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War over Taiwan would change world, says Australia ambassador to US Kevin Rudd

WINSTON CHEN-UNSPLASH

Australia’s ambassador to the United States, Kevin Rudd, cautioned in a speech that the global consequences of a war over Taiwan would be as great as the impact of the Second World War, making the world “a radically different place”.

If Chinese President Xi Jinping, who turns 71 this month, wanted to achieve reunification of Taiwan he would likely act in the next decade before he reaches his 80s, Rudd said in a speech in Honolulu on Thursday.

The United States has expressed concern about Chinese military activity near democratically governed Taiwan, including after the island’s presidential election and the inauguration of President Lai Ching-te last month. China has warned the U.S. should not interfere in China’s affairs with Taiwan.

Taiwan and the United States have no official diplomatic relationship, as Washington formally recognizes Beijing but is bound by law to provide Taiwan with the means to defend itself and is the island’s most important international backer.

“We would be foolish to ignore the increasing clarity of China’s military signaling, including the pattern of its most recent military exercises,” said Mr. Rudd, who was twice Australia’s prime minister in the previous decade.

Whether China acts will depend on its perception of the strength of US deterrence, he said.

The United States recognized that if China was successful in annexing Taiwan it would impact US credibility and have “profound, and potentially irreversible effect on the perceived reliability of US alliances worldwide”, he said.

The United States, China and Taiwan have a common interest in avoiding open military confrontation on the future of Taiwan, said Rudd, a China scholar who was president of the Asia Society in New York until last year.

“The economic costs, domestic political impacts, and unknowable geo-strategic consequences that such a war would generate would likely be of an order of magnitude that we have not seen since the Second World War,” he said.

“Whatever the outcome (an American victory, a Chinese victory, or a bloody stalemate), the world is likely to become a radically different place after such a war than it was before.” – Reuters

Russia, China wrangle with US over UN resolution on Gaza ceasefire plan

A view shows houses and buildings destroyed by Israeli strikes in Gaza City, Oct. 10, 2023. — REUTERS

UNITED NATIONS – Russia and China, which hold veto powers in the UN Security Council, raised concerns on Thursday with a US draft resolution that would back a proposal – outlined by President Joe Biden – for a ceasefire between Israel and Palestinian militants Hamas.

The council’s only Arab member, Algeria, also signaled it was not ready to back the text, diplomats said. A resolution needs at least nine votes in favor and no vetoes by the US, France, Britain, China or Russia to pass.

Mr. Biden laid out a three-phase ceasefire plan for the Gaza Strip a week ago that he described as an Israeli initiative.

The US is seeking international support for the plan that Hamas is still studying. It circulated a one-page draft resolution to the 15-member UN Security Council on Monday and a revised version on Wednesday, both seen by Reuters.

The current draft welcomes the ceasefire proposal, describes it as “acceptable” to Israel, “calls upon Hamas to also accept it, and urges both parties to fully implement its terms without delay and without condition.”

It lists some details of the proposal – with “a full and complete ceasefire” in the Gaza Strip as part of phase one and “upon agreement of the parties, a permanent end to hostilities” in phase two.

But some council members have raised questions about whether Israel has actually accepted the plan and want the council to stick to a demand made in March for an immediate ceasefire and unconditional release of all hostages, diplomats said.

Russia proposed amendments to the US text, which were seen by Reuters, that included calling upon both Hamas and Israel to accept the proposal and demanding an immediate, unconditional and permanent ceasefire respected by all parties.

Moscow also wants the draft to stress that the phase one ceasefire will remain in place as long as negotiations continue on phase two, reflecting remarks made by Mr. Biden last week.

For months, negotiators from the US, Egypt and Qatar have been trying to mediate a ceasefire. Hamas says it wants a permanent end to the war in the Gaza Strip and Israeli withdrawal from the enclave of 2.3 million people.

Israel is retaliating against Hamas, which rules Gaza, over an Oct. 7 attack by its militants.

More than 1,200 people were killed and over 250 taken hostage by Hamas on Oct. 7, according to Israeli tallies. More than 100 hostages are believed to remain captive in Gaza.

Israel launched an air, ground and sea assault on the blockaded Palestinian territory, killing more than 36,000 Palestinians, according to Gaza health authorities. – Reuters

Trump suggests tariffs against nations including China over illegal immigration

Former U.S. President Donald Trump — REUTERS/LEAH MILLIS/FILE PHOTO

WASHINGTON – Republican presidential candidate Donald Trump said on Thursday he may impose tariffs on countries, including China, that do not curb the flow of undocumented immigrants from their territory to the United States, if he wins the US election in November.

Mr. Trump made the remarks at an event in the border election battleground state of Arizona while responding to an audience question and did not specify the size of tariff he would impose in such a scenario.

Asked about ways he would curb the flow of migrants crossing into the US illegally, Mr. Trump said: “We have tremendous economic power.” Mr. Trump said if a country, such as China, does not help to curb the flow of immigrants into the US, “we have these things called tariffs.”

Mr. Trump warned if other countries do not help to reduce it, then he could “tariff the hell out of that country” if re-elected.

Border security and immigration have emerged as top issues for Americans in the run-up to the Nov. 5 election where Trump will face US President Joe Biden, a Democrat, in a rematch of their 2020 White House contest.

The majority of people crossing into the US illegally are from Latin America. According to US government data the US Border Patrol arrested more than 27,000 Chinese migrants caught illegally crossing the border with Mexico from Oct. 1, 2023-April 30, 2024, part of a sharp increase in Chinese arrivals.

It was Mr. Trump’s first campaign event since a Manhattan jury on May 30 found him guilty on all 34 counts he faced of falsifying business records to cover up a $130,000 payment his former lawyer Michael Cohen made to adult film actress Stormy Daniels before the 2016 election for her silence about a sexual encounter she says they had.

Mr. Trump has denied any wrongdoing and vowed to appeal the verdict. On Thursday he called the trial “rigged”.

Mr. Trump lambasted Mr. Biden’s latest effort to crack down on people crossing America’s southern border illegally, an asylum ban similar to restrictions Trump tried to implement when he was president.

Mr. Biden took executive action on Tuesday that instituted a broad asylum ban on migrants caught illegally crossing the US-Mexico border.

Mr. Trump claimed Mr. Biden’s new plan was “outrageous” and a concession of “death and defeat” at the border, even though the Biden measure mirrored Trump-era policies to deter would-be migrants.

Mr. Biden has toughened his approach to border security as immigration has emerged as a major political problem for him.

Mr. Trump made a hardline stance on immigration a centerpiece of his administration and has vowed a wide-ranging crackdown if reelected.

Under Mr. Biden’s order, migrants caught crossing illegally could be quickly deported or turned back to Mexico under the measure, which took effect on Wednesday.

There are exceptions for unaccompanied children, people who face serious medical or safety threats and victims of trafficking, the US Department of Homeland Security said.

Mr. Trump called Mr. Biden’s measure “bullshit”, eliciting a chant of “bullshit” from his friendly audience in Phoenix. Mr. Trump said he would rescind Mr. Biden’s measure on his first day in office if reelected.

Mr. Trump claimed without evidence that Mr. Biden’s asylum ban would allow a minimum of 2 million “illegal alien border crossers” into the US each year.

Asked how Mr. Trump reached that figure, Mr. Trump’s campaign did not immediately respond.

US Border Patrol arrested some 2 million migrants crossing illegally in the fiscal year ending Sept. 30, 2023, and the country has seen similar figures this year. But Biden’s latest move aims to reduce attempted crossings, not maintain current levels.

Mr. Trump also said he could move US troops stationed abroad back home to patrol the southern border.

Mr. Biden has pushed unsuccessfully for months to pass a Senate bill crafted by a bipartisan group that would toughen border security but Republicans rejected it after Trump opposed it.

Kevin Munoz, a Biden campaign spokesman, said in a statement: “Donald Trump blocked the toughest, fairest bipartisan border legislation in a generation. He did it because he thinks it will help him politically”. Mr. Munoz added Mr. Trump’s role in killing the bill allows him to claim the immigration system is “broken”.

Several people were seen being taken out on stretchers from Mr. Trump’s event due to heat exhaustion after lining up for hours in temperatures approaching 110 degrees Fahrenheit (43 degrees Celsius). – Reuters

Philippines accuses Chinese coast guard of ‘barbaric’ blocking of medical evacuation

PHILIPPINE COAST GUARD/HANDOUT VIA REUTERS

MANILA – The Philippine coast guard on Friday accused its Chinese counterpart of blocking efforts to evacuate a sick member of its armed forces in the South China Sea, calling its actions “barbaric and inhumane”.

The incident, which the Philippines said took place last month, involved a member of a small contingent of marines posted to guard the BRP Sierra Madre, a Philippine vessel grounded at the disputed Second Thomas Shoal, the site of repeated confrontations with China this past year.

Coast Guard spokesperson Jay Tarriela said coast guard and navy boats were harassed by Chinese vessels, despite having informed them the operation was of a medical nature.

“The barbaric and inhumane behavior displayed by the China Coast Guard has no place in our society,” Mr. Tarriela said in a statement.

China’s embassy in the Philippines has acknowledged a request for comment, but did not immediately respond with a statement.

Mr. Tarriela said the Chinese coast guard “engaged in dangerous manoeuvres and even intentionally rammed” a navy boat while it was transporting the sick personnel.

“What should have been a simple medical evacuation operation was subjected to harassment,” Mr. Tarriela said.

Philippine military chief Romeo Brawner said on Tuesday the first attempt to transport the sick soldier to the western province of Palawan failed after they were blocked by the Chinese.

Another attempt was made the next day with the help of the Philippine coast guard and the soldier was successfully evacuated, Brawner said.

China claims almost the entire South China Sea, a conduit for more than $3 trillion in annual ship commerce, and has deployed hundreds of coast guard vessels as far as 1,000 km off its mainland to police what it says is its jurisdiction.

The Philippines and China have sparred repeatedly this past year near disputed features that fall in Manila’s exclusive economic zone. China routinely accuses the Philippines of encroachment while Manila and its allies have condemned what they calls aggression by Beijing.

In 2016, the Permanent Court of Arbitration in the Hague said China’s claims had no legal basis, a decision Beijing has rejected. – Reuters

APM LEAD Executive Summit 2024: Uniting visionary leaders for sustainable progress

On May 10, 2024, Erudite Reliability Services OPC hosted its first Executive Summit, a premier event for leaders in asset-intensive industries.

The event aimed to accelerate progress towards the UN Sustainable Development Goals (SDGs) by unifying leaders and innovators to collaborate and talk about Sustainable Futures: “Pathways to Progress: Unifying Strategies, Management, and Innovation for SDG Success.” The event served as a platform for showcasing sustainability initiatives and discussing strategies to propel businesses toward a sustainable future.

The APM LEAD Executive Summit began with an inspiring message from Wins Bernal, president of Erudite Reliability Services and event producer, emphasizing the crucial role of collaboration in achieving SDGs. Bernal shared his motivation for initiating this event, driven by “a vision of a better Philippines and a fervent desire to contribute to positive change.” He also acknowledged the presence of distinguished guests and eight of the 12 esteemed members of the APM LEAD Conference and Exhibition 2024 Advisory Council, who attended to support the event’s vision. Among the industry leaders who have attended and contributed to the discussions are Shireen Prince from Aboitiz Power, Dr. Abegail Tongco from Profiles Group, Thomas Goodwin from Manila International Container Terminal, Toribio Noel Ilao from the Department of Public Works and Highways (DPWH), Rolando Pacquiao of Hedcor, and more. The event was also supported by industry leading providers in technology and certification such as Nanoprecise, DQS Enterprise, GHD, and PECB who have showcased their sustainable products and solutions as well.

The event was a resounding success, highlighting the critical role of asset management in achieving sustainability goals. By unifying strategies, management, and innovation, it provided a roadmap for organizations to navigate the complexities of sustainable development. It not only showcased the challenges faced by leaders but also offered a platform for sharing innovative solutions and best practices. As the global landscape continues to evolve, the insights and connections gained from this summit will be instrumental in propelling businesses forward on their sustainability journeys.

The APM LEAD Executive Summit 2024 successfully addressed the challenges contemporary leaders face by presenting pioneer and sustainable solutions. The discussions and presentations offered practical strategies that organizations could implement to achieve SDG success. Attendees left the summit with a renewed sense of purpose and actionable insights to drive sustainability initiatives within their organizations. High-profile attendees, including industry executives and thought leaders, praised the summit for its comprehensive approach and the quality of the content delivered. This positive feedback underscored the event’s effectiveness in providing valuable knowledge and fostering collaboration among industry leaders.

In essence, the APM LEAD Executive Summit 2024 receiving high praise from its guests as well as panelists for the initiative and vision of the event in unifying and accelerating the global goals opens a greater and more in depth collaboration on July 3-5, 2024 for the APM LEAD Conference and Exhibition 2024: Sustainable Futures.

 

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Jobless rate rises to 3-month high

People attend a job fair at a mall in Pasay City. The unemployment rate rose to a three-month high in April, the statistics agency said. — PHILIPPINE STAR/JOHN RYAN BALDEMOR

By Abigail Marie P. Yraola, Deputy Research Head

THE PHILIPPINE unemployment rate climbed to a three-month high in April, while the quality of jobs deteriorated, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data of the PSA’s latest Labor Force Survey (LFS) showed national unemployment rate — the share of the jobless Filipinos to the total labor force — inched up to 4% in April from 3.9% in March but lower than 4.5% a year ago.

April saw the highest unemployment rate in three months or since 4.5% in January.

Philippine Labor Force Situation

This translated to 2.04 million unemployed Filipinos in April, up by 41,000 from March. It was 215,000 lower than the 2.26 million jobless a year ago.

For the first four months, the unemployment rate averaged 4%, lower than  4.7% in the same period a year ago.

PSA Undersecretary and National Statistician Claire Dennis S. Mapa said El Niño was the main culprit for the rise in the unemployment rate, especially in the agriculture sector.

“We saw that the crop production in the first quarter declined due to the impact of El Niño. Because the production was lower, you have that decrease in (the number of) employed,” Mr. Mapa said in a mix of English and Filipino during the briefing.

The agriculture sector is the second-largest employer in the country and contributes over a tenth to the economy.

“The slight increase in the unemployment rate, along with the sharp rise in the underemployment rate, reflects economic and seasonal fluctuations, sector-specific downturns, and possible structural changes within the economy,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Mr. Roces said the impact of El Niño has reduced labor demand in the agricultural sector, which will eventually affect related industries such as food processing and distribution.

At the same time, job quality deteriorated in April as the underemployment rate went up to 14.6% from 11% in March and 12.9% in April 2023.

PSA data showed the April underemployment rate was the highest in nine months or since the 15.9% recorded in July 2023.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — rose to 7.04 million in April, up by 1.65 million from March.

Year to date, the average underemployment rate was 13%.

“The rise in underemployment may be attributed to certain subsectors, namely wholesale and retail trade, agriculture and forestry and accommodation and food service activities,” PSA’s Mr. Mapa said.

The employment rate, on the other hand, dipped to 96% in April from 96.1% in March but still an improvement from 95.5% in April last year.

This was equivalent to 48.36 million employed Filipinos in April, a decrease of 798,000 from 49.15 million employed individuals in the prior month.

Year on year, 297,000 Filipinos gained employment.

The employment rate averaged 96% in the first four months compared with 95.3% a year earlier.

PSA data also showed that 50.40 million people were part of the labor force in April 2024. The labor force size fell by 757,000 month on month but grew by 82,000 from 50.31 million in April 2023.

As a result, the labor force participation rate (LFPR) — the proportion of the working-age population (15 years old and over) that is part of the total labor force — slipped to 64.1 % in April, lower than 65.3% in March and 65.1% a year ago.

Year to date, the average LFPR was 63.8%.

“The government aims to assist Filipino workers in the digital age. Initiatives include reducing job search duration, upskilling the workforce, and facilitating the transition towards higher-income jobs,” he said.

By sector, services remained the top employer in April with an employment rate of 61.4%, followed by agriculture with 20.3% and industry with 18.3%.

In April, agriculture and forestry saw jobs fall by 684,000 to 8.35 million, the biggest monthly loss among sectors. It was followed by wholesale and retail trade (down 602,000 down to 10.14 million) and public administration and defense (down 466,000 to 2.82 million).

Meanwhile, month-on-month job gains were recorded in fishing and aquaculture (up 413,000 to 1.44 million), transportation and storage (up 192,000 to 3.75 million), and accommodation and food service activities (up 192,000 to 2.75 million).

On an annual basis, agriculture and forestry shed the most workers at 818,000, followed by wholesale and retail trade (down 587,000) and human health and social work activities (down 85,000).

On the other hand, accommodation and food service activities posted the biggest yearly job gains in April, adding 638,000 workers. Construction saw an increase of 378,000 workers while transportation and storage were up by 289,000.

Wage and salary workers still had the largest share of the labor force at 63.6% in April.

The average Filipino employee worked for 40.5 hours a week in April, slipping from 40.7 hours in March but still more than the 36.9 hours in April last year.

Makoto Tsuchiya, an economist at Oxford Economics, expects the country’s unemployment rate to edge higher and peak at around 4.5% this year amid softening domestic demand and tepid global growth.

Julius H. Cainglet, vice-president for Research, Advocacy and Partnerships at the Federation of Free Workers, said the continued importation of agricultural products has hurt employment in the domestic agricultural sector.

In an e-mail, he said it is critical for key industries and small businesses to receive government support to improve labor conditions and create more decent employment opportunities.

For Mr. Roces, the labor market outlook will depend on several factors such as potential economic recovery, policy interventions, seasonal trends, and the ongoing impact of El Niño.

“While emerging sectors might provide new opportunities, stability will hinge on how these variables play out in the coming months,” Mr. Roces said.

The latest LFS was conducted from April 8 to 20, with 44,890 sample households.

BSP likely to keep policy stance tight

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) is still likely to keep its policy settings tight even as inflation settled within the target for a sixth straight month in May.

“The BSP will likely keep its monetary policy restrictive in the first half of the year as inflation risks (are) seen to persist in the near term,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a statement.

Policy easing may only be considered once inflation stabilizes within the 2-4% target in the third or fourth quarter, he added.

“We continue to note the possibility of rate cut delay, given that the Philippine economy maintains a healthy pace of growth,” Citi Economist for the Philippines Nalin Chutchotitham said.

The central bank could cut rates as early as August, BSP Governor Eli M. Remolona, Jr. previously said.

At its May meeting, the Monetary Board kept the benchmark rate steady at a 17-year high of 6.5%. Its next policy review is on June 27.

The central bank raised borrowing costs by 450 basis points (bps) from May 2022 to October 2023 to tame inflation.

“Looking ahead, although we think upward momentum may persist in the next two months given unfavorable base effects, weaker peso and lingering food supply issues, we are still on track to achieve sub-4% as early as August,” Mr. Neri said.

This is in line with the BSP’s expectation that inflation could breach the 2-4% target band until July amid base effects.

Headline inflation quickened to 3.9% in May from 3.8% in April, its fastest print in six months or since 4.1% in November. May also marked the sixth straight month that inflation settled within the 2-4% target range.

“Some upside risks to inflation remain, from potential adjustments of excise taxes and minimum wages. Hence, we continue to expect the BSP to start cutting policy rates only in August, once inflation has peaked around July,” Ms. Chutchotitham said.

The recent peso weakness may also delay the BSP’s easing cycle, Ms. Chutchotitham said.

“Additionally, we think in the event of high FX (foreign exchange) volatility, the BSP might also opt for delayed rate cuts to support the peso, especially if the Fed begins cutting later than July,” she said.

Mr. Neri said the timing and magnitude of the BSP’s rate cuts would depend on the Fed. “If local inflation conditions are right, the BSP will likely respond immediately with rate cuts once the Fed begins its easing cycle,” he said.

Nearly two-thirds of economists are now predicting the Fed will cut interest rates in September, according to Reuters’ May 31-June 5 poll, offsetting recent bearish supply news, Reuters reported.

“If the BSP reduces its policy rate ahead of the Federal Reserve, a narrowed interest rate differential increases the risk of currency depreciation, which could outweigh recent deceleration in food prices,” Mr. Neri said.

Mr. Neri said the peso may appreciate in the second half of the year, when the Fed is expected to begin easing.

“However, while a Fed cut might lead to peso appreciation, its gains are likely to be smaller compared to other emerging market currencies given the substantial current account deficit of the country,” he added.

Mr. Remolona earlier said that the BSP does not need to “wait” for the Fed to cut before starting its own easing.

Meanwhile, Citi expects 25-bp rate cuts by the BSP in August, October and December, followed by 25-bp rate cuts in February, May and August 2025.

“Our forecasts are based on the assumption that the BSP would adjust policy stance to ensure that it is not too tight to support economic momentum,” Ms. Chutchotitham said.

However, Mr. Neri said he expects the central bank to reduce rates by 50 bps this year.

“We now expect a rate cut of around 50 bps this year, assuming the Federal Open Market Committee (FOMC) eases sometime in the second semester,” he added.

Meanwhile, Nomura Global Markets Research said it expects the BSP to only begin cutting rates in October, when inflation is “more entrenched within its 2-4% target.”

“Importantly, amid an improving inflation outlook, we still think BSP is unlikely to start easing before the Fed (our US team expects a first cut in September), in order to avoid adding to recent FX pressures under BSP’s flexible market-determined FX regime, which we believe BSP is clearly still sticking to.”

Nomura expects a total of 50 bps of rate cuts this year and another 100 bps for next year, bringing the key rate to 5%.

Two million Filipino children living in severe food poverty — UNICEF

AROUND TWO MILLION Filipino children under five years old are living in severe food poverty, United Nations Children’s Fund (UNICEF) said. — PHILIPPINE STAR/EDD GUMBAN

AROUND TWO MILLION Filipino children are living in severe food poverty, putting them at risk of malnutrition, according to a new report by the United Nations Children’s Fund (UNICEF).

In a report entitled “Child Food Poverty: Nutrition deprivation in early childhood,” UNICEF said 18% of Filipino children under five years old, equivalent to two million, are considered severely food poor since they consume two or fewer of the eight major food groups a day.

The eight food groups include breastmilk, grains and roots, pulses and nuts, dairy products, meat, poultry and fish, eggs, Vitamin A-rich fruits and vegetables, and other fruits and vegetables.

“Four out of five children in this situation are fed only breastmilk/milk and/or a starchy staple, such as rice, corn, or wheat. Less than 10% of these children are fed fruits and vegetables. And less than 5% are fed nutrient-dense foods such as eggs, fish, poultry, or meat,” it said.

At the same time, 35% of Filipino children under five are living in “moderate food poverty” which means they consume three to four food groups a day.

“Children living in severe food poverty are children living on the brink. This can have an irreversible negative impact on their survival, growth, and brain development. Children who consume just rice and some vegetable soup a day are up to 50% more likely to experience severe forms of malnutrition,” UNICEF Representative to Philippines Oyunsaikhan Dendevnorov said in a statement.

UNICEF said there are 440 million children under five years old that are living in food poverty around the world. Of this total, 181 million children are living in severe food poverty.

The Philippines is one of 20 countries that account for 65% of the children living in severe food poverty globally, it said.

“Almost two-thirds of the total number of children living in severe child food poverty are concentrated in just 20 of these countries: Afghanistan, Bangladesh, China, Côte d’Ivoire, the Democratic Republic of the Congo, Egypt, Ethiopia, Ghana, India, Indonesia, Myanmar, the Niger, Nigeria, Pakistan, the Philippines, Somalia, South Africa, Uganda, the United Republic of Tanzania and Yemen,” it said.

Severe food poverty is not just driven by the inability to buy nutritious food, but also the failure to sustain positive feeding practices.

“Nearly half (46%) of all cases of severe child food poverty are among poor households where income poverty is likely to be a major driver, while 54% — or 97 million children — live in relatively wealthier households, among whom poor food environments and feeding practices are the main drivers of food poverty in early childhood,” it said.

An “alarming” proportion of children in severe food poverty are consuming more “cheap, nutrient-poor” ultra-processed foods and sugar-sweetened beverages, UNICEF said.

“Consumption of unhealthy products was particularly high in Egypt, Kenya, Kyrgyzstan, Lebanon, Nepal and the Philippines, where more than one in five children consumed an unhealthy food and/or sweet beverage — despite these children consuming two or fewer food groups per day,” it said.

To address food poverty, UNICEF urged the government to ensure the availability of affordable food products and to use health systems to deliver nutrition services to prevent and treat malnutrition in early childhood.

The government should also provide cash, food or voucher subsidies to support poorer households, UNICEF said. — B.M.D.Cruz

PEZA says it approved P6.87 billion worth of projects in May

THE PHILIPPINE Economic Zone Authority (PEZA) approved 22 new and expansion projects worth P6.87 billion in May, with the value dropping 54% from a year ago.

In a statement on Thursday, the investment promotion agency (IPA) said the approved investments last month are expected to generate $100.81 million in exports and create 4,616 jobs.

However, it was 54% lower than the P14.93 billion worth of investments approved in May last year.

“The approvals reflect an increase of 10% in new and expansion projects from 20 approved in May 2023 and a 3.04% increase in direct employment from 4,438 recorded in the same month last year,” PEZA said.

The 22 approved investments comprise 10 export manufacturing projects, nine information technology and business process management (IT-BPM) projects, two domestic projects, and one facility development project.

“One Japanese enterprise registered a whopping P3.9-billion big-ticket project into the manufacturing of semiconductor devices and other electronic components in Cebu,” the IPA said.

In terms of location, 12 projects will be in Calabarzon, three in the National Capital Region, three in Central Visayas, two in Western Visayas, one in Central Luzon, and one in the Davao Region.

According to the IPA, the approved activities range from high-tech manufacturing to IT-BPM facilities.

“This variety not only provides robust employment opportunities but also enhances the overall resilience of the Philippine economy, making it less susceptible to sector-specific downturns,” it added.

The projects approved last month brought PEZA’s approved investments for the year to P36.83 billion, a 19.16% decline from the P48.03-billion approved investments in the same period last year.

In the January-to-May period, the IPA has approved 95 new and expansion projects, which are projected to generate $1 billion worth of exports and 19,000 jobs.

“The rise in the number of approved projects emphasizes PEZA’s pivotal role in catalyzing investment inflow and fostering sustainable employment across various sectors,” said PEZA Director-General Tereso O. Panga.

PEZA also said that the investments approved in the first two months of the second quarter have already surpassed the P14.95-billion approvals in the first quarter. 

From April to May, PEZA approved P21.87 billion worth of investments, representing a 4.63% increase from the approved investments in the January-to-March period.

“The consistent rise in employment rates also suggests a positive trajectory for consumer spending and economic stability, which in turn may attract further foreign direct investments,” PEZA said. — Justine Irish D. Tabile

Ayala Land triumphs at the 14th Asian Excellence Awards

Ayala Land took home six wins at the 14th Asian Excellence Awards including Best Investor Relations Professional, Asia's Best CFO, Best Investor Relations Company in the Philippines, Sustainable Asia Award, Asia's Best CEO, and Asia’s Best CSR Award.

Corporate Governance Asia recognized Ayala Land, Inc. (ALI) in multiple categories in its 14th Asian Excellence Awards, held last May 30, 2024, at JW Marriott Hong Kong.

ALI’s President and CEO, Anna Ma. Margarita B. Dy, was celebrated as Asia’s Best CEO. This recognition affirms the significant strides Ayala Land has made under her stewardship. Dy’s strategic direction and leadership have been pivotal in driving the company’s new growth plans. Meanwhile, Augusto D. Bengzon, the company’s Chief Finance Officer and Chief Compliance Officer, was honored as Asia’s Best CFO. Bengzon’s financial expertise and insight have helped steer ALI’s strategies and ensured sustained financial health and compliance which have been fundamental to the company’s success.

(L-R): Ayala Land Chief Sustainability Officer Robert Lao, President and CEO Anna Ma. Margarita “Meean” Dy, CFO and Chief Compliance Officer Augusto Bengzon, and Investor Relations Head Michael Anthony Garcia

Ayala Land’s dedication to sustainability and corporate responsibility was also accorded with the Sustainable Asia and Asia’s Best CSR awards. These recognitions highlight the company’s ongoing efforts to integrate sustainable practices into its operations and its commitment to positively impacting the communities it serves. Furthermore, ALI was also recognized as the Best Investor Relations Company in the Philippines, and Michael Anthony L. Garcia, Head of Investor Relations, was recognized as the Best Investor Relations Professional.

“We are honored to receive these awards,” said Dy. “They reflect the dedication and hard work of our entire team, who continually strive for excellence in all aspects of our business. These recognitions inspire us to further our commitment to sustainable and responsible business practices.”

Ayala Land’s success at the Asian Excellence Awards not only highlights its leadership in the property sector but also underscores its broader commitment to sustainable development and responsible corporate governance, setting the benchmark in the industry.

 

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Hotels aim to cash in on Taylor Swift phenomenon with ‘gig-tripping’ perks

TAYLOR SWIFT in a scene from the 2023 concert movie Taylor Swift: The Eras Tour.

AS IT becomes clearer that Taylor Swift fans are more than happy to pay top dollar for their concert-going vacations, five-star hotels are starting to court the sequin set.

In London, the plush Four Seasons Hotel London at Park Lane has unveiled its own “gig-tripping package,” ahead of Ms. Swift’s series of eight Eras Tour shows at Wembley Stadium, which begins on June 21. Though it’s best known for its 10th floor spa with spectacular views of London and destination restaurant Pavyllon from star chef Yannick Alléno, it’s significantly turning up the volume this summer.

Among other perks, guests who book the package will find karaoke machines in their rooms — an invitation to belt their hearts out before or after the shows. Besides that, there are glittery welcome drinks, portable phone chargers for the show (also glittery), and friendship bracelet-making kits, an Eras Tour tradition. All this adds £200 ($319) to each booking on top of the standard room rates, which run around £1,000 a night in June — up to a 20% markup, depending on how long you stay.

Given the strong data supporting the “Taylor Effect” — a rise in spending tied to Ms. Swift’s shows — all around the world since the tour start in March 2023, it was only a matter of time before the hotel industry attempted to cash in with add-ons. Last year, the first leg of her US tour contributed $4.3 billion to gross domestic product, according to estimates from Bloomberg Economics. And Four Seasons is not the only hotel brand trying to get in on the fun: Marriott International, Inc. has used Ms. Swift’s popularity to court new loyalty members with sweepstakes packages and hotel events in such cities as Madrid and Stockholm.

Raquel Pirola, Park Lane’s marketing and sales director, says her team came up with the amenity as they saw more guests, particularly Gen Z and millennial travelers, working Four Seasons stays into itineraries that are driven primarily by concerts — not just in London but all around the world. The amenity comes ahead of the Swift tour dates, but it can be personalized around other concerts happening this summer, she says, citing excitement around the British Summer Time festival in neighboring Hyde Park. The lineup includes Kylie Minogue, Stevie Nicks, and SZA.

“In recent years, entertainment and cultural events have started to really drive luxury travel trends,” says Ms. Pirola, adding that she’s seen Americans booking the gig-tripping package. Luxury is the key word: A report from Skyscanner says 44% of US adults are willing to travel short-haul to see their favorite acts live, but only 18% are willing to fly long-haul for the same reason.

Still, the demand is significant enough to fill planes crossing the Atlantic. Data from United Airlines, Inc. shows bookings for US flights to Milan during Swift’s tour dates in July are up 45% compared with the same period last year. Demand for flights to Munich is similarly high, with bookings up 40% during the Eras shows.

The billionaire superstar is also outshining the Olympics, according to data from travel agency Embark Beyond shared exclusively with Bloomberg, which showed Ms. Swift being a bigger driver of demand to Paris for luxury travelers than the upcoming games in Paris. For example, the Shangri-La Paris saw a 120% increase in bookings over Ms. Swift’s travel dates in May, giving the palace hotel a revenue boost before peak summer season, according to data from the hotel shared with Bloomberg. The Shangri-La has launched a concert concierge in response; the hotel’s teams can arrange things like pre-show beauty services to help guests get bejeweled before the gigs.

Ms. Pirola is confident that the story will play out similarly in London, where data from Barclays shows the Eras Tour is likely to provide a £1 billion boost to the UK economy. “Guests will no doubt find a Swiftie or two to exchange friendship bracelets with here at the hotel,” she says.

But there may be signs that hotels are coming into the phenomenon too late. Even as Ms. Swift continues to smash records, demand for concerts is fading, with some mid-tier acts struggling to sell tickets. Bad Bunny and the Black Keys have canceled tour dates this summer, while Jennifer Lopez canceled her entire tour.

For Swifties, getting a chance to sing “London Boy” inside a room at one of London’s top hotels could be a dream come true. But the hotel is aware that it’s not for everyone. Ms. Pirola says that the rooms are soundproofed well enough that guests blasting their hearts out to one of Ms. Swift’s chart-topping hits ahead of the Eras tour won’t keep any of their neighbors up at night. — Bloomberg

RLC to boost REIT unit with P33.9-B asset infusion

ROBINSONS CAINTA — WIKIMEDIA.ORG

By Revin Mikhael D. Ochave, Reporter

GOKONGWEI-LED Robinsons Land Corp. (RLC) will infuse 13 commercial assets into its real estate investment trust (REIT) unit in exchange for P33.9 billion worth of primary common shares under a property-for-share swap deal.

In separate disclosures on Thursday, RLC and RL Commercial REIT, Inc. (RCR) said their respective boards approved a property-for-share swap transaction between the two companies that is seen to bolster the latter’s portfolio.

RLC will subscribe to 4.99 billion RCR primary shares at P6.80 apiece, equivalent to P33.92 billion in exchange for 13 commercial assets covering 347,329 square meters (sq.m.) of gross leasable space (GLA).

The transaction brings RCR’s GLA to 827,808 sq.m. from the previous 480,479 sq.m.

“The assets have been selected based on RCR’s investment criteria of maximizing dividend yield accretion through the infusion of high-quality commercial properties that complement the company’s existing portfolio of sixteen premium assets,” RCR said.

The properties involved in the swap deal include 11 malls totaling 278,526 sq.m. of leasable space namely, Robinsons Novaliches, Robinsons Cainta, Robinsons Luisita, Robinsons Cabanatuan, Robinsons Lipa, Robinsons Sta. Rosa, Robinsons Imus, Robinsons Los Baños, Robinsons Palawan, Robinsons Ormoc, and Cybergate Davao.

The deal also includes two office assets totaling 68,803 sq.m. of leasable space, namely Giga Tower in the Bridgetowne Destination Estate, Quezon City, and Cybergate Delta 2 in Davao City.

“The planned asset infusion will diversify our predominantly office asset portfolio with the inclusion of mall assets. This is in line with RCR’s commitment to shareholders to continuously grow the company,” RCR President and Chief Executive Officer Jericho P. Go said in a separate statement.

“Our fund manager, RL Fund Management, Inc., has identified the assets that will maximize the additional value delivered to our shareholders,” he added.

RLC said the transaction is still subject to regulatory approval and will be presented for stockholders’ approval during RCR’s special stockholders’ meeting on July 15, to be completed within the year.

“Revenues shall accrue to RCR starting on April 1, 2024, subject to the approval of the stockholders and pertinent regulatory bodies. The company targets to secure regulatory approvals for the property-for-share swap within the year,” it said.

“After the infusion, RCR will remain as the Philippine REIT with the widest geographical reach, with assets in eighteen key locations,” it added.

Sought for comment, AP Securities, Inc. Research Analyst Jose Antonio B. Cipres said in a Viber message that the transaction bodes positively for RCR.

“We see this as a positive progression for the company especially given the cloudy atmosphere surrounding offices primarily due to the emergence of work-from-home setups. We reiterate our bullishness towards the mall segment on the back of eventual pickup in consumer demand which would in turn boost mall occupancy,” he said.

“This is positive as well as majority of their infusions right now is outside Metro Manila wherein demand is currently shifting,” he added.

Mr. Cipres added that the transaction makes RCR more attractive to investors.

“The infusion is a substantial addition of 72.3% to RCR’s current GLA. It makes RCR all the more attractive not only because of its higher yield versus other REITs but also its diversification strategy,” he said.

For the first quarter, RCR’s net income rose by 4% to P1.12 billion. Its current investment portfolio following the infusion includes about 1.4 million sq.m. of leasable mall spaces, approximately 253,000 sq.m. of remaining leasable office spaces, 26 hotels with a total of 4,243 room keys, and 244,000 sq.m. of leasable logistics facilities.

On Thursday, RCR shares rose by 3.8% or 19 centavos to P5.19 apiece while RLC stocks gained by 0.51% or eight centavos to P15.68 per share.

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