Businessmirror november 16, 2014

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

U.N. Media Award 2008

BusinessMirror

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A broader look at today’s business

n Sunday, November 16, 2014 Vol. 10 No. 38

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

Amid global economic slowdown and volatilities week ahead

ECONOMIC DATA PREVIEW Foreign Exchange

n Previous week: The local currency reverted back to the 44 territory in the previous week, but saw some volatility through the trading days.

The peso started trading at 44.86 to a dollar, appreciating from 45.3 to a dollar in the week before. It then depreciated back to 44.95 against the greenback on Tuesday. The volatility continued as the peso strengthened to 44.87 to a dollar on Wednesday and to 44.865 against the greenback on Thursday. The peso ended the week at a depreciation to hit 44.94 to a dollar. The total traded volume hit $2.47 billion during the week. n Week ahead: Markets are expected to continue to rally back to the 44 territory in the next week, as players watch out for fresh economic leads in both the local and international front.

Balance of payments (BOP) (October)

Wednesday, November 19 n September BOP: The Philippines’s balance of payments (BOP) position—or the broad measure of the country’s economic dealings with the rest of the world—registered a surplus of $98 million in September this year. In comparison, September’s surplus is $24 million lower than August’s $114-million surplus. It is also $367 million lower than the surplus seen in September last year at $465 million. The surplus was also not enough to substantially lift the country’s total nine-month BOP position out of the red territory, as the country’s total deficit for the BOP from January to September this year is still at $3.4 billion. n October BOP: The current assumption of the government for the BOP is to hit a surplus of at least $1.1 billion at the end of this year. This means that for the country to reach the government’s assumption, it must at least incur a surplus of $1.5 billion in October and consistently up until the end of the year. The last time that the country has incurred a month’s surplus in the billions level was in July last year, with a surplus of $1.1 billion.

This assumption, however, is subject to review for revision this month.

Bianca Cuaresma

INSIDE

PHL prodded to improve labor productivity to sustain growth

I

By Bianca Cuaresma

ncreasing the local labor force’s productivity over the next few years will be crucial for the Philippines to sustain its current stellar growth momentum amid the slower growth and volatilities in the international scene, an international think tank said.

In an interview with the BusinessMirror early this week, McKinsey Global Institute (MGI) economic experts Fraser Thompson and Suraj Moraje said the Philippines is currently at a “critical juncture” of high growth and a booming young labor force and, as such, the country must shift its

Gagni’s Gleanings Lito U. Gagni

sunday voices

So are our warships.

focus on expanding the Filipino workers’ productivity to reap the gains of this confluence.

“We need to acknowledge that the Philippines is among the most competitive regions in the world.

The outlook seems to be firm on the gross domestic product of the See “Growth,” A2

Thrift banks’ NPLs improved in H1 amid lending rise–BSP

T

he asset quality of thrift banks in the country improved in the first half of the year amid the rise in lending volume during the period, the Bangko Sentral ng Pilipinas (BSP) reported.

The gross nonperforming loans (NPLs) of thrift banks as of end-June this year stood at 4.83 percent of the banks’ total loan portfolio during the period.

NPLs are also popularly known as “bad” or “soured” loans, as these are the credit that the borrower has not repaid for more than 90 days after its original due date.

A lower NPL ratio is favorable, as it means that the bank is less susceptible to loan-quality erosion and most of the banks’ loan assets are healthy, with only a small percentage of bad loans.

The second-quarter NPL figure is an improvement from the 4.94-percent gross NPL ratio to total loan portfolio registered in the previous quarter.

In particular, the thrift banks’ NPLs decreased by 2.44 percent to reach P27.16 billion in June this year. This developed as the total loan portfolio of thrift banks increased by 2.75 percent to reach See “NPLs,” A2

Contractors and suppliers needed for P62.7-B MRT 7

By Lorenz S. Marasigan

P-Noy eyes tax-evasion schemes of cigarette firms

Russia to G-20: We’re here.

C

ONGLOMERATE San Miguel Corp.

(SMC) is negotiating with contractors and suppliers for the construction of the P62.7-billion Metro Rail Transit Line 7 (MRT 7).

This was learned from SMC A6 President Ramon S. Ang, who said the company is currently financially closing the deal.

PESO exchange rates n US 44.8730

“We are processing the financial closing of the project now, and we are already talking to the suppliers and contractors,” he said in a chance interview.

The company was allowed to start closing the deal, after it secured two approvals: the performance undertaking and the implementing guidelines.

A performance undertaking is a state-issued financial guarantee to the concessionaire. With the issuance of the economic security, the Japanese government See “MRT 7,” A2

A T-shirt design depicting Russian President Vladimir Putin as an Olympic strongman sits in the window of an Alexander Konasov clothing store to advertise its Patriot collection in Moscow, Russia. After a months-long standoff with the US and Europe over Ukraine, though, public support for Putin in opinion polls has soared. Andrey Rudakov/Bloomberg

V

ladimir Putin is underlining his presence at a major summit of world leaders in Australia by stationing warships in waters off the country’s northeastern coast, prompting the Australian prime minister to angrily accuse Russia of trying to reclaim the “lost glories” of the Soviet Union. GlobalEye»C3

n japan 0.3877 n UK 70.5089 n HK 5.7866 n CHINA 7.3265 n singapore 34.7556 n australia 39.2144 n EU 55.9836 n SAUDI arabia 11.9598 Source: BSP (14

November 2014)

News BusinessMirror

A2 Sunday, November 16, 2014

MRT 7...

news@businessmirror.com.ph

NPLs...

continued from A1

may now release the official development assistance fund to bankroll the initial implementation of the project.

“The deal will be financially closed within the scheduled time,” Ang added.

The deal is expected to be closed by year-end, while the construction of the 44-kilometer road and rail transportation will begin immediately after this.

It is expected to be completed by 2018.

The rail component of the MRT 7 project involves the construction of a 22.8-km rail-transit system that is envisioned to operate 108 rail cars in a threecar train configuration with a daily passenger capacity ranging from 448,000 to 850,000.

It will have 14 stations, starting with the North Avenue Station on Epifanio de los Santos Avenue, passing through Commonwealth Avenue, Regalado Avenue and Quirino Highway, up to the proposed Intermodal Transport Terminal in San Jose del Monte City, Bulacan.

Growth...

The road component of the project, meanwhile, involves the construction of a six-lane access road from San Jose del Monte to the Balagtas, Bulacan North Luzon Expressway exit.

The 25-year concession agreement between Universal LRT Corp.

(ULC) and the government was signed in 2008, but was delayed owing to the proponent’s failure to secure financial closure.

San Miguel Holdings Corp., a unit of SMC, owns a 51-percent controlling stake in ULC.

The engineering procurement contract for the MRT 7 has been awarded to Marubeni Corp.

Lawmakers earlier called for a review of the agreement, particularly the arrangement on the return of equity, the proposed fare scheme and the “socioeconomic impact” of the project, especially on families that will be displaced due to its construction.

continued from A1

“The latest NPL figures indicate the banks’ continued efforts to adhere to sound credit risk-management systems and to maintain high loan quality. These are essential to sustaining the viability of individual banks and to maintaining the overall stability of the domestic financial system,” the central bank said.

ANG: “We are processing the financial closing of the project now, and we are already talking to the suppliers and contractors.” bloomberg

continued from A1

country and critical to sustaining this is growth in productivity,” Thompson said.

The Philippine economy has been dubbed by several economic researches as one of the youngest countries in the world, noting the dawn of the so-called demographic sweet spot in which there is a high percentage of citizens entering the labor force and thus will fuel economic activity and support growth in the country.

While the country has been successful in expanding its pool of workers as support to economic growth, MGI said the country will now have to work on raising its workers’ productivity to sustain the growth trajectory set by the favorable demographic dividend in

recent and near-term years.

“Going forward, as population growth slows down, productivity will need to grow at almost double the pace it did historically to sustain past growth rates,” MGI said.

To do this, MGI said the country must be open to capturing a greater share of global flows through foreign direct investment opportunities.

Thompson noted that the country has the potential to be one of the manufacturing hubs in the region due to the low wages. However, the economic expert noted that productivity in manufacturing is relatively low compared to other countries in the region that are already established manufacturing hubs in previous decades such as in

Thailand and in Malaysia.

Moraje said that the country must work on sectors in which the Philippines has the advantage over the countries to gain foreign investments which will, in turn, pass on global skills and standards to local workers and increase their productivity. Among these sectors he mentioned were the automotive industry, food and beverage industry and chemical production industry.

The global think tank also said that the country will have to “ride the urbanization wave” and continue to build pocket cities that will give more opportunities to move individuals to a higher wage base and becoming part of the consuming class.

“For instance, over 75 percent

thompson: “We need to acknowledge that the Philippines is among the most competitive regions in the world.”

of the Philippine economy’s productivity growth posted from 2006 to 2012 can be accounted for by an expanding labor force and changing sector mix, that is, a shift of labor out of lower-productivity rural farming into urban jobs,” MGI said.

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

NOVEMBER 16, 2014 | SUNDAY TAIL-END OF A COLD FRONT AFFECTING CENTRAL AND SOUTHERN LUZON. NORTHEAST MONSOON AFFECTING NORTHERN LUZON.

Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring rainfall

(AS OF NOVEMBER 15, 5:00 AM)

eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.

LAOAG CITY 21 – 30°C

SBMA/CLARK 23 – 31°C

TAGAYTAY CITY 18 – 28°C

METRO MANILA 23 – 32°C

MONDAY

NOV 18 TUESDAY

22 – 32°C

23 – 32°C

TUGUEGARAO

22 – 28°C

22 – 29°C

21 – 29°C

21 – 30°C

BAGUIO

13 – 23°C

14 – 21°C

SBMA/ CLARK

23 – 32°C

24 – 31°C

TUGUEGARAO CITY 22 – 29°C

BAGUIO CITY 14 – 23°C

NOV 17

METRO MANILA

LAOAG

TAGAYTAY

18 – 29°C

19 – 28°C

Likewise, the global research institution said the country will need to “rapidly improve” the labor force’s knowledge particularly on technology and automation to make them more attractive to investors toward the Philippines.

NOV 19

WEDNESDAY

LEGAZPI

PUERTO PRINCESA CITY 24 – 33°C

ILOILO/ BACOLOD 24 – 33°C

TACLOBAN CITY 24 – 31°C

METRO CEBU 25 – 32°C CAGAYAN DE ORO CITY 23 – 33°C ZAMBOANGA CITY 24 – 34°C

PUERTO PRINCESA

ILOILO/ BACOLOD

25 – 32°C

24 – 33°C

3-DAY EXTENDED FORECAST

CELEBES SEA

NOV 19

WEDNESDAY

25 – 31°C

21 – 30°C

TACLOBAN

24 – 32°C

24 – 31°C

24 – 32°C

20 – 30°C

CAGAYAN DE ORO

22 – 33°C

23 – 34°C

23 – 33°C

METRO DAVAO

25 – 34°C

25 – 33°C

24 – 33°C

24 – 33°C

23 – 34°C

23 – 33°C

14 – 21°C

24 – 29°C

ZAMBOANGA SUNRISE

SUNSET

MOONSET

MOONRISE

5:57 AM

5:24 PM

1:04 PM

12:31 AM

18 – 27°C

24 – 32°C

HALF MOON

24 – 33°C

NEW MOON

LOW TIDE MANILA HIGH TIDE SOUTH HARBOR

NOV 22

8:32 PM

11:56 AM

0.08 METER

3:41 AM

0.67 METER

Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms Cloudy skies with rain showers and/or thunderstorms.

24 – 33°C

25 – 33°C

24 – 33°C

Light rains.

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

SABAH

TUESDAY

25 – 32°C

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 24 – 33°C

NOV 18

24 – 32°C

NOV 14

25 – 32°C

MONDAY

24 – 30°C

11:16 PM

25 – 32°C

NOV 17

METRO CEBU

LEGAZPI CITY 24 – 32°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

P562.85 billion as of end June this year compared to that of the previous quarter.

“The latest NPL figures indicate the banks’ continued efforts to adhere to sound credit risk-management systems and to maintain high loan quality. These are essential to sustaining the viability of individual banks and to maintaining the overall stability of the domestic financial system,” the central bank said.

The BSP further noted that the decline in NPL also came amid a more “conservative” handling of their reserves for loan losses during the period.

Thrift banks were able to set aside loan loss reserves equivalent to about 70 percent of their total NPL during the quarter.

The NPL of the thrift banking industry also remained low across different economic activities, such as in real estate, renting and business activities; loans to individuals for consumption purposes; financial intermediation, wholesale and retail trade; agriculture, fishing, hunting, forestry and fishing; and other community social and personal services. Bianca Cuaresma

@PanahonTV

EconomySunday

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

BusinessMirror

Sunday, November 16, 2014 A3

Govt prepares for 4 weeks of yellow-power alert in 2015

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By Jovee Marie N. dela Cruz

HE government is preparing for four weeks of yellow alert, or thin power reserve, next year, the recently filed joint resolution granting President Aquino emergency powers said.

The House Committee on Energy, chaired by Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, filed the Joint Resolution 21 granting the President several options—except to buy or lease generators—to avert the looming power shortfall in summer next year.

“In the course of congressional hearings conducted, it was revealed that in week 14 [April] of 2015, a maximum projected shortfall of 1,004 megawatts [MW], of which 600 MW is needed to meet the required dispatchable reserve, and 404 MW is needed to meet the required contingency reserve. Corollary, a total of four weeks of yellow alert is projected for the critical period,” the resolution said.

The resolution was principally authored by Umali, House Speaker Feliciano Belmonte Jr. and Majority Leader Neptali Gonzales II. It said that additional generating capacity shall be sourced from the Interruptible Load Program (ILP), fast tracking of new committed projects, and plants for interconnection and rehabilitation; and adoption and execution of energy efficiency and conservation

measures shall be pursued vigorously in both public and private sectors.

The resolution said that the authority granted to the President shall take effect on March 1 until July 31, 2015, to cover additional generating capacity required for the period of the critical power shortage unless sooner withdrawn by the President, upon the recommendation of the Joint Congressional Power Commission (JCPC).

On September 12 President Aquino requested the House of Representatives and the Senate for authority to establish additional power-generating capacity to ensure the energy requirements of the country during periods of very tight energy supply as a strategic response to the need for specific, focused and targeted acquisition of additional energy capacities to meet the imminent power shortage in the Luzon grid due to the Malampaya turnaround, increased levels of forced outages of power plants, and delays in the commissioning of committed power projects.

Emergency powers

SECTION 71 of Republic Act 9136,

also known as the Electric Power Industry Reform Act, provides that Congress may, upon the determination by the President of an imminent shortage of the supply of electricity, authorize the President, through a joint resolution, to provide for the establishment of additional generating capacity.

Umali, the co-chairman of the JCPC, said that as of Wednesday last week, there are already ILP-committed 1,000 MW. Based on established protocols, ILP is implemented during a redalert status (minimal power reserve) upon notice issued by the National Grid Corp. of the Philippines and the distribution utilities informing ILP participants to deload from the grid.

The ILP is a voluntary program whereby businesses such as malls and factories that have their own generators can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors.

Through the ILP, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the summer season.

Currently a total of 29 firms, including those not listed at the Philippine Stock Exchange, have so far enrolled in the ILP, and are ready to drive their backup generators.

Aircon users

NATIONALIST People’s Coalition Rep. Rodolfo Albano III of Isabela

also urged users of air conditioners, especially heavy power users like malls, as well as homeowners to do their share in saving electricity to help avert the feared powersupply shortage in the summer of 2015.

Albano said this is one of many other simple energy-saving actions that everyone can do to help save electricity and prevent power outages next year.

“Efficient use of power translates to efficient energy consumption which, in turn, results in reduction of use of electricity at all levels which—when collectively measured—translates to megawatts in power savings and millions of pesos saved too,” Albano, member for the Minority Bloc of the House Committee on Energy and former executive director of the JCPC. Albano made this call in the light of thin power reserves in the summer of 2015 which could result in power outages, even as he backed the campaign of the Department of Energ y urging malls, private building owners, gover nment of f ices and even households to turn the thermostat of their cooling systems to 25 degrees Celsius from March to June next year.

Albano added that energy-saving experts said electric turning off lights and unplugging appliances not in use can reduce energy consumption up to 10 percent at the very least.

Fitch cautions PLDT, Globe on raising capex next year

T

he two largest telecommunications companies in the Philippines should expect diminishing bottom lines next year as they move to increase their capital expenditures to expand their capacities and services.

Global debt watcher Fitch Ratings predicted that Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. will both see slower than expected growth rates in 2015 should they hike their capital expenditures next year.

Specifically, the credit-rating agency said, a higher budget could have a negative effect on the companies’ free cash flow. The two rival telcos that are expected to allocate an aggregate capital expenditures of P60 billion next year to rapidly increase their data services. This year, the two telcos have earmarked P58 billion for their annual budget.

The dominant telco will likely spend P36 billion in capital investments next year.

Globe, on the other hand, has earmarked P29 billion as its annual budget for 2015.

Fitch said the operating earnings before interest, taxes, depreciation, amortization and restructuring margins of PLDT and Globe are likely to narrow by 100 basis points (bp) to 150bp in 2015, to 47 percent and 44 percent, respectively, amid unlimited tariff offerings, cheaper data plans and higher handset subsidies.

“Industry revenue will rise by a mid-single digit rate, driven by fast-growing data services, which will more than offset stagnating voice and declining text and international revenue,” Fitch said in a report. “Profitability will also deteriorate as a lower-margin data service replaces higher-margin legacy services, including voice, text and international traffic.”

Dividends will increase in line with larger profit as PLDT and Globe distribute around 100 percent and 85 percent, respectively, of net income, Fitch added.

However, PLDT could review its dividend policy as leverage continues to deteriorate following its debt-funded acquisitions and large capital plans. “The trend of PLDT’s investments in unprofitable Internet and media companies is broadly credit negative. Its $445-million investment in Rocket Internet AG in 2014 has raised leverage, and Rocket is unlikely to contribute financially to PLDT’s credit profile in the next two to three years,” the credit watcher noted.

The Pangilinan-led firm reported a core net profit of P28.6 billion, 1 percent lower than the P28.8 billion recorded in the same period in 2013 due mainly to the rise in cash operating expenses, particularly rent and maintenance costs, an increase in product subsidies and a higher provision for income tax.

In the same comparative periods, net income declined by 3 percent, to P28 billion from P29 billion due to the dip in core net income, and the absence of the contribution from discontinued operations recorded in the said period. Globe booked a net income of P10.53 billion in the first nine months of the year, fueled by an increase in service revenues, which is at P72.7 billion, despite a faster rise in expenses to P42.9 billion. Lorenz S. Marasigan

SundayV

Busine

A4 Sunday, November 16, 2014 • Editor: Alvin I. Dacanay

editorial

Joining the celebration of entrepreneurship

,

I

N 1942 the great Austrian-American economist Joseph Schumpeter saw the entrepreneur as an agent of long-term growth, calling him the force behind “creative destruction”— the disappearance of an existing order, with its processes and products, and the emergence of a new one.

Economics literature acknowledges the importance of the entrepreneur, but formal theoretical analysis—as in microeconomics—gives him only an invisible role, mainly as a possible explanatory variable for “the residual”—that part of gross domestic product (GDP) growth that cannot be attributed to employment, investment or even technology. This disconnect needs to be corrected, and if formal analysis does not correct it, the reality on the ground will.

That is why we greet with tremendous joy the announcement that Global Entrepreneurship Week will be celebrated from November 17 to 23. The celebration will focus on the creation and nurturing of entrepreneurs who will take an active, if not a leading, role in the establishment of enterprises that will help boost our economy.

Participation will be led by Go Negosyo, the pioneering firm that spent the last nine years motivating and teaching people to become entrepreneurs, instead of job-seekers. It will be joined by the Villar Foundation, whose work in exploring business opportunities for families of overseas Filipino workers has been outstanding; and the Philippine Long Distance Telephone Co.’s SME Nation, which has been giving the MVP Bossing Award to outstanding entrepreneurs in the last five years.

Lately, the group has been joined by the British Embassy, led by Ambassador Asif Hamad, giving the program an international dimension.

The leadership and participation of very eminent firms and personalities in the entrepreneurial-development program can only spell success for the endeavor.

However, the task of the firms and their leaders is not easy, as can be gleaned from the Schumpeterian definition: An entrepreneur must be one who will not only discover the opportunity to make a profit, but also act to bring that opportunity to reality. If the person concerned has the initial bundle, no problem; but if, as in the majority of cases, he does not have it, what is he to do?

He can borrow money from relatives and friends, convince people to come in as shareholders or take out a bank loan. The leaders will have to provide perspectives on how to deal with this issue.

We hope that the international collaboration on the development of entrepreneurs attracts more people to its programs and develops greater ability among them to work up the “gales of creative destruction.”

Already, announcements on the progress made by some of the program’s graduates— people of various ages who are “dreaming big and achieving something bigger”—are truly encouraging and inspiring.

The success of this program will contribute not just to the expansion of our economy, but to the solution of the nation’s unemployment problem, for the entrepreneur will not only seek a job for himself, but also create jobs for others. Here’s wishing the program success all the way.

P-Noy eyes tax-evasion schemes of cigarette firms

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ALACAÑANG is dead serious about collecting the right amount of taxes from unscrupulous cigarette firms that sell their products at a loss by using all sorts of tax-evasion schemes. President Aquino emphasized this during a lull in the proceedings of the Association of Southeast Asian Nations (Asean) summit in Naypyitaw, Myanmar, where he displayed his mastery of economics, which was his field of study at the Ateneo de Manila University.

Asked about a proposed measure in Congress that would set a minimum floor price on tobacco products, P-Noy said he was not sold on it, as market forces should be the ones to determine the price. He added, however, that the government should strictly check if companies that sell at a loss are cheating the government of revenues.

“Maraming nagsasabi na parang mali ’yung fixed-pricing on anything [Many are saying that setting fixed prices on anything seems wrong]. Let the market decide. [But] if they’re doing that [selling at a loss] and they’re still making money, [that means] they’re getting it from somewhere,” the President said.

“And if they’re getting it from somewhere, [that means] niloloko ang gobyerno [the government is being cheated]. Hindi

Gospel

Sunday, November 16, 2014

ko matanggap na [isususko ng] gobyerno [ang] trabaho niya [of collecting the right taxes] [I won’t accept that the government would simply surrender its job (of collecting the right taxes)],” he added.

Finance Secretary Cesar V. Purisima, who was with P-Noy at the summit, explained earlier that the pending measure in the House of Representatives was a reaction to cigarette brands that appear to be selling below the prevailing excisetax rate and cost of production.

He specifically named Mighty cigarettes, manufactured by Bulacan province-based Mighty Corp.; and Jackpot,

by Philip Morris Fortune Tobacco Corp.

(PMFTC). Another brand—Marvels, also

by Mighty Corp.—was also reportedly selling at unsustainable prices that are way below the cost of tax and production.

“Some are saying that, maybe, there should be a guide price so that you prevent this abnormal situation,” Purisima said.

“Naistrangeran ako nang konti doon sa concept. Kung ikaw, may ginagawa kang produkto [at] ibebenta mong palugi, [eh] di malulugi ka eventually. Bahala ka sa buhay mo, ’di ba? Basta tayo, nakuha natin ’yung taxes due [the] government—[that’s] No.1 [I find the concept strange. If you’re manufacturing a product and selling it at a loss, you will lose money eventually.

Do what you will with your life, right?

So long as we got the taxes due [the] government—(that’s) No.1],” President Aquino said.

“No. 2, sure ako na ’yung presyo, puwedeng maglagay ng cap ’pag may emergency. Kunyari, basic commodities, medicines, etc., may calamity [No. 2, I’m sure that a price cap can be placed when there’s an emergency. For example, basic commodities, medicines, etc., during a calamity],” he added.

“In the case of Mighty, I think—I assume—they have already set up [a CCTV] system to check on [Mighty], lalo na ’yung withdrawals from their warehouses.

Meron na rin ’yung sa Customs checking on all tobacco na pumasok…because of that allegation [In the case of Mighty, I think—I assume—they have al-

‘F

ready set up a CCTV system to check on Mighty, especially the withdrawals from their warehouses. Customs is also checking on all tobacco imports because of that allegation],” the President said.

Mighty has settled almost P1 billion in unpaid duties with the Bureau of Customs after its customs-bonded warehouse was padlocked by Customs Commissioner John Philip Sevilla, after it was found to have unpaid duties and taxes.

The firm was ordered to pay them after it allegedly underdeclared the volume and value of the tobacco-leaf imports.

PMFTC has been complaining about Mighty’s alleged price underdeclaration to undercut the competition, which, it claims, is made possible by the Bulacanbased firm’s allegedly illegal importation of tobacco leaves, underdeclaration of its volume removals and nonpayment of correct excise taxes. But despite repeated calls, the Bureau of Internal Revenue is yet to finish its investigation, let alone file charges against Mighty.

Exciting times for e-commerce

THE country’s business environment is about to see a new suite of options that would empower entrepreneurs and retail-establishment owners who want to boost their businesses through ecommerce, where transactions could be

or it will be as when a man going on a journey called his servants and entrusted to them his property; to one he gave five talents, to another two, to another one, to each according to his ability. Then he went away. He who had received the five talents went at once and traded with them; and he made five talents more. So also, he who had the two talents made two talents more. But he who had received the one talent went and dug in the ground and hid his master’s money.

Now after a long time the master of those servants came and settled accounts with them. And he who had received the five talents came forward, bringing five talents more, saying, ‘Master, you delivered to me five talents; here I have made five talents more.’ His master said to him, ‘Well done, good and faithful servant; you have been faithful over a little, I will set you over much; enter into the joy of your master.’

And he also who had the two talents came forward, saying, ‘Master, you delivered to me two talents; here I have made two

made with the click of a mouse. A local firm with a global reach is about to launch its e-commerce venture soon, though it didn’t want to keep its preparations for the new endeavor a secret.

For now, e-commerce in the country is yet to reach its full potential, but with this local firm’s e-commerce venture to be launched soon, this could change. This e-commerce venture is an easy-to-do thing for entrepreneurs and small- and medium-sized enterprises, as it will offer a fully scalable, end-to-end payment and logistics supply-chain platform.

This new venture removes all the guesswork involved in setting up an online business. This covers everything, from inventory management, backward and forward delivery, the creation of an online storefront, and the provision of a comprehensive payment facility. Moreover, because the company behind it is globally integrated and agile, it has the size, reach and knowledge to meet even the most challenging demands. Online buyers, too, are seen to benefit from it.

This sounds like the dawn of a new online-shopping era, and this venture will certainly create a huge impact on, shall we say, Lives, Businesses and Communities.

E-mail: hugagni@yahoo.com.

talents more.’ His master said to him, ‘Well done, good and faithful servant; you have been faithful over a little, I will set you over much; enter into the joy of your master.’ He also who had received the one talent came forward, saying, ‘Master, I knew you to be a hard man, reaping where you did not sow, and gathering where you did not winnow; so I was afraid, and I went and hid your talent in the ground. Here you have what is yours.’

But his master answered him, ‘You wicked and slothful servant! You knew that I reap where I have not sowed, and gather where I have not winnowed? Then you ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest. So take the talent from him, and give it to him who has the 10 talents.

For to every one who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away. And cast the worthless servant into the outer darkness; there men will weep and gnash their teeth.’

— Matthew 25:14-30

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, November 16, 2014 A5

Take a hike already A Free Fire

By Teddy Locsin Jr.

Burke also said, “It is more important than ever to examine our faith.”

Helloooooooooo again, you Midwest moron. That’s what Francis is doing: examining the faith because, as Burke himself says, it needs to be examined. If there is no need to examine the faith, then why even talk about examination?

Burke is currently head of the Vatican’s highest court, the Apostolic Signatura, but he’s been expecting to be demoted to head of the Order of Malta, which no longer has a fortress to defend against the Turks. Indeed, as I write this, the order came down: Get the f—out of the Vatican.

Burke admitted that he only wanted to be “a master of the faith.” Well, that’s exactly what Francis doesn’t want bishops to be: masters of the faith. There are guardians of the faith, martyrs of the faith; but mastery of the faith lies only with the Holy Spirit, whose decisions are discernible only in a melee of contending opinions until a single coherent message comes through the snow or static, like in television or radio.

Burke says the faithful are seasick rid-

MERICAN Cardinal Raymond Burke is the soon-to-be-erased face of the so-called conservative opposition to Pope Francis’s reform agenda to correct the deformations of the Faith.

Burke called the most loved person on the planet “an absent rudder.” That’s right, this idiot called Francis a rudder and likened the Catholic Church under his leadership to a ship without a rudder.

Helloooooooooo, you hick idiot, a rudder is a submerged part of a boat; it doesn’t guide the boat. It is the coxswain, with his hand on the tiller, which moves the rudder, who does that.

Burkedoesn’tknowsailing,whichJesus and the apostles loved to do. Obviously, Burke isn’t from Galilee, or Marblehead on the New England coast, for that matter.

And if there is no hand on the tiller, then, more likely than not, it will stall on the water, because the sails will lose the wind; so it won’t necessarily drift in any direction. It would just kind of float around, like it has been for the past 50 or 100 years.

ing a ship without a rudder. Why? Without a rudder, the damned thing won’t move. Burke just thinks they are seasick.

In fact, they are throwing up all over his retrograde opinions.

Oh please, Burke, take a hike; go to Malta already.

Meanwhile, American bishops have convened to assure the American faithful that the pope can still be blocked and the Church can stay as they like it today.

No, he can’t, and no, it won’t be stopped.

The only thing the American Catholic Church has contributed to religious reformation is hate.

Why don’t we just set that section of Catholicism adrift? I mean, if they like the name so much, they can still call themselves a Catholic church. Let’s invite them to feast days; canonizations and other pontifical events, including conclaves— like the Orthodox Church. In theory, it is part of Catholicism but we really couldn’t care less about what it does with itself. The Russian Orthodox Church, for example, can be the lackeys of Putin, for all we, the true Roman Catholics, care.

“This is our message to the world: that governments can deliver, that governments can agree that the world can be better, that there can be higher growth and more jobs.”

—Australian Prime Minister Tony Abbott, during the official opening of the Group of 20 Leaders’ Summit in Brisbane, Australia, on Saturday. The summit ends today.

One word, China: Insulation H Bloomberg View

By Adam Minter

OW hard will it be for China to fulfill its end of the climate deal it signed with the United States late last week? The extraordinary means that the Chinese government used to reduce Beijing’s air pollution in advance of and during the two-day Asia-Pacific Economic Cooperation (Apec) Forum offer some sobering hints. Among other measures, city residents were given a six-day vacation, factories were shut down, traffic restrictions were imposed, and even the small coal heaters that poor villagers outside of the city use to heat their beds were banned temporarily. Yet, despite these extraordinary efforts targeted at just one city, pollution remained high enough that the Chinese government took the added step of censoring the US embassy’s unflattering air-quality data for Beijing.

That reality should worry anyone concerned about climate change (and accurate data-reporting from China). But it’s not very surprising.

Antipollution measures that require austerity on the part of Chinese consumers, businesses and local governments will always face resistance. Fortunately, there are other ways for China to slow the rise in its carbon emissions, at least some of which require far less sacrifice from powerful and not-so-powerful interests.

A good place to start? Insulation.

Yes, pink fiberglass is an underutilized resource in China’s climate fight. During the 2000s nearly half of the world’s new buildings were erected in China, according to a National Resources Defense Council study. Yet, only 5 percent of them met China’s energy-efficiency standards (which are already rather meager compared to, say, northern Europe). That’s a big problem: In 2009 according to the same

Two Chinese women cover their faces with scarves as they walk past Beijing’s central business district on November 11. AP

research, buildings accounted for 28 percent of total Chinese energy use.

What do the 95 percent of Chinese buildings that are energy-inefficient look like? Much like the apartments I rented in Shanghai over the last decade: uninsulated concrete boxes with single-pane windows and blustery drafts (that no amount of weather-proofing ever seemed to plug completely). When temperatures dipped (sometimes below freezing), the walls went ice-cold and stayed that way until spring, even if I ran my space heaters and heat-blowing air

conditioner nonstop, for days at a time (as I sometimes did).

Indoor misery has outdoor consequences: Dangerous air pollution spikes in the winter months, due, in large part, to China’s disproportionate reliance on coal to provide electricity and heat to its citizens. It’s not just Shanghai, either.

Roughly half of China’s population lives in the country’s northern regions, where temperatures fall below 50 degrees for at least 90 days per year, and winter smog can choke thousands of square kilometers for days and weeks at a time.

Could insulation solve this problem? According to a 2010 peer-reviewed study, China could reduce its CO2 emissions by 510 million tons annually—or 8.4 percent of its 2006 levels—if it required fiberglass-insulation use in areas with “extreme climates.” Other studies have predicted similar energy savings (and consequent carbon reductions) if additional energy-conservation measures in buildings were adopted or, more often than not, fully enforced. Unlike the desperate measures adopted before the Apec summit, too, ensuring that buildings are insulated properly requires only a one-time investment of time and money, not an ongoing fight against reluctant officials or factory owners.

These facts are hardly unknown to senior levels of the Chinese government, or the foreign environmental community (former Treasury Secretary Hank Paulson was in China last week pushing better building codes). But the enforcement of existing codes is notoriously lax, due largely to the intertwined financial interests of local governments (that continue to derive significant revenues from land sales) and cost-shaving developers.

Still, that’s far from fatal. The central government could help by offering more generous subsidies for energy-saving retrofits of buildings, rather than placing most of the burden on local governments, as is the case under the current system. It won’t be cheap (and some of that money will inevitably end up in corrupt pockets). But over the long term, such measures are going to be less disruptive to the Chinese economy, and better for the planet, than temporary traffic restrictions, factory closures, and freezing cold apartments.

‘The talk,’ the Socratic-Sicilian way

By Gina Barreca

The Hartford Courant (TNS)

‘U

SE the Socratic method when having the birdsand-bees chat with your child,” advised an earnest article that was recently published in a reputable magazine. “Ask your child, ‘When do you think is a good time to have sex?’”

I paused after I read this line.

I grew up in a cynical old-time Brooklyn household. The Socratic method, now that I think about it, was often employed in our family.

The Socratic method was, I believe, instinctively passed down through our Sicilian family, although it was slightly altered from the original Greek give-and-take method of discourse.

It was used not as a way to illuminate or encourage discussion, however, but as a way to drive home the severity of a person’s error so they themselves could discover the depth of their transgression.

For example, you’d say to your sister, who’d just set the table and put the food out for dinner, “Try this soup.” You’d insist and she’d decline. Then you would say it again and again, insisting that she try the soup. Finally, she’d impatiently agree and ask, “Where’s the spoon?” and you’d go “AHA!” in triumph because that was the point you were making the whole time. There was no spoon.

She had neglected to give you the appropriate cutlery.

The fact that you could reach the drawer where the cutlery was kept and get yourself your own lousy spoon without actually rising from your chair was not the point. She didn’t set the table right. No spoon.

She had to learn. It was the Socratic method in action without being defined as such.

But nobody would have used it, or any other method, to discuss the birds and the bees.

First of all, talking about sex was not something anybody did.

Second of all, if you were going to talk about sex, which nobody did, you would never use the phrase “the birds and bees.” What are you, a gardener?

Third, if you did ask one of your offspring, “When do you think is a good time to have sex?” his or her answer would probably be, “Usually after the second cocktail,” because you’d be having this conversation with your kid when he or she was 27, after he or she had been married for six years and had four children of his or her own.

But haven’t times changed? In 2014 does advice about having a straightforward talk with your kids about sex still need to peek out coyly from behind a modesty curtain hung between John James Audubon (artist and ornithologist) and Burt Shavitz (who owned Burt’s Bees before Clorox bought the company for $925 million a few years back)?

I attempted to pinpoint the first use of the phrase “birds and bees” as a euphemism for sex even

before I finished reading the article. There are lots of theories: Some say it was a Cavalier poet; others claim it was Coleridge.

The most convincing argument is that the phrase was made widely popular through a publication put out by the Eugenics movement around the turn of the last century.

The collection, titled Safe Counsel, was reproduced many times in a short period of time (thereby ironically undermining the basis of the Eugenic philosophy), and it included a description of a mamma bird protecting her eggs and a father figure as a busy bee with pollen sticking to his hairy legs as he disseminates himself against flowers.

If the Eugenics people wanted to keep folks out of the reproduction business, that description alone would do it.

Except that misinformation about sex is just about as pernicious as no information about sex.

Both are worse than having lots of information about sex. The wisedup guys and girls never got into “trouble” because they knew what they were doing.

The poor souls whose families were too cowardly or whose schools were too constrained to teach them anything about sex were the ones most truly at risk.

It was my mother who told me about how children are conceived and how bodies worked. I’ve always been grateful to her, especially since nobody else in our family would have approved of her honesty.

When is a good time to have sex?

After you both understand what kind of decision you’re making and fully accept the consequences.

And that’s the right answer at any age.

Gina Barreca is an English professor at the University of Connecticut and a feminist scholar who has written eight books.

NewsSunday BusinessMirror

A6 Sunday, November 16, 2014 • Editor: Vittorio V. Vitug

BDO fortifies mobile, Internet banking security against fraud

B

DO Unibank has fortified its online and mobile-banking offerings to provide more security to customers and fight fraud.

In a research note, The Asian Banker cited BDO as the only bank in the Philippines that implements the two-factor authentication for mobile and Internet banking, similar to what commercial banks in Singapore and Hong Kong implement.

The report noted that the Philippines has been witnessing an exponential rise in fraud cases on digital channel since 2013, including on automated teller machines (ATMs).

It said, according to bank officials, banks and depositors lost $5.5 million alone to ATM fraud attacks since 2013, not accounting for indirect fraud costs. The fraud management expenses contribute rather substantially to the overall fraud cost.

“Visa suggests that indirect fraud costs are at least equal to direct fraud losses, and can often be much higher. Phishing and skimming on web sites have escalated and increased in 2013, adding concerns about security, given weak fraud-management systems and the industrywide lack of two-factor authentication,” the research determined.

BDO regards online and mobile banking as supportive to branches in overall cost reduction but it does generate transactional fees from billing for which it has close to 200 billers, airtime reload for prepaid mobile banking, and payments such as credit-card bills and remittances.

“Initially BDO was looking at tokens and other devices but saw the difficulties for logistics with hard tokens. Since its customers are not just in the Philippines but internationally dispersed, the bank wanted a facility that can be used by all Filipinos, and saw SMS [short messaging system] as a viable solution,” the research noted.

The challenge was to find a provider that can deliver SMS globally and not just to the local market. Eventually, the bank was able to work with a solution provider together to allow customers either to use roaming with a Philippine SIM card or a mobile number in the country of residence.

“While their main concern was cost, the bank found a balance between security, convenience and cost,” it added.

BDO also adopted international standard 1024-bit asymmetric key and 128-bit SSL encryption to stop data from being intercepted or tampered with during transmission. “SMS used to deliver banking token, achieve 100-percent delivery rates in less than 10 seconds, particularly for the majority of countries where Filipinos migrate such as Hong Kong and the Middle East. Genivi Factao

www.businessmirror.com.ph

Filipino peacekeeper from Liberia sick with malaria, not EVD–DOH

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he country is still Ebola-free.

Health Acting Secretary Janette L. Garin, in a news briefing at the National Kidney and Transplant Institute (NKTI) in Quezon City on Saturday afternoon, said the tests administered on a Filipino peacekeeper who came from Liberia and was reported to have been detected with fever, tested negative from Ebola virus disease (EVD).

The peacekeeper was among those who were directed to undergo the 21-day quarantine period at the Caballo Island but was transferred to the Research Institute for Tropical Medicine (RITM) in Alabang, Muntinlupa City, after he was diagnosed with fever.

Garin said that based on the tests result, the peacekeeper was found to be

positive with malaria parasite, Garin said.

“He is now all right and undergoing treatment for malaria. Every eight hours his blood is being examined to ensure the progress,” she said, adding that malaria infection caused the recurrence of an onand-off fever to the patient.

She also said that they were expecting the patient to be in stable condition

within three to five days as they give a combination therapy to fight the “plasmodium falciparum” (malariacausing parasite) in the body of the patient. She said the presence of malaria in the patient had either stemmed from two possible reasons.

“It was possible that when he was treated before, the treatment was not properly done. The other probable reason was he was afflicted with malaria one or two weeks before he left Liberia,” she said.

She said the patient would be transferred to a regular room soon and there was no need to keep him in an isolation room.

Garin added that the RITM repeatedly conducted confirmatory test for Ebola in its laboratory to ensure accuracy of the test.

On Saturday morning the Department of Head had cited that the results may possibly be out within 48 hours to ensure certainty through repeated tests.

“The 48 hours we set was just an estimate we did to produce the result.

It is not absolute at all because results can be generated earlier than what was estimated,” Garin said.

The patient was among the more than 100 repatriated Filipino peacekeepers who returned from Liberia, a country where Ebola outbreak was reported.

Before their repatriation, the Filipino peacekeepers were subjected to a United Nations-supervised Ebolascreening test in Monrovia, and were subsequently cleared.

Upon return to the Philippines, they were taken to the quarantine site in Caballo Island for further monitoring so that in case that a suspected case of Ebola or symptoms of EVD was detected, there would be an easier management or control of the infection.

The quarantine site is a standard procedure that they have to follow to ensure that soldiers and their families are protected from EVD. EVD is a viral hemorrhagic disease whose symptoms appears within two to 21 days. PNA

Yuletide tourists, visitors expected to boost tourism in Albay

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ourism inflow to Albay may have slackened a bit lately due to the lull in Mayon’s volcanic

activity, but it is expected to intensify further as the Yuletide season closes in.

There are several reasons for this expected trend. Hundreds of dolphins cavorting near the shorelines of the Albay Gulf, a giant Christmas tree fashioned out of camote or sweet potato, the 2015 Asia-Pacific Economic Cooperation (Apec) Summit, and a Christmas Village depicting leading cities of the world, are just a few of the attractions that lure tourists to the province.

Now the fastest-growing tourist destination in the country, Albay has become the quintessential treasury of world-class natural wonders, including the active and nearperfect cone-shaped Mayon Volcano and the Cagsawa Ruins, among others.

Albay, indeed, is a haven of many old, new, exotic and mesmerizing natural and man-made creations. This year’s monthlong Karangahan Albay Green Christmas

Festival features another first in the country—a signature Christmas tree fashioned from thousands of camote (sweet potatoes) tubers, standing tall to celebrate the province’s successful food-production program. Albay is now the second largest camote-producing province in the Philippines.

Visitors also find awesome and inviting its well-protected environment.

Schools of dolphins now cavort and frolick all daylong in the Albay Gulf off Santo Domingo town. They provide a regular enjoyable show for tourists and local folks alike. Butanding or whale sharks, were also known to frequent the Albay Gulf.

Albay Gov. Joey Salceda said the province has become a dolphin sanctuary because of its “good ecological practices, including the mangrove reforestation under its CRABS++ [Coastal Resource Agri Bio-System] Development Program Strategy.”

Albay’s biggest event this year, however, will be on December 8 and 9 when it raises the curtains for the series of ministerial meetings leading to the 2015 Apec Leaders’ Sum-

mit. The Apec opening meetings are set at the Legazpi Oriental Hotel and the luxury Misibis Resort Hotel in Bacacay town, to be led by the economic ministers of its 21 membercountries, with close to 1,000 other officials in attendance.

Albay hosts many of the Apec events, including its first ministerial meeting on December 8 and 9 this year. Department of Foreign Affairs Deputy Director General Ma. Angelina M. Santa Catalina said Albay was chosen as one of the Apec meetings sites in the country because of its “vitality and dynamism in development despite the Pacific risks.”

With Apec now spotlighting Albay, Salceda said they warmly invite and welcome visitors to come and experience the bliss of the Yuletide season in their province. They will surely treasaure the warmth of the Albayano hospitality and the wondrous sceneries of Albay which are now globally known through photographs and postcards, he added. The province is the country’s fastest- growing destination in 2013, posting an impressive 66-percent growth. PNA

Environment-friendly buses ply SM-MOA-Makati route

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RAVELING to the sprawling lifestyle and entertainment hub SM Mall of Asia (SM MOA) in Pasay City has been made safer, comfortable and more environment-friendly with the launching on Friday of the “Green Frog” low- emission hybrid buses from Green Frog Zero Emissions Transport.

SM executives, officials of the city of Pasay, and other dignitaries from the business and lifestyle sectors witnessed the launching of the Green Frog buses at the SM MOA’s Globe Rotonda, which is now part of its route that also includes the Makati Central Business District. Shoppers and travelers coming from the Makati, C-5 and Taguig area can now travel comfortably to SM MOA at reasonable bus rates.

The route is divided into three zones, and passengers pay as low as P10 for Zone 1 (MOA to Light Rail Transit Line 1), P20 for Zone 2 (LRT 1 to C-5Buting) or P30, which covers Zones 1 and 2 or from MOA to C-5-Buting.

The launching came amid the threat of air pollution to the respiratory health of many Filipinos in Metro Manila, where 80 percent of emissions come from inefficient public-transport vehicles, made up mainly of jeepneys, multicabs, tricycles and buses. By using the energy-efficient Green Frog buses, which run simultaneously on electricity and diesel, reduced noise and 90-percent less particulate emissions (the black stuff coming out of the tailpipe) is achieved.

“We have long thought of providing an environment-friendly, comfortable, safe and reliable transport system within the complex, and the presence of Green Frog buses is the answer to that. Now, there are more reasons for people to head to the SM MOA and enjoy its amenities while appreciating the convenience of energy-efficient, world-class and reliable buses,” says Dave Rafael, senior vice president of SM Prime Commercial Properties Group.

RegionsSunday BusinessMirror

www.businessmirror.com.ph • Editor: Efleda P. Campos

Mindanao evacuation unnecessary despite 7.3 Indonesia quake

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HE government saw no need for a tsunami-driven emergency evacuation in coastal communities of Southern Mindanao despite the earthquake that struck the country’s neighbor Indonesia on Saturday morning.

“There’s no tsunami threat to the Philippines from such earthquake so evacuation in southern Mindanao is unnecessary,” Director Renato Solidum of the Philippine Institute of Volcanology and Seismology (Phivolcs) said.

He said assessment by Phivolcs and international organizations indicate the earthquake is not expected to generate a significant rise in sea water. “What’s considered significant and life-threatening is sea water rise of at least 1.0 meter,” he said.

Phivolcs said tsunami is a series of sea waves commonly generated by under-thesea earthquakes. Such waves’ heights can be more than 5 meters, Phivolcs said.

“A tsunami can occur when the earthquake is shallow-seated and strong enough to displace parts of the seabed and disturb the mass of water over it,” Solidum added. PNA

Military identifies 3 of Abu bandits killed in Sulu clash

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By Joel R. San Juan

HREE of the nine Abu Sayyaf Group (ASG) bandits killed in Friday’s clash in Talipao, Sulu, were identified by the military on Saturday.

Col. Allan Arrojado, Joint Task Group (JTG) Sulu commander, identified two of the bandit fatalities as Hamer Absara and Beting Jakka.

The latter was the brother in law of ASG leader Radullon Sahiron.

Hairullah Asbang, an Abu Sayyaf subcommander, was allegedly killed after being hit by shots fired by an attacking military aircraft, Arrojado said.

No ASG bodies were recovered yet

but the deaths were confirmed by military intelligence agents.

The death toll for the Sulu clash has reached 14, including the five soldiers killed in the encounter.

Arrojado said that 26 military personnel were wounded, while 30 were hurt in the Abu Sayyaf side.

Soldiers engaged about 300 bandits, led by Sahiron in a series of clashes that lasted for five hours.

Maj. Edilberto Aramponi, JTG

Sulu’s civil-military operations officer, said the first clash in Barangay Bud Bunga started at 1:50 p.m. and another broke out 4:30 p.m.

Some 150 troops from the Army’s Third Scout Ranger Battalion, who engaged the Abu Sayyaf bandits twice used grenade launchers, he added.

“There were other units present in the operation like the 35th Infantry Battalion and the Marines but it was the Scout Rangers who bore the brunt of the fighting,” Aramponi said in Filipino.

He added that all military fatalities are all Scout Rangers.

Government forces have been hunting the Abu Sayyaf on the island since the two German captives were released on October 17. But until Friday, they had found only several abandoned camps, Arrojado said. PNA

Sunday, November 16, 2014 A7

SM opens 50th mall, remains bullish on expansion in the Philippines

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M Prime Holdings Inc., one of the largest property developers in Southeast Asia opens its 50th mall, SM Center Angono in Rizal.

Rizal is in Calabarzon region, which is also composed of Cavite, Laguna, Batangas and Quezon.

The 41,481-square-meter mall will bring the total floor plate of SM Prime to 6.4 million sq m of retail space, the largest footprint in the country. The company attained the growth in a span of less than three decades.

SM Angono, located in the “Arts Capital of the Philippines,” will feature the biggest supermarket in the town through Savemore. Its tenants include Ace Hardware, Watsons and BDO. It will also have 229 parking and motorcycle slots. It is the third mall in Rizal province after SM City Masinag and SM City Taytay.

SM Prime President Hans T. Sy said, “We are committed to continue our expansion toward the provincial areas, which remains our strategic direction in the Philippines. In almost

30 years, SM Malls have become an important element in every community. We will also continue to expand and improve the look and feel of our existing malls to keep them current and exciting for our customers.”

“Not only do they boost asset values in surrounding areas but they have set the stage for further growth, increased productivity, promoted job and wealth creation, environmental sustainability, and positive social interaction. More important, they bring families and friends together. We are very pleased to open our 50th mall and we look forward to bringing more malls to Filipinos into the regions in the coming years,” Sy added.

SM Prime built its very first mall in 1983 on North Edsa, Metro Manila’s main thoroughfare. Back then, the lot that was purchased in 1978 was a vacant swamp remotely located from the center of the metropolis. SM founder Henry Sy Sr. saw the area’s potential, standing at the crossroads of regional traffic coming from the northern provinces of Luzon.