PARIS—European Union (EU) countries are preparing tougher new sanctions against Russia

that they could impose by Monday. EU governments are divided about how fast, and how far to go, to punish Moscow for its military incursion into Ukraine’s Crimean peninsula. British and French diplomats told the Associated Press on Tuesday that officials are preparing a second round of sanctions on top of an initial round imposed last week. Those deemed re-sponsible for undermining Ukrainian territorial integrity and promoting

By Bianca Cuaresma

ThE Philippines ranked last in terms of the quality of its infrastructure as compared

against that of neighboring countries, a study made by an international bank showed. In a briefing in Makati City, hong-kong and Shanghai Banking Corp. (hSBC) said in its analysis on the quality of infrastructure in the re-gion, the Philippines showed up as having the “worst” among 13 other countries in Asia.  “We made some analysis on infra-structure, and we have come up with a measure on the quality of infrastruc-ture in Asian countries…it is summa-

rized in one index of infrastructure, and, unfortunately, the Philippines ranks last in this particular index be-hind Vietnam and India,” said Frederic Neumann, co-head of the hSBC Asian Economic Research. The index involved in the analysis were hong Kong, Singapore, China, South Korea, Taiwan, Japan, Viet-nam, Thailand, Malaysia, Indonesia, Sri Lanka and India. Neumann also said it measured the quality of roads, telecommunications, electricity, water supply and “everything understood about infrastructure.”  Although other details of hSBC’s Asia infrastructure measure have yet to be made available by the bank,

See “Infra,” A8 See “EU,” A2

See “BSP,” A2

PESO ExchangE ratES n US 44.4840 n jaPan 0.4323 n UK 73.9324 n hK 5.7315 n chIna 7.2447 n SIngaPOrE 35.1070 n aUStralIa 40.2170 n EU 61.6771 n SaUDI arabIa 11.8617

tOUrISm InDUStry SEEn tO gaIn mUch frOm Phl PartIcIPatIOn In bErlIn faIr

Loopholes in ‘sin’ tax law cutincome, abetted smuggling

bSP ISSUES WarnIng On‘bItcOInS’ThE Bangko Sentral ng Pilipi-

nas (BSP) warned the public of “Bitcoins,” or virtual curren-

cies currently being exchanged in the country, saying monetary authorities were still studying the “appropriate regulatory measure” on the new tech-nological innovation. The central bank said Bitcoins were a form of unregulated digital money that allows purchase of both virtual goods, such as those in online gaming environments and social network, as well as real goods and services, such as retailers, restaurants and other es-tablishments. This type of currency is not issued by a central bank. Also, un-like electronic money that is backed by cash for the entirety of its value, Bitcoins are not backed by any com-modity but by the mere ability of its holder to exchange them for goods. “It has recently come to the at-tention of the BSP that virtual currencies like Bitcoins are now being

By Recto Mercene& David Cagahastian

ThE “sin” tax law can be consid-ered a success because it has

added P65 billion to the country’s coffer, but law-makers said the earnings could have been bigger if loopholes in the law that allowed the smuggling of tobacco were plugged. Sen. Edgardo J. Angara, chairman of the ways and means committee, which conducted a joint hearing with its house counterpart on Wednes-day, said, “We must not be happy that we got P65 billion if we could collect P85 billion.” he said proper government agen-cies, like the Bureau of Customs, were not able to provide the necessary data when they noted loopholes in the law. “Tobacco production had increased but consumption had decreased,” he said, and this could mean that some

By Ma. STella F. ArnaldoSpecial to the BusinessMirror

THE Philippines successfully par-ticipated in this year’s ITB Berlin (Internationale Tourismus-Börse

Berlin), considered the world’s leading tourism and trade fair, which could give massive European exposure to tourist destinations. In an interview, Domingo Ramon Enerio III, chief operating officer of the Tourism Promotions Board (TPB), an attached agency of the Department of Tourism (DOT), said the Philippines booth had a bigger space this year at 270 square meters, allowing more Philippines tour operators and travel participants to join and sell more to German and European buyers. “Though the booth was smaller in size compared to Thailand’s and Malaysia’s, it attracted so much more

positive feedback for being spacious, fresh looking and conducive to busi-ness meetings,” he said. Enerio headed the 50-man Philip-pines delegation to ITB Berlin held from March 5 to 9. The delegation was composed of 27 tour and travel com-panies, including Philippine Airlines, which participated in the tourism event for the first time. It also included hotels and resorts, representatives from the local government of Bohol, the Philippine Embassy in Berlin and members of the House Committee on Tourism, headed by its chairman, Rep. Rene Lopez Relampagos of Bohol. The TPB chief said other prov-inces and major Philippines destina-tions were strongly represented and promoted at the ITB, such as Palawan, Boracay, Cebu, Manila, Iloilo, Negros Occidental and Banaue. Enerio said he also met with five

companies that do digital and social- media marketing, like iAmbassador, which networks with travel bloggers; and FVM, a German travel trade pub-lication. “My meetings, in particular, focused on how the Philippines can maximize the digital and social me-dia to engage more Europeans and encourage them to talk about Phil-ippines tourism. This is in line with TPB’s No. 1 strategy to maximize the digital format and utilize the social media in various platforms, including mobile apps.” He also met with eight European tour operators “to discuss possible areas of cooperation.” According to a news statement, ITB Berlin received a 4-percent increase in trade visitors and a larger business vol-ume, estimated at €6.5 billion this year. The TPB, formerly known as the

The Philippines made a splash at the recent ITB Berlin, the world’s leading travel fair, held from March 5 to 9. A 50-man Philippines delegation attended the event. It was led by the Tourism Promotions Board, various tour and travel operators, hotels and resorts, as well as representatives from the Bohol local government and members of the house of Representatives Committee on Tourism. This year’s Philippines pavilion was 270 square meters and allowed more Philippines sellers to promote their respective establishments and the Philippines as a destination. Photo courtesy of tPB

See “Sin tax,” A2

Pinoy infra quality ‘worst’among Asian neighbors

A broader look at today’s business

BusinessMirrorwww.businessmirror.com.ph n Thursday, March 13, 2014 Vol. 9 No. 154 P25.00 nationwide | 6 sections 30 pages | 7 dAys A week

thrEE-tImE rOtary clUb Of manIla jOUrnalISm aWarDEE2006, 2010, 2012

U.n. mEDIa aWarD 2008

KnocK onWood

How to make your FLIGHT

ATTEndAnT like you

Sports

NEW ERA PROMISES SHAKE-UP IN FORMULA ONE

BusinessMirror

C1 | Thursday, MarCh 13, [email protected]@businessmirror.com.phEditor: Jun Lomibao

By Doug FergusonThe Associated Press

ONE lesson Jack Nicklaus imparted on Tiger Woods a decade ago in South Africa was to always be part of the conversation. They were talking that day about

rivalries. The problem now for Woods is it’s hard to have any conversation about him without mentioning his health. The biggest rival for Woods at age 38 might be a body that by his own account appears to be breaking down. Woods was a big part of the conversation in back-to-back weeks on the Florida swing, and it had little to do with this golf. He withdrew from the Honda Classic after 13 holes in the final round with lower back pain and what he said were spasms. He showed up three days later at Doral to walk a practice round on the new Blue Monster with wedges and a putter. He shot 73 in the wind on Friday (a very good score), and he shot 66 on Saturday (a great score) to get within three

shots of the lead. And then his back flared up and he had the worst Sunday score (78) of his professional career. His year is starting to sound like one big soap opera. Was he working out too much in the offseason? Was he playing too little? Should he have played Doral? Will he be at Bay Hill next week? Just how bad is his back? Is rest and treatment enough? What kind of shape will he be in when he gets to Augusta National? And the question that has yet to be asked—should he even play the Masters? No other player from his generation has spoken more to the media than Woods. Few have given up so little. Part of that—most of that—is his desire to keep what he considers private matters just that. And that includes his health. Consider a sampling of Woods’s injuries in recent years. At The Barclays in 2012, he said he felt a twinge in his lower back the morning of the second round and showed great

discomfort around Bethpage Black. “Must have slept funny on it. Soft beds at the hotel,” he said. The next year at the same tournament, he played only nine holes of the pro-am, and then chipped and putted on the back nine. “My neck and back are a little stiff...after a soft bed,” he said. “And just one of those things, sleeping in hotels and I didn’t want to push it.” By the end of the week, he dropped to his knees after one shot on the back nine from what he said were back spasms. Woods said it was unrelated to the tightness he felt in his back two weeks earlier in the final round of the US Professional Golfers Association Championship. He showed up at Boston the next week, thankful for the Friday start of the Deutsche Bank Championship. He played with a left elbow injury in the US Open last summer at Merion. He said he injured it “playing golf” at The Players Championship, and that he would still play even if were not the US Open. But he wound up missing the AT&T National two weeks later to

rest up for the British Open. It’s painfully clear (no pun intended) that Woods does not want to divulge details about injuries. Asked on Sunday at Doral if it could be something more than back spasms, Woods replied: “Well, it is back spasms, so we’ve done all the protocols.” That was followed by a simple question: Have you had an MRI? “As I’ve said, we’ve done all the protocols.” At times, it can be hard to ignore one part of Hank Haney’s book, “The Big Miss,” when talking about Woods’s fascination with injuries. Haney, his coach for six years, said Woods could have worsened the condition of his knee with heavy workouts and Navy SEAL activities. “But Tiger preferred that people see his injuries related to his sport, so that he could wear them as an athletic badge of honor,” Haney wrote. “To him, injuries were a way of being accepted into the fraternity of superstars who played more physical sports than golf. For example, a couple of times when I knew he’d just gotten off the phone with Derek Jeter, I’d

asked what they had talked about. Both times Tiger said the conversation was about injuries they were each dealing with.” It’s easy to connect dots with scores and injuries, especially when the bad back on the last two Sundays followed rounds of 65 and 66. But that would be ignoring the 2008 US Open he won in 91 holes on a left leg so badly damaged that it required season-ending surgery two days later. Even with eight wins over the last two years, his future remains muddled by recurring injuries. How bad are they? Does he need to take more time off? Can he afford to take more time off? How much longer will he be stuck on 14 majors? Will he ever break the record 18 majors won by Nicklaus? Woods is not playing this week. Consider it a commercial break.

»TIgER WOOdS, in this file photo bowing his head on the fourth green during the final round of the Cadillac Championship golf tournament, has been muddled by recurring injuries. AP

F OR jaded Formula One (F1) fans weary of Sebastian Vettel’s dominance, an overdue shake-up is coming.

A switch to six-cylinder turbo engines has forced a radical redesign of the cars, with the aim of making the series more relevant to the car industry and tempting major automakers back to F1. While such changes tend to ultimately benefit the big teams, who have more resources to put into design and trouble-shooting, the change could see some of the major players struggle early. How the teams adjust to the technical challenges will be the major theme of the season, with juicy subplots such as how Fernando Alonso and Kimi Raikkonen manage what could be a combustible relationship as teammates at Ferrari. Off the track, there are also major issues, most notably the future of the series’ commercial boss with 83-year-old Bernie Ecclestone facing bribery charges in Germany. Many eyes are also on Michael Schumacher, who remains in a coma in a French hospital months after he suffered head injuries in a skiing accident. Preseason testing has raised some eyebrows, with Vettel—who will be aiming for his fifth straight drivers’ championship—and his Red Bull team struggling with technical problems, while Felipe Massa at his new team Williams is the unlikely name at the top of the timesheets. It will be tough to bet against Red Bull and designer Adrian Newey quickly coming up with solutions to the preseason glitches, but Vettel knew the restricted running in preseason put his team at a disadvantage for the season-opening Australian Grand Prix (GP) on Sunday. “We haven’t done enough laps, the speed is

not there compared to some other teams,” said Vettel, who last season matched Schumacher’s record of 13 victories in a year and equaled the nine consecutive wins of Alberto Ascari. “There’s no reason to paint everything black. Everyone is motivated to get out of it, get going and find out where we are.” If Red Bull is off the pace in Australia and the early races, it will have plenty of opportunities to catch up in the 19-race season. The Russian GP in October is new to the schedule, while the Austrian GP returns in June. The Korean GP has been dropped, while the Indian GP is off this year and expected early in 2015. Red Bull’s preseason struggles have been caused by Renault’s teething problems with the new V6 engine and associated parts of the power train. That has also impacted the other Renault-supplied teams: Lotus, Toro Rosso and Caterham. The trouble for Renault is the engines have been set for the season ahead, with no major changes allowed, so there is a fear the problems will be difficult if not impossible to resolve. The Mercedes-powered teams have flourished in preseason, with the eponymous factory team a clear favorite for the early races to build on the second-place finish in 2013, while Williams and Force India have looked strong, less so McLaren. The Mercedes teams did roughly twice as many laps in preseason testing than the Renault or Ferrari-powered cars. Mercedes driver Lewis Hamilton, who will sport the No. 44 on his car as F1 switches to personally chosen numbers instead of the previous season’s finishing order, was playing down his favorite status for Melbourne.

“We have a strong package but I don’t feel we are guaranteed to be the guys ahead,” Hamilton said. Mercedes does have the benefit of continuity because it is one of only two teams to retain the same driver pairing from 2013, along with Marussia. There has been plenty of shuffling of drivers but not many new faces. The debutants in Melbourne will be Kevin Magnussen at McLaren, Marcus Ericsson at Caterham and 19-year-old Russian Daniil Kyvat at Toro Rosso, while Kamui Kobayashi returns at Caterham after a year away. The most intriguing driver pairing is at Ferrari, where Raikkonen returns to partner Alonso—the man who replaced him at the Italian team in 2010. The Finn has the speed to challenge Alonso as the team’s top driver—something Alonso struggled with in his one season partnering then-rookie Hamilton at McLaren. There is also the potential for a personality conflict, with Raikkonen’s well-crafted languid image being a marked contrast to the Spaniard’s disciplined approach. Vettel’s new teammate is Daniel Ricciardo, who replaces Mark Webber and will be a distinct No. 2 to the German. Two promising pairings will be at Force India, where Sergio Perez joins Nico Hulkenberg as both seek to belatedly deliver on their status as the next big things in F1, and at Williams, where the experienced Massa will cast off the long-held No. 2 role at Ferrari and become a team leader alongside promising Valtteri Bottas. AP

»FORMULA One driver Sebastian Vettel of Red Bull Racing is aiming for his fifth straight drivers’ championship this season. AP

ARE INJURIES SLOWING DOWN TIGER?

KNOCK ON WOOD

THE road to the Masters is just getting started, and already two players have combined to

win five times on the US Professional Golfers Association (PGA) Tour. They’re not Tiger Woods and Phil Mickelson. How many would have guessed Jimmy Walker (three wins) and Patrick Reed (two wins) when the season began in October? Reed might have had his hand up. In a moment of bravado on television after he won the Cadillac Championship, the 23-year-old Reed said, “I’m one of the top five players in the world. I feel like I’ve proven myself.” He has won twice this season, three times dating to August. Reed and Walker are the latest newcomers to winning on the strongest tour in golf. Harris English won in Mexico last November for his second tour title in six months. Jordan Spieth won in July, and he started this year by giving himself three chances to win. It’s just another example that winning is getting hard, even for those who are used to winning a lot. Each season seems to bring a new crop of younger players who have a lot of game and no fear. Russell Henley won the Sony Open in his debut as a tour member. Just over a year later, he overcame a two-shot lead playing with Rory McIlroy in the final group at the Honda Classic and won a four-hole playoff. Scott Stallings won at Torrey Pines for his third tour win. He’s 28. The last three winners of the World Golf Championships—Dustin Johnson, Jason Day and Reed—are all in their 20s. Ten of the 17 winners this season are in their 20s. That includes Chesson Hadley, who won the Puerto Rico Open on Sunday about the time Reed was beating the strongest field so far this year at Doral. “Look at Russell Henley—he’s won twice,” Reed said. “Harris English has won twice, Jordan Spieth won once. Myself, I’ve won three times. It’s just one of those things that we’ve worked very hard—all of us — to get where we are. And it’s definitely shown what we are doing is working. To see the young guys coming out and playing and putting it to the veterans is always nice.” Walker turned 35 in January, so it’s hard to consider him one of the younger players. Then again, injuries slowed the start of his career. And once he finally won at the Frys.com Open to kick off the new wraparound season, he has made it a habit. Over the weekend, Walker talked about new opportunities that have come his way following his three wins. He’s not interested in anything but playing good golf. Now that he has tasted winning, his appetite is only growing. Walker leads the Ryder Cup standings. Johnson is No. 2, while Reed is at No. 4 in the Ryder Cup. Five of the top nine players in the Ryder Cup standings were not on the last US team at Muirfield Village for the Presidents Cup. It’s still only March, and the majors have yet to be played. Reed has never even played in a major. He rubbed a few people the wrong way when he declared himself among the top five in the world (he’s actually No. 20). It showed what he thought about his game and that he’s not afraid to say it. Years ago, Colin Montgomerie jokingly said it was hard to win majors because Woods usually won two of them, Mickelson, Vijay Singh or Ernie Els won another, and that left only one for everybody else each year. Twenty-one players have won the last 24 majors. That would seem to make it even harder. It’s getting that way for regular US PGA Tour events, too. AP

New namescrowdingUS PgA Tour

ASIANA Airlines (OZ) will begin flying two new Airbus A380 this year for its popular Incheon-Los Angeles routes. The South Korean national carrier, whose hub is the award-winning Incheon International Airport, flies across Asia, Europe, Russia, Oceania, Japan, China and North America. In the Philippines Asiana flies from Manila, Clark and Cebu.

Asiana will initially use the A380 for its Tokyo Narita, Osaka, Hong Kong and Bangkok routes in June. By end-July, the planes will be flying long-haul flights to Los Angeles. Asiana Airlines President Soo Cheon-kim revealed that the airline’s A380 strategy

was focused on maximizing seat efficiency and enhancing premium seat quality. The A380 is touted as the world’s largest passenger airline. Asiana has configured the new aircraft for 495 seats with 12 in First Class, 66 Business Class and 417 Travel Class seats.

First Class and Business Class cabins have been upgraded to the First Suite and Business Smartium configuration, respectively.

First Suite offers spacious 83-inch seats with 32-inch TV monitors. Business Smartium gives passengers space maximized for movement and comfort, with the

addition of a magazine rack on the side. Both cabin designs have been tailor-made by Asiana to let passengers move more freely and have some light exercise, a must for long-haul travels. An induction oven has also been added to the galley equipment for improved food service. “Asiana will strengthen its

competiveness and sales through the introduction of the A380 in this fiercely competitive market, especially connecting China and the United States via Incheon,” Kim said.

Aside from Los Angeles, Asiana also flies to major US cities, such as New York, San Francisco, Seattle, Chicago and Honolulu.

Life� ursday, March 13, 2014 D1BusinessMirrorEditor: Gerard S. Ramos • [email protected]

WE come to the Lord for MARKS OF GOD’S FAVOR! Wealth and fame are worked out by anyone. And so

is poverty when we are lax. Do we consider them as tests of character that will expose our hearts? We praise God at all times, and be good stewards of all the things He has entrusted us. We don’t own anything, even our own life is a lease from the Creator. Let’s keep our Faith burning and serve God above self and receive MARKS OF GOD’S FAVOR. AMEN!

Marks of God’s Favor

YETTA L. CRUZ AND LOUIE LACSONWord&Life Publications • [email protected]

sealed—not your homemade muffins, which might be considered a safety hazard. I bring boxes of Walker’s Scottish shortbread or factory-sealed chocolates. They’re always a big hit and you may be rewarded with a free cocktail or maybe even get reseated in the exit row. It happens!

9. Pens! People are always asking flight attendants for pens, whether to complete immigration and customs forms or to simply do the crossword puzzle. Bring a few extra cheap pens, bundle them up and give them to your crew members. It may not be as enjoyable as a box of chocolates, but they will surely put them to good use.

10. Wheels in! Try to put your carryon bag with wheels or handles facing in before commandeering twice as much space putting it horizontally. And, for heaven’s sake, don’t put your jackets or tiny bags in the bin. That takes up space for larger items that have to go there, and these smaller items easily can fit atop existing bags once everyone has boarded, or underneath the seat. Flight attendants will tell you that boarding is the most stressful part of their job, and by exhibiting an ounce of courtesy and common sense, it helps the entire plane get on the way more quickly.

11. Stay out of the aisles. Make your best effort to stay out of the aisles when the carts are brought out or when the plane is boarding. Try to use the bathroom before boarding or after takeoff, but if the crew begins their service, it is best to stay seated. The carts are heavy and awkward to maneuver, and there’s no reason to become an obstacle to them unless absolutely necessary. And if crew members remind you that the seatbelt sign is still illuminated, remember that they are just doing their job.

12. Tell the airline. If a flight attendant offers exceptionally nice service, most airlines have a mechanism for recognizing them. Ask for their employee number and note the flight number.

Where will all this kindness get you? No, you probably won’t get an inflight upgrade (although flight attendants do have the ability to offer them if there’s room). Maybe the crew will forget to charge you for your cocktail. Maybe they’ll reseat you if the child behind you is wailing like a banshee. I’ve been offered a bottle of wine at the end of the flight on more than one occasion.

But sometimes being nice is its own reward. ■ MCT

How to make your flight attendant like youB G H | Airfarewatchdog.com

MAYBE you don’t want to please your cabin crew next time you fly. I know, I know, it’s their job to be nice, you’re the customer, they’re the employee. But if you’re good to

them, they’ll be extra nice to you. So here’s how to charm them.

1. If a flight attendant greets you upon boarding at the Jetway, say "Hi" back. Don’t just ignore them. A simple “good morning” or “good evening” does it. How would you like to greet 20 people in a row and be greeted by silence? Well, that’s what usually happens.

2. Listen to the safety demo. It’s just polite. Put down your iPad and Kindle. When was the last time you really listened? If it was more than a few years ago, it’s time for a refresher. At the very least don’t talk loudly to your neighbor when a flight attendant is standing in front of you trying to keep you safe.

3. Headphones off! Take your headphones off when they ask you what you’d like to drink so they don’t have to repeat it three times. How would you like it if

they were wearing headphones when talking to you? It’s the Golden Rule.

4. Be specific when ordering. When you ask for coffee or tea, specify milk or no milk, sweetener or not, without being asked, as in “I’d like coffee with milk please” or “I’d like coffee, black.” Not only does it make their job easier, but everyone on the plane will get served more quickly.

5. Same for cold drinks. “I’d like Diet Coke, no ice please” or “Water, with ice and a slice of lemon please.”

6. Say "please" and "thank you." As in the ex-amples above, say “please” and “thank you” when asking for and receiving something. Again, common courtesy that will get you treated extra well. A flight attendant once told me “We thought you were company” (meaning that I worked for the airline) because I was so polite.

7. Magazines! Donate copies of your current magazines to the crew. After you finish reading this week’s US Weekly or GQ, give it to your flight attendant. Flight attendants love to read magazines when they’re off duty or on break.

8. Treats. It’s perfectly permissible to bring a little taste treat for your crew. Just make sure it’s safety-

Agoda.com, Singapore Airlines partner for great dealsSINGAPORE—Agoda.com, one of Asia’s leading hotel booking sites and part of Nasdaq-listed Priceline Group, has announced an enhanced partnership with Singapore Airlines which will give customers instant access to Agoda.com’s inventory of properties around the world.

This partnership is an important next step for the two companies. Having previously offered promotions only to members of KrisFlyer, Singapore Airlines’ frequent flyer program, the enhanced partnership now allows all Singapore Airlines customers to enjoy access to Agoda.com’s global inventory of hotels. KrisFlyer members will additionally benefit from this partnership by earning KrisFlyer miles with every hotel booking. Bookings can be made through a customized booking page at www.agoda.com/singaporeair. Commenting on the deal, Agoda.com Director for Commercial Ernst Hemmer said: “We are very excited to bring Agoda.com’s extensive global hotel portfolio to customers of Singapore Airlines, without doubt one of the world’s most recognized brands and one of the leaders in the global airline industry. Our intent is to make it both easy and worthwhile for Singapore Airlines customers to earn miles at the same time they book hotels.”

■ To connect with Agoda.com and learn about special deals and promotions on hotels worldwide, like on Facebook, or follow on Google+, Instagram or Pinterest.

A new Airbus for long-haul flights

LIfe »d1

sPoRTs »C1

INSIDE

eu eyes new asset,travel sanctionsagainst russia

See “Tourism,” A2