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Thai government candidate for key central bank role in doubt

REUTERS

BANGKOK — The selection of a Thai ruling party loyalist for an influential central bank role looked in doubt on Tuesday after media reports and a source said the state advisory council had deemed him unqualified for the position.

The nomination of Kittiratt na Ranong by the government, first reported by Reuters, was met by strong opposition and concern about political influence on the independent Bank of Thailand, including from more than 800 economists and academics, and several former central bank chiefs.

If confirmed as the central bank’s new board chair, Kittiratt would not be able to direct interest rates, but the board can influence policy by selecting the monetary policy committee.

The next chair will also have some influence on the selection of the successor to governor Sethaput Suthiwartnarueput, who completes his term in September 2025.

The government has been pressuring the central bank this past year to cut interest rates and Kittiratt has been a critic of its governor. He also clashed frequently with the central bank when he was finance minister between 2012 and 2014.

Despite the opposition, an independent panel selected Kittiratt last month but the cabinet waited with its approval for the advice of the Office of the Council of State, which governments consult on legal issues, policy and appointments.

Several Thai media outlets on Tuesday said the council saw Kittiratt as unqualified because he had served in the past year as a government adviser and could not be deemed politically neutral.

The information was confirmed by a person with knowledge of the proceedings, who declined to be identified because he was not authorized to speak on the issue.

The council did not immediately respond to a Reuters request for comment, but Thai media quoted its secretary-general as saying a conclusion had not yet been reached.

Another source with knowledge of the matter also said the council was still discussing the matter.

Kittiratt thanked for the nomination in a Facebook post without addressing the media reports.

“I have volunteered to work for the country,” he said on Tuesday, without elaborating.

Finance Minister Pichai Chunhavajira said that if the council deemed Kittiratt unqualified, new candidates would need to be chosen.

“Suppose (Kittiratt) doesn’t pass, we have to talk about it. We have to hurry and propose again. The selection committee is on standby, ready for everything,” he told reporters on Tuesday.

Kittiratt, a former stock exchange president, last week stressed that as a board chair he would have no power to influence monetary policy and would only “intervene with thoughts.” — Reuters

Apple seeks to defend Google’s billion-dollar payments in search case

The Apple logo hangs in a glass enclosure above the 5th Ave Apple Store in New York, Sept. 20, 2012. — REUTERS

APPLE has asked to participate in Google’s upcoming US antitrust trial over online search, saying it cannot rely on Google to defend revenue-sharing agreements that send the iPhone maker billions of dollars each year for making Google the default search engine on its Safari browser.

Apple does not plan to build its own search engine to compete with Alphabet’s Google, whether or not the payments continue, the company’s lawyers said in court papers filed in Washington on Monday. Apple received an estimated $20 billion from its agreement with Google in 2022 alone.

Apple wants to call witnesses to testify at an April trial. Prosecutors will seek to show Google must take several measures, including selling its Chrome web browser and potentially its Android operating system, to restore competition in online search.

“Google can no longer adequately represent Apple’s interests: Google must now defend against a broad effort to break up its business units,” Apple said.

The Department of Justice’s prosecution of Google is a landmark case that could reshape how users find online information.

Google has proposed to loosen its default agreements with browser developers, mobile-device manufacturers and wireless carriers, but not to end its agreements to share a portion of ad revenue Google generates from search.

A spokesperson for Google declined to comment on Tuesday. — Reuters

Philippines drops in Good Country Index

The Philippines fell seven places to 94th out of 174 countries in the latest version of the Good Country Index (GCI), published by the government advisory firm Anholt & Co. The index measures how much each country contributes to the planet and the global population relative to its size, which is measured by gross domestic product (GDP).

Philippines drops in Good Country Index

Reinsurance seen shielding gov’t from PhilHealth cost blowouts

A CHAPEL was converted into an intensive care unit for coronavirus disease 2019 (COVID-19) patients as hospitals struggled with a surge in infections in August 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Asian Development Bank (ADB) said the government needs to consider reinsurance to mitigate the government’s exposure to healthcare costs during epidemics and pandemics.

“Reinsurance would allow for either a category of risk (such as pandemic risk) or a proportion of claim risk to be transferred out of PhilHealth’s portfolio,” the ADB said in a paper released on Dec. 24. 

It also added that reinsurance options are commercially available to limit pandemic and epidemic risk.

The ADB said among the common options for pandemics and epidemics is stop-loss reinsurance, which provides coverage when claims exceed a certain threshold, protecting PhilHealth from sudden increases in claims during such events.

“In this model, PhilHealth and the reinsurer would share proportionally in all premiums and losses from a pandemic or epidemic event,” the ADB said.

It added that reinsurance leads to pandemic risk modeling, risk-based pricing, capital relief, and more.

The ADB highlighted several advantages of reinsurance, including access to pandemic risk models, risk-based pricing, and capital relief.

At the same time, it also emphasized the need for PhilHealth to have clear coverage policies for pandemics and epidemics to manage its premiums and reserves effectively.

PhilHealth said it has P281 billion in reserves set aside to meet benefit payments for two years and P150 billion in surplus as of October.

It also had an investment portfolio of P489 billion as of November.

The ADB said while PhilHealth was able to provide policyholder benefits for coronavirus disease 2019 (COVID-19) as the result of considerable reserves, this may not always be the case and is an “unreliable method of approaching disaster risk financing.”

Social insurers often exclude coverage for pandemic-related prevention, treatment, and immunization due to insufficient data on their severity and frequency, it noted.

However, during the COVID-19 pandemic, PhilHealth was instructed to extend benefits to close the protection gap.

Last week, the bicameral conference committee stripped PhilHealth of its subsidy for the proposed budget for 2025.

In response, PhilHealth President and Chief Executive Officer Emmanuel R. Ledesma, Jr. assured that users will still have “uninterrupted access” to benefits and no reduction despite zero subsidies for next year. — Aubrey Rose A. Inosante

Negotiations with UAE on CEPA enter homestretch

REUTERS

THE PHILIPPINES and the United Arab Emirates (UAE) are in the final stages of negotiations for a Comprehensive Economic Partnership Agreement (CEPA), the Department of Trade and Industry (DTI) said.

“We are almost there, and then we should be able to get things done,” Trade Secretary Ma. Cristina A. Roque said.

“But of course, just like every negotiation, there’s going to be back and forth because it needs to be win-win for both countries,” she added.

Asked for an updated timeline, she said the goal is to conclude the CEPA negotiations next year.

“Definitely not this year. I can’t really say exactly when, but we’re just ironing out a little bit because we just started four months ago,” she said.

“Negotiations do not happen overnight; sometimes it takes years. But of course, we will try to move quickly,” she added.

She said she remains confident that investments from the Middle East will continue to flow. 

“It is not necessarily that with no CEPA, no investments will come in. Other investors want to come in because we also have the CREATE MORE,” she said, citing the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

“And we also have other incentives. So it’s not necessarily all just dependent on a free trade agreement (FTA) or on a CEPA,” she added.

The DTI has said that the Philippines was hoping to conclude negotiations for a CEPA within 2024. When asked about the delay, Ms. Roque said both sides are hoping the deal will cover a long list of products.

“Actually, there’s really no delay. It’s just that there are many products that we want to export to them … and they want to export also to us,” she said. — Justine Irish D. Tabile

PHL child poverty rates underestimated — PIDS

PHILSTAR FILE PHOTO

THE Philippine Institute for Development Studies (PIDS) said current methods of measuring child poverty tend to produce estimates on the low side, misleading policymakers responsible for resource-allocation decisions.

“The stark divergence between standard poverty measures and our individual-level estimates reveals that current methodologies may significantly understate the extent and depth of poverty, particularly among vulnerable demographic groups,” PIDS said in a report this month.

In the “Measuring Poverty within Filipino Households: Examining of Resource Sharing and Economies of Scale” study, PIDS found that child poverty rates could be up to twice as high as the official estimate of 57% in 2021.

PIDS said although the county is seeing progress in reducing overall poverty rates, “a substantial portion of child deprivation may be hidden by household-level measurement approaches.”

These underestimates particularly occur in larger households and those with complex family structures, it said.

“Gender disparities in resource allocation emerge as another critical measurement challenge,” the report found, adding that adult women’s poverty rates are consistently higher than provided by household-level measures. 

This suggests that “conventional approaches” may be “masking” significant gender-based inequalities in access to resources, it said.

Official statistics also put poverty rates at 30.0% for farmers and 30.6% for fisherfolk in 2021, while PIDS findings suggest rates ranging from 25-29% and 24-28% respectively.

“Our findings suggest that targeting mechanisms based on household-level poverty measures may be insufficient for reaching all individuals experiencing deprivation, with this inadequacy varying significantly across different vulnerable groups,” it said.

It cited programs such as the Pantawid Pamilyang Pilipino Program that may need to add “more nuanced targeting criteria” factoring in household composition and sector-specific patterns of intra-household inequality. — Aubrey Rose A. Inosante

More vape companies, small-scale contractors targeted for registration

CDC-UNSPLASH

THE Department of Trade and Industry (DTI) said it hopes to accredit 10 vape companies by year’s end.

“A lot have been accredited. We hope that by the end of the year, we will have 9 to 10 companies that have registered and complied with the DTI,” Trade Secretary Ma. Cristina A. Roque said at a briefing last week.

“What we want to happen is for them to comply and register with us, just to make sure that these vape products meet the standards,” she added.

“For vapes, most of these are imported, but the ones who distribute them locally are Filipinos who buy them from other countries,” she said.

Ms. Roque also said that the DTI is also promoting the accreditation of small-scale contractors to help them get more clients for jobs that do not require big contractors.

“We have what we call the pakyaw (small-scale contractors). So let’s say I’m a plumber, and I want to be able to do some plumbing work because not everybody needs a big contractor. Sometimes people that live in a townhouse need a plumber, painter, or mason,” she said.

She said the small-scale contractors will only need to pay P500 to be accredited by the department.

“So when they get jobs, like simple jobs, they can show that they are accredited by DTI. So it’s easy for them also to get clients from this kind of program. It’s something that we also want to promote,” she added.

Asked about updates on the draft department administrative order aimed at setting the guidelines for the registration of online sellers of consumer products under mandatory certification, the DTI said that it has been positively received by the online platforms.

“The e-commerce platforms are supportive of this. We have been doing more frequent meetings with them to polish all of the details of the proposed department order,” Fair Trade Enforcement Bureau Director Regino D. Mallari, Jr. said.

“For the smaller sellers, the DTI can assist them in complying with the requirements. It is not actually designed against them because we will support them. We are looking at those who are probably cross-border traders that are unable to have their products certified here,” he added. — Justine Irish D. Tabile

Winds of change

The world under heaven, after a long period of division, tends to unite; after a long period of union, tends to divide. This has been so since antiquity. — Luo Guanzhong, Sanguo Yanyi

As we contemplate the meaning of Christmas two millennia after our Messiah was born in a humble manger, we also come to observe that nothing is really constant except change. Over the ages, the world has experienced recurring plagues, economic upheavals, revolutions and wars, despite best efforts of the authorities to minimize or avoid them. Recently, as a response perhaps to their handling of the economy, social issues and geopolitical tensions, the Democratic party widely lost its mandate to the Trump-led Republican party in the US elections. Trump astutely rode a red wave by promising struggling Americans a brighter future, and is set to chart a widely different course when he assumes office in January.

Meantime, on the other side of the ironically named Pacific Ocean, China is also facing dire straits due to an aging population, spiraling deflation, widespread real estate bust, shrinking export markets, decoupling by western partners, and worsening diplomatic relations with neighboring countries. While the Chinese have no option to change their government now, Xi Jin Ping and the ruling Party have made some policy adjustments. Whether such is enough, however, is never guaranteed.

The Philippines is a mere a pygmy in comparison to these two behemoths, and inevitably, caught in choppy waters stirred by the two superpowers. Thus, the Philippines is not spared some economic malaise due to the weakening of China, its most powerful neighbor and trading partner, and the social and political issues that somewhat echo those of the US, with which it shares significant cultural and political ties.

Nonetheless, as the roll of the dice would have it, the Philippines has a young and dynamic population, a consumption-led and demand-driven economy, and a democratic government that allows it to be more resilient in the face of changes. And these may be the reasons why the country is not only surviving, but apparently still growing — like the proverbial bamboo, Filipinos continue to sway, buckle and spring forth time and time again in the face of repeated difficulties or disasters. And, while not to the liking of many, Filipinos can also change sides easily, like a balimbing.

However, I believe that those very traits, while making the Philippines resilient, do not contribute much to the country’s development. Historically, the country has only made very slow and painstaking gains, while any further progress appears to be even more daunting and difficult.

The national debt has now reached P15.89 trillion, and despite the government’s attempts to manage its deficit levels, the Philippine budget gap is expected to grow to 5.9% of the gross domestic product (GDP) next year, according to BMI Research. And while this is still manageable, the country will continue to be hounded by persistent inflation, and available resources and funds for critical investments and infrastructure will become even more scarce and difficult to secure.

Hurdling these constraints is a huge and difficult challenge. At the same time, the dangers of a geopolitical storm carrying the Philippines along with it cannot be understated as well. Great powers are not only dangerous at their peak, but even more so when declining. Examples are not only numerous, but almost repetitive: Spartans, Persians, Romans, Mongols, Dutch, Spaniards, British, Germans, Japanese, and Russians, among others, embroiled others in ruinous competition or wars as their powers waxed and eventually waned. Now it is the turn of the US and China, as the US struggles to keep its strength and prosperity, while China desperately scrambles to uphold the dream of Great Power status it has painstakingly cultivated for decades.

For the Philippines, it will take much prudence, effort and determination, not only on the part of its leaders, but also its citizenry, to face these challenges and threats. Even as a small country, we can husband limited resources by avoiding waste, division and corruption to the extent possible. We can ill afford internal conflict, which not only stymies peace and development, but also weakens the country before the eyes of everyone else.

Every new year offers a fresh start, and I believe that despite existing disadvantages, Filipinos possess innate patience, talent as well as steadfast faith in the Almighty. These qualities will help steer our course for a better future. Ultimately, it is our daily choices — and our electoral decisions — that determine whether we merely survive, or thrive amidst the winds of change.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Jaffy Azarraga is a director at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

jaffy.y.azarraga@pwc.com

Quiambao files visa paperwork to join KBL

KEVIN QUIAMBAO — UAAP/JULIUS DOMONDON

KEVIN QUIAMBAO, the UAAP MVP from La Salle, has officially filed his visa application ahead of his stint in the Korean Basketball League (KBL).

Mr. Quiambao processed his papers at the Korea Visa Application Center in Bonifacio Global City, signaling the start of his journey from Taft to the Goyang Sono Skygunners in the KBL.

The 23-year-old forward will spend the holidays with his family in the Philippines before traveling to South Korea after the New Year to join the Skygunners’ training camp.

Mr. Quiambao last week announced his decision to leave La Salle and go pro in South Korea, a move that has been in the works since last year when he towed the Green Archers to the UAAP Season 86 championship.

He has two more years of playing eligibility in the UAAP, but Mr. Quiambao opted to try to spread his wings overseas, with the ultimate goal of making it to the NBA.

In Taft, Mr. Quiambao captured back-to-back MVP honors plus a Finals MVP citation in Season 86. La Salle eventually surrendered its throne after a tough 66-62 defeat in Game 3 of the UAAP Season 87 finals against the University of the Philippines (UP) Fighting Maroons.

That duel was witnessed by 25,248 fans — the biggest crowd in UAAP basketball history — a fitting swan song to his illustrious collegiate career, even in defeat.

The KBL rookie class from the Philippines includes UAAP Finals MVP JD Cagulangan of UP, who signed with Suwon KT Sonicboom.

Also serving as imports in South Korea are his Gilas teammate Carl Tamayo, reigning KBL MVP Ethan Alvano of Wonju DB Promy, SJ Belangel of Daegu KOGAS Pegasus and Miguel Oczon of the Ulsan Mobis Hyundai Phoebus.

Completing the list are Javi Gomez de Liaño of the Anyang Jung Kwan Jang Red Boosters, his younger brother Juan of the Seoul SK Knights, Justin Gutang of the Seoul Samsung Thunders and Calvin Epistola of the reigning KBL champion Busan KCC Egis. — John Bryan Ulanday

Innovation, change on the horizon in new sporting year

LONDON — As a jam-packed sporting year featuring a much-praised Olympic Games and four continental football tournaments rolls to a close it is tempting to expect that 2025 will be a more sedate one.

But that is not the nature of a sports industry continually evolving to sate the thirst of a demanding public that seemingly can never get enough of their chosen product.

What is becoming increasingly clear is that tradition and maintaining the status quo no longer cuts it in a competitive world intent on wringing every dollar out of sporting endeavors.

Novel ways of delivering sport to a high-tech generation are now paramount and the Christmas decorations will hardly have come down before golf, arguably the most conservative of all sports, welcomes the aptly-named Tomorrow’s Golf League (TGL), which kicks off in Palm Beach in January.

Created by Tiger Woods and Rory McIlroy, the new made-for-TV indoor team format featuring state-of-the-art golf simulators and shot clocks resembles a cross between an arcade game and crazy golf. However, the world’s best are on board for a venture designed to hook a generation of fans who no longer have the time or patience to watch five-hour rounds.

“The most interesting and fun aspect about TGL is the fact that it is an arena and you get to see us up close and personal,” American Wyndham Clark said. “We’re mic’d up, you’ll see our personalities. It’s almost a totally different sport.”

Golf ended the year with a contrived showdown between PGA Tour players and those of the Saudi-backed LIV Golf circuit in Las Vegas. Looking ahead, in September, American Ryder Cup players will, for the first time, be paid to take on Europe when the bi-annual clash takes place in New York.

Other sports will also see big changes in 2025 — a year lacking the biggest global showpiece events but still busy.

Football, in which its marquee names rarely have time to draw breath, will add to the load with an expanded 32-team FIFA Club World Cup in June and July in the US.

While it has many critics, it will certainly be a tournament that, unlike previous editions, will be hard to ignore.

Tennis, too, is moving into the future at pace with tradition making way for innovation and the need to capture market share in an increasingly saturated landscape.

Who would ever have thought Wimbledon, of all places, would get rid of line judges from its lawns in favor of Hawkeye technology and computer-generated voices? But that is what fans will witness at the All England Club this year.

In athletics, a blue-riband sport which often struggles to attract eyeballs outside of Olympic years, American great Michael Johnson is launching a lucrative Grand Slam Track league in April with a $12.6-million prize fund split over four events — but not including any field events.

“We’re revolutionizing the track landscape,” said four-time Olympic champion Johnson.

In a non-Olympic year, the movement faces a pivotal year all the same as the International Olympic Committee elects a new president to replace Thomas Bach in March.

Whichever of the seven candidates wins will need to steer the Olympic juggernaut into an increasingly fractured world of geopolitics, climate change, gender issues and doping.

Saudi Arabia’s insatiable appetite to keep shaping the sporting map is unlikely to diminish any time soon and many will see the kingdom’s staging of the inaugural Olympic Esports Games next year as a precursor to a future bid for the real thing.

Tennis kicks things off in 2025 with the Australian Open in January — a tournament that will unfortunately have to deal with the fallout of anti-doping cases involving men’s champion and favorite Jannik Sinner of Italy and Poland’s Iga Swiatek.

Women’s football takes center stage in July with the European Championship in Switzerland with England aiming to retain the title, while September offers the world athletics championships in Japan and the Ryder Cup golf in the US.

Rugby fans have a Lions series in Australia starting in June to look forward to, while in cricket England hosts a five-test series against India before another eagerly-awaited Ashes series Down Under.

New Orleans stages NFL’s Super Bowl in February and in Formula 1 another marathon season revs up in Melbourne in March. — Reuters

Tennis in good hands despite retirement of greats Federer, Nadal, Williams, United Cup director says

THE RETIREMENTS of tennis greats Roger Federer, Rafa Nadal and Serena Williams have made promoting events more difficult, but organizers must grab the opportunity to push new talent into the spotlight, the United Cup’s tournament director said.

The $10-million mixed team event aims to do just that when it kicks off the new season Friday, with tournament chief Stephen Farrow confident the sport is in good hands.

“It’s true to say that from a promotional standpoint, it’s very easy if you’ve got Roger Federer or Rafa Nadal turning up,” Farrow told Reuters after the draw for the 18-team tournament was held in Sydney recently.

“You’re talking about people who are absolute superstars of the sports arena… with those guys moving on, it does make it a bit more difficult to promote and tell the story of the athletes playing the event.

“I always see that as a positive, because it’s on all of us in tennis to tell the story of this new talent.

“We’ve got a lot of them playing the United Cup. They’re incredibly exciting and captivating to watch. I’m not worried about the future.”

Grand Slam contenders Alexander Zverev, Taylor Fritz, Iga Swiatek and Coco Guff will all be in action for their countries at the Dec. 27-Jan. 5 tournament staged in Perth and Sydney as they prepare for the Australian Open starting on Jan. 12.

Farrow also said the United Cup was still building its brand and boosting awareness with fans and players.

“Last year we saw a really big step forward when we moved to a new format with one women’s singles, one men’s singles and one mixed doubles. It was incredibly competitive.

“Now we’ve established ourselves on the tennis calendar two weeks from the Australian Open. We’ve seen with the field this year that players want to play this event.”

Spain takes on Kazakhstan while China meets Brazil on the opening day in Perth. — Reuters

Man City’s poor form is on everyone, not just Haaland, Guardiola says

MANCHESTER CITY’S dismal run of form, with one win in eight Premier League games, is down to the whole team and not one player, manager Pep Guardiola said, with struggling striker Erling Haaland not to blame.

City’s current streak, which leaves the champions seventh in the standings and 12 points off leaders Liverpool, coincides with Haaland scoring just twice, after the Norwegian netted 10 times in their opening five games.

“It’s about us, it’s not just about one player,” Guardiola told a press conference ahead of Thursday’s game with Everton.

“So when in the past we scored goals and Erling was so prolific in helping us, it’s because of the team. And when you have problems at the back, in the middle, it’s for everyone.

“If it was just one player, the reason why, it would be easy. It’s not about that. Erling is so important for us, will be so important for us, has been, and we try to do the things better, to use him better.”

Guardiola is still uncertain if John Stones, Matheus Nunes or Ederson will be fit when City hosts Everton, and while the coach was unable to pinpoint a single reason for their poor run, he was optimistic of a return to form in the near future.

“All the tendency to say we don’t run, we don’t fight, the reason why is this one, this situation or this player or this manager or this,” Guardiola said.

“It’s not about that. It’s many little details or big details that all together make us not as good as we were.

“But we have another opportunity on Boxing Day to try and win time for the players to come back and in a certain time we’ll be better.”

Everton may be 15th in the standings, 11 points behind City, but they do have a better defensive record than Guardiola’s side, and have kept five clean sheets in their last six games.

“Sean Dyche always has a really good defensive structure, really good patterns defensively, offensively,” Guardiola said.

“And when they are able to do it against Arsenal and Chelsea, that means they are really good because they have good transitions and of course at set-pieces, long balls, they are really, really strong.”

While City players will have some time with their families over Christmas, with the team playing on Dec. 26, there are sacrifices to be made.

“We train today, we train tomorrow night. We stay over here and we are going to play on Boxing Day,” Guardiola said.

“Today we’ll be at home with the families and tomorrow we’ll be with the families during the morning and the night we’ll be here.

“Hopefully they want to be here because it’s our job and our duty.” — Reuters

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