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Philippines says it’s under pressure from China to cede claims in South China Sea

DEFENSE SECRETARY GILBERTO C. TEODORO, JR. — DND

CANBERRA – China is putting ever-greater pressure on the Philippines to cede its sovereign rights in the South China Sea, Secretary of National Defense Gilberto Teodoro said on Tuesday after a meeting with his Australian counterpart in Canberra.

“What we see is an increasing demand by Beijing for us to concede our sovereign rights in the area,” he said, adding that the Philippines was a “victim of Chinese aggression”.

China and the Philippines have sparred repeatedly this year over disputed areas of the South China Sea, including the Scarborough Shoal, one of Asia’s most contested features.

Teodoro’s meeting with his Australian counterpart Richard Marles, their fifth since August 2023, reflects growing security ties between the countries, both of whom have expressed concern about Chinese activity in areas of the South China Sea claimed by the Philippines and other Southeast Asian nations.

The two nations signed a strategic partnership in September 2023 and held their first joint sea and air patrols in the South China Sea several months later. The Philippines also joined war games in Australia this year for the first time.

China claims almost the entire South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce, including parts claimed by the Philippines, Vietnam, Indonesia, Malaysia and Brunei. The Permanent Court of Arbitration in 2016 said China’s claims had no legal basis, a ruling Beijing rejects.

Teodoro said China’s claims and behavior were contrary to international law and defense deals with partners such as Australia were an important way to deter Chinese incursions.

“Although they (China) claim to act under the aegis of international law, everybody knows that what they’re doing is contrary to the tenets of international law,” he said.

“The biggest evidence of this is that nobody has actually supported their actions or activities.”

In addition to closer ties with countries including Australia and the United States, the Philippines also plans to spend at least $33 billion on new weapons including advanced fighter jets and mid-range missiles.

Mr. Marles said Australia wanted to work more closely with the Philippine defense industry and would send an engineering assessment team to the country early next year. – Reuters

What does the US election outcome mean for the Philippines and Asia?

The 2024 U.S. presidential election is capturing attention worldwide as Vice President Kamala Harris and former President Donald Trump face off in a closely contested race to the White House. With the U.S. wielding the world’s largest economy and military, this election’s outcome will undoubtedly have far-reaching global implications. But what’s at stake specifically for the Philippines and the broader Asia and Indo-Pacific region?

In this B-Side episode, I will be speaking to Josue Raphael Cortez, a diplomacy instructor at the De La Salle-College of Saint Benilde’s School of Diplomacy and Governance.

Interview by Edg Adrian Eva
Editing by Jayson Mariñas

Amplifying brands: leveraging podcasts for business growth

How can podcasting help businesses in terms of brand management, community building, and thought leadership? In this episode, BusinessWorld speaks with Ron Baetiong, the founder and CEO of Podcast Network Asia, about the impact podcasting can have for businesses who get into this digital medium.

Interview by Patricia Mirasol
Audio editing by Jayson Mariñas

ACG drives tax reform through CREATE MORE Act

On Nov. 11, 2024, President Ferdinand R. Marcos, Jr. signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, a landmark law designed to make the Philippines’ tax incentives regime more attractive to foreign investors.

The Asian Consulting Group (ACG), led by its Founding Chairman and CEO Mon Abrea, has played a significant advisory role in the development of CREATE MORE, working closely with the Senate Ways and Means Committee to shape provisions that prioritize transparency and benefit businesses across industries.

ACG advocated for four key measures to streamline tax compliance and accountability. First was the creation of a dedicated VAT refund center and the adoption of risk-based audit within the Bureau of Internal Revenue.

“We thank the government for prioritizing ease of doing business and addressing issues on tax incentives to attract more foreign investors,” Mr. Abrea said in a statement.

In addition, Mr. Abrea proposed to transfer the administration of tax incentives back towards Investment Promotion Agencies (IPAs) to enhance governance and efficiency in tax administration, and the introduction of the Global Minimum Tax.

Three of ACG’s core proposals — a dedicated VAT refund center, electronic VAT filing, and restoring authority to IPAs for approving tax incentives — were integrated into the final law, with VAT refunds now under the Department of Finance.

With the passing of CREATE MORE, the company continues its dedication for lobbying fair and transparent policies that support investors and businesses in the Philippines.

To learn more on how the CREATE MORE act can affect your business, consult ACG at consult@acg.ph.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Nika weakens, set to exit PAR by Tuesday afternoon

Source: PAGASA

Severe Tropical Storm Nika continues to weaken and is anticipated to exit the Philippine Area of Responsibility (PAR) by Tuesday afternoon, Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) said.  

After making landfall over Dilasag, Aurora, and sweeping across Northern Luzon on Monday, Tropical Storm Nika weakened from a typhoon to a severe tropical storm by Monday evening. 

Nika now has a maximum sustained winds of 95 km/h near the center, with gusts of up to 115 km/h, according to a weather advisory released by PAGASA on Tuesday at 11:00am.  

The storm located 225 km West Northwest of Laoag City, Ilocos Norte (18.8 °N, 118.5 °E) and is moving Northwestward at a speed of 10 km/h. 

PAGASA reported that if Nika maintains its current speed, it is expected to exit the PAR by Tuesday afternoon. However, its rainbands will still directly impact parts of Luzon, bringing heavy rains and strong winds to affected areas. 

Wind Signal No. 1 remains in effect for areas including the northern part of Ilocos Norte (Sarrat, Piddig, Bangui, Vintar, Burgos, Pagudpud, Bacarra, Adams, Pasuquin, Carasi, San Nicolas, Dumalneg, Laoag City), the northern portion of Apayao (Luna, Calanasan), the northwestern portion of Cagayan (Abulug, Pamplona, Sanchez-Mira, Santa Praxedes, Claveria), and the northwestern portion of the Babuyan Islands (Islands of Calayan, Dalupiri, and Fuga). 

PAGASA warns that winds of 39-61 km/h are expected in these areas within the next 36 hours. Damage to medium to high-risk structures is possible.  

Moderate to heavy rainfall, ranging from 50 to 100 mm, is also anticipated over these areas within the next 24 hours. PAGASA cautions that this could lead to localized flooding in low-lying and urbanized zones, as well as potential landslides in highly susceptible areas. – Edg Adrian A. Eva

Peru and China to sign strengthened free-trade agreement in Xi’s APEC visit

FREEPIK

LIMA – Peru and China will sign an updated free-trade agreement during President Xi Jinping’s upcoming visit to the Andean nation that would boost commerce by at least 50% between the countries, Peru’s foreign minister said on Friday.

In an interview with Reuters, Minister Elmer Schialer said the Chinese president would travel to Peru with a delegation of 400 business people interested in investing in infrastructure and technology projects in the country.

The free-trade agreement was originally signed in 2009 and the “optimized” version will be signed alongside 30 other agreements designed to improve cooperation between the countries.

“China is our main trading partner, experts say this will increase that dynamism by at least 50%,” Mr. Schialer said. Bilateral trade between the two countries reached nearly $36 billion last year according to data from the Peruvian Ministry of Commerce.

China has large mining and infrastructure projects in the country, including the Chancay mega port by Cosco Shipping Port.

“The port will launch Peru to another level of trade,” Mr. Schialer said. The port will be “virtually” inaugurated by Peruvian President Dina Boluarte and Xi from the government palace in Lima on Nov. 14.

Mr. Schialer added that Peru’s portfolio of mining projects totals $54 billion while its infrastructure projects yet to be developed total $157 billion. He noted that “China is particularly interested” in these projects.

The minister said he doesn’t expect changes with the United States given the recent election of President-elect Donald Trump.

“The only thing we hope for and are sure that will happen is an expansion of the United States’ presence in investments,” he said, adding that both the outgoing and incoming US administration have “given us clear signals of interest” in terms of investment. – Reuters

New Zealand offers national apology to people abused in care

STOCK IMAGE | Image by Gerd Altmann from Pixabay

New Zealand offered a historic national apology on Tuesday to victims and families of hundreds of thousands of young people and vulnerable adults who were subjected to physical and sexual abuse in institutions over the last 70 years.

The apology follows a report by a public inquiry in July that found some 200,000 children and vulnerable adults in state and faith-based care experienced some form of abuse from 1950 to 2019.

“It was horrific. It was heartbreaking. It was wrong. And it should never have happened,” Prime Minister Christopher Luxon said with around 200 abuse survivors and families watching on from the public gallery at parliament in Wellington.

“Today I am apologizing on behalf of the government to everyone who suffered abuse, harm and neglect while in care. I make this apology to all survivors on behalf of my own and previous governments.”

The government had completed or started work on 28 recommendations from the inquiry, the prime minister said, and will provide its full response early next year.

Mr. Luxon said a National Remembrance Day would take place on Nov 12 next year and work will begin to remove memorials like street names, public amenities, and other public honors of proven perpetrators. Instead, the country would honor the victims, many of whom were buried in unmarked graves at psychiatric and other sites that were places of care in New Zealand.

A bill to include a range of measures to improve safety in state care will have its first reading in parliament on Tuesday.

The Royal Commission of Inquiry was the longest and the most complex inquiry undertaken by New Zealand. The inquiry spoke to more than 2,300 survivors of abuse in the country of 5.3 million.

The inquiry detailed a litany of abuses in state and faith-based care, including rape, sterilization and use of electric shocks, which peaked in the 1970s.

Those from the Indigenous Maori community were especially vulnerable to abuse, the report found, as well as those with mental or physical disabilities.

The final report outlined 138 recommendations, including calling for public apologies from New Zealand’s government, as well as the Pope and the Archbishop of Canterbury, heads of the Catholic and Anglican churches respectively, who have condemned child abuse.

It also called for new legislation including mandatory reporting of suspected abuse, including admissions made during religious confession.

The report estimated the average lifetime cost to an abuse survivor was approximately NZ$857,000 ($511,115) per person as of 2020, although it did not make a clear recommendation on how much survivors should be compensated. – Reuters

Record-breaking bitcoin rally nears $90,000 on Trump boost

ANDRÉ FRANÇOIS MCKENZIE-UNSPLASH

SINGAPORE – Bitcoin stood on the verge of $90,000 on Tuesday, riding a wave of euphoria since the election of Donald Trump as U.S. president on expectations his administration will be crypto friendly.

The world’s biggest cryptocurrency has become one of the most eye-catching movers in the week since the election and touched $89,637 in Asia – a gain of more than 25% since Nov. 5.

It is surging along with Elon Musk’s automaker Tesla, which is up nearly 40% since voting results rolled in as investors figure Trump’s friends and interests will do well while he is in office.

“Obviously (it’s) a clear Trump trade as he is so supportive of the industry, and this can only mean more demand both for crypto stocks as well as the currencies themselves,” said Nick Twidale, chief market analyst at ATFX Global in Sydney.

“The fact that bitcoin was trading near all-time highs when the election result came through meant that it had clean sky above.”

Mr. Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.

It is not clear how or when that could happen but the possibility drove a speculative surge in crypto mining and trading stocks.

“I think it increases the chances that other nation states buy bitcoin in a bid to front run the U.S.,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.

“Additionally I think it would be a crazy catalyst for the U.S. listed Bitcoin miners … given possibilities of such entities getting nationalized.”

Crypto miner Riot Platforms jumped nearly 17% on Wall Street overnight and rose further in after-hours trade. Fellow miners MARA Holdings and CleanSpark leapt nearly 30%.

Software company and investor in bitcoin MicroStrategy announced it had spent about $2 billion buying bitcoin between Oct. 31 and Nov. 10. Shares rose 26% and were still gaining in after-hours trade.

The euphoria extended across the crypto landscape with smaller tokens such as ether and even one-time joke currency dogecoin having surged.

Crypto investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chair Gary Gensler whom Mr. Trump has said he will replace. Mr. Trump also unveiled a new crypto business, World Liberty Financial, in September.

“What we’re seeing isn’t just a price milestone; it’s a signal that the market is warming to the idea of bitcoin as a more stable, even politically favored, asset,” said Justin D’Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock. – Reuters

Mexico economy chief suggests possible tariff retaliation against US

STOCK PHOTO | Image by Jorge Carlos from Pixabay

MEXICO CITY – Mexico’s Economy Minister Marcelo Ebrard suggested on Monday that the Mexican government could retaliate with its own tariffs on U.S. imports if the incoming Trump administration slaps tariffs on Mexican exports.

Mr. Ebrard made the comments in an interview with local broadcaster Radio Formula, in which he reflected on how President-elect Donald Trump threatened 25% tariffs on Mexican goods during his previous term in office at a time when the Republican leader sought concessions from Mexico’s government on immigration enforcement.

“If you put 25% tariffs on me, I have to react with tariffs,” said Mr. Ebrard, who served as Mexico’s foreign minister during the previous incident.

“If you apply tariffs, we’ll have to apply tariffs. And what does that bring you? A gigantic cost for the North American economy,” he added.

Mr. Ebrard went on to stress that tariffs will stoke inflation in the U.S., which he described as an “important limitation” that should argue against such a tit-for-tat trade spat. – Reuters

Republicans win majority of US House seats in government sweep

STOCK PHOTO | Image by David Mark from Pixabay

WASHINGTON – President-elect Donald Trump‘s Republican Party will control both houses of Congress when he takes office in January, Decision Desk HQ projected on Monday, enabling him to push an agenda of slashing taxes and shrinking the federal government.

Republicans had already secured a U.S. Senate majority of at least 52-46, Edison Research projected, and DDHQ projected they would hold at least 218 seats in the House of Representatives, with eight races yet to be called in Tuesday’s election.

During his first presidential term in 2017-2021, Mr. Trump’s biggest achievement was sweeping tax cuts that are due to expire next year.

That legislation and Democratic President Joe Biden’s signature $1 trillion infrastructure law both came during periods when their parties controlled both chambers of Congress.

By contrast, during the past two years of divided government, Mr. Biden has had little success in passing legislation and Congress has struggled to perform its most basic function of providing the money needed to keep the government open.

The thin Republican House majority has been fractious, tossing out its first speaker, Kevin McCarthy, and routinely bucking his successor Speaker Mike Johnson.

Mr. Trump’s grip on the party and particularly its raucous hardliners has been far firmer – as evidenced by his success earlier this year killing a bipartisan deal that would have sharply stepped up border security.

His power will also be backed by a Supreme Court with a 6-3 conservative majority that includes three justices he appointed.

More immediately, the Republicans’ victory is certain to influence the House’s post-election “lame duck” session.

The current Congress faces end-of-year deadlines for funding the government to avoid shutdowns at Christmas and extending Washington’s borrowing authority to avoid an historic debt default.

One possible scenario is passing temporary patches to give the incoming Trump administration a say on these two controversial items when it assumes power from the Biden administration on Jan. 20. The new Congress convenes on Jan. 3. – Reuters

Australia regional airline Rex gets $53 mln government lifeline to keep flying

Source: https://www.rex.com.au/

SYDNEY – The Australian government said on Tuesday it would provide up to A$80 million ($52.6 million) to airline Regional Express Holdings to keep its regional routes running during an extended voluntary administration process.

Terms of the financing package were not disclosed.

Transport Minister Catherine King said the funding was “another demonstration of our commitment to maintaining regional aviation access, recognizing the important role that Rex plays in regional communities right across Australia.”

Rex in July entered voluntary administration, Australia’s closest equivalent to Chapter 11 bankruptcy, cut hundreds of jobs and closed its subsidiary that operated Boeing flights between Australia’s major cities.

Traditionally focused on servicing Australia’s regional areas with small planes, Rex in 2021 began larger jet flights on the big city routes dominated by Qantas Airways and Virgin Australia but failed to dent their market share.

The company has continued using its fleet of ageing Saab 340 turboprop aircraft for regional flights after calling in administrators.

Administrators at Ernst & Young Australia said in a statement that they intended to apply to the court for an extension of the voluntary administration to June 30.

Employees of the regional business who were made redundant will be paid their entitlements.

The government aid and an extension of voluntary administration would help the airline increase operational aircraft, Ernst & Young said.

Rex’s exit from the lucrative “golden triangle” among Sydney, Brisbane and Melbourne pushed up average airfares on those routes by more than 13% and reduced passengers’ choices, the competition regulator said on Tuesday.

This may have significant longer-term impacts on the domestic aviation sector, the competition commission said.

Currently, there is no domestic route serviced by more than two major airlines, with Qantas and Virgin Australia handling 98% of domestic passengers, it said. – Reuters

Grab boosts service reliability, accessibility amid holiday demand growth

Grab Philippines Country Head Ronald Roda, together with Director for Mobility EJ Dela Vega and Director for Deliveries Greg Camacho, shares the strategy of the leading superapp to offer a better experience for app users amid the holiday demand growth.

Grab Philippines is gearing up to surpass its holiday performance from last year, according to Country Head Ronald Roda. The leading superapp has been developing a comprehensive strategy to enhance reliability, accessibility, and safety as demand skyrockets in the final two months of the year.

Historical data shows that Grab Philippines experiences at least a 19% increase in daily transacting users for its ride-hailing services every last quarter of the year, with the number of ride bookings growing by up to 45% in the second and third weeks of December. For its deliveries business, demand rises by 20% on key holiday dates, with a recent survey by the brand revealing that 44% of Grab Philippines users rely on the app for their festive meal deliveries. 

Grab Philippines Country Head Ronald Roda shares, “Our data and studies all lead to a singular insight: Filipinos just wish to be present this Christmas — fully engaged with families and friends as they celebrate the most beloved holiday. Grab aims to bring our kababayans much closer to their loved ones, and help them create special moments this holiday season.” The yearning to be together every holiday is underpinned in Grab’s Holiday Trends study, indicating that Filipinos attend an average of four gatherings in celebration of Christmas and New Year.

The brand emphasizes that being a reliable and accessible platform is no easy task. “For some, the holiday season lasts two or three months. For Grab, it is a journey that spans over 10 months when you consider all the preparations done leading up to the season. We have been preparing since January of this year — working with our regulators towards a more balanced demand and supply, and launching a series of technologies to provide our consumers with a better holiday experience,” Mr. Roda adds. 

Strengthening partnerships to meet demand

While demand during peak times may inevitably outstrip current supply, the leading superapp remains optimistic that its service reliability this year will be much improved in comparison to the previous holidays. 

Mr. Roda expresses the platform’s gratitude to the Land Transportation Franchising and Regulatory Board (LTFRB) for its continued openness and supportive efforts. With the release of new TNVS slots in August, Grab has been onboarding new driver-partners — a process that can take up to three to five months.

Besides the challenge of demand-and-supply imbalance, Grab is also looking after the potential impact of holiday-induced traffic congestion on the earnings and productivity of driver-partners. Historical data of the platform show that drivers, on the average, will need to spend 14% more time for the same trip distance for most of the December holiday rush.

“While we continue to prioritize the accessibility of our services, we are also closely monitoring the fairness of our fares to ensure that our driver-partners can earn sustainably and viably this holiday season. By ensuring this, we hope to encourage more drivers to continue serving our passengers in spite of the traffic situation, helping maintain service reliability on our platform,” Mr. Roda notes. “The holidays are also crucial for our driver-partners, and we are committed to helping them capitalize on the increased demand to attain sufficient, if not above-par earnings, for themselves and their families.”

Grab assures users that fares will stay fair, in line with the regulatory matrix implemented by the LTFRB. To aid in maintaining the accessibility of its ride-hailing services, Grab has also expanded the coverage of its GrabUnlimited subscription service, which now includes an everyday 8% discount on GrabCar rides. Furthermore, as part of its affordability commitment, Grab has launched GrabCar Saver — an affordable mobility solution that is cheaper than a standard GrabCar ride.

The leading superapp has also recently launched its Group Rides feature, which not only maximizes the utilization of its fleet through the carpooling model, but also efficiently lowers down fares by allowing groups of four to share their ride’s base fare.

Harnessing Technology for an Elevated Holiday Grab Experience

Leading to the holidays, Grab has also introduced several new features that improve access to rides and food deliveries for Filipino consumers.

This lineup of new technologies includes Advance Booking, which guarantees on-time rides to the airport that can be booked up to seven days in advance — a perfect solution for holiday travelers.

In line with its commitment to affordability, Grab has also introduced a number of new features. The GrabFood Group Order feature facilitates collective meal orders for families and friends, offering escalating discounts that can go as high as 15% as the number of participants increases. 

GrabFood Saver helps users save on delivery fees, while the Large Orders option allows for ordering larger quantities of food and essentials for group celebrations, complete with special deals. These features are designed to effectively manage the expected growth in delivery demand during the Christmas season.

“Many of our kababayans are looking forward to spending the Holidays with their loved ones, and we are aware of their expectations of us during this season. With that, we have devoted our time, effort, and expertise to elevate their Grab experience — allowing every Filipino to be more present this yuletide season,”  Mr. Roda said.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

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