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North’s ‘army of beauties’ reveal cultural divide

GANGNEUNG — North Korea’s red-clad “army of beauties” cheerleaders are a key weapon in Pyongyang’s arsenal for its Winter Olympics charm offensive — but to some Southerners they illustrate the cultural divide across the Demilitarized Zone.

The 200-strong group — all in their late teens or early 20s and said to be handpicked from elite universities after strict background checks — chant “Cheer up” at events, clap and wave in unison, and sing traditional songs.

The Koreas’ separation — which dates back nearly seven decades during which the two countries have followed radically different paths — makes citizens of the North an object of some fascination for South Koreans.

“They look just like us,” said Kim Mi-hyun, 59, as the young North Koreans walked by in a neat double line on an excursion to a beach in Gangneung, the east coast city where the Winter Games ice events are being held.

“Looking at them makes me yearn for reunification,” she added, filming the sight on her smartphone.

Others were struck by their chunky trainers and white woolly hats.

“They look like Koreans from a long time ago,” said 30-year-old Lee Jung-hoon.

Younger South Koreans tend to be more wary of the North having spent their adult lives in a culturally vibrant democracy regularly menaced and occasionally attacked by Pyongyang, which stands accused of widespread human rights abuses.

The cheerleaders are under tight surveillance from their Northern escorts, always moving in groups in the presence of a minder and rarely conversing with South Koreans.

They said nothing in response to Southerners’ calls of welcome at the beach, opting instead for a coy smile or friendly wave.

“They don’t speak,” said Yoo Hong-sik, 31, from Daejeon. “I think they received orders not to and that’s disappointing because I would like to interact with them.”

TEARS IN RAIN
The Northern supporters’ every move is trailed by an army of South Korean journalists, with some camping outside their hotel for photos of the women going for a morning jog or ironing their clothes.

It is the fourth cross-border visit by a North Korean cheer group and the initial enthralment has changed over time, as Pyongyang pursues the nuclear and missile ambitions which have seen it subjected to multiple rounds of UN Security Council sanctions.

Dubbed an “army of beauties” by the South’s media, there was so much interest in the squad sent for the 2003 Universiade in Daegu that the facility where they stayed was turned into a museum displaying personal items left behind — including unused tampons and empty toothpaste tubes.

On that trip, a tearful group of cheerleaders frantically ran off their bus to retrieve a banner of then-North Korean leader Kim Jong Il that was getting wet in the rain.

In 2005, former North Korean cheerleader Cho Myung-Ae — whose looks had gained her a huge following in the South — appeared in a television commercial for a Samsung mobile phone with South Korean pop star Lee Hyo-Ri.

Now, though, the cheerleaders are part of a charm offensive by Pyongyang aimed, analysts say, at easing the measures against it and trying to drive a wedge between Seoul and its protecting ally Washington.

At the unified women’s ice hockey team’s 8-0 drubbing by Sweden on Monday — which guaranteed its elimination at the group stage — the cheerleaders chanted and waved in red, blue and white tracksuits.

“I hope they come more often,” said Kang Seok-joong, 61, adding the visit would bring the two countries closer together.

But Noh Seung-Hyuk, a 29-year-old office worker in the stands, was disturbed by the Northerners’ lockstep choreography.

“Of course it is nice to see them but they give me the chills,” he said. “Honestly, they feel distant.”

Many older South Koreans on both sides of the political divide harbor a nostalgic longing for some form of reunification — conservatives through the North’s collapse and conquest by the South, liberals through a more amicable arrangement.

But younger people have far less interest in unification and fear its social and economic consequences.

A poll last year found almost 50% of over-60s believed the two Koreas can be reunified, while just 20.5% of those in their 20s agreed.

“We look the same but I feel bad because they don’t have any freedom,” said Kim Jung-ah, a 22-year-old student from Seoul at the match.

Her friend Lee Eun-mi added: “I think they are very different, they are so robotic.”

As popular girl group TWICE’s “Cheer up” blared from the loudspeakers across the arena, two young South Korean spectators danced jovially.

The North Koreans paused — and began bellowing out a 600-year-old Korean folk song, waving their unification flags in synchronized moves.

“They are like the military, I pity them,” said Lee Min-woo, a 20-year-old student from Seoul.

“I haven’t given any thought to reunification.” — AFP

US concerns over EU defense pact, Turkey row cloud NATO meeting

BRUSSELS — US concerns over the European Union’s (EU) landmark defense cooperation pact and increasingly strained relations between Washington and Turkey look set to loom large as North Atlantic Treaty Organization (NATO) defense ministers meet for talks on Wednesday.

The US and Ankara, two of the transatlantic alliance’s most important members, are at loggerheads over Turkey’s military offensive in northern Syria, which US Secretary of State Rex W. Tillerson on Tuesday warned was detracting from the fight against the Islamic State group.

The two-day meeting at NATO headquarters in Brussels is expected to approve changes to NATO’s command structure aimed at making the alliance fit for the challenges of warfare in the 21st century, particularly cyber tactics and hybrid warfare, as fears grow about Russian assertiveness.

But a working dinner with EU diplomatic chief Federica Mogherini on Wednesday night has taken on greater significance after senior US officials voiced fears about the bloc’s defense pact and NATO Secretary-General Jens Stoltenberg warned it must not undermine the alliance.

Mr. Stoltenberg said Tuesday that efforts to boost EU defense spending were welcome, but only if they were coordinated with NATO plans, warning there was “no way” the EU could replace the transatlantic alliance in guaranteeing European security.

“It will be absolutely without any meaning if NATO and the EU start to compete,” the former Norwegian premier told reporters.

“European allies are absolutely aware that the defence, the protection of Europe is dependent on NATO.”

The EU’s so-called permanent structured cooperation on defense agreement, known as PESCO, has projects in view already to develop new military equipment and improve cooperation and decision making.

But on Sunday a senior official working with US Defense Secretary Jim Mattis said Washington had concerns some of the proposed initiatives risked “pulling resources or capabilities away from NATO.”

And on Tuesday US ambassador to NATO Kay Bailey Hutchison ramped up the pressure, warning the EU there could be serious consequences if it shuts US defense companies out of cooperation projects.

“Certainly we do not want this to be a protectionist vehicle for the EU and we’re going to watch carefully, because if that becomes the case then it could splinter the strong security alliance that we have,” she told reporters.

The US concerns have surprised some European diplomats, with one insisting that EU defense cooperation poses no threat to NATO, adding that “a little explanatory work” is required to clarify matters with the Americans.

Wednesday’s dinner now represents an important chance for Ms. Mogherini to reassure the US, which is NATO’s biggest contributor. — AFP

Baguio was named a UNESCO creative city. Where are the millennials?

It takes 20 minutes for Celso Velasco to ply a chain bracelet from a thin silver wire. The tedious process is shortened to 10 minutes if he doesn’t stop for tobacco and coffee. He and his friend, who worked with a soldering iron to painstakingly melt and weave an intricate silver cord while wasting as little of the precious metal as possible, sat on a workbench provided to them, lighted only by a single, but powerful, halogen lamp. His granddaughters, no older than seven years old, tiptoed beside their grandfather to get a closer look of how quickly he cut and looped the silver wire.

“For me this is like playing,” Velasco told SparkUp in the vernacular, never looking up—perhaps the reason why he has developed a slight stoop. “It stimulates my mind and I enjoy making different designs.” A Baguio native, he learned from his grandfather, who learned from his father, who learned from his father before him, and so forth. Perhaps they didn’t have the same tools as he has now, and designs come and go, but the heritage is something that gets stronger with time. Or weaker.

For the young, Baguio is a comfortable mix of city and pine forest that makes it a romantic backdrop for soul searchers and the nomadic alike, who seek inspiration up the mountains—the second on the list of top Airbnb destinations for Filipinos this Valentine’s week.

But for aged craftsmen like Velasco, Baguio is more than that: it is a place that has been included in the 180‑member UNESCO Creative Cities Network under the craft and folk art category: a recognition that links Baguio to other art hubs around the world.

From February 11‑24, the summer capital is host to the Baguio City Creative Hub: an event featuring around 20 booths for weaving, basketry, jewelry painting and visual art products from Baguio and the Cordillera artisans. It’s a big deal—the official logo was even rendered by National Artist for Painting Benedicto “Bencab” Cabrera.

Yet underneath this success is an obvious void: few millennials in the sea of seniors manning the booth.

“They’re not interested anymore,” Velasco lamented about today’s generation. “Kids these days are more interested in their gadgets and their computers. Back then we would help with our fathers in their shops. I don’t know if our children will—” he trails off and his friend laughs grimly.

“Now the youth are just interested in watching us work, maybe they’ll touch the silver and try it out for a while, but then they leave,” he added. Silver work, however, is not a craft that one can just pick‑up and learn. Training is needed, just like how Velasco was trained by his grandfather.

Photo Lucia Edna P. de Guzman

This poses a very real risk not only to the craftsmen but also to the entrepreneurs that sell their crafts. Lucia Capuyan‑Catanes, director of the iconic Narda’s Handwoven Arts and Crafts and daughter of the shop founder Narda Capuyan, spoke for the weavers that they source their fashionable shawls and bags from. Draped in traditionally woven shawls, Catanes recalled how Narda’s was born when her mother, who moved to the Cordillera’s to teach reproductive health, struck a partnership with the weavers. She will sell their crafts in the city for a profit, and the women, encouraged to earn their own money, will hopefully not be pressured into getting pregnant again by their husbands.

“The youth today prefer to work at call centers or become overseas Filipino workers (OFWs),” explained Catanes, when asked about the future of their business. “We’re encouraging the young to take up the craft of weaving and sewing. If you find a good livelihood here then you don’t have to leave your families behind anymore, as opposed to becoming an OFW.”

“There should be more focus and respect for the artisans,” she added. “And they also need higher, competitive wages to what they would earn if they went abroad.”

She hopes that the recognition from UNESCO will be beneficial for Baguio. “It will boost the handicraft industry,” Catanes said. “And it will put focus on the artisans, the weavers, the artists, that’s one of the advantages.”

The intervention of a third party to sell the goods to the tourists that mostly come from outside the city province also serves an additional purpose: to get past the language barrier. SparkUp attempted to interview a weaver, who worked silently with a traditional waist‑strapped loom. She looked up from her work, smiled apologetically, and then nodded to the booth managers, who explained that the middle‑aged woman could speak neither English nor Tagalog.

Siegfried—just Siegfried, he says—a man in a blue hoodie who manned a souvenir blade shop during the event, works for WOW Banaue Souvenirs. Wow Banaue Souvenirs sources its products from the communities in Banaue, Ifugao.

For the blades, Siegfried explained that they get them from a panday (blacksmith) that they know. However, he worries that the panday might not have found someone to pass his craft to. There might come a time that all the blades he was selling—short but menacing daggers, short swords in wooden scabbards carved with skulls and other dangerous insignia, and a single, simple broadsword that was more expensive because it’s a traditional blade—might come at short supply. Perhaps someday, there will be no supply at all.

“This is good news for the creative arts,” said Siegfried when asked about Baguio’s latest accolade. “This favors our products because these are creative works.”

But he also warns against bunching all souvenirs and arts together under one blanket label, or mistaking one province for the other.

“There are books and articles that say that this item is from Ifugao, this item is from Benguet, but don’t verify if it’s true,” he said. Despite how Siegfried’s blades from Ifugao do not seem that out of place next to displays from Benguet, proper attribution is important in highlighting the skill of the artisan.

Photo Lucia Edna P. de Guzman

Meanwhile, Ariel Layugan stands at the crossroads between the entrepreneur and the craftsman, as a craftsman who sells his own works.

A self‑identified millennial, he stood next to where his carved bone jewelry was displayed on top of a gnarled piece of wood for contrast, proudly wearing a necklace, ring, and neckerchief that he himself carved. A friend had taught him how to carve wood, a traditional art that the Cordilleras is known for, and he incorporates those techniques into his own work—serpents, lizards, the bulol (an Ifugao rice diety), and various fertility symbols are carved on to bone scraps that people would mostly throw away (like hooves and left‑overs from bulalo).

“Before, people thought art was merely a way to augment your finances, which is true,” said the artist on the effect of recognition on the business of selling crafts. “Now that we’re recognized, we have to work further on our crafts so that we can compete against what’s sold in other countries without losing our standard.”

“Many people think that crafts are cheap, things that you sell on sidewalks, but now I hope they recognize that crafts isn’t something that should be belittled,” Layugan said, passionate in defending his fellow artisans. “The artist gives a lot of thought to his craft, and that plays a big part. It shouldn’t be belittled, because the artist gave a lot of time and went through a lot of trial‑and‑error before he can create a piece.”

Baguio, as a UNESCO recognized creative city, now has the duty to keep the folk arts alive.

“We challenge other cities to be more creative,” Tourism Undersecretary Marco Bautista said during the unveiling of the Baguio City Creative Hub at the Malcolm Square, popularly known as the People’s Park. “Baguio City is the first and hopefully there will be second, third, and more cities that will be recognized by UNESCO in the creative arts and other fields of the recognition.”

Meanwhile, we, the younger generation, who have benefitted from the teachings of our elders are, in the words of aged craftsmen like Velasco, satisfied with merely watching.

Business is blooming for online flower shops

Valentine’s Day is not a relaxing day when you’re a flower shop owner.

It’s peak season: your earnings may double, triple, or more, but so does your workload. The fated day of hearts—whose origins trace back to the violent ancient Roman pastoral festival of Lupercalia and the bloody death of Saint Valentine—challenges florists to have enough inventory, the additional burden that flowers are perishable goods, there’s pressure from last-minute buyers, plus the ordeal of making sure all those deliveries are executed.

But millennials, being the disruptive generation, are now bringing into the flower shop business what they best know—online. Going against the traditional way flower shops are run and mixing it with social media know-how, the young entrepreneurs behind these online flower shops are showing that it can be done.

“Running a business online is easier than having your own physical store,” said Dawn Uy from The Glass House Flowers in an the interview at the Neighborhood Game Cafe in New Manila, their self-imposed workplace, one February morning.

She and her managing partner Kristine Almonte, both 26 years old, had their cell phones and laptops with them so that they can easily respond to customer inquiries during this hectic Valentine’s season. “There’s less overhead cost because you don’t have to pay rent, so there’s more budget for marketing and more ways to reach people in all areas.”

“There are pros and cons,” said Almonte. “People tend to go to physical stores for flowers. They want to see the flowers. They want to touch them. Working online requires gaining the client’s trust, so we really have to work more on communicating our product.”

Uy identified deliveries as the main challenge in running an online flower shop. “Deliveries are the number one challenge,” said Uy, who isn’t a stranger to one of the major business issues today, logistics. “Of course everyone wants their flowers on time, but then there’s traffic and time management. We want each and every delivery to be perfect.”

Almonte, meanwhile, identified flowers being perishable as another challenge.

“Normally you’d want an excess of inventory but there will be wastage, that’s a part of the business,” she said. The Glass House Flowers sources its roses from Ecuador, which is known for its high quality roses with large petal counts. On a normal month they order a weekly shipment of flowers, but for peak months like February (Valentine’s) and May (Mother’s Day) they order flowers twice a week.

The Glass House Flowers is known for the signature crystal box. Gorgeous roses are packed in a clear acrylic boxes, with water under the stems for the non-preserved floral arrangements, letting you see the flowers from all angles in all their majesty.

They also have the Little Belle: a single rose in a clear acrylic container that lets you live out your Beauty and the Beast fantasies without the debatable Stockholm Syndrome. They offer a dessert box arrangement which includes chocolates with your flowers, available all year long. They deliver nationwide, with Metro Manila customers buying mostly fresh floral arrangements while preserved floral arrangements are more popular outside the Metro. Floral arrangements from The Glass House Flowers range from approximately ₱1,800 to ₱10,300.

People tend to go to physical stores for flowers. They want to see the flowers. They want to touch them. Working online requires gaining the client’s trust, so we really have to work more on communicating our product.

—Kristine Almonte, The Glass House Flowers

Meanwhile, on the higher end of the price spectrum is Petalier, another millennial‑run online flower shop. Petalier is the brainchild of Diane Yap and Lauren Silverio, both in their mid‑twenties.

“Almost everything is online nowadays, everyone is on social media, so it will be a waste if you don’t capitalize on that,” said Silverio during an interview at their pop-up shop at Powerplant Mall, in the urbanite Rockwell, Makati one week before Valentines. Compared to running a physical store, running an online shop requires less capital and incurs less risk.

Petalier specializes in boxed bloom arrangements. Beautiful Ecuadorian roses are placed inside boxes that simulate those quaint garden boxes that you might find outside the windows of old European cities. Their largest arrangement, the Catherine, boasts 200 roses and claims to be the largest boxed bloom arrangement in the Philippines to date. One of their most popular arrangements for Valentine’s Day was the Fleur et Champagne, where a sparkling bottle of champagne is laid delicately over a bed of roses. Floral arrangements from Petalier ranges from approximately ₱4,500 to ₱40,500.

“Social media is so powerful,” Yap added. “The world became smaller all of the sudden. We would even get inquiries from Dubai and the United States before. You can use the internet absolutely for free, and people are getting more creative with their marketing strategies.” Note that Petalier only delivers flowers within the Philippines, unfortunately for those potential Dubai and United States customers.

Other than social media, Petalier also has a website. They used to have an app, too, although they had since after problems in the development side. A lot of work goes not just to their flowers but to their advertising, (they bought a billboard space along EDSA for Valentine’s). They have also been slowly branching out to other flowers like hydrangeas and sunflowers.

What keeps these young women going? “At the end of the day seeing people happy and being a part of their love story keeps us strong,” said The Glass House Flower’s Almonte.

For Silverio of Petalier, having a good business partner is something that keeps their business going.  “It’s hard to go into a business alone,” Silverio said. “It’s good to experience new things with someone you can really trust so you can help each other out.”

Coincidentally, these businesses are built with strong friendships. The Glass House Flowers’s Uy and Almonte have been best friends since childhood. Petalier’s Yap and Silverio have been neighbors since they were twelve years old.

Thus, like a bouquet of flowers, their businesses keep on blooming.

Bitcoin and cryptocurrencies: what you need to know

By Mark T. Amoguis, Researcher

So far, 2017 was Bitcoin’s best year. From around $450 per unit in May 2016, it shot up to almost $20,000 in December – a record-high on account of investors’ increased risk-on sentiments. This quick climb led some economists to tag Bitcoin as a bubble waiting to burst similar to tulipmania in the 1630s and the dot-com bubble almost 20 years ago.

Since then, Bitcoin has fallen about 70% from last year’s peak and below the $10,000 mark amid concerns of increased regulation in developed economies such as South Korea and China. Since then, its price hovered around the $10,000 per unit mark.

This degree of volatility, however, was not the first time Bitcoin’s stability was put to the test. Like any tech-based platform, Bitcoin exchanges were prone to security breaches with the most prominent being that of Tokyo-based Mt. Gox in 2011. In 2014, Mt. Gox, which at the time held 70% of all bitcoin transactions worldwide, filed for bankruptcy.

In the Philippines, meanwhile, the Bangko Sentral ng Pilipinas (BSP) – the country’s monetary authority – is in the process of approving entities seeking to operate as a Bitcoin exchange after authorizing two – Betur, Inc. (also known as Coins.ph) and Rebittance, Inc. – last year, which are considered as remittance companies and thus required to comply with regulations such as rules on anti-money laundering.

Transactions of so-called virtual currencies in the country reached a monthly average of over $8.8 million per month in the first half of 2017 from $2 million and $6 million in the entire 2015 and 2016, respectively, according to Reuters, citing BSP data.

What is Bitcoin?

Born from the wreckage of the 2007-2008 Global Financial Crisis, a hacker (or a group of them — nobody really knows) created the trustless financial medium — the bitcoin.

Bitcoin’s origins can be traced to 2008 when Satoshi Nakamoto, a pseudonym of an anonymous programmer wrote a whitepaper that year outlining the mathematical theory of a peer-to-peer currency. This materialized a year later into what we know now as the Bitcoin software.

In its early days, it was used only by cryptography geeks with its price next to $0 in 2009. In 2010, the trading of Bitcoin started according to BuyBitcoinWorldwide.com.

There are also other cryptocurrencies as well with those like Ethereum, Litecoin, and Ripple gaining popularity.

They are also open-source, meaning that nobody owns or controls these cryptocurrencies, not even monetary authorities.

While different in value and appeal, they all hinge on one technology – the blockchain.

The Blockchain

Blockchain is a distributed public ledger where all confirmed transactions (in chronological order) can be verified and being maintained by numerous computers all around the world. It is enforced with cryptography to keep it secure.

“That’s really the most important breakthrough to me, when bitcoin arrived,” John Bailon, co-founder and chief executive officer of SCI Ventures, Inc., said in an interview, referring to the blockchain technology. “It’s not so much the currency behind it.”

“Blockchain is the best way to record digital transactions of anything not just money, it can be information, it can be land titles, any sort of assets, anything that you need to track in a secure manner, blockchain is the best technology for these,” he added.

SCI is the local company behind bitcoin-related products such as Rebit (remittance service using bitcoins), Bitbit (bitcoin wallet), and Buybitcoin (bitcoin exchange).

Creation

The computers that maintain the blockchain can’t create one all at the same time. These computers must compete in solving a mathematical problem that takes around 10 minutes to process a block – a process called “mining.”

By design, only 21 million bitcoins will be “mined” at some point, making the cryptocurrency deflationary in nature.

SCI’s Mr. Bailon said that transacting via bitcoin is quick, but it also depends on the volume of transactions that are happening in the network.

“For example, if you send bitcoin to me right now, it would hit the network within seconds. But the best practice there, if I don’t know you, not that distrust you but I just don’t know you, I need one confirmation. A confirmation takes about 10 minutes. Sometimes it can go an hour depending on the volume of the traffic. Sometimes it happens within seconds,” Mr. Bailon explained.

“The nature of bitcoin is that there’s always a fee market. Meaning the higher the fee you pay, the quicker your transaction to be confirmed…,” he added.

The Philippines ranks second in Asia in terms of fulfilling relationships

Christine Joyce S. Castañeda, Senior Researcher

The Philippines was in the top three of nine countries in terms of meeting needs and expectations in their relationships, according to a study by Prudential Corp. Asia.

The Philippines’ average Prudential Relationship Index (PRI) score — a measure of how satisfied people are with their primary relationships with partners, children, family and friends — is 79/100 In 2017 against a PRI average score of 71/100 among the nine Asian economies being surveyed.

This means that, on average, people’s primary relationships fulfill 79% of their desired needs. Compared to its peers, the Philippines is tied with Vietnam at second place, only behind Cambodia (86/100).

Rounding up the nine Asian markets in the survey are the following:

Indonesia (75/100)
Thailand (70/100)
Malaysia (68/100)
Hong Kong (66/100)
Singapore (64/100)
China (54/100)

In terms of average relationship scores that people have with their partners, the Philippines scored 75/100, the third highest in the region and was above the 67/100 average score for the nine countries. Put it another way, those in relationships have approximately 75% of their relationship needs provided for by their partners.

“Expressions of love are important in some markets in Asia but not others. People in the Philippines, Indonesia and Malaysia are highly likely to value this, but expressions of love are not as influential in relationships in Cambodia or Hong Kong,” the report read.
Also noted in the study is the Filipinos’ high preference of making their partners laugh: “Filipinos are the most likely to think it important that partners make them laugh (83%) and they are also the most likely in the region to laugh at least once a week with their partners (90%).”

For Shiela May T. Julianda, sociologist at the University of the Philippines: “Filipinos are social beings that culturally and naturally are happy people. Compared to other countries, we have a high tolerance to problems.”

The sociologist professor also noted the Filipinos’ tendency to “being a collectivist” and being family-oriented that contributed to this high score of relationship satisfaction.

“If we’re going to base the article’s result on Abraham Maslow’s hierarchy of needs and use the social exchange framework as basis for our explanation, we can say that Filipinos are fulfilled with their relationships because both their physiological needs, safety and security and love and belongingness needs are all met by their loved ones.”

Ms. Julianda hypothesized that the changes in the economic conditions may have played a role: “We can say that our economy may be becoming better and that more Filipinos have occupations and that their salaries are higher that they provide their needs…”

On the other hand, she also noted the changing dynamics in relationships given the improving economic conditions and digital literacy: “[I]f we are going to compare our society today than before, hindi na tayo masyado sa [We are not more into] face-to-face interactions. With all the gadgets and applications found in our mobile phones and the internet, we can already build a relationship with a stranger or a relationship out of convenience.”

“[W]ith the development in our technology and other innovations and influence brought by other countries, nagbago na ito [this has changed]… [S]ome relationships become shallow – one week in love na or one week sila na agad.”

The study also noted that across Asia, technology can be a disruption to relationships with “spending too much time on the phone or computer” being the fourth-highest reason for arguments. The Philippines (37%) have the highest recorded proportion among respondents citing this reason as well as saying that mealtimes would be improved if phones were turned off (90%).

Going forward, most of the respondents believe that their relationships will improve in the future.

In Asia, 56% said that their love life will improve within the next five years. Respondents from Indonesia and Philippines were the most optimistic, with 72% or 7 out of 10 saying that they believe their love life will get better in five years’ time.

Talks on PHL-China joint maritime exploration resume

By Arjay L. Balinbin

The Philippines and the People’s Republic of China, during the Second Meeting of the Bilateral Consultation Mechanism (BCM) held in Manila on Tuesday, Feb.13, have started discussing their plans as they enter into a maritime joint exploration venture in the West Philippine Sea.

“There were intensive discussions on mutually beneficial joint initiatives and consensus on the convening of technical working groups in the areas of fisheries, oil and gas, marine scientific research and marine environmental protection, and political security, in the framework of the BCM,” a joint press statement read.

The Philippine delegation to the Second Meeting of the BCM were led by Department of Foreign Affairs (DFA) Undersecretary for Policy Enrique A. Manalo while Vice Foreign Minister Kong Xuanyou led China’s delegation.

In their joint statement, both countries “reaffirmed that contentious maritime issues are not the sum total of the Philippines-China bilateral relationship.”

They also stressed “the importance of maintaining and promoting peace and stability, freedom of navigation in and overflight above the West Philippine Sea, freedom of international commerce and other peaceful uses of the sea, addressing territorial and jurisdictional disputes by peaceful means, without resorting to the threat or use of force, through friendly consultations and negotiations by sovereign states directly concerned, in accordance with universally recognized principles of international law, including the Charter of the United Nations and the 1982 UNCLOS.”

Both parties stated that they will “continue discussions on confidence-building measures to increase mutual trust and confidence and to exercise self-restraint in the conduct of activities in the West Philippine Sea that would complicate or escalate disputes and affect peace and stability.”

China and the Philippines also expressed their “commitment to the full and effective implementation of the 2002 Declaration on the Conduct of Parties in the West Philippine Sea in its entirety, and to begin negotiations on a Code of Conduct on the West Philippine Sea early next month, as agreed at the 20th ASEAN-China Summit on 13 November 2017 in Manila.”

Both parties are scheduled to meet for the third time in China in the second half of 2018.

For his part, Magdalo Party-list Representative Gary C. Alejano,  who disclosed in January that the Department of Foreign Affairs (DFA) had allowed the Institute of Oceanology of Chinese Academy of Sciences (IO-CAS) to conduct marine scientific research on Benham Rise, said: “Until now, our stand regarding the West Philippine Sea (WPS) is still not clear to the public. In fact, we do not have a strategy in the WPS which would guide the policies and actions of all stakeholders. The Duterte administration has not been transparent on its relations and dealings with China. The people are left guessing. The only thing clear on the Duterte administration now is its silence, inaction, and subservience to China.”

“Duterte has been threatening the people of war with China – a scare tactic. Again, war is not the only option for us to assert our claims and protect our territory. For starters, this administration could have recognized the favorable ruling of the UN Permanent Court of Arbitration. This would be able to rally cooperation among claimants and seek pressure from the international community for China to adhere to international law. While exhausting diplomatic means, we could also improve our defense capability and presence in the WPS,” Mr. Alejano further said.

Gov’t gets P350-B offer for NAIA rehab

By Arra B. Francia
Reporter

A CONSORTIUM composed of some of the country’s biggest conglomerates has submitted to the government a P350-billion unsolicited proposal for the rehabilitation, operation and maintenance of the Ninoy Aquino International Airport (NAIA).

Members of the consortium — consisting of Aboitiz Equity Ventures, Inc.s’ (AEV) Aboitiz InfraCapital, Inc.; Ayala Corp.’s AC Infrastructure Holdings Corp.; Filinvest Development Corp. (FDC); JG Summit Holdings, Inc.; Alliance Global Group, Inc.; Metro Pacific Investments Corp. (MPIC) and Asia’s Emerging Dragon Corp. — said in a briefing on Tuesday that they submitted the proposal to the Department of Transportation on Feb. 12.

Members of the consortium — with combined capitalization of P2.2 trillion — on Tuesday signed a memorandum of agreement formalizing their partnership.

Stock prices of AEV, Ayala, FDC and JG Summit ended up 2.71% to P73.95 apiece; 2.0% to P1,020; 0.93% to P7.57 and by 2.60% to P74.90, respectively; while those of Alliance Global and of Metro Pacific retreated by 0.52% to close P15.30 each and by 0.81% to P6.13, respectively.

NAIA accommodated over 39.5 million passengers in 2016, compared to its 30.5 million designed capacity and the consortium said in a statement last December that the country’s premier air gateway “can easily accommodate an additional 11 million passengers annually from the current 39.5M passengers and can increase hourly aircraft movements from 40 movements per hour to 48 movements per hour.”

The first of the project’s two phases will involve improvement and expansion of existing terminals. Around P100 billion will be spent for the initial phase, which would double the airport’s capacity to around 65 million passengers per year, against its current capacity of 30.5 million.

“Many changes can happen within the current terminals. We can improve passenger flow, to improve the passenger experience and… add a significant amount of square meters,” NAIA consortium spokesperson Jose Emmanuel P. Reverente told reporters after a press conference at The Manila Peninsula in Makati City on Tuesday.

Mr. Reverente said the preliminary plan is to add about 250,000 sq.m. A people mover will also be installed to link the upgraded facility to existing mass transport systems.

“We will work with mass transit companies to provide connections to NAIA. It could be to LRT (Light Rail Transit) 1 or MRT (Metro Rail Transit) 3,” said Mr. Reverente, who is also vice-president of Aboitiz InfraCapital.

The consortium will build an additional runway, taxiways, passenger terminals, and associated support infrastructure for the second phase of the project.

“We expect that phase one can be completed in 48 months, while phase 2 will be under consultation with the government as to when capacity upgrades are necessary,” Mr. Reverente said.

Completion of the second phase will further increase capacity to 100 million passengers.

The consortium has tapped airport operator Changi Airports International Pte. Ltd as technical partner for rehabilitation work. “Changi is really the top-notch operator in our region, Changi is rated the number one airport in the world, so it made perfect sense for us to work with them to further enhance and upgrade our country’s premier gateway,” Mr. Reverente said.

The concession period will run for 35 years, after which the consortium will transfer control to the government at no cost. The project is estimated to cost up to P350 billion over the concession period.

With the expansion, Mr. Reverente said there might be an increase in terminal fees in the future. “There will be more terminals, obviously. So there may be a requirement for some increase, but we will work with government to make sure they are affordable,” he said.

Mr. Reverente said the consortium was formed after a meeting of top businessmen with officials headed by Jose Maria A. Concepcion III, acting as presidential adviser for entreperneurship, in the second half of 2017. “Joey Concepcion basically brought the government and private sector together and said, ‘How can we help solve the country’s economic issues’ and the improvement of NAIA came out as one of the top opportunities,” he said.

The structure of the consortium is equally split among the conglomerates, giving each member a one-seventh share in the project. Mr. Reverente noted the funds for the project will be financed through a combination of debt and equity, with equity contribution to be shared equally.

Another group, led by Megawide Construction Corp. and the Social Security System is set to submit a separate unsolicited proposal for NAIA’s rehabilitation. In a statement, the group expressed willingness to push through with the submission of a proposal. “Megawide GMR intends to participate in the development and rehabilitation of Philippine airports and this still includes NAIA. The government and the people now have the choice between a number of airport proposals and which ones offer the best value. This kind of competition is healthy for the infrastructure sector,” Megawide Corporate Information Officer Manuel Louie B. Ferrer said in the statement.

Megawide is also building a new P9.36-billion terminal at Clark International Airport in Pampanga that will double its capacity to 8 million passengers a year.

San Miguel Corp. has submitted an unsolicited proposal to build, operate and maintain a P700-billion four-runway airport in Bulacan with annual capacity for 200 million passengers.

Electronics group keeps conservative 2018 target

THE COUNTRY’s electronics industry association has kept a “conservative” but “robust and healthy” six percent target for export sales this year on the back of 2017’s recovery from 2016’s low base, according to the industry leaders on Tuesday, saying this year will see even more local inputs in their products.

“Industry outlook continues to be positive for 2018, with growth projected at six percent,” the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said in a statement yesterday.

Latest Philippine Statistics Authority (PSA) data released on Friday last week showed electronic products accounting for 52.015% of total merchandise export sales last year with $32.704 billion, 11.2% more than the $29.418 billion shipped out in 2016 and slightly topping a 5-6% growth goal.

Outbound Philippine electronics sales in 2016, however, reeled from subdued global demand then, edging up just 0.114% from 2015’s $28.904-billion sales.

In a briefing in Makati City on Tuesday, SEIPI identified the top 10 markets for Philippine electronics last year as Hong Kong (21.56% of the total), United States (12.66%), China (12.61%), Singapore (9.97%), Japan (8.94%), Germany (6.29%), Taiwan (5.44%), Netherlands (4.09%), Thailand (3.54%) and South Korea (3.48%).

Office equipment, communication/radar equipment, electronic data processing, telecommunication and medial/industrial instrumentation were the top product categories.

While SEIPI now expects “the demand for electronic components will… increase,” the group’s president, Danilo C. Lachica, said in the press briefing: “[T]o go from a lower base to a higher base of $32.7 billion, percentage points is going to be a small number.”

“All in all, I think it’s a robust and healthy progression,” Mr. Lachica said of his group’s six-percent foreign sales growth goal for this year.

“Conservative admittedly, but we want to make sure that we deliver the numbers” he added, saying: “[W]e think it’s a good start.”

The sector is now looking to increase value added in its products.

Sunil Banwari, president and general manager of ON Semiconductor Philippines, Inc. and a member of SEIPI’s board of trustees, said in the same briefing that 62% of Philippine semiconductor and electronics products in 2015 was imported.

Describing that ratio as “a very high number,” he noted that “the number changed dramatically” in 2016, when local components accounted for “over half”. “We want to make sure that we can localize more,” Mr. Banwari said.

SEIPI plans to roll out this year its Product and Technology Holistic Strategy (PATHS) and road map that will identify top products and technologies that the industry will focus on in the next five years “in order to develop a niche in the global market, as well as the right conditions necessary to make this goal happen.”

PATHS’ implementation is expected to boost industry investments to $1.5 billion in 2020, $3 billion in 2025 and $5 billion in 2030, as well as increase export sales to $40 billion in 2025 and $50 billion in 2030.

Mr. Lachica said the industry is ramping up research and development (R&D) efforts, adding: “We’re going to work with the academe to churn out more PhDs.” This thrust will also involve setting up an integrated circuit design center, wafer fabrication facility and an R&D laboratory focused on electronics. — with inputs from Anna G. A. Mogato

Davao business chamber undertakes study on local tax increase

THE DAVAO City Chamber of Commerce and Industry, Inc. (DCCCII) is aiming to release by end-February its study on the business tax increase implemented by the local government this year, which has drawn complaints from various sectors.

DCCCII President Arturo M. Milan said the study, which is mainly a comparative analysis of rates with other major cities, will be presented to the city council for consideration in view of assessing Davao’s competitiveness and investment promotion campaign.

“We’re really studying and we’re still in the process now of gathering data… because it will really impact on the city’s investment promotion,” Mr. Milan told the media.

He said among the comparative data they will present are those from the cities of Cagayan de Oro, Cebu, Bacolod, and Iloilo.

The DCCCII head said they received numerous feedback in January, the period of business permit renewal, about the steep increase in rates.

“Some complained about why the fees they had to pay were so high, particularly on the industries of poultry and car dealers,” he said in Filipino and English.

In an earlier interview, Mr. Milan also noted that the business permit increase could hurt micro, small, and medium-scale enterprises.

“We just wanted to compare for whatever it’s worth for the city. It’s really a mandate of a city to generate taxes, but taxes that’s at least comparable to others,” Mr. Milan said, “We need to look at this on a bigger perspective that will also determine our competitiveness as a city.” — Maya M. Padillo

Storm weakens but leaves trail of 4 dead, thousands stranded

TROPICAL STORM Basyang (international name: Sanba) has “slightly weakened” into a depression as it swept through south-central Philippines, leaving at least four people dead and almost 4,000 stranded in various seaports.

Weather bureau PAGASA said the rain brought by Basyang has been coupled by a surge of the northeast monsoon.

As of 4 p.m. Tuesday, Feb. 13, the center of the tropical depression was 25 kilometers southeast of Tagbilaran City, Bohol.

In and around the mining town of Carrascal, Surigao del Sur, four people were reported killed as heavy rain triggered landslides, according to the police.

“These areas are currently inaccessible and we do not know the extent of the damage,” Carrascal municipal police chief James Alendogao told AFP.

Meanwhile, the Philippine Coast Guard reported that as of 12 noon Tuesday, 3,982 passengers were stranded in various ports in Mindanao, the Visayas, and the Bicol Region in Luzon.

Basyang is expected to sweep over the southern part of Palawan today and be out of the Philippine area by Thursday afternoon.

The Philippines is struck by an average of 20 storms or typhoons each year.

Sanba is the second major system to hit this year, and the first to cause casualties.

Tropical Storm Tembin killed 240 people in Mindanao in December last year.

The country’s deadliest on record is super typhoon Haiyan (local name: Yolanda), which left more than 7,350 people dead or missing across the central Philippines in November 2013. — with a report from AFP

World trade growth seen above trend

GENEVA — Global trade in goods will continue growing above trend during the second quarter, the World Trade Organization’s (WTO) quarterly outlook indicator showed on Monday.

The indicator, a composite published since the third quarter of 2016, showed a reading of 102.3, compared to 102.2 last November.

All the indicator’s seven components were positive except for trade in electronic components, which fell to 94.1 from 103.3 in the previous quarter, possibly indicating a weakening of consumer sentiment, the WTO said in a statement.

NO ‘SLACKENING OF MOMENTUM’
“Growth is still above trend,” WTO economist Coleman Nee told Reuters.

“The recovery of 2017 seems to be extending into the first quarter of 2018 at least, based on things like strong export orders, strong air freight and container shipping and other indicators,” Mr. Nee added.

“So it seems like there hasn’t been any slackening of momentum.”

The strongest component of the index was container port throughput at 104.3, its highest score since the WTO began publishing the indicator.

The WTO has forecast overall growth in world goods trade in a range of 1.4% to 4.4% this year, most likely around 3.2%, compared to an estimated 3.6% in 2017.

Those figures, published last September, were based on International Monetary Fund economic growth projections that have since been upgraded by 0.2 percentage points, to 3.2% in 2017 and 3.3% in 2018.

The WTO will update its 2018 trade forecast in April.

Trade disputes and international trade friction do not much affect the overall global trade picture, Mr. Nee said, since they tend to affect a particular sector in a particular country.

And if one source of goods is restricted, importers often simply switch to alternative sources for the same goods.

A very wide-ranging dispute or a tit-for-tat battle could still create uncertainty and sap economic growth, but that would be visible in a gross domestic product slowdown rather than directly in trade statistics.

“Trade friction between countries can throw sand in the gears of the global economy,” Mr. Nee said. — Reuters