The Senate will hold hearings on the increased activities of China in South China Sea, foreign relations committee chair Loren B. Legarda said on Sunday.
“We can look into it and have consultations, briefing, hearings during the break. I will do this not to inflame tensions… It’s important that we use diplomacy to solve the West Philippine Sea,” she said in a radio interview. — Camille A. Aguinaldo
Senator Leila M. De Lima has called for an investigation into the influx of Chinese nationals employed and residing in the Philippines, which she said steals jobs from Filipinos but also triggers property surge on many developed areas.
Senate Resolution No. 751, filed on May 29, urged the appropriate Senate committee to assess the effective implementation of existing immigration and labor laws to ensure that Filipinos are protected against adverse effect caused by the immigration surge.
“The increasingly laxed control mechanisms over the influx of Chinese nationals in the Philippines have led to concerns on whether we have enough capability to properly enforce our immigration and labor laws to the detriment of our national interest,” she said in a statement. — Camille A. Aguinaldo
The Department of Energy (DoE) targets to receive in June the first shipment of oil from non-members of the Organization of the Petroleum Exporting Countries (OPEC), the secretary said.
“We are looking at other countries. Russia is just an option,” Energy Secretary Alfonso G. Cusi told reporters.
He said the DoE’s commercial arm Philippine National Oil Co.-Exploration Corp. (PNOC-EC) “expects to receive the first shipment by end of June.” — Victor V. Saulon
The Energy Regulatory Commission (ERC) will dismiss applications for power supply agreements (PSA) between power generation companies and distribution utilities that fail to submit the required environmental compliance certificates (ECC) despite the agency’s order.
This is the warning issued by Agnes T. Devanadera, ERC chairperson and chief executive officer, to the PSA applicants, which included some of those applied for by distribution utility Manila Electric Co. (Meralco) and the power plant developers with which it had signed the contracts.
“We have issued an order for the cases without the ECC for them to comply within 60 days and the 60th day will be in June,” she told reporters.
“[Ka]pag wala pa silang ECC, sa tagal na ng kanilang pagka-file noon — dismissed,” she added.
(If they still don’t have an ECC despite the length of time after the filing — [their PSA applications will be] dismissed). — Victor V. Saulon
THE INSURANCE COMMISSION (IC) seeks to repeal the National Labor Relations Commission (NLRC) resolution requiring surety companies to immediately pay the appeal bonds to the winning parties of a case, despite the suspicion that they are fake.
In a statement emailed to journalists over the weekend, IC Commissioner Dennis B. Funa said that it would be unfair for bonding companies to be liable, and such rule will not address the “proliferation” of fake bonds.
“Fake bonds should not become a source of any obligation and surety companies should not be held liable for payment as solidary obligor,” Mr. Funa was quoted in the statement as saying.
An appeal bond in labor cases is intended to assure workers that the monetary award will be given to them when they prevail in a case.
However, bonding companies are refusing to pay the judgment award as they are claimed to be fake.
NLRC En Banc Resolution 5-2013, however, said that “notwithstanding refusal of a bonding/surety company to pay on the ground that the bond is spurious/fake, execution of final judgment against the surety bond shall proceed unless enjoined by a higher court.”
Mr. Funa proposed create a verification system with bonding companies “that is not violative of the rules of fair play.” — Elijah Joseph C. Tubayan
INFLATION likely accelerated year-on-year, the Department of Finance (DoF) said, but the rise in prices on a monthly basis continued to moderate.
In an economic bulletin, the DoF said that inflation in May may have logged a 4.9% increase, faster than May’s 4.5%.
“Inflationary momentum, however, appears to be receding as the month-on-month change slows down from 0.5% in April to 0.3% in May,” the report read.
“Inflation may appear to be rising YOY but it is actually decelerating as the MOM inflation continues to drop.”
“A meaningful drop in prices is attainable if the food supply problem is solved because food accounts for 35.5% of the consumer basket. Rice tariffication will help temper rice inflation while productivity programs for the food sector would enhance longer-term price stability.” — Elijah Joseph C. Tubayan
THE BUREAU of Internal Revenue (BIR) issued new measures last week to streamline its processes.
Revenue Memorandum Circular 43-2018 signed by BIR Commissioner Caesar R. Dulay on May 18 said that it has created a “fast lane” for all one-time, simple transactions.
“In line with the BIR’s efforts to promote the delivery of quality service to all stakeholders, all One-Time Transaction (ONETT) Teams are hereby directed to create a fast lane that will cater to individuals or corporations filing Capital Gains Tax or Donor’s Tax Returns with only one Deed of Sale/Exchange/Donation involving one to three properties,” the circular read.
It added that the transactions shall be processed and released “within three working days upon submission of complete documentary requirements.”
Meanwhile in Revenue Memorandum Order 25-2018 signed by Mr. Dulay also on May 28 has split up the Inspection and Acceptance Committee into two independent teams that verify the deliveries of goods and services, infrastructure projects, and consulting services in the BIR.
It said that the measure was “in line with the directive of the present government to streamline the processes and documentary requirements.” — Elijah Joseph C. Tubayan
Megaworld Corp. targets to book P1 billion in sales from its first residential project in its Pampanga township, banking on the province’s growth potential in the coming years.
In a statement issued over the weekend, the listed property developer said it has launched Chelsea Parkplace, a 12-storey residential tower housing 193 units. Sizes of each unit range from up to 31 square meters (sq.m.) for studio, up to 45.5 sq.m. for one-bedroom, and up to 88 sq.m. for two bedroom units.
The Andrew L. Tan-led company said the project will take inspiration from New York City’s Upper West Side. Each unit will also have a balcony similar to New York’s apartments, giving residents a view of the township.
Amenities will include an adult and kiddie pool with pool lounge, indoor and outdoor events halls, fitness center, and a daycare center.
The company expects to complete the project by 2022. — Arra B. Francia
Ballet Philippines‘ Young Choreographers Showcase will be held from June 9-10 at the Cultural Center of the Philippines. Seven pieces will be presented for the first time.
Washington — US Commerce Secretary Wilbur Ross warned Wednesday that the new EU privacy rules in effect since last week could lead to serious problems for business, medical research and law enforcement on both sides of the Atlantic.
Ross said US officials were “deeply concerned” about how the General Data Protection Regulation would be implemented, while noting that the guidance so far has been “too vague.”
The law which took effect May 25 establishes the key principle that individuals must explicitly grant permission for their data to be used, and give consumers a right to know who is accessing their information and what it will be used for.
Some US officials have expressed concerns about the GDPR, but Ross is the highest ranking official to speak on the law, and his comments address a broad range of sectors that could be affected.
“We do not have a clear understanding of what is required to comply. That could disrupt transatlantic cooperation on financial regulation, medical research, emergency management coordination, and important commerce,” Ross said in an opinion piece for the Financial Times
The costs of the new law could be significant, to the point where it may “threaten public welfare on both sides of the Atlantic,” according to Ross.
“Complying with GDPR will exact a significant cost, particularly for small and medium-sized enterprises and consumers who rely on digital services and may lose access and choice as a result of the guidelines,” he wrote.
“Pharmaceutical companies may not be able to submit medical data from drug trials involving European patients to US authorities, which could delay the approval of new life-saving drugs.”
He added that the US Postal Service has claimed the new rules could prevent EU postal operators from providing the data needed to process inbound mail.
Ross also echoed concerns from other officials that EU requirement that personal data be restricted from the internet address book known as “WHOIS” could hurt law enforcement efforts to crack down on cybercrime and online calls to violence.
“That could stop law enforcement from ascertaining who is behind websites that propagate terrorist information, sponsor malicious botnets or steal IP addresses,” he said.
“These important activities need to be weighed carefully against privacy concerns. They are critical to building trust in the internet, safeguarding infrastructure, and protecting the public. Our respect for privacy does not have to come at the expense of public safety.” — AFP
Shanghai — More than 200 Chinese companies debuted Friday in MSCI equity indices in what analysts call a small yet significant step in China’s cautious drive to integrate with world markets and tame the volatile “casino” atmosphere of its stock exchanges.
Global equities index compiler MSCI for the first time added around 230 big-cap Chinese shares to its benchmark Emerging Markets Index and other indices used by foreign institutional investors (FIIs) to determine which shares around the world to buy.
The step is expected to lead to billions of dollars of new foreign investment in the Chinese shares by global funds that match their portfolios with MSCI indices.
But China’s equities markets and corporate sector remain immature and prone to scandal. Weak corporate governance, hidden debt, and transparency levels fall far short of Western standards, and MSCI is not jumping in with both feet.
The weighting of mainland China-listed shares, or so-called “A-shares”, in the Emerging Markets Index, for example, was expected to reach only an initial 0.39 percent, a tiny fraction.
As such, the prospect of a future influx of foreign funds failed to excite investors Friday, with several of the biggest companies on the list faltering by midday as renewed fears of a global trade war gripped markets.
They include heavyweights like Kweichow Moutai, the world’s largest distiller, automaker SAIC and consumer appliance giant Midea.
“In the future, we will see more funds pour in, but not initially,” said Jackson Wong, securities analyst with Huarong International Securities.
Wong said that despite MSCI’s imprimatur, foreign investors remain cautious over China’s volatile equities, where government meddling and the irrational decisions of millions of individual retail punters often trump fundamentals.
Wait-and-see
“The upside is limited. A lot of people are playing the wait-and-see game and they are in no rush to get into A-shares right away,” said Wong.
But MSCI says China’s weighting could dramatically rise in years to come if increased global scrutiny brought by Friday’s move leads to hoped-for structural and governance changes in China Inc.
China-related shares already comprise a significant chunk of MSCI’s Emerging Markets Index thanks to big Chinese stocks like Alibaba and Tencent, which list shares overseas.
“The A-shares market is one of the biggest in the world, with more than 3,000 stocks traded. If full inclusion were to happen, China equities could comprise 42 percent of the MSCI Emerging Markets Index, with A-shares alone accounting for about 16 percent,” MSCI’s head of Asia research Chin Ping Chia said in a blog post.
Fearful of destabilisation from full global integration, China has shielded its financial markets even as it became a trading superpower.
But MSCI inclusion is just one of several recent liberalisation milestones.
Since 2014 foreign investors have been able to buy Chinese-listed shares via trading conduits linking Hong Kong’s exchange with China’s $7.4-trillion equities market. A future link-up with the London exchange has also been proposed.
China opened foreign access to its huge bonds market last year, and this year eased restrictions on foreign ownership of Chinese financial institutions, along with other opening-up steps taken amid a trade dispute with the US.
Martin Wheatley, an adviser to hedge fund Oasis Management, said the greater stake that institutional investors will have in China from MSCI inclusion will likely encourage more liberalisation and less reliance on emotional retail traders.
“It’s less about integration than about maturity within China,” Wheatley told Bloomberg Television.
“What you actually need is an institutional (investor) base within China, not just external to China, that values stocks and puts the sort of pressure on companies that you see elsewhere.” — AFP
SenseTime Group Ltd. has raised $620 million at a valuation of more than $4.5 billion just months after scoring a similar amount from investors led by Alibaba Group Holding Ltd. and Singapore’s state investment firm.
Fidelity International and Silver Lake Partners were among the investors in the latest financing, bringing the total amount raised by the three-year-old image recognition startup in the past six months to more than $1.2 billion and tripling its valuation in under a year. Tiger Capital, Qualcomm Ventures and Hopu Capital also participated. The latest funding will go toward research and talent acquisition, SenseTime said in a statement Thursday.
Investors are handing billions of dollars to Chinese artificial intelligence startups, hoping to ride a wave of support from a government intent on becoming the world leader in the technology by 2030. But the growing hype is encouraging everything from video services to language schools to claim AI as integral to their business to win funding. Some investors warn the sector could experience a downturn towards the end of this year if those companies fail to deliver revenue growth.
SenseTime specializes in systems that analyze faces and images on an enormous scale and works with policing bodies across China. The startup said it experienced 400 percent growth in each of the past three years as it encompassed more industries. Business contract revenue is up more than 10-fold so far this year, according to its statement.
The company’s a big contributor to the world’s biggest system of surveillance: if you’ve ever been photographed with a Chinese-made phone or walked the streets of a Chinese city, chances are your face has been digitally crunched by SenseTime software built into more than 100 million mobile devices. The country is ramping up spending on surveillance as it cracks down hard on restive parts of the country, including Xinjiang.
A key focus for SenseTime is its internal talent development program, that seeks to cut its reliance on externally-trained AI developers as the industry hits a global crunch. It’s an effort that will become increasingly important as the U.S. — currently the source of many of the world leading computer science graduates — drafts limitations on how long Chinese students can stay in the country.
Aside from Alibaba, it also counts Temasek Holdings Pte and retailer Suning.com Co. as investors. It’s the largest, according to CB Insights, of a plethora of private AI outfits.
Fellow facial-recognition startup Megvii Inc. raised $460 million last year, while smaller niche players from Yitu to Malong Technologies have also won funding. A key partner, Hangzhou Hikvision Digital Technology, is one of the world’s biggest suppliers of security cameras and developing its own competing AI technology. — Bloomberg
