BusinessMirror November 9, 2015

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SAN Miguel Pure Foods Co. Inc., the food group of conglomer-ate San Miguel Corp., said its

income rose slightly in January to September on the back of higher revenues from its feeds and branded value-added businesses. The company said its income in January to September grew 7 per-cent to P2.9 billion, from last year’s P2.72 billion. Revenues, meanwhile, rose 3 percent to P76.6 billion.

The company added that its ag ro-industr ia l businesses—consisting of feeds, poultry and

meats—registered combined rev-enues of P52.7 billion, 3 percent higher than last year. “Growth came largely from the feeds business, as revenues of the poultry and meats business were adversely affected by lower selling prices of chicken and pork due to industry oversupply in the first half of the year,” the company said.

Prices of chicken and pork re-bounded during the third quarter, coming from their year-low mark in the second quarter.

Meanwhile, revenues from Pure Foods’s milling business grew 4

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KUALA LUMPUR, Malaysia—Despite the robust growth of the Philippines—averaging 6 percent

over the last five years—poverty and inequality in Southeast Asia’s rising tiger still persist. This is referred to among policy planners as a “development paradox” that Asean business leaders want to address through the promotion of social enterprise. 

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First of two parts

THE government sustained a number of flak while the Philippines and Japan were hammering out a free-trade agreement (FTA). Critics had feared the terms of the Japan-Philippines Economic Partner-ship Agreement (Jpepa) would be detrimental to the country’s interests.

Now on its seventh year of implementation, the Department of Trade and Industry (DTI) said the Jpepa has proven a boon for the Philippines. The DTI said the country’s lone FTA with Japan has lived up to its promise of expanding trade and investments. In the first year of Jpepa’s implementation, Philippine exports decline mainly due to the 2008 global financial crisis. Data, however, showed a marked improvement in the country’s trade sur-plus with Japan.

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‘Social enterprises crucialto cutting poverty in PHL’

SPECIAL REPORTINSIDE

AND THEN SOME:IS THERE SUCH A

THING AS MAKEUP SHAMING? »D4

D1

Life Monday, November 9, 2015

Life BusinessMirror

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

DDEAR Lord, remembering Your presence in EAR Lord, remembering Your presence in EAR Lord, remembering Your presence in every person we meet, hearing Your voice in every person we meet, hearing Your voice in every one we encounter, seeing You in all every one we encounter, seeing You in all

your creation, we ask: Will all this experience be the your creation, we ask: Will all this experience be the life of our soul? “The life of your soul should be the life life of our soul? “The life of your soul should be the life of God himself. Nourish yourself with God by thinking of God himself. Nourish yourself with God by thinking of His presence as often as you possibly can. Let us of His presence as often as you possibly can. Let us all remember that we are in the most holy presence of all remember that we are in the most holy presence of God.” Amen.

� e life of our soul

MEDITATION 67:1 SAINT JOHN BAPTIST DE LA SALLE AND LOUIE M. LACSONMEDITATION 67:1 SAINT JOHN BAPTIST DE LA SALLE AND LOUIE M. LACSONWord&Life Publications • [email protected]@yahoo.com

TOTAPULCHRAMISS CHARLIZE

HALLOWEEN has passed, and along ALLOWEEN has passed, and along ALLOWEENwith it the fantastical costumes and spooky-ugly makeup. With Christmas looming large and

promising of an endless stream of Yuletide merrymaking, it’s imperative that looking pretty should be a priority. After all, the holidays are the best excuse to deny that diets ever exist and that vanity is a deadly sin.

Early Kris Kringle

KÉRASTASEKÉRASTASE Paris, through L’Oréal Advanced Research, has found a beautiful way to curb the effects of time on hair quality with the leave-in formula Densifique Serum Jeunesse, “the first youth activator for the hair that restores the hair back to its original texture, density and vibrance.”

With faithful application of this miracle worker, hair regains its shine, texture and vitality. It sells at P3,750 for 120ml and is available at Kérastase Institute by Salon ESA, Emphasis Salon and other snobbish salons nationwide. “At the fore of [Densifique’s] components is Anti-Ox Cellular, a powerful antioxidant complex that has never been used on a scalp product until now. Anti-Ox Cellular activates the hair’s melanin content, secreted by melanocytes—a pigment-producing hair cell. External and everyday aggressions, such as UVA and UVB rays, pollution and stress, cause melanocytes to diminish over time, and, consequently, the hair loses its best protective agent, melanin,” Kérastase Paris, founded in 1964, explained in a statement.

The beauty behemoth also concluded that there are worse-hair transgressions than heat styling, chemical treatments and artificial-color procedures. Thus, it created Kérastase Resistance Thérapiste, a powerful solution for deeply damaged hair—“hair that feels dead, looks ‘burnt’ with split ends, with tangles and brittle lengths and a washed-out, lifeless color.”

The Kerastase Resistance Therapiste line is composed of the pre-shampoo ritual Soin Premier Thérapiste, which “binds the hair with protection during washing and infuses softness into hair so it doesn’t weight down during shampooing,” priced at P1,900; the hair-boosting Bain Thérapiste, with a semisolid gel texture that lessens friction during washing (P1,600); Masque Thérapiste, which makes hair fiber feel comforted and revitalized at P2,980; and the sot-finishing Double Serum Thérapiste, which combines oil base to moisturize and cream the top coat to seal hair ends while protecting hair fibers during heat styling (P2,050).

KANEBOTHE leading Japanese producer of cosmetics, which traces back its history to 1887, unleashes a delectable makeup collection for Autumn/Winter 2015 through its brand Lunasol. Inspired by the “alluring world of the finest chocolat,” the Captivating Purification makeup has a meltingly sweet luster with a bitter depth that creates a soft, ecstatic look that Asians will find flattering. The succulent line, available at Rustan’s, includes Selection de Chocolat Eyes, a four-color eye-shadow set for sheer, dramatic eyes, at P2,750; Duo de Chocolate Eyes, a two-color eyeshadow set available only this season, which creates an airy yet defining look for your eyes, at P1,925 for the color variations of Pistachio, Framboise and Orange.

Melty Chocolat Lips, scented with a bittersweet fragrance in shades of Milk Chocolat, Chocolat Brown and Rose Chocolat (P1,540) for a rich, delicious luster on your lips; Modeling Control Base (P1,925), which conditions the skin to be silky, clear and flawless; and Coloring Creamy Cheeks (P1,925), to give your cheeks a naturally blushing, healthy radiance in Pink, Orange and Beige.

KIEHL’STHIS New York East Village brand (Facebook.com/KiehlsPhilippines, via Instagram at @KiehlsPhilippines, and via Twitter at @KiehlsPH) is getting the jump on everyone by offering its “Amazing Gifts for All” packages this early. The “world’s purveyor of the finest skin care,” founded in 1851, brings you the best beauty items that must be included on

your must-give list. It has gift suggestions for your “brother from another mother,” “zany mentor,” “best gal,” “hair-obsessed sister,” “fierce boss,” “adventure-crazed man,” “helpful coworker” and “generous mother” with up to 23-percent savings.

My favorite packages are the ones for your “travel buddy”: Kiehl’s Calendula Deep Cleansing Foaming Face Wash to clean out all makeup residue and the Ultra Facial Toner to maintain the skin’s pH balance (Suggested retail price [SRP] of P1,056 but with the original price

of P1,320). And for the “love of your life”: Kiehl’s Ultra Light Daily UV Defense Sunscreen and Clearly Corrective Dark Spot Solution to prevent sun damage,

while a combined use of Kiehl’s Clearly Corrective Purifying Foaming Cleanser, Midnight Recovery Concentrate, Micro-Blur Skin Perfector and Powerful-Strength Line-Reducing Concentrate will bring on a glow of true love (SRP: P6,508; original price: P8,451.95).

your must-give list. It has gift suggestions for your “brother from another mother,” “zany mentor,” “best gal,” “hair-obsessed sister,” “fierce boss,” “adventure-crazed man,” “helpful coworker” and “generous mother” with up to 23-percent savings.

My favorite packages are the ones for your “travel buddy”: Kiehl’s Calendula Deep Cleansing Foaming Face Wash to clean out all makeup residue and the Ultra Facial Toner to maintain the skin’s pH balance (Suggested retail price [SRP] of P1,056 but with the original price

of P1,320). And for the “love of your life”: Kiehl’s Ultra Light Daily UV Defense Sunscreen and Clearly Corrective Dark Spot Solution to prevent sun damage,

while a combined use of Kiehl’s Clearly Corrective Purifying Foaming Cleanser, Midnight Recovery Concentrate, Micro-Blur Skin Perfector and Powerful-Strength Line-Reducing Concentrate will bring on a glow of true love (SRP: P6,508; original price: P8,451.95).

Monday, November 9, 2015

WITH cooler days ahead, Japanese global brand Uniqlo (www.uniqlo.com/ph) combines fashion and functionality by ph) combines fashion and functionality by phexpanding its lineup of fleece outerwear in its Fall/Winter 2015 collection.

With this, one can look forward to more highly fashionable coats and functional windproof jackets.

The men’s line includes an expanded range of windproof fleece, with a special film between the inner and outer material

to keep out drafts. This wind-resistant functionality has been incorporated in the soft and comfortable pile-lined fleece jacket, the Sherpa fleece jacket in trendy khaki or camouflage colors, and the faux mouton fleece jacket, with the last designed as a Mouton Jacket rather than a fleece. The windproof film has been improved from last year, making it appropriate as outerwear, and also offering reduced stiffness. Uniqlo has also introduced a kids’ windproof fleece

jacket this year.The women’s line features four

new types of coat, each with a unique silhouette—a trendy teddy fleece coat, fluffy fleece coat, pile-lined fleece coat, and windproof fleece coat.

They are suitable to any setting—from fashionable to casual to sporty.

Uniqlo first launched fleece in 1994 and 20 years on, it remains a symbol of the LifeWear concept.

GET FLEECED

FULL-ZIP fleece jacket with pockets

HEAT insulating HEAT insulating HEATfull-zip Uniqlo fleece jacket.

THIS fluffy yarn fleece long-sleeved coat is made with a silky soft microfleece exterior and lined with soft furry fleece for a light, warm and comfortable feel. Microfleece holds dye well for a vividly colorful design. The long cocoon silhouette provides a feminine touch and the tweed print.

FLUFFY yarn fleece coat for women FLUFFY yarn fleece coat for women FLUFFYcombines furry fleece and micro fleece for soft, warm comfort.

BusinessMirrorPerspective

Monday, November 9, 2015E4 www.businessmirror.com.ph

Historic meet realizes hopes for Taiwan, China

While it isn’t yet clear what the impact will be, or whether and when it will happen again, on a rainy Sat-urday in Singapore, the possibility of a fundamental shift in relations between the feuding neighbors sud-denly seemed possible. China’s Xi Jinping and Tai-wan’s Ma Ying-jeou didn’t produce any concrete achievements, or even issue a joint statement after

their hour-long discussions at an upscale hotel. But no one was really expect-ing them to. Both men, the scions of senior � gures in their respective parties, underscored the impor-tance of their meeting as a sign of how far the two sides of the Taiwan Strait have moved since the days they lobbed shells at each other and resolutely refused to negotiate

or compromise. “We are sitting together today to prevent the historical tragedy from repeating itself, prevent the fruits from peaceful development of cross-Strait ties from being lost again, enable compatriots across the Strait to continue to create a peaceful life, and enable our next generations to share a bright fu-ture,” Xi said in opening remarks. Ma, who unlike Xi spoke to reporters after the meeting, em-phasized how arduous the road to Singapore had been, and how much work remains to be done. “� ink about it; is there any relationship in the world like the cross-Strait relationship? No. It’s extremely complex. � ere’s domes-tic politics, diplomacy, defense, economics,” Ma said. � e meeting was the � rst be-tween the leaders since China and Taiwan split amid the still unre-solved civil war in 1949. Although preparations spread out across two years, it wasn’t announced until Wednesday, catching almost every-one by surprise. Although overwhelmingly symbolic, the meeting wasn’t en-tirely without substance. Ma said he raised a number of sensitive issues, especially Taiwan’s desire to escape the fetters of China-imposed diplomatic isolation and its extreme unease over the grow-ing arsenal of missiles located just across the 160-kilometer-wide Taiwan Strait. Xi o� ered pleasant-sounding but bland responses and made no promises. � e two also discussed setting up a hotline between their Cabi-net-level agencies entrusted with overseeing relations, as well as a long-mooted proposal to set up rep-resentative o� ces on each other’s territory. Ma again expressed Tai-wan’s desire to join the China-led Asian Infrastructure Investment Bank. Xi repeated China’s promise to consider Taiwan acceding “in an appropriate manner,” pointing to China’s insistence that Taiwan do so only under a name that implies it is part of China. Also remarkable was Xi’s agreement to hold the meeting on neutral territory and without � ags or other trappings of Chinese na-tionalism. � e two even dropped their o� cial titles to refer to each as “Mr. Xi” and “Mr. Ma.” “From the mainland perspec-tive, Xi Jinping’s decision to meet

with Ma demonstrates that he is willing to take some degree of risk in order to change the dynamics of the relationship,” said Mary E. Gallagher, a political scientist who studies China at the University of Michigan. “Xi’s move further so-lidi� es his image as a strong and con� dent leader.” Xi appeared to calculate that he had more to gain by appearing sympathetic to Taiwan, probably out of concern over rising anti-mainland sentiment on the self-governing island. Ma, six months before leaving o� ce, appeared to hope that the meeting would help his legacy despite the considerable political risk for the Nationalists in upcoming elections. Ma “wants to drive home the point that cooperation with the mainland is possible and that it is better for Taiwan’s residents than the alternative,” Columbia University China expert Andrew Nathan wrote on the Asia Society blog ChinaFile. � ough opposed by some in Taiwan, the meeting drew huge at-tention and overwhelmingly favor-able response in China and across the Chinese-speaking world, as well as in Washington. � e biggest obstacle to future talks could be Taiwan’s ferociously democratic system—new elec-tions for the presidency and legis-lature are scheduled for January. � e main opposition Democratic Progressive Party (DPP), which advocates Taiwan’s formal inde-pendence from China, is favored to win one or both elections and its presidential candidate Tsai Ing-wen has refused to endorse the so-called “92 Consensus,” under which China has allowed negotia-tions between the sides to proceed. � at consensus states that Tai-wan and the mainland are part of a single Chinese nation, although each side interprets that according to their own constitutions. � e Chinese side made a par-ticular point of stating that there could be no future meetings be-tween the leaders without the Tai-wan side a� rming the principle. “� e big question going for-ward is whether this meeting will change how Taiwanese view the mainland. Will this meeting im-prove the chance of further rap-prochement under the next admin-istration, which is almost surely to be under the DPP?” Gallagher said.

B C B | � e Associated Press

SINGAPORE—Many thought it might never happen: e presidents of China and Taiwan—inheritors to

the Communist and Nationalist regimes that fought a civil war and remained bitter rivals for decades—coming together as equals for talks.

BEIJING—China and Taiwan have been separately ruled since the Chinese civil war of the 1940s, but China claims sovereignty over the island and insists the two sides eventually unify. They have in recent

years set aside that dispute to build trust and sign economic cooperation deals, and their presidents met for the � rst time on Saturday. A timeline of relations as the two sides have moved gradually over the past 36 years from outright hostility to face-to-face meetings:

■ January 1979: Chinese leader Deng Xiaoping o� ers the concepts of “one country, two systems” and “peaceful uni� cation” as possible alternatives to a military attack on Taiwan.

■ April 1979: Taiwan’s Nationalist Party leader Chiang Ching-kuo comes out with a “Three No’s” policy on ties with China: no compromise, contact or negotiation.

■ Late 1987: Taiwan’s government starts allowing some citizens to visit China, their ancestral homeland.

■ November 1992: Semio� cial negotiating bodies from China and Taiwan reach the 1992 Consensus. It obligates both sides to hold any talks as parts of a single China, but allows each to interpret “China” in its own way according to political pressures at home.

■ March 1996: China conducts missile exercises o� shore aimed at intimidating Taiwanese against voting for Lee Teng-hui, who angered China with moves to assert Taiwan’s separate status. He is elected.

■ July 1999: Lee Teng-hui suggests that China and Taiwan form “special state-to-state relations,” angering Beijing.

■ March 2000: Voters in Taiwan pick their � rst president not from the Nationalist Party. Chen Shui-bian later advocated Taiwan’s legal independence from China. His stance angered Beijing, but Chen never found support in the legislature to pursue his goal. He left o� ce in 2008.

■ January 2001: Despite enmity, the two sides introduce postal, transportation and trade links between southeastern China and Taiwan’s outlying islands.

■ April 2005: Nationalist Party Chairman Lien Chan visits China and meets Communist Party General Secretary Hu Jintao in Beijing. The visit marked the � rst meeting between the heads of the rival parties in 60 years, and was the highlight of a push by Beijing to strengthen contacts with their former rivals in alliance against the pro-Taiwan independence government.

■ May 2008: Current Nationalist Party-backed President Ma Ying-jeou takes o� ce and sets aside political disputes with China to discuss deals on tourism and commercial � ights.

■ June 2010: China and Taiwan sign an economic cooperation framework agreement, stimulating two-way trade. The agreement cut tari� s in about 800 import categories.

■ March 2014: University students occupy parliament in Taipei to block rati� cation of a service trade liberalization deal, because of wariness over the level of control China will exert on Taiwan. Over the following three weeks, tens of thousands of protesters question the pace and transparency of agreements with China.

■ April 2015: Taiwan’s opposition Democratic Progressive Party picks Tsai Ing-wen as its nominee for the January 2016 presidential race. Now the frontrunner, she has rejected the 1992 Consensus, making Beijing nervous.

■ November 2015: The historic � rst meeting of presidents of China and Taiwan is announced, to be held in Singapore. AP

TIMELINE OF CHINA-TAIWAN RELATIONS

BITTER foes, Mao Tse-tung (left) and Chiang Kai-shek, putting on smiles at a reconciliation conference called by the United States in August and September of 1945. THEKINGSACADEMY.COM/GETTYIMAGES

CHINESE President Xi Jinping (right) and Taiwanese President Ma Ying-jeou shake hands at the Shangri-La Hotel on Saturday in Singapore. The two leaders shook hands at the start of a historic meeting, marking the � rst top-level contact between the formerly bitter Cold War foes since they split amid civil war 66 years ago. AP/WONG MAYE-E PERSPECTIVE E4

KRIS KRINGLE

HISTORIC MEETREALIZES HOPES FOR TAIWAN, CHINA

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PHL REAPS BENEFITS OF ‘LOPSIDED’FREETRADE AGREEMENT WITH JAPAN

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San Miguel Pure Foods’s profit up 7% in Jan-Sept

China’s Xi says Asia security ties lag economic cooperationGROWING economic cooperation

in Asia is not being matched by security collaboration, Chinese

President Xi Jinping said, calling on na-tions to “never let animosity” divide us even as tensions run high in the disputed South China Sea. While repeating China’s claim to a large swath of the South China Sea—saying that

the area belonged to the country since an-cient times—Xi used a speech in Singapore on Saturday during a state visit to downplay the territorial disputes that have caused friction with countries including the Phil-ippines and Vietnam. China is one of the biggest trading partners for Southeast Asian nations, and has pledged infrastructure funding for

countries such as Indonesia, as it seeks to build a maritime Silk Road trading route to Europe. At the same time, it has caused unease by expanding its military presence in the region, particularly via its navy. Apart from the South China Sea, China is also in dispute with Japan over islands in the neighboring East China Sea. “Asian countries are more intercon-

nected than ever before, thanks to the ac-celerated process of regional integration,” Xi said.

“But they may take different approaches to regional cooperation, and security coop-eration in the region is out of step with eco-nomic cooperation. All these are challenges that we should meet.” China claims more than 80 percent of

the South China Sea based on a nine-dash line drawn on a 1947 map for which it gives no precise coordinates, an assertion that has led to complaints from other claim-ant states. Under Xi, China has stepped up efforts to assert control of the waters, including building islands that offer pos-sible bases for its ships and planes.

More and more Filipinos suf-fer at the bottom of the economic pyramid—with poverty incidence among individuals in the Philip-pines rising to 25.8 percent, from 24.6 percent during the first half of the year, data from the National

Economic and Development Au-thority showed.  This means one out of four Filipi-nos is still poor, despite the relatively rapid economic expansion the coun-try enjoyed over the last five years. 

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“The Philippines is a country where you would see a development paradox. Our economy is growing robustly, but inequality and poverty continue to rise,” Marie Lisa M. Dacanay, founding president at the Institute for Social Entrepreneurship in Asia, said in a social entrepreneurship forum here on Saturday. Given the recent poverty-related figures, the Philippines is fated to miss its target under the Millennium Development Goal of halving poverty incidence by 2015. With the strategy of eradicating poverty focused more on curbing corruption, promoting foreign direct investments (FDI) and the cosmetic impact of the Conditional-Cash Transfer (CCT) Program, the $285-billion economy stands a good chance of missing a second time its goal of eradicating poverty a decade-and-a-half from now. “The Sustainable Development Goals [SDGs] of the United Nations talks about poverty eradication, not just reduction; and without social enterprises, I believe the government will not be able to solve the problem of poverty,” she said. Manila is a signatory to the SDGs set by the UN. “The strategy of development is flawed. If you listen to President Aquino’s announcements, his focus is on FDI, CCT, and anti corruption. It’s all great; but to solve poverty, you need to create wealth, and distribute it to the poor. The only way to do it is not to depend on corporations that only want to make profits, but to work with social enterprises that are willing to create wealth and distribute the wealth to the poor,” Dacanay said. The concept of social entrepreneurship revolves around the idea of solving social problems by making money from selling goods and services in an open market. In return, the profit is reinvested in the community.

AirAsia bigwig Tony Fernandes described such entities as enterprises that promote sustainable development through businesses that emphasize the idea of helping build back communities. These businesses do not simply have a corporate social responsibility arm but have social duty as its core. “Doing good is not just about writing a check but about people. It’s about using your assets to help communities around the world,” he said.

Shared duty ThE chief executive of Thai conglomerate Premier Group of Companies, Vichien Phongsathorn, agreed, saying that solving the problem of poverty and inequality is not just a single individual’s obligation but is a group effort. “When we talk about solving social issues, normally, we look at governments to do the job. We also look at the social factor or the non-governmental organizations to do the job. We all know that it’s not enough,” he said. Indonesian conglomerate Sintesa Group top brass Shinta Kamdani echoed this sentiment, and urged fellow business executives to exert more effort in promoting social progress through entrepreneurship. “We can’t wait for government to lead us. We have to make an effort,” she said. In the Asean, there are thousands of small and medium businesses that are considered social enterprises. In Manila there are about 15,000 of them championing the cause of inclusive growth.

Lost hope on Aquino adminThESE enterprises are seen as the catalyst to eradicating poverty. But in the Philippines, these enterprises find it difficult to flourish without the help of a legislation that

promotes such businesses. Lawmakers have received the proposal for such a piece of legislation enacted into law. however, years have passed since the private sector first advanced the proposal, and still it remains on square one. “The bill is called poverty reduction through social entrepreneurship, which circles around the idea of allowing social enterprises to be major partners of business and government to solve the problems of poverty in the country. It is still pending in Congress,” Dacanay lamented. She described the bill as having a “very strong distributive character.” “We are hoping government will play a developmental role by supporting social enterprises. It includes procurement sections — aimed at giving social enterprises special rights to actually get the first option, if they have the products and the quality,” the professor explained. Under the bill, the state shall, likewise, provide technical and financial assistance, incentives and other services to enable social enterprises to develop into viable and vital antipoverty agents, and a strong social entrepreneurship movement that will be instrumental in reducing poverty in the country. Dacanay seemed to have lost all hope to the present set of lawmakers, saying that her group will lobby for the proposal at the next batch of solons next year. “We were hoping that it can become a priority bill in this administration, but it didn’t. So we’re hoping that in the next administration, it can be a priority bill,” she said. “I think it’s imperative for government to act. Legislative action is just one way, but we can also do executive action. So maybe we could explore that, and work with departments of government that may be open to bringing in social entrepreneurship in their programs.”

“The full year of implementation was in 2009. If you took the six-year average growth of trade with Japan from that time, and com-pare that to the same period before the PJ-EPA, you will see that the trade surplus grew by sixfold, that’s one indicator. If our surplus before was $1 billion, now it’s $6 billion to $8 billion,” Trade Assistant Secretary Ceferino S. Rodolfo told the BusinessMirror. Data from the Philippine Statistics Authority (PSA) showed that in the second year of implementation, Japan surpassed the United States as the Philippines’s top trading partner. Japan has been able to

maintain this despite the recovery of the US from the global financial crisis.

Tariff cutsThE Jpepa covered 5,968 tariff lines of Philip-pine imports. Tariffs on 66 percent, or 3,947 tariff lines, of imported Japanese goods were to be removed immediately, while 32 percent would be on a staggered tariff reduction schedule. For Philippine exports, majority of the tar-iff lines for immediate tariff reduction covered industrial goods, such as machines and me-chanical appliances, electrical machinery and equipment, clothing and textiles, organic chemicals and pharmaceutical products. Jpepa covered 7,476 tariff lines of Philip-pine exports, of which 80 percent, or 5,994 tariff lines, were for immediate tariff elimi-nation. These products include electrical machinery and parts, road vehicles, telecom-munication and sound-recording equipment. Philippine farm exports, most of which were marine products, were also subjected to im-mediate tariff elimination. The government suffered a backlash from lobby groups in 2008 due to the “imbalance of concessions” in the Jpepa, as Japan was able to negotiate the exclusion of some 238 tariff lines from tariff elimination, while the Philippines’s was only able to exclude rice and salt. Japan was seen as especially

protective of its agricultural products, with half of its agricultural products being de-ferred for tariff elimination. Japan committed for the tariff elimination of products from the Philippines, such as yellowfin tuna and skipjack on the fifth year, and for small bananas only on the tenth year. Excluded from the tariff elimination are cigarettes containing tobacco, rice and rice-related products. The Philippines committed to eliminate tariffs for a number of products, such as lobster, shrimp, crab, cashew nut, almond, walnut, hazel nut, grape, apple and pear. Manila also agreed to reduce tariff, over the next 10 years, for the rest of agricultural products. For rice, all tariff lines have been

excluded from any tariff elimination, reduc-tion or renegotiation. Despite the lopsided numbers in tariff ex-clusions, the Philippines was still able to se-cure more concessions when it comes to tariff reductions than Japan’s other bilateral partners. According to a policy note by the Philip-pine Institute for Development Studies (Pids), among six other Asean nations, namely, Sin-gapore, Malaysia, Thailand, Indonesia, Brunei and Vietnam, the Philippines got the highest liberalization rate from Japan. In terms of utilization, exporters’ use of the Jpepa has gradually risen since the ratification of the Jpepa in 2008, according to Bureau of Customs data cited in the Pids report. This was tracked using the issuances of certificates of origin from the port of Manila. A different scenario, however, can be seen for approved foreign investments. Ac-cording to the PSA, investments approved by the country’s major IPAs have been on an “erratic” trend, due in part to the instability of the global economy. While it has always ranked as second in terms of investments, Japanese investments in the Philippines peaked at P71 billion in the first year of Jpepa’s implementation in 2009. This figure dropped to P58 billion in 2010 but recovered in 2011, when investment inflows from Japan reached P78 billion. To be continued

Monday, November 9, 2015 A2

BMReports

China. . . Continued from A1

Continued from A1

Continued from A1

EASTERLIESAFFECTING THE EASTERN

SECTION OF THE COUNTRY(NOVEMBER 8, 5:00 AM)

BusinessMirror

PHL REAPS BENEFITS OF ‘LOPSIDED’ FREE-TRADE AGREEMENT WITH JAPAN

Figure 2. Total approved FDI by country of investor, 2009-2012

‘Social enterprises crucial to cutting poverty in PHL’

‘Maintain peace’“ThE starting point and ultimate purpose of China’s policy toward the South China Sea is to maintain peace and stability there,” Xi said. “The situation in the South China Sea is generally peaceful. There has never been any problem with the freedom of navigation and overflight. Nor will there ever be any in the future.” Still, defense ministers from the 10-member Association of Southeast Asian Nations, joined by officials from the US, China and Japan, failed to agree on a joint communique when they met in Kuala Lumpur last week. The statement was scuttled by China’s opposition to language on the territorial disputes in the waters that have come to dominate Asean meetings, The Wall Street Journal reported. Xi’s visit to Singapore followed a two-day trip to Vietnam—the first by a Chinese president in a decade—that emphasized the economic bond between the communist neighbors. Xi faced a

public wary of China’s influence and its actions in the South China Sea. Only 19 percent of Vietnamese hold favorable views on China, a Pew Research Center poll shows. When they met in hanoi, Communist Party General Secretary Nguyen Phu Trong asked Xi “not to pursue militarization of the East Sea,” Vietnam’s name for the South China Sea. Xi committed to working with Vietnam on curbing tensions over the waters. The US became further enmeshed in the South China Sea spats last month when its navy sailed the USS Lassen into waters claimed by China, cementing the expectation it would act as a policeman and protector in the area. The patrol prompted an angry response by Beijing and came just weeks after Xi met with President Barack Obama in Washington, where he said China “does not intend to pursue militarization” of the area.

Bloomberg News

percent to P7.6 billion, despite price roll-backs due to the decline in global prices of wheat. “Higher volumes cushioned the im-pact of lower-selling prices. In particular, revenues were buoyed by growing sales of higher-priced customized premixes,” it said. The company’s branded value-added businesses—comprised of processed meats, dairy, spreads, biscuits and cof-fee—generated combined revenues of P17.4

billion, 8 percent higher than last year’s record. Pure Foods attributed this to bet-ter prices and higher sales. Its food service business, meanwhile, reported a 10-percent hike in revenues as it continued to benefit from the growth of the local food service industry. “The company expects to sustain its growth momentum over the remainder of 2015, buoyed by holiday spending and a strong recovery in the agroindustrial busi-nesses,” Pure Foods said.

San Miguel Pure Foods. . . Continued from A1

Citing provisions of Republic Act 10367, the Comelec said there is already the need to process the deactivation of the voters’ registration records, since the registration period ended on October 3.

Comelec Chairman Andres D. Bautista has also expressed confidence that the Supreme Court (SC) will not grant the petition seek-ing to reopen the recently concluded voter registration for the May 2016 polls.

In a recent news briefing, Bautista said they are confident the SC will consider that the poll body gave the public enough op-portunities to be able to register as voters.

“We have bent backwards to try to accom-modate as many voters as we can. It was 18 months. I think it was enough time for peo-ple to register,” Bautista said.

Days before the October 31 deadline for the voters’ registration for the May 2016

polls, the Kabataan Party List asked the SC to compel the Comelec to extend the voters’ registration period up to January 8, 2016.

The petition accused the Comelec of vio-lating the Voter’s Registration Act, which pro-vides that “the personal filing of application of registration of voters shall be conducted daily in the office of the Election Officer dur-ing regular office hours; but no registration shall, however, be conducted during the period starting 120 days before a regular election.”

The deactivation of voters is mandated by Section 8 of the Mandatory Biometrics Registration Act. The law provides that registration records of voters without bio-metrics data shall be deactivated in the last Election Registration Board (ERB) hearing to be conducted prior to election day.

“The ERB hearing for the deactivation of registration records of voters, who fail to

[email protected] Editor: Dionisio L. Pelayo • Monday, November 9, 2015 A3BusinessMirrorThe Nation

Comelec to begin cleaning voters’ listTHE Commission on Elections (Comelec)

announced last week it started deactivating at least 3 million voters

who failed to have their biometrics taken.

undergo validation process, is scheduled on November 16,” the resolution stated.

Biometrics data registration refers to the automated capturing of photo, signa-ture and fingerprints of registered voters.

As of the latest partial data from the Comelec, there are still about 3 million voters who still have no biometrics data.

Local election officers are directed to post the lists of voters without biometrics in the bulletin boards of the city/munici-pal halls, Offices of the Election Officer and in the barangay halls, along with the notice of ERB hearings.

Individual notices will also be sent to af-fected voters included on the list of those without biometrics data.

“Any opposition/objection to the deacti-vation of records shall be filed not later than November 9,” the resolution added.

The poll body said the conduct of de-activation proceedings by the ERB shall be summary in nature.

“The ERB shall, based on the list of voters without biometrics data, order the deactiva-tion of registration records on the ground of ‘failure to validate,’” it added. Joel R. San Juan

THE National Bureau of Investigation (NBI) is set to cel-ebrate its 79th founding anniversary on November 13.

With the theme “NBI: Valuing the Past, Embracing the Future,” the Bureau will undertake a week-long series of activities culminating with a simple program on the date of its establishment.

Nick V. Suarez, NBI Information Division Chief, said in a statement the celebration has started on November 7 with a fun run led by Assistant Director Medardo G. de Lemos and Deputy Directors Edmundo Arugay, Rafael Marcos Ragos and Jose Doloiras. They were joined by about 1,000 personnel of

the bureau. Winners in the fun run were given cash prizes.During its flag-raising ceremony on November 9, which

opens the anniversary week, NBI Director Virgilio L. Mendez will lead the directorial staff in giving special awards to jour-nalists who have covered the NBI beat in recognition of their commitment to provide the various stakeholders relevant, timely and accurate information. The special award is also in appreciation to various media institutions for being a strong partner of the NBI in strengthening the rule of law and in pur-suit of truth and justice.

Suarez also said there will be a tiangge (flea market) at the open grounds of the NBI compound during the week. The agency would also offer reasonable prices to cater to applicants of NBI clearance, free eye checkup and free facial services for employees at the second floor of the building housing the dorm.

He said photo exhibits will also be opened to the public beginning on Monday at the covered walkway and at the lobby of the main building in recognition of the contribution of the various operating units, divisions, regional and district offices and services to the accomplishments of the NBI.

NBI to honor agents, investigators in celebration of 79th founding year

THE Department of the Interior and Local Government (DILG) has issued guidelines on the conduct of assemblies

and rallies in public places during the hold-ing of the Asia-Pacific Economic Cooperation (Apec) late this month. The DILG cited ensur-ing peace and order as reason for the policy.

Part of the guidelines is the “no permit, no rally” rule, which will cover all those who would like to hold public assemblies in public places during the weeklong lead-ers’ summit, according to Interior Secretary Mel Senen Sarmiento.

“Although our laws ensure the free ex-ercise of the people’s right to peaceably as-semble and petition the government, we would like to reiterate that we have to ob-serve proper guidelines, including seeking permits to conduct public rallies,” he said.

In his directive to Metro Manila mayors, Sarmiento said the mayor, or any official act-ing in his behalf, may grant the application and issue the corresponding permit to rally.

However, permits “may not be granted in cases where there is clear and convinc-ing evidence that the public assembly will create a clear and present danger to public order, safety and convenience and subject to proper procedures in accordance to Ba-tas Pambansa [BP] 880.”

Sarmiento said a written permit is not re-quired only when the public assembly will be done in a freedom park established by law or ordinance or in a private property, in which case only the consent of the owner is required.

Likewise, a written permit is no longer necessary if the assembly will be made in the campus of a government- owned and -operated

education institution subject to the rules and regulation of the school or campus.

Sarmiento said that, while law-enforce-ment agencies will be in-charge of securing the Apec leaders, Metro mayors must help in maintaining peace and order by observing the proper guidelines to ensure the safety of those who will join the rallies.

Mayors, or any official acting on his behalf, may designate the route or reroute vehicular traffic so that there will be no undue obstruc-tion in the free flow and use of public highway, boulevard, avenue, road or street for a reason-able length of time, he added

Under the Local Government Code, may-ors can also temporary close any national or local road, alley, park or square during public rallies and temporary closure must be pursuant to a duly enacted ordinance.

The DILG chief also directed the Philip-pine National Police (PNP) to strictly observe “maximum tolerance” policy and respect the human rights of people during a public as-sembly even during dispersal.

Sarmiento said the PNP shall, at all times, be mindful of their duty to keep the peace and provide proper protection to those exercising their right to peaceful assembly.

Malacañang has earlier announced that more than 10 economic leaders have already confirmed attendance to the 2015 Apec Summit in Manila, including United States President Barack Obama, Russian President Vladimir Putin, as well as Indonesian Presi-dent Joko Widodo, Mexican President En-rique Peña Nieto, Chilean President Michelle Bachelet and newly sworn-in Canadian Prime Minster Justin Trudeau. Rene Acosta

No permit, no rally policyduring Apec meet–DILG

BusinessMirror [email protected] A4

Economy

BACOLOD CITY—The mayors of Victorias City in Negros Occidental, and Ajuy and Banate towns in Iloilo signed a tripartite agreement that establishes an economic triangle

between the three local government units (LGUs) in rites held at Victorias City Hall.

Signatories of the memorandum of agreement were Mayors Francis Frederick Palanca of Victorias City, Juan Alvarez of Ajuy and Carlos Cabangal Jr. of Banate.

The signing rites held on Friday was witnessed by Rep. Alfredo Benitez of the Third District of Negros Occidental and Party-list Rep. Stephen Paduano of Abang Lingkod, with Philippine Ports Authority (PPA) Pulupandan Port Manager Enrique Fuentebaja, PPA representative Alan Rojo, and Negros Occidental First District Engr. Jaime Javellana.

The partnership includes a proposed port development project, specifically a feeder port to be constructed in Barangay VI-A in Victorias City, while improving the existing ports of the two Il-oilo municipalities.

A more comprehensive feasibility study can be finalized to sup-port the proposal for final approval and funding in the national level, Benitez and Paduano had earlier said.

The Victorias Ajuy Banate Economic Triangle aims to create a general framework for cooperation and information exchange to improve their respective community’s economic, environmental, social and tourism concerns.

It also targets to come up with a respective system of roads and ports in order to boost the trade of agricultural products, goods and commodities between the three LGUs.

This will also design and improve vehicular ferry routes, in-crease passenger boat trips, and propose plans to minimize the handling expenses of goods that will enhance the accessibility of prime tourist destinations.

The parties involved will collaborate and jointly mobilize re-sources to protect and preserve marine resources and create a core group to ensure the viability of this cooperation and to provide funding for this joint endeavor. PNA

SEN. Juan Edgardo M. Angara on Sunday called for improve-ment of the Filipinos on finan-

cial literacy, which, if not addressed, may hamper the government’s ef-fort to pursue the economic gains achieved by the present administra-tion of President Aquino.

Angara made this call in reaction to the 2015 MasterCard Financial Literacy Index, which ranked the Philippines second-worst among Southeast Asian countries, ahead only of Indonesia.

“Glowing reviews and optimistic projections have been heaped on the Philippine economy, particularly re-garding its financial system. Oppor-tunities abound on account of these

developments, but many Filipinos do not even have a basic grasp of economic and financial concepts,” Angara said.

A study by the Asian Develop-ment Bank also revealed that the Philippines does not have a national strategy for financial education and literacy.

“Such illiteracy hides recent eco-nomic gains from the minds of many people as it hinders them from par-ticipating meaningfully in the coun-try’s notable ascent and economic growth,” the lawmaker said.

Thus, Angara has filed a bill that seeks to declare the second week of November of every year as “Economic and Financial Literacy Week” so as

to develop national consciousness on economic and financial literacy.

Under Senate Bill 2779, the Na-tional Economic and Development Authority (Neda) will serve as the lead agency and will be tasked to plan, initiate, execute and encour-age knowledge-expanding activities on economic and financial literacy which may be adopted by local gov-ernment units, government-owned and controlled corporation and edu-cational institutions.

The Neda will also lead the partici-pation and cooperation of relevant government agencies and instru-mentalities, such as the Bangko Sen-tral ng Pilipinas, the departments of Finance and Education (DepEd), the

Commission on Higher Education (CHED), the National Youth Commis-sion (NYC) and the Department of the Interior and Local Government.

Furthermore, all public and private elementary and secondary schools under the DepEd, all state and private colleges and universi-ties under the CHED, the Technical Education and Skills Development Authority and the NYC are man-dated to conduct consciousness-raising and knowledge-expanding activities, such as setting up lit-erature corners, organizing fora and trainings, and conducting ba-sic economic- and financial-man-agement classes to improve the economic and financial literacy of

students and the youth.“We must recognize the growth

potential of our country through financially literate citizens who can make sound financial deci-sions, mobilize savings, and con-tribute ideas on improving eco-nomic and financial policies and programs,” said Angara, one of the authors of Republic Act 10679, which aims to promote entrepre-neurship and financial education among Filipino youth.

The DepEd is also encouraged, un-der the bill, to assess and revise the high school economics curriculum to make it more age-appropriate, and ensure that economic and financial education becomes an integral part

of formal learning.Meanwhile, the Philippine In-

formation Agency and the Presi-dential Communications Develop-ment and Strategic Planning Office are mandated to allot airtime for programs, and to produce and dis-seminate printed and online ma-terials for economic and financial literacy awareness enhancement.

As for the private sector participa-tion, the Neda, in coordination with the Philippine Economic Society and in partnership with other academic and professional institutions, shall plan, initiate and encourage activi-ties which may be adopted by the private sector and civil society in their respective offices. PNA

THE government of Canada is keen to ink a free-trade agreement (FTA) with the Philippines and hopes to continue

bilateral discussions after the Asia-Pacific Economic Cooperation (Apec) Summit in Manila this November.

In his message at a recent briefing on exporting to Canada, Neil Reeder said the two countries have already begun initial talks on an FTA.

Reeder said that a deal would present a “great opportunity” for Filipino exporters to gain a bigger access to the Canadian market.

The first round of exploratory discussions has been conducted earlier this year, according to Reeder, Canadian ambassador to the Philippines. But succeeding talks are now on hold as Canada held its general elections last month and just recently swore in its new prime minister, he added.

The ambassador said they are just waiting for guidance from the newly elected government before continuing with trade negotiations. He added that he is looking forward to a resumption of talks after the Apec Summit wraps up.

On May 8, then-Canadian Prime Minister Stephen Harper and President Aquino announced the launch of exploratory discussions toward bilateral FTA negotiations.

Philippine exports to Canada are currently growing at only a modest rate and could be bolstered should the two countries come to a trade pact.

“This is why both of our countries agreed to look at the chance of negotiating a trade agreement because once you eliminate tariffs and many other barriers behind the borders, you’ll see a significant increase in bilateral trade flows,” Reeder had been quoted by Philippine media earlier.

In a presentation during the briefing, the Export Marketing Bureau (EMB) said Canada was the Philippines’s 14th top export destination in 2014, with export value estimated at $592 million for a 0.95-percent share of the market.

The top 5 exports of the Philippines to the North America country last year were vehicle wiring sets, crude coconut oil, desiccated coconuts, men’s and boys’ apparel, and digital integrated circuits, it added.

Reeder said Canada currently has 12 FTAs in force, the most recent is with South Korea.

It has no free-trade deal yet with any member of the Association of Southeast Asian Nations and is looking at the Philippines as its first FTA partner in Southeast Asia.

Steve Tipman, executive director of the Canadian government-funded Trade Facilitation Office Canada, said there is much room for growth of Philippine exports.

Tipman, who joined the briefing to give an update on buying trends in Canada, said enjoying big consumer demand in his country are ethic agricultural products and halal foods; natural and organic health, cosmetics, and personal care products; niche and specialty goods; home décor and furniture; sports and recreational products and equipment; gardening products; and holiday-related items for Christmas, Halloween, Valentine’s Day and similar festivities.

The “Exporting to Canada” briefing held late October is part of the Philippine Export Competitiveness Program of the Department of Trade and Industry’s EMB, in partnership with the Export Development Council and the Philippine Exporters Confederation Inc. PhilExport.

In an interview on a state-run radio, Presidential Spokesman Edwin Lacierda pointed out the rehabilitation and rebuilding in Eastern Visayas requires a massive effort, Yolanda being the strongest storm to hit land in recorded his-tory. Lacierda added that the ef-fort involves not just the national and local governments of affected communities, but also interna-tional organizations, including the United Nations.

He suggested that Yolanda re-hab critics, that included former Sen. Panfilo Lacson, should visit the Official Gazette at www.gov.ph to see the list of all ongoing re-habilitation projects, as well as its actual stages of completion.

Lacson lamented over the week-end that the Aquino-approved comprehensive rehabilitation and recovery plan for Yolanda-hit ar-eas was “not being followed by the implementing agencies.”

Meanwhile, Tacloban City Mayor Alfred S. Romualdez appealed to the national government to fast track the approval of the blueprint of the rehabilitation project.

“The blueprint is needed by countries who made their pledges. They need to approve it first be-fore they can release the money,” Romualdez said.

T he st ate - r u n Ph i l ippi ne News Agency (PNA) also quoted Romualdez as saying that Ta-cloban needs potable water and

Monday, November 9, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Palace defends sluggish Yolanda rehabpace as foreign donors seek clear plan

By Butch Fernandez

MALACAÑANG on Sunday disputed critics decrying the “slow” pace of the

Aquino government’s P167.8-billion rehabilitation and rebuilding of areas severely damaged by Supertyphoon Yolanda (international code name Haiyan) in 2013.

water for sewerage.The PNA also reported that dig-

nitaries of the international com-munity clarified that millions of dollars-worth of foreign donations being questioned did pass through the national government.

Michael Harper, chief mission of the German Embassy, said his country has donated P5 billion in cash and in kind, which came from the German community.

“We also donated P8.8 billion in cash and in kind which was withdrawn from the government of Germany’s coffer,” Harper told reporters in a news conference in Tacloban City on Sunday.

Susan Brems, the US Agency for International Development (US-AID) representative, also said dur-ing the same news conference that the USAID also coursed some of its donations worth $43 million to its respective counterparts.

Brems said they sti l l have pledged to the Philippine gov-ernment millions of dollars, but are sti l l waiting for the official study and recommendation on what the government’s imme-diate needs.

Lacierda confirmed reading reports about complaints on the post-typhoon recovery projects, but insisted the Yolanda rebuild-ing is even faster compared to

other countries. He added that the government

was taking note of the criticisms. “Kinikilala po natin [na] may mga kritiko po tayong nagsasabing ma-bagal. Pero malaki po ang sakunang nangyari sa atin at patuloy po nat-ing tinutulungan at ginagampanan po ang ating trabaho.”

According to Lacierda, the per-ceived delays could also be attrib-uted to the Aquino government’s strict adherence to its “build back better” mantra.

Reading a statement from President Aquino on the anniver-sary of the tragedy, Lacierda sug-gested that the Yolanda devasta-tion should instead inspire both the government and citizens to build back better communities.

“May the memory and lessons of that time inspire us to persevere in building back better, and in liv-ing up to the solidarity, resilience and generosity of Filipinos from all walks of life demonstrated not only then, but in all times of chal-lenge and adversity,” he said, quot-ing Mr. Aquino.

The President also acknowl-edged that the post-Yolanda recovery “would not have been possible without the world ’s em-brace of our people and our peo-ple’s own heroic generosity and sacrifice.” With PNA

Canada-PHL trade talks seento resume after Apec confab

Economic triangle in Iloilo seen rising with 3 Iloilo mayors’ deal

STEELED This November 5 photo shows a worker passing through a jigsaw of steel rods for the completion of a road project in Pasay City. The National Economic and Development Authority said investing massively—to as much as 5 percent of GDP–in infrastructure is one of the five key strategies to achieve the Road Map for Transport Infrastructure Development for Metro Manila. NONIE REyES

Angara calls for improvement of Filipinos on financial literacy

Jose Mari Mercado, president of the Information Technology and Business Process Management As-sociation of the Philippines (IBPAP) made this statement as the country gears up for the national elections slated in May next year. “If the DICT doesn’t happen in this administration, I hope whoever steps in next year would

prioritize it,” Mercado said in an interview during the Philippine Software Industry Association’s delegate conference, Softcon.Ph. The envisioned DICT is a Cabinet-level agency that is solely responsi-ble for the information- technology (IT) sector. Currently, the ICT Office under the Department of Science and Technology handles the con-

[email protected] Monday, November 9, 2015 A5BusinessMirrorEconomy

cerns of the BPO sector. The creation of a new department for the IT sector has been backed not just by BPOs but also by the Joint Foreign Chambers and local business groups. The DICT, business groups said, could improve e-governance, raise broadband quality, strengthen cybersecurity, and further prop up the booming BPO/knowledge-proc-ess outsourcing (KPO) sector. The measure will also rationalize the functions of the different govern-ment offices with ICT functions such as the Department of Transporation and Communications, the National Computer Center and the Telecom-munications Office. A measure creating the DICT has already gotten the nod of the House of Representatives and the Senate but its provisions have yet to be consoli-dated by the bicameral committee. As for the bill that seeks to ra-tionalize fiscal incentives given by investment-promotion agencies (IPAs), Mercado said he supports

Philippine Economic Zone Author-ity (Peza) Director General Lilia de Lima who called for a status quo on the grant of fiscal perks. “As long as it’s not broken, don’t fix it. It’s been successful in attract-ing investors. Investors are worried about instability. If we are the inves-tors, we want to come in knowing that the incentives we were presented will stay and won’t change,” he said. Fiscal and nonfiscal perks, such as income tax holidays of up to eight years and a preferential rate on gross income earned, are given by Peza and other IPAs to encourage investors to put their money in the Philippines. The BPO sector, considered a key contributor to the country’s economic growth, has benefited from the grant of fiscal incentives. The industry’s output is treated as exports. IBPAP has earlier warned that changing the form of fiscal and non-fiscal perks will reduce the competi-tiveness of the IT sector as multina-tional firms will be forced to relocate.

BPOs to next administration: Prioritize DICT, retain fiscal perksBy Catherine N. Pillas

Companies belonging to the business-process outsourcing (Bpo) sector are hopeful that the

next administration would prioritize the creation of the Department of information and Communication Technology (DiCT) and retain the current fiscal incentives scheme.

By Recto Mercene

Top transportation officials are expected to attend a Senate hearing on the troubles plaguing Metro Manila’s railway system

which will resume today, November 9. Sen. Grace poe, chairman of the Senate Sub-Committee on public Services, said of-ficials of the Department of Transportation and Communications, Metro Rail Transit (MRT) and Light Rail Transit Authority were invited to the hearing. poe said she initially scheduled the hear-ing on November 4 but Transportation Sec-retary Joseph Emilio A. Abaya declined the Senate’s invitation, citing a trip to Malaysia. It turned out that Abaya had a press confer-ence on the tanim-bala (bullet-planting) scam in airports on the same morning. “The MRT issue is a sad one. That is one is-sue that I am focused on because our economy is affected by it,” poe said, adding that the problem has reached that point because of

the weakness and the slowness of those in charge with it. The Senate’s agenda on MRT are fre-quent accidents on the tracks and increas-ing incidents of train malfunctions. “Many of the MRT’s trains and tracks have broken down due to wear-and-tear, with some 650,000 people taking the MRT daily, almost twice its capacity of 350,000,” she added. poe questioned the MRT contracts entered into by the government because these em-ployed and sustained the services of companies that do not have the capability to maintain the metro’s railways. “The MRT contract is shameless. But why didn’t we make it better when we enter into it. That’s the problem,” she said. “Would you believe that they signed a contract that would be given to a company that has no capitalization and expertise in running a train. They gambled our citizen’s safety,” poe added.

SENATE pANEL To RESuME hEARING oN MRT

BusinessMirrorMonday, November 9, 2015A6

BMReports

To be discussed is a set of is-sues—from human-capital de-velopment to leveraging inno-vation—that seek to make thesmaller, disenfranchised groupsofthesocietyparticipatebetteringlobaltrade.   ApecBusinessAdvisoryCoun-cil (Abac) Philippines ChairmanandCo-Chairman/AlternateMem-berDorisMagsaysay-Hoand Guill-ermo M. Luz, respectively, gave apreview of the high-level, three-daysummit,themed“CreatingTheFuture:Better,Stronger,Together,”totheBusinessMirrorrecently.  TheAbacismadeupof63busi-nessleadersacrosstheAsia-Pacificregion, with each Apec economyhaving three representatives. TheAbac stands as the private-sectorvoiceintheApec,andisthemainorganizing body for the annual 

Apec CEO Summit, which is helddays before the Apec EconomicLeaders’Meeting.   TheApecCEOSummitisbilledas the premier public-private dia-loguevenueinApec,withtopCEOsandkeygovernmentofficialscom-ingtogetherfortheevent. 

Helping the marginalizedMAGSAySAy-HO noted that whatthePhilippineswantstofocusoninthisyear’sCEOSummitisthefreshinitiatives that will make the ben-efitsoftheburgeoningglobalecono-myfeltbysmaller,marginalplayers.   Luzsaidthat,giventheAbac’sbroadthrustofmovingtowardre-gionalintegration,theAbacPhilip-pinesnowwantstoassesshowthemarginalizedgroupswillbeaffect-ed by the Asia-Pacific integrationondifferentfronts.   “We’ve worked all-year-roundand convened seven joint meet-ings of ministers and CEOs fortopics such as trade, life sciences,disaster management, city devel-opment,SMEs[smallandmediumenterpries], energyand transport.Theprivatesectorhastheabilitytodrive the [inclusive-growth] agen-da,”Luzsaid.  Summit Day OneOn november 16, the first day ofthe Apec CEO Summit, three ses-sionswillbeheld,withthefirstonetobeopenedbyJollibeeFounder,CEO and Chairman—and concur-rentlytheApecCEOSummitchair-man—TonyTanCaktiong.   The session opening will befollowedbyPresidentAquino’sad-dress on “Apec’s Inclusive GrowthImperative,”tosetthetonefortherestofthesummit.   The second session will delveon “navigating Uncertainty” forbusinesses in the context of geo-politicalrisks,deliveredthrougha“TED [Techology, Entertainment,

Design]-type”talk.   notably,thethirdsessionwillfocus on how innovation plays apartinchartingthenewbusiness-es, and how Apec economies cantap theproliferationofdisruptiveinnovations.   Magsaysay-Hounderscoredtheneedforthisinitiative,asthesenewtypes of businesses have becomekeydriversofgrowth.   “Digital infrastructure for aneconomyisgoingtobeanecessity,like water and energy. Economiesin Apec should build innovationecosystems, likestrengthening ICT[information and communicationstechnology] in colleges and STEM[science, technology, engineering,mathematics] education; puttingregulations around intellectualproperty;  building university-ledresearch centers; mentoring start-ups; and helping start-ups com-mercialize,”Magsaysay-Hosaid.   For the session on innovationand entrepreneurship, no less thanColumbian President Juan ManuelSantos and former Taiwanese VicePresidentVincentSiewwillformpartofthepanel,alongwiththeCEOofbi-lateralforeignaidagencyMillenniumChallengeCorp.,DanaHyde;andtheCEOof safety consultancy and cer-tificationfirmUnderwritersLabora-tories,KeithWilliams.  Summit Day TwoTHE second day will see AirAsiamogul Tony Fernandes deliveringtheopeningremarks.  Four sessions will take placeduring the day, with the first ses-

siontacklingtheprospectsofAsia-Pacificgrowth.   Educationandhealthwillbethecenter of discussion for the secondsession,withPeruvianPresidentOl-lantaHumalaheadliningthepanel,as well as the CEOs of JP MorganAsia Pacific and pharmaceutical gi-antSanofiPasteur.   Inclusivegrowthandsustain-abilitywillbethehighlightofthesecondday.Apanel—tobe ledbyVietnamese President Truong TanSang; Executive Chairman andCEO of Blackberry John Chen;

DonaldKanak,headofPrudentialCorp.Asia;E.AllanGaborofMerckBiopharmaChina;andAsiaSocietyPresident Josette Sheeran—willtacklethepoliciesonresiliency.   Related to this is another ses-sion focusing on effective urbandevelopment and infrastructureinvestmenttobeledbyLordMayorofMelbourneRobertDoyle. TheCityof Melbourne has been recognizedasthemost livablecitybybusinessjournal The Economist for five yearsinarow.Doyleisexpectedtoshareinsights on how other cities can

Apec CEO Summit to gather 16 leaders, close to 1,100 delegatesBy Catherine N. Pillas

The Asia-Pacific economic Cooperation (Apec) CeO Summit will put in the spotlight

the inclusive-growth theme that the Philippines chose as the host nation, when the largest meeting of top business leaders in the Asia-Pacific region convenes next week. 

BusinessMirrormedia partner

Rows of vans to be used by Apec CEo summit delegates are parked at the Cultural Center of the Philippines Complex open parking lot in Pasay City. ed davad

BusinessMirror A7

BMReportsMonday, November 9, 2015

emulateMelbourne.   This ties up with the Abac’spushformoreinvestmentsinsus-tainability, an area that the Abacseesasapotentialgrowtharea.   “Asdemographics changeandpopulations grow, we expect be-tweennowand2020there’llbean-otherbillionpeople;sothatmeansinvestment in cities, in food, inrenewable energy. These are areasthatAbacmaderecommendationsto leaders, in terms of removingbarriers to investment,” Magsay-say-Hosaid. 

Better citiesInconnectiontothis,LuzsaidtheAbac will release a report, titled“BuildingBetterCities,”duringtheApecEconomicLeaders’week.   The Building Better Cities re-port will rank 28 cities, includingCebu and Manila, in terms of liv-ability,sustainabilityandcompeti-tiveness.   “We,togetherwithPriceWater-houseCoopers, came up with areport,withthebroadmetrics be-ing the three mentioned. Specificfactors—such as city size, regula-

tions, heritage and culture—weretaken into consideration,” Luzadded. “Thewholeideaisnottogeta judgment,buttocreateametrictogetthesecitygovernmentsanddevelopers to ask themselves howtheywanttobeinthefuture.Ma-nilaandCebuareonthelist.Ican’tsay the ranking but you can ven-ture a guess that they’ll be in thebottomhalfofthelist,”Luzsaid.   TheseconddayofthesummitwillcloseonabroaddiscussiononAsia-Pacifictradeinthecontextofemerging major trade initiatives,

like the Trans-Pacific Partnershipand the Regional ComprehensiveEconomicPartnership.  The discussion will be led bynewZealand PrimeMinisterJohnKey and Hong Kong Chief Execu-tive Leung Chun-ying, with theheadsof theOrganisationforEco-nomic Co-operation and Develop-ment and the Asian DevelopmentBank, Angel Gurria and Takehikonakao, respectively, completingthepanel.  Summit Day ThreeTHE last day of the Apec CEOSummit will primarily focus oncountry leaders, with JapanesePrime Minister Shinzo Abe andRussianPresidentVladimirPutininvitedtodeliverremarksbeforethemajorpaneldiscussiononthetheme“SecuringGrowthinaVol-atileWorld”begins.   Accordingtoadraftprogram,Australian Prime Minister Mal-colm Turnbull, Canadian PrimeMinister Justin Trudeau, Indo-nesian President Joko Widodo,Mexican President Enrique Peñanieto and Singaporean PrimeMinister Lee Hsien Loong wereinvitedtotakepartintheculmi-natingpaneldiscussion.   Finally, expected to delivertheir respective closing remarksfor thesummitareChinesePresi-dent Xi Jinping and US PresidentBarackObama.  The CEO Summit will gather16 leaders, five insight speakers,20executivesandthoughtleaders,andcloseto1,100delegates.

People connectivityTHE connectivity of people, es-pecially of skilled workers, in theregionwillbeoneofthehallmarkthemesinthesummit. “The idea of connectivity isvery important. There is a con-nectivity blueprint, which speaksabout people-to-people [P2P] con-nectivity, institutional connectiv-ity and physical connectivity,”Magsaysay-Hosaid.“FortheP2P[connectivity], so far, when youlook at the Apec agenda, a lot ofitfocusesonthetradeaspect,fi-nancialaspects,butverylittleofpeople connectivity. It seems tobe the last frontier to be able tointegratemobility,”theAbac2015chairmansaid.  Magsaysay-Ho said the AbacPhilippines has been pushing fordiscussions in the region for bet-terandmoreeffectivemobilityforpeopleinAsiaPacific.  “TheAbacPhilippineshas,forquite a long time, promoted andmade recommendations aroundtheneedforApectocreateanewframework for the managementof mobility of people around theregion, and this has become im-portant for business because ofthedemographicchanges thatarecausinghugeshortagesinlaboratallskillslevelsacrosstheworld,”shesaid.  The Philippines has beenknown to be at the forefront ofthe demographic shifts across theworld,beingoneoftheeconomiesthatwillbenefitfromit.  This, as the Philippines—

startingthisyearupuntil2050—will be within the “demographicsweet spot”—or loosely when agreat majority of the populationareofworkingage.  Attheendofthethirdquarterof theyear, thecountry’s InvestorRelations Office said that, basedonofficialprojection,thecountry’sworking-agepopulation—orthosebetween15and64yearsold—ac-countsfor66.6percentofthetotalpopulationof101.6million.  The government has also re-ported in its midyear economicbriefing that it has been “activelyinvesting”inthecountry’shumancapital—more particularly in theeducation and health-care sys-tem—to fully realize this demo-graphicdividend.  The demographic dividendthat the country enjoys is in con-trasttowhatothercountriesintheregionareexperiencingbecauseoftheir aged population, thus, high-lighting the need for the sharingofwork force in theregionfor in-creasedproductivity.  ThePhilippineshasbeen longknown to be a heavy exporter ofhuman assets, as seen in the vol-ume of Filipino migrant workers,who have been among the pillarsof the economy because of theircontribution to foreign-currencyinflowsandprivateconsumption.  As of end-August this year,total remittances sent home byFilipinomigrantworkershit$16.2billion,4.1percenthigherthantheeight-monthtotallastyear. 

With Bianca Cuaresma

Apec CEO Summit to gather 16 leaders, close to 1,100 delegates

[email protected]

Capitol gives out P1.38-M cash assistance to Antique seniors

Not so for four Ayta grandmoth-ers who underwent six months of training at Barefoot College in India to become solar engineers.

Evelyn Clemente, Sharon Flores, Cita Diaz and Marga Salvador par-ticipated in a six-month training program on solar engineering, specifically fabricating, installing, repairing and maintaining solar-lighting equipment.

The Barefoot College was found-ed by Sanjit Bunker Roy, one of TIME Magazine’s most influential persons in 2010. The college seeks to educate illiterate and unskilled women in technology that they are expected to bring back to their re-spective communities.

Lawyer Patricia Bunye, presi-dent of Diwata Women in Re-source Development Inc., a non-governmental organization, said the four Ayta grandmothers will play a significant role in introduc-ing electricity in their community.

Ma ny commu n it ies where indigenous people (IP) live stil l have no electricity. By intro-ducing the Aytas to renewable energy through solar panels, Bunye said she hopes light “will bring new life” for the commu-nity of IP.

The project Tanging Tanglaw

turns IP women into solar engi-neers. The project is done in col-laboration with Diwata, Women in Resource Development, Phil-ippine Mine Safety and Environ-ment Association (PMSEA) and Land Rover Club of the Philip-pines, with the support of the Em-bassy of India in the Philippines. It aims to empower IP women, particularly grandmothers who are no longer the primary care-givers of their families.

Clemente and Salvador ex-pressed their excitement in shar-ing their new knowledge so that their community will get light. They also expressed their gratitude to all those who helped complete their training.

N. Ramakrishnan, first secre-tary from the Embassy of India, personally greeted the four Ayta solar grandmothers for being among the 36 students from 11 nations worldwide who underwent the program.

Clemente, 54, said she never imagined she would one day learn how to install solar-powered lamps. But on March 16, she and three other Ayta women arrived in Ma-nila from a six-month training program in India.

“Ako ngayon hindi lang isang

4 fantastic Ayta lolasEVEN today, there are still some

cultures that treat women as worth less than men. They

silently suffer this injustice for as long as we can remember.

TimeBusinessMirror

Our

NHCP to restore HeritAge buildiNg for iloilo City

Monday, November 9, 2015 • Editor: Efleda P. Campos

BACOLOD CITY—Seventy-five centenarians in Ne-gros Occidental, including

118-year-old Francisca Susano of Barangay Oringao, Kabankalan City, were given recognition dur-ing the 117th Cinco de Noviembre rites held at the Capitol grounds here on Thursday.

Each of the centenarians, or those who are 100 years old and above, received a cash incentive of P100,000 each from the provincial government.

Records of the Provincial Social Welfare and Development Office showed that of the 75, nine were from the First District and three from the Second District.

There were 18 centenarians from the Third District; 15 from the Fourth District; 13 from the Fifth District; and 17 from the Sixth District.

At 118, Susano is the oldest person in the province, but she can still walk.

Born on September 11, 1897, she was married at the age of 14.

She gave birth to 14 children, including her 99-year-old child, the eldest, who is still alive.

Susano, who was not able to at-tend school, has 70 grandchildren and four great grandchildren.

She and her husband, who passed away decades ago, worked as farm laborers.

The centenarian said that her “secret” to a long life is “eating vegetables.”

“I always eat vegetables, but when there’s meat, I also eat meat,” Su-sano said.

Earlier this year, the Provincial Board approved the Negros First Centenarian Act, which grants a one-

time cash incentive worth P100,000 to centenarians in the province.

Under the ordinance, beneficiaries must be a resident of Negros Occiden-tal for at least three years. Those liv-ing in Bacolod City are not qualified.

Cinco de Noviembre, a special non-working holiday in Negros Occidental, is a commemoration of the historical event that happened on November 5, 1898, when the Negrenses bluffed the Spaniards to attain their freedom.

The Spaniards decided to surren-der upon seeing armed troops in a pincers’ movement toward Bacolod.

The marching revolutionists, led by Gen. Juan Araneta from Bago City and Gen. Aniceto Lacson from Silay City, were actually carrying fake arms consisting of rifles carved out of palm fronds and cannons of rolled bamboo mats painted black. PNA

118-year-old Negrense woman, 74 other centenarians get recognition

babae o isang lola o isang nanay. Isa na akong solar engineer. Kung ano po ang nagagawa ninyong mga lalaki, kaya kong gawin ’yan at hi-higitan ko pa (Now I am not just a woman or a grandmother or a mother. I am a solar engineer. What men can do, I can do and do it better),” she said proudly during a press briefing.

Now she can connect small so-lar panels with lanterns to light up Ayta villages. She knows how to fabricate, maintain and repair them. The hardest part, she said, is inserting a tiny component called “resistance” into the circuit.

“You have to look at the color carefully because if your eyes are blurry, you will make a mistake. The LED lamp will not light up,” she explained in Filipino.

All this, she and her compan-ions learned in Barefoot College, a school in Rajasthan, India, that empowers il literate women to deliver solar power, clean water, education, livelihood develop-ment and activism projects to rural communities.

The school is run by Roy who was named one of TIME Maga-zine’s 100 most influential people in 2010.

The Ayta grandmothers, dubbed “solar lolas,” were sent to the Bare-foot College through the Tanging Tanglaw program—a joint effort of women empowerment group Diwa-ta, the PMSEA and the Land Rover Club of the Philippines.

Clemente and another solar lola hail from Sitio Gala in Aningway village in Subic, Zambales—an Ayta resettlement village. The two

SAN JOSE, ANTIQUE—A total of P1.38 million has, so far, been given out to senior citi-

zens aged 90 years and above in the province of Antique.

Provincial Social Welfare and De-velopment Officer Lazaro Petinglay said that as of October 30, 386 indi-gent senior citizens aged 90 and above received cash assistance ranging from P3,000 to P10,000 under the program Pag-ulikid kang Gobernadora sa Mga Lolo kag Lola.

Under the program, senior citi-zens aged 90 to 94 are entitled to cash assistance of P3,000, while those aged 95 to 99 will receive P5,000 and those aged 100 years and above get P10,000.

Petinglay said the listing is still ongoing as the social workers in four towns, specifically Belison, Culasi, Sebaste and Pandan, have not yet submitted their list of beneficiaries

while in two towns, namely, Tibiao and San Jose, only two and four el-ders have registered.

“We are expecting more senior citizens to avail [themselves] of this program that we are calling for those who have relatives aged 90 years and above to come to our office and register their elders so that they will be included in our second batch of distribution of cash assistance on December,” Petinglay said, adding that his office is coordinating with the different Office of the Senior Citizens Affairs in the municipali-ties so that everyone qualified to the program would be given finan-cial assistance.

Last week’s distribution of checks was held in Bugasong town. Three of the recipients are 105 years old, namely, Sabas Laureano of Baran-gay Trinidad, San Remigio; Lucibar Vicente Sr. of District II, Sibalom;

and Esteban Mediore of Poblacion Norte, Tobias Fornier, received P10,000 each.

Also, those who received their checks in the amount of P10,000 each were Presentacion Juanites of Barangay Beri Barbaza, now aged 103; Basilia Ignacio of Bugo, San Remigio, now aged 103 years; Blas Peregrino of Igbalangao, Bugas-ong, now 102; Antonina Vicente of Cuyapiao, Patnongon, now 101 years of age; Asuncion Paguia of Alegria, Caluya, now 101 years of age; Rita Natividad of Poblacion, Tibiao, now 101 years old; Nicola-sa Rosilio of La Rioja, Patnongon, now 100 years old; Narciso Berdin of Cansilayan, Valderrama, who is also 100 years old.

A total of 105 recipients are male and 281 are female; 11 are 100 years and above while 82 are aged 95 to 99. PNA

GRANDFATHER’S LOVE A grandfather gently tugs his grandson’s swing at the Burnham Park in Baguio City. MAu ViCtA

ILOILO CITY—The city council here has authorized Mayor Jed Patrick Mabilog to sign a memorandum

of agreement (MOA) between the Na-tional Historical Commission of the Philippines (NHCP) and the city govern-ment for the restoration of a heritage structure at no cost to local government.

City Councilor Eduardo Penare-dondo, chairman of the committee on rules, ordinances, resolutions, style, justice and legal affairs, said the MOA

is most favorable and not onerous to the city government.

The city has bought the almost one-hectare lot adjacent to the city hall from British firm KERR and Co.

Mabilog earlier said the area will host a new two-story building for the senior citizens, a parking area and the old building will be restored.

The MOA concerns the restoration and preservation of the KERR building, which was declared a heritage structure

by NHCP as per Resolution 3, Series of 2014. The building is an old Spanish structure which, because of nature and infestation of termites, needs preser-vation, restoration, rehabilitation and reconstruction following the heritage architecture of the building.

The NHCP shall spend for the un-dertaking, prepare plans for the same and conduct public building bidding and turn over the same to the city govern-ment upon completion of the project. PNA

others come from Gayaman Anupul in Bamban, Tarlac.

The most difficult thing about the training, said Clemente, is the language barrier. They were taught by Indian trainers and were “class-mates” with other IP women from all over the world.

To get technica l concepts across, the instructors would use sign language or would color code instructions. If that failed, they would resort to simple Eng-lish words.

The lolas got up at 8 a.m. every day and started class at 9 a.m. The work was intensive and “scary,”

Clemente said.During one session, the circuit

that Flores was working on explod-ed. But she was unfazed.

“Hindi ko inisip na agad ako umuwi. Ang inisip ko, inspirasyon ko ang aking pamilya at lahat ng komunidad para magawa ko ito (I didn’t think right away that I should just go home. I thought, my family and commu-nity are my inspiration to do this),” she said.

Flores missed her eighth kids and four grandchildren terribly while she was away. She called them three times a month, worried that one of them might be sick without her to

take care of them.But it was for their sake she kept

going. She hopes her new skills can help send them to school.

“The women in our village don’t have jobs. They gave us a job,” she said in Filipino, unable to keep her tears at bay.

Traveling to a different country and confronting a whole new culture and way of life was just as daunting. It was the first time any of them had stepped unto a plane.

“We were shouting inside the airplane! We were holding on to each other. One of us even farted,” Flores said.

THE four fantastic Ayta grandmothers—Evelyn Clemente (from left, kneeling), Sharon Flores, Cita Diaz and Marga Salvador—show their new skills to several supporters.

S J B

BANGKOK’S frenzied pace, blur-ring red lights and its well-worn backpacker trail is still a novel

experience for those who have been to � ailand a couple of times.

BusinessMirror Editor: Carla Mortel-Baricaua

Tourism& EntertainmentMonday, November 9, 2015A9

For those looking to dig deeper into culture and history, head-ing north lets you experience the country beyond the contradictions of Bangkok.

Staying true to its vibrant pastI RODE the overnight train from Bangkok to Chiang Mai; it was easy enough to book because it was a popular destination for both local and foreign travelers. For me, it was also a novel way to travel and see more of the country rather than booking a flight.

The night went by quickly, I woke up to the slow chugging of the train as buildings vanished, replaced by plains, mountains and small charm-ing towns. As we inched closer to Chiang Mai train station, I pictured verdant landscapes with little to no concrete or metal structures, and villages where local people gathered around a market. I wanted to project a Philippine province in my next des-tination; but I was in for a surprise.

The five-star hotels, interna-tional restaurants, busy streets, commercial districts and all the characteristics of a metropolis were there in Chiang Mai. I was a bit dis-appointed, but I kept an open mind, maybe the city managed to retain its personality despite its glossy and commercialized exterior?

A walk and ride around town made me see how the city managed to stay connected with its past. The centuries-old temples conflate with

the high-rise buildings and the local markets. The ascent and descent of temple spires and concrete and me-tallic roofs of buildings and houses line the city’s skies.

The connection of the Thais to their past is seen through the res-toration of temples that date hun-dreds of years ago and the bustle that happens on a daily basis. These are not just vestiges of a forgotten past; they are part of the present and the near future.

The most prominent of the several decades or centuries-old temples is Wat Chedi Luang. The unfinished state of this Buddhist temple adds to its mystique; a lost-in-time feel, left in the past but dragged into the present amid five-star resorts and

throngs of foreign visitors. The con-struction of the temple began in the 14th century, but only finished in the mid-15th century.

Inside the old city of Chiang Mai is like walking the thin line of past and present; there are several temples in various states of ruin or repair intermingled with newly built ones or the construction of restaurants, hotels or family-owned shops and guesthouses.

To escape the hustle and bustle of the city (or so I thought), I went to Doi Suthep, a famous mountain just outside the city. I threw all percep-tions of a quiet day out when I saw multiple cars parked just below the mountain and the presence of sev-eral shops around it. The droves of people went up the more than 300 steps stairs or took the elevator to see Wat Phra That Doi Suthep.

Atop the mountain, I saw the revered temple laden in gold. The crowds did not take away from the beauty of the structure and its sig-nificance to the Thais.

The odd amalgamation of noise and silence; I have never been to a place where it was noisy and quiet at the same time. Many locals and foreigners flock to popular places of worship like Wat Phan Tao and Chedi Luang. However, I still found a temple where few people visit to just stop and think for a moment, or slow down before zipping back into

the day’s agenda. The building of new structures

conflates with the revival of ancient temples, keeping Chiang Mai root-ed to its culture despite its modern-izing façade.

The artist’s journeyCHIANG Rai is approximately three hours from the city of Chiang Mai; the former does not have the same buzz as the latter. However, the city has interesting sights because of its proximity to Myanmar and Laos.

Wat Rong Khun, or famously re-ferred to as the White Temple, is a modern Buddhist temple, a brain-child of Thai artist Chaloemchai Kositpat. The modern Buddhist temple is the brainchild of Thai artist Chaloemchai Kositpat. The structure is the symbol of his jour-ney to enlightenment and accep-tance of Buddhism. He spent ap-proximately 40 million baht of his own money to fund his creation.

The White Temple is one of the most beautiful structures I have seen in Thailand. It blends old and new, creativity and spirituality. The bone-white structure adds a twist to traditional temple design by giving it a contemporary flair. Heads of famous fictional characters hang just outside along with guard-ians and gods.

The impressive entrance depicts the struggle of man to enlightenment and peace. Several reaching hands from below depict the evil inherent in people; the only way to happiness is to forgo desire, greed and temp-tation in the world. The symbolic crossing of the bridge over the lake is the transition from hell to heaven or Nirvana.

The ubosot or main structure is a pearl-white temple with frag-ments of mirrors that make it glisten under the sun.

In a true artist’s fashion, the structure remains unfinished with construction of new buildings and renovation ongoing—the journey more important than the destination.

Caught in betweenCHIANG Rai’s proximity to its north-ern neighbors LaoPDR and Myan-mar, give it a unique mix of culture

and history shared along its border.The Golden Triangle is an area

shared by three countries, Thailand, Myanmar and Laos. The border is in-famous in its role during the opium trade prevalent in the region. There is nothing remarkable about the area shared by the three countries; brack-ish and muddy waters and a mish-mash of temples, restaurants and other commercial establishments.

For the history buff, there is a lot to imagine once you set your eyes on the nothingness in front of you. The conflict of the countries in the opium trade, the entanglement of people in power and their pushers, the civilians caught in the web and the journey to stopping the dangerous business all make a compelling plot.

The two cities in northern Thai-land are rising with a strong sense of self and history, making them unique in their own right from the city of Bangkok.

The unique, modern architecture, and the old and restored ancient structures are symbols of a country that uses its past as a blueprint for its future.

VOYAGE TO NORTHERN THAILAND

THE guards just before entering the main temple glimmer in their bone-white appearance.

THE many hands reaching out once you cross the bridge into the main temple of Wat Rong Khun.

THE revered temple laden in gold atop Doi Suthep.

THE temple atop Doi Suthep is one of the most visited in Chiang Mai.

WAT Chedi Luang’s ruinous state adds to its mystique.WAT Rong Khun, or the White Temple, glistens under the sun as tourists shuttle in and out.

COLORFUL souvenirs line the streets when the night market is in full swing.

THERE are several temples decades or centuries old scattered all over the city of Chiang Mai.

Monday, November 9, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA10

Preparing for wareditorial

While the Philippine government may have some problems figuring out how to handle the Chinese military, one govern-ment agency has spent most of the last

year getting ready for battle. 

if you have been following the BusinessMirror stories about the Bangko Sentral ng Pilipinas (BSP), you can discover a clear pattern. The BSP has been preparing for war. 

in his treatise “Concerning Military Matters,” ancient Roman author Veg-etius wrote: “in time of peace prepare for war.” The coming economic war will be fought with interest-rate policy and exchange-rate manipulation, and the front lines will be the global banking system and financial markets. 

During the last year the BSP has been building a fortress to protect Philippine banks. Prior to shooting wars, the citizens are not always happy having to dig and build bomb shelters, stockpile goods and make sacrifices that do not seem important at the time. But wise generals know that these are necessary steps to avoid catastrophe. 

Since the third quarter of 2014, when the BSP raised base interest rates, it has held firm in that policy decision despite calls to allow the cheap-borrowing party to continue. earnings of the local banks have been going down for several quarters in large measure because the BSP has put strict limits on the banks’ financial-market trading activities to “limit operational risk.” 

Further, the BSP has continuously updated and strengthened its rules for lending, particularly to the property sector, to shield both the banks and the developers from any downturn in the real-estate market.

 The BSP has resisted calls to intervene to help push the Philippine peso in one direction or the other, depending on the needs or which spe-cial interest group is pushing the narrative. This policy has given the BSP a genuine understanding of the true market forces and money flows af-fecting the peso/dollar exchange rate. The BSP must know, for example, how a 2-percent decline in the Japanese yen against the US dollar is go-ing to affect the Philippine peso. 

in October the nation’s gross international reserves (GiR) reached a two-year high of $81.14 billion. The GiR is the ammunition that the BSP can use if global events or speculative forces move the peso to un-reasonable levels. 

in time of war, the public looks to the generals—more than the civilian leaders—for both guidance and confidence. The BSP has been proactive in speaking to both the public and local financial-market participants with updates and facts to assure the country that the BSP is on top, and even ahead, of potential disruptions in the global financial situation. 

With the strong likelihood of the US Federal Reserve raising interest rates next month, and the unknown potential of what the immediate global mar-ket reaction is going to be, it is critical that the BSP has to prepare for war. 

American Gen. William Tecumseh Sherman said, “War is hell.” As a former businessman and banker, he might well have said the same about the current global financial condition.

When speaking of the services of the Philippine Charity Sweepstakes Office (PCSO), perhaps what the public is most aware of is financial assistance for

the hospitalization of patients who cannot otherwise afford treatment or care.

PCSO extends help to Lando-stricken areas

This service falls under the agency’s flagship program, the in-dividual Medical Assistance Pro-gram (imap), which has provided over P22.9 billion during this ad-ministration—from 2010 to June 2015—for the hospitalization and medical treatments (dialysis, che-motherapy, and others) of quali-fied patients.

But the imap is not the PCSO’s only service. Among its many other services are calamity assistance, given to those directly affected by emergencies, such as the Zamboan-ga conflict; and natural disasters, such as typhoons and earthquakes.

The latest calamity we have had to recover from was Typhoon lando (international code name Koppu) that landed up north on October 17, and over the next couple of days devastated nine provinces in northern luzon.

in such cases, the PCSO has an automatic response, wherein the agency shoulders the hospi-talization costs of the victims of calamities through imap. Relief goods, equipment, medicines and other forms of assistance are also provided, depending on the need.

not including hospitalization as-sistance, the PCSO has provided to lando victims over P3.87 million to date. The amount went to medi-cines for isabela, Quirino, Bulacan, Aurora and Tarlac; relief packs for Cagayan; rice for Bani, Pangasinan; groceries for Pampanga; and finan-cial assistance for nueva ecija (ac-counting for P1 million).

The PCSO often courses calam-ity assistance through its branch office network, now at 47 branches all over the country from an initial 25, when the present PCSO board of directors assumed office in 2010.

This year, in order to continue implementing a medium-term strategy to make PCSO services more accessible to more Filipinos, the agency will establish two more branches in Bayombong, nueva Vizcaya and Mati, Davao Oriental.

Both are tentatively scheduled to be opened within this month.

The aim is to have an office in every province, where it is fea-sible. Because each branch office functions almost as a mini-PCSO, this will make it more convenient for our kababayan to file their re-quests for assistance and patronize PCSO products, such as lotto and other games.

it is the PCSO games that fund all the programs of our 81-year-old agency, including the ambulance-donation program, which provides brand-new ambulances every five years to requesting parties.

 Under a 60-40 percent sharing scheme or outright donation, de-pending on certain criteria, local government units (lGUs), public hospitals, charitable institutions and associations, and state col-leges and universities may avail themselves of ambulances from the PCSO for the benefit of their constituents.

Ambulances are a great help to communities, especially during times of calamities, something we’ve been told by lGU officials

around the country, who said that PCSO ambulances have been in-strumental in saving the lives of many during medical emergencies and natural disasters.

in line with this particular pro-gram, the PCSO will give away 700 ambulances this year. The latest batch of 31 was delivered last week to recipients in nine provinces in southern Philippines: Bukidnon, Camiguin, lanao del norte, Mis-amis Occidental, lanao del Sur, north Cotabato, South Cotabato, Sultan Kudarat and Maguindanao.

Ambulances are also being turned over at the PCSO head of-fice in Mandaluyong City to vari-ous recipients from all over the country. On October 16, units were given to Kabasalan, Zambo-anga Sibugay, and Talavera, nueva ecija; and on October 15 to the Armed Forces of the Philippines’s naval Forces northwest and the Manila naval hospital.       

With two months left in the year, PCSO remains as energetic as ever in pursuing its strategies: from growing its business to deliv-ering its core services, the agency seeks to fulfill its commitment to help deliver universal health care to the Filipino people.

n n n

Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

RISING SUNAtty. Jose Ferdinand M. Rojas II

By Francis Wilkinson | Bloomberg View

iT looked, until today (november 6), that Marco Rubio would be subjected to a pincer maneuver by Donald Trump and Jeb Bush.  Trump wants to bruise Rubio, in part, because the Florida

senator is on the rise, and in part, because Trump knocks people down just because he can. Bush wants to remove Rubio from the presidential field in particular because Rubio is getting traction in inverse proportion to the degree that Bush is losing it.

Rubio’s racking up enemies

now, in what can only be an un-pleasant development for Rubio, Ted Cruz has decided to make it a three-pronged attack. A super PAC supporting the Texas senator’s presidential ambitions launched a radio ad in iowa on Friday attack-ing Rubio for a lack of accomplish-ments except one: “his gang of eight amnesty bill.”

Rubio, whose talent for the slippery getaway is on par with Trump’s for shoves from atop the jungle gym, is desperately trying to avoid being pinned down on im-migration. Trump, in particular, has been pushing Rubio to define his nebulous, shifty positions. in the shorthand of conservative im-migration restrictionists, Rubio

was against “amnesty” before he sponsored a Senate bill providing a path to citizenship for 11 million undocumented immigrants in the US. When that plan went down in the house, a victim of conserva-tive outrage, Rubio slipped back through the battle lines to take shelter on the amnesty opponents’ side. it is in no one’s interest, save Rubio’s, for him to find safe refuge there.

Trump has already had success smoking out Rubio, as Bloomberg’s Sahil Kapur reported this week.

Rubio also toughened his posi-tion on immigration, making clear for the first time he’d end Presi-dent Barack Obama’s program to shield young undocumented

“ dreamers” from deportation by stopping new enrollments. Obama’s program is designed to temporarily protect people who were brought to the US by their parents when they were children.

The Cruz super PAC’s radio salvo, which may or may not be welcome by Cruz’s campaign, is no doubt music to Bush’s ears, since his resurgence is in all likelihood dependent on Rubio’s weaken-ing. “he’ll go through the wring-er, just like i’m going through it, and he’ll have to defend himself,” Bush told the Wall Street Journal. “There’ll be scrutiny on him, just as there should be for everybody.”

Rubio could find himself under siege very quickly, if Bush—or, more likely, the super PAC support-ing him—picks up the “do noth-ing” theme of Cruz’s attack and if Trump zeroes in on the cleaner, more deadly shot: that immigra-tion restrictionists can’t trust the wavering Rubio.

Rubio may be the only candidate in the field who could provoke an attack from Cruz, Bush and Trump. Bush and the others are, after all,

competing to capture entirely dif-ferent voting blocs. Rubio is suffi-ciently malleable (and talented) to be a threat to compete against all three. Yet, as Scott Walker found, in attempting a run similar to Rubio’s, it’s easy to be overwhelmed and discarded in a large field that has yet to find its indispensable man.

if Rubio fails to commit irre-vocably to the Trump-Cruz “no amnesty” position, he will have serious troubles with the Repub-licans’ restrictionist base. if he capitulates fully to the restriction-ists to prove his faithfulness, he’ll have little room to maneuver in a general election, when hispanic and Asian voters will be looking for clear signs of inclusiveness from whatever Republican nomi-nee emerges from an ugly primary.

in effect, Trump and Cruz are driving Rubio to be as unaccept-able to a general electorate as they are likely to be themselves. That doesn’t mean Bush, who has mostly  stuck to his lonely sup-port for immigration reform, will survive the primary. But it would be a delightful irony if it did.

Monday, November 9, 2015

[email protected]

Private sector: The engine that propels Apec to greater heightsBy Michael M. Alunan

Special to the BusinessMirror

Although the Asia-Pacific Economic Cooperation (Apec) is a group of 21 economies led by heads of states, it never makes “binding” agreements. however, Apec has had numerous

achievements since its inception in 1989, mainly because of the active participation of the private sector under the Apec Business Advisory Council (Abac).

the private sector in the 21 econo-mies, with the support of their respec-tive governments, has been responsi-bly pursuing what were agreed upon on a “best effort basis.” this means that the business private sector is the engine behind the phenomenal success of Apec. this is the lesson we learned in a press forum organized by the BusinessMirror with Doris Magsaysay-ho, chairman of the Abac, and guillermo luz, chief operating officer of the Apec 2015 Chief Ex-ecutive officers Summit, as speakers.

ho said that it is “the private sec-tor that lives the change every day.” She explained that policy reforms take time to evolve, but this should not hinder business from thinking of innovative and creative ways of go-ing around government impediments without violating laws, such as con-stitutional restrictions like foreign-ownership limits on vital businesses.

“Tail biting the dog”? VEtErAn newsman teddy locsin Jr., who was at the BusinessMir-ror press briefing, likened the trail-blazing private sector to “tail biting the dog,” referring to the business sector moving ahead of government. he noted that, at times, it is the rule of law that often “prevents many businesses from moving as fast” in re-sponse to the demands of the times.

luz explained the “nature of change,” saying, “the trade business is now outpacing the discussions of multilateral organizations like Apec.”

ho added: “We are even moving beyond tariffs, goods and services. that is why we need to focus on ed-ucation as we don’t know the jobs of the future and the dynamics of change.” She stressed that education, particularly in the field of science and technology, is the long-term solution to poverty as it will help us keep up with the dynamic changing world of innovation.

Apec pie doubles Citing the 21 economies’ records, luz said Apec’s combined gDP dou-bled from $16 trillion in 1989 to $31 trillion in 2013, and now accounts for 57 percent of world gDP and 47 per-cent of world trade in 2012.

“the main reason for this is the steady reduction in trade barriers and tedious regulations,” luz said, citing Apec statistics showing that average tariffs alone fell from 17 percent in 1989 to 5.2 percent in 2012. Apec’s total trade thus increased over seven times to $22 trillion, from 1989 to 2013, while the rest of the world grew by only 5.4 times during the

same period. Apec’s trade Facilitation Action

Plan to simplify customs procedures resulted in region-wide cost reduc-tion by 10 percent between 2004 and 2010, which generated savings for businesses among Apec members to about $58.7 billion. this was partly due to the installation of computer systems reducing processing time from six to eight days to only four to five hours on the average. And for environmentalists, Apec reduced tariffs to 5 percent or less to a list of 54 environmental goods as of 2015. Although all plans, as usual, are again not binding, Apec members still re-sponded voluntarily in varying de-grees of compliance.

Philippines rides on Apec’s gains thE Philippines improved its world competitiveness rankings by five notches in the World Economic Forum’s (WEF) 2015 global Com-petitiveness study. the country is projected to be the “16th-largest economy by 2050,” owing to its huge population and rich resources, which usher in bigger and promising oppor-tunities for Filipinos, according to the Economist magazine. the country’s Public-Private Partnership Program is also “recognized as one of the best in the world, ranked seventh out of 21 countries in 2014.”

Nikkei Asian Review reported that the Philippines is now considered the region’s next shipbuilding hub and has even surpassed its European ri-vals in 2010. By 2014 it was already the fourth-largest shipbuilding na-tion after China, South Korea and Japan, it added.

trade undersecretary Adrian S. Cristobal Jr. noted that Apec has contributed much to the coun-try’s growth, as “85 percent of Philippine exports and 70 percent of imports are accounted by Apec member-countries.”

Inclusive growth urgent luz noted that the country’s “robust growth did not always translate into inclusive benefits for all, as poverty and joblessness continue to prevail.” he stressed that “this is precisely why the Philippines is pushing for the next agenda this year,” with the theme “Building inclusive Economies, Building a Better World.”

Apec’s key priorities, starting in 2015, to achieve inclusiveness are the following: 1) Enhancing the re-gional economic integration agenda; 2) Fostering small and medium en-terprises’ participation in regional and global markets; 3) investments

in human capital development; and 4) Building sustainable and resilient communities.

Deeper cooperation through inte-gration involves more reforms that will improve the ease of doing busi-ness, more access to developmental funds, better governance, and wider value and production chains, particu-larly with micro and small businesses, which account for over 90 percent of total businesses Apec-wide. Educa-tion is also a priority to prepare the youth to the fast-changing dynamic future. Being in the Pacific ring of fire of earthquakes, with some members vulnerable to climate change like ty-phoons and droughts, sustainable and resilient communities have now become a top agenda for all.

Meets provide meatForEign Affairs undersecretary laura Q. del rosario noted that it took a total of “157 major and mi-nor meetings since December 2014 to prepare and build up to the 2015 Apec meeting of chief executives from 21 Apec member-countries.

Significant among these are the eight senior ministers’ meetings and forums of Apec member-countries on various topics from energy, trade, finance, transport, education, small businesses, women, infrastructure, etc. these were held separately in the past months since May in iloilo, Cebu and Boracay. Separate meetings were also held by the private sector under the Abac, which is composed of 63 business leaders from Apec countries.

While the Apec CEo summit will be held from november 16 to 18, there will be a prior meeting of Abac from november 13 to 16; a simulta-neous overlapping Apec SME Sum-mit on november 17 at green Sun Makati, with the theme “innovation and Big ideas: Pushing Boundaries” with President Aquino as keynote speaker; and, finally, an Abac dialogue with all the Apec CEo leaders at the Philippine international Convention Center on november 18.

All of these marathon meetings indicate that the Philippines is se-rious in pushing for its agenda and providing meat to the discussions and directions of Apec.

Unity in confusion over potpourri? EACh member-country has its distinct agenda and subgroupings, all within the Apec network. the uS is pushing for the trans-Pacif-ic Partnership (tPP), composed

of 12 member-countries initially, excluding China, while China is pushing for the Free trade Area of Asia Pacific (FtAAP).

the China-led FtAAP claims to generate gains that will be 12 times that of tPP by 2025 and three times that of the regional Comprehensive Economic Partnership (rCEP), an-other trade agreement being negoti-ated among the Asean nations with countries including China, india, Japan, Korea and Australia/new zea-land, says the China-US Focus Digest.

While some Apec member-coun-tries have differences on politics, including territorial claims, the pot-pourri of unresolved issues involving these Apec nations has not deterred them to agree to stick to economics, and not politics, by building toward mutual benefits.

Pushing what you want mattersin the end, what is important, ac-cording to ho, is that each country must know and maximize what it can achieve by pushing its own agenda in Apec. She made special mention of new zealand, which has a clear agenda of what it wanted to push being a developed country and a major dairy and wool exporter. re-cords show that new zealand has a population of 4.5 million, and a sheep population of 60 million.

She said: “We must not come from a position of fear in facing our competitors in Apec, but come from a position of knowing what we want” and pushing them ag-gressively.

luz said that, in fact, many of the problems of the Philippines and for many countries across Apec are internal. But surprisingly, despite the cultural diversity, diametrically opposed political systems, varied social differences and the fact that no agreements are binding, Apec members manage to keep in step with the demands of the times and march forward to continue achiev-ing mutual benefits.

Among the themes to be pushed in the dialogue with Apec state leaders are the FtAAP; a services cooperation framework and Apec Knowledge Center on Services; the Apec Boracay Action Plan for Micro, Small and Medium Enter-prises; the Apec Finance Minis-ters Cebu Action Plan, Sustainable Development, and the Promotion of the rule of law.

Whatever will be the outcome of the Manila meeting, everyone seems to agree that the effects on Apec member-countries will be beneficial to all, and this time will hopefully be inclusive to the mar-ginalized sectors, including those vulnerable communities affected by climate change.

n Michael M. Alunan, who is mainly into Koop organizing for marginalized sectors, is a freelance writer. E-mail him at [email protected].

NovemBAR

legally speakingatty. lorna patajo-kapunan

thE bar month has finally arrived. Every year thousands of bar hopefuls take on what is said to be the toughest examination in the country. however, not all of them

are able to finish all four weekends, and only a handful of those who do are able make it to the list of bar passers.

Many may not be aware of this but i have actually been on both ends of the spectrum. i was a bar taker in 1978 and, 10 years later, i was a bar examiner for Com-mercial law in 1988. After ex-periencing both, i can definitely say that one role is just as tough as the other.

From a barrister’s point of view, i can relate to the feeling of reading and rereading books, notes, reviewers and other ma-terials that, when piled up to-gether, can reach as tall as a full grown man. Although the ex-aminees are given months to re-view and prepare, it always feels like there is not enough time to finish everything.

on the other hand, i also know what it is like to be an examiner. to have to check thousands of booklets for a limited period of time was certainly a laborious task. to have to keep your identity as an examiner until the release of the results proved to be quite difficult, as well. But, perhaps, the most challenging aspect of it all was knowing that every point you give or do not give can change a person’s life.

the ultimate challenge of the bar, however, does not end when you mark the final period of your last sentence on the exam booklet. neither does it end after that sigh of relief when the results come out after having to endure months of mental and psychological tor-ture during the waiting period. in fact, the ultimate challenge of the bar begins right after you become ful l-f ledged members of the bar.

in present times it is not un-usual to be hearing stories about the rampant corruption left and right committed by lawyers, judg-es and justices.

the people who are supposed to be at the forefront of fighting for justice have, in many ways and many instances, become the source of injustice. instead of r idding the streets of law breakers, they add to its increas-ing numbers while using their legal prowess to get themselves out of trouble. this display of ar-rogance undoubtedly contributes to the cultivation of the attitude of self-entitlement, which has

long plagued our society. lest we forget, passing the bar

does not automatically make one a lawyer. the Supreme Court has pronounced in numerous cases that “before one is admitted to the Philippine Bar, he must pos-sess the requisite moral integrity for membership in the legal pro-fession. Possession of moral in-tegrity is of greater importance than possession of legal learning.

the practice of law is a privi-lege bestowed only on the mor-ally fit.  A bar candidate who is morally unfit cannot practice law even if he passes the bar examinations” (Aguirre v. Rana, B. M. no. 1036. June 10, 2003). Furthermore, the exam passers must also swear the lawyer’s oath before they are admitted to the bar.

hence, as the bar season is now in full swing, may this event remind lawyers on that oath and how hard they have worked to at-tain the prestigious title of “At-torney.” But more than the honor and prestige it brings, may the title also serve as a reminder of their mandate and responsibil-ity toward society as members of the legal profession. Just like what the barristers and the bar examiners are going through right now, every sentence writ-ten in a pleading, and every argu-ment raised in court, can change a person’s life.

instead of becoming perpetra-tors in oppressing the victims of circumstance, the powerless and the inutile against the growing problems of the nation, lawyers must seek to give the people the voice they need to attain jus-tice. As the defender of rights, it is the lawyer’s duty to address the issues of inequality that has been present for decades and to make sure that those who have less in life should have more in law. We must bring hope to our citizens and remember our commitment to use our legal knowledge to bring equitable development to all.

to all the barristers and bar examiners this year, i wish you good luck!

For comments, you may e-mail me at [email protected].

Articulo Uno–Punitive powers of the BIR

WhilE watching Heneral Luna—the historical movie of Jerrold tarog—the first thing that caught my attention was the way general luna disciplined the army during

the revolutionary days of the Philippines and American war. he was not interested in politics or the laws, what he was fighting for was the independence of the republic; and because of that, he wanted an unwavering support from all his troops. And he often site the “Articulo uno” of the revolution’s Constitution during that time, of which he was hated by his own troops that they used to call him “general Articulo uno,” since he threatened them with such article of the Constitution at that time, in which if a general commanded a soldier to do act on something and did not obey, then the general could have killed that soldier.

Why go to such trouble reciting to the Philippine troops the said ar-ticle? Because some of the soldiers during the time of general luna lack discipline. But, by using such a threat, he was able to make his

troops follow his orders, which often resulted to great success against the well-equipped uS Army. this shows that the “proper” motivation will result to “proper” discipline, which may provide great outcome.

Current scenarioFASt-ForWArD to the present, the Bureau of internal revenue (Bir) is currently enforcing strict compliance with the national internal revenue Code (nirC) by fining taxpayers who neglect their duties. those penalties are called “compromise penalties” for violation of the nirC. the pen-alties may range from P1,000 to P50,000, depending on the sever-ity of the violation of the taxpayer (revenue Memorandum order 7-2015). these are penalties paid on top of interest or surcharges.

there are two lines of thought with regard to the issue on hand. one of them is that this shouldn’t be implemented, since it is an ad-ditional “tax” being generated by the Bir without proper legisla-tion, and a lot of taxpayers have wondered why the Bir started issuing such punitive penalties against them, since they are al-ready willing to pay surcharges and interest for late filing. the other line thought states that

this is one way to discipline the taxpayers to respect and follow the nirC.

Power of the BIR commissionerBut just the same, the Bir com-missioner has the mandate to do such disciplinary act under the nirC (Section 6 of the nirC). the following are the summary of the commissioner’s power (Sections 4 to 8 of the nirC):

n to interpret tax laws and de-cide tax cases;

n to obtain information, and to summon, examine and take tes-timony of persons;

n to make assessments and pre-scribe additional requirements for t a x ad m i n i st rat ion a nd enforcement;

n to conduct inventory - taking surveillance and to prescribe pre-sumptive gross sales and receipts;

n to terminate taxable period;n to prescribe real-property

values;n to inquire into bank-deposit

accounts;

n to accredit and register tax agents;

n to prescribe additional pro-cedural or documentary require-ments; and

n to delegate power to sub-ordinates.

Compliance is the answerA tAxPAyEr should not worry about this, because if you comply, then you don’t need to pay such hefty fines. Always remember, even if you do not have to pay any income tax, you still need to file a tax return with the Bir. this applies to people who have “negative tax payable,” “exempt returns” or “zero tax payable re-turns.” one thing is certain from the current situation, such an act from the Bir is needed, since most of the taxpayers are still noncompliant in their filing of basic tax returns and continu-ously neglect their duties, until such a time when a tax audit is conducted or a tax clearance is requested, then they find out that

such filing were not done. this is just part of the Bir’s

power. if a taxpayer tr ies to evade tax payment altogether, the taxpayer will be punished cr iminal ly, and upon convic-tion, may be imprisoned from two to four years. A civil suit for the collection of taxes may still be pursued by the Bir against a taxpayer in jail.

Marco Fernando L. Ng is cur-rently the managing partner of M. Ng & T. Lopez partnership f irm, one of the boutique f irms in Metro Angeles. Prior to establishing the f irm, he worked for three years in New York Cit y with one of the largest audit ing f irms there, where he focused on hedge f unds and private equit y f unds. He also worked with two of the largest auditing f irms in the Philippines doing f raud invest igat ion and dispute ser vices and assurance ser v ices , and hand ling cor po -rate accounts and public listed companies.

DeBiT CReDiTMarco Fernando

A12

2ndFront PageBusinessMirror

www.businessmirror.com.phMonday, November 9, 2015

DOF lashes back at solons pushing for tax reformsBy David Cagahastian

The Department of Finance (DOF) on Friday hit back at legislators urging the administration bloc to

pass the proposed income-tax reforms, saying the various stripes of politicians involved are merely riding the wave of populist demand for the “political convenience” they represent at the upcoming national elections.

PITCH FOR TOURISM Filipino-American rapper Apl.de.ap of the Black-Eyed Peas sings his own composition “It’s More Fun in the Philippines” at the launch of the Department of Tourism’s “Visit Philippines Again” campaign for 2016 on Tuesday evening at Searcy’s, an exclusive lounge at the iconic London tower called The Gherkin. In attendance were UK-based travel media and bloggers. Stella arnaldo

Finance Secretary Cesar V. Purisi-ma said the legislators should instead abolish the bank-secrecy law to allow revenue collectors to broaden the tax base and force more taxpayers to pay the correct tax on their incomes. Customs Commissioner Alberto D. Lina was more blunt last week, when he said at a roundtable with reporters that the country’s bank- secrecy law would remain in force and effect, despite local and inter-national pressure to abolish it, be-cause the legislators themselves are the first to be adversely affected by subjecting their financial transac-tions to scrutiny by authorities of the Bureau of Internal Revenue (BIR). Purisima blamed the bank -secrecy law provisions for the narrow tax base

in the country, and challenged leg-islators supporting the income- tax reforms to spearhead the abolition of the legislation to allow the BIR to look into bank transactions that lead to the hidden-income streams of taxpayers. “We believe the underpinning policy weakness that causes a nar-row tax base and low compliance rate are the very restrictive bank- secrecy laws that weaken the BIR’s capacity to carry out its mandate. We are one of only three countries in the entire world, along with Swit-zerland and Lebanon, where the tax administration cannot access bank transactions. We are one of only two countries in the entire world, along with Lebanon, where tax evasion is

not a predicate crime to money laun-dering,” Purisima said. Under Republic Act 1405, or the bank-secrecy law, “all deposits of whatever nature with banks or bank-ing institutions in the Philippines” are “considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office, except upon writ-ten permission of the depositor, or in cases of impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or invested is the subject matter of the litigation.” The proposed income-tax re-forms have been watered down by proponents in Congress to include merely the readjustment of the tax brackets so that the income-tax rates would more accurately reflect infla-tion since 1997, or when the current income-tax brackets were imposed. Under the current income-tax system, an individual taxpayer with a taxable income of P500,000 per year, or roughly some P40,000 per month, is imposed with the highest income tax rate of 32 percent, along with other rich taxpayers, whose taxable incomes run in the millions of pesos. Purisima himself admitted that the current income-tax system seems unfair, when the DOF’s pet example of inequity—the com-parison between the taxes paid by

a public-school teacher and a doc-tor—is considered. But he said that legislators are merely playing to the public when they criticize his hard-line stand against the proposed adjusting of the brackets to shift the tax burden from the middle class to the rich. Internal Revenue Commissioner

Kim S. Jacinto-Henares said the tax- reform proponents should go beyond political convenience and push for bank-secrecy reform first before sup-porting any tax-reform plan. “We cannot take a reductionist or simplistic approach to tax reform. It is easy and, I must say, very pop-ular during election season to cut

taxes; and if we only look at this as a simple yes or no question, who wouldn’t want to? A hurried tax- reform plan, absent the necessary transformation of our restrictive bank-secrecy laws, and done with undue haste during the frenzy of elections, would be a grave disser-vice to our people,” she said.