In a rebel-held Myanmar town, fragile unity pushes junta to the brink

April 18, 2024 | 1:21 pm

Flag of Myanmar | STOCK PHOTO | Image by www.slon.pics on Freepik

MYAWADDY, Myanmar – Myawaddy, a critical trading post in Myanmar that rebel forces seized from the ruling junta last week, offers a glimpse of dynamics playing out across the Southeast Asian country as its vaunted military reels from battlefield losses.

At the border town’s outskirts, the site of the most intense fighting, abandoned homes sat next to buildings pockmarked with bullet holes, gas stations damaged by blasts and structures flattened by airstrikes, Reuters reporters saw on a visit this week.

Rebels who fought against junta troops in Myawaddy described a demoralized military that was unwilling to hold its ground.

“We managed to seize three bases and control the area in a very short period of time,” said Saw Kaw, a commander of a rebel unit involved in the battle for Myawaddy. “Then, they fled.”

Guards from ethnic militias until recently loyal to the military administration roamed streets in the town – normally a conduit for over $1 billion of annual border trade with nearby Thailand. Those fighters stood aside when forces led by the Karen National Union (KNU) laid siege in early April.

Reuters gained rare access to rebel-held territory on Monday and interviewed seven resistance officials for this story, alongside three Thai officials with detailed knowledge of the conflict and four security analysts.

They provided insight into the delicate diplomacy between armed groups with longstanding rivalries as they seek to hold key population centers and keep the junta they want to topple on the backfoot.

The fall of Myawaddy means that Myanmar’s two most important land border crossings are in resistance hands, after the rebels last year claimed control of Muse, near the Chinese border.

Rebel successes have now cut off the cash-strapped junta from almost all the country’s major land borders, with the economy in free-fall and poverty doubling since 2017, according to U.N. data.

The Thailand-based Institute for Strategy and Policy-Myanmar (ISP) think-tank said in an estimate after Myawaddy’s fall that the junta has been deprived of 60% of land-based customs revenue.

It leaves the junta, which has failed to repel any major rebel offensive since October, in its weakest position since its 2021 coup against Aung San Suu Kyi’s elected civilian government, according to analysts.

Neighbors such as Thailand, who were previously focused on engaging the junta, have started to rethink their stance on the conflict.

Thai Vice Foreign Minister Sihask Phuangketkeow told Reuters on Wednesday that Thai security officials have been in communication with the KNU and other groups and that they were “open to more dialogue,” particularly on humanitarian issues.

“We don’t blindly side with the Myanmar military but because we want peace we have to talk to them,” he said.

A junta spokesperson did not respond to calls from Reuters seeking comment.

Junta chief Gen. Min Aung Hlaing has accused rebel groups of seeking to undermine Myanmar’s unity through armed insurgency and his government has called resistance fighters “terrorists.”

The Democratic Karen Buddhist Army and Karen National Army (KNA), the forces still patrolling parts of Myawaddy and its vicinity even after they abandoned the junta, did not return requests for comment. The groups have not pledged loyalty to the resistance.

PATCHWORK OF FIGHTERS

At the western edge of Myawaddy, Col. Nadah Htoo, a senior commander of Brigade 6 of the KNU’s armed wing, one of Myanmar’s oldest ethnic fighting forces, was thinking about next steps after leading the patchwork of resistance fighters that defeated the army in roughly a week.

Surrounded by armed guards as he chewed betel leaves and peered over his Louis Vuitton sunglasses, Nadah Htoo described ongoing talks with other ethnic armed groups about fighting the junta locally. Reuters has also reported that recent coordination between rebel armies in other parts of Myanmar has taken place at an unprecedented level.

For decades, the country of 55 million has been riven by insurgencies along its borderlands, where some two dozen ethnic armed groups operate. Many of them are part of, or supporting, the resistance.

Nadah Htoo and another resistance official acknowledged the challenges of maintaining cooperation over the course of what both expect will be a difficult war against a better-armed military.

“We have to constantly coordinate so there won’t be any mistake,” the colonel told Reuters. He declined to be photographed or filmed until the operation ended, citing security concerns.

In Myawaddy, Reuters observed at least three armed groups coordinating to maintain control, reflecting recent rare cooperation among rebel forces that share a common enemy in the junta but otherwise have different interests.

Most of the rebels who took Myawaddy were ethnic Karen, though they fought along some ethnic Burman members of the national resistance, said rebel commander Saw Kaw.

“The first thing (is that) we don’t kill each other,” said spokesman Saw Taw Nee of tensions between his KNU and other ethnic Karen groups that were allied to the junta until this month. “And then we start from that.”

MEANING OF MYAWADDY

Last October, three rebel groups, including the powerful Arakan Army (AA), led Operation 1027, a major offensive that saw the resistance take wide swathes of military-controlled areas along the border with China.

“After 1027, we saw the AA in Arakan starting to push. When the AA eased, then we decided to push,” said KNU’s Nadah Htoo, describing how different rebel groups were hitting the military with successive offensives across multiple areas.

The junta “is fighting the war on too many fronts,” said Lalita Hanwong, an assistant professor at Thailand’s Kasetsart University.

“If you look back from the beginning of Operation 1027, the towns that the resistance forces seized have never been regained.”

In the battle for Myawaddy, KNU-led forces encircled the town and pushed the local junta administration to the point of collapse before taking over, said Nadah Htoo.

Reuters couldn’t independently verify the tactics he described. The KNU’s armed wing has previously surrounded junta positions before launching decisive assaults.

Some 200 junta troops remain trapped near a bridge between Myawaddy and Thailand, Nadah Htoo told Reuters, saying they could either surrender to the Thais or the KNU.

The colonel and Bangkok-based security analyst Anthony Davis expect the junta to attempt to retake Myawaddy in the coming weeks to hinder resistance access to an important nearby highway that cuts through the heart of Myanmar.

Some army reinforcements have already been repelled by the KNU en route to the town, and Nadah Htoo said KNU’s political administrator would only take control of Myawaddy after the military operation concluded.

The junta is keen to regain control of Myawaddy, a critical trading centre and its main gateway to Southeast Asia, Davis said.

Around 14% of Myanmar’s total trade via land borders between April 2023 and March 2024 – totaling about $1.15 billion – went through Myawaddy, according to government data.

Control of territory near the borders can also be lucrative: the U.N. and the British government have in the last year accused senior KNA leaders of using territory near Myawaddy to run scam centers and illegal casinos.

Reuters could not determine how resistance forces have deployed the customs revenue collected at border points they control. The ISP think-tank said trade at some crossings was suspended.

END GAME

Losses around Myanmar’s frontiers have increasingly pushed the army into Myanmar’s Buddhist-dominated heartland, once fertile army recruiting ground.

The junta is now ensnared there in a low-intensity conflict with hundreds of militia groups known as People’s Defence Forces (PDFs), many of whom are aligned with the KNU and a shadow administration that includes members of the deposed civilian government.

The junta remains a formidable opponent likely to retain control over government and the heartland, unless there was a mutiny or external intervention, Morgan Michaels of the International Institute for Strategic Studies wrote in a March analysis.

However, military setbacks closer to central Myanmar could cut off the junta’s access to key transport arteries and deal a major psychological blow to its army, already bleeding troops, said Davis, adding that it could “accelerate its retreat and potential collapse.”

Either way, KNU officials, rebel fighters and analysts foresee more violence and no easy victory, even as the resistance pushes to coordinate operations and retain momentum.

“In our country (there are) so many groups and so many differences,” said Saw Taw Nee. “We will take time and we will be united.” – Reuters

Anti-LGBTQ+ laws in Ghana and Uganda feel the heat from sanctions

April 18, 2024 | 1:13 pm

lgbt-pride-flag-blue-sky-background — CHANDLERVID85-FREEPIK

LAGOS/LONDON (Thomson Reuters Foundation) – A ruling this month by Uganda’s Constitutional Court to water down a tough anti-LGBTQ+ law may have stemmed from concern to avoid further international sanctions over the controversial legislation, rights activists and analysts say.

The court’s decision to strike out several of the law’s most contentious clauses came weeks after a similar law passed by Ghana appeared to have hit a roadblock amid Finance Ministry warnings it could derail $3.8 billion in international aid.

Steven Kabuye, a Ugandan LGBTQ+ activist, said the court’s April 3 ruling appeared aimed at appeasing international donors who had raised particular objections about the affected clauses on the grounds that they created barriers to health services such as HIV/AIDS care.

“Most of these donors came out openly and said they won’t fund the (health) sector unless it’s inclusive,” Mr. Kabuye told the Thomson Reuters Foundation by phone from Canada, where he has been living since he was stabbed in a homophobic attack in Uganda earlier this year.

Uganda’s Anti-Homosexuality Act was enacted in May 2023, imposing the death penalty for “serial offenders” and up to 20 years in prison for the “promotion of homosexuality” – be it publishing pro-LGBTQ+ material or providing financial support to LGBTQ+ rights groups.

The United States and the World Bank responded by imposing sanctions on the East African country.

But this month’s ruling struck down two of the law’s most controversial measures – the death penalty for anyone who transmits a terminal illness, such as HIV/AIDS, through gay sex, and a “duty to report” suspected homosexual acts to the police.

Major HIV/AIDS donors including UNAIDS had warned that the “duty to report” clause could have required health professionals to report LGBTQ+ patients – putting progress on fighting the disease in “grave jeopardy”.

Uganda’s health sector is highly reliant on international funding. At the end of March, Health Minister Jane Ruth Aceng told parliament 85% of healthcare funding came from foreign donors.

Asked about the suggestions that the court had been swayed by fears over the possible loss of such donors, a spokesperson for the Ugandan judiciary said “the decision (is) very clear, based on the law and objective principles of state policy”.

Critics of Ugandan President Yoweri Museveni say judicial independence has significantly eroded during his long rule.

SANCTIONS BACKLASH

Despite the watering down of the law, Mr. Kabuye said the fact that many of its draconian measures remained in force showed sanctions – and the threat of more – had only been partially effective.

“The sanctions that have been put in place have not been enough to force Uganda to respect queer rights,” he said.

The possibility of similar international sanctions did not stop lawmakers in Ghana from passing a tough anti-LGBTQ+ bill in February.

But President Nana Akufo-Addo has not yet signed the legislation into law and said last month the West African country would not backslide on its human rights record.

At the same time, the Finance Ministry said the bill could lead to a loss of $3.8 billion in World Bank financing over the next five to six years if it became law, derailing a $3 billion loan package from the International Monetary Fund (IMF).

Mr. Akufo-Addo has not spoken publicly about the bill’s potential economic impact, and a senior presidency official has said it should not be passed to the president for assent until two legal challenges against it are settled.

The risk of economic sanctions is probably what stopped Mr. Akufo-Addo from immediately signing the bill into law, said Patrick Asuming, an Accra-based economist and senior lecturer at the University of Ghana Business School.

“Usually, the threat of sanctions works more than the sanctions themselves,” Mr. Asuming said.

International sanctions on African countries are controversial, with critics saying they can backfire by hitting the poor and causing public anger over Western meddling in a nation’s affairs.

When the World Bank halted new funding to Uganda in August, Museveni responded in a defiant tone.

“It is … unfortunate that the World Bank and other actors dare to want to coerce us into abandoning our faith, culture, principles and sovereignty, using money. They really underestimate all Africans,” he said.

Robert Amoafo, advocacy manager at LGBTQ+ rights group Pan Africa ILGA said “direct sanctions on key advocates” of anti-LGBTQ+ legislation were likely to be more effective than broad-based sanctions.

They can be a tool for prompting deeper consideration by lawmakers, he said.

“It will let people start reflecting (over) whether (what) we are going to do is good or not,” Mr. Amoafo said.

They could also push African countries to seek closer economic ties with countries that are less concerned about anti-LGBTQ+ legislation, Mr. Asuming said.

The memo from Ghana’s Finance Ministry advising the country’s president not to sign the anti-LGBTQ+ bill into law also recommended “engagement with conservative countries, including the Arab countries and China” to secure additional financing.

“It is clear that China is becoming a huge partner for African countries and that has completely changed the balance of how we see western sanctions,” Mr. Asuming said.

“Obviously, the Chinese do not really impose conditions on anti-LGBTQ+ laws.” – Reuters

Brazil’s proposal to tax super-rich gains momentum amid G20, next steps in July

April 18, 2024 | 1:08 pm

Account Assets Audit Bank Bookkeeping Finance Concept

WASHINGTON – Brazil’s proposal to tax the super-rich globally gained momentum among Group of Twenty members on Wednesday, with France’s finance minister and the head of the International Monetary Fund backing a coordinated push to generate new revenue and build a better common future.

Brazilian Finance Minister Fernando Haddad said Brazil, current president of the Group of Twenty (G20), was aiming to build international consensus on the taxation of wealth this year, and would push for a joint declaration at a meeting of G20 finance ministers and central bankers in July.

“The G20 declaration that we are going to propose aims to politically back these initiatives,” he told an event during the spring meetings of the IMF and the World Bank, underscoring the importance of winning support from the biggest economies.

His French counterpart Bruno le Maire, who had already expressed support for the Brazilian proposal, told the event that moving to tax the rich was the logical next step for a series of global taxation reforms launched in 2017, including agreement on a global corporate minimum tax. He said the G20 should aim to reach an agreement on taxing the rich by 2027.

Mr. Le Maire said any proposal should be based on the best practices of the Organization for Economic Cooperation and Development to ensure trust in the evolving system.

IMF chief Kristalina Georgieva said closing tax loopholes and ensuring that the richest paid their fair share would mobilize funds urgently needed for sustainable and inclusive growth.

She said IMF research showed that ending tax avoidance by corporations could generate an additional $200 billion a year in revenue, while implementation of a global corporate minimum tax would result in an additional $150 billion. The IMF also estimated that setting a minimum floor for carbon pricing could boost revenue by $1.4 trillion a year, she said.

“When policymakers have the will, there is a way, and we have put out what the way is,” she said.

Mr. Haddad told Reuters that Wednesday’s G20 working dinner would discuss how using funds raised through the new taxes could address combating hunger and the green transition.

He said Nobel Prize-winning economist Esther Duflo would take part in the dinner, along with Gabriel Zucman, director of the European Tax Observatory, who is compiling a report on the matter in time for the next G20 finance track meeting in July.

“If we can achieve consensus on this by the end of the year, it’s such an extraordinary thing … it’s historic,” he said.

Mr. Zucman has proposed that very-high-net-worth individuals – some 3,000 people in the world who have at least $1 billion in assets – pay at least the equivalent of 2% of their wealth in income tax each year. That would generate $250 billion per year – half of the annual revenue projected as necessary for developing countries to address climate change challenges, he said.

Joseph Stiglitz, another Nobel Prize-winning economist, told a separate event that climate change and inequality are global problems and need to be addressed on a global agenda.

Taxing the rich also made sense because that was where the money was. “You can’t squeeze money out of the poor, and the bottom 50% don’t have any money,” he said.

“We need to establish new norms where the very wealthy contribute their fair share,” he said. “The notion that society has to have a certain minimum level of fairness and equity is truly important for social cohesion and the functioning of democracy.”

Ms. Duflo told the same event that one critical reason to support taxation of the rich was that people in poor and developing countries were dying due to climate change, largely driven by the consumption patterns of richer nations.

“I’m very confident that the taxation of the billionaires will happen at some point,” she said. “It might not be at this very moment, it’s a journey.”

Susana Ruiz Rodriguez, regional tax coordinator for Oxfam, said it was the first time that taxing the super-rich was being discussed at the IMF-World meetings, although 2% was a very modest target. Oxfam estimates that an annual wealth tax of more than 8% across all countries would have been needed to keep billionaires’ wealth constant over the last two decades. – Reuters

EU leaders back new Iran sanctions after attack on Israel

April 18, 2024 | 12:57 pm

BRUSSELS – European Union leaders decided on Wednesday to step up sanctions against Iran after Tehran’s missile and drone attack on Israel left world powers scrambling to prevent a wider conflict in the Middle East.

The summit in Brussels is the first meeting of the EU’s 27 national leaders since Saturday’s attack, more than six months into the war between Israel and the Iran-backed Palestinian militant group Hamas.

Israel has signaled it will retaliate but has not said how. EU leaders condemned the Iranian attack, reaffirmed their commitment to Israel’s security and called on all sides to prevent more tensions, including in Lebanon.

“We feel it’s very important to do everything to isolate Iran,” said summit chairman Charles Michel, adding the new sanctions against the Islamic Republic would target companies involved in the production of drones and missiles.

German Chancellor Olaf Scholz said it was important that Israel “does not respond with a massive attack of its own.”

Italy spoke separately ahead of G7 talks in favour of sanctions against arms suppliers linked to the attack against Israel, as well as those behind attacks on ships in the Red Sea.

Iran launched its assault in response to an April 1 strike on its embassy in Damascus which it blamed on Israel. Tel Aviv started its broader military offensive in Gaza after Hamas’ deadly attack on Israel on Oct. 7.

ISRAEL AND UKRAINE

EU foreign ministers are due to continue the sanctions work on Monday as the United States and its Western allies hope new steps against Iran will help limit any Israeli retaliation.

The EU already has multiple programs that target Iran for human rights abuses, the proliferation of weapons of mass destruction, and Tehran’s support for Russia’s war in Ukraine.

Germany, France and several EU states are looking at expanding a scheme that seeks to curb the supply of Iranian drones to Russia to include the provision of missiles and cover deliveries to Iranian proxies in the Middle East.

Belgium backed introducing sanctions against Iran’s Revolutionary Guard Corps but Mr. Scholz said that required further legal checks. The bloc’s top diplomat has said that could only happen if a national authority in the EU found that the group had been involved in terrorist activity.

Analysts say Iran is unlikely to face more severe economic punishment because of worries about boosting oil prices and angering top buyer China.

With the Middle East capturing much of the EU’s attention, Ukraine’s President Volodymyr Zelenskiy appealed for more help in holding the line against Russia, which unleashed an invasion against its neighbor more than two years ago.

“Here in Ukraine, in our part of Europe, unfortunately, we do not have the level of defense that we all saw in the Middle East a few days ago,” Mr. Zelenskiy told the summit, after Israel and allies mostly shot down the incoming drones and missiles.

“It reflects our current key need – the need for air defense,” he said, according to an EU official, repeating his calls for speedier deliveries of the weapons and ammunition previously promised to Ukraine. – Reuters

Microinsurance Master: CARD Pioneer is global microinsurance benchmark

April 18, 2024 | 12:10 pm

image1-OL — Photo shows CARD MRI Founder Dr. Jaime Aristotle Alip and Pioneer Group Head and Microinsurance Network Chair Lorenzo Chan, Jr.

Belgium-based Microinsurance Master recognized CARD Pioneer Microinsurance, Inc. (CPMI) as the global benchmark for its successful approach in protecting the low-income market segment through simple, affordable, and accessible microinsurance solutions.

Microinsurance Master Founder Bert Opdebeeck said there is no other organization in the world that champions microinsurance like CPMI. “No wonder they are the only microinsurance company that was able to achieve a massive reach in the Philippines,” Opdebeeck revealed.

Opdebeeck recently held the Microinsurance Master Acceleration Program for the fourth time in the Philippines out of six runs to-date because the story and business model of CPMI is an ideal benchmark for the global delegates who are senior insurance executives from 14 different countries.

“CPMI is a perfect case study because they have the mileage and track record which prove that the customer-centric approach to microinsurance is actually powerful,” Opdebeeck said.

One of the key highlights of the two-week program was the panel discussion between Pioneer Group Head Lorenzo Chan, Jr. and CARD MRI Founder Dr. Jaime Aristotle Alip, where they shared the beginnings of CPMI, the challenges they faced, and their successful customer-centric microinsurance business model, driving enrollments beyond 20 million in 2023.

Chan, who is also the global Microinsurance Network chairperson, revealed that CPMI’s game-changing microinsurance business model was founded on good faith and trust. “It took both Pioneer and CARD MRI, to take a leap of faith and trust in each other as they sought to disrupt traditional industry standards to better serve customers and look beyond the short term,” Chan said.

Dr. Alip shared that it is crucial to act with urgency in releasing claims to low-income customers at their time of need in order to gain trust. “We wanted a maximum of five days for customers to receive their insurance claim, which was unheard of in the industry, when we started. Pioneer was able to deliver that despite the huge risks at that time. Today, our target is from eight to 24 hours because of digitalization,” Dr. Alip said.

In 2023, CPMI premiums reached P1.5 billion and paid a total of P314 million in microinsurance claims to the low-income segment.

Opdebeeck said the delegates were in awe of the dynamics between Chan and Alip, and appreciated the insights on how to disrupt the industry to better serve customers from the low-income sector. “They also gained a deep understanding on how their approach laid the foundation for the success of CPMI. No other insurer worldwide has achieved such penetration when it comes to microinsurance. And that’s why we always like to come back and learn from them,” Opdebeeck said.

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Paving the way towards a more sustainable energy future

April 18, 2024 | 11:00 am

LINECREW-(2)-(1)-OL — Meralco aims to accelerate the implementation of its sustainability agenda in line with the country’s efforts to achieve a sustainable energy future.

Climate change is a complex and pressing issue that requires urgent attention and action on a global scale. Its impact is becoming increasingly evident worldwide, with rising sea levels, more frequent extreme weather incidents, diminishing biodiversity, and rise in food insecurity.

In fact, the Intergovernmental Panel on Climate Change has warned that without immediate action, the planet is on track for a catastrophic 2.7-degree-Celsius increase in global temperatures by year 2100.

The energy industry is among those at the forefront of addressing climate change as it is both a significant contributor to greenhouse gas emissions and has great potential in significantly reducing emissions through various strategies.

Here in the Philippines, power utility Meralco is making significant investments in critical projects to improve sustainability in its operations. The company recently announced a significant investment of over P100 billion through 2030 to fund initiatives that will accelerate the implementation of its sustainability agenda.

“With sustainability deeply embedded in Meralco’s operations and long-term plans, we are proud to commit over P100 billion in capital expenditures to initiatives that not only enhance our infrastructure but also align with the government’s vision for a sustainable future,” Meralco Executive Vice-President and COO Ronnie L. Aperocho said.

Part of the capital injection will be used for critical projects aimed at making Meralco’s distribution network smarter and more resilient in the face of climate change by enhancing grid reliability, reducing system loss, and transitioning to natural ester oil for distribution transformers.

In addition, the investment will also cover the company’s transition to renewable and sustainable energy.

Meralco is taking a step forward in its renewable energy efforts by investing P15.9 billion in SP New Energy Corp. (SPNEC) through MGen Renewable Energy, Inc. (MGreen), a wholly owned subsidiary of Meralco PowerGen Corp.

This investment is part of Meralco’s commitment to secure 1,500 MW of renewable energy supply contracts and develop 1,500 MW of attributable green energy generation capacity.

“Core to our long-term sustainability strategy are twin commitments to secure 1,500 MW of renewable energy supply contracts and to develop 1,500 MW of attributable green energy generation capacity. This underscores our dedication to our low-carbon transition and to serving the country’s growing energy demand with clean power,” Meralco First Vice-President and Chief Sustainability Officer Raymond B. Ravelo said.

These initiatives are expected to contribute significantly to the company’s efforts to reduce its carbon footprint and transition towards a more sustainable future.

Seen in the photo are (from L-R) CCC Vice-Chairperson and Executive Director Director Robert E.A. Borje, Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho, Meralco First Vice-President and Chief Sustainability Officer Raymond B. Ravelo, Meralco Vice-President and Head of Facilities, Safety, and Safety Management Jerry B. Lao, and CCC Executive Assistant Raul Villegas.

The company also recently engaged in a dialogue with the Climate Change Commission (CCC) Philippines to further its commitment to sustainability and strengthen the country’s transition towards a greener future.

During the dialogue with the CCC, Meralco executives emphasized the company’s commitment to mitigating the risks associated with global warming and carbon emissions by promote renewable energy sources, reduce system losses, and transition to natural ester oil for distribution transformers.

Meralco showcased its distribution utility’s electric vehicles (EVs) and charging stations, along with its digital twin laboratory, the Powertech Innovation and eXperience Lab (PIXL).

A member of people’s organization Kaanib ng mga Mangingisda at Magsasaka ng Numancia (KAMAMANA) plants a mangrove propagule in Del Carmen, Siargao during a tree-planting activity sponsored by One Meralco Foundation.

Furthermore, One Meralco Foundation (OMF), Meralco’s social development arm, has been at the forefront of environmental conservation through its One for Trees (OFT) program. This initiative focuses on reforestation efforts that not only contribute to preserving the environment but also provide livelihood opportunities to local communities across the Philippines.

OMF, in collaboration with the local government of Del Carmen in Siargao and the organization Kaanib ng mga Mangingisda at Magsasaka ng Numancia (KAMAMANA), planted and nurtured 125,000 native mangroves in the Surigao del Norte province. The project aimed to highlight the significant role wetlands play in the fight against climate change. This includes the Del Carmen Mangrove Forest Reserve, which spans over 4,800 hectares and serves as a crucial habitat for various species while offering essential resources to the local residents.

Moreover, OMF’s commitment to environmental sustainability extends beyond mangrove reforestation. In the Laguna-Quezon Land Grant (LQLG), a 6,765-hectare forest land within the Sierra Madre mountain range, OMF and its partners planted 100,000 native trees, furthering their efforts to combat deforestation and promote sustainable practices in the region.

As of end-2023, OMF has nurtured around 2.3 million trees across 35 reforestation sites in the country — directly benefitting over 2,000 tree farmers and their families.

In addition, Meralco has been making waves on the global stage for its programs centered on sustainability and corporate social responsibility.

In 2023, Meralco bagged a total of eight Stevies — four Gold and four Bronze awards — at the International Business Awards (IBA) in Rome, Italy, for its dedication to embedding sustainability at the core of its strategy and operations.

Meralco was also the sole recipient of the Gold Stevie under the “Sustainability Leadership Award in Asia, Australia, and New Zealand” category, recognizing the company’s commitment to sustainability and its leadership in the region.

Mr. Ravelo was named “Sustainability Hero of the Year in Asia, Australia, and New Zealand” for his leadership in the company’s sustainability agenda.

Meanwhile, Meralco Vice-President and Chief Corporate Social Responsibility Officer Jeffrey O. Tarayao, who is also the President of OMF, was named “Thought Leader of the Year” for his innovative approaches to CSR and sustainable development programs.

Meralco’s sustainability agenda, “Powering the Good Life” was established in 2019, and is deeply rooted in the United Nations’ Sustainable Development Goals (UN SDGs) and is supported by four pillars: Power, Planet, People, and Prosperity.

“As we pursue our decarbonization strategies, we envision a thriving society with access to education, clean water, quality healthcare, dignified livelihoods, and disaster preparedness — all in alignment with the United Nations’ Sustainable Development Goals,” Meralco Chairman and CEO Manuel V. Pangilinan said.

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ECPay exec leads 50^th Philippine Business Conference & Expo

April 18, 2024 | 10:30 am

Aguilar-OL — Raymund Jude Aguilar of ECPay

Electronic Commerce Payment, Inc. (ECPay) executive Raymund Jude Aguilar is leading the Philippines’ biggest business conference happening on Oct. 22-23 at the Marriott Grand Ballroom, Pasay City.

Consul Enunina V. Mangio, President of the Philippine Chamber of Commerce and Industry (PCCI), announced the appointment of Mr. Aguilar as Chairman of the 50th Philippine Business Conference & Expo (PBC&E) following an executive session that unanimously voted him for the position. Mr. Aguilar is also the Vice-President of the PCCI and Director for International Affairs.

“We are glad that Jude accepted the challenge of leading this year’s conference. We know the task ahead is daunting but we trust in his expertise, competence, and commitment to lead and deliver, especially now that we are celebrating the golden year of PBC&E,” Ms. Mangio said.

The 50th PBC&E banners “Embracing Innovation. Empowering Business. Enriching Lives.” It looks back on the role of PBC&E over the years in promoting a transformative agenda for the country and how it has strategically positioned businesses to take advantage of new and emerging opportunities.

“I am honored for the trust and at the same time excited for the job. I will do everything I can with the support of my colleagues and the hardworking secretariat to make this conference bigger, better, and bolder,” Mr. Aguilar said, who is currently a director of ECPay, Inc., the largest e-payments service provider in the Philippines with over 500,000 touch points and outlets nationwide.

The PBC&E is an annual business event organized by the PCCI that serves as a venue for policy makers, business leaders, international partners, academe, and MSMEs to meet, discuss issues and come up with policy recommendations to help create a business environment that is sustainable and resilient.

It traditionally opens with the Vice-President of the Philippines delivering a keynote address and concludes with the President of the Philippines receiving a set of policy recommendations that emanate from PCCI members, local chambers, and industry partners.

Aside from ECPay, Mr. Aguilar is also a founder and director of several companies including Recycle Plus, Inc. (RPI), a waste management and recycling company; GATE Distribution Enterprise, Inc., an accredited major distributor of telco and online gaming products and services in the Philippines; WERRA Logistics, Inc.; AXIOS Ventures, Inc.; Genzai Corp.; and Pharmaco, Inc.

Mr. Aguilar finished his Bachelor of Arts in Psychology from the University of the Philippines and took his Masters in Business Administration from the Asian Institute of Management (AIM).

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Peso won’t derail rate cuts in Q4

April 18, 2024 | 12:34 am

peso-dollar-currency — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE Philippine central bank would cut its key rate as early as the fourth quarter despite the peso’s slide to a 17-month low, according to Governor Eli M. Remolona, Jr.

The Monetary Board might still cut policy rates in the fourth quarter, he told a news briefing on Wednesday. “If things are worse than we think, that might be postponed to the first quarter of 2025.”

The peso and other regional currencies have weakened in recent days as markets bet against the odds of early rate cuts around the world.

The peso depreciated past the closely watched P57-a-dollar level on Tuesday before closing at P57 flat — the weakest since P57.375 on Nov. 22, 2022 — due to expectations that the US Federal Reserve would delay cutting interest rates.

It continued to weaken on Wednesday, closing at P57.18 against the greenback.

Mr. Remolona said the peso’s depreciation has not been big enough to affect inflation expectations and monetary policy.

“I wouldn’t say it’s performing poorly,” he said. “I would say it’s adjusting to some events. It initially weakened, along with other emerging market currencies, by the way, because of what’s going on in the Middle East.”

Markets were rattled after Iran launched hundreds of drones and missiles against Israel at the weekend in retaliation for an alleged airstrike by Israel on the Iranian consulate in Syria earlier this month.

But the Bangko Sentral ng Pilipinas (BSP) chief sees no threat from the conflict.

“In fact, the price of Brent oil and Dubai oil initially went up, but now has settled back down,” he said. “So, the sense of the oil market is that hostilities will not escalate. I hope it stays that way.”

Brent futures for June fell by 0.44% or 40 cents to $89.62 a barrel by 6:32 a.m. GMT, while US crude futures for May fell by 0.56% or 48 cents to $84.88 a barrel, Reuters reported.

Mr. Remolona said the peso’s recent drop had been due to signals of rate cut delays by the Fed.

“There’s a postponement of when the FOMC (Federal Open Market Committee) will ease, in the eyes of the market,” he said. “That has meant weakening of other currencies against the US dollar.”

“It’s not a case of a weak peso, it’s a case of a strong dollar. Unless the movements are very sharp, we tend to allow the adjustment to happen,” he added.

Federal Reserve Chairman Jerome H. Powell has said they might have to keep “restrictive” policy rates for longer amid sticky inflation.

NO RATE HIKE
Markets were initially anticipating the US central bank to begin cutting rates by June, but this could get delayed to as late as September.

“Easing won’t happen until maybe late in the third quarter when it comes to the FOMC,” Mr. Remolona said. “The US inflation rate has remained very stubborn.”

The Fed hiked its fund rate by 525 basis points (bps) from March 2022 to July 2023 to 5.25-5.5%.

Mr. Remolona said there won’t be any rate increases this year unless inflation quickens faster than anticipated.

Inflation sped up for a second straight month to 3.7% in March from 3.4% a month earlier. The BSP expects inflation to average 3.8% this year.

“What is scary is the de-anchoring,” Mr. Remolona said. “When we see that the markets and households begin to believe that inflation will surge, then we have to consider a rate hike.”

“But otherwise, we’re tight now. At 6.5%, it’s already tight. It’s already doing its work,” he added.

The central bank stood pat for a fourth straight meeting in March, keeping its benchmark rate steady at a near 17-year high of 6.5%. The Monetary Board raised borrowing costs by 450 bps from May 2022 to October 2023.

Meanwhile, Fitch Solutions unit BMI said the peso might continue to depreciate in the next six months to two years amid weak economic fundamentals.

“In the longer term, the currency will stay on its depreciatory trend, weakening to P57.20 per dollar by end-2025,” it said in a report.

Elevated inflation will temper the currency’s appreciation, it said. “Emerging markets such as the Philippines generally see quicker price increases compared with advanced economies.”

“Higher inflation in the Philippines may lead to a steady decline in the peso’s value to preserve the country’s competitiveness internationally,” it added.

BMI said it expects the peso to come under much volatility in the short term due to the constant repricing of interest rate expectations in the US.

“However, we think that this will eventually fade once the US Federal Reserve embarks on its first cut in July,” it said. “This means that the Philippine peso will remain somewhat stable at P56.50 per dollar [by yearend].”

Philippine economic managers expect the peso to trade from P55 to P57 this year and from P55 to P58 from 2025 to 2028.

Slowing PHL remittances may weaken consumption

April 18, 2024 | 12:33 am

Vegetable market — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE domestic demand could ease this year as remittance inflows are muted by reduced overseas hiring, Pantheon Macroeconomics said.

“Domestic demand in the Philippines is continuing to struggle, reflecting in large part the oppressive headwinds facing consumers,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco and Senior Asia Economist Moorthy Krshnan said in a report.

It noted that remittances, which have slowed this year, might fail to boost domestic demand in the coming months.

“Remittances have saved the day in the past, such as in 2022, when they helped to fuel the post-pandemic release of pent-up demand,” according to the report.

Filipino consumers, who have been battling rising prices of commodities such as rice, meat and oil, rely heavily on remittances sent home by relatives abroad.

“We see no prospect of this savior making a comeback in 2024, if the first two months of the year are anything to go by,” Pantheon said.

Cash remittances in February rose by 3% to $2.65 billion from a year earlier. It fell by 6.7% month on month.

“The year-over-year increase — in local-currency terms — would fall back into the red in the middle of this year if this rate of growth persists,” it said.

Pantheon also noted that overseas placements, which slowed to 28% year on year in January and have dropped since early 2021, could also affect remittance flows.

Borrowing remains a driver of household spending, as consumer credit remained above average since late 2022, Pantheon said. It jumped to 25.2% in February, as credit card and motor vehicle loans rose by 30.1% and 19.1%, respectively.

Pantheon said rampant borrowing is “fundamentally unsustainable and likely to result in a more painful payback for the economy down the line.” A “climbdown” in consumer credit is likely to take place this year, it added.

Based on Pantheon’s computations, the share of Philippine households with savings recovered “only modestly” to 31.9% in the first quarter from 30.1% a quarter earlier.

“Meanwhile, the proportion of those who could set aside any savings has seen lower lows and lower highs in the past two surveys,” it added.

Philippine unemployment dropped to a two-month low of 3.5% in February, which is expected to offset still-rampant borrowing and lower remittances. But Pantheon said the downtrend in job openings is a risk.

Pantheon said Philippine gross domestic product (GDP) growth in the first quarter was likely one of the fastest in the region at 5.8%, behind Taiwan (6.1%) and ahead of Indonesia (5%) and Singapore (2.7%).

The Philippines would outpace its peers in the second quarter with 6.2% GDP growth, over Indonesia (4.4%), Taiwan (3.6%) and Singapore (2.6%), it added.

The Philippine Statistics Authority will release first-quarter GDP data on May 9.

Inflation could quicken to 3.8% in June before cooling to 2.7% in September, but could speed up to 3.1% in December, Pantheon said.

Visayas under red alert; yellow raised over Luzon

April 18, 2024 | 12:32 am

By Sheldeen Joy Talavera, Reporter

THE VISAYAS GRID was again placed on red and yellow alerts on Wednesday, while the Luzon grid was put under yellow alert, with more than 30 power plants still either on forced outage or operating at limited capacity, according to the National Grid Corp. of the Philippines (NGCP).

In a statement, the NGCP said that as of 6:47 p.m. on Wednesday, a red alert had been raised over the Visayas grid from 5 p.m. to 9 p.m. due to the reduced output of the Mindanao-Visayas interconnection project after two power plants with a total capacity of 273 megawatts (MW) tripped.

Earlier in the day, the NGCP said the Luzon grid was under the yellow alert status from 1 p.m. to 11 p.m. on April 17. During this period, available capacity was 13,607 MW, while peak demand was 12,874 MW.

“Eighteen power plants are on forced outage, while three others are running on derated capacities, for a total of 1,969.3 MW unavailable to the grid,” the grid operator said.

In the Visayas, the yellow alert was raised from 1 p.m. to 10 p.m. as 13 power plants went on forced outage, while five others were running at limited capacity, bringing the total unavailable capacity to 698 MW.

Peak demand was at 2,523 MW, nearly outpacing the available capacity at 2,713 MW.

Yellow alerts are issued when the supply available to the grid falls below a safety threshold. If the supply-demand balance deteriorates further, a red alert is declared.

On Tuesday, both red and yellow alerts were declared as 42 power plant units went on forced outage or were derated, losing a total capacity of over 3,000 MW.

Manual load dropping or rotational power interruptions were implemented in some parts of Luzon.

Red and yellow alerts were first lifted in the Visayas at 9:01 p.m. and 11:01 p.m., respectively on Tuesday.

NGCP lifted the red and yellow alerts over Luzon at 11:01 p.m. on Tuesday and 12:01 a.m. on Wednesday.

The Southwest Luzon Power Generation Corp. unit 2 with 150 MW and Sta. Rita 40 of First Gen Corp. with 264 MW had gone back online as of 3:03 a.m. on April 17.

In a separate statement, the Philippine Independent Power Producers Association, Inc. (PIPPA) said majority of the 19 power plants in the Luzon grid that were on outage were hydropower plants with low water levels.

“The PIPPA member-generators have submitted the reports required in instances of unplanned outage and continue to prioritize efforts in further strengthening the resilience of their generation assets,” the group said.

Gerry C. Arances, convenor of the People for Power Coalition, said the incident should be a wakeup call to transition from fossil fuel to renewable energy.

“The government needs to wake up and get on with the program,” he said in an e-mailed statement. “Fossil fuel dependence leads to costly and undependable energy.”

“The long-term solution is obvious to anyone not blinded by fumes from fossil fuels. Transitioning to renewable energy is the only solution,” he added.

As of 11 a.m., Manila Electric Co. (Meralco) said it had advised the participants of its Interruptible Load Program to be on standby in case of a red alert.

These are large power consumers that have their own generating facilities. These entities stop drawing power from the grid during times of unreliable supply, tapping their own power plants for their needs and reducing the overall load on the grid.

“We are calling on consumers to join our energy conservation because this will help us to preserve the integrity of our electric power industry system where the demand will not be that high,” Energy Assistant Secretary Mario C. Marasigan told state media. “We will not have rotational brownouts or widespread outage.

As of 4:15 p.m. on Tuesday, Meralco had implemented emergency manual load dropping, affecting about 50,000 customers in parts of Batangas, Bulacan, Cavite and Laguna. All services had been fully restored by 5:58 p.m.

“We again call on the public to continue practicing energy conservation and efficiency measures to help manage the overall demand,” the power distributor said.

Monalisa C. Dimalanta, chairman and chief executive officer of the Energy Regulatory Commission (ERC), said that they would investigate the power failures.

Under a resolution issued by the ERC in 2020, generation companies must submit an event report to the regulator for planned and unplanned failures of generating facilities within 48 hours.

Philippines in talks with OceanX for marine research

April 18, 2024 | 12:31 am

By Kyle Aristophere T. Atienza, Reporter

SINGAPORE — US-based exploration startup OceanX on Wednesday said it is in talks with the Philippine government to conduct marine research in its waters to help harness the potential of its blue economy.

Its flagship vessel OceanXplorer, which carries four deep sea vehicles and four labs, would probably conduct research and exploration activities in Philippine waters next year, science program director Mattie Rodrigue told BusinessWorld during a media tour of the ship on the sidelines of the Asia Philanthropy Summit here.

“We’ve just started discussions about a collaboration… with the Philippine government to bring OceanXplorer and conduct scientific work in the area,” she said. “We’re hoping that after our mission is completed in Malaysia and our talks progress successfully with the Philippine government, then we’ll be able to get the vessel in as early as next year.”

The global ocean exploration nonprofit in March said it would embark on a series of research expeditions to better understand Southeast Asia’s marine biodiversity. This includes missions in Indonesia and Malaysia, where it will work with government agencies and scientists to study the ocean for better science, policy and economic decisions.

Two of the four vehicles aboard the 87.1-meter OceanXplorer are manned submersibles that can go as deep as 1,000 meters.

The ship, which has Hollywood production capabilities, also has two 6,000-meter remote-operated vehicles. It uses state-of-the-art optical technology to stream ocean exploration in real time.

Ms. Rodrigue said OceanX partners with government agencies and local scientists for the “stewardship of marine resources.” “We do an in-country request for scientific proposals.”

Philippine ocean-based industries grew by 21.1% in 2022, accounting for 3.9% of the country’s economic output, according to the state statistics agency. But local economists have said the country should do more to maximize the benefits from the ocean.

The Philippine government has included a blue economy bill in its list of priority legislation this year. The measure seeks to create a comprehensive framework and boost multisectoral coordination in managing the country’s marine and coastal resources.

The Southeast Asian nation has been seeking to explore oil and gas within its exclusive economic zone in the South China Sea, one of the world’s most important waterways that China claims almost in its entirety, as its sole indigenous source of natural gas is expected to run dry by 2027.

Reed Bank, which is near a Philippine feature that China had been patrolling in recent months, could hold up to 55.1 trillion cubic feet of natural gas and up to 5.4 billion barrels of oil, according to the United States Energy Information Administration.

President Ferdinand R. Marcos, Jr. has said his government seeks to pursue exploration activities in nonconflict areas of the South China Sea.

The Philippine government has cited the destruction of coral reefs near features it claims in the waterway.

The Center for Strategic and International Studies in February said China had destroyed at least 21,000 acres of coral reefs within the Philippines’ exclusive economic zone.

Another think tank, the Asia Maritime Transparency Initiative, also attributed coral reef destruction in the waterway to Chinese activities such as dredging, island-building and clam harvesting.

‘FULL PICTURE’
OceanX said deep sea research in Southeast Asia and other parts of the world has been underfunded.

“Every country doesn’t necessarily contribute resources to understanding the deep sea,” Ms. Rodrigue said. She added that blue economy goals have been largely centered on coastal ecosystems, often ignoring the potential of the deep sea to contribute to economic growth.

“The entire ocean space and all of these ecosystems are intertwined and connected,” she said. “So often, the understudied areas in these regions are going to be the deep sea. If scientists are able to access technology, that will then allow them to access those deep spaces.”

“That’s really the way to get a full picture of the environment, to drive forward in blue economic progress,” she added.

OceanX said only 25% of the world’s ocean floors have been mapped, with its flagship vessel having explored 145,000 square kilometers so far.

“In the proportion of the entire global ocean it’s just a drop in the bucket,” Ms. Rodrigue said. “But we hope when we go to different areas [we can help] develop and support their own mapping programs. There are vessels, ships, cargo ships moving back and forth and all have the ability to at least generate data.”

OceanX is the brainchild of Mark Dalio, a former filmmaker at the National Geographic, and his father Ray, the billionaire philanthropist behind the investment firm Bridgewater Associates.

The father-and-son team is behind the Singapore-based Dalio Philanthropies, a founding core member of the Temasek Trust’s Philanthropy Asia Alliance.

OceanX supports the Seabed 2030 project, which aims to map all of the world’s oceans by the end of the decade. OceanXplorer, which first sailed in 2020 in the Red Sea, is manned by more than a dozen nationalities including Filipinos.

The philanthropic alliance on Tuesday launched an initiative that seeks to generate funding for sustainable projects involving the blue economy, sustainable land use and inclusive education.

“The so-called Blue Oceans Community under the initiative will focus on the conservation and sustainable use of oceans, seas and marine resources, with a focus on Asia,” according to a statement from the alliance.

“It will look at science and exploration to build our connectivity to, and appreciation of, the importance of oceans and their related marine and coastal ecosystems,” it added.

No more minimum commission for stockbrokers — SEC

April 18, 2024 | 12:08 am

THE Securities and Exchange Commission (SEC) announced on Wednesday a decision to remove the minimum commission that stockbrokers may charge their customers, aiming to stimulate activity within the capital market.

“The new rule allows brokers to set their own commission schedule for transactions with their customers, without the limitations of a prescribed regulatory minimum commission,” the SEC said in a statement, citing its Memorandum Circular No. 7 issued on April 16.

Before this circular, the SEC had issued a resolution in 1977 setting a broker’s commission rate at 1.5%, while guidelines from the Philippine Stock Exchange (PSE) mandated a minimum commission ranging from 0.25% to 0.05% of the value of a trade transaction.

“Lower transaction costs are vital in encouraging the public to invest their money in the stock market. The removal of the minimum stockbroker’s commission seeks to address this, and hopefully bring out more retail investors and spur trading activity,” SEC Chairperson Emilio B. Aquino said.

“The SEC will continue to review existing rules and regulations to see areas where we can make improvements to achieve our goal of boosting the capital market,” he added.

The regulator noted that the removal of the minimum commission considered the rise of online trading platforms, which allow for more cost-efficient transactions.

“It also takes cues from other neighboring jurisdictions, which do not prescribe a minimum stockbroker’s commission. The new rule likewise seeks to empower the investing public to engage the services of a broker of their choice based on cost preference,” the SEC said.

Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the new rule increases competition.

“The liberalization of brokerage commissions is a significant reform that will create more competition among PSE trading participants and should help reduce the cost of investing in listed equities. It may also lead to more active trading and better liquidity in certain stocks,” he said.

COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said: “Clients can’t expect good service if commissions drop. Maybe some services that were free before like research reports will no longer be free, or brokers that provide better service can charge higher rates.”

“As to whether or not this will boost volumes, it’s a bit secondary, because if market conditions are poor, even if commissions are zero, volumes will not pick up,” she added. — Revin Mikhael D. Ochave

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