2nd Front Page BusinessMirror
A8 Tuesday, November 25, 2014
BSP: Inflation to ease further in Nov By Bianca Cuaresma
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nflation in November is likely to moderate further from the level seen in October based on early indicators pointing to lower price of rice and oil, a senior monetary official said on Monday.
At the sidelines of ceremonies launching the Marikina Credit Surety Fund (CSF), Bangko Sentral ng Pilipinas (BSP) Deputy Governor for the Monetary Stability Sector Diwa
C. Guinigundo said inflation in November was likely to have softened during the period. The early indicators of softer inflation include the tamer price of
the heavily weighted rice products, as well as the low oil prices during the month. “Well, given the indicators, we would expect that consumer price movement will continue to moderate,” Guinigundo said. “Rice prices have started to come down. Oil prices remain low. It looks like the port congestion has been mitigated,” he added. Adding to that is the end of the harvest season in December, which beneficial impact includes an increase in the supply of key food products in the country, according to the
senior monetary official. “Coming into December, the supply of rice will increase in addition to the expected 500,000 metric tons of imported rice. So far, I think we already imported about 100,000 MT,” Guinigundo said. “And we have not experienced a major typhoon so far, so we do expect that there will be further moderation,” he added. Earlier this year, the country’s inflation rate neared the upper end of the government’s annual target rate—prompting the central bank to tighten its monetary measures
earlier during the year. In particular, inflation peaked at 4.9 percent in July and August, or just below the central bank’s 3-percent to 5-percent target inflation for the year. Inflation in September moderated to 4.4 percent. This decelerated further the following month to 4.3 percent. The inflation rate data for November is set for release in the first week of December. The central bank governor was also expected to issue the central bank’s official inflation forecast for November this week.
‘New climate normal’ will hinder efforts to cut poverty
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lobal warming over the next 20 years is predicted to affect the world’s poorest nations most, World Bank President Jim-yong Kim said on Sunday, referring to the bank’s report on “new climate normal.” “Today’s report confirms what scientists have been saying—past emissions have set an unavoidable course to warming over the next two decades, which will affect the world’s poorest and most vulnerable people the most,” Kim said. He noted that abnormally high temperatures, intense rainfalls and severe droughts hinder efforts to reduce poverty and put the lives of millions of people in danger. “We’re already seeing recordbreaking temperatures occurring more frequently, rainfall increasing in intensity in some places, and drought-prone regions like the Mediterranean becoming drier. These changes make it more difficult to reduce poverty and put in jeopardy the livelihoods of millions,” the World Bank president said. Increasingly frequent freak weather events could be as damaging as declining crop yields, sea-level
AMBASSADORS’ ‘BELEN’ VISIT Diplomats got a glimpse of Belenismo 2014 in the province of Tarlac by visiting rural areas. They were toured around various Belen in Tarlac by Dr. Isa Cojuangco Suntay, chairman of Tarlac Heritage Foundation. In the town of Ramos, for instance, they saw how a farmer family fashioned a Belen out of recyclable materials, and in the town of Pura, a group of farmers built a Belen made of bamboos and watched teens dance to the tune of Christmas songs. Those who visited the Belenismo are diplomatic representatives from Australia, Turkey, Singapore, Russian Federation and Austria. Photo shows, in front of the grand Armed Forces of the Philippines-Northern Luzon Command Belen, which was crafted by soldiers, (from left) Doña Isabel Cojuangco Suntay, founder of Tarlac Heritage Foundation; H.E. Hirubalan V.P., ambassador of Singapore to the Philippines; Lt. Gen. Gregorio Pio Catapang Jr., chief of staff of the Armed Forces of the Philippines; H.E. William Thomas Ross Twedell, ambassador of Australia to the Philippines; H.E. Esra Cankorur, ambassador of Turkey to the Philippines; and Dr. Isa Cojuangco Suntay. NONIE REYES
See “New climate,” A2
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China defends reclamation in disputed sea
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hina defended its land reclamation in the disputed Spratly Islands in the West Philippine Sea (South China Sea) on Monday, saying the work is for public-service use, although a Londonbased security group says the new island could host a military airfield to intimidate neighbors. Foreign Ministry Spokesman Hua Chunying said the construction on some reefs in the archipelago is “mainly aimed at improving the working and living conditions of the Chinese staff working there so that they can better perform i nter n at ion a l obl igat ion s i n terms of search, rescue and other public services.” In a recent report, IHS Jane’s said satellite images taken in August and November showed that Chinese dredgers had created a land mass almost the entire length of Fiery Cross Reef, which was previously under water. The security group said it is the largest construction project China has undertaken in the island chain. IHS Jane’s said the new island— at least 3,000 meters (9,840 feet) long—could be China’s first military airstrip in the Spratly Islands and might be aimed at helping Beijing impose its sovereignty claims over neighboring countries that also claim the territory. “Given its massive military advantage over the other claimants in terms of quantity and quality of materiel, this facility appears purposebuilt to coerce other claimants into relinquishing their claims and possessions, or at least provide China with a much stronger negotiating position if talks over the dispute were ever held,” the report said. Hua told a regular news briefing on Monday that such remarks were “irresponsible” and that China has “indisputable sovereignty” over the Spratly Islands, which are also claimed by Taiwan, Malaysia, the Philippines, Vietnam and Brunei Darussalam. She said China has insisted that maritime disputes be resolved See “China,” A2
Funding for DTI’s CARS CBI share in GDP as of 2010 at 7.34% Program ready by 2016 T By Catherine Pillas
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he support fund for the Department of Trade and Industry’s (DTI) Comprehensive Automotive Resurgence Strategy (CARS) Program will likely become available by 2016, a trade official said on Monday. The CARS Program details the fiscal and nonfiscal incentives for local carmakers. Assistant Secretary for Industry Development and Trade Policy Rafaelita M. Aldaba told reporters that the funding of the CARS Program, which aims to make the local automotive industry competitive and ramp up local production versus imports, was not included in the proposed national budget for 2015. “There’s a process; we will include that in the budget once signed. It needs to be signed first. The funding will come from the General Appropriations Act, but it was not included in the 2015 budget,” the DTI official said. The said fund will be used to bridge the gap in the production cost that is making local automakers less competitive compared to their peers in the region. According to studies, producing a car in the Philippines is $1,000 more expensive than making the same unit in other Asean countries.
ALDABA: “To really increase local production and lower costs, they must be able to export.”
T he dem a nd for loc a l ve hicles is seen to reach 500,000 u n it s by 2022, accord i ng to the CARS Program. The program seeks to encouraging local car firms to increase domestic production and make them competitive in the export market. “To really increase local production and lower costs, they must be able to export,” Aldaba said. But Aldaba said the program, itself, can be implemented once Malacañang gives the go signal. The CARS Program is expected to generate as much as 300,000 jobs according to the DTI. Without it, domestic production can dwindle to as low as 50,000 by 2022, with imports possibly spiking to 400,000 units Savings in foreign-exchange requirements are seen at P757.8 billion, translating to reduced imports if the program is implemented.
he contribution of copyrightbased industries (CBIs) to gross domestic product (GDP) has doubled from 2006 to 2010, according to Intellectual Property Office of the Philippines (IPOPHL) Director General Ricardo Blancaflor. This, he noted, is a sign of burgeoning creative industry in the country. Blancaflor told reporters that the latest World Intellectual Property Organization (Wipo) Guide on
Surveying the Economic Contribution of Copyright-Based Industries shows that local CBIs’ share in GDP has risen to 7.34 percent. Blancaflor said this is significant because the CBIs’ contribution in the previous Wipo guide in 2006 was pegged at only 4.8 percent. Blancaflor also said the CBIs’ contribution to the total work force, which back in 2006 was 11 percent, was the highest in the world for CBIs in terms of local employment.
“Second lang ang Mexico sa atin, and it could have gone up from 11 percent since 2006,” Blancaflor said. The IPOPHL said the local creative industries, such as film, music and publishing, are picking up because of the faster accreditation by the collective management organizations. Collective management is the regulation and exercise of copyright and related rights through an organization acting in the interest and in behalf of the owners of the rights.
Blancaflor credited the strength of the business-process outsourcing (BPO) industry to the strength of the intellectual property (IP) protection. The industry relies heavily on data privacy as information-technologyBPO companies move large amounts of data across borders. “Will they grow that big if hindi malakas ang copyright protection? They thrive because malakas ang IP,” Blancaflor said. See “CBI,” A2
Intellectual-property protection still lacking in PHL
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he Philippines has received a mixed rating in a study assessing the country’s innovation environment, with its two lowest-rated factors being on enabling knowledge creation and demand for intellectual property. The Philippines Innovation Ecosystem Assessment results, conducted by global research institute RTI International, in partnership with the United States Agency for International Development (USAID), was presented on Monday during the USAID’s inaugural meeting of the Philippine Government-University-Industry Research Roundtable (P-GUIRR). The P-GUIRR, a multisectoral consultative body modeled after the US’s own Government-University-Industry Research Roundtable (GUIRR), seeks to strengthen the partnership
of the state, academe and the private sector, and translate their efforts into gains through research. The study sets the direction and reforms academe, the government and the industry must take to spur technology development and innovation. The assessment test ranked five processes and one broad factor: education and human-capital development; research and knowledge creation; transfer of know-how between universities and industries; intellectual property (IP) in the areas of protection, licensing and commercialization, start-up and spinoff companies; and collaboration. The program further focused each of the processes on supply, demand and enabling environment criteria to create a scorecard. In the results, the lowest ranking was
noted on the enabling environment for research and knowledge creation and the demand for IP (protection, licensing and commercialization). Phil Psilos, senior economic growth specialist of RTI International, presented the results and explained the enabling environment conducive for research and knowledge creation. Specific points for improvement were noted, such as the university system in the Philippines lacking in appropriate incentives to entice students to consider research as a career, and for institutions to produce globally competitive and commercially relevant research outcomes. For the IP factor, there was an observed lack in demand from local companies for IP protection since most firms prefer total control of IP as an element, aside from the unfa-
miliarity and trust in legal mechanisms for licensing. The enabling environment for the transfer of know-how between industries and universities and the IP was rated halfway between “poor” and “excellent”, or a “half-rating”. The factor rated the highest, with a three-fourths rating, is the enabling environment for education and human-capital development. Among the reforms noted by Psilos in the RTI assessment is the need for stronger universityindustry relationships in shared missions and goals, and having more appropriate expectations of university patent-licensing revenue for better collaboration of industry and academe. The program has a funding of $32 million spread over five years. Catherine N. Pillas