BusinessMirror November 24, 2015

A ranking trade official said Trade Secretary Gregory L. Domingo pre-sented the CARS Program and the draft IRR to Japanese officials dur-ing the Japan-Philippines bilateral meeting on the sidelines of the Asia- Pacific Economic Cooperation meet-ing in Manila last week. The said program offers P27

billion worth of incentives, plus nonfiscal perks, in a bid to spur auto production in the country.

“We felt the need to present it to the Japanese officials to update them on the progress of the pro-gram,” the source said.

Japanese car brands, as the

GLOBE Telecom Inc. is tak-ing aim at bigger rival Phil-ippine Long Distance Tele-

phone Co. in the prepaid wireless market by teaming up with Cherry Mobile to boost smartphone usage among consumers that can least afford one.

The alliance with Cherry Mobile, the leading smartphone brand in the Philippines, will help the phone company grab more customers in the market’s largest segment, Globe Telecom President Ernest Cu, said in an interview. “Cherry with Globe produces

great proposition for the mass market, a market that can’t afford a smartphone,” Cu said. “Cherry is the strongest phone brand for the mass market and our goal is to help speed the adoption of data.” Cherry Mobile this month start-ed a prepaid wireless service pow-ered by Globe’s network, targeting the almost 96 percent of 117.11 million mobile-phone users in the country that access services on a pay-as-you-go basis. Cu expects the Cherry service to have 2 million

B B F

ASSERTING that at least P96.8 bil-lion in tax breaks have already been granted under his term, President

Aquino said he is still not backing income-tax reforms—even just the proposal adjusting tax brackets to inflation—until there is no compensating revenue measure on the table.

Mr. Aquino asked the proponents of tax bills to first seek solid sources of funds to fill in the projected fiscal gap from foregone rev-enue seen to ensue from proposed adjustments

in the bill amending individual and corporate income-tax rates set two decades ago. In a coffee meeting with reporters at Hotel InterContinental Kuala Lumpur on Sunday after attending the Asean summit in Malaysia, Mr. Aquino added that he would rather not rush approval of a pogi bill at the expense of his successor. “Ang premise i-review natin ’yung income- tax rate, parang iyon ang latest na narinig ko sa kanila, para sabi nila ‘to keep up with the in-flation,’” the President said, referring to his recent meeting with Congress leaders seeking

Palace support for the income-tax relief bill.Mr. Aquino recalled asking Congress

leaders to first find a “balance” that would offset the P30-billion revenue loss from the proposed tax-reform measure, which the next administration could reverse by raising taxes anew.

“So tanong ko lang nga sa Kongreso, sabi ko: “Malaki ang pressure sa inyo. Talagang pogi bill ’yan. Sana may balanse para sigurado tayo,” he said. “Ayokong sabihin, ‘sige babawasan ko ang buwis niyo’ tapos baka naman ’yung sumunod...

CHINA refuted claims it is militarizing the disputed South China Sea, saying it needs to build facilities on artificial

islands and reefs to protect them. “As the islands and reefs are far from China’s mainland, it is necessary to main-tain and build necessary military facilities,” Vice Foreign Minister Liu Zhenmin said at a briefing in Kuala Lumpur after an Asso-ciation of Southeast Asian Nations (Asean) summit. “This is necessitated by China’s

national defense purpose and to protect those islands and reefs.” “One should never link such military fa-cilities with efforts to militarize the islands and reefs and militarize the South China Sea,” Liu said. China has engaged in a recla-mation program that’s dumped millions of tons of sand and coral onto islands and reefs where it claims sovereignty. Its actions have been focused on the Spratly Islands within waters that carry about 30 percent of global

trade. China is building as many as three airstrips there, prompting concern in the US that its actions will provide it with military bases and risk hindering the free movement of shipping.

Liu’s comments reflect an effort by China to cast its South China Sea activities in a nonconfrontational light. Officials have also said that facilities on the islands, such as lighthouses, will help ships from other countries navigate the waters and assist in

search and rescue operations.The South China Sea was a topic at both

Asean in Malaysia and the Asia-Pacific Eco-nomic Cooperation forum in Manila that preceded it, as the US seeks to preserve its influence in Asia and China to gain it. China is looking to translate its economic clout into greater military sway, with the South China Sea becoming the focal point of the broader geopolitical shifts in the region.

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PESO EXCHANGE RATES ■ US 47.1960 ■ JAPAN 0.3840 ■ UK 71.7190 ■ HK 6.0900 ■ CHINA 7.3917 ■ SINGAPORE 33.4131 ■ AUSTRALIA 34.1332 ■ EU 50.2637 ■ SAUDI ARABIA 12.5856 Source: BSP (23 November 2015)

www.businessmirror.com.ph ■ Thursday 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEK■ Tuesday, November 24, 2015 Vol. 11 No. 47

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TTTTINSIDE

COMMENTARY:THE RAPE OF

VIRGINIA P.AGAIN »D2

D1

Life Tuesday, November 24, 2015

Life BusinessMirror

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

OH H Lord, You search us and You know us. Lord, You search us and You know us. Lord, You search us and You know us. You know our resting and our rising; You You know our resting and our rising; You discern our thoughts from afar. You mark discern our thoughts from afar. You mark

when we walk or lie down; You know all our ways when we walk or lie down; You know all our ways through and through. For it was You who formed through and through. For it was You who formed our inmost being; knit us together in our mother’s our inmost being; knit us together in our mother’s womb. Now and forever, we thank You. Amen.

Knit us together

LOUIE M. LACSON, PSALM 139LOUIE M. LACSON, PSALM 139Word&Life Publications • [email protected]@yahoo.com

B JT N

CHRISTMAS has little to do where you spend it, as long as you’re with people closest and dearest to your heart, right? Now would you fancy a Yuletide season in the great outdoors

with mountain ranges for Christmas trees and a sky full of stars for Christmas lights?

Alviera’s “Christmas Jamboree” is offering exactly that this November 28 and 29 in its outdoor adventure park, Sandbox, in Porac, Pampanga, which will be transformed into a Christmas wonderland.

With holiday games, traditional camping treats, arts and craft workshops, among others, to go with the festive Christmas vibe in the air, Alviera General Manager John Estacio said, “This unique outdoor experience is filled with Christmas-themed activities that are guaranteed to make every member of the family smile, from little kids to the kids-at-heart.”

Campers can choose from two packages for the Christmas Jamboree, which both include round-trip transportation from Manila to Alviera. First is the “Day Dasher” for day trippers, and the other one is the “Christmas Campers,” which include overnight camping accommodations and more on top of the offerings day trippers get.

Day Dashers will be able to enjoy the use of Sandbox facilities, that include the first roller-coaster zipline in Asia to the tallest giant swing in the country, plus holiday-themed offerings, such as the “Christmas Cookie Corner,” “Merry Angel-Making, Parol-Making Sessions,” and “Quiz Kringle.” More activities are in store when night falls, including dancing with LED lights, a sing-along to Christmas songs, star gazing with professional telescopes and star experts, and outdoor viewing of favorite holiday movies.

Meanwhile, Christmas Campers can enjoy all the aforementioned offerings plus camper exclusive activities such as a “Jamboree Jingla Night,” “Santa’s Campfire Smores,” “Christmas Stocking Surprise” and “Merry Morning Buffet.” Those who will avail themselves of this package will also have a bonfire treat complete with grilled set dinner, free use of Coleman tents for the overnight stay, exclusive use of Sandbox the morning after, plus a buffet breakfast.

Christmas Jamboree follows the trail of another outdoor fest Alviera hosted earlier this year, titled Brightfest, which was to welcome the summer. This time, to accommodate more people, the campsite’s

capacity has been increased to 50 percent from 200 to 300. Estacio said the Alviera Christmas Jamboree gives people a peek into the future of the 1,125-hectare Alviera property, Ayala Land’s first mixed-used development in the northern and central Luzon. It is touted to be the growth center of the region that will house commercial, business and residential districts.

Estacio added that they put great emphasis on preserving the environment of Alviera, saying, “Even

when [it is] fully developed, with all the houses and offices, we will always preserve certain portions of the land as sacred spaces.”

Another point of emphasis is the promotion of awareness on nature preservation for its tenants and visitors, like the ones coming for the Christmas Jamboree. “We want to bring people closer to nature so there will be awareness. Hopefully, awareness will lead to appreciation and appreciation would lead to

preservation.” Aside from that, Estacio said Alviera, through the

Christmas Jamboree, prides itself in being an avenue for memories. “We want to bring everybody together, establishing spaces for families to create memories that will last them a lifetime.”

■ For reservations and booking, guests can visit the Travel Factor web site at http://travelfactor.org/././

Christmas out in the open

Habitat Manila opens in Bonifacio Global CityHABITAT, Europe’s iconic home-design brand, has finally opened its first showroom in Manila.

Founded in London by the visionary designer Sir Terence Conran, Habitat has been setting the standard for practical, affordable, yet exquisitely designed furniture and home accessories in Europe for over 50 years.

With its headquarters and design studio now based in Paris, France, the brand has recently marked new milestones with franchises opened in multiple Asian cities.

On October 16 Habitat Manila opened its 1,500-square-meter showroom to shoppers in Bonifacio Global City. Designers, clients and business partners were treated to an exclusive preview of the store’s vast range of signature products and pieces from its Autumn-Winter 2015 collection.

Among the featured products in the showroom are

furniture by the legendary Arch. Robert Mallet-Stevens, kitchenware designed by Michelin-starred Chef Thierry Marx, and other collaborations with some of Europe’s biggest design stars. Exclusive European-made furniture and décor created from Habitat’s own design studio also take the spotlight.

“We are happy to bring these elegant Habitat products to home-design lovers in the Philippines,” Habitat Manila Director Walter Lim said.

“We feel that the brand is perfect for people who, like us, admire the casual chic lifestyles of Paris, London, Madrid and other modern European cities.”

Habitat Manila (www.habitat.com.ph)www.habitat.com.ph)www.habitat.com.ph is in the third level of Abenson, beside The Ascott Residence, on the corner of 28th Street and 4th Avenue, Bonifacio Global City, Taguig City.

HABITAT has been designing for the home since 1964.HABITAT has been designing for the home since 1964.HABITAT

HABITAT Design International and General Manager of China Romain SeilerHABITAT Design International and General Manager of China Romain SeilerHABITAT

A GALLERY of frames at Habitat ManilaGALLERY of frames at Habitat ManilaGALLERY

NAOKO armchair by designer Naoko Kanehira; Tree floor lamp from Habitat Design Studio; and Galets side table

COLORS and textures from the New York Central Park-inspired Autumn-Winter 2015 collection, Metropolis in velvet, linen and satin pillows at Habitat Manila METROPOLITAIN, Cypraea tableware

HABITAT Pure HABITAT Pure HABITATCollection candles and scents

BusinessMirror www.businessmirror.com.phD4 Tuesday, November 24, 2015

Art

AI WEIWEI has taken his beef with Lego public, and the public has responded by throwing its support behind the outspoken Chinese artist

and free speech activist.Just as October was drawing to a close, the artist

claimed on social media that Lego has refused to sell him a bulk order of Lego blocks to use in planned works of art for an exhibition at the National Gallery of Victoria in Melbourne, Australia.

On his Instagram account, he asserted that the reason for Lego’s refusal was because the works are of a “political” nature.

He wrote: “As a powerful corporation, Lego is an influential cultural and political actor in the globalized economy with questionable values. Lego’s refusal to sell its product to the artist is an act of censorship and discrimination.”

Since he took his �ght public, Ai has received numerous o�ers of Lego donations from followers and fans online. The artist has stated that he will set up collection points in cities around the world.

Lego, which is a privately held, family-owned company based in Denmark, said in a statement published by NPR that “as a company dedicated to delivering great creative play experiences to children, we refrain—on a global level—from actively engaging in or endorsing the use of Lego bricks in projects or contexts of a political agenda. This principle is not new.”

The company has been ramping up its business activity in China. Lego has reported robust sales growth in China for recent quarters, and last year opened a main o�ce in Shanghai. The company is building a factory in Jiaxing, China, that is expected to be fully operational by 2017.

The National Gallery of Victoria is scheduled to present

Andy Warhol/Ai Weiwei, an exhibition devoted to both Andy Warhol/Ai Weiwei, an exhibition devoted to both Andy Warhol/Ai Weiweiartists, starting in December. The show will be presented at the Andy Warhol Museum in Pittsburgh next year.

Ai has long cited Warhol as a major in�uence on his work as a visual artist. Like Warhol, he has cultivated the media as a signi�cant part of his creative endeavors.

Ai has been a consistent thorn in the side of Chinese o�cials, using social media to show his support for free speech. In 2011 he was arrested in Beijing and kept in secret detention for 81 days. He was later released but forbidden from leaving the country. His passport was returned to him earlier this year.

The artist has used Lego blocks in the past to create politically themed works. In his recent exhibition at Alcatraz in northern California, he used Legos to create portraits of Edward Snowden and Nelson Mandela.

Los Angeles Times

Ai Weiwei vs Lego: Chinese artist takes on toy company

B A G

THE Autonomous Region in Muslim Mindanao (ARMM) marks its 26th anniversary this November with peace programs and pageantry. �e campaign, with the theme “Breaking

Barriers: Journey �rough Bangsamoro Culture and History Toward Peace and Development,” is comprised of a series of events that highlight the Muslim lifestyle and activities that will help spur for the passage of the Bangsamoro basic law.

For a number of centuries, Mindanao has been a separate region, which allowed it to establish its own culture and identity. �is territory has been the homeland of Muslims ever since Arab trader Karim ul’ Makhdum arrived in Sulu archipelago in the 14th century. Sultanates were established and maintained their independence even during the Spanish period. For over four centuries, Moros have resisted colonizers and have fought for their independence from the Philippine republic. �e ARMM was established in 1989 by a law that mandated an independent region in Muslim Mindanao. �e ARMM was inaugurated on November 8, 1990, in Cotabato City, the provisional capital.

�is year’s festivities began from November 6 to 8 with a pilgrimage to the Sheikh Makhdum Mosque, the cradle of Islam in the Philippines in Simunul, Tawi-Tawi. �e mayor hosted a feast of traditional cuisine outside of the mosque after the prayers.

�e Master Chieftain Competition, meanwhile, was a culinary contest among the seven ARMM tribes: Tausug, Yakan, Maranao, Maguindanaon, Sama, Iranun and Teduray. It was

held on November 11 at the Shari� Kabunsuan Cultural Complex. Inspired by the reality cooking competition MasterChef, the competition engaged MasterChef, the competition engaged MasterCheftribal chieftains and sous chefs from the seven tribes to present their indigenous cuisine, ranging from appetizer to dessert.

November 18 turned out to the busiest day in the anniversary celebrations. �e equivalent of the Mardi Gras, the cultural street dancing showcasing ethnic dances, started along Gov. Gutierrez Avenue and ended at the ORG Compound in Cotabato City. ARMM also continued its monthly free legal and health services at the same venue.

In the evening, Handog Pasasalamat” the annual thanksgiving concert, featured the dances of ARMM’s ethnolinguistic groups. The following evening, November 19, ARMM celebrated its 26th anniversary with another concert at the ORG Complex, with folk artists Coritha and Asin are guest artists.

On November 29 the Peace Parade and Mindanao Week of Peace (MWOP) invites MWOP volunteers, peace advocates and various groups to show their support for nonviolent means to end con�icts in Mindanao.

�e Bike for Peace on November 30 enjoins cyclists to travel from Cotabato City and Midsayap in North Cotabato to Datu Piyang and Datu Saudi ing Maguindanao. ARRM’s ethnolinguistic groups will again be highlighted in a competition in exotic weaving at the ORG Compound.

One of the agendas of ARMM Regional Gov. Mujiv Hataman with this year’s celebration is to raise people’s awareness of peace as an individual and collective responsibility.

HOW often do you get richer with a post on your social media? Here’s your chance today: Look around, rediscover your

surroundings and spot any form of art. Because your next post about art is your ticket to win P450,000 jackpot in #ArtLotto, an advocacy by Publicis JimenezBasic, E. Zobel Foundation, and 4As Creative Guild of the Philippines that aims to raise consciousness and appreciation for Filipino art, and eventually intends to make you richer—both in the pocket and in the mind.

Raymund Sison, cocreator of #ArtLotto and a creative director at PJB, said the idea came up after observing that you can actually �nd art everywhere in the Philippines. “It’s in underpass tunnels, along highways, in co�ee shops and restaurants, in o�ces, in schools, on streets—practically everywhere. Through #ArtLotto and in collaboration with artists, we hope to make more Filipinos pay more attention to all the art around. It’s an attempt to democratize art, to make it more inclusive instead of exclusive, and ultimately make people from di�erent age groups and walks of life be more conscious of art everywhere,” he said.

“It’s a fun, playful way to do art consciousness among Filipinos,” says Ryder Aquino, cocreator of #ArtLotto. He explained that they made the project mechanics as simple as possible using social media—a channel that is accessible to most Filipinos and has become part of most people’s daily life. “#ArtLotto is open to anyone with a Twitter or Instagram account. To join, you just need to snap a photo or take a video of an art, upload it on Twitter or Instagram and then add the hashtag #ArtLotto in your status post. It’s as simple as that. This automatically serves as your ticket to win P450,000 which will be ra�ed o� in January 2016,” he said.

Adding the #ArtLotto hashtag also allows the post to be part of a people-curated online art gallery found at www.artlotto.ph. This web site houses images and videos of all forms of art captured by netizens—from visual to theater to dance to literature to �lm to architecture to music.

The project #ArtLotto hopes to ride on the growing openness of the Filipinos to various art forms as demonstrated by recent successes of contemporary art fairs, cinematic productions and stage plays that enjoyed wide support and even commercial success.

When asked about #ArtLotto, notable Filipino artists all agree that the project presents art consciousness in a new way to people who are usually oblivious to the arts.

Famous sculptor and contemporary artist Leeroy New said: “#ArtLotto is a great platform to engage people in the �eld of creatives. It’s a good starting point to help people realize that art can be seen and applied everywhere.”

Creator of #humansofmanila and a big supporter of art, Emil Tapnio said: “Art is not just for the rich and the educated; art is for everyone, for every Filipino. And that’s exactly what #ArtLotto aims to achieve.”

To learn more about #ArtLotto, “Like” the Art Lotto Facebook page or visit www.artlotto.ph.

I N its latest exhibition, 5 Stars: Art Reflects on Peace, Justice, Equality, Democracy and Progress, Singapore Art Museum (SAM) salutes Singapore’s

Golden Jubilee and the five stars on the Singapore flag representing universal humanist ideals. Ho Tzu Nyen, Matthew Ngui, T.K. Sabapathy, Suzann Victor and Zulkifle Mahmod—five of the nation’s art luminaries whose lifelong commitment to art as a discipline are inimitable and exemplary—were invited to ponder and respond to each of the nation’s core values. Through the creative and curatorial process, they offer nuanced and layered interpretations of the abstract concepts of peace, justice, equality, democracy and progress, which resonate with Singapore’s multifaceted, complex identity. Engaging with “big ideas” through contemporary art, 5 Stars encourages contemplation of what these shared human ideals mean in the present day, and how they might continue to help us envision our futures. The SAM curatorial team was led by Senior Curator Joyce Toh, together with Senior Curator Tan Siuli and Curator Louis Ho. 5 Stars is ongoing until May 2, 2016.

ARMM CELEBRATES

26 YEARS

A COMPETITION in exotic weaving is one of the ways the ARMM region is celebrating the anniversary.

#ArtLotto: Making more Filipinos pay attention to art

Singapore Art Museum salutes Singapore’s Golden Jubilee through ‘5 Stars’

WARRIORS TIE RECORD

SportsBusinessMirror

C1 | TUESDAY, NOVEMBER 24, [email protected]@businessmirror.com.phEditor: Jun Lomibao

LONDON—The Olympic tennis tournament remains the only big singles title Roger Federer has yet to add to his collection. Looking ahead to next season, add to his collection. Looking ahead to next season,

though, it’s not the Rio de Janeiro Games that are at the top of his mind.

“It’s not my No. 1 priority. It starts with the Australian “It’s not my No. 1 priority. It starts with the Australian Open, which is just around the corner,” Federer said on Sunday after losing to Novak Djokovic in the title match at Sunday after losing to Novak Djokovic in the title match at the Association of Tennis Professionals (ATP) finals. “That’s the Association of Tennis Professionals (ATP) finals. “That’s what I see next. Then once Australia’s over, that’s when I look more toward the future.”

Rio should—surely—be the last chance the 34-year-old Federer gets to collect that elusive singles gold medal. He won doubles gold at the 2008 Beijing Olympics with Stan Wawrinka, but lost the singles final to Andy Murray at the London Games in 2012, shortly after beating the Briton for his seventh Wimbledon title on the same Centre Court at the All England Club. He’ll be less familiar with the surroundings in Rio, although he remembers fondly his trip to Brazil to play exhibition matches in 2012.

“I don’t know what the crowd support is going to be like [in Rio]. I had a blast in São Paulo, the three matches I played there. All of South America was fantastic, to be honest,” Federer said. “For me to have done that trip, it was the trip of a lifetime. It was one of done that trip, it was the trip of a lifetime. It was one of my favorite 10 days of my life if I just talk about tennis. my favorite 10 days of my life if I just talk about tennis. It was really that cool.”

Federer lost 6-3, 6-4 to Djokovic on Sunday at the O2 Arena, having also been defeated by the top-ranked Serb in the Wimbledon and US Open finals this ranked Serb in the Wimbledon and US Open finals this year. But when it comes to working on his game in the year. But when it comes to working on his game in the off-season, it’s not necessarily about finding ways to get the better of his rival.

“Not really, because I feel like I need to work on my overall game that is going to have an impact against most of the players,” Federer said. “For me, Rafa [Nadal] is the unique player in the field. I used to work more precisely toward him.

“With Novak, it’s more straightforward. If you don’t play very well, you’re going to have a hard time. If you’re going to play better, I know I have my chances with my game.”

Djokovic beats Federer in straight sets to win at ATP Djokovic beats Federer in straight sets to win at ATP finals. As usual this season, Djokovic was the best player finals. As usual this season, Djokovic was the best player on the court.

The top-ranked Serb won his fourth straight title at the season-ending ATP finals on Sunday by beating at the season-ending ATP finals on Sunday by beating six-time champion Federer.

Djokovic, who won three Grand Slam titles this year and reached the final in the other, capped the best season and reached the final in the other, capped the best season of his career with another superb display, including winning 16 of the 19 points on his second serve and saving both break points he faced.

“I couldn’t ask for a better finish of the season,” Djokovic said. “For some reason or another, I’ve been playing some of my best tennis after the US Open, in Asia and also indoors, both Paris and London.”

Federer beat Djokovic on Tuesday in the group stage, but the 17-time Grand Slam champion made too many mistakes in the final on Sunday. Federer ended up with 31 unforced errors, including 15 from his usually reliable forehand.

He even gave away the final point with his second double-fault of the match.

“It would have been nice to serve a little bit better early on in the match, play better overall on his second serve, because he does allow you to play on his second serve,” said Federer, who lost to Djokovic in the 2012 finals and pulled out of last year’s championship

match against the Serb with a back injury. “Maybe at times I went for too much.”

Federer finishes his season with a 6-5 record in finals, with all five losses to Djokovic. Two of those came at Wimbledon and the US Open, giving Djokovic his ninth and 10th major titles.

For Djokovic, it was a season to remember.Besides becoming the first man to win four straight

titles at the tournament for the top 8 players in the world, Djokovic will also finish the season at the No. 1 player for the fourth time in five years. He won the Australian Open, Wimbledon and the US Open, and reached the finals at the French Open.

The latest victory, his 82nd of the year, evens the head-to-head record against Federer at 22-22. On Saturday in the semifinals, he evened his head-to-head record against Rafael Nadal at 23-23.

“Those two rivalries made me a better player, the player I am today, no doubt,” Djokovic said. “Made me understand what I need to do, both on and off the court, to be able to be in this position now.”

On the court, both Djokovic and Federer had break chances in the opening two games, but both managed to save them.

The first breakthrough for Djokovic came in the third game. With Federer serving at 30-30, the Swiss player thought he had his first ace of the match. But Djokovic challenged the call, and won.

After a long rally from the second serve, Djokovic hit a backhand winner to get to break point, and then Federer put a forehand into the net.

Djokovic broke Federer’s serve two more times, first to win the first set and then to win the second when Federer

double-faulted.“It was close. First six games were tough, to be

down 4-2. I had my chances to at least be even,” Federer said. “Still high-quality match, I thought.” AP

B D LSan Jose Mercury News

DENVER—The Golden State Warriors have reached 15-0, equaling the record for the best start in National Basketball Association (NBA) history, after dispatching the Denver Nuggets, 118-105, on Sunday.

Klay Thompson scored 21 points, and Stephen Curry needed to play only three quarters and scored a season-low 19 points, as the Warriors matched the 15-game winning streak the Houston Rockets started with in 1993 and the Washington Capitols had in 1948.

The Warriors can break the record on Tuesday at Oracle Arena with a win against the Los Angeles Lakers.

The Warriors, during the streak, have weathered the absence of Steve Kerr, a six-game stretch where Andrew Bogut was sidelined, and opponents giving their best efforts against the defending champions.

Against the Nuggets, the Warriors fought off the altitude and defensive complacency to pull away for the win.

Facing the second-worst three-point defense in the league, Golden State did what it does best and went 15 for 29 from beyond the arc, as Thompson hit four of them. It didn’t help the Nuggets that leading rebounder Kenneth Faried missed the game with a sprained ankle.

The Warriors led by six points in the third quarter, before Curry capped a 7-0 run with a three-pointer that came fortuitously after a missed dunk by Festus Ezeli. Harrison Barnes threw down a vicious one-handed dunk as part of the run.

The Warriors pushed the lead to 19 points in the fourth with Curry and the starters on the bench.

The historical moment was on the minds of both teams before the game. The Warriors openly discussed how they would go for the record. Nuggets Coach Michael Malone noted how ESPN made a late decision to broadcast the game.

“I liken it to we’re the Washington Generals playing the Globetrotters,” said Malone, the former Warriors assistant coach. “Nobody’s here to see us. And we’re OK with that.”

Curry capped a 9-0 run in the first with a three-pointer, and a steal and lay-up on the other end to give the Warriors a 22-15 lead.

Andre Iguodala had a steal, dribbled behind his back and passed for an alley-oop dunk to Shaun Livingston to

extend the lead to 34-23 at the end of the first.extend the lead to 34-23 at the end of the first.The Nuggets would get back into the game. They hit The Nuggets would get back into the game. They hit

their first six shots of the second against the Warriors’ their first six shots of the second against the Warriors’ substitutes and then took a 51-50 lead after Curry and substitutes and then took a 51-50 lead after Curry and the starters checked back into the game.the starters checked back into the game.

But the Warriors responded immediately with an 8-0 But the Warriors responded immediately with an 8-0 run as Thompson scored five straight points and assisted on run as Thompson scored five straight points and assisted on Barnes’ three-pointer. Thompson followed with back-to-Barnes’ three-pointer. Thompson followed with back-to-back three-pointers, as the Warriors led 64-58 at halftime.back three-pointers, as the Warriors led 64-58 at halftime.

In the other games on Sunday, it was Toronto 91, In the other games on Sunday, it was Toronto 91, Los Angeles Clippers 80; New Orleans 122, Phoenix 116; Los Angeles Clippers 80; New Orleans 122, Phoenix 116; Brooklyn 111, Boston 101; Oklahoma City 117, Dallas 114; Brooklyn 111, Boston 101; Oklahoma City 117, Dallas 114; and Portland 107, LA Lakers 93.and Portland 107, LA Lakers 93.

In Oklahoma City Russell Westbrook had 31 points and In Oklahoma City Russell Westbrook had 31 points and 11 assists, hitting two key baskets in the final 63 seconds, 11 assists, hitting two key baskets in the final 63 seconds, and Oklahoma City rallied from a double-digit third-and Oklahoma City rallied from a double-digit third-quarter deficit to snap Dallas’s six-game winning streak.quarter deficit to snap Dallas’s six-game winning streak.

Serge Ibaka had 16 points, nine rebounds and a key Serge Ibaka had 16 points, nine rebounds and a key late blocked shot for Oklahoma City, which was without late blocked shot for Oklahoma City, which was without star forward Kevin Durant (injured hamstring) for the star forward Kevin Durant (injured hamstring) for the sixth straight game.sixth straight game.

Westbrook broke a 113-113 tie with a jumper with 1:03 Westbrook broke a 113-113 tie with a jumper with 1:03 left. Zaza Pachulia made one-of-two from the free-throw left. Zaza Pachulia made one-of-two from the free-throw line to pull the Mavericks within a point before Westbrook’s line to pull the Mavericks within a point before Westbrook’s 18-foot jumper with 24 seconds left capped the scoring.18-foot jumper with 24 seconds left capped the scoring.

Deron Williams led Dallas with 20 points, but missed Deron Williams led Dallas with 20 points, but missed an 18-footer and had his lay-up attempt blocked by Ibaka an 18-footer and had his lay-up attempt blocked by Ibaka on consecutive possessions, and Wesley Mathews’s last-on consecutive possessions, and Wesley Mathews’s last-second off-balance heave from three-point range came second off-balance heave from three-point range came nowhere close to the basket.nowhere close to the basket.

In New Orleans Anthony Davis capped a 32-point, In New Orleans Anthony Davis capped a 32-point, 19-rebound performance with a tiebreaking three in the 19-rebound performance with a tiebreaking three in the final minute to lead New Orleans past Phoenix.final minute to lead New Orleans past Phoenix. Davis, whose rebound total set a season high, also Davis, whose rebound total set a season high, also

blocked four shots and had two steals. His last block blocked four shots and had two steals. His last block came with 22 seconds left, when he tapped Mirza came with 22 seconds left, when he tapped Mirza

Teletovic’s three-point attempt from the right corner offline. The ball fell to Pelicans guard Ish Smith, and New Orleans held on from there.

Ryan Anderson, who scored 30 in each of his previous two games, had 29 points for New Orleans. Eric previous two games, had 29 points for New Orleans. Eric Gordon added 20 points, while Smith had 17 points, nine Gordon added 20 points, while Smith had 17 points, nine rebounds and eight assists.rebounds and eight assists.

Eric Bledsoe scored 29 points for Phoenix, which lost Eric Bledsoe scored 29 points for Phoenix, which lost despite hitting 17 three-pointers. Brandon Knight had 19 despite hitting 17 three-pointers. Brandon Knight had 19 points, but missed 13 of 18 shots.points, but missed 13 of 18 shots.

Brook Lopez had 23 points and 10 rebounds, Jarrett Jack Brook Lopez had 23 points and 10 rebounds, Jarrett Jack scored 13 of his 22 points in the fourth quarter and Brooklyn scored 13 of his 22 points in the fourth quarter and Brooklyn earned a split of the teams’ home-and-home series.earned a split of the teams’ home-and-home series.

Two nights after the Celtics won by 25 in Boston, the Two nights after the Celtics won by 25 in Boston, the Nets dominated the second quarter that was pivotal in Nets dominated the second quarter that was pivotal in both games and held on after blowing most of a 22-point both games and held on after blowing most of a 22-point lead, their largest of the season.lead, their largest of the season.

Joe Johnson added 17 points for the Nets, who have won two in a row at home, where they have barely played this season.

Isaiah Thomas and Avery Bradley each scored 27 points for the Celtics.

Klay Thompson scored 21 points, and Klay Thompson scored 21 points, and Stephen Curry needed to play only three Stephen Curry needed to play only three

quarters and scored a season-low 19 points, quarters and scored a season-low 19 points, as the Warriors matched the 15-game winning as the Warriors matched the 15-game winning

streak the Houston Rockets started with in 1993 streak the Houston Rockets started with in 1993 and the Washington Capitols had in 1948.and the Washington Capitols had in 1948.

STEPHEN CURRY and the Golden State Warriors go 15-0. AP

WARRIORS TIE RECORD

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TIE RECORDSTEPHEN CURRY and the Golden State Warriors go 15-0. AP

FOR 2016 season, Roger Federer won’t look past Australian Open. AP

FEDERER’SPRIORITY

ART D4

SPORTS C1

CHRISTMASOUT IN THE OPEN

ARMMCELEBRATES26 YEARS

WARRIORSTIE RECORD

Globe ties up with Cherryto boost mass-market grip

LIFE D1

China: Distant South China Sea reefs need our protection

AYALA LAND EXPANDING ASEAN PRESENCEPROPERTY giant Ayala Land Inc. is seeking more in-

vestment opportunities in Southeast Asia after it acquired a stake in a Malaysian development and

construction firm. Ayala Land Chief Financial Officer Jaime Ysmael said that, while the company is now focused on its acquisi-tion of Malaysian MCT Bhd, it is still looking for oppor-tunities in Asean, particularly in Indonesia, Thailand and Vietnam. “Our plan is to really look at investing into established companies, with the organization to execute, rather than starting, greenfield because by doing that, we minimize the risk,” Ysmael said in an interview. “We also ensure that there is an immediate con-

tribution to our bottom line by having a stake in a estab-lished operator who shares the same values as Ayala Land,” he added. Ysmael noted that the developer has been scouting for investment opportunities for several years now. He said it has also invested in Asean prior to the Asian crisis, and even countries outside of the region, such as China. “But now I think we would like to really focus on Asean…. Other than Malaysia, we have not had any spe-cific discussions yet,” he said. In October Ayala Land increased its stake in Malaysian construction company MCT Bhd. from 9.16 percent to 32.95 percent, for $92 million. PNAS “G,” A

S “C,” A

C A

AQUINO STILL NOT GIVING HIS‘BOSSES’ INCOME-TAX RELIEF

REMEMBERING MAGUINDANAO MASSACRE Philippine journalists light candles in front of the marker for slain journalists to commemorate the sixth anniversary of the massacre of 58 people, including 32 journalists, in Maguindano province in southern Philippines on Monday at the National Press Club in Manila. Members of the powerful Ampatuan clan, led by the deceased Andal Ampatuan Sr., were the prime suspects in the massacre of media workers, in what was described as the deadliest single attack on media workers in the world. AP

B C N. P

THE Japanese government was the first to get a glimpse of the implementing rules and

regulations (IRR) of the Comprehensive Automotive Resurgence Strategy (CARS) scheme, as Manila is banking on the commitment of Japanese automakers that they will join the program once it is officially rolled out.

Tapos ’di ba ’yung susunod sa akin magsabi: ‘wala tayong magagawa kailangan kong taasan ang buwis niyo.’ Mumu-rahin naman ako ’no.” Aquino added: “Oh baka naman maalala pa ng taong-bayan na ako ang magmungkahi na bawasan na alam ko namang dadagdagan. Ayoko naman masabi ’yon. So, ayaw mong pinaasa tapos wala. Gusto kong masigurado at iyon ’yung dini-discuss namin sa kanila: sana may balanse. May tatanggalin kayong ganito, saan natin babawiin ’yan? Saan gaganda ’yung pangongolekta natin para mabawi ’yung mawawala diyan. Para sigurado lang tayong lahat ng mga ginagawa natin matuloy natin ang pagpopondo sa kanila.”

The President pointed out that during his watch, “we have already actually given at least 96.8 billion in tax relief over the past several years,” noting that this was “brought about by the increase of the threshold bago sa

13th-month pay bago mo ita-tax.” He noted that “the previous figure was P30,000, kapag lumagpas doon taxable na, naging P82,000 na ngayon. So tinaasan natin ’yan. Iyong isa pa iyong tinatawag nilang ‘de minimis benefits.”’ Aquino recalled that when he was campaigning for the presidency in 2010, “sabi ko hindi ako magtataas ng buwis. Ang sabi ko kokolektahin ’yung nandiyan na. At sa totoo lang ang target kasi sa tax-collection administration efficiency was 16 percent. And we have actually done only 13.6 per-cent, okay.” The President said they also found out that many “professionals” were paying tax rates barely above the minimum-wage level. “Karamihan nang...ang daming mga professional ulit, ano, na nagbabayad, parang bahagyang lu-maktaw sa minimum wage. So we are talking about doctors, lawyers, etc.... Parang of the estimated 2 million in that

category, 400,000 ang nagbabayad.. may 2 million na sector tayo na dapat ma-tax, okay. Ang nagbabayad lang talaga 400,000. Iyong 400,000 na iyon ’yon ’yung nagbabayad na pa-rang bahagyang lumagpas sa minimum wage ang kinikita nila, iyon ang issue.” Meanwhile, another bill seeking to adjust the levels of taxable income to inflation has been filed recently at the House of Representatives. In House Bill 6258, the vice chairman of the House Committee on Ways and Means, Nacionalista Party Rep. Raneo E. Abu of Batangas, is pushing for the reduction of the income tax of an individual taxpayer

to be based on the current Consumer Price Index (CPI). The measure also seeks to amend Section 24 of the National Internal Revenue Code (NIRC) of 1997, as amended, pertaining to income-tax rates, so the rates of tax on taxable income of individuals shall be computed in accordance with and at the rates es-tablished in the following schedule: those earning not over P20,500, the income tax shall be 5 percent; over P20,500, but not over P61,500, the tax shall be P1,025 plus 10 percent of the excess over P20,500; over P61,500, but not over P143,500, the tax shall be P5,125 plus 15 percent of the excess over P61,500; over P143,500, but not over P287,000, the tax shall be P17,425 plus 20 percent of the excess over P143,500. In addition, those earning: over P287,00 but not over P512,500, the tax shall be P46,125 plus 25 percent of the excess over P287,000; over P512,500, but not over P1,025,000, the tax shall be P102,500 plus 30 percent of the excess over P512,500; and over P1,025,000, the tax shall be P256,250 plus 32 percent of the excess over P1,025,000. Abu said his proposal aims to give every ordinary Filipino taxpayer the equity he deserves in the country’s tax laws, which will put him and the family he supports in a better position to cope with life’s daily financial demands. “By doing this much-needed fair tweaking of the individual income-tax brackets, together with the amounts of personal and additional exemption, in accordance with current CPI and automatically af-ter every three years thereafter, this government can rightfully claim that it has done justice to every

ordinary Filipino working man,” Abu said. Liberal Party Rep. Romero S. Quimbo of Mariki-na, chairman of the House Committee on Ways and Means, has expressed hope that the measure adjusting the levels of taxable income to inflation will be passed into law before the 16th Congress ends next year. “We will take them up, at the same time, as the other bills,” Quimbo said.

Quorum NATIONALIST People’s Coalition Rep. Rodolfo T. Albano III, meanwhile, urged fellow legislators to diligently attend the remaining sessions of the 16th Congress, not only to pass vital pieces of legislation, but also leave a legacy of being a working and productive Congress. Albano said while he recognizes the fact that every lawmaker has to attend to district constituents, every House member’s primary duty is to attend sessions and actively participate in debates and discussions of mea-sures both of local and national importance in the House. “We have to make the most out of remaining session days in Congress. Let us cooperate and help the House leadership make the quorum to enable the lower house to transact it business,” he added. “Obviously, the national and local elections next year is foremost in the minds of my fellow legislators and all is ask, is for my colleagues to focus on and dedicate their time to pass urgent and vital legislation in the remaining session days of the House. After their legislative duties are done, they can campaign all they want for 2016,” Albano said. With Jovee Marie N. Dela Cruz

BusinessMirror [email protected] Tuesday, November 24, 2015 A2

News

Mindanao. . . Continued from A8

Continued from A1

Continued from A1

Light rains

TYPHOON “MARILYN” (IN-FA)1,000 KM EAST OF CASIGURAN, AURORA

(NOVEMBER 23, 5:00 PM)

Aquino still not giving his ‘bosses’ income-tax relief

dominant players in the Philippine auto industry, have been express-ing their desire to participate in the country’s CARS Program. Automo-tive is also a major component of the Philippines-Japan Economic Partnership Agreement. According to Board of Investments (BOI) Executive Director Corazon Halili-Dichosa, the IRR of the much-awaited CARS Program has been transmitted to Domingo last week and is now ready for the final round of consultations and signing. Toyota and Mitsubishi, according to the BOI, are the likely participants

in the program, but are waiting for the IRR’s release to determine if they can meet its hurdles or not.

Draft IRR IN the draft IRR, the model life budget (MLB), or the fiscal support allocated per enrolled model, has two types of incentives: 40 percent of the MLB is reserved for the fixed investment support (FIS) scheme, and 60 per-cent will go to the production volume incentive scheme. According to a draft of the IRR obtained by BusinessMirror, the FIS is further divided into three categories: manufacturing of body shell assembly and large plastic as-

semblies; common parts and shared testing facility; and production of strategic parts. According to the annex of the IRR, strategic parts include automotive-grade fabric, engine parts and assem-bly, engine mount, transmissions/transaxle parts and assembly. A trade official said these stra-tegic parts were chosen because t hey a re not c u r rent ly being produced in the Philippines at acceptable standards. To be eligible for the FIS, partici-pant car makers (PCMs) and regis-tered parts makers must manufac-ture all “large plastic assemblies and no less than 50 percent, by weight,

of the ‘body shell assembly’ covered in the program within three years of getting the certificate of registration from the BOI.” According to the CARS Program executive order, the body shell as-sembly consists of the full set of metal components that goes from the body shop to the paint shop for one vehicle. Large plastic parts refer to all major plastic parts of bumpers, instrument panels, center controls and door trims. The incentive is meant to entice investments in large auto parts that are currently being imported, such as large car body panels, bumpers,

PHL woos Japan on new auto-resurgence program

instrument panels and head lamps, among others. Moreover, based on the draft IRR, models that have been previously en-rolled in the Motor Vehicle Develop-ment Program (MVDP) of the DTI can still be registered after the effectivity of the CARS Program, subject to re-quirements. “In such cases, the PCM’s qualified investments made prior to the registra-tion to the CARS Program for the model may be considered for the FIS, provided these are indicated in the PCM’s MVDP application,” the IRR read. The CARS Program, seen as the cornerstone of the government’s Manufacturing Resurgence Program (MRP), envisions the Philippines to become a major auto-manufacturing hub in Asia. The country is current-ly a laggard in the Asean region in car production.

a mobile text message seeking clarification. The National Power Corp., which has operational con-trol over the generation plants, posted only the daily water level at its hydroelectric power plants along the Agus River traversing the two Lanao provinces, and that of the lone Pulangui Power Plant in Maramag, Bukidnon. The water level at the hydroelec-tric plants has remained slightly above the minimum operational level and replenished mainly by rain-fall the past four weeks. This development came on the heels of brownouts across most of Mindanao on November 6 after an NGCP power pylon in Barangay Guimba, Marawi City, was toppled by a bomb by still-unidentified armed men. The pylon carried high-tension wires that transmit electricity from the Agus plants to service areas across Mindanao.

Customs Memorandum Order (CMO) 40-2015 has specified BOC personnel’s responsibilities to ensure adequate security for the goods be-

ing transferred.It will guarantee that only duly

approved goods are withdrawn/transferred; goods that may have

BusinessMirror [email protected] A4

Economy

By Henry Empeño Correspondent

SUBIC BAY FREEPORT—The Subic Bay Metropolitan Au-thority (SBMA) is pushing for

the establishment of a container freight station (CFS) to make ship-ping a breeze at the Port of Subic. SBMA Chairman Roberto Garcia said in a news briefing here on Mon-day that the planned facility will be put up by the International Contain-er Terminal Services Inc. (ICTSI), operator of Subic’s New Container Terminal (NCT). Garcia said the CFS will be an-other innovation on top of other SBMA initiatives, like one-stop-shop processing and an aggressive mar-keting program that were designed to further cement Subic’s stature as a competitive shipping port.

“This way, there’ll be no more warehousing as the goods could be loaded directly into delivery trucks,” Garcia added. “That means there will be no downtime, too.” A CFS is basically a facility where goods are prepared for transport to their next destination. In the case of exports, the goods are packed and consolidated into containers, while in the case of imports, these are “devanned” or deconsolidated from containers. Garcia announced the planned CFS project as he reported on Subic’s continuing growth as a seaport. He said that early this month, Subic marked the unloading of the 100,000th cargo container for this year, which came from Kaohsiung, Taiwan. “Last year we recorded just 77,000 TEUs (twenty-foot equiva-

lent units),” Garcia recalled. “But having reached the 100,000th mark in November, we are well on our way to hit 120,000 TEUs this year,” Garcia said. The SBMA official added that the China South International Barter Center (SIBC), one of the biggest on-line sellers in the world, is also pro-posing to make Subic a transhipment hub for its Asian shipping operations. Garcia said earlier that the SBMA has been successful so far in mar-keting Subic as an alternative port to Manila because it is the only port in Luzon with a one-stop shop for cargo processing. He pointed out that Subic now has seven shipping lines unloading and taking in cargo on a regular basis after President Aquino signed Execu-tive Order 172 that designated Subic as an alternative port to Manila.

THE P1-billion People’s Sur-vival Fund (PSF) is “all sys-tems go,” and the PSF Board

is now awaiting for the endorsement of the Climate Change Commission (CCC) for the implementation of vari-ous climate-change programs and projects sought for financing under the special fund. Renato Redentor Constantino, executive director of climate poli-cy group Institute for Climate and Sustainable Cities, a civil-society organization representative in the PSF Board, said the mechanism is now in place—from accepting the project proposal, evaluation, vali-dation and approval to release of fund—for the implementation of approved program or project. He said the CCC is currently evaluating various project proposals and is open to more proposals, both from local government units (LGU) and civil-society organizations. Constantino said the proposed projects will be approved or rejected based on merits. But first, he said, applicants must qualify, and that the criteria for the project should be met. The CCC, which acts as the sec-retariat of the PSF Board, screens the project proposals and makes sure that the proponents, as well as projects, qualify based on the criteria set by the PSF Board. “We are still waiting for the Cli-mate Change Office recommenda-tion. They are still evaluating,” he said. Constantino urged LGUs and community organizations to strict-ly follow and work within the PSF guideline for the speedy approval of proposals. Those seeking funding for their programs or projects, he added, should submit the complete docu-mentary requirements for the CCC to immediately start evaluating the merit of the projects. Delay in the approval of projects,

he said, is expected if the LGUs or non-governmental organizations (NGOs) fail to submit all docu-mentary requirements. “If the documents are incomplete, it will be returned to the LGUs by the sec-retariat,” he said. The PSF Board has released a checklist for LGUs and NGOs seek-ing the fund for their projects. The checklist, as well as all other infor-mation about the PSF, are posted in the CCC web site. The utilization of PSF encourages consultation with community stake-holders who will benefit from or be affected by the proposed projects. One of the requirements that LGUs need to submit is the minutes of the meeting of LGU or NGO consultation with the communities. Along with the project proposal, the proponents are required to sub-mit sanggunian or board resolution affirming the interest of the project proponent to apply, and author-izing the Chief Executive to enter into an agreement with the PSF Board for the implementation of the project; certified true copies of accreditation and registration with Securities and Exchange Commis-sion for community organizations; organizational structure; audited financial statement covering the last three years; vulnerability, risk assessment hazard maps and relevant documents indicating climate-risk exposure; feasibility study; administrative order creat-ing implantation unit; program of work; and detailed cost estimates of the project. All LGUs can access the fund but the PSF Board has set the criteria for it to be accessed, which include poverty incidence (40 percent), ex-posure to climate risks (30 percent) and presence of key biodiversity area (30 percent). The call for proposals for the PSF was announced on October 24 by the CCC. Jonathan L. Mayuga

Tuesday, November 24, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

It’s all systems go to avail of PSF funding

diverted from the intended destina-tion can be identified; and intended transfer is successfully delivered at the approved destination.

Under the CMO, Customs employ-ees assigned in Peza shall be limited to: a) approval of General Transpor-tation and Surety Bond (GTSB); b) selective examination of goods cov-ered by the electronic zone transfer of document, or e-ZTD, both prior to exit from ELSE and upon to spe-cific destination; c) support tracking transfer; d) support initiation at the earliest possible recovery operation for divided transfer and certification of GTSB; and e) support the spot – checking of destination warehouse.

Deputy Commissioner Agaton

Uvero noted that the implementa-tion of the e-ZTS in July promoted transparency and facilitated transac-tions among Peza locators and will further reduce the cost of doing busi-ness for the exporters.

“The e-ZTS will also allow both Customs and Peza authorities to monitor, in real time, the transfer and movement of tax- and duty-free goods among the ecozones, thereby reducing the possibility of illegal transfers and withdrawals of goods into the domestic mar-ket,” he said.

The issuance of CMO 40-2015 is one of many steps that are taken by the BOC to be on a par with the in-ternational customs standards. PNA

BOC revises role in Peza, ecozone import processes The Bureau of Customs (BOC) has

redefined the role of its personnel in the process of goods transfer

between ecozone Logistics Service enterprise (eLSe) facilities and partner Philippine economic Zone Authority (Peza) locators utilizing the electronic Zone Transfer System (e-ZTS).

‘Belenismo sa Tarlac 2015’ The “Belenismo sa Tarlac,” an annual tradition that started in 2007 to promote both the art of Belen-making and the bayanihan spirit among the people of Tarlac, had for this year 27 entries that qualified for the finals. Dr. Isa Cojuangco-Suntay, chairman of the Tarlac Heritage Foundation, said winners will be announced on Saturday. PNA

Subic port eyes container freight station

Cargo unloading at the New Container Terminal in the Subic Bay Freeport. SBMA Photo

AFTER giving way to the hosting of the 2015 Asia-Pacific Economic Coopera-

tion (Apec) summit last week, the Senate returned to work on Monday to start debates on the proposed P3.002-trillion national budget for 2016.

Senate Finance Committee Chairman Sen. Loren Legarda said the Senate would like to leave a leg-acy budget that is socially inclusive, gender sensitive, climate adaptive, attuned toward reducing disaster risks, and that mainstreams cul-ture and heritage.

“Foremost, I wish to dedicate this budget to all the victims and survivors of disasters, whether caused by natural hazards, such as typhoons Yolanda and Lando, among many others, or man-made tragedies such as the Zamboanga siege and the abuse and displace-ment of our lumads,” she said in her sponsorship speech on the 2016 General Appropriations Bill (GAB).

“We need a budget that not only responds to the basic needs of our citizens but also proac-tively addresses the risks that threaten the very basic needs we aim to provide our people. We need a budget that reduces and manages existing risks and pre-vents the creation of new risks,” Legarda added.

Under the new appropriations of the GAB, Legarda said a to-tal of P87.93 billion have been allotted for programs, projects and activities for disaster risk reduction (DRR) and climate change adaptation and mitiga-

tion (CCAM) lodged in different government agencies.

“This is still a small percentage, an indication that we have not to-tally mainstreamed disaster resil-ience and climate adaptation in gov-ernment programs. Thus, we have included special provisions that will integrate DRR and CCAM in the programs of the government,” Legarda said.

Legarda added that special provisions have been included in the budget to ensure the construction of safe and resil-ient infrastructure projects, which will have a total budget of P766.3 billion.

The lady senator said the Senate has proposed new appropriations worth P2.118 trillion in unpro-grammed funds.

As mandated by the Constitu-tion, the Department of Education (DepEd) will receive the highest budget worth P411.5 billion, 15 percent higher compared to 2015 due to the K to 12 Program.

Legarda said the national budget is also the country’s tool to translate the international economic and trade agreements signed in the recently concluded Apec and Asean Summit in Kuala Lumpur “to measurable gains.”

“It is time that we empower those who are traditionally left behind. It is time that we chan-nel our resources to programs that will ensure sustainability so that we leave our children a liv-able country that they deserve,” Legarda said.

Sen. Ralph Recto, vice chairman of the Senate Finance Committee,

said the P57.9 billion of the national budget will go to the first tranche of the Salary Standardization Law 4 next year.

To improve the capability of the military, some P25 billion will be allocated for the mod-ernization of the Armed Forces of the Philippines.

Some P210 million has been al-located to support programs for farmers, fishermen, rural liveli-hood and small entrepreneurs to promote inclusive growth. The amount does not include P9.9 bil-lion for loans for qualified farmers, fishermen and micro, small and medium enterprises.

In social services, the allocation for the Conditional Cash-Transfer Program for 2016 is worth P62.67 billion that will support 4.62 mil-lion family beneficiaries.

To ensure the swift dispensa-tion and resolution of court cases, the government has increased the judiciary budget of P26.68 billion for 2016, or 27 percent higher than the 2015 allocation.

In 2016 Recto said taxpayers will remit P2.025 trillion to the Bureau of International Revenue, while the Bureau of Customs will try to col-lect P498.7 billion.

”Individual income taxpay-ers will contribute P439.3 billion. Companies and enterprises will add P736.6 billion,” he said in his own sponsorship speech.

To make sure the proposed 2016 national budget will be passed be-fore the Christmas break, the Sen-ate will hold morning and afternoon sessions exclusively for the budget plenary debates. PNA

Senate starts plenary debates on ₧3.002-T 2016 natl budget

briefslower gas, diesel prices at the pump

Oil firms will rollback pump prices on Tuesday.in separate advisories, Petron Corp., Seaoil

Philippines inc. and PTT Philippines said they will cut gas prices by 75 centavos per liter and diesel prices by 50 centavos per liter on Tuesday.

Petron, Seaoil and Pilipinas Shell Petroleum Corp. will also slash kerosene prices by 80 centavos per liter.

Shell, on the other hand, slightly has different prices as it will rollback gas prices by 65 centavos per liter and diesel prices by 45 centavos per liter.

Petron and Seaoil will implement the price changes at 12:01 a.m., while Shell and PTT will lower its fuel prices at 6 a.m. PNA

senate passes bill strengthening the nursing professionThe Senate on Monday approved on third and final reading a bill creating a comprehensive nursing law that will lead into the creation of quality health-care systems in the country.

Voting 14-0, the senators passed Senate Bill 2720, or Comprehensive Nursing law of 2015, sponsored by Senate committee on Civil Service and Government Reorganization Chairman Sen. Antonio Trillanes iV.

in his sponsorship speech, Trillanes said the measure intends to “expand the scope of nursing practice to encompass not only the nursing education service but also research, and leadership and governance, as inherent areas of the practice.”

“Due to the growing number of nurses in the country, some are forced to work under job order or contractual terms or seek better opportunities abroad because the government fails to address the needs of their profession,” Trillanes said.

he added that the situation must be changed, given that Filipino nurses are widely recognized as “among the best health-care providers in the world. Our nurses’ skills and brand of service are very much recognized and sought abroad.” PNA

[email protected] Tuesday, November 24, 2015 A5BusinessMirrorEconomy

“We do hope that Congress would support us on this so as to prevent any untoward incidents,” NGCP Spokesman Cynthia Alabanza said during a briefing on Monday after-noon. “We hope there’s legislation on this matter prohibiting the plant-ing of trees, building of high-rise structures, and burning of waste and other materials.” The NGCP is the country’s grid operator. It legally holds the right-of-way (ROW) in the areas near and around the towers and posts. The assets are still government-owned. NGCP Operations and Assets Head Lambert Gacuya said that violations of ROW have already claimed the lives of two people in the past. He said the NGCP has not been remiss in its duties to regu-larly inform the public, particularly

squatter dwellers, about the safety issues when building structures along the high-voltage lines. The NGCP also coordinates with local government units (LGUs) to discuss the need for local officials to remind their constituents about the effects of violating ROW. These include outage of line resulting in power interruption, hasten dete-rioration of structures and lines, and compromise safety of people and properties that breached the safe clearance. Despite efforts to discourage violators, many still build struc-tures, including a barangay hall and basketball court, underneath the tower and transmission lines. The walls of the structures built by the informal settlers, added the of-ficials, are already attached to the

ngcp eyes legislative option to resolve row conflictsBy Lenie Lectura

The National Grid Corp. of the Philippines (NGCP) wants lawmakers to pass legislation

that would criminalize the construction of permanent structures underneath the transmission lines and towers.

steel bars of the towers. Among the transmission lines af-fected by the ROW issues in north of Metro Manila include the Quezon-San Jose lines; Quezon-Mexico; Quezon-Duhat; Quezon-San Ra-fael, San Jose Hermosa; and Tay-tay-Malaya. The said transmission lines covers the cities of Caloocan, Valenzuela and Quezon. In the south, the NGCP has iden-tified the problematic transmission lines. These are the Biñan-Sucat; Su-cat-Araneta; Dasmariñas-Amadeo; and Dasmariñas-Zapote. Some LGUs have enacted ordi-nances that criminalize the planting of trees and building of structures. Elements of the Armed Forces of the Philippines are also currently assisting NGCP in entering the properties of the uncooperative landowners to expedite restoration. But the NGCP officials said that more should be done. “ROW issues hound both urban and rural areas. Worse case that could happen is the incident in Mindanao,” said Alabanza, who was referring to the loss of power supply from the Agus 1 hydroelectric power plant due to ROW issues. NGCP reported an uncooperative landowner, Mitmug Dimaampao, who refused to allow the grid opera-tor to conduct line maintenance and repair activities within the property.

Dimaampao is the same landowner who previously barred NGCP line-men from entering the property to cut trees which obstruct the trans-mission lines. There were also 10 bombing inci-dents in Mindanao that resulted in toppled towers and posts. In Manila, Alabanza said, power outage could still be avoided should ROW violations escalate. However, what can’t be avoided is the possible

spike in generation charge due to “re-dispatch of power plant.” NGCP reiterates its appeal for the public’s cooperation and warns that ROW violations along transmission lines compromise not just the safety of the people, but also the security of the power grid. The Department of Energy, for its part, said that it is enjoining all stakeholders to render support and assistance in safeguarding power

facilities from any obstructions that would affect the continuous supply of electricity to all households and establishments. “We appeal particularly to the local government units and land owners to cooperate with the NGCP, the concessionaire of the national transmission lines, in resolving the transmission issues on right of way and easements,” Energy Secretary Zenaida Y. Monsada said.

THE Manila Electric Co.’s (Meralco) impending entry in renewable energy (RE) could lead to possible partner-ships with local and foreign entities already involved in

the RE space. “Given the global developments on RE, and especially solar, Meralco is interested in exploring partnerships with local and global players,” Meralco Senior Vice President for Customer Retail Services Alfredo Panlilio said. “We think that the RE space will grow, and we want to be part of that growth,” Panlilio added without saying who the possible entities are. Renewable source of power include solar, wind, biomass, ocean, geothermal and run-of-river hydro. Meralco’s imme-diate interest is in solar. “We are eager to get into solar, but with an electrical engineer’s eye out for ensuring the con-tinued safe and reliable operation of the distribution grid,” Panlilio said. Meralco Chairman Manuel V. Pangilinan has said that his group will establish a new unit that would solely focus on RE. “Pretty soon. I will say toward the end of the year,” he said. “We are looking at solar, not just utility grade solar but we will start probably with rooftops. So, for that business, we need to have a separate subsidiary and separate management.” In preparation for this, Meralco is constructing a research and development and technical-training facility that will be called Meralco Power Tech, a two-story structure that will be powered by solar and wind. The facility, which will feature the use of Smart Grid, is worth P150 million. Aside from solar panels, Pangilinan said his group is also eye-ing in venturing into battery storage. “Eventually, that will be part because you have to store the power. We will just install the solar panels first,” he said. Pangilinan added that Meralco is mindful of the techno-logical development capable of disrupting Meralco’s busi-ness model. “I think the fact that Meralco will enter the solar market signifies that we will disrupt. We think it as a future threat. So, we will be the first to disrupt ourselves because if we don't do it, others will do it for us. So, rather than have somebody kill us, we might as well kill ourselves because it will be more fun,” he said. Nonetheless, Pangilinan said these developments will trans-late to shifts in the energy mix with growing penetration of renewables potentially at grid parity. “They will also lead to new ways of defining the quality of services, and of creating value for the customer, enabled by a smart or smartrer grid,” Pangilinan added. Lenie Lectura

Meralco suits up for RE venture

Tuesday, November 24, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA6

China ignores the PHL and the US

editorial

According to the Associated Press, President Aquino mentioned the territorial dispute with china and its activities in the West Philippine Sea eight times in two days.

Mr. Aquino was quoted as saying, “Why bar us from our own waters?” and “Aquino dares china: Take lead in sea-row pact.” He further said in Malaysia, regarding china, that “The world is watching and expects no less from a responsible global leader.”

US President Barack obama also said at the Association of Southeast Asian nations (Asean) meetings in Malaysia, “For the sake of regional stability the claimants should halt reclamation, construction and militarization of disputed areas.” The US further pledged some $250 mil-lion to regional nations, of which Philippine government officials were excited to learn “The US will also be giving the Philippines the most support among countries in the region—$79 million—to beef up maritime security.”

Administration supporters were extremely pleased with President Aquino’s “tough talk” and in-your-face approach to dealing with the chinese. Those counting on the backing of the US in the Philippines’s dispute with china took heart when President obama said, china must “stop land reclamation” in the area. And this: “We have a treaty obligation, an ironclad commitment to the defense of our ally, the Philippines.”

As if the chinese had read the script beforehand, they waited until the Philippines and the US have taken their best shot, and then responded.

While the US was promising to continue its “Freedom of navigation” drills in the area, the chinese announced that they would be spending $2 billion to purchase 24 russian-made Suk-hoi Su-35S fighter jets comparable to almost anything the US currently has in service. Further, the chinese and russians have been negotiating this contract since 2011.

The US pledged $250 million to countries in the region. in Malaysia, china offered $10 billion in infrastructure loans and another $560 million in additional aid to underdeveloped Asean members.

in a further opportunity to simultaneously ignore and counter Philippine and US state-ments, china’s Vice Foreign Minister Liu Zhenmin said, “Building and maintaining necessary military facilities, this is what is required for china’s national defense.” china plans to “expand and upgrade” the civilian facilities on the island and “Washington was testing Beijing with its insistence on ‘freedom of navigation’ patrols in the strategic waterway.”

Vietnam and the Philippines have the greatest and most immediate stake in what hap-pens in the disputed territories. At the Apec 2015 meeting, a statement was signed between the two nations for the “Establishment of a Strategic Partnership.”

However, international news services also noted with some emphasis that “Aquino and [chinese President] Xi have not had a formal bilateral meeting.” And “The two presidents only had an informal 10-minute conversation on the sidelines of the Apec summit in Bei-jing last year. This year, officials said Aquino and Xi talked for two minutes during the Apec meeting in Manila.”

now, with all the rhetoric and posturing at these regional conferences over, the critical question is, what does the Philippine government do next?

With the Philippine Stock Exchange Composite index (PSEi) trendless and still range-bound between about 6,800 and 7,200, life is relatively boring for stock-

market traders.

LaSt week scientists announced they’d discovered a gene spreading among bacteria in China that renders them resistant to some of the world’s most powerful, “last resort”

antibiotics. if such invulnerable bugs spread, doctors may soon lack the tools needed to combat infections, whether contracted through chemotherapy, surgery or even simple cuts. indeed, the post-antibiotic “apocalypse,” as this scenario has been known for a decade, may already be upon us: there’s evidence that the resistant genes have made their way to Lao PDR and Malaysia.

Revisiting the rules for traders

How China can prevent the apocalypse

Certainly there are always a few “rocketchips” that take off and then crash, adding maybe some profits and excitement. however, there is a large segment of local stock-market traders that are active but are not in-terested in trying to catch the next stock ramp or are large enough that the thin liquidity in many of these issues do not provide sound entry and exit points. it is worthless to the million-peso trade to try and ride a stock that is trading P5 million to P10 million per day.

Nevertheless, the local stock mar-ket is not going to be a “stuck mar-ket” much longer. it is only a matter of time. Weeks or even months, it does not matter.

the “No. 1” rule that the experts are fond of quoting is “Do not trade too much.” Genuine experts with re-al-life experience say that the smaller trader has a large advantage over big

traders in that the small guy (and P1 million is small) can pick trades more carefully. Small traders can pick trends and entry points better than the big boys as long as there is liquidity and volume.

“Do not trade too much” actually means to follow this idea of being more selective, but it does not mean that you should not limit the number of trades you make in a week, for ex-ample, to some sort of magic number.

in fact, with the great volatility that we have seen because of the lower average daily volume, there have been multiple short-term trad-ing opportunities in stock trading several hundred million pesos per day. if you see a trend that can be traded, take advantage of it.

“Unprofitable traders risk too much to make too little.” traders that are not able to make consistent profits are usually guilty of ignoring

antibiotic resistance isn’t new. alex-ander Fleming, who discovered penicil-lin, presciently warned in his 1945 Nobel Prize address that casual overuse of his miracle drug could promote resistance. in recent years the US has suffered sev-eral cases of foodborne illnesses that didn’t respond to existing drugs. But the real threat lies in China, where a large, dense population and close interactions between people and livestock have long made the country a breeding ground for new infectious diseases. to control the problem, the world has to control it in China first.

that won’t be easy. China’s millions of farmers are notorious for pumping their livestock full of antibiotics—

roughly three times more, pound for pound, than counterparts in the US; agriculture accounts for perhaps half of antibiotic use in China. the practice, pioneered in the 1940s in the US, in-creases yields for farmers, but also cre-ates an ideal environment for bacteria to develop resistance. Bigger herds of-fer bigger evolutionary opportunities and China—with the world’s largest pig and poultry industries—is particularly susceptible. the drug-resistant gene that scientists reported last week is believed to have evolved in Chinese pigs.

human patients also contribute to the problem. China’s health-care system is designed to push drugs unnecessar-ily. Chinese hospitals receive limited

the reward/risk equation, which also includes the serious error of always thinking “how much can i make if i’m right, instead of “how much can i lose if i’m wrong?”

trying to make a 100-percent profit when the probability of reach-ing that objective is only 10 percent is obviously not as good as trying to make a 10-percent profit when the probability is 100 percent. all right, there are no situations of 100-per-cent probability of being profitable.

however, you must decide a num-ber for the probability of winning based on your analysis. then select your profit exit point. the stock is P27 and you see a move to P32 as likely for an 18-percent profit. You assign a 60-percent probability of the price going to P32.

the downside cut-loss support is at P24 for an 11-percent loss, which has a probability of 40 percent based on the inverse of your profit likeli-hood. Multiplying the percentage of profit or loss by the probability gives you a “reward/risk factor” of 10.8 to the upside and 4.4 to the downside (18 times 40 percent and 11 times 40 percent). that is not very good because the reward/risk is 2.45.

Suppose the support cut loss was only 5 percent lower than your entry point rather than you being willing to take an 11-percent loss. Now the “reward/risk” factors go to 10.8 profit and only 2 loss. that is much better

with a reward/risk at 5.45.this goes hand in hand with an-

other important thought. Unprofit-able traders think trading is about being right. Profitable traders know that profitability is about putting the statistical odds in your favor. Every toss of the coin is 50-50 and every roll of a dice is one in six for any particu-lar number. although we know that stock-price movement is not a random event, we need to calculate “odds” to increase gains and lower risk. But we also know that stocks that “should” go higher too often do not.

if the odds on a roll of the dice is one in six, then you have to be able to win “six” for every “one” you bet. Otherwise, it is a terrible and foolish bet. if in the stock market you are risking 11 percent to gain 18 percent, then you need the “odds” of the price going higher at least 80 percent for a reward/risk of 3.3. alternatively, you need a higher price target.

Unless you are a stock-market genius in predicting price move-ments—and no one is—then you need a method to determine if your investment is worth the risk.

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

government support and face price caps on fees and doctor salaries. they thus rely on pharmaceuticals for around 50 percent of their income and most of their profits. antibiotics account for around 25 percent of drug sales.

Patients have grown used to de-manding antibiotics even when they’re unneeded or ineffective. according to a World health Organization (WhO) survey released last week, more than 60 percent of Chinese believe antibiot-ics can cure colds and flu. (they can’t: those illnesses are viral.) Worse, nearly half of respondents thought they should keep taking antibiotics even after feeling better—a textbook method for breeding drug-resistant bacteria. Some 57 percent of Chinese had taken antibiotics in the last six months. a separate December 2014 survey found that 78 percent of colds in China were “treated” with antibi-otics. Nearly 40 percent of all antibiotics were prescribed incorrectly.

Reforming China’s health-care system—which encompasses around 300,000 hospitals and clinics—is a daunting task. But it’s not impossible. as part of a 2011 reform effort, China’s Ministry of health set antibiotic-pre-scription benchmarks and worked with key hospitals in a pilot program to meet them. Penalties included demotions, dis-missals, revoked accreditations and even public shaming. the effort succeeded in reducing prescriptions and deserves to be extended nationally.

Meanwhile, the government could

make better use of its propaganda ap-paratus to educate Chinese about the basics of antibiotics. Such a campaign would face a potentially receptive au-dience: according to last week’s WhO survey, 83 percent of Chinese believe that farmers should give fewer anti-biotics to livestock. they can surely be convinced of the dangers of over-prescribing for humans, as well.

Changing farmers’ minds may be most difficult. to start, the government needs to impose an immediate ban on the agricultural use of last-resort antibiotics. though unlikely to be totally effective (China has millions of small farmers), meaningful penalties and high-profile prosecutions would go a long way to re-ducing usage.

at the same time, the government should promote the market for anti-biotic-free meat as part of its food-safety campaigns. in the US McDon-ald’s has promised to phase out the use of antibiotics in chicken by 2017. it and other companies that use large volumes of Chinese livestock should be encouraged to do the same in China. With consumer concerns over anti-biotics running high (in 2012, KFC’s China business was badly damaged by news that its chickens exceeded China’s lax antibiotic standards), such an effort would receive broad public support. at a minimum, China might succeed in putting off the apocalypse long enough for researchers to come up with some badly needed new drugs.

OUTSIDE THE BOXJohn Mangun

BLOOMBERG VIEWAdam Minter

Tuesday, November 24, 2015

[email protected]

THE EnTrEprEnEurManny B. Villar

Police did well in securing Apec

The Philippine National Police (PNP) deserves credit for securing the venues of the recently concluded Asia-Pacific economic Cooperation (Apec) and ensuring the safety

and security of all the delegates, particularly the leaders of the 21 member-economies. The PNP served as the mainstay of the Joint Task Force Apec Security, which was given the task of implementing strict security measures, especially in the wake of the November 13 terrorist attacks in Paris, attributed to the Islamic State, that left 129 people dead and 350 more injured.

PNP Director General Ricardo Marquez, commander of the joint task force, led an inspection team to check critical areas in and around the venues a few days before the start of the event. he also checked on the equipment and state of preparedness of the security forces deployed along Roxas Boulevard and other thor-oughfares near the main venue, the Philippine International Convention Center (PICC) in the Cultural Center of the Philippines Complex.

Marquez personally saw to it that all police personnel deployed in the area were provided ample support in terms of logistics, as well as food while on duty.

The PNP chief also issued orders for the deployment of policemen from nearby provinces to augment those from Metro Manila. More than 30,000 police, soldiers and emergen-cy personnel took part in securing the forum. While some observers remarked that the Aquino adminis-tration should have chosen Clark or Subic as the Apec site to avoid incon-venience to the public and the disrup-tion of school calendars and business activities, the police acquitted them-selves well despite brickbats from those who were adversely affected by the strict security measures and traffic rerouting.

The government allowed mili-tant groups to mount protest ac-tions in areas far from the Apec venue. But the police had to contain protesters who tried but failed to break through the police line in an attempt to march toward the PICC. They warned the protesters to dis-perse or they would be driven away

from the area. The police also used a loudspeaker to play pop songs to drown out the slogans shouted at the top of their voices by the mili-tants.

While the police emphasized that they would thwart any attempt by the protesters to get near the Apec venue, they nevertheless exercised maximum tolerance when they met face-to-face out in the streets, which is why there were no reported serious untoward incidents.

The PNP leadership defended the heavy security and roadblocks implemented for five days as neces-sary since this was the protocol for guarding heads of states, which in-cluded US President Barack Obama and Chinese President Xi Jinping. At the same time, police officials apologized for the inconvenience and traffic gridlocks caused by the security measures.

If Apec proceeded without any serious security or safety concerns, we have to thank the security forces that remained focused on the job at hand.

Vital road project unduly delayed WheN the Aquino administration took office in 2010, it touted the Public-Private Partnership (PPP) Program as its main vehicle for ac-celerating the country’s infrastruc-ture development. It even listed 10 PPP projects that it said would be its priorities. Now, five-and-a-half-years later, with barely six months to go before it hands over power to the next administration, the PPP has apparently gone pffft. As of today, only one PPP project has actually

been completed, with the rest still in the process of public bidding or encountering numerous legal and/or bureaucratic hurdles.

Typical of the excruciatingly slow pace of PPP implementation is the case of the North Luzon express-way (Nlex)-South Luzon express-way (Slex) Connector Road being pushed by the Metro Pacific Invest-ments Corp. (MPIC). This big-ticket infrastructure project has remained in the backburner for a half-decade, no thanks to the utter failure of the concerned government agencies to get their act together.

At the outset, different agen-cies could not agree on whether the MPIC proposal would be carried out through a joint venture (JV) with the Philippine National Construc-tion Corp. (PNCC)—which holds the franchise to the Nlex and Slex—or a Swiss Challenge.

The initial decision favored a JV, and an agreement was signed by MPIC and PNCC in January 2014. But this JV was later junked after a new round of government delibera-tions concluded that a Swiss Chal-lenge would be the best legal option.

The Swiss Challenge was sup-posed to take place in the third quarter of this year, but it has been rescheduled as it must first be ap-proved by the Investment Coordina-tion Committee, and then confirmed by the National economic and De-velopment Authority (Neda) Board.

Yet, another hurdle now is the De-partment of Finance (DOF) objection to the previous stand of the Neda Board itself that the returns to the project proponent should be based on weighted average cost of capital. The DOF says the computation should be based on project internal rate of re-turn (PIRR). If the PIRR calculation is approved, then the proposal has to go back to the Neda, and later, to the Swiss Challenge.

By belatedly raising the PIRR issue, the DOF is now a stumbling block to the immediate implementa-tion of the long-overdue road proj-ect. This only serves to reinforce the perception that the country does not attract more investors because of government’s proclivity to change business rules in midstream.

Why is the Nlex-Slex Connector Road project important?

The P16-billion to P17-billion toll

road linking Nlex-Slex will cut travel time between these two highways to just 15 to 20 minutes.

The Nlex-Slex Connector Road would address not only Metro Ma-nila’s traffic woes but also port con-gestion. It will also improve trans-port logistics as a result of the more efficient movement of cargoes, roll-on, roll-off vessels, and passengers in and out of the ports in Manila. With the reduced travel time, it will encourage businesses to take their cargoes to the alternative ports in Batangas and the Subic Freeport.

The Connector Road would also enhance connectivity between in-ternational airports and seaports, including the Subic Freeport by way of the Nlex-Slex (Subic-Clark-Tarlac expressway) route, the Batangas Port via Slex, and the Clark International Airport to Ninoy Aquino Interna-tional Airport, and improve linkages between the key growth areas of Metro Manila, Central Luzon, North Luzon and the Clark-Subic corridor.

Under the original unsolicited proposal that MPIC submitted to the Aquino administration in 2010, this was supposed to be an P18-billion four-lane elevated expressway that will be 13.4 kilometers long connect-ing Nlex from its Balintawak, Que-zon City, entrance to the Makati City entry of the Metro Manila Skyway 3.

But due to project design changes and regulatory delays, the Connec-tor Road will now be built over the Philippine National Railways tracks from Circumferential Road 3 in Caloocan City to the Polytechnic University of the Philippines in Santa Mesa, Manila.

The project price was initially reduced to P11 billion because its length was cut to 8 km. With the de-lays and the project redesign result-ing from the Neda Board’s approval earlier this year of the North-South Railway Project, the project cost is estimated at P16 to P17 billion.

The Connector Road project could still achieve its revised completion target of 2019 or 2020 if it is approved before yearend. But that’s not likely as the MPIC proposal would still have to go through the mandatory process that could take as long as 90 days to finish. Thus, the awarding date could be in early 2016.

E-mail: [email protected].

Edgardo J. Angara

A Week before the recent Asia-Pacific economic Cooperation (Apec) summit, Chinese Foreign Minister Wang Yi conducted a working visit to Manila to prepare for the arrival of Chinese

President Xi Jinping.

A more neighborly China

Some observers described the development as a sign of possible thawing in icy Filipino-Sino rela-tions, considering an international arbitration court recently ruled that it had jurisdiction to hear the arbitration case Manila filed last year against Beijing over the maritime landgrab.

Also notable were President Xi’s remarks during the Apec CeO’s Sum-mit, where he called on member-

nations to “spare no effort to foster an environment of peace conducive to development and to never allow anything to disrupt the Asia-Pacific development process.”

The Chinese leader’s statements hew close to what analysts have de-scribed as Beijing’s attempts at soft-ening its global image and reassuring its immediate neighbors that its rise is peaceful and thus should not cause any anxiety.

however, the best reassurance that Beijing could give—especially to smaller players like the Philip-pines—would be to demonstrate on the ground its adherence to the rules-based regime of current international law, where might is not right.

Over the weekend, at the Asso-ciation of Southeast Asian Nations (Asean) Summit and the east Asia Summit in kuala Lumpur, Presi-dent Aquino pressed for China to do just that—calling on Bei-jing to take the lead in ensuring the enactment of a legally bind-ing Code of Conduct in the South China Sea.

China had, in fact, already taken a lead role in concluding an aspect of such rules-based behavior—one which an Angara Center for Law and economics panel had recommended in a December 2013 conference on resolving the maritime disputes in the China Sea.

That agreement refers to the Code for Unplanned encounters at Sea (CUeS), approved last year by the navies of 21 Pacific states in-cluding the Philippines, during the 14th Western Pacific Naval Sym-posium held in Qingdao, China. Reports have since emerged of US and Chinese ships maneuvering around each other in accordance with the CUeS—indicating some de-escalation in the tensions.

In response to repeated calls from the US and the Phi l ip-pines for China to stop the mili-tarization and reclamation in the disputed waters, Chinese officials have one way or another said that the two countries shouldn’t stir up troubles in an otherwise peaceful region. But maritime peace and re-gional stability would be enhanced and assured, if China were a better, law-abiding neighbor.

E-mail: [email protected].

IN the private sector, a newly appointed chief executive officer (CeO) does not begin his first day by warming his behind on the freshly installed leather chair in his office. he does not

waste time to indulge on such and other perks, but moves quickly to drive the company’s revenues and profits. I call this attitude “hit the ground running,” which enables businesses to succeed amid tough competition.

Unsolicited advice to the next CEO: Hit the ground running

ABOuT TOWnErnesto M. Hilario

My long career, both in business and politics, has convinced me that “hit the ground running” should be the same attitude of whoever is elected to be the government’s chief executive in 2016. exercising such attitude is more urgent for the next president than for a CeO of a private company because of term limitation.

The president has to achieve within six years what he or she sets out to do during his or her term. While the board of directors of a private firm may give its CeO an extension of his appointment to accomplish his task, no such oppor-tunity is available to the government’s top elected official. That is why aspirants to the presidency should, by this time or earlier, be preparing themselves for the task, so whoever is elected will be able to hit the ground running.

I believe all the candidates already know the challenges that the country must confront to satisfy the demands of the people and the economy. One such challenge, which affects the lives of all Filipinos and basically all sectors of the economy, is infrastructure.

In a speech during the Philippine In-frastructure Development Seminar last February, eonomic Planning Secretary Arsenio M. Balisacan said: “As we all know, infrastructure development is critical in the growth and competitive-ness of the country and its major sectors; in reducing poverty and creating quality employment; in facilitating connectiv-ity and mobility; and in strengthen-ing resilience among people and com-munities in times of natural disasters and calamities.”

This statement echoed the view of the World Bank, which said: “Infra-structure plays an important role in this development process. Insufficient infra-structure has been a major constraint to economic growth and poverty reduction in the Philippines.”

Improving transportation and power systems alone will encourage investors to put up factories, which will generate jobs and stimulate other businesses. The opposite is true when transportation is inadequate and unreliable. Just ask the commuters and motorists in Metro Manila, who have to suffer long queues and hours-long traffic every day as they travel from home to work and back. That’s not counting the stress and other health hazards they have to cope with, also on a daily basis.

I like to think that every administra-tion recognizes the need and importance of pursuing infrastructure development, yet the country’s infrastructure leaves much to be desired. Based on the World economic Forum’s Global Competitive-ness Index for 2015-2016, the Philip-pines jumped seven notches to No. 47 from No. 52 among 144 countries in the previous report. however, the same report listed inadequate infrastructure as the second-biggest obstacle, after cor-ruption, to doing business in the country.

Thus, it is not surprising that net inflows of foreign direct investments plunged by 27.1 percent to $3 billion for the period January to August 2015 from

$4.1 billion for the same period last year.In fairness, the government contin-

ues to push infrastructure projects. The National economic and Development Authority, chaired by the president, has approved 97 projects since 2010 worth a total of P1.39 billion, of which 81 proj-ects with a total cost of P1.24 trillion are considered as critical infrastructure programs and projects.

Only last week, Japan committed about $2 billion worth of official devel-opment assistance to finance the com-muter railway project between Tutuban in Manila and Malolos in Bulacan.

however, it can be expected that the majority of these projects will not see completion before the incumbent ad-ministration steps down next year. This is because undertaking infrastructure projects in the Philippines can be very tedious and time-consuming.

Arangkada Philippines, an online publication of foreign groups in the country, cited a $1-billion light rail project in Metro Manila, which took the Department of Transportation and Communications seven years to approve. Arangkada also said that for 10 years the department was unable to decide how to bid and award another large rail project.

Thus, time is a luxury not available to the next president. One way to ac-celerate infrastructure projects is to do away with piecemeal implementation, which has been the practice for many big-ticket projects. For instance, light-rail projects can be awarded to contractors, at the same time, instead of waiting for the completion of the first phase before bidding the second.

The Pan-Philippine highway, which was first built in the late sixties and im-proved in the late nineties, should also be revived. The highway, which consists of a network of roads, bridges and ferry services spanning more than 3,500 ki-lometers from Laoag in Ilocos Norte to Zamboanga del Sur in Mindanao, paved the way for the development of many ar-eas outside Metro Manila. I believe that modernizing and improving the system will open a lot more opportunities for investments, employment and liveli-hood for communities in the rural areas.

The Philippines is in a good position to undertake a massive infrastructure program because the economy is still moving robustly; the country enjoys high credit rating; interest rates are low; and investors are keen on participating through the Public-Private Partnership Program. We can never have too much of infrastructure, and it is not for the government to say we have enough. In-vestors know the risks—and rewards.

The risk is that, based on past experi-ence, the entry of a new administration may bring us back to square one, where all projects are subjected to another review.

That is why the next president must take a firm position before the six-year tenure begins. Will he or she dilly-dally, or hit the ground running?

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

Obama needs to lead, not scold, on refugeesAMeRICA’S debate over allow-

ing in Syrian refugees is not one of its prouder moments.

And it’s not just because of the xeno-phobic politicians or hysterical news reports. Those on the right side of history need to do a better job ar-ticulating their argument.

They include President Barack Obama, whose impatience with legitimate security questions does not serve a cause important to both American values and national security.

The White house could certainly be more considerate of the requests of many governors for better in-formation about refugees in their states. Why not convene a meeting with governors from both parties on all sides of this debate, showing that the administration takes their misgivings seriously, is open to im-provements and, most important, wants to bring the discussion back to a rational level?

Such a discussion might not suc-ceed in persuading those governors

who have been most adamant about barring the refugees. But it could at least defuse some tension and may-be allow some salient facts to break through the rhetoric.

For example, the screening pro-cess for refugees usually takes two years and involves many government agencies, including the National Counterterrorism Center.

In addition, every applicant un-dergoes in-person interviews, has a check against the fingerprint data-bases of both the FBI and the Defense

Department, and is subjected to what the State Department calls the high-est level of security screening.

Americans should know all this, and they should also be asked to consider this question: Why would Islamic State try to infiltrate the US through a bureaucratic logjam?

The president has some poten-tial allies on the political right who could help in this debate. evangelical groups such as World Relief and the National Association of evangelicals, which see resettling the world’s war

victims as a central mission, have split with religious Republicans such as Mike huckabee on the issue.

Finally—and separate but related to the debate over Syrian refugees—the White house should be prepared to consider broader reforms, such as tightening the State Department visa-waiver program for some euro-pean citizens.

A bipartisan group of senators rightly says this is a greater secu-rity threat than refugee resettle-ment. Addressing this vulnerability

would certainly be a better use of Congress’s time than passing the legislation the house approved on Thursday, which would essen-tially halt the vetting process.

None of this is to excuse the de-plorable rhetoric and nativism at the extreme of the antirefugee move-ment. Yet reaching out to his rea-sonable opponents is the best thing Obama could do for both US security interests and for the Syrians who deserve America’s help.

Bloomberg View

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phTuesday, November 24, 2015

ACCESS TO CREDIT,RED TAPE IMPEDESSMEs’ TRADE GAINS

Mindanao to experience4-hour brownouts anew

By Catherine N. Pillas & Genivi Factao

The participation of local small and medium enterprises (SMe) in supply-chain trade is among

the lowest in Asean, a situation that can be remedied through increased financial access, better infrastructure and reforms in the ease of doing busi-ness, according to the Asian Develop-ment Bank (ADB). Dr. Ganeshan Wignaraja, advisor at the ADB economic Research and Re-gional Cooperation, said the Philippine SMes’ participation rate in value-chain trade is just at 20.1 percent. This is based on the preliminary re-sults of the survey done for Wignaraja’s study, titled “Factors Affecting entry into the Supply Chain Trade: An Analysis of Firms in Southeast Asia.” In Thailand, 29.5 percent of the SMe base is present in the value-chain trade; in Malaysia, 46.2 percent; Vietnam, 21.4 percent; and India, 11.5 percent. Indonesia’s engagement rate is the lowest, as only 6.3 percent of SMes in the country are able to enter the global value chain of larger firms. Value-chain trade refers to activities that are part of a larger firm’s production network. The survey was done with a total sample of 5,900 firms across the five economies. In terms of the size of enterprises, larger firms in the Philippines are able to penetrate the value-chain trade more, with 51.1 percent of all large companies taking part in the global value chain.

Access to creditA key constraint affecting the participation rate of SMes, Wignaraja said, is access to credit. “I think this is a particular problem in this country. The credit gap in Asia affects 9 million firms across the re-gion...in the Philippines the interest rate is very high…credit is a problem. A policy implication for me is how do we involve the banking sector in financing firms to become more com-petitive?” he said. Credit gap is the difference be-tween formal credit provided to SMes and total estimated potential need for formal credit, Wignaraja said. For the Philippines, the credit gap is estimated at $2 billion, or roughly $59,000 credit value per enterprise. To respond to the gaps in the finan-cial system, Wignaraja recommended the introduction of better credit rating and databases, expansion of partial credit guarantees, introduction of in-novative schemes to expand collateral and scaling up of microfinance and have it linked to the financial system. Other factors hindering better participation of SMes are infrastruc-ture and ease of doing business, citing a World Bank-International Fi-nance Corp. study. “The problem is, it takes 34 days and 16 procedures to set up a busi-ness according to the World Bank, and a second problem is that even if infra-structure spending is growing, from 2.1 percent of GDP in 2012, from around 1.4 percent in 2008, the real issue is to do well and have world class infra-structure, it has to be at least 3-percent to 3.5-percent GDP,” recommended

Wignaraja, citing that China spends at least 6 percent, while India has doubled its infrastructure spending. Addressing these problems, Wig-naraja said, is significant, as SMes contribute 63 percent to total em-ployment in the Philippines, and cur-rently contribute around 35.7 percent of GDP.

FTA utilizationIn other countries, Assistant Secre-tary for Industry Development and Trade Policy Rafaelita M. Aldaba said SMes’ share in total employment is at 75 percent. Aldaba said the final results of a nationwide survey polling the aware-ness and utilization of manufacturing micro, small and medium enterprise (MSMe), numbering to around 1,000 firms, of the country’s various free-trade agreements (FTAs) will be re-leased in the first quarter of 2016. “This covers nCR [national Capital Region], Calabarzon [Cavite, Laguna, Batangas, Rizal, Quezon], Central Luzon, Davao, Cebu and Iloilo. The preliminary result on awareness is around 50 percent,” Aldaba said on the sidelines of the Board of Invest-ments’s Global Value Chains Confer-ence, held on Monday. The trade official said that according to preliminary results, lack of information has been cited as the primary reason for the low awareness rating, as well as the complexity of the FTA regulations. For the utilization, Aldaba cited a previous study of the Philippine Institute of Development Studies, which pegs the utilization rate at 30 percent. The trade official said this rating is comparable to other Asean members, so the Philippines is not necessarily a laggard. Aldaba said according to the SMe Development Plan of the gov-ernment, they are aiming for MSMe contribution to GDP to increase from around 35 percent to 40 percent from 2011 to 2016.

SME credit gap The ADB said the Philippines still needs to improve the financial sys-tem to close the $2-billion credit gap for SMes. The unmet credit could in-crease, depending on the robustness of SMes. “It [credit gap] could go higher, depending on where SMes would be. SMes have an important role in Asean integration and the Philippine growth to maintain the 6-percent plus GDP growth,” he said. “The government has to improve, by privatizing government banks and further opening up the banking sec-tor by allowing entry of more foreign banks so that we have more financ-ing options. And then, scale up the microfinance. They must also adopt innovative scheme to improve col-lection, have better credit rating and guarantee system,” he told the Busi-nessMirror. he also stressed the need to foster stock- and bond-market development and ensure adequate macroprudential regulation and ca-pacity. “Banks and nonbanks must increase lending to SMes. With the Asean integration, we will have more business opportunities that need fi-nancing,” he said.

By Manuel T. Cayon Mindanao Bureau Chief

DAVAO CITY—A combination of scheduled and unscheduled shutdowns on three power

plants supplying the Mindanao grid has denied the island more than 100 megawatts (MW) of power and forced power distributors to impose so-called rotating power failures even during peak hours. This was learned from Arturo Milan, chief operations officer at Davao Light and Power Co., who said four-hour brownouts may now be expected between 9 in the morning

and 9 at night. He said the island-wide power de-ficiency began on Monday and was the result of repairs on the turbine units of three power-generation

plants in Mindanao. Milan said the four-hour rotating brownout starting Monday should persist for the next two days follow-ing the shutdown of the coal-fired Steag State Power in Villanueva, Misamis Oriental, the power barge in Maco, Compostela Valley, and the coal-fired Therma South Inc., an Aboitiz subsidiary. “It’s more than 100-megawatt cut of our supply from the Mindanao grid through the National Grid Corp. of the Philippines [NGCP],” he told a news conference at their office in Lanang, north of downtown Davao. He clarified the brownouts would be “four hours straight” for a desig-nated sector of its franchise area, “during peak hours, or between 9 a.m. and 9 p.m.” An NGCP advisory sent to the Davao Light clarified the shut-down of the 105-MW Steag State Power forms part of its preven-tive maintenance service. Milan

gave assurance the Steag plant remain in good condition despite the frequent repairs on its power- generating units. The maintainance shutdown also aggravated the shutdown of a 100-MW unit of the Aboitiz-owned coal plant in Binugao, Toril, of the same province. Its manag-ing company, Therma South Inc., told Davao Light that one of two power units “had to undergo an emergency shutdown.” “Moreover, Davao Light’s contract with Therma Marine Inc. has also decreased from 30 MW to 19 MW due to the [repair] of one of its four units with a capacity of 45 MW. The Sibulan hydropower plant as well has advised reduced capability to facilitate an emergency repair on one of its plants,” the Davao Light statement said. The NGCP has not issued any statement and did not reply to

Mid-$20 crude seen if Opec doesn’t act

Trade and Industry assistant Secretary rafaelita M. aldaba recognizes participants in the “Global Value Chains, Industrial Policy and SMe Integration in GVCs: Transformation Strategies for More Inclusive and Sustainable Growth,” a conference held in Makati City that aims to provide a venue for sharing of knowledge and discussions on several issues, which can serve as vital inputs to government policy-making and industry-development activities. ALYSA SALEN

OIL extended its decline as Venezuela predicted prices may drop as low as the

mid-$20s a barrel unless the Orga-nization of the Petroleum Export-ing Countries (Opec) takes action to stabilize the market. January futures fell as much as 1.1 percent in New York after front-month prices slid 0.9 percent last week. Saudi Arabia and Qatar are considering Venezuela’s proposal for an equilibrium price of $88 a barrel, Venezuelan Oil Minister Eulogio del Pino told reporters on Sunday in Tehran. Opec should make room for increased Iranian crude production within its ceiling of 30 million bar-rels a day, the nation’s Oil Minister Bijan Namdar Zanganeh said.

Oil has slumped about 45 percent the past year, amid speculation a global glut with persist as Opec con-tinues to pump above its collective quota. The 12-member group meets on December 4 in Vienna to discuss the production ceiling, as Iran sig-nals its intention to boost output by 1 million barrels a day within five to six months of economic sanctions being removed. “Any meaningful change from Opec has to come from the big producers led by Saudi Arabia,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “While an increase in Ira-nian production is not a surprise, it will be a negative when it hits the market.”

West Texas Intermediate (WTI) for January delivery dropped as much as 47 cents to $41.43 a barrel on the New York Mercantile Exchange and was at $41.59 at 8:41 a.m. Hong Kong time. The December contract expired on Friday after declining 0.4 percent to close at $40.39, the lowest settlement since August 26. The volume of all futures traded was about 43 percent above the 100-day average. Brent for January settlement was 10 cents lower at $44.56 a bar-rel on the London-based ICE Futures Europe exchange. The contract rose 48 cents to $44.66 on Friday. The European benchmark crude traded at a premium of $3 to WTI. Bloomberg News

Globe. . . Continued from A1

subscribers in as little as two years, as it will appeal to those on modest monthly incomes. Cheapest handsets“THESE are those who earn between 8,000 and P10,000 a month: the sales ladies, security guards who don’t have a smartphone yet,” he said. Around a third of mobile- phone subscribers in the Philip-pines have smartphones, and that ratio could rise to 90 percent in five years as handset costs go down, according to Cu. Cherry Mobile, which according to International Data Corp. had a 22-percent share of the Philip-pines smartphone market last year versus Samsung Electronics Co.’s 13 percent, is already selling the cheapest handsets on the market with phones packaged with Globe services priced at P399 ($8.50) to P1,699 each. Globe will probably spend a re-cord $850 million in capital expen-diture next year, as “data growth has been tremendous and we need to keep on building,” Cu said. As at end-September, Globe had 47.75 million prepaid subscribers, trailing dominantPLDT 64.08 mil-lion. But the gap had narrowed from 35.66 million in September 2013, with Cu moving to exploit the rising popularity of social net-work and communications apps that were cutting into calls and text services. Facebook accessGLOBE offered users free ac-cess to Facebook in 2013, and in 2015 added messaging service Viber to counter PLDT’s move to give free Internet access in the previous year. These moves helped boost the company’s share of mobile-data revenue to 65 percent and increase its share of wireless revenue to 47 percent, Cu said. Though PLDT has 1.5 times the sales of Globe, the smaller company has grown at a faster clip. Globe’s revenue grew 62 percent in the five years through 2014, while PLDT posted a 16-percent rise in the same period. Globe’s nine-month profit this year jumped 34 per-cent, while PLDT’s net income slid 9.5 percent. “It’s not easy climbing to where we are and the easiest way to lose that is to be complacent,” Cu said. “We don’t wanna go back to where we were. We don’t want to be that weaker player.” Bloomberg News

“These comments will be seen as another volley in what’s become an extended tennis match of claim and counter claim in the region,” said hugh White, a professor of strategic studies at the Australian national University in Canberra. “China is pushing its hold, not just because it wants the islands, but because it wants to demonstrate it can get them against America’s opposition.”

‘Crucial pieces’“TheSe islands have become crucial pieces in the game over who’s the primary power in Asia,” White said, adding that distance from a country’s mainland is not necessarily a factor in ascertaining sovereignty. Tensions between the US and China rose last month, after the US conducted a freedom of navigation operation by sailing the USS Lassen, an

China. . . Continued from A1Arleigh Burke-class destroyer, within 12 nautical miles of an island China has built on a previously semi-submerged reef. China’s claim to more than 80 percent of the waters clashes with Vietnam, the Philippines, Malaysia, Brunei Darussalam and Taiwan. Speaking at Apec, Obama called for bold steps to reduce tensions in the area and urged countries to use international forums to settle their disputes. “We’re not claimants our-selves, but we fully support a process in which through international laws

and international norms these issues are resolved,” Obama said.

Code of ConductLIU said that freedom of navigation and overflight wasn’t a problem in the South China Sea, and called on countries from outside the region not to destabilize the situation. Speaking at a closing briefing for the Asean meeting, host and Ma-laysian Prime Minister najib Razak urged progress on a code of conduct for the waters—something that has

been under discussion for more than a year without tangible progress. he also said some nations had “great con-cern” about China’s reclamation but added countries meeting in Malaysia— including China—agreed to pre-serve the freedom of navigation in the area. A sideline meeting of Asean for-eign ministers expressed concern about “ongoing developments” in the South China Sea without mentioning China by name, and said all parties should show restraint.

See “Mindanao,” A2

BusinessMirror November 24, 2015

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