S “A,” A

PESO EXCHANGE RATES n US 46.9930 n JAPAN 0.3835 n UK 71.5891 n HK 6.0637 n CHINA 7.3782 n SINGAPORE 33.1217 n AUSTRALIA 33.3971 n EU 50.8370 n SAUDI ARABIA 12.5312 Source: BSP (13 November 2015)

www.businessmirror.com.ph n Thursday 18, 2014 Vol. 10 No. 40 P. | | 7 DAYS A WEEKn Saturday, November 14, 2015 Vol. 11 No. 37

A broader look at today’s businessBusinessMirrorBusinessMirrorMEDIA PARTNER OF THE YEAR

2015 ENVIRONMENTAL LEADERSHIP AWARD

UNITED NATIONSMEDIA AWARD 2008

Globe, PLDT try to snatch SMC’s 700-MHz band as Telstra entry starts market shake-up BATTLE OF THE ‘BANDS’

SPECIAL REPORT

B L S. M

Conclusion

THE move to dismantle the possible entry of San Miguel Corp. (SMC) and Telstra Ltd.

Corp. into the Philippine mobile broadband sector was questioned by no other than the top brass of the Filipino diversified conglomerate. San Miguel President Ramon S. Ang called on Philippine Long Dis-tance Telephone Co. (PLDT) and Globe Telecom Inc. to stop picking on his company, and urged them to focus on addressing the needs of their current subscriber base.

Why pick on us?“THEY have more than enough fre-quency between them. They have al-most 300 megahertz of LTE frequency. Why do they need more? All they need is to improve and fine-tune what they have,” he said. “They want to take what is ours to prevent us from operating. Spare us that little bit of frequency.” Despite this possible setback, Ang expressed his confidence that his company will be successful in this game, no matter that his in-tentions are not to compete, but to provide quality Internet service in the Philippines.

Globe, PLDT try to snatch SMC’s 700-MHz band as Telstra entry starts market shake-up

ANG: “They want to take what is ours to prevent us from operating. Spare us that little bit of frequency.”C A

P-Noy raring to steerApec leaders’meet

INSIDE

YANGON, Myanmar—Nobel YANGON, Myanmar—Nobel Ylaureate Aung San Suu Kyi’s Ylaureate Aung San Suu Kyi’s YANGON, Myanmar—Nobel laureate Aung San Suu Kyi’s ANGON, Myanmar—Nobel YANGON, Myanmar—Nobel Ylaureate Aung San Suu Kyi’s YANGON, Myanmar—Nobel Yopposition party on Friday seYopposition party on Friday seYlaureate Aung San Suu Kyi’s opposition party on Friday selaureate Aung San Suu Kyi’s Ylaureate Aung San Suu Kyi’s Yopposition party on Friday seYlaureate Aung San Suu Kyi’s Y -

cured a historic majority in Myanopposition party on Friday se

cured a historic majority in Myanopposition party on Friday se

-mar’s parliament, making it possible cured a historic majority in Myanmar’s parliament, making it possible cured a historic majority in Myan

for them to form the Southeast Asian mar’s parliament, making it possible for them to form the Southeast Asian mar’s parliament, making it possible

country’s first truly civilian govern-ment in more than half a century.country’s first truly civilian government in more than half a century.country’s first truly civilian govern

WorldBusinessMirror

WorldBusinessMirror

WorldWorldTheWorldB2-1 | Saturday, November 14, 2015 • Editor: Lyn Resurreccion

LEADER of Myanmar’s National League for Democracy party, Aung San Suu Kyi, smiles to her supporters after delivering a speech from a balcony of her party headquarters in Yangon, Myanmar, on November 9. AP/MARK BAKER

With the tally still being counted, the Election Commission said that Suu Kyi’s National League for De-mocracy (NLD) party won 21 ad-ditional seats—pushing it over the threshold of 329 seats needed for a majority in the 664-member, two-house Parliament.

�e party with a combined par-liamentary majority is able to se-lect the next president, who can then name a Cabinet and form a new government.

Suu Kyi’s victory had been widely expected, but few anticipated a

landslide of such dramatic propor-tions. �e results have shown a re-sounding rejection of military rule in Myanmar, which has been under army control for half a century.

Elections were not held in seven constituencies, meaning a simple majority could be reached at 329 seats. �e NLD has o�cially won 238 seats in the lower house—which means it now will have the power to pass bills—and 110 in the upper house, for a total of 348.

In comparison, the ruling pro-military Union Solidarity and De-

velopment Party (USDP) has won 40 seats, according to the latest results on Friday afternoon.

�e military automatically re-ceives 25 percent of the seats in each house under the Constitution.

While the army has not conceded defeat for the ruling USDP party, it has acknowledged the massive success of Suu Kyi’s NLD in Sun-day’s election, and pledged that it will respect the �nal results. �ose results seem virtually certain to al-low the opposition to take over the government.

�e o�ce of army commander Senior Gen. Min Aung Hlaing said the military will hold talks with Suu Kyi after the election results are complete.

Suu Kyi issued an invitation on Wednesday for a meeting with the com-mander, along with President Thein Sein and House Speaker Shwe Mann.

While an NLD majority assures it of being able to elect the president, Suu Kyi remains barred from the highest o�ce by a constitutional provision inserted by the mili-tary before it transferred power to �ein Sein’s quasi-civilian govern-ment in 2011.

Suu Kyi has declared, however, that she will become the country’s de facto leader, acting “above the presi-dent” if her party forms the next government, and that the new presi-dent will be a �gurehead.

Myanmar’s military, which took power in a 1962 coup and brutally suppressed several prodemocracy uprisings during its rule, gave way to �ein Sein’s nominally civilian elected government in 2011—with strings attached.

It installed retired senior o�cers in the ruling party to �ll Cabinet posts and gave itself key powers in the Constitution, including con-trol of several powerful ministries and a quarter of the seats in both houses of Parliament. In a state of emergency, a special military-led body can even assume state pow-ers. Another provision bars Suu Kyi from the presidency because her sons hold foreign citizenship.

While Myanmar’s people voted overwhelmingly on Sunday to re-move the military-backed ruling party from power, it’s clear that the army’s involvement in politics won’t end, and the NLD will need to con-vince it to cooperate. AP

Suu Kyi’s party wins historic majority in Myanmar polls

JAKARTA, Indonesia—Australian Prime Minister Malcolm Turnbull tried to mend fences with Indonesia, South-

east Asia’s largest economy, in his �rst trip to Asia on Thursday since taking o�ce two months ago.

Turnbull’s one-day visit is seen as a chance to repair ties damaged by a row over the executions in April of two Austra-lians who were convicted on drug tra�ck-lians who were convicted on drug tra�ck-lians who were convicted on drug tra�cking charges.

His predecessor, Tony Abbott, with-drew the ambassador in protest but he returned a month later. A year earlier, In-donesia had temporarily recalled its am-bassador over the alleged phone bugging by Australia of then-President Susilo Bam-bang Yudhoyono, his wife and nine minis-ters in 2009.

Turnbull and Indonesian President Joko

“Jokowi” Widodo agreed to boost trade and investment in infrastructure and the cattle industry, as well as of-and the cattle industry, as well as of-and the cattle industry, as well as of�cial and business visits in order to help move relations forward.

“I couldn’t have asked for a warmer or more gracious welcome by yourself and so many of your ministerial colleagues,” Turn-bull told the Indonesian leader.

Widodo thanked Australia for sending

two water bombing planes to �ght In-donesian forest �res last month and wel-comed Australian plans to open a diplo-matic post on the resort island of Bali.

Bilateral trade stands at $10.6 billion, and Australian investment in Indonesia is worth $647.3 million in total of 226 proj-ects. Over 1 million Australian tourists visit Bali each year.

Turnbull told reporters in a news con-ference that a large delegation of more than 340 businesspeople is expected to visit Indonesia next week. Indonesia is also the largest export market for Australian live cattle.

His visit was only his second overseas trip as prime minister and underscores the importance that Australia places on a some-times fractious bilateral relationship. Turn-bull visited New Zealand last month. AP

AUSTRALIAN Prime Minister Malcolm Turnbull (left) walks Turnbull (left) walks Twith Indonesian President Joko Widodo during their visit to Tanah Tanah T Abang Market in Jakarta on Thursday. DARREN WHITESIDE/POOL PHOTO VIA AP

Australian PM in Jakarta in bid to repair ties

WASHINGTON—A US drone WASHINGTON—A US drone Wstrike targeted a vehicle in Wstrike targeted a vehicle in WSyria believed to be transportWSyria believed to be transportW -ing the masked Islamic State (IS) militant known as “Jihadi John” on Thursday, ac-known as “Jihadi John” on Thursday, ac-known as “Jihadi John” on Thursday, according to American o�cials. Whether the strike killed the British man who ap-pears in several videos depicting the be-headings of Western hostages was not known, o�cials said.

Mohammed Emwazi was the target of an air strike in Raqqa, Pentagon Press Secretary Peter Cook said in a statement. O�cials were assessing the results of the strike, he said.

A US o�cial told The Associated Press that a drone had targeted a ve-hicle in which Emwazi was believed to be traveling. The o�cial was not authorized to speak publicly and re-quested anonymity.

Emwazi, believed to be in his mid-20s, has been described by a former hostage as a bloodthirsty psychopath who en-joyed threatening Western hostages. Spanish journalist Javier Espinosa, who had been held in Syria for more than six months after his abduction in Septem-ber 2013, said Emwazi would explain pre-cisely how the militants would carry out a beheading.

Among those beheaded by IS mili-tants in videos posted online since Au-gust 2014 were US journalists Steven Sotlo� and James Foley, US aid worker Abdul-Rahman Kassig, British aid work-Abdul-Rahman Kassig, British aid work-Abdul-Rahman Kassig, British aid workers David Haines and Alan Henning, and

Japanese journalist Kenji Goto.In the videos, a tall masked �gure

clad in black and speaking in a British accent typically began one of the grue-some videos with a political rant and a kneeling hostage before him, then end-ed it holding an oversize knife in his hand with the headless victim lying before him in the sand.

Emwazi was identi�ed as Jihadi John in February, although a lawyer who once represented Emwazi’s father told report-ers that there was no evidence support-ing the accusation. Experts and others later con�rmed the identi�cation.

Emwazi was born in Kuwait and spent part of his childhood in the poor Taima area of Jahra before moving to Britain while still a boy, according to news re-ports quoting Syrian activists who knew the family.

He attended state schools in London, then studied computer science at the University of Westminster before leaving for Syria in 2013. The woman who had been the principal at London’s Quintin Kynaston Academy told the BBC earlier this year that Emwazi had been quiet and “reasonably hard-working.”

O�cials said Britain’s intelligence community had Emwazi on its list of po-tential terror suspects for years but was unable to prevent him from traveling to Syria. He had been known to the nation’s intelligence services since at least 2009, when he was connected with investiga-tions into terrorism in Somalia. AP

THIS still image from undated video released by Islamic State militants on October 3, 2014, purports to show the militant known as Jihadi John. AP

U.S. AIR STRIKE TARGETS ‘JIHADI JOHN’ IN SYRIA

The WorldBusinessMirror B2-3news@businessmirror.com.ph | Saturday, November 14, 2015

HONG KONG—As other diners in the McDonald’s enjoyed their Big Macs past midnight in the McDonald’s enjoyed their Big Macs past midnight in the McDonald’s enjoyed

early last month, no one noticed the their Big Macs past midnight

early last month, no one noticed the their Big Macs past midnight

middle-aged woman who appeared to early last month, no one noticed the middle-aged woman who appeared to early last month, no one noticed the

be sleeping at her table.middle-aged woman who appeared to be sleeping at her table.middle-aged woman who appeared to

Death at McDonald’s highlights ‘McRefugees’ 

A GROUP of people sleep at night in a 24-hour McDonald’s branch in Hong Kong. The recent death of a woman at a Hong Kong McDonald’s, where her body lay slumped at a table for hours unnoticed by other diners, has focused attention on the city’s working poor and homeless people, dubbed “McRefugees,” who spend their nights at the fast-food outlet’s 24-hour branches. AP/VINCENT YU

The woman, wearing a grey coat and slippers, abruptly slumped over at about 1:20 a.m., according to a surveillance camera footage.

It wasn’t until the next morn-ing that a customer found the woman was cold and unrespon-sive. The police were called at 8:30 a.m., about 24 hours after the woman first entered the res-taurant, according to a report in the South China Morning Post.

The death of the woman, identi-fied by the police as a 56-year-old surnamed Lai, has focused atten-tion on the growing number of working poor and homeless peo-ple spending their nights in Mc-

Donald’s. Dubbed “McRefugees,” they sleep in 24-hour branches of the fast-food chain, which offer a clean, safe and free refuge found in few other places in the south-ern Chinese business hub. More than 120 of the company’s 253 Hong Kong outlets operate around the clock.

In a statement, McDonald ’s Hong Kong said “we welcome all walks of life to visit our restau-rants any time.” It added that it tries to be “accommodating and caring” to customers who stay a long time in restaurants “for their own respective reasons.”

The phenomenon dates back

to at least 2007 and has also been documented in  Japan  and mainland China. It appears to be particularly popular in Hong Kong, notorious for being one of the world’s most expensive places to live because of sky-high rents.

At the same time, homelessness is a growing problem, with the number of street sleepers tracked by the government rising to 806 this year, more than double the amount since 2007, though so-cial welfare groups say the actual number is likely higher.

One such person, Mary Seow, began sleeping in a McDonald ’s in the working-class Jordan dis-trict about two weeks ago after she noticed others doing it. Seow, who was preparing to doze off in a corner of the basement level restaurant, said she previously had been spending her nights in a park. “Sometimes I’m quite sleepy and I don’t feel shy about sleeping here,” she said. “But sometimes I’m not sleepy and I feel quite shy. And I also ask myself why I have to end up in this way.”

The 60-year-old widow, who ar-rived in Hong Kong two months ago, said she was swindled by mainland Chinese “friends” she met at a church in Singapore.

They persuaded her to sell her house and go with them to invest the money in the mainland, where she spent five years depleting her funds, she said.

Now, she lives off her meager savings and some money from working as what is known as a “par-allel trader,” a person who carries diapers, baby formula, chocolate and other branded goods across the border to the mainland. She said she’s not ready to go back to Singapore because she doesn’t want to lose face with friends wondering where she’s been.

As she prepared to nod off, three men across the room lay covered by blankets on padded vinyl benches. A staff member used tables to block the entrance to the restaurant section where Seow and the others were sleep-ing, before turning off its lights for the night. AP

OVERWORK is such an is-sue in Japan that Prime Minister Shinzo Abe has

vowed to fix it. He wants com-panies to reward productivity rather than long hours, and to create workplaces that a l low men and women to finish on time and share the burden of responsibilities at home. 

The problem is, it’s being under-reported and the lack of accurate data to benchmark against under-mines efforts to stamp it out.

Full-time employees logged  a little more than eight hours a day in September, a labor ministry survey of businesses showed. That totals 167.4 hours a month, which includes 14 hours of overtime. 

When you look at how much peo-ple say they worked, it’s a different story. In a labor union survey last year, regular workers said they did

39 hours of overtime a month, and managers did more than 56 hours.

About half of that was unpaid, for both groups. The government data results can’t be true, says At-sushi Takeda, an economist at Ito-chu Corp. The labor ministry report only reflects what businesses say and fails to capture conditions of workers who don’t work on a time-card system, according to Takeda.

  If the government wants to help women succeed in the work force, it needs to grasp what hours people are actually working, as well as help provide flexibility so that they can juggle work and child-rearing responsibilities, he said. “The problem is that we can’t as-sess the current situation with the statistics available to us,” Takeda said. “There won’t be an accurate solution unless a survey addresses this properly.” Bloomberg News

Japanese work harder than government thinks

S POK ANE, Washington—Hundreds of people gath-ered on Thursday inside the

historic B Reactor on the Hanford Nuclear Reservation to mark the creation of the Manhattan Project National Historic Park.

The ceremony paid tribute to Hanford’s role in making plutoni-um for the atomic bomb dropped on Nagasaki,  Japan, bringing an end to World War II.

“This step signifies our com-mitment to the new national park and our hope that visitors of all ages will come from far and wide to learn about Hanford’s role in

the Manhattan Project,” said Sta-cy Charboneau, manager of the Department of Energy’s Richland Operations Office.

The park’s creation required a “tremendous amount of clean-up work” that paved the way for public access to the facility, Char-boneau said. The nation’s newest national park was formally cre-ated earlier this week in Washing-ton, D.C., and includes locations at Hanford; Oak Ridge, Tennessee; and Los Alamos, New Mexico. The public attractions at Hanford will include the B Reactor, which was the world’s first full-sized nuclear

reactor when it was built in 1943 to 1944, plus four sites related to the old town of Hanford, which was evacuated to make room for the huge nuclear reservation.

The sites are a fruit warehouse, irrigation pump house, White Bluffs Bank and the old Hanford High School.

The Hanford Nuclear Reserva-tion, which is half the size of Rhode Island, is located near Richland, Washington, and for decades made plutonium for the nation’s nuclear arsenal. The site is now engaged in cleaning up the nation’s largest col-lection of radioactive waste.

The park will be jointly man-aged by the Energy Department and National Park Service.

About 250 people gathered at the face of the B Reactor to cel-ebrate the occasion. Many in the Tri-Cities community had worked for 25 years to save the reactor from demolition because of its historic significance.

The reactor was designed and built during the war by DuPont, based on experimental designs tested by Enrico Fermi at the Uni-versity of Chicago. About 50,000 people were employed at the site during the war. AP

NEW YORK—Sotheby’s is offering what experts consider the world’s most important private library of Hebrew

books and manuscripts, collected by a London diamond dealer. The 11,000 items document life in the Jewish diaspora from Europe and Africa to Asia, spanning a millennium, Sotheby is Vice Chairman David Redden told The Associated Press on Thursday. Some items have burn or water marks or other signs of religious persecution, such as censored, inked-over passages.

On December 22 a dozen treasures from the collection will go on the auction block, including a Hebrew Bible from 1189, the only surviving dated Hebrew manuscript written before the Jews were expelled from England in 1290, Sotheby’s said.

The “glory” of the auction, Redden said, is the first printing of the Talmud in Venice in the 1520s. The pope in Rome then issued an edict banning Hebrew books, and by 1550 most were burned or, otherwise, destroyed. The 16th-century Oxford University professor who owned this Talmud had willed it to London’s Westminster Abbey, where it sat for 450 years, Redden said.

“It was not consulted frequently in a Christian church,” Redden said, tongue in cheek. “Therefore, it’s in pristine condition.” The bulk

of the collection is to be auctioned next year. It represents writings from wherever Jews lived, including 19th-century India and early 20th-century China, the auction house said.

“Jews were dispersed around the world, but they clung on to their heritage, in many cases in the face of severe persecution,” Redden added. While institutions such as the British Library, the National Library of Israel and  New  York’s Jewish Theological Seminary have vast Judaica holdings, “this is the greatest collection of Hebrew books and manuscripts in private hands,” Redden said. The books and manuscripts were assembled by Jack Lunzer, who, while traveling for his diamond business, often picked up additions to his collection, which is now in a trust. Lunzer is in his mid-90s.

Sotheby’s first displayed all 11,000 items to the public in 2009, planning to sell them as one lot at an estimated value of at least $30 million.

“There was a tremendous amount of interest, but it didn’t sell,” Redden said, noting that buyers may have been discouraged by demands that the collection remain intact while being available to the public and to scholars.

There never was an auction, though interest in the collection was so intense that thousands of people lined up each day outside Sotheby’s in winter just to take a look. AP

Private library of Hebrew writings to be auctionedPrivate library of Hebrew writings to be auctionedPrivate library of Hebrew

THIS undated photo provided by Sotheby’s in New York shows a copy of a Hebrew Bible from 1189, the only surviving dated Hebrew manuscript written before the Jews were expelled from England in 1290. It will be auctioned by Sotheby’s in New York on December 22. SOTHEBY’S VIA AP

National park created on nuke reservation

THIS undated photo provided by Sotheby’s in New York shows a copy of a Hebrew Bible from

SA LT L A K E C I T Y— St ate officials are challenging a decision made by a Utah

judge to take a baby away from lesbian foster parents and place her with a heterosexual couple for the child ’s well-being.

Utah Division of Child and Fam-ily Services officials said on Thurs-day in a statement that they will fight the ruling at the appeals court if Judge Scott Johansen doesn’t rescind his decision.

The state agency said the judge went against its recommendation that the 9-month-old baby should stay with April Hoagland and Beck-ie Peirce, a married couple.

In his decision, Johansen men-tioned research that shows children do better when raised by hetero-sexual families, state officials said. However, the American Psychologi-cal Association has said there’s no scientific basis for believing that gays and lesbians are unfit parents based on sexual orientation.

A full transcript of the ruling has not been made public and may not be because court records of cases involving foster children are kept private to protect the kids.

Johansen is precluded by judi-cial rules from discussing pend-ing cases, Utah courts spokesman Nancy Volmer said. Volmer said. V AP

Utah to challenge orderto take baby from lesbians 

SUU KYI’S PARTY WINS HISTORIC MAJORITY IN MYANMAR POLLS

DEATH ATMCDONALD’SHIGHLIGHTS‘MCREFUGEES’

BusinessMirrorMEDIA PARTNER

WHO WOULD DARE RAISE SEA DISPUTEAT MANILA MEET?

WORLD B21

WORLD B23

DOT wraps up deals to push visitor arrivals from UK

DRIVERS of vans check their vehicles that will be used for the Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting. There are around 400 Apec vehicles that will be used by leaders and delegates, both local and international, in the summit next week. STEPHANIE TUMAMPOS

B M. S F. ASpecial to the BM

LONDON, United Kingdom —The Philippines’s Depart-ment of Tourism (DOT) has

concluded several deals with lead-ing UK-based tour operators, travel web sites and an international airline in a bid to further increase visitor arrivals to the Philippines.

In an interview with the B-M, Tourism Secretary Ramon R. Jimenez Jr. said among the major commitments landed was

with Singapore Airlines (SQ), for a “twinning package” that would sell Singapore and the Philippines to UK-based travelers. “In our last meeting with SQ, what everyone has been dreaming about is finally hap-pening. They are creating an entire marketing program to sell both Sin-gapore and the Philippines together, directed at the UK market.” He said the package will be im-plemented by 2016, and is expected to attract about 400,000 travelers. “We will be, as we have always said, the crucial value extension of a visit

to Asia. Enter through Singapore, and then [on] to the Philippines, wherever it may be. Then back to Sin-gapore.” The package will be aimed primarily at families who travel on paid vacation leaves for a minimum of 10 days.

Another major partnership has been concluded with the Students Travel Association (STA) Travel, a worldwide tour operator specifi-cally used by college students in the UK. “The other significant de-velopment is…we are now going on a full-blown travel program with

STA.” While Jimenez declined to reveal the actual operational de-tails of the program, which will also be implemented next year, he said “we will have an even stronger pro-gram that will have local participa-tion in the process. It will ensure seamless, safer travel within the Philippines for students.”

At any one time, on any given day, about 17,000 students, Jimenez said, “are moving across Asia,” on trips organized by STA Travel. As the tours are certified by STA Travel, he explained that the students don’t fall

prey to the usual mishaps that befall some travelers, like being fooled into taking certain side trips, or paying for more than the usual rate for lo-cal transportation, etc. “But there is a certain amount of informality and serendipity to their trips. We are helping them to make it more predictable.” The target market are UK college students who usually go on what is known as a “gap year” or a sabbatical from their studies, al-though the DOT chief said some of the travelers are also still in school.

C A

WHEN Asia-Pacific leaders gather in Manila next week, they will again walk the tightrope between lauding stronger economic ties with China and pushing back against its

assertiveness in the contested South China Sea.The dispute over the waters—of which China claims more than

80 percent, based on a 1940s map that has no precise coordinates— is at odds with Southeast Asia’s economic reliance on Asia’s biggest economy. These four charts show why even broaching the topic is a challenge for the region’s smaller economies.

1. Investment flowsCHINA’S share of net foreign direct investment into the 10- member Association of Southeast Asian Nations (Asean) rose to 6.5 percent in 2014, from 5 percent in 2012. It’s catching up with the US and Ja-pan, whose slice of the pie has fallen to just under 10 percent each. The flow of money from China is set to grow under President Xi Jin-ping’s “One Belt, One Road” infrastructure and trade initiative seeking to link China with Europe through central and western Asia. Mainland investment in the program will double in the next three years to $200 billion, the South China Morning Post reported, citing UBS Group AG.

2. Trade relianceEXPORTDEPENDENT Asian countries have become increasingly reliant on China for demand, as uneven recoveries in the US and Europe hurt traditional sources of growth. South China Sea claimant states, including Vietnam, the Philippines, Malaysia and Taiwan, export more in total to Asia’s No. 1 economy than other major economies in the region: Singapore, Thailand and Indonesia. Those four countries shipped more than $126 billion in goods and services to China last year. Brunei Darussalam also claims areas of the disputed waters. China was Asean’s largest trading partner in 2014, with $367 billion in total trade.

3. Foreign aidCHINA has been generous to its neighbors, taking the lead on the $100- billion Asian Infrastructure Investment Bank to focus on the region’s development. That’s on top of a $40-billion Silk Road Fund for its “One Belt, One Road” initiative. Asia received 31 percent of China’s foreign aid from 2010 to 2012, second only to Africa, which got 52 percent of its assistance, according to a white paper by the Information Of-fice of the State Council.

4. Tourist arrivalsCHINA’S middle-class boom and the easing of restrictions on travel has unleashed a tide of tourists to the region with cash to spend. Visi-tors from China overtook those from the European Union to become the No. 1 source of outside tourists to Asean in 2012. The number of arrivals from China to Asean jumped to 13.1 million last year, from 4.5 million in 2008. Bloomberg News

B B F

MALACAÑANG assured on Friday that President Aquino, as chief host and presiding officer, is ready to steer the

Asia-Pacific Economic Cooperation (Apec) Leaders’ Meeting deliberations, and moderate anticipated arguments likely to recur—as what happened between US President Barrack Obama and former Chinese President Ju Jintao at the Yokohama Apec—when participating world leaders meet in Manila next week.   

“The President [Aquino] has been pre-paring to chair the Apec, as well as the Apec Leaders’ Retreat; and the President, being no stranger to Apec summits and how they are chaired, is also prepared to moderate such discussions,” Palace Deputy Spokesman Abigail Valte said.

In a news briefing, Valte added that Mr. Aquino is also “well prepared to navigate” discussions on economic issues expected to be raised at subse-quent Apec events. “Certainly, when it comes to the economic issues, the President is well prepared to chair and to navigate

Saturday, November 14, 2015 news@businessmirror.com.phBusinessMirrorNews

Palace justifies ₧10-B spending for ApecMalacaÑang on Friday

defended the P10-billion budget for the hosting of

the 2015 asia-Pacific Economic cooperation (apec), saying it is the country’s economy that will benefit most from the amount that the Philippines invested for the prestigious event.

“For the attendance alone, it is expected that more or less 10,000 people, including 3,000 media del-egates, will participate in the Apec. Each one of them will spend, and that will go directly to our economy,” Communications Secretary Her-minio B. Coloma Jr. explained in an interview with Radyo ng Bayan.

Except for Russian President Vladimir Putin and Indonesian Pres-ident Joko Widodo, all the leaders of the 21-nation Apec will attend the Economic Leaders’ Meeting to be held from November 17 to 20 at the Philippine International Con-vention Center.

Coloma urged the public to look

THE Philippines and Cana-da has set another round of consultations for the

proposed free-trade agreement (FTA) between the two countries on November 26, the Canadian Chamber of Commerce of the Phil-ippines said.

This consultation follows the first round of exploratory discus-sion between the Philippines and Canada in August.

In an earlier interview, Ca-nadian Ambassador Neil Reider said the two countries remain interested to pursue a potential FTA to boost bilateral trade and investments.

“We need to conclude explor-atory [discussion] first and de-cide if both parties wish to con-cede. We don’t have a timeline yet, but in the coming months, we’ll try to conclude it and try to move to negotiation after that,” Reider told the Philippines News Agency.

It was noted that if the bilat-eral FTA will be pursued, the Phil-

ippines will be the first country in Southeast Asia to have a bilat-eral free-trade pact with Canada.

Canada has FTA with nine coun-tries, and with the European Free Trade Association bloc composed of Iceland, Liechtenstein, Norway and Switzerland.

The Philippines, on the other hand, only has one bilateral FTA which is with Japan.

President Aquino and former Canadian Prime Minister Stephen Harper announced the launch of exploratory discussions of the two countries toward FTA negotiations when the former had a state visit in Canada in May.

Mr. Aquino will also meet in Manila the new Canadian Prime Minister Justin Trudeau during the Asia-Pacific Economic Coop-eration Economic Leaders’ Meet-ing next week.

The government of Canada noted that the Philippines is an important trade partner for Canada with the country’s large market and fast-economic growth. PNA

PHL, Canada settalks for potential FTA this month

at the long-term benefit the coun-try will reap from hosting the Apec, which the Philippines hosted again after 19 years.

“We have to look at the bigger pic-ture. We have to invest now. What we have planted will bear fruit in the future, which is the favored invest-ment,” Coloma said.

Coloma added that the country’s Apec hosting will also help the country in attracting more tourists.

“Big part of the development in the world is based on the so-called people-to-people friend-ship and cooperation. Accord-ing to my friend, ‘an investor starts as a tourist; happy tourist becomes interested investor,’” the Presidential Communications Operations Office chief said.

Coloma said the P10-billion budget was used for the preparatory events, the facilities and for the meetings that have actually started in January.

“It is not spent for two-day Economic Leaders’ Meeting alone,” he said.

With the theme, “Building In-clusive Economies, Building a Bet-ter World,” Coloma said he is hop-ing that all the citizens of the Apec members will benefit from every agenda that the world leaders will discuss during the event.

Coloma added that the national organization committee of the 2015 Apec is leaving no stone unturned to assure a successful hosting of the economic world leaders’ meeting.

”While we are hosting, we continue to find opportunity on how to improve what we are doing.

We are trying our best to have flawless, seamless and hassle-free hosting, and that our visitors will feel the warmth and hospitality of the Filipinos and for them to know that ‘It’s more fun in the Philip-pines,’” Coloma added. PNA

THE Philippine National Po-lice (PNP) will implement a gun ban in Metro Manila

beginning next week, as it further strengthens the security that it had mapped out for the Asia-Pacific Eco-nomic Cooperation (Apec) meetings and the delegates attending.

PNP chief Director General Ri-cardo Marquez said the suspension of all permits to carry firearms out-side residents in Metro Manila will be

observed from November 16 up to 20.The gun ban was just among

the many measures adopted by the government as it worked to assure the safety and security of economic leaders and other delegates who would be attending the Apec meetings.

At least 30, 000, including sol-diers and policemen, from at least 20 government agencies have been mobilized to ensure security dur-

ing the meetings. The gun ban will complement the “no sail zone” and “no flight zone” that the govern-ment will implement near and around the venues of the Apec meetings next week.

The government would also close several roads from traffic and even considers implementing a “telephone signal disruption” during the holding of the meetings and whenever the economic leaders

would move around.On Thursday the military has

already put on blue-alert status the headquarters of the Army and even the Joint Task Force-National Capital Region, in support of the security mode adopted by the PNP.

Marquez said the suspension of permit to carry was necessary as part of the security preparations in order to secure the delegates and their families.Rene Acosta

Natl police impose gun ban in Metro Manila

A2

briefsCARS PROGRAM I.R.R. 90 PERCENT DONE

Proposed salary hike for state workers seen to worsen income inequality in public service

By Cai U. Ordinario

The proposed increase in govern-ment salaries is expected to worsen the income inequality in

public service, according to the Ibon Foundation Inc.

Ibon said salaries of high-rank-ing government officials will triple while low-ranking government em-ployees will only see an increase of 12 percent to 23 percent. 

“The inequity in government pay is getting worse. The last round of salary increases also saw the high-est ranking officials seeing much higher increases of 70 percent to 140 percent compared to just 40 percent to 45 percent in the lower

salary grades,” Ibon said. Ibon added that the proposed

Salary Standardization Law (SSL) of 2015 will see the basic pay of high-ranking officials, like the president, vice president and Cabi-net secretaries, increase 186 per-cent to 223 percent. 

This means those classified with Salary Grade (SG) 31 will receive a monthly pay of P167,809 and P268,096 for SG 33. Ibon said this

will more than triple their current ba-sic pay to around P3.4 million to 5.1 million annually.

Meanwhile, the basic pay of the low-est 13 SG only increases by 12 percent to 23 percent, or just P2,068 for SG 1, and to P3,796 for SG 13. 

Ibon said this is only a marginal increase in basic pay ranging from P11,068 for SG 1 to P25,232 for SG 13. 

It added that the bulk of gov-ernment employees are found in the lowest SGs, with 800,000 to a million employees receiving SG 15 or lower. 

Ibon said those in the lowest six or seven SG may still take home less than the decent living wage of P16,000 per month.

“The basic pay does not yet include the midyear 14th-month bonus, en-hanced performance-based budget-ing [PBB] and any allowances. While this will slightly increase the final

salaries received, the basic gross ineq-uity in the salary increases remains,” Ibon said.

Ibon added that the income in-equality in public service “reinforces and institutionalizes” the widening gap between high government of-ficials’ lifestyles and the conditions of the poor. 

Inequality is measured by the Gini coefficient. A Gini coefficient of 1 rep-resents perfect inequality while zero represents equality.

The Philippine Statistics Authority said that the results of the 2012 Fam-ily Income Expenditure Survey showed that the country’s Gini coefficient was still at 0.46. 

The highest inequality in the coun-try was seen in Region 10 or Northern Mindanao with a gini of 0.484, and Region 8 or Eastern Visayas, with 0.483. The lowest Gini was recorded in Autonomous Region in Muslim Mindanao at 0.288.

Bring out the armor a column of V-150 armored personnel carrier snakes its way through the morning rush-hour traffic on Friday atop the edsa Kamuning flyover as part of the security preparations for the asia-Pacific economic Cooperation Summit in manila next week. the military says measures are in place to ensure the security of the weeklong event. NoNoy Lacza

news@businessmirror.com.ph Saturday, November 14, 2015 A3BusinessMirrorNews

The Board of Investments (BOI) is still fine-tuning the Joint Administrative Order (JAO) for the Comprehen-sive Automotive Resurgence Strategy (CARS) Program to ensure a kink-free mechanism in the issuance of tax payment certificates (TPCs) for the participants.  

BOI Supervising Director Corazon halili-Dichosa said that, while the implementing rules and regulations (IRR) of the much-awaited program is nearing comple-tion, the JAO for the three agencies—the Department of Trade and Industry (DTI), the Department of Finance (DOF), and the Department of Budget and Manage-ment—is still undergoing “scrubbing.” The necessity for a JAO is embedded in executive Order (eO) 182, the CARS Program.

eO 182 prescribes the grant of fiscal support to car makers participating in the program will be given in the form of TPC, which will defray the tax and duty obliga-tions of the car makers to the national government, specifically excise tax, income tax, import duties and value-added tax. 

Thus, a mechanism must be created between the three agencies in the issuance of the TPCs.

“Inaayos namin ’yung JAO kasi mahirap naman ’pag andyan na ’yung IRR and you have these investments of the participants tapos mahuhuli ’yung mechanism. We just want it to be clear, kasi marami kaming kausap dyan. It’s not that easy kasi it’s a legal document. Sa JAO mag-ko-commit ang mga agencies, not in the IRR,” Dichosa said at the sidelines of the Asia-Pacific economic Coo-paration high-level Dialogue on Inclusive Business.

While Dichosa did not provide more details, a source privy to the matter said that the DTI is ensuring that the rules are clear for the DOF, specifically the Bureau of Internal Revenue, in the release of the TPC. 

The CARS Program is being eyed by the BOI for re-lease next week, and is “almost 90 percent” complete, according to BOI Governor henry Co. he declined to disclose any further details on the program. 

The CARS Program is seen as the cornerstone of the government’s Manufacturing Resurgence Program, and envisions the Philippines to become a major auto- manufacturing hub in Asia.  Catherine N. Pillas

The Republic of Peru is pledging to continue the push for inclusive business (IB), as the Latin American country is set to take over the hosting duties of the Asia-Pacific economic Cooperation (Apec).

h.e. Felix Denegri, the ambassador of Peru to Thai-land and a nonresident ambassador to the Philippines, told reporters that IB will still see support considering the development impact of the advocacy. 

“In relation to inclusive business, we are very com-mitted to developing social inclusiveness in Latin Amer-ica. Latin America is starting to understand [the] advan-tages of supporting IB in the sense that Latin America has greatest disparity in [the] distribution of wealth,” Denegri said. 

Apec economies gathered on Friday in Manila for a high-level dialogue on IB, in line with the overall Apec theme of “Building Inclusive economies, Building a Bet-ter World.”

IB is defined as  a “private-sector approach to pro-viding goods, services and livelihood   on a commer-cially viable basis to people at the base of the pyramid by making them part of the value chain of companies’ core business as suppliers, distributors, retailers or consumers.” Catherine N. Pillas

By Joel R. San Juan

T HE Department of Jus-tice (DOJ) said on Fri-day that it has assigned

prosecutors at the country’s three major airport terminals for the speedy resolution of cases involving alleged tanim-bala or bullet-planting inci-dents that have been victim-izing travelers. 

At a news briefing, DOJ Spokesman Emmanuel Caparas also announced that the Na-tional Bureau of Investigation (NBI) Task Force Talaba (tanim, laglag, bala) is expected to release the result of its probe in connec-tion with the modus operandi next week. 

The seven-man task force,   headed by head agent Manuel Antonio Eduarte, has been tasked to undertake case build-up on the possible criminal and/or administrative liabilities of all individuals and agencies

involved, whether public or pri-vate. Caparas, however, begged off from disclosing the prelimi-nary findings of the NBI, but admitted that part of the ongo-ing investigation is to determine whether these incidents are politically motivated. 

“The stationing of the fiscal there [at the airport] is one way for now to be able to shorten the time of going to the fiscal, filing a complaint and determining whether a case should be filed at the moment [because] ang pasahero hindi na nakakaalis,” Caparas said.

Caparas added that the DOJ expects that, with the pres-ence of public prosecutors at the airports would shorten the resolution of the bullet-planting cases from days to merely hours. 

“We are trying to avoid inci-dents where passengers are not allowed to take their flights just because may bala na nakuha sa

kanila…. It affects the lives of people unnecessarily and un-fairly,” Caparas said.

He added that airport pros-ecutors  have been instructed by Justice Secretary Alfredo Benjamin Caguioa and Prosecu-tor General Claro Arellano to expedite the conduct of inquest proceedings, weigh the evidence, including the profile of the respondent.

“There are procedures in law, there are legal provisions that allow us to take certain mea-sure to protect the rights of the general public  whether you are a passenger or not and it also protects the rights of those who are looking after security of our airports,” he added.

Earlier, the Manila and Pa-say City Prosecutors’ Office have ordered the release of 15 alleged  tanim-bala victims af-ter dismissing the criminal case against them for further investigation.

DOJ deploys prosecutors at Metro airport terminals

By Henry Empeño | Correspondent

SUBIC BAY FREEPORT—A Filipino and Taiwanese joint ven-ture will start the commercial production of “green and smart” modes of public transportation in this free port early next year.

Roteco, the joint venture company formed by Ropali Corp., one of the top motorcycle dealers in the Philippines, and Teco Electric and Machinery Co. Ltd., a Taiwan-based company that develops and manufacture electric motors, presented on Tuesday prototypes of its electric tricycle, or e-trike, and its four-wheeled electric jeepney, or e-jeepney, at its plant site in the Subic Gateway Park here.

The public introduction and product demonstration was at-tended by Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, Olongapo City Mayor Rolen Paulino, Zambales Vice Governor Ramon Lacbain II and business leaders in the Subic Bay area.

In the said occasion, Teco Chairman Chao Kai Liu said the e-trike and e-jeepney project will provide the riding public with an opportu-nity to replace second-hand diesel jeepneys  and other public convey-ances that  emit dirty smoke and consume much fuel.

“By bringing out green and smart mobility, we can raise the qual-ity of public transport in the Philippines and, at the same time ,  help reduce carbon emission and dumping of used oil in our environment,   which cause climate change,” Liu said.

Ropali President Roberto Alingog , meanwhile, said that it is the firm’s advocacy “to drive social entrepreneurship by giving back to the people clean air and a clean living environment.” 

Aside from the environment-friendly feature of the e-vehicles, Alingog said that their products capitalize on five premium qualities: safety, power, efficiency, comfort and stability.

He said the four-passenger plus driver e-trike, for instance, as-sures high cruising range of 80 kilometers for every battery life. It also features heavy-duty front forks, leaf-spring suspension and flat- and ladder-type chassis to give the spacious trike stability and maneuverability.

Meanwhile, the e-jeepney has a powerful and water-resistant 12-kilowatt electric motor that is able to produce 140 Nm of torque and guarantee a 20 percent climbing ability. It can travel 80 kilome-ters per newly charged batteries.

The e-jeepney, which can accommodate 20 passengers, also has a side entrance and a rear emergency exit to provide passengers with safe and easy entry and exit.

During the product launch, SBMA Chairman Garcia noted that Roteco’s e-vehicle project dovetails with the SBMA’s commitment to protect and preserve the environment, especially within the free port.

“We have successfully implemented the no-plastic policy in all establishments, and initiated programs for rain forest and coastal protection as part of our commitment to help protect the envi-ronment,” Garcia said. “This project is another big step in that direction.”

He added that Subic will soon become a center for renewable ener-gy, as the largest solar farm facility in Asia has started construction to produce cheap electricity for free port locators.

Filipino-Taiwanese venture to build e-vehicles in Subic Freeport by 2016

PERU VOWS TO PUSH FOR I.b.

olongaPo City mayor rolen Paulino tries driving the e-trike with ropali President roberto alingog as passenger, as Subic Bay metropolitan authority Chairman roberto garcia looks on during the launching of the e-vehicles project of roteco in the Subic Bay Freeport. SBMa PHoTo

Saturday, November 14, 2015 • Editor: Angel R. Calso

OpinionBusinessMirrorA4

Freedom of navigation or innocent passage?

editorial

The United States sent its warship, the USS Less-en, within 12 miles of the artificial island China has constructed on the Subi Reef. The event has been talked about repeatedly in the local media.

The discussion has revolved around the issue of whether this was a case of “freedom of navigation” or “innocent passage.” Freedom of navigation takes place in international waters; innocent passage means traveling through some other country’s territory without malicious intent.

The Filipino public has been educated as to the difference. Statements by both the US and Philippine governments have stated that the Lassen traveled through the area on a “freedom of navigation” exercise.  however, reports are now surfacing to the specifics and intent, and it appears that, in a strict sense, this was not a freedom of navigation exercise.

Government statements and press reports, notwithstanding, this is the reality, as reported in the US press.

A ship in open and international waters does pretty much whatever it wants to, as if it were in “blue water” hundreds of miles from any coastline. however, that was apparently not the case with the Lassen. With pressure from the White house not to “upset” the Chinese government too much, this operation fell under the legal classification as “innocent passage” and not freedom of navigation.

Josh Rogin, reporting for Bloomberg View, writes that “the White house insisted that the Pentagon refrain from carrying out more robust aspects of the FON [freedom of navigation] operation.” The Lassen was not allowed to “turn on sensors or fly its helicopters, actions that military experts say would have made clearer that the US was conducting a freedom of navigation operation.” Further, Reuters says that, while carrying out the operation, the surveillance planes trailing the US ship stayed outside of China’s declared 12-mile nauti-cal boundary.

As a result, if this was “innocent passage,” it might actually bolster China’s territorial claims, according to an analysis by the Center for Strategic and In-ternational Studies.

The fact that the Lassen may have legally conducted only an innocent pas-sage through the area might be attested to by the fact that the US flew one of its B-52 nuclear-equipped bombers over the same area supposedly this past weekend. however—and this is most disturbing—(from  http://www.news.com.au/) “Pentagon Spokesman Navy Cmdr. Bill Urban said the B-52s were conducting ‘routine operations’ and did not breach the 12-mile [22-kilometer] territorial claim China has made on the man-made islands.”

Reuters also reports a few days ago that “Chinese Foreign Minister Wang Yi said the Philippines’s case against China at an arbitration tribunal over ri-val claims in the South China Sea had strained relations, and that it was up to the Philippines to heal the rift.”

While we all take offense at that remark, perhaps, this is in reaction to the knowledge that the US bark is much worse than its bite.

PhIlIPPINe property developer Megaworld Corp. (MeG) reported a nine-month profit that was up 25.6 percent year-on-year from 2014. Megaworld’s share price on the Philippine

Stock exchange is now down 23.5 percent from its historic high, reached in April 2015.

Life is not fair

how can that be?Forget about the stock market.

This goes against everything that we believe life should be. The hand-somest man gets the prettiest girl. The best team is supposed to win the championship. The smartest kid in the class becomes the life- saving doctor, or the lawyer who works for the oppressed. Good always triumphs over evil—just watch any Star Wars movie.

Maybe the reverse correlation between the earnings growth and share-price movement of MeG has something to do with the “efficient market” theory. This theory says that share price always will, or at least should, reflect corporate value. They gave the Nobel Prize in economics to someone that says markets are genuinely efficient. The theory that markets are not efficient says that price and value sometimes get out of synch. They gave the economics

prize the same year to someone who believes in that concept.

Actually, both theories are op-posite sides of the same coin. Value and price will always eventually come together, according to both theories, just in different times. But MeG’s profits have been growing all year.

First-quarter earnings were “dis-appointing” but was still a “buy” at P5.39 (the price is now P4.41). By the end of the second quarter, year-to-date earnings “beat expectations” and was still a “buy” at P4.59. There is nothing necessarily or inherently wrong with the strategy of buying, as the price goes down as earnings increase. But that does not explain why growing profit does not mean growing price.

Maybe all stock prices move in tan-dem. The Philippine Stock exchange Composite Index (PSei) is down 15.7 percent from the high reached at the same time MeG has its 2015 apex. It

is completely normal for some stocks to move more than the index in either direction. If all shares move together, then the idea is to pick those issues that are going to perform more favor-ably than the index, which also hap-pens frequently.

But this is Megaworld, a PSei component, and its earnings are up 25.6 percent, which is much better than the average for the PSei issues. Why isn’t MeG outperforming the PSei and moving up with its growing earnings, instead of down?

Perhaps, the explanation is that stock prices, in general, are a “leading indicator,” predicting, for example, not what the economy is doing now, but what the economy will be doing six months or more down the road. That would seem to make sense, since the PSei hit its high long before the economic data showed economic growth was slowing. Maybe MeG’s share-price falling is an indication that its earnings will be lower in the quarters to come.

But, if that is true, then increas-ing earnings growth does not mean a darn thing. Share price then would seem to reflect future earnings rath-er than past profits or profit-growth trends. By this “theory,” the fact that MeG shares are down 23.5 percent since April would tell us to expect lower MeG profits early next year, rather than earnings predicting share price.

Maybe we should be “betting” on MeG’s profit growth, rather than

“betting” on its share price. Maybe markets are neither efficient nor inefficient but are crystal balls into the future of corporate value. Now, I’m confused.

Perhaps, the reality of stock-price movement is something different altogether. The stock-market gu-rus and financial-literacy experts tell us that our emotions are what keep us from making money in the market. Use your logic and brains, and you will be richer. The fact that the MeG share price is not follow-ing any corporate earnings value should be ignored, I guess. All the intelligent advice from the “experts” constantly seems to work best when prices are in an uptrend—sort of like using a dartboard to pick your stock investments.

In the meantime, logic and cor-porate earnings be damned. The stock market is going lower, and will continue to go lower until such time that—and I hate to say this—positive investor emotions take over and they start buying shares again. That will come when the last few people decide enough is enough with all the sound fundamental reasons for buying fall-ing stock prices and cut their losses.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-mar-ket information and technical analysis tools provided by the COL Financial Group Inc.

OUTSIDE THE BOXJohn Mangun

ChINA’S grown tired of being a low-tech manufacturer of things that other people design. So it’s throwing money and resources at an industrial upgrade.

The wrong way for China to take off

On Tuesday the gover nment proudly announced one of the fruits of that effort: The country’s first in-digenously designed passenger jet, the 90-seat ARJ21, will be delivered to state-owned Chengdu Airlines by year’s end. There’s just one problem. Of the roughly 350 additional ARJ21s on order, almost all are slated for another Chinese state-owned airline or leasing company. International airlines don’t appear terribly interested.

It’s hard to blame them. After 13 years of development, and probably billions in costs (the development costs have never been disclosed), the ARJ21 remains heavier, slower and less fuel-ef-ficient than its competition. even worse, it won’t be certified by the US Federal Aviation Authority (FAA), meaning it can only fly in China, and the handful of South American, Asian and African countries that recognize Chinese safety-certification standards. (Chinese state media has trumpeted  the purchase of

three aircraft by the Republic of the Congo.) last fall one leading analyst con-cluded: “We do not consider the ARJ21 to be a viable commercial project.”

That’s not what China envisioned when the plane was conceived in 2002. The ARJ21 was supposed to compete in the market for passenger jets with fewer than 100 seats—currently dominated by embraer and Bombardier—and to jump-start an aircraft-manufacturing sector that would eventually challenge Boeing and Airbus. Passenger growth numbers provided incentive. Boeing ex-pects China will need 5,580 new planes over the next two decades as it grows into the  world’s largest  commercial aviation market.

So what’s gone wrong? First, while China’s large, captive market of state-controlled airlines offers a commercial safety net, it’s also dampened the in-centive to innovate. Why worry about demanding foreign buyers when the government can ensure that the plane

is purchased in respectable numbers at home?

Second, China decided to dive straight into building a complete plane, using imported or at least foreign-de-signed components. That’s the same approach Xiaomi used to develop a Chi-nese competitor to the iPhone. Indeed, Atlantic correspondent James Fallows has  called the ARJ21’s larger cousin, the C919, a “huge flying counterpart to the iPhone.”

That might work well for products that have refresh cycles measured in months, such as smartphones. But if you’re building a jet, it’s a recipe for in-stant obsolescence. even the newest, most innovative components can quickly become outmoded if delays occur, as they have repeatedly with the ARJ21 and its inexperienced design teams.

Most important, in its rush to build a jet, China chose to base the design for the ARJ21 on the 1960s-era DC9 and reportedly has used tooling left behind in China by McDonnell Douglas in the 1990s to build it. That means engineers have packed relatively new technologies into a heavy, old design, with predictably disappointing results.    

China would’ve been better off fol-lowing the path chosen by Japan, which launched its first indigenous passenger jet in 40 years, the Mitsubishi Regional Jet (MRJ),  on Wednesday. Unlike the ARJ21, the Japanese plane is a high-tech,  fuel-efficient marvel  with more than 400 orders, the vast majority of which are international. Also unlike the

ARJ21, the jet will almost certainly be certified to fly in the US and most of the rest of the world.

The success and credibility of the MRJ has much to do with the fact that Mitsubishi has for years been an inno-vative manufacturer of aircraft parts, including high-tech composite wings for the Boeing 787 Dreamliner, as well as a collaborator with top aircraft manu-facturers around the world. During the height of the 787 development program, some 22,000 Japanese worked on ele-ments of the cutting-edge plane.

These experiences gave Mitsubishi several advantages. engineers familiar with making lightweight, fuel-efficient, composite components were quickly able to build a state-of-the-art airframe for the MRJ. Furthermore, Mitsubishi’s ex-perience working with manufacturers and regulators in other countries has smoothed the FAA certification process. Unlike China, which expects regulators to bend, Mitsubishi just opened an office in Seattle to navigate regulatory issues and provide support to North Ameri-can buyers.

The MRJ’s success should serve as a cautionary tale to any Chinese official who thinks bottomless funding, a will to succeed and a large domestic market are all that’s needed to create innovative products. Just as often, they result in an unproductive misallocation of Chinese resources and energy. The ARJ21 might someday be viewed as an important way-point on China’s aviation adventure. For now, it’s little more than a flight delay.

BLOOMBERG VIEWAdam Minter

Saturday, November 14, 2015

OpinionA5BusinessMirroropinion@businessmirror.com.ph

‘Laudato Si’

Part Eight

Note: We continue the reprint as a series of the Holy Father Pope Francis encycli-cal Laudato Si (On Our Care for Our Common Home).

Global inequality

The human environment and the natural environment deteriorate together; we cannot adequately combat environmental degradation, unless we attend to causes

related to human and social degradation.

In fact, the deterioration of the environment and of society affects the most vulnerable people on the planet: “Both everyday experience and scientific research show that the gravest effects of all attacks on the environment are suffered by the poorest.” For example, the depletion of fishing reserves especially hurts small fishing communities without the means to replace those resources; water pollution particularly affects the poor who cannot buy bottled wa-ter; and rises in the sea level mainly affect impoverished coastal popula-tions who have nowhere else to go. The impact of present imbalances is also seen in the premature death of many of the poor, in conflicts sparked by the shortage of resources, and in any number of other problems, which are insufficiently represented on global agendas.

It needs to be said that, generally speaking, there is little in the way of clear awareness of problems, which especially affect the excluded. Yet, they are the majority of the planet’s population, billions of people. These days, they are mentioned in interna-tional political and economic discus-sions, but one often has the impres-sion that their problems are brought up as an afterthought, a question that gets added almost out of duty or in a tangential way, if not treated merely as collateral damage. Indeed, when all is said and done, they frequently remain at the bottom of the pile.

This is due partly to the fact that many professionals, opinion makers, communications media and centers of power, being located in affluent urban areas, are far removed from the poor, with little direct contact with their problems. They live and reason from the comfortable posi-tion of a high level of development and a quality of life well beyond the reach of the majority of the world’s population.

This lack of physical contact and encounter, encouraged at times by the disintegration of our cities, can lead to a numbing of conscience and to tendentious analyses that ne-glect parts of reality. At times, this attitude exists side by side with a “green” rhetoric. Today, however, we have to realize that a true ecological approach always becomes a social ap-proach; it must integrate questions of justice in debates on the environ-

ment, so as to hear both the cry of the earth and the cry of the poor.

Instead of resolving the problems of the poor and thinking of how the world can be different, some can only propose a reduction in the birth rate. At times, developing countries face forms of international pressure, which makes economic assistance contingent on certain policies of “reproductive health.” Yet, “while it is true that an unequal distribution of the population and of available resources creates obstacles to devel-opment and a sustainable use of the environment, it must nonetheless be recognized that demographic growth is fully compatible with an integral and shared development.” 

To blame population growth, in-stead of extreme and selective con-sumerism on the part of some, is one way of refusing to face the issues. It is an attempt to legitimize the present model of distribution, where a minor-ity believes that it has the right to consume in a way which can never be universalized, since the planet could not even contain the waste products of such consumption. Besides, we know that approximately a third of all food produced is discarded, and “whenever food is thrown out, it is as if it were stolen from the table of the poor.” 

Still, attention needs to be paid to imbalances in population density, on both national and global levels, since a rise in consumption would lead to complex regional situations, as a result of the interplay between

SERVANT LEADERRev. Fr. Antonio Cecilio T. Pascual

DATAbASECecilio T. Arillo

Marcos’s unmatched legacy: Hospitals, schools and other infrastructures

Part Three

IT is a common Filipino trait to “remember the bad” and “forget the good.” This is the reason people choose to remember President Marcos through the fictitious and cruel acts

attributed to him and his government.

Under the Marcos regime, Fili-pinos also saw the establishment of unprecedented edifices and infra-structures, the majority of which still stand proudly today, servicing the needs of the Filipino people.

It was in Marcos’s time when pioneering hospitals were built: the Philippine heart Center, Lung Center of the Philippines, and the National Kidney and Transplant Institute.

Cultural, tourism and heritage sites were, likewise, constructed: the Cultural Center of the Philippines, Folk Arts Theater, Philippine In-ternational Convention Center, the National Arts Center (now Makiling Center for the Arts) housing the Phil-ippine high School for the Arts, Nay-ong Pilipino and the People’s Park in the Sky in Tagaytay City.

To address the influx of people migrating to urban centers from the countryside—which gave birth to a myriad of other problems, such as violence, social unrest, environmen-tal degradation and limited hous-ing provision—President Marcos came up with the Bagong Lipunan Improvement of Sites and Services (BLISS) projects in Manila and in the rural areas to house the coun-try’s poorest of the poor.

A total of 230,000 housing units were constructed from 1975 to 1985. While it provided dignified shelter, the ultimate goal of BLISS is to de-velop a strong and solid economic base for the community, thereby inculcating self-reliance among the beneficiaries.

Former National economic and Development Authority and Pro-fessor emeritus of the University of the Philippines School of economics Gerardo P. Sicat, one of the country’s most distinguished economists, said: “Of all the presidents of the country [to this time], Marcos built the most extensive infrastructure. The proj-ects were interrelated and comple-mented sector-development objec-tives. he put in the major trunk-line road networks within the country, linking them from Luzon to the Vi-sayas, and then to Mindanao.

“These networks were essential in bringing down the cost of transpor-tation, thereby raising the prospects of commerce throughout the affected regions of the country. In his two terms in office, he concentrated on a network of roads, simply designed and inexpensive school buildings, and irrigation systems that also built farm-to-market roads.

“In Luzon major irrigation sys-tems and hydroelectric power plants were built. These were the Upper Pampanga River Project, Angat multipurpose power and irrigation project and the Magat River Project. These projects firmed up the role of Central Luzon and the Cagayan Val-ley in the Green Revolution of the 1970s. In addition, community ir-rigation systems were built in many other provinces where agricultural activities thrived, especially across the nation and in the big islands. This increased agricultural activi-ties in the big Visayan Islands and in Mindanao, and helped cover a wide area of the rice and food-producing region. The result of these invest-ments could be seen in the rise of agricultural output, especially the in-crease toward greater sufficiency in palay production. Irrigation helped to raise farmer productivity.

“he improved the older networks of national roads that connected

provinces, and rehabilitated them with durable construction. A lot of these projects eased the transport bottlenecks within provinces and across provinces, and improved intra-island travels within the big islands.

“he linked these with airport constructions. If Marcos were to be judged only on his infrastructure-construction program during his first two terms alone, he would have been considered an outstanding president. But, actually, he under-took a lot more, especially during the martial-law period. The build-ing program for the improvement of public-school buildings, especially at the elementary level, was one of the earliest programs of Marcos.

“A study of infrastructure con-struction by various presidents

shows that Marcos was the president who made the largest infrastructure investment. This is not because he was the longest-serving leader of the country alone.

“On a per-year basis, he led all the presidents. Only Fidel Ramos had bested him in road building for a period of one year. But overall in terms of quantity of infrastructure investments, their impact on the rest of the economy and on the breadth and depth of the investments, Mar-cos was by far the most prolific, undertaken on a per-year basis and cumulatively over the years that he held office.

“The government’s share of public investment to GDP rose to 6 percent from the meager amount of 2 percent of GDP before he took office. This was no mean feat. The level of economic activity rose over-all and—in the case of the transport investments—they increased the efficiency of the economy. A great part of these investments in roads was in the countryside so that agri-cultural output and domestic com-merce increased.

“The variety of public invest-ments undertaken was made pos-sible by various methods of mobi-lizing financing for them. Although some of the major road projects and other public works were placed under the direct programs of some major departments of the government, a large part were undertaken under the auspices of many restructured government entities that took on a corporate form. So, in great mea-sure, the reorganization of the public agencies helped in strengthening the capacity to undertake the projects.

“Major projects dealing with expansion of the irrigation, water services, and power projects were pursued by entities under the corpo-rate structure. They had more fiscal autonomy, and the programs were subject to a system of accountability. The corporate framework for these agencies enabled them to incur debt financing from major multilateral and bilateral development agencies that led to the construction of major development projects.

“Nevertheless, his unparalleled achievements and contributions to the country, especially in infrastruc-ture development, albeit persistently shunned from the spotlight, will re-main as his lasting legacy. For as long as they stand, Marcos lives.”

To be continued

To reach the writer, e-mail cecilio.arillo@gmail.com

problems linked to environmen-tal pollution, transport, waste treatment, loss of resources and quality of life.

Inequity affects not only individu-als but entire countries; it compels us to consider an ethics of international relations. A true “ecological debt” ex-ists, particularly between the global north and south, connected to com-mercial imbalances with effects on the environment, and the dispropor-tionate use of natural resources by certain countries over long periods of time. The export of raw materials to satisfy markets in the industrial-ized north has caused harm locally, as, for example, in mercury pollution in gold mining or sulphur dioxide pollution in copper mining. There is a pressing need to calculate the use of environmental space throughout the world for depositing gas residues, which have been accumulating for two centuries and have created a situation which currently affects all the countries of the world.

The warming caused by huge con-sumption on the part of some rich countries has repercussions on the poorest areas of the world, especially Africa, where a rise in temperature, together with drought, has proved devastating for farming. There is also the damage caused by the ex-port of solid waste and toxic liquids to developing countries, and by the pollution produced by companies which operate in less-developed countries in ways they could never do at home, in the countries in which they raise their capital: “We note that often the businesses which operate this way are multinationals. They do here what they would never do in developed countries or the so-called First World. Generally, after ceas-ing their activity and withdrawing, they leave behind great human and environmental liabilities, such as unemployment, abandoned towns, the depletion of natural reserves, de-forestation, the impoverishment of agriculture and local stock breeding, open pits, riven hills, polluted rivers and a handful of social works, which are no longer sustainable.”

The foreign debt of poor coun-tries has become a way of controlling them, yet this is not the case where ecological debt is concerned. In dif-ferent ways, developing countries, where the most important reserves of the biosphere are found, continue to fuel the development of richer countries at the cost of their own present and future.

The land of the southern poor is rich and mostly unpolluted, yet access to ownership of goods and resources for meeting vital needs is inhibited by a system of commer-cial relations and ownership that is structurally perverse.

The developed countries ought to help pay this debt by signifi-cantly limiting their consumption of non-renewable energy and by as-sisting poorer countries to support policies and programs of sustainable development.

The poorest areas and countries are less capable of adopting new models for reducing environmental

impact, because they lack the where-withal to develop the necessary processes and to cover their costs. We must continue to be aware that, regarding climate change, there are differentiated responsibilities. As the United States bishops have said, greater attention must be given to “the needs of the poor, the weak and the vulnerable, in a debate of-ten dominated by more powerful interests.”  We need to strengthen the conviction that we are one single human family. There are no fron-tiers or barriers, political or social, behind which we can hide, still less is there room for the globalization of indifference.

True to its mission of answering to the cry of the poor, CFC Ancop Global Foundation Inc. strengthens its partnership with Caritas Manila to help fund the education program Youth Servant Leadership and edu-cation Program.

We recently signed with Jaime Ilagan, president of CFC Ancop, an expanded memorandum of agree-ment since our organizations have been partners since 2013 in educat-ing poor but deserving youth. With education as the main thrust of both organizations in their social-devel-opment goals, Caritas Manila’s Youth Servant Leadership and education Program (YSLeP) and CFC Ancop’s Child Sponsorship Program (CSP) are a perfect match in their respec-tive mission of poverty reduction in our country.  

The strengthened partnership allows scholars to finish college in the identified communities in Pasay City and calamity-stricken areas in Leyte, Western Samar and Compos-tela Valley. In providing financial as-sistance to these poor but deserving youth, values formation is very much part of YSLeP and CSP.  Under this partnerhip, CFC Ancop will pave the way for the parents of the scholars to participate and attend the vari-ous activities of Couples for Christ.

YSLeP is not just scholarship, but leadership.  The youth scholar ben-eficiaries of Caritas Manila’s YSLeP undergo various values-formation modules and leadership workshops, which center on three core values of self-discipline, moral integrity and social responsibility. There are over 5,000 youth nationwide under Cari-tas Manila’s YSLeP.

With studies proving that attain-ing a college degree reduces the Fili-pino household’s poverty incidence by 98 percent, there are more youth who need your help!  To donate to Caritas Manila’s YSLeP, please vis-it  www.caritasmanila.org.ph or call our DonorCare lines at 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857.

Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@gmail.com.

For comments, e-mail caritas_ma-nila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298. Fax: 563-9306.

The US and its allies have rea-son to be skeptical of Russia’s new plan for peace  in Syria.

The proposal has arrived, after all, just as Russian air strikes have begun to help President Bashar al-Assad to his first military successes since they began. Nevertheless, the plan contains some ideas that could help end a conflict that’s killed 250,000 people and sent millions of refugees as far as europe. 

What’s most encouraging about the eight-point plan is that it re-flects some change in thinking about the Syrian rebels. No longer does Russia dismiss all of Assad’s armed opponents as terrorists. Now it is asking the diplomats who will gather in Vienna on Saturday to draw up two lists, one that des-ignates terrorist organizations in Syria and another that identifies legitimate opposition groups that

can take part in peace talks. Such a strategy is probably the

only way to unwind Syria’s complex proxy war, though it isn’t proving easy for the sides to agree on which groups are which. Russia wants the terrorist list to be long, so it can at-tack as many of Assad’s opponents as possible. Saudi Arabia and Tur-key want it to be short. The US, too, wants to be sure that no militias it has been supplying with weapons are designated as terrorists. 

Any breakthrough for Syria would also require an end to the deadlock over Assad’s future role. That can be achieved if the Syrian side, backed by both Russia and Iran, can accept a less important role for the current president, by coming to a temporary acceptance of the soft partition of Syrian already in place. 

Syria’s president cannot simply be put back in charge of people he’s

been attacking for the past four years —not even after an 18-month constitutional transition, as Russia suggests. Russian President Vladi-mir Putin may hope he can ensure that happens by continuing the war on Assad’s side. The US should

help prevent that prospect by build-ing safe zones and strengthening support for the rebel militias it works with. 

equally, however, Assad cannot simply be removed. That would invite institutional collapse and potential catastrophe for the roughly 12 million people still under his control, many of them religious minorities who have reason to fear Syria’s Sunni rebels. 

If the diplomatic process in Vien-na is to have a productive future, the US, Russia and all other players must accept that, during Syria’s inevitably long transition, local security is best left in local hands, allowing Assad to remain in place without threat-ening people in rebel-controlled areas. Syria has already broken into sections, and putting the country back together will take time. Russia’s plan isn’t enough to achieve peace or unification, but it can make a start.

Russia’s promising peace plan for Syria

To blame population growth, instead of extreme and selective consumerism is one way of refusing to face the issues. It is an attempt to legitimize the present model of distribution, where a minority believes that it has the right to consume in a way that can never be universalized, since the planet could not even contain the waste products of such consumption. We know that approximately a third of all food produced is discarded, and “whenever food is thrown out, it is as if it were stolen from the table of the poor.”

If the diplomatic process in Vienna is to have a productive future, the US, Russia and all other players must accept that, during Syria’s inevitably long transition, local security is best left in local hands, allowing Assad to remain in place without threatening people in rebel-controlled areas. Syria has already broken into sections, and putting the country back together will take time.

news@businessmirror.com.ph BusinessMirrorSaturday, November 14, 2015 A6

BMReports

“The telecom service will now improve, because there is competi-tion. Prices have gone down, even though we have not yet done any-thing,” he said. “Mobile signal will improve soon, there will be fewer dropped calls.” The San Miguel official added that he never intended to wage war with the incumbents, but merely wants to end the losing streak of the country in the mobile Internet ratings game in Asia Pacific. “Honestly, we are not here to engage them into a fight. What we really want to do is to improve the service to the public,” he said.

Pressure telcosDeSPITe all the challenges that it will face in the future, the possibil-ity of a third network player seems to be inevitable, as Telstra’s chief ex-ecutive announced that his company is willing to shell out as much as $1 billion this year for the formation of a wireless joint venture with SMC. Consumers, both in mainstream and social media, are generally excited with the prospect of having another telco provide mobile broadband ser-vices in the country. Quite a few went as far as bashing the incumbents for their slow Inter-net speeds, despite the high cost of the service relative to its neighbors. Studies conducted by Ookla, an Internet metrics provider, showed that the Philippines has the second- slowest average download speed among 22 countries in Asia, with an average speed of 3.64 Mbps. It ranked 176th out of 202 na-tions around the world. It is eight times slower than the global aver-age broadband download speed of 23.3 Mbps. Separately, cloud services pro-vider Akamai Technologies found that, while the Philippines might have improved its connection by a percentage point, its overall ranking in Asia still remains at No. 13 out of 15, or the third-worst connection in the region. Filipinos, according to the first-quarter report of Akamai, enjoyed an average download speed of 2.8 Mbps during the period under re-view. Trailing behind are India and Indonesia, with 2.3 Mpbs and 2.2 Mbps average speed, respectively. But is there really something to look forward to with Telstra’s entry? experts think so.

“One thing we can look forward to is a possible big competitor that is independent of the two big telcos, who can muscle its way into the mar-ket given a huge capital investment, and that create enough pressure on the incumbent telcos to shape up and be on their toes,” said Mary Grace Mirandilla-Santos, an inde-pendent researcher on information and communications technology and telecommunications policies. National Telecommunications Commission Director edgardo V. Cabarios, for his part, emphasized on the advantage that this gives to consumers. “In any market, improved com-petition brings better service, better quality and better prices. The main beneficiary of this are the consum-ers,” he said. International Data Corp. Phil-ippines analyst Alon Anthony D. Rejano added that the immediate effects of the soon-to-be third party could be felt by consumers as early as now. “everyone seems so excited about the coming of Telstra in the market, with the promise to fix the chal-lenges in the Internet connection. As of now, you can see a telco offering a cheaper and speedier connection. We see that the impact on the mar-ket is that it enables the incumbents to intensify their offerings and ser-vices on the back of the entry of a new telco service provider,” he said. For example, Globe has report-edly doubled the allocation of data of its postpaid consumers. “Globe is saying that they have prepared for a new player in the market and have been ready for it. In any business and when you have a competitor, you want to be ahead of the game, right? This means that you have to step up and create new ways to attract more consumers,” Rejano said. Case in point are PLDT’s launch-ing of fixed-line broadband plan, which is 1 Gbps, and Globe’s up-graded Platinum Broadband plans that have higher bandwidth. “This means the competition has a positive impact on consumers, which gives them better service at a cheaper price,” he pointed out.

Consumers attitude will be ‘wait and see’COMPeTITION, however, is ex-pected to cut the two incumbents’ market shares. Luis A. Limlingan, head of

Globe, PLDT try to snatch SMC’s 700-MHz band as Telstra entry starts market shake-upBATTLE OF THE ‘BANDS’

research and sales of Regina Capital Development Corp., said that, al-though the two telcos are at risk, the one near the losing end is the domi-nant telecommunications player. “Most likely, a majority of the customers of Telstra will be coming from PLDT, because it has the big-gest share in the market. Customers now are willing to jump ship, now that the average revenue per unit is at P140; switching costs are very low,” he said. Most of these subscribers, Miran-dilla-Santos added, will come from the prepaid segment of both telcos. “While it would make more sense for disgruntled postpaid subscribers to switch, the 24- to 30-month lock-in period and the absence of number portability make switching very in-convenient and costly. Thus, it’s the prepaid users who would more likely readily try out a new service provider,” she said. The switch, however, will take some time, at least according to Rejano. “even there is an increasing hype on Telstra, I believe Filipinos will still go through the wait-and-see process, in which they want their peers to try it first, and if proven more effective and better than the incumbents, they will use it. I think that consumer-spending behavior has evolved,” he said. Rejano added: “The market will

patronize a provider that will bring value to them, which considers the cost, quality and convenience of the offering altogether.”

Be preparedGIVeN the possibility of declining margins due to the entry of Telstra, analysts believe that the two incum-bents will have to be more creative and more aggressive in competing in the market. Alexander Adrian O. Tiu, senior equity analyst at AB Capital Securi-ties Inc., noted that, although the existing telcos have the advantage of brand awareness being in the business for so long, both companies will likely see their bottom lines affected by the entry of a new player. “PLDT and Globe have the ad-vantage of brand awareness being in the business for so long, unlike San Miguel-Telstra. However, it would be difficult for both companies to sustain their current margins, espe-cially if the San Miguel-Telstra joint venture will be aggressive—and I bet they will,” he said. Limlingan agreed, saying that this might spook investors of both companies. “I think investors should be wor-ried, because people are now willing to switch from one telco to another,” he said. Tiu added: “It’s definitely a cause

of concern for investors, especially if San Miguel gets aggressive, as it could reduce market share, margins and growth for both telcos.” But for Globe President ernest L. Cu, who was instrumental to Globe’s winning streak in the profitability war, fighting a shade will not be too difficult. “We’ve been working on our network for 13 years, do you think a new player can deliver the same experience on Day One? Globe has been able to compete with a very large, well-funded incumbent. Do you think we can’t compete with a start-up?” he said. Since a contract between SMC and Telstra has yet to be signed, Cu holds firmly to his belief that such a competitor is only a “ghost.” “I don’t get scared of ghosts. All Globe is doing is what it does best—continuing to gain market, continu-ing to maintain creating innovation to the market and great customer experience,” he said. “We have a for-mula that worked really well for us on the last five years, so we’ll keep doing it.” Despite this, Cu did not dismiss that the budding company is a threat. “They are a threat. Anyone who comes into the market is a threat, but I don’t want to react to a threat that’s not real. Sign the contract, and let’s play,” he said.

Manuel V. Pangilinan, chairman at PLDT, was honest to admit that his company will have to intensify its efforts to protect its consumer base, given the threat of a third play-er. His group, he said, will continue improving its services by expanding its network coverage and capacity. “We need to protect our market share for prepaid and postpaid. We’ll feel it immediately, but it depends on what their tactics are. It’s hard to speculate. But, really, they wouldn’t come in without a fanfare. The nov-elty of a new entrant...some people will be lured to try it,” he said. Telstra is expected to debut in Manila in 2016, through SMC’s Bell Telecommunications Philippines Inc. SMC is expected to hold 60 per-cent of the said company—requiring it to invest as much as $1.5 billion—while the remainder will be held by the Australian telecommunications giant. How Telstra will shake the telco sector up—whether through a price or a services war—that is something that the market will have to anticipate. “Telstra would position itself like any big telco and investor: Stick to the profitable areas. It is coming in to take advantage of a still largely un-served 4G mobile market. Whether its service will be any better than the two incumbents remains to be seen,” Mirandilla-Santos said.

continued from A1

At present, STA Travel offers five tours to the Philippines covering northern and southern re-gions, and trips to Boracay and Palawan, for stu-dents on a shoestring budget, from eight to 25 days. It also offers Manila as a stop on its tours of world capitals and major cities, dubbed “The Big Dozen.” Its “Hula Hoop” tour also offers Manila as destination, aside from Asian capitals like Bang-kok, Phuket, Borneo, Bali and Kuala Lumpur. Jimenez said one other significant development in his discussions with many potential partners, during the WTM, is a possible tie-up with Aber-crombie and Kent, a major leader in luxury travel with clients from around the globe. “We’re very excited because there we now have a very serious discussion with signature travel brands like Aber-crombie and Kent, a tour operator for the ultra-rich of the world. Based in the UK, it offers high-end adventure travel.” He described the possible partnership as a “seal of good housekeeping,” which will send the mes-sage to travelers around the world that “it’s okay

to travel to the Philippines. The Philippines is now the happening place, or one of the happening places.” He stressed that, “we’re not into it for the volume necessarily. This is more for the branding image, parang good housekeeping seal ’yan.” While the final details have yet to be ironed out, he said Abercrombie and Kent is preparing a package for the Philippines that would be very focused on ad-venture and high luxury. DOT officials also met with representatives of TripAdvisor, a web site that crowd sources reviews of destinations, tour packages and accommoda-tions. “TripAdvisor is almost a certainty. We are negotiating with them so there is richer content whenever people inquire anything about the Phil-ippines. We will prototype a project to increase the granularity of the engagement [between the web site and user], such that it will offer suggestions or reviews beyond the usual ‘what are the best hotels in Manila?’” He said Boracay will likely be the test-market for this new service to be offered by TripAdvisor.

“They’re really crowd-recommended itineraries,” he explained. Jimenez added that the DOT is also “exploring” a possible tie-up with Amazon.com for a Kindle-based experience that will highlight the Philippines as a destination. There are about 4 million Kindle tablet users in the UK, he said. The WTM was held at the exCel, London, from November 2 to 5. An annual activity, it is the lead-ing travel and exhibition event, attracting des-tinations, governments, tour operators, accom-modations and establishments, and other travel suppliers from around the world. Jimenez led a 60-man delegation from the Philippines, which included private tour opera-tors, representatives from hotels and resorts, DOT officials and lawmakers. According to its web site, total participants in WTM London 2014 reached a record high of 51,500, with the event generating a massive £2.5 billion (P178 billion) in industry business deals. No data has been available yet for the just-concluded 2015 event.

MERALCO LIGHTS UP ENTERTAINMENT CITY Power distributor Manila Electric Co. (Meralco) has inaugurated Pagcor-1 Entertainment City Substation, one of the most technologically advanced power infrastructures in the country and the company’s largest integrated and fully automated gas-insulated substation facility. Pagcor-1 is a fully underground subtransmission and distribution system meant to improve dependability and reliability of electricity service in the booming Entertainment City. Leading the inauguration ceremony were (from left) Meralco SVP and Head of Customer Retail Services and Corporate Communications Alfredo S. Panlilio, Meralco Chairman Manuel V. Pangilinan and Parañaque City Mayor Edwin Olivarez.

DOT wraps up deals to push visitor arrivals from UK. . . Continued from A1

discussions between different member-economies as they take place during the Leaders’ Retreat,” Valte told reporters. The Palace assured  that Philip-pine officials are, likewise, ready to welcome all the world leaders arriving for the Apec meeting next week, adding that souvenir gifts have also been prepared for other official delegates and foreign journalists covering the event. At the same time, Valte confirmed the host government had been informed that Indonesian President Widodo had begged off from attend-ing the Apec Manila Forum, indicat-ing he was tied up with “domestic issues,” without elaborating. “There has been no written trans-mission [that Widodo is not coming]... we wait for the official document because the confirmation of the at-tendance of President Widodo was sent to us, likewise, via official docu-ments. So we are also extending the same process,” Valte said. “However, again, we have been told that it is most unlikely that President Widodo will be able to attend the summit.” Asked if a reason was given for the no show, the Palace official re-plied: “Our friends from Indonesia cited domestic issues that need to be attended to, but no specifics.”

Apec. . . Continued from A1

SportsA7BusinessMirror Saturday, November 14, 2015

Tamaraws gun for semisbonus opposite Bulldogs

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

YEMEN WINS, 1-0, VIA LATE GOAL IN ASIAN QUALIFIER

AZKALS BOMB OUTBy Lance Agcaoili

 

THE Philippines’s dream of playing in the World Cup fell flat on the artificial turf of the Rizal Memorial Football Stadium before a big Wednesday night crowd that expected a breeze over a team that already bombed out of contention and is merely

seeking an inspiration of a victory. The Azkals could not get the rhythm they expected to wield against the war-torn Yemen side most of the way and lost, 0-1, to an 83rd-minute goal by substitute midfielder Ahmed Al-Sarori. That goal did not only pierced the hearts of the Azkals—who had the daunting task of sweeping their last three matches in the qualifiers—but also each and every one of the 6,478 fans—one of the biggest recorded for a football game at the historic stadium—who cheered the home team sore hoping for a win that would keep the country on track for Russia 2018. And no one was more disappointed than Head Coach Thomas Dooley, who felt Yemen was easy picking.  “Obviously, we were not happy with the result. We were talking before the game that we cannot lose the game, we have to win,” Dooley said. “It was difficult in the first half because we did not play the way we wanted. We stay too deep and we did not press.” Yemen was the first team to be eliminated in Group H of the Asian qualifiers after losing all its previous five matches, including a 0-2 shutout to the Azkals in Doha on June 17.  The loss sent the Azkals—who played without striker Phil Younghusband (two yellow cards) and ace goalie Neil Etheridge (leg injury)—crashing with a 2-1-3 (won-drawn-lost) record for seven points in the group still led by North Korea (4-1-1, 13 points). Compounding the Azkals’ woes was Uzbekistan, which advanced to the next round after demolishing North Korea, 3-1, at home at the Pakhtakor Stadium in Tashkent.The Uzbeks and North Koreans played toe-to-toe in the first half until substitute Alexander Geynrikh made it 2-1 for the

hosts in the 66th minute and Odil Ahmedov sealed the deal with a dagger 82-minute goal. The Uzbeks

improved to 4-0-1 for 12 points. Only the top team from the group and the four best runners-up across the eight-bracket field will enter the next round of the qualifiers.  With the setback, the Azkals have set their sights on the 2019 Asian Cup, but with a slim chance—the next best 24 teams from the preliminary stage of the joint qualifiers will compete in a separate competition for the remaining slots in Cup. The Philippines had major of possessions throughout the match but Yemen’s air-tight defense especially by goalie Mohammed Ebrahim Ali Ayash foiled the Azkals all-night long. The Filipinos had their best chances in the second half but joust couldn’t deliver. In the 57th minute, Manny Ott’s free kick found defender Jerry Lucena for a header but Ayash was there for the save. Ten minutes later, Martin Steuble’s attempt off a good setting from Kevin Ingreso went inside the Azkals’ box but the ball was timely deflected. Team Captain Stephan Schrock was awarded a long free kick in injury time but the Yemeni goalie didn’t budge.  The Azkals still have two assignments in the qualifiers—against Uzbekistan in an away match on March 24 and North Korea at home on March 29.

» AZKALS skipper Stephan Schrock protectsthe ball against Yemen’s Mudir Al-Radei. ALYSA SALEN

By Joel Orellana 

BOBBY RAY PARKS’S persistence to become the first Philippine-born Filipino to play in the National Basketball Association (NBA)

suddenly looked achievable. The former National University star made the final 10-man roster of NBA D-League team Texas Legends, and now, all Parks need to do is to work hard and impress NBA scouts.         The Legends made the announcement on Friday with Parks, the team’s 25th overall pick in the D-League draft, survived the final cut and will make his debut against the Austin Spurs on Saturday. Parks, son of the late former Philippine Basketball Association (PBA) many time Best

Import Bobby, joined Satnam Singh, the Dallas Mavericks’ second round pick in the last NBA draft, as well as Brandon Ashley, Thomas Bropleh, Shernon Collins, Tu Holloway, Allen Durham, Toure Moury, Justin Reynolds and Jamil Wilson on the Legends lineup. Parks surpassed Japeth Aguilar’s accomplishment when he also tried his luck in the NBA. The 6-foot-9 high-leaping forward of Barangay Ginebra San Miguel failed to make the final cut for the Santa Cruz Warriors in 2013. Former Los Angeles Lakers guard Nick van Exel will handle the Legends, the affiliate team of the Dallas Mavericks. Van Exel, a former Maverick himself, waived five players and put two on the reserve list to comply with the 10-man roster.

News of Parks making the Legends roster came after Kobe Paras officially signed a letter of intent to attend the University of California Los Angeles (UCLA) for the coming season of the US National College Athletic Association (NCAA). The 18-year-old Paras, son of two-time PBA Most Valuable Player Benjie Paras, was one of the three highly touted recruits of Bruins Head Coach Steve Alford. “We’re always looking for players who’ve grown up immersed in basketball, and Kobe definitely fits that mold,” Alford said in a statement. Like Parks, Paras is also dreaming of playing in the NBA and he has four years to prove that with the UCLA Bruins, the school with the most number of titles in the NCAA with 11.

MAHINDRA beat an erratic NLEX five, 103-93, to snap

its three-game losing streak in the Philippine

Basketball Association Philippine Cup on Friday at the PhilSports Arena in Pasig City. The Enforcers banked on their balanced attack, led by former Road Warriors Niño Canaleta and Aldrech Ramos, to book their first win and hand NLEX its second straight loss after a 2-0 start. Ramos and Canaleta, traded to Mahindra during the off-season, each had 14 points, while

Enforcers end skidwith rout of NLEX

LOOKING GOOD

LIPA GIRLS TRIUMPH

MEMBERS of Southern Luzon, headed by Most Valuable Player Alleiah Jan

Malaluan (2), Head Coach Regine Diego and Assistant Coach Raphael Guevara,

strike a championship pose.

SOUTHERN Luzon pounced on National Capital Region’s (NCR) meltdown in the fourth set to hack out a 23-25, 25-16, 18-25, 26-24, 15-11

victory and capture the Shakey’s Girls’ Volleyball League Season 13 national crown at the Cuneta Astrodome late Thursday. The Southern Luzon bets, represented by the De La Salle-Zobel Lipa mainstays, survived five match points as they racked up five hits in row to overhaul a 19-24 deficit in the fourth and complete their shut out of the Big City bets in that stretch by winning two more points to force the decider. With the momentum on their side, the La Salle spikers never let up in the fifth and went on to pound out the four-point win and snatch the crown from the reigning University Athletic Association of the Philippines juniors champions National University (NU) Lady Bullpups, whom they also nipped in three in the eliminations of the league sponsored by Shakey’s. Alleiah Jan Malaluan and Jamie Margaret Frago took charge in the fifth set with their power

hits then the rest backed them up with a gritty floor and net defense as Southern Luzon repeated over NCR to nail the coveted crown in the league sponsored by Shakey’s. Frago wound up with 14 hits, while Malaluan scored five attack points and went on to bag the Most Valuable Player honors in the league organized by Metro Sports headed by Freddie Infante and backed by Asics, Mikasa and My Phone. Southern Luzon also nipped NCR, represented by the NU squad, in three to sweep the Pool B eliminations then thwarted Southern Mindanao, 25-22, 25-23, in the semis to arrange a title face-off with NCR, which eased out last year’s finals tormentor Western Visayas, 25-22, 25-19, in their side of the Final Four. The victory also netted Southern Luzon a berth in the first Shakey’s GVL International Championship set next month and which will feature five foreign teams, according to Metro Sports’ and Tournament Director Johanz Buenvenida.

HOBE Bihon-Cars Unlimited stormed past Our Lady of Fatima University-Phoenix, 117-63, on Thursday night to preserve

its untarnished record in the Fifth DELeague Basketball Tournament at the Marikina Sports Center in Marikina City. Former Philippine Basketball Association player Ronnie Zagala scored 23 points for Hobe Bihon-Cars Unlimited and Rodriguez Ebundo added 22 points for the 2012 and 2013 champions who streaked to their third straight victory. Martin Gozon and Jerome Juanico finished with 13 points apiece for Phoenix, which rolled to its second straight loss. Far Eastern University-NRMF defeated Metro Pacific Toll Corp., 88-63, in the other game of the league supported by PSBank, Accel Sportswear, PCA -Marivalley, Angel’s Burger, Mckie’s Construction Equipment Sales and Rentals, Luyong Panciteria, Azucar Boulangerie and Patisserie, JAJ Quick Print Advertising, Mall Tile Experts Corporation, Jay Marcelo Tires, Polar Glass and Aluminum Supply and Mr. and Mrs. Dot Escalona. Leo Najorda topscored for FEU-NRMF with 16 points on top of five rebounds, while Brite Akhuete chipped in 14 points and 15 boards. The victory was the second straight for the Tamaraws, who trailed Hobe Bihon at second place in Group A of the tournament. Action resumes on Saturday with Macway Travel facing Sta. Lucia Land Inc. at 7 p.m. and Hobe Bihon-Cars Unlimited battling FEU-NRMF in a game of unbeaten squads at 8:30 p.m. Tickets are sold for P10. For game results, visit www.sports29.com.

Hobe 5 unscathedin DELeague meet

FAR Eastern University (FEU) goes for the twice-to-beat bonus in the semifinals anew, while defending champion National

University (NU) fights for survival as last season’s finalists clash on Saturday in Season 78 University Athletic Association of the Philippines (UAAP) men’s basketball action at the Mall of Asia Arena.          The Tamaraws (10-2) and Bulldogs (6-7) square off at 4 p.m. with FEU hoping to join University of Santo Tomas (UST) at the top 2 spots that will deny Ateneo de Manila a chance for a playoff for the twice-to-beat advantage in the Final Four.          The Blue Eagles (9-4) need beat University of the East (UE) in their 4 p.m. encounter and hope that FEU will lose its last two games to force a playoff for the No. 2 seed.          The Tamaraws are coming off a 76-85 loss to the Growling Tigers that snapped their nine-game winning run. But Head Coach Nash Racela and the Tamaraws are expected to rebound from that setback.          “I am hoping that my players could respond

positively [on loss to UST],” Racela said.“And the loss could be a blessing in disguise because we will be more focused in our last two games.”          The Bulldogs (6-7), on the other hand, will try secure at least a playoff for the No. 4 spot in the Final Four. A loss would put the Bulldogs on the tightrope for their title-retention bid—if De La Salle (6-7) beats FEU on Wednesday, NU gets the door.          The Growling Tigers already booked the semifinals incentive with a league-leading 11-3 win-loss record.Coming off a huge 73-62 win over archrival De La Salle on Sunday, Ateneo stayed in the race for the twice-to-beat edge although the Blue Eagles’ fate is not on their hands.          “We’re in a good position for that [incentive] but what’s important right now is that we’re giving ourselves a chance to catch up with the leaders,” Ateneo Head Coach Bo Perasol said. Standings: UST 11-3, FEU 10-2, Ateneo 9-4, NU 6-7, La Salle 6-7, UE 4-8, UP 3-10, Adamson 3-11. Joel Orellana

US NCAA standouts display wares

Petron vs Fotonin Lipa City duel

five more players made at least seven points for Enforcers Assistant Coach Chito Victolero. “There’s an extra motivation for them [Canaleta and Ramos], but they are already veterans and they know what to do,” said Victolero, who also drew 14 points from Kyle Pascual, 13 from LA Revilla and 11 from Mark Yee. “They are still working on their chemistry with the other players but they are doing fine,” he added. Mahindra’s victory spoiled the monster games of veteran Asia Taulava and Sean Anthony. Taulava had 31 points and nine rebounds, while Anthony added 19 markers, 13 boards and seven assists. No other NLEX player hit double figures in scoring. Taulava and Anthony led NLEX’s run in the third period, cutting the Enforcers’ double-digit lead to 59-64. But Mahindra ended the period with a 10-1 blast capped by Paulo Hubalde’s buzzer-beater banked shot to pad their lead to 74-60. The Enforcers’ bench joined the scoring fray, with Pascual and John Pinto contributing in the fourth period where they erected a 101-80 advantage with under two minutes remaining.

Joel Orellana

UNIVERSITY of the Philippines (UP) tries to check its skid and nail the third semifinal berth as it collides with unbeaten Army on Saturday,

while PLDT Home Ultera primes up for the Final Four with former US NCAA standouts against Kia Forte in the Shakey’s V-League Season 12-Reinforced Conference at The Arena in San Juan City. The Lady Maroons made quite an impression by hurdling their first two assignments, including a come-from-behind victory over the Navy Lady Sailors, but dropped their next two games to the Ultra Fast Hitters and Kia Forte, enabling the Lady Sailors and Kia Forte to stay in the fight for the last two semifinals slots.

But they need to beat an Army team out to complete its sweep of the single round elims of the season-ending conference of the league sponsored by Shakey’s and presented by PLDT Home Ultera. Game time is at 3 p.m., after the 12:45 p.m. clash between PLDT and Kia Forte, both to be shown live on GMA News TV Channel 11, according to the organizing Sports Vision. PLDT, which took the second semifinals berth with a 3-1 slate, parades former NCAA aces Sareea Freeman and Victoria Hurtt as it clashes with Kia Forte, at 1-3 in a must-win to salvage a playoff for the last semifinals slot.

PETRON clashes with Foton in a highly charged out-of-town duel that is expected to lure a big crowd in Lipa City in the Philippine Superliga

(PSL) Grand Prix women’s volleyball tournament at the De La Salle-Lipa Sentrum. The game is set at 1 p.m. before the battle between cellar-dwellers RC Cola-Air Force and Meralco at 3 p.m., in the interclub tournament presented by Asics and backed by Milo with Senoh, Mueller and Mikasa as technical partners and TV5 as official broadcaster. The Blaze Spikers are billed as the strongest team for having a solid roster built around Dindin Manabat, Aby Marano and Rachel Anne Daquis, not to mention the international experience they gained in the Asian Volleyball Confederation Asian Women’s Club Championship recently. At the moment, the Blaze Spikers are on a four-game winning streak for a second-running 6-2 won-lost record behind idle solo leader Philips Gold (7-2). Foton and Cignal are tied at third place with 6-3 records. Based on the league format, the No. 1 in the eliminations will face the fourth seed, while the second seed battles the third seed in the knockout semifinals next week, making the last two playing days of the elimination round highly crucial and exciting.  The winners in the semifinals will clash in a best-of-three titular showdown starting November 26. Lance Agcaoili

BOBBY RAY PARKS JR.’SNational Basketball

Association dream standson solid ground.

WARMING UPFOR RIOMichael Phelps pushes off at the start of the men’s 100-meter butterfly during the Arena Pro Swim Series on Thursday in Minneapolis. AP

SportsBusinessMirrorA8 | SAturdAy, November 14, 2015mirror_sports@yahoo.com.phsports@businessmirror.com.phEditor: Jun Lomibao

BOYCOTT RULED OUTBy James Ellingworth

The Associated Press

MOSCOW—With an Olympic boycott ruled out, Russia is planning to at least partially admit it has a doping problem.

Russian Sports Minister Vitaly Mutko told the Associated Press (AP) on Thursday that there will “not in any case” be a boycott of next year’s Olympics in Rio de Janeiro. A short time later in a separate interview, the acting president of the Russian track federation told the AP he is ready to own up to some of the charges leveled in the World Anti-Doping Agency (Wada) commission’s massive report on doping in the country. “We admit some things, we argue with some things, some are already fixed, it’s a variety,” said Vadim Zelichenok, declining to provide further details. “It’s not for the press.” The governing body of track and field is expected to rule on Friday on whether to suspend Russia from competition because of the doping scandal. If Russia is banned, the country’s track and field team could be excluded from next year’s Olympics. Monday’s damning report by the Wada commission recommended that the Russian track federation be suspended, saying that its athletes and officials were involved in “extensive” use of performance-enhancing drugs, obstructed doping tests and helped to cover up drug use. The report said Zelichenok “refused to cooperate” with investigators. Even if Russia’s track and field team is banned, Mutko told the AP that the country has no intention of boycotting the Olympics. “Russia is against a boycott. Russia is against political interference in sport,” Mutko said. “Understand that Russia is a dependable partner of the international Olympic movement.” Mutko also appealed for Russia’s track team to be allowed to compete, arguing that a blanket ban would unfairly punish clean athletes. “It will be painful for those athletes with clean consciences who could compete, that’s the first thing. And the second thing is that it goes against the spirit of the Wada code,” Mutko said. “The commission itself writes about it in its report. It’s about protecting the athletes with clean consciences.” During the Cold War, the United States and allies boycotted the 1980 Moscow Olympics in protest at the Soviet Union. Four years later, there was a Soviet-led boycott of the Olympics in Los Angeles. International Olympic Committee President Thomas Bach, meanwhile, met with Russian Olympic Committee head Alexander Zhukov and other officials in Lausanne, Switzerland, amid signs that both sides were working toward an agreement that could avoid a ban. Bach has said sanctions are up to the International Association of Athletics Federations (IAAF) and Wada, but also

stressed that the IOC will be ready to strip any medals from Olympic athletes mentioned in the report who are found guilty of doping. On Wednesday Russian President Vladimir Putin insisted clean athletes should be allowed to compete and asked Russian sports officials to carry out an internal investigation into the allegations made in the doping report. Mutko said Russia would provide constant updates about its investigation. “Practically every day, at the end of the day, we release some kind of information message about the steps we’re taking and we will continue to do that,” Mutko said. “We’re prepared to inform international society about the steps we’re taking, the investigation, the decisions.” In one move, the Russian Olympic Committee asked former Russian track federation president Valentin Balakhnichev to resign from its executive board. The Wada commission’s report said Balakhnichev was “ultimately responsible” for doping and cover-ups at the federation during his tenure and linked him to instances in which money was allegedly extorted from athletes. The Russian government has consistently slammed the report for what it says is a lack of evidence. Mutko said there was an overreliance on confidential sources and condemned the inclusion of material from undercover recordings made by whistle-blowers, which he said violated the rights of those accused of doping. The scandal also entered the arena of international diplomacy as the Russian Foreign Ministry issued a stinging critique of the report’s authors. “The position of the special commission on doping with regards to Russian athletes looks extremely biased, politicized,” ministry spokesman Maria Zakharova said in her weekly briefing, adding that sources cited in the report seem “extremely doubtful.” In southern Black Sea resort of Sochi, the host city of last year’s Winter Olympics, some Russian track and field athletes trained in the sun on Thursday. Many remained upbeat about their chances of competing in the Olympics while questioning why other countries were not being investigated alongside Russia. “It happens all around the world. Why are these measures taken only for the Russian team? I don’t understand this,” said Maxim Sidorov, a shot putter who competed at the 2012 Olympics. “Not only we, if it’s proved, are using doping. Other countries do it, as well. Why aren’t they disqualified?” As former European 400-meter relay champion Ksenia Aksyonova trained, her coach said that banning Russia would be “a disaster for athletes.” “They devoted their life to this and because of broad political motives probably the whole team can be disqualified,” Rif Babikov said. “We have seen this—in 1984 we boycotted the Olympics in Los Angeles because of politics, in 1980 western countries boycotted Moscow. Nothing good came out of this.”

BLATTER OUTOF HOSPITALZURICH—Sepp Blatter’s adviser says the suspended Fifa

president has left a Swiss hospital. The 79-year-old Blatter spent about a week having his

health assessed, about a month after he was suspended for 90 days by the Fifa ethics committee. Adviser Klaus Stoehlker tells the Associated Press that Blatter was discharged on Wednesday. He says Blatter’s daughter Corinne has taken him to his hometown of Visp to relax before he returns to his private office in Zurich next week. After speaking to Blatter on Thursday, Stoehlker says “he’s very motivated to fight against his suspension.” Blatter is awaiting the full verdict from the Fifa ethics case into a payment to Michel Platini he authorized in 2011. The UEFA president has also been suspended. AP

Brazil Formula Oneinterest fading

AFTER RUSSIA, KENYA’S NEXT

The governing body of track and field is expected to rule on

Friday on whether to suspend Russia from

competition because of the doping scandal.

If Russia is banned, the

country’s track and

field team could be

excluded from next year’s Olympics.

RITA JEPTOO kisses the trophy after winning the women’s division of the 118th Boston Marathon in April last year. AP

NAIROBI, Kenya—As the world focuses on Russia and its doping scandal, running great Kip Keino is preparing for the spotlight to turn to Kenya.

Keino, a two-time Olympic champion, is now the head of the Kenyan Olympic committee. He is worried that his country could be facing a blanket ban from competition if it doesn’t clean up its act. “Things are still very bad,” Keino said of the country’s anti-doping efforts. “We must take action now or we shall not be welcome in international games.” Kenya topped the medals table at this year’s world championships ahead of Jamaica and the United States. But the East African nation, still also dominant in marathons, does not have an effective antidoping program three years after German broadcaster ARD revealed banned substances were easily available and few doping tests were carried out. Two Kenyans also failed targeted doping tests at the world championships in Beijing in August, the latest of nearly 40 Kenyans to have tested positive for banned substances since 2012. Keino recently returned from a meeting with the World Anti-Doping Agency (Wada) and warned that his country—like the threat against Russia—could be thrown out of competitions because of doping among its world-class runners. Wada Spokesman Ben Nichols said in an e-mail statement to

the Associated Press (AP) that reports of a ban were “not accurate,” but that “there is still a lot of work required to bring their antidoping program up to par.” Wada specifically has concerns with delays from the Kenyan government in providing funding for a new national antidoping body, which is still not functioning. Wada has been calling for an effective antidoping agency in Kenya since late 2012. A doping laboratory supposed to be operational by now in Nairobi has not opened. Officials from the Anti-Doping Agency of Kenya, which doesn’t yet have offices, didn’t respond to requests for comment. Its head is a former government official. There are also allegations that track officials have ignored the doping problem, or worse are complicit in concealing it, aware that track and field is the country’s leading source of national pride and a big generator of money. “In my opinion, doping is still rampant in Kenya because officials who are running the sport are too old and too much involved in the practice,” three-time world steeplechase champion Moses Kiptanui told the AP on Thursday. “Nowadays, you come to the sport clean but within one year you are converted into cheating.” Dick Pound, who headed up the Wada-commissioned report on doping in Russia, said Kenya also “has a real problem.” Russia is not the only country “facing the problem of orchestrated doping,”

Wada’s investigators said in their report. On Thursday Athletics Kenya Chief Executive Isaac Mwangi denied allegations of systematic doping and said he had no fears of a ban for Kenya. The allegations are “not the same” as Russia, he said. “We understand why there is great focus on Kenya. We are top of the world and anyone would like to bring scrutiny,” Mwangi said. “If anyone is to allege systematic doping in the country, we are ready to cooperate and collaborate with them to give them all the information they want. “From where we sit, there is no systematic doping in Kenya. I’m not even sure our athletes and coaches have capacity to cover up such things.” Yet, it took Kenyan authorities two years from the first allegations to publicly recognize they had a problem at all. That came when Rita Jeptoo, a leading marathon runner, tested positive for the blood-booster EPO last year and was subsequently banned for two years. Before her ban, Jeptoo was about to be crowned world marathon majors champion. A year later, Athletics Kenya says it is still investigating who provided Jeptoo with the EPO. Two days before the explosive report on Russia was released, Kenya “acknowledged the seriousness” of its doping problem in a joint statement from the athletics federation, the antidoping agency and the national Olympic committee. AP

SãO PAULO—When Lewis Hamilton won the United States Grand Prix last month to secure his third Formula One title, most Brazilians heard about it for only 15

seconds during a soccer match on Brazil’s leading broadcaster. Globo shunned the race on its cable channel, reflecting F1’s sinking popularity in a country that was once a hotbed for the series. The Brazilian GP on Sunday puts the decline into focus. Brazil no longer has an F1 star to match the likes of three-time champions Ayrton Senna or Nelson Piquet. Senna was Brazil’s last champion, 24 years ago. Its best active driver is Felipe Massa, who hasn’t won a race in seven years. And no potential champions appear to be in the pipeline. F1 commercial chief Bernie Ecclestone recognizes the problem. He has pointed out that Mexico, which held its grand prix two weeks ago—its first in 23 years—could become a more lucrative market than Brazil in Latin America. And he has pressed Globo to step up its coverage. Speaking to Brazilian reporters, Massa took aim at Globo for the fading interest. “What Globo covers is what Brazilians see the most,” he said. “It is the No. 1 broadcaster here, and the more help we have from them, the better. With less coverage on TV it will be difficult for us to make their ratings go up again.” He compared the situation in Brazil with the interest being shown in Mexico, where the sport is on the rise. “We have to see what Mexico is doing,” he said. “They welcomed Formula One regardless of the little chance of their home driver winning the race. Formula One has to be treated as one of the most important sports.” Only die-hard fans are expected to go to Interlagos this weekend, after the championship was settled two races ago in Texas. “The title race is decided, Brazil’s economy is in crisis, Brazilian drivers don’t stand a chance of winning—and Formula One is less and less on TV,” Erich Beting, owner of sports marketing firm Maquina do Esporte, told the Associated Press. Another measure of Brazil’s falling interest, and a key one for sponsors, comes from private ratings company Ibope, which is used by local TV networks. In 2008, when Hamilton and Massa were fighting for the season title, Globo scored 33 points on Ibope’s scale for the Brazilian GP. This year’s race is expected to be half that—or less. Most local football matches draw higher ratings, and a match between big teams like Rio’s Flamengo and São Paulo’s Corinthians rarely drops below 20. AP