Assistant Secretary for Trade Policy and Industry Development Ceferino S. Rodolfo said negotiations on the Efta-Philippines FTA are steadily ad-vancing, with its conclusion seen by the first half of 2016.  This will put the country in a good position to improve trade with Efta—the four-country bloc composed of the wealthy nations of Liechten-stein, Norway, Iceland and Switzer-land—from less than 1 percent of the country’s total external trade in 2013 to at least 2 percent to 3 percent in the first two years of the proposed FTA’s implementation.  “We’re looking at having a final

Continued on A2 Continued on A2

Continued on A9

PESO ExchangE ratES n US 47.1550 n jaPan 0.3849 n UK 71.4823 n hK 6.0848 n chIna 7.3712 n SIngaPOrE 33.8393 n aUStralIa 34.4474 n EU 51.6300 n SaUDI arabIa 12.5686 Source: BSP (4 December 2015)

www.businessmirror.com.ph n Thursday 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 7 sections 36 pages | 7 days a weekn Monday, december 7, 2015 Vol. 11 No. 60

A broader look at today’s businessBusinessMirrormEDIa PartnEr Of thE yEar

2015 EnvIrOnmEntal lEaDErShIP awarD

UnItED natIOnSmEDIa awarD 2008

INSIDE

execuTive views e4

holiday party celebrity makeup tips

ramoncito s. fernandez

Island airstrips new headache for neighbors, US

European bloc’s FTAoffer ‘unprecedented’

malacaÑang UnmOvED by frESh lObby fOr cha-cha

Clark holds key for PHL to reaprewards of ballooning air traffic

SpEcIal rEport

life d1

crk.

clar

kair

port

.com

By Lorenz S. Marasigan

First of three parts

DOMESTIC and international air-traffic volumes in the Phil-ippines have ballooned over

the past decade, with growth averag-ing 10 percent annually since 2005. While seemingly a positive develop-ment, this is still seen as both a boon

and a bane to the rising tiger of Asia. The increased volumes mean an upward tick in revenues from tourism, one of the growth drivers of the coun-try’s local output. But with airport fa-cilities remaining as they were 10 years before, the Philippines will continue to carry that stigma of having one of the worst airports in the world, no thanks to runway and terminal congestions

at the Ninoy Aquino International Airport (Naia). According to the International Air Transport Association (Iata), such a situation places the Philippines at the losing end, with potential revenues from traffic lost to other hubs in the region. “Recent trends suggest that capac-ity constraints are resulting in traffic

China’s campaign of island building in the south China sea might soon quadruple the number of airstrips available to the People’s Liberation army

in the highly contested and strategically vital region. That could be bad news for other regional contend-ers, especially the Us, the Philippines and Vietnam. The island construction work that is creating vast amounts of new acreage by piling sand on top of coral reefs is now moving into the construction stage, with

buildings, harbors and, most important, runways appear-ing in recent months. China now operates one airfield at Woody island in the Paracel island chain, and satellite photos show what appears to be work on two, possibly three, additional airstrips on newly built islands in the spratly archipelago to the east. The bases could have a “significant impact on the local balance of power” by helping bolster the forward pres-

ence of Chinese coast guard and navy forces, said Euan Graham, director of the international security Program at the Lowy institute in sydney, australia. as with most south China sea developments, China has remained opaque about its plans for the island airstrips. at a recent monthly briefing, Defense Ministry spokes-man Wu Qian declined to say how many China planned to build or what their purpose would be, repeating only

See “Island airstrips,” A9

By Catherine N. Pillas

The  four-country european Free Trade Association (efta) bloc is giving “unprecedented” tariff-elimination

concessions to the Philippines in the efta-Philippines free-trade agreement (FTA) now being negotiated, giving local exporters—especially those engaged in processed food— a prime opportunity to boost shipments to the wealthy four-nation group. 

By Butch Fernandez

MALACAñANg kept mum on renewed efforts of Philippine

business groups and foreign chambers of commerce to have the economic provisions of the 1987 Constitution amended. The business groups over the weekend aired anew its “strong support” for the pas-sage of a long-pending House-Senate resolution for Charter change (Cha-cha).         The resolution, authored by Speaker Feliciano Belmonte Jr., proposes to include the phrase “unless otherwise provided by law” in some sections of Ar-ticles XII (National Economy and Patrimony); XIV (Educa-tion, Science and Technology,

Arts, Culture and Sports); and XVI (general Provisions).        Asked on Sunday if Presi-dent Aquino would heed the latest appeal of foreign and lo-cal business leaders supporting the clamor for Cha-cha to relax restrictions on foreign equity ownership, Communications Secretary Herminio B. Coloma Jr. could not give a categorical Palace position on the issue. “No info on that,” Coloma said. In a joint statement issued over the weekend, the Makati Business Club, three major business groups and six for-eign chambers urged senators and congressmen for early ap-proval of Resolution of Both Houses 1 (RBH 1), championed by Belmonte.

European bloc’s FTA offer ‘unprecedented’. . . Continued from A1

Malacañang unmoved by fresh lobby for Cha-cha

BusinessMirror news@businessmirror.com.ph Monday, December 7, 2015 A2

Newsagreement that’s good for us by mid-2016,” Rodolfo said. The Efta bloc, he said, is willing to give concessions for Philippine products at a scope that appears to have never before been given

to the group’s other FTA partner-countries.  “The Efta countries are willing to eliminate all duties on all of their indus-trial products. In agricultural products, they’re willing to offer to us a level of

tariff elimination better than what they have given to any of their other FTA part-ners,” Rodolfo said.  “They’re looking at us as an opportunity to establish their footprint in Southeast

Asia,” the trade official reasoned, when sought for comment on what was described as “unprecedented” benefits from the Efta-Philippines FTA. 

In agricultural products, the Efta coun-tries are seen to open their markets to tropical fruits, coconut-based products and canned tuna, but cited more advantages for processed agricultural food rather than fresh-food products. 

Efta has set a reasonable product-certi-fication hurdle for goods from the Philip-pines, making it easier for local exports to enter the market under the proposed FTA. 

“We still have to set standards for our products, of course. Maybe we’ll have a list-ing of priority products, but all they want is for us to certify the products based on our own standards, and they’ll accept them,” Rodolfo said. 

In return, Efta seeking to access the

Philippine steel and auto-parts markets—a point that won’t be contentious, according to Rodolfo. The trade official said the Philippines has little production of steel, and the auto parts that Efta is exporting are precision auto parts.  “The kind of steel they have isn’t the basic type; they have specialized steel. For auto parts, it’s the same; they produce high preci-sion, so they would not compete with locally manufactured,” he emphasized.  The Department of Trade and Industry will conduct the fifth and possibly last round of negotiations with Efta in February 2016.  The Philippines imported $400 million worth of goods from the Efta bloc in 2013 and shipped $300 million worth of prod-ucts to the four countries in the same year. Both figures represent less than 1 percent of  the Philippines’s imports and exports for that year.

It added that RBH1 has been approved on second reading in the plenary, but the third-reading vote requires approval of three-fourths of the members of the House. “Speaker Belmonte has placed passage of the resolution among his highest legislative priorities during the recently resumed House session,” the businessmen noted. They pointed out that Senate President Franklin M. Drilon had also “committed to our business groups that the Senate will discuss the counterpart resolution in the Senate authored by Sen. Ralph Recto after RBH1 is approved by the House.” “We wish to emphasize several points in support of early approval of RBH1: Since the year 2000, Filipino business leaders and economists have recommended replacing the constitutional restrictions on foreign equity with specific laws. RBH1 is the first serious effort to undertake this often-rec-ommended reform,” the statement added.

According to the businessmen, “the con-stitutions of almost all countries in the world do not contain restrictions on foreign invest-ment. Most countries [which] do impose some restrictions on foreign investment do so through legislation or administrative orders that can be changed to suit shifting national priorities.” They asserted that much has changed in Asia since the restrictions were placed in the 1987 Constitution, noting that the Philippines has joined the World Trade Organization, agreed to open trade and investment within Asean and with Asean Plus partners Australia, India, Japan, South Korea and China. The businessmen also recalled that just recently, the Trans-Pacific Partnership (TPP) was agreed upon by 12 countries that account for 40 percent of global GDP. “Because the TPP provides for minimum barriers to cross-border investment flows among members, the Philippines may not be able to join unless some restrictions can be reduced,” they said.        They prodded the government to  “maxi-

mize the amount of foreign investment generated as a means to drive down unemployment and underemployment levels, pointing out that while there has been a significant increase in FDI [foreign direct investment] since 2010, amounting to over $6 billion a year in 2014, this represents only 5 percent of total FDI in Asean, which is small con-sidering that the Philippines accounts for 16 percent of the population of Asean.”        “Note as well that in recent years, Asean has received more FDI than China, estimated to be in the amount of $100 billion per year,” the businessmen said.        Moreover, they pointed out that there have been only two significant liberaliza-tions (covering casinos and retail trade) in the Foreign Investment Negative List over the more than two decades since the important 1991 reforms in the Foreign Investment Act was made.        “Constitutional restrictions on for-eign ownership on certain industries will remain until Congress and the President enact specific laws to remove or amend them,” they added. “We believe that achieving our goal of sustainable and in-clusive growth requires the generation of a significant number of jobs. Attracting massive amounts of foreign-investments, meanwhile, is among the best means by which to create these employment oppor-tunities. Easing our foreign investment restrictions may also be critical in light of our commitments to the Asean Economic Community, and our aspiration to join the Trans-Pacific Partnership and forge an advanced free-trade agreement with the European Union.”        The businessmen added that con-sidering the above points, “it is our strong position that there is no better time than now to begin the process of updating the outdated restrictions in our Constitution through RBH1.”         They noted that the Philippines has enjoyed enhanced economic prospects and is on the radar screen of the inter-national investment community—and these will be further improved by higher foreign investments. “It will be unfortu-nate if the Philippines fails to take ad-vantage of this golden opportunity and realize the potentials that a liberalized trade and investment regime will bring.”

Continued from A1

news@businessmirror.com.ph Editor: Dionisio L. Pelayo • Monday, December 7, 2015 A3BusinessMirrorThe Nation

The Palace confirmed that the PNP and AFP, in a meeting with the Commission on Elections (Com-elec) last week, also firmed up

coordinated action to crack down on private armed groups likely to mar government efforts to hold peaceful and orderly presidential

elections on May 9 next year.Communications Secretary Her-

minio B. Coloma Jr. said the Comelec deputized soldiers and police as a primary force in ensuring security and peace and order in the conduct of the elections.

Coloma said in Filipino that the meeting between officers of the AFP and the PNP mainly discussed the enforcement of the gun ban.

The Palace official pointed out that experience has proven that strict enforcement of gun control during the election season is a key factor in ensuring orderly elections.

According to Coloma, AFP and PNP field teams have already been

given the green light to set up check-points in strategic areas.

Coloma added that authorities, at the same time, are likewise closely monitoring private armed groups.

“Ang pagkontrol, ’yung pagpigil sa paggamit at sa operasyon ng mga private armed groups ay isa rin sa mga dahilan kung bakit noon pong 2013 elections ay napanatiling generally peaceful po sa bu-ong bansa, at sisikapin muli ito ng pinagsa-mang pwersa ng Comelec, AFP at PNP.”

The Secretary said all efforts are being undertaken to ensure peaceful and orderly electoral ex-ercise to pick President Aquino’s successor in the upcoming presi-dential polls. Butch Fernandez

Palace orders troops, police to startmove vs armed groups, loose gunsMALACAÑANG reported on

Sunday that the Armed Forces of the Philippines (AFP) and

the Philippine National Police (PNP) are setting up strategic checkpoints to strictly enforce the gun ban in advance of the 2016 election campaign.

By Recto Mercene

THE Iglesia ni Cristo (INC) does not have an Airbus airplane, Spokesman Edwil Zabala said on Friday to squelch

claims the church has an Airbus 330-202 that reportedly costs between P8.8 billion and P11 billion. INC critics alleged the church transports its assets through the A330-202 from the United States to the Cayman Islands. The Civil Aviation Authority of the Philippines (Caap) denied having registered any INC-owned Airbus. “Wala [none],” Caap Deputy Director General Rodante Joya replied in a text message when asked if the Caap had registered an Airbus owned by the INC. However, airport sources said INC owns three Agusta helicopters. The single-engine chopper has an approximate range of 305 kilometers while carrying 12 passengers. These helicopters could perform various roles such as VIP- or corporate-transport, fire-fighting, law enforcement, search and rescue, emergency medical service, disaster relief and maritime patrol. Expelled former Minister Isaias Samson Jr. alleged that INC leaders have skimmed cash collections since 2011 and had them deposited from the US, “possibly in the Cayman Islands,”

transported allegedly via the church-owned Airbus. Caap records also indicate the INC had not registered any B-737 jet in the Philippines. On Wednesday two former ministers denied the allegations that some of its officers maintained personal and unauthorized offshore bank accounts in the Cayman Islands or in Switzerland, and that its leaders were skimming cash off collections in the US. “We follow protocols for the deposit of cash collections. We also have very stringent audit procedures, otherwise the church would not be granted tax-exempt status by the US government,” Zabala said in a statement. He challenged expelled ministers Samson and Vincent Florida to prove that the church had offshore accounts in the Cayman Islands and in Switzerland. “We are willing to sign a waiver. If they can prove that any of our INC leaders have offshore accounts in the Cayman Islands or in Switzerland, they can have the cash in all of them,” Zabala said. Samson, whose earlier complaint for serious illegal detention against the INC leaders was earlier dismissed by the Department of Justice, alleged that there were irregularities in the handling of the church’s funds in the US.

Iglesia ni Cristo exec denieschurch owns pricey airplane

VICE Presidential candi-date Francis G. Escudero expressed hope President

Aquino will consider giving priority to the elderly and terminally ill in-mates if the Chief Executive follows tradition and grants clemency to deserving prisoners in time for this year’s Christmas season.

“These people should be treated with compassion, just like any other citizen of the country who needs special attention,” Escudero said. “I believe it is only fair and just to grant them clemency and let them spend Christmas with their families.” He added that staying in over-crowded jails will only aggravate the

poor situation of senior citizens and those under critical health conditions. Escudero noted the last time the Chief Executive used his clemency power was in December 2012 when he ordered freed eight elderly in-mates, whose ages range from 71 to 85 years. He said it has been the practice

of Malacañang to grant executive clemency to prisoners during the Christmas season. Executive clemency refers to “re-prieve, absolute pardon, conditional pardon with or without parole condi-tions and commutation of sentence as may be granted by the President of the Philippines.” Recto Mercene

2016 poll runner seeks presidential clemency to elderly, dying inmates

By Jovee Marie N. dela Cruz

ApArty-list lawmaker on sunday vowed to block the proposed power-rate in-

crease of the National power Corp. (Napocor) supposedly for its recov-ery-cost adjustments.

rep. Neri Colmenares of Bayan Muna said customers of the Napocor will experience an increase of p2.06 per kilowatt-hour (kWh) in luzon; p2.32 per kWh in the Visayas; and p1.45 per kWh in Mindanao once the Energy regulatory Commission (ErC) approves the firm’s application for recovery-cost adjustments.

the proposed rates, the Napocor

said, reflect additional operating costs incurred by the Napocor-small power Utilities Group as a result of the fluctuation of fuel prices used in power generation.

According to Colmenares, Napo-cor’s application covers the billing period from January to June 2014, and would pass on to customers p1.89 billion worth of their fuel costs over two years.

the Napocor is allowed to recover this deferred fuel costs through the Generation rate Adjustment Mecha-nism (GrAM).

“it seems that the Napocor is try-ing to pull a fast one, especially now that most Filipinos are busy with

holiday preparations and the up-coming elections. Fuel prices have been down since last year and at their lowest in decades why are they saying that they have to recover fuel costs?” Colmenares asked.

the lawmaker said he is now co-ordinating with the ErC as to the

status of the Napocor petition, and is set to file a motion to intervene to stop these rate hikes.

“What is worse, though, is that in a separate application, the Na-pocor is also seeking to recover another p8,774,702 in deferred foreign exchange [forex] costs for the billing period of January to June 2014 through the imposition of a p0.0178-per-kWh incremental currency exchange-rate adjust-ment [icera] over a period of 12 months,” he said.

in a BusinessMirror report, the Napocor said the proposed adjustment is “fair and reason-able as it is computed in line with

the GrAM rules.”Also, it added that the proposed

icera, which was approved by the Na-pocor Board, is “fair and reasonable.”

the GrAM and icera are two ErC-approved adjustment mech-anisms designed to allow the Na-pocor to recover actual and incre-mental fuel, independent power producers and forex fluctuation costs that it incurs in the course of producing electricity.

Meanwhile, House Deputy Mi-nority leader Arnel ty said the deci-sion of the Organization of the pe-troleum Exporting Countries (Opec) to keep producing oil at current high levels will benefit the philippines—a

net oil importer.ty said in a statement that

Filipino households, businesses and even the government, which is a huge consumer, would gain in a big way from a prolonged low-cost oil environment.

“it basically means that the phil-ippines will continue to benefit from low-priced oil in the months ahead,” he said.

According to ty, oil prices plunged below $40 per barrel immediately after the Opec decided on Friday to maintain current production levels at around 31.5 million barrels of oil per day, despite a growing surplus in world markets.

BusinessMirror news@businessmirror.com.ph A4

Economy

briefsimprove internet service

to help msmes–angaraSEN. Juan Edgardo Angara urged the government to prioritize the improvement of the country’s Internet service to develop local e-commerce industry and help micro, small and medium enterprises (MSMEs) penetrate the global market. “I think e-commerce is one sector beaming with potential which we have yet to tap. We are known to be big users of social media, and given the amount of time we spend on the Web, Filipinos will no doubt embrace online shopping,” Angara said. According to the Department of Trade and Industry, local buy-and-sell transactions coursed through the Internet were valued at $1 billion last year, and is expected to double this year. Recto Mercene

By Lenie Lectura

tHE lone bidder for the sup-ply and delivery of 3,000 electric-powered tricycle (e-

trike) has agreed to lower the cost by 27 percent, an official of the Department of Energy (DOE) said last week. Uzushio Electric Co. ltd. of Ja-pan and its local partner BEMAC Electric transportation philippines inc. submitted a bid of p364.17 mil-lion. Energy Undersecretary Donato D. Marcos said the department was able to negotiate for a lower cost. “We were able to lower the price by 27 percent,” Marcos said. Marcos added that the agency would again try to further lower the cost. “the result of the first negotia-tion was for the lone bidder to lower it by 27 percent. Now we are negoti-ating again with the presence of an e-vehicle expert. We are hoping that it can still be lowered.” the e-trike project is a joint undertaking of the DOE and the Asian Development Bank (ADB). the objective, of which, is to re-

place some 100,000 gasoline-fed tricycles by 2017. the ADB will provide financing of $300 million for the $504-million project. the government will fund $99 million, and Clean technology Fund, $105 million. the e-trike project aims to pro-mote sustainable transport, ad-dress the increasing carbon emis-sions in major cities and reduce oil dependence of the local transport sector. the project also aims in transforming the public tricycle sector and jump-starting a new industry in the transport sector. Marcos said Uzushio Electric Co.

ltd. of Japan and its local partner BEMAC Electric transportation philippines inc. will be submitting a counter offer soon. “We have to seek again a No Objection letter from the ADB. After it is issued, we have to rec-ommend the award of the project to the DOE secretary,” Marcos said. the project’s objective is not only to replace the traditional gasoline-fed tricycles but also to reduce the transport sector’s annual petroleum consumption by 2.8 percent (equiva-lent to 89.2 million liters) per year and achieve 79 percent carbon di-oxide foot print avoidance. Each e-trike unit features a 3-kil-owatt-hour lithium-ion rechargeable battery. it can comfortably seat up to five passengers. the entrance is on the pedestrian side of the vehicle. Each unit complies with the land transportation Office’s road Wor-thiness Guidelines and regulations. it requires less maintenance, and de-signed for easy driving, maneuver-ability and passenger comfort. there is no noise and there is less vibration than conventional tricycles.

STAkEholDErS in the shipping and logistics industry have recently gathered to discuss the “challenges and opportunities” they are likely to face in the coming years. During the Asia logistics Summit 2015 held at the Makati Diamond residences, and presented by lBC Express, lBC Chief Marketing officer Javier Mantecon described the gathering as “both significant and timely.” “In the coming years, the logistics industry is in a unique position to contribute and benefit from [the Philippines’s growing economy], hence there is a need to ensure its efficiency, capabilities and ability to integrate new players and technologies,” Mantecon told the participants. In line with the theme “Challenges and opportunities in logistics” here in the Philippines, lBC Express Senior Vice President Charlie Villasenor discussed sustaining logistics growth through three E’s: Ethics, Excellence and e-Enablement through technology. In his presentation, he stressed that ethics and sustainability in the logistics industry is not an option, but a must. Joel R. San Juan

The Philippines is finally moving forward with its proposed free-trade agreement (FTA) with the european Union (eU) after two years of being in

limbo, as an official of the Department of Trade and Industry (DTI) announced that the two countries will likely start formal negotiations this month. Trade Assistant Secretary for Trade Policy and Industry Development Ceferino S. Rodolfo said the Philippines may be exiting the scoping stage of FTA talks and would be moving onto formal negotiations. While keeping mum on the issue, Rodolfo said DTI has made good on its promise to fast-track negotiations for the eU-Philippines FTA this year. he said a “significant” development that led to this breakthrough in talks is the Philippines’s good governance and liberalization efforts. “They saw our efforts in passing the competition law, even after two decades. Then there’s the cabotage law, and also the liberalization of the banking sector

for foreign players,” Rodolfo said in a media seminar last Saturday. The seminar was organized by the Makati Business Club. “All of these are for good governance and for liberalization, and they saw that reform efforts will continue. They became more confident about the Philippines,” he added. The proposed FTA between the Philippines and the eU has been at the scoping stage since 2013, and has not made any significant progress due to the country’s foreign equity limitations and its compliance to international environmental conventions. For one, the european Commission (eC) issued a “yellow flag” to the Philippines in 2014 for not taking sufficient measures to combat illegal fishing. In particular, the eC said the Philippines does not have a fisheries monitoring, sanctioning and control system in place. This was revoked in April after the Philippines amended its Fisheries Code to comply with the

28-country bloc’s drive against unregulated and illegal f ishing. Securing preferential trade and investment benefits through an FTA is a key pillar in the Philippines’s trade agenda with the eU, as this will cement the trade advantage that the country is already enjoying through the european Union-Generalized System of Preferences Plus (eU-GSP+). The eU-GSP+ is a preferential trade scheme which the Philippines has been benefiting from since December 2014. The eU-GSP+ allows the Philippines to export 6,274 products to the eU duty-free. This is an upgrade from the regular eU-GSP, which only covered 6,209 products, of which only 2,442 products are accorded duty-free privilege. Products that will benefit from the upgraded GSP include footwear, garments, coconut oil, fruit and foodstuff. The Philippines is the only beneficiary of the eU-GSP+ among the Asean nations. Catherine N. Pillas

in the latest Business Expectations survey (BEs) conducted by the central bank, firms across the country said that the employment outlook index for the next quarter decreased to 19.5 percent, from 22.3 percent in the last quarter’s survey. the index is computed as the percentage of firms optimistic about added employment and expansion plans minus the percentage of firms, which indicated otherwise. A lower index means that the number of firms wanting to expand and hire more em-ployees in the given period decreased due largely to their perception on particular eco-nomic developments. “this indicates that more firms will continue to hire new employees than those that said otherwise, although the number of new hires could decrease compared to the previous quarter’s survey,” the central bank said. Among the sectors, firms in the con-struction and retail trade sectors were less optimistic, while those in the industry and services sectors were steady in their hiring intentions. Also, despite the brisker business expected in the fourth quarter during the year in antici-pation of the holiday season, fewer businesses also look to expand in the period up until the

first quarter of next year. “this was largely driven by the steady outlook of the manufacturing subsector. All other industry subsectors recorded weaker expansion plans,” the central bank said. the overall BEs, as earlier reported by the central bank, showed that local firms had rosier expectations of the country’s eco-nomic performance in the fourth quarter of the year. Among the reasons ascribed to their more upbeat outlook was the expected increase in consumer demand during Christmas, main palay harvest and milling seasons, sustained increase in sales orders and projects leading to a higher volume of production and expan-sion of businesses. the surge of remittances during the pe-riod in anticipation of Christmas spending is also a positive factor for businesses in the fourth quarter. the sentiment of businesses in the phil-ippines mirrored the buoyant business outlook in Australia, Japan and the euro area, but was in contrast to the weaker sentiment of businesses in the United states, the United Kingdom, China, Hong Kong, Germany, russia, indonesia, sin-gapore and india.

Monday, December 7, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Fewer jobs available in Q4–Bsp survey

By Bianca Cuaresma

Fewer job opportunities should be expected to be available in the last quarter of the year, as businesses in the country

are looking to hire less people in the October- to-December period, the Bangko Sentral ng Pilipinas (BSP) said.

taKing it easY Workers rest beside a mural at Fort Global City during their breaktime. NONIe ReYeS

PHL, EU to begin negotiations for FTA

Lone bidder for e-trikes agrees to cut cost–DOe

Lawmaker to block Napocor’s proposed power-rate hike

ECoNoMIES in the Asia and the Pacific region, including the Philippines, are expected to post an average growth of 3.4 percent next year, according to a report from the Asia-Pacific Economic Cooperation (Apec). In the latest Apec Economic Trends Analysis, the economic bloc expects 2016 to be better for the region due to upbeat export performance among developing economies and higher growth in advanced economies.

asia paciFic to grow BY 3.4 percent in 2016–report

execs reveal challenges in phl logistics

While Apec expects 2016 growth to be better than the forecast GDP growth of 3.1 percent this year, the region‘s growth next year will still be slower than world GDP growth of 3.6 percent. “Domestic demand is expected to provide cushion amid the weakness in external demand and overall pace of global economic activity,” Apec said in the report. Cai U. Ordinario

Colmenares TY

marCos: “The result of the first negotiation was

for the lone bidder to lower it by 27

percent. now we are negotiating again

with the presence of an e-vehicle expert.

We are hoping that it can still be lowered.”

news@businessmirror.com.ph Monday, December 7, 2015 A5BusinessMirrorEconomy

Rolando Inciong, head of ACB’s communication and public affairs unit, said the illegal activity is one of the major causes of biodiversity loss in the region, and organized crime group’s elaborate operation can only be stopped through intensified regional cooperation. “Mostly, live wildlife trade is for pets, to some extent, alternative medi-cine and food. There is a demand for rare species for their parts on the belief they have medicinal value,” he said.

Southeast Asia has been the target of organized crime groups engaged in the illegal wildlife trade because of the region’s rich biodiversity, Inciong told participants of a symposium on biodiversity reporting for media and communicators on Friday. The symposium, Biodiversity 101, was organized by the ACB to encour-age biodiversity reporting to increase the people’s level of awareness of the impacts of biodiversity loss. “Those engaged in illegal wildlife

have evolved. Before, they engage in illegal wildlife because of pov-erty. Now, it’s an organized crime,” Inciong said. In the Philippines the govern-ment is continuously conducting capacity-building training among wildlife law enforcers to put wildlife criminals behind bars. Rogelio Demelletes, senior Ecosys-tems Management specialist of the Department of Environment and Natural Resources (DENR), said the agency, through the Biodiversity Man-agement Bureau, is now strictly follow-ing the DENR’s wildlife-enforcement manual of operations to ensure higher conviction of arrested illegal wildlife traders. But, he said, those engaged in the illegal activity are becoming more creative and elusive to avoid arrest. According to Demelettes, wild-life law enforcers are also subjected to threats and harassment. Most law en-forcers, he said, are facing administrative and criminal cases for doing their jobs. Deme l letes sa id wh i le l aw

enforcers, such as police, military and agents of the National Bureau of Investigation are armed with guns and badges, wildlife law enforcers have nothing to defend themselves during risky operations. They also receive death threats, he said. Wildlife law enforcers, he added, also conduct entrapment operations to lure out sellers of illegally harvested wildlife—including threatened flora and fauna—and other natural resources. Demelletes said illegal wildlife traders often have connections with people in high places, too, and illegal activities, such as harvesting or col-lection and transport of illegal wild-life, are now well-financed. Illegal wildlife trade, he said, is a lucrative business and targets rare species—mostly for pets—and are sold from P3,000 to as high P100,000, or high-er, depending on the rarity or even conservation status. Trading, he said, is often conducted through text messages, and suspects use untraceable cellular phones.

To avoid entrapment by law enforcers, the suspects demand partial advance payment and will only bring buyers to a secret loca-tion, where money changes hands. Sometimes, the buyer will only get the product after the suspects have conducted their own surveillance to make sure the transaction is not a sting, he added. He said wild animals, especially birds and reptiles, are among those commonly sold by wildlife traders. “Pag rare mas mahal. Depende ang presyo. May mga imported din na naka-kalusot galing ibang bansa,” he said. A Sparrow hawk and Falconet, or young falcon, cost P10,000. A baby eagle cost around P15,000. A Sulcata tortoise, meanwhile, costs as high as P100,000. A red Iguana is sold at P15,000, while a tiger cub costs P300,000. A myna is sold P4,000, while a civet, or musang, is sold at P3,000. He said wildlife traders commonly use small motorized bancas to avoid checkpoints often encountered by

those that transport by land. But even those who use land transport are now able to effectively conceal illegal wild-life, using vegetable and fish delivery trucks, or fruit-dealer trucks. According to Demelletes, there is a also a need to tighten watch at seaports and airports. He said only a trained wildlife law enforcers can detect illegal wildlife, as the sea-ports and airports only have x-ray machines or scanners that can detect metals and gunpowder. “Wala kasing heat sensor,” he said. A live animal cannot be detected using a special wrapper to conceal it. An empty canister with aluminium in it, he said, can be used to conceal even a snake or rare lizard species and can pass the x-ray without being noticed.The ACB said there is a need to dis-courage buying of wildlife and their by-products for the supply to stop. He appealed to the public to help stop illegal wildlife trade by report-ing the activities and by not buying illegally harvested wildlife.

Illegal wildlife trade in Asean now worth $20BBy Jonathan L. Mayuga

The Asean Centre for Bio-diversity (ACB) called for stronger collaboration among

Asean member-states to curb wildlife trafficking in the region, now valued from $10 billion to $20 billion.

B C M-B

AS the newest place to be in Tagaytay, Hotel Monticello rises as a

welcome retreat for travelers seeking comfort and luxurious stay in a boutique hotel that combines European style with warmth of Filipino hospitality.

With 41 well-appointed rooms, three food and beverage outlets, a grand ballroom, function rooms, swimming pools, gym and spa facilities, guests of Hotel Monticello can look forward to a� ordable accommodations and meals while enjoying the relaxing and cool atmosphere of the Tagaytay ridge.

While the name is from an Italian phrase meaning small moun-tain, the hotel is owned by the enterprise that runs the PATTS Col-lege of Aeronautics.

It was Jose Eduardo Valdez, Hotel Monticello’s general manager, who hatched the idea � ve years ago of putting up a small facility wherein Tourism students of PATTS College can train and practice their skills. His parents, Atty. Ambrosio Valdez Sr. and Ma. Felisa Valdez, nurtured his idea with great enthusiasm until it became a big dream turned reality.

“We broke ground in 2010 and started construction January 2011. � en came Typhoon Glenda and we sustained a lot of dam-age, but we bounced back stronger with a healthy respect for Moth-er Nature,” Valdez said.

Upon entry in this European-style boutique hotel, guests are greeted by the twin grand staircases, the high ceiling, crystal chandelier, the Atrium awash with natural lighting and the fresh, slightly sweet scent. Prepared exclusively for Hotel Monticello, the hotel’s scent was chosen by CFO Ma. Felisa Valdez. “We want our guests to build memories with us here in Hotel Monticello. We want to join them in their life’s most important moments, such as weddings, debut parties and reunions. So, we made sure the design has that homey feel with optimum space and delightful comfort.”

After its soft opening in April, Hotel Monticello has been re-ceiving good reviews, especially from the weekend crowd. Compli-ments go to their warm and friendly personnel, as well as to their guest rooms and penthouses, and culinary o� erings.

“Given the temperatures in Tagaytay, our 25-meter pool is kept warm at 30 degrees Celsius, while the kid’s pool is slightly warmer. For relaxation, there’s the spa for massages and our fully equipped gym to burn those calories from the good food prepared by Chef JR Royol, the � rst winner of the MasterChef Pinoy Edition,” Valdez added.

Recently appointed as executive chef, Royol promises to bring something di� erent from the kitchen of Hotel Monticello. He en-visions of introducing dishes revolving around the native cuisines

THAT ‘SMALL MOUNTAIN’ IN TAGAYTAY

TEMPERATURE-CONTROLLED lap pool

MONTICELLO o� cials, Hotel Monticello Chairman Atty. Ambrocio Valdez Sr. (left), CFO Ma. Felisa Valdez (second from left), General Manager Dondi Valdez, Directors Romerico Dumlao (third and second from right, respectively) and Atty. Mercedes Gatmaytan (right) in the ceremonial toast with Cavite First Lady Dr. Agnes Remulla (third from left) and Gerry Panga (center) of the Department of Tourism.

BusinessMirror Editor: Carla Mortel-Baricaua

Tourism& EntertainmentMonday, December 7, 2015A6

ALL roads led to Albay as the province hosted the  Paci�c Asia Travel

Association (Pata) New Tourism Frontiers Forum 2015  on  No-vember 25 to 27 at �e Oriental Hotel in Legazpi City.

With the theme “Ecotourism: Transcending Climate Change,” the three-day event brought together professionals to share their insights and experiences in marketing and managing tourism growth to lesser-known destinations for sustain-able growth and development of travel and tourism.

�e event stemmed from the need to help secondary and tertiary areas grow and develop into widely recognized, bucket-listed getaways.

Formerly known as the Pata Adventure Travel and Re-sponsible Tourism Conference, the rebranded  forum includes a technical tour and a Tourism Marketing Treasure Hunt, a �rst of its kind in the annual meet.

�e latter aims at making professionals gain �rst-hand experience in discovering and promoting attractions, and tourism products and services that are relatively unknown to the global market.

Held in partnership with the Department of Tourism (DOT), resource persons will examine the ecotourism and adventure travel industry, marketing new destinations and connecting adventure hubs.

“�e dispersion of tourism is the association’s main advocacy this year, and one that I hold very dear to my heart. �e Pata CEO Challenge 2015 is an av-enue that addresses this issue, and now this event will allow destinations the opportunity

to learn from various travel and tourism stakeholders how it is best to market and manage these new and emerging desti-nations, which are ready to be discovered,” Pata CEO Mario Hardy says.

He added that communities will economically bene�t through the dispersion of tourists to these new frontiers. He also noted that the confab explored new opportu-nities based on sound ecosystems and climate-change adaptations of which Albay has become a world-class role model.

“For its tourism marketing, Albay has partnered with the DOT in targeting the hosting of treaty conferences, like UN-WTO [United Nations World Tourism Organization] to gain more bang for our bucks, and we consider Pata in the same cat-egory. We are happy to present our ecotourism at the center of our sustainable development strategy,” Albay Gov. Joey S. Salceda says.

He also added that the prov-ince was chosen as venue for the prestigious event because of its achievements in climate change adaptation and disaster risk reduction management, be-ing among the country’s most vibrant and the fastest-growing destinations. It is also a UN Global Model for Disaster Risk Reduction and Climate Change Adaptation.

In a related development, Al-bay won the Top Destination Award in the �rst-ever $1-mil-lion Pata CEO Challenge, which was awarded at the Pata Aligned Advocacy Dinner in London on November 2.

It topped the Regions/States/Provinces category, while �ek-kady, Kerala, India, won top

honors in the Second and �ird Tier Cities category.

�e search, which attracted entries from across the world, embraces the uniqueness and diversity of heritages, cultures, customs and natural beauty of various destinations. It aims to promote and enhance the num-ber of visitors to emerging des-tinations and enhance sustain-able tourism development.

According to Hardy, Albay and Kerala had the most au-thentic, culturally diverse and innovative o�erings, but needed the most assistance in helping promote their assets.

�e winners will work with TripAdvisor, to develop and cre-ate digital marketing campaigns to showcase their destination to a global audience, valued at $500,000 each. A dedicated team from the leading travel web site will work with the winners in cre-ating marketing campaigns uti-lizing the digital platform.

�e company will also sup-port winners by helping small and local hospitality businesses to get listed on TripAdvisor.

Albay is home to the famed Mayon Volcano, the ecosystems and natural parks of which have been nominated in the Unesco World Heritage List. Its natural assets, which include pristine beaches, sand bars, lava walls, caves, undulating hills and sub-terranean rivers, have brought adventure and interactive tour-ism to a new level with local community involvement.

Located in the heart of the Bicol region, it serves as the gateway city and host to tour-ists interacting with the butand-ing  (whale shark), the world’s largest �sh which abounds in Donsol, Sorsogon.

ALBAY HOSTS PATA CONFAB, BAGS GLOBAL TOURISM PRIZE

HOTEL Monticello façade THE grand lobby with a signature scent

he grew up with: Bicolano and Ig-orot. “I call it bigorot, the food con-cept I came up with when I was still competing in the Pinoy MasterChef. With fresh produce and abundance of livestock in Tagaytay, we will be coming up with exciting and unique

dishes to keep dining interesting and worth the trip.” During the hotel’s grand opening, guests and media friends were treated to Chef JR’s creations, such as the Di-nakdakan toast, Itag �avored soup and the Tapa Barako.

Hotel guests can dine all day at Café Mercedes, where they serve in-ternational and local cuisines, or spend relaxing moments while listening to live music at the Roma Piano Bar. By the poolside, snacks and meals are served at the Trattoria Maria.

For social events, the VIA Grand Ballroom can accommodate up to 200 guests. �e Annika and Bianca meeting rooms can be combined to accommodate up to 100 participants. For an outdoor gathering, the Soleil Gardens has a large gazebo that can

entertain around 150 guests.“We also host business meet-

ings and conferences. We have a business center, multipurpose hall and several function rooms. We are more than ready to meet their re-quirements, whether the event is a

small meeting or big convention,” Valdez said.

Tucked in the heart of Tagaytay, Hotel Monticello may be small in size but it’s big on service, luxury and hospitality that welcome every guest that come their way.

news@businessmirror.com.ph

Rise of the machines? Robots could fill half of jobs in Japan by 2035

PhilHealth notes decline in number of claims in both cataract and pneumonia cases

The horrors though continue to live on for the surviving “com-fort women,” those who are left of the estimated 200,000 young girls and women abducted from Korea, China, Indonesia, Taiwan and the Philippines by the Imperial Japanese Army. During the course of the war, these young girls and women were condemned to a life of rape and en-slavement in the garrison houses of the Japanese military.

In 2013 Mayor Toru Hashimoto of Osaka, Japan, argued that the “com-fort women were necessary,” saying that the women gave the Japanese soldiers a chance to “rest.” His words sparked outrage throughout Japan’s neighboring Asian countries, with the surviving comfort women and their supporters shocked and indig-nant with his remarks.

Throughout the years, Japan has refused to apologize to the thou-sands of women they coerced to service the soldiers of the Imperial Japanese Army. Other than abduc-tion, the women were lured with promises of food, money to pay off debts and payment for work—with-out their knowing that they were being pushed into sexual slavery.

The Japanese government has repeatedly denied the stories of the comfort women. In fact, in 2007, Prime Minister Shinzō Abe stated that “there was no evidence to prove there was coercion as ini-tially suggested.” However, the comfort women, now lolas (grand-mothers) grouped under Lila Pili-pina, an organization of survivors of Japanese military sexual slavery during WW II, are a living evidence

Never forget: Comfort women remain victims of war crimes

SEVEN decades have passed since World War II. To many, the memories are dim, made

dimmer by the passing on of the grandmothers and grandfathers who lived through the horrors of that war.

TimeBusinessMirror

Our

By Cody Cepeda | Special to the BusinessMirror

Monday, December 7, 2015 • Editor: Efleda P. Campos

Who are America’s caregivers? Nearly a quarter are millennials

of the war crimes committed by the Imperial Japanese Army.

‘Lolas’ speak outIN 1943 Lola Hilario’s family evacu-ated to Pampanga because of the war. To support her eight siblings and parents, she worked as a farmer in Hermosa, Bataan. While walking on her way home to the barrio one day, a truck of Japanese military men stopped her in her tracks and tried to take her with them.

“Pagdating ng truck doon sa tapat ko, bumaba iyung dalawang Hapon. Hin-ablot ako sa kamay para isakay sa truck. Eh ayaw ko nga pumayag, nagpipiglas ako. Ang ginawa sa akin, pinagsasampal ako. Nang lumalaban ako, sinikmurahan ako. Binitbit ako sa dalawang kamay at paa at initsa nila ako sa truck,” Lola Hilario said, recalling her abduction.

She was brought to the garrison house by the soldiers, dragged inside one of the rooms and shoved on the floor. Three soldiers took turns rap-ing her. She was only 16 years old when the abduction happened. She was kept in the garrison for a year.

Lola Estelita was abducted in 1944. While selling produce in the market one day, a truck of Japa-nese soldiers arrived and started capturing and beheading men and women assumed to be guerrillas.

Fearing for her life, Lola Estelita hid and tried to make a run for her life. A Japanese soldier nearby, who was keeping watch on her, chased and seized her. She and the other women seized that day were taken to Negros Occidental. “Dinala kami sa Central Talisay, garrison ng Hapon. Dinala ako sa bahay na may mga kuwarto-kuwarto. Ibinalandra ako sa loob. Di nagtagal may isang Hapon na dumating. Niyakap

niya ako pagkatapos ay ginahasa niya ako. May mga sumunod. Di ko mabilang kung ilan dahil nawalan ako ng malay,” Lola Estelita said.

Whenever she would fight back, she would get blows from the soldiers. In the end, fearing for her life, she gave up and just did what they asked her to do. “Sinunod ko nalang kung ano ang gusto nila. Ipinikit ko na lang ang aking mga mata. Umiyak na lang ako. Wala naman akong mahihingan ng tu-long. Wala namang magliligtas sa akin.”

Two out of a multitude LOLA Hilario Bustamante and Lola Estelita Dy are just two of the 174 comfort women during the Japanese occupation identified by Lila Pilipina. Only 70 of them are still living, with 10 active and in close communication with Lila Pilipina.

The surviving Filipina comfort women are demanding three things: A public apology from the Japanese government given to each of the 174 comfort women, accurate historical inclusion and just compensation.

The comfort women lolas have been fighting for two decades for justice, a laborious fight that seems to see no end in sight. But the lolas, despite their advancing age, continue to be full of hope and strength.

Lola Hilario wishes that the youth would learn from their stories. “Ang giyera, walang pinipili. Ayaw naming maranasan ng bagong kabataan ang dinanas naming kalupitan.”

“Kaya nga kami lumalaban at ipi-napaalam ang nangyari sa amin dahil ayaw na namin ng giyera,” Lola Estelita urged. “Kasi kung may giyera, ang nang-yari sa amin ay mauulit sa bagong hen-erasyon. Kaya patuloy kami sa paglaban. Hanggang kaya namin, lalaban kami.”

A8

THE Philippine Health Insur-ance Corp. (PhilHealth) has noted a decline in the number

of claims in both cataract and pneu-monia cases as a result of measures implemented by the agency amid reports on alleged fraudulent claims for cataract surgery in the middle of this year.

In the 2015 last quarter “Kapi-han with the PCEO” at the City State Tower Hotel in Pasig City on Friday, PhilHealth President and CEO Al-exander Padilla said the reforms they put in place, such as coming out with stricter advisories about the procedures on claiming benefits, have somehow helped in deterring abuses on the benefit claims for the mentioned illnesses.

About mid-2015, there was a controversy over the significant in-crease in the number of PhilHealth benefit claims for cataract removal and pneumonia cases.

“We have come out with adviso-ries.… For example, for pneumonia patients, we required that patient should be confined first for four days or 96 hours,” Padilla said.

He said such requirement is a way to deter any attempt to misuse and abuse the claims for benefits for pneumonia treatment.

He said such procedure is their way to counter the observations that even very simple cases of cough and cold are sometimes declared as pneumonia by some doctors in the hospitals in order to claim bigger reimbursements.

He said they issued Suspension of Transactions on Payments of Claims (STOP-Claims) and filed appropriate cases against those who allegedly committed or were involved in the fraud.

He refused to name those who

have been issued with STOP- Claims and those under investigation.

“Just a few months after and even within a month’s time ay halos bumagsak ang claims to almost half,” Padilla said during the forum.

However, he said he could not yet give exact figures at this time.

Meanwhile, Padilla said that Phil-Health does not compensate any-more the cataract operations done on patients during medical missions.

“We have come out with an advi-sory saying that we don’t compensate cataract operations during medi-cal missions or other recruitment teams,” Padilla said.

He said that such was contained in advisories they issued also after they found out that some doctors and eye centers have been conduct-ing cataract surgeries on people who do not really need the service at all or those involved in “hakot system.”

Hakot system is a hospital mar-keting strategy wherein a high vol-ume of patients is fetched in their villages by “seekers” offering them free cataract operation.

It was learned that such seek-ers would encourage senior citi-zens, especially those who are PhilHealth members, to undergo eye consultation.

After gathering the elders, the seekers would bring them to the eye centers where they were subjected for eye-cataract operations.

After coming out with observa-tion on the increase in the number of benefit claims for eye-cataract surgeries, PhilHealth also came out with orders limiting doctors to perform 10 cataract operations per day only.

At present, the investigation on the cataract operation anomaly is still ongoing. PNA

By Shefali Luthra Kaiser Health News (TNS)

WASHINGTON—Caring for older relatives is usually a task associated with Baby Boomers,

the 50- and 60-somethings who find their aging parents need assistance. But almost a quarter of the adults who take care of older people—on top of their regular jobs and responsibilities—are between the ages of 18 and 34, according to research by the AARP Policy Institute and the Na-tional Alliance for Caregiving. As millions of Americans are expected to live longer than they used to—often losing the ability to do so independent-ly—their families and communities are grappling with how best way to take care of them. Kaiser Health News focused on the problem this week in a webinar with advocates and policy-makers. About 40 million Americans consid-ered themselves caregivers in 2013, ac-cording to an AARP report, said Susan Reinhard, senior vice president at the AARP and one of the webinar’s panelists. Those people are typically women, and their median age is 49. The work they do caring for older relatives—usually par-ents and grandparents—was estimated that same year to be worth about $470 billion. And it often takes a toll. Of the caregivers who participated in a support program run by the Department of Health and Human Services Admin-istration for Community Living, or ACL, about one-third said they spend more than 40 hours per week caring for an older relative. More than one-in-four labeled stress as the most significant challenge they faced; 11 percent said financial strain. Another 16 percent said their big-gest concern was not having enough time to do everything. Almost 90 percent of people who care for their older relatives perform medical tasks, like managing medications or taking care of wounds,

said Edwin Walker, the ACL’s deputy as-sistant secretary for aging. Often, those people don’t have medical training. “A significant number are doing more than just the basic assistance with family living,” Walker said. The issue has started getting more attention from policy-makers. A number of bills pending in Congress could alleviate some of the pressures caregivers face, for instance offering Social Security credits for people who have to take care of their relatives, said Kathleen Kelly, execu-tive director of the Family Caregiver Alli-ance, a nonprofit advocacy organization. These credits would help people who had to drop out of the work force to take care of a family member preserve their contribu-tion to Social Security retirement benefits. The Institute of Medicine is also putting out a report next year on the state of fam-ily caregiving, and a number of states have passed or are considering legislation that would help hospitals better communicate with and train an older person’s caregiver, especially after a hospitalization. “In the past five years, a switch has been flipped, and there’s a greater awareness of aging and caregiving,” Kelly said. That awareness may extend beyond Capitol Hill and various state houses. Last month Democratic presidential front-runner Hillary Clinton proposed a tax credit to help caregivers, which would pay back up to $1,200 of the money they spend. Her plan would also give Social Se-curity credits for people who stop working because of their caregiving responsibili-ties. That’s already a shift from the last presidential election, when caring for older relatives was hardly discussed. It’s unclear whether Clinton’s plan will push more candidates to address the needs of caregivers. But “that doesn’t mean we can’t raise these issues,” Kelly said. (Kaiser Health News is a national health policy news service. It is an editorially in-dependent program of the Henry J. Kaiser Family Foundation.)

MOSCOW—Japan is one of the world’s leading producers of electronics and machinery and according to interna-

tional team of analysts, in next 20 years roughly a half of all working personnel in the country will be replaced with robots. The researchers from the Japanese Nomu-ra Research Institute (NRI) along with their counterparts from Oxford University found out that by 2035 “up to 49 percent of jobs [in Japan] could be replaced by computer systems,” according to Engadget.com. The striking results came after the team of researchers thoroughly examined some

600 jobs, assessing the levels of creativity needed to carry out them successfully. After that analysts made a list of jobs, which could be automated. The research showed that such members of staff that operate help desks, deliver goods or are involved in agriculture could lose their jobs to robots right now. At the same time, people whose professions are associated with teach-ing or writing won’t be replaced by computers in the foreseeable future. Michael Osborne of Oxford, who partici-pated in the NRI study, also looked into the possibility of automation of jobs in America

and Britain. And the numbers for both coun-tries turned to be more modest than those for Japan: 47 percent in the US and 35 percent automation in the UK. Still, the outcomes of the research do not actually provide an answer to the question as to what the future will be like in Japan regard-ing the spreading computerization, researchers pointed out, as some crucial factors could be overlooked during the study. “[T]his is only a hypothetical technical cal-culation,” Yumi Wakao, NRI’s analyst who led the study, explained. “It doesn’t take into ac-count social factors.” PNA

SanTa and baby Santa smiles at 4-month-old baby Marco Fernando during the opening of the monthlong Christmas centerpiece in SM City Baguio mall. MAU VICTA

LOLA Hilario

BusinessMirror

Continued from A1

news@businessmirror.com.ph Monday , December 7, 2015 A9

BMReportsbeing lost to other regional hubs, rather than being recaptured by Clark International Airport, to the detriment of the economy of the Philippines,” it said. The Japan International Cooperation Agency (Jica) expects the Naia to handle some 37.78 million passengers this year, way be-yond its 30-million annual passenger capac-ity and a few notches up from its maximum capacity of 35 million passengers per year. With this on the table, the government has moved to address the looming problem of accommodating more passengers and air-planes in Manila. One of these initiatives involve the construction of an airport that will replace Naia down the line. This airport, however, will only be built by 2025—at least according to estimates given by Jica, if the current government opts to have the project rolling during its term. The loophole to this equation, according to Avelino L. Zapanta, an aviation expert, is that Manila will continue to see its numbers rising, averaging at a tenth every year, and yet, capacity will remain the same. Such a scenario will lead to delayed and canceled flights, longer queues and even warmer terminals. Instead of waiting for this to happen, the government, he said, should consider the dual-airport strategy of developing Clark International Airport and Naia. “I have advocated the use of Clark as inter-national or domestic gateway and the Naia for purely domestic gateway as a means to decon-gest the Naia overnight. But the transportation department is not listening,” Zapanta said. The Department of Transportation and Communications (DOTC), he said, is too en-grossed with the idea of building an airport in Sangley Point, Cavite, a prospect that will only materialize in a decade, at the fastest.

“It is enamored with developing Sangley as a new international airport. But our problem is here now and its solution is for long term —2025 in their view; much longer in mine. Clark can handle all international operation in a five-year phased transfer of foreign air-lines and local airlines doing international operations with some accompanying devel-opments,” he said. Highly underutilizedCLArk International Airport Corp. Presi-dent Emigdio P. Tanjuatco III said the air-port is currently underutilized, with about 870,000 passengers accommodated in 2014, way below its rated capacity of 4 million pas-sengers per year. “At any given hour, we are too underuti-lized. Slotting is not a problem in Clark, we have a lot of slots,” he said. “For example, while the 3 p.m. time slot, which is one of the most sought-after slot, for the Naia is already full, Clark can still accommodate operations at that hour.” Currently, there are only seven airlines operating out of Clark. Of the figure, only one, Cebu Pacific, is a local carrier serving a few international and local flights. “Compared to the Naia, which averages at around 42 flight movements per hour, we can easily distribute slots to airlines, because we still have a lot of capacity,” Tanjuatco said. The airport in the north, formerly known as Diosdado Macapagal International Air-port, has two 3,200-meter parallel runways equipped with various navigational aids and lighting facilities, rated the highest for pre-cision approach by the US Federal Aviation Authority. It has a single terminal with an annual capacity of 4 million passengers per year, but plans to construct a P7.2-billion terminal is now in the works. Clark was envisioned to be the future

primary international gateway of the Phil-ippines once the Naia reaches its full ca-pacity and when the main airport can no longer expand. It was envisioned to be an aerotropolis —an aviation city—with busi-nesses and industries moving in to the for-mer US airfield. Former President Fidel V. ramos ordered the development of Clark to be a premier gateway to the Philippines, with capacity expansions envisioned to reach 14 million passengers by 1998. The Bases Conversion and Development Authority crafted a master plan for the development of the airport, but unfortu-nately, the plan remained on paper and never materialized. Despite this setback, Clark’s facilities, Tan-juatco said, can still accommodate the pro-jected 6 million passengers that Clark would have accommodated, if only there were more commercial operations out of the airport. “According to a market study that we conducted, there are about 6 million poten-tial passengers within the area last year. It would have been more practical for them if they flew out of Clark, but there were limited flights,” he said. These potential customers, Tanjuatco said, reside in Central and Northern Luzon. Clark, he said, can serve the two regions, part of South-ern Tagalog and the National Capital region. “There is a market for Clark. Central and Northern Luzon has a population of about 23 million. Calabarzon and the National Capi-tal region, likewise, have almost the same. We can serve them. The catchment area of Clark last year is 6 million passengers, but 5 million flew out of Naia. The rest flew out of Clark. If only there were flights out of Clark, then we could have served the 5 million pas-sengers from here,” he explained. Zapanta added that such a catchment area is at least 75 percent of Metro Manila, hence, Clark is really a viable option. “The market

is North and Central Luzon—developing as tourism areas already.  The combined volume of these catchment areas is at least 75 percent of Metro Manila, also North Metro Manila, which has faster access to Clark compared to the Naia,” he said. But despite this, the government and local carriers are still much focused on the capital airport, as it is nearer to the central business districts of Makati City and Bonifacio Global City when compared to Clark. Hence, the problem, according to a 2011 Jica report on Philippine airports, lies on the lack of proper planning and asset utilization. “There is strong growth in demand for greater capital region air travel. Despite ca-pacity constraints at the Naia and available capacity at Clark, airlines and passengers continue to focus on Naia,” it said. Chicken and eggIMPrOVING Clark’s margins is a chicken-and-egg situation, Tanjuatco lamented. “Increasing flights out of Clark is really an airline decision. Airlines will always look for the lucrative destinations to add to their networks. The disadvantage of Clark versus Boracay and Davao is that these latter two are already destinations in themselves. Clark is not much of a destination, that’s why we are pushing for tourism in the north to also be heightened,” he said. The president of the airport also acknowl-edged the need of airlines to see returns from millions of pesos in investments in a route. “Expanding the operations in Clark is a chicken-and-egg situation. At one hand, you have passengers that are looking for flights. On the other are airlines looking for pas-sengers,” he said. “But we have enough pas-sengers to have a lucrative business for the airlines—that’s what they have to see.” Local airlines, however, are not too con-vinced with this argument. To be continued

Clark holds key for PHL to reap rewards of ballooning air trafficthat all military infrastructure was “purely for de-fensive purposes.” Beijing claims almost all of the South China Sea and its islands, and has created seven new features in the Spratlys since last year that are permanently above 9water, totaling more than 800 hectares (2,000 acres) in area, according to satellite photos collected by US government agencies and private groups, including the Washington-based Center for Strategic and International Studies. While China insists its island-building works are justified and don’t constitute a threat to sta-bility, further militarization of the region seems assured given China’s increasingly robust asser-tions of its territorial claims. Those perceptions were reinforced with the deployment in October of advanced J-11BH/BHS fighters of the navy air force to Woody Island that was revealed online in China in October. China’s military has declined to comment on the reports. The island’s 2.4-kilometer-long runway will soon be eclipsed by one more than 3 km (10,000 feet) long on the reclaimed island built atop Fi-ery Cross Reef in the Spratlys, the satellite pho-tos show. Another runway is being built on the Subi Reef, with signs of similar work under way on nearby Mischief Reef. Patrols by fighter jets based on the islands, most likely temporarily given the salty climate and frequent storms, could serve to intimidate other claimants, especially the Philippines and Vietnam. That could also complicate regular op-erations by US forces, which insist on freedom of navigation and overflight over the entire sea. “In periods of tension, the intimidation value of air patrols from the islands would be consider-able,” Graham said. The airfields would allow Chinese aircraft to refuel, repair and, if necessary, rearm without having to fly the more than 1,000 km (620 miles) to the nearest Chinese air base on Hainan island, said Hans Kristensen, a China security expert with the Federation of American Scientists. AP

Island airstrips. . . Continued from A1

Monday, December 7, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA10

Uber/GrabCar: Govt regulation fails again

editorial

When the news of the legal decision was released, Philippine social media erupt-ed with its normal raving and, as usual, had it wrong.

 Regional Trial Court in Quezon City Judge Santiago M. Arenas issued a temporary restraining order preventing the Department of Transportation and Communications from accepting further applications of app-enabled transport services Uber and GrabCar. Arenas did not stop either company from continu-ing its business. 

nonetheless, Angat Tsuper Samahan ng mga Tsuper at Operator ng Pilipi-nas Genuine Organization Transport Coalition Inc. (Stop and Go), a coalition of taxi operators and drivers, filed a petition to suspend the approval of Uber and GrabCar applications. “Stop and Go is absolutely correct that the current system is unfair. This is a case of two businesses providing basically the same services to the public being treated differently by the law. Taxis must charge ac-cording to the legally regulated-fare structure, while Uber/GrabCar can charge whatever they want. 

This is no different than Jollibee being forced to charge a particular price for its hamburgers, and its competitor, McDonald’s, is free to sell at whatever price it wishes.

 Stop and Go is absolutely wrong in that it has done little, if anything, to protect the public from abusive, crooked and even dangerous drivers. The suc-cess of Uber/GrabCar is a response by the public to the fact that the traditional taxi services have failed. 

Stop and Go President Jun Magno wants us to believe that the issue is only about unfair pricing. But, obviously, Magno has never had the pleasure of rid-ing in a taxi that looks and smells like the waste dump at a piggery. Apparently Magno has never had a taxi driver(s) refuse service from a mall in Makati City to the far distant location of Mandaluyong City. 

Magno says his organization had to file their grievances, because “the income of taxi drivers was slashed by up to 50 percent, because of the app-based trans-port.” About 650,000 taxis ply their trade in Metro Manila, according to the Asian Development Bank. While we do not have any data on the actual number of cars under Uber/GrabCar, the restraining order affects 7,304 applications. 

either Magno is “exaggerating,” or these app-based services are a bigger suc-cess than we imagined.

 however, the regulated system by the government has failed miserably. The mandate of the Land Transportation Franchising and Regulatory Board to “ensure that the commuting public has adequate, safe, convenient, environ-ment-friendly and dependable public land-transportation services at reason-able rates” is a bad joke. 

Although as Uber’s David Plouffe mentioned in the recent Asia-Pacific eco-nomic Cooperation meeting that the Philippines was the first country to pro-vide a legal regulatory framework for online-enabled transportation services, more needs to be done now. 

Regulation of taxi fares is supposed to stop predatory pricing practices by a monopoly, as the taxi business has been for decades. But now, there is com-petition, and it is offering better service to the public. Making Uber/GrabCar conform to existing taxi rates will not solve anything.

 Why not use the same method that works in everything, from fast food to department stores—free-market pricing that is not government-regulated.

The Philippine Charity Sweepstakes Office (PCSO) is opening its 49th  branch  on Tuesday  in Mati, Davao Oriental, to enhance service delivery to the public in that area.

PCSO opens branch in Davao Oriental

A new office was also opened last month in the Municipal hall of Bayombong, nueva Vizcaya. Pres-ent at the inauguration were Rep. Carlos Padilla of nueva Vizcaya and Bayombong Mayor Ramon Cabauatan Jr.

At the start of the Aquino administration, the PCSO only had 25 branches nationwide. The directors who were appointed by President Aquino to the PCSO Board decided to adopt a network-expansion strategy to provide Fili-pinos in remote and underserved areas with easier and more conve-nient access to the PCSO’s products and services.

One of its long-term goals is to put an office in every province, where and when it is feasible. The opening of new branches began in 2012; as of Tuesday, the number of branches will have almost doubled within the last three years.

This is one of the agency’s ac-complishments that began as a

target set by the Governance Com-mission for Government-Owned or -Controlled Corporations (GCG), a “major final output,” as they call agency targets. Under the Aquino administration, agency-perfor-mance targets are strictly adhered to, and the bar is raised higher and higher each year.

Another priority objective of this government is to improve and enhance the profession-alization of the civi l service. Among the ways of doing this is to implement an agency-ratio-nalization plan, which the PCSO has done within this adminis-tration. Likewise, GOCCs such as the PCSO, and line agencies, as well, are expected to obtain International Standardization Organization certification.

In the PCSO’s case, the agen-cy passed the first-stage audit of its application for ISO certi-fication on December 3 and re-ceived the greenlight to continue

to the second stage of the audit process on December 17.

Lauded as “commendable” in the audit report were the PCSO’s Performance Agreement nego-tiation and balanced scorecard (developed in cooperation with GCG), strategy map; and devel-opment of its human Resources Information System (computeriza-tion of human-resource processes). Accounting processes are also being computerized.

T he f u l l i mple me nt at ion of bot h t hese i n for m at ion- technology systems is expected by early next year.

Among the many government agencies that have obtained ISO 9001:2008 certification for differ-ent scopes and applications in the past five years are the Civil Service Commission, GCG, Land Transpor-tation Office, Research Institute for Tropical Medicine and Duty Free Philippines.

After obtaining ISO certifica-tion, agencies must continue to adhere to the approved processes to retain their certification, which they may lose should they fail sub-sequent surveillance audits.

The PCSO’s efforts to achieve ISO certification manifest the se-rious efforts toward the profes-sionalization of the civil service under the Aquino administration, which considers as high priorities the improvement of agency pro-cesses and systems for enhanced

service delivery.n n n

The PCSO is staging its flagship horseracing event, the Presi-dential Gold Cup, on Decem-ber 13 at the Manila Jockey Club’s San Lazaro Leisure Park in Carmona, Cavite.

This is the 43rd edition of this iconic race, acknowledged as the most prestigious in the sport, and also the longest continu-ously held sporting event in the country. It is held in honor of the current president.

entries come from the elite ranks of Philippine thoroughbreds, and they race over 2,000 meters, currently the longest distance.

Over the past few years the Gold Cup has been cosponsored by the Philippine Racing Commis-sion (Philracom), which provides an additional P1 million in prize money on top of the purse provided by the PCSO.

We wish all the participants the best of luck, and invite sports fans to watch the event live on PTV.  Our warm thanks to Philracom Chairman Andrew A. Sanchez for arranging for the live coverage of the race on free TV, and to the en-tire commission for its continued support for this race. 

n n n

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

RISING SUNAtty. Jose Ferdinand M. Rojas II

PPP LeAdAlberto Agra

COnTRARy to what some may advance, the build-operate-and-transfer law (BOT law) is not the only law on public-private partnerships (PPPs) in the country. Republic Act

(RA) 6957, as amended by RA 7718, is just one of many laws and regulations governing arrangements between the government and the private sector.

PPP laws, not PPP law

There is therefore no single and universal PPP law in the Philippines. There are several definitions of PPPs, as there are relevant laws, national and lo-cal, guidelines and regulations. A scan of available definitions shows that there are broad defi-nitions, as there are restrictive or myopic ones.

The national economic and Development Authority (neda), in the Midterm Update of the current Philippine Development Plan, defines a PPP as “a contrac-tual arrangement between the government and the private sec-tor to deliver public infrastruc-

ture and/or public services.” Any binding relationship between the public and private sectors is thus a PPP.

Another broad definition of a PPP is offered by this author. In his template PPP Ordinance for local governments, which to date has been referred to by 51 provinc-es, cities and municipalities, PPP is described as “a legally enforceable contract where each party as-sumes specified functions, bears certain risks, provides contribu-tion or renders some obligation, and earns benefits and revenues from the PPP arrangement.” he also emphasizes the purpose of

PPP, which is to “serve the gen-eral welfare and the public good.”

The PPP Center, the successor to the BOT Center, propounds a limited definition. Presumably lifted from the BOT law, it, as published in its official web site, defines PPP as “a contractual agreement between the Govern-ment and a private firm targeted towards financing, designing, im-plementing and operating infra-structure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties—minimizing cost while realizing project develop-mental objectives. Thus, the proj-ect is to be structured in such a way that the private sector gets a reasonable rate of return on its investment.”

Under this definition, joint ventures, concessions, leases, privatization, divestments, man-agement or service arrangements, donations, pure financing or op-erations contracts, and purely-publicly financed projects are ex-cluded from the scope of a PPP and are, thus, not considered as PPP arrangements. Following this, a project which is not traditionally

provided by the public sector can-not be a proper object of a PPP.

For those who subscribe to a more liberal appreciation of a PPP, what cannot be done under the definition of the PPP Center can be accommodated under the neda definition and template PPP Ordinance. The broad concept of PPP can, in fact, house at least 24 modalities, not just the nine vari-ants under the BOT law.

The neda has its own guide-lines for joint ventures by gov-ernment-owned and -controlled corporations, government in-strumentalities, state universi-ties and colleges and government financial institutions. Conces-sions were entered into under the national Water Crisis Act and the electric Power Industry Reform Act of 2001. The public sector can engage private propo-nents for management and service contracts under the Government Procurement Reform Act.

For local governments, they have the authority to enact their own PPP frameworks for their joint ventures, concessions, leas-es, management and service con-tracts not using public funds, and

See “PPP,” A11

Monday, December 7, 2015

OpinionA11BusinessMirroropinion@businessmirror.com.ph

One-direction splits

TwenTy-one years ago, the world was a very different place. The Internet was essentially unknown. Mobile telephones essentially just made phone calls—some of the

most sophisticated handsets also offered the game of “Snake”. To watch a film at home required a video player and a tape. I had hair.

But in the world of central banks, there are some similarities to that bygone era; 1994 was the last time that the US Federal Re-serve (the Fed) tightened policy as the european central banks eased policy. Policy divergence seems likely to return in December of this year, with the Fed tightening policy and the european Central Bank (eCB) easing policy within days of one another. The days of central banks moving in synch are over.

In the US inflation is up. em-ployment is up. Growth is up. The idea that interest rates should also move up is not terribly contro-versial. Market attention is now shifting from the timing of the first rate hike to the question of “what happens next?”. The pace of future rate hikes is the new area of uncertainty. “Lift-off” with the implication of a rapidly rising, rocket-like trajectory to rates is almost certainly not going to hap-pen. Several rate hikes, perhaps a quarter point increase every cal-endar quarter, is quite plausible.

In europe the president of the eCB is endlessly in the media, sug-gesting more and more reasons the euro area needs an easier central bank policy. Mario Draghi desires to move policy very specifically in one direction. Like many fans of one direction, his views are being expressed with very little subtlety, although (at least until now) the more passionate scenes that often characterize fans of one direction have been kept to a minimum. Interest rate cuts and changing quantitative policy measures are certainly part of Draghi’s desired toolkit. This does not meet with universal approval—the German government’s panel of experts re-cently advocated stopping quanti-tative policy earlier, not extending it—but Draghi was never going to be universally applauded.

The last 21 years have been about carefully choreographed policy dance steps and reasonably harmonious policy pronounce-ments. It having been 21 years since policy-makers on either side of the Atlantic split to pursue solo

careers, the number of people in financial markets who have any direct experience of divergent pol-icy is somewhat limited. So what should investors think about when contemplating different policy di-rections from the central banks of the world’s two largest economies?

It is worth remembering that the policy divergence has already begun. The US Fed has been allow-ing its balance sheet to decline as a share of GDP (as, indeed, has the Bank of england). This is a subtle form of quantitative policy tightening. At the same time, the eCB has indulged itself in a significant pace of quan-titative policy easing. The fact that interest rate policy may diverge from December is, therefore, an exten-sion of an existing policy divergence. we have quantitative divergence. Monetary policy divergence is not that different.

The rationale for the divergence is also not terribly surprising. The global economy has become a little less globally synchronized in recent years—which is something to be welcomed. The crisis years meant that economic correlations were high: everything was awful, every-where, all of the time. This was not an especially happy state of affairs, but confronted by a universal po-sition of awfulness, it was hardly surprising that policy-makers re-sponded in a universal manner.

now, global synchronization has faded. Across the organisa-tion for economic Co-operation and Development economies, core inflation rates are uncorrelated—indeed, they are about as uncorre-lated as they have ever been. This

means that what happens to infla-tion rates in one country has very little bearing on inflation rates in other economies, and there is no universal global force influencing the direction of core inflation. If inflation is now primarily a local affair then there can be no surprise at the idea that central bank policy responses will be similarly local.

The instinctive reaction of many is that this widening gap between central bank policies must lead to a stronger dollar. If only forecasting currencies were so simple. These policy moves are anticipated, reducing their im-pact. The dollar has been stron-ger and weaker as quantitative policy has diverged over the past year. Clearly, the breakup of syn-chronized central bank policy is a factor for the currency markets but it is not the only, nor even the most important, factor for currency markets.

The approaching divergence of central bank policy has generated some anxiety in financial markets. Perhaps investors should calm down. Policy has been divergent for the past year—just in the form of quantitative policy. Divergence is justified by fundamentals. At some point, central banks have to pursue their own paths.

Paul Donovan’s latest book The Truth About Inflation was published by Routledge in April 2015. Visit www.ubs.com/pauldonovan for more re-search. Paul’s commentaries in the UBS series of documentaries on Nobel Laureates in economics is available at www.ubs.com/nobel.

Paul Donovan

Consequence of saying ‘I do’: No-spouse policy

legally sPeakingatty. lorna Patajo-kapunan

In one typical afternoon of a typical workweek, girl from the sales department bumps into boy from the marketing department. Their eyes locked and romance eventually ensued.

They have planned on getting married but the girl remembered the company policy against marrying a co-employee, the no-spouse policy. The boy, unnerved, still got down on his knees and holding the ring on one hand, asked the girl to marry him. Several co-employees attended the wedding and the boy’s supervisor even acted as a principal sponsor. After the honeymoon, the happy couple returned to work and found on their work stations a memo from the human resource. The memo was short and simply stated that one of them is required to resign within 30 days, having violated the no-spouse policy. Both submitted their resignations and the boy immediately filed a case for illegal dismissal.

Question, is the no-spouse p ol ic y re a l ly wor t h it for business owners?

It depends.   The usual justifica-tion of business owners in imposing the no-spouse policy is to ensure the effectiveness of their employees.  It is used as a form of deterrent to of-fice romance.  It is believed by some that employees who are in a roman-tic relationship with co-employees tend to bring their squabbles to the workplace, thus, affecting their performance and the morale of the other employees.

However, office romance is not improbable. often, it is more likely to happen with or without the im-position of the no-spouse policy.  In fact, in the case of Star Paper Cor-poration et al. v. Ronald Simbol et al., G.R. No. 164774, 12 April 2006, the Supreme Court ruled against the no-spouse policy, and though it did not strike down the policy, also referred to as bona fide occupational quali-fication, as being unconstitutional per se, it did impose a stringent cri-teria in order to be justified.  The criteria are: (1) that the employment qualification is reasonably related to the essential operation of the

job involved; and (2) that there is a factual basis for believing that all or substantially all persons meet-ing the qualification would be un-able to properly perform the duties of the job.

An alternative to the non-spouse policy is for business owners to come up with a Handbook or Code of Con-duct, which can contain all scenarios within the ambit of just causes and the concomitant disciplinary mea-sures.   once disseminated to the employees, this Code becomes the official rule book that employees are bound to abide by.  To illustrate: when girl from sales department who is married to boy from market-ing department assaults another girl from accounting department sus-pected of having an affair with the boy, this can be classified under the Code as infliction of violence upon another employee amounting to a misconduct warranting a 15-day suspension for the first offense. 

At the end of the day, business owners should decide based on what, for them, makes more busi-ness sense, the printing cost of a Code of Conduct or litigation cost of an unnecessary labor case.

All about BIR forms

The dean of our university who is also in public practice has BSA student-trainees in his ac-counting firm and, luckily, I am one of those selected to partici-pate. I presume that the typical orientation for BSA students are more on theories and solving tax problems (yes, either you hate it or you love it) in preparation for the CPA Board exams. with regard to the familiarity and usage of tax forms, however, it is something that is beyond the topics custom-arily discussed.

The dean requested me to go to the BIR office and request for cop-ies of a certain tax return.

Inside the BIR office, people from all kinds of businesses are ev-erywhere carrying documents and forms, creating a war-like environ-ment. Imagine this guy beside the Revenue District office being busy photocopying stuff, taxpayers looking tired for queuing, waiting for their turn, some wearing furi-

ous faces already because of new regulations or additional things to do. People are too busy to entertain a student like me, so I just went to a section where copies of tax forms are given out with no supervision. I grabbed them without checking (no eBIR forms at that time). Then I returned to the office, carrying BIR forms that, unfortunately, were not the ones needed by the client. Since then, I made a prom-ise that I should familiarize myself with those BIR forms!

T hrough the years, I be-came more familiar with the forms, the so-called e-forms via eBIR forms and electronic fil-ing and payment system (eFPS) for top 5,000 individuals and top 20,000 corporations. Finally, I cre-ated a simple guide.

To new graduates and neo-phytes in the field, I am hand-ing you this simple guide as your starter kit. Believe me, this will take you to greater heights and

SeeInG a variety of forms available at the Bureau of Internal Revenue (BIR) offices, as well as on its official web site is quite confusing at first and might leave you perplexed on

what to do with them all. There are some forms whose codes are almost the same except for one letter or number. Aside from that, the submission frequency of some forms might give you a difficult time since they are needed to be specifically submitted monthly, quarterly, yearly and even one-time only. Forms can also be in the form of registration, certificates or those used for filing and payment.

you will not be oblivious anymore to this matter.

Below are the corresponding codes, their meaning, frequency of filing and some examples of tax forms.

BIR form starts with:25-Sales Tax n 2550M (VAT Registered)

2551 (non-VAT entity) n Add Q for quarter return e.g.,

2550Q and 2551Q.

17 - Income Taxn 1701 for individual’s annual

income tax returnn 1702 for partnerships and cor-

poration’s annual income-tax returnn Add Q for quarter returns e.g.,

1702Q and 1701Q

16-Withholding Taxn 1601C (01 means 1 month or

monthly, while C means compen-sation)

n 1601e (01 means 1 month or monthly, whi le e means expanded)

n 1601F (01 means 1 month or monthly, while F means final)

n 1603 (03 means 3 months or every quarter, this is Fringe Benefit Tax)

n 1604e (04 means 4 quarters [1 year] or Annual Return for e which is expanded with tax)

n 1604CF (04 means 4 quarters [1 year] or Annual Return for C-com-pensation and F-final tax)

23-Code used for certificatesn 2303-Certificate of Regis-

trationn 2306-Certificate of Final Tax

withheld n 2307-Certificate of Taxes

withheld at Source (expanded Tax)n 2316-Certificate of Taxes

withheld on Compensation

19-Code used for application formsn 1900-Application for loose

leaf/books of accounts n 1901-Application for registra-

tion self-employed, mix income & estates

n 1902-Application for regis-tration Purely Compensation Indi-viduals

n 1903-Application for registra-tion Partnership and Corporations

2200-Excise Tax, the letters after the code indicate what kind of prod-ucts will be taxed

n 2200A-Alcohol Productsn 2 2 0 0 A n - A u t o m o b i l e s

and non-essentialsn 2200M-Mineral Productsn 2200P-Petroleumn 2200T -Tobacco

18-Estate and Gift Taxesn 1800-Donor’s tax, 00 or no

limit, file for every period that there are donations given

n 1801-estate tax, 01 or one time, upon the death of the taxpayer and payment of the required tax

DS-Documentary Stamp Taxn DS 2000-Recurring DST on

lease agreement, sales of stocks, bonds, etc.

n DS 2000 oT-oT means one Time Payment.

I hope you have gained knowl-edge about this topic more than what you already know right now.

Jeffrey Galang Salazar is a Cer-tif ied Public Accountant and a Master in Business Administration (MBA) degree holder. He is cur-rently connected with Tong Hsing Electronics Phils Inc. as external tax cccountant and with Pamantasan ng Cabuyao as part-time accounting professor both situated in Laguna.

DeBiT CReDiTJeffrey salazar

donations. The BoT law, there-fore, is not the controlling law for these non-BoT law variants. The definitions, approval procedures, requirements and l imitations found under the BoT law need not be followed because they are not applicable.

The reality of not having one PPP definition, which captures all possible PPP modalities, should be seen as an opportunity for inno-vation and exposition of democ-racy. The downside of not having a single PPP law—the lack of uni-formity—is outweighed by the upside of not having one. while there could be confusion on what is or what is not a PPP and possible challenges on the authorities of

administrative agencies, govern-ment officials should take on the challenge of innovating and broad-ening PPPs, and learning more.

More choices require more lear ning , which necessitates adaptive leadership.

PPP Learn No. 2PPP Modalities THe advantage of having no single PPP law in the Philippines is that

the government, particularly local governments, has more options. The inclusive set of PPP modali-ties provides for at least 24 choices. These are: 1.Build-Transfer2. Build-Lease-Transfer3. Build-operate-Transfer4. Build-own-operate5. Build-Transfer-operate6. Contract-Add-operate7. Develop-operate-Transfer

8. Rehabilitate-operate-Transfer9. Rehabilitate-own-operate10. Rehabilitate-Lease-Transfer11. Rehabilitate-Transfer12. Rehabilitate-Transfer-operate13. Concession Arrangement 14. Joint Venture15. Lease or Affermage16. Management Contract17. Management Contract (no Pub-lic Funds)18. Service Contract

19. Service Contract (no Public Funds)20. Divestment or DispositionCorporatization21. Subsidiary with Private equity22. onerous Donation23. Gratuitous Donation24. others

In the succeeding columns, these modalities will be discussed. For your comments, please e-mail the colum-nist at alberto.c.agra@gmail.com.

PPP . . . Continued from A10

Evaluating Islamic State strategiesBy Trudy Rubin | TNS

EvEr since the Islamic State (IS) attacked Paris, politicians on both sides of the Atlantic have

called for a more intense effort to destroy the caliphate.

Yet, despite the horrors wreaked in France, I’ve yet to see any political leader put forward a strategy that shows much promise of achieving that goal.

republicans (and I refer to those with foreign policy expertise, not the bombastic Donald Trump or the bemused Ben Carson) rightly chastise President Barack Obama for a policy that has mostly failed to dent the IS’s hold on physical and digital territory. Nor have US efforts prevented the group from developing dangerous franchises in Libya and the Sinai, and mounting attacks in Europe.

Critics such as Sen. John McCain, republican-Arizona, chairman of the Senate Armed Services Committee, accuse the White House of being slow to react and only doing so with “incre-mental” measures to supplement in-adequate air strikes. Indeed, Obama’s reaction to Paris was incremental: He pledged to send a small number of additional special-forces troops to Iraq (reportedly around 150) with a mission to raid IS strongholds.

Yet, despite their legitimate cri-tiques, I’ve yet to see a responsible republican put forward a plan that had a chance of working. Neither party seems to have developed goals or means that match the realities on the ground.

So in search of coherence, let’s look at what passes for strategy on both sides of the political spectrum. By eliminating proposals that are ill-conceived or phantasmagoric, we might arrive at a plausible approach.

Let’s start with the premise that our goal is to degrade and ultimately destroy the IS. This doesn’t mean that the threat of jihadi terrorism will be eliminated. It does mean the libera-tion of the territory occupied by the IS, which would undermine the group’s social-media appeal to foreign fight-ers and ability to expand abroad.

What are the proposals of Obama’s critics?

A few seek a large-scale increase in the US troop presence. McCain and Sen. Lindsey Graham, republican-South Carolina, have recently pro-posed sending 10,000 US troops to Syria and boosting the 3,500 trainers and advisers in Iraq to 10,000.

These troops would supposedly provide logistics and intelligence sup-port to a 100,000-strong Arab force from Egypt, Turkey and Saudi Arabia.