TYCOON ANDREW TAN RECEIVES GLOBAL EXCELLENCE AWARD The International Chamber of Commerce Philippines (ICCP) gave tycoon Dr. Andrew L. Tan the Global Excellence Award in ceremonies held during the 42nd Philippine Business Conference at the Marriott Hotel on Thursday night. The award recognizes Tan, who chairs the conglomerate Alliance Global Group Inc. that owns Megaworld, Emperador, Travellers International (operator of Resorts World Manila) and McDonald’s Philippines (Golden Arches Development Corp.), for raising the bar of Philippine business to compete locally and internationally, and in helping the nation achieve inclusive growth and development. Photo shows (from left) Trade Secretary Ramon M. Lopez, Finance Secretary Carlos G. Dominguez III, President Duterte, Alliance Global Group Chairman Dr. Andrew L. Tan, incoming Chairman of Asean Business Council Joey Concepcion, and Founding Chairman of the ICCP Francis Chua.
media partner of the year
BusinessMirror
United nations
2015 environmental Media Award leadership award 2008
A broader look at today’s business
www.businessmirror.com.ph
n
Friday, October 14, 2016 Vol. 12 No. 2
ROBREDO SAYS 2-YR MORATORIUM TO EXACERBATE RISING HOUSING GAP
Land-conversion ban to hike property cost
INSIDE
T
By Catherine N. Pillas
@c_pillas29
he plan of the Department of Agrarian Reform (DAR) to impose a blanket ban on land conversion was also opposed by Vice President Maria Leonor G. Robredo, saying this will hurt the homeless.
Toiling tenacity and trustworthiness
9,000 ha The size of rice farms being converted into other uses or planted with other crops annually
Robredo and the country’s economic managers signed a petition against the two-year moratorium on land conversion, which was initiated by the Continued on A2
2016 ejap JOURNALISM awards
business news source of the year
P25.00 nationwide | 5 sections 34 pages | 7 days a week
NEDA’S LONG-TERM PLAN FOR PHL GETS DUTERTE’S NOD
P
EO 5
resident Duterte has signed an executive order (EO) approving and adopting the 25-year long-term plan that was completed by the The directive signed National Economic and Development Authority by the President which (Neda) during the Aquino approved AmBisyon administration. Nation 2040 In EO 5, signed on October 11, Mr. Duterte said the “AmBisyon Nation 2040” would be used by the government as guide to triple per-capita incomes of Filipinos and eradicate hunger and poverty. “An appropriate set of milestones shall be identified to guide the successive medium-term development plans,” the EO read. “The Philippine Development Plans [PDPs] to be crafted and implemented until 2040 shall be anchored on the AmBisyon Nation 2040 and overall goals,” it added. As Asia is projected to be the center of the global economy by 2050, Mr. Duterte said the country needs a “bold vision” and “effective development See “Neda,” A2
motoring
e1
Oil falls below $50 on rising stockpiles as Opec debates cuts
chevy’s new pickup and suv ready for phL roads
O Motoring
E2
it takes four wheels to tango
J. Wilfredo A. Cabangon (third from left), chairman of Fortune Care; and J. Antonio A. Cabangon Jr. (second from left), chairman and CEO of Fortune General, receive the posthumous award given to the late Ambassador Antonio L. Cabangon Chua during the 38th Catholic Mass Media Awards, with the theme “Communication and Mercy: A Fruitful Encounter,” held at the Star Theater, Star City, CCP Complex, Pasay City. Giving the award are His Eminence Luis Antonio G. Cardinal Tagle (second from right), archbishop of Manila and CMMA honorary chairman; Rev. Fr. Rufino Sescon Jr. (left), trustee and executive director; and Rev. Fr. Salvatore Putzu, SDB. ROY DOMINGO
Communicate in spirit of mercy–Tagle By Claudeth Mocon-Ciriaco
Motoring
M
E2-E3
Correspondent
a nil a A rc hbishop Lu is Antonio G. Cardinal Tagle has expressed hope that “communication will always be done in the spirit of mercy.” Highlighting the 38th Catholic Mass Media Awards (CMMA) night was the presentation of a special Posthumous Award to Ambassador Antonio L. Cabangon Chua,
PESO exchange rates n US 48.5810
chairman and president of the CMMA for nearly 17 years. In his opening message during the 38th Catholic Mass Media Awards at the Star Theater in Pasay City on Wednesday night, Tagle said, “We hope every act of communication is mercifully done.” He stressed that communication with mercy is the only way that could evoke change.” For this year, the CMMA carried the theme communication and mercy, based on the message of Pope Francis for World Communications Day. Mercy, Tagle as-
serted, should be communicated and “should not be hidden.” “Sana, ang pagpapakita ng habag, hindi natin itago [Let’s all demonstrate and show our mercy and compassion. In doing so, let’s all be open about it.] At the end, mercy and communication meet in God. Our God is not only dialogue but expressed God’s heart. The heart of God is mercy. Sana maging mabuti tayong [Let’s all be good] communicators Continued on A2
il extended its decline to below $50 a barrel, after US industry data showed stockpiles grew and as differences emerge within the Organization of the Petroleum Exporting Countries (Opec) over how members will share output cuts. Futures slid as much as 1.1 percent in New York, after losing 2.3 percent the previous two sessions. US crude inventories increased by 2.7 million barrels last week, the American Petroleum Institute was said to report. While the Opec has pledged to trim production, disputes have emerged over individual targets with the group’s latest output estimates showing a half-million-barrel discrepancy over how much two key members are pumping. Chinese crude imports rose to a record 8.08 million barrels a day in September. Oil has fluctuated near $50 a barrel amid speculation about the ability of the Opec to implement the cuts. Russia is ready to participate with the group in a “technical exchange” to set a road map for production levels later this month in Vienna, where an Opec committee will try to resolve disputes over how much Venezuela and Iraq should pump. “The market is waiting to see the mechanics of the Opec agreement, exactly how it’s going to work and which countries are going to cut production,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “Prices have probably advanced far enough given the possibility of increased US output. A pullback into the mid- to high-$40s is possible.” West Texas Intermediate for November delivery fell as much as 56 cents to $49.62 a barrel on the New York Mercantile Exchange, and was at $49.64 at 10:30 a.m. in Hong Kong. The contract slid 61 cents to $50.18 on Wednesday. Total volume traded was 45 percent below the 100-day average. Brent for December settlement lost as much as 47 cents, or 0.9 percent, to $51.34 a barrel on the London-based ICE Futures Europe exchange. The contract dropped 60 cents to $51.81 on Wednesday. The global benchmark traded at a $1.26 premium to December WTI. Bloomberg News
n japan 0.4663 n UK 59.3223 n HK 6.2632 n CHINA 7.2293 n singapore 35.1222 n australia 36.7272 n EU 53.4877 n SAUDI arabia 12.9522
Source: BSP (13 October 2016 )
News BusinessMirror
A2 Friday, October 14, 2016
www.businessmirror.com.ph
Land-conversion ban to hike property cost Continued from A1
departments of Finance, and Budget and Management, and the National Economic and Development Authority (Neda). “The proposed blanket two-year ban on land-use conversion will further delay the housing and resettlement processes, which will exacerbate the insurmountable housing backlog that we are working to address,” she said in a statement. “[The ban] will further delay our efforts in Yolanda-affected and other disasterstricken areas, since these sites are mostly within agricultural zones,” Robredo added.
The Vice President, who is also chairman of the Housing and Urban Development Coordinating Council (HUDCC), said the ban would drive up the prices of residential lands and, consequently, make low-cost housing less affordable. According to data from HUDCC, out of the 5.7 million projected housing need by the end of 2016, there are 1,502,336 informal-settler families who need resettlement and 1,811, 338 families, who were victims of natural disasters between 2009 and 2014, who need immediate housing intervention. “By unnecessarily locking up the land
resources for two years, including those that were already identified as suitable for socialized housing, this will make our mission far more difficult in solving the growing problem of homelessness,” Robredo said. The petition, which was also signed by the country’s economic managers, was transmitted to the Office of the President on Wednesday, according to Socioeconomic Planning Secretary Ernesto M. Pernia. “We are against the ban on land conversion. It’s going to be problematic for infrastructure and also housing,” Pernia told reporters on the sidelines of
the Philippine Chamber of Commerce and Industr y’s Philippine Business Conference and Expo, which kicked off on Wednesday. “Much of agricultural land in the Philippines is not suitable for crops,” he added. In an earlier report by the BusinessMirror, the country’s association of real-estate developers has expressed its opposition to the plan of the Department of Agrarian Reform, saying it will aggravate the ballooning housing backlog in the country. Last month, the DAR said it is crafting an executive order to implement the twoyear moratorium on land conversion. The
Neda. . .
Communicate in spirit of mercy–Tagle
planning.” The Neda said AmBisyon Natin 2040 represents the collective long-term vision and aspirations of the Filipino people for themselves and for the country for the next 25 years. “It describes the kind of life that people want to live, as well as how the country will look like by 2040. As such, it will serve as an anchor for development planning across at least four administrations,” the Neda said. In coming up with AmBisyon Natin 2040, the Neda said it followed a consultative process. An advisory committee, composed of representatives from the government, the private sector, academe and civil society, guided the overall implementation of the visioning exercise. Experts from different fields of development were also consulted, especially on the thematic technical papers. Guided by the Advisory Committee, the Neda led the development of the project’s various components, including public consultations through focus group discussions, national survey and technical studies.
of mercy,” he said.
Continued from A1
Radio ■ Best Educational Program: Good Morning Philippines ■ Best News Commentary: Failon Ngayon Sa dzmm ■ Best Business Program: Bida Specials—Diskarte Sa Buhay ■ Best News Feature: “Feast of San Lorenzo Ruiz Feature Story” ■ Best Public Service Program: Search For The Monster Scholar ■ Best Counseling Program, The Love Clinic ■ Best Drama Program: True Love Conversation: Story of Mercy ■ Best Entertainment Program: Radyo Balintataw—Ti Bunang The Musicale ■ Best News Program: Bombo News And Views Morning Edition
The 2016 CMMA awardees are: Print ■ Best Special Feature: Journey Behind Bars ■ Best News Coverage: “Resilient Faith”; “Sacred Walk”; “Go, Change The World” ■ Best Investigative Report: “Young Heroes” ■ Best Opinion Column: “Ang Inyong Lingkod” ■ Best Comic Story: “Wala Sa Materyal Na Bagay” ■ Best Local Community/Parish Newspaper: The Windhover: The Philippine Jesuit Magazine ■ Best Editorial Cartoon: “Death Penalty” ■ Best Entertainment Column: Word And Life Barkada ■ Best Family-Oriented Magazine: Family Matters ■ Best News Photograph, Season of Compassion ■ Best Youth Magazine: Youngster ■ Best Children’s Magazine: Backpack ■ Best Children’s Short Story: “Yaya Niya, Nanay Ko”
Television ■ Best Station Id: Abs-Cbn Christmas Station Id “Thank You For The Love” ■ Best Adult Educational/ Cultural Program: The Veronica Chronicles ■ Best Public Service Program: Failon Ngayon ■ Best Entertainment Program:
Dance Kids ■ Best News Magazine: I Juander ■ Best Children & Youth Program: Aha! ■ Best Drama Series/Program: Be My Lady, Fpj’s Ang Probinsyano ■ Best Comedy Program: Pepito Manaloto ■ Best Special Event Coverage: International Eucharistic Congress—Statio Orbis ■ Best Religious Program: Kerygma Tv ■ Best Talk Show: Reaksyon ■ Best News Program: State of The Nation with Jessica Soho ■ Best Tv Special: Warmer Music ■ Best Secular Album: The Great Unknown ■ Best Inspirational Song: “Pag Isipan Mo Ang Boto Mo” ■ Best Inspirational Album: One Praise Original Fil Christian Contemporary Music ■ Best Music Video: Thank You For The Love, Advertising ■ Best Tv Ad, Public Service: Chase ■ Best Tv Ad, Branded: One
DAR said the directive is aimed at protecting the country’s prime agricultural lands. Agriculture Secretary Emmanuel F. Piñol said he will not issue any permit for the conversion of agricultural lands into residential and commercial areas. Piñol made the announcement to assure farmers that there is enough land for agricultural production, especially for rice. A survey conducted by the government in 2008 found that an average of 9,000 hectares of farmlands devoted to rice all over the country are being converted to other uses or planted with other crops every year.
Continued from a1
Year In Seven Days ■ Best Radio Ad‚Public Service: Holy Week 2016 Plugs ■ Best Radio Ad, Branded: Mor Graduation Day ■ Best Print Ad, Branded: Uplift ■ Best Print Ad, Public Service: Burning The Midnight Oil Internet ■ Best Blog: http://Pinsoflight. net ■ Best Website: www.Worldmissionmagazine.com Cinema ■ Student’s Choice Award for Best Film: Old Skool ■ Student Cmma, Best Student Organ, Grade School: Luntiang Panulat ■ Best Public Service Radio Ad: Wow Genie ■ Best Tv Production: Yapak ■ Best Student Organ—High School: Fortibus ■ Best Short Film: The Prodigal Son ■ Best Public Service Tv Ad: Sign Language
■ Best Student Organ, College: The Varsitarian ■ Best Literary Publication: Phoenix (Folio): 1588: The Guilds Literary Folio 2015 ■ Best Public Service, Print Ad: Stop The Sale Special Citations ■ Print, Business Column: All In The Family ■ Children’s Short Story: “Ang Sabi Ni Nanay, Ang Sabi Ni Tatay”; “Nina Wonders, Nina Asks” ■ Youth Magazine: Fish Magazine ■ Family-Oriented Magazine World Mission ■ Short Story: “How I Found God Inside Quezon City Jail”; “A Tsunami of Forgiveness”; “Investigative Report, 10-Part Martial Law Series” ■ Opinion Column: Iamgenm Radio ■ Counseling Program: Kahapon Lamang “First Love Never Dies” ■ Educational Program: Katumbas Ay Biyaya “Real Life Story (10 Kumainments)” Television ■ Adult Educational/Cultural Program: Mag Tv Na ■ Public Service Program: Alagang Kapatid ■ News Magazine: Kapuso Mo, Jessica Soho; Tapatan Ni Tunying ■ Children & Youth Program: Alamat; Reel Time; Talk Show; Dream Home ■ Tv Special: 2 Degrees: Panahon Na Internet ■ Website: www.Phjesuits.org ■ Student Cmma Student Organ, Grade School; Tinig Dayalogo ■ Tv Production: Dalaw ■ Student Organ, College: Lavoxa Broadsheet Film ■ Student’s Choice Award For Film: Heneral Luna Hall of Fame Awardees Print ■ Best Children’s Short Story 2011, 2012, 2013, 2014 & 2015: “Hearty”; “Zerah”; “Glowie, The Christmas Star”; “Yohwel, The Beggar of The Christmas Night”; “Mikhol, The Cedar Tree” ■ Best Business Column 2010, 2011, 2013, 2014 & 2015: Business Matters ■ Serviam Awardee (Institution) Paulines Institute of Communication In Asia (Pica) ■ St. John Paull Ii Awardee Atty. Eugenio “Toto” Villareal Chairman, Movie and Television Review and Classification Board ■ Posthumous Awardee Ambassador Antonio L. Cabangon Chua Cmma Chairman and President
BMReports BusinessMirror
www.businessmirror.com.ph
Friday, October 14, 2016 A3
Result of probe on gencos’ ‘anticompetitive behavior’ out soon
R
By Lenie Lectura
@llectura
egulators are about to take up the results of the probe on powergeneration companies (gencos), whose power facilities in Luzon went on forced and unplanned outages from July 25 to August 4 this year, to determine whether anticompetitive behavior was committed.
“The technical team already submitted to us the results, as well as their recommendations. The commission will deliberate the same in the coming days. I will ask the new general counsel of the Energy Regulatory Commission [ERC] to include it on the agenda of the commission’s next meeting,” ERC Chairman Jose Vicente Salazar said in an interview. The ERC chief said the probe considered parameters such as the reasons for the outages, the resulting spot-market rates and bidding behavior of the gencos. “A determination will also be made on whether there are compelling reasons for the commission to conduct further investigation,” Salazar added. During the period, 20 power plants simultaneously shut down, mainly because these were on maintenance, on forced outage and others operated on limited capacity. On those days, the National Grid Corp. of the Philippines (NGCP) issued yellow- and red alert notices due to insufficient power reserves.
A yellow alert is issued by NGCP when contingency reserve is less than the capacity of the largest synchronized unit of the grid. In Luzon this is equivalent to 647 megawatts (MW), or one unit of the Sual power plant. A red alert, meanwhile, means there is severe power deficiency. From July 25 to August 4, there had been seven yellow alerts and two red alerts raised in the Luzon grid. Of the 20 plants, eight went on forced outage, while 12 were on scheduled maintenance shutdown. This resulted in the loss of more than 4,000 MW of capacity. Some of these plants were originally scheduled to implement maintenance shutdown during the election period, but were requested by the Department of Energy (DOE), during the time of former Energy Secretary Zenaida Monsada, to move this after the elections. Energy Secretar y A lfonso G. Cusi has said “postponing planned power-plant outage only complicates or compounds the problem.” Salazar added that the pres-
ent inquir y is focused only on whether anticompetitive behavior was committed. It can be recalled that the ERC required gencos to submit a detailed report on the causes of forced outages. Under ERC Resolution 4, Series of 2015, generating facilities are required to submit a report to the ERC within 48 hours from the occurrence of an unplanned outage. The ERC also required the gencos to submit the action undertaken and protocols to address these contingencies. Further, the ERC said sustained high prices for a significant period of time may be sufficient ground to further look into the behavior of the players in the spot market. Salazar said that, as part of the investigation process, the commission conducted technical inspections of the power plants to validate their respective outage events. “To ensure regular reporting of significant events, such as outages, the commission issued cause orders against several generation companies, asking these entities to explain why they should not be penalized for failure to report these outages,” Salazar added. Moving forward, the ERC is facilitating the determination of reliability-performance standards, which will be used in monitoring the generating units pursuant to an earlier resolution issued by the commission. “On the issue of reliabilit y, steps will be undertaken by the ERC, which will hopefully reduce the occurrence of red/yellow alerts through the enhancement of our monitoring mechanism for our outage events, as well as the establishment of mean to sanction unwar-
ranted or unreasonable deviations from the schedule of planned outages by gencos periodically submitted to the system operator. This will most likely be done through a Resolution by the commission en banc,” the ERC chief said. Through its Grid Management Committee, the ERC is currently gathering necessary data to determine the allowable number of outages by a certain generating unit. The commission is also preparing the mechanism to ensure that gencos follow their firm commitments under the grid operations and maintenance program to manage the supply condition and, ultimately, the reliability of the grid. This includes the formulation of penalties to be imposed against erring gencos, the ERC chairman explained. The DOE, for its part, is assessing whether there are enough measures or standards for gencos to ensure their power plants are always in good condition, and are able to meet their obligations to their respective customers. The agency said there are mechanisms, which are meant to address inefficient power supply and reserves, being studied. These include looking into the provision of replacement power for contracted capacities and the creation of technical audit teams to assess the operations and contracts of gencos and distribution utilities, as well as strengthening the promotion of energy investments to augment the supply of electricity in the country. “We are keen on improving the power-supply situation in the country. We will strengthen the policies and programs, and we will work with the ERC to ensure that all standards are
enforced to ascertain reliable, stable and reasonably priced electricity, because we cannot let the people suffer from power interruptions,” Cusi said. Also, the DOE would conduct an overall performance audit, or technical audit, for all gencos and distribution facilities. “The DOE noted the increasing and frequent occurrences of forced and unplanned outages, particularly of large baseload power plants, based on the reports of the NGCP resulting to issuances of yellow- and red-alert notices, which may lead to supply shortfall and possibly rotating brownouts,” it said. The DOE proposed that their overall performance, including compliance to laws, permits and licenses issued to them, would be evaluated. Likewise, an audit intends to remove bottlenecks and inefficiencies that cause disruptions in the power supply, it added. Meanwhile, consumer group Citizen Watch called on the ERC to thoroughly investigate what it described as “suspicious” trend of simultaneous outages. “Nine power plants in Luzon simultaneously shut down for emergency maintenance and several others operated on limited capacity, triggering a sharp increase in the prices of electricity and rolling outages across the region,” said Wilford Wong, Citizen Watch secretary-general. The group noted that the closures immediately impacted the spot market, where prices surged following thinning supply. “We are alarmed over this latest round of power-plant inefficiencies,” Wong said, citing similarly suspicious outages and shutdowns in November
2013 that drastically affected supply and consequently drove up rates, to the disadvantage of consumers who will bear the brunt of the increase. “We reiterate our call for a strict audit of the operational fitness of all existing power-plants, which can serve as an accurate base of what is really the actual and dependable capacity in the grid,” he said. The group said the ERC must see if there is evidence of cartel-like behavior among the power plant operations. If there is, the government must step in to immediately stop and prosecute the offenders, it said. According to the Wholesale Electricity Spot Market (WESM) operator, Philippine Electricity Market Corp., power rates did shoot up in August. It said the Effectice Settlement Spot Price for August stood at P4.17 per kilowatt hour (kWh) as against July’s P3.30 per kWh. ESSP pertains to the average price paid by customers for energy purchased from the spot market. The impact on consumers would depend on the distribution utility’s exposure. However, Philip Adviento, PEMC training and communications manager, said this is “relatively lower compared to bilateral contracts.” The ESSP for August is lower compared to the same period a year ago, which stood at P4.96 per kWh. Last year’s ESSP for July was recorded at P5.59 per KWh. Also, Manila Electric Co. (Meralco) rates went down during the August supply month, which was reflected in the September electricity bills of consumers. Meralco has said that overall charges from the WESM decreased by P0.32 per kWh.
A rare collection of BusinessMirror
exclusives
When I Was 25, Generations, Executive Views, Model Executive, Envoys & Expats, The Broader Look, BM Reports Extra, etc. The BM Extra Magazine is a must-have publication that you’d surely want to see in your office, library, coffee shop, restaurant, living room, anteroom, etc. OUT SOON!
BusinessMirror www.businessmirror.com.ph
AseanFriday BusinessMirror
A5 Friday, October 14, 2016 • Editor: Max V. de Leon
news@businessmirror.com.ph
Thai govt urges calm as King's health fuels social media chatter
T
he Thai government sought to quell speculation, as concern about the health of King Bhumibol Adulyadej sparked chatter on social media. The baht steadied, even as stocks slipped further on Thursday after declines this week.
Prime Minister Prayuth ChanOcha cut short a provincial trip to return to Bangkok on Wednesday, “in order to prepare for an audience with His Royal Highness the Crown Prince for a routine presentation on the government’s work in progress,” Prayuth’s office said in a statement. It urged Thais “to rely on official announcements for an update on situations, rather than uncorroborated information in social-media circles.” Late Wednesday afternoon Prayuth waved to reporters, and said “Go home, go home!” The Thai baht advanced 0.1 percent to 35.70 per dollar as of 12:43 p.m. in Bangkok, halting an eightday slide that had been its longest stretch of losses in more than a year. The SET Index fell 2.1 percent. The Securities and Exchange Commission will investigate those who spread rumors, which caused Thai shares to drop as much as 6.9 percent on Wednesday, Deputy Prime Minister Somkid Jatusripitak told reporters in Bangkok on Thursday. “I believe all of us are worried about his health,” Somkid said, referring to the king. “But don’t listen to the rumors. Please listen only to
240,000 The number of tweets depicting the Thai monarch at various stages of his life on Wednesday, making #LongLiveTheKing the top trending topic on Twitter in Thailand the government. Don’t fall victim to those who spread rumors to hammer down the stocks and seek benefits from that.” “Investors still show interest to come to Thailand and continue their investments,” Somkid said. Markets had weakened after the royal palace said on Sunday that Bhumibol’s health was “unstable.” #LongLiveTheKing was the top trending topic on Twitter in Thailand on Wednesday, with more than 240,000 tweets depicting the monarch at various stages of his life. Posts showed Thais holding portraits of Bhumibol and photos
of him meeting with his people or playing music.
Health update
The 88-year-old monarch has been a symbol of unity in Thailand, which has had 10 coups during his seven-decade reign. In a statement on Wednesday night, the Royal Palace said the king’s overall condition remained unstable. His blood pressure had declined further and his heart rate had increased, while treatment carried out indicated an infection and abnormal liver function, it said in the statement. The king was on various medications and a ventilator, and had been given renal treatment. Prayuth returned to Bangkok to greet Crown Prince Maha Vajiralongkorn, Sansern said. Vajiralongkorn, 64, is the king’s designated heir. Prayuth, a former army chief, became prime minister after leading a May 2014 coup that deposed the government of Yingluck Shinawatra, whose brother Thaksin Shinawatra was also ousted by the military in 2006. The king has been hospitalized since May 2015 and has been treated in recent months for hydrocephalus, a condition characterized by increased fluid in the cranium. In an October 9 statement, the Royal Palace said his overall health status was unstable and doctors were closely monitoring his condition. On October 1 the palace had said his condition had improved following a lung infection. Bloomberg News
Thai women pray for the health of King Bhumibol Adulyadej. BLOOMBERG
Singapore ranks a poor 7th in ability to prevent illicit trade, trails Malaysia
T
he wealthy city-state of Singapore—with its flourishing trade, orderly life and almost nonexistent crime—is hardly a place one would associate with illegal trade. But a new report by a reputed organization reveals that, in fact, the country has a poor record of preventing just that. The Economist Intelligence Unit (EIU) released a 100-point index on Wednesday that placed Singapore at seven out of 17 Asian countries for its ability to prevent illicit trade that includes counterfeit goods, arms and endangered wildlife. Singapore’s low ranking was largely the result of its lacunae in its freetrade zones. Commissioned by the European Chamber of Commerce, the index evaluated countries against 14 indicators, including transparency, intellectual property and customs. Singapore scored 69.8 points to tie with Taiwan. Still, it is behind neighbor Malaysia (71.8), often seen as a nation with a far less efficient government. The top performers were Australia (85.2), New Zealand (81.8) and Hong Kong (81.4). “While it has the strongest customs environment, a failure to monitor its busy free-trade zones dragged Singapore’s score down,” the EIU said in a press release. One of the index’s indicators rated countries between zero to
While it has the strongest customs environment, a failure to monitor its busy free-trade zones dragged Singapore’s score down.”—EIU
four for free-trade zone governance, including checks on warehouses for smuggled goods. Singapore was handed a score of one, meaning that there was little to no monitoring. It also received a poor rating for government cooperation with stakeholders. In an e-mailed statement late Wednesday, Singapore Customs said the island-nation was “not a major origin or destination” for intellectual property-rights infringements and counterfeit goods. “Singapore’s domestic laws apply within the free-trade zones and normal trade and customs requirements are in place for goods imported into or exported from Singapore,” it said. Given that Singapore ports have a high volume of trade and tight
turnaround times, it would be more effective to adopt an intelligenceled approach based on information received from overseas counterparts to enforce against such suspected shipments, it said. Simon Jim, the chairman of the European Chamber of Commerce’s Committee on Intellectual Property Rights, told reporters at a news conference where the report was released, that fake goods don’t just take revenue away from companies or governments. “They threaten the security of nations by supporting transnational crime syndicates and terrorist groups,” he said. Southeast Asian counterparts, except Brunei that did not feature in the index, ranked low on the table. The bottom three were Cambodia (23.9), Laos (12.9) and Myanmar (10.8). China, which carries a reputation of being a hub for counterfeit goods, had a score of 61.6. Illicit trade is more than just counterfeit goods. Illicit trade includes guns, endangered species, endangered wildlife and trafficked humans, author Chris Clague from the EIU said. A lot of these other forms of illicit trade follow the same channels that counterfeit goods do, he said. EIU said that rising labor costs in China could encourage manufacturers to look for cheaper sites, causing illicit trade to flow to developing Southeast Asian countries. AP
Indonesia likely to keep ban on nickel ore and bauxite exports, says minister
I
ndonesia will probably drop a controversial plan to allow exports of low-grade nickel ore and bauxite amid opposition from local smelters and fears that it could upset Chinese investors who’ve poured billions of dollars into the country to build processing plants. “Most likely, there won’t be any relaxation for exports of nickel ore and bauxite,” Luhut Panjaitan, acting energy and mineral resources minister, told reporters in Jakarta on Wednesday. The country “has attracted investments of about $5
billion, including for stainless steel, so why do we need to export if we can process domestically?” The U-turn comes about a week after Panjaitan had raised the possibility of easing the ban. The government had considered allowing ore sales with 1.8-percent nickel content or less because the material is hard to process locally and sales would help fund local smelters. Shipments of 15 million metric tons a year were possible. A final decision is still to be made and the government aims to complete discussion on the export
policy next week, Panjaitan said. The move to ease the moratorium was opposed by top domestic nickel producers Tsingshan Bintangdelapan Group, partly owned by China’s Tsingshan Holding Group, and PT Vale Indonesia, a unit of Brazil’s Vale SA. Stateowned PT Aneka Tambang, or Antam, supported the move. The government is still reviewing its policy on copper concentrates exports, Panjaitan said. The legislation currently stipulates that shipments must end from January 2017 as part
of a drive to get more value from sales by encouraging miners to invest in domestic processing capacity.
Ore costs
Southeast Asia’s biggest economy banned raw ore exports in 2014 to stop mineral wealth disappearing overseas. The country was the top supplier of nickel ore to China for use in stainless steel before the moratorium. The Philippines ramped up production to fill the gap, but the country’s mining industry is now facing
a raft of closures for environmental reasons. Indonesian sales of 15 million tons would have been almost half the 32.3 million tons shipped by the Philippines last year. The move would have inflated local smelting costs and threatened the existence of small producers, Alexander Barus, CEO of the Tsingshan Bintangdelapan Group, said last week. He called the move unwise and said it contradicted promises by the nation’s president. Vale Indonesia said that easing the ban risked flooding the overseas
market and undermining prices. The proposal had also irked some Chinese investors who had spent billions of dollars on smelters in Indonesia, according to Jonatan Handojo, vice chairman of the refining industry association. Nickel prices advanced as much as 1.9 percent to $10,620 a ton on the London Metal Exchange on Wednesday, the highest in more than a week, and were at $10,460 on Thursday. The metal fell to a low of $7,550 in February, the cheapest in more than a decade. Bloomberg News
A6
The World BusinessMirror
Friday, October 14, 2016
Slower growth, rivalries are key issues at BRICS summit in India B
news@businessmirror.com.ph
China’s exports last month post biggest drop since Feb
N
By Nirmala George | The Associated Press
EW DELHI—Expectations were high when five big, developing nations in 2009 joined as the so-called BRICS. The cooperation of the fast-rising economies driving world growth seemed to herald a new era of putting poverty alleviation and infrastructure development first. The five Brics countries—Brazil, Russia, India, China and South Africa—do not lack for heft. They represent nearly half the world’s population and a quarter of its economy, at a combined $16.6 trillion. But at a summit in the western Indian state of Goa this weekend, their leaders will be struggling to temper their tendency to compete, rather than collaborate, in boosting their slowing economies. The five nations face unique challenges that make coordination tricky. The authoritarian systems in Russia and China diverge from the lively democracies in India, South Africa and Brazil. Conflicting alliances with non-BRICS countries mean the group is unlikely to reach a consensus over issues, such as the war in Syria or tensions in the South China Sea.
Work in progress
WITHIN their ranks, the four other
nations are chafing at China’s increasing dominance in manufacturing and trade and seem unlikely to support a push by Beijing for more open markets when they are striving to keep their own heads above water. “Brics is still a work in progress,” said H.H.S. Vishwanathan, a former Indian diplomat in the US and several African countries. “If one looks at statements from the last seven summits, the agenda of the group is constantly evolving and expanding.” Chinese academics and analysts have floated the idea of pushing for a free-trade agreement among the BRICS. A Chinese Commerce Ministry spokesman said last month that, while China hasn’t made such a proposal formally, it believes that removing tariffs and other barriers could be important for practical cooperation between the five nations. Such an idea would likely fall flat with other BRICS countries anxious over cheap Chinese goods flooding
their markets and already burdened by huge trade deficits with Beijing. “It is likely the Chinese may not bring it up at all, because they would not want to be in an embarrassing position,” Vishwanathan said. “This is a nonstarter for the BRICS.”
Pushing intratrade
IN Goa, the BRICS leaders are likely to buttress their development-focused economic agenda with a decision to establish their own credit-rating agency, which they argue would treat developing countries more fairly than existing ones favoring Western economies. They are also mulling over founding a think tank to help shape international dialogues on finance. More modest aims include easing visa restrictions for business leaders and increasing investments from China, especially for funding infrastructure projects. “While we cannot expect any big announcement over a BRICS free-trade arrangement, the Goa summit statement will reflect the desire of the five to strengthen trading arrangements to push intraBRICS trade,” said Samir Saran, vice president of the Observer Research Foundation think tank in New Delhi and a member of the BRICS Think Tank Council. To date, the Brics group’s biggest achievement has been launching a financing alternative to the International Monetary Fund and World Bank intended to expand lending for infrastructure projects, initially within their countries. The Shanghai-based New Development Bank approved its first set of loans totaling
$911 million this year for renewableenergy projects in the five founding member nations. “The fact that the NDB was created in three years and has already cleared more than $900 million worth of projects this year is quite creditable,” said Vishwanathan, a former Indian diplomat.
Hard reality
OVERSHADOWING the meeting in Goa is the hard reality of slowing growth around the globe. China’s expansion has slowed to its slowest pace in 25 years, though it is still near a robust annual pace of 7 percent. Russia has been flummoxed by declining oil prices. Brazil is just emerging from its worst recession since the 1930s. South Africa’s economic turmoil could lead to its credit rating being downgraded to junk by the year’s end. India, with an economy growing at a 7.5-percent pace, is still failing to create the 1 million new jobs it needs each month as enormous numbers of youths join the work force. Still, they have the potential to alter the order of world trade, said Biswajeet Dhar, an economics professor at New Delhi’s Jawaharlal Nehru University. Other trading arrangements, such as the WTO, are heavily influenced by the industrialized countries, he notes. And a US-led push for a Pacific Rim trade block, the Trans-Pacific Partnership, has yet to take off. “This is the opportunity for the Brics countries to craft a more equitable global trading order,” Dhar said. AP
In this July 9, 2015, file photo, Indian Prime Minister Narendra Modi (left) and Russian President Vladimir Putin prepare to shake hands prior to their talks during the BRICS Summit in Ufa, Russia. The leaders of five big, developing nations that banded together in 2009 as the so-called BRICS nations are set to attend their annual summit on October 15 and 16 in a beach-resort town in the western Indian state of Goa. AP
Iran breaks up IS bomb plot targeting Ashoura
T
EHRAN, Iran—Iran broke up an Islamic State plan to b omb com me mor a tions marking the Shiite religious mourning period of Ashoura, state media reported, the latest alleged militant plot to target the country. Iran’s official Irna news agency quoted Intelligence Minister Mahmoud Alavi as saying several foreign nationals were detained with some 100 kilograms of explosives. State television also reported the arrests. Alavi said late on Wednesday the suspects planned to attack
Ashoura events in Iran’s southern Fars province. Ashoura marks the death of Hussein, the grandson of the Prophet Muhammad, at the Battle of Karbala in present-day Iraq in the 7th century. Alavi referred to the suspects as “takfiri terrorists,” a term used by Iranian officials to describe militant Sunni Muslim fundamentalists like the Islamic State group. “Intelligence Ministry agents, with the cooperation of other security forces, succeeded to defuse one of the antisecurity plots of the ‘takfiri’ terrorist groups and
prevent an inhuman crime in the ceremonies,” he said. There was no other information immediately released, though the arrest of foreigners on such charges is rare. Iran has helped Shiite militias fighting against the Islamic State group in Iraq, while also supporting embattled Syrian President Bashar al-Assad. Alavi blamed Iran’s foreign “enemies” for helping the Ashoura bombing suspects, without elaborating. Iran in recent months has announced an increasing number
of thwarted militant attacks. In June, Iran said it broke up one of the “biggest terrorist plots” ever on its soil by Sunni extremists planning bombings in Tehran and elsewhere during the holy Muslim fasting month of Ramadan. Iran increasingly has warned of possible militant assaults targeting the country, which hasn’t seen large-scale attacks since the 1980s. Recently though, Iran has faced increased attacks from Kurdish separatists. Arabs in its southern, oil-rich region and Baluch militants also launch occasional attacks. AP
EIJING—China’s exports posted their biggest drop since February, while imports also contracted in a sign that weak global demand continues to challenge the world’s second-largest economy. Exports contracted 10 percent last month to $184.5 billion over a year earlier, worse than August’s decline of 2.8 percent, customs data showed on Thursday. Imports fell 1.9 percent to $142.5 billion, also down from a 1.5-percent rise in August. Economists had expected exports to fall 3.3 percent and imports to rise 1 percent. In February exports fell 26.6 percent. “Still sluggish global demand appears to be to blame” for the steep decline in exports, Capital Economics analyst Julian Evans-Pritchard said in a report. Chinese leaders are under pressure to shore up trade and stave off job losses in export industries. The contraction in imports reflects possible weakness in the domestic economy, but the figures also were depressed by a decline in prices of oil and other commodities. “This could be an early sign that the recent recovery in economic activity is losing momentum,” EvansPritchard wrote, while cautioning against reading too much into a single data point.
China’s economic growth held steady at 6.7 percent in the quarter ending in June, but that was the lowest quarterly level since the aftermath of the 2008 global crisis. Chinese leaders have warned that the country’s economic outlook will be “L-shaped,” meaning its five-year-long decline is expected to level off, but there is no sharp rebound in sight. An unexpectedly sharp drop in global demand for Chinese goods over the past two years has threatened to disrupt Beijing’s marathon effort to reduce reliance on trade and investment. Those plans call for nurturing domestic consumer demand, but are based on holding exports steady to avoid politically dangerous job losses. The trade surplus dropped to $42 billion, from $52 billion in August. ANZ Research’s David Qu, a market economist, and Raymond Yeung, chief economist for greater China, said in a report that weak external demand would continue to weigh on the trade outlook, citing risks from the US election and the aftermath of Britain’s vote to leave the European Union in June. “We do not foresee exports being a growth driver of the Chinese economy over the next few quarters,” they said in a report. AP
Officials: US missiles destroy radar sites on Yemen’s coast
W
A SHINGTON—USlaunched Tomahawk cruise missiles destroyed three coastal radar sites in Houthicontrolled territory on Yemen’s Red Sea Coast early on Thursday, officials said, a retaliatory action that followed two incidents this week in which missiles were fired at US Navy ships. The strikes marked the first shots fired by the US in anger against the Houthis in Yemen’s long-running civil war. The US previously only provided logistical support and refueling to the Saudi-led coalition battling Yemen’s Shiite rebels, known as Houthis, and their allies, including supporters of Yemen’s former president, Ali Abdullah Saleh. While the US military has been focused on al-Qaeda in Yemen, the Houthis had not been a primary target of American forces until the missile launches from Houthi-controlled territory this week. No information on casualties from the US missiles was provided by American officials. The three radar sites were in remote areas, where there was little risk of civilian casualties or collateral damage, said a military official who was not authorized to be named and spoke on condition of anonymity. The destroyer USS Nitze launched the cruise missiles, the official said.
Weighed options
PRESIDENT Barack Obama authorized the strikes at the recommendation of Defense Secretary Ash Carter and the chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford, Pentagon Press Secretary Peter Cook said in a statement. US officials had said earlier that the US was weighing what military response to take. “ These limited self-defense strikes were conducted to protect our personnel, our ships and our freedom of navigation in this important maritime passageway,” Cook said following the US action. “The United States will respond to any further threat to our ships and commercial traffic, as appropriate, and will continue to maintain our freedom of navigation in the Red Sea, the Bab al-Mandeb and elsewhere around the world.” Loai al-Shami, a Houthi spokes-
man, declined to comment immediately on the US strike. Early Wednesday, two missiles were fired at the USS Mason, an Arleigh Burke class of guided missile destroyer that is conducting routine operations in the region with the USS Ponce, an amphibious warship. Neither missile got near the ship, said a US military official.
American pride
THE missiles were fired from the Yemen coast, near the location used on Sunday, when two missiles were launched at the same two ships, said the official, who was not authorized to be named and spoke on condition of anonymity. A second official said it wasn’t clear whether the ship’s countermeasures caused the missiles to hit the water on Wednesday or if they would have landed there anyway. The official also spoke on condition of anonymity. “These unjustified attacks are serious, but they will not deter us from our mission,” the chief of naval operations, Adm. John Richardson, said in a statement on Wednesday. “The team in USS Mason demonstrated initiative and toughness as they defended themselves and others against these unfounded attacks over the weekend and again today. All Americans should be proud of them.” The missiles fired on Sunday were variants of the so-called Silkworm missile, and both also fell harmlessly into the water. The Silkworm is a type of coastal defense cruise missile that Iran has been known to use.
US complicity
SUNDAY was the first time that US ships were targeted by a missile launch from Yemen. Last week an Emirati-leased Swift boat came under rocket fire near the same area and sustained serious damage. The United Arab Emirates described the vessel as carrying humanitarian aid and having a crew of civilians, while the Houthis called the boat a warship. The US has been considering withdrawing its support for the Saudi-led coalition fighting the Houthis following Saturday’s airstrike on a funeral and other troubling incidents of civilian casualties as a result of the Saudi bombing campaign. AP
news@businessmirror.com.ph
The World BusinessMirror
Friday, October 14, 2016
A7
China’s low-profile takeover king shoots up rich-list ranks $17.2B H ONG KONG—A low-profile tycoon has rocketed up the ranks of China’s wealthy after a hostile takeover he launched for the country’s biggest property developer helped swell his fortunes, a report said on Thursday.
Yao Zhenhua’s wealth surged ninefold to $17.2 billion, making him China’s fourth richest person on the Hurun Report’s annual ranking. Last year he was estimated to be worth just under $2 billion, putting him at No. 231. There was little change at the top of Hurun’s list.
Property and entertainment mogul Wang Jianlin held on to top spot, with Hurun putting his wealth at $32.1 billion. Jack Ma, founder and chairman of Alibaba, stayed at second place even as his wealth swelled 41 percent to $30.6 billion, thanks to the e-commerce giant’s rising share
The wealth of Yao Zhenhua, China’s fourth-richest person
price this year. Ma Huateng of Tencent Ltd., which runs the popular WeChat social-media service, moved up one spot to third with a fortune estimated at $24.6 billion. Hu r u n C h a i r m a n R up e r t Hoogewerf said Yao’s rise illustrated shifts in China’s maturing economy. “Yao’s financial-investment model represents the new wave of wealth creation in China,” Hoogewerf said. “The first money made in China 20 years ago came from trading, followed by manufac-
turing, real estate, IT [information technology], and today it is about using the capital markets for financial investments.” Yao, 46, is chairman of Baoneng Group, a real estate and financial services group based in the southern boomtown of Shenzhen. His privately owned company has made waves over the past year by amassing 25 percent of China Vanke’s shares, leading to a bitter and prolonged takeover battle for the homebuilder, which is based in the same city. Yao’s wealth soared as speculation about Baoneng’s bid sent Vanke’s mainland China-listed shares surging. Shanghai-based Hurun publishes a monthly magazine and releases yearly rankings and research about the world’s richest people and their spending habits. AP
Nepal’s popular Buddhist nun is a musical rock star By Binaj Gurubacharya The Associated Press
K
ATHMANDU, Nepal—There is one Buddhist nun everyone in Nepal knows by name—not because she’s a religious icon and a Unicef goodwill ambassador, nor for her work running a girl’s school and a hospital for kidney patients. Ani Choying Drolma is famous as one of the country’s biggest pop stars. With more than 12 albums of melodious Nepali tunes and Tibetan hymns that highlight themes of
peace and harmony, the songstress in saffron robes has won hearts across the Himalayan nation and abroad. “I am totally against the conservative, conventional idea of a Buddhist nun,” the 45-year-old nun said. Some people “think a Buddhist nun should be someone who does not come out in the media so much, who is isolated...always in a monastery, always shy. But I don’t believe in that.” Neither do her fans, who greet her with a roar of applause whenever she walks out on stage, and fall silent as she closes her eyes to sing. “Every time I get frustrated
with life or get angry, I just listen to Ani’s music and I calm down,” said one fan, Sunil Tuladhar. “She is my music goddess.”
Typical nun
BUT with a career deviating sharply from what conservatives in Nepal believe to be the proper path of a Buddhist, she’s caught criticism, as well. One Buddhist monk at the famed Swayambhu Shrine questioned how she can reconcile the simple life of a religious ascetic with the fame and wealth she’s amassed over her twodecade musical career. “How can a nun be making money
by selling her voice, living a luxurious life and yet claim she is a nun?” Surya Shakya asked. Despite her fame, Drolma looks every bit the typical Nepalese Buddhist nun, with her hair shaved short and an ever-present smile. She travels the world giving concerts in countries, including the United States, Brazil, China and India. Popular composer Nhyoo Bajracharya, who has worked with Drolma, describes her music as a fusion of traditional Tibetan and Nepali styles. “They are religious songs, slow rock with flavors of blues and jazz combined,” he said. AP
In this June 24, 2016, photo, a gambler plays a slot machine at the Golden Nugget casino in Atlantic City, New Jersey. AP
Gambling regulators OK skill-based slots
A
TLANTIC CITY, New Jersey—Gambling regulators have approved a New York firm to become the first in the United States to deploy skill-based slot machines on casino floors in which payout is determined by the player’s ability. The New Jersey Division of Gaming Enforcement (DGE) gave approval late Wednesday night to GameCo Inc. to deploy its machines at three Atlantic City casinos owned by Caesars Entertainment. The machines could start being installed as soon as Monday at Harrah’s, Caesars or Bally’s. The machines, called VGMs, are expected to undergo several weeks of testing, and are expected to usher in a new era of gambling aimed at attracting young people who grew up playing video games. “With this approval from the DGE, the VGM is officially the first skill-based video-game gambling product approved by any US gaming jurisdiction regulator,” said Blaine Graboyes, the company’s CEO and cofounder. The company has been in a race with rival firm Gamblit, which last
month announced plans to put similar machines in California and Nevada in October, also at Caesarsowned casinos. Other manufacturers working on similar products include IGT and NanoTech Gaming. The machines are aimed squarely at millennials and those who like playing games on social-media networks or on their phones, and who may be less inclined to play traditional push-button slot machines. Titled “Danger Arena,” the games give the player a brief tutorial, make sure the customer knows how to use the controls and that they are working properly, and then presents the customer with a map, or game scenario. This scenario will vary randomly, and constitutes the element of chance or randomness that is the hallmark of traditional slot machines. It is then up to the player to maneuver through the playing field in 45- to 90-second increments. Each game also includes a secondary random winning opportunity, with a possible instant cash win ranging from $1 to $5,000, Graboyes added, so that even poorly skilled players have a chance at winning, he said. AP
A8
The World
Friday, October 14, 2016 • Editor: Lyn Resurreccion
BusinessMirror
news@businessmirror.com.ph
Race for US presidency devolves into ugly fight over treatment of American women
L
AS VEGAS—Already deeply divisive, America’s campaign for president is quickly devolving into an ugly fight over who has treated women worse: Donald Trump, whose White House bid is floundering, or former President Bill Clinton, who isn’t on the ballot. Trump’s campaign is now openly signaling it will spend the election’s final month relitigating Bill Clinton’s marital affairs and unproven charges of sexual assault, as well as his wife and Democratic nominee Hillary Clinton’s unverified role in intimidating the women who were involved. But Trump is a deeply imperfect messenger, given that his attacks on the Clintons’ treatment of women are being overshadowed by a flood of allegations that he kissed and groped women without their consent. On Wednesday The New York Times and the Palm Beach Post reported stories about three women who alleged Trump had inappropriately touched them. Separately, a People Magazine reporter wrote a detailed first-person account of being attacked by Trump while interviewing the businessman and his wife, Melania Trump.
Suit threats
THE stories come less than a week after the publication of a 2005 recording in which the Republican nominee boasted of using his fame to kiss and grab women. The revelation prompted a flood of Republicans to revoke their support for Trump, with some even calling for him to drop out of the race—though a handful of GOP officials have since switched back to supporting their party’s nominee. Clinton adviser Jennifer Palmieri said the latest revelations match “everything we know about the way Donald Trump has treated women.” Trump’s campaign denied the reports and threatened to sue The New York Times if the paper did not retract its story.
Campaign centerpiece
TAKEN together, the revelations about Trump and his counterprogramming about Bill Clinton have plunged an already rancorous campaign to new lows. The realestate mogul has also aggressively charged that Hillary Clinton not only needs to be defeated in November, but also “has got to go to jail.” His campaign is also facing questions about ties to Russian interests accused of hacking Democratic groups, as well as the hacking of a top Clinton adviser’s e-mails. For Trump, the cumulative effect of his brazen strategy appears to be a tumble in the battleground states he needs to win in November. What was already a narrow path to the 270 Electoral College votes needed for victory is virtually indiscernible for Trump unless there’s a significant shakeup in the race between now and November 8. Rather than trying to make up ground by shifting attention back to issues like trade that have energized Trump backers and could appeal to new voters, the Republican campaign appears to be moving swiftly to make Bill Clinton’s past a centerpiece of the campaign.
Bill Clinton
BUILDING on Trump’s decision to bring three Bill Clinton accusers to last week’s presidential debate, the GOP nominee is expected to have the women appear with him on stage at rallies and do a series of television interviews, according to a person briefed on the plan but not authorized to discuss it publicly. Trump supporters are also confronting Hillary Clinton with the
Jessica Leeds arrives at her apartment building on October 12 in New York. Leeds was one of two women who told the New York Times that Republican presidential candidate Donald Trump touched her inappropriately. AP
accusations about her husband. Multiple Clinton rallies were interrupted this week by hecklers shouting “Bill Clinton is a rapist.” Earlier this week, right-wing radio host Alex Jones offered to pay $5,000 to anyone who can be heard on television shouting about the former president and wearing a “Bill Clinton rape” T-shirt. Bill Clinton never faced any criminal charges over the allegations, and a lawsuit over an alleged rape was dismissed. He did settle a lawsuit with one of the women who claimed harassment.
‘Go nuclear’
THE Trump campaign’s hope is to showcase the decades-old accusations to young voters, particularly
women, who may not have been old enough to remember the controversies that dogged the Clintons in the 1990s. And if the campaign can’t get them to vote for Trump, the person briefed on the plans said the goal is to convince young voters to stay home and depress turnout, which would likely hurt Democrats. Former Trump senior adviser Michael Caputo said the businessman’s only way to win is to “go nuclear” on the Clintons. “There’s no way Trump can do anything positive to earn back women,” Caputo said. “The only way he can stave off the bleeding is to drag them into parity.” But it’s unclear whether Trump’s strategy is even aimed at winning
the election at this point. Increasingly, Trump’s campaign feels like an opportunity for longtime Clinton opponents to air decade’s worth of grievances about the Democratic power couple on the biggest stage in American politics.
Deep divisions
TRUMP confidante and informal adviser Roger Stone has long been encouraging Trump to make Bill Clinton’s alleged assaults and the way his wife treated those women a centerpiece of the campaign. Steve Bannon, the Trump campaign’s chief executive, ran Breitbart News, a right-wing web site that eagerly promotes an endless string of conspiracy theories about the Clintons.
Hillary Clinton, who is on pace to become America’s first female president if her lead holds, has tried to stay above the fray in recent days. She is yet to respond d irect ly to Tr ump’s decision to resurrect accusations about her husband. And during a pair of rallies on Wednesday in Colorado and Nevada, Clinton appeared to be looking toward how to heal the country’s deep divisions if she’s elected president, pledging she would be a champion both for her supporters and those who don’t vote for her. “I know how important it is that we stay focused on the concerns that people have, not on the demagoguery and distraction,” she said. AP
Rebel advances in central Syria set back by infighting 2 Sydney teens charged with planning IS attack B
EIRUT—For more than a month, insurgents fighting President Bashar al-Assad’s forces had been on the march in central Syria, getting within a few miles of the fourth-largest city of Hama. Many in the opposition hoped they would cut a main government supply line to Aleppo and ease the pressure on the rebels there. But the ambitious campaign has been severely hampered by the rebels themselves, mostly due to infighting that broke out last week. It’s a recurring theme of opposition discord and rivalry that Assad has exploited throughout Syria’s fiveyear-old civil war. The five-week offensive, which saw insurgents break government defenses and capture more than two dozen villages and towns, was spearheaded by the Salafi-jihadi extremist Jund al-Aqsa group. The advance so alarmed Syria’s army command that it eventually rushed one of Assad’s most trusted and prominent officers, Col. Suheil al-Hassan, and his elite unit to defend the strategic region.
Upside down
THE Hama region, which has a religiously mixed population, is an intersection between central and northern Syria and the Mediterranean coast. The rebels hoped
30%
The area regained by President Bashar al-Assad’s forces after three days of repelling insurgents in central Syria their blitz would reduce pressure on the northern city of Aleppo, which has been under blistering Syrian and Russian air attack. The key for the opposition was to cut government supply lines between Aleppo and Assad’s strongholds in Damascus and the coastal region. That did not happen. On October 7 heavy fighting broke out in the nearby Idlib province between Jund al-Aqsa and the powerful, ultraconservative group Ahrar al-Sham. That group blamed the other for assassinating several of its local commanders. Both groups then withdrew from battling government troops, allowing the army to launch a counteroffensive and regain control of 14 villages and towns since the weekend. The infighting “turned the situation upside down,” said Turkeybased opposition activist Ahmad al-Ahmad, adding that government
forces within three days regained 30 percent of the ground they lost in a month.
Many goals
THE fighting eased after the alQaeda-linked Fateh al-Sham Front said Jund al-Aqsa will be folded under its command—a move that will make the front much more powerful. Sporadic skirmishes continue, but the fighting has effectively wrecked both the rebel offensive and any possible rescue of Aleppo. Such disunity and rivalry has plagued opposition and armed rebel groups in Syria from the beginning. Turf wars and internal power struggles have often impeded rebel advances, allowing government forces to take advantage and gain territory. Since late August, rebels have captured areas in Hama province close to Idlib province, which is near the border with Turkey and is the biggest insurgent stronghold in Syria. “We have many goals, and one of them is to cut the regime’s road leading to Aleppo,” a commander with Jund al-Aqsa in Hama said last week. The commander, who goes by the name of Lt. Col. Karmo, did not elaborate.
Safety valve
ON Tuesday the same commander said that while his men had not with-
drawn, Ahrar al-Sham had pulled its fighters from front-line villages in Hama province, helping Assad’s troops regain control of much of what they lost in the past five weeks. But al-Ahmad, the opposition activist, said both groups had abandoned their positions on the front lines in Hama. Two Ahrar al-Sham officials did not respond to questions about the events. A Syrian cabinet minister, Ali Haidar, told The Associated Press in Damascus on Wednesday that Hama was the “safety valve which the gunmen tried to open to alleviate pressure on Aleppo.” He said the rebels also aimed to open parallel fronts to divert government resources.
Main disagreements
AN opposition activist from Hama province who closely monitors the situation and has contacts with various factions said there were disagreements even before the fighting broke out between Jund al-Aqsa and Ahrar al-Sham. One of the main disagreements that slowed the Hama offensive was how to run the city once it fell to the insurgents. Many in Hama feared that Jund al-Aqsa’s extremist ideology would be implemented, and they wanted only gunmen from the city to be in charge of security, the activist said. AP
C
ANBERR A , Australia—Two 16-year-old Australian boys arrested in Sydney after each bought a knife were charged on Thursday with planning a terrorist attack on behalf of the extremist Islamic State (IS) group, the police said. The two were arrested by the federal-state Joint Counter-Terrorism Team in the western suburb of Bankstown on Wednesday, New South Wales state Deputy Police Commissioner Catherine Burn said, as Australia marked the 14th anniversary of extremist bombings in Indonesia that killed 202, including 88 Australians. Burn said the police had been concerned about the pair for some time and that the boys had potentially been radicalized by peers. The pair had bought “two bayonettype knives” from a Bankstown gun shop then caught a bus to the street near a Muslim prayer hall where they were arrested, Burn said. Police did not know their intended target, but an attack was imminent, she said. The boys were questioned by police overnight and were charged early Thursday with preparing to commit a terrorist act and with membership of a terrorist organization, namely, the Islamic State group. They faced a potential life sentence if convicted of the planning charge and 10 years for being an IS group member.
The pair were denied bail when they appeared in the Parramatta Children’s Court. They did not enter pleas and will remain in custody until their next court appearance on December 7. State police headquarters in western Sydney was renamed the Curtis Cheng Center two weeks ago in honor of a civilian employee who was fatally shot as he left the building a year ago by a 15-year-old extremist. “The events of yesterday are extremely sobering for us, particularly given the age of these individuals,” Australian Federal Police Deputy Commissioner Michael Phelan told reporters. “The threat is real, it’s enduring, it’s still happening and the age of these two individuals is extremely concerning to us,” he added. Federal Justice Minister Michael Keenan said IS recruiters were targeting vulnerable people at younger ages. “The fact they were 16 is...an enormous concern to the government and re-enforces the fact we are in a very difficult operating environment where people are radicalizing younger and younger and also radicalizing faster and faster,” Keenan told reporters. Police say the arrests marked the 11th imminent extremist attack that they have prevented in Australia since the terror threat was increased in September 2014. There have been four extremist attacks in Australia in that time. AP
The World BusinessMirror
www.businessmirror.com.ph
Friday, October 14, 2016
A9
Immigrants to the U.S. are now more likely to come from Asia than from Mexico or Latin America
The evolving face of US immigration
R
ALEIGH, North Carolina— When Manasi Gopala immigrated to America, she finally got the chance to row crew. As a child in India, she had dreamed of the sport from watching Olympic telecasts. Now, twice a week, she pulls a pair of oars as her scull glides along tree-lined Lake Wheeler, far from her birthplace of Bangalore. Gopala is among throngs of educated Indians who have moved in recent years to North Carolina’s techladen Research Triangle and other areas across America. A 39-year-old software developer, she became a US citizen three years ago. “America had given me the opportunity to pursue my own life,” she said. Increasingly, the face of US immigration resembles Gopala. For all of Donald Trump’s talk of building a border wall and deporting 11 million unauthorized immigrants who are mainly Hispanic—and for all of the enduring contention over illegal immigration—immigrants to the US are now more likely to come from Asia than from Mexico or Latin America.
Well-educated and entrepreneurial
And compared with Americans overall, immigrants today are disproportionately well-educated and entrepreneurial. They are transforming the nation in ways largely ignored by the political jousting over how immigration is affecting America’s culture, economy and national security. As of three years ago, Census figures show, India and China eclipsed
down on illegal immigration. “This is the best of America,” he said, sharing the stage with a lifesized statue of Mahatma Gandhi. “This is the best of India. We work together. We learn together. We can pray together. We love family values together.”
$100,000
Improved sentiment toward immigrants
The earnings of a median Indian immigrant household exceed this amount—more than twice the US median
Mexico as the top sources of US immigrants, whether authorized or not. In 2013, 147,000 Chinese immigrants and 129,000 Indians came to the US, compared with 125,000 Mexicans. Most of the Asian immigrants arrived in the United States legally—through work, student or family visas. Immigrants are also more likely now to be US citizens. Nearly half of immigrants over the age of 25—18 million people—are naturalized citizens, compared with just 30 percent back in 2000, according to Census figures. Simultaneously, more Mexicans without documentation are returning home. The number of Mexicans in the United States illegally tumbled nearly 8 percent in the past six years to 5.85 million, the Pew Research Center found. Border Patrol apprehensions, one gauge of illegal crossings, last year reached their lowest point since 1971. With the share of US residents born abroad at its highest level in a century, immigrants increasingly defy the stereotypes that tend to shape conversations on
Manasi Gopala, a software developer in North Carolina’s Research Triangle, works from home in Cary, North Carolina. Gopala left her birthplace of Bangalore, India, in 2002, even as many Americans lamented the outsourcing of tech jobs to that city. She became a citizen in 2013 and bought a suburban home a few months ago. AP/Gerry Broome
the issue. Consider: About 40 percent of Indian immigrants hold a graduate degree. Fewer than 12 percent of native-born Americans do. And earnings for a median Indian immigrant household exceed $100,000—more than twice the US median.
Reflect extremes of economic spectrum
The result of this recent influx is that America’s 40-million-plus immigrants more and more reflect the extremes of America’s economic spectrum, from superrich tech titans to poor agriculture workers. The changes flash into view on a visit to the political swing state
of North Carolina. The proportion of immigrants in the state’s population has quadrupled from 1990 to nearly 8 percent. Similar trends have emerged in Georgia, Colorado, Oregon and Washington. None of these states approaches the more than 20-percent share in California and New York, where educated Chinese immigrants are largely concentrated. Yet, the transformations are evident in a drive across the dense highways that connect North Carolina’s Research Triangle. Indian immigrants have put their distinctive stamp on this area. Their rising numbers have established a broad community that has made it easier for new arrivals to
integrate than it was for prior generations. Asked how they have been received in the community, about a dozen Asian immigrants said they have generally been warmly accepted despite the national furor over immigration. “Now, you come from India, you don’t really have to know anything else,” said Pranav Patel, a 57-yearold software developer. “The system is here to help you adjust. There are no real hardships.” When the Hindu Society of North Carolina celebrated India’s independence day in August, one prominent outsider did show up: Gov. Pat McCrory, a Republican in a heated reelection campaign that has been fueled in part by a crack-
Americans’ sentiments about immigrants have largely hardened along racial, political and demographic lines. Overall feelings toward immigrant workers remain negative. But sentiment has improved since 2006, possibly a sign that the growth of educated immigrants has begun to reshape attitudes, according to a Pew survey released this month. Two-thirds of Republicans and 54 percent of whites said they think immigration harms US workers. But a majority of Democrats, Hispanics and the college-educated said they felt immigrants made society better off. By comparison, almost all economists view immigrants as helpful— even essential—for the nation’s continued prosperity. Because of the aging US population causing more retirements, most economists say immigrants are needed so that the workforce increases to sustain overall growth. The anti-immigrant rhetoric has concerned Gopala. She feels fortunate to no longer be among the millions of foreigners still applying for US residency. “I got very lucky that my green card was processed when immigration wasn’t a bad word,” Gopala said. “America had given me the opportunity to pursue my own life. On the day you’re born in India, your life is written. But here, that is not true.” AP
Getting humans to Mars Portugal open to Chinese venture toObama: require Nasa, private firms effort in Azores as US presence dwindles W
P
ortugal is welcoming non-military Chinese engagement in the Azores to help develop the logistical and research potential of the mid-Atlantic island chain. The growing Chinese influence on the archipelago is worrying Washington as the US reduces its military presence at the Lajes Field air base on the island of Terceira. A series of senior Chinese officials—including President Xi Jinping and Premier Li Keqiang—have used the island as a stopover on trips to Latin America, as China seeks to expand its footprint overseas and safeguard economic interests. In a Bloomberg Television interview in Macau on Tuesday, Portuguese Prime Minister Antonio Costa said that while his nation—a North Atlantic Treaty Organization (Nato) member—would continue to honor its defense pact with the US, he also wants to see better use of the Azores. The islands are “very important both logistically in the Atlantic Ocean but also in terms of technology and research, in the field of climate change and deep water research.” “The military use of the American base at this moment is not on the table, what is on the table is for EU institutes, American institutes and Chinese institutes to reuse infrastructure for scientific research purposes,” said Costa, 55. “It’d be a huge waste not to use that infrastructure. We need to reuse that infrastructure, and if you are not going to use it for the military purpose, why not scientific research?”
Portugal’S Prime Minister Antonio Costa Bloomberg News
Lajes Field—located 3,690 kilometers east of New York and about 1,000 miles west of Lisbon—had served as a key link between the US and its allies in the Nato and the Middle East. During the Cold War, the base played a crucial role in tracking Soviet guided missiles and ballistic missile submarines in the region. It also supported US airlift missions to Israel in the 1970s. The US planned to cut its military presence at Lajes to under 170 active duty personnel after the global economic crisis, in a move that is hurting the local economy. The downscaling is also seen by Pentagon hawks as strategically precarious. In a September 20 letter to US Secretary of Defense Ashton Carter, Devin Nunes, the Republican chairman of the House Permanent Select Committee on Intelligence, sounded a warning on China’s ambitions in the mid-Atlantic.
“China has spread its influence through similar infrastructure investments in Djibouti, Sri Lanka, and elsewhere around the globe,” Nunes wrote. “It is now using the same tactics to establish a foothold in the Azores which, if successful, will be used for a logistics and intelligence hub that could ultimately be expanded for other military purposes, adjacent to critical US military facilities.”
China’s reach
China has dramatically expanded its global reach in recent years as it seeks energy supplies and raw materials to fuel economic growth. Chinese businesses eager to diversify their export markets have also fanned out looking for new customers in places like Africa, Latin American and the Middle East. Terceira, the island that hosts the Lajes base, appears to be part
of that strategy. Premier Li made a two-day “technical stop” there on his return from Cuba two weeks ago, and President Xi stopped there in July 2014 on the way back from a trip to South America. In June, China’s top maritime official, State Oceanic Administration chief Wang Hong, visited the Azores. Neither Beijing nor Lisbon has elaborated on the apparent Chinese interest on the island. After meeting Barack Obama during a Nato Summit in Warsaw in July, Costa said he handed the US president a summary of work done toward turning the Azores into a research platform. The Portuguese government is also working to establish an international science research center on the island chain. In Tuesday’s interview, Costa said of the Azores: “We’re open to cooperation with all partners, including China, to work in deepwater technology and research,” especially in the fields of paleontology and volcanology.
Portugal investment
While US influence there dwindles, China has invested heavily in Portugal. The Western European nation has become China’s fifthbiggest investment destination in Europe, and, according to official figures, total Chinese investment reached more than $7 billion by the end of last year. Costa said that his country feels very comfortable with the “positive” Chinese investment, and would like to strengthen the partnership. Bloomberg News
ASHINGTON—President Barack Obama hammered home his goal to send humans to Mars by the 2030s, while acknowledging that accomplishing it would require public and private collaboration. Obama first said in 2010 he wanted to send astronauts “to orbit Mars and return them safely to Earth” by the mid-2030s with “a landing on Mars” to follow. In an opinion article on Tuesday on CNN.com, Obama said the ultimate ambition was not only to send humans to Mars and bring them back, but to “remain there for an extended time.” “Getting to Mars will require continued cooperation between government and private innovators, and we’re already well on our way,” he said. Obama’s article comes two weeks after SpaceX chief executive Elon Musk laid out an ambitious plan to eventually send 1 million people to colonize the Red Planet and turn humans into a multiplanetary species within 40 to 100 years. In a speech at the International Astronautical Congress in Mexico, Musk similarly called for a publicprivate partnership (PPP). The National Aeronautics and Space Administration (Nasa) is working with Hawthorne, Californiabased SpaceX and aerospace giant Boeing Co. to develop crew capsules to take astronauts to the International Space Station. Nasa relies on SpaceX and aerospace firm Orbital ATK to deliver supplies and cargo to the space station. This week Obama will speak at the White House Frontiers conference
in Pittsburgh, an event that will focus on innovations in science and technology, including a future Mars mission. Executives from companies such as SpaceX, Virgin Galactic and moon mining firm Moon Express are also set to speak at the conference. “It just underlines the theme that’s run through the Obama administration, which is encouraging partnerships with the private sector, providing additional opportunities for work and, when appropriate, doing business in a slightly different way,” said John Logsdon, professor emeritus of the Space Policy Institute at George Washington University. “It’s mainly about leaving a legacy,” he said. Analysts said a PPP recognizes the reality of the space business today, as well as financial limitations. “On the commercial side, there are a lot of innovative ideas,” said Bill Ostrove, aerospace and defense analyst at Forecast International. “But they need that backing from the government both in the knowhow…[and] the government ’s financial resources.” Smaller space start-ups that don’t usually work with the government could benefit most from Obama’s goal, said Eric Stallmer, president of the Commercial Spaceflight Federation trade group. “I think it gives a level of excitement to a variety of different players,” he said. “You don’t know who the next SpaceX could be, or the next Blue Origin,” referring to the space tourism company started by Amazon.com founder Jeff Bezos.
Los Angeles Times/TNS
A10 Friday, October 14, 2016 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
Are electric cars just a new hype?
W
hen German engineer Karl Benz came out with the Benz Patent-Motorwagen in 1886, it forever revolutionized the way we travel and move goods. Advances in technology have made cars today a far cry from the first working automobile. However, the fundamentals remain largely unchanged. All cars made over the past 130 years have these basic parts: an internal combustion engine, a transmission, four wheels and brakes, and run on fossil fuel.
The only attempt at running an automobile using an alternative fuel source that has been successful is the introduction of electrically powered vehicles. Electric vehicles (EVs), as they are formally known, are vehicles that are powered by electricity sourced from rechargeable batteries. Some EVs, known as hybrids, alternately use both fossil fuels and electric batteries as power sources. Compared to conventional engines, electric vehicles do not emit smoke, which causes pollution, and are quieter, thus reducing noise pollution. Concerns over the available global oil reserves and air pollution have become the driving force for the further development and introduction of EVs. With the world officially passing the 400-ppm (parts per minute) threshold on carbon-dioxide emissions in the atmosphere, many countries have taken steps to fast-track the introduction of electric vehicles. Just this week, the German Bundesrat (upper house) passed a resolution that calls for banning the sale of cars that run on gasoline by the year 2030. In the Philippines EV advocates and manufacturers have been calling for the government to implement standards for the introduction of EVs, while the government has been pushing to phase out the jeepney in favor of “electric jeepneys”. While EVs are heavily touted as the embodiment of technological advancements in transportation, are they really the future of automobiles and transportation? Issues such as air and noise pollution, as well as fossil-fuel supply, are pressing issues that need to be addressed. But we must also look at the current situation, as well as its implementation for countries like the Philippines. Unlike regular automobiles, electric cars rely on heavy financial subsidies to entice customers to buy them. Compared to an ordinary sedan, an EV can cost up to double the price. A certain hybrid sedan sold in the Philippines costs almost 75 percent more than a regular gasolinepowered sedan. There is also the factor of electricity costs and how it is generated. EVs require charging stations to recharge their batteries. Having one of the most expensive electricity rates in Asia makes owning EVs somewhat impractical at the moment. Since most power in the country are generated by burning coal and fossil fuels, it negates some of the environment-friendly benefits of EVs. Despite all of the press releases highlighting the technological prowess of EVs, many glaring safety and performance issues have been reported. An electric jeepney on Katipunan Avenue once caught fire, while EV maker Tesla has reported several significant issues on its self-driving “autopilot” feature and batteries. Until EVs can be made more efficient and affordable, we should not buy the latest hype. Since 2005
BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder
Publisher Editor in Chief Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors
T. Anthony C. Cabangon Jun B. Vallecera Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos
Online Editor Social Media Editor
Ruben M. Cruz Jr. Angel R. Calso
Creative Director Chief Photographer
Eduardo A. Davad Nonilon G. Reyes
Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager
Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro
BusinessMirror is published daily by the Philippine Business Daily Mirror
HOM
Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.
www.businessmirror.com.ph
Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF
International debate symposium James Jimenez
spox
W
hen the Commission on Elections began working on putting together the #PiliPinasDebates2016 debate series, by far the most momentous thing we attributed to it was that it was the first time in more than two decades that the commission had taken such an active part in presidential debates of such scope. Little did we know, or maybe even imagine, that the debates we were working on would attract so much international attention. By the time this sees print, I will be on my way to the States to participate in an international debate symposium, organized by the American Commission on Presidential Debates and the National Democratic Institute, at the University of Nevada, Las Vegas. I will be part of a group composed of debate organizers—members of the Debates International network—from around the world. The group will be given the opportunity to attend the last presidential debate between the Republican and the Democratic nominees, scheduled for the 19th of October 2016. Apart from that, the agenda will include a session on International Lessons and Innovations, in which
various participants will be invited to share their latest debate experiences and lessons, as well as discuss common challenges and successful approaches on such topics as: forming a permanent debate sponsoring organization; the impact of debates on candidates’ election prospects; convincing candidates to take part in debates through public advocacy campaigns or laws; and preparing for possible legal challenges to debates, among other issues. The Philippines is fortunate to have, with #PiliPinasDebates2016, checked off most of the items on that list. I will be presenting, among other things, Senate Bill 1797, which was authored by my late great hero,
I will be presenting, among other things, Senate Bill 1797, which was authored by my late great hero, Sen. Miriam Defensor Santiago. The bill seeks to establish a Presidential Debate Commission, which will schedule debates for presidential and vice-presidential candidates; submit reports evaluating the debates scheduled by the commission itself and by other agencies, organizations, or the mass media; and formulate the guidelines for the adoption of the best format for the debates.
Sen. Miriam Defensor Santiago. The bill seeks to establish a Presidential Debate Commission, which will schedule debates for presidential and vice-presidential candidates; submit reports evaluating the debates scheduled by the commission itself and by other agencies, organizations, or the mass media; and formulate the guidelines for the adoption of the best format for the debates. I will also be presenting the Philippine experience with social-media integration in the staging of the debates, which was recently cited by an independent international study. And, of course, in terms of challenges, I imagine I will be
talking about the political advertising that was shown…and shown… and shown during the #PiliPinasDebates2016. The symposium also represents an excellent opportunity to learn about how other countries deal with the challenge of candidate participation. I suspect that there will be a lot of common ground with other countries in that respect, as I cannot imagine any electoral-management body actually having the power to compel attendance. Still, I suppose one must leave room to be pleasantly surprised. At the end of the symposium, I am particularly looking forward to meeting regional peers to discuss their plans—and ours—for upcoming debates. It will be the perfect opportunity to explore possible collaborations and mutual support. All told, I am extremely hopeful that my participation in this symposium will be of some help in finally institutionalizing formal debates as permanent and vibrant part of Philippine political tradition. And the fact that I’ll actually be carrying on even the most miniscule part of the work of Inday Miriam is just icing on the cake. James Arthur B. Jimenez is director of the Commission on Elections’s Education and Information Department.
Opinion BusinessMirror
opinion@businessmirror.com.ph
Fundamentals and expectations
Friday, October 14, 2016 A11
Unwanted prayers Tito Genova Valiente
Alvin P. Ang
EAGLE WATCH
A
fellow columnist, Henry Ong, responded to a question in his column (Money Matters, PDI, October 12, 2016) on the President and the stock market. I would like to summarize his points before giving my view. He recognized that political noises affect the market, but not necessarily in a direct manner. He points out the people invests in the stock market based on expectations—“that share prices will increase in the long term” as business expands. However, expectations are affected by uncertainties. These uncertainties lead to what is known as equity risk premium. He went on to explain that equity, risk premium is composed of political risk, capital risk and impact risk. Political risk refers to government actions. Capital risk refers to the business environment beyond governance. Impact risk refers to business implications due to changes in policy. Henry summarizes that political risk outweighs the other two when the economy is weak.
I tend to agree with Henry that the market is facing various kinds of risks at the moment. As of this writing, the Philippine Stock Exchange index (PSEi) is currently down 1.5 percent. This is happening amid the latest round of pronouncements of the President surrounding foreign policy. Is political risk weighing down on the market? As Henry pointed out, the Philippine economy is currently at its strongest point in decades. The fundamentals or foundations of the economy through growth, employment and prices are reflecting better figures. GDP growth will likely remain above 6 percent this year and next. Unemployment is at its lowest in decades, at 6 percent, and inflation and interest rates also reflecting decadeslow figures. The budget deficit is manageable at below 2 percent of GDP, while the current-account surplus is 2.5 percent of GDP and savingsto-GDP ratio remains above 20 percent. Thus, fundamentally, there is momentum for growth to continue. Besides, the government has already committed to sustain this by continuing the macroeconomic policies in the last six years and ensuring public spending by increasing the infrastructure budget to 5 percent of GDP. Therefore, it is not political risk that is challenging the market. So where is the weakness coming from? Two weeks ago we wrote that the PSEi is one of the most expensive in Asia at its prices then of about 22x Price-earnings ratio. This is way above its average of 16.5x. The market is expensive to begin with. Second, compared to its regional peers, the PSEi at 7,400 actually is not the worst performer in Southeast Asia for the year. Compared to a year ago, it is still up 5.8 percent. This is much better than Thailand’s 1.4 percent and Malaysia’s -2.5 percent. Indonesia and Vietnam have much higher returns of 16.2 percent and 15.8 percent, respectively. Third, the capital risk that Henry was talking about has been taking a significant impact on the market. In here, there are a number of factors at play. The first one is that the US
Fed may no longer delay increasing interest rates by another 25 to 50 basis points by December. According to Bloomberg, a new ruling by the US Securities and Exchange Commission requires that prime money-market funds must have enough liquidity buffers. These funds are short-term source of funding among US banks and firms. With this ruling, it will be costly to keep buffers as these cannot earn, and so funds are moving to US Treasuries. This has already increased interbank borrowing rates in the US. This might be causing funds to move back to the US in anticipation of the full implementation of the ruling this October 14. Another factor is the rising oil prices, which breached $50 per barrel after hitting lows of close to $20 early this year. Higher oil prices could push inflation and interest rates higher. The combination of these external factors, indeed, is affecting the local market today. Politics seem to be more of a contributory rather than the main factor for its weakness. Movement of funds to the US and oil-price hikes will continue to be drags to the regional markets. The Philippine market is no excuse. The external perception has increased the equity risk premium requiring listed firms to perform better in the next years. Government is also required to factor in external events in improving and sustaining the fundamentals. Much of the fundamental strength of the country have been generated by foreign funds through overseas Filipino workers remittances, business-process outsourcing and tourism receipts. The contribution of foreign direct investments is increasing, but is lower compared to other Asean countries. Thus, the domestic economy must be the main engine of growth. Lowering income taxes and increasing government spending is the main approach to sustain the fundamentals. Their full effect will take time to be felt. Thus, in this environment, it is better to lengthen the perspective from short to long term, and from focusing on expectations to fundamentals.
annotations
O
, Lord, O Spirit of the Land, you taught us to pray. But are your prayers necessary? In the tale of the two tramps, Estragon and Vladimir, you were called the God who does not hear, the God who does not speak. But I do not believe in them and their view of the absurdity of life. Life is too short to be absurd, but it is also too short to be sweet. I believe you do listen and you do speak but, as with any elements of the universe, you count on what is urgent and importunate. Not all sorrows deserve your glorious scrutiny. Besides, there’s the Judgment Day. Do you promise that the ground will break open and in the yawning chasm all corrupt officials will be swallowed? Somewhere in your many old books, you said yes. There is no need for these bad people to be scared sh_tless now. We want them the surprise of their life. What happens to unanswered prayers? They are not said, because they are not wanted. I recall you gave us the arts with which we cope with the vagaries and impulses of life. Indeed, why pray for the world to come to terms with the multitude of races, when there are the sweet moanings of Billie Holiday singing of the strange fruit, of a dear brother hanged by someone who calls himself a brother, as well, just because of a difference in pigmentation. When homes are robbed and young women are raped, then we
do not need to pray. There is Sydney Bechet (I believe you created him, as well) with his Petite Fleur. I have hidden/Better than anywhere else/In the garden of my heart/A little flower. When all women are mutilated and mangled by men’s words and actions, we have them in our memories in the jardin de mon coeur. The heart, after all, is the keeper of prayers. W hy pray when t hey a re nwanted? Lord, Spirit of the Land, you listen to poems. They are prayers, more beautiful than any of the prayers abounding.
Shepherds and leaders Siegfred Bueno Mison, Esq.
THE PATRIOT
D
uring the presentation of a very comprehensive employee-engagement survey in our company, the presenter emphasized that most successful companies are customercentric to the point of “spoiling” them to maximize satisfaction. He said companies generally strive to satisfy their customers to boost sales, generate revenue and improve customer loyalty, among others. I then recalled what Virgin Airlines owner Sir Richard Branson once said, “If you look after your staff, they will look after your customers. It’s that simple.” So I had to ask the presenter, “Given budgetary constraints, which should the company prioritize, its customers or its employees?” I believe a leader must have a heart moved with compassion for his flock. He must learn to put the welfare of his flock first over his own. He must seek what is best for his people and not just for himself. In the words of US Gen. George S. Patton Jr., “The soldier is the Army. No army is better than its soldiers.” I still say that no matter how much money we have, no matter the state of the art technology we put in place, no matter how beautiful our buildings will look like, the success or failure of any organization will depend on the people who compose the organization. As it were in my former organizations, the Philippine Army, Malcolm Law, University of the East and the Bureau of Immigration (BI), as it is in my current organization, Philippine Airlines, its people should
be considered as its greatest asset. When I was in the Army, we submitted a Daily Operations Report (DOR) to higher headquarters to indicate the disposition of troops, intelligence gathered, if any, status of supplies, etc. But, perhaps, the last and most important part of this DOR is the status of morale of our troops. Morale dictates the level of energy and enthusiasm of a group. A work force with low morale will be lethargic, complacent and, worse, disloyal. But a work force with high morale will be confident, innovative and, most of all, loyal to the organization it serves. President Duterte is a naturally gifted morale booster. He has visited quite a number of police and military installations, the most that any Philippine President has done in
When people are disappearing faster than the forests, then listen to the “Epitaph” by Juan Gelman: “A bird once lived in me/A flower traveled in my blood/My heart was once a violin.” Then go with the poet as he goes further with his last words: “Here lies a bird/Here lies a flower/Here lies a violin.” Then there is Saint Augustine when arrogance and hubris flood the land. He once said: “Pride makes devils out of angels; humility makes angels out of men.” That is, by God, a prayer worth a thousand votive candle. No need to pray to Augustine. No need to summon the saints when we feel we are confronted by the Devil himself, in the form of massively popular authorities. Some saints believe no prayers
are left unanswered. Even Truman Capote believed in that, perhaps, to the terror of his beautiful friends. But I firmly believe in unwanted prayers. The absence of God notwithstanding, the selection of saints a near anomaly, prayers are not always needed and thus, prayers, deep thoughts into the soul...are never answered. At night, though, before you sleep, when you step out and gaze at the stars plastered dead on the heavens, when you feel there are less of them than the number of men, women and children killed each day, then I urge you to pray, for that is a prayer most dreadfully, most fuc _ly wanted.
his or her first 100 days in office. His mere appearance in these camps has boosted the morale of the police and the military. Of course, it helps when combat pay and the combat incentive pay are also significantly raised for the first time in years! In the BI, as in most government agencies, personnel morale is generally boosted whenever some personnel are given awards, recognition and incentives. What was unique in the BI, however, can be found in three areas. First, dependents of BI employees, for the first time ever, could now avail themselves of scholarship grants in more than 20 participating schools nationwide. Much credit goes to Atty. Cris Villalobos, who conceptualized this Handog Edukasyon program in 2015 to help employees put their children (and even siblings) to good schools. Second, a Collective Negotiating Agreement (CNA) was signed, where employees were given a CNA incentive in the amount of P24,000 per employee and the employees’ association were given greater participation in policy-making. Credit goes to Atty. Greg Sadiasa, the president of Buklod, and Atty. Norman Tansingco. Third, and perhaps the most significant morale booster, is a Merit Selection Plan (MSP), where people were hired and promoted, principally if not exclusively, on merit. Gone were the days when a phone call or a letter endorsement from an influential person was the only ticket for an entry to the bureau. Approved by the Civil Service Commission, the proper implementation of the MSP resulted in a work force coming from an evenly distributed
social and geographical cross section of society and universities, more than 10 percent of whom either graduated with Latin honors or some academic distinctions. I think by having a fair and balanced approach in treating your employees, they will have higher morale to take care of your customers. By boosting the morale of the police and the soldier (as well as other government employees), President Duterte seems confident that the Philippine National Police and the Armed Forces of the Philippines will take care of the Filipino people. In the words of Sir Thomas More: “Why do you suppose they made you king in the first place?’ I ask him. ‘Not for your benefit, but for theirs.’ They meant you to devote your energies to making their lives more comfortable, and protecting them from injustice. So your job is to see that they’re all right, not that you are—just as a shepherd’s job, strictly speaking, is to feed his sheep, not himself.” We need shepherds, not kings, particularly in government. So, should companies focus their budgets on projects related to improving customer satisfaction or on programs related to employee welfare? So, should our government focus its efforts on attracting “customers”, as in investors, or prioritize projects, which will improve the lives of public servants and of the Filipino people? Balancing priorities is a skill not taught in school. Judging from his recent actions, President Duterte appears to know his priorities.
E-mail: titovaliente@yahoo.com.
For questions and comments, e-mail me at sbmison@gmail.com.
Hearts filled with love as ICanServe celebrates journeys of breast-cancer survival Ailene Co
Women Stepping UP
T
his October, be the “breast friend” to the countless number of women who have fought and survived breast cancer. According to the Philippine Society of Medical Oncology, the Philippines has the highest incidence rate of breast cancer in Asia and is among the top 10 countries in the world with reported cases of the disease. Accordingly, it is estimated that one out of every 13 Filipino women is expected to develop breast cancer in her lifetime.
Despite these statistical figures, many people are still not seeking the treatment they need, nor are they aware of the benefits of early detection. This is what ICanServe hopes to address. Since it was established in 1999, the ICanServe Foundation has become one of the biggest and most influential foundations for breast cancer in the Philippines. A community of passionate cancer survivors, ICanServe has made its mission to help and support women with breast cancer. It advocates early detection breast exams and initiates community-based programs that extend medical support and empower women through education and information.
Countless breast-cancer survivors and their breast friends have partnered with the ICanServe Foundation to talk about their own journeys of triumph and survival. They speak about their experiences, because they hope to inspire more women to get themselves checked. Most important, should these women find themselves diagnosed with breast cancer, they see themselves as empowered women with inconceivable strength. There is beauty in hope. There is beauty in faith. For Frances Yu, through her own journey of survival, she has learned the blessing of suffering: “You cannot avoid suffering—it’s your choice
to suffer with God, or without God. Suffering shouldn’t be wasted. It’s something you can elevate, and transform into something transcendent. You can offer it up, and use it as a stepping stone to become a better person.” Amanda Luym and breast friend Cacay Moras-Server are proud to join the conversation in any way. “During treatment so much gets taken away from you: your physicality, your ability to even function properly, to move, your body won’t feel like your own. Try to live as well as you can, for as long as you can. Win. I saw cancer as a battle. And I won,” shares Amanda, encouraging other
women to fight and not lose hope. In the past decades, the ICanServe Foundation has made great progress in spreading awareness, but, indeed, there’s more to be done. Through the Fashion Can Serve fundraising event, ICanServe hopes to raise support for its flagship program, Ating Dibdibin, which was first established in 2007. Ailene Co is a member of Business and Professional Women (BPW) Makati, a member of BPW International and an organization aligned with the UN Women Empowerment Principles. She is a seasoned marketing professional with close to two decades of experience in PR and marketing. She is also the cofounder of online magazine, www. trend-hotspot.com.
2nd Front Page BusinessMirror
A12
Friday, October 14, 2016
www.businessmirror.com.ph
$3-billion ODAs imperiled C.A. ASKED TO END by Duterte diatribe–Drilon GLOBE ATTEMPT TO
O
By Butch Fernandez
@butchfBM
ver $3 billion in official development assistance (ODA) grants from Western countries are imperiled by President Duterte’s continuing tirades against major foreign donors, including the United States and the European Union (EU). S en ate P resident P ro Tempore Franklin M. Drilon voiced this concern on Wednesday during the Commission on Appointment’s hearing on the confirmation of Finance Secretary Carlos G.Dominguez III. While affirming support for the Duterte administration’s assertion of an independent foreign policy, Drilon voiced grow ing apprehension over the President’s penchant for making “ insulting” remarks against leaders of Western countries supporting the Philippines. “We should maintain an independent foreign policy. But the question that is
in everybody’s mind is, in maintaining an independent foreign policy, do we have to displease, insult our allies?” Drilon asked Dominguez. “Here, we are talking about $3-billion ODA. If our friends are being insulted daily, will this not put our $3-billion ODA in jeopardy?” The senator added: “Are we not putting in danger our $3-billion ODA by displeasing our allies?” Drilon affirmed there was no question about maintaining an independent foreign policy, noting this is an obligation on the part of the government under the Constitution. “But...in order to pursue
an independent foreign policy—which we support —do we have in the process displease our long-term allies and—no matter what you say—put in jeopardy the ODA?” I n re pl y, D om i n g ue z conc e d e s “there might be a school of thought that would say that it is not advisable to do that.” Asked by Drilon if he belongs to that school of thought, Dominguez said: “I am not the foreign affairs minister, but I would say that yes, there is some logic to what you’re saying.” The Finance secretary confirmed that total ODA grants from Western countries add up to $3 billion, broken down as follows: “from the US $1.2 billion, which included the $450 million from Millenium Development Challenge; from Australia, $567 million; the UN, $365 million; EU, $327 million. The total is $3 billion.” In turn, Drilon acknowledged that “we were able to put that on the record that at least the secretary of finance has some independent policy that he wants to pursue in his term.” But, he also added: “that is a cause for concern among the citizenry and I am glad that you have associated yourself with that concern. I will repeat, an independent foreign policy is a constitutional duty of the President.”
STOP PCC REVIEW By David Cagahastian
T
@davecaga
he Philippine Competition Commission (PCC) has asked the Court of Appeals (CA) to uphold its decision denying the writ of preliminary injunction prayed for by Globe Telecom to stop the commission from reviewing the P70-billion buyout deal involving Globe, PLDT and San Miguel Corp. In a comment to an omnibus motion filed by Globe on August 10 before the CA’s 12th Division, the PCC, through the Office of the Solicitor General, said the omnibus motion is an “ill-disguised” motion for reconsideration that has already been filed out of time. The PCC added in its comment that the omnibus motion is another attempt at forum shopping by Globe Telecom to resuscitate its bid to obtain a preliminary injunction against the PCC, similar to what was earlier granted to PLDT by the CA’s 12th Division. The comment of the PCC to the omnibus motion was filed on October 11 with the CA’s 6th Divition, as the PCC considers that division as still having the jurisdiction over the petition filed originally by Globe, but has since been consolidated with the petition filed by PLDT, and now pending before the 12th Division. In its comment, the PCC said the omnibus mo-
tion should be dismissed as another attempt by Globe Telecom to obtain a preliminary injunction after such prayer for a preliminary injunction had already been denied by the CA’s 6th Division in a decision dated July 15, 2016. However, upon motion by Globe Telecom before the same division, the CA consolidated on July 25 the petition filed by Globe with the petition filed by PLDT, which is pending before the 12th Division. The 12th Division, in a ruling released on August 30, after the consolidation of the two cases, granted PLDT’s prayer for a writ of preliminary injunction to stop PCC from reviewing the landmark deal pending the resolution of the case The PCC said the omnibus motion filed by Globe Telecom is an“ill-disguised”attempt to file a motion for reconsideration on the denial of its prayer for a writ of preliminary injunction, and the “malicious” filing of such motion before the 12th Division of the CA is yet another attempt at forum shopping, since the 6th Division still has jurisdiction over the petition filed by Globe despite the consolidation of the two cases. The PCC said that, since it has moved to reconsider the consolidation of the two cases, the 6th Division still has jurisdiction over the petition filed by Globe until the issue of the propriety of the consolidation of the two cases is finally decided by the courts.