He said LT Group’s profitability depends on the performance of its tobacco business. Tan said the company’s liquor business, under Tanduay Distillers Inc., is recover-ing well; while its banking business, under Philippine National Bank, the country’s fifth largest, is still in consolidation mode due to lower trading gains this year. In January last year distilled spirits like rum, which Tanduay manufactures and has the market dominance, were taxed 15 per-cent of net retail price on per-proof basis, and another P20 per-proof-liter tax. Taxes are set to increase to 20 percent of the net retail price by January. “But the overall prospect [on tobacco] is good. That’s more important,” he said. Tan’s group holds 49.6 percent of Philip

By Cai U. Ordinario

The country can expect better economic growth next year on

the back of cheaper oil prices, according to the National economic and Development Authority (Neda). 

Socioeconomic Planning Secretary Arsenio M. Bali-sacan said lower oil prices will likely lead to cheaper nonagricultural commodities, which will subsequently ramp up the country’s already strong consumption level. This is a positive development for consumption-driven economies like that of the Philippines. “The effect should be favorable to the economy and that should further reduce inflation, especially for non-agricultural goods,” Balisacan said.  “When inflation decreases, everybody has a sudden increase in purchasing power, [which] would result in higher economic activity; so it should be favorable to the economy,” he explained.  Balisacan said this favorable effect on the economy

By VG Cabuag

THe holding firm of tycoon Lucio Tan said the rebound of its income in 2015 is hinged on its tobacco

business, which currently dominates the Philippine market, but took a heavy beat-ing from the implementation of the higher excise taxes. Michael Tan, president of LT Group Inc., said the good thing is that the government is now “taking seriously” the company’s claims of illicit trading of cigarettes result-ing from the increase in taxes implemented by the Aquino administration in 2013. Another round of increases is expected by January next year. But Tan said, during the previous over-sight hearings in Congress, that the illicit Continued on A8

www.businessmirror.com.ph n Tuesday, November 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 4 sections 20 pages | 7 days a weekn Friday, december 26, 2014 Vol. 10 No. 78

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 44.6520 n jaPan 0.3719 n uK 69.5901 n hK 5.7573 n china 7.1769 n singaPore 33.8735 n australia 36.3616 n eu 54.5960 n saudi arabia 11.8958 Source: BSP (23 December 2014)

Continued on A2

Tobacco business key to LT Group’s 2015 reboundsony oPts to release‘the interView’ online

Sony Pictures’s comedy The Interview was released online on Wednesday. The studio struck deals to make the movie available on Google Play, youTube

Movies and Microsoft’s Xbox Video for rent and purchase. The movie has also been made available through a stand-alone site, www.seetheinterview.com. Rentals cost $5.99, while customers can pay $14.99 to buy the movie. This comes a day after the company authorized a limited theatrical release of The Interview through mostly independent cinemas on Christmas Day. More than 300 theaters will be showing the movie, Sony said. Sony had previously canceled its plans for a Christmas theatrical debut, after major theater chains opted out of showing it following threats of violence from hackers. Sony Pictures Chairman and Chief Executive Michael Lynton said the company initially contacted Google, Mi-crosoft and others on December 17, the day it canceled its plans for a wide release of The Interview on Christmas Day.

‘Cheaper oil means faster growth’balisacan says lower cost of goods to boost Phl’s consumPtion-driVen economy PAPAL VISIT 2015

19 DAYSINSIDE

the joys ofreturningfrom Vacation

fighting for surViVal

C1

Life � ursday, December 25, 2014BusinessMirrorEditor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

JOLIE ON ‘UNBROKEN,’

THE COENS AND ACTING WITH

PITT AGAIN »C2DEAR Almighty God, particularly this Christmas

Day, we truly believe Your love for us. That You are the Creator of all and the source of every gift.

We sincerely ask that Your will be done all around us. That it be the foundation of Philippine society and other parts of the world. That we see Your Commandments as describing universal human morality, bringing to light the essential duties and fundamental rights of the human person. Our faith in the Almighty God, we proclaim. Amen.

Almighty God

JO A. SALDANA AND LOUIE M. LACSONWord&Life Publications • teacherlouie1965@yahoo.com

B J SThe Record

SOMETIMES I wonder why I even bother going away. First there’s all that stress getting ready to go, to leave the house, with exactly everything you will need.

Then, of course, there’s the coming home.OK, sometimes I’m actually glad to leave somewhere.Like, places with too many snakes.Or the Hotel (I’d call it Hostel—even Hostile) Brian

in Amsterdam, where I got a room with a woman from Australia I’d spent 12 hours with on a train. A woman who, when I came in from my first night in the city, had locked the door and told all the people standing around it to go away, she had a knife. The manager, who was in the crowd, was actually trying to cajole her to let me in. That was a situation I would have been happy to trade for home. But really, any escapade (snake-infested tent or knife-wielding bunk mate) you can walk away from has its...charms. Or at least its travel memories potential. Coming home only brings known bummers—the mail, the work, the post-vacation bank balances, the bad news held back so it wouldn’t ruin your trip (roof leaks, dog needs knee surgery) waiting for its turn in the gut-punch greeting line.

On my recent return, as on most homecomings, I did remember that there are advantages waiting in regular life. Aspects of regular life that are, really, gifts. Some big, some small. Some may even be silly to others, but to you, they are gifts.

Coming home reminds you there are things to appreciate in your life. Things you should be grateful for but have come to take for granted.

For me, that would be:■ Fruit: In all but...say...Thailand or Singapore,

I usually go fruit-deprived. First, there are all the countries where you really can’t eat anything but fruit you peel yourself for fear of germs. Then there are the

countries where the water is fine but somehow it is never the season for, say, a decent apple or grapefruit. Or the fruit that looks decent is some mystery price, a combination of kilograms and euros that always seems to wind up costing $3 apiece.

Too much to take a chance on. Produce markets, yeah, that works, but usually I avoid them so I don’t see the live animals sold there. No, give me my market with its astonishing array of fresh fruit, gotten from somewhere in the world, any time of year for a price that, if not cheap, is at least easy to understand.

■ The bathroom: Handles and faucets I don’t fear touching. A seat I will sit on without first arranging little squares of toilet paper (if there is toilet paper).

A door I know will remain shut. Plumbing I know how to operate.

■ My TV: I can pretend I want to be edified with the latest news, but really, I sometimes like to take a break with Forensic Files, Real Housewives or even The Voice. It seems every hotel TV today boasts a litany of news stations, followed by a spate of sports stations. Then you return to the menu with its $15 movies.

■ Free market prices: Guests, travelers, we are hostages, a captive audience. Which is why hotels can demand $15 for a movie, and I’m sure some people pay for it. Every time I go out for a meal I know I’m spending too much. At home, I have some say in what I spend, and where I’ll get the best value for my buck,

■ No more navigating: Maps, apps, anything I use to get from square A to B on a trip, it’s all taxing and nerve-wracking to me. Or anyone navigationally challenged, I suspect. And since I’m alone, I know I have to rely on this less-than-reliable part of my brain. Getting lost can be fun. Trying not to get lost stinks. I come home. Fire up the Google maps in my car and poof, I just do what it tells me.

■ My Wi-Fi: No more being at the mercy of other servers, asking for the password, typing in some string of numbers and letters that are case-

sensitive. At home, I turn on the laptop and poof, I’m connected. It’s as if all those little filled-to-the-top bars are waving “Welcome home!”

■ Places for my stuff: I love exploring, but I know it comes at a price. Seeing new things, enjoying the discoveries, requires a reallocation of attention—just when you need to pay more attention to certain basics. Like all the stuff I bring for exploring. Travelers lose stuff. I don’t mean a mitten, though even that can have consequences. I mean like a camera, or even just a lens or an SD card; a cell phone, a wallet, a passport, a credit card. You name it, you can lose it.

Back home, I’m not only carrying fewer important things all at once, but I’m less distracted. Plus, I can usually find anything I’ve lost somewhere under the seat in my car. These are just some of the joys of life at home. Of course, there are the macro-joys. Like coming home from a place where they still really have no toilet paper—or running water.

■ There are radical differences in scenery: In Paris, I could look out my windows on the Seine and beyond and watch the nuances wrought by each moment of light and dark. Here, windows with a view of hillsides changing color with the season, and nuthatches bickering, and the brass ring view of a pileated woodpecker or Carolina wren visiting my feeder.

Even your ears have to retune. I love the music of other languages. I miss speaking French and having other people actually understand me.

But nobody really gets me, gets the nuances, like the people back home, who listen and want to understand, even when I make little sense.

Oh, and yeah, who needs words anyway? (How quickly we forget). I find plenty of surrogate canines to pet when I’m on the road—especially in Paris. But their memories fade when I open the car door at the airport and there stand one-eyed Sadie and knee-hobbled Belle, barking and tail-waving a welcome home that makes the coming home worth the going away. ■

B M TTribune News Service

LET’S face it. Winter is a season when the vacation calories tend to add up quickly. Luscious bisques, gingerbread and steamy, cold-weather cocktails stand ready to derail our diet plans at every turn. While you may not want to keep too close an eye on your calorie consumption during your vacation, there are some simple ways you can shave off a few. Whether you use that extra wiggle room to work in that post-dinner cheesecake is entirely up to you.

■ Sipping: Choosing your mixer carefully is one way to save calories while sipping your favorite spirit. Tomato juice for example, allows for a tasty mixed vodka drink with far fewer calories than an orange juice equivalent. Similarly, remembering to ask for diet tonic water instead of regular with your gin is a slimming choice. If the venue you’re visiting doesn’t carry diet tonic water, consider replacing it altogether with soda water. Skipping the mixer completely is another winning way to watch your waistline. Bourbon, infused vodkas and red wine are all options you can use with this strategy. The fact that they are meant to be sipped and enjoyed slowly means thrift is naturally built in to the experience.

■ Supper: There’s nothing wrong with ordering a memory-making entrée on a trip, but there’s belt room to be carved out with disciplined choices for the first course. Skipping the deep-fried appetizer in favor of a cup of the vegetable soup or a small house salad can take the hunger pains off just as well.

I’ll be the first to admit I could be more consistent with this myself. At a recent date dinner with my husband at P.F. Chang’s, however, I transcended my obsession with their fried green beans and opted for the steamed edamame instead. I have no idea if I’ll be so disciplined next time, but I felt good about making the choice in the moment. Other options for vacation-worthy dining include opting for the sorbet instead of the ice cream, the baked potato instead of the fries, and ordering your salad dressing on the side.

■ Snacks: Because we travel a great deal with our dog, we tend to snack a fair bit in the room rather than find a pet-friendly happy hour at the end of a long day on the highway. Grabbing a tub of hummus or gu acamole to pair with a package of pre-washed green beans and some ridged carrot slices gives us a satisfying treat without the calories from potato chips.

We’ve also shaved calories by opting for mini pretzels over flavored crackers, packing pitted dates and grabbing packages of almonds and walnuts from the baking aisle of the nearest grocery store to our hotel. Don’t get me wrong. We do go out fairly often for late afternoon snacks. However, when both time and energy are in short supply it pays to have a few basic food strategies in your repertoire.

ASK any person who’s been to Singapore what they love most about the country and the answer will most likely be one of three things: the food, the shopping, or the attractions. While all are valid in their own right, these reasons are only the tip of the iceberg.

Known as the home of underground shopping malls, Michelin-star and celebrity-chef restaurants, architectural wonders, and some of the first, newest or biggest attractions in the world, Singapore is also a country that offers visitors just as many options after dark as it does when the sun is up.

Whether it’s grooving to the beats at one of the many prestige clubs or downing designer shots and bespoke cocktails at hidden bars, guests will find a vast range of options to keep them coming back for more. Singapore promises a night to remember for friends, couples, and families seeking exciting,

meaningful experiences, with a host of remarkable events lined up for the next few months.

You can choose to spend the night sampling creatively delightful cocktails crafted by award-winning mixologists such as Peter Chua of 28 Hong Kong Street, Jeff Ho of Jekyll & Hyde and Ethan Leslie Leong of Maison Ikkoku; or explore the exclusive speakeasies such as the password-protected The Library; the unassuming basement-level location of B28, and the hidden bar The Secret Mermaid that serves unique American craft spirits. Want to party hundreds of feet in the air? Then head over to one of the city’s wildly popular rooftop bars like Loof, Lantern, or 1-Altitude, which towers over the city at a full 282 meters.

Taking in the vibrant performing and visual arts scene should also be on the list when you visit Singapore.

Exhibitions from both local and

international artists abound in the numerous galleries that pepper the city, while hit plays and musicals are onstage for theater enthusiasts. Resorts World Sentosa’s fantastic lineup of hit shows and musicals for the whole family include the classic Peter Pan and The Never Ending Story, both of which go onstage until January 20, 2015.

“Whatever kind of entertainment you are in the mood for—be it watching live music concerts or festivals, musicals or plays, or drinking it up at hidden speakeasies—Singapore is a must-visit destination to experience high-quality entertainment content,” said Adrian Kong, area director for the Philippines and Brunei Darussalam of the Singapore Tourism Board. “In particular, we hope Filipinos will get a chance to experience the slew of local and international nightlife offerings and events for a fun-filled vacation.”

Singapore’s entertainment scene lights up after dark

The joys of returning from vacation

Calorie-savingtravel tips

CLINIC AND CONTEST BreadStory-Lyceum of the Philippines University players and officials, led by Coach Bonnie Tan and top gunners Dexter Zamora and Wilson Baltazar, pose with the beneficiaries of the Silong Tanglaw Foundation after conducting a clinic and shooting contest recently at the foundation’s shelter on Araneta Avenue, Quezon City. BreadStory players also donated some of their apparels to the 20 members of the foundation. The event was supported by World Balance, Gerry’s Grill, Frabelle Corp., TA Fresco Corp. and One World Music and Sports.

FIGHTINGFOR SURVIVAL

C3Friday, December 26, 2014

SportsBusinessMirrormirror_sports@yahoo.com.ph | sports@businessmirror.com.ph

By Tim Reynolds The Associated Press

MIAMI—For the third straight year, Paul Pierce will awaken to Christmas in New York. The feeling never gets old.

Playing on Christmas Day, when fans seem to begin paying more attention to National Basketball Association (NBA) as American football winds down, is still a big deal to players. Pierce is trying to make sure that the Washington Wizards understand the significance. Of the 14 players in the Washington squad, eight have never played in a Christmas game. Pierce has played in five, not including two others that he missed because of injury. “By Christmas, you should know what type of team you are,” Pierce said. “You should have an identity. Around Christmas, this is the time you should be showing everybody, ‘This is who we are.’ You’re in it or you’re out of it. This the time for the rest of the league, the rest of the world to find out, this is who we are.” Here’s who the Wizards are: A contender in the Eastern Conference. Off to a 19-7 start, the Wizards are proving Pierce made the right decision when he raised eyebrows this past summer by deciding to move to Washington. They’re on pace for their best season in 30 years, are led by a point guard worthy of some Most Valuable Player buzz in John Wall, and have no one among the league’s top 25 scorers yet have six players averaging double figures. And now for the first time since 2008, the Wizards get to play on the league’s showcase day. “A lot of times, I’m opening presents with my kids the day before because I’m gone on Christmas,” said Pierce, who visited New York on December 25 in 2012, and was part of a home game with Brooklyn on the holiday last year. “Out of six or seven Christmas games, I’ve played at home one time. We’ve been on the road pretty much the whole time. “Sometimes you get to be there and open presents with your kids, and enjoy the day with them. But they get to watch Daddy on TV and know I’ll be coming home that night, so it’s fun.” Other players who also changed addresses this past offseason will also be playing on Christmas, including LeBron James and Kevin Love with the Cleveland Cavaliers, and Pau Gasol with the Chicago Bulls. And for the league’s biggest stars, playing is as annual an American rite as caroling and egg nog. If he plays on Thursday, Kobe Bryant of the Los Angeles Lakers will be taking the court on Christmas for the 16th time—just 17 points shy of getting to 400 on the holiday. Miami Heat guard Dwyane Wade is No. 2 on the active Christmas-scoring list, with 227 points in nine appearances.

» PAUL PIERCE is trying to make sure that the Washington Wizards understand the significance of playing on Christmas Day. AP

TALK ’N TEXT Head Coach Jong Uichico (right) and his wards have to bring something lethalto stop San Miguel Beer’s June Mar Fajardo (left) and Alex Cabagnot. KEVIN DE LA CRUZ

A RIGHT OF PASSAGE

By Joel Orellana 

TALK ’N TEXT Head Coach Jong Uichico is not losing hope despite facing elimination in the Philippine Basketball Association (PBA) Philippine Cup. Except for their blowout loss in the

semifinal series against San Miguel Beer, Talk ’N Text managed to stay close with

the loaded Beermen and were a basket away from winning Game Three

before yielding a 96-95 decision to fall to a 0-3 hole.

Uichico doesn’t intend to tinker with his game plan despite the

fact that they are fighting for survival in Game Four on Friday at the Mall of Asia

Arena at 7 p.m. “We will do the same thing. We know our backs are against the wall, but that’s how the game is. We’re here to play and try to win every game and hope to keep the faith,” Uichico said.

“The only blowout game was the first game. It’s not that they dominated the game. We’re in the game all

the time. Maybe we get lucky in the next game,”

the eight-time PBA champion coach added.            The Tropang Texters missed golden

opportunities in Game Three. They muffed 14 free throws (12-of-26) in the game. In Game Two where they also lost, 80-87, Talk ’N Text bungled 12 bonus shots (12-of-24). “Maybe, we should practice more with our foul shots,” he said. On the contrary, San Miguel Beer was all clutch in the end, hitting big baskets at crunch time and making a key defensive play with Arwind Santos forcing Ranidel de Ocampo to take a difficult attempt that was way off the mark. Uichico admitted the Beermen have too many weapons and they need to bring their best defense in Game Four to avoid getting trampled upon further. “We will try to keep them in the lowest score as possible. We have to keep on playing the game, keep on defending just like in the past two games,” he said. “We just need a win.” Meanwhile, San Miguel Beer is dead serious for a shutout and sweated it out in the gym during the holiday break. “We need to win four games. The chance is still there and we shouldn’t be complacent,” San Miguel Head Coach Leo Austria said. Austria is aware of the off-court drama that has made the series even more colorful and commended his players for staying focused each game. “The boys just didn’t lose their composure. We should be smart, we shouldn’t be affected. I told them to just do their job,” Austria added. While reigning Most Valuable Player June Mar Fajardo and Arwind Santos continue to provide solid games for the Beermen, Austria is also getting solid minutes from his bench, particularly on Rico Maierhofer, who had 10 points and five rebounds in 21 minutes in Game Three, and Alex Cabagnot at the point. De Ocampo (21 points), Jayson Castro (15), Anthony Washington (12), Jimmy Alapag (11) and Ryan Reyes (10) all hit double figures in the previous game and Uichico hopes others would contribute to stay alive in the series.

sPORTs C3

liFe C1

a View OF saGay a boy does a somersault on the beach of sagay City, Negros Occidental, home to the sagay Marine Reserve and considered one of the prime ecotourism destinations in the country. NONIE REYES

Continued on A2

TaN: “But the overall prospect [on tobacco]

is good. That’s more important.”

trading of cigarettes became an “undeniable fact.” This practice, he said, pulled down LT Group’s market share, as consumers opted for lower-priced brands. “Hopefully, both the Customs and BIR [Bureau of Internal Revenue] take actions,” Tan said.

SUNRISE SUNSET

6:18 AM 5:34 PM

MOONRISEMOONSET

9:54 PM 9:45 AM

TODAY’S WEATHERMETROMANILA

LAOAG

BAGUIO

SBMA/CLARK

TAGAYTAY

LEGAZPI

PUERTOPRINCESA

ILOILO/BACOLOD

TUGUEGARAO

METROCEBU

CAGAYANDE ORO

METRODAVAO

ZAMBOANGA

TACLOBAN

3-DAYEXTENDEDFORECAST

3-DAYEXTENDEDFORECAST

CELEBES SEA

LEGAZPI CITY23 – 29°C

TACLOBAN CITY24 – 31°C

CAGAYAN DE ORO CITY

METRO DAVAO24 – 31°C

ZAMBOANGA CITY24 – 33°C

PHILI

PPIN

E ARE

A OF R

ESPO

NSIB

ILITY

(PAR

)

SABAH

PUERTO PRINCESA CITY 24 – 32°C METRO CEBU

24 – 31°C

ILOILO/BACOLOD

24 – 31°C

25 – 33°C

24 – 30°C 24 – 30°C 23 – 29°C

23 – 31°C 23 – 30°C 23 – 30°C

24 – 32°C 24 –32°C 24 – 31°C

24 – 30°C 24 – 31°C 24 – 32°C

24 – 32°C 25 – 33°C 25 – 33°C

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM

on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

@PanahonTV

DECEMBER 26, 2014 | FRIDAY

HIGH TIDEMANILA

SOUTH HARBOR

LOW TIDE

8:17 AM-0. 19 METER

TUGUEGARAO CITY 20 – 27°C

LAOAG CITY 22 – 32°C

TAGAYTAY CITY 20 – 29°C

SBMA/CLARK 23 – 30°C

23 – 30°C 23 – 31°C 24 – 31°C

19 –28°C 19 – 27°C 20 – 28°C

22 – 32°C 21 – 31°C 21 – 31°C

14 – 22°C 14 – 21°C 15 – 22°C

20 – 29°C 19 – 28°C 19 – 28°C

22 – 27°C23 – 28°C 22 – 27°C

25 – 32°C 24 – 31°C

23 – 30°C24 – 31°C 23 – 30°C

23 – 31°C24 – 32°C 23 – 31°C

Partly cloudy to cloudy skies withisolated rain showers and/or thunderstorms

Cloudy skies with rain showersand/or thunderstorms.

HALF MOON

2:31 AMDEC 29

BAGUIO CITY15 – 23°C

24 – 32°C

NEW MOON

9:36 AMDEC 22 12:05 AM

1.14 METER

DEC 27SATURDAY

DEC 28SUNDAY

DEC 29MONDAY

DEC 27SATURDAY

DEC 28SUNDAY

DEC 29MONDAY

Light rains

Partly cloudy toat times cloudywith rainshowers

(AS OF DECEMBER 25, 5:00 AM)

DIFFUSED TAIL-END OF A COLD FRONTAFFECTING EASTERN VISAYAS.

NORTHEAST MONSOONAFFECTING NORTHERNAND CENTRAL LUZON.

METRO MANILA23 – 30°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 a�ected areas. It is felt at the northern hemisphere winter season.

Northeast Monsoon locally known as “Amihan”. It a�ects the eastern portions of the country.

It is cold and dry; characterized by widespread cloudiness with rains and showers.

Bonds. . . Continued from A8

BusinessMirror news@businessmirror.com.ph Friday, December 26, 2014A2

News

“We chose the path of digital distribution first so as to reach as many people as possible on opening day, and we continue to seek other partners and platforms to further expand the release,” Lynton said in a statement. “While we couldn’t have predicted the road this movie traveled to get to this moment, I’m proud our fight was not for nothing and that cyber criminals were not able to silence us,” Lynton continued. The company has been in talks with Netflix to make the movie avail-able on its popular video streaming service, according to people briefed on the matter. A deal to make The Interview available on Netflix, which counts about 53 million subscribers, has not yet materialized. A representative for Netflix de-clined to comment. Notably, major online services, including Apple Inc.’s iTunes and Amazon.com have not signed on to participate in the movie’s release. Pay TV companies also have not

announced plans to show the movie through their on-demand services. Sony had been in talks with satel-lite TV company Dish Network, but those talks fell apart. Sony has been trying to find ways to release the movie as the studio continues to deal with the reverbera-tions of a massive cyberattack that became public a month ago. Hackers calling themselves Guardians of Peace hijacked Sony Pictures’s computer systems and stole troves of sensitive data that were re-leased to the Web. US officials have blamed the North Korean government for the attack. North Korea has denied involvement, but has praised the hack and denounced The Interview, which depicts a fictional assassi-nation attempt on that country’s leader, Kim Jong Un. David Drummond, Google senior vice president of corporate develop-ment and chief legal officer, said Google had been interested in help-ing Sony release the film, but security was a concern. “Of course it was tempting to

hope that something else would happen to ensure this movie saw the light of day,” Drummond wrote in a blog post. “But after discussing all the issues, Sony and Google agreed that we could not sit on the sidelines and allow a handful of people to de-termine the limits of free speech in another country (however silly the content might be).” Microsoft also released a statement on Wednesday, saying it supports Sony’s decision to release the film in a limited number of theaters and through video on-demand outlets. “We support Sony Pictures En-tertainment’s distribution of The Interview in the US through limited theatrical release and video on-de-mand providers.… Our decision to support freedom of expression is consistent with our company val-ues,” the statement read. In a blog post, Microsoft General Counsel Brad Smith said that the company decided to participate in the release after “substantial thought.” “We’re not endorsing this movie or any other,” Smith wrote. “We are supporting the Constitutional right

of free expression, and we hope that by acting together, we will help deter other attacks.” Putting out a major Hollywood broad comedy out through on-de-mand vendors at the same time as a theatrical debut—known in the industry as a day-and-date release— is an unusual strategy, considering the film was originally intended for about 3,000 locations. The VOD release had some the-ater owners fuming on Wednesday, saying it would set a bad precedent and undermine traditional busi-ness models that have long given theaters exclusive access to major Hollywood movies. Joe Masher, COO for Bow Tie Cinemas, said he had ruled out showing The Interview in his 55 theaters in New York and five other states. “We don’t play VOD titles,” he said. “It has always been the nature of our business that we enjoy exclu-sive access to these films prior to their release in home video. We’re standing strong with our brethren in supporting that.” MCT/TNS

will already be evident starting in the fourth quarter of this year.  The country’s fourth-quarter and full-year economic performance numbers for 2014 are slated to be released by the Philippine Statistics Authority on January 29, 2015.   The decline in international oil prices has already caused a P1

reduction in the minimum fare for jeepneys, aside from several pesos of savings from fuel purchases.  Brent crude prices are currently testing the $60-per-barrel level. Prices recently reached $60.24 a barrel.  Earlier, economists said local fuel prices and transport fares may not go down anytime soon. University of Asia and the Pacific School of Economics Vice Dean Cid

Terosa said this would not immedi-ately translate into lower fuel prices. But lower fuel prices would not automatically mean lower transport costs as fares are regulated by the gov-ernment, according to University of the Philippines economist and former Budget Secretary Benjamin E. Diokno. Diokno also said the Land Trans-portation Franchising and Regulatory Board adjusts transport fares based

on Dubai crude oil prices, not on Brent. In the meantime, Diokno said the “biggest loser” in the decline in oil prices will be the government, be-cause taxes on oil and oil products will also decline.  The Bureau of Internal Revenue collects excise taxes from oil import-ers. An excise tax is imposed on the production, sale or consumption of a commodity in a country.

‘Cheaper oil means faster growth’Continued from A1

Continued from A1

SONY OPTS TO RELEASE ‘THE INTERVIEW’ ONLINE

CHINA appointed Miao Hua as the new political commissar of its navy, making him the most

senior official for a fleet that’s been put in the spotlight by ongoing terri-torial disputes with Japan, Vietnam and the Philippines. The PLA Daily, the official newspa-per of the People’s Liberation Army, published a report on Wednesday describing a meeting of military lead-ers that identified Miao, 59, as hold-ing the post. It didn’t elaborate on when or why Miao was named to the position. China is pushing to impose its sovereignty over islands off its eastern and southern coasts, put-ting its navy at the center of atten-tion. Double-digit increases in its defense spending have also fueled concern among China’s neighbors

that it will more aggressively seek to expand its regional influence. Domestically, Miao’s appointment comes as President Xi Jinping has pushed his campaign against corrup-tion into the ranks of the military. In July, China confirmed it was investi-gating Xu Caihou, a former vice chair-man of the Central Military Commis-sion, the highest military body, for bribery. During a tour of the Nanjing Mili-tary Area’s command earlier this month, Xi said the army should “learn a lesson” and “fully clear up the bad influence” left by Xu’s graft case, ac-cording to state media reports. Mili-tary prosecutors said in October that the retired general took huge bribes in exchange for promoting officials.

Bloomberg News

China names new navy chief

strength. “Many segments of the US economy have rebounded including robust corporate profits and consumer spending as well as the impressive dip in unemployment rate. At the local front, the lower-than-expected June 2014 inflation translated to lower premiums in holding Philippine debt papers. Meanwhile, the credit rating upgrade received by the Philippines from the Japan-based credit rating agency, R&I, likewise contributed in the narrowing of credit spreads during the month,” the central bank said. The narrowing bond spread, however, was not considered sustainable over the long horizon as debt spreads started to widen again in August this year. “The escalating tension in the Middle East, partictularly in the Gaza area, and the continued violence in the borders of Russia and Ukraine, drove safe-haven

bids for debt securities, driving yields of US long-term T-bonds down, which widened credit spreads further. On the domestic front, headline inflation accel-erated as most food items posted higher prices due to tight domestic supply conditions triggered by recent weather-related production disruptions, adding pressure for debt spreads to widen,” the central bank said. Debt spreads slightly recovered in the latter part of August up un-til early September but widened again on concerns the US Federal Reserve should soon make interest rate adjustments. The measure that tracks debt instru-ments in emerging markets under the Emerging Markets Bond Index (EMBI) + Philippines, averaged 138 basis points wider versus only 127 basis points in the second quarter. Bianca Cuaresma

news@businessmirror.com.ph Editor: Dionisio L. Pelayo • Friday, December 26, 2014 A3BusinessMirrorNews

In a nine-page decision penned by Associate Justice Vicente Ve-loso, the CA’s Special Tenth Di-vision held that the petitioner, lawyer Reynaldo Bagatsing, failed to substantiate his claim that the condominium buildings contrib-ute to the f looding of streets near Estero de Abad.

Bagatsing claimed in his petition that during the onslaught of Ty-phoon Pedring in September 2011, the area around and near Estero de Abad was submerged in floodwater. “But even if such evidence is established, still, no writ of ka-likasan can be issued here as the alleged environmental damage is

not of such magnitude to prejudice the life, health, or property of inhabitants of two or more cities or provinces,” the CA said. Bagatsing named the mayor of Manila City, the Office of the City Building Official, the Met-ropolitan Manila Development Authority and the Department of Public Works and Highways as respondents. But, the CA branded as “merely conjectures and speculations” Bagatsing’s claims as he failed to show concrete evidence to support his petition. “No competent evidence was presented to sub-stantiate the alluded environmental damage caused by the construction of the subject buildings, nor to categorically establish that the alluded flooding in the subject area can be attributed to herein respon-dents,” the CA ruled. “Bare allegations, unsubstantiated by evidence, are not equivalent to proof,” it added. Concurring with the ruling were Associate Justices Edwin Sorongon and Zenaida Galapate-Laguilles. The High Court defined the writ of kalikasan as a legal remedy available to individuals or groups, whose constitutional right to a balanced and health-ful ecology is violated or threatened with violation by an unlawful act or omission of a public official or employee, or private individual or entity.

CA denies writ of kalikasan vsEmpire East condo in Manila

By Joel R. San Juan

THE Court of Appeals (CA) has denied the petition filed by a lawyer seeking the issuance

of a writ of kalikasan to arrest the alleged deterioration of the streets and surroundings near Manila Zoo due to Empire East Land Holdings Inc.’s condominium buildings.

By Genivi Factao

MALAyAN Banking Berhad’s (May-bank) indirect subsidiary, Maybank ATR Kim Eng Capital Partners Inc.

(MATRKE Capital), has sold its property firm, ATR Kim Eng Land Inc. (ATRKE Land) in its bid to divest its non-core assets. MATRKE Capital has sold 3.1 million com-mon shares representing 100-percent owner-ship in ATRKE Land to Rockwell Primaries Development Corp., ATR Holdings Inc. and Dragon Eagle International Limited.

A memorandum of agreement was forged by Rockwell Primaries Development Corp., ATR Holdings Inc. and Dragon Eagle International Limited for the joint and collective investment and acquisition of all the outstanding common shares of MATRKE Capital in ATRKE Land.

Rockwell Primaries, a subsidiary of Rock-well Land Corp., will acquire 60 percent of the outstanding shares of ATRKE Land through a Deed of Absolute Sale of Shares agreement with MATRKE Capital.

“After the acquisition of the shares in ATRKE Land, Rockwell Primaries, Dragon Ea-gle and ATRH will own 60 percent, 20 percent

and 20 percent, of the outstanding shares of ATRKE Land, respectively,” said Ellen Almo-diel, Rockwell Land CFO.

ATRKE Land, together with Landco Pacific Corp., jointly develops the 9.7-hectare Tribeca project, a mixed residential/commercial con-dominium in Muntinlupa.

Under a termination agreement of their joint venture, ATRKE Land will become the sole owner and developer of the Tribeca project. The acquisition will give Rockwell Primaries a majority stake in the remaining undeveloped portion of the Tribeca Project, a 9.7 hectare mixed-use condominium com-plex in Muntinlupa.

ATRKE Land’s total assets amounted to approximately RM83.7 million, or P1.07 bil-lion, as of November 30. With the sale, ATRKE Land has ceased to be an indirect subsidiary of Maybank starting December 22.

“The sale will not have any effect on the share capital of Maybank and substantial shareholders’ shareholdings in Maybank and does not have any material effect on the con-solidated earnings and net assets of Maybank for the financial year ending December 31,” Maybank said.

Maybank sells ATRKE Land to Rockwell Land

BusinessMirror news@businessmirror.com.ph A4

NewsBy Rene Acosta

 

THE military on Thursday urged members of the New People’s Army (NPA) to abandon their armed struggle and join

the government instead, saying the country’s problems could not be solved by way of violence.

The call was issued by the Armed Forces of the Philippines through its public affairs office chief, Lt. Col. Harold Cabunoc, on the eve of the 46th anniversary celebration of the founding of the Communist Party of the Philippines (CPP).

The CPP is the political arm of the NPA. The CPP is only among the “people’s” groups under the umbrella organization of the National Democratic Front (NDF), which is spearheading the stalled peace talks with the government.

“It has been proven that nobody is a real winner in bloody armed conflicts. We are witness to the endless misery experienced by our own people, who are caught in the crossfire,” Cabunoc said.

On Wednesday at least 50 members of the NDF-Southern Tagalog (NDF-ST) held a lightning rally in San Pablo City, Laguna, as part of their advance celebration of today’s anniversary of the CPP.

A statement was later circulated by the group, through its spokesman Patnubay de Guia, where it extolled the CPP “for leading the revolutionary struggle aimed at advancing national liberation.”

“Likewise, it is also fitting to give our highest accolade to all heroes and martyrs of the national democratic revolution and Red Fighters who have unselfishly offered their lives for the people and the revolution,” the group said.

Cabunoc said the armed struggle being waged by the guerrillas “is mostly punishing

civilians as the innocent and hapless victims,” as he cited their records for 2014.

“There were two incidents of violent attacks on a civilian ambulance that claimed the lives of hapless civilians—one in Davao del Sur and another in the Caraga region. In May the hostage-taking of civilians in Mabini, Compostela Valley, traumatized the people who were held at gunpoint for many hours,” he said.

“The senseless attacks perpetrated by the NPA against peaceful communities and infrastructure projects have caused more suffering and denied the people of development in the countryside. We must reflect why we have allowed ourselves and our communities to endure 46 years of bloody violence and senseless deaths among fellow Filipinos,” Cabunoc said.

The 50 NDF members, in Mao caps and red chinos, marched along the busy streets of San Pablo City with placards and streamers around 9 a.m., hailing “the 46 years of struggle led by the CPP.” Member-organizations of the NDF-ST, such as the Kabataang Makabayan, Makabayang Kilusan ng Bagong Kababaihan (Makibaka) and Compatriots, gave their solidarity speeches, while a cultural performance highlighted the event. “In almost five decades of leading the people’s war, the CPP has gained more strength as exemplified by the expanding and deepening mass base and organs of people’s democratic government. This is amid the continued and intensified attacks against revolutionary forces through the AFP’s military and psywar operations, in line with the government’s counterinsurgency program Oplan Bayanihan,” de Guia said.

CDO-FOODsphere Inc. (CDO), with its corporate social responsibility arm Odyssey

Foundation Inc., and habitat for humanity philippines Foundation Inc. broke ground on November 21 to signify the formal construction of 50 core housing units in Kawayanville, Tacloban City. The groundbreaking ceremony was led by Tacloban City Mayor Alfred romualdez (represented by his wife, Councilor Cristina Gonzales-romualdez), Vice Mayor Zambo Yaokasin, habitat Managing Director and CeO Charlie Ayco, CDO president and CeO Jerome

Ong, and Odyssey Foundation executive Director Dindo Danao. They were assisted by Barangay santo Niño 106 Chairman Aldin Villarmino, Dabs Liban of habitat, and CDO executives George syyap, Janna Ong, raul Landero, Noli Acebedo and region 8 Distributor Wendy Gaw. The 50 housing units will be permanent home to families affected by supertyphoon Yolanda (international code name haiyan) considered as the strongest storm to ever make landfall on record, destroyed cities and towns in Leyte and other parts of the Visayas on

November 8, 2013, leaving more than 6,000 individuals dead. Both CDO and Odyssey Foundation turned over a donation of p10 million to subsidize habitat’s home- building projects in communities affected by Yolanda. “We are truly glad to have partnered with habitat in this endeavor that will help address the shelter needs of the victims of Typhoon Yolanda. This will provide decent housing for the affected families after Yolanda’s rage in their community,” CDO president Jerome D. Ong said. With each shelter unit costing

p200,000, the p10-million donation of CDO and Odyssey is expected to benefit 50 families in Tacloban City. “This forms part of our social commitment to the long-term rehabilitation and recovery efforts in the Visayas” Ong said. habitat for humanity philippines is committed to following high-quality standards in building decent, resilient, but affordable houses that can withstand intensity-9 earthquakes and wind speed up to 275 kilometers per hour. “CDO-Foodsphere and Odyssey Foundation were among the very

first donors who immediately responded to the call for funding in the rehabilitation and recovery efforts for Tacloban, and we thank them with great stride as dependable partners in community development,” Ayco said. “We look forward to finishing the 50 homes they have donated, so that affected families of Typhoon haiyan can start rebuilding their lives. As we continue to build safe and decent houses, we are also moving toward building sustainable communities and transforming lives. We believe that, together with CDO and Odyssey, we will be able to achieve this goal,” he added.

for every MrT passenger. On his part, Zarate said, “Be-fore proposing any increase, the high cost of operations and the large amount of debt incurred by the project should first be inves-tigated, specifically on whether taxpayers are actually subsidizing debt incurred by the private con-sortium that built the MrT. There is a need for the government to look into the operational costs of the MrT and LrT lines to check if there might be excessive expenses or mismanagement of funds.”  “[DOTC] secretary [emilio] Aba-ya’s justification for hiking MrT 3 fares defeats the purpose of con-structing mass-transit systems, which is to provide the public with cheap transportation services,” Za-rate added. Colmenares, meanwhile, said that mass transits are a public ser-vice and should be the responsibil-ity of the government, not a burden to the people.  “Also the 2015 and the supple-mental budget provided for MrT and LrT of at least p11.109 billion, con-sisting LrT 1 North extension (com-mon station, p769,809,000; the LrT 2 West extension, p200,000,000; the MrT 3 rehabilitation and ca-

pacity expansion, p2,569,200,000; repair/ rehabilitation of LrT Lines 1 and 2, p977,690,000; MrT 3 rehabil-itation and capacity expansion (sup-plemental budget), p957,163,000; LrT 1 and 2 rehabilitation (sup-plemental budget), p977,690,000; and the mass-transport subsidy, p4,657,504,000. Now, where will all these money go, including the double entries for the LrT 1 and 2 rehabilitation, if the fare hike is implemented?” Colmenares asked. “While the Aquino government has no qualms in imposing rate in-creases to save p2 billion, they can afford to splurge p54.9 billion for a useless endeavor to buy out the MrT, which they lost because of a highly questionable sweetheart deal.  Why don’t we use the p54.9 billion to fur-ther upgrade the MrT-LrT service instead,” Colmenares added. earlier several lawmakers, which include Nationalist people’s Coalition rep. sherwin T. Gatchalian of Valen-zuela, party-list rep. Terry L. ridon of Kabataan and sen. Grace poe-Lla-manzares, raised their opposition to the anticipated fare increase, saying the government should solve first the frequent breakdowns due to misman-agement before the implementation of the fare increases.

party-list reps. Neri Colmenares and Carlos Zarate of Bayan Muna said they will file the petition after the Department of Transportation and Communications (DOTC) imple-ments the fare hikes on January 5.  “The best way to defer the MrT/LrT fare hike is for the supreme Court to issue a temporary restrain-ing order against it. The DOTC did not follow due process in this case, and no sufficient public hearing was held. We also fear that the p2 billion that the DOTC would be able to save by increasing the fares of the MrT and LrT would just be turned to pork barrel,” said senior Deputy Minority

Leader Colmenares, after the scrap-ping of the proposed congressional special sessions to hear fare hikes. Once the fare hike is implement-ed, a ride on LrT 1, from Baclaran to roosevelt, will cost p29, while a one-way trip on LrT 2 (from santolan to recto) will be at p24, the notice said. A trip on MrT 3, between North Avenue and Taft Avenue, will cost p28.  Currently, a ride on the MrT ranges from p10 to p15, while a ride on LrT 1 and 2 costs from p12 to p15 and p20, respectively. The government is paying p25 for every LrT passenger and p45

Friday, December 26, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

Lawmakers to ask Supreme Court to stop MRT, LRT fare hike

By Jovee Marie N. dela Cruz

Two party-list lawmakers on Thursday said they will ask the Supreme Court (SC) to issue a

temporary restraining order against the implementation of the approved fare increases in the Light Rail Transit (LRT) Lines 1 and 2, and the Metro Rail Transit (MRT).

CDO-Foodsphere, Habitat for Humanity break ground for housing project in Tacloban

Leftist CPP-NPA hails ‘46 years of struggle’

By David Cagahastian

The social security system (sss) opened 38 new offices in 2014 to bring its services more acces-

sible to its members and pensioners nationwide, sss president and CeO emilio de Quiros said.

“Bringing sss closer to over 31 mil-lion members is among our top priori-ties. hence, establishing more offices across the country is one of our primary thrusts to better serve their needs.  We also hope that this increased access and visibility will encourage more people to join the sss,” de Quiros added. “For next year, we will continue to determine stra-tegic locations for setting up additional branch and service offices to make sure that every member of the sss has easy and direct access to us,” de Quiros said.

Of the new 38 sss offices nationwide, 25 are full-service branches while 13 are service offices mostly located in malls.  In terms of location for the National Capital region (NCr), there are 14 new branches and three service offices; Lu-zon had six new branches and four ser-vice offices; the Visayas had three new branches and three service offices; and Mindanao had two new branches and three service offices.

The new offices established by the sss brought its total offices nation-wide to 264, of which 61 are in the NCr, 119 in Luzon, 41 in the Visayas and 43 in Mindanao.

Aside from opening more offices, some select sss branches are open every saturday to address the con-cerns of members who cannot trans-act business during weekdays. some of the branches open on saturdays are those at Diliman, Makati-Ayala and Makati-Gil puyat in the NCr; Cebu, Lapu-Lapu, Bacolod and Iloilo in the Visayas; and Cagayan de Oro, Davao and Zamboanga in Mindanao.

The Department of Trade and Industry (DTI) is push-ing the creation of fabrica-

tion laboratories or “FabLabs” to ramp up competitiveness of local micro, small and medium enter-prises (MsMes).

“The FabLab helps develop the local economy by providing bet-ter and more competitive prod-ucts. It enhances the local MsMe ecosystem, encourages start-ups, and develops entrepreneurs who create more jobs. Innovation and creativity are key to ensure that our MsMes are at par with global market demands,” said Ceferino s. rodolfo, assistant secretary for the Industry Development Group, in a statement.

The Japan International Co-operation Agency (Jica), in aid of the initiative, launched the seminar on the first FabLab fa-cility in Bohol. The project is a “Knowledge sharing seminar on Fabrication Laboratory” to raise awareness on the first FabLab facility in Bohol.

The Bohol FabLab is a technical prototyping platform at the Bohol Island state University.

rodolfo encouraged both educa-tional institutions and businesses to set up the facilities for the benefit of MsMes.

The first of its kind in the coun-try, the Fablab has the potential to cater to prototyping and mod-eling requirements of MsMes in the province.

The Fablab has various equip-

DTI pushes creation of ‘FabLabs’ nationwide to boost MSMEs’ competitiveness

ment, which can be used for pro-totyping and limited production applications such as wood work-ing, molding, packaging for the

processed-food sector and the creation of prosthesis, and circuit boards. Industries present during the seminar conveyed their interest

to collaborate and use the facilities of the Bohol Fablab.

The Bohol FabLab is co-funded by the DTI, the Department of

science and Technology, and the Bohol Island state University, un-der the mentorship of Japan’s Keio University. Catherine N. Pillas

SSS opened more offices in 2014

TOY SOLDIERS AT SM MOA Big toy soldiers guard the façade of the SM Mall of Asia (MOA) in Pasay City. The 407,000-square-meter SM MOA, considered as one of the world’s biggest malls, is a tourist destination. KEVIN DE LA CRUZ

DE QUIROS: “For next year, we

will continue to determine strategic locations for setting

up additional branch and service offices to make sure that every

member of the SSS has easy and direct

access to us.”

BusinessMirror

NewsFriday, December 26, 2014 A5corp@businessmirror.com.ph

Environment Secretary Ramon JP Paje said that starting in Janu-ary, the early implementation of the Euro-4 standards for automo-

bile fuels will push through until June 2015.  

“By July, we expect full com-pliance of the Euro-4 standard,”

Paje said. Paje is optimistic that stakeholders such as pump-gaso-line stations and car manufacturers will be able to comply such order.

He cited the shift from leaded gasoline to unleaded gasoline, where pump-gasoline stations were able to comply.

  “Under the Euro-4 standard, there will be a 1,000-percent re-duction in sulfur content.    I will just have to sign an administrative order to that effect,” he said.

Beside, he said small players that import gasoline and diesel are al-ready selling Euro 4-compliant fuels.  

“There are no more Euro 2.  Our problem is the local processors,” he said. Local processors of gasoline and diesel would have to put up a

plant that can produce Euro 4-com-plaint products.

Otherwise, Paje said oil compa-nies will have to export their Euro-2 standard fuels and import Euro-4 fuel standards.

“I understand that Petron al-ready has a plant for Euro 4,” he said.  The implementation of the Euro-4 standard will signal the phaseout of older vehicles, which the DENR chief is also pursuing, to further reduce air pollution par-ticularly in Metro Manila. 

Specifically, he wants vehicles that are 15 years or older to go, to reduce the volume of vehicles in Metro Manila.

This means the Land Transpor-tation Office (LTO) will be very

busy enforcing the order to pro-mote clean air.

As early as 2010, the DENR had issued an administrative order re-quiring passenger and light-duty vehicles to comply with Euro-4 emission limits, subject to Euro-4 fuel availability, by January 1, 2016.

However, to step up the ex-pected positive outcome up im-posing improved fuel standards for motor-vehicle users, Paje said they have proposed to the Depart-ment of Energy (DOE) to impose the deadline six months ahead or by June 2015.

He said as far as pump-gasoline stations are concerned, following the Euro-4 fuel standards is no longer an issue. 

“Even small players use Euro-4 fuels.  These are imported fuels,” he said.

The Philippines is currently following Euro-2 emission limits. Euro-2 fuel types have a sulfur con-tent of 500 parts per million (ppm), compared to 50 ppm for Euro-4 fu-els. Sulfuric content in pollutants has been known to lead to heart and lung diseases, increased can-cer risks, and premature deaths.

He said stakeholders from the automotive industry as well as owners of newer vehicles would not experience difficulty with an earlier deadline since most vehicles manufactured recently are already compliant with or can be retrofit-ted to accept Euro-4 fuels.

DENR gears up for early implementation of Euro-4 fuel standards

By Manuel T. CayonMindanao Bureau Chief

DAVAO CITY—The Davao City Water District is em-barking on a P2-billion up-

grading and replacement of water distribution pipes to accommodate the bigger volume of potable water when it taps the surface water of the Tamugan River in the remote northern Davao City.

Imelda Magsuci, spokesman of the water-utility firm, said the project would start next year and involved two sections: the laying of the new pipes and the construc-tion of the water-extraction and treatment plants of the Tamugan river water.

The water district has been us-ing the old pipes to carry 215 cubic meters of water consumed daily.

These pipes would be replaced by bigger-diameter pipes to carry as much as 400 cubic meters when the waters of Tamugan would be tapped.

Magsuci said the first phase, the laying of the pipes under-ground, would take one year, to be followed by the construction

of the extraction and treatment plants along the Tamugan River in Baguio District on the second year of the project.

The decision to extract the river water was finalized after several scientific testing indi-cated the pristine quality of the river’s water. 

The decision was also delayed after this quasigovernment wa-ter-utility firm clashed for a uti-lization rights claim against the Aboitiz company, which planned to build a mini hydroelectric com-pany using the river waters.

Magsuci said Tamugan River would bring respite to the heavy extraction of the Dumoy aquifers, as the company had announced earlier that it would shut down 28 of its 36 production wells and have them rested for the next 50 years.

The length of resting the wells was the computation made by a city government-commissioned study on the health of the city aquifers which shows that the water ex-tracted from them were the same rainfall water that recharged the aquifers 50 years ago.

Davao water district sets ₧2-B pipe upgrading

By Jonathan L. Mayuga 

THE Department of Environment and Natural Resources (DENR) is gearing for the early imple-

mentation of improved fuel standards from Euro-2 to Euro-4 fuel standards for motor vehicles to improve air qual-ity in Metro Manila next year.

DAVAO CITY —The Davao Light and Power Co. would seek more sup-

ply contracts with power-gen-eration projects going on in the eastern section of Mindanao, three of them using coal.

The distribution company has already 150 megawatts (MW) coming by the third quarter of next year from the coal-fired power plant operated by its sister company, Therma Marine South.

A rturo Mi lan, EV P and COO of the Davao Light, said it would seek another 150 MW from the coal-fired plant still constructed in Malita town of the newly created Davao Occi-dental province.

Davao Light has yet to strike a supply contract with the San Miguel Corp., which owned the plant that announced it would build at least a 600-MW capac-ity plant. The Malita coal-fired plant, however, appeared to have been delayed, he said. Looking at its moving target of actual operation, he first announced the plant to start operations on the fourth quar-ter of next year, which was later moved to the first quar-ter of 2016.

“We think that this delay is the reason why we have to put on hold our plan because a supply contract is usually a predetermined agreement in terms of contract volume, date of delivery, and longevity of the

terms of supply,” he told the BusinessMirror. 

Davao Light holds Mindan-ao’s largest franchise area cov-ering Davao City, Panabo City of Davao del Norte, and the prov-ince’s two other towns of Braull-lio Dujali and Santo Tomas.

It also put a stake into the franchise of the resort island of Samal, which is under the ailing Davao del Norte Electric Cooperative (Daneco).

The agreement with Daneco to cede Samal Island from its franchise to Davao Light was later placed in the backburner following the current internal management row involving the National Electrification Ad-ministration and the Coopera-tive Development Authority.

Milan said the aggressive buildup of its reserve distri-bution capacity was meant to prepare itself from the sharp increase in energy requirement from the slew of manufactur-ing and retail companies within and around Davao City.

“The city’s energy require-ment grew 5 percent last year, just within our projection of the annual growth of the city,” he said. This year, the 31-MW requirement increased by an-other 55 MW.

The company receives 355 MW of daily supply from the Mindanao grid.

Milan said it wanted to boost its reserve to 455 MW a year.

Manuel T. Cayon

OVERSEAS Filipino work-ers (OFWs) and their loved ones can now enjoy easy

access to high-quality eye care and treatment in the Philippines at special rates.

This development follows the signing of an agreement between Lopez-managed Asian Eye Insti-tute (Asian Eye) and the Philippine National Bank (PNB) to implement the OFW Family Eye Care Program.

Under the agreement, Asian Eye offers nine eye-care packages designed to address the common needs of OFW families, including children and adults, as well as dia-betics and seafarers.

Asian Eye services in the OFW program include a comprehensive eye checkup, conventional cataract surgery and a bladeless Lasik sur-gery package.

The comprehensive eye checkup examines the quality of vision but also the condition of the eye struc-tures to see any underlying diseases.

The conventional cataract sur-gery comes with regular intraocu-lar lens to improve vision of the patients; while the Lasik surgery package eliminates or reduces the need for eyeglasses, contact lenses or reading glasses. Asian Eye has also prepared easy-to-follow steps to facilitate access to the special ser-vices. An OFW or immediate fam-ily member first will have to decide on the needed Asian Eye service. Then they can set an appointment through Asian Eye’s web site (http://www.asianeyeinstitute.com), e-mail (eyehelp@asianeyeinstitute.com) or Facebook account (www.facebook.com/asianeyeinstitute).

Upon confirmation of a sched-ule, an OFW can deposit payment at the nearest PNB remittance cen-ter. Considered one of the country’s biggest banks, PNB operates 106

branches worldwide and 95 autho-rized remittance agents.

A family member who avails themselves of the eye checkup or treatment simply has to present a copy of the remittance receipt to a preferred Asian Eye clinic.

A world-class ambulatory eye-care center, Asian Eye is at Phinma Plaza, Rockwell Center, Makati City, with satellite clinics at Tri-Noma in Quezon City; Mall of Asia, Pasay City; and Commercenter in Alabang. Asian Eye has served over 100,000 local and foreign patients

since its establishment in 2001. Asian Eye counts among its officers Oscar M. Lopez, chairman emeri-tus of both Asian Eye and First Phil-ippines Holdings Corp., one of the country’s biggest conglomerates.

“We know our kababayan abroad worry about their family members who have eye conditions or who suf-fer from an eye problem. Through the OFW Family Eye Care Program, we seek to become a partner of every OFW in the world, including seafar-ers, to ensure that their loved ones receive the best possible eye care

while they are away. More impor-tant, we would like to encourage more Filipinos to take charge of their eye health and prevent sight-threatening diseases,” Asian Eye Vice President and General Manager Alwin Sta. Rosa said.

“We are happy to find a partner in PNB. Aside from being one of the leading providers of remittance ser-vices to OFWs, they also share the same goal of making it hassle-free for Filipinos to support and care for their family in the Philippines,” Sta. Rosa said.

OVERSEAS Filipino workers (OFWs) and their loved ones can now enjoy easy access to high-quality eye care and treatment in the Philippines at special rates. This good news follows the signing of an agreement between Lopez-managed Asian Eye Institute (Asian Eye) and the Philippine National Bank (PNB) to implement the OFW Family Eye-Care Program. Under the agreement, Asian Eye offers nine eye-care packages designed to address the common needs of OFW families, including children and adults, as well as diabetics and seafarers. PNB, through its network of 106 branches worldwide and 95 authorized remittance agents, accepts payments for the Asian Eye services. Asian Eye President Benjamin K. Liboro (second from left) and PNB President Reynaldo Maclang (third from left) signed the agreement. Witnessing the event are Asian Eye Vice President and General Manager Alwin S. Sta. Rosa (left) and PNB First Senior Vice President Benjamin Oliva.

By Roderick L. Abad

LISTED A. Soriano Corp. (Anscor) has fully acquired a cable and wire manufactur-ing company for P2.97 billion. 

The company informed the local bourse that it has purchased General Cable’s 3.54 million shares, representing 60 percent of the outstanding capital stock of Phelps Dodge International Philippines Inc. (PDP), at a par value of P838.43 apiece.

As a result, Anscor’s previous 40-percent ownership in the latter has increased to 100 percent at present.

Anscor made such additional investment through loans from a local bank as it believes in the continued success of PDP.

Considered as the Philippines’ biggest wire and cable manufacturing facilities operator, PDP provides cutting-edge products that facilitate communication and information technologies, move transportation and progress onward, and power up the country. 

Anscor is wholly owned and controlled by the family of Andres Soriano, with varied investments in companies engaged in a wide range of activities both here and abroad.

Its core operating investments include cable and wire manufacturing, as well as resort and leisure. 

Also, it is involved in wireless broadband data services, aviation, real estate and manpower deployment.  The holding firm has investments in equities traded in the Philippine Stock Exchange, foreign currency denominated bonds and offshore hedge funds. Consolidated gross revenues of Anscor this year amounted to P3.1 billion, or 6.4 percent higher than last year’s P2.9 billion.

As volume sold grew by 20 percent with corresponding revenue hike, the PDP Energy’s marginal income increased by 13.8 percent in 2014.

It posted a net income of P394.9 million for the first nine months ended September 30, 2014, higher than the P325.6-million profit registered last year.

Davao Light to seek supply contract with SanMig coal plant

By Jovee Marie N. dela Cruz 

A LAWMAKER on Thursday said that a total of 3,253 Filipino nurses took the US National Licensure Ex-amination (NCLEX) for the first time from January

to September this year.House Assistant Majority Leader and Nacionalista Party

Rep. Gerald Anthony Gullas Jr. of Cebu said all these 3,253 Fili-pino nurses hope to obtain gainful employment in America.

“The number is up a little over 10 percent when com-pared to the 2,952 Filipino nurses who took the NCLEX for the first time, excluding repeaters, over the same nine-month period in 2013,” said Gullas, vice chairman of the House committee on higher and technical education.

The NCLEX refers to the National Council Licensure Examination administered by the US (National Council of) State Boards of Nursing Inc. (USNCSBN).

The lawmaker said the number of Filipino nurses taking the NCLEX for the first time is considered a reliable indicator as to how many of them are trying to enter the profession in America. Gullas said USNCSBN statistics showed that among foreign-educated nurses, Filipinos remain the most active job seekers in America.

He said 677 Indians, 489 Canadians, 437 Puerto Ricans and 330 South Koreans also took the NCLEX for the first time from January to September in 2014.                               

In 2013 a total of 4,034 Filipinos took the NCLEX for the first time. The number is less than one-fifth of the record-high 21,499 Filipino nurses that took the same exam at the height of the 2007 nursing boom. 

“Though a bit costly, some Filipino nursing graduates are

taking the NCLEX so they can add having passed the exam to their credentials when they apply for jobs elsewhere,” Gullas said. “A number of them do not really expect to get hired by US hospitals anytime soon.”

Gullas said America’s demand for foreign nurses has slowed down since 2008.

“There is an oversupply of nurses in the US now. In fact, some 43 percent of fresh nursing graduates in America have not landed a job within 18 months of receiving their license,” Gullas said. He said US hospitals and nursing homes are not hiring new staff.

“For now, they are simply keeping their senior and highly experienced nurses until retirement,” he said.

Gullas, meanwhile, urged Filipino nurses searching for “greener pastures” overseas to instead apply for jobs in the United Kingdom and the Middle East, where there is still ample demand for their skills.

He also said the Philippines continues to produce thou-sands of new nurses every year, despite a large surplus.

“This year alone, the Professional Regulation Commis-sion [PRC] has issued licenses to 22,202 new nurses,” he said.

In addition, some 30,000 nursing graduates, including repeaters, took the Philippine Nursing Licensure Examination administered by the PRC on November 29 and 30.

Gullas said he will push for the restoration to Salary Grade (SG) 15 —the equivalent of P24,887—the entry-level basic monthly pay of public nurses in the Lower Chamber.

The Nursing Law of 2002, or Republic Act 9173, pegged the starting pay of public nurses at SG 15, but the Salary Standardization Law III effectively downgraded their rat-ing to SG 11, or P18,549.

Asian Eye, PNB offer OFWs, families access to good eye care in PHL

Anscor now fully owns cable and wire maker

 3,253 Pinoy nurses sought US jobs in 2014

Editor: Alvin I. DacanayFriday, December 26, 2014

OpinionBusinessMirrorA6

Banning fireworkseditorial

MIDNIGHT  on Christmas Eve came and the church bells in our neighborhood rang out. But this year, something was definitely miss-

ing. Aside from what we counted as two small ‘pops in the distance, the traditional barrage of firecrackers did not happen.

While celebrating the passage of the new year of 2014, some 600 people were injured. In the wake of that carnage–and you really cannot call it any-thing else–the Department of Health called for a total ban on firecrackers.

“The Palace is standing firm behind the proposal of Health Secretary Ona,” Presidential Communications Operations Office Secretary Herminio Coloma said at the time.

A nationwide ban on the sale and use of all types of pyrotechnic devic-es is still in the future but individual local government units have taken their own stand against this activity which seems to be fun and is usually dangerous.

Banning just a particular type of ‘recreational explosive’ has not been effective. The Piccolo, a banned but inexpensive firecracker, remained the major cause of injuries, accounting for more than 60 percent of the casu-alties recorded last year.

Davao City banned all fireworks over a decade ago and yet Christmas and the New Year come to the city every year as it does to Zamboanga City.

This year, the list of cities implementing a total fireworks ban in addi-tion to Davao and Zamboanga include Baguio, Kidapawan, Muntinlupa and Olongapo. Pateros City in Metro Manila has a partial ban, meaning that there are only certain designated areas where the use of fireworks is allowed.

While a nationwide ban imposed by Congress is probably unnecessary and unrealistic, the arguments against a ban of this nature are typical of politicians catering to the populist view. One Representative branded such proposals as “unconstitutional and unfair” to Filipinos whose livelihood for generations has been the fireworks and small firecrackers.” A logical extension of that argument could be applied to ‘kaingin’ or slash and burn farming and the ‘muro-ami’ fishing boats using child labor.

While the issue of fireworks is not critical, it is a subject that comes up every year at this time. We understand the concern for the livelihood of these small- and medium- sized companies in this cottage industry.

However, we have absolutely no sympathy or worry for any company, large or small, that sells substandard and dangerous products to the pub-lic. The government has failed miserably to protect the public from these bad products.

There are several companies that have invested millions to produce safe pyrotechnics to world class standards and it is unfortunate that they are adversely affected by these local fireworks bans.

But the yearly holiday tradition of the hospital emergency rooms being filled by firework victims is embarrassing and needs to be stopped.

AS the clock counted down to Christmas late Wednesday night, I was going through my twitter feed and I was struck by how much social media has transformed the way the

holidays feel.

IN holiday messages at this time of year, the boss usually musters the energy to say nice things to the people who work for him, even if he’s exasperated by the performance of his

employees or beset by arrogant bullies on the corporate rungs above him.

Holidays in the Age of Social Media

Blunt words from Pope Francis

Before smartphones and social media, the holidays were a time to disconnect from the currents of the world. As though by consensus, people’s focus shifted away from the hustle and bustle of living and onto the simplest joys of being alive and being surrounded by family and friends who, for once, didn’t have to go dashing off somewhere after the briefest of encounters. Well, at least it was that way for some people.

For others, the holidays weren’t so rosy. With people around them gravitating towards their own cir-cles, the isolation of others tended to grow more pronounced than ever, leaving them islands adrift in a veritable sea of good cheer. Admittedly, there was a time when I was one of those islands, myself.

Whatever. The point is that the holidays used to give people the

opportunity to essentially retreat into their own little worlds and to re-connect with the people who mattered most. And re-connec-tion meant renewed friendships, amends made, and in some cases, the possibility of self-discovery. Not that the larger world ceased to exist; it just seemed to matter less.

Now, though, in the midst of all the reunions and parties, I see people checking their timelines and, mixed in with the greetings, there are updates about people los-ing their homes in fires, children being shot, dictators threatening reprisals for stupid movies. Every update reminding you that it’s ac-tually just another night and that when the clock strikes twelve, it only means that the world has got-ten one minute older.

Off hand, my instinct is to blame

social media and the way it en-croaches on our consciousness on a daily basis. But with a bit of reflec-tion–and isn’t that what the holidays are supposed to encourage? I suspect that we ourselves are to blame.

Social media doesn’t force itself on us. It is simply a river that flows whether we pay attention to it or not. We can step in and out of it as we choose, either just getting our toes wet or submerging ourselves completely. And depending on which course we take, we can either allow the rest of the world to intrude on our holidays, or we can have this brief interlude which–whether we admit it or not–holds more potential benefit for us than harm.

But hey, Christmas is over, and as soon as the day after Christmas dawned, most of us have moved on and gotten back to the daily grind. It wasn’t a terrible Christmas, not really. But it was certainly one of the most pedestrian ever.

Having said that, I also have to clarify that I’m not advocating ditching social media during the holidays completely. Once in a while, in the flood of forwarded messages and canned greetings, a true gem surfaces and, by the sheer force of its cheerfulness, simply brings a genuine feeling of goodwill to all.

And the perfect example of that is this greeting I saw online,

posted by one of my dearest col-lege buddies.

“ To A l l My Non-Rel ig ious Friends,” he writes, “Please accept with no obligation, implied or ex-plicit, my best wishes for an en-vironmentally conscious, socially responsible, low-stress, non-addic-tive, gender-neutral celebration of the winter solstice holiday, prac-ticed within the most enjoyable tra-ditions of the religious persuasion of your choice, or secular practices of your choice, with respect for the religious/secular persuasion and/or traditions of others, or their choice not to practice religious or secular traditions at all.

“I also wish you a fiscally suc-cessful, personally fulfilling and medically uncomplicated recogni-tion of the onset of the generally accepted calendar year 2015, but not without due respect for the cal-endars of choice of other cultures whose contributions to society have been significant. Also, this wish is made without regard to the race, creed, color, age, physical ability, religious faith or sexual preference of the wishee.

“To All My Other Friends: Merry Christmas and a Happy New Year!”

Ditto.

James Jimenez is the spokesman of the Commission on Elections.

That’s the generosity of the Christmas spirit, right?

But what if the boss used this holiday interlude not to extol the good, but to point out in withering detail his subordinates’ personal shortcomings?

And what if that message reso-nated well beyond the boss’ work-place, so that all of us could read his remarks and—gulp—see our-selves in the unflinching mirror that he held aloft?

You may have guessed that we’re talking about Pope Francis’s extraordinary Christmas message on Monday.

Instead of a traditional message of charity and hope, Francis exco-riated the cardinals, bishops and priests who run the Vatican. He accused them of knuckling under to 15 ailments and temptations, including greed, jealousy, hypocri-

sy, cowardice and, in a memorable phrase, “spiritual Alzheimer’s.”

He talked about “the terror-ism” of gossip, which he labeled as a disease that could destroy a reputation “in cold blood.” He urged them to be “conscientious objectors” to gossip.

He blasted prelates for vainglo-ry, for amassing wealth and lead-ing double lives that, he said, could lead to “existential schizophrenia.”

The critique “left many of the assembled clerics clearly uncom-fortable,” the Religious News Ser-vice reported. We bet.

Yes, the pope’s stinging words were aimed at a specific group of people under his command. And it’s tempting to dismiss the workplace lecture of a pope, who, after all, already has a lifetime job and no worries of being fired. He doesn’t have to fret about the

terrorism of gossip or whether he can afford to put a new iPad under the tree.

But what Francis said invites all of us to take a moment from the dizzying rush of these holidays to take a deep breath and think about the life we lead, the way we treat friends and foes, the things we do to get what we seek.

The pope took aim at “the sick-ness of considering oneself ‘im-mortal,’ ‘immune’ or ‘indispens-able.’ … It is the sickness of the rich fool who thinks he will live for all eternity, and of those who transform themselves into masters and believe themselves superior to others, rather than at their ser-vice.” Those who do think they’re immortal, Francis said, should visit a cemetery and gaze on the graves of others who shared that illusion.

He counseled his audience to work as a team and to avoid turn-ing into “procedural machines” through overwork.

We all navigate through life as best we can. But we also gossip. We envy others. We chase the lat-est gadgets, the bigger home, the

fancier car. These are normal im-pulses that can be channeled for good or ill, for healthy pursuit or destructive obsession. The pope’s words invite us to examine how we live, how we pursue our goals and—most important—how we treat others.

Francis addressed another group on Monday, as well: the Vatican staff, including gardeners and cleaning workers. The pope thanked them for their labor and asked “forgiveness for the short-comings of my colleagues and my-self, as well as for some scandals, which do great harm.”

“Forgive me,” he said.Those are handy words in the

world today. You aren’t perfect. You won’t live forever. You’re go-ing to hurt people’s feelings, make mistakes and blunder into messy situations. But what values will you invoke? What choices will you make?

This wasn’t an exclusively Ro-man Catholic message, or even a particularly religious message. It’s advice to all of us, on how all of us lead our lives. Chicago Tribune/TNS

spoxJames Jimenez

HOM

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Friday, December 26, 2014

OpinionA7BusinessMirroropinion@businessmirror.com.ph

annotationstito Genova Valiente

THE 5.3-percent gross domestic product growth posted by the Philippines in the third quarter of 2014 was its lowest since 2011. As a result, many are anxious about the sustainability

of the country’s economic growth.

By Katie BennerBloomberg View

JUST three days before cyberattackers crippled Sony Pictures, the hackers sent an e-mail to executives Michael Lynton and Amy Pascal that said they would do great damage to the company if they weren’t paid off.

Economic growth and structural transformation

Sony hacking highlights the rise of cyber ransoms

The reason for the decrease was the obvious decline in government expenditures by 2.6 percent from a growth of 7 percent in the same period last year. Thos resulted from the delays in the disbursement of major expenditures for salaries and wages, as well as the mainte-nance and other expenses for the implementation of major govern-ment programs. This could have also caused an upward pressure in interest rates as liquidity problems arose, particularly for private com-panies with government projects.

Another significant factor is the problem of port congestion, which may have increased consumer prices and constrained the Philippines’s capacity to export, as some ship-ping lines have suspended opera-tions in the country. Total exports slowed down to 9.8 percent, com-pared with the 12.4-percent growth recorded in the July-to-September period in 2013.

What needs to stressed, though, is that these factors are temporary, and solutions can be implemented in the short term. In the case of govern-ment expenditures, new budgetary procedures, made after the Disburse-ment Acceleration Program (DAP) was abolished, have been introduced. Regarding the port congestion, the truck ban, which aimed to easy traf-fic in Manila, had been scrapped. In addition, shipping firms have been encouraged to use underutilized sea-ports outside of Metro Manila that are closer to economic zones.

In determining the robustness of the country’s economic growth, one must observe structural transforma-tion, which is defined as the realloca-tion of economic activity across broad sectors, such as agriculture, manu-

facturing and services. Structural or industrial changes make economic growth sustainable, because it leads a reallocation of the labor force to other sectors where value-added and posi-tive externalities are greater. On the other hand, economic growth with-out structural transformation only benefits the prime movers (mainly through technological innovation) and can cause unemployment and low productivity in sectors that have been left behind. This results in an unsustainable “enclave situation”.

Hence, structural transforma-tion involves transferring people from an already efficient agricul-tural sector to a more productive and labor-intensive manufactur-ing sector. Once manufacturing increases its scale of production, the broader development of ser-vices, as well as of agriculture, would be expected. Such structural or industrial transformations un-derpin long-term economic growth

The note, discovered by Mashable, was simple and straightforward, though sketchy on the payment details: “We’ve got great damage by Sony Pictures. The compensation for it, mon-etary compensation we want. Pay the damage, or Sony Pictures will be bombarded as a whole. You know us very well. We never wait long. You’d better behave wisely. From God’sApstls.”

The e-mail has been largely forgotten amid the blur of Sony-related cyber-attack coverage, including stories about backstabbing e-mails and North Korea’s purported role in the hack over the film “The Interview.” But security experts say it’s not unusual for companies to receive e-mails from hackers who threaten to hold data hostage, or destroy it altogether, if payment isn’t made. In some cases, the at-tackers do hold systems for ransom and they do get paid.

“Recently we have seen an uprising in ‘cryptolockers’ and [malware that] is referred to as ‘ransomware,’ which allow the criminal to hold assets hostage in exchange for things not attached to the Internet, like the ability to block the release of a movie or even hostage ex-change,” says Ryan Wager, director of product management at the security company vArmour.

Just this month, several hospitals were infiltrated by hackers demanding payment. (Hospitals, full of sensitive patient data, have been hit in the past, too.) The criminals’ play-book was pretty much the same as what’s used in most of these attacks. The hackers got in, used a type of ransomware to encrypt files and then demanded payment in return for the key. Here’s how David Wood, co-owner of an Australian medical center that recently got hit, described how it was hacked:

and results in greater inclusivity. The evidence of structural change

in the third quarter can be found in the following:

First, industry posted a growth of 7.6 percent, slightly lower that last year’s 7.7 percent. Manufacturing continues to steer the industry sector, even as the services sector continues to drive the economy, contributing 3.1 percentage points to GDP growth.

Second, investments in fixed-cap-ital formation grew by 10.1 percent from 9.5 percent last year.

Third, employment levels in Oc-tober increased by 2.8 percent year-on-year, with most of the jobs coming from the growth in the industry and service sectors, thereby compensat-ing the slowdown in agriculture. The quality of jobs seems to have also im-proved, given an increasing share of wage and salary workers.

Certainly, structural transforma-tion is not an easy task, and it still needs to be pursued. Agricultural development, for instance, is a key element in this framework, but has been given limited attention. Never-theless, in previous administrations, a drop in government expenditures would have been disastrous. Instead, with the abolition of the DAP and the Priority Development Assistance Fund, the private sector initiated much of the economic activity, cre-ated jobs and accumulated wealth. The engine of growth became the private sector, as the state—both at the national and local level—has been limited to merely create the en-

abling environment for this to hap-pen. Theoretically, a private sector-led growth is more efficient than a state-produced one.

Transformation presupposes the emergence of new firms making new goods in new ways, and old or ineffi-cient ones innovating and reorganiz-ing or being dissolved. This is possible because of the continued remittances of our overseas Filipino workers, and the government’s sound financial and economic management. These, plus the lower gasoline prices and the po-litical will of the Aquino administra-tion, should result in higher economic growth in the coming year.

Thus, from a seemingly hopeless situation, we see signs of hope and the promise of greater prosperity. Merry Christmas and a Happy New Year to one and all!

n n nFor more of our views on and fore-

casts for the Philippine economy and the financial markets in 2015 and beyond, we would like to invite you to attend the Eagle Watch Economic Briefing at the Justitia Room of the Ateneo Rockwell Campus in Makati City, from 9 to 11:30 a.m. on Janu-ary 22, 2015. For inquiries, call (632) 263-3221 or send an e-mail to info@ifpmphilippines.org.

Leonardo A. Lanzona Jr., PhD, is the director of the Ateneo de Manila Universi-ty’s Ateneo Center for Economic Research and Development, and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.

“They literally got in, hijacked the server and then ran their encryption software, ” he said, adding that the data was “secure in the sense that no one’s taken any of it.” A security expert told the news media that the damage was extensive enough that the hospital would probably have to pay.

Security researchers say the use of ransom-ware has exploded over the past year, largely because the black market for credit- card num-bers and other personal data is oversupplied. As prices plummet, creative attackers have looked for other ways to make money on lax corporate security.

A few years ago, hackers typically held in-formation on individuals’ laptops for ransom. They still do that, but now they’re targeting small and midsize companies that don’t have the money or know-how to build big security systems. They’re also using employees’ per-sonal laptops to tunnel into bigger networks.

“One of the scariest changes is that attack-ers are even getting better at getting to your back up data, says Marc Maiffret, the chief technology officer at the cybersecurity startup BeyondTrust. Researchers say hacking groups

looking to make more money with ransomware are also selling their services to the highest bid-ders, essentially, as hacker mercenaries. Maif-fret says that’s one reason smaller countries and terrorist groups that traditionally haven’t had a strong cybercriminal presence are showing up more frequently now.

Only an estimated 2 percent to 3 percent of targeted companies pay a ransom, says Sagie Dulce, a data security engineer at Imperva. But even that tiny percentage can mean a lot of money. Dulce says a typical cryptolocker can take in $30 million in only a few months. “As electronic currency becomes more widely used, more people will pay,” he says, noting that most criminals want to be paid in Bitcoin.

The Sony attack made clear that hackers have the ability to do more than just take sensitive data. The increasing popularity of extortion shows that big companies won’t be the only targets. As vArmour’s Wager puts it, “The days of smash and grab attacks to simply steal credit-card information and user informa-tion are far behind us.” Unless everyone starts thinking defensively, the greatest damage is yet to come.

FIVE days before Christmas, I attended the funeral of a queen. He was the brother of a good family friend. Our family did not know him that much but his sister

was very close to us. In fact, when the police informed the death of this man, my sister-in-law was with his sister to identify the body.

The death of a queen

EaGLE WatCHDr. Leonardo a. Lanzona Jr.

His name was Alex and he was alone when he died in a room somewhere. He had his own home but he decided to live closer to his friends.

The second night of the wake saw us at the funeral parlor. It was a rainy night and there were few friends and sympathizers. When the other friends left, a middle-aged man who we know as a beau-tician joined us. He turned to the casket and said without regret and without any hint of f lamboy-ance: “I was always a runner-up to him. Alex was a beauty queen, a title-holder. We knew Alex was gay but we never knew he was a beauty queen!”

Danny who was famous in the mid-70s as Dannie Ultima felt sad his bosom friend, Alex, never made it to the 50th anniversary of their group called Cheramie. This gay male beauty pageant or-ganization is considered to have the longest uninterrupted history of holding competition. Not even the declaration of martial law im-peded its stiletto-march through eternal acclaim.

Fenella Cannell, the British anthropologist who specializes in the study of politics and reli-gion, wrote about this group in her Power and Intimacy in the Chris-tian Philippines. Cannell came to Bicol in the mid-8os where she studied kinship and religion and identity in Calabanga,Calabanga, where the famous “Hinulid ” (lit-erally “ laid to rest,” referring to the Dead Christ). Her anthropo-logical antennae up and alerted, Cannell looked into the women and their poverty, their concept of ownership. Beyond those for-mal areas of inquiry, Cannell studied the karaoke practices in the town and then covered the gay male beauty pageant in Naga City. Cannell wondered how the men and women in the barrios could sing like the professional singers. Did they understand the words? With the gay male beauty contests, Cannell talked of gay men assuming names that sounded like those of film ac-tresses and the elite. It has to be mentioned though that access to the gay male beauty pageant circle was facilitated by Manuel “Tata” Flores, a major force behind the contest. Tata happened to be the brother of Marilyn Flores who is a dear friend of Jean Illo, who is on women and development and gender research at the Institute of Philippine Culture.

After learning about the life of A lex as a beauty queen, I texted Jean Illo and informed her about one of the many plans to write the history of this gay male beauty pageant.

At Alex’s wake, Danny talked of how their group started getting support from local governments just so they could stage their con-tests. He said gay members who were pioneers in the Middle East also helped in giving support for the gay male beauty pageant. Mi-gration and globalization were tandem factors in the creation of a pageantry that was, deep within, a presentation and re-presentation of identities.

As I entered a cafe so I could do the “pagpag,” an act of dropping off the swath of grief and death before going home, Manay Jean asked via SMS: “What is the gay peg of Alex?  Right now, I can’t put a name and face together.” I responded “Sandra.”

Fennela Cannell suggests in her conclusions the absence of so-cal led “authentic identity” does not mean a particular eth-nolinguistic group lacks the so-called marker. She speaks of how “ambiguity, irony and irresolution are also kinds of social fact. As facts, they could be use to explain identities in lands where concepts about selves are different.”

Danny remembers Fenella, for he is the Danny the anthropolo-gist remembers in the book as the one who helped her with her make-up: Fenella Cannell was one of the judges for their beauty pageant then.

In the memorial part that balmy afternoon, not even the silly patter of two funeral coordinators could ruin the memories of Alex.

Lyn, Alex’s sister, thanked ev-eryone present because although her brother spent more of his time away from his family, she found out that he lived a full life with those she called Alex’s community. That Alex attended mass, helped those in the village and helped young gay beauty queens to chase their dreams and hold on to them. Lyn described that life as without re-grets at all. Love covered every word of Lyn’s message. Lyn uttered the names of Alex: Alexandra, Alicia and Sandra. Then Lyn asked the permission of everyone to allow her to call for the last time Alex by the name he was known in the family: Boy. Alex was the first male sibling. I saw some of the nieces of Alex dab tears off their cheeks. Those were for their Tito Boy and, later, Tita Girl.

The two funeral coordinators were relentless. “The rose repre-sents love and...” There was no need for those words. Love was overf lowing for the queen that afternoon from his family who understood him more than all the other kingdoms on this earth.

E-mail: titovaliente@yahoo.com.

By Lane FillerNewsday (TNS)

BEFORE I got married and had a kid, I existed in a near-constant state of shock, appalled by how bad people were at being couples and raising children. Why did spouses constantly natter over who spent money on

what and which one was currently leading in a decades-long contest of emp-tying the dishwasher?

During the holidays, give someone a break

And why did parents let children eat chicken nuggets at every meal and do shots of honey mustard like sailors knocking back whiskey on shore leave? Why did they allow their offspring to whine and carry

on? And what was with the empty threats? If you tell them, “One more syllable out of you and I will tell Santa you died in a wheat-threshing accident,” then you have to be will-ing to end gift-giving forever and

to lease your child to a farm during the harvest.

Then I got married. And eight months and eight days after the honeymoon, a daughter. And I found out why folks aren’t better at spousing and parenting. Because it’s all so @#$%¢&* hard! And really, it’s much more difficult than that. @#$%¢&* doesn’t even begin to de-scribe how much work it takes to be even a mediocre spouse and parent. And those who know tell me being a good or great spouse and parent is even more draining.

Spouses raise hell about money and chores because they never have enough cash or time, and because they never have enough rest and en-ergy to edit what they say. So “Honey, give me a hand” becomes, “Lane, if I have to empty the Diaper Genie one more time this week I’m going to drive the corner of the Pack ‘N Play through your skull.”

Realizing this stuff is tough is not a huge mental leap, but thinking about it this holiday season sort of led me to one: Whenever I’m frustrated that others aren’t doing things bet-

ter, it’s probably because what they’re trying to do is really hard.

It’s hard for a child overstimu-lated by gifts and food and strang-ers to not whine or cry, and it’s hard for that kid’s parents to re-act calmly. It’s hard for a grand-parent, sitting mostly in front of the television these days, not to keep telling the same stories from a time when they lived more and watched less. It’s hard to be a clerk in a department store during the busiest week of the year, and hard to be a waitress working at a

jammed restaurant. It’s hard to be a cop directing too much traffic, and the person working the desk at a busy emergency room.

My primary goal this season is to remember that we are all caught up in difficult lives, doing the best we can. Another is to act right, so that my wife and daughter don’t imme-diately focus on how hard it is to prove a wheat-threshing accident wasn’t really an “accident”, when I’m an old man who demands constant shots of honey mustard and eats only chicken nuggets.

Transportation Secretary Joseph Emilio A. Abaya said the Japan International Co-operation Agency is currently in the process of finalizing the  feasibility study for the project. “We’ll be able to bid that out within the term, hopefully by next year,” he said in an interview.  The deal is on top of the recently awarded deal to extend the 30-year-old train system from the present end-point at Baclaran to

the Niog area in Bacoor, Cavite.  The Dasmariñas project will add 15 more kilometers of service line to the future exten-sion in Bacoor.  “Currently, Cavite is experiencing rapid growth, and many of its residents travel to Manila for work and education purposes. The project will improve passenger mobility and reduce the volume of vehicular traffic in the Cavite area by providing a higher

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phFriday, December 26, 2014

Tobacco business key to LT Group’s 2015 rebound

DOTC wants LRT 1 Dasmariñasextension deal bid out in 2015

MINDANAO TO SEE END TO BROWNOUTS IN 2015By Lenie Lectura

MINDANAO is assured of adequate power supply next year due to the start of commercial operation of

more power plants in the region. “The projection in Mindanao is that with the coming in of new capacities, basically the Aboitiz power plant, there will be suf-ficient power already for [2015]. We are confident that after the long outages that we experienced, everything will be all right. Hopefully, there won’t be any outages. The new capacities will be sufficient to meet the needs of the island,” said Jerome Soldevilla, spokesman of Steag State Power Inc. Steag is owned by the German company Steag GmbH, with Aboitiz Power Corp. and La Filipina Uygongco Corp. as partners and shareholders. It owns and operates Mindanao’s first coal-fired power plant in Misamis Oriental. Steag has completed the repairs on its

210-megawatt (MW) coal plant, which gener-ates roughly a fifth of the region’s electricity. It went offline in February, after sustaining damage on its turbine-electric generating sets during a grid-wide power interruption. “The power plant of Steag is fully op-erational, and we are supplying 18 per-cent of Mindanao’s power. We are hopeful and confident that toward the end of the year, we will sustain our availability of 210 MW,” he said. The rehabilitation has been completed in time and since the incident in February, everything is normal. We are confident that we will have smooth sailing. Although our contracted capacity is only 200 MW, we are operating at full capacity,” Soldevilla added. Therma South Inc., a unit of Aboitiz Power, is also raising the generating capac-ity of its coal-fired power plant in Mindanao to provide more electricity supply in Davao. Therma South will have a gross capac-ity of 470 MW from 300 MW. It is set to

start commercial operations in the first half of 2015. Earlier the Aboitiz Group has expressed interest in acquiring government-owned power-supply contracts in Mindanao. Erramon I. Aboitiz, Aboitiz Equity Ven-tures Inc. president, said the company is keen on bidding for power plants and supply contracts. “We tend to look at all the power biddings, try to understand them and decide if we want to participate,” he said. Among the assets the company wants to pursue is the government’s contracted capacity with the 92-MW Mount Apo geo-thermal plants in North Cotabato. It is also interested to bid for the government’s contracted capacity with the 210-MW Steag coal plant. “I think part of the schedule of PSALM [Power Sector Assets and Liabilities Man-agement Corp.] is also to do the Steag in-dependent power-producer administrator. We will look at that also,” Aboitiz added.

Coloma: Noinformationon rumoredrevamp yet

By Butch Fernandez

MAlACAñANg played down talks of a year-end Cabinet shakeup amid looming vacancies in President

Aquino’s “inner circle”.   Communications Secretary Herminio B. Co-loma Jr. declined to confirm that Mr. Aquino was preparing to reshuffle his Cabinet to bring in new blood to enable the President, now nearing the last year of his term, to make an even stronger impact before bowing out in June 2016.   “We have no information on that,” Coloma told the BusinesMirror.   The Palace official also dodged queries to validate reports that Executive Secretary Pa-quito N. Ochoa Jr., one of the most trusted Aquino aides, is being eyed to replace outgoing Commission on Elections (Comelec) Chair-man Sixto S. Brillantes Jr.   At least two Comelec posts are expected to be vacated this year, triggering reports that Ochoa is on the short list of nomi-nees for the position, along with Justice Secretary leila de lima and Metropolitan Manila Development Authority Chairman Francis Tolentino.   The President is yet to announce his next appointee to permanently replace his resigned secretary, Enrique T. Ona.BSP sets deadline for shift to new encryption technology

By Bianca Cuaresma 

THE machines through which financial transactions and mercantile activities move must already be triple-data-

encryption-compliant beginning January 1, according to the Bangko Sentral ng Pili-pinas (BSP). Beyond the transit to so-called triple-data encryption standard, or 3DES, the various merchants, banks and financial institutions that use automated teller machines (ATMs) and point-of-sale (POS) terminals must also show proof of updated service providers by next month.  In a memorandum, all BSP-supervised fi-nancial institutions must submit a certifica-tion from vendors or from third-party service providers on the capability of their ATMs and POS devices to use more secure encryption

technology the banks are required to adopt for security reasons.  “As part of its continuing efforts to strengthen the country’s electronic retail-payment network and protect consumers against payment- card fraud, the Bangko Sen-tral ng Pilipinas, through the issuance of Circular 808 dated August 22, 2013, required all con-cerned BSP-supervised institutions to upgrade or convert their ATMs and POS system to allow the adoption of end-to-end triple-data- encryption standard by January 1, 2015,” the BSP said. “The required upgrade covers the whole ATM/POS network, which consists of host processors, switches, host security modules, ATM and POS terminals and all communica-

tion links connected to the network,” the central bank added.

The various banks and mer-chants that use the machines in question are required to submit proof of systems up-grades mandated by a previ-ous circular.

Banks are also required to submit to the central bank’s

core information-technology specialist group a certification signed

by their presidents and compliance officers on compliance with the implementation of the new electronic payments standard. In case of noncompliance, a bank’s submit-ted certificate must indicate the reason for noncompliance, the timeline within which they are to comply and the controls in place to mitigate the risk exposure arising from the

temporary nonadoption of 3DES. Both certifications must be submitted within 20 banking days from the issuance date of the memorandum. The BSP also said it may conduct onsite validation trips to con-firm industry compliance. Financial fraud in the Philippines is not widely reported but that did not deter the monetary authorities from adopting new-technology measures to mitigate or prevent their occurrence. Fraud often comes in the form of skimming or the pocketing of money from unrecorded transactions or billing businesses or people for services not rendered. Financial experts have said businesses in the Philippines typically lose more or less 5 percent of their annual revenue to some form of fraud. Financial-statement fraud is said to cost businesses untold millions of pesos.

By Lorenz S. Marasigan

The Department of Transportation and Communications (DOTC) is now working to make sure

the multibillion-peso contract for the extension of the Light Rail Transit (LRT) Line 1 to Dasmariñas, Cavite, will be bid out next year, a Cabinet official disclosed. 

capacity mass-transit system. It also aims to spur economic development along the extension corridor,” the project description on the Public-Private Partnership (PPP) Center’s web site showed.  Since the infrastructure program’s incep-tion in 2010, the government has awarded eight contracts so far, involving: n the P1.96-billion Daang Hari-South lu-zon Expressway project bagged by Ayala Corp. in 2011; nthe P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as

well as the BF Corp.-Riverbanks Develop-ment Corp. Consortium; n the P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; nthe P3.86-billion PSIP Phase II contract, partially awarded last year to the Megawide and BSP & Co. Inc.-Vicente T. lao Construc-tion consortium; n the P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the Megawide-World Citi Inc. con-sortium, also last year. nthe P1.72-billion Automatic Fare Col-lection System contract awarded to the AF Consortium of Ayala and Metro Pacific In-vestments Corp. (MPIC) in January; nthe P17.5-billion Mactan Cebu Interna-tional Airport New Passenger Terminal proj-ect bagged in April by Megawide Construction Corp. and gMR Infrastructures ltd.; and nthe P64.9-billion light Rail Transit line 1 Cavite Extension deal awarded in September to the light Rail Manila Con-sortium of Ayala and MPIC.  The administration aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.

ABAYA said the Japan International Cooperation Agency

is currently in the process of finalizing the feasibility study

for the project. “We’ll be able to bid that

out within the term, hopefully by next year.”

Morris Fortune Tobacco Corp. Inc., or the combined company of Philip Morris and For-tune Tobacco. The other half is controlled by Philip Morris, which also operates the com-bined company. lT group suffered its fifth straight quarter of profit fall, as the company said it is operat-ing on a “difficult operating environment.” As of the third quarter, lT group’s banking business contributes more than half of the company’s net income at P1.3 billion, followed by its beverage firm Asia Brewery Inc., at 32 percent of the total, while the to-bacco business was just at 19 percent and Eton Properties at 3 percent. The company said its attributable net income fell 67 percent for the nine-month period ending September to P2.5 billion from last year’s P7.6 billion. lT group’s income from the tobacco busi-ness amounted to a mere P462 million for the first nine months of 2014, a sharp decline from P2.8 billion reported last year. Tanduay Distillers posted a loss during the period of P83 million, due to higher material cost and also the increase in selling and market-ing expenses. For the third quarter, however, it posted an income of P89 million, which nar-rowed its losses for the nine-month period.

Continued from A1

PHL bonds seen riskier vs US counterpart

SO-CALLED bond spreads on Philippine IOUs widened further in the quarter ended September versus bond spreads

a quarter earlier, indicating increased risk aver-sion on Philippine debt notes and on other emerging-market debt instruments. A report only recently published by the Bangko Sentral ng Pilipinas (BSP) shows debt spreads widening in the July-to-September pe-riod when viewed against a similarly tenured US Treasury bond. Debt spreads compute the average differ-ence between debt instruments with different

credit ratings, in this case between Philippine debt instruments and higher-rated sovereigns with lower risks. Wider debt spreads mean in-vestors are more mindful or averse of the risks involved when holding emerging-market debt notes and tend to patronize the debt instru-ments of advanced economies. Philippine debt spreads tightened in July this year when it became apparent that the US, still the country’s top trading partner and host of its various investment activities, pro-gressively showed increasing macroeconomic

See “Bonds,” A2