Home Blog Page 2051

Population can’t be ignored. It has to be part of the policy solution to our world’s problems

TOM BOOTH/FLICKR

There is a growing consensus that environmental problems, particularly the effects of climate change, pose a grave challenge to humanity. Pollution, habitat destruction, intractable waste issues and, for many, deteriorating quality of life should be added to the list.

Economic growth is the chief culprit. We forget, though, that environmental impacts are a consequence of per capita consumption multiplied by the number of people doing the consuming. Our own numbers matter.

Population growth threatens environments at global, national and regional scales. Yet the policy agenda either ignores human population, or fosters alarm when perfectly natural trends such as declining fertility and longer lifespans cause growth rates to fall and populations to age.

That there are still too many of us is a problem few want to talk about. Fifty years ago, population was considered to be an issue, not only for the developing world, but for the planet as a whole. Since then, the so-called green revolution in agriculture made it possible to feed many more people. But the costs of these practices, which relied heavily on pesticide and fertilizer use and relatively few crops, are only now beginning to be understood.

The next 30 years will be critical. The most recent United Nations projections point to a global population of 9.7 billion by 2050 and 10.4 billion by 2100. There are 8 billion of us now. Another 2 billion will bring already stressed ecosystems to the point of collapse.

Many would agree overpopulation is a problem in many developing countries, where large families keep people poor. But there are too many of us in the developed world, too. Per person, people in high-income countries consume 60% more resources than in upper-middle-income countries and more than 13 times as much as people in low-income countries.

From 1995 to 2020, the UK population, for example, grew by 9.1 million. A crowded little island, particularly around London and the south-east, became more crowded still.

Similarly, the Netherlands, one of the most densely populated countries, had just under 10 million inhabitants in 1950 and 17.6 million in 2020. In the 1950s, the government encouraged emigration to reduce population densities. By the 21st century, another 5 million people in a tiny country certainly caused opposition to immigration, but concern was wrongly focused on the ethnic composition of the increase. The principal problem of overpopulation received little attention.

Australia is celebrated as “a land of boundless plains to share”. In reality it’s a small country that consists of big distances.

As former NSW Premier Bob Carr predicted some years ago, as Australia’s population swelled, the extra numbers would be housed in spreading suburbs that would gobble up farmland nearest our cities and threaten coastal and near-coastal habitats. How right he was. The outskirts of Sydney and Melbourne are carpeted in big, ugly houses whose inhabitants will be forever car-dependent.

The longer we do nothing about population growth, the worse it gets. More people now inevitably mean more in the future than there would otherwise have been.

We live very long lives, on average, so once we’re born, we tend to stick around. It takes a while for falling birthrates to have any impact.

And when they do, the population boosters respond with cries of alarm. The norm is seen as a young or youngish population, while the elderly are presented as a parasitical drag upon the young.

Falling reproduction rates should not be regarded as a disaster but as a natural occurrence to which we can adapt.

Recently, we have been told Australia must have high population growth, because of workforce shortages. It is rarely stated exactly what these shortages are, and why we cannot train enough people to fill them.

Population and development are connected in subtle ways, at global, national, and regional scales. At each level, stabilizing the population holds the key to a more environmentally secure and equitable future.

For those of us who value the natural world for its own sake, the matter is clear – we should make room for other species. For those who do not care about other species, the reality is that without a more thoughtful approach to our own numbers, planetary systems will continue to break down.

So, what to do? If we assume the Earth’s population is going to exceed 10 billion, the type of thinking behind this assumption means we are sleepwalking our way into a nightmarish future when a better one is within our grasp.

A radical rethink of the global economy is needed to address climate change. In relation to population growth, if we can move beyond unhelpful ideologies, the solution is already available.

People are not stupid. In particular, women are not stupid. Where women are given the choice, they restrict the number of children they have. This freedom is as basic a human right as you can get.

A much-needed demographic transition could be under way right now, if only the population boosters would let it happen.

Those who urge greater rates of reproduction, whether they realize it or not, are serving only the short-term interests of developers and some religious authorities, for whom big societies mean more power for themselves. It is a masculinist fantasy for which most women, and many men, have long been paying a huge price.

Women will show the way, if only we would let them. — The Conversation via Reuters Connect

Biased GPT? Singapore builds AI model to ‘represent’ Southeast Asians

FREEPIK

SINGAPORE — Like millions worldwide, Southeast Asians have been trying out large language models such as Meta’s Llama 2 and Mistral AI – but in their native Bahasa Indonesia or Thai. The result has usually been gibberish in English.

This leaves them at a disadvantage, tech experts warn, as generative artificial intelligence transforms education, work, and governance worldwide.

A Singapore government-led initiative aims to correct the imbalance with a Southeast Asian LLM, the first in a family of models named SEA-LION – Southeast Asian Languages in One Network – trained in the region’s languages and cultural norms.

Trained on data in 11 Southeast Asian languages including Vietnamese, Thai, and Bahasa Indonesia, the open-sourced model is a cheaper and more efficient option for the region’s businesses, governments, and academia, said Leslie Teo at AI Singapore.

“Do we want to force every person in Southeast Asia to adapt to the machine, or do we want to make it more accessible so people in the region can make full use of the technology without having to be an English speaker?” he said.

“We are not trying to compete with the big LLMs; we are trying to complement them, so there can be better representation of us,” Mr. Teo, senior director for AI products, told the Thomson Reuters Foundation.

There are over 7,000 languages spoken worldwide. Yet LLMs including Open AI’s GPT-4 and Meta’s Llama 2 that are used to build AI systems such as chatbots and other tools, have largely been developed for, and are trained on, the English language.

Governments and tech firms are trying to bridge this gap, with India creating datasets in local languages, an LLM in the United Arab Emirates powering generative AI tools in Arabic, and AI models in China, Japan and Vietnam in local languages.

These models can help local populations participate more equitably in the global AI economy that is largely dominated by big tech firms, said Nuurrianti Jalli, an assistant professor at Oklahoma State University’s school of communications.

“Regional LLMs are also needed because they support technology self-reliance,” she said. “Less reliance on Western LLMs could provide better privacy for local populations, and also align better with national or regional interest.”

VERIFY AND FILTER

Multilingual language models that are trained on text from several languages at once, can infer semantic and grammatical connections between high resource languages that have more data, and low resource languages, researchers say.

These models can be used in a variety of applications from translation to customer-service chatbots, to content moderation on social media platforms that have struggled to identify hate speech in low resource languages such as Burmese or Amharic.

About 13% of SEA-LION’s data is sourced from Southeast Asian languages – more than any other major LLM, said Teo. More than 9% of its data is from Chinese text, and about 63% from English.

Multilingual language models often train on translated text and other poor quality data that may have errors, so AI Singapore is “careful” about the data used in training SEA-LION, Mr. Teo said in his office at the National University of Singapore.

“The age of pristine data has passed – a lot of the stuff on the internet now is material that is generated by LLMs, so we need to verify and filter,” he said.

“We cannot be perfect, but we also cannot take out everything we consider to be bad,” he added.

More governments are contributing data, and businesses are testing SEA-LION, which due to its smaller size can be deployed faster and is cheaper to fine-tune and adopt, Teo said.

At Indonesian e-commerce company Tokopedia, a majority of customer interactions is in Bahasa Indonesia, so models “with that local fluency will enhance our ability to connect with customers and improve their experiences,” said Paul Condylis, Tokopedia’s associate vice president of data science.

BIAS IN THE DATA

As more countries and regions build their own LLMs, digital and human rights experts fret that they will reproduce only the dominant views expressed online, which can be particularly problematic in nations with authoritarian governments or strict media censorship, or those lacking a strong civil society.

Chinese social media platforms, for example, censor references to the Tiananmen Square uprising and criticism of the government, while several Southeast Asian nations have enacted laws to curb content that authorities deem as misleading.

“Training models on such data risks perpetuating biased, prejudiced, incomplete and even misleading narratives,” said Ms. Jalli.

“The models may fail to surface important socio-political issues like human rights abuse, corruption, or valid criticism of political powers,” she said.

In response to a query on Indonesian former president Suharto, for example, Llama 2 and GPT-4 mentioned his spotty human rights record, while SEA-LION’s response focused largely on his achievements.

If a model is only trained on favorable articles about a government, then the model is “likely to adopt a worldview where the government is wholly positive and leave behind dissenting viewpoints,” said Aliya Bhatia, a policy analyst at the Center for Democracy & Technology, a US non-profit.

“Regional LLMs may better reflect the linguistic and cultural nuances of local language speakers, but they may also have less information about the world in general,” she added.

“There is a real risk of government-backed models instilling a revisionist view of history and undermining democratic values.”

But the alternative – relying entirely on Western LLMs with “disproportionately large influences” from wealthy, liberal, western democracies – means perpetuating different biases related to cultural values, political beliefs and social norms, according to AI Singapore.

“These LLMs have a very particular West Coast American bias – they are very woke. They do not represent us,” said Mr. Teo.

“We are not saying ours is the only perspective – we are just trying to rebalance it.” – Thomson Reuters Foundation

North Korea scraps all economic cooperation with South Korea

A North Korea flag flutters next to concertina wire at the North Korean embassy in Kuala Lumpur, Malaysia March 9, 2017. — REUTERS/EDGAR SU/FILE PHOTO

SEOUL — North Korea’s Supreme People’s Assembly has voted to scrap all agreements with South Korea on promoting economic cooperation, the North’s official KCNA news agency reported on Thursday, as the two Koreas’ ties continue to deteriorate.

The assembly, which takes formal steps to adopt policy decisions of the ruling Workers’ Party, also voted to abolish laws governing economic ties with Seoul, including the special law on the operation of the Mount Kumgang tourism project.

The tours to the scenic mountain just north of the eastern border were a symbol of economic cooperation that began during a period of engagement between the two Koreas in early 2000s, drawing nearly 2 million South Korean visitors.

The project was suspended in 2008 after a South Korean tourist who strayed into a restricted zone was shot and killed by North Korean guards.

Hyundai Asan, an affiliate of the Hyundai Group conglomerate which invested more than 750 billion won ($564 million) in developing the Kumgang project, declined to comment on the report.

South Korea’s Unification Ministry, which handles ties with Pyongyang, said the North’s action was not surprising and would only deepen its isolation. Seoul does not recognize the unilateral move, an official added.

The KCNA report did not mention the North’s special law governing another major joint economic project, the Kaesong industrial zone, which at its peak housed the factories of 125 South Korean companies employing 55,000 North Korean workers.

The companies pulled out and the factory zone shuttered in 2016 when Seoul suspended the project after the North’s fifth nuclear test and long-range ballistic missile launches.

In January, South Korea closed a state-run foundation that supported the development and operation of the Kaesong industrial zone, which at the time was considered a sign that Seoul viewed the project was unlikely to be revived.

‘NOT RATIONAL’

North Korea has said it considers the South as an enemy at war and last year scrapped a military pact signed in 2018 aimed at de-escalating tensions near the military border drawn up under a truce ending the 1950-53 Korean War.

In a pre-recorded interview with state TV KBS aired late on Wednesday, South Korean President Yoon Suk Yeol called the shift in North Korea’s inter-Korea policy “an extraordinary change” but said it was hard to understand the thinking behind the move.

“What hasn’t changed is that the North has tried for more than 70 years to turn us into Communists, and while doing that, it realized its conventional weapons were insufficient so they went onto nuclear development to threaten us,” he said.

Mr. Yoon, who has taken a hard line against Pyongyang, said he remains open to engaging the North, even by holding a summit meeting with Kim, and provide aid if it would help its economy, but said the North Korean leadership is “not a rational group.”

Since taking power in 2011, Mr. Kim has pushed the North to develop nuclear weapons and ballistic missiles even as its economy languished.

KCNA separately reported that Kim on Wednesday toured factories producing consumer goods and food, and gave guidance on modernizing the facilities as part of implementing a new regional development policy. — Reuters

Jobless rate hits record low in 2023

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Andrea C. Abestano, Researcher

THE JOBLESS RATE dropped to a record low of 4.3% last year as more Filipinos became employed, the Philippine Statistics Authority (PSA) reported on Wednesday.

Preliminary results from the PSA’s Labor Force Survey showed the average unemployment rate last year was lower than 5.4% logged in 2022.

This was the lowest jobless rate in almost two decades since the PSA revised the definition of unemployed in April 2005 to refer to Filipinos aged 15 years and older without a job and are available for work and actively seeking one.

Philippine Annual Labor Force Situation

This translated to 2.19 million jobless Filipinos last year, lower than 2.67 million in 2022.

“We welcome the news of a record-low unemployment rate, signifying the economy’s sustained momentum and resiliency of our labor market,” National Economic and Development Authority Secretary Arsenio M. Balisacan said in a statement.

“We will continue ramping up social and physical infrastructure investments and dramatically improve human capital to strengthen our people’s employment prospects,” he added.

In December alone, the unemployment rate fell to 3.1% from 3.6% in November and from 4.3% in the same month in 2022. This was also a record low.

That month, the ranks of unemployed Filipinos dropped to 1.6 million, more than half a million less than the 2.22 million in December 2022. This was also lower than 1.83 million in November 2023.

Meanwhile, the employment rate in December also hit a record high of 96.9%, above the 96.4% in November and 95.7% in December 2022.

In absolute terms, the country’s employed Filipinos in December reached 50.52 million, up by 889,000 from the previous month. On an annual basis, the country added 1.52 million jobs from 49 million in December 2022.

PSA Undersecretary and National Statistician Claire Dennis S. Mapa said in a briefing that the record-low unemployment in December came amid the rise in available work, especially during the holiday season.

“Consumption is higher [during the holiday season] and thus we create additional jobs,” he said in mixed English and Filipino.

Job quality improved last year as the underemployment rate — or the proportion of employed Filipinos but still looking for more work or longer working hours to the total employed population — fell to an all-time low of 12.3% from 14.2% in 2022.

This translated to 5.95 million underemployed Filipinos last year, down from 6.68 million in 2022.

In December alone, the underemployment rate hit 11.9%. It slightly edged up from 11.7% in November but was lower than 12.6% in December 2022.

The number of underemployed Filipinos in December reached 6.01 million. This was higher than 5.79 million in November and 6.2 million in December 2022.

The country’s labor force in December was recorded at 52.13 million, 658,000 more than in November and 907,000 higher than in December 2022.

The labor force participation rate (LFPR) that month reached 66.6%, an improvement from 65.9% in November and 66.4% in December 2022.

Philippine Labor Force Situation

This brought the average workforce size to 50.38 million last year, which translated to a record-high LFPR of 64.9%.

In December, Filipinos worked for 40.6 hours a week on average, longer than 40.2 hours in November and 40.3 hours in December 2022.

Services remained the top employer in December, cornering 57.3% of the total. Agriculture followed with 24.4%, while industry had an 18.3% share.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the record-low unemployment rate came amid steady job generation in the agriculture sector as well as seasonal factors.

“Seasonal hiring in December, improved business climate, and government initiatives, and the absence of typhoons (which sustained employment in agriculture) may also have played a role,” he said in a Viber message. “Job quality also improved, with lower underemployment and potential wage increases.”

For December, the agriculture sector posted an 89.4% employment rate, higher than the 87.9% in November and 87.5% in December last year.

“Historically, agriculture sheds jobs in late [fourth quarter], due to typhoons,” Mr. Roces said.

On a year-on-year basis, the construction sector recorded the biggest increase in employment in December after adding 777,000 to 5.08 million. It was followed by agriculture and forestry (up 715,000) and accommodation and food service (up 498,000).

Meanwhile, annual job losses in December were seen in wholesale and retail trade (down 660,000), administrative and support service (down 250,000), and fishing and aquaculture (down 159,000).

Trade Union Congress of the Philippines Vice-President Luis C. Corral said the government needs to generate more quality jobs to ensure that the employment momentum seen last year continues.

“While we welcome that employment remains high, we fear that the decrease in unemployment is potentially driven by holiday seasonal jobs,” Mr. Corral said in a Viber message.

For his part, Security Bank’s Mr. Roces said a sustained drop in joblessness requires continued economic growth, effective skills development, and addressing underemployment though quality job creation.

“The government should prioritize infrastructure development, upskilling the workforce, promoting business formalization, and tackling underemployment to ensure the labor market’s continued progress,” Mr. Roces said.

Manufacturing output growth picks up in December

FACTORY OUTPUT grew at its fastest pace in three months in December, the Philippine Statistics Authority (PSA) reported on Wednesday.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI) showed factory production, as measured by the volume of production index (VoPI), grew by 2% year on year in December, the fastest pace since 9.8% in September and picking up from 1.8% in November.

However, this was slower than the 4.5% growth posted in December 2022.

This brought the average manufacturing output growth for 2023 to 4.4%, sharply slower than the 15.4% annual average growth seen in 2022.

Analysts attributed the slowdown to supply chain disruptions due to geopolitical tensions overseas.

“Disruptions in supply chain and transportation from political tensions in Eastern Europe and the Middle East affected factory output. The Philippines is reliant on imported raw materials and work-in-progress in factory production,” Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said in an e-mail.

“Relatively high inflation globally and locally in 2023 also affected production costs,” Mr. Rivera said.

Still, the manufacturing sector remained resilient last year, Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon noted in a phone interview.

“The manufacturing sector has been holding up… We’re gradually bouncing back. We started from a lower base, and I think it’s performing quite well,” he said.

“The export sector has not been as good as what was projected but it ended up fairly well… So, construction, infrastructure, and the essentials are holding up,” he added.

The country’s trade-in-goods deficit narrowed by 9% to $52.42 billion in 2023 as exports and imports declined amid slowing demand.

Merchandise exports dropped by 7.6% to $73.52 billion last year, PSA data showed. This was a reversal of the 6.5% growth in 2022.

On a monthly basis, the manufacturing sector’s VoPI declined by 6.7% in December, a turnaround from the 3% growth in the previous month. Stripping out seasonality factors, VoPI slipped by 0.8% from the 0.7% growth in November last year.

In comparison, IHS Markit’s Philippines Manufacturing Purchasing Manager’s Index (PMI) expanded by 51.5 in December, slower than the 52.7 expansion seen in November last year. A PMI reading above 50 indicates improvement in operating conditions, while a reading below 50 shows deterioration.

The PSA said the year-on-year growth seen in December was mainly driven by the slower annual decline in the manufacture of food products at 1.4% from the 4.9% drop in the previous month.

“The manufacture of food products contributed 34.5% to the uptrend of VoPI for the manufacturing section in December 2023,” it said.

Mr. Barcelon said typhoons in the latter part of the year as well as geopolitical tensions likely led to slower food production.

“Other main contributors to the higher year-on-year growth of VoPI in December 2023 were the faster annual increase observed in the manufacture of basic pharmaceutical products and pharmaceutical preparations at 38.2% in December 2023 from 11.1% in the previous month, and the slower annual decrement in the manufacture of fabricated metal products, except machinery and equipment at 12% during the period from 23.5% annual decrease in the previous month,” the PSA added.

Of the remaining 19 industry divisions, eight posted year-on-year increases in December, led by coke and refined petroleum products (33.2% in 2023 from 20.3% in 2022), electrical equipment (25.8% from -49.9%), and transport equipment (23.4% from 6.4%).

Meanwhile, 11 industry divisions recorded annual declines.

“The highest annual drop was observed in manufacture of wood, bamboo, cane, rattan articles and related products at 55.3%,” the PSA said.

December’s capacity utilization rate, or the extent to which industry resources are used in producing goods, averaged 74.3%, slower than the revised 74.8% in the previous month.

“All industry divisions reported capacity utilization rates of more than 60% during the month. The top three industry divisions in terms of reported capacity utilization rate were manufacture of rubber and plastic products (80.0%), manufacture of machinery and equipment except electrical (79.8%), and manufacture of beverages (79.6%),” the PSA said.

Looking ahead, geopolitical tensions could continue to affect the manufacturing sector, analysts said.

“Sectors reliant on oil will remain affected until global tensions are eased. The government should look at alternative sources of constrained inputs,” Mr. Rivera said.

“Another thing of concern, we’re heading into El Niño where there’s less rain, and the agriculture sector might be affected. Although it goes without saying that we will still need to import more food commodities,” Mr. Barcelon added.

But expectations of slower inflation this year could boost the sector, they said.

“As inflation is easing significantly, output is expected to increase assuming no disruption particularly from natural calamities will happen,” Mr. Rivera said.

The Bangko Sentral ng Pilipinas expects headline inflation to average 3.7% this year, slower than the 6% print in 2023, and to ease further to 3.2% in 2025. — Bernadette Therese M. Gadon

BSP unlikely to cut rates soon as inflation risks linger

THE BANGKO SENTRAL ng Pilipinas (BSP) is unlikely to start easing its policy stance anytime soon, with a robust economy giving it room to keep borrowing costs high amid lingering upside risks to inflation, analysts said.

The BSP will likely keep borrowing costs steady at its first rate-setting meeting of the year on Feb. 15 even as the consumer price index (CPI) eased to an over three-year low in January, HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris D. Dacanay said in a note.

“We still do not expect the BSP to begin its much-awaited easing cycle during the Monetary Board meeting next week,” Mr. Dacanay said. “For one, we still expect headline CPI to accelerate in the coming months when unfavorable base effects kick in.”

Headline inflation slowed to 2.8% in January from 3.9% in December and 8.7% a year ago, the Philippine Statistics Authority reported on Tuesday. This was the slowest pace since the 2.3% in October 2020 and marked the second consecutive month that the CPI was within the BSP’s 2-4% target band.

The January CPI was also below the 3.1% median in a BusinessWorld poll last week and matched the low end of the BSP’s 2.8-3.6% forecast.

After hiking borrowing costs by 350 basis points (bps) in 2022, the Monetary Board tightened by another 100 bps throughout 2023, bringing the policy rate to 6.5%, the highest in 16 years.

Keeping benchmark rates steady for now may be prudent as there is still a possibility of inflation breaching the BSP’s 2-4% target in the second quarter, BPI Lead Economist Emilio S. Neri, Jr. likewise said in a statement.

“The latest GDP (gross domestic product) report has also shown that the economy remains resilient despite the aggressive rate hikes from the central bank, which means there is no urgent need to cut interest rates soon,” he said.

“Should inflation stabilize within the target range in the second half of the year, we expect the BSP to cut the policy rate by 75 bps from 6.5% to 5.75% this year,” Mr. Neri said.

The Philippine economy expanded by 5.6% in the fourth quarter, bringing full-year GDP growth to 5.6% in 2023. This was lower than 7.6% in 2022 and fell short of the government’s 6-7% target.

Mr. Dacanay said risks to the inflation outlook remain tilted to the upside as utility rates were recently raised and as rice prices are still high.

“There are also pending petitions to hike wages and jeepney fares, two policies that could stoke another inflation wave if enacted simultaneously,” he said.

In January, Manila Electric Co. raised the rate for a typical household by P0.6232 to P10.9001 per kilowatt-hour.

Metro Manila’s two main water concessionaires also began implementing higher rates in January. Manila Water Co. raised rates by P6.41 per cubic meter, while Maynilad Water Services, Inc. hiked by P7.87 per cubic meter.

Agricultural disruptions due to El Niño and an increase in oil prices due to the ongoing Middle East conflict continue to be significant threats to inflation, Mr. Neri added.

“However, a return to the target range of the BSP in the second half of the year remains likely, assuming oil prices hold steady,” he said.

Meanwhile, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the Monetary Board may start easing its policy stance in May and deliver a total of 100 bps in cuts this year amid slowing core inflation.

Core inflation, which excludes volatile prices of food and fuel, eased to 3.8% in January from 4.4% in December. This was the first time that core inflation settled within the 2-4% target after 17 months and was the slowest print since 3.1% in June 2022.

“(Core inflation) marks a symbolic return to the BSP’s 2-4% target range that will be hard for even the hawkish Monetary Board to ignore,” Mr. Chanco said.

The BSP sees headline inflation averaging 3.7% this year, slower than the 6% print in 2023, and easing further to 3.2% in 2025.

Meanwhile, the central bank’s risk-adjusted forecasts show that inflation could settle at 4.2% this year, above the 2-4% target, and could slow to 3.4% in 2025.

FED EASING AWAITED
The BSP is also expected to follow the US Federal Reserve’s policy moves to support the peso and keep a healthy rate differential with the US, the analysts said.

“Our baseline is for the Fed to begin its easing cycle in June 2024 and for the Fed to cut rates by 25 bps in each quarter thereafter. But with growth in the Philippines strong, the BSP has room to cut much later than the Fed in the scenario of upside risks to inflation materializing all at the same time,” Mr. Dacanay said.

Mr. Neri likewise said the timing and size of future rate cuts from the BSP 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.

“It seems the peso has the tendency to strengthen when the Fed eases its monetary policy. 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,” Mr. Neri added.

The Fed kept its target rate steady at the 5.25-5.5% range for the fourth straight meeting last week. It hiked borrowing costs by 525 bps from March 2022 to July 2023. — Keisha B. Ta-asan

Filinvest Development raises P10B from first tranche of bond offering

FILINVEST Development Corp. (FDC) has raised P10 billion in the first tranche of its P32-billion three-year bond program, the Gotianun-led conglomerate said on Wednesday.

In a filing, FDC reported raising P10 billion through 2.5-year peso fixed-rate bonds at a 6.3206% annual interest rate.

The first tranche included a P7 billion base offer and an option for oversubscription of up to P3 billion.

“We saw the success of the unwavering efforts of the joint lead underwriters and bookrunners with the offer achieving total bids of P31.5 billion, or 4.5 times oversubscription over the base issuance of P7 billion,” FDC President and Chief Executive Officer Rhoda A. Huang said during the listing ceremony in Makati City.

She said the net proceeds from the issuance will be used to partially finance our maturing bond redemption and capital expenditure, including financing for equity investments in renewable energy, water, hospitality, and digitalization projects.

“The overwhelming response to the first tranche of the P32-billion bond program with the P10-billion fixed-rate retail bond offer reflects investors’ confidence in our company’s growth and the country’s economic outlook,” Ms. Huang added.

Meanwhile, Securities and Exchange Commission Chairperson Emilio B. Aquino said that the reception to FDC’s bond issuance shows the conglomerate’s “steady earnings” across its portfolio, as well as the “strong financial flexibility and established brand names of its subsidiaries.”

“With these developments, we are sure to see stable investment opportunities for investors as the company expands its operations and maintains its position in the market,” he added.

FDC has diversified business interests encompassing property, banking services, sugar, and power, with subsidiaries including Filinvest Land, Inc., East West Banking Corp., Filinvest Hospitality Corp., FDC Utilities, Inc., and Pacific Sugar Holdings Corp.

For the first nine months of 2023, FDC’s attributable net income improved by 57% to P5.9 billion compared to P3.8 billion in 2022, as the conglomerate’s revenues rose by 26% to P64.6 billion.

On Wednesday, FDC shares closed unchanged at P5.50 apiece while Filinvest Land stocks dropped by one centavo or 1.47% to 67 centavos each. — Revin Mikhael D. Ochave

Capital’s office vacancy rate seen to drop to 14% by 2028

KATE SADE-UNSPLASH

THE vacancy rate of office spaces in Metro Manila is expected to decrease to 14% by 2028 due to projected demand growth, real estate consulting firm Colliers said on Wednesday.

“We see vacancy rates to gradually decrease to 14% by 2028,” Colliers Associate Director for Office Services Kevin Jara said during a briefing.

This is attributed to the “gradual growth of demand based on projections,” he said, adding that it does not include demand from Philippine offshore gaming operators (POGOs).

For 2023, the office vacancy rate increased by 19.3% to 2.7 million square meters (sq.m.) as of the end of the year due to the delivery of new office buildings and surrenders from nonrenewals and preterminations.

“We’ve had a stronger transaction activity compared to 2022 and in terms of net-office demand. Due to this, we’ve actually averted our original vacancy forecast of 20%,” Mr. Jara said.

“In the next five years, it is our hope that the trend continues, and we continually avoid that 20% mark,” he said.

The vacancy rate recorded as of 2023 was higher than the 18.8% posted in 2022.

Colliers said in a report that net take-up in 2023 reached 279,800 sq.m., more than double the amount recorded in 2022, as transactions continued to outpace lease surrenders.

Mr. Jara said that Colliers expects the demand to reach 336,000 sq.m. by the end of 2024.

“In 2023, we achieved 828,000 square meters of office space transaction, culminating three-year momentum of increase in office space transactions volume in the market,” he said.

In terms of transaction profile, traditional offices comprised the majority of office space deals, accounting for 46% of the total, including government agencies, telecommunication companies, insurance firms, and flexible workspace operators, according to the property consultancy firm.

This was followed by third-party outsourcing, which constituted 34%, comprising shared services and multinational shared service and captive firms. POGOs reportedly accounted for 20%.

“With the increasing demand forecast that we have for this year and the start of tapering of office supply by Manila’s office developers, we expect rents to marginally increase by 2.5% by yearend,” Mr. Jara said. — Sheldeen Joy Talavera

Aboitiz water unit eyes expansion of bulk water supply project

ABOITIZ InfraCapital, Inc., through its unit Apo Agua Infrastructura, Inc., is planning to expand the capacity of its P12-billion bulk water project to serve the growing demand in Davao City, the company’s president said.

“We are looking at an expansion of this to other areas of DCWD (Davao City Water District). As the DCWD expands, we will expand with them and other areas of Davao,” Sabin M. Aboitiz, president and chief executive officer of Aboitiz Equity Ventures, Inc. (AEV), told reporters on the sidelines of the project’s inauguration on Wednesday.

AEV is the listed holding company of the Aboitiz group.

The DCWD is the water utility and major piped water service provider of Davao City. It sources its supply from underground and surface water, serving around 240,000 customers in 116 barangays within its concession area.

The project which started operating in December of last year, is a public-private partnership between the Apo Agua and DCWD.

The Davao City bulk water supply project has a capacity of 300 million liters per day. Its water treatment facility is powered by a two-megawatt run-of-river hydroelectric power plant, utilizing a water-energy nexus concept.

The project taps supply from the Tamugan River, and the raw water passes through the run-of-river hydroelectric power plant which in turn generates energy.

The generated power will be used by the treatment facility to produce treated water.

Jovana Cresta Duhaylungsod, spokesperson of DCWD, said that with the operations of the bulk water project, DCWD hopes to reduce its activated deep wells.

“Right now, with the bulk water supply, we will rest the production of some wells. We will only use them for contingency if there’s a temporary shutdown of bulk water,” Ms. Duhaylungsod said, adding that 70% of DCWD’s supply will be coming from the Apo Agua bulk water.

With the operations of the project, Ms. Duhaylungsod said DCWD expects water shortage within its service area to be lessened. — Ashley Erika O. Jose

Enter the Dragon

THE PENINSULA MANILA will celebrate Chinese New Year on Feb. 10 with a Lion and Dragon Dance to spook away bad spirits, from 9:08 a.m. to 11:30 a.m. The hotel also has a limited-edition line of Lunar New Year edible fine chocolate trees, lo hei prosperity toss salad at The Lobby, and a special Lunar New Year celebration at Escolta buffet restaurant. -- THE PENINSULA MANILA

According to feng shui master Patrick Lim, this is going to be a good year

IT’S A GOOD year for most people for this Year of the Yang Wood Dragon.

On Feb. 1, BusinessWorld sat down for lunch at the New World Makati Hotel with feng shui master Patrick Lim Fernandez. He gave us a general outlook on the Lunar New Year, which starts on Feb. 10, as well as forecasts for the 12 signs of the Chinese Zodiac.

YEAR OF THE DRAGON
With a general reputation as lucky years, Mr. Fernandez says that China reports a 5% increase in the birth rates on Dragon years, due to the desire of parents for their children to bask in the Dragon’s good luck. However, that doesn’t work out for parents who were born in the Year of the Dog, it being the sign in conflict with the Dragon.

“It’s a year to showcase your talents and your strengths,” he said. “Everyone is good at something.”

The Dragon is also the sign of benevolence, so he advises people to “be generous with your talents and your strengths.”

As this year is representative of wood energy, this means growth in several areas. “There was slow stagnant growth because of the pandemic. Now, this is really a chance where we can see growth throughout the world. Take advantage of this energy: grow with the world, rather than against it.”

Industries that he sees flourishing this year include those related to knowledge (including training, publishing, and teaching), consultancy, accounting, the legal profession, and nature (environmentalism, plants and trees).

THE SIGNS
For the Rat, Mr. Fernandez sees a strong authority and leadership star, which means people will be looking to them for guidance. “With what you’re good at, try to be a leader there and try to find your unique style.” He does warn of misunderstandings and injury: “If you know something’s going to happen, try to preempt it.”

The Ox is lucky this year from a money perspective, and for them, it’s also a good year to develop multiple streams of income as well as to travel.

The Tiger also has money luck this year and will also have a good year to broaden their perspectives. On the other hand, they’ll also be more sensitive this year, and he tells people to warn others about this to reduce conflicts.

The Rabbits will surpass goals this year, though he warns about making “mountains out of molehills” and making small problems bigger. He also says that Rabbits should watch out for their health.

As for those born in the Year of the Dragon, he said, “This is your year.” It’s a time to showcase talent, and they’ll be more innovative and creative this year (it’s also a good time to brainstorm). Because a lot of things will be happening to the dragon, he says the energy can be frenetic, and he advises them to find balance.

Those born in the Year of the Snake will benefit from daylight (so he advises setting meetings for lunch), as well as luck in relationships with males (more than romantic partners, it also means luck with male family members and business partners). It’s also a good year for relationships, and energy can be found in food and celebrations.

Horses are told to be more patient and resilient; while Sheep have the chance to meet new people and expand their network — they just have to avoid being overly ambitious and spreading themselves too thin. Sheep may also be entangled in other people’s problems, and they should probably avoid gossip.

Those born in the Year of the Monkey are advised to focus on their long-term goals.

Roosters, friends of the Dragon, will benefit from this relationship, so long as they know what to prioritize. Mr. Fernandez also says that a certain star makes them more attractive — but to relationships that may not be good for them.

It’s not a good year for the Dog, in money or relationships, but they should look to rely on the people around them.

Finally, those born in the Year of the Pig can find good luck in expanding their business, and good luck in relationships both personal and professional (just be careful about losing things). — JL Garcia

Manila Water targets final testing of Calawis water project in May

MANILA Water Co., Inc. is expecting to provide 80 million liters per day (MLD) of additional treated water after the testing phase of its P8.2-billion Calawis Water Supply System Project (WSSP) in May this year, the company announced on Tuesday.

The east zone concessionaire said that the Calawis WSSP is already supplying 25 MLD to 919,784 residents of Antipolo City and nearby towns, it said in an e-mailed statement.

The project had been physically completed in June last year. It employs an 80-MLD water treatment plant, pumping stations, reservoirs, and a 21-kilometer primary transmission line.

The facility also uses Degremont compact units, which are “prefabricated, modular water and wastewater treatment plants engineered for more efficient production, transportation, and installation.”

“Under the company’s Service Improvement Plan, the Calawis WSSP aims to reduce our dependency to Angat Dam, which provides more than 90% of the water needs of Metro Manila and Rizal Province,” the company said.

Manila Water also intends to construct new water sources, adjacent infrastructure, and rehabilitation of existing facilities under the said plan.

The Calawis WSSP forms part of the company’s Wawa-Calawis Water Supply System, which would provide additional 518 MLD of water to customers in Antipolo City, Teresa and Baras in Rizal, Pasig, Taguig, Makati, and portions of Manila.

At the local bourse on Wednesday, shares of Manila Water climbed by P0.34 or 1.85% to close at P18.74 apiece.

The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera

It’s the Year of the Dragon in the Chinese zodiac — associated with good fortune, wisdom and success

Robinsons Manila’s Chinese New Year installation. The various Robinsons Malls are celebrating the occasion on Feb. 9-11 with special decorations, dragon and lion dances, feng shui forecasts, Chinese cultural performances and shows, and a Lucky Dragon Red Envelope promo. -- ROBINSONS MALLS

AMONG China’s traditional holidays and celebrations, none ranks higher in importance than the Lunar New Year . Also known as the Spring Festival , or simply Chinese New Year, it marks the beginning of the year according to the traditional lunar calendar.

The Lunar New Year usually starts sometime between late January and mid-February. In mainland China, official celebrations last for seven days as a public holiday. This Lunar New Year, which falls on Feb. 10, is the Year of the Dragon.

I’m a scholar of Chinese religious history and culture who was born in a Year of the Dragon. What fascinates me the most is how the celebrations are a reminder of the longevity and vibrancy of traditional Chinese culture.

FOOD, GIFTS AND CELEBRATIONS
At its core, the Lunar New Year is a celebration that brings the family together. Preparations start a week in advance and include cleaning and decorating the home, as well as shopping, especially for gifts and provisions, and food preparation.

A central event is the family dinner on the eve of the new year. The choice of dishes varies, reflecting family customs and local culinary traditions. Often it includes dumplings, spring rolls, cakes, fish and pork dishes. There is also a fair amount of drinking, especially traditional wines or liquor. Many of the dishes are assigned symbolic meanings. For instance, dumplings are given the shape of gold ingots to invoke good fortune.

Other customs associated with Lunar New Year celebrations include the giving of red envelopes containing money, usually by elders to younger members of the family. The red color, which is also featured prominently in Lunar New Year decorations, symbolizes prosperity and good fortune.

Traditionally, families and local communities burn firecrackers to mark the new year and ward off monsters. According to legend, the origin of the practice goes back to a story about a monster called Nian, who is believed to have been causing great harm to some villages. In response, the villagers are said to have set off explosions to scare off the monster, and the practice caught on. However, more recently the Chinese government has been cracking down on this traditional practice on the grounds of its being dangerous and polluting.

YEAR OF THE DRAGON
Traditionally, the dragon is an auspicious symbol of strength and power. It is also associated with good fortune, wisdom, success, protection and masculinity. In pre-modern China, it was associated with imperial rule and was prominently featured on the first Chinese flag, initially instituted by the Qing dynasty in 1862. To this day, a dragon image is often used to symbolize China itself.

Because of the dragon’s auspicious associations, dragon years tend to bring upticks in fertility rates. Considering China’s current shrinking population and deepening fertility crisis, some are expressing hope for a baby boom during the coming year, as certain parents may be motivated to bring dragon children into the world.

According to the Chinese zodiac signs, each year in the lunar cycle is associated with a particular animal. This is a 12-year cycle that repeats itself. Thus, there are 12 animals, each associated with a year in the cycle: rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog and pig.

Among the popular myths about the origins of the Chinese zodiac is one about a great race initiated by the Jade Emperor, the ruler of heaven, in order to measure time. As the rat won the race, it came to be listed first among the 12 animals of the zodiac. The order of the other 11 animals reflected their final position in the race. Each of the 12 zodiac animals came to represent certain characteristics believed to shape the personalities of individuals born in those years, with the dragon often considered to be the most auspicious of all.

ORIGINS OF THE LUNAR CALENDAR
Traditionally, the Chinese have followed their native lunar calendar, which is based on observations and measurements of astronomical phenomena. While modern China adopted the Gregorian calendar in 1912, traditional festivals such as the Lunar New Year still follow the old lunar calendar.

The origins of the lunar calendar may go back to the dawn of Chinese civilization, traditionally associated with the legendary Xia dynasty, said to have ruled from 2070 to 1600 B.C. The origins of the Lunar New Year celebrations are also not entirely clear; some scholars believe they likely go back to the rule of the Shang dynasty, which lasted from 1600 to 1050 B.C.

RELIGIOSITY AND LUNAR NEW YEAR GALAS
While the Lunar New Year is generally centered on the theme of family bonding, religious observances are also an integral part of the festivities. These include domestic rituals associated with popular Chinese deities, such as the Kitchen God and the God of Wealth. Family members also make offerings and engage in other rituals related to ancestor worship. Commonly, these include food offerings and the burning of incense at home altars.

During this period, many people go to Buddhist or Taoist temples, as well as other places of worship. They engage in traditional forms of piety, including offering incense and praying for good luck and fortune.

A modern element in ushering in the Lunar New Year is watching the New Year’s Gala, a popular variety show that features singing, dancing, comedy and drama. It first aired in 1983, and ever since it has been broadcast countrywide by CCTV, the national TV broadcaster. It is the most-watched television program in the world, with an audience that can reach as many as 700 million viewers.

LARGEST HUMAN MIGRATION
In recent decades, China has experienced drastic demographic changes, especially the migration of large rural populations into big urban centers.

Additionally, China’s one-child policy has had far-reaching effects on family structures and, consequently, on traditional customs and observances.

Millions of rural children are living with their grandparents or relatives while their parents work in faraway cities. As a result, the Lunar New Year brings about the largest human migration in the world, as students and migrant workers do their best to get back to their families.

During this period, trains, buses and planes are packed with travelers, and tickets must be booked well in advance. That still remains the case this year, despite China’s gloomy economic outlook.

CELEBRATIONS OUTSIDE CHINA
The Lunar New Year is also celebrated in other parts of Asia, including Vietnam and Singapore, as well as in East Asian communities across the world. Usually, these celebrations have some unique features or assume local character. For instance, in Vietnam, where the festival is known as Tết, there is the preparation of various local dishes, along with parades and public performances.

In the US and Australia, where there are substantial ethnically Chinese populations, Chinese New Year festivals and parades are held each year. Some of them feature the traditional dragon dances, which highlight the communal aspect of Lunar New Year festivities.

Over the centuries, the coming together for the Lunar New Year celebration has remained an important part of the cultural heritage for Chinese families, connecting the past to the present, wherever they happen to be. — The Conversation via Reuters Connect

This is an updated version of an article first published on Feb. 1, 2022.

 

Mario Poceski is a professor of Buddhist Studies and Chinese Religions at the University of Florida.