B.S.P. SAYS ROBUST DOMESTIC GROWTH, WITHIN-TARGET INFLATION SUPPORT KEEPING POLICY SETTINGS STEADY

www.businessmirror.com.ph n TfridayNovember 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 7 sections 32 pages | 7 days a weekn Friday, February 13, 2015 Vol. 10 No. 127

A broader look at today’s businessBusinessMirrorTHREE-TIME

ROTARY CLUB OF MANILA jOURNALISM AWARDEE2006, 2010, 2012U.N. MEDIA AWARD 2008

PESO ExCHANGE RATES n US 44.3530 n jAPAN 0.3688 n UK 67.5940 n HK 5.7207 n CHINA 7.1048 n SINGAPORE 32.5933 n AUSTRALIA 34.2177 n EU 50.1189 n SAUDI ARABIA 11.8230 Source: BSP (12 February 2015)

By VG Cabuag

Conglomerate ayala Corp.  on thursday  said it will spend some P185 billion in capital expenditures

(capex) this year, with its property arm get-ting P100 billion. the figure was slightly lower than the record P187-billion spending budget set

in 2014 by the company, which is slowly venturing into capital-intensive power and infrastructure projects. Property unit ayala land Inc. will get P100 billion in capex as it implements its so-called 2020 vision business plan. the said plan is meant to support ayala land’s target of growing by an average of 20 percent every year, with the end goal of

reaching the P40-billion net-income target by 2020, more than tripling its P11.7-billion profit in 2013. “We started an aggressive growth strategy a few years back and we continue to undertake value-enhancing opportu-nities amid this sustained momentum in our economy. each of our business units is

See “Ayala,” A2

INSIDE

CALIFORNIADREAMING

‘I NEED A LOTOF WORK’

INSPIRED, ‘UNBROKEN’...ANGELINA jOLIE

Editor: Tet Andolong

MotoringHenry Ford AwardsBest Motoring Section2007, 2008, 2009, 20102011 Hall of Fame

E1 Friday, February 13, 2015

BusinessMirror

That thought propelled me to take a shower, change clothes and drive to West McKinley Estate in Taguig City for the much anticipat-ed driving experience and official debut of the Ferrari California T in Manila.

And damn! It felt like my blood stirred upon seeing a bunch of Fer-raris parked at the event venue such as the 348 GTB, F50 GT, F430 and 458 Italia. Imagine the nostal-gic feeling of seeing those Italian luxury cars. And, perhaps, what was even more interesting was the opportunity to meet the latest Fer-rari California T.

Ferrari’s local distributor, Auto-strada Motore Inc., made sure that it would be a memorable day as they allowed us to drive two California Ts—in red and blue—which had just been shipped into the country.

The Ferrari California is a grand touring sports car hardtop convert-ible named after the late 1950s Fer-rari 250 GT. The letter “T”, which is on the Holy Grail nameplate, stands for Turbo.

The front of the car is dominated by the unmistakable Ferrari grille which gives it an aura of power and sportiness. The small side air in-takes, which look like fish gills, ven-tilate the intercoolers for the new turbocharged engine, while the front brake intakes are in the front underbody. The headlights have a sleek wedge shape and house LEDs.

The shape of the California Turbo is inspired by the 250 Testa

Rossa’s famous pontoon-fender styling. Dynamically hugging the front wheel, the line of the flank stretches all the way back to the aerodynamic air vent behind the wheel arch. The new door designs are now even more sculpted, down to the new 19-inch or optional 20-inch forged wheels. What’s cool about this car is that it takes just 14 seconds to convert from a sophisti-cated coupe to a more chic, seduc-tive spider!

When I stepped inside the car, it felt like I owned everything in this world. Great attention has given to creating extra space to stow items of your girlfriend (or whoever your passenger is). Cabin elements have been completely redesigned and carefully studied to combine ex-ceptional standards of sportiness, comfort and elegance.

In terms of power, everyone knows that Ferrari engines are the products of cutting-edge,

AMArAnello masterpiece—the 2015 Ferrari California T.

Story and photos by Kris C. Lim

I WOKE up to the sound of my alarm clock one Saturday morning—I hate getting up that

early—and I had wanted to sleep again, but then I realized that it was “Ferrari Day.”

technological know-how that makes all of the Maranello-born cars unlike any other.

An astonishing new direct in-jection 3.9-liter V8 engine endows the California Turbo with 552 hp, which allows it to sprint from zero to 100 kph in just 3.6 seconds.

Turbo technology has an honor-able place in the Prancing Horse’s engineering tradition, as seen in its iconic models such as the GTO of 1984 and the F40 of 1987.

To experience an exhilarating drive, George Ramirez—a well-known professional racer and in-structor—designed a simple track on which we were tasked to do a full sprint, braking and maneuvering exercise. Flooring the pedal of the car was truly an awesome sensa-tion. With a push on the gas pedal, the California T screamed like a cat! The sound became even more im-pressive as the revs increased.

On the short braking exercise,

the California T was equally im-pressive. Thanks to new composite discs and pads integrated with the ESP 8.0 Premium system, which controls the high-performance ABS, the car is able to achieve ex-tremely short stopping distances.

The California T also boasts of true sports car dynamics, too, thanks to reduced steering wheel activity and improved steering wheel response courtesy of a new steering box and new suspension

setup. New springs and the latest-generation Magnaride dampers (now more than 50 percent faster) combined with body motion accel-erometers reduce roll and pitch to deliver more precise handling while still guaranteeing an incredibly comfortable ride.

All told, the Ferrari California T driving experience was truly a memorable one.

You can put it in two words—California dreaming!

SportsBusinessMirrorC1 | Friday, February 13, 2015

mirror_sports@yahoo.com.phsports@businessmirror.com.ph

Editor: Jun Lomibao

LOS ANGELES—Los Angeles Clippers center DeAndre Jordan had 24 points and 20 rebounds to lead the Clippers to a 110-95 win against the Houston Rockets in one of two key

clashes between National Basketball Association (NBA) Western Conference contenders on Wednesday. The other West showdown resulted in Oklahoma City comfortably beating Memphis. In the Eastern Conference, Toronto further built its massive lead in the Atlantic Division by narrowly beating Washington, while conference leader Atlanta was beaten on the buzzer at Boston. The Clippers played their third game without Blake Griffin, who will be sidelined at least three weeks after surgery for a staph infection in his right elbow, but Jordan stepped up in his absence, as did Jamal Crawford and JJ Redick, who each had 20 points. Jordan shot six-for-eight from the field, extending his NBA-record streak to 39 consecutive games shooting at least 50 percent. Corey Brewer scored 22 points for the Rockets, who have lost 11 of their past 12 meetings with the Clippers.Toronto’s DeMar DeRozan hit a tiebreaking jump shot with 12 seconds left to give the Raptors a 95-93 victory over Washington. Lou Williams scored 27 points and DeRozan had 23 for the Raptors, who have won seven of the past eight meetings with the Wizards, including all three this season. John Wall scored 21 points for Washington, which fell into a tie with Cleveland for fourth in the East. Oklahoma City got 50 points from the pairing of Kevin Durant and Russell Westbrook to defeat Memphis, 105-89. Durant scored 26 points and Westbrook added 24 for the Thunder, who have won five of six heading into the All-Star break. Zach Randolph scored 16 points for the Grizzlies, who had won 10 of their previous 11 games, and failed to capitalize on Houston’s loss, with the gap between the division rivals staying at three games. Boston’s Evan Turner made a running scoop shot with 0.2 seconds left to give Boston its only lead of the game as the Celtics pinched an 89-88 win against Atlanta. Jared Sullinger had 17 points and 15 rebounds for the Celtics, while Turner had 12 points, nine assists and seven rebounds. Al Horford scored 22 points and added 12 rebounds for the Hawks, who suffered only their third loss of the calendar year. San Antonio won, 104-87, at Detroit, setting it up with a strong defensive performance in the first quarter. Danny Green scored 19 points and Tony Parker added 17 for the Spurs, who held Detroit to 12 points in the first quarter and led comfortably through just about the entire second half. D.J. Augustin scored 22 points for the Pistons. Dallas held on for an 87-82 home win against Utah, helped by 15 points in the third quarter by JJ Barea. Starting while Rajon Rondo recovers from a broken orbital bone, Barea (22 points) got a boost when Monta Ellis joined him in the backcourt a day after being called doubtful with a hip injury. Gordon Hayward was limited to 12 points for Utah and had two of his six turnovers in the closing minutes. Golden State’s Andre Iguodala and Leandro Barbosa led a dominant effort from the reserves, leading the Warriors to a 94-91 win at Minnesota. Portland beat Los Angeles, 102-86, to extend the Lakers’ road losing streak to a franchise-record 11 games. Indiana cruised to a 106-93 win at New Orleans, which was without All-Star Anthony Davis and forward Ryan Anderson. Milwaukee produced a third-quarter surge to win, 111-103, against a Sacramento team preparing for its third coach this season. Cleveland made it 14 wins in 15 games by defeating Miami, 113-93, with LeBron James scoring 18 points against his former Heat teammates. Orlando’s Nik Vucevic had 28 points and 18 rebounds to lead the Magic to an 89-83 victory over New York. AP

CLIPPERS SILENCE

ROCKETS

‘I NEED A LOTOF WORK’

By Doug FergusonThe Associated Press

P EBBLE BEACH, Florida—Tiger Woods said on Wednesday his game is “not acceptable” to compete in tournaments and he will

return when he thinks it is. Hopeful of having injuries behind him, Woods made a horrific start to the new year. He shot a career-high 82 in the second round of the Phoenix Open to miss the cut by 12 shots. And then he withdrew after 11 holes of ordinary golf at Torrey Pines because of tightness in his back from a fog delay. Woods said on his web site the last two weeks have been disappointing, especially at Torrey Pines, where he is an eight-time winner. He said he never wants to withdraw, but recent injuries have allowed that to happen too often. Woods said his latest injury was not related to the back surgery he had last spring, and that he is feeling better every day with physical therapy. “Right now, I need a lot of work on my game, and to still spend time with the people that are important to me,” Woods said. “My play, and scores, are not acceptable for tournament golf. Like I’ve said, I enter a tournament to compete at the highest level, and when I think I’m ready, I’ll be back.” Woods is not playing Pebble Beach or Riviera, and said he would practice next week at his home and at The Medalist “getting ready for the rest of the year.” He said he wants to play the Honda Classic, which starts on February 26, but he won’t be there unless his game is

tournament ready. “That’s not fair to anyone,” Woods said. “I do, however, expect to be playing again very soon.” Ernie Els, who has known Woods longer than any other active Professional Golfers’ Association (PGA) Tour player, heard about his woes while playing in Dubai and later saw highlights. “As competitive as we are, we don’t want to see anyone suffer like that,” said Els, who has finished second to Woods more than any other player. “We’ve got to do our stuff in public. I don’t care if you’re Tiger Woods, Ernie Els or whoever. If you have some error in your game, you get exposed.” Woods, the winner of 79 PGA Tour events and 14 majors, has never looked this bad on the golf course. He had back surgery to relieve a pinched nerve a week before the Masters and missed three months (including the first two majors), and then he took four months off at the end of last year to regain strength and get his back fully healed. He also hired a new swing consultant and embarked on the fifth swing change of his career. His chipping was bad at the 18-man Hero World Challenge at Isleworth in December, when he tied for last. His chipping looked even worse at the Phoenix Open, a collection of shots that he either flubbed short or bladed across the green. Woods is at No. 62 in the world, his worst ranking since before he won his first PGA Tour event in 1996. He is not eligible for the World Golf Championship at Doral. “I am committed to getting back to the pinnacle of my game,” Wood said.

Hopeful of having injuries behind him, Tiger Woods made a

horrific start to the new year. He shot

a career-high 82 in the second round of

the Phoenix Open to miss the cut by

12 shots. And then he withdrew after

11 holes of ordinary golf at Torrey Pines

because of tightness in his back from a

fog delay.

THE Clippers’ Glen Davis

shouts aftera dunk. AP

TIGER WOODS says on his web site the last two weeks have been disappointing, especially at Torrey Pines, where he is an eight-time winner. AP

LOVE CHOCOLATE? HAVE IT FOR DINNER »D3

D1

Life Friday, February 13, 2015BusinessMirrorEditor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

T HANK You, Father, for the love that will fashion our families, our communities, our countryside, our coastlands and our cities into havens of peace,

collaboration, solidarity, mutual respect and trust. A country built on love is a country with a future. It is a country that promotes justice and curbs corruption, a country that loves peace and works for it with persevering resolve. A country built on love, solidarity, mercy and compassion is a country where God feels at home, and where all its citizens feel at home with God. Amen.

Where God feels at home

WORD AND LIFE, FR. SAL PUTZU, SDB AND LOUIE M. LACSONWord&Life Publications • teacherlouie1965@yahoo.com

B J HLos Angeles Times

OXENFORD, Australia—From within the sea of cast and crew she emerged, looking far less like one of the world’s most recognizable movie stars than a random, plainly dressed

member of the Unbroken production team. Wearing a simple black blouse and slacks and walking with no train of assistants or handlers, the director didn’t magically part the waters the way filmmakers, such as Martin Scorsese or Baz Luhrmann, do on a film set.

She put out her hand to shake, said, “I’m Angie,” and started to show a visitor around.

There was tremendous bustle in and around Jolie’s world as the actress-turned-director was filming the true story of World War II bombardier Louis Zamperini. As a special-effects team prepared to reenact the Pacific Ocean crash of Zamperini’s B-24 on one massive stage, another crew inside another huge stage was setting up the yellow rafts in which Zamperini (Jack O’Connell) and crew mates Russell Allen “Phil” Phillips (Domhnall Gleeson) and Francis “Mac” McNamara (Finn Wittrock) would begin their epic voyage of survival.

Inside all of the comings and goings encircling her, Jolie found a quiet corner in Village Roadshow Studios, where she pulled out a stack of photographs. They were taken just a few days earlier, when Jolie and her cinematographer, Roger Deakins, had filmed Zamperini and his fellow prisoners of war loading coal toward the end of their detention. The images were strongly evocative of (and, indeed, inspired by) Sebastião Salgado’s black-and-white work from the Brazilian gold mines in Serra Pelada, with the American soldiers covered head to toe in soot, their darkened bodies almost part of the Japanese landscape.

“For us, the movie is all about the theme of light and darkness—it’s both a metaphor and it’s practical,” the 39-year-old Jolie said of directing just her second film,

after her 2011 debut, the independent Bosnian war drama In the Land of Blood and Honey. “When Lou is in the camps it’s dark, and when he comes up, it’s light. And that’s what we are trying to depict.” (Reviews of the film have been solid if not spectacular, but all have praised the film’s production and visual style.)

It’s not only an interesting visual allusion but also a telling use of language: Unbroken was not a movie Jolie was making as an “I,” it was a movie she was making by “Us” and “We.” And that group categorically was

governed by one person, who was then miles from her Australian set and in the last months of his life: Zamperini himself.

SPIRITUAL HINGELOUIS ZAMPERINI, who died in July at age 97, was an Olympic long-distance runner who survived 47 days in a life raft only to be tortured for more than two years after he and Phillips (McNamara died at sea) were captured by the Japanese in 1943 and interned as prisoners of war.

Zamperini’s extraordinary ordeal—and his postwar struggles with alcoholism before he was able to absolve his principal tormentor, the sadistic prison commandant Mutsuhiro Watanabe—were the focus of Laura Hillenbrand’s 2010 biography, Unbroken, which has been on the bestseller list more than 180 weeks.

Many filmmakers—including Steven Spielberg and Ron Howard—had been asked to shoehorn the sprawling story into a two-hour movie, but none before Jolie and her screenwriters, Joel and Ethan Coen, had figured out a possible path. The insurmountable challenge had been how to jettison the last third of Hillenbrand’s biography—everything that Zamperini experienced after being liberated from his third and final camp—without excising the book’s potent message of reconciliation.

Working with the Oscar-winning filmmakers behind No Country for Old Men, Jolie seized on a singular moment in Zamperini’s captivity and decided that it had to become the spiritual hinge of the adaptation, the film’s emotional conclusion.

About three-quarters of the way through her book, Hillenbrand recounted how Watanabe forced Zamperini to hold a heavy wooden beam over his head. Healthy men might have labored to keep it aloft for more than a few minutes; Zamperini, racked by dysentery and malnourished, defied his oppressor and lifted it above him for more than half an hour. “Something went on inside of me,” Zamperini recalled later. When O’Connell tried to replicate the feat during filming, he twice passed out.

“I’m not one to look for or preach about miracles or anything like that; I’m still searching myself for what to be sure of and what to believe in,” Jolie said weeks later back in Los Angeles. About to attend a party to promote the film, which opened on Christmas Day, she now was outfitted in an elegant dress and looked very much like one of the most striking women in the world. “You hear

Inspired, ‘Unbroken’... Angelina Jolie

C D

THE Oscar-winning actress/director shares a moment with Louis Zamperini before his death last year.

HAVE IT FOR DINNER »

moToriNg e1

sporTs c1

liFe d1

By David Cagahastian

The Monetary Board (MB) kept the Bangko Sentral ng Pilipinas’s

(BSP) key policy rates at 4 percent for overnight borrowing and at 6 percent for lending. the policy rates were held in place as inflation forecasts remained low over the policy horizon in keeping with the significant decline in oil prices in the international market. at the rate-setting meet-ing of the mB on thursday, the interest rates on spe-cial deposit accounts (SDas) were also kept steady at 2.5 percent. “the mB’s decision is based on its assessment that prevailing monetary-policy settings remain appropriate. latest baseline forecasts show a lower

See “Key rates,” A2

Ayala Corp. to spend ₧185 billion this year

aBs-cBN pioNeers digiTal TeleVisioN iN THe coUNTry From being the first to introduce television in the country, to being the first to broadcast in full color, aBs-cBN once again pioneers another milestone in philippine broadcasting as the first TV network to broadcast in digital with the launch of aBs-cBN TVplus. aBs-cBN TVplus, a digital box more popularly known as the mahiwagang black box, promises clear picture and sound, and will offer four free exclusive channels (cinemo, dZmm Teleradyo, knowledge channel and yey!) on top of aBs-cBN, aBs-cBN sports+action and all the free-to-air channels available via digital transmission. it is offered at an affordable one-time payment of p2,500 only, with no monthly or installation fee. The ceremonial and historic switch-on for aBs-cBN TVplus happened on February 11 at the aBs-cBN center road, led by (from left) aBs-cBN chairman eugenio lopez iii, president and ceo charo santos-concio, and Head of access carlo katigbak. See story on A8.

‘NO THERAPEUTIC CLAIM’TO GIVE WAY TO FILIPINOTRANSLATION SOON–FDA

By Roderick L. Abad

tHe Food and Drug administration (FDa) announced on thursday  that the phrase “no therapeutic Claim” can no longer be

used in all advertisement, promotional and spon-sorship materials or activities concerning food or dietary supplements in the country.  “We will be requiring in ads and promos the use of Filipino translation, instead,” Center for Food regulation and research officer in Charge Director maria Victoria D. Pinion told the Busi-nessmirror at the sidelines of an FDa forum in makati City. this, she said, will be reiterated in a circular that they will issue to concerned advertisers anytime this February. “We already have the draft. It’s for final review. We target within the month to issue such,” she bared. While the circular is just a reiteration of the

Key rates kept, as expected

See “Therapeutic claim,” A1

Therapeutic claim. . . Continued from A1

PPP. . . Continued from A8Key rates. . . Continued from A1

Ayala. . . Continued from A1

Korean Air. . . Continued from A8

BusinessMirror news@businessmirror.com.ph Friday, February 13, 2015A2

News

HOT-AIR BALLOON FESTIVAL Colorful balloons fill the sky during the Philippine Internatiional Hot Air Balloon Fiesta in Clark Field, Pampanga. The festival will run until February 15. ALYSA SALEN

Administrative Order (AO) 2010-008 is-sued by then-Health Secretary Esperanza I. Cabral on March 18, 2010, Pinion said this will now be in effect as the Court of Appeals (CA) had already lifted the temporary re-straining order (TRO) against the directive on November 28, 2014. The policy on changing the use of “No Therapeutic Claim” in all ads of food or dietary supplements to Filipino stan-dard message “Mahalagang Paalaala: Ang [Name of Product] Ay Hindi Gamot At Hindi Dapat Gamiting Panggamot sa Anumang Uri Ng Sakit” was contested by the Chamber of Herbal Industries of the Philippines through a compliant for the issuance of TRO and/or writ of prelimi-nary injunction (WPI) before the Regional Trial Court of Manila. The RTC ruled against the AO issued by the Department of Health (DOH), giving more weight to the position of the asso-ciation of over 65 herbal companies, thus, putting its implementation to a halt for four years.  But a further review in the records by the CA revealed that the RTC gravely abused its discretion in granting the WPI.  Hence, the orders of RTC dated May 28, 2010 and September 30, 2010, were

set aside, while the complaint was dis-missed for utter lack of merit and the WPI was lifted and dissolved. The CA’s ruling indicated that the issu-ance of the AO is but an exercise of the state’s police power, which cannot be hindered by property rights. “The welfare of the Filipino people is higher than any rules,” she said. “The AO is just promoting and protecting the con-sumers’ health and welfare, and fostering their right to proper information and edu-cation to facilitate sound choice.” While the AO applies only to the adver-tisements and other marketing initiatives for food or dietary supplements, Pinion said their technical group is now working on the guidelines to also align this in the labeling of such products.    “Their time frame is by end of this month, the first draft will be issued already,” she said. Under the office of the DOH, the Food and Drug Administration is mandated to prescribe standards, guidelines and regula-tions with respect to information, advertise-ments and other marketing instruments and promotion, sponsorship and other activities about health products.  

seizing investment opportunities within their individual spaces under this positive environment,” the company’s chairman and CEO, Jaime Augusto Zobel de Ayala, said in a statement. Globe Telecom Inc., the country second-largest telecommunications company, will spend some P29 billion for its infrastruc-ture upgrade. An additional P8 billion will be spent by Globe this year, which came from its spend-ing allocation last year that was delayed due to “timing issues,” the company said. At the parent level, Ayala will deploy P21 billion to support investment programs in power generation and transport infrastructure. The rest of the amount will be deployed to fund the growth initiatives of the other business units, including Manila Water Co. Inc., Bank of the Philippine Islands

and Integrated Micro-Electronics Inc. It did not give a break down on how much it will spend for these units. “In particular, we continue to strengthen our positions in power and transport infra-structure—two sectors that are presenting opportunities for investments with poten-tial to become new growth platforms for Ayala,” Zobel said. “We remain positive about the country’s overall macroeconomic environment this year as reflected in the aggressive capital spending we have planned out,” the com-pany said. For the first nine months of 2014, Ayala registered a net income of P14.1 billion, a 35-percent growth from the previous year, primarily driven by the robust per-formance of its real estate, telecom and water units.

Concerned aganecies are about to issue the invitations to bid for the 12 other projects, and later the Invitation to Prequalify to Bid. Around six projects are undergoing National Economic and Development Authority (Neda) approval, and another 13 are undergoing feasibility studies. Six projects are in the procurement phase for transaction advisors. The PPP Center also said 12 projects are undergoing conceptualization. Earlier Socioeconomic Planning Secretary Arsenio M. Balisacan said infrastructure proj-ects, including PPPs, are at the cornerstone of the country’s economic growth this year. Balisacan said 93 infrastructure projects worth P1.08 trillion have been approved by the Aquino administration.

He said seven projects have been completed, around 58 are ongoing or under implementa-tion, and 28 are for implementation. The Neda chief said that majority of the 93 projects, around 53 projects, will be financed through Official Development Assistance (ODA). Majority, or 37, of these ODA-funded proj-ects are already ongoing. The total cost of these projects amount to P318 billion. The remaining 16 ODA projects are com-posed of seven projects worth P17.6 billion that have been completed and nine projects worth P47 billion that are for implementation. Further, Balisacan said around 24 of the 93 infrastructure projects worth P628 billion will be financed through the PPP scheme.

The arbitration committee has ordered CJhDevelopment Corp. (CJhDevco) to vacate Camp John hay and return

the property to the Bases Conversion and Development Authority (BCDA) in a decision dated February 11, 2015.

BCDA wins Camp John Hay arbitration

“We see this as a victory for the government. Finally it will be re-turned and it can now be developed for the benefit of the public,” BCDA President and CEO Arnel Paciano D. Casanova said. “However, we are studying the decision and weighing our legal options. While it is good that the property will be returned to the government, it is not just that the government will not be compensated for CJHDevco’s use of the facility for over a decade and for which it has earned billions.” CJH Devco has not been paying the

BCDA its lease rentals and its arrears have ballooned to over P3.4 billion, 25 percent of which should have been for the local government of Baguio. The tribunal, chaired by lawyer Mario E. Valderrama, said “since it cannot be determined which of the parties first violated the 2008 RMOA, such is hereby deemed ex-tinguished due to the mutual breach of the same by both parties…the termination by respondent of the original lease agreement is hereby confirmed in view of the breach of the same by claimant: the claim-ant is ordered to vacate the leased

premises and promptly deliver the leased property, inclusive of all new constructions and permanent im-provements introduced during the term of the lease as reckoned from the execution of the original lease agreement to respondent in good and tenantable condition in all respects, reasonable wear and tear excepted.” In a separate opinion, coarbitra-tor Teodoro Kalaw IV said CJHDevco should pay rentals in arrears amount-ing to P2.4 billion. Kalaw said : “Claimant has ex-pressly acknowledged to owe Respon-dent at the time of the execution of the 2008 RMOA on July 1, 2008, in the amount of two billion four hun-dred six million one hundred forty thousand five hundred twenty five pesos [P2,406,140,525.00].” In a decision dated September 30, 2014, the Court of Appeals agreed with the BCDA’s position that “it is the public that suffers for the failure of CJH Devco to fulfill its obligations.”

Prosecutors had called for three years in pris-on. Cho’s high-and-mighty behavior, dubbed nut rage, caused an uproar in South Korea. The incident was a lightning rod for anger in a country where the economy is dominated by family-run conglomerates known as chaebol that often act above the law. Chaebol chiefs convicted of white collar crimes have typically received suspended prison sentences and later on, presidential pardons. Courts have often acknowledged the contri-bution of such industrialists in transforming South Korea from an economic backwater into a developed economy. But the Cho case indicates South Korean so-ciety is less indulgent of the second and third generation members of high-profile business families. Heirs to fantastic fortunes such as Cho quickly ascend the executive ladder but few be-lieve their rise is based on merit. In her letter to the court, Cho said she was given only toilet paper, soap and underwear after being detained but was humbled that other prisoners had given her their toiletries. AP

inflation path within the target range of 3.0 percent [+/- 1 percentage point] for both 2015 and 2016, while inflation expectations remain firmly |anchored,” the BSP said in a statement. At the last policy meeting of the BSP last December, key rates were also main-tained at 4 percent for borrowing or the reverse repurchase (RRP) facility and 6 percent for lending or repurchase (RP) facility, while the SDA rates were also maintained at 2.5 percent. At that time, inflation or the rate of change in prices, proved to be within target and precluded the need to raise the policy rates to deal with any excess liquidity that drives inflation higher. The last time the MB decided to raise the policy rates was in the third quarter last year, in an at-tempt to moderate surging inflation pressures. The MB noted possible threats that might result in higher inflation in the coming months, such as the warning from power distributor Meralco, of higher rates in February and water rate hikes requested by water concessionaires Maynilad and Manila Water. But these risks may be offset by robust domestic demand. The BSP said the board observed “prospects

for domestic activity continue to be firm, and positive growth dynamics are expected to be supported by buoyant private demand, sustained bank lending growth and upbeat business sentiment.” “Given these considerations, the Monetary Board was of the view that the within-target infla-tion outlook and robust domestic growth support keeping policy settings steady,” the BSP said. Also because of expectations that inflation will remain within the target of 3 percent this year, the Monetary Board also maintained the reserve requirement ratios of banks. The reserve ratios pertain to that portion of the banks’ deposits that may not be lent out, but should instead remain in the vaults of the central bank. It is an important regulatory tool, that has direct bearing on the lenders’ capacity, to extend loans and add or subtract money supply. At present, the deposit reserve requirement, or the percentage of bank deposits that banks must keep with the BSP, is 20 percent for big banks. For thrift banks, the percentage is 8 percent, while rural banks should maintain a reserve requirement of 5 percent.

news@businessmirror.com.ph Editor: Dionisio L. Pelayo • Friday, February 13, 2015 A3BusinessMirrorThe Nation

“The delicate task of finding out who did what, especially the reported atroci-ties, cannot immediately be blamed on the MILF. That would be unfair,” Iqbal said at the resumption of the Senate inquiry into the bloody encounter on January 25 in Ma-masapano, Maguindanao.

Iqbal said the MILF was not the only group, but that there were also the Bangsamoro Is-lamic Freedom Fighters (BIFF) and other pri-vate armed groups present when the SAF con-ducted “Oplan Exodus” to capture high-profile terrorists Zulkifli bin Hir and Basit Usman.

“The SAF fought other armed individuals belonging to different networks and groups,” the BTC chairman told the joint Senate Com-mittees on Public Order and Dangerous Drugs, and Peace, Unification and Reconciliation.

He denied allegation that the MILF and the

BIFF are conniving with each other.Sen. Miriam Defensor Santiago, however,

did not buy the claim of the MILF official.“I submit this failure to convey vital in-

formation such as the presence of Marwan in their area [as] a subject of bad faith,” San-tiago said.

Iqbal said the “unfortunate encounter” re-sulted not only in the killing of 44 SAF com-mandos but also 18 MILF fighters.

“We must honor them by making sure that their sacrifice would not be in vain. While we cannot change the past, we can do something about the future,” Iqbal said.

Iqbal, however, didn’t mention how many were killed in the ranks of the BIFF.

In the first Senate hearing, relieved SAF chief Gen. Getulio Napeñas estimated the groups that engaged the SAF in the

Iqbal: Unfair to blame MILF on brutal killing of SAF 44

BANGSAMORO Transition Commission (BTC) Chairman Mohagher Iqbal said on Thursday it would be unfair

to immediately blame on the Moro Islamic Liberation Front (MILF) the reported atrocities and brutality in the killing of 44 National Police-Special Action Force (SAF) commandos in the Mamasapano encounter.

THE Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) have affirmed support for the passage of the Bangsamoro basic law (BBL).

Expressing the apprehensions of people from Mindanao, the passage of the BBL will be delayed or scrapped off in the wake of the January 25 Mamasapano incident, House Deputy Speaker and Lanao del Sur Second District Rep. Pangalian Balindong asked top police and military officials if they support the passage of the BBL as a way forward in achieving peace. To this, both PNP Officer in Charge Deputy Director Leonardo Espina and AFP Chief of Staff Gen. Gregorio Catapang responded “Yes” and affirmed their support to the passage of the BBL. Espina and Catapang expressed their support for the passage of the law during the first public hearing on the incident that claimed lives of 44 Special Action Force (SAF) policemen, armed rebels and civilians. Balindong, a Muslim, appealed the “peace process should continue so our [referring to the people of Mindanao] hearts may be at ease.” He urged the conduct of an “uninterrupted review of the BBL” parallel to the congressional probe on the Mamasapano incident. Meanwhile, Presidential Adviser on the Peace Process Teresita Quintos Deles said the passage of the BBL is really in the hands of Congress and expressed her respect to the power of the body to legislate a law that will address the aspirations of the Bangsamoro people. The passage and ratification of the BBL shall establish a Bangsamoro government that will exercise genuine autonomy, and replace the Autonomous Region in Muslim Mindanao. The BBL is the enabling law of the Comprehensive Agreement on the Bangsamoro (CAB) signed by the government of the Philippines and the Moro Islamic Liebration Front (MILF) on March 27, 2014. The CAB also provides a normalization process that includes de-commissioning of the MILF weapons and forces, simultaneous to the establishment of the Bangsamoro. PNA

PNP, AFP affirm support for passage of Bangsamoro law bloody encounter suffered at least 250

casualties.Autonomous Region in Muslim Mind-

anao Gov. Mujiv Hataman said among the casualties were three civilians, includ-ing an 8-year-old whose house is near the area where the firefight occurred.

Iqbal said the MILF has also been inves-tigating the conduct of their men “to see if anyone violated the rules of conduct.”

“We thought that we had effective pro-tocols and mechanisms in place that would prevent things like these from happening,” Iqbal said.

The BTC chief said aside from their own investigation, the MILF is also pushing for a truly independent group similar to the Truth Commission being proposed in the Senate that would conduct “a fair and impartial investigation on the incident.”’

During the hearing, Iqbal revealed the MILF had rescued 28 SAF men who were part of the first team holed up in an area 1 kilometer northeast of Tukanalipao.

“They were already being fired upon by unidentified armed groups. The 28 SAF men are alive today because of the efforts of the MILF and finally, it is the will of God,” he said.

He also clarified that the MILF is against all forms of terrorism and, in fact, have made a solemn vow to fight terrorism in their areas.

“The MILF did not harbor Marwan and Usman. The MILF has no links with these terrorists and terrorist organizations. Mar-wan and Usman were in areas outside the

MILF-controlled areas,” Iqbal said.Iqbal said he has not seen a video showing

a gruesome killing of a wounded SAF man but he described it as a “monster” act that was “more than a terrorist act.”

Iqbal also assured that the MILF is com-mitted to peace, which they have been ad-vocating for the last 17 years.

“We signed the Framework Agreement on the Bangsamoro, the Comprehensive Agreement on the Bangsamoro and the draft of the Bangsamoro basic law (BBL). Each of these agreements is a testament to our commitment to pursue our objectives through peaceful means,” he said.

He appealed to the lawmakers to help achieve the peace in Mindanao.

“We promised to our people that peace will be our legacy. We seek your help in making this promise possible. We cannot do it by ourselves. We seek you to help us live in peace. Let us be partners for peace,” Iqbal appealed.

Meanwhile, Iqbal said MILF Chairman Al-Haj Murad Ebrahim is expressing his condolences to the families of the so-called Fallen 44.

Iqbal clarified also that the MILF will no longer be a revolutionary movement once the BBL is finally passed into law by both the Senate and the House of Representatives.

“Once the final peace has been achieved, the MILF will no longer be a revolutionary movement, but a social movement,” Iqbal said. PNA

BusinessMirror news@businessmirror.com.ph A4

Economybriefs

govt agencies to get help on procurementTHE National Economic and Development Authority and the Government Procurement Policy Board will assist agencies in speeding up their planning and procurement to ramp up state spending and remove a major hurdle to sustained growth.

He said the agency collaboration and acceleration of public spending are crucial to meeting the growth targets for 2015 and 2016 from 7 percent to 8 percent.

He said that, although the Aquino administration is accelerating public spending beginning this year, government agencies and departments face major concerns in planning and procurement.

Abad said heads of key agencies and departments are expected to prepare their documentary requirements for fund releases before the end of February. Estrella Torres

bello to miaa: stop new ticketing schemeTHE House of Representatives Committee on Overseas Workers Affairs on Thursday adopted a resolution demanding that Manila International Airport Authority (Miaa) Chief Jose Angel Honrado desist from implementing the changes in the ticketing system that forces overseas Filipino workers to pay the P550 terminal fee. The resolution said that, if the Miaa would insist on implementing the new system, which took effect on February 1, Committee Chairman Rep. Walden Bello will file appropriate charges against all responsible Miaa officials. “The Miaa, by going ahead with the implementation of the International Passenger Service Charge, has disregarded the sentiment of all the stakeholders,” Bello said. Recto Mercene

Young, skilled and deter-mined job seekers in the Phil-ippines have an opportunity

to directly interact with companies searching for fresh talent at the up-coming Monster.com Philippines Virtual Career Fair (VCF). This is the fifth time Monster.com (Philippines), a leading online and career recruitment solutions provider, has run the popular event, taking place this month

from February 23 to 27. Combining a number of employ-ers with vacancies for a huge range of jobs, the career fair aims to vir-tually connect local skilled profes-sionals with new job opportunities. Companies participating in the upcoming VCF include a range of business-process outsourcing, In-formation Technology and Infor-mation Technology Enabled Service businesses, and more.

At the event, students and can-didates across industries and ex-perience levels, will have the op-portunity to communicate with top employers and speak with recruiters over Skype to find out more about available jobs. Participating compa-nies will have the opportunity to in-terview and interact with a breadth of talent in an environment that optimizes time and efficiency. To start linking up with recruit-

ers and HR teams from across the country and the world, budding job seekers simply need to register on Monster.com and upload their up-dated resumé. “The Monster.com Philippines Virtual Career Fair 2015 is an ef-ficient and exciting way for local job seekers to push their profiles to companies on the hunt for top talent—and they don’t even need to leave home to be interviewed,”

said Sanjay Modi, managing di-rector of Monster.com (India, Middle East, Southeast Asia and Hong Kong). “The dynamic talent market and flourishing economy in the Philippines means more com-panies than ever are looking for new people to join their growing businesses. Job seekers, who take part in the Virtual Career Fair, are more than likely to meet their

new future boss.” In addition to finding a new job, participants also have many chances to walk away with prizes and exclu-sive job opportunities. Monster.com’s ongoing selfie con-test asks job seekers to “Wake up the Monster Inside You!” by snapping a selfie—alone or with colleagues—with a caption on why they want to join the Monster Philippines Virtual Career Fair.

  “There is a consensus that the P9.10 per kilowatt hour [kWh] is no longer acceptable. We are still doing consultations on what is an appro-priate rate,” nREB Vice Chairman Ernesto Pantangco said.  The FiT is the per-kWh rate that

will be guaranteed to renewable-energy developers to ensure the vi-ability of their projects. Consumers shoulder the tariff through a new line item in their electricity bills.  It is the Energy Regulatory Com-mission that conducts the hearing

Friday, February 13, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

on the appropriate FiT rate for the 450-megawatt (MW) additional in-stallation for solar- power projects.  The Department of Energy ini-tially set the installation cap at 75 MW divided among run-of-river hydro with 250 MW; biomass, 250 MW; wind, 200 MW; and solar, 50 MW. The installation target for solar was already adjusted to 500 MW.  Energy Secretary Carlos Jericho L. Petilla had said the proposed 450-MW increase in installation target for solar projects will only have a P0.02-per-kWh impact on consumers.  Pantangco said there was a “very strong resistance” on the FiT price. “I can’t say from whom, but the current thinking of some develop-ers is either P9.68 or P9.10. And, therefore, the challenge now is for us to determine what will be a mu-

tually acceptable feed-in tariff. It came out, we presented, in the last hearing with the ERC that, maybe, something below P9.10 per kWh…something like P8.95 per kWh,” Pangtangco said.  He said the consultation will help nREB determine an FiT rate that would be both encouraging for renewable-energy (RE) developers and affordable to consumers when passed on. “We want to encourage, but, at the same time, we want to temper the impact on consumers,” Pantangco said.  The nREB is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implemen-tation of the law, which granted fiscal and non-fiscal incentives to RE projects.

NREB holding consultationson FiT rate for solar energy

By Lenie Lectura

AN official of the National Renewable Energy Board (NREB) on Thursday said it

is now in consultation with industry players to arrive at a mutually acceptable feed-in-tariff (FiT) rate for solar energy projects.

Virtual career fair introduces new way to land jobs without leaving home

SUNRISE SUNSET

FULL MOON6:21 AM 6:00 PM

MOONRISEMOONSET

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TODAY’S WEATHERMETROMANILA

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FEBRUARY 13, 2015 | FRIDAY

HIGH TIDEMANILA

SOUTH HARBOR

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8:01 AM0.22 METER

TUGUEGARAO CITY 18 – 28°C

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TAIL-END OF A COLD FRONT AFFECTING NORTH AND CENTRAL LUZON.(AS OF FEBRUARY 12, 5:00 PM)

METRO MANILA20 – 32°C

Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring rainfall and cloudiness over affected areas. It is felt at the northern

hemisphere winter season.

Friday, February 13, 2015

OpinionBusinessMirrorA6

Philippine export growth: Better than the rest

editorial

THE full year and December 2014 Philippine mer-chandise exports were released on February 10. The National Economic and Development Au-thority reported that overall exports grew by 9

percent for the year and fell by 3.2 percent in December.

Typically, as when any Philippine economic data is reported, the “the-glass-is-half-empty-and-draining” crowd focused on the December drop ignoring November’s record high grow of 19.7 percent and September’s strong 15.7 per-cent growth. October’s numbers were the worst of the year at only 2.9 percent.

While we always need someone to throw cold water on any results to keep us from getting too excited about the Philippine economy’s performance, it seems psychologically hard to accept any Philippine strengths.

There is the attitude that everything is rainbows and sunshine outside our borders. No matter how bad our political and peace and order problems might be, no mention is given to the fact that Thailand has been under martial law since May 2014 with no sign of being limited in the near future.

PHL’s gross domestic product growth for 2014 was less than hoped for but Malaysia just reported fourth quarter growth way below expectations. As forecasts for economic growth in 2015 for PHL keep improving, Malaysia’s growth forecasts are being revised downwards.

Some of our economic commentators act like spoiled children who throw a tantrum when only getting one cupcake instead of two.

The amount of Philippine merchandize exports are nothing to get excited about. But considering the growth trend of global exports, our ‘one cupcake’ is impressive.

The Baltic Dry Index (BDI) is a number in US dollars issued daily that pro-vides “an assessment of the price of moving the major raw materials by sea.” The higher the BDI, the higher the demand for ships to transport raw mate-rials such as building materials, coal, metallic ores, and grains. The BDI is at an historic low of about 550 versus 2,000 in February 2014.

The costs of shipping bulk commodities have fallen to a near three-decade low, meaning that demand for these products is low also.

A similar index for the shipping of finished precuts is the Harpex Ship-ping Index which tracks container shipping rates. The Harpex now stands at 478, up from 378 a year ago. But the index has moved in a very narrow range since 2012 and has been virtually flat during that period. In 2009 the index was at 900.

Shipping rates are one of the best ways to monitor the amount of move-ment of raw materials and finished goods around the global. The growth for Philippine merchandize exports far exceeds global export growth. Exports, which make up about two-thirds of Thailand’s gross domestic product, rose 1.9 percent in December and actually fell by 0.41 percent for all of 2014.

The Philippines export “glass” is half-full and filling.

LAST year, the Commission on Higher Education (CHED) advised incoming college students to go for so-called priority courses which in their opinion (shared by the Department of Labor and

Employment, the National Economic Development Authority, and associations of colleges and universities) would lead to well-paying jobs because graduates of these courses were in demand. Among the CHED recommended college courses under the Information Technology category were multi-media arts and animation.

Voter education needs multimedia

In fact, a recent Labor Market Study by the Department of Labor and Em-ployment says that web designers and animators will be in demand until 2020. Apparently, the problem is that there aren’t enough applicants with the right skills and qualifications to actually fill this demand.

I can relate.The traditional notion of “voter

education” as being a simple matter of locking people in a room and repeatedly emphasizing the importance of the right of suffrage is fading fast. More and more studies, however, show that people re-spond better to less rigid forms of com-munication—particularly those that leverage modern technology. Remem-ber when the introduction of video into classrooms was all the rage? Well, even educational videos are now becoming old hat. Today, the cutting of education—

especially voter education—belongs to info-graphics, social video, and even memes. In a word: multi-media.

Which gives me a hell of a headache. The Commission on Elections (Com-

elec) isn’t a young organization and the available job positions are largely anachronistic. The vagaries of govern-ment employment policies exacerbate the situation by making it difficult to upgrade these positions, such that we still have plantilla items like “Arts and Crafts Helper,” when we ought to have multi-media artists and social media specialists.

With more than a third of the vot-ing population coming from the youth sector, the battle for the electorate’s at-tention—and thus, comprehension—is inexorably moving away from exclusive reliance on face-to-face seminars and the pen-and-paper paradigm of the arts

and crafts helper, towards the marriage of digital technology with more tradi-tional art forms.

Without a doubt, this multi-media paradigm is what voter education needs if it is to truly make an impact with the electorate of today. Infographics that deliver more information in one glance than an entire hour’s worth of lectur-ing; digital short movies that are so entertaining they get shared endlessly, carrying their educational payload, as it were, to more people than would fit in any auditorium; and audio-visual presen-tations that can be uploaded online and replayed on demand, to any audience, anywhere in the country.

There are enlightened amateurs in the Comelec trying to achieve these things, certainly, but nothing replaces trained professionals.

According to filmmaker Ryan Abel-edo, who is also the Chairperson of the Multimedia Arts program of iAcade-my—a college that focuses on busi-ness, computing and design—there is a demand for multimedia artists because their skills are useful in any field, in-cluding advertising, journalism, archi-tecture, film and entertainment. And, might I add, government communica-tions—particularly voter education. Abeledo knows his stuff too. Appar-ently, about 96 percent of his program’s graduates land jobs almost immediately. Except that none of those jobs seem to be with the Comelec, which isn’t exactly a surprise.

According to a Department of Labor and Employment study in 2012, art di-rectors have the highest-paying jobs in

the Philippines with an average possible income of about seventy-thousand pesos a month—hardly the pay scale of a gov-ernment institution.

Rather ironically funny, if you think about it. This kind of successful and lu-crative career as a multi-media artist is actually possible now in a way that it never was. Artists no longer need to rely on selling canvasses and finished pieces; they can use their talents in the corpo-rate setting—in fact, the industries are in need of artists. Opportunities do not lack for anyone interested in making a career out of what might have been just another hobby. All they need is the right sort of training to hone their skills to a competitive edge, and a push in the right direction.

Hopefully, someone will push them towards government service.

So, there’s the rub. This palpable lack of uniquely 21st century skills – for lack of a better term—significantly affects the Comelec’s ability to effectively com-municate with the public it serves. This is a serious handicap that, to my mind, is every bit as crucial to the Comelec’s ef-forts to live up to its mandate. Good com-munications, after all, is the bedrock of credibility, and credibility is the beating heart of any electoral management body.

International book giving dayBY the way, while most people are look-ing forward to the 14th of February as Valentine’s Day, not enough people know that tomorrow is also International Book Giving Day. I suggest mashing the two together and, instead of chocolates, giv-ing your significant other a book.

spoxJames Jimenez

HOM

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Friday, February 13, 2015

OpinionA7BusinessMirroropinion@businessmirror.com.ph

annotationstito Genova Valiente

THERE is something playing in my mind. It is not a song or any kind of music. On regular days, this something would have been the down-but-certainly never out-blues of

Billie Holiday or the deadly swing of Ella Fitzgerald. Something else is occupying that space between memory and irritation: it is the sound of voices of those participating in the continuing hearing of what happened in Mamasapano.

THE Philippine Stock Exchange (PSEi) continued its upward trend in the first six weeks of the year. Bouyed by the strong recovery of the Philippine economy in the fourth quarter

of 2014 and the sharp decline of inflation, the PSEi has reached 7,801 points or a growth of already above 7 percent in the first week of February.

Graded recitations for truth and justiceSeparating the market from the politics

See, even my regular, engaging music takes a backseat. As all now take a backseat as senators and po-lice officers once more go through the motion of clarifying things.

We have forgotten already the jubilation and exhilaration that the papal visit has brought to us. No one talks about the Department of Social Welfare and Development (DSWD) failing to deliver services. People—and critics—have forgot-ten about Dinky Soliman and her inability to provide resettlement. Fans have relegated to the back-ground the massive matrimonial festival of Dingdong Dantes and Marian Rivera, the latter presently back with Eat Bulaga, dispensing capital in deep pink wallet.

We have forgotten everything because our heart demands, or so we think, that we honor and re-member the soldiers who have died in that open field. Soon, we will also forget about them. Unless you are a fan of Alden Richards who is said to be being considered to play one of the policemen who died there in Maguindanao. We can only guess and although we may be correct that the actor will play one of the more matinee-idol looking Fallen Cop.

Soon, we will forget the Fallen 44 and just remember the film that immortalizes them...if the film does push through. Who will play the MILF? Who will play Purisima? Who will play Mar Roxas?

Some people think it is cheap to do this film when things have remained unresolved.

Already, students of the English language are learning more about the difference between “order” from “advice.” Some wags on the Internet have circulated via the social media how restaurants have banned Purisima from entering their premises. How will Purisima order food? If the food comes, it is possible that he refuses them be-cause it was by mere advice that he asked for the food?

During the hearing, the senators are pitted against each other rather than against the senior police officers recalling what happened that day in Maguindanao. As with all events that demand talking, the fluent ones win. Grace Poe and Bam Aquino have clean, clear sounds. Aquino, for one, is conscious of the time element. At a certain point, Ms Poe wh9 has the burden of being called Madam Chair

(visualize the furniture), calls Mar Rozas, who proceeded to narrate first how they and a particular po-lice officer have worked in the past and how their respective spouses felt jealous about their affinity to each other. These are words that do not have a place in a hearing about botched police operations. But in this country, in our culture, humor and sordid jokes take the place of pream-bular statements.

Judgment call. The Free Dic-tionary defines judgment call as “a decision someone has to make us-ing their own ideas and opinions.” To Simon Bolivar is attributed the quotation: Judgment comes from experience, and experience comes from bad judgment.”Be that as it may, judgment call seems to be dis-paraged as the hearing continues.

At this level, it is only just 3 per-cent short of our conservative esti-mate of a 10 percent growth this year. People have began to ask—how far can it go? Are we rising too fast, too soon? These are valid questions con-sidering that on the political front, the country is facing a serious chal-lenge in relation to the peace process and a strong public sentiment against what happened in Mindanao.

In the past, issues much weaker than what we are currently facing will have already spooked the mar-ket. However, what we are seeing is that the market is discounting all these negative news. In fact, before the second address of the President last Friday, the market again reached another all time high. Do these cur-rent movements validate our asser-tion than the Philippine economy has reached a level of maturity that separates politics from its underly-ing fundamentals?

In our Eagle Watch briefing last January 22, we said that the Philip-pine economy in its base condition has already breached its generational growth of less than four percent. Sans government expenditures and a weak performance of the agriculture sector, the Philippine economy will already grow at about 5.5 percent. Compared to our Asean neighbours growth spurts in the 1990s, this is still slower. But considering the sce-nario of just following the normal business cycle, this is considered strong. This could drastically change when government expenditures in-crease again this year (most likely due to the revision of the DAP rul-ing) and as agriculture enjoys an El Niño-less year.

Moreover, the Philippine econ-omy is just beginning to reap the benefits of the successive invest-ment upgrades. Foreign direct in-vestments (FDI) probably hit more than $6 billion last year and again poised to increase further this year. In fact, the last three years has seen the return of Japanese investments in the country. Mitsubishi has estab-lished a vehicle manufacturing plant, not an assembly plant, in Santa Rosa (this was the same plant that was inaugurated by the President during the arrival of the slain Special Action Forces personnel).

Foreign investment houses are also looking at the Philippines be-

yond its politics but at the core of its uniqueness in its economic structur-al—remittances and business pro-cess outsourcing. These are indeed confidence building scenarios that cannot be undone by politics quickly.

These are fundamental bases that provide upward traction to the stock market that counts and discounts news on a daily basis. The current level of the market already puts it at an expensive 19 times price-earnings ratio, much higher than Thailand’s 14 times and Indonesia’s 17 times. But all three are reflecting faster pace of market growth at this early stage of the year.

Definitely, these three markets are being aided by uncertainties in the global markets particularly what is happening in the Euro zone. Compared to that region, these three economies are far better in managing their internal finances. Nonetheless, among the three, the Philippine stock market stands out. These last few weeks have seen strong net foreign buying and that have been pushing up the peso close to the 44.00 range. These are signs indeed of strong confidence.

Overall, we can say that indeed the Philippine economy as mirrored by the Philippine stock market has extricated itself from being seen as a fragile investment destination. This way, it has allowed investors to look at its long term fundamentals and structural uniqueness separate from its political challenges. All the current data are pointing to it ben-efiting from a global investment ad-justment and benefiting more from investment upgrades in the perspec-tive of investment quality.

Although it can be said that the market is already expensive, there remains some upside since investors are waiting for the full year reports of major companies that could help cement perspectives and confidence for 2015 and beyond. At some point, there will be expected weakness within the year to pause from its high points and this is not because of politics. Nonetheless, we see that the stock market will start taking politics into consideration once the election month comes closer. As it is, the announcement of candidacies by October will be a good gauge to see if really the market has separated itself from politics.

A police officer is asked about his decision and is made to determine whether that is part of his judg-ment call. The officer then says, no. The decision is doctrinal. I do not recall whether the officer is ever asked to differentiate about judgment call and doctrinal deci-sion, or decision that is based on what is taught in police academies or military schools.

How long will this these hear-ings be? How long will police of-ficers and other witnesses be ad-dressing senators as “Your Honor.”

When people get tired of the Mamasapano tragedy, the hearing will be against presidents who are

accused of plunder and senators incarcerated. By that time, other witnesses will be addressing sena-tors who are left in the tribunal. By their position, the senators will be honorable and will thus be ad-dressed by the appellation “Your honor.” They will be arrogant and loud as they stop witnesses on their tracks. They will not tolerate an-ecdotes and will insist on answers that are either “yeses” or “noes.”

By the middle of this year, the movie about the Fallen 44 shall have been finished and the rewards shall have been given to those who were left behind by the cops. If the film is not made, then biop-ics of the better-looking cops will surface during the Metro Manila Film Festival. By that time, which is late December, the word “boss-ing” would have assumed a deeper, more political, strategic meaning.

By that time, we shall have added to our daily vocabulary the follow-ing words: chain of command, grid, and coordination.

By the end of this year, many more operations would fail because we failed to coordinate.

In the meantime, the President of the Republic of the Philippines is quiet. There are other news getting our attention, like the surrender of Mancao and the Lacson possibly running for president again.

E-mail: titovaliente@yahoo.com

The Right Honourable Alderman Alan YarrowThe Lord Mayor of London

I AM delighted to have the opportunity to visit the Philippines and strengthen the ties that bind our two countries. As Lord Mayor of London I spend almost one third of my year overseas,

acting as an Ambassador for the UK’s expertise–particularly, but not exclusively, in the financial services sector–and exploring ways in which we in the UK might be of use to other countries. As we continue to look beyond the EU for the bulk of our trade relationships, cultivating networks with dynamic, fast-growing countries is crucial, and an opportunity we simply cannot overlook. The Philippines is an important regional partner for the UK and we are keen to support its growth.

A catalyst for deeper links

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across a wide variety of sectors. Total two way trade between the Philippines and the UK in 2013 was £1.1billion. In the past year, we have supported British firms in retail, food and drink, education, health-care, engineering and infrastructure explore potential business and secure local partners. Two of our biggest banks HSBC and Standard Chartered Bank have been operating in the Philippines for over 100 years, while companies such as Unilever, Shell and Pru Life UK are significantly ex-panding operations and generating jobs, all demonstrating deep roots in and commitment to the market. These encouraging trends show the tremendous benefit to both our coun-tries that could come from increasing trade across the economy.

However, to truly tap into the growth potential of the wider econ-omy, it is crucial to have a strong fi-nancial services industry. Expanding banking, insurance and legal services

provision encourages growth in the wider economy as business gain ac-cess to capital to enable them to grow–supporting loans for SMEs, driving entrepreneurship and ex-panding technologies. These are the building blocks for any economy. I am therefore very glad to see the imple-mentation last month of the Philip-pines Banking Liberalisation Act, which will drive the development of this sector. I hope that it will be followed in future years by opening up the financial and other service professions to non-Filipinos, so that people as well as corporations have the freedom to operate in this sector.

A unique feature of London as a financial centre is its international appeal. Reinforcing the UK’s position as Europe’s number one investment destination, there are over 900 for-eign owned firms in the financial services sector, and the City is home to more foreign banks than any other centre, including banks from

the Philippines. As Philippine com-panies grow stronger and look for expansion opportunities overseas, London’s depth of expertise can help enable growth, and raise capital to fuel further expansion.

Two areas of specialist expertise of particular relevance to the Philippines are Islamic finance and infrastructure financing. The City’s growing range of Sharia-compliant financial prod-ucts has led to London’s place as the European centre for Islamic Finance, with $19billion of reported assets. Increasing co-operation in this area can help the Philippines capitalise on new economic opportunities, includ-ing helping to unlock the economic dividends of peace in Mindanao.

The UK is also the world’s leading expert in infrastructure and PPP–from financing to delivery. UK com-panies consistently deliver large-scale projects successfully and on time–as demonstrated by the 2012 Olympic Games and the 2014 Commonwealth

Games. Partnerships between the Philippines and the UK can help create the links necessary for success by in-troducing clients to the most suitable suppliers. Design and construction is only half the picture: London’s host of world-class law firms and banks can also help make sure infrastructure developments are properly financed and legally protected.

Finally, while I am here leading a delegation of British businesses keen to engage more deeply with the Philippines, I am also here to bang the drum for Britain as an inward investment destination. The City of London and the UK are open for business, with a diverse range of opportunities and a thriving cul-tural centre that rival anywhere in the world. I hope that this visit provides a catalyst for deeper links between our nations, and enables our business communities to work more closely together to reach our economic potential.

As Manila develops as a financial centre, developing its partnership with London–the world’s most in-ternational financial centre–will be crucial. I hope I can do my part to help develop the relationships nec-essary to allow this to happen as I meet ministers and leading industry figures to exchange views. Discus-sions between British and Filipino

business leaders will form a central part of my visit, and I want to leave the Philippines having contributed to increased bilateral trade and having advised our two governments of in-stances where policy or government-led changes could support this objec-tive, and promote mutual prosperity.

This is an exciting time with op-portunities for both our countries

Already, students of the English language are learning more about the difference between “order” from “advice.” Some wags on the Internet have circulated via the social media how restaurants have banned Purisima from entering their premises. How will Purisima order food? If the food comes, it is possible that he refuses them because it was by mere advice that he asked for the food?

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2ndFront PageBusinessMirror

www.businessmirror.com.phFriday, February 13, 2015

P130-B PPP dealsawarded since 2010

By Cai U. Ordinario

THe government has already awarded P130 billion worth of public-

private partnership (PPP) contracts four years into the Aquino presidency, the PPP Center disclosed.

Lopez group to allocate₧600M for digital push

Court sends Korean Air nut rage exec to prison for 1 yr

By Lorenz S. Marasigan 

The broadcasting arm of Lopez holdings Corp. aims to solidify its lead in the digital television arena by invest-ing more than half a billion pesos in infrastructure and

programming rights this year to strengthen its network’s digital coverage in key cities in the Philippines. After the successful launch of its digital box ABS-CBN TV-plus on Wednesday, executives of the media conglomerate said the company now intends to cement its primacy on the digital space by capturing roughly 5.1 million television-viewing homes in the next couple of years. “We started to invest in digital space in 2008. Our investment since then is pegged at P3 billion, which covers Mega Manila, Central Luzon and North Luzon. Definitely our focus is on ar-eas where our signal is not that strong,” ABS-CBN Group CFO Rolando P. Valdueza said. he added that, “As we grow—and we’ll grow nationwide—definitely it will require some additional investments. This year, we have to go to other provinces, like Cagayan de Oro, Bacolod, Iloilo and Davao, the key cities and other provinces. Based on our estimate, it will require about P600 million.” The investments needed to completely “digitize” the entire country would be higher, he said, noting that his company will still have to study how the market responds to the initial offering. “The midterm goal is to hopefully address the areas where we have bad signal. hopefully, there will be upward movements on ratings, which, hopefully, translate to higher revenues,” he said. ABS-CBN TV plus is currently available in areas, such as Metro Manila, Rizal, Cavite, Laguna, Bulacan, Pampanga, Nueva ecija, Tarlac, Pangasinan, Benguet and Metro Cebu. ABS-CBN Conver-gence Inc. President Carlo Katigbak said there is a huge potential in the digital space, explaining that the new offering would not shrink the market of cable operator Sky Cable Corp. “There are 17 million TV homes in the Philippines and 50 per-cent of that doesn’t get a good TV signal. In a worldwide sense, pay TV accounts for 60 percent the total TV homes. We are far from that. There is room for growth for both,” he said. “The cur-rent coverage for TVplus is only 30 percent of the total market. So, we will have 15 transmitters, all in all covering roughly 30 percent of the TV households.” The new technology promises to deliver “dramatically clear picture and sound that is comparable to seeing a movie on DVD, a far cry from the prevailing analog system.” ABS-CBN TVplus also airs four more exclusive free-to-air channels that cater to different audiences, plus all the free TV channels available via digital transmission. Valdueza said his company is aiming to sell 1 million set-top boxes this year, noting that each digital box costs P2,500, but requires no monthly dues. “We are looking at exploring other potential business models for the box,” he added. ABS-CBN is the first TV network to offer the product in the country, a few months after the National Telecommunications Commission released the implementing rules and regulations for the country’s migration to the Japanese standard for digital terrestrial television broadcasting.  There will be a “transition period” during the implementa-tion of the new standard. This means that both digital and analog transmissions will be used at the same time. After a few years, the regulator will terminate all the analog television services in the country.

ASeoul court on Thursday sentenced a former Korean Air executive to a year in prison for aviation law violations that stemmed from her inflight tantrum over how she was served

macadamia nuts. Cho Hyun-ah, the daughter of Korean Air’s chairman, achieved worldwide notoriety after she ordered the chief flight attendant off a December 5 flight, forcing it to return to the gate at John F. Kennedy Airport in New York. Head of cabin service at the time of the incident, Cho was angered she had been offered macadamia nuts in a bag, instead on a dish. A heated and physical confrontation with members of the crew in First Class ensued. The court said Cho was guilty of forcing a flight to change its route, obstructing the flight’s captain in the performance of his duties and forcing a crew member off a plane. It found her not guilty of interfer-ing with a transport ministry investigation into the incident. Cho, in custody since December 30, wiped away tears with a tissue as a letter expressing her remorse was read to the court by head judge oh Seong-woo. It included details about how Cho, one of the richest women in South Korea who regularly flew First Class, was adjusting to the basic conditions in prison and reflecting on her life. “I know my faults and I’m very sorry,” Cho said in her letter.

Documents showed that the amount covered nine PPP proj-ects, the largest of which is the Light Rail Transit (LRT) Line 1 Cavite extension and O&M that is worth P64.9 billion.  Other big-ticket proj-ects were the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; P16.28-bi l l ion PPP for School Infrastruc-ture Project (PSIP) Phase

1; and the P15.52-billion Ninoy Aquino International Airport expressway Phase 2 project.  Apart from the awarded contracts, the PPP Center reported that 13 projects are now undergoing bidding. Of the list, only the Integrated Transport System-South Ter-minal Project is in the bid-submission stage. 

See “PPP,” A2

See “Korean Air,” A2