BusinessMirror April 28, 2015

B C U. O

THE low-inflation envi-ronment and the increase in job generation are seen

to boost the country’s growth beginning in the first quarter, according to First Metro Invest-ment Corp.-University of Asia and the Pacific (FMIC-UA&P) Capital Markets Research. 

In its latest Market Call report, FMIC-UA&P Capital Markets Research said it may even go below 2 percent by July 2015. 

The latest job-generation estimate released by the Philippine Statistics Authority (PSA) in January, meanwhile, showed total employment increased to 37.5 million, from the 36.4 million recorded in January 2014. 

“Strong job creation over the past year continues to overshadow

THINK TANK SAYS LOW INFLATION, JOB SURGE, GOV’T SPENDING TO BOOST GROWTH

www.businessmirror.com.ph ■�TfridayNovember 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEK■�Tuesday, April 28, 2015 Vol. 10 No. 201

A broader look at today’s businessBusinessMirrorBusinessMirrorTHREETIME

ROTARY CLUB OF MANILA JOURNALISM AWARDEE2006, 2010, 2012U.N. MEDIA AWARD 2008

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JOURNALISM

MALAYSIA’S leader says South-east Asian countries will avoid direct confrontation with

China, but will push for a quick con-clusion to a binding code of conduct to govern behavior in the disputed waters of the South China Sea.

Prime Minister Najib Razak said on Monday that the 10-member Asean’s nonconfrontational approach to the dispute has been effective in keeping tensions at bay. He said at an Asean leaders’ summit that the bloc will pursue constructive engagement with China.

Najib indirectly rejected calls by the Philippines for Asean to stand up to China. Manila warned that Beijing was poised to take “de facto control” with its land reclamation in the area.

China, Taiwan and Asean members Malaysia, the Philippines, Vietnam and Brunei Darussalam have overlapping claims in the South China Sea. Najib said respect for international law must be the basis of rules of en-gagement and activities in the South China Sea, as tensions rise over the waters, hosting some of the busiest shipping lanes. Southeast Asian nations must ad-dress developments in the sea construc-tively, he said, without elaborating on incidents that have strained relations with China.

His comments came a day after the Philippines said the Asean needs to stand up to China on its reclamations in the South China Sea.

INSIDE

WHERE TO SPLURGE, WHERE TO SAVE

QUAKE RESCUERSSTRUGGLE TO REACHREMOTE NEPAL AREAS

Life Tuesday, April 28, 2015 D1

Life BusinessMirror

Life Editor: Gerard S. Ramos • [email protected]

DEAR Jesus, Your coming out of the tomb EAR Jesus, Your coming out of the tomb alive, transformed immortal...concerns alive, transformed immortal...concerns us, too, it concerns all human beings. us, too, it concerns all human beings.

Your resurrection is also mankind’s resurrection, Your resurrection is also mankind’s resurrection, because it marks mankind’s liberation from the oppression of sin. We do all our best not to the oppression of sin. We do all our best not to commit sins in our daily life. Amen.

Mankind’sresurrection

EXPLORING GOD’S WORD, FR. SAL PUTZU, SDBEXPLORING GOD’S WORD, FR. SAL PUTZU, SDBAND LOUIE M. LACSONAND LOUIE M. LACSON

Word&Life Publications • [email protected]@yahoo.com

‘FURIOUS 7’ TOPS U.S., ‘AVENGERS:

‘FURIOUS 7’ TOPS U.S., ‘AVENGERS:

‘FURIOUS 7’ TOPS U.S.,

AGE OF ULTRON’SCORES OVERSEAS »D3

B M C GTribune News Service

WHEN most of us are designing the spaces in our home, we have a wonderful vision of what we want our rooms to look like. But, alas, we also have budgets. I’ve

learned from designing my own homes that you can get the high-style look you’re dreaming of without going over budget. Here’s my trick:

Splurge and save.My friend Cynthia, whose well-appointed homes are

featured in my books, is the queen of this design-savvy technique: Splurge on a few pieces, save on the rest. She invests in one or two fabulous pieces that will be the style setters for the room. Then, she balances her budget with high-look, lower-cost furnishings and accents. I like to call these “cheater” pieces because they look way more expensive than they really are.

Where do you splurge, and where do you save?This answer is different for everyone, depending

upon your age and stage of life, decorating passions and how you use your home. Here are some examples of where you can splurge and where you can save to get the look you love in your home.

■ Sublime Sofas: Splurge. When it comes to upholstered furniture, I always urge people to get the highest-quality piece they can afford, then scrimp someplace else. Why? Good furniture doesn’t just look great when you purchase it; it looks great for decades to come. That durability is a result of the quality workmanship that goes into investment sofas. You can select the kind of cushion you want, from feather to firm. You have lots of choices in upholstery fabrics and trim details. Those are the kinds of options investment furniture offers you.

■ Sublime Sofas: Save. If you are just starting out in life, or you move a lot, or you have young kids, pets or a spouse, who will be hard on your furniture, you may want you sofa to be your “save” piece. Slipcovered sofas can deliver a great look at a great value.

■ Charming Chairs: Splurge. A wonderful spool chair is an investment piece that will elevate the look of the entire room and last for years. Offered by one of my

THIS summer is turning out to be more brutal than usual, and it’s time to cool down. The air conditioners of Concepcion Midea Inc. (CMI) (www.midea.com.ph(www.midea.com.ph( ) do not just cool the www.midea.com.ph) do not just cool the www.midea.com.phair but they also transform the environment to suit your long-term lifestyle, as well as your current mood. The airconditioners come equipped with innovative design and technology that enhances the way you live.

“Two choices give you the best of both worlds: the Midea Genesis White and the Midea Mirror Black,” says Phillip Trapaga, CMI general manager. “Each has unique features that correspond to its owner’s needs and are designed to provide utmost satisfaction. The air conditioner is no longer just a machine that lowers temperature to provide us comfort and convenience. Rather, it is a vital piece of equipment that helps set our mood, which, in turn, is critical to our performance at work and home. It is critical in assuring our well-being.”

First, the Midea Genesis White’s quiet mode slows down the fan speed while lowering the indoor unit’s noise levels to just 20 decibels.

It is available in 1.0, 1.5, 2.0 and 2.5 hp units and ushers in that kind of precious silence that helps you keep calm and peaceful, ideal for a restful sleep, meditation or prayer time, or just plain down time. The Midea Genesis White also self-cleanses, thus prevents molds from breeding, so that the air is always pure and safe. Meanwhile, the Midea Mirror Black series is an eye-catching option for those who value sophistication and intelligence. It’s the only model in the country with a black panel. Like the Midea Genesis White, the Midea Mirror Black series has a self-cleansing mechanism that removes all the dirt and other toxins from its filters on its own, allowing you to spend more time and energy on other activities. Its speed and capability to determine the ideal room temperature for comfort reduces unnecessary use of power. Both models also come with features for saving up on your power rates. The Turbo Inverter feature does this by automatically switching from compressor to fan when the desired room temperature is already reached, instead of the unit running at full power the entire time. This lessens electricity costs, as well as noise vibrations that can disrupt sleep.

The so-called D-Tech is a radical innovation specific only to the Midea Mirror Black series, directing the flow of the cool air to ‘follow’ you (the holder of the remote control) or focusing on your preferred location in the room.

Midea is one of the world’s largest producers of consumer appliances. Established in 1968, it has consistently strived to make the lives of consumers easier with its line of innovative products.

In 2014 Midea Global partnered with Concepcion Industrial Corp. to bring the brand closer to Filipinos.

Where to splurge,where to save

➜How about LIVING IN A HOME THAT IS ‘COVER MATERIAL’?MANY will agree that choosing the right furniture and accent pieces combined with the clever use of carpets, curtains and mirrors can make the inside of a house picture-perfect. But when the professionals do it, the result can be breathtakingly spectacular. The Botanika Nature Residences’s two-bedroom deluxe model unit found at the Botanika Sales Atrium is worthy of a photo spread in a design magazine, a seamless picture of design and functionality, thanks to Budji+Royal Design+Architects.

Botanika Nature Residences (www.botanika.com.ph) is an iconic, low-density, www.botanika.com.ph) is an iconic, low-density, www.botanika.com.phthree-tower vertical lush village soon to rise in Filinvest City, Alabang. It is the first development of Filinvest Alabang Inc.’s “highest-end” category of residential projects, called “Exclusive Collection.”

Company President and CEO Josephine Gotianun-Yap said the collection is “a special universe created for residential spaces of the highest quality, whose concepts are so thoughtfully and meticulously conceived down to the last detail.” For the model-unit masterpiece, the design company headed by president and CEO architect Royal Pineda and designer Budji Layug utilized a synergistic approach, combining function and design to the delight of the adoring crowd at a recent open house. BUDJI+ROYAL Design+Architects President and CEO Arch. Royal Pineda and designer Budji Layug

favorite furniture-makers, it’s expertly crafted and offers lots of design options. You can select how you’d like the wood finished—painted or different stains. You can pick from 1,400 decorator fabrics, like a coral and blue urn pattern that I’m crazy about.

■ Charming Chairs: Save. When I saw an inexpensive spool chair at market, I ordered a case because it’s a great cheater piece. It mimics the look of our splurge chair, but costs a great deal less. What do you give up? It’s an import piece and is only available in two fabrics. The quality does not compare with our investment spool chair. But we brought up the look just by adding a pillow made out of our coral and blue urn fabric.

■ Arresting Accents: Splurge. Some people love to invest in fine accents to give their interior spaces a singular look. Beautiful butterfly urns are an example of a great splurge piece. Higher quality urns usually have a creamier, richer color, while less expensive urns appear a bit grayer. The higher quality pieces also offer more unique designs.

■ Arresting Accents: Save. Floral urns are lovely and can be about 20 percent of the cost of an investment urn. A lot of my friends and customers mix

these cheater pieces in with antique china pieces and investment pieces.

■ Lovely Lamps: Splurge. It used to be that you could find fabulous-looking lamps for a bargain. Not so much anymore. In fact, I think lamps are getting tougher and tougher to cheat on. The lower-cost lamps just don’t look as good.

■ Lovely Lamps: Save. Because I am passionate about finding pieces that fit everyone’s price range, I have been digging hard to find lamps that are lovely but more affordable. I scored with a line of porcelain lamps. With their clean lines, interesting shapes and contemporary colors, they are a great pick if you want your lighting to be the place you save on your budget.

■ Mirror, Mirror: Save. Honestly, unless you just fall head over heels in love with a high-end mirror, or an antique steals your heart, I’d advise getting mirrors that are affordable. They deliver all the look at a fraction of the price.

■ This article was adapted from Mary Carol Garrity’s blog at www.nellhills.com. She can be reached at [email protected].

For smart and elegant living

SportsSportsBusinessMirror

NOT ABOUT MONEYB L P

Los Angeles Times

F OR Manny Pacquiao, it wasn’t about winning the business deal. It was about proving he was the better fighter. Pacquiao cut his losses in negotiations to secure a fight with Floyd Mayweather Jr. So on Saturday night,

fittingly in Las Vegas, the gamble Pacquiao made gives him a chance to go all in and win the legacy bout, with all the high-rollers and the world watching.

“If my concern is myself alone, the fight is hard to make happen,” said Pacquiao, who accepted a 60-40 purse split in Mayweather’s favor. “I didn’t want 60-40. I did it for the sake of the fans. We know they’ve been waiting for this fight for five years.”

When the buzz first started about this superfight, it was Pacquiao who was No. 1 in boxing’s mythical pound-for-pound rankings. But the fighters’ swapped spots, as Mayweather (47-0, 26 knockouts) kept winning, while Pacquiao (57-5-2, 38 KOs) suffered a December 2012 knockout loss to Juan Manuel Marquez.

That loss made the already problematic negotiations between the Mayweather and Pacquiao camps all the more difficult. Previously, they’d had major disputes over drug-testing, the purse cut and personal feuds.

After Pacquiao lost, Mayweather was quick to dismiss him as a possible opponent by saying the Filipino first had to finish his business with Marquez, who won in their fourth fight.

But Pacquiao, 36, responded with three convincing victories over younger men, including a unanimous decision over Timothy Bradley that avenged a controversial loss to Bradley in 2012 because of bad judging. Pacquiao then set a personal record by knocking down Chris Algieri six times last November in a lopsided decision in China.

As he concluded training for Algieri, Pacquiao was asked about the Mayweather side saying it would require accepting a 60-40 split to get the fight made.

“Yeah, I’ll do that,” Pacquiao said without pause. “No problem.”Pacquiao’s promoter Bob Arum said negotiations started at

an even steeper disadvantage, with Mayweather’s representative proposing a 65-35 split.

“Manny truly believes money isn’t everything, and you can’t be cheated when money isn’t everything,” Arum said. “He was willing to sacrifice points to make the fight. Simple as that. He wanted the fight.”

Arum, who’s been brokering fight deals since the 1960s, said, “Obviously, I pushed back” from the 65-35 talk, “but it went on for weeks.”

Friction between Arum and his former fighter Mayweather, along with the promoter’s strong influence on Pacquiao, were considered as major reasons the fight would never happen.

“Some can paint me as a Svengali who dictates what to do to Manny, but it’s not the truth. I stayed in this business so long by taking directions, and getting approval, from athletes,” Arum said. “If Manny wants to take a ridiculously low percentage, it’s his career and his life.... We settled for this because Manny was willing to.

“Whether it was a smart decision or a stupid decision, it’s a decision he and I will live with.”

Of course, given the historic scope of this fight, both boxers will earn unheard-of sums for their bout on Saturday. Together they could earn more than $300 million for what should be a record pay-per-view bout, with a possible $100 million for Pacquiao.

Pacquiao’s first memories of boxing also center on money.He still remembers how, as a poverty-stricken child, his uncle

showed him VHS tapes of boxing matches featuring Larry Holmes, Mike Tyson, Julio Cesar Chavez Sr., the Ruelas brothers and more.

At age 11, when Pacquiao used to sell doughnuts and other

items on the street to help pad his family’s income, his uncle led him to a Sunday boxing contest. The young boy was surprised to learn that he’d been entered into the competition.

“I was excited, like, ‘What’s this?’ “ Pacquiao said.He won a three-round decision and was given P100 for the

triumph—two dollars—and split the money with his uncle while giving the rest to his mother for groceries.

“Fifty pesos, that was big,” Pacquiao said. “Six pesos was a kilo of rice. I was thinking, ‘This is good for everybody.’ I was selling doughnuts, whatever I can sell...but boxing was one day of some work and you earn more money.

“My teacher saw me come in a little bruised up one day and told me, ‘Maybe you become Flash Elorde [the late former featherweight world champion from the Philippines].’ “

Little did they know....Pacquiao said when he was watching those fight videos, seeing

the legendary men fighting in packed venues, his uncle imagined aloud: “What if you could get like that? In a building like that?”

“I loved boxing because it helped my mother,” Pacquiao said. “In my mind, I didn’t think I’d be a good boxer. All that was really in my mind was to earn a kilo of rice.”

Pacquiao became a pro at 16 and fought 43 fights, almost all in the Philippines, before his first bout in the US in 2001. His furious fighting style, an ability to knock out bigger men and his winning titles at various weight classes made him an international star.

His success here made his returns home heart-tugging, and he’d literally allow lines to form at his home, where he’d hand out money.

He enjoys the fruits of his labor—drives a lavish sports car, is angling to buy a multimillion-dollar home in LA with this purse from the Mayweather fight—but his newborn religious faith and current duties as a congressman in the Philippines still leave him feeling obligated.

“I enjoy helping people—the poor, orphans—I cannot leave them hungry without helping them. I’m not materialistic,” he said. “The money’s not mine. It’s God’s grace that’s entrusted to me.

“My first concern every fight is how to entertain people, give them enjoyment and make them happy. Of course, for doing that, there’s a price, and [Mayweather] set this price.”

Pacquiao admits both men had “nowhere to go,” regarding another big fight. Mayweather, 38, wouldn’t come close to earning $200 million in a fight against Amir Khan, and Marquez no longer wants to fight Pacquiao.

Pacquiao could’ve dug in, pressing Mayweather for a better cut with so many millions possible. But Pacquiao said he has other concerns.

“I have to make sure I’m in the best condition of my life,” he said. “Being an underdog, you’re more focused on training, from the first day to the last day. I’m very confident. My training, conditioning; I can feel it. My speed, footwork, punches...are the things to beat his [defensive] style and win the fight.”

The possibility of recouping a larger chunk in a rematch is something Pacquiao said he can tend to after this fight.

First, he has to win, and so he routinely spent this training camp in LA running up to Griffith Observatory, with a pack of fans and countrymen tailing.

“The most important thing in this fight is cutting off the ring—with strong legs, footwork, speed,” Pacquiao said. “It’s good to get to the top of the observatory and feel like I do now.”

He’ll break camp on Monday, then drive himself to Las Vegas.“No problem,” he said, about the biggest fight of his life on

Saturday. “I’m ready.”

» MANNY PACQUIAO: I didn’t want 60-40. I did itfor the sake of the fans. We know they’ve beenwaiting for this fight for five years. AP

L AS VEGAS—The last time Freddie Roach was on the interstate linking Los Angeles with this boxing capital, he was written up

for going 140 mph.Roach will be driving a lot slower on Monday

as part of a colorful caravan of hundreds of cars heading down Interstate 15 with Manny Pacquiao for his showdown with Floyd Mayweather Jr.

“Manny will spar on Monday for the last time and after that we’ll break camp and everyone will go to their cars and trucks,” Roach said. “The entourage used to be about 100 cars, I’d say there might be 1,000 cars this time.”

Fight week is finally here, and even in a city known for the outlandish it is shaping up to be something special. The richest fight in history has spawned $100,000 ringside tickets, hotel rooms going for $1,600 a night, and a pay-per-view price just a nickel shy of a $100 bill.

Even $10 tickets to see the two fighters at the weigh-in are running as much as $700 through online ticket brokers.

Everything is over the top for the megafight that was five years in the making. That includes the caravan that will bring Pacquiao to Las Vegas, featuring hundreds of cars and a custom bus wrapped in Pacquiao’s image for some of the luckier members of his entourage.

“I might have the fastest car,” Roach said.

“But if I get one more of those tickets I can’t drive anymore. I asked the police officer, why do they make these cars so fast if you can’t drive that way? I should have shut my mouth.”

Pacquiao is scheduled to arrive at the Delano Las Vegas hotel at Mandalay Bay sometime early evening on Monday following seven weeks of training at Roach’s Wild Card Boxing Club in Hollywood. His arrival marks the unofficial kick-off to a fight week unlike any other in a city used to hosting the biggest fights.

So far it doesn’t look like promoters underestimated the demand for the fight. The cheapest ticket on the StubHub web site on Sunday was $5,245, while ringside seats were being offered for as much as $106,950. Even tickets to watch on closed circuit at various MGM-owned properties in Las Vegas—which originally sold for $150—were being offered at $620 or more online.

Everybody will pay for a fight that will likely earn Mayweather $180 million and Pacquiao $120 million. Even Roach had to shell out $70,000 for 20 tickets for family and friends, though he was able to get his at retail prices.

“My mother asked for four tickets and my mother gets whatever she wants,” Roach said. “My brothers and sister all want to go. I’m happy I

can afford to buy them tickets.”While Pacquiao will be arriving in town,

Mayweather lives here and has been training at his own gym just west of the Las Vegas Strip. His promoter, Leonard Ellerbe, said on Sunday that Mayweather will treat the week just like any other big fight he has been involved in.

“It’s a typical fight week, business as usual,” Ellerbe said. “Floyd is going to put on a spectacular performance, you can count on that.”

Ellerbe said he isn’t surprised by the demand for anything to do with the fight, which will smash records for biggest gate and almost surely set records for pay-per-view sales.

“Everything is out of the stratosphere,” he said. “It shows you the worldwide appeal of this fight.”

Roach can be forgiven if he speeds a bit on his way to town. A seven-time winner of the Trainer of the Year award by the Boxing Writers of America, he said Pacquiao guaranteed him a win last week so he would win the award for an eighth time.

“This will be my biggest win ever,” Roach said. “This one really counts, it will be in the history books the rest of our lives. I think my guy is ready for it.” AP

IT’S FIGHT WEEK

C1 | TUESDAY, APRIL 28, [email protected]@businessmirror.com.phEditor: Jun Lomibao

Manny Pacquiao cut his losses in negotiations to secure a fight with Floyd

Mayweather Jr. So on Saturday night, fittingly

in Las Vegas, the gamble Pacquiao made gives

him a chance to go all in and win the legacy bout,

with all the high-

rollers and the world watching.

B3-1 | Tuesday, April 28, 2015 Editor: Lyn Resurreccion

WorldBusinessMirror

WorldTheWorld

PEOPLE critically injured in an avalanche set o� by the massive 7.8-magnitude earthquake are wrapped to be evacuated out of Everest Base Camp, Nepal. AP/NIMA NAMGYAL SHERPA

KATHMANDU, Nepal—KATHMANDU, Nepal—K e death toll from Nepal’s K e death toll from Nepal’s Kearthquake soared past 3,700 Kearthquake soared past 3,700 Kon Monday, and how much higher it would rise depended largely on the condition of vulnerable mountain villages that rescue workers were still struggling to reach two days after the disaster.

Reports received, so far, by the government and aid groups suggest that many communities perched on mountainsides are devastated or struggling to cope. Udav Prashad Timalsina, the top o� cial for the Gorkha district, near the epicenter of Saturday’s quake, said he was in des-perate need of help.

“� ere are people who are not get-ting food and shelter. I’ve had reports of villages where 70 percent of the houses have been destroyed,” he said.

He said 223 people had been con� rmed dead in the district but he presumed “the number would

go up because there are thousands who are injured.”

Saturday’s magnitude 7.8 earth-quake spread horror from Kath-mandu to small villages and to the slopes of Mount Everest, trig-gering an avalanche that buried part of the base camp packed with foreign climbers preparing to make their summit attempts.

Timalsina said his district had not received enough help from the central government, but Jagdish Pokhrel, the clearly exhausted army spokesman, said nearly the entire 100,000 soldier army was involved in rescue operations.

“We have 90 percent of the army out there working on search and res-cue,” he said. “We are focusing our ef-forts on that, on saving lives.”

Deputy Inspector General of Po-lice Komal Singh Bam said on Mon-day that Nepal’s death toll had risen to 3,617 people. � at does not include the 18 people killed in the avalanche, which were counted by the mountain-eering association.

Another 61 people were killed in neighboring India, and China report-ed 20 people dead in Tibet.

Well over 1,000 of the victims were in Kathmandu, the capital, where an ee-rie calm prevailed on Monday.

Tens of thousands of families slept outdoors for a second night, fearful of aftershocks that have not ceased. Camped in parks, open squares and a golf course, they cuddled children or pets against chilly Himalayan night-time temperatures.

� ey woke to the sound of dogs yelping and jackhammers. As the dawn light crawled across toppled building sites, volunteers and res-cue workers carefully shifted broken concrete slabs and crumbled bricks mixed together with humble house-hold items: pots and pans; a purple notebook decorated with butter� ies; a framed poster of a bodybuilder; so many shoes.

“It’s overwhelming. It’s too much

to think about,” said 55-year-old Bijay Nakarmi, mourning his parents, whose bodies recovered from the rubble of what once was a three-story building.

He could tell how they died from their injuries. His mother was electro-cuted by a live wire on the rooftop. His father was cut down by falling beams on the staircase.

He had last seen them a few days earlier—on Nepal’s Mothers’ Day—for a cheerful family meal.

“I have their bodies by the river. � ey are resting until relatives can come to the funeral,” Nakarmi said as workers continued searching for an-other � ve people buried underneath the wreckage.

Kathmandu district chief admin-istrator Ek Narayan Aryal said tents and water were being handed out Monday at 10 locations in Kathman-du, but that aftershocks were leaving everyone jittery. � e largest, on Sun-day, was magnitude 6.7.

“� ere have been nearly 100 earthquakes and aftershocks, which is making rescue work di� cult. Even the rescuers are scared and running because of them,” he said.

“We don’t feel safe at all. � ere have been so many aftershocks. It doesn’t stop,” said Rajendra Dhungana, 34, who spent Sunday with his niece’s family for her cremation at the Pashuputi Nath Temple. AP

AS TOLL RISES TO 3,700Quake rescuers struggle AS TOLL RISES TO 3,700Quake rescuers struggle AS TOLL RISES TO 3,700

to reach remote Nepal areas LONDON— Governments and aid agencies on Sunday rushed doctors, volunteers

and equipment to Nepal without waiting for the dust to settle.

UN Spokesman Orla Fagan, who is heading to Nepal, said prevent-ing the spread of disease is one of the most important tasks facing aid workers who are arriving.

“� ere are 14 international medical teams on the way and ei-ther 14 or 15 international search-and-rescue teams on the way,” she said. “� ey need to get in as soon as possible. � ey will use military aircraft to get them into Nepal.”

Diarrhea was already a growing problem and a measles outbreak was feared, with vaccines in short supply, the UN warned in a report.

Substantial logistical hurdles remain, but there were hope-ful signs as Kathmandu’s inter-national airport reopened after Saturday’s crushing earthquake, though, there were still delays as aftershocks continued. Some aid vehicles were able to travel over-land from Indian to the stricken Nepalese city of Pokhara.

“� at means supplies could po-tentially come in overland from In-dia. � at is a positive sign,” said Ben Pickering, Save the Children’s hu-manitarian adviser in Britain. “� e airport opening is a small miracle.”

� e need is great: United Na-tions Children’s Fund (Unicef) said on Sunday that nearly 1 mil-lion children in areas a� ected by the earthquake are in “urgent need” of humanitarian assistance. Unicef sta� reported dwindling water supplies, power shortages and communications breakdowns.

Celebrities, like singer Shakira, sent tweets appealing for help for Unicef. � e mobile payment com-pany Square created a “cashtag” to donate: cash.me/$unicef. PayPal an-nounced it was waiving fees for do-nations to several aid organizations.

Save the Children has emer-gency kits prepositioned in three warehouses in Nepal and plans to distribute bedding, buckets and other basic supplies to 2,000 fami-lies as quickly as possible.

International Search and Res-cue Germany said a team of 52 relief workers, including doctors, experts trained in searching for people buried under rubble and several dog squads are � ying on Sunday. � e team will bring a mo-bile medical treatment center.

� e Pentagon said a US military plane departed on Sunday morn-ing for Nepal carrying 70 person-nel, including a US Agency for In-ternational Development disaster

assistance response team, an ur-ban search-and-rescue team from Fairfax, Virginia, and 45 tons of cargo. California was also sending a team of 57 urban search and res-cue workers.

� e United Arab Emirates de-ployed an 88-member search-and-rescue team to Nepal on Sunday, and the Emirates Red Crescent also sent a team.

� e Israeli military said it is send-ing a 260-member mission to Nepal to provide immediate search-and-rescue help and medical aid.

European nations deployed as well: France said it would send 11 rescuers on Sunday; Britain an-nounced that an advance team of eight had been sent and that a £5-million ($7.6-million) aid package would be available under a rapid response plan; Italy de-ployed a team of experts from its Civil Protection Department, as well as it foreign crisis team; and the Swiss Foreign Ministry said a team of experts, including a doc-tor, a building surveyor and water quality technician had left for Ne-pal on Sunday.

Poland is sending a rescue team to Nepal of 81 � re� ghters, togeth-er with heavy equipment and sev-eral dogs, as well several medics.

Canada sent an advance unit from its urban disaster search-and rescue-team, along with medical personnel and humanitarian re-lief supplies.

Volunteers from various British charities gathered at London’s Heath-row Airport getting ready for over-night � ights to the Nepal region.

Gary Francis, leader of the Search and Rescue Assistance in Disasters group, said the organiza-tion was bringing in enough tents, food and water to operate self-suf-� ciently for 15 days.

� ey were bring in “a vast ar-ray” of equipment, including sound and vibration detectors, seismic listening devices, and cut-ting equipment, with an eye to-ward � nding survivors.

“Once we are there we’ve got the ability to carry out a coordina-tion role or urban search and res-cue looking for survivors trapped in collapsed buildings,” he said.

UN humanitarian chief Valerie Amos said in a statement on Sun-day evening that the full picture of destruction and su� ering would only appear worse “as humanitari-an workers reach the more remote areas near the epicenter of the earthquake.” She said “entire ar-eas have been � attened” and that time is of the essence in search and rescue e� orts. AP

GLOBAL RESPONSE GEARS UP TO PREVENT DISEASES

GREECE will look for ways to assemble enough cash to pay its pensioners and em-

ployees this week, after euro-area � -nance ministers on Friday said they won’t disburse more aid until bailout terms are met.

Europe’s most-indebted state will use the deposits of local governments, cities and other funds to meet end-of month payments totaling over €1.5 billion ($1.6 billion).

By doing so, they risk straining li-quidity bu� ers, after households and companies withdrew almost €1.3 bil-lion in savings last week, according to a person who wasn’t authorized to speak publicly on the matter.

Greece has fought to unlock aid since striking a deal to extend its bail-out program in February. � e govern-ment has repeatedly expressed con-� dence that a deal was imminent, only to be rebu� ed by euro-area

o� cials seeking concrete steps. Last week was no di� erent: days

after Finance Minister Yanis Varou-fakis said views were converging, his counterparts across the region hit him with a volley of criticism.

Greek bonds fell on Friday, send-ing yields on three-year notes up 144 basis points to 26.3 percent.

Greek Prime Minister Alexis Tsip-ras met with German Chancellor An-gela Merkel last week and later told reporters he was “very optimistic we are closer than before.”

Still, support for his confronta-tional strategy fell to 46 percent in a University of Macedonia poll for Skai TV published on Tuesday, com-pared with 56 percent a month ear-lier. Researchers interviewed 1,007 people between April 15 and 17 and the margin of error was three per-centage points.

� e consensus at the International

Monetary Fund (IMF) meetings in Washington this month was increas-ingly that a Greek default would be systemically manageable, UBS Chairman Axel Weber told the Swiss newspaper Neue Zuercher Zeitung.Neue Zuercher Zeitung.Neue Zuercher Zeitung

� e Governing Council of the European Central Bank (ECB) may debate on May 6 whether to raise the haircut on Greek collateral posted against Emergency Liquidity Assis-tance, a decision that could worsen the country’s cash squeeze.

ECB sta� have already proposed increasing the discounts imposed on the securities banks post as col-lateral when borrowing emergency cash from the Bank of Greece.

State co� ers may be further de-pleted on the same day when Greece needs to � nd €200 million for an IMF payment.

Bleeding deposits and unable to access ECB’s regular � nancing

operations, while the bailout review re-mains stalled, Greek lenders currently rely on a €75.5-billion ELA lifeline.

� e assistance is subject to weekly review by the ECB. Any reduction of the value of collateral that Greek banks pledge may mean the days of ELA are numbered, further increas-ing pressure on the government to make a choice between complying with creditors’ demands or imposing capital controls.

“It is perfectly feasible and abso-lutely necessary to reach an interme-diary agreement,” Greece’s Deputy Prime Minister Yannis Dragasakis said in an interview with Avgi news-paper on Sunday. If the cash-� ow deadlock persists “we will be forced to adopt on our own measures, which we are currently trying to avoid,” Dragasakis told the Syriza governing party-a� liated newspa-per. Bloomberg News

GREECE’S DAY OF RECKONING INCHES CLOSER AS DEBT PAYMENTS LOOM

VOLUNTEERS work to remove debris at the historic Dharahara tower after an earthquake in Kathmandu, Nepal. The earthquake shook Nepal’s capital and the densely populated Kathmandu Valley before noon on Saturday, causing extensive damage with toppled walls and collapsed buildings, o� cials said. AP/NIRANJAN SHRESTHA

LIFE D1

SPORTS C1

WORLD B31

SM REFUTES ABAYA’S‘COMPROMISE DEAL’

B L S. M 

PROPERTY developer SM Prime Holdings Inc. is insisting that the P1.4-billion station that will connect three overhead train systems in Metro Manila should be constructed in front of its

shopping mall in North Edsa, denying claims that it has received any proposal from the government with regard to a compromise agreement with Ayala Land Inc. Edgar Ryan C. San Juan, the legal counsel of the listed prop-erty company, said the Department of Transportation and Com-munications (DOTC) has yet to formally inform his group of its plan to amend the alignment of the common station. “SM has not received any communication from the DOTC regard-ing the purported revised plans for the common station. In any case, we remain hopeful that the government will respect the terms of our valid and binding contract to locate the common station in front of SM North Edsa,” he said in a brief statement on Monday. Over the weekend, Transportation Secretary Joseph Emilio A. Abaya said a compromise agreement for the construction of a common hub—or two—is nearing fruition, explaining that a com-promise agreement for the construction of the much-coveted infrastructure is currently being drafted.

Economy still showing more zip

S “SM,” AS “N,” A S “A ,” A

PESO EXCHANGE RATES ■ US 44.2240 ■ JAPAN 0.3719 ■ UK 67.1630 ■ HK 5.7066 ■ CHINA 7.1387 ■ SINGAPORE 33.2236 ■ AUSTRALIA 34.6366 ■ EU 48.0671 ■ SAUDI ARABIA 11.7940 Source: BSP (27 April 2015)

Asian family offices seeing rapid growth THE number of family offices in Asia

and the Middle East will more than double to about 400 over the next

eight years, as the ranks of wealthy in-dividuals swell, Michael Prahl of Insead business school said. Driven by the region’s economic expan-sion, the number of wealthy individuals is expected to rise by 40 percent by 2023, Prahl, executive director at Insead in Sin-gapore, said in an interview on April 24.

Asia is lagging behind the US and Eu-rope in family-office services. Seventy-six percent of Asia’s family offices were started since 2000, according to UBS

MALAYSIAN Prime Minister Najib Razak (from left), Myanmarese President Thein Sein, Brunei Darussalam Sultan Hassanal Bolkiah, Cambodian Prime Minister Hun Sen, Indonesian President Joko Widodo and Philippine President Aquino join hands during the opening ceremony of the 26th Asean Summit in Kuala Lumpur, Malaysia, on Monday. AP/VINCENT THIAN

Najib indirectly rejects PHL call for Asean to stand up to China

C A

NOT ABOUTMONEY

BusinessMirror [email protected] Tuesday, April 28, 2015A2

News

Asian family. . . Continued from A1

Madrid Fusión. . . Continued from A8

Najib. . . Continued from A1

Continued from A1

Disputes have escalated as China claims sovereignty over about four-fifths of the sea, according to the so-called nine-dash line map it drew in the 1940s, and expands the reach of its military to back its territorial interests and challenge decades of US naval dominance in the Pacific. The tensions risk overshadowing its trade and investment ties with Southeast Asia. “Given the importance of its sea lanes to international trade, it is natural that almost any occurrence there will attract attention,” Najib said. “Asean must address these de-velopments in a proactive, but also in a positive and constructive way.”Philippine Foreign Affairs Secre-tary Albert F. del Rosario told his Asean counterparts on Sunday that the threats posed by China’s cre-ation of artificial islands are real and cannot be ignored. China is “clearly and quickly advancing” rec-lamations and is poised to “consoli-

date de facto control” of the South China Sea, he said.

Stop reclamations“IS it not time for Asean to say to our northern neighbor that what it is doing is wrong and that the mas-sive reclamations must be imme-diately stopped?” del Rosario said. “On this most important issue, is it not time for Asean to finally stand up for what is right?” China’s actions have caused uneasiness for neighbors, such as Vietnam and the Philippines who also claim some of the waters. It agreed to talks with Asean over a Code of Conduct for the South China Sea in July 2013, but little progress has been made. The government in Beijing signed a nonbinding declara-tion of conduct in 2002, which calls on parties to refrain from “inhab-iting on the presently uninhabited islands, reefs, shoals, cays and other features.” AP, Bloomberg News

other economic data as this would likely lead to higher consumption and investment spending.  Manila Electric Co. (Meralco) electricity sales recovered from a two-month slump (December 2014 and January 2015), indicating that there is more zip in the economy than naysayers think,” the think tank said. It is likely also more economic ac-tivity is occurring in the provinces, where local government units have even more fiscal space to take ad-vantage of for the 2016 elections, it added.  “While exports continued to re-main barely in negative territory and remittances rose by only 0.2 percent in January, these are likely to be temporary. Besides, the na-tional government [NG] has fiscal space for heavy spending as its defi-cit for 2014 only hit 0.6 percent of GDP, pulling down its NG debt-to-GDP ratio further to 45.7 percent. This is now even lower than Malay-sia [since 2012] and Thailand,” the think said in its latest Market Call. The think thank, however,

did not give actual growth esti-mates for the first quarter and full year. “Economic data released in March provide notable support for hav-ing a positive outlook for Q1 [first quarter], with job generation hitting over 1 million [from a year ago] in the last four quarters, and inflation in February remaining muted at 2.5 percent,” the think tank said.   “A slight recovery in Meralco sales and expectations of higher government spending also boost expectations for another strong quarter performance,” it added.  The think tank expressed confi-dence that inflation this year will be within the central bank’s 2-percent to 4-percent target on the back of cheaper oil and stable food prices.  The report noted that the sea-sonally adjusted annual rate de-clined by 1.7 percent from 2.6 percent last month, indicating slower price movements net of seasonal factors. With the low inflation, the think tank believes the central bank will likely maintain interest rates throughout 2015. 

“Headline inflation rate will likely trek the downward path, with stable food prices and soft fuel prices in the horizon. It may even go below 2 percent by July if the current trends continue,” the think tank said.  In terms of job creation, FMIC-UA&P Capital Market Research said the increase of over 1 million new jobs will likely spur consumption and boost economic growth.  The think tank added that workers’ consumption across the board is expected to see an in-crease, not only because of low prices, but also due to the increase in minimum wage.  The report stated that starting April 15, Metro Manila workers in the nonagricultural sector will receive a minimum wage of P481, and P444 for those working in the agricultural sector. This is said to benefit 587,000 workers.  “Broad-based growth in al l sectors signals a promising labor performance which the national government hopes to benefit the poor. The NG aims to reduce pov-erty by facilitating the creation of

more and better quality jobs, and in effect higher incomes,” the think tank said.  In 2014 the Philippine economy posted a growth of 6.1 percent, the slowest since 2011 when the econ-omy posted a full-year economic growth of 3.7 percent.  Basilican said the slower full-year economic growth was largely due to the lackluster economic per-formance in the first three quar-ters of the year. The country’s GDP growth in the first to third quarters was significantly affected by the government’s underspending.  However, a recovery in govern-ment spending in the last quarter of 2014 boosted growth in the fourth quarter to 6.9 percent, an estimate that was above market expectations. The full-year economic growth in 2014 placed the Philippines as the second fastest-growing economy in Asia and the country’s fourt-quarter growth placed the country as the third fastest-growing economy in Asia during the period.  The national government will announce the country’s first-quar-ter GDP data on May 28, 2015.

Economy still showing more zip

to claim billing as center of modern gas-tronomy in Asean,” in the BusinessMirror, April 23, 2015.) He added that getting the Philippine restaurants included in the Michelin Guide “is my next project.” The MFM attracted chefs, bakers,

culinary students, food suppliers and retailers to the gastronomy congress, paying P11,000 to P20,000 per person just to attend the sessions. The restaurant industry in the Phil-ippines is one of the most vibrant and dynamic contributors to the growth of

the economy. Latest data on the restaurants from the Philippine Statistics Author-ity show restaurants, bars, canteens and other drinking and eating places generate revenues of P163.85 billion in 2009. But the total value added for

this sector reached P46.2 billion. There were 13,348 restaurants, bars, canteens, and other drinking and eating places that same year which recorded 234,413 employees. Total compensation paid to these employ-ees reached P22 billion.

Group AG, whereas they took off in Europe and the US in the second half of the last century. Insead estimates that there might be as many as 200 family offices in Asia currently, com-pared to about 1,000 in Europe and 3,000 in the US. “Given the youth of the family-office industry in Asia, there is a big desire and need to catch up to pro-fessionalize,” said Prahl, who does research and regularly hosts confer-ences on family offices. Family offices manage assets, as well

as provide tax, legal, accounting and philanthropy services to the wealthy. In Europe and the US they typically have one or two family members in-volved in asset-allocation decisions, generally engaging through the invest-ment committee, according to Prahl. Activities such as managing trading positions and manager selection are left to that body or the investment profes-sionals themselves. In Asia, the family is much more in control of investment decision-making, Prahl said.

Bloomberg News

BusinessMirror Special Featurewww.businessmirror.com.ph Tuesday, April 28, 2015 A3

BusinessMirror [email protected] A4

Economy

briefsmakati welcomes 5,000 youths

in twin summer programThe city government of Makati City, through its Public employment Service Office (Makati-Peso), on Monday welcomed over 5,000 beneficiaries of the city’s twin summer programs, the Government Internship Program and the Special Program for the employment of Students (SPeS) during the launching ceremony held at the City hall Quadrangle. Makati Peso Manager Vissia Marie Aldon, concurrent acting city administrator and city personnel officer, expressed her gratitude to Makati Mayor Jejomar erwin S. Binay for the support he has extended to the two programs. “Without the support of the city government led by Mayor Binay, these programs would not have been successfully implemented every year,” she said. Aldon said the annual summer programs are continuously implemented, not only to help many young students and out-of-school youth in the city earn additional income for their school needs and other basic needs, but also to let them experience working and mingling with other people. “Through these programs, we are also preparing the beneficiaries so that in the future, they already know how it is to work in an office or how it is to relate with other people,” she said.

angeles city cited for business-friendly policiesANGeLeS CITY, Pampanga—The Central Luzon Growth Corridor Foundation Inc. (CLGCFI) has cited this city for its consistent and efficient implementation of its business permit and licensing policies.

The CLGCFI has conferred to the city government the award which has four categories, namely the most outstanding local government unit (LGU) for implementing the streamlining program in the issuance of mayor’s permit; information-technology (IT) innovations; customer relations; and institutionalization of business permits and licensing system (BPLS) reforms.

The city was also given a certificate of commendation for being one of the finalists of 2014 most outstanding LGU for IT innovations.

A plaque was also given recognizing the city as finalist in the 2014 regional most successful LGU in the institutionalization of BPLS reform category.

“This is one of the primary reasons as to why Angeles City was identified by the National Competitiveness Council as the Philippines’s third most competitive city for government efficiency last 2014,” City Mayor edgardo Pamintuan said. PNA

Jasareno said the upbeat per-formance of nickel last year due to the entry of new players, increased mine output and growing demand abroad, is expected to continue this year, as price of nickel in the world market is expected to remain favo-rable until the end of 2015. “A slight improvement is ex-pected this year,” Jasareno said. Metal prices, except nickel, were less attractive last year. Gold, silver and red metal copper recorded nega-tive movements, with the price of gold going down by 10.35 percent from $1,416.10 per troy ounce in 2013 to $1,269.57 troy ounce last year. Cop-per price also went down by 7.26 per-cent, from $3.31 per pound to $3.06 per pound during the same period. Nickel, on the other hand, record-ed a slight increase of 11.61 percent

in 2014 from its 2013 level—or from $6.78 per pound to $7.56 per pound. “Looking ahead, 2015 nickel prices are not anticipated to revert back to the double-digit levels set in 2011 giv-en the sufficient inventory, new sup-plies coming on stream and weaker demand in the market, particularly involving China,” Jasareno said. China was the prime destination of the country’s nickel ore followed by Japan. The MGB came up with its 2014 year-end review, briskly look-ing forward to a strong performance of the country’s nickel mines. There are now 27 nickel mines operating in the country. This is more than half of the 47 operating metallic mineral mines that contribute to the coun-try’s annual metal output. According to Jasareno, the Libjo Nickel Laterite Mining Project of

Tuesday, April 28, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Libjo Mining Corp. in the Province of Dinagat Island with 10 years mine life, and the Agata North Nickel Lateritic Project of TVI Resources Development Inc. in Agusan del Norte, with a mine life of 11 years, are expected to boost nickel output this year. “These new nickel min-ing projects are expected to boost the 2015 nickel production of the country, with the expected mine output of Libjo and Agata to be about 714,000 dry metric tons and 1,360,000 dry metric tons, respec-tively,” Jasareno said. Buoyed by the nickel’s strong per-formance, the country’s total metal-lic minerals output rose from P99.38 billion in 2013 to P137.53 billion in 2014, representing a P38.15-billion, or 38-percent, increase. Nickel direct shipping ore and mixed nickel-cobalt sulfide account-ed for 58 percent, or P79.84 billion, of the total production value, with gold in far second with 23.97 per-cent, or P32.97 billion. Copper fol-lowed with 16.55 percent, or P22.76 billion. Silver, chromite and iron attributed for the remaining 1.42 percent, or P1.96 billion. The country’s gold output as re-ported by annual purchases of the Bangko Sentral ng Pilipinas (BSP)

continues to take the back seat over the past three years, with small-scale miners selling their gold to the black market to avoid taxes. The govern-ment is pinning its hope on a new guideline to regulate small-scale mining, limiting gold mining activi-ties, including processing, within declared “Minahang Bayan” with a designated BSP gold-buying station. Copper production, on the other hand, is expected to slow down. The operation of two of the five copper mines stopped in November 2013 and January 2014. The open pit mining operation of Rapu-Rapu Minerals Inc. (RRMI) at Ungay-Malobago, in Rapu-Rapu, Albay, together with the mineral processing operations of Rapu-Rapu Processing Inc. in the same locality, ended in No-vember 2013. RRMI is currently im-plementing its approved Final Mine Rehabilitation/Decommissioning Plan, leading to the conversion of the mined out area into an ecotourism site. On the other hand, the Canatuan Mining Project of TVI Resource De-velopment (Phils.) Inc. in Zamboanga del Norte ended its mining operation in January 2014 after its mineral re-serve was fully mined. The company is now eyeing an expansion project adjacent to its mined-out area.

Nickel to boost 2015 metals output, revenues–MGBThe country’s nickel output is

expected to sustain its growth and raise the country’s annual

metallic minerals output this year, Director Leo Jasareno of the Mines and Geosciences Bureau (MGB) said.

The state-owned Bases Conver-sion and Development Author-ity (BCDA) has remitted P2.2

billion to the national government as its dividends share and share of government beneficiary agencies from BCDA’s asset disposition pro-ceeds from January to December 2014 period.

BCDA President and CeO Arnel Paciano D. Casanova said P500 million of the total amount rep-resents dividends to the national government.

Under Section 3 of the Republic Act (RA) 7656, all Government-Owned and -Controlled Corporations are re-quired to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.

The remaining P1.7 billion came from BCDA’s joint venture and lease agreements, as well as asset disposi-tion last year.

As stated in RA 7917 and execu-tive Order 309, proceeds from the development of Bonifacio Global City and Newport City which are former military camps should be shared with BCDA and named beneficiaries, as well as the local government units (LGUs) of Taguig, Pateros and Makati City.

The main beneficiary for the de-velopment of former military camps is the Armed Forces of the Philippines (AFP) for its modernization programs and facilities.

Of the said amount, P1.499 billion were allocated to the AFP; P189.67 mil-lion were for other government ben-eficiary agencies; and P12.75 million

were for the LGUs of Taguig, Pateros and Makati City.

Other government beneficiaries from BCDA’s proceeds are 1) National housing Authority, National home Mortgage Finance Corp. and home Insurance and Guarantee Corp.; 2) Philippine health Insurance Corp.; 3) Department of Public Works and highways and the Department of Transportation and Communica-tions; 4) Philippine Veterans Affairs Office; 5) Commission on higher education; 6) Department of Science and Technology;

7) Office of the Secretary, Depart-ment of Justice and the Office of the Ombudsman; 8) Mount Pinatubo As-sistance, Rehabilitation and Develop-ment Fund; 9) Bureau of Investigation, Bureau of Corrections, Philippine National Police and the Bureau of Jail Management and Penology; 10) Su-preme Court of the Philippines and Lower Courts, Sandiganbayan, Court of Appeals and Court of Tax Appeals;

11) Department of education, Cul-ture and Sports, Department of Social Welfare and Development; 12) Depart-ment of Labor and employment; 12) Department of Social Welfare and De-velopment; 13) Philippine economic Zone Authority.

“Since the start of the Aquino ad-ministration, the BCDA has remitted and average of close to P2.0 billion yearly to the Bureau of Treasury,” Ca-sanova said. In 2011 BCDA remitted to the na-tional government a total of P2.14 billion; and P528.45 million in 2012; P2.39 billion in 2013. PNA

BCDA remits P2.2B to NG

CIVIL-SOCIeTy organizations (CSOs) can now be recipients, beneficiaries, or implementing entities of government funds, provided they are qualified

under the newly released guidelines for accreditation.Given the important role of CSOs in national devel-

opment, the Department of Social Welfare and Develop-ment (DSWD), the Department of Budget and Manage-ment (DBM), and the Commission on Audit (COA) issued Joint Resolution 2014-001, a news statement released on Monday said.

The resolution was based on Section 66 of the 2014 General Appropriations Act (GAA) and Section 68 of the 2015 GAA, which direct the DSWD, DBM and COA, in consultation with other concerned agencies, to jointly issue guidelines for the accreditation of CSOs to be recipients, beneficiaries, or implementing entities of government or public funds.

The resolution enumerated the principles, criteria and application for accreditation of CSOs; coverage and validity; and reporting mechanism.

According to Social Welfare Secretary Corazon Ju-liano-Soliman, the DSWD shall only accredit legitimate CSOs, that is, those that are reputable, qualified and capable to implement programs or projects using gov-ernment funds.

The government recognizes that CSOs that work closely with communities, have a better knowledge of the local situation and are often in a better position to implement projects.

CSOs play a critical role in preparing the communi-ties not only to receive government funds, but also for them to eventually manage and implement government projects by themselves. To be accredited, a CSO must meet the follow-

ing criteria: M u s t have operat-ed for at least three years No de-rogatory re-cord with any government agencies Must not be in default or delay in liq-uidating any funds received from any GAs, and Must not be related within the fourth civil de-gree of affinity to any DSWD official involved in the processing of its application or any official of the funding government agency. The accreditation of CSOs shall be valid only for a period of one year from the date of issuance, unless revoked sooner. Soliman clarified that the guidelines cover only the accreditation of CSOs. The selection of CSOs by GAs, the actual transfer of funds from GAs to CSOs, or the liquidation or audit of transferred funds shall be the subject of separate guidelines to be issued by the COA. “With the help of the CSOs, we in the government are able to reach and engage more people, and to connect to communities and involve them in national development plans. The CSOs, the government, and citizens are all agents of change. By working together, we can reap posi-tive results,” Soliman said.

DSWD, DBM, COA issue new guidelines for CSOs SOLIMAN: “With the

help of the CSOs, we in the government are able to reach and engage more people, and

to connect to communities and involve them in national

development plans. The CSOs, the government and citizens

are all agents of change. By working together, we can

reap positive results.”

sweet delight A young bananacue vendor entices motorists with her sugar-coated variants at her sidewalk stall in Santiago City, Isabela. The countryside street foods are also popular among starving pedestrians. LEONARDO PERANTE II

briefscebu city council endorses 8 stations

for sm seaside city’s hybrid bus routeCEBU CITY—The Cebu City Council has endorsed eight bus stations for the “high-quality bus transport system” (HQPTS) route from the South Road Properties (SRP) to the North Reclamation Area (NRA) in Cebu City.

The council identified the bus stations as inside the SM Seaside City at the SRP, SM City Cebu at the NRA, South Coastal Road near Fort San Pedo, near Compaña Maritima, N. Bacalso Avenue near Cebu Institute of Technology-University, City de Mari’s residential area, and at II Corso.

These locations were endorsed to the Office of the Mayor, the city’s Department of Engineering and Public Works, and the Cebu-Bus Rapid Transit project implementation unit for evaluation and approval.

“With the approval and the impending implementation of the HQPTS, and, likewise, following one of the franchise conditions set forth by the Department of Transportation and Communications, there is a need to construct a high-quality bus stations,” Cebu City Councilor Nestor Archival said. PNA

q.c. partners with poea in 5 job fairs on labor dayABOUT 15,000 domestic and overseas job openings will be made available during the forthcoming five job fairs that will be hosted by the Quezon City local government in partnership with the Philippine Overseas Employment Administration (POEA) and SM Supermalls during the celebration of Labor Day on May 1.

[email protected] Tuesday, April 28, 2015 A5BusinessMirrorEconomy

Communications Secretar y Herminio B. Coloma Jr. said Mr. Aquino issued the call during an intervention at the 26th Associa-tion of Southeast Asian Nations (Asean) Summit at the Kuala Lum-pur Convention Centre on Monday. “President Aquino reaffirmed the Philippines’s position for the Asean to take a common stand and adopt a legally binding Code of Conduct amid China’s aggressive reclamation activities in disputed territories,” Coloma said. “He [Aquino] said that Asean centrality should now be clearly demonstrated by expeditiously concluding a legally binding Code of Conduct with China that would implement salient provisions of the declaration made in 2012 by China and Asean members with claims to maritime entitlements in the South China Sea. Mr. Aquino noted that China’s reclamation activities “directly vio-lated” the Declaration of Conduct of Parties in the South china Sea, as well as the United Nations Conven-tion on the Law of the Sea [Unclos].” China’s ongoing reclamation proj-ects also cause “irreparable loss and damage to the marine environment, threatening the livelihood of people living in coastal communities,” Mr. Aquino added.

resolving conflicting claims THiS year’s Asean chairman, Ma-laysia, has expressed support for the Philippines’s position to re-solve the territorial disputes in the South China Sea in accordance with international law, including the Unclos. Malaysian Prime Minister Dato’ Sri Mohd Najib bin Tun Abdul Razak made the statement while addressing the opening of the 26th Asean Sum-

mit at the Kuala Lumpur Convention Centre, the Philippines News Agency reported on Monday. “Respect for international law, including the 1982 United Nations Convention on the Law of the Sea, must be the basis of the rules of en-gagement and activities in the South China Sea,” Najib said. The Philippines is pushing for the implementation of the Declaration on the Conduct of Parties in the South China Sea toward the conclusion of a binding Code of Conduct, and for arbitration under Unclos. “While we continue our en-gagement and cooperative rela-tionships with countries outside Asean, we need to peacefully man-age differences closer to home, including overlapping maritime claims, without increasing ten-sions,” Najib said. He said recent developments have raised concerns about the South China Sea and, given the importance of its sea lanes to in-ternational trade, it is natural that almost any occurrence there would attract global attention. “Asean must address the devel-opments in a proactive, but also in a positive and constructive way,” he added. The Malaysian leader also ex-pressed hope that progress toward the early conclusion of a Code of Conduct would be achieved. “As chairman, Malaysia hopes that we will achieve progress in our efforts toward the early conclusion of a Code of Conduct,” he said. Philippine Foreign Affairs Secre-tary Albert F. del Rosario, during the Asean Foreign Ministers’ Meeting on Sunday, called on the 10-member grouping to take immediate steps to stop China’s reclamation activities in the South China Sea. With PNA

Aquino prods Asean to ensure freedom of navigation and commerce in SCS

By Butch Fernandez

President Aquino, as expected, prodded fellow Asian leaders anew to take a firm stand to

protect freedom of navigation and commerce in the south China sea which, he warned, is under threat from massive Chinese reclamation projects in disputed territories, stretching up to the West Philippine sea.

By Cai U. Ordinario

iN a decade or so, Metro Manila will no longer be the only megac-ity in the Philippines, according to

a report released by market research group Nielsen. in the report, titled “The Age of Asean Cities: From Migrant Consum-ers to Megacities,” Nielsen said Cebu City in Southern Philippines will be the next consumer hot spot in the country. Nielsen added that cities like Johor Bahru and Kota Kinabalu in Malaysia are also examples of regional cities with burgeoning potential. “New consumption hot spots are emerging across Southeast Asia, such as clusters of industrial estates where manufacturers are leveraging cheaper land and labor,” Nielsen Southeast Asia, North Asia and Pacific Regional Direc-tor, Client Services Regan Leggett said. “This, in turn, is having a knock-on effect of attracting migrants and stimulating local economies,” Leggett added. in order for investors and other businesses to take advantage of this, Leggett said investors must start plan-ning to expand their operations or lo-cate their businesses in areas outside of Metro Manila. Leggett said brands must fo-cus on product innovations which cater to the challenges, lifestyles and requirements of rural and small city consumers. He added that they must also con-sider using e-commerce, distribution hubs and partnering with third parties to reach consumers in these regions. Leggett said efforts must also be ex-erted to adjust operations to address issues like time and space constraints, pollution health and congestion com-mon in high-density environments. Nielsen data showed that close to two-thirds of the region’s urban popu-lation, or 62.6 percent, forecast to re-side in Asean cities and urban centers of under 500,000 by 2025. “While many consumers will con-tinue to gravitate to mega and su-per cities [32-percent growth in the next 10 years], the biggest popula-tion growth will occur in cities with populations between 1 million and 5 million,” Nielsen said. Across Asean, the combined popu-lation of these cities will increase by 51 percent between now and 2025, from 34.9 million to 52.6 million people. The population in large towns and small cities of less than 500,000 will increase by 18 percent to 231.8 million which, when combined with the esti-mated 324.3 million rural population, will account for around 80 percent of the Asean population.

Cebu City seen to emerge as next ‘megacity’ in PHL

BUDgeT Secretary Florencio B. Abad has approved the release of P592 million to

fund various rehabilitation projects in regions still recovering from the damages of previous typhoons Ma-rio (international code name Fung-wong) and Luis (international code name Kalmaegi) that hit the country in September 2014.

The funds will be released to the Department of Social Welfare and Development to support rehabilita-tion efforts in Regions 1, 2, 3, 4A, 4B and the Cordillera Administra-tive Region.

Abad said there are still com-munities that were affected by previous calamities like typhoons Mario and Luis that need to im-prove livelihood prospects and to minimize future damages as part of the government’s so-called build back better policy.

Luis hit the Philippines on September 14, 2014. This was

followed by Mario, which hit the Philippines on September 19 of the same year.

The funds will be covered by the 2015 national budget. Of the total amount, P326 million will be used for cash/food for work activities for some 171,381 families.

At the same time, P131 mil-lion of the fund will be allocated for the damaged houses of some 3,874 families and partially dam-aged houses of some 18,433 fami-lies under the emergency shelter assistance program. At least P107 million will be allocated to build permanent shelter for some 1,522 families.

Abad said those affected by Ma-rio will get the bulk of the fund as-sistance worth P529 million and the remaining P63 million will be allocated for families affected by Luis. Of the amount allotted to the Mario programs, a big chunk of the P529-million release was given to

Region 1, which got P544 million, or 92 percent, of the total amount.

Abad stated, “given that our country is prone to disasters like typhoons, we need to provide proj-ects that not only help our people recover from the aftermath but also prepare them for future calamities. This is to ensure that their lives will experience minimal disrup-tions as much as possible during future disasters.”

He said the P592-million re-lease is part of the P14.0-billion Natural Disaster Risk Reduction and Management (NDRRM) Fund under the fiscal year 2015 budget. The NDRRM Fund is supposed to be used by the national government and its departments, agencies and bureaus, and local government units for relief, rehabilitation, re-construction, and other works or services in connection with the oc-currence of natural calamities and other disasters. Estrella Torres

Budget dept OKs release of P592 million for typhoons Mario, Luis rehabilitation

apec meeting in bacolod to center on disaster risk financeBACOLOD CITY—Officials and delegates from member economies of the Asia-Pacific Economic Cooperation (Apec) will tackle disaster risk financing when they meet at the SMX Convention Center here on April 29 and 30. The discussion, which carries the theme “Disaster Risk Finance-Apec Roadmap of Resilient Economies,” is jointly organized by the Department of Finance, the Apec Business Advisory Council, and the Asian Development Bank. The discussion opens on Wednesday with a session on the microfinance landscape in the Asia-Pacific region that seeks to provide a background for Apec member- economies, using the Microinsurance Network’s World Map of Microinsurance. PNA

The job fairs will be conducted simultaneously in four SM malls in Quezon City (North Edsa, Fairview, Novaliches and Santa Mesa) and at the M-Place Mall at Mother Ignacia Avenue, from 10 a.m. to 4 p.m.

In the conduct of the said job fairs they adopted the theme: “Araw ng Paggawa, Trabaho Para sa Manggagawa,” which meant to focus on creating job opportunities on Labor Day.

The city’s public employment services office said that the said Labor Day job fairs will offer a wide array of job vacancies ranging from janitorial to managerial positions. For local manpower pooling, available job postings are for call center agents, accounting clerks, office staff, service and kitchen crews, cashiers, baggers and sales personnel.

For overseas employment, those most needed are domestic helpers, skilled workers and heavy equipment operators.

unpolluted river A woman finishes a pile of laundry at a riverbank in Laguna on Sunday, a reminder to most riverside residents how their parents or grandparents used to wash their clothes. ALYSA SALEN

spic and span A worker stands on a scaffolding erected at the World Trade Center in Pasay City as he cleans the newly renovated façade of the center. ALYSA SALEN

Tuesday, April 28, 2015

OpinionBusinessMirrorA6

Getting the Fil-Ams back home

editorial

DEPENDING on which study you have to run across, the Philippines is either one of the best retirement destinations in the world or one of the worst.

It could be a matter of perspective. One web site that examines and rates global retirement locations says, “If you come from another country and cul-ture and decide to live here [the Philippines], adjusting yourself to the culture here can be quite a chore. The pace of life here may also be slower than what you are used to.” Another though talks about how easy it is for both Western-ers and Asians to adapt to Filipino culture because we have a blended mix of East and West.

However, all agree that the Philippines is one of, if not the best, in regard to cost of living. It is not that our country is the least expensive but that foreign retirees find that they get a big bang for their money.

The Philippine Retirement Authority (PRA) was established in 1985 and has gone through several structural changes and is now an attached agency of the Department of Tourism (DOT) and placed under the supervision of DOT secretary. The mandate of the PRA is to encourage and facilitate both foreign nationals and Filipino balikbayan to retire in the country.

The PRA touts the fact that “27,000 foreign retirees from 107 countries have chosen, and live in the Philippines through the Special Resident Retiree’s Visa.” That does not sound like a huge success after so many years.

International Living is a company that has been proving information for people wanting to live overseas for more than 30 years and is particularly focused on retirement living. In their Global Retirement Index for 2014, the Philippines ranks 17th with a score of 80.8 behind regional neighbors of Ma-laysia (No. 3 in the world) and Thailand in the 10th spot.

And in what categories does the Philippines show weakness: climate, real estate and “special benefits.”

There is not too much we can do about the climate. Real-estate fig-ures are distorted by suing Metro Manila data and yet by also saying that Dumaguete City is the best place to retire in the country in part due to great property values. What is interesting is that almost all of the coun-tries in the top 10 offer incentives including discounts on health care, public transport, airfares, entertainment, utilities, some duty free goods importation, and the like.

However, the largest market for retirees is our own overseas Filipinos. The PRA’s main thrust is not toward encouraging overseas Filipinos to return to their home country and that is unfortunate.

Much more effort should be placed on getting our “Fil-Ams” to come home rather than selling the Special Resident Retiree’s Visa to foreigners.

Second of three parts

DURING the “Araw ng Kagitingan” celebration on April 9, ambassadors of the United States and Japan renewed their pledges of defense cooperation with the Philippines,

particularly in light of new threats in the region.

CYCLES, an event or set of events that happen repeatedly at regular time intervals, are an integral part of human and natural existence.

Why we need to strengthen the police, military

Understanding business cycles

THE EnTrEprEnEurManny B. Villar

Japanese Ambassador Kazuhide Ishi-kawa cited a memorandum of defense agreement which was signed between his country and the Philippines in January.

The agreement, according to Defense Secretary Voltaire Gazmin, was similar to the Enhanced Defense Cooperation Agreement between the Philippines and the US, which provided for a framework for the defense relations and strategic partnership between the two countries.

Both the Philippines and Japan have ongoing maritime and territorial disputes with China. The difference is that Japan has the capability to face up to China.

On April 20 Armed Forces of the Phil-ippines Chief of Staff Gen. Gregorio Pio Catapang Jr. said China was continuing to drive Filipino fishermen out of Pana-tag Shoal in Masinloc, Zambales, and blocking supplies to Philippine Navy personnel stationed at Ayungin Shoal in the Spratly Islands.

Catapang made the revelation

during the formal opening of the expand-ed “Balikatan” Exercises 2015 between the Philippines and the US.

The concern among defense officials is that the Philippines may lose access to its claims in the Spratlys if China does not stop its reclamation activities in the West Philippine Sea. The move by the Philippines to bring its dispute with China to the United Nations has not de-terred China from pursuing its expan-sion in the resource-rich Spratly Islands.

Here at home, the government con-tinues to contend with a decades-long communist insurgency. It is also trying to finally establish peace in Mindanao via an agreement with the Moro Islamic Liberation Front. The internal threats to peace and security also include criminal activities, which propagates an atmo-sphere of fear.

These circumstances make it urgent and necessary for the government to strengthen the police and the military.

Most people have at least a passing familiarity with the biblical book of Ec-clesiastes, probably written in the 3rd century before Christ. The author writes “All things have their season” and, more literally, “There is a specific time for ev-ery activity under heaven.”

Often we relate this to the “time to be born and a time to die” idea, but it is much deeper than that. It is about cycles.

Our “ancient” ancestors knew clearly that cycles were all round us and that they were important. Multiple civilizations built structures to help them keep track of the cycles. People needed to know the duration and timing of natural cycles in order to survive. A crop planted at the wrong time of the year would have meant disaster and death.

Animals and birds migrate at regular cycles. Fish spawn according to cycles. Rivers flood at regular intervals that could be measured and tracked. The cycles that our ancestors could not fig-

ure out—eclipses and comets—created panic. Their economies depended on un-derstanding and following these cycles.

Even the most advanced ancient civi-lizations never said: “We are so smart. We can break and control the cycles.” Yet that is what “modern” governments have tried unsuccessfully to do for the last century.

The business cycle is the expansion and contraction in the amount of busi-ness activity over a period of time. This cycle is ignored only at extreme peril.

About a decade ago, a few bakers in the US started making cupcakes and found a successful market. Success breeds competition and more cupcake bakeries sprouted up. For a few years everyone, the good as well as the bad bakers, was getting rich baking cupcakes.

But consumer tastes are always changing. The cupcake business peaked and started to decline. The first to go were the bakers producing the least desirable

This is not to say that we should gear up and wage war against anybody who may challenge the authority of the govern-ment or the sovereignty of the country.

A strong police and strong armed forc-es will be more respected in dealing with any internal or external threat, such as in deterring crime, pursuing lawless ele-ments, negotiating resolution of a conflict or resolving peace problems. A country that does not command respect for its police and military is a very weak country.

As I said last week, pep talk is not enough. There should be actual im-provement, beginning perhaps, with the upgrading of the salaries of police-men and soldiers. It is also time to hire young soldiers to replace those who are ending their tour of duty, and to cope with the security requirements. With enough soldiers, the military will be able to permanently station troops in strategic areas instead of withdrawing soldiers from one camp and deploying them to far areas when conflict erupts.

The Mamasapano tragedy raised questions about the weapons and equip-ment issued to both the police and the military. Do their guns shoot right? Do their grenades explode? When the troops are wounded, are helicopters ready to evacuate them? Are field hospitals ready to treat them? Do all the policemen have reliable weapons?

In reaction to the harassment of fishermen in Panatag Shoal, Catapang cited the need for the Philippine Coast Guard and other agencies to escort the fishermen.

The question is whether we have the resources and capability to do that. We have seen photos of the modern ships

used by China in driving away our fisher-men and blocking the Philippine Navy’s supply ships in Ayungin. That’s only one of the challenges to our security and in-tegrity as a sovereign nation.

In an online article, GlobalSecurity.org said that in 2010 “the Philippines were in the ridiculous position of contest-ing Chinese claims in the South China Sea, without a single fighter aircraft to defend Philippine claims in what it terms the West Philippine Sea.” (GlobalSecuri-ty.org is the leading source of background information and developing news stories in the fields of defense, space, intelli-gence, weapon of mass destruction, and homeland security.)

The government’s national budget for 2015 appropriates a total of P144.5 billion for the Department of National Defense, the third biggest budget recipi-ent after the Departments of Education and Public Works and Highways.

The PNP, which is receiving P70.76 billion as its share of the budget of the Department of the Interior and Local Government, needs 60,000 new recruits to beef up with 148,000-man police force to keep up with the growing population.

Hundreds of billions more will be needed before we can strengthen our police and military enough. This is an objective that must be pursued because the consequences of having a weak police and military are wide and far reaching, and go beyond peace and security. 

To be continued

For comments, e-mail [email protected]  or visit www.mannyvil-lar.com.ph.

product. Then others decided to cash out and move on to other ventures. At the bottom of the “cupcake cycle” were those bakers who had the better products and a sustainable market share.

That is comparable to the lechon manok and the pearl shake business here in the Philippines.

But two decades or more ago, the experts in the government decided that they could control and manipulate the business cycle. Japan would not let their economy naturally contract and flush out marginally unsuccessful busi-nesses after the peak in the 1980s. The result was that the “bad businesses” have been a drag on the Japanese economy, and public funds were used to support the losers. The same thing happened in South Korea leading up to the 1997 Asian Financial Crisis.

Imagine if the Philippine government had taken the same approach to the “pearl shake business cycle.” We would have hundreds of pearl shake kiosks, none making any significant profits and both public and private money would have been diverted away from more useful and new enterprises like siomai kiosks for example.

The US National Bureau of Economic Research says the average cycle in the US is 60 months up and 11 months down. However, as we have seen, government intervention can change that time period usually for the worst.

A nation’s general business cycle can be smoothed if capital can easily flow

from one sector into another without government interference. While pearl- shake kiosks are in decline, a rise in the siomai business could keep the fast-food kiosk business growing. That is what has happened in those economies like the Philippines’s that are not pushed in a particular direction by the government.

Successful business owners can feel the changes in the business cycle and can make profitable adjustments. It is like a restaurateur who knows when it is time to make changes to the menu to keep the business growing.

Stock markets also have cycles that are usually not realized or ignored by even professional investors. Our local market runs on approximately a four-year up and one-year “not up” cycle. We are on year two of the up phase.

On a personal note, I had to visit the dentist last week. My good friend Dr. Anselmo Tripon Jr. scolded me for not having been in since 2010. Dental work is not high on my list of priorities. But Dr. Jun is the best dentist on the planet. I know because I have been to dentists all over the world. I rarely make a per-sonal recommendation, but he really is the best. His clinic is in Makati at Bel-Air Dental Care. Trust me on this one.

E-mail me at [email protected]. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

OuTSIDE THE BOXJohn Mangun

FIL-AMS

04282015

Sabrina Kathryn Anonas

millenniAl univerSe

Tuesday, April 28, 2015

[email protected]

Picking up the pieces

THERE will be times when you unexpectedly bite on a granule of black pepper. There will be times when you lose a taste for life.

By Michael Lewis | Bloomberg View

THE first question that arises from the Commodity Futures Trading Commission’s (CFTC) case against Navinder Singh Sarao is: Why did it take them five years to bring it?

ABOuT TOWnernesto m. Hilario

A day becomes just another num-ber crossed out on the calendar. Your hours are spent doing some chores but you work on autopilot, so much so that birthdays and holidays are forgotten. There will be times when you even forget to take care of your-self because you can’t bring yourself to care. This happens when difficult problems get the best of you. When it does, your sanity depends on whether you solve it or not. In some cases, you don’t.

To some, the problem could be a failing grade, a broken promise, a broken dream, a breakup, a fallout

with a friend, or death of a loved one. It could be the simplest problem for others but, for you, it could mean the end of the world.

When the problem passes, you see the damage left in its wake. You know you have to start rebuilding but, instead of addressing the situ-ation, you get overwhelmed by ev-erything. The question is, how do you start over?

The first thing you might want to do is reestablish your connec-tions with friends and family. Let them know you’re not okay. Let your friends in; it’s okay to have them drag

A guy living with his parents next to London’s Heathrow Airport enters a lot of big, phony orders to sell US stock-market futures; the market promptly collapses on May 6, 2010; it takes five years for the army of US financial regulators to work out that there might be some connection between the two events. It makes no sense.

A bunch of news reports have suggested that the CFTC didn’t have the information available to it to make the case. After the flash crash, the commission focused exclusively on trades that had occurred that day, rather than orders designed not to trade—at least until some mysteri-ous whistle-blower came forward to explain how the futures market ac-tually worked. But this can’t be true.

Immediately after the f lash crash, Eric Hunsader, founder of the Chicago-based market data company Nanex, which has access to all stock and futures market or-ders, detected lots of socially dubi-ous trading activity that May day: high-frequency trading firms send-ing 5,000 quotes per second in a single stock without ever intending to trade that stock, for instance. On June 18, 2010, Nanex published a report of its findings.

The following Wednesday, June 23, the web site Zero Hedge posted the Nanex report. Two days later the CFTC’s chief economist, Andrei Kirilenko, e-mailed Hunsader. “He invited me out to D.C. and I talked with everyone there [and I mean ev-eryone—including a commissioner],” Hunsader says. “The CFTC then flew

out a programmer to our offices where we showed him how to work with our data. Took all of a day. We sent him back with our flash crash data, and that was pretty much the last we heard about that project.”

In October 2010 Hunsader was still poring over data from the flash crash. “Between October 7 and Oc-tober 14, I noticed Sarao’s spoof-ing,” he says. Hunsader assumed it to be the work of an algorithm of some large high-frequency trading (HFT) firm—as this sort of decep-tion had become common practice for big HFT firms. He told the CFTC about it in a phone call—but that they hadn’t discovered it already for themselves surprised him.

“It’s important to know the CFTC had our data, and the ability to use it in August 2010,” Hunsader says. “We were focused on stocks [the CFTC does futures], so they should have seen it right away.”

Which raises another obvious question: If you are going to sit on this information for five years, why not sit on it forever? The people at the CFTC who decided to come forth, five years after the fact, with this new and improved explanation for the flash crash, must have known they would be creating a controversy with themselves at the center of it. It’s actually sort of brave of them.

They’ve been ridiculed in the news media and will no doubt soon be hauled before various congres-sional committees. They’ll have annoyed their colleagues at the Securities and Exchange Commis-sion (SEC), who now look like even

you out of bed to go and have fun. If your friends want to help you, let them. Listen to them and don’t be afraid to ask for advice.

Next, try to go out a little. You can take a friend or go alone. It doesn’t have to be a long road trip to a province. In fact, it could just be a 30-minute walk to the park or a trip to the mall. There are a lot of new things out there that might catch your attention to distract you from the limbo you’re in.

Then, you could try expanding your hobbies. Find something new to do that will challenge you. You could go to the gym to get the abs you’ve been dreaming of having. You could hone your skills and talents, like singing, dancing, drawing or writing. You can even indulge your-self in bingeing on playing video games or watching in marathon a TV series or a movie or two with a bunch of friends.

Another would be setting goals and reaping achievements. Find contests to join or projects to do that will make you feel satisfied af-terward, regardless of winning or

losing, or whatever project it is that you’re making.

Last, invest in yourself. Make sure you spoil yourself a little every now and then. You deserve a little something for yourself. It could be a new set of clothes, chocolates, books, eating out, or an adventure outside the city.

Yes, you can wallow in self-pity, sadness and anger for a while. But remember, these can’t last forever. You will still have to come up to the surface. You must pick up the pieces, however difficult that may seem.

Just know that no matter how bad a problem may be, there are still a lot of things worth getting up in the morning for.

Editor’s Note: Millennials have kicked out baby boomers out of the room but we haven’t heard from them. Hence, every week, this space would devote a textual gramophone for the 15- to 29-year-olds. If you belong to this generation, send an 800-worded essay to [email protected]. Editorial rules apply.

greater fools than they did before, for not bothering to mention in their report on the crash the vari-ous nefarious activities of algorith-mic traders, and instead offering up as the primary cause of the crash a stupid mistake made by a money manager in Kansas. The authors of the SEC report either consciously ignored or did not bother to acquire from the CFTC a lot of accessible, and damning, information about what was happening in the US stock markets the day of the flash crash. The world will now want to know why they did this. (And why we should not instantly listen to Paul Volcker and fold these two regula-tors into one.)

But it’s unfair to dwell too long on the regulators. Financial regulators, like editorial writers, are at best the markets’ last line of defense; they are less inclined to join any battle than they are to wander in afterward and shoot the wounded.

Traders who seek to manipulate the US stock market are meant to encounter resistance from the mar-ket itself. During the flash crash, Navinder Sarao apparently used Jon Corzine’s now-defunct MF Global to place orders and clear trades. Why didn’t MF Global see what he was up to, or at least call him to ask him about it? There’s now a big business on Wall Street of firms renting out their HFT infrastructure to prop shops. Does that business depend on the brokers paying no attention to what their customers are doing? Do the big Wall Street firms that rent out their technology bear any responsibility for what their cus-tomers do with the weapons they’ve been given? For that matter, why don’t US securities exchanges as-sume any responsibility for what happens on them?

Sarao’s manipulative orders were

placed on the Chicago Mercantile Exchange (CME). Why didn’t the CME notice what was going on? Or did they notice, and simply not care, as the behavior was standard practice for their high-frequency trading clients?

Then there is the biggest ques-tion of all: How can a guy working from his parents’ house in subur-ban England whose only actionable orders were to BUY stock-market futures cause such a sensational collapse in US stocks? On the day of the flash crash, Sarao never actually sold stocks. He was trying to trick the market into falling so that he could buy in more cheaply. But whom did he fool with his trick? Whose al-gorithms were so easily gamed that they responded to phony sell orders by creating a crash? Stupidity isn’t a crime. Still, it would be interest-ing to know who, at this particular poker table, on this particular day, was the fool.

It would also be interesting to know how it occurred to Sarao that his trick might work. There’s a fabu-lous yet-to-be-told story here, about a smart kid in the UK who somehow figures out that the machines that execute the stock-market trades of others might be gamed—and so he games them. One day while he is busy trying to trick the US stock market into falling, the market collapses, more sensationally than it has ever collapsed. And instead of digging some hole in Hounslow in which he might hide for a decade or so, or flee-ing to Anguilla, where he has squir-reled away his profits, he stays in his parents’ home and keeps right on spoofing the US stock market—and then is shocked when people turn up to accuse him of wrongdoing. He’s not some kind of exception to the standard operating procedure in fi-nance. He’s a parody of it.

edgardo J. Angara

MANILA Water Corp. has filed a Notice of Claim with the national government through the Department of Finance (DOF) seeking compensation for financial losses arising

from the recent Appeals Panel decision upholding the position of the Metropolitan Waterworks and Sewerage System (MWSS) to declare it (Manila Water) as a public utility, thus adversely affecting its rate of return.

IN his autobiography, Mark Twain emphasized that a person’s real life is actually led in their heads, not through their actions and words. He wrote, “A person’s thoughts are his history.

These are his life, and they are not written. Biographies are but the clothes and buttons of the man.”

The story so far

Crash boys

With the privatization of MWSS in 1997, the national government said MWSS would remain as a public utility and that under the concession agreement (CA), Manila Water would be an agent and contractor of MWSS. Under this contractual arrangement, the CA assured Manila Water of a rate of return comparable to similar infra-structure concessions. These contrac-tual provisions were guaranteed by the national government, as primary ob-ligor, by way of its letter undertaking executed in line with the CA.

However, the recent decision up-holding the position of MWSS changes the fundamental character and rate of return of Manila Water. The result-ing rate of return from this change is deemed inconsistent with the original intent of the CA.

Gerardo C. Ablaza Jr., president and CEO of Manila Water, said: “The posi-tion of MWSS, as upheld by the Appeals Panel, diverges from the original intent of the CA and the representations of the national government in 1997. We now claim against this primary obli-gation of the national government to account for the impairment caused by this change.”

In its Notice of Claim to the DOF, Manila Water is calling on the letter undertaking to indemnify losses es-timated to be over P79 billion from 2015 to 2037.

“While we are pursuing our claim on the national government, we are committed to implementing the new rates set by MWSS,” Ablaza continued.

Manila Water will implement a re-duction of 11.05 percent on the aver-age basic charge of P25.07 per cubic meter, equivalent to a decrease of P2.77 per cubic meter. The new rates will be implemented in the following man-ner: negative P0.66 per cubic meter in 2015, negative P0.55 per cubic meter in 2016 and negative P0.55 per cubic meter in 2017.

Separately, a CPI adjustment of 4.19 percent will also be made to the basic water charge in 2015 equivalent to P1.08 per cubic meter. Annual CPI adjustments will continue to be made consistent with the CA.

Connecting Nlex and Slex THERE are two separate projects to link the North Luzon Expressway (Nlex) and the South Luzon Express-way (Slex), or the Nlex-Slex Connec-tor Road.

One is the unsolicited proposal of Metro Pacific Tollway Corp. (MPTC) to build a 13.4-kilometer roadway between the two expressways. The other is now being built by San Miguel Corp. (SMC) through its consortium with Citra Metro Manila Tollways Corp. (Citra).

The SMC-Citra project covers the Skyway Stage 3 of the Slex, while MPTC’s portion involves the con-struction of the four-lane elevated expressway, originally via the PNR tracks, with three exits to connect Nlex with Slex.

MPTC’s connector road, or Segment 10.2, is an 8-km mainline road from C-3 Road in Caloocan City to the Poly-technic University of the Philippines in Manila’s Santa Mesa district. It will also have a 2.6-km Port Area spur road from C-2 Road to R10 in Tondo, Manila.

This will be linked to MPTC’s Har-bor Link project, which is a 2.4-km road connecting Nlex to the MacArthur Highway and a 5.65-km road connect-ing Mindanao Avenue in Quezon City to the Manila North Harbor.

MPTC’s  road project was condi-tionally approved by the government

two years ago. President Aquino gave the go-signal to the project in January  2013, but nothing has  ac-tually moved up to now because Mr. Aquino’s subordinates kept changing the rules.

Everything was all set for a Swiss Challenge at the onset, but the project took a back seat after policy-makers said it would be easier and faster for MPTC to build its version of the con-nector road under a joint venture (JV) with the Philippine National Construc-tion Corp.

When all preparatory work for a JV had been wrapped up, there suddenly was a change of heart and the govern-ment said it would be best, after all, to pursue MPTC’s unsolicited proposal via the Swiss Challenge.

Under the Swiss Challenge, any of the interested parties other than the original proponent can win the proj-ect by making a better offer than the firm that had made the unsolicited proposal. However, the original propo-nent still gets to keep the project once it matches the best offer from among the rest of the bidders.

Given the latest delay, MNTC will have to revise the alignment of its proposed connector road to give way to the P171-billion North-South rail project, which was approved by the National Economic and Development Authority Board only recently.

This design revision and the delayed schedule of the Swiss Challenge will jack up the cost of the project by 30 percent to P14 billion from the original esti-mate of P11 billion, according to MNTC President Rodrigo Franco, and allow MPTC to complete it by  late 2017 or early 2018 at the soonest.

The Nlex-Slex Connector Road will improve transport logistics as a result of the more efficient movement of cargo, roll-on/roll-off vessels and pas-sengers in and out of the ports located in Manila, and reduce travel time from Nlex-Slex to only 15 to 20 minutes.

Investors would start flocking to the country when the projects are completed because it would enhance connectivity between our international airports and seaports, including the Subic freeport by way of the Nlex-Subic-Clark-Tarlac Ex-pressway route, the Batangas Port via Slex, and the Clark International Airport to the Ninoy Aquino Inter-national Airport.

This will, in turn, improve linkages between the key growth areas of Metro Manila, Central Luzon, North Luzon and the Clark-Subic corridor.

According to studies, the Nlex-Slex Connector Road would decongest Edsa, Circumferential Road 5 (C-5) and other roads in Metro Manila’s inner cities because these choked arteries would be freed of heavy vehicles traveling to and from the Port Area.

A travel-efficiency analysis showed that the value of time saved ranged from 69 percent to 71 percent, and savings from vehicle operating costs from 17 percent to 32 percent. 

In terms of environmental impact, the MPTC project will reduce air pollu-tion and fuel consumption, in support of the government’s climate-change agenda.

The MPTC project will not lead to massive relocations because it will use the PNR corridor as its alignment com-pared to an elevated infrastructure us-ing the median of major roads. More-over, this project will not exacerbate urban blight because areas traversed by the PNR line are mostly backyards.

E-mail: [email protected].

Indeed, some biographies, auto-biographies and memoirs are self-aggrandizing and, like clothes and buttons, merely deal with the exterior. Others, however, can be illuminating.

For instance, The Singapore Story, the first volume of Lee Kwan Yew’s memoirs, depicted the elder states-man’s far-reaching vision for his

country, also the challenges the island-nation faced in its early days after the split from the Malaysian Federation.

Minister Lee pointed to his vital role in Singapore’s rise: “The task of the leaders must be to provide or create for [the people] a strong framework within which they can

learn, work hard, be productive and be rewarded accordingly. And this is not easy to achieve.”

Some biographies capture very specific historical moments that a se-lect few are privileged (or burdened) to experience. Winston Churchill’s official biography, written by his son Randolph and noted UK historian Sir Martin Gilbert, extensively covered the UK prime minister’s childhood up to his leadership through two World Wars. That it is eight-volumes long and around a thousand words each point to the magnitude and complex-ity of the events it covers.

More important, biographies are stories about people’s lives and how they deal with the challenges of their context. Noted American biographer Walter Isaacson wrote in his biogra-phy of Benjamin Franklin, “History is a tale… not of immutable forces but of human endeavors.”

My life has been far from perfect, fraught with accident—sometimes happily so—and misadventure. But it has also been a grand opportunity to serve the Filipino people as lawyer, lawmaker and educator.

So far, I have lived quite a fulfilling life. Two of the nation’s best writers in English appear to have agreed—Nick Joaquin whose Seer of Sea and Sierra was my first biography (and ultimately among his last) and Butch Dalisay whose Edgardo J. Angara: In the Grand Manner will be launched this week.

Recently, I have had more than ample time for self-examination. Through Butch Dalisay’s work, I simply wish to share my thoughts and provide some insight on my con-text—in other words, the story of how I have lived my life so far.

E-mail: [email protected].

Water concessionaire seeks compensation for losses

By Bianca Cuaresma 

The country’s trade balance likely posted a surplus of $100 million in February

due to “favorable base effects,” according to the latest research insight of international bank Standard Chartered.

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phTuesday, April 28, 2015

JIMENEZ WANTS TO MAKEMADRID FUSIÓN MANILAA YEARLY TOURISM SHOW

By Ma. Stella F. ArnaldoSpecial to the BusinessMirror

THE Department of Tourism (DOT) is working toward making Madrid Fusión Manila

(MFM) an annual event. This was disclosed by Tourism Secretary Ramon R. Jimenez Jr. in a recent interview with select report-ers on the sidelines of the MFM at the SMX Convention Center. What’s definite is that there will be an MFM in 2016. In his closing remarks at the MFM on Sunday, Jimenez said his gratitude toward the local and foreign or-ganizers of the three-day event, the participating chefs/speakers, and the delegates to the Interna-tional Gastronomy Congress: “As everyone in this room knows, it’s difficult to express yourself when your mouth is full, but it is so easy to be profuse with thanks when your heart is full. “We will probably keep talking about this [MFM] in the months to come. And I’ve already resolved that when my boss, President Aqui-no asks me, ‘Mon, what’s cooking? I will have one definite answer—‘Sir, what’s cooking is Madrid Fusión

Manila 2016.” Separately, he told reporters that “we’re hoping to do it annu-ally. There’s every intention to do it annually. Judging from the success of this event so far, I think we can.” The DOT is trying to attract 8.2 million foreign travelers this year, dubbed “Visit Philippines Year 2015.” With the holding of the re-cent MFM, the DOT hopes to posi-tion Manila as the center of culinary and gastronomy in Southeast Asia, and thus attract travelers going on food trips. Sources in the organizing com-mittee intimated that the event will be held starting April 15, 2016, at the same venue. Jimenez boasted that the Ma-nila event was able to collect the most number of Michelin-starred chefs “in a single time anywhere in Southeast Asia.” In the culinary world, the Michelin Guide is an important benchmark for restau-rants, indicating whether their es-tablishments are worth the while of diners. Most of the Spanish and Asian chefs invited to speak at the gastronomy congress have two or three Michelin stars. (See “Manila

‘Trade balance benefitingfrom lower import growth’

The projected February surplus is an improvement from the $751- million deficit recorded in January, based on data from the Philippine Statistics Authority (PSA). Standard Chartered, however,

said import growth in February was probably dragged down by lower international petroleum prices, which could slash data on oil imports. “However, we expect electronic-goods imports to increase by double

digits for a third consecutive month, and to continue their strong perfor-mance,” Standard Chartered said. “We expect the trade balance to benefit from lower import growth, although sluggish export growth may constrain the upside near-term,” it added. In a separate research note, titled The Market Call released on Monday, First Metro Investment Corp. and the University of Asia and the Pacific said that, while the quantitative easing in the euro zone ramped up demand for imports, the country has yet to feel the impact of the economic recovery of advanced economies on exports. Because of this, the report said export growth from January to June may only be at single digit. Philippine

exports are likely to grow again by double digits in the second half of 2015. The PSA will be announcing the February trade data today.  Data from the PSA showed that the country’s total imports in Janu-ary declined by 14.2 percent to $5.1 billion, from $5.95 billion recorded in the same period last year. The PSA said the decline in to-tal imports for January was due to the slowdown in the country’s pur-chase of major commodities, which include transport equipment, fuels, iron and steel, organic and inorganic chemicals, and plastics. The balance of trade in goods in January registered a deficit of $751.54 million, lower than the $1.57-billion trade deficit in the same period last year.

“It seems that we are nearing the signing stage on that second common station,” he said, pertaining to the pro-posal of building another station near SM North Edsa, a property owned by shopping-mall magnate Henry Sy Sr.,

to end the conflict with Ayala. At the heart of this legal tussle is the feud between Ayala Land and SM Prime over the location of the common station, which is seen to boost foot traffic along the malls owned by the two companies.

The common alignment, which aims to link the Light Rail Transit (LRT) Line 1, Metro Rail Transit (MRT) Line 3 and MRT Line 7, has been in limbo ever since the transport agency reviewed the project’s technical and financial components years back.

This led to the change of the station’s location, which was initially set to be near SM North Edsa, earning the ire of the group of the country’s largest mall operator, which paid an initial P200 million for the naming rights of the station.

SM. . . Continued from A1

See “Madrid Fusión,” A2