BusinessMirror October 23, 2015

Data showed the funding will cover 38 projects and programs that will be processed until 2018. The government is proposing these for funding to the Asian Development Bank (ADB), World Bank and the International Fund for Agricultural Development (Ifad).  Data showed that the government is seeking the largest funding sup-port of $3.63 billion from the ADB, followed by the $1.89 billion from the World Bank and at least $90.54 million from the Ifad.  Neda data showed that of the amount, $500 million will be used to fund the Expanding Private Partici-pation in Infrastructure Program, Subprogram 1, with another $500

million going to the Second Disaster Risk Management Development Pol-icy Loan with Catastrophe-Deferred Drawdown Option (CAT-DDO).  Of the $500-million funding for the infrastructure program, $300 million will come from the ADB and the remaining $200 million from the Japan International Cooperation Agency (Jica). “The program’s impact will be increased investment in infrastruc-ture. The outcome will be improved private participation in infrastruc-ture that will be achieved through policy reforms,” the Neda said.  The $500 million needed for the Sec-ond CAT-DDO, on the other hand,

www.businessmirror.com.ph n Thursday 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 6 sections 34 pages | 7 days a weekn Friday, October 23, 2015 Vol. 11 No. 15

A broader look at today’s businessBusinessMirrorthree-time

rotary club of manila journalism awardee2006, 2010, 2012u.n. media award 2008

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DIVORCE CALLED OFFBy Christie D’Zurilla

& Nardine SaadLos Angeles Times

L OS ANGELES—Khloe Kardashian and Lamar Odom are still married—and it looks as if they’re going to stay that way, at least for a while. A request for dismissal of their divorce petition was filed on Wednesday at the Los Angeles County Superior Court clerk’s office

and granted, the Los Angeles Times has confirmed. Attorney Laura Wasser signed on behalf of Kardashian, while former National Basketball Association champion Odom signed on his own behalf, according to TMZ, which first reported the news. The final divorce petition had been waiting since July 21 for a judge’s approval, which was delayed by a court backlog. Over the course of their separation, the two seemed reluctant to go through with the split. Though Kardashian filed for divorce back in December 2013 after a video went public in which Odom rapped about cheating on his wife while she was away, the two dragged their feet getting the split finalized. In October 2014 and again this past April, the court threatened to toss the action due to inactivity on both sides. They both signed the papers on July 21. Then, last week, Odom was found unresponsive at a Nevada brothel after a weekend binge that according to police included cocaine, alcohol and an herbal sexual supplement. He spent a week at a Las Vegas hospital, four days of that in a coma, with Kardashian at his side before being airlifted on Monday evening to Cedars-Sinai Medical Center in Los Angeles. On Tuesday Kardashian issued a statement thanking friends, family and fans for the “outpouring of love and endless prayers that Lamar has received.” The two apparently decided a few days ago to give their marriage another chance, TMZ said. The site reported that Kardashian intended to stay by Odom through what’s expected to be a lengthy rehabilitation. In the season finale of Keeping Up With the Kardashians, which aired as a repeat the Sunday before Odom was found, she was talking to Odom on the phone and saying in an interview, “I love Lamar and care about him a lot.” In an episode that aired in 2014, however, she admitted that she knew he’d cheated on her, and said she hadn’t been able to get in touch with him for months at a time. Odom has said more than once since their separation that he loves Khloe and that she would always be his wife. “This is a very delicate and difficult time for both Lamar and Khloe, and the most sensible thing to do at such a time is not make any big moves and put everything on hold,” said a source familiar with the situation. “So that’s what she is doing.” Odom’s alleged refusal to seek help for addiction reportedly fueled

Kardashian’s initial filing. “She flip-flopped several times, but she can’t imagine having kids with someone who refuses to seek help for his disease,” a source close to the reality star told Us Weekly in December 2013. Kardashian posted a statement to her web site on Tuesday saying Odom made “incredible strides” at Sunrise Hospital and Medical Center in Las Vegas and thanking the doctors and nurses “for their kindness and diligent work.” The hospital and Odom’s relatives have not revealed his prognosis, but the family has hinted at a long road ahead, saying they realize his “continued improvement” won’t be easy. The brothel said workers saw him drink alcohol and take supplements sold as “herbal Viagra.” The Food and Drug Administration issued a warning in 2013 against one brand he took, Reload, after it was found to contain sildenafil, the active ingredient in prescription Viagra. He also told at least one of the women that he had done cocaine, but the brothel says it did not see him take any drugs. Love Ranch owner Dennis Hof has said that Odom arrived on October 10 for a four-day stay and spent $75,000 on two women who accompanied him in a VIP suite. Test results from blood samples obtained through a warrant still are pending, and authorities have not ruled out the possibility of taking action against the brothel or Odom. Odom has started physical therapy a week after falling unconscious at a brothel in Nevada. And the smile on Metta World Peace’s face widened. “He’s doing well,” World Peace said after practice on Wednesday at the Lakers’ facility in El Segundo. “He’s on therapy. That’s great.” “That’s great. That’s their personal life,” World Peace said when asked to comment about the Kardasian-Odom divorce that was called off. “I wish them the best. I don’t know anything about their personal life other that they love each other. I wish the best for his children and his health.” World Peace’s infectious personality marked a stark contrast to when he learned about the news last week before the Lakers’ preseason game against Sacramento in Las Vegas. Afterwards, World Peace sat by his locker quietly as his eyes reddened. He then said, “There’s not one word I can say right now that would make sense.” A week later, World Peace called the Odom’s hospitalization “the scariest thing in a long time.” “I’m happy he’s made it through,” World Peace said. “It was the worst thing ever. That was bad. That was not a happy moment.” At the time, many on the Lakers dreaded that Odom would soon pass away. “From the beginning, you’re just hopeful. People pray,” World Peace said. “I pray to Buddha. I’m not Buddhist. But I like Buddha. Some people pray to their different gods. But my boy made it through. He still has therapy. But it was a scary time.”

Over the course of their separation, the two seemed

reluctant to go through with

the split. Though Kardashian filed for divorce back

in December 2013 after a

video went public in which Odom

rapped about cheating on his wife while she was away, the

two dragged their feet getting

the split finalized.KHLOE KARDASHIAN and Lamar Odom are staying married. AP

By Mike BresnahanLos Angeles Times

LOS ANGELES—Kobe Bryant received treatment on Wednesday for a bruised lower leg after it crept into an eighth day of bothering him.

Then he got a haircut in the media room at the Los Angeles Lakers’ training facility, an event captured by two cameras buzzing around him for another documentary presumably produced by Bryant. He was out the door after that, jumping into a black sport utility vehicle with its motor running, while his teammates scrimmaged. Bryant did not practice on Wednesday and was “doubtful at best” to play in the Lakers’ exhibition finale on Thursday against Golden State, according to a team spokesman. The Lakers say they’re not worried, even though Bryant hasn’t been the same since banging into Sacramento center Kosta Koufos on a third-quarter drive in an exhibition on October 13. “He says he feels a lot better, but we’ve still got to get him out and just get him on the court, running and all that good stuff,” Lakers Coach Byron Scott said on Wednesday. “I just don’t want him to lose any conditioning and I know he doesn’t want to lose it. I’m not concerned. He’ll be ready on the 28th,” referring to the Lakers’ season opener. Any injury is a big one for Bryant, trying to play an uninterrupted season at age 37 after his last three got cut short because of a torn Achilles tendon, fractured knee and torn rotator cuff. As if on cue, the Lakers on Wednesday revealed this season’s media guide, its cover an ode to Bryant’s two-decade existence with them via photos aplenty. In no way are they saying it’s his last go-round, but, facts being facts, he makes $25 million and has less than a week to recover for the start of his 20th season.  WORLD PEACE STAYING?METTA WORLD PEACE is in a good spot, whether he makes the Lakers or not. The near-death experience of a lifelong friend will do that to you, a reminder that a career isn’t in the same hemisphere as a life. World Peace will find out within a few days if he makes the roster instead of Jabari Brown, a guard with scoring promise and 13 fewer years on his odometer. World Peace said he couldn’t control the selection process, assuming a Zen approach, perhaps, brought on by the sadness he felt last week when Lamar Odom was found unresponsive at a Nevada brothel. “It was the worst thing ever,” World Peace said. “I prayed to Buddha.... Some people prayed to their different gods. My boy made it through and everything’s all good. I know he has a couple months of therapy but it was a scary time.” World Peace turns 36 in a few weeks. If he makes the team, he will be a veteran voice—insightful, appreciative of a second chance in the NBA and, indeed, unpredictable. Whether he is here or not for next week’s opener, he is “absolutely” on board with the way the franchise is heading, he said.

“I could see the growth,” he added. “The Lakers are the underdog right now. It’ll be a great story in a couple years—well, this year—when the Lakers go to the playoffs.” He continually dodged questions about his better than 50-50 chances of surviving the final cut, reasonable inquiries because he didn’t play in the National Basketball Association (NBA) last season and was a non-factor two

years ago in 29 games with New York. “I like working hard. That’s what I like to do,” he said, before turning his attention toward a trio of reporters among the many surrounding him on Wednesday. “You like to wear nice dresses. I don’t know what designer that is, but it’s nice. That’s a nice shirt, Armani Exchange. Yours, not so nice.” A veteran of 15 previous NBA seasons, World Peace also

talked about Michael Jordan. It came as a tangent, sometimes the case with World Peace, who initially started talking about his lack of concern for Bryant’s bruised lower leg. “He’s not out,” World Peace said, seconding Scott’s beliefs that Bryant will be ready for the opener. “Jordan retired. Jordan’s out. Indefinitely.” And if Jordan still played at age 52, how many

points would he average? “It depends how big his belly is,” World Peace said. “If he has a flat belly, I say 20. If he has a big belly, I don’t know, six to nine.” A minute later, World Peace walked into the Lakers’ locker room. No matter what he says, he hopes Thursday’s game isn’t his last.

‘DOUBTFUL AT BEST’THE Los Angeles Lakers bench reacts to a dunk

made by Ryan Kelly during the second half of their preseason game against the Portland Trail Blazers on

Monday in Los Angeles. The Lakers won, 104-102. AP

The WorldBusinessMirror [email protected], October 23, 2015B2-2

WASHINGTON—Vice President Joe Biden said he won’t be a candidate in

the 2016 White House campaign, solidifying Hillary Rodham Clin-ton’s status as the Democratic front-runner and the party’s likely heir to President Barack Obama’s legacy.

Standing under bright sun in the White House Rose Garden, Biden on Wednesday—after months of tor-tured indecision—spoke movingly about mourning the recent death of

his son, Beau, a process he said does not match the political calendar.

While he said his family was emo-tionally prepared to undertake a grueling presidential campaign, they

arrived at that decision too late for him to mount a credible bid for a job that has long been the north star of his political ambitions.

“Unfortunately, I believe we’re out of time,” said Biden, � anked by his wife, Jill, and the president.

Biden’s decision puts to rest the uncertainty hanging over the Democratic primary. � e race now will likely settle into a two-person contest between Clinton and Ver-mont Sen. Bernie Sanders, who has energized the party’s liberal base but lacks Clinton’s campaign infrastruc-ture and support from party leaders.

Biden was seen by some Demo-crats as an ideal blend of Clinton’s establishment credentials and Sanders’s populist appeal. Interest in his potential candidacy was fueled both by an outpouring of a� ection

after his son succumbed to cancer in May and the persistent questions about Clinton’s viability, particu-larly amid revelations about her controversial e-mail use at the State Department.

However, Clinton appeared to calm nervous supporters with a command-ing performance in last week’s � rst Democratic debate. What was al-ready a narrow path to the presi-dency for Biden appeared to get even smaller.

In a written statement on Wednes-day, Clinton praised Biden’s “unyield-ing faith in America’s promise” and said she expected he would “always be on the front lines, always � ghting for all of us.” � e two spoke by phone shortly after the vice president con-cluded his remarks.

Biden notably did not endorse a

candidate in the Democratic race. Instead, he delivered a 13-minute speech that very well could have been a platform for the campaign he’ll never run. He decried the role of big money in politics and touted the importance of reducing income inequality and making college edu-cation more accessible, issues with signi� cant support among liberals.

He also repeated a veiled criti-cism of Clinton that had crept into his speeches in recent days, saying Democrats should not view Repub-licans as their enemies. Clinton said in the debate that she was proud to count the Republicans among the enemies she’s made during her po-litical career.

Biden’s decision gives Clinton a boost heading into her testimony on � ursday before a Republican-led House committee investigating the deadly attack on Americans in Benghazi, Libya, three years ago. With Biden out of the race, Clin-ton’s campaign sees the hearing as a � nal hurdle before she can fully focus on early voting contests in the states of Iowa, New Hampshire and elsewhere.

For many Republicans, Biden’s decision comes as a disappoint-ment. Party leaders had all but cheered his potential candidacy, eager to see the Democratic race thrown into chaos and perhaps dis-tract attention from a Republican primary that’s been roiled by the rise of unorthodox candidates such as Donald Trump and Ben Carson.

Trump praised Biden and took a poke at Clinton in a single tweet: “I think Joe Biden made correct deci-sion for him & his family. Personally, I would rather run against Hillary because her record is so bad.”

To be sure, Clinton still faces a chal-lenge from Sanders, the Vermont in-dependent and self-described demo-cratic socialist. Sanders is drawing big crowds and contributions, but he’s seen as unelectable by some Democrats.

Even as he signaled the end of a political career that began in 1972 at age 29, Biden made clear he had no plans to quietly fade into the back-ground.

“While I will not be a candidate, I will not be silent,” he vowed. AP

Biden won’t run, a boost for Clinton 

WASHINGTON—Hillary Rodham Clinton � nally takes center stage on � urs-

day as the star witness in the Republi-can-led investigation into the deadly 2012 attacks in Benghazi, Libya.

Clinton, the Democratic front-runner for president, testi� es from a position of political strength as her potential rival for the nomination, Vice President Joe Biden, announced on Wednesday he would not jump into the presidential race and she rides the momentum of a solid de-bate performance.

Meanwhile, the Benghazi com-mittee is on the defensive as the pan-el’s Republican chairman scrambles to de� ect comments by fellow Re-publicans that the inquiry is aimed at hurting Clinton’s presidential bid.

Even so, Clinton faces a formida-ble challenge, as she tries to explain security lapses at the US diplomatic compound in Benghazi, the slow military response to the violence and the Obama administration’s chang-ing narrative about who was respon-sible for the attacks that killed four Americans, including US Ambassa-dor Chris Stevens, and why the at-tacks were launched.

Clinton also is certain to face questions about her use of a private e-mail account and server while serving as secretary of state in a high-stakes, daylong appearance that could solidify her hold on the Democratic nomination or raise doubts about her candidacy.

� e committee also faces a make-or-break moment. � e panel’s chair-man, Rep. Trey Gowdy of South Carolina, and other Republican in-vestigators know their questioning of Clinton could revive the belea-guered panel’s credibility or see it sink further.

A new Associated Press-Gfk poll

o� ers solace to both sides. While the investigation into the attacks is not a burning issue for the public—except among Republicans—Americans are more likely to view the investigation as justi� ed rather than as a  politi-cal attack on Clinton, the poll � nds.

Many Americans don’t have an opinion about Clinton’s handling of the investigation. Four in 10 say they neither approve nor disapprove of how she has answered questions about the attack, while 20 percent approve and 37 percent disapprove.

Americans also are divided on

Clinton’s e-mails. More than half of those polled view her use of a pri-vate server as a minor problem or no problem at all, compared with one in three who think it is a major prob-lem. Nearly two-thirds of Republi-cans call it a major problem.

Gowdy pledged in a recent inter-view that the hearing will be “Beng-hazi-centric,” focused on security before and during the attacks. Some questions on Clinton’s e-mails are likely, Gowdy said, but he maintains that his approach may “shock you with fairness.”

Clinton has said the use of a pri-vate server was a mistake.

� e hearing comes amid an esca-lating partisan feud on the 12-mem-ber committee, which has spent more than $4.5 million since its cre-ation in May 2014.

Democrats have complained about “selective and out-of-context leaks” that they said mischaracterized testimony by top Clinton aides and other witnesses. � ey say the panel has devolved into partisan harass-ment intended to hurt Clinton’s bid for president. AP

DEMOCRATIC presidential candidate Hillary Rodham Clinton speaks during a meeting of the Alabama Democratic Conference in Hoover, Alabama, on October 17. It’s a moment more than a year and millions of dollars in the making for House Republicans, who � nally get their chance on Thursday to interrogate Clinton about the deadly 2012 attacks in Benghazi, Libya, and her use of a private e-mail account and server. AP/MARK ALMOND

STAKES HIGH FOR HILLARY, REPUBLICANS IN BENGHAZI HEARING 

WASHINGTON—The Obama ad-ministration is calling on Con-gress to provide Puerto Rico

with the support it needs to emerge from a debt crisis.

The administration issued a statement late on Wednesday saying its e� orts to help would not be enough to solve the cri-sis and only Congress has the power to ad-equately address Puerto Rico’s problems.

The administration proposed a four-step program that calls on Congress to approve restructuring of Puerto Rico’s debt burden and then provide oversight for a credible recovery plan. The plan also calls for reforms to Puerto Rico’s Medicaid program.

The administration says that without congressional action Puerto Rico will face a “long and di� cult recovery that could have harmful consequences for the resi-dents on the island and beyond.”

The administration proposal, if ap-proved by Congress, would give Puerto Rico a way to restructure its $72 billion in debt. Earlier on Wednesday, Puerto Ri-co’s Government  Development Bank an-nounced it was ending talks with a group of bondholders without reaching a deal on debt restructuring.

The administration’s plan was scheduled to be presented on Thursday to the Senate Energy and Natural Resources Commit-tee, which has jurisdiction over Puerto Rico and America’s other territories.

“Puerto Rico, and the 3.5 million American citizens who call the island home, are facing a serious crisis that re-quires immediate congressional action,” Treasury Secretary Jacob Lew, Health and Human Services Secretary Sylvia Mathews Burwell and Je� Zients, direc-tor of the administration’s National Eco-nomic Council, said in a joint statement.

In addition to debt restricting, the administration said Congress needs to approve reforms to the island’s Medicaid program for poor people to provide bet-ter access to health care and also pro-vide low-income residents of Puerto Rico with access to the Earned Income Tax Credit.

“Only Congress has the authority to provide Puerto Rico with the necessary tools to address its near-term challenges and promote long-term growth,” the ad-ministration o� cials said. AP

WHITE HOUSE TO CONGRESS: ACT TO HELP PUERTO RICO

WASHINGTON—The White House says President Barack Obama will veto a sweeping $612-billion

defense policy bill, citing objections over how the measure is funded.

Obama plans veto the bill on Thursday afternoon in the Oval O� ce.

Obama also disapproves of provisions in the bill that would complicate his pledge

to close the US detention facility at Guan-tánamo Bay, Cuba.

It’s the � rst time Obama has rejected the measure. Presidents have signed the bipartisan bill into law annually for more than 50 years.

The move will force Congress to revise the bill or try to settle a larger budget dis-pute that led Obama to veto it. AP

MEXICO CITY—Mexico’s  gov-ernment  on Wednesday an-nounced the capture of six

people believed responsible for the July prison break by Joaquin “El Chapo” Guzman, including the elu-sive drug lord’s brother-in-law and the suspected mastermind of the es-cape.

Attorney General Arely Gomez said the alleged mastermind of the op-eration is a member of Guzman’s legal team who had access to the Altiplano prison near Mexico City, and was able to notify the capo of the operation’s progress and receive instructions. � e person also purportedly relayed or-ders and payments to others involved in the escape.

Other arrested included Guzman’s brother-in-law, believed to have su-pervised construction of the 1.5-ki-lometer escape tunnel and organized transportation; a person who negoti-ated the purchase of the plot of land where the tunnel emerged; and an air-plane pilot.

Gomez con� rmed that after the escape, the notorious Sinaloa drug cartel boss traveled by land to the city of Queretaro where o� cials say he

caught a small plane to a mountain-ous region of Sinaloa, his home state and stronghold.

Gomez added that two Cessna aircraft left from Queretaro. Au-thorities recently detained a second pilot in the case.

She did not name any of the sus-pects or take questions, but said they planned, organized and carried out the jailbreak in cahoots with o� cials inside the maximum-security lockup.

Authorities recently detained an-other pilot in connection with the escape. About 23 prison o� cials and employees have also been arrested; some face criminal charges.

“El Chapo’s” July 11 escape through the 1.5-km tunnel dug to the shower in his cell was his second brazen � ight from prison and made him once-again Mexico’s most-wanted fugitive.

In 2001 he slipped out of another maximum-security facility, purport-edly hidden in a laundry cart.

Security agents have focused their manhunt on Sinaloa and neighboring Durango state in recent weeks. O� -cials say Guzman was injured in the leg and face while � eeing the dragnet there. AP

Mexico arrests suspected organizers of ‘El Chapo’ jailbreak 

OBAMA TO VETO $612B DEFENSE BILL OVER FUNDING, CUBA

VICE President Joe Biden (right) , with President Barack Obama, gestures as he speaks in the Rose Garden of the White House in Washington, on Wednesday to announce that he will not run for the presidential nomination. AP/JACQUELYN MARTIN

wORLd B2-2

DivorcecalleD off

BiDeN WoN’T rUN, a BooSTfor cliNToN

spORTs C4

Palace setsaside P8bfor landorelief, rehab

BusinessMirrormedia partner

isuZu to assemble d-max 3.0 locally in 2016ISuzu  Philippines Corp. (IPC) is

planning to assemble the upgraded variant of the newly launched D-

Max 3.0 in its plant in Biñan, Laguna. This would allow the Philippine unit of the Japanese automaker to increase the vehicle’s local content. This was revealed by IPC Presi-dent Hajime Koso at the launch of the upgraded variants of two of IPC’s models—the 3.0 VGS Turbo versions of the D-Max and the Mu-X. Koso said local assembly of the D-Max 3.0 will begin in the second quarter of 2016.  “The D-Max 3.0 right now is still imported from Thailand, but we’ll change to CKD [completely knocked down kit] in April,” Koso told reporters on the sidelines of the launch.  The D-Max 3.0 will increase IPC’s growing portfolio of locally assem-bled vehicles. Also being assembled locally are the D-Max 2.5, the Cross-wind and the trucks that IPC is sell-ing in the country. IPC’s production capacity is currently at 15,000 units, while actual produc-tion has been at 12,000 units annu-ally. This, IPC Marketing Head Joseph

By Cai U. Ordinario

The government is seeking $7.07 billion worth of fresh official development assistance (ODA)

from multilateral financial institutions in the next three years as part of its efforts to upgrade the country’s infrastructure, according to the National economic and Development Authority (Neda).

Isuzu philippines Corp. (IpC) Vice president for sales daisuke Inaba (from left), IpC senior Vice president for sales arthur Balmadrid, IpC executive Vice president Takashi Tomita, IpC president Hajime koso, Isuzu Motors Ltd. Managing executive Officer kasuhiko Ito, (back) Mitsubishi Corp. General Manager for Isuzu division ken Takashima and Isuzu Motors Thailand executive Officer Toru kishimoto attend the launch of the new Isuzu d-Max and Isuzu Mu-X 3.0 VGs variant in parañaque City. ROY DOMINGO

COLOMa: “upon Office of the

president approval of the fund request,

it is forwarded directly to the

department of Budget and

Management as basis for release of

funds.”

See “Isuzu,” A2

By Butch Fernandez

MALACAñANG assured on Thursday  that the gov-ernment has P8 billion in

standby fund ready for quick release to bankroll immediate recovery and rehabilitation of areas devastated by Typhoon Lando (international code name Koppu). “According to Budget Secretary Florencio B. Abad, the available amount from the Calamity Fund is about P8 billion,” Communications Secretary Herminio B. Coloma Jr. told the BusinessMirror. Coloma reported  that Presi-dent Aquino had also been in-formed  that a  pre-disaster-risk assessment, conducted by National Disaster Risk Reduction Manage-ment Council (NDRRMC) under-secretary Alexander P. Pama, ascer-tained that concerned agencies in-volved in the post-typhoon recov-ery effort had “sufficient resources to deal with the initial phase of rescue and relief operations.”  “Additional funds may be sourced from the quick-response fund as may be needed,” Coloma added. Explaining the process, the Palace official pointed out that

21 YEARS OF SCANDINAVIAN BUCKLE

BusinessMirror [email protected] Friday, October 23, 2015 A2

NewsIsuzu. . . Continued from A1

Asean stocks. . . Continued from A8

will come from the World Bank. The amount was requested by the national government at the World Bank-International Monetary Fund (IMF) Spring Meetings in April.  As of September 2015, the project is still under consideration by the interagency Development Budget Coordination Committee.  Other big-ticket projects, many of which are being proposed for funding by the ADB, are the $400-million National Support for Social Protec-tion Program; the $360-million Improving Na-tional Roads for Inclusive Growth in Mindanao project; and the Increasing Competitiveness for Inclusive Growth Program and Local Government Finance and Fiscal Decentralization Reform Pro-gram Subprogram 2, both costing $350 million.  The National Support for Social Protection Pro-gram covers the implementation of the Conditional Cash-Transfer program of the government. It is being implemented by the Department of Social Welfare and Development.  The Improving National Roads for Inclusive

Growth in Mindanao project aims to improve 400 kilometers of road in 10 national roads in Mindanao. The project will be implemented by the Department of Public Works and Highways.  The Increasing Competitiveness for Inclusive Growth Program and Local Government Finance and Fiscal Decentralization Reform Program Sub-program 2 will be implemented by the Department of Finance. “The principal objective of the program is pro-viding support for the government’s key reform priorities aimed at employment generation by increasing competitiveness in the economy using an inclusive approach through the labor market,” the Neda said. Earlier the Neda said the country’s total ODA portfolio as of December 2014 amounted to $14.37 billion, consisting of 76 loans worth $11.18 billion and 449 grants worth $3.19 billion. The World Bank was the country’s biggest source of ODA loans with a 39.8-percent share, or $4.45 billion, followed by Jica and the ADB, with shares

of 28.3 percent (worth $3.16 billion) and 20 per-cent ($2.23 billion), respectively.  For ODA grants, the United States, the United Nations System and Australia were the three leading providers, with shares of 36.1 percent ($1.148 billion); 19.1 percent ($608.5 million); and 18.4 percent ($587.02 million), respectively. In terms of distribution per sector, infrastruc-ture development accounted for the largest share at 39 percent of the loans portfolio-amounting to $4.32 billion for 34 loans; followed by the Social Reform and Community Development (SRCD) sector and the Governance and Institutions Development (GID) sector with 24-percent and 22-percent shares, respectively.  The SRCD sector was the major recipient of grants amounting to $1.19 billion (compris-ing 151 projects), or 37 percent of the total grants portfolio. The GID and the Agriculture, Agrarian Reform and Natural Resources sec-tors followed with 25-percent and 18-percent shares, respectively.

PHL seeks $7.07-billion fresh ODA from multilateral partners. . . Continued from A1

Bautista said, gives them no rea-son to increase the plant’s capacity just yet. The assembly of the D-Max 3.0 at the Laguna plant will not entail fresh capital infusion. Local content of the D-Max 3.0 is just at 20 percent, but IPC is now talking to its parts makers to identify the additional parts to be sourced lo-cally, which may include the vehicle’s chassis frame.  With the newly launched Turbo variants and the sales surge that IPC has been experiencing so far in the year,  the Japanese automaker has revised its sales outlook from

18,000 units stated earlier in the year to 22,800 units.  “Mu-x will be 11,000 units; D-Max sales will be 4,000 units; the Crosswind will be 4,000 units; and the rest will be the trucks,” Bautista added.  The D-Max pick up is seen to en-joy higher sales with the introduc-tion of the 3.0 variant. Monthly sales forecast for the model was increased from up to 300 units to about 400 units.  IPC has sold 16,326 units in the January-to-September period, up 69.5 percent. Its market share stands at 7.91 percent.

the NDRRMC, as the highest policy-making, coordinating and supervising body at the national level for disaster management, endorses the requests for calamity fund to the Office of the President (OP) for approval.  “Upon OP approval of the fund request, it is forwarded directly to the DBM [Department of Budget and Management] as basis for release of funds,” Coloma said. For instance, he noted that an initial P75 million had already been allocated by the Department of

Health for the immediate repair of damaged facilities of the Casiguran District Hospital. At the same time, President Aquino’s Chief Spokesman  Ed-win  Lacierda confirmed that each line agency involved in disaster-re-covery efforts “has what is called a QRF,” or quick response fund. He explained that the QRF was created specifically to “respond to the needs of the areas affected by typhoons.”  Meanwhile,   the National Sec-retariat for Social Action (Nassa)/

Caritas Philippines  on Thurs-day said at least four Caritas Inter-nationalis member-countries have already pledged their support to the ongoing relief operations being headed by the Catholic Church for victims of Lando. In a statement, the Catholic Church’s social-action arm said that among those that pledged their sup-port are Caritas Germany (P2 million) and Caritas Spain (P2.5 million). The Catholic Relief Services (Caritas USA) and Cordaid (Caritas Netherlands) contributed P2.12 million and P2.32

million, respectively.    “These amounts would surely go a long way in helping those in need of immediate assistance, especially as many typhoon-affected communi-ties have yet to receive humanitarian aid. To all Caritas member-countries, our heartfelt thanks again,” Nassa/Caritas Philippines Executive Secre-tary Fr. Edwin Gariguez said.    The priest said they expect more pledges from Caritas member-coun-tries in the coming days as the relief operations continue.

With Claudeth Mocon-Ciriaco

Palace sets aside ₧8B for Lando relief, rehab. . . Continued from A1

output of $2.57 trillion, recorded 4.4-percent growth in 2014, com-pared with the global average of 3.4 percent. Regional expansion is forecasted by the Asian Devel-opment Bank to rebound to 4.6 percent this year and accelerate to 5.1 percent in 2016.

Commodity slumpSTILL, most Southeast Asian econo-mies have struggled this year. Indo-nesia is suffering from a slump in commodity prices that’s slashed ag-ricultural and mining revenue, while  Malaysia, Asia’s only major crude exporter, grapples with falling oil prices and a political scandal involv-ing its prime minister. Singapore is battling slowing global trade and the Philippines faces faltering exports and weaker government spending.  All of the region’s major markets are expected to accelerate in 2016, with the exception of Malaysia.  “Our least-preferred market is

Malaysia, as we think the financial system remains at risk given capital outflows and the deteriorating cur-rent-account position,” Swan said. “We are cognizant, however, that the sell-off in the ringgit is quite ex-tended, and now appears cheap ver-sus other currencies in the region.” ‘Great’ potentialPATRICk CHANG, Singapore-based head of Asian equities at BNP Paribas SA which has about $564 billion in global assets under management, fa-vors Thailand and Vietnam. Stimulus spending by the military government in Thailand will help boost stocks, and the continued inflow of invest-ment could turn Vietnam into a mini-China in the long term, he said. While Southeast Asia’s long-term potential remains “great,” Swan said, the sus-tainability of the rebound will de-pend on the timing and extent of US interest-rate increases and the status of China’s economy. Bloomberg News

Editor: Dionisio L. Pelayo Friday, October 23, 2015 A3BusinessMirrorThe Nation

Brig. Gen. Alan Arrojado, com-mander of the military’s Joint Task Group Sulu, said an undetermined number of ASG terrorists under subleader Ninok Sapari attacked a civilian community at Barangay Sandah, Patikul, at around 2:30 p.m. on Wednesday.

Arrojado said armed civilian security employees, led by village chief Jairulla Jawari, engaged the attacking ASG bandits in a 15-min-ute firefight, forcing the terrorists to withdraw.

The attack resulted in the

wounding of Gasfer Suhudan, who sustained wounds on his forehead. Responding soldiers pursued the bandits.

In Basilan, a member of the Joint Task Group Basilan engaged ASG bandits after being flagged down also on Wednesday at Barangay Limbo Cadis, Sumisip.

Reports said the Army man, whose name was not made avail-able, was with two civilians aboard two motorcycles when ASG bandits flagged them down and immediately fired at them.

The soldier engaged the ASG bandits, al lowing his civil ian companions to escape. The sol-dier died but inflicted casualties on the bandits.

Meanwhile, a ranking member of the New People’s Army (NPA) was captured by combined police and military elements in Tagum City on Wednesday, the Criminal Investigation and Detection Group (CIDG) said.

Chief Supt. Victor Deona, CIDG director, identif ied the arrested rebel leader as Porferio Diangco Tuna Jr., alias Simon, Pinot, Ampong and Ricky. Deona said Tuna is the spokesman and deputy secretary-general of the NPA’s Southeastern Mindanao Regional Party Committee.

Tuna was arrested by combined operatives of the CIDG, the Armed Forces of the Philippines and Tagum City police at Barangay La Filipina at around 1:30 p.m. on Wednesday. Rene Acosta

Toddler shot, soldier slainin troops’ clash with ASGMEMBERS of the Abu Sayyaf

Group (ASG) attacked a barangay in Sulu, wounding a

3-year-old boy, while a soldier was killed in a clash with the bandits in Basilan on Wednesday, the military said.

THE Office of the Ombudsman has ordered the dismissal from the service of Capiz Gov.

Victor Tanco Sr. and his son, Secu-rity Officer III Vladimir Tanco, after they were found administratively liable for grave misconduct. 

Ombudsman Conchita Carpio-Morales said the Tancos were also meted out the accessory penalties of perpetual disqualification from holding public office, cancellation of eligibility and forfeiture of retire-ment benefits.

The Ombudsman also found probable cause to charge the Tan-cos for violation of Sections 3(b) and 3(e) of Republic Act (RA) 3019 (Anti-Graft and Corrupt Practices Act) for mulcting P3 million from a contractor.

Section 3(b) of RA 3019 prohib-its the receipt of any gift, money, or present, share, percentage or benefit by a public officer in connection with a contact or transaction with the government, wherein the public of-ficer has to intervene in his official capacity, while Section 3(e) prohib-its public officials from causing any undue injury to any party, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official adminis-trative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence.

Grave misconduct is character-ized by the existence of the elements of corruption, clear intent to violate the law or flagrant disregard of an established rule.

“Based on evidence, respondents conspired in demanding and receiv-ing P3 million from a certain Leode-gario Labao Jr. of Kirskat Venture [Kirskat], a contractor for the P32.9-million Mambusao District Hospital project,” she said.

Morales said Labao attested that on September 2011, Vladi-mir came to his office and told him that Gov. Tanco had sent him to collect P3 million in exchange for the release of subsequent pay-ments for the project. 

“The demand was made with the threat that Kirskat would also be blacklisted as a contractor should he fail to heed the governor’s re-quest. Two days later, or on Septem-ber 21, 2011, a check for P3 million bearing a notation ‘Mambusao Hos-

pital SOP to Gov. Tanco’ was per-sonally delivered to the governor’s residence. The check was deposited and credited to Vladimir’s account,” he said.

According to Morales, in October 2011, the local government, in turn, issued a check amounting to  P2.2 million in favor of Kirskat, repre-senting 15 percent of its mobiliza-tion fund.

The Office of the Ombudsman scrapped Vladimir’s defense that the check represented a loan, ruling that he “failed to adduce evidence to support his claim.” In finding against the respon-dents, “the claims of the complainant were duly supported by the evidence on record, specifically: the signed check voucher; check issued by the complainant which was subsequent-

ly deposited to the account of Vladi-mir; and the affidavits of witnesses” which “demonstrates respondents’ corrupt intent.” “The element of corruption is evident as respondents unlawfully and wrongfully used their position to procure some benefit for them-selves, contrary to the rights of the complainant,” she said. Jovee Marie N. dela Cruz

Govt orders Capiz governor, son dismissed from service

What they will present to Presi-dent Aquino, Liberal Party Rep. Romero Quimbo of Marikina City said, is the option to merely adjust the income-tax bracket to inflation. This, he said, is more viable consider-ing the position of the Palace against the proposal cutting the income-tax and corporate-tax rates.

“They [Speaker Feliciano R. Bel-monte Jr. and Senate President Fran-klin M. Drilon] will meet President Aquino on the proposal adjusting the income-tax bracket to inflation [and not for the bill lowering income and corporate-tax rates as reported],” Quimbo said in a text message.

Quimbo added that the income-tax bracket should be adjusted to in-crease the salary of ordinary workers.

Quimbo, however, stressed that the bill lowering individual and corporate-tax rates is still part of the comprehensive tax-reform package of the 16th Congress.

The package includes the bill rais-ing the excise tax on fuel, measure simplifying the tax requirements of professionals and entrepreneurs, measure overhauling the value-add-ed tax (VAT) system, Rationalization of the Mining Fiscal Regime bill and the bill imposing specific tax on so-das and other sweetened beverages.

“But [the lower chamber] will prioritize first the adjustment on the income-tax bracket to inflation, Rationalization of the Mining Fis-cal Regime bill and the bill impos-ing specific tax on sodas and other sweetened beverages, ” Quimbo said.

Earlier, Belmonte said he and Drilon will meet the President to

convince him at least on the pro-posal adjusting the levels of taxable income to inflation, after the Pal-ace rejected the passage of the bill slashing individual and corporate income-tax rates.

Mr. Aquino earlier said the gov-ernment “cannot put our fiscal sustainability and credit rating at risk by doing piecemeal revenue-reducing legislation.”

“He’s [Drilon] still abroad and I am also leaving [for an official busi-ness]. We will find time during this break,” Belmonte said, in a separate text message.

Under the legislative calendar, Congress will be on recess from Oc-tober 10 to November 2. The session will again resume on November 3 until the lawmakers take another break on December 18.

The third and last regular session of the 16th Congress is expected to be cut short because of the national and local elections in May next year.

Quimbo has expressed confi-dence that Belmonte and Drilon can convince President Aquino on Congress’s proposal adjusting the income-tax bracket to inflation.

He said the P500,000 level, cur-rently taxable by 32 percent, needs to be adjusted, considering that this amounts to P1.2 million today if inflation is considered.

Quimbo, citing the Department of Finance, said the proposal may cause the government to lose reve-nues totaling as much as 1.5 percent of the country’s GDP, or P30 billion.

Vice President Jejomar C. Bi-nay said he does not agree with

BusinessMirror [email protected] A4

Economy

MOST emerging markets (EM) lagged behind developed nations in

terms of growth for the first time in 14 years in the second quarter, as slowing world trade, heavy debt burdens and a pending increase in US interest rates sapped economic expansion, according to Citigroup Inc.

Developing economies, excluding China, expanded 1.8 percent in the three months ended in June, compared with 2 percent for advanced nations, Citigroup said in a research note. The slower growth was a reversal of the trend since 2001 that saw EM growth exceeding developed markets by 2.6 percentage points on average.

While geopolitical strife in regions including eastern Europe and the Middle East and slumping commodity prices have affected some specific countries, the turnaround came amid broader weakness in global trade, a buildup of debt levels and the looming risk of higher borrowing costs, Citigroup economists led by Willem Buiter wrote in the report on Wednesday. “In turn, we suspect that EM growth is likely to disappoint across quite a wide range of countries in the next couple of years,” they wrote.

China growthCHINA itself, the driver for many emerging nations, is probably in worse shape than

the official data suggest, in part because the government may have overestimated the growth in the service sector, Citigroup’s economists said. China’s “true” growth rate in the second quarter is probably between 4 percent and 5 percent, rather than the 6.9 percent recorded by the government.

China accounts for 15 percent of the global economy and has contributed to about two-fifths of world growth over the last five years, according to Citigroup. Citigroup lowered its forecast for global growth in 2016 to 2.8 percent from the 2.9-percent projection it had last month, marking the fifth consecutive reduction this year. It kept its estimate for this year at 2.6 percent.

“Even after these downgrades, risks to our global forecasts probably lie to the downside,” the economists wrote in the report.

The slump in emerging markets is contributing to a slowing in global inflation rates, which will probably prompt central banks in China, Australia, Japan and Europe to ease monetary policy further and lead to “only very gradual and delayed tightening” by the Federal Reserve (the Fed), Citigroup said. The Fed will only start to raise US interest rates in March, while the Bank of England is likely to stay on hold until late 2016, according to its forecast.

By Lorenz S. Marasigan

THE Land Transportation Fran-chising and Regulatory Board (LTFRB) on Thursday said

only two of the four groups vying for the three-year passenger-insurance contract have submitted complete accreditation documents. Of the four proponents that submitted their accreditation

documents, only the two con-sortia managed by Passenger Accident Management and In-surance Agency Inc. (Pami) and SCCI Management and Insur-ance Agency Cor p. were found to have submitted complete documents. The papers submitted by Para-mount General Insurance Corp. and High Definition Technologies

Inc. failed to make the grade. “We have completed the first stage of a transparent and com-petitive accreditation process to select the most qualified insur-ance consortia that has the finan-cial capability to provide the best insurance benefits to the riding public in the event of road acci-dent,” LTFRB Chairman Winston M. Ginez said.

Pami’s lead insurance company is UCPB General Insurance Co. Inc. On the other hand, SCCI has Allied Banker’s Insurance Corp. as lead insurance firm. The board’s accreditation com-mittee will further evaluate the accreditation documents of the two insurance consortia until October 26 to know if they can proceed to the next phase of the

The chairman of the house Committee on Ways and Means on Thursday made it clear that the

leaders of the 16th Congress are no longer pushing the proposal to cut the individual and corporate income-tax rates for the remainder of the Aquino administration.

Friday, October 23, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Advanced economies outpaced emerging markets in Q2 growth; first time in 14 yrs

Slashing income-tax rates no longer an option in 16th Cogress

the government’s proposal to raise the current VAT from 12 percent to 14 percent to compensate for the losses to be incurred from lower tax rates should the tax-reform bill is passed into law.

“The Philippines already has the highest VAT rate in the region. Increasing VAT should only be a last resort,” the Vice President said. “Raising VAT would cancel the effects of the Tax Reform Act and defeat the goal of allowing our countrymen to enjoy more of their hard-earned money,” he added.

Binay said lowering the tax

rates would allow consumers to spend more. The government, he noted, can recover some of the short-term revenue losses through increased consumption taxes, without necessarily rais-ing the VAT.

“Instead of being fixated with VAT, we should look at a menu of options, including improved tax-collection efficiency and more aggressive cam-paign to catch tax evaders; sliding scale excise tax on gas, diesel and other oil products; sale of govern-ment assets and privatization of select government-owned and -controlled

corporations; approval of revenue-generating measures; and a stronger crackdown on smugglers,” he said.

Binay also described the coun-try’s tax system as both burden-some and exasperating. “The recent report that the Philippines has the most tedious tax-payment system underscores the urgency of tax re-form in our country,” he said.

A study by international audit firm PricewaterhouseCoopers puts the Philippines in 127th place among 189 economies in the ease of pay-ing taxes. The study also revealed businessmen take 193 hours to pay

36 different kinds of fees and taxes per year in the country.

“How can we encourage foreign investors to put money here if we are going to make it difficult for them to do business in our country? They certainly would say it’s not fun in the Philippines,” Binay said.

The Vice President said that, while Malacañang has promised to simplify the process of paying taxes, it has not offered any concrete steps so far. “It is easier to give promises and make plans but what we need is tested and competent executive ability.” With Recto Mercene

By Jovee Marie N. dela Cruz

PRINTCON 2015 United Print Media Group officials Frederick Alegre (left), president, and Barbi Atienza (right), vice president, present to (from second from left) T. Anthony C. Cabangon, BusinessMirror publisher; Lucien Dy Tioco of Business World/Philippine Star; Dante Ang III, Manila Times president; Rep. Martin Romualdez; and Art Samaniego of Technews, their plaque of appreciation as speakers during the Print Media Congress PrintCon 2015 held at the Manila Hotel. ROY DOMINGO

bidding for the Passenger Person-al Accident Insurance Program (PPAIP) 2015-2018. Only duly accredited insur-ance consortia under the 2015 PPAIP is allowed to participate in the enhanced 2015-2018 PPAIP of LTFRB. Among the significant adjust-ments to the PPAIP benefits, as ap-proved by the Insurance Commis-sion, is the increase in death benefit of a passenger, driver or conductor from P150,000 to P200,000. The increase in benefits will be made without increase in pre-miums for all public-utility vehi-cles, except buses. The board also increased the claims fund of each consortia from P30 million to P40 million. This is to ensure that all claims for death benefits and other injuries will be paid by the LTFRB’s accredited in-surance providers even if its op-erations will not be able to honor such claims. “The accreditation process is to ensure that all passengers are covered by reputable insurance companies ready to meet whatever claims arise,” Ginez said. The enhanced 2015-2018 LT-FRB PPAIP will become effective on November 17.

Two groups to contest LTFRB’s 3-yr passenger-insurance deal

ASIAN COllAbORATION In this photo taken on Wednesday, Filipino Director Brillante Mendoza speaks during an interview in Tokyo. Mendoza, taking center stage at the Tokyo International Film Festival, is pursuing a collaboration with other Asian filmmakers—a cultural connection that might be as simple as rice. AP

By Claudeth Mocon-CiriacoCorrespondent

Starting november 2, the Metropolitan Manila Devel-opment authority (MMDa)

local government units (LgUs) and the Philippine national Police (PnP) will clear Edsa and Mabuhay lanes of all forms of obstruction, Cabinet Secretary Jose rene almendras said. almendras said disorderly run-down structures, ambulant vendors, road impediments, illegally parked vehicles and other road impedi-ments will be removed from Edsa and Mabuhay lanes. He warned that violators of LgU and MMDa traffic ordinances will also be arrested. “[So sorry], but this is a response to the complaints of our people, for some, a cry for help from the govern-ment because Edsa and the streets of Metro Manila have come to symbol-ize the horrors of congested roads,” almendras said in a press briefing on Wednesday afternoon. He said law en-forcers are constrained to implement traffic measures aimed at preventing a “carmageddon” of sorts along major and inner roads of the metropolis. a lmendras sa id the intera-gency group will implement these initiatives: all illegally parked motor ve-hicles on Edsa and secondary streets of Mabuhay or Christmas lanes will be towed away and violators will be apprehended and slapped with corre-sponding fines and penalties illegal vending of ambulant ven-dors with their karitons (push carts) in tow along Edsa will no longer be allowed and their wares will be con-fiscated if they refuse to cooperate, under existing LgU ordinances. Even those (illegal vendors) claiming they have secured permits to sell their wares will be appre-hended; and Some u-turn slots that have been found to be unnecessary along Edsa and other major thoroughfares will be closed and replaced with more efficient signal light system almendras said these initiatives have been drawn up following a series of meetings involv-ing the MMDa, LgUs and the PnP.

By Joey PaviaCorrespondent

CLarK FrEEPOrt—the Clark Development Corp. (CDC) said the state-run firm’s rev-

enues from 2013 to 2015 reached P4.11 billion. the CDC’s economic highlights were reported by President arthur P. tugade before a hundred busi-nessman-members of Metro an-geles Chamber of Commerce and industry during the recent general assembly meeting at the Widus Ho-tel and Casino here. the CDC included the projected revenue for the second semester of 2015. tugade, a lawyer, was appointed at the CDC by President aquino in December 2012 tugade said CDC generated rev-enues totaling P10.57 billion from 1996 to 2012. He showed the performance high-lights of CDC where the net income from 2013 to 2015 has reached P1.486 billion, while the net income from 1996

to 2012 is only P1.436 billion. the economic performance also highlighted the average ending cash level per year (from 1996 to 2012) is only P649 million, while during the 2013 to 2015 period is P1.747 billion. tugade added that cash level of CDC to date stands at P2.3 billion. it also paid dividends to the na-tional treasury of P720 million from 2013 to 2015, compared to the P634 million contributed by CDC from 1996 to 2012. the economic per-formance of the Clark Freeport was due to the sound economic atmos-phere, including the policy reforms instituted in view of the matuwid na daan of President aquino. tugade also reported that in 2012 there are only 606 locators in the free port, but as of June this year, CDC was able to record 781 actual locators operating inside the free-port zone. He also reported that from 2013 to 2015, actual employment number has risen to 80,977. By the end of 2016, actual employment figure may breach the 100,000 mark.

as of end-September this year, the agency said these contracts have a potential generation capac-ity of 13,650.29 megawatts (MW) as against a total installed capacity of 2,937.06 MW. Of the 686 rE projects award-ed by the government, 414 are hydropower; 93 solar; 51 wind; 40 for biomass, 43 for geother-mal; and eight for ocean energy. these 686 contracts were award-ed for grid use. On top of these, there were 37 rE contracts awarded for self-generation of electricity for their own use. these include one for hydro and wind; 12 for solar and 23 for biomass. t he latest DOE data a lso showed that there are 255 pend-ing rE projects, 167 of which are hydro; 62 solar; two ocean; nine biomass; 11 wind; and two are

geothermal. there are also two pending biomass contracts for self-generation of electricity. the potential generation capacity of these pending rE projects could reach 4,517.48 MW as against an installed capacity of 196.70 MW. the DOE data also showed that there are 23 biofuels projects to date, 12 of which are bioethanol and the remaining 11 are biodiesel. Under the national renewable Energy Plan, the DOE aims to in-crease the country’s rE generation to 15,304 MW by 2030. the DOE has already stream-lined the process of rE applica-tions, from two years down to just 45 days, to ensure that rE developers and investors will have an easier time in applying for rE service contracts. Moreover, the DOE has part-nered with the United States agency

[email protected] Friday, October 23, 2015 A5BusinessMirrorEconomy

for international Development (US-aiD) to develop Energy Vehicle One Shared System (Evoss), a web-based monitoring of rE applications. Originally patterned from the One-Stop Facilitation and Moni-toring Center Web Portal for Mind-anao rE projects, spearheaded by the Mindanao Development authority together with the DOE and other concerned agencies, the Evoss aims to facilitate and streamline the process of rE appli-cations side-by-side the increase in the efficiency of all concerned agencies while fostering a strong private-public sector partnerships built on good governance, trans-parency and accountability. the Evoss can track the number of days an application is pending with a certain government agency. it tells the status of an application and states how long before an approval is secured, among others. to promote the use of rE on a larger scale and to attract new investments for rE facilities, the government is banking on the feed-in-tariff (Fit) scheme. Fit is a premium rate paid for electricity fed into the electricity grid from a designated rE gen-eration source, like solar-energy system or wind-power plant.

DOE awarded 686 RE contracts as of end-Sept

By Lenie Lectura

THE Department of Energy (DOE) has awarded 686 renewable- energy (RE) contracts seven years

after the Renewable Act of 2008 was enacted into law.

FLOODED RICE FIELD Rice fields in Nueva Ecija, such as this one in Jaen, were flooded following the onslaught of Typhoon Lando (international code name Koppu) in northern Philippines. HERMIE REYES

Clark Development Corp. earned P4.11B in 2 years

MMDA to clear Edsa, Mabuhay lanes ofvendors, illegally parked vehicles

tHE Philippines should im-port more rice to replace losses in production of the

staple due to typhoon Lando, the Department of Finance’s (DOF) chief economist said on thursday. in an economic bulletin, Finance Undersecretary gil S. Beltran said the rice importation is required to counter possible inflation, particu-larly on the prices of rice. Beltran said that due to the de-struction wrought by Lando, espe-cially in the Philippine food basket of Central Luzon, the rice buffer could drop below 50 days’ supply, while the minimum rice buffer should be around 58 days’ supply. “the country may have to im-port more rice to replace these losses in domestic production and avoid triggering an infla-tionary spiral,” Beltran said. inflation during the past four months had been at record-low levels, with inflation pegged at 0.4 percent in September, further down from 0.6 percent in august. the low inflation rate is due mainly to the low prices of oil. But the destruction by Lando in the rice-producing provinces could drive prices of food upward.

Beltran gave recommendations on how the country can more eas-ily recover from losses caused by natural disasters, such as provid-ing farmers with crop-insurance protection, like the new micro-agricultural framework that will provide microinsurance protection to the crops of farmers. “government agencies also need to undertake emergency re-pair of destroyed infrastructure in the devastated areas. aside from ensuring connectivity, infrastruc-ture spending will generate non-farm economic activity that will mitigate the adverse impact of the disaster,” Beltran’s economic bulletin said. the national Food author-ity (nFa) has earlier purchased 750,000 metric tons (Mt) of imported rice via a government-to-government scheme to beef up its buffer stock this year and in 2016. the volume included the 500,000 Mt required by the nFa next year. the national Economic and De-velopment authority earlier said the government is looking at in-creasing its 2016 rice imports by 1 million metric tons. David Cagahastian

DOF bats for more rice imports

Friday, October 23, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA6

Managing business and money Filipino style

editorial

HSBC economist James Pomeroy, writing in the latest edition of the bank’s “Macro Health Check,” offered some clear insights into what the private sector of the Philippines has been

doing right for many years.

It has always been our contention that the Philippines and our economy has been saved from severe damage by ordinary Filipino businesses, both large and small.

Prior to the 1997 Asian Financial Crisis, when the Philippines was a “basket case,” it would have been more profitable for Filipino companies to have fol-lowed their counterparts in the “tiger economies,” borrowing dollars at very low interest rates against a stable peso exchange rate.

Prior to when the current crisis hit in 2007 or 2008—depending on which event you use to mark the economic collapse—it would have been more prof-itable for Filipino banks to have joined the rush into buying all those high interest-paying subprime mortgage loans.

But in both cases Filipino businesspeople decided that they just were not ready to join the “big boys” and high rollers of the world and just kept on do-ing their business in a conservative manner just like before.

Pomeroy relates that he is concerned with the economies of Indonesia and Malaysia because of both nations having increased their trade with China to the point of near-dependency. Here in the Philippines, although China is our largest trading partner, the percentage of total trade among China, Japan and the US are almost the same. Japan is our largest export market.

From Bloomberg.com: “Regarding the Philippines, HSBC says that this is one of the only emerging markets that is fairly unexposed to slower Chinese growth and lower commodity prices—two characteristics that differentiate it from a whole lot of other EM nations.”

Although the Philippines is not a large producer of raw materials that China would have been buying, Filipino businesses export goods to China that are not very “sexy” or subject to wild fluctuations in demand—machines engines and pumps.

However, it is not just local businesses that are not in touch with modern times. Filipinos are constantly reminded that we do not use banks the way everyone else on planet earth does. Findings from the World Bank show that only 5 percent of Filipinos have a credit card and only 10 percent have ever taken out a bank loan. Don’t Filipinos realize that this is the 21st century?

But then again, household debt in the Philippines is only 6 percent of GDP, compared to 20 percent in Indonesia and an average of 25 percent in all emerg-ing markets. Perhaps that is a reason that all the wailing about asset price bubbles in the Philippines has not come true.

Remember the old saying “If it’s not broken, don’t try to fix it”? There might be some things in our country that are “broken” but maybe managing busi-nesses and personal finances is not part of our problem.

OnE of the biggest complaints people have about the satellite registration centers of the Commission on Elections (Comelec) is that some have been announcing

“cutoffs” in the middle of the day. To the minds of most people, cutoffs—which typically occur two or three hours after the centers open—are a direct contravention of the Comelec’s announcement of these centers as operating on a 12-hour day.

We told you so

I know that sounds like a reason-able conclusion but, unwittingly or otherwise, it is a conclusion based on the assumption that voter registra-tion is a simple matter of the Com-elec receiving application forms and little else. It isn’t.

The filing of applications is a three-step process. First, the preparatory step which includes getting and fill-ing out application forms; second, the application proper, where the applicant submits his accomplished application form and is interviewed by the election officer—for the pur-pose of determining his actual resi-dency; and third, biometrics capture. For purposes of determining when to announce the cutoff, registration centers take into account the time it takes to complete the second and third steps (remember this point because it will be important later).

Consider this.Assuming that the election offi-

cer rushes through the interview, he processes one person every minute; depending on the applicant’s ability

to follow instructions, biometrics capture can take as little as two, bringing the total amount of time spent on steps two and three to the very ideal total of three minutes per applicant.

Three minutes per applicant, with 300 applicants waiting to be served, translates to 900 minutes of processing time. That’s 15 hours—well beyond the 12-hour working day. Where do those 300 applicants come from? nowadays, those 300 applicants are the ones who arrive at the registration centers earliest. This automatically excludes—via the cutoff announcement—those who come to the registration centers at the 11th hour, loudly berating the Comelec staff for not accepting their applications.

now, where steps two and three—receiving the application form plus election officer interview, and bio-metrics capture—are critical for determining when cutoffs are called, step one—the queuing for the forms and filling up the forms prior to

submission—is key to the public’s frustration. Here’s why: When you go to any registration center now and until the end of the registration period on the 31st of October, about half of the people you see queuing are probably waiting to get applica-tion forms. At first glance, you would think that this is an easy operation, involving only, well, the giving out of forms. Wrong again.

Many people don’t remember what a bank deposit slip looks like, let alone those island counters in the middle of the bank where there are all sorts of slips of different colors. In a bank, the client is expected to go to those islands, get the appropri-ate form they need, and then fill it out. This is the same basic setup in a registration center except that the Comelec’s clients don’t always know what kind of form they need. So, in the giving out of forms, Comelec staff have to be on hand to determine the proper form to give the applicant. Again, you might say that this sounds like a straightforward affair, but then again you would be wrong.

Taking just first-time voters (FTVs), for example, consider appli-cants who come asking for registra-tion forms for FTVs. This request cannot be granted, however, with-out first verifying that the applicant truly is an FTV. This means that ev-ery request for a form has to be vali-dated by checking what is called the national List of Registered Voters, or nLRV. If the applicant shows up on this list, he obviously cannot be given an FTV form. Again, this pro-cess necessarily takes time, especially in cases of particularly quarrelsome applicants who insist that they’ve

never registered but whose names are clearly on the record. And as I said, that’s just one example.

All told, with people arriving at a faster clip than they can be pro-cessed—both for the release of ap-plication forms and for the applica-tion proper—the queues lengthen with the exuberance of rush-hour Edsa traffic buildup. Is it any wonder then that the levels of frustration are so similar?

Has the Comelec tried to mitigate any of these problems? Of course.

The period of registration has gone on for about 17 months—one of the longest ever, coupled with an aggres-sive satellite registration plan that effectively had registration running seven days a week, including holidays. The call for registration and validation has been taken up by nearly everyone with a soapbox, and they have not let up since the beginning, making this registration cycle the most consistent-ly carried by the media in our electoral history. The Comelec has rolled out iRehistro, an online application for filling out application forms. Elec-tion officers have pushed staff to cut down processing time to under two minutes, additional voter registration machines continue to be fielded even as you are reading this. Still, there’s only so much mitigation that can be effective when people still refuse to come early and still insist on denying the reality that any system, no mat-ter how efficient, will have its limits.

Too bad the Comelec can’t say we told you so.

James Arthur B. Jimenez is director of the Commission on Elections’s educa-tion and information department.

spoxJames Jimenez

Friday, October 23, 2015

[email protected]

annotationstito Genova Valiente

Jiro is an old man. He is called Sensei, meaning “master,” more than “teacher” by his apprentices and staff. Jiro makes sushi but it is not just any ordinary sushi. He makes what a food

writer describes as sushi with a simple and pure taste. The sushi is good despite and because it is simple. Why should something simple be special, the food expert asks.

‘Jiro Dreams of Sushi’The homeless street families in Metro Manila

Jiro is the subject of a documenta-ry that attempts to probe his secret. Jiro has no secret ingredient unless you count persistence as some kind of condiment or approach to cooking.

The documentary covers all aspect of sushi-making, that Japa-nese food that was so exotic before but now one of the global food we are familiar with. Anyone can do sushi but very few people can do it the way Jiro does it.

Aside from the word “simple,” Jiro tells us being constant is really the way to make sushi. The sushi that is made today should be the same sushi one will have tomorrow. if there is a change in the sushi one eats today and the sushi he will have tomorrow, there is this exception that the sushi tomorrow should be better than the sushi yesterday.

The constancy in the life of Jiro is seen in his work as a chef and in his

behavior as an individual. in com-muting to his restaurant, he waits for the train on the same spot in the platform. Predictability is not rigid-ity but a platform for being able to see what good will come out each day from one’s action.

There is a fancy café found in malls. i have always found eating in that cozy place. The place is clean and the staff polite. This character, however, seems detached from the products they offer: the food qual-ity is impolite because it seems to change each day. Perhaps, it is only the case of Caesar’s salad i regularly order from that place. There is never one way of preparing this simple salad in that place. one day, it has bacon bits; another day it has bacon strips. on some days, the chicken strips are not there at all, or maybe they have been scratched to bits. on other days, a slab of garlic bread is

on top of a mountain of lettuce; on some other days, the greens are so lean they might as well be slender moringa or malunggay.

This afternoon, i was confronted with lettuce soggy and wet with dressing. overdressed salad is as bad as an overdressed person. Like acting, good salad should show restraint. Ask for a slap of dress-ing when things are wanting but never drown lettuce in anything. A drowned vegie is a dead vegie. Death among the greens is never forgivable.

The lesson from Jiro is not how to make good sushi but how to be a good person. Even with the dialogue done in Japanese with English sub-titles, one overhears the word “per-fectionist” uttered to describe the craft of Jiro and the culture from which those skills sprung.

The Japanese have turned many of their local food into global hits. This is an achievement that we have yet to gain. There is no question we have culinary traditions that can be introduced to the world. The prob-lem is how we can be constant about the taste and the presentation of these cuisines.

Can we say the Filipino food is not vetted through its presenta-tion? Perhaps, the notion of food presentation is “ethnocentric.” Then there must be a different way of selling our cuisine to the world. We can focus on the resources for the food preparation. in Metro Manila, people are always talking

of laing and pili and yet no one re-ally bothers with getting to know the taro leaves, what Bikolanos call natong. The exonym laing vanishes in the Bicol region where the leaves are deconstructed in every prov-ince. in Masbate and some parts of Sorsogon, the stem of the gabi is included in the cooking. in Cama-rines Sur, the leaves are dried and are examined for their ideal tex-ture. You see, we, too, have our own quirks and fastidiousness that Jiro ono, in the documentary, exhibits.

For that matter, in the prepara-tion of sushi, the master has to deal with the source in the famed Tsukiji market. in one scene, a tuna buyer carries a flashlight he trains onto a sample flesh of tuna. When Jiro places the tuna on the rice to create sushi, the slice of fish looks crystal and red-fresh. This is very much like the old woman in a town in Bicol who would not cook laing because there are no good leaves available.

The problem of identity is pres-ent in cuisine that one must prove to be unique to a particular. i am certain the Koreans, a neighboring culture to Japan, must have their own sushi. Jiro, all of 85 years of age in 2011 when the documentary was made, will never have any problem in claiming that he is unique because his sushi is the best.

The documentary Jiro Dreams of Sushi is directed by David Gelb.

E-mail: [email protected]

EaGLE WatCHJoselito t. sescon

WE have seen them in the streets of Metro Manila. They catch our attention in a few seconds but we quickly shake them out of our thoughts as we go to our

destinations. They are the homeless street dwellers in the city. We might wonder why they are without shelters and why they are in the crowded city. The usual image is them sleeping in their karitons, below the bridges and flyover, and in covered sidewalks and pavements. There are also other homeless that are seen less in the streets. They live in cemeteries, abandoned structures and shanties in the clogged waterways of the city.

How many exactly are the homeless in Metro Manila? it is difficult to have an accurate number because their pop-ulation is in a constant flux. The best estimate is that there maybe 4,000 to 5,000 homeless street families in Met-ro Manila. Studies show that homeless are categorized into transient, episodic and chronic. The transitionally home-less have the least time spent in being homeless. They still have desires to ex-tricate themselves from this condition. The episodic type have been homeless longer and a push could tip them in one direction or the other. The chronically homeless are the ones who have been in the streets a long time. They may have no realistic hopes for the future and could have accepted homelessness as a “chosen” lifestyle.

Why would persons and families end up without shelters? recently, robust re-search evidence has emerged indicating that homelessness is the outcome of dy-namic interactions between individual-istic reasons and structural changes. Ad-verse events in the lives of individuals, when coinciding with certain structural factors, could result in individuals with their families becoming homeless. Struc-tural reasons are due to income poverty; inadequate social service coverage; and inaccessible housing markets. individu-alistic reasons are personal character-istics of homeless persons and suggest that homelessness is a consequence of personal problems. often cited are loss of income and livelihood, family feud, house demolition and disaster. For in-stance, poverty and total loss of liveli-hood coupled with family feud pushes families toward homelessness.

Apart from structural and individu-alistic factors that push them to home-lessness, they opt to stay in the city be-cause the place provides them a means to survive on a daily basis. in Metro Manila, majority of homeless interviewed cited economic reasons in staying in the city. These are odd jobs like vending, car park attendants, pedicab drivers, recycling scavenged materials, helpers in public

markets, and many sort of ephemeral jobs combined sometimes with begging for food and loose change. Daily cash in-come ranges from a hundred to P300 a day but it can go as high as P500 to P600.

Almost half have been chronically homeless for more than eight to 10 years. There might actually be some tangible benefits to being homeless from the point of view of not having stable and permanent income. Being homeless frees them of certain household obliga-tions like the maintenance cost of homes (utilities and rental). They may also feel unobligated in terms of the normal re-sponsibilities to their families as they al-ready lead atypical and abnormal lives. it gives them a certain sense of flexibility in looking for opportunities around the city. once hope and change for a better life are abandoned, once daily survival and working in ephemeral jobs becomes a habit, then homelessness becomes the only economic option, and they are here to stay in the city.

in response to these challenges, the Department of Social Welfare and De-velopment has designed the Modified Conditional Cash Transfer for Homeless Street Families who were not covered by the regular conditional cash-transfer program (CCT). it is essentially CCT with emphasis on assisting homeless families in the transition toward living in decent dwellings. The program was piloted in Metro Manila in 2013 and is now start-ing to expand in other urban centers na-tionwide. But, as discussed above, home-lessness is a complex issue and it is not a problem that will easily disappear. The nature of homeless persons and fami-lies changes overtime, depending on the structural weaknesses of the economy and the characteristics of the population. The important thing is that we are now addressing the homeless challenge and it is hoped that their numbers will start to dwindle soon.

Joselito T. Sescon is a regular lecturer at the Department of Economics, Ateneo de Manila University.

T HErE are three basic traditions in Canadian politics: Liberal, Conservative and rock star.

Want proof? Canada, our biggest trading partner and close ally, has been led for nearly a decade by a Conservative prime minister, very able guy, running things up north since way back in 2006. You’ve seen him shake hands with the president and, um, his name is….

Oh, a new Trudeau woos and wins Canada

oh yeah, his name is Stephen Harper and he’s just been swept out of the prime minister’s office by a rock star: Justin Trudeau, a charismatic former snowboard instructor and nightclub bouncer, amateur boxer, relative newcomer to politics whose father was Pierre Trudeau, Canada’s first rock star prime minister.

in parliamentary elections on Monday, Justin Trudeau’s Liberal Party unexpectedly pulled away from the competition. There was no big anti-incumbency push or political revolution to explain the victory. Canadians appeared happy enough with the status quo that the race for a while looked like a toss-up. rather, Trudeau said he offered a “positive, optimistic, hopeful vision” that was “not a naive dream.”

Please note: We didn’t call him dreamy. The Conservatives sort

of did at one point, in an attack ad that said Trudeau, 43, wasn’t ready for leadership; one would-be voter chimed in with, “Nice hair, though.”

it’s hard to avoid focusing on the next Canadian prime minis-ter’s looks and personality. Not because that’s a crucial benchmark for success but because of some un-canny similarities to his father, a brilliant, magnetic politician who took office in 1968 as both prime minister and cultural icon.

They called the phenomenon “Trudeaumania.” Teen girls chased after Pierre Trudeau, and older women, the Chicago Tribune re-ported, were smitten. “He’s not the prime minister, he’s Frank Sinatra,” one of the smitten said.

Pierre Trudeau, who took office as a 48-year-old bachelor, was more dashing than conventionally hand-some. He crushed hearts at age 52

by marrying 22-year-old Margaret Sinclair. When Trudeau lost a re-election bid in 1979, Margaret was partying with the rolling Stones. The marriage, and Trudeau’s second run as prime minister, ended in 1984. But the couple had three children, the eldest of whom is Justin.

Politically, Pierre Trudeau was a liberal powerhouse whose achieve-ments included passing a bill of rights, establishing bilingualism and fending off separatism in Quebec. Justin Trudeau said his father’s legacy was enough to make

him leery of politics—for a while, anyway. He won a seat in parlia-ment in 2008 and took over leader-ship of the Liberals in 2013.

Justin Trudeau, expected to take office in several weeks, starts off with a few policy differences from the US but also promising to repair relations with the US that he said were hurt by the argument over the Keystone XL pipeline. Trudeau, like Harper, supports construction of the pipeline, in opposition to President Barack obama. Trudeau also wants to end combat missions as part of the US-led coalition at-tacking islamic State.

Politics is always more about the future than the past, but here’s one more historical footnote: in 1972, when Justin was 4 months old, President richard Nixon attended a state dinner at the prime minister’s residence and made a toast: “Tonight we’ll dispense with the formalities. i’d like to toast the future prime minister of Canada: to Justin Pierre Trudeau,” Nixon said.

Pierre Trudeau responded, saying that if his son ever becomes leader, “i hope he has the grace and skill of the president.”

Legacies. You never know. TNS

IF California is a national trendsetter, there’s reason to be optimistic about the future of voting in the US.Gov. Edmund Gerald Brown Jr. re-

cently signed a bill making California the second state, after Oregon, to adopt automatic voter registration. The idea is simple enough: Since people submit official proof of identity and residency when registering for a driver’s license, why force them to resubmit it to reg-ister to vote? California will automati-cally enroll eligible drivers as voters, after giving them the chance to opt out.

In most states, registering to vote is simple enough: Print out a form (or get one from a government office) and mail it in. Twenty-six states also offer online registration. Nevertheless, millions of Americans are eligible to vote but not registered. And the fact that so many people—most of them able-bodied—just don’t bother speaks to laziness, indifference or cynicism. Or all three.

Voting is more than an individual right, however. It’s a public good, the foundation of democracy. So the gov-ernment has a compelling interest in making registration as easy as possible.

Some states are moving in the op-posite direction. In Arizona and Kansas, voters must show proof of citizenship—a birth certificate or passport, for exam-ple—to register. Since 2013, when this requirement took effect in Kansas, more than 36,000 residents have attempted to

register without submitting such proof. The state is now purging them from the rolls, forcing them to reregister.

But requiring citizens to prove their status creates a far bigger problem than the one it solves. Very few of the roughly 24 million noncitizens who live in the US register to vote, and even fewer cast ballots. A more efficient way to ensure that only citizens are on the voter rolls is for government agencies to share in-formation. Many people submit proof of citizenship when getting a driver’s license. And states like California that issue driver’s licenses to noncitizens also know which drivers should not be registered to vote.

Databases can be imperfect and errors are bound to occur. To avoid dis-enfranchising any voters, those who are flagged as possible noncitizens should have the opportunity to respond—and vote, via a sworn affidavit ballot. By the same token, safeguards are essential to protect against the possibility that mis-takes by government officials will lead to noncitizens voting.

In general, though, more data shar-ing would help election officials clean up their voter rolls, which are now rid-dled with errors.

The right to be lazy may not be in the Constitution, but it is a profoundly American one. And all American citizens, lazy or not, should be ensured the right to vote. Bloomberg View

Lazy citizens have rights, too

Trudeau

THE White House has played down  reports  that it might reach a deal to restrict Paki-

stan’s nuclear weapons program when Prime Minister Nawaz Sharif visits on Thursday. if President Barack obama still wants to reduce tensions in South Asia, though, he might propose something simpler: a joint economic zone on the india-Pakistan border. 

Despite their nearly seven de-cades of rivalry, india and Paki-stan have a bottom-line interest in increasing commerce between them. While official bilateral trade is minuscule—barely $3 billion in 2014—it could easily amount to 10 times that much. Both governments lose millions in potential customs revenue to smuggling. Eliminating trade barriers would make goods cheaper for consumers and factories more competitive. 

Deeper commercial ties could in turn help ease geopolitical ten-sions, as they have between China and neighbors such as Taiwan and Japan. Trade volumes in the range of $10 billion to $15 billion annually

could create a lobby  in indian and Pakistani business circles influential enough to steady relations. 

Nor are the two sides all that far apart. india has granted Pakistan “most favored nation” trading sta-tus since 1996, when both countries joined the World Trade organization. islamabad has since drastically re-duced the number of indian imports banned or subject to high duties. 

Eliminating this “negative list” entirely, however, has turned out to be inordinately difficult. Pakistan wants india to reciprocate by lower-ing so-called nontariff barriers that allegedly disadvantage Pakistani producers—everything from strict licensing and inspection rules to subsidies for indian farmers. 

Moreover, to enjoy the full ben-efits of open trade, both nations would need to work at improving logistics; untangling red tape; and building new roads, ports and rail connections. They’d have to al-low businesspeople to travel and invest more freely, and to remit their profits. 

Unfortunately, neither side sees

much reason to compromise. india now hopes to bypass Pakistan en-tirely and reach Central Asia via the iranian port of Chabahar. islamabad has placed its faith in a $46-billion economic corridor linking its own port at Gwadar to China’s massive market. Political talks have been stalled for months, with india insist-ing they focus only on eliminating terrorism and Pakistan demanding that the status of Kashmir be on the table, as well. 

rather than strive futilely for a major breakthrough, the two sides would be wise to look for a more limited opening. one idea is to create a jointly run special economic zone along the border that divides the indian and Pakistani Punjabs. 

This scheme would skirt several of the most contentious trade issues. To ease security concerns, goods, work-ers and executives going into and out of the zone could be monitored. And for companies that set up shop inside, rules governing financing and re-mittances could be eased, while visa restrictions and other bureaucratic barriers were lifted. Ensuring that

factories have a steady supply of power—the biggest  complaint  of manufacturers on both sides of the border—would be much easier in one designated location. 

The zone’s special status would also enable the US and other coun-tries to help promote rapprochement in a non-obtrusive way. The US and the European Union, for instance, might offer tariff-free access to any goods exported from the zone. For-eign companies that currently manu-facture  in both countries—Honda and Toyota, for example—could be encouraged to consolidate their operations. indeed, Western gov-ernments might provide incentives for companies to set up joint ven-tures with indian and Pakistani entrepreneurs in the zone, to make everything from sporting goods to surgical instruments. 

ideally, initial success would fuel enthusiasm among the local busi-ness community for widening the experiment—and make more dif-ficult conversations between the nuclear-armed neighbors just a little bit easier.

India and Pakistan can do business

in Singapore, poised for its first gain in five days. The MSCI All Country World Index fell 0.1 percent. The regional measure plunged 20 percent in the third quarter, amid concerns  the US was edg-ing closer to raising interest rates and a weakening Chinese economy would further curb growth. The Southeast Asia index’s price-to-book ratio fell to a multiple of 1.4 last month, the cheapest relative to the world gauge based on data going back to 2009.  The Stock Exchange of Thailand Index is trading at 15 times report-ed earnings, the cheapest in about 20 months, even after rallying 9 percent from an August low. For-eign funds have bought a net $202 million of Thai shares in October after a four-month, $2.9-billion selloff. Vietnam’s VN Index, Asia’s best-performing equity gauge this year with an 8.2-percent gain, is valued at 11.6 times profits, the lowest in Southeast Asia. “Generally speaking, the num-bers are more attractive than they were at the peak of course because the markets have come down,” said Mark Mobius, chairman of the emerging-markets group at Frank-lin Templeton Investments, who said he’ll add to his “big holding” of Vietnam Dairy Products JSC at the “right price”. Vietnam Dairy, the country’s

biggest stock by market capitaliza-tion, climbed to a record high on Thursday, after the company said last week it would allow foreign in-vestors to increase their stakes if the government approves the plan.

Fastest-growingBl ACkROCk favors regional energy shares, mainly refiners, and is buying financial companies selectively, Swan said. Thailand is Swan’s preferred regional market, especially tourism and energy com-panies, while signs of accelerating infrastructure spending, easing inflation and “reasonably healthy balance sheets” also make Indonesia attractive, he said. Aberdeen has been adding to holdings of companies they “know well and where prices have been hit for little underlying funda-mental reason,” said Hugh Young, Singapore-based managing direc-tor of the asset manager’s Asia business. He declined to name specific stocks. The Asean,  which includes In-donesia and the Philippines, will be home to five of Asia Pacific’s 10 fastest-growing economies in 2016 and 2017, according to economist forecasts compiled by Bloomberg.  The 10-nation grouping, which has a population of more than 622 million and a combined economic

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www.businessmirror.com.phFriday, October 23, 2015

Continued from A8

GOVT NEEDS TO DOMORE TO IMPROVENAIA’S IMAGE–ABAYA

Asean stocks climbingat fastest pace in 2 years

By Lorenz S. Marasigan

The country’s premier gateway may have shed its image as among the world’s worst air-

ports—at least according to online travel site Guide to Sleeping in Air-ports—but the government still has a lot more room for improvement, a Cabinet official admitted. Over the weekend, the travel site released its latest survey of the best and worst airports in the world, and surprisingly, the Ninoy Aquino In-ternational Airport (Naia) has been erased from the losers’ list. “While we are pleased to hear that international travelers no longer rate Naia among the world’s worst, there is obviously still a lot for us to do. having fully opened Terminal 3 and substantially refurbishing Terminal 1 after decades of neglect, our next focus is decongesting the runway,” Transportation Secretary Joseph emilio A. Abaya said on Thursday. he explained that although it took the government two years to unravel the legal complications that prevented Naia 3 from fully operat-ing, its resolution paved the way for the transfer of 3.5 million an-nual passengers from the run-down, overcapacity Terminal 1 to the more modern Terminal 3 building in 2014. “With Terminal 1 restored to its design capacity of 4.5 million yearly passengers, major rehabilitation was undertaken beginning in 2014, most

notably through structural retrofit-ting, which ensured the continued safety and integrity of the facility, and the improvement of the mechani-cal, electrical and fire-protection systems,” he said. Meanwhile, three regional avia-tion hubs made it to list of top 30 best airports in Asia: Mactan-Cebu International Airport landed at 18th place; Iloilo Airport was ranked 21st; and Clark International Airport snagged the 24th place. Mactan-Cebu is now being recog-nized for its vastly improved services and facilities, after evident upgrades were implemented by GMR-Mega-wide Cebu Airport Corp. “This is just the beginning of our airport-modernization ef-forts. The coming years will cer-tainly be exciting as world-class terminals will rise in Mactan-Cebu and Clark; a new international airport will be opened in Panglao and a vastly improved airport will be launched in Puerto Princesa; and the Davao, Iloilo, Bacolod and Laguindingan airports will be expanded and their opera-tions upgraded,” Abaya said. The development of the Mactan-Cebu airport is being implemented through the Public-Private Partner-ship (PPP) Program of the Aquino administration. The modernization of the regional airports are also in-cluded in the pipeline of projects under the PPP scheme.

StockS in Southeast Asia are climbing at the fastest pace in two years relative to

global peers, as investors from Aberdeen Asset Management Plc. to BlackRock Asset Management forage for bargains after a global equity rout slashed valuations. The MSCI Southeast Asia Index has rebounded 11 percent this month, 5.1 percentage points more than the MSCI All Country World Index, the widest gap since No-vember 2013. Indonesia’s Jakarta Composite Index has jumped 12 percent since slumping to a two-year low last month, while the benchmark Philippine Stock Ex-change Index has rallied 2.9 per-cent, after seven straight months of losses through September. The revival in investor appetite underscores confidence that the re-gion’s $2.57-trillion economies are well placed to weather a slowdown in China’s export demand after August’s surprise yuan devalua-tion sent stock markets tumbling.

Foreign investors are returning after pulling a record $5.1 billion from Thai, Philippine and Indo-nesian shares in the three months through September, lured by cheaper valuations and economic growth that’s forecast to outpace the global average in the next two years. “We are beginning to see se-lective opportunities in Asean markets after the recent correc-tion,” Andrew Swan, the Hong kong-based head of Asian equities at BlackRock, which oversees about $4.5 trillion, wrote in an e-mail last week. “Valuations are more attrac-tive now, although not yet at what we would regard as crisis levels.” The MSCI Southeast Asia Index rose 0.4 percent to 695.18 at 9:47 a.m. See “Asean stocks,” A2