BusinessMirror November 17, 2015

WITH seven months left in of-fice, President Aquino is tak-ing measures to strengthen

his infrastructure legacy and boost the resilience of one of Asia’s fastest-growing economies. The government aims to award by the end of the first quarter at least 60 per-cent of the $7.6 billion in public-works projects planned for 2016 before a pre-election ban comes into force, Public Works Secretary Rogelio L. Singson said. The President also signed an order on November 13 to ease access for foreign contractors to deals worth at least P3 billion ($64 million) by allowing them to apply for a permanent license to poten-tially work on multiple projects instead of having to apply on a per-project basis, he said.

“These measures will help fast-track projects to ensure they meet deadlines

and avoid delays we have seen in the past,” Singson said in an interview on Friday in Manila. “We try to do a lot of the bidding before the end of the year. We are work-ing on pre-construction activities: detailed engineering, bidding—activities short of an award.” The Philippines joins neighbors, like Indonesia, where governments are under pressure to step up spending to support their economies, amid faltering global growth. Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr., who has held interest rates steady this year, said last week there is no urgent need to ease policy as state outlays pick up.

Weak growthPRESIDENTIAL elections are due to be held in the Philippines in May and the government will be banned from award-ing public-works contracts from around

the end of March. Delays in government spending earlier this year hobbled the economy, with the World Bank forecasting growth will slow to 5.8 percent this year, the weakest since 2011. Faster state outlays will help ensure an expansion of as much as 8 percent is within reach next year, BSP Deputy Gov-ernor Diwa C. Guinigundo said last week. The government is also speeding up projects under its Public-Private Part-nership Program, with officials work-ing on an executive order that will give the winner of the Laguna Lakeshore Expressway Dike project the right to sell reclaimed land, which is part of the contract, Singson said. The public works agency’s budget is almost half of the P766.5 billion in in-frastructure spending planned for 2016, which is equal to about 5 percent of gross

B B F

THE governments of the Philippines  and Chile on Monday agreed to expand

cooperation in natural resource and energy development, among other joint ventures forged dur-

ing bi lateral ta lks hosted by President Aquino for visiting C h i le a n P res ide nt M ic he l le Bachelet in Malacañang. During  state visit rites at the Palace,  Mr. Aquino and Bachelet stood witness, as Trade Secretary Gregory L. Domingo and  Chile’s

Minister of Foreign Affairs Heral-do Muñoz signed a letter of intent (LOI) between the Department of Trade and Industry (DTI) of the Republic of the Philippines and the Ministry of Foreign Affairs of Chile on enhancing trade relations. Communication Secretary Her-

minio B. Coloma Jr. said the LOIpaves the way for the Philippines and Chile to “commence discus-sions on developing a framework for negotiating a mutually benefi-cial trade agreement that is flex-ible and pragmatic as to its depth and scope, which may contribute

to an increase in trade, in goods and investments, and the promo-tion of technical cooperation in areas of mutual interest.”

Before that,  Presidents Aqui-no and Bachelet first witnessed the signing of a separate agreement on disaster reduction and manage-

ment by Defense Secretary Voltaire T. Gazmin and Muñoz. The Palace said the memoran-dum of understanding aims to strengthen cooperation between the Philippines and Chile in the area of disaster-risk reduction and

S “J ,” A

PESO EXCHANGE RATES US 47.0320 JAPAN 0.3835 UK 71.6438 HK 6.0679 CHINA 7.3787 SINGAPORE 33.0327 AUSTRALIA 33.4771 EU 50.5688 SAUDI ARABIA 12.5416 Source: BSP (16 November 2015)

www.businessmirror.com.ph Thursday 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEK Tuesday, November 17, 2015 Vol. 11 No. 40

A broader look at today’s businessBusinessMirrorBusinessMirrorMEDIA PARTNER OF THE YEAR

2015 ENVIRONMENTAL LEADERSHIP AWARD

UNITED NATIONSMEDIA AWARD 2008

Consumer spending to boostApec region’s growth in 2016

B C N. P M G P

ASIA Pacific’s growth next year would be driven largely by ro-

bust consumer spending and steady government spending, an official of the Asia-Pacific Economic Cooperation (Apec) Public Support Unit (PSU) said on Monday.

Apec Secretariat Director for Policy Support Dennis Hew said in a media briefing that the region’s local output, as measured by GDP, would grow by 3.4 percent in 2016 from the projected 3.1 percent this year.

“GDP growth and trade volume in the region are expected to be moderate in 2015 and will recover in 2016,” Hew said.

For this year, Hew said GDP growth in Asia Pacific would settle at 3.1 percent, lower than the 3.4 percent recorded in 2014. He also said the volume of exports this year is expected to grow by 2.3 percent, slower than the 4.4-percent hike posted in 2014. In May a report published by the Apec PSU indicated that domestic factors, such as robust household spending and steady government consumption, and investment would boost GDP

Aquino, Bachelet agreed to expand Manila-Chile joint ventures 

Aquino in final infra push as election nears MANILA DOES A LOTOF STRATEGIC ‘FIRSTS’IN APEC HISTORYTHE Philippines is again trailblazing the Asia-Pacific Eco-

nomic Cooperation (Apec) organization by introducing several strategic initiatives considered to be the “firsts”

in Apec history. Tony Tan Caktiong, chairman of the Apec 2015 CEO Sum-mit, said the “Apec gathering is one opportunity event for the Philippines to introduce itself to the world again in a big way by pushing for strategic initiatives that could be the first of its kind.” Inclusion of small farmers. Caktiong himself, who built the food chain giant Jollibee, is also known for developing the first of its kind in the local food industry—among the first in the fast-food chain and for popularizing a local brand that capitalized on the Filipino taste, the Filipino culture and values, and thus creating a Fili-pino niche market that has gone global, wherever Filipino

S “A,” A

WELCOME TO THE PHILIPPINES The Ninoy Aquino International Airport Terminal 1 is one of the designated landing areas for leaders attending the 2015 Asia-Pacific Economic Cooperation meeting that begins in earnest today. Various reports cite many scheduled flights were canceled because of the event. NONIE REYES

INSIDE

D1

Life Life Life Life BusinessMirror

Life Tuesday, November 17, 2015| [email protected]

Life | [email protected]

Life Editor: Gerard S. Ramos

Life Life Life Life The good we do today

DEAR Lord, yesterday is over and tomorrow is far away, but we remain faithful and committed

to the good we do today. We must line up the following to honor and praise You: An early morning mass and receive You at Holy Communion; visit the sick; go to elderly homes and donate goods for them; round up street children and treat them for a meal and volunteer in activities in the community, to name a few. Help us, Lord, to add to the good we do Life name a few. Help us, Lord, to add to the good we do Life today and that we may do it every day. Amen. Life Life Life Life Life Life MY DAILY PRAYER, LOUIE M. LACSON

Word&Life Publications • [email protected] Life STEPHEN COLBERT LAMPOONS

MAINSTREAMMEDIA’S PENCHANT

FOR CENSORING ART»D4

B A BChicago Tribune

T HEY can be hosts to benign—or HEY can be hosts to benign—or HEYunpleasant—tasks. But a desk can be one of the most important purchases in a home. Design experts say that, far

from being an afterthought once main rooms are furnished, a desk and its surrounding atmosphere warrant careful planning.

“If you don’t feel compelled to be in that space, you’re not going to use it,” said Annie Brahler, owner of interior design company Euro Trash. “It’s going to make you better at everything else if your workspace feels comfortable to you.”

A desk should re�ect what you hope to achieve, and ideally, it should inspire you in some way. What to consider:

n PURPOSE First, think through what you’ll want to do. Is this desk just for sorting mail? Enduring long hours on a project? Maybe you’ll need heavy �ling cabinets for papers or a sleek top for three computer screens.

“Form should always follow function,” said Brahler, who is based in Jacksonville, Illinois. “�e �rst thing someone should do is write down what kinds of things they perform at their desk.”

“�en,” she added, “they have to think about the way to access things.”

n STORAGE Pamela Sherman, founder of Chicago Organized Home, said to think about what you’ll want to put in the desk—will you need a small pen drawer or deep cabinets?

“You want to try and strike a balance, because You want to try and strike a balance, because Yyou don’t want to have a desk full of junk drawers,” she said.

For example, Brahler said she draws designs at a di�erent desk than where she pays her bills. One of her clients, a former pro baseball player and businessman, preferred hard copies in �les. So her company added �le storage to a customized desk.

“He wanted to be able to open that drawer and see his �les,” she said.

n SIZE Size depends on space, of course. A studio apartment might invite a secretary desk with a lid, or a leaning shelf tower with a desktop that pulls out.

“�at way you’re just optimizing every inch of space, and you might not need a full desk surface for writing,” Sherman said.

Some people want an L-shaped desk, said Shannon Calderon at ergonomic furniture store �e Human Solution, because of the space it allows. But she noted that the space often isn’t all reachable.

n SURFACE The top of a desk is a focal point. Johanna Mele, lead home stylist at upscale retailer West Elm, suggested considering whether the surface needs to fit a laptop or piles of

spread-out paperwork. For those who mostly rely on computers, she recommended a smaller desk.

But those who need to stretch out should look at a larger size or even a small dining table, Mele said. Pair a small dining table with an upholstered desk chair, she suggested. And she noted that West Elm provides free at-home advice from stylists in its Design Lab.

n HEIGHT How high your desk is might have an effect on your posture and, possibly, productivity. The standard height is about 29 inches, experts said. These days, however, many people request counter- or even bar-height, in the range of 36 to 42 inches, Mele noted, so they can stand.

Finally, think about comfort. Calderon at the Human Solution, which sells height-adjustable desks, suggests making sure the height is at a level that comfortably accommodates you.

If it’s adjustable, ensure it’s easy to use. “You’re less likely to use the sit-stand capabilities You’re less likely to use the sit-stand capabilities Ywhen the desk is cumbersome to operate,” Calderon noted.

And be creative when choosing materials. Remember that you don’t have to purchase something that was created without you in mind.

“Really think of that space as your own,” Brahler said. “You have to really be personal and pay You have to really be personal and pay Yattention to yourself and give yourself a little bit of indulgence, as well.”

A SK anyone who has lived in a developed community all his life and you are sure to

hear many of them saying how they now �nd it rare for developers to take care of their clients after the turnover of their property. �is is what sets Eton Properties apart from other companies. �e customer is always at the core of the company’s every undertaking, even long after

the turnover has been done.Indeed, after-sales service in

the real-estate industry has many facets—from property manage-ment and housekeeping to leasing services and documentation. But Eton Properties goes the extra mile in after-sales service by sponsoring events in the commu-nity that aim to enrich the lives of the residents. Each event is well

L IBERATE a roll of humble cotton string from your pantry to make our two sweet projects.

WRAPPED JARS

HOLD �owers, pencils, coins and more in these attractive containers. �ey make great gifts, too. Start with a clean jar or bottle. Glue about 1/2 inch of the end of a ball of butcher’s twine to the side of the jar. Wind the string around the jar, cut the string, and glue the end to the jar. Decorate the twine with acrylic paint (kids can paint freehand or use stamps), or for a faded, ombre e�ect, layer on coats of watercolor.

FUZZY THE STRINGMAN

OUR twine snowman will keep smiling long after the snow melts. Make the three sections of the stringman’s body by crumpling one, two and three pieces of white paper into tight balls. Wrap each with string, tucking in the ends with a bit of glue. Insert one end of a toothpick into the largest ball, then slide the medium ball over the other end. Do the same with a second toothpick and the smallest ball. Tuck twig arms into the string and glue on paper features, as shown. Display the stringman on a jar lid. TNS

❶ BOX Frame Counter Marble Table from West Elm.

WEST ELM/TNS

❷ ANNIE BRAHLER designed this office for a client who wanted a vintage desk that reminded her of a horse barn with its warm, worn wood.

BJORN WALLANDER/TNS

❸ SADDLE Office Chairs from West Elm.

WEST ELM/TNS

How to shop for a desk How to shop for a desk

Two easy twine projects for a festive season

RESIDENTS at 68 Roces were pampered by spa therapists from The Body Spa and Waxing Salon, free of charge.

Going the extra mile for residentsthought-out and carefully crafted to cater to the specific needs of residents and unit owners.

In after-sales service, even the simplest of gestures matter. �is year, Eton Properties kicked o� its after-sales program on Valentine’s Day. Residents of 68 Roces, Eton Residences Greenbelt and Eton Parkview Greenbelt received chocolate treats from the company—a simple gesture that generated smiles among unit owners and tenants.

In North Belton Communities in Quezon City, the company sponsored a summer basketball league and their annual �esta with the hopes that the activities will help foster camaraderie among the community members. Eton Properties also partnered with Starbucks Co�ee and launched “Eton Monday Brews.” On select Mondays within the year, a Starbucks Co�ee booth is set up at the lobby of chosen developments. With the help of Starbucks baristas, hundreds of residents are treated to a free cup of brewed co�ee or a tall frappuccino. It is an event conceptualized by Eton Properties to help ease the dreaded Monday blues, and to help Eton residents start their week right. Kids also have a place in the

company’s after-sales program. In Belton Place in Makati, Eton Properties organized an Easter Egg-Hunt Party and an event dubbed “Crafternoon,” an arts-and-crafts workshop for kids hosted by veteran artist Precy Brady. Both events were a complete success as both children and their parents had a wonderful time enjoying the games and the fun and creative workshop.

In upscale 68 Roces in Quezon City, a successful pampering activity, billed “Saturday Bliss at 68 Roces,” was organized on a sunny Saturday morning. �e activity featured seasoned spa therapists from �e Body Spa and Waxing Lounge. �ey rendered manicure, pedicure and back massage services to residents. �e best part? �e Eton residents enjoyed all of these services for free.

“Eton Properties focuses on value creation and fully understanding what our clients want, now and in the future,” says Martha Herrera, Eton Properties AVP for Marketing, PR, and Corporate Communications. “In line with this, we develop programs to anticipate our clients’ lifestyle needs in advance. �e after-sales program of Eton Properties is just the beginning of many more company-initiated projects aimed at enriching the quality of life of our residents.”

❶ ❷ ➌

The WorldBusinessMirror [email protected] | Tuesday, November 17, 2015

IRAQ WARNED OF ATTACKS BEFORE PARIS ASSAULT

AGHDAD — Senior Iraqi intelligence officials warned members of the U.S.-led coalition fighting the Islamic

State (IS) group of imminent assaults by the militant organization just one day before last week’s deadly attacks in Paris killed 129 people, the Associated Press has learned.

Officials from the US, French and other Wester n gover nments have expressed worries for months about IS-inspired attacks by militants who fought in Syria, the official noted. In recent weeks, the sense of danger had spiked.

Six senior Iraqi officials confirmed the information in the dispatch, a copy of which was obtained by the AP, and four of these intelligence officials said they also warned France specifically of a potential attack.

Two officials told the AP that France was warned beforehand of details that French authorities have yet to make public. “We have recovered informa-tion from our direct sources in the IS terrorist organization about the orders

issued by terrorist ‘Abu Bakr al-Baghdadi’ directing all members of the organization to implement an international attack that in-cludes all coalition countries, in addition to Iran and the Russian Federation, through bombings or assassinations or hostage taking in the coming days.

We do not have information on the date and place for implement-ing these terrorist operations at this time,” the Iraqi dispatch read in part.

Among the other warnings cited by Iraqi officials: that the Paris attacks appear to have been planned in Raqqa, Syria—the IS de-facto capital—where the at-tackers were trained specifically for this operation and with the in-tention of sending them to France.

The officials also said a sleeper cell in France then met with the attackers after their training and helped them to execute the plan.

There were 24 people involved in the operation, they said: 19 at-tackers and five others in charge of logistics and planning.

The officials all spoke anony-mously because they are not autho-rized to discuss the matter publicly.

The IS group claimed responsi-bility on Saturday for the gun and bomb attacks on a stadium, a con-cert hall and Paris cafés that also wounded 350 people, 99 of them seriously. Seven of the attackers blew themselves up. Police have been searching intensively for accomplices.

Officials in the French presi-dential palace would not comment.

Every night, the head of French counterintelligence goes to bed asking “why not today?” the French security official said.

T he Iraqi gover nment has been sharing intelligence with various coalition nations since they launched their air strike campaign against the IS group last year.

In September the Iraqi gov-ernment also announced that it was part of an intelligence-sharing quartet with Russia, Iran and Syria for the purposes of undermining the mil itant group’s ability to make further battlefield gains.

A third of Iraq and Syria are now part of the self-styled caliphate declared by the IS group last year.

A US-led coalition operating in

Iraq and Syria is providing aerial support to allied ground forces in both countries, and they are arm-ing and training Iraqi forces. The US said it is also sending as many as 50 special forces to northern Syria. Russia is also conducting airstrikes in Syria and recently endured a tragedy of its own when a Russian airplane was downed in a suspected bombing in Egypt last month, killing all 224 passengers onboard. The IS group claimed responsibility for the attack.

US Rep. Adam Schif f, the ranking member of the House Permanent Select Committee on Intelligence, said on Sunday the attack was likely directed and funded out of Syria.

France has been on edge since January, when Islamic extremists attacked the satirical newspa-per Charlie Hebdo, which had run cartoons of the Prophet Muham-mad, and a kosher grocery. Twenty people died, including the three attackers. The Charlie Hebdo at-tackers claimed links to extrem-ists in Yemen, while the kosher market attacker claimed ties to the IS group.

At the time, France’s prime

minister acknowledged “ fai l-ings” in intelligence that led to the three-day spree of horror, as criticism mounted that the at-tacks might have been avoided if officials had been more alert to the deadly peril posed by suspects already on their radar.

Experts noted that several fac-tors may have been behind the failures in January: Security ser-vices are drowning in data, over-whelmed by the quantity of people and e-mails they are expected to track, and hampered by the inabil-ity to make preemptive arrests in democratic countries.

Criticism had focused on the failure to more closely follow the two brothers who carried out the attack on the Charlie Hebdo news-paper. One had been convicted on terrorism charges and the other was believed to have linked up with al-Qaeda forces while in Ye-men. Both were on the US no-fly list, according to a senior US of-ficial, because of their links to terrorist movements.

Bernard Bajolet, the head of the French spy service, spoke during a public appearance at George Washington University in

Washington two weeks ago about the twin threats France was fac-ing, both from its own extrem-ists and “terrorist actions which are planned [and] ordered from outside or only through fighters coming back to our countries.”

General warnings about poten-tial attacks from Iraqi intelligence or other Middle Eastern intelli-gence services are not uncommon, the official said. The French were already on high alert.

“During the last month we have disrupted a certain number of attacks in our territory,” Bajo-let said. “But this doesn’t mean that we will be able all the time to disrupt such attacks.”

Obtaining intelligence about the IS group has been no easy feat given difficulties access-ing territory held by the radi-cal Sunni group. Iraqi agencies general ly rely on informants inside the group in both Iraq and Syria for information, but that is not always infallible. Last year reports from Iraqi intel-ligence officials and the Iraqi government that a l-Baghdadi was injured were later denied or contradicted. AP

can group, the Eagles of Death Metal. Less than an hour after the band began its set, a series of bangs rang out. Many thought it was firecrackers or pyrotechnics.

“Everyone thought it was part of the show, but then I saw the lead singer’s face drop before he ran off stage, and the lights came on,” university student Hanna Corbett, 21, told the Nottingham Post newspaper of Britain.

“We all just dropped to the floor. When the music stopped, there was this haunt-ing silence in between gunfire and I could see blood on the floor.” The Bataclan al-ready had a storied history, opening its doors on Paris’ Right Bank in 1865.

French crooner Maurice Chevalier of “Gigi” fame enjoyed some of his earliest successes there, before it was converted into a movie theater, devastated by fire and resurrected as a concert hall again in

‘Hell’: Famous Paris venue becomes scene of terror bloodbath the mid-1980s. Friday’s headliner was a California band whose music is far less harsh than its name, de-scribed by a cofounder as a mix of bluegrass slide guitar, stripper drum beats and Canned Heat-style vocals.

As the Eagles of Death Metal performed, at about 9:40 p.m., a black Volkswagen Polo drew up and parked outside the Bataclan, French officials said. Three occu-pants emerged from the vehicle, armed with automatic weapons and wearing belts packed with ex-tremely volatile explosives. They entered the club apparently unno-ticed amid the high-decibel music, and opened fire at the crowd.

Julien Pearce, a journalist at Europe 1 radio, also thought the pop-pop noises were a harmless

part of the act. “Then I looked back and saw the assailants...who were coming toward us with assault ri-fles and were randomly firing into the crowd,” he said on Europe 1.

“We immediately got on the ground to protect ourselves, to be less exposed.” The Bataclan had become one of the targets of the deadliest violence to hit the French capital since World War II.

That same evening outside the France-Germany soccer match in Paris’s northern suburbs, a pair of suicide bombers had already detonated their explosives, and another would blow himself up on Boulevard Voltaire, a thoroughfare in eastern Paris near the Bataclan.

The coordinated attack includ-ed volleys of Kalashnikov fire at

Parisians and others who thronged bars and restaurants on an unsea-sonably balmy November night.

In all, at least 129 people were killed and 350 wounded. France’s leaders have said their country is now at war.

In claiming responsibility for the attacks, the Islamic State group said the Bataclan had ex-pressly been targeted for its “hun-dreds of pagans gathered for a concert of prostitution and vice.”

The gunmen in the concert hall were “were very calm, very method-ical, very slow,” John Leader, 46, told Australia Broadcasting Corp. after escaping with his 12-year-old son. Two of the men worked togeth-er, one aiming and shooting while the other covered him.

“They weren’t in there shooting like in an American movie,” Leader said. “It was finding a target and then shooting, and then finding the next target and then shooting.”

After several minutes of lying still on the Bataclan’s floor, Pearce and people around him decided to move as the gunmen paused to reload. “We needed to get out of this hell, to try something, at least,” he said. “Bullets started to f ly again in our direction so we ran, crawled and got into a tiny dark room next to the stage.”

“There was no exit, so we were just in another trap, less exposed, but still a trap,” he said.

Other people escaped through the Bataclan’s side doors, some drag-ging bodies with them. One woman

clung to a second-story window, trying to get out of the line of fire.

Among those attempting to flee was the sister of French football striker Antoine Griezmann, who was playing in the game going on against Germany.

Mariesha Payne and Christine Tudhope, both from Scotland, hid in a cellar at the Bataclan for three hours. They had come to Paris to celebrate Tudhope’s 35th birthday and were standing near the stage when the shooting started.

Speaking to Sky News after they returned to Edinburgh airport, Payne, 33, said she saw bullets hit the stage. “A second round went off, most people ducked, but I just said, ‘Run, just get out of here,’” she said. AP

rises over Sinjar, northern Iraq from oil �res set by Islamic urdish Iraqi �ghters, backed by US-led air

strikes, launch a major assault on November 12. The strategic town of Sinjar was overran last year by the IS group in an onslaught that caused the �ight of tens of thousands of Yazidis and �rst prompted

AP/BRAM JANSSEN

WORLD B33

HOW TO SHOP FOR A DESK

IRAQ WARNED OF ATTACKS BEFORE PARISASSAULT

BusinessMirrorMEDIA PARTNER

LIFE D1

C A

C A

MEASURING PROGRESS Don Campbell, cochairman of the Pacific Economic Cooperation Council (PECC); Eduardo Pedrosa, secretary-general of PECC; and Tang Guoquiang, cochairman of PECC, discuss the outcomes of a survey where the majority expressed their view on key elements promoting inclusive growth, which is the theme carried by the Asia-Pacific Economic Cooperation 2015, on Monday. The three key ingredients supporting inclusive growth include the provision of public education at the primary and tertiary levels, reducing corruption, and supporting micro, small and medium enterprises. The PECC officials also discussed progress on the so-called Bogor Goals discussed at the 1993 Apec leaders’ meet in Indonesia, which aimed for free and open trade and investment in the region by 2010 for the mature economies in Apec and, by 2020, for the developing member-nations. STEPHANIE TUMAMPOS

growth in most Apec economies next year. Aside from faster GDP growth, Hew said the Apec region would also be able to increase the volume of 2016 exports and imports by 3.3 percent and 4.2 percent, respectively. GDP growth and trade, PSU said, would be propelled largely by the sharp recovery of the US. PSU said oil prices, the timing of the US monetary policy normalization and China’s slowdown are “uncertainties” that could im-pact on Asia-Pacific countries. In the April-to- June period alone, PSU said the Asia-Pacific region’s GDP grew by 3.1 percent, slightly

lower than the 3.1 percent recorded in the previous quarter. Hew said private consumption continued to be the main driver of growth across the region while trade in the region contracted in the second quarter. “Household spending remained the major driver of growth in the Apec region, while government spending and gross fixed capi-tal contribution also contributed, even as exports contracted,” Hew said. “The PSU [report] suggests that GDP growth’s responsiveness to private consump-tion has increased markedly after the 2008 financial crisis, as opposed to the weakening trade-GDP relationship,” he added. To spur

growth, non-governmental organization (NGO) Pacific Economic Cooperation Coun-cil (PECC) urged Apec countries to imple-ment structural reforms in education, labor and infrastructure. PECC, an observer-institution to the Apec Summit, presented the results of its annual Asia Pacific State of the Re-gion survey. The survey is an annual statement of PECC’s views on the ma-jor developments affecting Asia-Pacific regional cooperation. It gathered 710 responses from opinion leaders in Asia Pacific, majority of which represented the views of NGOs. According to PECC’s survey, the region

is expected to grow by 3.2 percent this year—the slowest since 2009, right before the global financial crisis. “The average growth for the region has really slowed down from 5-percent growth to around 3.5 percent. This year, we see the slowest regional growth for the Asia-Pacific region since the bounce of 2010 from the global financial crisis so there urgent need to rethink growth strate-gies,” PECC Secretary-General Eduardo Pedrosa said. “We need to consider of where the future growth will come from,” Pedrosa said. Fu-ture growth sources identified were regional integration trade initiatives such as the

Transpacific Partnership Agreement, the Regional Cooperation Economic Partnership and the Free Trade Area of the Asia Pacific. However, more than the grow th sources, PECC officials said the failure to implement structural reforms is the second most pressing concern of respon-dents of the survey. Almost 60 percent of respondents cited the difficulty of anchor-ing solid structural reforms as an impor-tant risk to growth, significantly higher than last year’s survey. The survey also revealed that 61 percent of respondents from the Southeast-Asian region regard inefficient enactment of struc-tural reforms as a challenge to growth.

BusinessMirror [email protected] Tuesday, November 17, 2015 A2

News

US-China. . . Continued from A8

France. . . Continued from A8

Continued from A1

Continued from A1

EASTERLIESAFFECTING EASTERN SECTION

OF THE COUNTRY(NOVEMBER 16, 5:00 PM)

Consumer spending to boost Apec region’s growth in 2016

migrants and workers are based. Caktiong said “this year’s Apec CEO Summit will highlight for the first time the issue on ‘inclusive-ness’ as one of top agenda pushed by the Philip-pines that aims to empower and globalize the micro, small and medium enterprises (MSMEs) by involving them in the supply chain and value chains of many big businesses.” Records show that Caktiong’s Jollibee “walks its talk” with the company’s Jollibee’s Farmer Entre-preneurship Program of involving small farmers in the supply chain, like the procurement of their pro-duce, like onions and other crops, and thus, provide a sustainable livelihood. He admits saying “it takes a radical change in mindsets as even our procurement people find this extremely difficult to implement.” After all, it is true most farmers cannot deliver yet the right volume, the right quality, the right price at the right time. Climate change now in agenda. Doris Magsay-say-Ho, chairperson of the Apec Business Advisory Council (Abac), said it will also be the first time that a Disaster Risk-Reduction Framework will be adopted by Apec as introduced by the Philippines at the September 22 conference in Iloilo City dur-ing the Apec Senior Disaster Management Officials’ Forum (SDMOF). This aims to develop climate-proof, resilient and sustainable communities, considering Apec member-countries are along the Pacific Ring of Fire that are vulnerable to earthquakes and tsunamis. Many member-countries are also gravely affected by climate change, like extreme typhoons and El Niño droughts. Thus, Abac’s 2015 theme is, “Resilient, Inclusive Growth: A Fair Deal for All,” which blends with the 2015 Apec Leaders’ Summit theme: “Building Inclusive Economies, Building a Better World.” Women no longer behind. It is also worth noting that it is the first time that a woman in the person of Magsaysay-Ho heads not only the Philippine Abac, but the Apec-wide Abac. This manifests the new determination to allow qualified women to assume

leadership, which is not possible culturally in many male-dominated Asian countries. For the first time again, women issues were pushed with the holding of the Apec Women and Economy 2015 Fora on September 15 to 18, with the theme “Women as Prime Movers of Inclusive Growth.” It was warmly welcomed with President Aquino as keynote speaker. Guillermo Luz, COOof the Apec 2015 CEO Summit, said that there are many more other firsts that have happened this year, but also stressed that even in 1996, when the Philippines first hosted Apec at Subic, the Philippines made its firsts—the first Abac meeting, following a decision in the 1995 Osaka Apec Leaders’ Meeting to form Abac. The Philippines also became the first to host the Apec-wide Abac secretariat, which it retains to date. Marathon meetings on diverse issues. It is also the first time that eight full senior ministers meetings and forums were held this year on a host of topics and issues from energy, trade, finance, transportation, educa-tion, small businesses, Women, infrastructure, etc., some topics of which were introduced for the first time in Apec. These meetings, which are preparatory meetings for this year’s Apec Leaders’ Meeting, were held at the following dates and venues in the Philippines: 1) May 23 and 24 Boracay Action Plan on MSMEs; 2) September 7 Conference on Services Coalitions in Iloilo City; 3) September 9 to 11 Cebu Action Plan of Finance Ministers; 4) September 15 to 18 Apec Women and Economy 2015 Fora; 5) September 25 Iloilo Initiatives for MSMEs; 6) October 8 and 9 on Transportation infrastructure in Cebu City; 7) October 14 Energy Ministers Meeting on Climate-Proof Energy Infra in Cebu; Apec’s gains could continue. All these aforemen-tioned agenda if implemented by Apec member-coun-tries can result in further gains and the fair inclusive distribution of those gains. But so far despite the fact Apec agreements are not binding to all, the past initiatives have enabled Apec’s combined GDP to double from $16 trillion in

1989 to $31 trillion in 2013, and now accounts for 57 percent of world GDP and 47 percent of world trade in 2012. “The main reason for this is the steady reduction in trade barriers and tedious regulations,” Luz said cit-ing Apec statistics that average tariffs alone fell from 17 percent in 1989 to 5.2 percent in 2012. Apec’s total trade thus increased over seven times to $22 trillion from 1989 to 2013, while the rest of the world grew by only 5.4 times during the same period. Apec’s Trade Facilitation Action Plan to simplify customs procedures resulted in region-wide cost reduction by 10 per cent between 2004 and 2010, which generated savings for businesses among Apec members to about $58.7 billion. This partly due to the installation of computer systems reducing pro-cessing time from 6 to 8 days to only 4 to 5 hours on the average. And for environmentalists, Apec reduced tariffs to 5 percent or less, to a list of 54 environmen-tal goods as of 2015. Although all plans are again not binding, Apec members still responded voluntarily in varying degrees of compliance. Gains benefiting Philippines. Owing mainly to the fact about 85 percent of Philippine exports and 70 percent of imports are with Apec countries, the country’s world competitiveness ranking improved by five notches in the World Economic Forum (WEF)’s 2015 Global Competitiveness study. The Philippines is even projected to be the “16th- larg-est economy by 2050,” owing to its huge population or market and rich resources, which ushers in bigger and promising opportunities for its people, says the Econo-mist magazine. The country’s Public-Private Partnership Program is also “recognized as one of the best in the world, ranked 7th out of 21 countries in 2014,” it added. Nikkei Asian Review reported that the Philippines is now considered the region’s next shipbuilding hub and has even surpassed its European rivals in 2010. By 2014 it was already the fourth-largest shipbuilding na-tion after China, South Korea and Japan, it added. The globalization of MSMEs by linking the small guys to value supply chains of global businesses will also bring benefits and multiplier economic effects to the marginalized, particularly the farm-ers in the countryside.

Manila does a lot of strategic ‘firsts’ in Apec historyState group has claimed responsibility for the attacks on a stadium, a concert hall and Paris cafes. Behind closed doors, senior diplo-mats were divided over whether Apec should issue a statement on the attacks or let each leader speak on his or her own. As a compromise, these officials decided a paragraph on terrorism would be added to the statement that is always issued at the end of the summit. One diplomat rejected any mention of the attacks in the statement, fearing it would bring Apec to the Islamic State group’s attention, said a Southeast Asian diplomat who attended the meetings. The diplomat spoke on condition of anonymity because the conversations were not intended to be public. The diplomat said the United States wanted a strongly worded response and the decision on how Apec re-sponds could still be changed when the leaders meet. They have a precedent. Apec lead-ers issued a statement in Shanghai in October 2001 to condemn the terrorist attacks in the US the month before and vowed to help combat terrorism. Introducing any security topic in Apec’s formal discussions is a touchy issue because a major member, China, fears that could pave the way for its ter-ritorial conflicts in the South China Sea to be put on the agenda. Beijing says the disputes are an Asian problem out-siders, such as the US, have no business dabbling in. China sent its top diplomat, Wang Yi, to Manila last week to ask the Philippines not to raise “contentious issues” in the Apec summit to foster Chinese President Xi Jinping’s atten-dance, Foreign Affairs Spokesman Charles C. Jose told a news confer-ence in Manila last week.

Two Filipino diplomats said Wang asked the Philippines to preserve the “political dignity” of Xi’s visit to the Philippines, which is among the most critically outspoken of five governments territorially at odds with Beijing. China and the US have been on charm offensives in Asia, an important battleground for economic and politi-cal clout. The Apec summit is one more arena where that rivalry could play out. Xi, analysts say, would be traveling to Manila on a headwind. “The US image in the region is again on the rise and China’s has taken a bit of a battering due to its actions in the South China Sea, the slowing growth of its economy,” Malcolm Cook of the Institute for Southeast Asian Studies in Singapore said. China’s massive construction works to turn seven disputed South China Sea reefs into islands that could be used militarily have set off regional worries and criticisms, including from the US and its allies. Two US military patrols in seas claimed by China, including last week’s flight by a pair of B-52 bombers near the artificial islands, have been welcomed by America’s allies in Asia. That and a new free-trade deal called the Trans-Pacific Partnership, which the US struck with 11 other Pacific Rim countries last month, adds to Obama’s prestige, said Ernie Bower, director of the Southeast Asia pro-gram at the Center for Strategic and International Studies. “Obama and the White House have done everything they need to do to be well prepared for a strong Asia trip,” Bower said. “Obama will be received in Manila as an American leader who ‘gets Asia’ and is emphasizing US long-term interests.” AP

passport with the name Ahmad Al Mo-hammad, a 25-year-old born in Idlib. The prosecutor’s office said fingerprints from the attacker match those of someone who passed through Greece in October. Another, said to have been identi-fied by the print on a recovered finger, was 29-year-old Frenchman Ismael Mo-stefai, who had a record of petty crime and had been flagged in 2010 for ties to Islamic radicalism. A judicial official said police have also identified two other suicide bomb-ers, both French nationals who’d been living in Belgium: 20-year-old Bilal Hadfi, who detonated himself outside the Stade de France; and 31-year-old Brahim Abdeslam, who blew himself up on the Boulevard Voltaire. At least one key suspect is on the loose. The arrest war-rant for 26-year-old Salah Abdeslam—brother of bomber Brahim—describes him as very dangerous and warns people not to intervene if they see him. French officials revealed to the Asso-ciated Press (AP) that police already had him in their grasp early Saturday, when they stopped a car carrying three men near the Belgian border. By then, hours had passed since authorities identified Abdeslam as the renter of a Volkswagen Polo that carried hostage takers to the Paris theater where so many died. Three French police officials and a top French security official confirmed that officers let Abdeslam go after checking his ID. They spoke on condition of ano-nymity, lacking authorization to publicly disclose such details.

The Islamic State group has claimed responsibility for the attacks. Its statement mocked France’s air attacks on suspected IS targets in Syria and Iraq, and called Paris “the capital of prostitution and obscenity.” Tantalizing clues about the extent of the plot have emerged from Baghdad, where senior Iraqi officials told the AP that France and other countries had been warned on Thursday of an im-minent attack. An Iraqi intelligence dispatch warned that Islamic State group leader Abu Bakr al-Baghdadi had ordered his followers to immediately launch gun and bomb attacks and take hostages inside the countries of the coalition fighting them in Iraq and Syria. The Iraqi dispatch, which was ob-tained by the AP, provided no details on when or where the attack would take place, and a senior French security official told the AP that French intelli-gence gets these kinds of warnings “all the time” and “every day.” However, Iraqi intelligence officials told the AP that they also warned France about specific details: Among them, that the attackers were trained for this operation and were sent back to France from Raqqa, the Islamic State’s de-facto capital. The officials also said a sleeper cell in France then met with the attackers after their training and helped them to execute the plan. There were 24 people involved in the operation, they said: 19 attackers and five others in charge of logistics and planning. AP

[email protected] Editor: Dionisio L. Pelayo • Tuesday, November 17, 2015 A3BusinessMirrorThe Nation

Policemen started implement-ing the elaborate security plan on Monday, but in the aftermath of the terrorist attacks in France and the possibility that local terrorists will attempt to duplicate it in the capi-tal, the police turned to the highly trained dogs to neutralize the threat.

Chief Supt. Noel Constantino, chief of the National Police’s Su-pervisory Office for Security and Investigation Agencies, said the force has tapped the services of 168 teams of explosive-detection dogs (EDDs) or K-9 units for the Apec security operations.

“They will complement the whole security process, even be-yond what the security personnel

can do,” Constantino said, under-scoring the importance of EDDs in this whole week of Apec activities.

Cops call in bomb-sniffing dogs; set tougher security for Apec SummitEach DDG team is composed of

a highly trained bomb-sniffing dog and a handler, and this week’s Apec meetings will also showcase the country’s “best of the best” K-9 dogs.

Constantino’s office regulates and accredits K-9s and their han-dlers, along with security agen-cies and the guards that they will employ.

Constantino underscored the importance of EDDs in the Apec meetings, saying the dogs will detect any threat related to the use of explosives as the police at-tempt to cover any possible threat against the heads of economies and other delegates.

Bomb sweep“THE dogs will do paneling or bomb sweep,” Constantino said.

“They will be present in all places of engagements of the Apec: at the PICC [Philippine Interna-tional Convention Center], in ho-tels, malls and even routes of the delegates,” he added, disclosing that EDDs also played an impor-tant role during the visit of Pope Francis early this year, where a K-9 team unearthed a grenade.

“They will also be on call. If for example, one of the delegates would go to a mall, then one hour before

the arrival of the delegate, the EDD team should already be on site doing its task,” Constantino said.

Constantino added that EDDs can detect any type of bomb, something that metal detectors cannot. “Metal detectors cannot detect liquid-based bombs, but a bomb-sniffing dog would.”

Because of the mammoth security for the Apec Summit, he disclosed that the National Police has been forced to tap the services of EDDs from the private sector, with each team hired at the cost of P5,000 a day.

Marcos upbeat on security measuresSEN. Ferdinand R. Marcos Jr. has expressed confidence that law-enforcement authorities will beef up the security procedures to en-sure the safety of all the heads of economies who will attend the Apec Summit, following the terrorist at-tacks in Paris that left more than a hundred dead.

Marcos said that, before the tragic Paris attacks, his sources in the Na-tional Police has assured him that they have done everything possible to secure the safety of the delegates to the Apec Summit.

“Sigurado, pagkatapos ng pang-yayari sa Paris, siguradong titig-

nan nila ulit at uulitin nila ang pag-inspeksyon ng lahat ng mga gusali napagdadausan ng Apec Summit upang lubusan ang paghanda nila.Kailangan talaga nilang alamin na mabuti kung may threat,” Marcos said in a radio interview.

So far, Marcos added that there is no intelligence report indicating any serious threat to the Apec delegates.

With more than 20 heads of states expected to participate in the Apec Summit, Marcos said, the police should not be complacent and revisit their security preparations to ensure no untoward incident would happen during the Apec Summit that we are hosting.

“Syempre, sa mga ganyang kara-mi, na labis sa dalawampung heads of states, ganyan karami na mga-VIP ang nasa isang lugar, kailangan talaga nating bantayan ng mabuti,” Marcos asserted.

“What is reassuring,” Marcos noted, “is that the National Police does not shoulder the entire burden of ensuring the security of the Apec delegates alone...the respective se-curity details of the visiting heads of states are working with the local police and exchanging information to ensure all the security measures are in place for the smooth conduct of the Apec Summit here in Manila.”

By Rene Acosta

THE National Police reinforced the “blanket security” that it had mapped out for the

delegates attending the Asia-Pacific Economic Cooperation (Apec) Summit by turning to the expertise of its “army of dogs” in bomb detection.

By Joel R. San Juan

THE Commission on Elections (Comelec) on Monday announced that the imple-mentation of the gun ban for 2016 elec-

tions will start on January 10.The gun ban will last until June 8.The Comelec said that the Omnibus Election

Code prohibits the carrying of firerams outside residence or place of business during the elec-tion period unless authorized in writing by the poll body. Only regular members of the National Police, the Armed Forces and other law enforce-ment agencies deputized by the Comelec for elec-tion duty may be allowed to carry and possess firerarms during the elections period.

Upon the start of the election period all existing authority granting police or military security personnel or bodyguards will be au-tomatically revoked.

However, senators, congressmen and governors who are not running in 2016 polls along with justices, judges and Cabi-net secretaries, whose regular security have been provided by various government law- enforcement agencies, may be allowed to retain the services of two of the currently detailed officers or members of said law- enforcement government.

Gun ban starts Jan. 10

It took the government two months before it decided to is-sue the notice to Ayala Land Inc., which submitted the bid with the lowest annual grantor payment of P277.8 million. “Our goal here is to give passen-gers coming from the South seamless transfers to other modes of trans-portation, as well as help decongest traffic in the Metro,” Transportation

Secretary Joseph Emilio A. Abaya said on Monday. The winning concessionaire is required to submit post-award re-quirements to the prequalification, bids and awards committee no later than 20 days from the receipt of the notice of award. Ayala Land will take care of the design, construction, and op-erations and maintenance of the

BusinessMirror [email protected] A4

Economy

By Joel R. San Juan

THE Supreme Court (SC) has directed the govern-ment to justify the P65-billion concession agree-ment it signed with Light Rail Manila Corp. (LRMC)

for the extension of the Light Rail Transit (LRT) Line 1 to Cavite, or the Cavite Extension project signed last year. At a news briefing on Monday, SC Spokesman Theo-dore Te said the High Court gave the the Department of Transportation and Communications (DOTC) and the LRMC 10 days to comment on the petition filed last week by the groups led by Bagong Alyansang Makabayan (Bayan) and Confederation for the Unity, Recognition, and Advancement of Government Employees (Courage). The SC acted on the case “without necessarily giving due course” to the petition, according to Te. The petitioners argued that the concession agreement should be declared invalid for its failure to comply with provisions of the Constitution and other existing laws. They pointed out that the contract “is loaded with sovereign guarantees that are contrary to law and detrimental to the people.” “The Aquino administration through the DOTC, negotiated a lopsided contract that will place us deep in debt,” the petitioners said.

The concession agreement covers the privatiza-tion of the operation and maintenance of the current LRT Line 1 as well as the construction and extension of the existing LRT Line 1 from 20.7 kilometers to 32.4 kilometers by providing trains originating from the end of Baclaran, travering the municipalities of Parañaque and Las Piñas, and ending in Bacoor, Cavite. They claimed that respondents DOTC, Light Rail Transit Authority and LRMC, violate the right of the people to information on matters of public concern under Section 28, Article 2 of the 1987 Constitution. The petitions said no public consultations was con-ducted prior to the signing of the concession agreement. The petitioners noted that bidding was initially con-ducted in 2013 for the project but it was declared a failure, resulting to negotiation which was kept from the public. The concession agreement, according to the peti-tioners, is one sided as the concessionaires are, in effect, "given payout, a risk-free revenue contract," with the govenrment shouldering all the financial risks while also guaranteeing the profits of the consortium. They noted that under the agreement, the winning bidder was given a guaranteed fare hike every two years, and if it failed to collect such fare increase, it would be the government who would be shouldering the deficit payment.

AustrAliAn Minister for trade and investment Andrew robb (left) greets Philippine Ambassador to Australia Belen Anota during the launching of the photographic exhibition on the Philippines and Australia: The First Seventy Years on sunday at the rigodon Ballroom of the Manila Peninsula Hotel in Makati City. the exhibition is the first in a series of events in 2016 commemorating the 70th anniversary of diplomatic relations between the two countries. PNA

PArTnErShIP between the Philippines and Australia, which will officially be on its 70th year in 2016, is seen to become more vibrant as the two countries further enhance their bilateral relationship.

Australian Minister for Trade and Investment Adrew robb, in his speech during the launch of the photo exhibit, dubbed “Philippines and Australia: The First Seventy Years” at Manila Peninsula on Sunday night, said a lot of things have transpired since Australia first opened its first Consulate General in Manila on May 22, 1946.

he said the relationship has enabled a lot of people from both coun-tries to benefit from each other since it opened opportunities in educa-tion, trade and military, among others.

he disclosed that as a young boy, he learned so much about the Phil-ippines through his uncle, who was a priest in the country for a very long time, and who administered masses to Filipino communities in hong Kong when he was transferred there and also in Australia.

“It was my introduction to the world and to some of the wise issues in our lives,” he said.

robb said the Filipino population in Australia accounts for the sixth-largest group at about 250,000 of the about 23.5 million people.

Thus, he stressed that more significant things could still happen and opportunities abound as the two countries further improve their partnership.

“This exhibition is an opportunity to reaffirm the relationship based on trust,” he added.

relatively, Philippine Ambassador to Australia Belen Anota told the Philippines news Agency that “quite a lot have been lined up to further enhance the bilateral partnership.”

The Philippines has been included in Australia’s new Colombo Plan, an education program that allows its top students to study overseas.

Anota said for 2015, two students from Australia were able to enroll in the University of the Philippines and the Ateneo de Ma-nila University as scholars, and more are expected to be enrolled starting 2016.

Tuesday, November 17, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Similarly, over a hundred Filipino students and professionals study in Australia, under scholarships for short-courses, masteral and doctoral, annu-ally, she said.

“There is no reciprocity of numbers but I’m confident that we will have more,” Anota said.

On trade, the ambassador said the Philippines balanced its trade with Aus-tralia since 2014 from being in negative in the previous years.

“It was in negative because we buy more and we are able to sell less. Since 2014 we were able to sell more and buy less. So that, I think, is a very good achieve-ment,” she said.

Anota is confident that the overall

aspect of the bilateral partnership will continue to improve since the two coun-tries are in the process of finalizing a more comprehensive tie-up. “Our main focus now is economic more than anything else,” she said cit-ing the advantage of Australia being a member of most of the trade groups in the region and the world. The ambassador disclosed that a busi-ness delegation from South Australia is expected to arrive in the Philippines in December in preparation for a trade mis-sion in May 2016. “We also hope that with our hosting of Asia-Pacific Economic Cooperation it will give added impetus in our economic relations,” she added. PNA

PHL-Australia finalizing more comprehensive bilateral relations briefsrobredo, lp bicker over tax cuts, ‘tanim-bala,’ poe

aquino told: bolster manila’s competitivenessA lAwmAker on monday asked President Aquino to fight for policies that will bolster the competitiveness of the Philippines during the Asia-Pacific economic Cooperation (Apec) economic leaders’ meeting in manila. Nationalist People’s Coalition rep. Sherwin Gatchalian of Valenzuela City also challenged the Aquino administration to get the public money’s worth as the government allocated P9.8 billion for hosting the Apec. “The Filipino people have invested [almost] P10 billion on Apec 2015, a significant amount of public money which could have been used to fund expanded access to higher education and other essential social services. President Aquino should ensure that the people will get their money’s worth by aggressively pushing for policies which will utilize regional trade to enhance inclusive economic growth here at home,” Gatchalian said. As agreed upon by the Apec 21-member economies in December 2014, Apec 2015 has focused on four main objectives: enhancing regional economic integration, fostering the participation of small and medium enterprises (Smes) in the regional and global economy, investing in human capital development, and building sustainable and resilient communities. moreover, Gatchalian also said that President Aquino should take special aim at fostering participation of Smes and increasing investment in human capital development, saying these two strategies need further development to secure more productive and meaningful Philippine participation in regional trade. Jovee Marie N. dela Cruz

A member of the liberal Party (lP) on monday admitted that lP’s vice presidential candidate rep. leni robredo of Camarines Sur and the ruling party continue to clash over several national issues. This was the opinion of lP rep. roman T. romulo of Pasig City following the statements issued by robredo, raising doubts on presidential candidate Sen. Grace Poe’s patriotism. romulo said that no less than President Aquino had tried but failed to get Poe’s approval after several rounds of meetings, saying it’s the same for manuel A. roxas II, whose repeated attempts to convince Poe proved to be inutile until he decided to settle for robredo. “I find rep. robredo’s comments quite perplexing considering that her own party, led by the President and lP bet mar roxas, aggressively wooed Sen. Poe to be mar’s running mate before ultimately deciding to give up and settle for the lady from Camarines Sur,” said romulo, who still belongs to the administration party. “The lP did not question Sen. Grace’s patriotism when they invited her to run in their Senate slate in 2013, neither did they question it again when they tried to convince her as the party’s vice presidential bet. So why are these questions now?” he added. earlier, robredo, lP and roxas have had differences on key issues as the lawmaker once said she was for tax cuts as opposed to roxas’s position against the tax reform, particularly lowering individual and corporate-tax rates. On the tanim-bala (bullet-planting) extortion scam, robredo was pushing to decriminalize possession of bullets, while roxas said the government should not be faulted if a passenger was caught with a bullet. Jovee Marie N. dela Cruz

oil Firms roll back Fuel pump prices MAJOrITY of the oil firms are implementing a price rollback on Tuesday. On Monday they announced a P0.40 per liter price reduction in gasoline; P0.45 per liter in kerosene; and P0.30 per liter in diesel. Eastern Petroleum Corp. already implemented a price cut in diesel and gaso-line by P0.30 and P0.40 per liter, respectively, effective 6 p.m. on Monday. Fernando L. Martinez, Eastern Petroleum chairman and CEO, said that the latest price adjustment reflects the downward trend in world oil prices at the close of last week’s trading. “Analysts expect oil market to remain bearish, which could really hurt de-mand and world oil prices. With oil trading near its six-year lows, the healthy demand has prevented prices from dropping further amid the worsening oil glut due to oversupply,” Martinez said. Pilipinas Shell, PTT Philippines and Seaoil, in separate advisories, said that they would implement the price rollback at 6 a.m. on Tuesday. Other oil firms are expected to follow suit. “This is to reflect movements in the international petroleum market,” the oil firms said. On november 10 oil firms implemented a P0.35-per-liter increase in gaso-line; P0.75-per-liter increase in diesel; and P0.90-per-liter adjustment in kero-sene. The Department of Energy (DOE) said last week the uptick in local price of ethanol boosted gasoline adjustment. As of november 10, the DOE said that the year-to-date total adjustments stood at net increase of P0.91 per liter in gasoline and net decrease of P2.66 per liter in diesel. LPG remained with net decrease of P5.90 per kilogram. Lenie Lectura

terminal for a concession period of 35 years. The multibillion-peso project covers the construction of a termi-nal within a 4.7-hectare lot along FTI Compound in Taguig. It will connect passengers coming from the South, specifically the Batangas and Laguna area, to other public-utility vehicles that are serving in-ner Metro Manila. Construction is set to commence in August 2016, and be completed in a year and a half, or in January 2018. Operations of the terminal will be in full swing by February 2018. It also covers the construction of arrival and departure bays, public-information systems, tick-eting and baggage facilities, and park-ride facilities. “This is the second Integrated Terminal System [ITS] project that we have awarded,” Abaya said. Megawide Construction Corp. bagged the P2.5-billion ITS South-west Terminal deal earlier this year,

seeking an annual grantor’s payment of P100 million. According to Ayala Land Spokes-man Alfonso Javier D. reyes, the deal is an important project for the company. “This is an important project for us because we’re developing Arca South, so we feel this a very strategic project and it’s a good project for the country to help declogged Metro Manila,” he said. Arca South is an integrated mixed-use estate. It is estimated that up to 4,000 buses and 160,000 passengers will feed into ITS South from the South Luzon Expressway every day. “We like to view it as part of the whole, as it is right beside Arca, it is very strategic,” reyes said. Aside from the south terminal project, the government has award-ed 10 contracts since it launched the Public-Private Partnership (PPP) Program in late 2010, namely: the P2.2-billion Daang hari-

South Luzon Expressway project bagged by Ayala Corp. in 2011; the P16.42-billion first phase of the PPP School Infrastructure Pro-gram (PSIP), which went in 2012 to the consortium formed by Megaw-ide Construction Corp. and Citicore holdings Investment Inc., as well as the BF Corp.-riverbanks Develop-ment Corp. consortium; the P15.68-bil lion ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Devel-opment Inc. in 2013; the P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construc-tion consortium; the P5.69-billion Moderniza-tion of the Philippine Orthopedic Center project that went to the Meg-awide-World Citi Inc. consortium, also in 2013. the P1.72-billion Automatic Fare Collection System contract

awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. (MPIC) in 2014; the P17.5-billion Mactan Cebu International Airport new Passen-ger Terminal project bagged in 2014 by Megawide Construction Corp. and GMr Infrastructures Ltd.; the P64.9-billion Light rail Transit Line 1 Cavite Extension deal, awarded in 2014 to Light rail Manila Consortium of Ayala and MPIC; the P2.5-billion ITS South-west Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate henry Sy in Janu-ary; and the P35.42-billion Cavite-Lagu-na Expressway bagged by MPCALA holdings Inc. of MPIC in June. It intends to plug the gap in the country’s transportation facility in the next decade by rolling out massive-infrastructure projects that are seen to spur economic growth.

dotc awards p4-b its south terminal deal to ayala land By Lorenz S. Marasigan

The property arm of the country’s oldest conglomerate Ayala Corp. has finally received

the notice of award for the P4-billion deal to construct an intermodal terminal along the Food Terminal Inc. (FTI) compound in Taguig.

SC to govt: Defend ₧65-B concession pact for LRT 1 Cavite Extension project

Tuesday, November 17, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA6

Are you sure your candidate is ready?

editorial

EvEry Filipino—rich or poor, young or old, urban or provincial—has a vital stake in who will sit at the head of the conference table in Malacañang after May 2016.

Presidential candidates, though, are like the reptile Hemidactylus frenatus, which in the Philippines can be called a tuko, butiki, or tiki depending on where you are from. In Thailand they call it jing-jok. In Bangladesh, the name tiktiki is used and tokek in Indonesia.

Why all the different names? Because the name comes from the sound that the local people hear the lizard making—the same as with candidates. A candidate can easily become “pro-poor,” “pro-business,” “pro-mining,” “pro-environment,” “pro-anything” as long as they know the audience to which they are speaking.

But events have a way of catching up with the campaign rhetoric and chang-ing the discussion. Supertyphoon yolanda did that as now the terrorist attack in France. The public can only rely on the press and media to ask questions that reveal who the candidate might be.

But journalism, not only in the Philippines but globally, seems to be popu-lated by people who received their training from hours and hours spent on Facebook. Two days ago, a reporter from the global news network that calls itself “The Most Trusted Name in News” is interviewing a father and son that survived the kills at the French nightclub.

Near the end of the segment, the reporter asks the teenage boy if he had “Ever seen a dead body before?” What kind of nonsense is that? More impor-tant, what kind of journalism is that?

Asking a female candidate running for the Philippine Senate about past re-lationships and marriages does not raise the level of discussion any more than asking a male candidate if he prefers to wear “boxers or briefs.”

In the US, the media is obsessed with what has come to be known as the “have a beer with” test for prospective elected officials. Philippine “journal-ists” are hardly any different too much of the time. We take a job based on the competency and compensation offered by a company not whether the boss is your first pick to be a ninong at your wedding.

Character does not equal competence, any more than competence equals character. And both are vitally important qualities for the next president.

However, the public cannot make an informed appraisal of all the candi-dates unless and until the hard questions about the issues are asked and an-swered. For example, the first question that should be asked when the topic of the Trans-Pacific Partnership agreement arises is, “How much of the 3,000 pages have you read?”

As we face the challenges of the 21st century—and they are many and varied—the country can no longer accept well-phrased “motherhood-statements” and “pleasing personality” as the core qualifications of our political leaders.

ANy fool can pick stock-market issues that are going to go higher. All right, maybe not “any” fool but most fools. The Wall Street Journal dartboard has proved that consistently.

ANTALyA, Turkey—The deadly Paris attacks are pressuring President Barack Obama to confront Islamic State (IS) mili-tants more aggressively than he has been willing to consider

in the past, opening a difficult deliberation for a leader who has tried to build a legacy on ending America’s wars, not extending them.

Fighting the stock market

Obama under pressure to intensify fight against ISIS after Paris attacks

Place a copy of the newspaper daily stock prices, throw five darts at it, and buy equal amounts of those issues the darts select. At the end of the year, your portfolio most probably beat or equaled the performance of the broad stock market.  But who cares.

I really do not have much patience with stock-market investors who hold on to losing positions with the ratio-nalization that prices will eventually go back up. Now don’t misunderstand me. My advice to those who subscribe to my PSE Strategy Guide is this.

“you only have two-and-a-half choices for this market. The ‘half’ choice is to try to quickly trade the movers for profit. Alternatively, you can sell and walk away until we find a bottom that will eventually come. Finally you can hold on and turn your back on where the prices may go until we reach a bot-tom and then average down.”

The key to the deal about “then

average down” is that you are completely prepared to put more money into your portfolio when the right time comes. That is entirely different from the “pray and hope” method. This strategy is de-signed for those individuals who are simply not psychologically prepared to take a loss and there is nothing wrong with that. When I play “war” genre computer games, I never attack until I have built my armies to a point of high strength to win the war even if it means losing several battles until that time. Other players who are also successful are more comfortable fighting many small battles in their quest for victory.

That is also why I do not have pa-tience for those stock-market “experts” who advocate and push what I con-sider a “one-size-fits-all” investment program. But that is my problem and not yours. I am always uncomfortable when asked for the title of a book on stock-market investing. It does not

On Sunday Obama pledged to “re-double our efforts” to fight international terrorism after the brutal bombings and shootings that killed at least 129 people in the French capital.

Obama mentioned fortifying borders and continuing diplomatic talks, but that strategy is likely to evolve and get tougher as world leaders gather in Tur-key for the annual Group of 20 economic summit—an event transformed by the terrorist strikes into an emergency strat-egy session on combating IS.

After a meeting with Turkish Presi-dent recep Tayyip Erdogan here on Sunday morning, Obama condemned the mass killings as “an attack on the civilized world” and pledged to “stand in solidarity” with French authorities as they hunt down the perpetrators.

The attacks have created a new level of anxiety among European and Middle Eastern leaders as they watch IS’s ambi-tions extend beyond Iraq and Syria to target enemies internationally.

The Paris attacks came just a few days after the bombing of a Shiite Muslim district of Beirut and two weeks after the sudden crash of a russian airliner. IS has claimed responsibility for all three events, which targeted elements that have been fighting IS on what it views as its home turf.

World leaders are looking again to the US for leadership in the campaign

to defeat the militant group. Erdogan is just one of the regional partners who wants the US to send in more ground troops and special-operations forces to help coordinate airstrikes.

Others are pushing for a “no-fly” zone to stop air operations by the government of Syrian President Bashar al-Assad. Supporters of the move say it would pro-tect Syrian civilians and demonstrate that the West remains committed to defeating the Syrian dictator, thereby undercutting a powerful IS recruiting narrative.

Obama has been resistant to the idea of sinking more deeply into the Syrian civil war, but there are signs that could be changing. Defense Secretary Ashton Carter vowed to his French counterpart that the US would take “additional steps” to respond to the Paris attacks.

But after a morning of meetings, White House officials also made clear that they plan to prod coalition mem-bers to do more of what they had al-ready pledged to do within the context of the existing counter-IS strategy. The administration expects “some of our al-lies, including France, to intensify their efforts” and have more resources to put toward the coalition strategy, Deputy National Security Adviser Ben rhodes told reporters in Antalya on Sunday.

With some intelligence help from the US, French warplanes hit IS targets

matter which one you choose. Any one is good if the techniques work for you. If you make money following a partic-ular book, then you have found “The Ultimate Guide to Making Money in the Stock Market.” If it doesn’t work, go buy a different one.

My ultimate stock-market book is The Art of War by Sun Tzu. This book has been applied to everything from raising children to founding an outlaw motorcycle club. For me, what Sun Tzu says applies perfectly to stock-market investing, my stock-market investing.

Part of what I learned from Sun Tzu is why I am only concerned about two things in the stock market as I have said many times before; turning points and trends. Maybe that is because I see the ebb and flow of the stock market the same way Sun Tzu saw the same of a battle or a war.

On Sunday in my morning audio forecast I said the market would prob-ably go to 6,730 on the Philippine Stock Exchange Index. I called that price because that is where I saw the tide of battle turning. right or wrong, my confidence level in my battle field wisdom is high enough to take action on that assessment. If right, I’m a “ge-nius.” If wrong, I might want to slightly change my tactics or not. That will de-pend on what my “enemy”—the stock market—did during the day.

I never purposefully diversify my portfolio because the Art of War talks

about not spreading your forces too wide and too thin. But then again, a small flanking force can do great damage to the enemy if deployed at the right time. Therefore, buying one of those high-flying, one-day-wonder basura stocks that no one ever heard of, can make perfect and profitable sense.

“victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win” is actually the creed of every stock-market book I have read. It obviously means to have a plan and try to follow it. “There is no instance of a nation benefiting from prolonged warfare,” Sun Tzu said. And I say: If it isn’t going up with the broad market, move into another issue.

My favorite Art of War lesson is this, “The opportunity to secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy him-self.” To me, that means that the stock market is always providing profit op-portunities if you know which way the market is genuinely moving and know what action to take for that move.

For now, I ’m play ing com- puter games. 

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.

in Syria on Sunday night, the start of what the French government promises will be a stepped-up military campaign.

Obama still doesn’t think that more US troops are the answer to the problem, rhodes said. Instead, the situation calls for a “more sustainable opposition force on the ground in Syria and partners in Iraq,” he said. With an invasion force off the table, the other options are mainly to continue bombing and targeting ter-rorist leaders while waiting for the Kurds and Syrian forces to get strong enough to tackle IS, also known as ISIS and ISIL. It was not immediately clear what addi-tional steps Carter meant, but they prob-ably would include intelligence-sharing and closer coordination, such as the as-sistance offered in Sunday’s retaliatory strike by French warplanes.

Frederic C. Hof, a former special ad-viser to Obama on Syria who now is a senior fellow at the Atlantic Council, a think tank in Washington, said the US may need to consider mounting a ground offensive with Western European sup-port to go after IS in Syria. He said the militants cannot be defeated by only an air campaign.

“These horrific attacks and ISIS’s claim of responsibility suggest that the administration may have to go back to the drawing board on its assumption that the battle against this organiza-tion must, by definition, be a long one,” he said. “ISIS in its Syrian headquarters needs to be taken down, and quickly.”

Friday’s attacks also “raise hard ques-tions for us and France about how this went undiscovered,” said rep. Adam Schiff, Democrat-California, the top Democrat on the House Intelligence

Committee, in a phone interview on Sat-urday after a briefing by US intelligence officials. He added that the intelligence agencies are reviewing what information they had leading up to the attack in order to see whether any signs were missed.

If the Paris attacks turn out to have been directed by IS’s central leadership, it would mark a “big change” in the group’s strategy, said William McCants, an expert on Islamic extremism at the Brookings Institution.

IS has focused on state-building in Iraq and Syria in the last year and “has not dedicated a lot of resources to external operations,” McCants said in an interview. Most IS attacks out-side the region up until now have been carried out by affiliated groups or in-dividuals who were inspired to act by IS propaganda.

“The calculation has been, by the US and other governments, that as long as IS focuses on state-building in Iraq, it is enough to contain them,” McCants said. “But if IS has begun successful large-scale external attacks, I think it will increase the popular demand for much larger-scale interventions.” Much of the pressure could come from European allies.

“France has declared this an act of war,” said James Jeffrey, a former ambas-sador in both Turkey and Iraq and now an analyst with the Washington Insti-tute for Near East Policy. “I do not think [French President François] Hollande’s response will be to continue his minor air force contribution to Obama’s very cau-tious limited containment campaign.”

“Hollande,” he added, “will not just go along with Obama’s game plan.” TNS

OUTSIDE THE BOXJohn Mangun

Tuesday, November 17, 2015

[email protected]

THE EnTrEprEnEurManny B. Villar

Apec: Do the benefits outweigh the costs?

With a total tab of P10 billion and inconvenience to citizens from tight security measures and traffic rerouting, the Asia-Pacific Economic Cooperation (Apec) Summit takes

place this week with firm assurances from the government that the country will benefit immensely from it.

Our hosting of the Apec Economic Leaders’ Meeting, we’re told, will bring us many economic benefits, as the world’s attention is focused on the Philippines, thus reinforcing our image as a favored tourism and investment destination. the theme of the event, “Building inclusive Economy is Building a Bet-ter World,” would give the country a platform to share its experience in laying the groundwork for an inclu-sive economy, uplifting the quality of life of its people, and providing them expanded benefits and opportuni-ties in education, shelter and health. the country can, likewise, show how the expanded technical-voca-tional training offered by techni-cal Education and Skills Develop-ment Authority complements the development of micro-, small- and medium-scale enterprises (MSMEs), topics tackled at the Senior Leaders and Ministerial Meeting of Apec. Since December 2014, a series of meetings of various sectors with representatives from Apec member-economies have taken place in key cities. these tackled a wide range of issues in trade and industry, investment, science and technology, agriculture, even cli-mate change, as well as the frame-work for structural growth that different countries have adopted. this is actually the second time since 1996 that the Philippines will host the Apec summit. the national government is sparing no effort to make this year’s summit a big success because of its supposed economic benefits and not simply for the sake of prestige or image-building. But we ask: Apart from rosy pro-jections, why don’t we have figures as to how much Apec has really ben-efited us? Philippine trade with Apec econo-mies constitutes 80.7 percent of all

our trade. the top 5 major trading partners of the Philippines—Japan, China, the United States, Singapore and South Korea—are all Apec mem-ber-economies. tourists from Apec countries constitute 80 percent of total tour-ist arrivals in the country. And Apec economies account for half of the to-tal official development assistance to the Philippines. in other words, our hosting of Apec is good for business and will contribute to sustained economic development in the years ahead. Nevertheless, militant groups criticize the Aquino government for “going overboard” to host the Apec summit. they lament that “hundreds of canceled flights, lost incomes due to canceled workdays, lost school days, heavy traffic due to road closures and rerouting to dis-placed urban poor communities and the suppression of the right to pro-test, government measures for the upcoming Apec Summit are placing too much of a burden on the public. this is taking Filipino hospitality to the extreme.” the militants also accuse Presi-dent Aquino of wanting to “show the Apec delegates a Manila free of traffic, free of beggars and street ven-dors, free of shanties and illegal struc-tures, free of indigenous peoples and citizens exercising their democratic right. this is the kind of illusion that Apec foists when it says “globalization leads to a better world.” COA vs DND, AFP iN the first week of November, the Office of the Ombudsman and the Sandiganbayan posted significant gains in weeding out corrupt local executives and officials and work-ers in various government agencies. the past week, the Commission on Audit (COA) found irregularities

in 19 out of 25 procurement deals in 2014 of the Armed Forces of the Philippines (AFP), which included the purchase of helicopters, armored vehicles and communications equip-ment totaling P24.883 billion. the state auditing firm said the AFP purchased the questioned items without holding public bid-dings as required under Republic Act (RA) 9184, or the Government Procurement Reform Act. instead, the military resorted to alternative modes of purchase, such as negoti-ated procurement under emergency cases, direct contracting and negoti-ated procurement under the Defense Cooperation Agreement. While some modes of procure-ment can be allowed under RA 9184 “in highly exceptional cases,” the AFP failed to meet the conditions that would justify its 2014 procure-ment activities, the COA said. Other deficiencies unearthed by the COA included the nonsubmission of com-plete documents that prevented audi-tors from completing the thorough review of contracts. Among the big-ticket items said to have been purchased irregularly by the AFP included 12 units of FA-50 jets from South Korea (P18.976 billion); eight units of Bell 412EP helicopters from Canadian Com-mercial Corp. (P4.763 billion); and 28 units of armored vehicles from israel (P882.000 million). the Department of National Defense (DND) says there is noth-ing irregular with the procurement of the items mentioned in the COA report, especially since these are to be used to cope with the exist-ing “internal and external security situation.” “to begin with, we would like to point out that public bidding is not the only mode of procurement pro-vided for in law. RA 9184 allows for alternative mode of procurement in specific situations,” the DND said. it added that the procurement of the questioned items can be classified as “emergency” as it is aimed for security operations. Moreover, government-to-government negotiated procure-ment is allowed under the Defense Cooperation Agreement. But it is not only irregularity in military purchases discovered by state auditors recently. the COA also found irregulari-ties in the military’s procurement of petroleum, oil and lubricants (POL)

worth P68.65 million in the after-math of Supertyphoon Yolanda that devastated tacloban City and other parts of eastern Visayas. the irregu-larity came to light after a review of the P118.65-million Quick Response Fund (QRF) transferred to the AFP by the Office of Civil Defense (OCD) to support the military’s rescue, relief, recovery and rehabilitation efforts for the Yolanda victims. Records showed that Petron Corp. was paid P58,162,738 as “payment for POL products” and the balance was listed as “payment of withhold-ing tax in favor of Petron Corp.” the POL disbursement was the biggest, or 98 percent, of the total amount spent by the OCD for its Yolanda-related operations. however, state auditors discov-ered that the mode of procurement for the POL was through a repeat order, not through an emergency procurement. the COA also said the contract of agreement for the repeat order was approved on September 30, 2013, a month before the signing of the memorandum of agreement (MOA) between the OCD and the AFP. State auditors could not deter-mine the actual dates of approval for three other supplemental contract agreements because they were left undated, as well. Several supporting documents for the original contract were not submitted, including pa-perwork involving details about gen-eral conditions, special conditions, schedule of requirements, technical specifications, notice of award and notice to proceed. the regularity of the disburse-ment of P68,645,912 in the procure-ment of POL products out of the QRF could not be ascertained since the supporting documents were defi-cient and the mode of procurement was not in accordance with the MOA, state auditors said. With the findings, the COA or-dered the AFP to explain why it used the repeat order method of purchase. it also asked the AFP to produce the missing documents. Until the end of the year, however, no action was taken on the require-ments, state auditors said. Shouldn’t these irregularities uncovered by the COA be investi-gated thoroughly by the Office of the Ombudsman?

E-mail: [email protected].

Edgardo J. Angara

OVER the weekend, beastly terrorist attacks in Paris killed 129 and wounded 352 people coming from 15 different countries. Many of the casualties were enjoying a typical

night out, attending a rock concert at the Bataclan concert hall and watching a beautiful game, soccer, when brutal killers indiscriminately opened fire.

A drastic shift in global agenda

the group called iSiS (islamic State in iraq and al-Sham)—or what French President François hollande and US Secretary of State John F. Kerry referred to as Daesh (an Arabic acronym)—has quickly claimed re-sponsibility, saying that the attacks were “just the beginning,” purport-edly in its campaign to reinstate a 16th-century style Caliphate.       

the response was global. World leaders and everyday citizens alike—including us here in the Philippines—have shown a tre-mendous outpouring of sympathy and solidarity. Parisians them-selves led a social-media campaign calling on households to open their doors to anybody who felt unsafe in the wake of the attacks. And

businesses carried on as usual to show the terrorists the French will not be cowed or intimidated. 

if anything, a dramatic shift in the global agenda is the upshot. On Sunday where a meeting of 20 of the world’s most powerful coun-tries—the G-20 Summit in Antalya, turkey—was meant to focus on the European refugee crisis, climate change, corporate tax avoidance and other economic and financial matters, iSiS instead dominated the discussions. 

Something similar inevitably may happen here in Manila this week, as 21 countries—account-ing for 40 percent of the world’s population, 57 percent of global GDP, and 47 percent of global trade—will meet for the 2015 Asia-Pacific Economic Coopera-tion (Apec) Summit.

the leaders of these countries are expected to talk of amity and mutual prosperity, and of building

more inclusive and resilient econo-mies across Asia Pacific through free trade. 

Despite some recent regional dis-play of saber rattling and outright bullying in the neighborhood over maritime disputes, the Philippines as host pledged to take that issue off.  Nonetheless, such geopolitical tensions, alongside global economic slowdown and the planet’s historic (and catastrophic) rise in warming by 1°C, provide a measure of grim backdrop to the summit.  it’s become even grimmer by the Paris terror-ist attacks.

Clearly, iSiS poses a global threat, adding to the list of common risks the world faces today which, hope-fully, the Apec Summit may bring nations closer to collaborative solu-tions and united action in a world getting increasingly more dangerous and literally hotter. 

 E-mail: [email protected].

Conclusion 

StEADiLY, Philippine food is gaining a foothold in the global markets. Local concepts of chicken, fish and even snacks are winning the approval of palates from North America,

Europe, Middle East and to Asia.

Food firms win global palate’s approval

What’s good for Asia is good for Europe

ABOuT TOWnErnesto M. Hilario

Food companies that have suc-ceeded in the domestic market are now aggressively pursuing ex-pansion overseas, and their target markets are no longer limited to the migrant Filipino communities.

Fast-food giant Jollibee Foods Corp., which continues to dominate the Philippine market even with the entry of foreign brands, has signed an agreement to acquire 40 percent of the Smashburger quick-service restaurant of the Denver, Colorado-based burger chain, which has 339 restaurants in the US and in seven other countries.

the acquisition will boost Jol-libee’s international presence, which has already covered 15 countries, including the US, China, Middle East, Asia and Australia, as of end-September.

Max’s Restaurant has become stronger with its merger with Pan-cake house and other acquisitions, and is now becoming a global player. the group, which operates a total of 547 branches, including 34 in the US, Canada and the Middle East, recently opened another Max’s Res-taurant in the United Arab Emirates as part of its continuing interna-tional expansion program.

the expansion program also in-cludes the opening of Yellow Cab pizza parlors, Pancake house res-taurants and Sizzlin’ Steak outlets in the next five to 10 years. in addition to Max’s, Pancake house, Yellow Cab and Sizzlin’ Steak, brands under the Max’s Group include teriyaki Boy, Dencio’s and Krispy Kreme.

Manufacturers of food products are also increasing their forays in other countries through organic expansion or acquisition. Liwayway holdings, which first established a local reputation for its starch prod-uct, for ironing of clothes, is one of the pioneering (and successful) Filipino investors in China, where it has established a dozen facto-ries, in addition to its facilities in the Philippines and several other Asian countries. Liwayway’s Oishi brand of crackers and other snack products was listed by Euromonitor as one of the top snack brands in the Asia Pacific in 2014, according to published reports.

Monde Nissin, which has curved a major niche in the domestic mar-ket, is now pursuing global expan-sion. it is establishing a joint venture with Malee Sampran to distribute the thai company’s beverage prod-ucts in the Philippines and has ac-quired the United Kingdom-based Quorn snack brand. During the first quarter of 2015, Monde Nissin ac-quired the Menora snack brand in Australia, its third acquisition in that country after the Black Swan and Nudie brands, according to pub-lished reports.

Universal Robina Corp. (URC), the food and beverage unit of JG Summit holdings, is spending $200 million in its current fiscal year for expansion, including the opening of plants in Myanmar and Vietnam. the company also continues to ex-pand its presence in Asia and the Pacific with the acquisition of New Zealand Snack Foods holdings Ltd. Last year URC forged joint venture agreements with Calbee of Japan and Danone of France.

the increasing participation of local food companies in interna-tional exhibitions is helping de-velop foreign awareness, as well as approval for Philippine food

products. For instance, the 2014  Salon international de  l’Agroali-mentaire (SiAL) in Paris, France, provided an opportunity for 15 Philippine companies to show-case their brands before the more than 130,000 trade buyers from 200 countries who visited the exhibit.

According to the  Center for international trade Expositions and Missions  (Citem), which or-ganized the local delegation to the SiAL,  the  country’s tropical fruits, coconut products, fresh and canned tuna, as well as innovative products  like the popping juice balls,  drew very strong  interest: a  combined  initial  sales record of $29.37 million and 223 trade inqui-ries with high potential for future business. Citem expects the Philip-pine participation in SiAL Paris to pave the way for the entry of local products in European supermarkets and specialty stores.

if these developments continue, the food sector may increase its contribution, and even lead growth in Philippine exports. this will, in turn, help cushion the impact of the slowdown in the manufactur-ing industries of other countries like China on Philippine exports.

the Philippine Statistics Author-ity (PSA) reported that merchandise exports dropped 24.7 percent to $4.4 billion in September 2015 from $5.85 billion in the same month last year, mainly because of lower exports of chemicals, metal compo-nents, clothing, electronic products and coconut oil, among others. For the first nine months of the year, exports declined by 6.9 percent to $43.75 billion compared to $46.98 billion a year ago. Except for coconut oil, no other food products are listed among the top Philippine commod-ity exports, which means there’s a lot of improvement that can be done for the food sector.

After all, everybody needs to eat, regardless of the state of the global economy. Citem notes that during the SiAL Paris, Marigold Manufacturing Corp, which owns the Mama  Sita’s brand,  reported that foreign buyers were becom-ing more open to try the Philip-pine heritage sauces and mixes, which could possibly expand the market beyond the Filipino com-munities abroad.

Who knows, we may even find our very own carabao cheese, with improved processing and better packaging, on the breakfast tables in Western countries, too. After all, none can beat the kesong puti as partner for the pan de sal.

 For comments, e-mail mbv.sec-

[email protected]  or visit www.mannyvillar.com.ph.

thERE are 10 million reasons for Europe to shed its resistance to a trade deal with the US—that’s

the number of European jobs that de-pend on American exports. But negotia-tions are bogged down over a European proposal  to change the way govern-ments and investors settle disputes.

Differences over the same issue almost derailed last summer’s trans-Pacific Partnership (tPP) negotiations. And the solution reached in the tPP

provides a ready-made template for a European trade deal.

the rationale for the traditional arbitration process for investor-state disputes is that it enables foreign com-panies to bypass host-country courts, which can be biased in favor of their government’s position. But in July, the European Parliament, which gets a vote on the final trade deal, instructed trade negotiators to replace that arbitration process, now embedded in thousands

of trade treaties.they might have looked to the tPP

as a model for a sensible update. that deal incorporates many  of Europe’s current demands, such as making the proceedings public and allowing interested third parties to weigh in. it clarifies that companies bringing cases bear the burden of proof and re-quires countries to have ethics codes for the private-sector lawyers who act as arbitrators.

the tPP also strengthens the hand of the government by making it clear that countries have the right to regulate in the public interest. tougher banking rules to maintain financial stability, for instance, or regulations to control car-bon emissions, couldn’t be upended with an investor-state dispute settlement.

the US and EU trade talks are pick-ing up steam. it would be a shame if a dispute over disputes brought them to a halt. Bloomberg View

The increasing participation of local food companies in inter-national exhibitions is helping develop foreign awareness, as well as approval for Philippine food products. For instance, the 2014 Salon International de l’Agroalimentaire in Paris, France, provided an opportunity for 15 Philippine companies to showcase their brands before the more than 130,000 trade buyers from 200 countries who visited the exhibit.

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phTuesday, November 17, 2015

One of the questions asked dur-ing this year’s Apec CEO Survey was “How confident are you about your organization’s prospects for revenue growth in your principal Apec econ-omy over the next 12 months?” Out of the 110 CEOs that are based in the Philippines, 51 percent of respondents said that they are very confident in their revenue-growth prospects within the next 12 months, while another 34 percent said that they are “somewhat confident.” Only 13 percent said that they are “not very confident,” while 2 percent said they are “not at all confident.” The confidence of Philippines-based CEOs is in contrast with the steep decline in confidence of CEOs in growing their revenues. According to the survey, only 28 percent of CEOs elsewhere in Apec member-economies felt very confi-dent in experiencing revenue growth in the next 12 months, while 39 per-cent said they are only “somewhat confident;” another 27 percent said they are “not very confident,” while a big 5 percent said they are “not at all confident.” In 2014 the confidence of CEOs in growing their revenues was at a big 46 percent, while only 8 percent of those surveyed last year said they

are “not very confident” in their revenue prospects. PwC Philippines Chairman and senior partner Alexander Cabrera said the respondents from the Phil-ippines already considered that next year will be an election year, or a year traditionally reporting significant growth in consumption activities brought on by election spending. But the optimism of Philippines-based CEOs on revenue growth is not only limited to the next 12 months, as their confidence on revenue growth also extends to the medium-term period of the next three to five years. Forty-five percent of respondents from the Philippines said they are “very confident” in growing their business within the next three to five years, while 48 percent said they are only “somewhat confident.” Only 5 percent said they are “not very con-fident” and 1 percent said they are “not confident at all.” Elsewhere in the region, the decreased confidence is the same for growth prospects in the next three to five years, with only 38 percent saying they are “very confident” in revenue growth, while 53 percent said they are only “somewhat confident.”

Filipino CEOs more bullishon hiking revenues this year

U.S.-CHINA RIVALRY, PARIS TERROR IN SPOTLIGHT AT MANILA SUMMIT

France carries out raids, names more potential attackers

Thorny American ties with China and the Paris terrorist attacks are expected to grab

the attention from trade issues at the Asia-Pacific Economic Coop-eration (Apec) summit that will be held under extra-heavy security in the Philippine capital this week. President Barack obama and the leaders of China, Japan, Mexico and other nations in the 21-member Apec bloc will converge, along with 7,000 officials, CEos and other participants on a convention center by the Manila Bay. Several days of meetings culmi-nate with a two-day summit of leaders beginning on Wednesday. russian President Vladimir Putin will skip the Manila meetings, partly to focus on an investigation into the october 31 crash of a russian passenger jet in Egypt that killed all 224 people onboard. he will be represented by Prime Minister Dmi-try Medvedev. Indonesian President Joko “Jokowi” Widodo will likely be kept away by domestic problems too, according to Philippine officials. Founded in 1989 in Canberra, Australia, Apec aims to demolish barriers to trade and investment through nonbinding accords. The unwieldy grouping of countries and self-governing territories that

range from liberal democracies to dictatorships accounts for 3 billion people, half of global trade and 60 percent of world GDP. Critics say Apec has few concrete achievements because of its non-binding status. They dub it a talk shop and joke the acronym means “A Perfect Excuse to Chat.” But pro-ponents believe those qualities are its strengths. “That’s exactly the beauty of Apec, you don’t have to worry about committing yourself to anything because it’s nonbinding,” Finance Secretary Cesar V. Purisima said. “It gives leaders the freedom to bounce ideas, new ideas.” Apec’s agenda this year focuses on trade and economic concerns, including current worries over Asia’s slackening growth. Members of the bloc are reluctant to have it address divisive security and geopolitical is-sues. But complex rifts and political strife often overshadow the annual show of unity that is symbolized by the photo-op of leaders dressed in a quirky or traditional shirt provided by the host country. Friday’s attacks in Paris that killed at least 129 people have already cre-ated a dilemma for Apec. The Islamic

PArIS—French police raided 168 locations across the country and detained nearly two dozen peo-

ple as authorities identified more mem-bers of a sleeper cell said to be behind the Paris attacks that killed 129 people. French and Belgian jihadis—and at least one potential Syrian member—were being implicated on Monday in what was the worst attack on French soil since World War II. The mastermind is said to be a Belgian national linked to thwarted earlier attacks on a train and a French church. With France under a state of emer-gency that gives police special powers, the hunt continued for members of the cell that carried out last Friday’s gun and bomb attacks. French Interior Minister Bernard Ca-zeneuve said police arrested 23 people and recovered a Kalashnikov and other

weapons during the overnight raids. heavily armed Belgian police also launched a major operation in the Molenbeek neighborhood of Brussels, which authorities consider to be a focal point for extremists and fighters going to Syria from Belgium. Across France and throughout Europe, people paused for a minute’s silence at noon French time (1100GMT) in memory of the victims. overnight, France launched its heaviest air strikes yet on the Islamic State (IS) group de-facto capital in Syria, Prime Minister Manuel Valls said “we are at war” against terrorism. French authorities said on Sunday night’s air strikes destroyed a jihadi training camp and a munitions dump in the city of raqqa, where Iraqi intel-ligence officials say the attacks on Paris were planned.

Twelve aircraft including 10 fighter jets dropped a total of 20 bombs in the biggest air strikes since France extended its bombing campaign against the ex-tremist group to Syria in September, a Defense Ministry statement said. The jets launched from sites in Jordan and the Persian Gulf, in coordination with US forces. Three teams of attackers including seven suicide bombers attacked the national stadium, the concert hall and nearby nightspots on Friday. In addition to those killed, the attacks wounded 350 people, 99 of them seriously. French authorities have identified several suspected attackers, most with links to France or Belgium. A French official identified the sus-pected mastermind as Belgian Abdelha-mid Abaaoud, who is said to be linked to the thwarted attacks on a Paris-bound

high-speed train and a Paris area church earlier this year. The official has direct knowledge of the investigation, but is not authorized to be publicly identified as speaking about the probe. As efforts were being made to cap-ture those behind the attacks, more de-tails have emerged of those who carried them out. The Paris prosecutor’s office said on Monday one of the suicide bombers who blew himself up in the Bataclan music hall on Friday night was Samy Amimour, a 28-year-old Frenchman charged in a terrorism investigation in 2012. Amimour was placed under judicial supervision, but dropped off authorities’ radar in 2013 and an international arrest warrant was issued. An attacker who blew himself up outside the national soccer stadium was said to have been found with a Syrian

By David Cagahastian

PhiliPPine CeOs have proven more bullish and anticipate generating more revenues this

year than counterparts elsewhere in countries making up the Asia-Pacific economic Cooperation (Apec). expectations for revenue growth are low among CeOs of corporations operating in other Apec jurisdictions, but not among CeOs based here in the Philippines.

According to the Apec CEO Survey conducted among 800 CEOs from the 21 Apec member-economies, it is only in the Philippines where expectations for growth in revenues are high, both for the short-term pe-riod (next 12 months) and medium- term period (next three to five years). The survey results are consis-tent with the assessment of such global-risk analysts, as Moody’s

Investors Service, for instance, which has reported that global output is slowing given that the sources or engines of expansion in developing economies now “adjust to the slow-ing global trade and the commodity price shock.” The price shock pertain for the most part to the slump in oil and gas prices, and impact this has on countries that relied on their continued deceleration.

domestic product. By next year, the government will have completed paving all 7,000 kilometers of na-tional primary roads across the ar-chipelago, Singson said. Investors have identified poor infrastructure as a key deter-rent to investing in the Philip-pines, and Aquino has ramped up spending on airports, roads and flood-control projects since tak-ing office in 2010. While Philip-pine’s competitiveness ranking has improved since then, the

nation still lags neighbors like Thailand and Indonesia on infra-structure, according to the World Economic Forum. To ease congestion in Ma-nila, elevated highways are being built, which could be finished by 2017 to 2018, Singson said. These would help reduce traffic jams by about 30 percent on the capital’s main highway, Epifanio de los San-tos Avenue, which stretches more than 20 kilometers, he said.

Bloomberg News

Aquino. . . Continued from A1

management “with special empha-sis on the process of prevention and mitigation, preparedness, response and rehabilitation.” Coloma reported that dur-ing the bilateral talks,  Bachelet assured President Aquino that Chile values friendship and coop-eration with the Philippines and is looking forward to next year on the 70th anniversary of the diplomatic relations between the two countries.  It was noted that the Philippines was the first country in Southeast Asia to have diplomatic ties with Chile. Coloma said that,  Chile’s top officials also agreed to “share and exchange information, particularly on preparedness for earthquake and tsunami given recent experiences. He added that President Aqui-no also sought and obtained sup-port for the Philippines’s pro-spective application to join the Trans-Pacific Partnership “af-ter requirements for structural adjustments are addressed by the Philippines.” “Both countries will continue to expand cooperation in energy and natural-resources development,” Coloma said, pointing out that the country’s  Energy Development Corp. owns 70 percent of the Mari-posa geothermal project in Chile in a joint venture with Compania de En-ergia. In turn, he said Bachelet offered assistance in sharing Chile’s extensive experience in mining development.  “President Aquino welcomed and accepted this offer,” Coloma

said, adding that the two leaders also reached agreement on “another area of cooperation [involving] rice production,” where the Philippines will share technology and expertise with Chile. President Aquino acknowl-edged that Manila and Chile have “enjoyed warm relations for almost seventy years: relations founded on a shared history and common-alities in faith, tradition, culture and values.” In brief remarks, he told Chilean officials that “our gathering today is indicative of our shared desire to advance this partnership.” Mr. Aquino reported that he and Bachelet “had engaging and broad-ranging discussions on the need to strengthen our relationship and also to explore new opportunities for cooperation.” He said the LOI on enhancing trade ties between the two coun-tries mandate the DTI and the Gen-eral Directorate for International Economic Relations of Chile to continue talks in 2016 to “develop a framework for a mutually ben-eficial trade agreement between our countries.” For her part, Bachelet said her state visit was “an excellent opportu-nity to deepen ties and to establish a substantial work agenda in bilateral areas.” She pointed out that in the bilateral area, “Chile and the Phil-ippines are seeking to promote and diversify trade, and because of that, we are initiating talks regarding free-trade agreement.”

Joint ventures. . . Continued from A1

See “US-China,” A2

See “France,” A2

Good Governance and other points of interest president aquino engages andrew stevens of cnn in a discussion at the asia-pacific economic cooperation 2015 ceo summit on november 16 of, among others, a government program injecting tens of billions of pesos under a conditonal cash-transfer scheme to help boost the local economy. the pair also dwelled on the president’s early successes at good governance where some of the biggest names in politics have been made to account for alleged official misdeeds. Stephanie tumampoS