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China's Xi denounces 'protectionism, isolationism and populism'

Chinese President Xi Jinping Thursday lambasted “protectionism, isolationism and populism” and again vowed to open up Asia’s largest economy, as Beijing faces an escalating trade dispute with the United States.
Xi told a gathering of foreign business executives that after “signs of stability and improvement in the world economy” last year, “we must also stay vigilant because … we have seen a surge of trade protectionism, isolationism and populism”.
The leaders of mining giant BHP Billiton, German carmaker Volkswagen and British conglomerate Swire were seen at the meeting according to images from Chinese state television.
Trade relations between Beijing and Washington risk descending into all-out conflict, with US President Donald Trump having threatened to impose tariffs on almost all of Chinese exports to the United States.
Without mentioning the Trump administration, the Chinese president condemned “Cold War mentalities and zero sum games” where exporting countries are seen as the only winners of trade exchanges.
“The peace and development of the world faces more and more severe challenges,” Xi cautioned.
China’s head of state also reiterated his promises of economic openness made in April at the Boao Forum for Asia, the “Chinese Davos”, where he promised to accelerate the opening up of the Chinese financial sector.
In spite of Beijing’s conciliatory tone, Western companies complain about unfulfilled pledges and a tough business climate in the country due to factors such as internet censorship and unfavourable regulations.
In a survey released Wednesday by the European Union Chamber of Commerce in China, nearly half of European firms said it had become “more difficult” to do business in the past 12 months.
And a fifth said they have been victims of forced technology transfers, a practice denounced fiercely by Washington as it carries out a probe on the issue while threatening tariffs in retaliation. — AFP

Easy as A, B, Xi: China gives economic lessons to North Korea

Chinese President Xi Jinping has coached his North Korean counterpart Kim Jong Un on high-stakes diplomacy. Now he seems poised to give the young autocrat another lesson: how to reform a state-controlled economy while keeping an iron grip on power.
Beijing has long pushed for Pyongyang to adopt similar measures to those that fuelled China’s dizzying ascent from a communist backwater to one of the world’s largest trading powers.
But while the highly secretive, nuclear-armed North has been quietly carrying out economic reforms for some time, officially it still promotes the merits of its system and denounces the evils of capitalism.
In recent months, as relations between China and North Korea have experienced a renaissance, Kim has transformed from a recalcitrant and standoffish troublemaker to Xi’s eager pupil.
The shift followed a decision by Beijing to back UN sanctions banning imports of coal, iron ore and seafood from its unruly neighbour, after years of hushed diplomacy failed to convince the North to stop its nuclear and missile tests.
It didn’t take long for Kim to change his tune: he made his first visit as leader to his country’s sole major ally in March, quickly followed by two more trips, during which he toured Chinese tech and science hubs.
Kim, who is in his mid-30s, seemed eager to learn: Chinese state media has been filled with images of the attentive leader taking copious notes during his meetings with Xi.
“We are happy to see that the DPRK (North Korea) made a major decision to shift the focus to economic construction,” Xi told Kim in their most recent meeting Tuesday, according to state news agency Xinhua.
“China is ready to share its experience” with Pyongyang, Xi said the next day.
China as a model
China’s “reform and opening” under Deng Xiaoping in the 1980s started an economic boom that has made it the world’s second-largest economy and a crucial driver of global growth.
Despite pressure from Beijing to follow its example, in public Kim had appeared resistant, in 2016 decrying “the filthy wind of bourgeois liberty and ‘reform’ and ‘openness’ blowing in our neighbourhood”.
But in practice he has brought in limited changes, from allowing private traders to operate in informal markets to giving state-owned enterprises some freedoms to operate, and turning a blind eye to private company operations.
Having completed the development of his atomic arsenal, Kim announced in April that his priority was now “socialist economic construction”.
A delegation from his ruling Workers’ Party of Korea visited Beijing in May to learn about economic reforms.
At a historic summit with US President Donald Trump in Singapore last week, Kim expressed his commitment to the denuclearisation of the Korean peninsula — and Washington is offering him sanctions relief if he gives up his weapons.
The summit also saw Kim take the opportunity to explore the affluent city-state, with images of his visit to an expensive hotel, casino and other tourist sites widely distributed by North Korean media.
The visit bore “a certain historic resemblance” to a 1979 trip by China’s then-leader Deng to the United States as the country stood on the verge of economic reform, said Zhao Tong, North Korea specialist at the Carnegie-Tsinghua Center in Beijing.
Deng was able “to see for himself the successful development of western countries”, said Zhao, who predicts that North Korea has now reached its own major turning point.
Afraid of collapse
Before leaving Beijing on his latest visit this week, Kim toured an agricultural technology park and a rail traffic control centre.
“It looks like this trip is aimed at studying China as a model for economic development post-denuclearisation,” said Koh Yu-hwan, professor of North Korean Studies at Dongguk University, pointing to the attendance of Pyongyang’s chief economic officer Premier Pak Pong Ju.
The collapse of the Soviet Union in the early 1990s has so far deterred North Korea from opening up its economy as much as China would like.
But Beijing has spelled out to North Korea that it believes its economic success was achieved thanks to the help of a stable Communist regime.
“China has been saying to North Korea for years that it’s possible to maintain a one-party regime while opening up to the outside world,” said China expert Jean-Pierre Cabestan of Hong Kong Baptist University.
Xi’s tightening grip on power since coming to power in late 2012 — with a lack of organised opposition and the use of surveillance technology to keep tabs on the population — will likely help reassure Kim, Cabestan said.
Despite its fear of failure, “at the moment there is no other option” for North Korea other to open up, said Zhu Feng, international relations professor at China’s Nanjing University.
However a prosperous South Korea complicates the situation for the North, which may fear being swallowed up by Seoul economically if they reunify, as happened to the former East Germany, Cabestan said.
For the time being, Pyongyang’s official line remains the same.
Capitalism “is a corrupt society rushing headlong into its doom”, the state-run Rodong Sinmun newspaper wrote last week.
— Patrick Baert, AFP

Vibrant than ever

Comprising the provinces of Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales, Central Luzon plays a huge role in the Philippine economy. It remains the biggest producer of rice, the country’s most important staple crop, hence its “Rice Granary of the Philippines” title. But the region’s economy has become more diversified, thanks to developments like the economic zones in Clark and Subic, both in Pampanga.

According to the National Economic and Development Authority Regional Office 3 (NEDA 3), the gross regional domestic product (GRDP) of Central Luzon grew 9.3% in 2017. Though the rate was slightly lower than the 9.5% posted in 2016, the agency noted in an April press release that it was still the third highest among the regional economic growth rates in the country. Furthermore, Central Luzon contributed 0.6 percentage point to the country’s 6.7% GDP growth rate last year.

“All three economic sectors namely Agriculture, Hunting, Forestry and Fishing (AFF), Industry and Services and all sub-industries except Mining and Quarrying posted positive growths. NEDA 3 keenly awaited the 2017 GRDP estimates because historically, GRDP growth in the region tended to be much lower a year after a high growth is recorded,” the agency said.

But when the estimates finally came in, the agency was pleased that the region was able to sustain a high growth, despite it being a few percentage points lower this time. “Further, the 2017 growth remains higher than the national growth rate of 6.7%. The region is even steadily increasing its share of the country’s GDP from 9.7% of the country’s GDP, up from 9.5% in 2016 and from 9.3% in 2015,” the agency said.

“Central Luzon is thus realizing its role of becoming the primary contributor to the country’s economy.”

The region’s 9.5% GRDP growth rate exceeded the upper-range target of 6.9% set by NEDA 3’s Central Luzon Regional Development Plan (CLRDP). This plan, which covers the years from 2017 to 2022, follows the Philippine Development Plan 2017-2022, a blueprint for the country’s development under President Rodrigo R. Duterte’s administration.

NEDA 3 said the plan also has targets for poverty reduction and employment rates to see if economic growth truly benefits the vulnerable segments of the population. “In terms of employment, the PSA estimated that the region’s employment rate in 2017 was 93.4%, which is a slightly lower than the target 93.7% set for the year,” it said.

As the implementation of major infrastructure projects planned for the region starts, more jobs are expected to be created. One such project, the agency noted, is the 9,450-hectare development of New Clark City in Tarlac. Part of this is the development of a 200-hectare Administrative Center where a number of government offices will be located.

“The Department of Transportation (DoTr) Central office has already relocated in Clark. Secretary Mark A. Villar of the Department of Public Works and Highways (DPWH) recently stated that the agency will soon follow the lead of DoTr, and more agencies are expected to tag along,” NEDA 3 said.

A 20,000-seater athletics stadium and a 2,000-seater aquatics centers are already being constructed in the New Clark City. “These will serve as venues for the athletics and water sports during the 30th Southeast Asian Games which will be hosted by the Philippines in 2019. In addition to Clark, Subic and Bulacan are also going to be venues for the SEA games,” the agency said.

Another infrastructure project that the region will see is the Manila-Clark railway. The groundbreaking for the said project was held early this year in Marilao, Bulacan. Meanwhile, the feasibility study of the Cavite-Corregidor-Bataan Interlink Bridge to strengthen the connectivity and economic agglomeration between Central Luzon, Metro Manila and CALABARZON, the agency said, was being undertaken by DPWH.

“Flood management and vulnerability reduction programs will be vigorously pursued to protect existing assets from the destructive forces of nature, and to strengthen the overall resiliency of the region,” NEDA 3 added.

When it comes to poverty, NEDA 3 noted that an update to Central Luzon’s poverty incidence of 11.2% will not be available until next year. “However, the very good economic performance of the region in 2016 and 2017 and the jobs generated by the various infrastructure projects, suggest that poverty rate had likely lowered to the CL-RDP target 10.6 percent in 2017,” it said.

In addition to the abovementioned developments, Central Luzon managed to ramp up its palay production by 8.73% from 3.34 million metric tons (MT) in 2016 to 3.63 million MT in 2017, according to data from the Philippine Statistics Authority (PSA). In the final quarter of 2017, which saw palay production reach 7.32 million MT (which was higher than the 7.01 million MT recorded in the same period of 2016), Central Luzon bested all other regions in terms of incremental increase in production.

“The regions that contributed significant increments in production were Cagayan Valley (2.40%), Central Luzon (3.15%), Bicol Region (0.74%) and Central Visayas (0.59%),” PSA said in a January release. The agency noted that one of the factors to which the increases in output were attributed was the increased yield in Central Luzon resulting from the use of better seeds, close monitoring of pests and diseases and sufficient water supply.

Pampanga: A beacon of Philippine culture, history, economy

As Metro Manila struggles with the country’s continued economic growth, developments of another kind are happening in Pampanga. As one of the areas included in the government’s massive Build, Build, Build infrastructure program, the culinary capital of the Philippines is having a turn at the spotlight.

Billions of pesos from the public and private sectors are surging into the Clark Freeport area, from the construction of additional property estates, to the various attractions, recreational venues, and local businesses that have popped up in anticipation of the Clark International Airport’s expansion.

The Clark International Airport New Terminal Building had begun construction in the fourth quarter of 2017 and is slated for completion in 2020. The goal of the project, under the government’s infrastructure plan, is to provide a new mass transport system to help solve congestion in the country’s main urban centers, and create interconnectivity in the whole archipelago. Other infrastructure projects in the area include the Manila-Clark Railway and the Subic-Clark Railway.

New Clark City, a planned community in Capas, Tarlac, is rising up to be a national cultural beacon and could become a key destination in the ASEAN region, as the main host of the 2019 Southeast Asian Games. Also one of the big ticket projects of the Build, Build, Build program, New Clark City upon completion will be the country’s first smart, green and disaster-resilient city. It will feature a mixed use area consisting of residential, commercial, agro-industrial, educational institutions, and information technology developments.

Key infrastructure developments in Clark are boosting Central Luzon’s gross domestic product (GDP). According to the Bases Conversion and Development Authority (BCDA), the government body in charge of the area’s development, Central Luzon’s economic output grew to 9.3% in 2017, almost 3% higher than the country’s GDP of 6.7% for the same year.

Foreign investors are looking in, and international names like the Marriott Hotel, Sunvalley Hilton, and Aqua Planet are shaping the future landscape of Clark Freeport.

According to a statement by BCDA, Central Luzon business chambers are attributing the growth to the high-impact projects like New Clark City, the Clark International Airport, the Manila-Clark Railway and the Subic-Clark Railway.

“I commend the Duterte administration for making Clark a part of the country’s economic strategy as the region has been experiencing an influx of new businesses and investments for the past five years,” Pampanga Chamber of Commerce and Industry, Inc. President Jess Nicdao said.

Mr. Nicdao also noted the huge potential of Clark International Airport as a major gateway with the passenger capacity expected to increase to 8 million a year upon completion of the new terminal building.

“Passengers coming from north of Metro Manila are using the airport as it is more convenient compared to the Ninoy Aquino International Airport,” Mr. Nicdao said.

Elsewhere in Pampanga, local developers are rushing to keep up with the demand for new properties located in the river province. Pampanga’s potential as a national economic powerhouse is creating a demand for residential and commercial spaces that real estate developers like Filinvest, SMDC, and Megaworld are loathe to pass up.

Among them, properties like Ayala Land’s Alviera, a 1,125-hectare integrated township located in the municipality of Porac; Century Properties’ The Resort Residences at Azure North, a 8-hectare mixed-use development in line with its Azure Urban Resort concept in Parañaque; Vista Land’s Camella Homes project, which continues to build communities throughout the province, are giving Filipinos the incentive to leave the hectic life of Metro Manila behind in favor of Pampanga’s distinctive allure.

Historically, Pampanga has always been an important province to the country. During the Spanish regime, it was one of the richest Philippine provinces, functioning as a trading hub for Manila and its surrounding region. Kapampangan agricultural, fishery and forestry products as well as on the supply of skilled workers were abundant. It also played a key role for the Americans during their occupation, and even served as a critical base of operations during the second world war.

A province of rich history and culture, Pampanga still holds the prestige as home to some of the Philippines’ most prominent people. From presidents like Diosdado Macapagal, and his daughter, Gloria Macapagal-Arroyo, to artists like acclaimed movie director Brillante Mendoza and esteemed singer Lea Salonga, the province has given the Philippines so much of its identity. Despite all this, as more attention is given to it and the more it grows as a center of economic activity, clearly Pampanga can still offer much more. — Bjorn Biel M. Beltran

Empowering Filipinos financially

Some would frown upon hearing about multi-level marketing, which is usually confused with scams or fraudulent schemes. However, these kinds of businesses — along with network marketing and direct selling — are accepted as a legitimate sales and marketing method, which have financially empowered many individuals regardless of economic stature throughout time.

Multi-level marketing is usually defined as a mode of business wherein products are directly marketed or sold to consumers instead of the traditional way of selling products from a fixed retail location.

Reports indicate that in recent years, direct selling has gained a strong foothold in the country as a retail option. In fact, citing a 2016 report from Euromonitor International, the Direct Selling Association of the Philippines (DSAP) noted that direct selling in the Philippines continues to grow as more Filipinos from the lower-income segment — which holds a large share of the population — choose to purchase products from this channel due to the availability of installment payment schemes and familiarity of consumers towards sellers, which are usually relatives or close friends.

DSAP further cited the report and said that there is also a notable percentage of the population who were encouraged to enter direct selling and become sales agents because of the minimal start-up requirements and the limitless profits and opportunities that they can gain from it.

Separate media reports noted that direct selling is one of the major alternative sources of income or as a means of augmenting finances for some, especially among women. It is also said that one of the advantages in direct selling is its flexibility — allowing individuals who are either employed or unemployed to earn extra income at their own pace and time.

Moreover, it is said that Filipinos opt to be involved in this industry because it doesn’t require business experience or high educational background.

Apart from the income-generating opportunities and financial success multi-level marketing and direct selling presents, individuals who engage in the business also have the opportunity to be mentored and trained by companies involved in the industry.

According to some  companies, they invest in harnessing the potential of its members by developing their personality, entrepreneurial skills, and leadership skills among others.

DSAP, for example, made initiatives in educating the public about direct selling through various programs as indicated in the association’s Web site. DSAP said that as service to its members, they invite speakers from related fields to help them benchmark against other industries.

In a larger perspective, DSAP reportedly said that as membership in direct selling grows, these sellers generate income for themselves, pay taxes, and generate employment — thus contributing to the development of the country.

Meanwhile, the future of direct selling in the country seems to have a healthy outlook. According to a 2018 report by Euromonitor, direct selling continues to allure Filipinos who aim to better themselves.

“Direct selling seeks to exploit the market potential through a network-centric business model, often with an emphasis on health and beauty products. The prevalence of underdeveloped retail markets and the growing obsession with health amongst women make direct selling alluring to Filipinos who are looking for economic power, and those looking to better themselves via self-improvement.”

Avon Cosmetics, for example, as cited by Euromonitor, can reach far-flung provinces, beating even the expanding reach of shopping centers and online retailing in the Philippines.

On the other hand, the report continued to note that companies selling products related to wellness is seen to benefit from the rise in concern for healthy living. Euromonitor noted that a recent Asia Pacific Sports Nutrition Survey reported that seven out of 10 Filipinos consumed some form of supplement in the last six months.

Meanwhile, separate reports indicate that direct selling is thriving despite the rise of e-commerce and convenient online shopping as Filipino consumers continue to trust products that are recommended by families and friends.

While network marketing or direct selling creates boundless opportunities, companies warn of fraudulent schemes like pyramiding that disguises as legitimate direct selling enterprises.

DSAP defines pyramiding as an illegal money scam often confused with legitimate network marketing plans, where people are convinced to pay money for a chance to profit from the payments of others who might join later.

But, how to differentiate legitimate ones from the frauds? Experts say that pyramiding usually involves entities primarily earning by recruiting other people with the latter paying registration fees to join the pyramid scheme.

DSAP, on the other hand, suggested to consider some factors first before joining a multi-level marketing or direct selling company. The association advised to consider if companies have a product and that these products have fair market value, or if there is a reasonable product return policy among other factors to make sure that the enterprise you are joining is legitimate. — Romsanne R. Ortiguero

Turning potentials into successes

Network marketing or multi-level marketing (MLM) remains a popular business model today but is anchored with an undesirable reputation. Many people often associate the word “scam” to this strategy as many pyramid schemes attempt to present themselves as legitimate MLM businesses. The bad image of this strategy makes it harder for many distributors and MLM companies to get ahead and be successful.

There are several ways to succeed in the world of direct selling such as building self-confidence, developing excellent communication skills, and creatively introducing the products to the others. But before distributor gets this far, it must actually start with an understanding on what network marketing is and how to properly look at it.

According to Don Teague, an online marketer based in United States, a distributor must understand that network marketing is a business opportunity and not a get rich quick scheme.

“Any network marketing opportunity should be considered a business opportunity and not a get rich quick scheme. Any reputable opportunity is going to take hard work. If it were a ‘simple’ way to get rich quick, would anyone really tell you about it? You should also treat anyone whom you may do business with as a potential business partner. The only way to be successful in network marketing is to have a network of trusted alliances, who can help build your business foundation,” Mr. Teague said.

And since many people see network marketing and a pyramid scheme as the same thing, a distributor must know its difference. Mr. Teague cited an excerpt from a statement made by the Federal Trade Commission, an independent agency of the US government that protects consumers and promotes competition, to show the discrepancy of the two.

“Multi-level marketing programs are known as MLM’s, and unlike pyramid or Ponzi schemes, MLM’s have a real product to sell. More importantly, MLM’s actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales,” the excerpt reads.

In the Business Reference Guide of Amway Corporation, the world’s top direct selling company, Amway presented tips to succeed in MLM business.

“Building a balanced business requires three components: use the products yourself so you get to know them better, sell the products to customers, and help new IBOs (Independent Business Owners) to do the same,” Amway said.

The company explained that product sales are the key to earning money, so an IBO should think of the products the customers would likely order again and again by experiencing it firsthand.

“Product experience is the best tool,” Amway said, noting that being familiar with the products help an IBO talk about the products with confidence and make it easy to sell to customers. “Share your favorites, and friends and family will likely be interested in buying them too,” the company added.

After becoming familiar with the products and introducing them to customers, the last key to succeed in MLM, according to Amway, is to build for profitability. This can be achieved by expanding the business and sharing the MLM opportunity through sponsoring others.

In the case of Amway, the IBO may earn monthly performance bonuses based on its sales, as well as on the monthly and annual leadership bonuses based on the sales of downline IBOs.

These tips are actually the structure to stride the ladder of success in MLM, and it still depends on the capacity of an IBO or distributor to get through it, specifically in selling the products and building the network.

Social media seems like an obvious choice for marketing; there is Twitter and Facebook. But as Mr. Teague explained, there are still other social networking sites and there is a best way to post content over these 50 websites at once.

“Sure, you know about Twitter and Facebook. However, did you know there are over 50 different websites that could be considered a social network site?” he said. “OnlyWire.com will allow you to post your content to 50 social networks through one easy platform.”

Blogs are another great tool to build network marketing opportunity. However it takes work to build a blog, with one of the most important factors being regularly updated quality content, Mr. Teague said. In this matter, consider automating the posts through software packages that have the ability to schedule posts, and have them go ‘live’ on the site at preferred date and time.

Another tip for building network marketing business is webinars. Mr. Teague explained that a webinar is a great way to share your message with a large group of people at one time. “You could hold a webinar each week with continually updated content, which would keep people coming back for more if your content is valuable,” he said. — Mark Louis F. Ferrolino

Koreas discuss reunions for war-separated families

North and South Korea on Friday held Red Cross talks to discuss resuming reunions for families separated by the 1950-53 Korean War, the latest step in the diplomatic thaw on the peninsula.
Millions of people were separated during the conflict that sealed the division between the two Koreas nearly 70 years ago.
Most died without having a chance to see or hear from their relatives on the other side of the border, across which all civilian communication is banned.
The resumption of the family reunions — last held in 2015 — was one of the agreements reached between North Korean leader Kim Jong Un and the South’s president Moon Jae-in at their landmark summit in April.
Only about 57,000 people registered with the South Korean Red Cross to meet their separated relatives remain alive, most of them aged over 70.
Even if reunions are arranged, only 100 participants from each side will be selected.
For the lucky few chosen to take part, the experience is often hugely emotional, as they are given only three days to make up for decades of time apart, followed by another separation at the end, in all likelihood permanent.
“Let’s make the meeting a success by conducting it from a humanitarian perspective,” said the South’s chief delegate Park Kyung-seo, as he began discussions at North Korea’s scenic Mount Kumgang resort.
Pak Yong Il, Pyongyang’s chief delegate, responded: “The fact that the North and South are holding the first Red Cross talks in our famous Mount Kumgang is meaningful in itself.”
The reunion programme began in earnest after a historic inter-Korean summit in 2000 and they were initially held annually, but strained cross-border relations have made them rare.
Pyongyang has a lengthy track record of manipulating the divided families’ issue for political purposes, refusing proposals for regular reunions and cancelling scheduled events at the last minute.
North Korea has previously demanded it will not agree to family reunions unless Seoul returns several of its citizens, including a group of waitresses who defected from a restaurant in China. — AFP

YouTube offers creators new ways to earn money

YouTube, often criticized for not compensating creators well enough, will allow them to set up paid channel memberships, the company said on Thursday.
Currently the vast majority of revenue at the Google-owned service comes from advertising and that will remain a focus, said Neal Mohan, YouTube’s chief products officer.
“But we also want to think beyond ads. Creators should have as many ways and opportunities to make money as possible,” he said.
Viewers will pay $4.99 a month for channel memberships giving them access to exclusive content including livestreams, extra videos or shout-outs on channels with more than 100,000 subscribers.
Creators will also be able to sell merchandise like shirts or phone cases directly on their channels, the company said.
YouTube returns a small part of its advertising revenue to content creators who regularly accuse the platform of giving them only crumbs.
The site is facing increasing competition from other platforms using more and more video.
YouTube says it has more than 1.9 billion users but the figure only counts those who log in via their accounts. — AFP

Most mines pass review — MICC

THE MINING INDUSTRY Coordinating Council (MICC) cleared 23 of the 27 mines that were reviewed for compliance with state regulations, reducing uncertainty about potential supply disruptions at the world’s no. 2 nickel ore supplier.
“Four failed out 27,” Finance Undersecretary Bayani H. Agabin said in a press briefing on Thursday when asked about findings of the review team.
However, Mr. Agabin said that the findings may still be subject to change.
The mines were assessed on various criteria, including legal, technical, economic, social and environmental compliance, Mr. Agabin said.
He did not identify the four miners that failed the review, saying only that they were “large-scale mines” engaged in extracting nickel and chromite.
Danilo U. Uykieng, assistant director at the Mines and Geosciences Bureau, confirmed that the findings were not final.
The economic aspect of the review is not fully covered, Mr. Uykieng said, and the number of those who failed could increase or decrease.
All findings are also subject to a final decision by the office of President Rodrigo R. Duterte and the Department of Environment and Natural Resources (DENR).
The panel will meet again in the last week of July, Mr. Agabin said.
The review began in March, a little over a year since former Environment Secretary Regina Paz L. Lopez in February 2017 ordered to either close or suspend 27 of the country’s 41 metallic mines due to environmental violations, especially for being located in watersheds.
Mr. Agabin said the MICC did not explicitly recommend whether the mines should be closed.
“What was done is a review pursuant to the mandate of EO 79 to review the operations of mining companies,” he said, referring to the executive order signed in 2012 that formed the MICC and ordered a halt to the approval of new mining permits until the government, by law, gets a bigger share of mining revenues.
The legal aspect of the review verified whether the mining firms had secured required permits to operate a mine, while the environmental component looked at rehabilitation efforts, and the social component checked whether mining firms’ social development programs were “properly timed and redound the benefit of the community.”
The technical aspect meanwhile assessed firms’ capitalization, while the economic aspect covers contribution of total mining operations to the host community.
Mr. Agabin said that after the review team concludes its review, the findings will be circulated to the 29 members of the MICC for comments, and will have another meeting “by the fourth week of July.”
“The MICC is a recommendatory body. Depending on the action of the MICC it may accept it, approve it, and resolve to submit it to the DENR and the Office of the President,” he said.
Mr. Agabin added that the MICC will next review the rest of the country’s mines.
President Rodrigo R. Duterte began his term in July 2016 with a vow to put a stop to mining practices that damage the environment, and has since been vocal in his opposition to open-pit mining that is otherwise allowed by law.
There are 50 operating mines in the Philippines, 30 of which extract nickel ore.
Indonesia has been the top nickel ore supplier so far this year after Jakarta relaxed an ore export policy. — Reuters and Elijah Joseph C. Tubayan

Construction at major state projects set to begin

CONSTRUCTION WORK for at least nine of the 75 key large-scale infrastructure projects of the Duterte administration is set to begin next semester.
Department of Finance (DoF) data show that projects moving to the construction stage include the P4.61-billion Binondo-Intramuros bridge and the P1.37-billion Estrella-Pantaleon Bridge in Metro Manila, both of which are funded by China grants.
The list also includes the China-funded P4.37-billion Chico River Pump Irrigation Project and the P35.26-billion Tagum- Davao-Digos segment of the Mindanao Railway Project.
The Panguil Bay Bridge Project worth P4.86 billion financed by Korea official development assistance (ODA) will also start in the second half of the year, as well as the P1-billion repair of walls and drainage improvement along the Pasig River stretch from Delpan Bridge to Napindan Channel.
There are also three public-private partnership projects ready for construction, namely: the P3.33-billion mixed-income housing center, P1.78-billion government center and P850-million commercial center components of the Clark Green City.
The National Economic and Development Authority (NEDA) said in a separate statement yesterday that its Investment Coordination Committee-Cabinet Committee (ICC-CabCom) has approved the revision of terms of two big-ticket infrastructure projects after its June 14 meeting.
The ICC-CabCom — led by Socioeconomic Planning Secretary Ernesto M. Pernia and Finance Secretary Carlos G. Dominguez III — agreed to extend the loan validity of the Italian government-backed P2.62-billion Agrarian Reform Community Development Support Program from April 2019 to April 2021, as well as its implementation period from December 2018 to December 2020.
According to NEDA, the project “aims to increase and stabilize the income of agrarian reform beneficiaries (ARBs) in Sarangani, Sultan Kudarat, Maguindanao, and Lanao del Sur, along with improving their access to key services through support in infrastructure and agri-enterprise development, local capacity building, and project management.”
The Cabinet-level panel likewise approved the increase of the supplemental loan for the New Bohol Airport Construction and Sustainable Environment Protection project to P2.18 billion from P1.23 billion.
The supplemental loan is from the Japanese government and covers foreign exchange movements, price escalation in the construction of the project and also facilitates start of commercial operations in October 2018.
Construction for the New Bohol Airport has already started costing about P7.77 billion, and is seen to replace the Tagbilaran airport.
In a separate statement, Finance Secretary Carlos G. Dominguez III told members of the Asia Pacific Investors Cooperation network during its meeting in Tokyo yesterday that it is a “good time to build partnerships in the Philippines,” as the government is embarking on its infrastructure program.
“The modernization of our infrastructure and our governance will bring enhanced connectivity to the Philippine economy. They will open many opportunities for the global investment community. I hope that you will examine our ongoing programs and decide to participate in the strong emergence of the Philippine economy,” said Mr. Dominguez.
“It is our desire to see the strategic projects completed at the shortest possible time in order to immediately realize their economic value and lessen unnecessary financing costs,” he added.
The government targets the economy to grow at least seven percent this year from 6.7% in 2017 on the back of sustained increase in public infrastructure spending that will add to robust household expenditures. — Elijah Joseph C. Tubayan

Second rate hike may not be enough to help markets

WHILE the Bangko Sentral ng Pilipinas increased its benchmark interest rate for a second month on Wednesday, the action may not be enough to help lift Asia’s worst-performing market, according to some analysts.
Thursday saw the peso, which has lately been hitting 12-year lows against the dollar, 7.07% weaker from end-2017 at P53.46 to the greenback (read article on S2/3) and the Philippine Stock Exchange index down 17.06% year-to-date to 7,098.15 as it entered bear-market territory (story on S2/2).
Lexter A.L. Azurin, assistant vice-president and senior equity analyst at AB Capital Securities, Inc., said the latest increase in benchmark interest rates should ease investor concerns on the peso, which in turn will be good for equities. He noted that one of the reasons for the market selloff in the past few months is uncertainty over the policy environment.
AP Securities, Inc. Research Analyst Rachelle C. Cruz noted that for the equities market, a rate hike is better than no rate hike since the move is meant to calm the market and anchor inflation expectations.
For Ms. Cruz, there’s more room for peso weakness if inflation peaks in the third quarter of this year and the BSP’s Monetary Board does not increase rates at its Aug. 9 meeting. This, she said, will put pressure on the peso and the stock market will remain weak because foreign selloff will continue.
Inflation picked up to a fresh five-year-high 4.6% in May, keeping the year-to-date pace beyond the BSP’s 2-4% full-year target at 4.1%. Overall price hikes, however, have been slowing month-on-month, encouraging state economic managers to say that inflation should fall within target next year. The BSP on Wednesday also tempered its full-year inflation forecast for 2018 to 4.5% from 4.6% previously.
Krung Thai Bank’s Jitipol Puksamatanan said the BSP’s latest interest rate increase will probably only help to stop declines in the peso in the short term, adding that the latest action isn’t enough because the key rate remains below the nation’s inflation.
The move is unlikely to help strengthen the currency, he said, adding that a significant depreciation in the peso would be negative for inflation, while the peso may weaken further to as low as 54.50 in the third quarter.
Divya Devesh Asia FX strategist at Standard Chartered Bank said the second rate hike for 2018 — and in nearly four years — “certainly provides some respite” for the peso, but the currency is likely to continue to underperform due to weak external balances — a condition that is unlikely to change in the short term.
Mitul Kotecha, senior emerging markets strategist at TD Securities, said Wednesday’s policy tightening is not going to buoy the peso much given still relatively low real yields and current-account deficit.
Over the near term, he believes the peso may benefit from some consolidation in risk appetite but the dollar-peso pair is likely to remain in upward trend towards P54 to a dollar as the next psychologically important level.
WHAT’S NEXT?
The jury is also out on what to expect from the BSP in the coming months.
For Andy Ji, FX and Rates Strategist/Asia ex-Japan economist at the Commonwealth Bank of Australia, the Monetary Board could deliver another interest-rate increase this year after the hike on Wednesday, as inflation will probably quicken if the peso remains weak.
But even further hikes will do little to bolster the peso as the United States Federal Reserve is expected to embark on a more aggressive tightening path.
Mr. Ji noted that the peso is more vulnerable than regional peers to higher US interest rates as the Philippines has a more acute inflation problem.
In separate reports, analysts at ANZ Research and Nomura said they see additional tightening moves from the central bank following a back-to-back rate increase during the Monetary Board’s May and June meetings.
“We therefore maintain our forecast that BSP will follow up with another 25bp policy rate hike at its next meeting in August, taking the policy rate to 3.75% this year,” Nomura economists said.
The global bank echoed the BSP’s expectations of inflation hitting its peak during the third quarter, as it bared an estimate for third-quarter inflation at 5.1% coming from a 4.7% average expected for April-June.
The BSP introduced another rate increase as it saw that inflation expectations “remain elevated” for the year, especially given “more volatility” in the exchange rate.
For ANZ economists, “higher crude oil prices and a potential upward revision in minimum wages were seen as the key upside risks.”
“The important thing to watch out would be the magnitude of wage revisions in October, in our view,” they added, noting that the sustained peso weakness may have prompted the BSP to raise rates anew.
The peso has been trading at the P53 level versus the dollar since last week, touching fresh 12-year lows.
On the other hand, HSBC said the BSP’s move may be the last for now.
“We do not see further hikes this year, given easing inflationary momentum,” HSBC economist Noelan Arbis said.
“We still expect headline inflation to peak on a yearly basis in 2H18, but mainly due to base effects and higher oil prices, which we believe aren’t reason enough for additional monetary tightening.” — reports of Bloomberg and Melissa Luz T. Lopez

Throw volunteering into your travel and Instagramming mix


Text and photos by Erka C. Inciong
Today’s Filipino young professionals love to travel. Department of Tourism numbers show they — with the income and modern-day opportunities to travel — make up a big slice of the domestic tourist market. And for yuppies, traveling is almost synonymous with a chance to fill up their Instagram pages with “IG-worthy” shots, whether it be a sunset, breakfast, or a salagubang (beetle) hanging from a lens cap.
Enjoying new places and capturing special moments digitally has a lot to do with the YOLO (you only live once) mind-set, as is the reality that there are limits to taking a leave from work. Nonetheless there are dimensions, such as social relevance and environmental awareness, that we can add to our travels without giving up the YOLO principle.
That is where VolunTourista PH comes in, a group of young professional women who travel and, at the same time, do volunteer work for communities at a chosen location. The aim is not just to visit a province and take shots of all its “instagrammable” places and food, but to make an impact on the community, and be able to give back and create a memorable experience with the locals, even for just a short time.
VolunTourista PH members understand the need to go on holiday, escape from the daily grind, and get that much-deserved break from long working hours and the traffic jams. At the same time, they want to tap into the young’s passion and energy for something meaningful, or simply something different from the usual vacation.
Packing art materials, painting a mural, or teaching kids a new song or game to enjoy are not the usual holiday activities. But they can be as relaxing and recreational. It’s fun to meet new people along the way, interact with them, and know their stories.
VolunTourista PH doesn’t just pick a random tourist destination. There is planning involved. The members pick a province which promotes community-based tourism, wherein human ecology is at the core of the program, and coordinate the visit. It is the kind of tourism where the environment is protected and locals benefit through livelihood opportunities.
The group’s first outing was held during the summer of 2017, at Roxas, Mindoro. The second was a three-day trip to Bongabong, Mindoro at the end of November, and the most recent was at Donsol, Sorsogon, in May this year.
In only three days in Donsol, the members managed to swim with the butandings (whale sharks); took an excursion to see fireflies; painted a mural that promotes the Save our Seas campaign; taught grade school kids how to draw butandings and emphasized these creatures’ importance to the sea (and played some games too); taught high school girls how important their bodies are and how to prevent teenage pregnancy, hosting an Amazing Race-like activity to teach the importance of spiritual love; and, of course, tried out and took photos of all the specialty food from Donsol. (Don’t miss the fresh crabs cooked in coconut milk or ginataan — so soft you don’t need a cracker to get the meat out of the claws.
Next time you start thinking about a new holiday adventure, consider hooking up with VolunTourista PH.
Doing volunteer work while being a tourist is not really tiring. In fact, it’s fulfilling.
VolunTourista PH is open to women who are interested in touring and volunteering. They can like the Facebook page theVolunTourista PH (@VolunTouristaPH) and leave a message stating their interest in joining the advocacy.
(The author is a BusinessWorld layout artist, community volunteer, and member of VolunTourista PH.)

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