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A broader look at today’s business
n Sunday, November 29, 2015 Vol. 11 No. 52
P25.00 nationwide | 3 sections 16 pages | 7 days a week
Jica: Develop transport infra now or suffer ₧6 billion in losses daily
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By Lorenz S. Marasigan
ITH losses from traffic congestion in Manila set to spike up to a whopping P6 billion per day in the next decade-and-a-half, a ranking official from the Japan International Cooperation Agency (Jica) urged the Philippine government to quickly deploy measures to mitigate this catastrophe.
week ahead
ECONOMIC DATA PREVIEW Local currency
n Previous week: The local currency traded during the week mostly at the 47 territory. On Monday the peso hit 47.33 to a dollar, and appreciated slightly on Tuesday to hit 47.1 to a dollar. The peso crossed the 46 territory on Wednesday, hitting 46.97 to a dollar, only to depreciate again on Thursday at 47.12 to a dollar, after the announcement of the 6-percent GDP growth in the third quarter. The peso ended the week at 47.145 to a dollar, with an average trading value of 47.11 to a dollar and a total traded volume of about $3 billion. n Week ahead: The peso is not seen to stray from its current trading path, as most of the data to be released have already been expected by markets. In particular, the Philippine Statistics Authority (PSA) is set to report the inflation data at the end of the week and the US is set to release its nonfarm payroll print.
Inflation
n October inflation: The PSA reported last month that inflation hit 0.4 percent in October, unchanged from the previous month’s inflation. It is the result of the significantly lower growth of consumer prices compared to the 4.3 percent posted in October last year. This is the first time that inflation did not decrease since February this year. This is also the fourth consecutive month that inflation hit below 1 percent for the year. This brings the average inflation for the first 10 months of the year at 1.45 percent. The average inflation for January to October this year is below the government’s target range for the year of 2 percent to 4 percent. This means that for inflation to reach the government’s target for the year, it should shoot up to as high as 4.75 percent in the last two months of the year. n November inflation: The growth of consumer prices in See “Outlook,” A2
One such measure, Jica Chief Representative to Manila Noriaki Niwa said, involves the construction of railway lines—facilities that have proven to have freed roads from unnecessary congestion, and improved the mobility of goods and services in other countries. “Traffic congestion is a clear and immediate challenge that can affect a country’s economic competitiveness,” he said. “It’s timely for the Philippines to start its railway projects to ease traffic, and improve mobility of logistics and ordinary commuters.”
Niwa added that Manila could learn from the experiences of cities abroad, citing Tokyo’s extensive railway network as an example. “The Philippines’s transit lines of trains extend to about 50 kilometers, compared with cities like Tokyo, which has a 300-km subway network. By helping develop Metro Manila’s mass-transit system, we can expand growth and develop surrounding cities,” he said. Manila, when compared to neighboring cities, is experiencing a dearth in rail facilities. Despite See “Jica,” A2
Decline in exports drags down GDP growth–DBS By Bianca Cuaresma
T
he Philippines could have topped the ceiling of the government’s target for this year, if net exports were taken out of the equation—a contrast to actual economic expansion in the first three quarters of the year, which barely brushes the bottom end of the target this year. In his latest commentary on the Philippines, Singapore-based DBS Bank economist Gundy Cahyadi said his estimates project a stellar GDP growth for the country at 8 percent—if the drag in net exports was removed from the country. Earlier this month the Philippine Statistics Authority (PSA) reported that the country’s export sales totaled $4.405 billion in September this year, posting a 24.7-percent decline from the $5.846 billion in September last year. The decline was seen in eight out of 10 top major commodities
Pope Francis honors Ugandan Christian martyrs, meets youth
for the month. These include chemicals, at -85.5 percent; other mineral products, -72.8 percent; other manufactures, -66.1 percent; metal components, -55.8 percent; articles of apparel and clothing accessories, -45.5 percent; coconut oil, -38.4 percent; ignition wiring set and other wiring sets used in vehicles, aircraft and ships, -2.7 percent; and electronic products, -2.1 percent. Economists have earlier attributed the slump in the country’s export sales to the weak global demand, particularly in China and the United States. The weakness in exports— which was also seen across other emerging markets in the world— is also being blamed for the weaker GDP growth of the country this year. Just this week the PSA reported that GDP grew year-onyear by 6 percent in the third quarter of 2015. This is higher than the growth rates of 5.8 percent in the second quarter of 2015 and the 5.5 percent in the third quarter of 2014. See “Decline,” A2
Pope Francis walks in procession as he arrives to celebrate Mass near the Catholic martyrs’ shrine of Namugongo, Kampala, Uganda, on Saturday. Francis is in Africa for a six-day visit that is taking him to Kenya, Uganda and the Central African Republic. AP/Andrew Medichini
K
AMPALA, Uganda—Pope Francis paid respects to 19th-century Ugandan Christians who chose to be burned alive rather than renounce their faith, the latest group of martyrs from around the world honored by Francis in hopes of giving today’s faithful missionary role models. Francis prayed on Saturday at shrines dedicated to the 23 Anglican and 22 Catholic martyrs who were killed between 1885 and 1887 on the orders of a local king eager to thwart the influence of Christianity in his central Ugandan kingdom. At Namugongo, where most of the martyrs were burned alive, he celebrated Mass in their honor to mark the 50th anniversary of the Catholics’ canonization.
Hundreds of thousands attended the Mass, including the president of neighboring South Sudan, with whom Francis met in private after his official welcome ceremony on Saturday with Ugandan President Yoweri Museveni. “They remind us of the importance that faith, moral rectitude and commitment to the common good have played, and continue to play, in the cultural, economic and political life
of this country,” Francis told Museveni and other Ugandan authorities and diplomats at a ceremony at the State House. After the ceremony, Francis was welcomed at a secondary shrine to the martyrs by tens of thousands of shrieking faithful and a hip-gyrating traditional dancers, evidence of the enthusiasm that has greeted Francis on his first trip to Africa. Continued on A2
ERC sets tough penalties vs overcharging electricity DUs By Lenie Lectura
T
HE Energy Regulatory Commission (ERC) said it would not hesitate to penalize electricity-distribution utilities (DUs) that overbill their consumers. ERC Chairman Jose Vicente B. Salazar has called on all DUs to “ensure
PESO exchange rates n US 47.0690
that their customers are fairly billed for electricity consumption based on accurate reading and computation of properly installed meters.” “The ERC will hold accountable any power utility whose negligence results in clear disadvantage to customers. It is the right of every customer to have accurate meters that guarantee the correct registration of their electricity consumption,” the ERC official added.
The agency’s warning came after it recently ordered the Manila Electric Co. (Meralco), the country’s largest DU, to refund a customer named William Chan in the amount of P1.8 million. The amount includes the refunds, fines and interest. Moreover, the ERC slapped Meralco with a P100,000 fine for “negligence in the conduct of its business in distributing electricity” to Chan.
Excessive billing
CHAN, who is in the tube-ice business, said that on November 16, 1998, he discovered that one of the electric meters installed outside his plant was missing. He noticed that his monthly energy consumption was consistently pegged at 165,240 kilowatt-hour (kWh) for three consecutive months, despite absence of a functional electric meter.
SALAZAR: “It is the right of every customer to have accurate meters that guarantee the correct registration of their electricity consumption.”
See “ERC,” A2
n japan 0.3839 n UK 71.0789 n HK 6.0733 n CHINA 7.3665 n singapore 33.4344 n australia 34.0266 n EU 49.9402 n SAUDI arabia 12.5434
Source: BSP (27 November 2015)