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Action, agility, and empathy

FREEPIK

In mid-2021, upon the suggestion of one of its senior fellows, Action for Economic Reforms (AER) decided to refresh the organization’s brand identity.

The exercise coincided with AER’s 25th anniversary, but there were several other reasons behind the decision to rebrand.

AER was long overdue for a visual refresh. While pushing for reforms for the past 25 years, AER felt that it neglected its brand. Its visual identity was outdated and did not communicate the essence of AER or align with the purpose of galvanizing support for our advocacies.

AER’s programs itself were also growing beyond the confines of the existing brand. Since its founding, the organization has branched out into many different areas of work: macroeconomic policy, health policy, freedom of information, industrial policy, human development, and most recently, data-driven development. As we had not refreshed our brand in 25 years, our vision, mission, and values statements lacked key concepts which are now our programs’ key pillars. One of these pillars is inclusion, an anchor of our new data-driven development projects at the local government level.

After months of reflection and brainstorming, with the help of designers and marketing experts, we came up with a new visual identity along with refocused mission, vision, and value statements.

Our new vision is now much simpler, emphasizing our goal of sustainable, equitable, and inclusive development.

And our mission is now: “To advocate economic and governance policies and practices that promote Philippine development through independent, rigorous, and timely research, analysis, and engagement.”

But what I found most interesting was our review of the core values that guide AER. There are three core values that I resonated with the most: action orientation, agility, and empathy. AER is an organization led by its values, and so I see these words as concepts the organization knows intimately and consistently puts into practice.

One of our biggest goals during the rebranding exercise was to emphasize the “action” in Action for Economic Reforms, highlighting AER’s role as a coalition-builder and mobilizer in civil society.

In AER executive director Men Sta. Ana’s 1996 piece “Charting new paths,” which explains AER’s mission as an independent policy advocacy group, he wrote that AER was formed to respond to an urgent need for nuanced analysis on reforms’ specific features, context, enabling conditions, timing, phasing, and sequencing. The tendency, he said, is to gloss over technical work because of the perception that technocracy connotes elitism. He wrote that the organization’s goal is to educate the public on tradeoffs, opportunity costs, and other consequences, providing nuanced positions rather than polarized perspectives.

But through the years, AER has done more than research, education, and analysis. In its pursuit of influencing policy and practice, it has mobilized coalitions (such as the Sin Tax Coalition, which successfully contributed to the legislation of several sin tax reforms), networked, and engaged in dialogue. It is now delving into local problem solving through its Data-Driven Development projects, venturing into promoting the use of data and evidence for local governance, policymaking, and citizen participation, with 14 local government unit partners from Luzon, Visayas, and Mindanao.

Another core value we identified is agility, or the ability to move and adapt quickly to political and economic constraints. AER interacts with different politicians, civil society actors, technocrats, and the private sector, and adopts different strategies depending on the political climate. AER understands the importance of compromise and pragmatism in reform, which allows it to continuously engage with different policy actors and secure progressive reforms.

Lastly, empathy is a value that needs to be highlighted in policy reform and in the big picture of national politics, now more than ever. In this polarized political climate, two weeks after the landslide victory of Ferdinand Marcos, Jr., emotions are high, and empathy is dwindling for those who have been deeply disheartened by the results of the elections. The results confirmed that despite all efforts, there is a huge gap in understanding the majority of Filipino voters. The gap is so huge that, as Manolo Quezon wrote, “the minority does not quite believe the majority exists; because if it does, it would be too alien and loathsome to inspire either empathy or a continuing desire to serve.” If we want to continue the fight against disinformation and authoritarianism and bridge the huge cultural divide, we will need to rekindle empathy and deepen understanding.

Dr. Gideon Lasco recently wrote that the challenge now is not to “educate” others but to make them feel part of whatever it is that you’re fighting for. While education remains important, the elections just further demonstrated that we live in a post-truth world where facts do not reign supreme. This poses a challenge for a think tank like AER. While we prioritize rigor and being data-driven, times are changing, and communication strategies should adapt accordingly. Getting our message across, getting people to buy into our vision for sustainable, equitable, and inclusive development, and securing reforms will require a lot more creativity, empathy, and telling compelling stories.

 

Pia Rodrigo is Action for Economic Reforms’ strategic communication officer.

Enemies, seen and unseen

FREEPIK

Last Monday, I escorted my wife Amina to the Peace Partners’ Recognition Day 2022 held by the Office of the Presidential Adviser on Peace, Reconciliation and Unity (OPAPRU) at the Philippine International Convention Center (PICC). She was one of the awardees. I was happy to attend the event, not just because Amina was being recognized for her unwavering support for peace but also because of my deep admiration for Secretary Carlito “Charlie” Galvez, OPAPRU chief. Through Amina, I have known Sec. Charlie as a man dedicated to the peace process and to a final and peaceful resolution of the armed conflict in Mindanao. I personally got to know him through the partnership between the government and the private sector to protect our people and the economy from the pandemic.

The public-private partnership started when Finance Secretary Carlos Dominguez requested Jaime Augusto Zobel de Ayala to help organize private sector support for the COVID-19 Inter-Agency Task Force (IATF) in its war against COVID-19. Sec. Charlie was the National Task Force Chief Implementer. Apart from regular consultations between the government, the private sector on how to deal with COVID’s economic impact, we rallied the private sector around the testing, tracing, and treatment efforts led by Sec. Charlie.

We private sector representatives were deeply impressed by Sec. Charlie’s strategic understanding of the problem. Instead of merely expanding RT-PCR testing capacity and increasing the PPE inventory, he convinced us to look at a broad front: to Test, Trace, and Treat. Hence the name T3, which he coined at our very first meeting.

Thus, when Sec. Charlie promised “a better Christmas” last May, we were hopeful (https://bit.ly/BetterChristmas051622).

Working with him has made me appreciate Amina’s optimism over the peace process under Sec. Charlie’s leadership and concern about preserving the gains made by OPAPRU under a new administration. She and her fellow awardees hope that Sec. Charlie can continue to serve as Peace Adviser. I can see how the qualities that he exhibited during our work on the pandemic made his stewardship of the peace processes successful.

Let me list the five qualities that impressed us in the private sector, as defined by Bill Luz when he toasted Sec. Charlie at a thanksgiving dinner on May 5, tendered for all in the partnership to neutralize COVID.

First, he was data-driven. Sec. Charlie absorbed all the details of our presentations and used them to help evolve the strategy for our very fluid situation. From those presentations, he adapted the concept of our “Walls of Protection” and deployed the communications plan for people to get vaccinated and build their layers of protection.

Second, he was a perfect fit for the challenge. The Philippines may have gotten off to a slow start in vaccine procurement, but Secretary Charlie proved to be an expert negotiator with the vaccine manufacturers. After negotiating for peace with rebels holding rifles on the table opposite him, he said negotiating with vaccine manufacturers was a relative walk in the park. Whereas in the first quarter of 2021, we feared that we would not have enough vaccines for our people, he eventually helped secure more than enough supplies for the population — including children, second boosters for adults, and boosters for adolescents.

Third, his engineer’s mind could easily process the challenges we were facing. The entire COVID response, and especially the National Vaccination Program, had so many moving parts. Sec. Charlie’s strategic mind shifted from the big picture to the tactical, and back, as conditions shifted and changed. He taught us his “Center of Gravity” approach, and later led us to his “Focus and Expand” strategy, telling us to build “Depth of Defense” along the way. Eventually, our pandemic response’s reach broadened across the country, while preserving gains that had been made.

Fourth, he was extremely hardworking. Secretary Charlie was constantly on the move during this entire COVID period, traveling around the country, going to the airport countless times to accept vaccine shipments, inaugurating vaccination sites, and giving his weekly briefings to the President. He has placed himself at risk of catching COVID so many times that he’s been swabbed for an RT-PCR test around 300 times. And as if the Vaccine Czar job wasn’t enough, he continued with his work as the Peace Adviser, traveling to Mindanao often as the needs warranted.

Finally, he was humble and a pleasure to work with. He promoted teamwork and empowered people to speak and share ideas. We had many discussions on policy and protocol and he was always ready to listen. His calm and cool demeanor and his way of explaining things and giving credit to people were always appreciated. We’re all truly proud to say that we had the chance to serve under a four-star general like Secretary Galvez.

Those five qualities are needed if the mandate of the government for peace, reconciliation, and unity are to be successfully implemented. At the OPAPRU event, Sec. Charlie noted that development is not possible without peace, and peace is unattainable without development. Today, more than ever, we need a leader at the helm of OPAPRU who can strengthen the foundation for peace and development.

The country’s road to a just peace is strewn with barriers, which requires strong, yet compassionate leadership. The creation of a meaningful autonomy in Muslim Mindanao is both a social justice, and peace and development issue, following the Constitutional promise of “closing the gap between law and justice.” Presently, the administration of the Bangsamoro Autonomous Region of Muslim Mindanao has been overburdened by COVID-19 at a time when the Bangsamoro Transition Authority was just starting to work on a new governance mechanism — that of a parliamentary system. Meanwhile, the threats from violent extremism and the inadequate rehabilitation of the victims of the Marawi Siege were major burdens hobbling the projects of the BARMM leaders.

Another major block on the road to peace is the threat of insurgency from the CPP-NPA-NDF, with the peace process suffering ups and downs in the negotiations amidst allegations of insincerity. Unlike the Moro liberation fronts that had fought for independence, and accepted autonomy in Muslim Mindanao, the Left has always moved for a total change in our national political system and are present in impoverished communities from North to South. As threats go, this has more teeth as the insurgents have held private sector operations hostage in their conflict zones.

The job of the Office of the Presidential Adviser on Peace, Reconciliation and Unity is critical, as the country attempts to rise from the economic devastation of the pandemic. Agriculture has to grow, factories must be operational. Tourism must open our sites to the world. But, as Sec. Charlie had noted, development cannot succeed without peace. As many have noted, it is hoped the country’s journey to peace and development can continue under Sec. Charlie’s stewardship.

 

Romeo L. Bernardo was finance undersecretary from 1990-96. He is a trustee/director of the Foundation for Economic Freedom, Management Association of the Philippines, and FINEX Foundation.

romeo.lopez.bernardo@gmail.com

Sri Lanka has fallen. Will other economies follow?

COLOMBO, SRI LANKA— THAROUSHAN KANDARAJAH-UNSPLASH
COLOMBO, SRI LANKA

Financial crises have a domino effect. A seemingly small event in one country can have far-reaching consequences around the world. We’ve seen it in the 1997’s Asian Financial Crisis and again in the global financial crisis of 2009.

Sri Lanka is experiencing its worst financial crisis since gaining independence in 1948. For years, Sri Lanka spent more than it earned and covered the gaps with debts. When President Gotabaya Rajapaska was elected in 2019, he ordered deep tax cuts as a populist move instead of adopting policies to narrow the country’s gaping deficits. With that, it was only a matter of months before the country depleted its cash reserves. With more than $50 billion in foreign debts and a shortage of cash, the country struggles today to pay for essential imports like food, medicines, and fuel for its power plants. Sri Lanka’s 22 million people are starving and this has triggered civil unrest.

Consequently, credit rating agencies downgraded Sri Lanka’s debts to default levels. Access to new money is few and far between. The country must pay $7 billion worth of debt this year but only has $1.6 billion in its treasury. It can no longer borrow its way out of its woes. Last month, it had no choice but to default on its loans. Sri Lanka is now looking at the IMF for a bailout.

Sri Lanka has fallen. Will other economies follow?

Yes, according to the IMF.

Last February, the international lender flagged 70 economies as being in danger of going Sri Lanka’s way, what with ballooning debts, shrinking cash reserves, and large trade and budgetary deficits. The list includes the Philippines. Others in danger are Egypt, Tunisia, Lebanon, Argentina, El Salvador, Peru, Ghana, Kenya, South Africa, Ethiopia, and formerly mighty Turkey. Within the next 12 months, economies in debt distress will be unable to meet their obligations and will default, the IMF foretells. This will usher in the largest debt crisis of this generation.

How did we get here? It was a confluence of events. It started with easy access to loans primarily from China. Xi Jinping’s belt and road initiative lured countries to acquire massive amounts of debt to fund infrastructure. These debts, however, carried steep repossession clauses in case of default. Worse, debts from China include clauses that allow them to interfere in the foreign and domestic policies of the borrowing country. China led many counties into a debt trap.

Trade sanctions are more prevalent than we realize. There are 20,000 trade sanctions currently in force and these have dragged on global trade. Low- and middle-income economies are the most affected by these sanctions. For those unaware, trade sanctions are enforced by larger economies as a way to control the politics of smaller ones.

All these were exacerbated by the pandemic. Countries like the Philippines had no choice but to acquire piles of new debt to weather the crisis. This, coupled with a standstill in economic activity and drop in revenues, eroded the financial standing of many nations.

Vladimir Putin’s war was the final nail in the coffin. The war choked the global supply of wheat and fuel causing steep price hikes across the globe. Supply chains were disrupted and financial markets went into disarray.

THE PHILIPPINE ECONOMY UNDER MARCOS
Marcos will be inheriting a weaker economy than President Duterte did in 2016. Debts are at a maximum tolerable level of 63.5% of gross domestic product as of March 2022. The budget deficit is now wider than ever at $33 billion or 8.6% of GDP as the end of 2021. Exports are tepid while imports are voracious — the merchandise trade deficit was at $43.13 billion last year. Our manufacturing and agricultural sectors have eroded to such a point that we are now import-dependent on practically all our needs including rice and flour. As if this weren’t enough, unemployment stands at 6.4% while 23.7% of the population lives in poverty.

Our saving grace is healthy Gross International Reserves (GIR) which stand at $108.5 billion as of last March, which is sufficient for 9.6 months of imports. We have the toil of our OFWs to thank for this.

What must Marcos do to prevent the Philippines from going the way of Sri Lanka? I recommend eight policies and/or action points.

First. Shun populist policies that erode national incomes and those that make the country less conducive to doing business.

Second. Prudent financial management. Prioritize spending and forgo budget insertions that are frivolous, excessive, or dispensable. Clamp down on budget leaks attributed to graft and corruption. If borrowing is necessary, source domestically whenever possible.

Third. Increase government revenue to GDP ratio from 15.5% to at least 17%. This necessitates increasing tax collection efficiency. To do this, Marcos must come down hard on smugglers, tax delinquents, and tax evaders. But Marcos will not have the moral high ground to do this unless he first settles his own tax obligations. So, squaring-off his own tax debt is the first order of the day. Not to do so will erode his credibility and embolden the rest of society to ignore their tax obligations.

Fourth. Narrow the trade gap. There is no getting away from it — we must wean ourselves away from import dependence and pivot from being a consumer-led economy to one that is production lead. To do this we must foster a manufacturing resurgence. We need not re-invent the wheel. In 2013, the Department of Trade and Industry launched a manufacturing resurgence program that involved the crafting of some 80 industry roadmaps. The program was so successful that in 2014 and 2017, the growth of industry outpaced the growth of services for the first time in our post-war history. The manufacturing resurgence program simply needs an update and a renewed commitment.

Fifth. We cannot do it alone. We need foreign direct investments (FDIs) to pull off a manufacturing resurgence. But FDIs will not come unless there is confidence in Marcos’ leadership. Thus, Marcos must prove that his motives for national development are pure. This will be evident by leading by example. He must prove that cronyism and entitlement will not be hallmarks of his administration. He must prove that the rule of law will be applied to all, especially those in the axis power including the houses of Duterte and Marcos.

Sixth. We must work double-time to develop the industries where the Philippines has a competitive advantage. This includes IT-KPO’s (Information Technology-Knowledge Process Outsourcing, the development of which was neglected by the Duterte administration), maritime industries, mining, electric vehicles and parts, aerospace, food manufacturing and agro-processing, construction, creative industries, e-commerce, and data centers, among others.

Seven. Revive agriculture. There are a multitude of factors that impede agricultural development, not the least of which are the limiting effects of CARP (Comprehensive Agrarian Reform Program) on economies of scale, the lack of infrastructure and technology, and expensive farm inputs. The Marcos administration must find ways to circumvent these obstacles. One way is by the establishment of Agri Hubs. I explained this concept at length in this corner on April 25.

Eight. Accrue foreign exchange earnings wherever we can get it. One of the low hanging fruits is tourism. As a tourism product, the Philippines is a triple-A threat. The impediment to the influx of foreign visitors is connectivity (or lack of direct flights) and ease in domestic connections.

There is so much more to be done. Suffice to say that it all boils down to fiscal prudence and the aggressive pursuit of national revenues. The financial tsunami is coming. Let’s hope Marcos prepares for it.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Middle-class morality

PHILIPPINE STAR/ MICHAEL VARCAS

A student of Economics asked, “How do you think the election (results) will affect the middle class? They say when the economy declines the middle-class shrinks. Although I’m already assuming the economy will decline.” She had read and reacted to my July 11, 2021 column piece in BusinessWorld, “The Middle Class burden” (https://bit.ly/MiddleClassBurden071021) where I wrote of the decline of the economy due to the COVID-19 pandemic restraints and seclusions, burdening the middle class more than the rich or the poor.

Yes, a downturn in the economy affects the middle class the most among the social classes. And the shrinking of the middle class compounds the decline of the economy further. But before that, the middle class primarily spurs economic growth: A strong middle class provides a stable consumer base that drives productive investment and is a key factor in encouraging other national and societal conditions that lead to growth. The Philippine economy expanded by 5.6% in 2021 as loosened pandemic-related restrictions buoyed business activity at year-end (https://asia.nikkei.com, Jan. 27, 2022). The Filipino middle class is about 44% of the population in this consumption-driven economy that looks to the services sector manned mainly by the middle class. About 13% of middle-income households had a member working as an overseas Filipino worker (OFW) contributing $31.4 billion in cash remittances last year, providing strong backing to the Philippines’ economic recovery from the pandemic (Ibid.). The middle class pays taxes on at least 30% of its income.

The Philippine Statistics Office shows that as of 2020, there are 46 million Filipinos (about 12 million households) who are “Middle Class,” with a range of monthly family incomes from P23,381 (Lower Middle Class) to P46,761 (Middle-Middle Class) to P81,832 (Upper Middle Class) peaking at P140,284 which is the maximum before the next “Upper Income but not Rich” income class. The Middle Class would be 43.5% of the total population of 105.76 million per the PSO. The Low Income but not Poor would be 38.4% of population, and the 17.7 million Poor (earning below the P11,690 poverty level) would be 16.7% of population.

Note that among those considered middle-class households, 63%, or 7.6 million households, belong to the lower middle-income group. About a quarter are middle-middle class and a tenth in the upper-middle income class. How perilously easy it is for the middle class to tumble down like lightly stacked domino chips to the dismal “poor” level! And that is why the middle class is the most worried, as they are most affected by a decline in the economy.

The 2018 Family and Income Expenditure Survey conducted by the Philippine Statistics Authority (PSA) showed that in 2015, half of the middle-income persons aged 24 years and above attained education beyond secondary education. About 25% of middle-income persons work in wholesale (buy and sell) and retail trade (sari-sari and small stores), while nearly a fifth work in small transport (tricycle, jeepney, or bus). About 16% of this income group work in government, mostly as clerks or public-school teachers, and only 11% of them derive incomes from agriculture, and most of them belonged to the lower-middle-income group. About 13% of middle-income households had a member working as an overseas Filipino worker (OFW) with most of them belonging to the upper-middle-income group.

Three in five urban households are middle-class, but only 3% are high-income. The majority of them reside in Metro Manila followed by the Calabarzon region and Central Luzon, while a little more than half are spread across other regions. The middle class is comfortable, and happy with themselves for what status and stability they have achieved for themselves through plain hard work and perseverance.

Sociologists have pointed out that this feeling of achievement and the accompanying fear of losing social and economic status characterizes the middle class. The rich, by their entrenched most superior position of vast resources, are confident and secure; the poor, by their pitiful lack of resources and opportunities are mostly resigned to their status and can only dream of miracles. But the middle class can stay in place only by working hard; rise by working harder; or sink by not working enough. Worse, the middle class can sink by other “macro” forces like a downturn in the economy, with inflation, increase in cost of living, taxes etc. Or, be intimidated by a more than two-year-long COVID pandemic that refuses to go away yet.

The natural defense mechanism for the middle class that has developed in the regime of capitalist economies is the iconic “Middle-Class Morality” — a working cliché passed down from English linguistic tradition believed to be initiated by the Irish playwright George Bernard Shaw in his 1938 play, Pygmalion. Shaw portrays through parody, the elitist middle class as having some of the highest levels of morals and work ethics as the discipline to guard their status. “The term ‘middle-class values’ is used by various writers and politicians to include such qualities as hard work, self-discipline, thrift, honesty, aspiration, and ambition” (Daily Express, May 10, 2013).

Perhaps G.B. Shaw went overboard to caricature the social-economic middle class in his Victorian-Edwardian time, those plebeians who wanted to act, talk, and even dress like the rich, but snorted at the lack of finesse of the poor like the Cockney Eliza, and the lack of moral values of her bum-father, Alfred Doolittle. With the stereotyping by Shaw, many have disparaged and mocked this so-called middle-class morality as a holier-than-thou demeanor that hides base instincts for economic survival and collective power. But the collective mobilization and angry protests of the middle class in Pakistan ousted the eight-year dictator Zulfikar Ali Bhutto and had him executed in 1979 for transgressions of human rights and corruption. “Bhutto fell due to middle-class morality,” Political Science professor K. Husain said (https://nayadaur.tv, Dec. 19, 2018).

It was Filipino middle-class morality that roused the groundswell for the EDSA People Power Revolution and ousted the dictator Ferdinand E. Marcos, Sr. in 1986. “Tama na, sobra na!” (Enough is enough!) Filipinos were shocked and angered to the extreme by the cold-blooded assassination in public of oppositionist senator Benigno Aquino, Jr. on Aug. 21, 1983. Strangely alarming is the obvious parallel fate of Marcos Sr. and Bhutto at the judgment and action of middle-class morality.

But after a passionate climax, there is the languid stupor of relaxation. The Filipino collective consciousness thereafter might have been complacent and forgiving of the seeming relaxed standards of morality in government, as there might have been even in personal life. Or, new standards were evolving, not for the better. Why were some 12 coup d’états attempted against President Corazon Aquino, an icon of Philippine democracy at EDSA I? What did middle-class morality actively do to chasten the few military men who wanted to rule the country their way? No collective mobilization? But as should be, the justice system punished the putschists — until they were pardoned by the next president, Fidel Ramos.

It would be un-Christian to say that the pardoning was perhaps the figurative turning point in the degrading of EDSA I, but the coups certainly urged the lowering of the strict standards of middle-class morality for integrity and democracy — after all, the middle class led the EDSA People Power Revolution.

And now, 36 years after EDSA I, the son and namesake of the ousted dictator Ferdinand Marcos, Sr. is presumptive president of democratic Philippines, voted in by some 31 million Filipinos on May 9, 2022.

What was your question again, dear student? “How do you think the election will affect the middle class?”

It will depend on Middle-Class Morality.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Alpine Villas: Your gateway to premier Swiss living

Alpine Villas is a charming enclave consisting of mid-rise towers in the style of Swiss chalets.

It brings you to nature’s embrace.

This picturesque 100-hectare Swiss-inspired luxury community in Tagaytay City, after all, does not only regale you with breathtaking views atop an elevation that lets you revel in the cool mountain climb. Crosswinds—which is being developed by Brittany Corp., the luxury residential arm of the country’s largest homebuilder Vista Land & Lifescapes Inc.—encloses on you with the quiet serenity of its lush pine forests amid a beautiful semblance of the famed Alpine region.

Alpine Villas’ newest tower, Biel, was named after a famous Swiss village and was inspired by the concept of bathing one’s senses in the forest atmosphere.

That it has become a favorite vacation spot, especially over the last two years amid the pandemic, isn’t at all surprising as it presents a charming iteration of the idyllic rural life but in a more sophisticated setting.

Some 35,000 towering pine trees are spread across this magnificent expanse of rich foliage, dotted by clusters of luxurious homes, hotels and mid-rise residential towers that are meanwhile built in the likeness of Swiss chalets. Open spaces—where you can take a breath of fresh, cool air and commune with nature—abound, yet right within this community are modern conveniences and sophisticated dining offerings to suit your discerning palates.

Crosswinds offers a slew of outdoor recreation, from cycling and jogging paths to beautiful running and hiking trails.

Premier oasis

Crosswinds, today, has truly become that premier Swiss oasis that can offer Filipinos exquisite communities reminiscent of the Alpine charm.

The latest village to bring this allure closer to home is the 2.8-hectare Alpine Villas, a charming enclave consisting of mid-rise towers in the style of Swiss chalets. The first four towers namely, Bernese, Blanc, Brienz and Biel are set to rise 582 meters above sea level, commanding an exceptional view of the Crosswinds’ exclusive community.

In Crosswinds, residents can experience total calmness walking through lush forest of pine trees while enjoying the panoramic views of nature.

Inspired by the concept of forest bathing, Alpine Villas is being built on the principles of sustainable design. Even prior to the pandemic, this development has already been conceptualized with environmental, health, and well-being considerations in mind.

Essentially, this quaint complex seeks to highlight how nature nurtures, heals and restores.

The 9-story Biel, for instance, is designed to reflect the beauty of nature, incorporating the elements of wood and other natural materials in its 58 units, consisting of one- and two-bedroom cuts. Some 30 percent of this development will also be dedicated to green open spaces.

Amid the bounty of open spaces, colorful blooms, and the fresh pine scented breeze, Alpine Villas inspires you to slow down, practice mindfulness, and reconnect with nature—a pursuit that has become even more meaningful since the pandemic started two years ago.

One good thing here is that there are a few remaining units left like those in Biel, which offers bigger unit sizes, more open spaces, upgraded features and the best views and vantage point.

It is indeed the ideal property for those who seek comfort, tranquility and mindfulness retreat away from the city.

Conducive for pursuits

You won’t be left wanting here though as Alpine Villas and Crosswinds, in particular, has created a community highly conducive for a myriad of pursuits, making it truly an ideal respite no matter the time of the year.

Nature-inspired activities beckon as Crosswinds allows for outdoor recreation with its cycling and jogging paths as well as running and hiking trails. A curated list of amenities, divided in passive and active spaces, will no doubt keep you busy—fitness facilities, private park, kids’ outdoor play area, pet park, function hall and tranquility garden.

Practical features will afford you that elusive peace of mind too—24/7 safety protocols, CCTVs in all common areas, Wi-Fi, and building systems. Units were also designed with versatility in mind, providing homeowners with the flexibility of designing their spaces.

What’s even better is that Alpine Villas is near a row of dining concepts that will let your palate travel the world—Windmill Lausanne, Cafe Yama, Dear Joe and Andersen’s Bakery. There’s also Ruined Project?, Napa, Cafe Voila and Coffee Project near the entrance of Crosswinds.

In Crosswinds, kids can stay outdoors, play in various green spaces and spend more time in nature.

Sound investment

A unit at Alpine Villas is notably a sound investment option that will benefit you in more ways than one. Besides giving you a home in a beautiful, peaceful community such as Crosswinds, it will also allow you to gain significantly via capital appreciation should you want to divest it sometime in the future—although I doubt that you would want to.

And even if you don’t intend to stay here all year round, your investment in Alpine Villas will be well worth it. Over the last five years and even in the midst of the pandemic, unit prices here have increased by an impressive 67 percent, with a compounded annual growth rate of 11 percent. Opportunities for passive income are possible.

Besides Crosswinds in Tagaytay, Brittany also offers a fine selection of home designs, high-end condominiums and lot-only properties in excellent locations such as Portofino in Alabang, La Posada in Sucat and Georgia Club in Sta. Rosa, Laguna.

For more information on Brittany Corporation’s collection of luxury properties, visit www.brittany.com.ph or follow them on Facebook, Instagram and YouTube.

 

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Australian firms looking to invest in mining, logistics — ambassador

STOCK PHOTO | Image from Pixabay

Australian mining and logistics firms are interested in doing business in the Philippines according to Australian ambassador Steven J. Robinson, who cited policy reforms that have eased the barrier to entry.

“I think the future’s looking very, very good,” he said on May 20, the first day of the Philippines-Australia Friendship Festival in SM Megamall’s Fashion Hall.

Noting that ratings agencies predict that the Philippine economy will bounce back to pre-pandemic levels, Mr. Robinson said: “That’s a great reason for Australian firms to be here and invest.”

More than 300 Australian companies operate in the Philippines, employing over 44,000 Filipinos in business process outsourcing, infrastructure, financial services, ICT (information and communications technology), and energy sectors.

In 2020, Australia ranked 20th among the Philippines’ export markets; 15th among import suppliers; and 15th among trading partners. In the same year, total bilateral trade was valued at $1.13 billion and promotion agency investments from Australia amounted to $9.68 million.

The Philippines is Australia’s 10th largest market for dairy, as Australia accounts for 4% of total Philippine dairy imports, according to Bel S. Castro, a founding faculty member of Enderun Colleges. Australia also has over 500 wine labels available locally.

Coles Group Limited — an Australian retailer known for chocolate bars, milk, and honey — recently entered the country through a distribution agreement with SM Supermarkets.

The Philippines-Australia Friendship Festival runs until May 22 at the SM Megamall Fashion Hall.

There will be a free afternoon program on May 21, as well as pop-ups featuring wines, sustainable meat, healthy snacks, and beauty products from the Land Down Under. Booths with information on education opportunities in Australian universities will also be present. Two round trip tickets to Australia via Qantas will be raffled off. — Patricia B. Mirasol

Huawei eyes young workforce as key to green innovation

REUTERS

By Brontë H. Lacsamana, Reporter

CHINESE multinational technology company Huawei Technologies Co., Ltd., will continue investing in green innovation to support digital growth in the Asia Pacific. 

Ken Hu, Huawei’s rotating chairman, said at the May 19 opening of the Huawei APAC Digital Innovation Congress 2022 that the company invested 22% of $99.9 billion (its total revenue in 2021) in research and development for green technologies. 

“Moving forward, we will keep investing heavily in innovation to help our partners in the region meet their strategic development goals,” he said. 

In 2020, Huawei’s ecological acoustic monitoring system — called Guardian — was rolled out in Palawan, Philippines, where forest rangers were able to receive real-time alerts of rainforest destruction on a mobile app.  

“The possibilities are endless, and I am sure that each industry will be able to figure out where and how they can get help from digital technology to meet their specific needs,” Mr. Hu said.

He added that APAC’s young workforce can be tapped to accelerate green digital development. “Compared to other regions, this workforce will be relatively young. This is an important advantage, and we should invest more in the next generation of digital talent,” he said. 

Yang Mee Eng, executive director of the Association of Southeast Asian Nations (ASEAN) Foundation, said at the event that a strong information and communications technology (ICT) talent team can achieve an inclusive and resilient digital APAC. 

“Technological disruption greatly affected the ASEAN workforce,” she said. “We must train the workforce to be able to fully utilize digital tools.” 

Huawei, in partnership with ASEAN Foundation, announced in August 2021 that it would invest $100 million in the Spark startup ecosystem and provide digital training to 500,000 talents in the region within the next five years. 

In the Philippines, the company’s program Seeds for the Future benefited over 200 students over the last seven years while its ICT Academy has been rolled out in more than 60 partner universities in the Philippines, covering over 13,000 students.

 

China cuts borrowing rate more than expected to revive housing sector

REUTERS

SHANGHAI, May — China cut its benchmark reference rate for mortgages by an unexpectedly wide margin on Friday, its second reduction this year as Beijing seeks to revive the ailing housing sector to prop up the economy.

Senior officials have pledged further measures to fight a slowdown in the world’s second-biggest economy, hit by coronavirus disease 2019 (COVID-19) outbreaks that prompted stringent measures and mobility restrictions and causing huge disruptions to activity.

Many market participants believe Friday’s move was also a response to Chinese Premier Li Keqiang’s call to decisively step up policy adjustments and let the economy return to normal quickly.

“Today’s reduction to the five-year Loan Prime Rate (LPR) should help drive a revival in housing sales, which have gone from bad to worse recently,” Julian Evans-Pritchard at Capital Economics said in a note.

“But the lack of any reduction to the one-year LPR suggests that the PBOC (People’s Bank of China) is trying to keep easing targeted and that we shouldn’t expect large-scale stimulus of the kind that we saw in 2020.”

China, in a monthly fixing, lowered the five-year LPR by 15 basis points to 4.45%, the biggest reduction since China revamped the interest rate mechanism in 2019 and more than the five or 10 basis points tipped by most in a Reuters poll. The one-year LPR was unchanged at 3.70%.

The country’s benchmark stock index, Shanghai Composite Index, rose roughly 1% in early trading on the rate cut on Friday. The move failed to excite mainland-listed property shares, which were flat, although Hong Kong-listed developers inched up slightly.

Many private-sector economists expect China’s economy to shrink this quarter from a year earlier, compared with first quarter’s 4.8% growth. Indicators from credit lending, industrial output and retail sales showed COVID-related stringent measures and mobility restrictions have taken a heavy toll.

A key drag on growth has been the property sector, which policymakers are seeking to turn around. Property and related industries such as construction account for more than a quarter of the economy.

China’s property sales in April fell at their fastest pace in around 16 years, while new new-home prices declined for the first time month-on-month since December, hurt by weak demand amid wide COVID-19 lockdowns.

“Policymakers might have reached a consensus on whether to revive the property sector,” said Xing Zhaopeng, senior China strategist at ANZ, predicting further easing measures.

LIMITED ROOM FOR CUTS

The central bank has pledged to step up support for the slowing economy, but analysts say the room to ease policy could be limited by worries about capital outflows, as the Federal Reserve raises interest rates.

Capital Economics believes the lack of a one-year LPR cut suggests the central bank may be concerned about the potential impact on capital outflows and the yuan.

The LPR is a lending reference rate set monthly by 18 banks and announced by the People’s Bank of China. Banks use the five-year LPR to price mortgages, while most other loans are based on the one-year rate. Both rates were lowered in January to support the economy.

Friday’s cut suggests that “China’s economic growth was facing increasing resistance this year,” said Marco Sun, chief financial market analyst at MUFG Bank.

Eighteen of 28 traders and analysts in a Reuters poll had forecast a reduction in either rate, including 12 who expected a 5-basis-point cut for each tenor.

A campaign by the authorities to reduce high debt levels became a liquidity crisis last year among some major developers, resulting in bond defaults and shelved projects, shaking global financial markets.

Since the end of last year, Beijing has taken steps to help revive the property sector. Those include making it easier for large and state-owned developers to raise funds, relaxing rules on escrow accounts for pre-sale funds and allowing some local governments to cut mortgage rates and down-payment ratios.

This week, financial authorities cut the floor of mortgage rates for some home buyers. But that measure and Friday’s cut alone will not ease the financing stresses for developers, many of whom are struggling to refinance debt.

Goldman Sachs estimates that the first-home mortgage rate floor would be lowered further to 4.25% from 4.4% previously.

Property shares have rebounded recently, but the muted reaction to Friday’s cut suggests some investors think it may not be enough to revive the struggling sector. — Reuters

Yellen says G7 to give Ukraine funds it needs ‘to get through this’

REUTERS

KOENIGSWINTER, Germany — US Treasury Secretary Janet Yellen said the G7 finance leaders on Thursday agreed to provide Ukraine the financial resources it needs in its struggle against Russia’s invasion, and that policymakers are determined to meet their inflation targets.

Ms. Yellen, speaking to reporters after the first day of a G7 finance ministers and central bank governors’ meeting here, declined to confirm an $18.4 billion figure pledged in the group’s draft communique seen by Reuters.

The meeting wraps up on Friday.

Ms. Yellen said that funding pledges to Ukraine during the meeting exceeded the $15 billion that Kiev has estimated it needs over the next three months to make up for lost revenues as the war devastates its economy.

A $40 billion US aid package expected to be approved by the US Senate this week would include $7.5 billion in new economic aid, while the European Commission pledged 9 billion euros for Ukraine, Ms. Yellen said. Other countries, including Canada and Germany, pledged additional amounts.

“The message was, ‘We stand behind Ukraine. We’re going to pull together with the resources that they need to get through this,’” Ms. Yellen said.

She said that high global inflation was a significant topic, but none of the policymakers had said they were considering raising their targeted inflation rates.

“What was discussed was the critical importance of central banks taking the actions that are needed to show they are committed to the inflation targets that they’ve set,” Ms. Yellen said.

Ms. Yellen said the officials felt that economic conditions had not changed “so fundamentally, that it would be worth dislodging what we felt would become a stable anchored set of inflation expectations.”

She said that she still believed that the US Federal Reserve could achieve a “soft landing” of the economy without causing a recession, but how Fed officials achieve this is up to them though it “requires both skill and luck.”

Discussions about mechanisms to reduce Russia’s revenues from oil exports to Europe were limited on Thursday, Ms. Yellen said, adding that there is a lot of interest in the concept.

US officials have floated the idea of imposing tariffs on Russian oil to limit the amount of revenue that Moscow can collect while keeping Russian crude supplies on the market as EU officials pursue a phased embargo by year end.

Ms. Yellen said that a buyers’ cartel that would not buy oil above certain prices could be successful if it is large enough.

“Nothing is really crystallized as an obvious strategy,” she added. — Reuters

‘Retail apocalypse’: Wall Street shaken by inflation-induced earnings hits

CORPORATE.WALMART.COM

NEW YORK — Walmart, Target, and Kohl’s were among major retailers that reported earnings this week that missed Wall Street expectations by the widest margin in at least five years, underscoring the wallop four-decade-high inflation is bringing to US shoppers’ wallets and retailers’ bottom lines.

Among 145 retailers that have reported first-quarter earnings so far, 127 mentioned inflation and 138 flagged supply chain issues, according to Refinitiv data.

Higher staffing costs, bloated inventories and more expensive fuel took a toll on retailer profits, contributing to a market rout that saw Wall Street post its worst day since mid-2020 on Wednesday.

Department store chain Kohl’s Corp. on Thursday became the latest to cite soaring inflation in posting a 92% decline in adjusted profit.

Chief Executive Michelle Gass blamed higher freight and wage costs and lower clothing demand for adjusted earnings of 11 cents per share that was 59 cents short of analysts’ estimates, a gap of nearly 85%.

Walmart Inc., the nation’s largest retailer, posted a quarterly profit that fell 25%, marking its first miss in five quarters. The gap of 12.3% between Wall Street’s expectations and Walmart’s earnings per share figure was its widest since at least 2017.

For rival Target Corp., which saw its profits halve, that margin between expectation and reality was 29%, which was also its biggest in at least five years, according to Refinitiv.

“This is a little bit of a retail apocalypse. It was Walmart (on Tuesday) and everybody thought it was a one-off,” said Dennis Dick, a trader at Las Vegas-based Bright Trading LLC.

“Now that Target missed earnings (by) a lot more than Walmart even did, they’re scared that the consumer is not as strong as everybody thinks.”

While Wall Street brokerages were expecting profits to be pressured by soaring fuel costs, analysts said they were caught off guard by the rapid retrenchment among consumers and shifts toward buying lower-margin basics instead of more profitable general merchandise.

The extent of inventory buildup and heavy discounting by retailers was also a bit of a shock, they said.

“The biggest surprise was the inventory markdowns and rollbacks (in prices). I don’t think any analyst was expecting that,” CFRA analyst Arun Sundaram told Reuters.

AJ Bell Investment Director Russ Mould called the inventory figures “startling.”

Target’s inventories were up 43% in the first quarter, as unsold televisions and bulky kitchen appliances piled up, while Walmart’s rose 32% in the quarter.

In some ways, the retailers are victims of their own success after figuring out how to keep stores relatively well stocked in the midst of supply snarls, truck driver shortages and on-and-off lockdowns intended to curb the spread of COVID-19.

Mr. Sundaram said Target’s wider earnings miss was due partly to a greater emphasis on general merchandise sales compared to Walmart, which focuses more on selling groceries and other essentials.

Wall Street is also “angry” about the lack of warning from Walmart and Target, which gave upbeat outlooks for 2022 a little over two months ago, said Jane Hali, CEO of investment research firm Jane Hali & Associates.

The financial impacts of the war in Ukraine and prolonged COVID lockdowns in China likely played a part in the stark turnaround in companies’ predictions for the year, she added.

“Wall Street is panicked,” Ms. Hali said. “Target had an investment day not too long ago, where they made no mention of the issues they highlighted on Wednesday. So I can understand the Street being angry about that.” — Reuters

BSP sees reform continuity, solid growth this year

PHILIPPINE STAR/ MICHAEL VARCAS

The Philippine central bank chief said on Friday president-elect Ferdinand “Bongbong” R. Marcos, Jr., is better placed than his predecessor to face economic challenges and that he expects structural reforms and infrastructure build-up will continue under the new administration.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, speaking at an Asian Development Bank Institute forum, said there are clear indications that key reforms will continue under Mr. Marcos, who takes office next month and will command a supermajority in Congress.

A smooth transition of power, and the newly-elected leader’s “overwhelming mandate” should help sustain economic growth and investor confidence, he said.

“They have also indicated that they are going to continue what’s being done by the current administration, which is strong on public infrastructure,” Mr. Diokno said, referring to Mr. Marcos and his political allies that include Vice President-elect Sara Duterte-Carpio, the incumbent leader’s daughter.

Mr. Diokno also said the next administration will inherit “a better state of infrastructure” and a “more robust economy”, putting this year’s growth on track to hit the 7%-9% target.

But like the rest of the world, he said the Philippines faces risks to its growth outlook, such as a deterioration in the coronavirus disease 2019 (COVID-19) situation and a prolonged Russia-Ukraine conflict.

The BSP has taken measures to sustain the growth momentum by addressing rising inflationary pressures, with a 25 basis points increase in interest rates effective Friday, its first hike since 2018.

Mr. Diokno said the BSP’s policy tightening cycle has begun, adding that its “exit strategy” after undertaking “extraordinary” measures to support the pandemic-hit economy will be rolled out in a gradual manner.

The BSP’s policy actions will be “well-communicated” and guided by the inflation and growth outlook over the medium term as well as the public health situation, he said. — Reuters

IMF’s Georgieva says finance leaders must prepare for more inflation shocks

KOENIGSWINTER, Germany — International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that global finance leaders may need to become more comfortable with fighting multiple bouts of inflationary pressures.

Ms. Georgieva told Reuters that it was getting harder for central banks to bring down inflation without causing recessions, due to mounting pressures on energy and food prices from Russia’s war in Ukraine, China’s zero-COVID (coronavirus disease 2019) policies that have slashed manufacturing with lockdowns, and the need to reorder supply chains to make them more resilient.

“I think what we need to start getting more comfortable with is, that may not be the last shock,” she said, noting that she stopped viewing inflation as a “transitory” one-time shock when the Omicron COVID-19 outbreak took hold late last year.

She said strong demand from the United States, supply chain disruptions and the Ukraine war effects all point to longer-lasting inflation. The COVID-19 pandemic is not over and there could be another crisis, she added on the sidelines of a Group of Seven (G7) finance ministers and central bank governors meeting in Germany.

China’s zero-COVID policy, which has led to widespread lockdown in major cities, is unworkable due to highly contagious variants, but officials in Beijing are “digging their heels” in to resist altering it, she said, adding that its effects would be discussed at the meeting.

She said she was “actually not too worried” about China’s economy because the Beijing government has fiscal and monetary policy space to support growth.

Ms. Georgieva said efforts by countries to shift their supply chains from maximum efficiency to increased resilience, will raise some costs, as there will need to be redundancy.

“So is this going to be a one-time price shock and then no more impact on inflation? Or will it be a kind of clipping our wings more,” she said. “We have to figure it out.”

Ms. Georgieva also said she hoped to talk about concerns she has raised about the global economy fragmenting into competing blocs led by the United States and other market-driven democracies on one side and China, Russia and other state-led economies on the other.

The IMF has said this would be a “disaster” with competing technology, regulatory stems and institutions. — Reuters

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