is about eight,” Gales said.

The ARMM population survey in 2010 delayed the release of the national and regional population data following questionable count in some areas, he added. “There were areas that posted 8-percent growth, which is statistically improbable,” Gales said.

He would not comment though on what was the intention of local officials but the government suspected that enumerators were also involved.

The PSA is conducting the middecade population survey this year, Gales said, and would continue to focus also on housing, like the total floor area and ownership. Housing is a poverty indicator, Gales pointed out.

He said the population may also allow the government to make an initial look at the migration trend, although “it needs a separate survey to determine the migration pattern in the Philippines.” Manuel T. Cayon

70 nueva vizcaya sitios listed in 2015 electrification program BAYOMBONG, Nueva Vizcaya —The National Electrification Administration (NEA) has approved at least 70 sitios (subvillages) in this province for its electrification program this year.

Rep. Carlos Padilla of Nueva Vizcaya said these sitios are located in the remote barangays of the province.

“These sitios will now be the target of the NEA’s electrification program with the corresponding funds allotted for these projects,” Padilla said.

The electrification program, he added will be implemented by the Nueva Vizcaya Electric Cooperative.

Padilla said the electrification program will continue to be implemented in the province until all subvillages will be fully energized. PNA

Opinion BusinessMirror

A6 Tuesday, February 3, 2015

editorial

Philippines: Southeast Asia’s strong man

W

E admit that we did stretch things a little with the title of today’s editorial. The original from Bloomberg actually was “Move Over Thailand, the Philippines is Southeast Asia’s Strong Man.”

The Bloomberg article is a comparison of the Philippines with Thailand and they believe we come out on top. Since both foreign and local commentators have compared our two countries closely during the last two decades, it is nice to finally see the Philippines in the winner’s circle.

The article looked at five factors that support the assessment that the Philippines is Southeast Asia’s strongest economy both now and potentially in the future. We will not take the opportunity to criticize our rival Thailand as the Bloomberg article did but will only mention those variables about the Philippines that Bloomberg highlighted.

Regarding our gross domestic product growth, the Philippines has been expanding steadily since 2006 even with some ups and downs. In 2006, the economic growth rate of the two countries was almost identical.

The Philippines has never had a good reputation for its manufacturing business. But quietly and without much notice, we are actually making some good strides in producing value added goods. Here again, our manufacturing sector has a mostly consistent growth trend going back to 2002. Eventually if you keep growing, even slowly, it begins to have a positive economic effect.

Merchandise exports have also been in an uptrend. In this category too, we have never excited anyone with the amount of our exported goods. But since 2009, the trend has been positive and growing stronger. Bloomberg notes that in the World Economic Forum’s Global Competitiveness Index, the Philippines has been steadily climbing over the last decade.

Both government and consumer consumption has moved our economy along. Rising wages and more jobs are fueling consumer growth and a good fiscal condition is helping the government spend more over time.

Positive analysis of the Philippines usually mentions our demographic sweet spot. From Bloomberg: “About 31 percent of the Philippine population was 10-24 years old last year, compared with 20 percent in Thailand”. While having a young population always seemed to be an economic burden, in the last decade that group is now part of the workforce. “Thailand is seeing the most rapid reduction in the ranks of its working-age population in Southeast Asia.”

The conclusion about our newly found ‘Strong man’ status is that “With a greater focus on manufacturing, a young population and a president committed to stable growth, the Philippines is pulling ahead”.

Now, we need to keep the trend going and capitalize on our advantages even more. Watch out Asean; the Philippines is on the move higher.

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Beyond the Mamasapano tragedy Manny B. Villar

THE Entrepreneur

T

HE Comprehensive Agreement on the Bangsamoro between the government and the Moro Islamic Liberation Front (MILF), which was signed in October 2012, brought hopes that peace would now reign in Mindanao, and, in turn, would accelerate economic development in the resource-rich island.

In line with the agreement, the government submitted to Congress in September last year the proposed Bangsamoro Basic Law (BBL), which would abolish the Autonomous Region in Muslim Mindanao (ARMM) and establish the new Bangsamoro political identity in its place. Both houses of Congress have been conducting public hearings on the BBL, which the government hopes to enact

by March this year.

Sadly, the process has been stalled because of a horrible tragedy. About 392 officers and members of the Philippine National Police Special Action Force (PNP-SAF) launched an operation inMamasapano, Ma-

guindanao last January 26 to arrest Jemaah Islamiyah (JI) leader Zulkifli bin Hir, also known as Commander Marwan, and Abu Sayyaf leader Abdul Bassit Usman.

Marwan, one of the most wanted JI leaders operating in Southeast Asia, was believed to be involved in several bombing and terror attacks in Mindanao. Usman, a foreign-trained bomb maker, is believed to have links with JI and al-Qaeda. Marwan was reportedly killed during the operation, while Usman escaped arrest.

However, the PNP-SAF team of commandos clashed with members of the MILF and the Bangsamoro Islamic Freedom Fighters (BIFF). The

PSE: January 2015 John Mangun

OUTSIDE THE BOX

T

HE past month and a half has been a roller-coaster ride for the Philippines and a period that will be noted and talked about for years to come.

We ended 2014 with perhaps the most holiday filled two weeks in history of the country. The first week of January kicked off with over 5 million people participating in the Procession of the Black Nazarene in Manila, bringing section of the city to a virtual standstill.

Meanwhile, preparations were in full swing for the arrival of Pope Francis causing both excited anticipation and traffic jams. On January 15th, the Papal visit began, and while this was a momentous event, no one could anticipate what the next few days would bring.

The official greeting at Malacañang gave people some insight into the personality of Pope Francis, watching him almost eagerly interacting with the employees of the palace and invited dignitaries in a somewhat unexpected intimate fashion.

His trip to the Tacloban area to visit with typhoon victims was cut short because of an approaching ty-

phoon. The irony was unmistakable.

Further, the homilies he delivered both at the Tacloban Mass and at the University of Santo Tomas were both nearly completely off-script from his prepared remarks. He instead spoke extemporaneously with words and an attitude that directly touched millions of Filipinos who were glued to their television sets.

While still basking in the glow of the Papal visit and ready to get back to business as usual, the last week of January saw the deaths of 44 members of the Special Action Force of the Philippine National Police.

And as January moved into February, the government released the fourth quarter and year end gross domestic product growth that stunned most of the experts coming in well above expectations for the quarter and above some estimates for the full year.

January 2015 was a month for the history books.

BIFF is composed of MILF members who disagreed with the peace agreement.

Public outcry, with many people denouncing the incident as a massacre and some even calling for an “all-out war,” prompted the Senate and the House of Representatives to suspend the hearings on the BBL. The death of 44 PNP-SAF troopers brought forth a lot of questions that at the minimum require that we pause. For instance, it would be interesting to find out what the young MILF members think about the BBL and the future of Mindanao. They will take over when the old generation, with which the government has been negotiating for peace, is gone.

Will they uphold the peace agreement and the BBL? For the Filipinos in general, and for the families of the slain police troopers, we ask: what price do we pay for peace?

I’m not calling for a total halt to the government peace efforts.

However, because of what happened in Mamasapano, we should, at the minimum, take a moment to pause.

It would be an insult to the men who gave up their lives to enforce the law if we act as if nothing happened.

For one, we should assess the people’s sentiment regarding the peace agreement and the BBL, especially after the tragedy. There should be a wider assessment of the peace negotiations particularly because of the constitutional issues that are coming up. Such assessment should consider the views of constitutional experts and other groups.

In the light of the Mamasapano incident, the people deserve clear proof of the sincerity of the MILF in dealing with the government. Otherwise, the peace agreement and the BBL will just be useless documents, and we are giving up so much for nothing.

The death of the 44 PNP-SAF troopers should serve as a lesson and constant reminder that Mindanao will continue to be a region of conflict rather than of peace and prosperity until all sides sincerely commit to peace.

Let me take this opportunity to express deep condolences with the families of the PNP-SAF who died in Mamasapano. They are heroes.

While all of this was happening, the Philippine stock market was booming higher. From the last preholiday day of stock market trading—December 19th—through January 30th, the Philippine Composite Index (PSEi) gained 565 points or 7.9 percent.

The 6.35 percent PSEi increase in the calendar month of January is not unusual. Price increases of this magnitude were similar in February 2014 as well as during January, February, and October of 2013 and January 2012. The largest most recent one-month gain occurred in September 2010 when the PSEi rose 15 percent. However, do not entertain the idea that the increase in the price of local stocks was because of all that cheaply borrowed foreign money. The net foreign selling for the month of January 2015 on the Philippine Stock Exchange (PSE) was P23.6B. My personal involvement in the PSE started before there was a PSE. Back then, we had the Makati and Manila Stock Exchanges. Many things have changed through the years but some things have stayed the same.

We still have two redundant trading floors and by the time the PSE unifies the floors in one building, online trading has made the trading floor obsolete. The London Stock Exchange has not had a genuine trading floor since 1986. All the trading is done electronically.

Some things do not change.

The PSE trades in anticipation of the future as do most other stock markets. That is why prices do not react the way people expect them to as news is released. When everything seems stable in the ‘outside’ world and stock prices are going lower, then it is time to worry.

In 2013, the local stock market was up over 1,000 points and 20 percent in the first five months. Then it began going down and eventually lost all the gains for the year. But many bad things happened in 2013.

Look at the list: Typhoon Maring/ Trami, the Priority Development Assistance Fund scam, the Zamboanga City siege, the Bohol earthquake and finally Typhoon Haiyan/Yolanda.

Except, the first of those events happened in August when the market had already lost nearly 1,000 points.

Now in 2015 the market has started with a big boom to the upside and the forecasts for the year keep going higher almost daily. The last I saw was for PSEi 9,350. Sounds good to me. But stock market investing is like raising a child. Every day is a new adventure.

For comments, e-mail mbv.secretariat@gmail.com or visit www. mannyvillar.com.ph.

E-mail me at mangun@gmail.com.

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

Opinion BusinessMirror

opinion@businessmirror.com.ph

Children suffer and die in Gaza. Who notices?

Democratic countries uniting?

By Najla Shawa Chicago Tribune/TNS

I

N the Gaza Strip, the main daily activity of every family is to try to secure and maximize the use of energy. Even the lives of “privileged” families—those whose houses weren’t damaged or destroyed in the recent war and who have some money to pay inflated prices and middlemen—are affected.

Power is cut up to 18 hours per day. When there is electricity, we rush to recharge all our batteries, heat water, operate the water filters, check the fuel level in the electrical generator, check the fuel level in the car and so on. Most lack these basics.

When the power is out, we need to find other ways to stay warm, to cook, to work, to live.

My husband and I have been waiting for several weeks to refill our cooking-gas cylinders. Given the insecurity of life in Gaza, we’d like to have some reserves, but distributors aren’t able to respond to the demand. Israel limits the quantity of cooking gas that enters the Gaza Strip, and it’s simply not enough. We have to get on a list and wait for our turn. Even before the recent, historic winter storm hit, we couldn’t find any to refill more than one cylinder for cooking. It took effort and connections to get another one refilled so that we could keep our newborn daughter warm during the storm.

As parents and as human beings, our hearts ache for the Palestinian children who have minimum shelter and are hardly ever warm and dry.

Five months after the cease-fire that ended Israel’s 50-day assault, there are still 100,000 people sheltering at designated UN schools or making do in their ruined homes.

During the war, we thought things couldn’t get worse. Now we realize they can. Thousands of families suffered from cold caused by Huda, a storm that brought historic low temperatures. In a region known for its moderate climate, the bad weather hit while thousands were displaced in the Gaza Strip, Syria and elsewhere.

On the second day of the storm, we heard the terrible news. Two-monthold Rahaf Abu Assi from Khan Younis had been in the warmest room of the family’s war-damaged home. Her mother came to check on her while the family sat in a part of the house that hardly had a roof. The baby started to turn blue and showed trouble breathing. The family rushed Rahaf to the hospital, but it was too late. The cold had blocked her bronchial tubes. At least three more infants died of cold that week. Adel Al Lahham, 1 month old, had been living in a makeshift, tin-sheet-covered home in Khan Younis. Salma Al-Massri, 3 months old, had been living in a school used as a shelter in Beit Hanoun. The last tiny victim was 18 months old. Fadi Qudeih was in temporary caravan housing provided as humanitarian assistance, but it wasn’t warm enough to sustain his life.

Israel would surely blame Hamas

As parents and as human beings, our hearts ache for the Palestinian children who have minimum shelter and are hardly ever warm and dry. Five months after the cease-fire that ended Israel’s 50-day assault, there are still 100,000 people sheltering at designated UN schools or making do in their ruined homes. for these deaths. Here in Gaza, however, we blame Israel and, increasingly, governments around the world that have successfully achieved their own independence and then disregarded those still struggling for freedom.

The Gaza Strip has 1.8 million people locked into one of the most densely populated areas in the world.

Israel controls the economy, natural resources and communications. It also prohibits the vast majority of Palestinians in Gaza from traveling, permitting only a small number to enter. Egypt controls the other side of the Gaza Strip, also imposing restrictions due to political tensions with Hamas.

Largely a refugee population expelled from homes and private property in what is now Israel, people here have endured three Israeli aggressions in six short years. In 2008 to 2009, 1,391 Palestinians were killed and 5,300 were injured. In 2012, Israeli attacks resulted in the death of 167 Palestinians. The latest assault in the summer of 2014 wrought the most damage to essential infrastructure, schools and hospitals. At least 2,139 Palestinians were killed and more than 11,000 were injured.

More than 500 children were killed.

The greatest damage was to our sense of hope.

The word “reconstruction” has earned a bad reputation since the International Conference on Reconstruction in Cairo back in October.

For us, “reconstruction” is like a broken promise. The UN-brokered agreement has not changed or eased any bit of Israel’s strangulating siege on the Gaza Strip. Some people even accuse the UN of managing this siege rather than challenging it.

At least during the war, the international community was paying attention. Now, even though we’re a “protected” population under international humanitarian law, the Gaza Strip seems to be forgotten, and the senseless deaths of our babies scarcely register with the international community.

Tuesday, February 3, 2015

Edgardo J. Angara

T

HE International Monetary Fund recently reported that for the first time, India’s economic growth will outpace that of China’s in 2016, echoing what Bloomberg, Businessweek and Goldman Sachs said months before.

India’s projected rise will owe as much to China’s economic slowdown as it will to favorable demographics with the United Nations saying that the sub-continent will become the world’s most populous country by 2028. Like the Philippines today, India boasts a relatively young workforce that may spell immense demographic dividends.

Such optimism over India also arises from the election of Prime Minister Narendra Modi who is well-poised to implement significant

reforms given the landslide victory of his Bharatiya Janata Party last May 2014.

And it appears with his ascent to leadership, India may break from its Cold War-era foreign policy of nonalignment and become a more active global player.

Last year, Modi ended a 5-day tour of Japan with commitments from Japanese Prime Minister Shinzo Abe to regularize joint maritime and military exercises throughout the Indian Ocean and to facilitate

the transfer of Japanese civil nuclear technology to India.

In a Tokyo Declaration for IndiaJapan Special Strategic and Global Partnership, both prime ministers “affirmed their shared commitment to maritime security, freedom of navigation and overflight, civil aviation safety, unimpeded lawful commerce and peaceful settlement of disputes in accordance with international law”—noting that their respective countries are among Asia’s oldest democracies.

More recently, Prime Minister Modi received US President Barack Obama who told a large delegation of Indian youth that “America can be India’s best partner” and emphasized that “the world will be a safer and a more just place when our two democracies—the world’s largest democracy and the world’s oldest democracy—stand together.”

By the end of Obama’s state visit to India, both leaders had signed the dramatic US-India Joint Strategic Vi-

Will water consumers benefit?

Ernesto M. Hilario

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ABOUT TOWN

AST December the interim Appeals Panel of the Paris-based International Chamber of Commerce (ICC) upheld the rateadjustment proposal made by Maynilad Water Services Inc. in October 2103. The ICC ruling paves the way for the alternative rebasing adjustment of Maynilad that will result in a 9.8-percent increase in the 2013 basic water charge of P31.28/cubic meter (cu m), inclusive of the P1 currency exchange rate adjustment (Cera), which the Metropolitan Waterworks and Sewerage System (MWSS) has now incorporated into the basic charge. Maynilad’s mother companies are Metro Pacific Investments Corp. (MPIC) and DMCI Holdings.

According to Maynilad presidentCEO Victorico Vargas, the ICC decision “confirms that the concession agreement works and restores investor confidence in public-private partnership program of the government...This also ensures the continued implementation of Maynilad’s capital expenditure projects that are intended to benefit further our customers.”

Maynilad chief finance officer Randolph Estrellado revealed that the Appeals Panel’s approval of Maynilad’s alternative rebasing adjustment translates to a 9.8 percent increase in the 2013 average base rate of P31.28 per cubic meter, or P3.06 per cu. m.

For most customers using an average of 20 cu. m., the new rate means an adjustment of P1.68 per cu. m.

“It is already lower than the original application because we submitted an alternative business plan for arbitration, as allowed under the rules,” Estrellado said. “We already took into consideration the [MWSS] Regulatory Office’s reduction in

capital expenditures and disallowed expenses.”

And despite the two-year delay in the adjusted rates, Estrellado said Maynilad is willing to stagger collection of the increase over the remaining three years of the fiveyear rebasing period that started in 2013, or roughly a one-peso rise per year from now till 2018.

Estrellado explained that Maynilad is proposing a collection by installment “to mitigate the impact to our customers.”

“Of the P3.06/cu.m. increase we have now, about P2 accounts for the recovery of income tax,” Estrellado said. “We still have roughly P60 billion that we need to recover and that doesn’t include future investments.”

Other than the income tax recovery, he said the rate increase would cover unfinished projects such as sewerage coverage expansions and improvement of water pressure in households from the current 7 pounds per square inch (psi) to 16 psi.

For Maynilad, the ICC decision would benefit Metro Manila con-

sumers, most especially ordinary Filipinos who had to cope with scarce and expensive potable water during the pre-privatization years. It says that the arbitrary rate cut ordered by the MWSS would have undermined Maynilad’s cash-intensive, long-term modernization program to supply potable water to as many households as possible in its West Zone concession.

Despite the almost two-year delay in the adoption of the new rebasing rate (which was supposed to take effect in 2013), Maynilad has offered to collect the higher charge over the three-year period between now and 2017 for the benefit of its roughly 9 million customers.

A fair rate adjustment is reasonable because it is part of the concession deal in which Maynilad had agreed to invest heavily to modernize the system, in view of the government’s lack of cash to improve the system and MWSS’ $1-billion debt.

The new rebasing rate would allow Maynilad to go full steam ahead with its modernization program, which includes sewerage coverage expansions and improvement of water pressure in households. It will also restore investor confidence in the Philippine economy and in President Aquino’s pet project Public-Private Partnership (PPP).

A study made in December 1996 by the Philippine Institute for Development Studies (PIDS) observed that the government’s water pricing policy back then undervalued water because “it does not reflect its full economic cost, that is, the direct supply cost of production and distribution, the opportunity cost of water and its cost of externalities. Historically, this has led to a wasteful usage of water by final consumers and of raw water by water utility firms as evidenced by high non-revenue water (NRW);

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sion for the Asia-Pacific and Indian Ocean Region where they affirmed “the importance of safeguarding maritime security and ensuring freedom of navigation and over flight through the region, especially in the South China Sea.” They called on all parties “to avoid the threat or use of force and pursue resolution of territorial and maritime disputes through all peaceful means, in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea.” India reaching out to fellow democracies makes for a safer world, as democratic countries do not go to war against each other. A more active India could also help cast a much wider safety and security net for Asia-Pacific countries who appear helpless and beholden to their economically powerful but politically belligerent neighbor.

E-mail: angara.ed@gmail.com.

by intersectoral misallocation of raw water in favor of less valuable uses; worsening of water pollution problems; and failure to anticipate the necessary investments for water supply expansion in a timely manner.” With the privatization of MWSS, the PIDS researchers concluded that “Metro Manila’s water tariff structure is now the lowest among major cities in the Asean as well as among water districts within the country.”

In a paper, former dean Raul Fabella of the University of the Philippines School of Economics considers the turnover of MWSS operations to the two concessionaires “a singularly successful structural reform in the annals of Philippine political economy.” He argued thus: “The privatization of MWSS was clearly a triumph of the principle of comparative competence—the private sector proved more competent at the delivery of water and sewerage services than the state. How it was clinched is a parable for those seeking to whittle down the compass of incompetence and inefficiency in a weak-governance environment.

Where the state is weak and therefore easily hijacked, it is much better to cede territory to the market.”

The same sentiment is articulated

by Dr. Rene Azurin, a management professor and member of the 2005 Consultative Commission (ConCom) that studied proposed amendments to the 1987 Charter. He said: “Letting private firms operate monopolies— like electricity transmission grids, water distribution networks, and railway transportation systems— is common for governments these days, principally because a private firm can be more efficient than a bureaucratic government in operating anything.”

E-mail: ernhil@yahoo.com.

The future of wetlands, the future of waterbirds–an intercontinental connection

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By Jacques Trouvilliez | InterPress Service

ONN—The first global treaty dealing with biodiversity was the Ramsar Convention–predating the Rio processes by 20 years.

Ramsar aims to conserve wetlands, the usefulness of which has been undervalued–even the eminent French naturalist of the 18th century, the Comte de Buffon, advocated their destruction–and which have suffered large losses in recent decades.

Far from being wastelands, wetlands provide invaluable services, replenishing aquifers that supply drinking water and filtering out harmful pollutants. By maintaining a healthy environment, wetlands help ensure human well-being.

While the Ramsar Convention has had to deal with a broader spectrum of wetland issues over

the years, it should be remembered that its full title includes “especially as waterfowl habitat,” and in the African-Eurasian Migratory Waterbird Agreement (Aewa), Ramsar has a strong ally with a clear focus on waterbird conservation in the African-Eurasian Flyway.

The areas designated as Ramsar Sites form an important part of the network of breeding, feeding and stopover grounds that are indispensable to the survival of the 255 bird populations of listed under Aewa.

Ramsar Sites are vital “hubs” in the network of habitats that constitute the African-Eurasian fly-

way along which millions of birds migrate in the course of the annual cycle. They include habitats as diverse as the Wadden Sea in Europe and the Banc d’Arguin in Mauritania, both also designated as Unesco World Heritage Sites and important staging posts for birds migrating between Arctic breeding grounds and wintering sites deep in Africa.

Despite being often far apart geographically and different morphologically, these sites are inextricably linked by the birds that frequent them.

The definition of “wetland” extends to fish ponds, rice paddies, saltpans and some shallow marine waters, so Ramsar has sites of significance to other species covered by the Convention of Migratory Species, under which Aewa was concluded.

Examples are the Franciscana dolphin (the only dolphin species

to inhabit wetlands) found in the estuary of the River Plate and along the coast of South America; and the European eel–a recent addition to the CMS listings–which spends most of its life in rivers but spawns and then dies in the Sargasso Sea. But it is waterbirds that have the strongest links to wetlands and the future of many species is in doubt as a result of the continuing reduction in area of these most productive of habitats. Of great concern is the fate of the mudflats of the Yellow Sea which are under increasing pressure from human developments because tied to them is the fate of a number of threatened shorebirds.

Lake Natron in the United Republic of Tanzania is the only regular breeding site of over two million Lesser flamingoes. Applications have been made to exploit the area’s deposits of soda ash leading to fears that irrevocable damage would be

done to the site resulting in the species’ extinction.

The habitats of Andean flamingoes–the Puna and Andean Flamingoes–are facing similar problems as illegal mining activities have eroded the nesting sites and contaminated the water, exacerbating other threats such as egg collection.

Fragile wetland ecosystems also fall victim to man-made accidents– the explosion of the Deepwater Horizon oil platform in the Gulf of Mexico and the Sandoz chemical works fire in Basel, Switzerland in 1986 being just two examples of countless incidents, both leading to the death of thousands of birds and fish.

Wetlands are vital for birds–and especially waterbirds–but it is also the case that the birds are vital to the wetlands, playing a major role in maintaining nature’s balance.

Government representatives will gather in Paris later this year in the

latest effort to seek agreement on the steps necessary to arrest the causes of climate change. Wildlife is already feeling the effects and one of the best ways to ensure that animals can adapt is to ensure that there are enough robust sites providing the habitat and food sources at the right time and in the right place.

The theme chosen by the Ramsar Convention for this year’s campaign is Wetlands for Our Future and there is a particular emphasis being placed on the role of young people. While wetlands are of course vital for humans, they are no less important for the survival of wildlife and to a great extent also depend on the birds that live in them.

It is the role of Aewa to provide a forum where the countries of Europe, West Asia and Africa can work together to maintain the network of sites making up the AfricanEurasian flyway.

2nd Front Page BusinessMirror

A8 Tuesday, February 3, 2015

PHL statistical system may already be outdated–Neda

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By Cai U. Ordinario

he National Economic and Development Authority (Neda) disclosed that the Philippine Statistical System (PSS) may already be outdated, particularly in the design of its surveys and the parameters the government uses in coming up with official data.

Neda Director General and Socioeconomic Planning Secretary Arsenio M. Balisacan said this is the reason the PSS is currently undergoing a review, which will be completed in two years.

“The parameters we’re using in calculating statistics of interest might be already too outdated. And so the World Bank is helping us, especially in the provision of technical expertise, to improve the statistical system. We hope to complete that within the next two years,” Balisacan said.

Balisacan explained that the designs of some of the surveys used to complete data, such as the National Income Accounts (NIA), which includes

US. . . Continued from A1 the woeful state of Iraq’s army, White House resistance to any plan likely to cause heavy civilian casualties, and at least some support in the Sunni-dominated city for the occupying force.

Although President Barack Obama has repeatedly vowed not to reintroduce US ground troops in Iraq, Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, told Congress in November that he would consider deploying a limited number of US Special Forces to help direct air strikes and assist the Iraqi army in an assault on Mosul.

Retaking the city, home to about 1.4 million people, almost certainly would require urban combat against a tenacious foe.

“Fighting inside a city like that will definitely not be easy, going street by street, house to house,” said Ferhang Asandi, a Kurdish military officer. IS militants are “trying to put all their effort and their fight in anticipation of

gross domestic product (GDP) data, or the Labor Force Survey, which focuses on employment data, may already be outdated.

He said the design of the survey was not updated to include recent events, such as the rise of the business-process outsourcing industry, or the decline in the share of the agriculture sector in GDP. “We want to address the issues raised about data and one of this is the issue in the computation of the NIA,” Balisacan added.

Balisacan said the review of the PSS is only the second phase of the improvement of the statistical system. The first part of this process was the reorganization of the Philippine

the battle because they know that, if Mosul is done, it means the end”of a major source of prestige and recruitment.

The stakes are equally high for Iraqi Prime Minister Haider Abadi’s fragile government in Baghdad, which has struggled to rebuild its army since entire divisions collapsed before the insurgent onslaught last year. Another military defeat at Mosul would undermine government authority and shift the momentum back to IS. “There is no way to create any form of unified or stable Iraq as long as Mosul is in hostile hands,” said Anthony Cordesman, a senior military analyst at the nonpartisan Center for Strategic and International Studies in Washington.

“Lesser victories are only a prelude to retaking Mosul.”

Warplanes from the US-led coalition have dropped more than 6,000 bombs on IS positions in Iraq and See “U.S.,” A2

SAF44 FUND DRIVE

BALISACAN: “The parameters we’re using in calculating statistics of interest might be already too outdated. And so the World Bank is helping us, especially in the provision of technical expertise to improve the statistical system. We hope to complete that within the next two years.”

Statistics Authority (PSA).

The PSA is the country’s main statistical agency. It combined the National Statistics Office, National Statistical Coordination Board, Bureau of Agriculture Statistics and the Bureau of Labor and Employment Statistics into one agency.

“The first part of it was the reorganization that’s done by combining all the statistical agencies, so we can avoid these conflict-of-interest issues in the generation of statistics. The second phase of this exercise is to review the changes in the methodologies in the national income accounts,” Balisacan said.

The PSA’s current head is national statistician Lisa Grace Bersales. She was appointed by President Aquino in April 2014 as the country’s first PSA national statistician.

www.businessmirror.com.ph

MERALCO, PARTNERS WANT NEW 455-MW PLANT in QUEZON READY BY 2018

By Lenie Lectura

A

top official of the Manila Electric Co. (Meralco) on Monday said the proponents of the 455-megawatt (MW) coal-fired power plant in Mauban, Quezon, want the construction to be fast tracked to provide much-needed electricity in the summer of 2018.

“We are hoping that we can move in an accelerated pace because it’s needed. We are trying to have it in place, hopefully, in time for summer 2018,” Meralco President Oscar S. Reyes said.

New Growth BV, a wholly owned subsidiary of Electricity Generating Public Co. Ltd. (Egco) of Thailand, which is 25-percent owned by Electric Generating Authority of Thailand, and Meralco PowerGen (MGen), the power-generating firm of Meralco, formed San Buenaventura Power Ltd. Co. (SBPL) for the 455MW coal-fired power-plant project in Mauban, Quezon.

MGen will own 51 percent of the power facility, including rights to assign up to 2 percent to an approved assignee, while New Growth BV holds the remaining 49 percent.

Construction has yet to start because SBPL is still finalizing a contract with

its chosen engineering, procurement and construction contractor.

The power plant will be adjacent to the existing 460-MW coal-fired power plant of Quezon Power Philippines Ltd., which is mostly controlled by Egco.

Reyes did not say when the construction will start, but stressed that the country is “ better off with comfortable level of supply.”

SBPL earlier signed a power supply agreement with Meralco for the sale and purchase of the plant’s entire output. The term of the PSA is 20 years from the commercial operation date. The effectiveness of PSA, however, will be subject to review and approval of the Energy Regulatory Commission.

The power project is envisioned to be the first supercritical highly fuel efficient, reliable and environmentfriendly pulverized coal-fired power plant in the country. This is to meet the growing needs of residential, commercial and industrial customers in Meralco’s franchise area and the Luzon grid.

Meralco, meanwhile, is the country’s largest power-distribution utility firm assigned to provide electricity in Metro Manila, Bulacan, Cavite, Rizal and in some parts of Batangas, Laguna, Quezon and Pampanga.

ABE CONFRONTS WIDER ISLAMIC STATE THREAT I slamic State’s (IS) warning to Japan after beheading two of its citizens met with tough words from Prime Minister Shinzo Abe, who is moving to bolster his country’s ability to defend itself.

As Japanese people took to social media to mourn the murder of journalist Kenji Goto and Haruna Yukawa, Abe spoke on Sunday of his anger, saying in a statement, “I am infuriated by these inhumane and despicable acts of terrorism,”adding, “I will never forgive these terrorists.” Japan would work with other countries to make terrorists atone for their crimes while protecting its people, he said.

Abe faces a delicate task as he seeks to ease Japan into a larger role in global security, in a policy known as “proactive pacifism.”With IS warning Japan is a target, he will need to avoid a backlash domestically from the killings in a society that has long cherished its pacifism.

“Abe has to be conscious of domestic political challenges,” said Peter Jennings, executive director of the Australian Strategic Policy Institute in Canberra. “There seems to be some doubt in the public mind about supporting a more engaged role,” he said. “How the Japanese Continued on A2

Japanese Prime Minister Shinzo Abe (second from right) talks during a ministerial meeting at the prime minister’s official residence in Tokyo on Sunday, after the release of an online video that purportedly shows an Islamic State group militant beheading Japanese journalist Kenji Goto.

Japan condemned with outrage and horror on Sunday the video posted on militant web sites late Saturday, Middle East time. Dtefense Minister Gen Nakatani (right) and Chief Cabinet Secretary Yoshihide Suga (second from left) also attended the meeting. AP

Alibaba’s Ma regains spot as Asia’s richest Continued from A1

Support the families of the slain Special Action Force officers. Cash and check donations may be deposited to Citystate Savings Bank Account No. 001-11000038-9 and BDO Savings Account No. 90173473.

Anonymous donations are welcome.

Jonathan Lu and Chief People Officer Lucy Peng.

“The entire e-payments market has just started,” said Li Yujie, an analyst at RHB Research Institute Sdn. in Hong Kong. “In the future, Alipay will capture a lot of this market. When it goes public, it will produce many new billionaires.”

Lu and Peng, both co-founders of Alibaba, each have a fortune valued at about $1.8 billion, based on their stakes in Ant Financial, according to the Bloomberg Billionaires Index.

Shao Xiaofeng, who joined Alibaba in 2005 and has been its chief risk officer in the past two-and-a-half- years, has a fortune of about $1.2 billion, according to the index.

‘Formidable room’

“It’s got formidable room for growth,” said Cyrus Mewawalla, managing director of London-based CM Research Ltd. “As Alibaba expands in global markets, so could Alipay. If technology companies do well, then their owners become billionaires.” Bob Christie, Alibaba’s spokesman, declined to comment on the new valuation and billionaires.

Other Alibaba cofounders and senior executives also emerge as stakeholders of Ant Financial. CEO Daniel Zhang and the other eight shareholders each have a net worth of more than $1 billion, according to the index. Zhang and CEO Lu are among the Alibaba executives who are on the board, along with Ma and Vice Chairman Joseph Tsai, who has a $5.8-billion fortune.

The other senior executives include President Jianhang Jin, Trudy Dai, Alibaba’s chief customer officer, Jian Wang, chief technology officer, and his deputy Peng Jiang. Other billionaire shareholders are Eddie Wu, Zeng Ming, Tiger Wang and Judy Tong.

‘Not happy’

The $50-billion valuation for Ant Financial is about twice the minimum threshold required for the company’s IPO, according to Alibaba’s prospectus.

Ma has controlled Ant Financial, including the Alipay payments business, since spinning off the finance operations into a new company in 2011, citing foreign ownership restrictions.

Ma was ranked China’s wealthiest on the Bloomberg Billionaires Index in August, based on the earlier valuation

for Ant Financial. He briefly overtook Hong Kong property tycoon Li Ka-shing for the top spot in Asia in December.

“I was really not happy in the past three months when people say Jack Ma is the richest person of China,” Ma said in an interview with Charlie Rose last month. “When you have $1 billion, that’s not your money—that’s the trust society gives.”

Ant Financial hasn’t hired investment banks, one of the people said.

The company is planning an A-share sale in China while not ruling out a dual listing, another person familiar said.

Alipay, which is similar to PayPal, has more than 800 million registered users.

Its mobile application has 190 million active users and handles 45 million transactions a day, the company said in October. Bloomberg News