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Beijing seen recalibrating Belt and Road initiative

BEIJING — China is expected to promote a recalibrated version of its Belt and Road initiative at a summit of heads of state this week in Beijing, seeking to allay criticism that its flagship infrastructure policy fuels indebtedness and lacks transparency.

The policy championed by Chinese President Xi Jinping has become mired in controversy, with some partner nations bemoaning the high cost of projects.

Western governments have tended to view it as a means to spread Chinese influence abroad, saddling poor countries with unsustainable debt.

While most of the initiative’s projects are ongoing, some have been caught up by changes in government in countries like Malaysia and the Maldives.

Projects that have been shelved for financial reasons include a power plant in Pakistan and an airport in Sierra Leone, and Beijing has in recent months had to rebuff critics by saying that not one country has been burdened with so-called “debt traps.”

Mr. Xi launched the Belt and Road initiative in 2013, and according to data from Refinitiv, the total value of projects in the scheme is at $3.67 trillion, spanning countries in Asia, Europe, Africa, Oceania, and South America.

A draft communique seen by Reuters said that 37 world leaders attending the April 25-27 summit will agree to project financing that respects global debt goals and promotes green growth.

Visiting leaders will be headlined by Russia’s Vladimir Putin, as well as Prime Minister Imran Khan of Pakistan, a close China ally and among the biggest recipients of Belt and Road investment, and Prime Minister Giuseppe Conte of Italy, which recently became the first G7 country to sign on to the initiative.

The United States, which has not joined the Belt and Road, is expected to send only a lower-level delegation, and nobody from Washington.

Some Belt and Road projects “are going through a period of rationalization and evaluation,” said Li Lifan, deputy director general of the Center for Belt and Road Initiative Studies at the government-backed Shanghai Academy of Social Sciences.

The summit “will be a time for reflection and to talk about the hopes for the future,” he told Reuters.

RHETORIC SHIFT
Industry insiders and diplomats say that there has been a shift in the way Beijing has been pushing Belt and Road overseas since the first such summit two years ago.

“The political part is handled by the foreign ministry now, not the National Development and Reform Commission (NDRC),” said a senior Western diplomat in China, referring to the country’s state planner which drafted the initiative’s official outline in 2015. That shift occurred last year, he said.

Other analysts said there was a noticeable change in China’s overseas efforts to market the policy in the second half of 2018.

In an unusual move, at least 10 of China’s ambassadors and diplomats in countries such as Mexico and Kenya published letters in local media outlets to defend the initiative.

Wu Ken, China’s new ambassador in Germany, acknowledged in his first speech on the job that there were “deep doubts” about Belt and Road.

“I hope relevant people can overcome the ‘allergies’ they have towards the Belt and Road as soon as possible so China and Germany can cooperate to jointly tap the benefits from it,” he said earlier this month.

German Economy Minister Peter Altmaier, a confidant of Chancellor Angela Merkel, will attend the summit.

William Klein, minister counsellor for political affairs at the US embassy in Beijing, told a forum earlier this month that the United States continued to have concerns about the Belt and Road.

“These concerns, for example, are opaque financing practices, poor governance and a failure to adhere to internationally accepted norms and standards.”

Andrew Davenport, chief operating officer at Washington-based consultancy RWR Advisory, which has been tracking Belt and Road investment, said China has become more reactive in its positioning of the initiative since the last forum.

“It’s relatively clear that the Belt and Road narrative being put forward by Beijing over the past several months is designed to counter the criticism and push back,” he said.

SUBDUED
While the number of foreign leaders due at the summit is up from 29 last time, the run-up to the event has been subdued compared with the 2017 meeting.

Two years ago, the weeks before the summit’s opening day were marked by a series of music and explanatory videos published by state media to advertise the Belt and Road initiative while the government announced the dates publicly roughly a month before.

There has been no such media blitz this year besides a handful of documentaries and advertisements, and Beijing only confirmed the dates last Friday, less than a week before the opening.

In events held to talk about Belt and Road before the summit, Chinese officials stressed that the initiative remained a “win-win” and an attractive opportunity for countries willing to become partners.

On Monday, NDRC official Xiao Weiming told a media briefing that Chinese companies had invested $90 billion in countries benefiting from Belt and Road and handed out between $200 billion-300 billion worth of loans between 2013 and 2018.

“The Belt and Road initiative is an open and inclusive idea,” he said. “As long as any country is willing to work with China, we will all have gardens along the Belt and Road.” — Reuters

SMIC eyes bonds, loans to refinance debt by Q3

By Arra B. Francia, Senior Reporter

SM Investments Corp. (SMIC) is looking at conducting a fundraising activity towards the third quarter of the year to refinance maturing loans.

The Sy-led conglomerate said it is mulling the issuance of bonds or securing loans, depending on how the company’s operations will fare in the coming months.

“We have a bond maturing in October, almost $500 million. (So we will raise) for refinancing,” SMIC Senior Vice-President Marcelo C. Fernando, Jr. told reporters after the company’s annual shareholders’ meeting at SMX Convention Center in Pasay City Wednesday.

“A small portion of the maturity will be refinanced, maybe less than half.”

Mr. Fernando said SMIC still has P30 billion that can be issued out of its P50-billion debt securities program. However, the company may fail to exhaust this as the registration will mature in November.

SMIC has allocated P98 billion for its capital expenditures this year, bulk of which will go to its property unit, SM Prime Holdings, Inc., at P80 billion.

SM Prime will build four new malls in the country this year, namely SM Center Dagupan, SM City Olongapo Central, SM City Butuan, and SM Mindpro Citimall. It has also committed to build its eighth mall in China in Yangzhou, while expanding SM Xiamen.

Its residential group has plans to launch 19,000 to 25,000 units located both in Metro Manila and in the provinces this year.

Meanwhile, its banking business composed of BDO Unibank, Inc. and China Banking Corp., cornered P9-12 billion of this year’s capex. This will be used for branch expansions and IT enhancements.

For SM Retail, Inc., expansion for new stores and renovation of existing stores are seen to cost P5 billion in 2019.

“Our priorities in 2019 are no different from the past years and we will continue to challenge ourselves so we can be assured of continued success. Overall, we ended the year with a strong balance sheet and we are confident of our growth prospects for the business,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a speech during the company’s annual shareholders’ meeting.

SMIC’s net income grew by 13% to P37.1 billion in 2018, following a 13% uptick in consolidated revenues to P449.8 billion.

Asked for an outlook on the company’s business this year, SMIC Senior Vice-President for Finance and Corporate Information Officer Franklin C. Gomez said he is cautiously optimistic for the year.

“Barring any significant calamities, we’re cautiously optimistic because the country is growing strong. Our business is very much linked to the country’s gross domestic product cause it covers consumer, property, banking,” Mr. Gomez told reporters.

Shares in SMIC soared 2.15% or P20 to close at P950 each at the stock exchange on Wednesday.

Eton Properties net income surges 38% in 2018

ETON Properties Philippines, Inc. (EPPI) reported a 38% increase in its earnings backed by solid real estate sales and its robust leasing business.

In a statement on Wednesday, the real estate arm of LT Group, Inc. said its net income after tax reached P479 million in 2018 from P348 million in the year prior.

This was supported by a 42% growth in gross revenue to P3.3 billion last year from P2.3 billion in 2017. Real estate revenues soared 102% to P1.7 billion, fueled by sales of its residential projects and higher prices of its ready-for-occupancy units. Among these projects are 8 Adriatico in Manila, 68 Roces in Quezon City, The Manors at North Belton Communities in Caloocan City, and West Wing Residences at Eton City in Sta. Rosa, Laguna.

Rental income increased by 8% to P1.5 billion as business process outsourcing (BPO) companies renewed their leasing agreements at higher rental rates. Income from serviced apartments and property management services also boosted revenues.

“Evidently, the global companies that have made our offices the site of their Philippine operations have seen how the strategic location of Eton Properties’ developments, combined with the well-thought-out facilities in each of these buildings, have contributed to their operational productivity,” EPPI President Lucio K. Tan, Jr. said in a statement.

The company’s consolidated assets stood at P31.4 billion, which was 6% higher than the P29.7 billion recorded in 2017.

Mr. Tan expects EPPI to keep “an optimal portfolio mix that balances recurring income and real estate sales.”

Last year, the property company completed the construction of Eton Square Ortigas in San Juan City. It also began work on Cyberpod Five in Eton Centris located in Quezon City, Eton WestEnd Square in Makati City, and Eton City Square located in Sta. Rosa, Laguna.

EPPI said it is planning to develop new projects in its mixed-use communities in Sta. Rosa, Laguna, Makati City and Quezon City. — Vincent Mariel P. Galang

LHIC expands Kabayan Hotel as it hopes to attract more guests

By Vincent Mariel P. Galang, Reporter

LEGEND Hotel International Corp. (LHIC) is targeting to widen its market for the Kabayan Hotel brand, with the expansion of its hotel in Pasay City.

Located along EDSA, Kabayan Hotel mainly caters to overseas Filipino workers and travelers from the provinces.

“Right now it has about 200-plus rooms. In EDSA, we are expanding it with a 10-storey hotel, so that’s another 300 rooms, and we expect that to open in January of 2020,” Celine Marie L. King, chief operating officer of LHIC, told reporters on Tuesday.

She noted the current two buildings of the hotel have around 280 rooms and have an average occupancy of 84%. With the addition of another building, she said the company hopes to attract more guests.

“The market is growing. There are a lot of competitors especially in the Bay Area because that’s where we are, but I think because we are truly Filipino they can associate that it’s Kabayan, it’s local. We will continue to grow that market. We know them, we understand them and their needs,” Ms. King said.

Kabayan Hotel Pasay is near the so-called Bay Area, where several hotels are located such as Hotel 101 Manila and Conrad Manila.

With the addition of the new building, the company is also looking into hiring 30 to 40 employees.

However, LHIC is not bringing the Kabayan Hotel brand to other areas for now, as it is focused on expanding its hotel in Puerto Princesa — The Legend Palawan (TLP).

“We’re just fixated in expanding the Legend Hotel Palawan, but yes we have talked to a lot of people who would want the Kabayan brand even overseas… but because of our love for Palawan, we would want to invest there first,” Ms. King said.

The company recently finished renovating about 90 rooms of TLP, and is considering to adding more rooms, depending on this year’s demand.

LHIC is a Filipino company owned by Wyden King. Aside from Kabayan Hotel and TLP, the company also owns The Legend Villas in Mandaluyong City, The Mabuhay Manor in Pasay City, Legendary Tours which offers travel packages in Palawan, Pinoy Pamilya Hotel in Pasay City, and My Place Residence Hall in Loyola Heights, Quezon City.

Singapore creates its own gin

AS a former part of the British Empire, it’s not surprising to find influences of Britannia in Singapore. One such example is gin, Britain’s favored libation from the 17th century onwards, finding a home in Singapore’s favorite cocktail, the Singapore Sling (made with a base of gin, coupled with cherry liqueur and pineapple juice, among others).

“I felt that was such a shame, because as a local cocktail, we should actually have our own local spirits to be used,” said Jamie Koh, founder of Brass Lion Distillery.

Brass Lion Distillery, which opened last year, is Singapore’s first standalone micro-distillery, and its first product is gin. Ms. Koh was in the country recently to promote her product in partnership with the Singapore Tourism Board.

The entire process to open the distillery took several years. Ms. Koh is a restaurateur and a bar owner, but her observation on the dearth of local spirits urged her to make her gins. She studied distilling in two states in the US, and even found herself in Germany’s Black Forest, getting tips from makers of the local schnapps.

Another challenge she found was finding all the necessary licensing to open the distillery right smack in the city. In an interview with BusinessWorld, she said she didn’t want the distillery to be a purely manufacturing facility, but wanted it to be an experience: for example, in Brass Lion, there are mini-stills so groups can make their own bottles with the botanicals on hand. “It’s never been done before,” she said about opening a distillery in Singapore. “With regards to the licensing, people had no idea what a distillery was.” In rule-crazy and obedient Singapore, having the correct procedure to do everything was a must. “We had to kind of rewrite the rule book, and made up the rules together with them.”

Framed by two skyscrapers, the Brass Lion boasts of an herb garden, a bar, tasting rooms, and a retail shop.

The ingredients used in the gins are a reflection of all the cultures that have made Singapore their melting pot: Indian spices, Chinese medicinal herbs, and tropical fruits have all been mixed together with a British-influenced gin base to create a potion that reflects the country’s history and culture. According to Ms. Koh, all the botanicals, numbering about 22, have been sourced from a five-kilometer radius. “Gin allows us to showcase the variety of botanicals that we have in the region.”

BusinessWorld got a taste of three of their products: Singapore Dry, Butterfly Pea, and Pahit Pink. Singapore Dry, its basic blend, has a crystal-sharp flavor, a refined scent like perfume, and a bite on the tongue, ending with a swallow that feels like a gasp. Butterfly Pea uses the blue-tinted flowers, resulting in an ultramarine gin that turns purple or pink depending on how much tonic water you use. It has a refreshing scent of lavender, consistent with its taste. Pahit Pink, meanwhile, an almost-fiery red, is made with a local herb used in folk medicine. It’s no surprise then that it tastes a bit medicinal, and is best splashed over ice.

Ms. Koh has different ways to extract the flavor from botanicals: from maceration to using a steam basket. Each ingredient is treated differently, according to its anatomy. “Even with the best ingredients, if you don’t distill it the right way, it also affects [the taste].” The handmade quality of the gin is reflective of changing tastes: gin was a favored drink of those more advanced in age, or those looking for a quick stupor — it was once called Mother’s Ruin in the UK. “I think now, people are getting more discerning and they really want more interesting products.” — Joseph L. Garcia

Facebook to train 1M Filipinos on ‘positive and safe’ online culture

By Zsarlene B. Chua
Reporter

SOCIAL MEDIA giant Facebook has brought to the Philippines a localized version of its global literacy program We Think Digital, aiming to conduct online and in-person training sessions for a million Filipino netizens by end-2020 to “develop skills that enable Filipinos to create a positive and safe culture online.”

“Digital Tayo is our effort to localize We Think Digital to ensure that it is in the context of the Philippine digital landscape,” Claire G. Amador, public policy head for the Philippines at Facebook, said in her speech during the program’s launch on April 23 at the Crowne Plaza Galleria Hotel in Quezon City.

We Think Digital was first launched in Singapore in March, followed by Argentina, and is scheduled to be rolled out in other Asia Pacific countries including Thailand, Indonesia, Vietnam and Taiwan within the year.

“We also plan to bring this program beyond Asia Pacific to Mexico [among other countries],” Clair Deevy, Facebook’s Director of Community Affairs for the APAC Region noted in a March 4 post in the company’s newsroom.

The program initially aimed to reach a million citizens across worldwide but Ms. Deevy said during the April 23 event that Filipinos are so connected on social media that they decided to bump the goal to reach one million Filipinos by 2020.

“That means we can double our goal,” Ms. Deevy said, adding that the Philippines will be the program’s biggest market.

According to the 2019 Global Digital Report by We Are Social, Filipinos spend ten hours online every day on average. They are also the heaviest users of social media, spending four hours and 12 minutes daily compared to the worldwide average of two hours and 16 minutes.

“This is a country which is number one for Facebook because of how much time people spend on Facebook,” Simon Milner, Vice President for Public Policy APAC, said during his speech closing the event.

The Digital Tayo program partnered with the Department of Education (DepEd), the Department of Information and Communications Technology (DICT), the Overseas Workers Welfare Administration (OWWA), and other civil society partners.

Each partner will focus on a specific target market and will teach the said markets using materials provided by the program.

Results of the program will be measured via pre- and post-tests.

OWWA piloted the program in July last year focusing on Overseas Filipino Workers (OFWs).

The program includes four modules said to be “designed to equip people with skills, including the ability to think critically about what they see online, how to communicate respectfully and engage in digital discourse,” according to a press release.

“There’s actually many audiences in the Philippines…[who do] not having critical thinking skills, not understanding what they’re reading online,” Ms. Deevy said in a press conference after the event.

She added that while there’s no one solution to the problems relating to issues in social media usage, she believes “education is a long-term solution…in creating responsible digital citizens.”

Topics include privacy, safety, security, digital discourse and digital footprint.

Each module will take about 30 to 45 minutes to go through and made “as simple and as fun for people,” said Ms. Deevy.

In a 2019 YouGov survey commissioned by Facebook, 58% of Filipino respondents said they were willing to listen and try to understand other people’s viewpoints in face-to-face conversations but only 37% said they’ll do the same in online arguments.

The study also showed 93% of respondents said they verify articles they come across.

Responding to hate speech, the same study showed 40% of respondents said they ignored it while 28% reported said speech to social networks.

“The numbers show us that we are very much engaged in the internet. They also show us that there’s a lot that needs to be done — there’s space to keep developing empathy…because in the end, who we are online is who we are offline,” Ms. Amador said.

The Digital Tayo materials and other program information can be accessed via digitaltayo.fb.com.

Sudan suspends contract with ICTSI

CAIRO — Sudan’s military rulers on Tuesday suspended a contract with Philippine port operator International Container Terminal Services, Inc. (ICTSI ) pending its cancellation, the country’s Transitional Military Council (TMC) said in a statement.

Workers at Port Sudan’s southern container terminal went on strike in February to protest against a 20-year concession signed in January for an ICTSI subsidiary to operate, manage and develop the South Port Container Terminal at Port Sudan.

“The TMC … issued a presidential decree to suspend the contracts of the Filipino company working at Port Sudan’s southern port until legal measures are completed to cancel the contract,” Tuesday’s statement said without elaborating.

Shares in ICTSI dropped by 4.78% or P6.10 to close at P121.40 each on Wednesday. — Reuters

Check Point launches new cloud security product

CHECK POINT Software Technologies Ltd. recently launched its newest addition to its product line CloudGuard, which features an agentless solution.

CloudGuard Dome9 is the latest addition to the company’s CloudGuard line, a line of products focused on protecting cloud systems from more complex attacks.

With CloudGuard Dome9, when a firm transitions to a public cloud, it can be used to visualize and assess the security state of a company, detect misconfigurations, implement the best security practices, and protect the company from data theft and data loss. This system is already used by Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

Check Point is an Israeli multinational software provider which combines hardware and software products for informational technology security. Last year, it acquired Dome9, a Tel Aviv-based start-up focusing on cloud infrastructure security.

“This is an agentless solution. When we first started out, we thought, hey, let’s make it agent, and that was fine when there were only four different instances we needed to worry about. But now it has grown to 300 and swelling to many more to try to keep an agent to accommodate. It’s falling,” Grant Asplund, cloud evangelist of Check Point, said during a recent media briefing held in Makati City.

“We went back and thought we need to rebuild this solution that is agentless,” he added.

Compliance is also a major aspect that CloudGuard Dome9 keeps an eye on. Since this is a continuous interrogation of whether your company is compliant, there should be a system that continuously checks your system for any diversion, the official said. The solution is able to provide a list, and statistics of all activities and problems, among others.

“What’s more is we provide with what we call a playground, so you can go and create your rule, go to the playground and run that rule, and make sure there are no errors and then deploy it in your environment,” Mr. Grant added. “You don’t have to have a developer. This is something that just regular people can do.”

“We are confident that Check Point’s cloud security solutions, with its unified approach to managing complex and multi-vendor cloud implementations, is the panacea to secure infrastructure for organizations,” Evan Dumas, regional director for Southeast Asia of Check Point, said in a statement. — Vincent Mariel P. Galang

Lion City taps into the nightlife

HOME to five of the World’s 50 Best Bars and 15 of Asia’s Best Bars in 2018, and with a vibrant calendar of top music acts and festivals, it’s no surprise that the Lion City has gained recognition as one of the region’s entertainment hubs.

Over the years, Singapore has elevated its nightlife culture unto an entirely different plane — through internationally acclaimed bars like Manhattan Bar and Atlas, driven by passionate drink makers and creative innovators.

Now, the Singapore Tourism Board (STB) is giving Filipino drink enthusiasts — “Pinoy Socialisers” (as the STB terms them) — the chance to sip and savor the Singaporean nightlife. In partnership with Drink Manila, STB is set to bring Filipino cocktail enthusiasts to the Singapore Cocktail Festival (SGCF) 2019, the biggest cocktail showcase and celebration in Southeast Asia, gathering drink makers and lovers from all over the world. The winner will get a three-day, two-night trip to Singapore for two and access to the SGCF.

Now on its fifth edition, the SGCF is set to have its largest program line-up so far, and will take over the Lion City with bar pop-ups, spirit tastings, celebrity bartenders, competitions, masterclasses, and much more. Aside from the SGCF, the winners will also have a taste of Singaporean flavors with visits to home-grown Brass Lion Gin Distillery and Tiger Beer Brewery.

The online contest will run from now until April 30. Interested participants should visit the Drink Manila and Visit Singapore Instagram and Facebook pages to learn about the official contest.

BEYOND SINGAPORE SLING
An event was held at Run Rabbit Run in Makati City to promote a new drink that celebrates 50 years of friendship between Singapore and the Philippines. Run Rabbit Run, appropriately, is a sister bar of the popular Bitters & Love in Singapore.

The bar unveiled The Nonya Confession, a special cocktail crafted with locally sourced ingredients from the two countries, including Singapore’s Brass Lion Gin and the Philippines’ favorite citrus, dalandan.

The Nonya Confession combines elements and draws inspiration from the two cities — one from Singapore’s childhood dessert, ondehondeh, and the other from the Philippine’s refreshing dalandan.

Shaken with Brass Lion Gin, blueberry jam, Cointreau, dalandan, homemade Pandan+Gula Melaka Syrup, and Angostura Bitters, the delicious craft cocktail is then garnished with coconut, pandan, and Gula Melaka foam. The cocktail will be available exclusively at Run Rabbit Run until April 30.

How richest family in Thailand got richer by helping China

CHIA EK CHOR fled his typhoon-ravaged village in southern China and started a new life in Thailand selling vegetable seeds with his brother in 1921. Almost a century later, with the largest family fortune in the country, his descendants are becoming Chinese President Xi Jinping’s key economic allies.

Mr. Chia’s son Dhanin Chearavanont is senior chairman of Charoen Pokphand Group Co., a vast conglomerate that is the world’s biggest producer of animal feed, shrimp as well as a top telecom firm in Thailand. It is at the center of an ambitious plan to turn Thailand’s eastern seaboard into a tech hub with bullet trains, 5G networks and smart car factories.

The so-called Eastern Economic Corridor is the flagship program of Thailand’s military regime, a bid to leverage Japanese investment and Chinese tech giants like Alibaba Group Holding Ltd. and Huawei Technologies Co. to revive an economy that grew 4.1%last year, the slowest rate in emerging Southeast Asia. But a messy March 24 general election means that projects could come under greater scrutiny as critics accuse authorities of dispossessing local farmers to make way for Chinese investors.

“Locals would be downgraded to second-class citizens,” said Somnuck Jongmeewasin, a lecturer at Silpakorn University’s International College, who studies the EEC. “A colonial era is emerging in the EEC area through Thai-Chinese investment policies.”

Mr. Xi’s signature Belt and Road Initiative has come under fire in countries including Sri Lanka and Malaysia for infrastructure projects that were seen as providing little benefit for the host nations, while saddling them with heavy debts. But the military junta that seized power in Thailand in a 2014 coup has embraced the alliance, promising a 1.7-trillion-baht ($53-billion) investment to develop three coastal provinces close to the capital — Chachoengsao, Chonburi and Rayong.

They are now among the fastest-growing regions in the country, with manufacturing eclipsing tourism from resort towns like Pattaya, famous for its sun- and sleaze-seeking crowds. Roads that ran through fields of rice, coconuts and mangoes are packed with cargo trucks and farms are giving way to industry — chemical plants, a Toyota factory. Oil rigs sit offshore Thailand’s biggest port Laem Chabang. Makeshift stands beneath roadside trees sell palm sugar, sticky coconut rice and sometimes skewers of roasted field mice to the growing numbers of inhabitants.

CP Group is a main conduit for the Chinese investment in the region. A CP-led consortium including China Railway Construction Corp. was the lowest bidder for a 225-billion-baht contract to build a 200-kilometer (124-mile) rail network linking Bangkok’s two international airports and another near Pattaya with an industrial zone on the eastern coast. The group is also bidding on an airport zone.

But a change of government could lead to greater scrutiny of EEC deals. With no outright majority in the March election, seven parties opposed to the military are trying to form a coalition government. Meanwhile, Prime Minister Prayuth Chan-Ocha’s military backed party has explored a coalition with the Democrats, which was headed by royalist former premier Abhisit Vejjajiva until he stepped down last month after poor electoral showing. His father was a CP Foods director for more than 15 years. With no clear majority, it could be weeks or months before a new government is formed.

“The military government will continue to exercise full governmental powers,” said Harrison Cheng, an analyst for Control Risks. “The picture gets a lot more complicated once a new government is in power, regardless of which coalition takes power.”

The opposition has vowed to put up a fight, tired of policies that promote monopolies in the $455-billion economy, said Bhokin Bhalakula, a former adviser to Yingluck Shinawatra, who was ousted as prime minister about five years ago. Bhokin favors digging a canal across Thailand’s narrow isthmus in the south as an alternative growth model to the EEC. The EEC is linked to the military government’s 20-year national strategy, which is supposed to be binding on future administrations, potentially setting up flash-points with elected politicians that wish to adopt different priorities.

Yesterday, Thailand’s Office of the Ombudsman said it accepted a petition seeking a review by a court on whether the election should be annulled.

“They think that bringing giants in will make the economy better, but the little guys at the grassroots aren’t benefiting,” said Bhokin. “It’s just the wealthy who are benefiting.”

While Japanese investors such as Hitachi Ltd. led early bets on the EEC, CP’s Chinese connections are helping draw technology investment, said Kanit Sangsubhan, secretary-general of the EEC Office. China’s investment in Thailand has surged to become the third biggest in approved foreign investment in 2018 after Japan and Singapore.

“The next wave will be focused on high technology, which China is strong in,” Kanit said. He said environmental assessments on land use and a tourism plan aim to minimize the impact on local farmers.

CP’s ties to the EEC range from automotive — it announced a new car plant in 2017 with China’s SAIC Motor Corp. — to real estate, where it teamed up with Guangxi Construction Engineering Group to develop a 3,068-rai (1,212-acre) industrial estate that targets Chinese investors.

Huawei is investing in Thailand’s first 5G test bed, even as the U.S. urges allies to ban the company from constructing next-generation mobile networks. CP-backed True Corp. is creating an Internet-of-Things lab with Huawei and used Huawei equipment to become Thailand’s first 4G provider. A Huawei spokesman said the company was invited to participate in the 5G test bed by the EEC Office.

In a display of how Thailand’s EEC is geared toward drawing China’s new tech giants, Alibaba billionaire Jack Ma met with Prayuth last year and signed a deal for a “smart digital hub” as part of the EEC. Alibaba’s deals with the EEC include an expansion of Thai rice and durian exports through the Chinese company’s digital platform.

Separately, CP has a partnership with Ma’s Ant Financial, which has a 20 percent share in the Thai group’s Ascend Corp., an e-wallet and microloan service. The deal, not part of the EEC, uses CP’s network of 7-Eleven shops.

CP said in a statement that the EEC project “will serve to transform the Thai economy and sustain decades of development and growth.” It said CP’s bid for the high-speed rail contract is part of a global consortium that includes Thai, European, Chinese and Japanese partners.

Dhanin turned down an interview request for this story. At an event in March, CP Chief Executive Officer Suphachai Chearavanont said, “Thailand will become a hub and have connectivity with the whole region, all the way up to China, Vietnam, Myanmar and Malaysia.” Supachai became CEO in 2017 at the same time as his brother Soopakij became chairman, marking the handing over of the family group to the third generation.

The Chearavanont family fortune is Thailand’s biggest at $20.9 billion, according to the Bloomberg Billionaires Index, bolstered by CP’s stake in Chinese insurer Ping An Insurance Group, which has tripled in value since the company acquired the shares in 2012. The Thai clan is one of many with Chinese ethnic backgrounds in Southeast Asia, including the Sys in the Philippines and Robert Kuok in Malaysia, who are leveraging generations-old links with China.

Chearavanont’s rise hasn’t come without controversy. The group in recent years faced allegations along with other companies that its prawn business used a supply chain that relied on slave labor. In 2017, a U.S. court dismissed an injunction to stop CP and others selling prawns unless they were labelled as products of slavery. CP has said it condemns all forms of slavery. In January this year, Thailand ratified the International Labour Organization’s convention for the fishing industry.

Technology is also being shared. The venture with Guangxi, called CG Corp., inked a series of agreements including for tech transfer with the Chinese Academy of Sciences. CP Group Vice Chairman Tse Ping, a billionaire nephew of Dhanin’s, signed deals in January with the Chinese academy to build “green smart manufacturing” platforms in Beijing and Macau.

The group’s reach shows how far it has come since founder Chia began importing seeds for Thai farmers. In 1946, he and his brother adopted the Thai family name Chearavanont and named the company Charoen Pokphand, meaning “prosperity to consumers” in Thai.

They built the business by literally moving up the food chain — growing crops for feed, processing packaged foods and owning supermarkets, according William Kirby, a Harvard Business School professor who has studied the company. It was among the first Thai investors in Shenzhen in the economic opening under Deng Xiaopeng, and has continued to spread its business interests.

“This is now a widely diversified group,” said Kirby. “In Thailand first, with stakes in agriculture, telecom, 7-Elevens and many other things. Then in China.” — Bloomberg

Oppo F11 Pro Avengers limited edition coming to the Philippines

OPPO is releasing a limited Avengers edition of its F11 Pro smartphone in time for the release of the final installment of the Marvel film series, which will be available for pre-order locally starting Friday.

In a statement, Oppo Philippines said the company is launching a brand new F11 Pro Avengers limited edition smartphone, which is an exclusive model released in cooperation with Marvel Studios. The phone will be available for pre-order in selected Oppo concept stores starting April 26 and is priced at P19,990, slightly more expensive than the regular version which retails for P18,990.

It will officially be available in the Philippines next month.

The limited edition smartphone will come in Space Blue, with its back cover featuring a design inspired by Captain America’s armor — a red Avengers “A” against a blue background. It will also have a wallpaper with the Avengers logo.

The phone will likewise be bundled with a Captain America-themed case with the character’s shield as a finger ring.

The Oppo F11 Pro Marvel’s Avengers Limited Edition will come in a premium black box with a stamped collector’s badge, the company said.

The F11 Pro features a 48-megapixel rear camera and F1.79 large aperture with 6P lens (six-lens plastic array), which enables users to take better-quality night or low-light photos.

It has a 6.5-inch full HD+ screen with an aspect ratio of 19.5:9 and a screen-to-body ratio of 90.9%. It also has a hidden front camera for a more seamless screen display. This camera, which can operate 100 times a day for six years, rises from the top middle part of the phone.

Aside from its better camera and bigger screen display, it is also equipped with a 4,000 mAh battery and the new VOOC 3.0 flash charging technology, which shortens charging time by 20 minutes to 80 minutes. It has 6GB RAM and 128GB in internal storage.

COD goes sustainable

STAYING true to its commitment to sustainability, the City of Dreams (COD) Manila has expanded the vermicomposting facility on the property as part of its ongoing “eco-efficient operations.”

Though vermicomposting efforts have been in place for the past two years, the integrated resort and casino in Parañaque City aims to expand the facility to 21.5 cubic meters from the original nine cubic meters.

The current facility produces 380 kilos of vermicast and 452 liters of vermitea a month.

Vermicomposting is the process of using various species of earthworms, usually red wigglers and white worms, on a mixture of decomposing vegetable or food waste and bedding materials, from which they produce vermicast (also known as worm poo). Vermicast contains reduced levels of contaminants and high saturation of nutrients and is used as fertilizer. The vermicast harvested at the COD nursery is used as organic compost for the ornamental plants used in the resort’s landscaping and in its herb garden.

FRUIT PEELS AND EGGSHELLS
“We don’t waste anything,” Cirilo Alerta, agriculturist and COD Manila’s landscape manager, told the media during a tour of the facility on April 11.

He explained that what they use as compost come from the property’s kitchens: coffee grounds, vegetable trimmings, fruit peels, and eggshells.

“Every day we gather about 63 kilos of used coffee grounds, 20 kilos of fruit and vegetable peelings, and 3.35 kilos of eggshells,” he was quoted as saying in a company press release.

To date, 45% of all the landscape plants used to decorate the property are fertilized with vermicast, with the goal being to use vermicast on all the plants before the year ends.

The vermicomposting facility and the nursery and herb garden are all located on the roofdeck of the property’s parking building.

The herb garden, which grows 13 herbs including Thai holy basil, peppermint, curry tree, kaffir lime, and betel leaf, currently occupies 101 square meters while the nursery for ornamentals takes up 275 square meters.

“We have delivered 28 kilos of herbs and 110 kilos of calamansi (a local citrus fruit) since we started,” Mr. Alerta said.

He added that he is currently playing with the idea of introducing hydroponics — the process of growing plants without soil by using mineral nutrient solutions in a water solvent — using another by-product of vermicomposting, vermitea, which is made by soaking vermicompost in water.

Mr. Alerta said that he has experimented with this kind of setup before and achieved positive results and is looking to try something similar for COD.

MAJOR SAVINGS
In all, the property said in a press release that it has saved P573,347.28 monthly on expenses on fertilizers and ornamental plants thanks to vermicomposting.

“The herb garden is relatively new. We started [it] last year but it’s really this year that we’re starting to ramp up,” Michael Ziemer, vice-president for hotels and food and beverage of COD Manila, told the media after the tour.

“[The property] wasn’t designed to have a roof garden and such, but I think where the chefs are working at the moment is to look at what we can grow upstairs and what we can use. The problem that I have is that this is such a big complex that I have to grow a lot,” he explained.

And because of such limitations, Mr. Ziemer said that in the long term he wants to work with “some local farmers in some of these villages where they need help.

“So we can offer them financial support and ask them to grow our vegetables and fruits and they can supply us directly,” he explained.

LOCAL COFFEE
And they are beginning with coffee — COD is starting to switch to using coffee that is sustainably sourced within the Philippines.

Last year, COD Manila opened the Garage, a VR zone and food hall which includes The Roaster, a café which uses coffee beans from places like Benguet.

“And then suddenly we thought, why should we be spending so much money on Italian coffee when [Philippine] coffee tastes really good? I mean, it’s really good coffee. So now we’re going to introduce it to the entire resort which is massive,” Mr. Ziemer said, before adding that they will start doing so one restaurant at a time until they’ve completely phased out imported coffee by the end of the second quarter of the year.

The property has also stopped using plastic straws, replacing them with straws made of 100% compostable and biodegradable materials.

The resort’s parent company, Melco Resorts and Entertainment Ltd., has pledged to eliminate “unnecessary plastic packaging and reducing single-use plastics,” according to a press release.

The company aims to remove 100% of single-use plastic bottles at all employee areas by the end of 2019, and plans to expand the scope to guest areas including amenity kits, garbage bags, plastic bottles, straws, disposable F&B containers and utensils by end-2020.

Melco Resorts is a signatory of The New Plastics Economy Global Commitment launched in October 2018 by the Ellen MacArthur Foundation in collaboration with the United Nations Environment Program. — Zsarlene B. Chua