Facebook Instagram Linkedin X Youtube
Home Blog Page 10515

House bill seeks to promote bamboo plantations, product research

A BILL has been filed at the House of Representatives seeking to encourage the adoption of plantation production of bamboo, as well as research and development to promote its wider use.

House Deputy Majority Leader and Las Piñas City Rep. Camille A. Villar filed House Bill 3309, which if passed will become the Philippine Bamboo Industry Development Act of 2019.

The bill hopes to set up the Bamboo Industry Research and Development Center (BIRDC) “tasked to continuously provide relevant technologies and new products to the bamboo industry.”

The measure requires that bamboo represent 20% of the annual planting of the national greening program a reforestation initiative. It also calls for 25% bamboo content in desks and chairs used by public schools.

Ms. Villar noted that the main challenge in the development of a bamboo industry is a shortage of land.

“There are about 8,500 hectares devoted to bamboo cultivation, with four economically viable species — the Kawayan Tinik, Giant Bamboo, Buho, and Bolo. According to the DTI (Department of Trade and Industry), while 8,500 hectares is a significant number, the huge demand for bamboo requires more coverage,” said Ms. Villar said in a statement Sunday.

The measure requires the BIRDC to promote the establishment of bamboo nurseries, plantations, and processing facilities; and promote the commercialization and market access of the “appropriate innovative and viable” bamboo industry products.

The BIRDC is also expected to provide capacity-building initiatives for farmers, processors, designers, and other stakeholders in the bamboo industry.

“Nursery and plantation owners shall be exempt from the payment of rent for the use of public lands for commercial bamboo plantation for the first 10-years or when the plantation owner starts to harvest his/her nursery/plantation subject to existing tenurial agreement with concerned government agencies,” according to the bill.

“Plantation owners in public lands shall be exempt from the payment of forest charges imposed by national government and other fees or taxes imposed by local government units.”

It added, “Plantation owners, including nursery facilities, bamboo processing, and other related businesses shall be exempt from the payment of import duties for imported machines and equipment subject to pertinent rules and regulations.”

If signed into law, the bill directs the Office of the President through the Philippine Amusement and Gaming Corp. to allocate P100 million to start-up the trust fund. — Vince Angelo C. Ferreras

TLDC-Dusit to build Princess hotel as its 4th Davao project

DAVAO CITY — Torre Lorenzo Development Corp. (TLDC) and Dusit International are embarking on their fourth project in the Davao Region, a Dusit Princess hotel in the city.

The Princess hotel, Dusit’s upper mid-scale brand, will be located in the same complex where the Dusit D2 Davao and the Dusit Thani Residences are located.

“We will break ground on that soon,” Christopher Wichlan, general manager of the Davao Dusit hotels, said in an interview at The Beach Club at Lubi Plantation, the third property under the TLDC-Dusit partnership.

TLDC President and Chief Executive Officer Tomas P. Lorenzo, in a press briefing Friday before the grand launch of Dusit D2, said the Davao City complex is planned to be a bigger mixed-use development which will be named Tierra Lorenzo Davao.

“This is only one-third of what we’re doing here. We’re putting office buildings, followed by a retail area and an esplanade,” Mr. Lorenzo said.

“This is an anchor, this hotel (Dusit D2) is the anchor to a bigger development in Davao,” he added.

Mr. Lorenzo declined to give the projected investment needed for the project, which would include the acquisition of surrounding properties, with some already settled and others under negotiation.

“In another year, it will be a different landscape,” Mr. Wichlan said.

In April, TLDC Chief Finance Officer Noel A. Rapadas said they have allocated P3 billion for capital expenditures this year to support projects that have been lined up.

Meanwhile, The Beach Club at Lubi Plantation, located on a private island in nearby Compostela Valley province, is currently on soft opening for day trips and with several of the initial 18 villas ready for occupancy.

The other facilities open are a pool, restaurant, function area, spa, and indoor game center, while a chapel for wedding ceremonies and dive shop are expected to be completed within the next six weeks.

“Soon as we have the other core elements, we’ll rebrand, probably before Christmas, to Dusit Thani at Lubi Plantation Resort. That’s the masterplan,” Mr. Wichlan said.

The next phase of the Lubi development would include the construction of 22 more villas, a Dusit Devarano Spa, a Benjarong and western cuisine restaurants, and another pool exclusive to staying guests, among others.

Dusit International Chief Operating Officer Lim Boon Kwee said their Davao operations, which was their first venture with TLDC, is the only one in their global network that combines urban and island resorts.

“This is very unique for us,” he told BusinessWorld on the catamaran ride from the Davao City complex to Lubi Plantation.

Mr. Lim said Dusit Thani Public Company Ltd., the Bangkok-based firm behind Dusit International, sees their partnership with TLDC as a “long-term relationship.”

TLDC and Dusit have also teamed up for the Tierra Lorenzo Lipa project in Batangas, which will have residential buildings and a Dusit Princess Hotel.

“As a company, it’s not just a transaction for us… we see it as a relationship and a journey,” he said. — Marifi S. Jara

10 millionth MINI rolls off the line

OXFORD — MINI fans all over the world have a variety of opportunities to look back on the 60 years of history enjoyed by the British brand over these weeks and months. Now there is another reason to celebrate: The ten millionth vehicle of the heritage brand was produced at the British MINI Plant Oxford where the classic Mini was manufactured from 1959 onwards.

The anniversary vehicle rolling off the production line was a model of the MINI 60 Years Edition — and it then came face to face with the brand’s first small car ever manufactured. The classic Mini from 1959 and the Edition model from the year 2019 then joined forces with 60 other vehicles of the brand — each of them from one of the production years. They all took part in a road trip traveling to Bristol in convoy, where thousands of fans celebrated the world’s biggest birthday party for the British original at the International Mini Meeting held last August.

The production anniversary to celebrate 60 years of the brand’s existence bears witness to the uninterrupted popularity of MINI in the 21st century. In 1959, the genius who designed the classic Mini, Alec Issigonis, laid down a definitive milestone in automobile history. The vehicle concept with the engine mounted transversely at the front of the car along with the gearbox configured beneath the engine, and the wheels positioned at the corners of the car together with a tailgate body provided maximum interior space on a minimum footprint. The design also ensured amazingly agile driving characteristics and it became the blueprint for modern small and compact cars. Around 5.3 million units of the classic Mini were sold worldwide up until the year 2000.

Just one year later, the global success story of the brand was continued. Since the relaunch of this marque, MINI is the original in the premium segment of small cars. The reinterpretation of the inimitable design, the unsurpassed driving fun that is unique in the competitive environment and the individual style of the brand are not simply generating enthusiasm in the class of small cars. These characteristic qualities are empowering MINI to continuously acquire new target groups in the premium compact segment.

And the next stage is about to be launched. In November 2019, production of the all-electric powered MINI Cooper SE will commence — also in Oxford. In future, this will also make electromobility a typical MINI experience full of driving fun and individuality.

Last year, almost 400,000 MINIs were sold in 110 countries. This means that the sales figures for the modern MINI are following hot on the heels of its historic predecessor. The models MINI 3-door, MINI 5-door and MINI Clubman are currently being produced at the MINI Plant Oxford. Up to 1,000 MINIs are manufactured there every day. The MINI Convertible and the MINI Countryman roll off the assembly line at MINI’s Dutch production partner, VDL NedCar.

“Seeing the 10 millionth vehicle of our brand come off the production line here in Oxford was a moment of pride for all the employees. Some of them have family members who were already producing the classic Mini at this site,” explained Peter Weber, head of the MINI Plant Oxford. “This is a wonderful chapter in the history of MINI and proof of the passion that our customers have for this very special British motor car.”

In the run-up to the production anniversary, MINI put posts on social media asking the brand’s British community to share their personal stories from 60 years of MINI with other fans. The huge response made it possible to bring together characteristic vehicles from each production year between 1959 and 2019 as the showpiece for the anniversary celebration at the MINI Plant Oxford.

The highlight of this exceptional coalescence was the joint outing to the International Mini Meeting in Bristol. The first classic Mini ever built drove at the head of the convoy. It bears the registration 621 AOK well known among MINI fans and the car was followed in chronological order by protagonists from 60 years with the 10 millionth vehicle of the brand bringing up in the rear of the impressive anniversary procession.

Peso likely to move sideways ahead of US economic reports

THE PESO could move sideways this week ahead of more data releases in the United States.

On Friday, the local unit closed at P51.905 versus the greenback, 10.5 centavos stronger than its Thursday close of P52.01, data from the Bankers Association of the Philippines (BAP) revealed.

On a week-on-week basis, the peso strengthened by 14 centavos from its P52.05-to-a-dollar close on Aug. 30.

“General market perception may have also been a factor due to positive US economic data recently released,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

“Expect the peso this week to move within P51.70 to P52.00 as the market expects more positive signs from the US economic data releases,” Mr. Asuncion added.

The US manufacturing sector contracted in August for the first time since 2016 amid worries about a weakening global economy and rising trade tensions between China and the US, an industry report released last Tuesday showed.

The Institute for Supply Management (ISM) said its index of national factory activity decreased to 49.1, the lowest level since January 2016.

This compared with a figure of 51.2 in July. Analysts polled by Reuters had forecast a reading of 51.1 for August.

Meanwhile, US services sector activity accelerated in August and private employers boosted hiring, suggesting the economy continued to grow at a moderate pace despite trade tensions which have stoked financial market fears of a recession.

The Institute for Supply Management (ISM) said its non-manufacturing activity index increased to a reading of 56.4 in August from 53.7 in July. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of US economic activity.

Economists polled by Reuters had forecast the index would rise to 54.0 in August. The ISM said businesses “remain concerned about tariffs and geopolitical uncertainty,” but also noted “they are mostly positive about business conditions.”

On the other hand, US job growth slowed more than expected in August, with retail hiring declining for a seventh straight month, but strong wage gains should support consumer spending and keep the economy expanding moderately amid rising threats from trade tensions.

The US Labor department’s closely watched monthly employment report on Friday also showed a rebound in the workweek after it shrunk to its shortest in nearly two years in July, suggesting that companies were not yet laying off workers.

Non-farm payrolls increased by 130,000 jobs last month, flattered by temporary hiring of 25,000 workers for the 2020 census. The economy created 20,000 fewer jobs in June and July than previously reported. Economists polled by Reuters had forecast payrolls rising by 158,000 jobs in August.

More US data are dye for release this week such as the August producer price index report, data on wholesale inventories, jobless claims, retail sales, as well as the August consumer price index. — with Reuters

Fashion photographer Peter Lindbergh, 74

BERLIN — German fashion photographer Peter Lindbergh, credited with inventing the concept of the supermodel in the 1980s, has died aged 74, a message on his Instagram account said last Wednesday.

Born in 1944 in German-occupied Poland, he is seen as the creator of a style of naturalistic fashion photography which showed women without heavy make-up and is known for famous images of Cindy Crawford, Naomi Campbell and Christy Turlington.

German daily Bild quoted him as having told the newspaper in May: “Nothing is more beautiful than photographing the women you love. I was really in love with each of my supermodels.”

Oscar-winning actor Charlize Theron described him as a genius and a master of his craft.

“Beyond that, what made him truly one of a kind was his consistent kindness, warmth, and incredible sense of humor,” she tweeted.

Mr. Lindbergh recently shot pictures of women for the “Forces for Change” issue of British Vogue magazine that Meghan, wife of Britain’s Prince Harry, guest edited. The women he photographed included actress Jane Fonda, climate activist Greta Thunberg, and New Zealand Prime Minister Jacinda Arden.

He also shot three editions of the Pirelli calendar.

“He was a master, a protagonist of the history of photography and also of the Pirelli Calendar,” said Marco Tronchetti Provera, Executive Vice-Chairman and CEO of Pirelli.

Mr. Lindbergh, known for his cinematic approach, made an appearance at the Berlin Film Festival in February for a documentary about him called Women’s Stories.

The Instagram message said the photographer, who also directed films and documentaries, had died on Sept. 3. It gave no further details, saying only he was survived by his wife Petra, his first wife Astrid, four sons and seven grandchildren.

“He leaves a big void,” it said.

Supermodel Linda Evangelista wrote: “Heartbroken. R.I.P. my Peet.”

Mr. Lindbergh grew up in the Ruhr area of western Germany before studying at the Berlin Academy of Fine Arts in the 1960s.

On his website he said he was inspired by Vincent van Gogh and, like the Dutch artist, lived in Arles in France as a young man before travelling through Spain and northern Africa.

In the 1970s he turned to photography and pioneered a form that became known as “New Realism” which rejected retouching.

“This should be the responsibility of photographers today to free women, and finally everyone, from the terror of youth and perfection,” he is quoted as saying on his website. — Reuters

Cacao the focus of third Startup Weekend Women

DAVAO CITY — A conference for female entrepreneurs is focusing on identifying and addressing gaps in the production of cacao and its by-products with the aid of technology.

The Startup Weekend Women, now on its third staging, will hold on Sept. 20–22 while pre-event “ideation” session is set for Sept. 9.

Mary Rose P. Ofianga, coordinator of the University of Southeastern Philippines-Advancing Great Ideas Lab Technology Based-Incubator and among the organizers, said cacao is considered “one of the hottest fields of agriculture.”

Apart from the female participants, industry stakeholders will also be attending to discuss challenges “while innovators conceptualize innovative business models to solve these challenges,” she said.

Ms. Ofianga also noted that there is a lot of opportunity for women in the cacao sector considering that micro, small and medium enterprises in the city have been thriving and winning awards for their products.

Lizabel G. Holganza, founding member of the Cacao City Marketing Cooperative and former president of Information and Communications Technology-Davao, said there is a need to integrate technology into the industry.

“We need to tap modern technology both in marketing and in production to ensure that we can maximize production of our farms as well as access the best prices for our produce,” Ms. Holganza told BusinessWorld.

Agriculture Secretary William D. Dar, in a recent visit to Davao, said his department will also be helping expand cacao production in the region.

He said, “We (will) look for some potential areas where we can expand the cacao industry because the market is open.” — Carmelito Q. Francisco

Kaspersky sees double-digit growth for PHL business

By Denise A. Valdez
Reporter

YANGON, MYANMAR — Kaspersky is keeping its double-digit growth forecast for its Philippine business, amid the government’s efforts to boost cybersecurity awareness.

The Russia-based cybersecurity firm said it is expecting more than 20% growth in its business-to-business (B2B) segment in the coming year. For Southeast Asia, Kaspersky said this segment is growing at a faster rate to account for half of its business in the region. The other half comprises of business-to-consumer (B2C) transactions.

“I would like to see on my B2B business — which is the SMB (small and medium-sized business) and enterprise business — in the Philippines, next year, growing at least a good double digit: 20+%. I think that’s not unrealistic to expect,” Kaspersky Managing Director for Asia Pacific Stephan Neumeier said in an interview on the sidelines of a company event here last week.

He said the Philippines is Kaspersky’s third fastest growing market in Southeast Asia in terms of the B2B segment, with an average 10% annual growth. In terms of revenue growth, the country is also among the top five contributors for Kaspersky in the region.

“Kaspersky has a very strong brand in the Philippines… Customers love to work with us because they understand that we understand our business,” Mr. Neumeier said.

Yeo Siang Tiong, Kaspersky’s general manager for Southeast Asia, noted this is largely due to the Philippines’ high awareness of cybersecurity issues, citing the information campaign implemented by the Department of Information and Communications Technology (DICT).

“The timing is also ripe. If you look at the development of the Philippines, DICT is setting up a very aggressive journey to educate everyone. They go from one town to another town talking about cybersecurity awareness. And this is something that I didn’t see in any other country,” he said.

“So that has raised quite a fair bit of awareness in the private sector. Of course, we have benefitted from it,” he added.

The other factor, Mr. Yeo said, is the country’s high literacy in information technology because of the proliferation of business process outsourcing companies in the Philippines.

The DICT is currently implementing its National Cybersecurity Plan 2022 which aims to improve cybersecurity education in the country. It involves training cybersecurity experts to increase the country’s pool of professionals and strengthening “cyber guards” that will protect government agencies holding critical information and data.

Kaspersky signed a memorandum of understanding with the DICT last year to help the government in its cybersecurity initiatives.

Mr. Neumeier said the growth potential in the Philippines is pushing Kaspersky to boost its investments in the country. A two-year plan will be developed in the coming months to determine Kaspersky’s expansion targets in each country where it is present, and he expects the Philippines to be one of those with increased investments.

“We look into those countries who are already contributing to our growth, where we can already see the right trend. For those particular countries, we need to keep investing. Philippines is most likely one of them,” he said. “It’s a growing market for us.”

Both Mr. Neumeier and Mr. Yeo said several sectors in the country are still in need of developing a cybersecurity mindset.

Mr. Yeo cited the industrial and health care sectors as examples, and noted the digitalization of these sectors’ operations poses the impending need for security measures.

“(The systems in these industries) tend to be isolated by themselves previously. But today, they are also beginning to be connected… When the connection happens, there’s a lot of exposure (to cyber threats),” he said.

“In countries like the Philippines, the customers are ‘Okay, I don’t have the budget to invest in that. And so far, nothing happened,’… But tomorrow it could be completely different. So we need to drive this awareness in specific verticals in the Philippines,” Mr. Neumeier added.

Carousell welcomes veteran auto exec as new Head of Cars

CAROUSELL PHILIPPINES, the leading classifieds marketplace in the country, announces the appointment of Karl Magsuci as the new head of its Cars business group.

Karl has more than 17 years of management experience in marketing, brand and product strategy. He is also a notable automotive executive, known as a veteran in the industry. He has worked with top brands, including Honda Cars Philippines, Inc., Ramcar Group (Motolite Battery) and BMW Philippines. His most recent leadership experience was working as president of Autoallee Group, Inc. (a BMW authorized dealership).

“Karl’s years of experience as an automotive executive will surely be an asset as he steers our Cars business group toward dominating the category in online classifieds. We are really looking forward to what the organization will become through his expertise in his field,” said Carousell Philippines General Manager Raffy Montemayor.

As Head of Cars, Karl will manage a team of 25 in the Cars business unit. He will take the lead in strategic planning by identifying new business opportunities, crafting the national commercial strategy, and coordinating with the global vehicles and tech team in developing solutions for all customers of the said business unit.

“I am very excited to be part of the Carousell Family, the leading online marketplace both in the country and in the region. I look forward to sharing my experience and knowledge as we pursue our mission to provide the market with the best online marketplace experience, especially in the automotive arena,” said Karl.

Being an outstanding marketing professional with years of experience in the automotive industry, Carousell is confident that Karl is in the best position to assist the company in better establishing its name in the local market.

Standard sizing system for Filipinos being developed by DOST-PTRI and Benilde

THE Philippine Textile Research Institute (PTRI) of the Department of Science and Technology (DOST) has partnered with the Fashion Design and Merchandising (FDM) Program of the De La Salle-College of Saint Benilde (DLS-CSB) in an initiative to come up with a prototype sizing system fit for the Filipino physique.

With the goal of promoting innovative design development processes and supporting the local garment industry, the DOST established the Textile Product Development Center (TPDC), a technologically equipped hub where textile artists, manufacturers, and retailers can transform their research into tangible and functional outputs before offering them to the general public.

The grant-in-aid project with Benilde, titled “Perfect Fit,” uses computer-aided design (CAD) and computer-aided manufacturing software, design visualization, and the establishment of an integrated textile product development process with the goal of producing a Philippine standard sizing system using a 3D Body Scanning System.

“This will lead to a generation of accurate measurements and the ability to optimize pattern layout [that] will result [in] more efficient textile product development, material utilization and human resources input,” DOST International Cooperation Assistant Secretary Dr. Leah Buendia noted. “Interestingly, it will not only promote mass customization in the garment industry, but will also find application [in] industrial design for manufacturing of ergonomic goods and health and nutrition for nationwide monitoring of body size and shape. The possibilities are endless.”

DLS-CSB joined DOST-PTRI as the academe partner and research arm.

DLS-CSB FDM Chairperson Christine Benet, who worked for 20 years in the merchandising and manufacturing sector, explained how this project can help elevate the Philippine fashion industry in general.

She pointed out that there are two kinds of product development: customized and ready-to-wear (RTW). The first includes designer pieces which are easier to control because of individualized measurements. “However, there is still a challenge in terms of tools. In the Philippines, We have limited mannequins and dress forms. We rely on products made in China,” she noted. “Our RTWs, on the other hand, basically follow the standard sizing of international brands and it does not always fit the Filipino size. In fact, there are questions being raised now: How come we don’t have our own sizing system?”

At DLS-CSB, students are taught not only to manually take and create measurements and patterns, but also how to do so using CAD, which is what multinational companies use. “However, although our students are trained, the local scene is not yet ready for such innovation,” Ms. Benet said. “This existing cooperation with DOST-PTRI allowed us to create awareness with the industry and the public that it is possible to do everything in a certain way wherein we are blending sustainability and technology.”

DOST-PTRI Director Celia Elumba stressed out that this initiative is just one of many projects to help the local textile industry. “We are not just researching to put this into a paper and [on] the shelves for publication. It is something that is meant to address a particular need in the society,” she stated. “We have over 100 million Filipinos and we are not even dressing 10% of our own people; we are missing out on that industrial capability to move the economy.”

Ms. Elumbra noted that currently, the Philippines is the only nation in ASEAN that has this particular system which has more accuracy and capacity as compared to what other countries use.

Currently housed in the TPDC, the first 3D Body Scanning System will be shown to the public at Sinulid: Epilogue, the third and last installment of DLS-CSB FDM’s culminating exhibit, on Oct. 8 to 10 at the SM Mega Fashion Hall in Ortigas Center, Mandaluyong City.

Fed Chair Powell repeats vow to act ‘as appropriate’

ZURICH — The US Federal Reserve will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy, Fed Chair Jerome Powell said Friday in Zurich, sticking to a phrase that financial markets have read as signaling further interest-rate reductions ahead.

“Our obligation is to use our tools to support the economy, and that’s what we’ll continue to do,” Mr. Powell said at the University of Zurich.

Still, he said, “We are clearly at a time where there is a range of views” among Fed policy makers meeting Sept. 17-18 to decide on rates.

Powell’s careful wording reflects a split within the US central bank about how best to respond to an economy where the job market and consumer spending are strong but rising trade tensions between Beijing and Washington, Britain’s possibly messy exit from the European Union, and a broad global slowdown pose risks.

Boston Fed President Eric Rosengren for instance has made the case for leaving rates where they are until those risks are more tangible in the economic data.

Others including St. Louis Fed President James Bullard have called for a half-a-percentage point interest-rate cut to get ahead of the trade war risks and bring the Fed’s policy rate more in line with market expectations. Meanwhile, financial markets are betting Fed policy makers will agree to split the difference and follow their quarter-point rate cut in July with another one later this month.

Mr. Powell said policy makers will be closely watching geopolitical risks, financial conditions, and other incoming economic data as they weigh what to do.

MIXED DATA
Fed officials are particularly focused on whether a drop in business spending and a manufacturing slump brought on by rising trade uncertainty is spreading to other parts of the economy. Factory activity declined in August as US President Donald Trump ratcheted up tariffs on imports from China, and China retaliated in kind.

Fed research published earlier this week estimated that trade uncertainty could shave about $200 billion from US gross domestic product by early 2020, as companies hold off on investments.

But so far there are few signs the uncertainty is translating into job loss. US job growth slowed more than expected in August, a government report showed Friday, but strong wage gains and a rebound in hours worked suggested resilience.

Mr. Powell, who spoke a few hours after the jobs report, said it was his expectation the US and world economies would continue to grow moderately and would avoid any recession.

But there are also troubling signs in financial markets, most notably an inversion of the Treasury yield curve, which historically has pointed to a recession 18 months to two years ahead. The Fed’s target range for its benchmark policy rate, now 2% to 2.25%, exceeds yields on nearly all Treasuries.

Trump on Friday kept up his call for the Fed to lower interest rates, saying policy makers were wrong to raise them last year.

Powell for his part said he wasn’t listening to Mr. Trump, or to a call from former New York Fed President Bill Dudley for factoring the 2020 presidential election into his rate-setting decisions.

“Political factors play absolutely no role in our process, and my colleagues and I would not tolerate any attempt to include them in our decision-making or our discussions,” he said. “We are going to act as appropriate to sustain the expansion.”

Mr. Powell’s remarks are the last publicly scheduled comments from a US central banker before the Fed’s September meeting. — Reuters

China sugar industry to lobby for extension of hefty tariffs

BEIJING — Chinese sugar mills plan to ask the nation’s Ministry of Commerce to extend hefty tariffs on sugar imports that Beijing imposed in 2017 to protect China’s struggling domestic sector, according to two sources and a draft document viewed by Reuters.

The plan to request an extension of the tariffs was discussed at a meeting organized by the China Sugar Association on Thursday.

Beijing’s trade measures on sugar imports, set to expire on May 21, 2020, “have played an effective role in safeguarding the interest of the domestic industry, and promoting healthy and stable development of the sector,” said the draft document that was dated Sept. 5.

China’s domestic sugar sector has struggled to compete with foreign rivals due to higher production costs. Chinese white sugar prices CSRc1 also plunged in 2018, amid a global supply surplus, pushing many producers into the red.

The Guangxi Sugar Association, in China’s top producing region for the sweetener, will submit the application for the extension of the tariffs on behalf of the entire domestic sugar industry, according to the document.

A source familiar with the matter confirmed that the industry group is consulting lawyers and experts, and drafting the application to be submitted to the government.

It is not clear when the Guangxi association will submit the plan or what Beijing’s response will be, as other major sugar exporters continue to pressure China to drop the trade measure to curb imports.

“The safeguard measures are a very complicated issue. Application is still only an plan. It is not easy to extend (the measures),” said one of the sources who was briefed on the plan.

Separately, China Sugar Association will also look into the possibility of an anti-dumping and anti-subsidy investigation into imported sugar products, according to a second draft document discussed at the Thursday meeting.

Some sugar exporting countries and regions have exported sugar products at below cost prices, or with subsidies, which has damaged China’s domestic sugar industry, the document said.

The draft does not outline proposed tariff rates if the safeguard measures are extended.

China in May 2017 hit major exporting nations with hefty tariffs on sugar shipments after years of lobbying by domestic mills. Beijing started to levy extra tariffs on out-of-quota sugar imports from all origins last August.

China allows 1.94 million tonnes of sugar imports a year at a tariff of 15% as part of its commitments to the World Trade Organization. Out-of-quota imports are charged a higher tariff and need special permits.

Imports beyond 1.94 million tonnes attract a 50% levy. The 2017 ruling added an extra 45% duty to these imports in that fiscal year, taking the total to 95%. The rate fell to 90% 2018–2019 and 85% in this year to 2020. — Reuters

Hong Kong expats eye exit as protests threaten ‘World City’

LIKE many expatriates in Hong Kong, Madeline Bardin is thinking more and more about leaving.

The 36-year-old entrepreneur has thrived in the city for seven years, but she worries that its summer of unrest isn’t going away anytime soon. She won’t go outside with her 8-month-old son without first checking chat groups and the news for reports of tear gas, and she recently canceled a business trip on concern that protests at the airport might prevent her from returning home.

“We have a young family to think about and we think this is just the beginning of the changes in Hong Kong,” said Ms. Bardin, who moved to the city from London in 2012. “Long term, it just doesn’t make sense for us to stay here with the rising instability.”

Hong Kong’s ability to assimilate people from around the globe has helped turn the former British colony into one of the world’s biggest financial and commercial hubs. But that status is increasingly under threat as expats and their employers weigh the costs of committing to a city mired in its worst political crisis since the handover to China in 1997.

If people like Ms. Bardin decide to leave, it could do significant damage to an economy that hosts the world’s fourth-biggest stock market and regional offices for hundreds of foreign companies.

Fitch Ratings Ltd. cited Hong Kong’s deteriorating international reputation as one reason for downgrading the city’s credit rating on Friday, saying that public discontent is likely to persist even after Hong Kong Chief Executive Carrie Lam withdrew the controversial extradition bill that first sparked the demonstrations three months ago.

Just a few hours after the Fitch statement on Friday, police used tear gas in a populated area to disperse protesters who dismantled traffic lights and started fires. On Saturday, protesters blocked a main road in Mong Kok, a busy shopping and residential district, and burned a barricade near the police station before being chased off by hundreds of riot cops.

Hong Kong has long attracted international bankers, lawyers and other professionals with its energetic urban lifestyle, negligible crime rate and low taxes — a combination that convinced expats to stomach sky-high rents and cramped living spaces. At the end of 2018, the territory had more than 650,000 foreign residents, in addition to the more than 1 million people from mainland China who have settled in the city of 7.5 million since 1997.

While Hong Kong’s government doesn’t publish comprehensive immigration statistics frequently enough to gauge the full impact of this year’s unrest, there are signs that foreigners are cooling on the city.

Applications for general employment visas dropped 7% in August from a year earlier, after rising on an annual basis for most of 2019, according to official figures. The number of mobile residents — those who recently spent between one and three months in the city — fell 4.1% in the first half, the biggest decline in a decade.

HK HODGEPODGE
Online forums now often feature expats debating whether to leave Hong Kong to give birth, whether it’s safe to let their kids take mass transportation, and whether to move out of the city for good. Many worry that Beijing is chipping away at the “one country, two systems” framework that gives Hong Kong certain freedoms unavailable in Communist China. The extradition bill would have exposed both Hong Kongers and foreigners to the risk of being sent to the mainland to face what the US State department has called China’s “capricious” legal system.

Hong Kong’s status as “Asia’s World City” was based on “values that are eroding quickly as Beijing exerts more and more influence in Hong Kong, especially in recent years,” said Lo Kin-hei, vice chairman of Hong Kong’s Democratic Party. “If these values are gone, those names and status Hong Kong enjoys now will be gone forever.”

For all its challenges, Hong Kong has plenty of foreigners committed to the city for the long haul. Some argue that the turmoil has had minimal impact on their day-to-day lives and that Hong Kong will weather the storm just as it did during Asia’s financial meltdown in the late 1990s and the SARS outbreak in 2003. Several foreigners have been notable fixtures at the demonstrations, offering support to protesters, live-streaming clashes with police on Twitter, and in at least one case drawing the ire of pro-Beijing lawmakers.

Others are reluctant to leave for economic reasons. In a survey of 982 Filipino domestic helpers conducted by HelperChoice, a recruitment platform, 45% said they were worried about the protests but not enough to leave Hong Kong, where salaries are often far higher than in their home country, the South China Morning Post reported.

Hong Kong’s government knows the city’s reputation is at risk. This month, it took out full-page ads in international newspapers that said: “We remain a safe, open, welcoming and cosmopolitan society and an internationally connected, vibrant and dynamic economy. We will no doubt bounce back. We always do.”

While Hong Kong did return to normality soon after the Occupy Central movement fizzled in 2014, this year’s demonstrations have had a more dramatic impact. Not only have they spilled from the city’s streets into the airport, subways, shopping malls, and schools, they also threaten to tip the economy into a recession as retail sales and tourism plunge.

The outlook could get worse if the trend toward increased violence by some protesters persists. Hong Kong’s government hasn’t ruled out invoking the city’s emergency law, which could allow it to disrupt Internet service and seize property. Meanwhile, China has signaled repeatedly that it could send in the People’s Liberation Army if necessary to quell the unrest.

Professionals who moved to Hong Kong from mainland China share many of the same concerns about stability as Western expats. But some are also souring on the city for different reasons.

One common gripe is that native Hong Kongers have become less welcoming to people from the mainland as the protests have escalated. A Chinese banker who has lived in the city for almost a decade, and who asked not to be named discussing a sensitive issue, said his wife has ordered him not to speak Mandarin in public. The couple had planned to retire in Hong Kong, where locals speak Cantonese, but are now considering Shenzhen instead.

Jason Tan, a director at recruitment agency Kelly Services in Shanghai, said he’s fielding as many as 20 calls a day from financial professionals who’ve been in Hong Kong for a few years, but now want to move back to China. “Candidates are looking for greener pastures,” he said.

Even as they question how long they should remain in Hong Kong, daily life goes on for most foreigners who work in the city. On a recent Saturday, as demonstrators lit a massive fire outside a police station and engaged in some of their most violent clashes since the protests began, a group of mostly western expats attended a children’s birthday party about a mile up the road.

While conversations at the party inevitably touched on the unrest and how the situation might play out, attention eventually turned to more practical considerations. Babies’ noses needed wiping, a mess on the floor had to be cleaned, and a toddler’s tantrum had to be dealt with. — Bloomberg

1...10,51410,51510,516...14,244Page 10,515 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube