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It is about time for South Cotabato to reap the economic benefits from its Tampakan Project

BRGFX-FREEPIK

A bout 70 kilometers north of General Santos City is the site of the Tampakan copper project of Sagittarius Mines, Inc. (SMI). It has the potential of becoming one of the largest producers of copper in the world. According to its mining resource estimate in 2012, Tampakan has 2,940 million metric tons of resources, containing 15 million tons of copper.

SMI plans to operate this mine in phases, starting at 15 million tons of copper resources to produce 76,500 tons of copper. Tampakan’s copper resource has approximately 0.51% copper. The project has the potential of extracting 66 million tons per year and producing 336,600 tons of copper yearly. Its potential output is about 6% of what Chile, the world’s largest copper producing country, produced in 2021, and 15.3% of that of the second largest in the world’s copper industry, Peru.

POTENTIAL BOOST FOR THE PHILIPPINES AND PROVINCE OF SOUTH COTABATO
Copper has a vital future in the ongoing shift to a zero-carbon footprint by both industrialized and developing countries. This is due to copper’s very high thermal and electrical conductivity, which makes it ideal to use in renewable energy technologies like solar cells and electric vehicles. The metal has been used in producing electronic products like wiring and computer connections. Heat exchange applications as in air conditioners require copper because of its ability to heat up and cool down quickly. Its antimicrobial properties make the metal ideal in helping control infection in hospitals and healthcare environments.

The global copper market remains tight according to the International Copper Study Group, and its deficit is expected to expand till 2030. As the global economy recovers from the COVID-19 pandemic, demand for copper has increased, boosting the price of copper. Its price this year is still at a record high, fluctuating around $10,000 per ton.

However, prices of copper in January for July delivery dropped by 2.7% according to Mining.com due to these factors: a stronger US dollar and renewed concerns over global demand due to partial lockdowns in China. The Ukraine-Russia conflict is expected to have subdued impact on the global copper market. While Russia is a major producer, producing 4% of the world’s copper, 80% of it is sold to China.

Growing concern on a possible US recession this year is likely to feed the price decline of copper. This has the potential of dampening the bullish outlook on a tightening copper market deficit to 2030. Before the US Fed rate hike, analysts expect the copper market deficit to reach 6 million tons by 2030 due to more use of electricity and electric vehicles.

TWELVE YEARS OF PERMITTING HURDLES
Since 2010, the Tampakan project has long been ready to start mining copper ores in the province of South Cotabato. In those years before 2015, the project was owned by a Swiss mining company, Xstrata. The company had undertaken the Mining Feasibility Study in 2010, and having determined adequate reserves was ready to invest $5.9 billion to operate the mine. But it did not get a permit from the Aquino government to start the project.

Former President Benigno Aquino raised the issue of large-scale mining companies not contributing their fair share of revenues to the National Government. Xstrata went through the permitting process but the government of the late former President Aquino threw the ball to Congress, asking it to come up with a mining tax measure that corrects the inequity in the sharing of revenues from large scale mining. President Aquino essentially dribbled the ball until Xstrata was globally bought out by Glencore in 2012.

A new hurdle developed with the South Cotabato provincial government issuing a ban on open-pit mining in the province in 2010. Extracting the ores in Tampakan requires open-pit mining, and thus the local government ban struck down Glencore’s hope to be the one to operate the Tampakan mining project.

Glencore, the new owner of the mining project in South Cotabato, inherited the regulatory problems of Xstrata. However, it was hopeful that Congress would work on the required legislation which would pave the way for securing a permit to operate from the National Government. But it was not meant to be.

In 2015, Glencore sold the project to the new owners of SMI, all of whom are Filipinos. The Tampakan project was relatively small for the top mining company in the world to spend its time overcoming the stiff regulatory barrier of the country.

Hope of SMI, under its new all-Filipino owners and management, of getting a permit sprouted at the start of the administration of President Rodrigo Duterte. The President is from Mindanao, and operating the Tampakan project could induce economic development in the areas surrounding the mining site. That should have been a good incentive for the President to revisit the revenue-sharing hurdle to large scale mining of his predecessor.

However, that was quashed when President Duterte aired his reluctance to partner with large scale mining companies, ventilating similar issues on unfair revenue sharing as former President Aquino did.

But perhaps the strongest difficulty of SMI, and all large-scale mining companies for that matter, was the appointment by President Duterte of the late Gina Lopez as the secretary of the Department of Environment and Natural Resources (DENR) Secretary Lopez was a staunch opponent to mining in general, accusing large-scale mining companies of causing irreparable damage to the environment. In the eyes of Secretary Lopez, a policy prohibiting large-scale mining is a very good measure to protect the environment.

SMI was hit with its most stringent regulatory risk problem in 2017 when the DENR under Secretary Lopez issued a ban to open-pit mining throughout the country. The national measure strengthened opponents to the Tampakan project in South Cotabato which earlier prohibited open-pit mining in the province.

CORRECTING THE REGULATORY MISTAKE
The regulatory pendulum swung in the other direction on Dec. 23, 2021 when DENR Secretary Roy Cimatu issued Department Administrative Order (DAO) 2021-40, lifting his predecessor’s order banning the open-pit mining for copper, gold, silver, and complex ores in the country. The move was taken to revitalize the country’s mining industry and increase employment opportunities in rural areas around large-scale mining. On May 16, 2022, the Sangguniang Panlalawigan of South Cotabato lifted its 12-year-old prohibition to open-pit mining in the province.

The fight appears not over yet — news came out that South Cotabato Governor Reynaldo Tamayo, Jr. vetoed the province’s ordinance lifting the ban on open-pit mining on June 3.

Opponents to open-pit mining in South Cotabato may want to read Governor Tamayo’s statement carefully. He is for protecting the environment (as we all should be) and believes that the South Cotabato provincial government’s Environment Code is a measure for protecting the wanton destruction of the environment by mining.

However, Governor Tamayo added that Republic Act 7942 or the Mining Act mandates the National Government to regulate the activities of large-scale mining, and that LGU ordinances on mining apply to small-scale mining.

Moreover, lawyer Pacifico Agabin — chairman of the Constitutional Law Department of the Supreme Court’s Philippine Judicial Academy and concurrent general counsel of the Integrated Bar of the Philippines — said that, “It should be noted that local governments cannot regulate large-scale mining. Congress already passed a national law authorizing open-pit mining and LGUs cannot pass an ordinance that contravenes the national law.”

As earlier stated, former DENR Secretary Roy Cimatu issued Department Administrative Order (DAO) 2021-40 lifting the DENR’s ban on open-pit mining on Dec. 23, 2021. Former Dean of the UP College of Law, Agabin says that the June 9, 2010 ordinance of the South Cotabato Sangguniang Panlalawigan against open-pit mining and blocking the operation of the Tampakan project violates a national law and the Constitution.

It’s about time to start the Tampakan project.

 

Ramon L. Clarete is a professor at the University of the Philippines School of Economics.

Zooners

MARYMARKEVICH-FREEPIK

Baby Boomers are fading, Gen Xers are aging, and Generation Z is rising. Companies intending to be serious players in the retail landscape must turn their eyes to the Generation Z market. Known colloquially as “Zooners,” this market segment is aged 12 to 25 today. They comprise approximately 32% of the Philippine population and represent 300 million consumers, ASEAN-wide.

Zooners are a unique breed and we will do well to understand them. This is a generation that has seen nothing but political and economic turmoil. The more senior Zooners were born during the height of the Asian Financial Crisis of 1997 to 1999. They also lived through the hardships brought about by the global financial crisis a decade later. Unlike the generations before them, Zooners are well aware of the value of money and what it takes to eke out a living.

Filipino Zooners lived through political upheaval as they witnessed the ouster of President Joseph Estrada in 2002, the scandal-ridden years of GMA and blowback of infrastructure shortfall under PNoy. Their idealized image of a President was shattered as President Duterte cussed his way through his presidency while praising China, our tormentor in the West Philippine Sea row.

But all these were nothing to the consequences of COVID-19. The pandemic consigned Generation Z to two years of home confinement, unable to learn or socialize in the traditional manner. Zooners who just entered the workforce face a tight job market as companies downsize due to the contagion.

Zooners grew up with technology, hence, are considered “digital locals.” They are the first adaptors of artificial intelligence, automation robotics, digital and alternative payment methods, data cookies, voice controls, and automated digital marketing.

The turmoil that Zooners had to go through has given rise to unique characteristics. They are more financially pragmatic and risk averse than Generation Xers or Baby Boomers. As such, the greater majority prefer to study STEM courses over the humanities since STEM is perceived to offer more job security. This has made them analytical thinkers.

They have a strong belief in social causes and are generally more welcoming of new ideas. This is the generation that normalized the LGBTQIA+ lifestyle and the many permutations that exist under the “rainbow.” They are also the generation that quashed the misnomers (and stigma) of mental illness. Zooners have taken a strong stance against global warming since they are the most vulnerable to it.

They have a strong individualistic streak. Zooners refuse to be defined by categories or labels — they prefer to define themselves by their own terms. They are not as impressionable to trends as the generations that preceded them. Many Zooners prefer to buck fashion trends and instead carve their own path.

That said, Zooners display unique behaviors as consumers. They tend to be more informed and will often research and weigh options before making buying decisions. They tend to be less attached to specific brands, instead preferring to shop around for the best deal. They place high importance on brand ethics and corporate responsibility. They are most likely to shop on-line and are more receptive to ads on social media.

While Zooners are price conscious, they are not price centric. They have a preference for brands or products that show a balance of value, quality, and ethical practices.

When it comes to shopping, Zooners show the following habits: Despite being the generation that spends the most time online, Zooners prefer to shop on-premise to experience the “human touch.” As customers, their expectations on service and product quality are higher than that of Baby Boomers or Gen Xers. They like individualized shopping experiences that can be tailored to their own personal preferences.

Interestingly, Zooners have more influence on the consumer market than their spending power suggests. A great number of them still live under the roof of their parents and dictate the family’s buying decisions.

Experts from KMPG Consulting suggest broad guidelines when targeting the Zooner market. Products must be gender and size inclusive and must be sustainably manufactured. Services must be personalized, whenever possible, and frictionless to the extreme, using technology as an enabler. Experiences must be extraordinary and delivered as advertised.

As for attracting the Zooner market, companies will have the best chance of attracting them if they have an omnichannel strategy. Although this is true for all customers, it is especially true for Generation Z since they use multiple channels to shop – from on-premise, to social media, through influencers, through live streaming, etc. A seamless connection between channels must be assured. Moreover, Zooners demand an immediate response to product inquiries. While they do not mind talking to robots, many still prefer human interaction when booking a purchase.

As mentioned earlier, a socio-civic or humanitarian slant will always be an advantage when addressing a Zooner customer. But an occasional environmental post on social media won’t do. Zooners are sensitive to a brand’s dedication to an advocacy. The effort channeled by brands towards their advocacy must be palpable and sincere. Correspondingly, Zooners are activists and will not hesitate to call for a brand boycott if they discover unethical practices.

Zooners have become a market demographic too important to ignore. Brands playing the long-term game will do well to understand them and address them on their terms.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

The Prince of Wales and his discontents

DAN MARSH-FLICKR

IN GEORGE BERNARD SHAW’s prophetic comedy, The Apple Cart, a fictional King Magnus fights an attempt by Prime Minister Proteus to deprive him of the right to influence public opinion through the press. He wants a cipher for a sovereign. The King threatens to abdicate and stand for election himself — in the knowledge that the British monarchy is more popular than any dreary or opportunist politician.

Back in the real world, the royals are supposed to “never complain, never explain.” The Queen is famous for her discretion and dutifully dull pronouncements. Yet her heir, Prince Charles has been taking a leaf out of King Magnus’ book. He has been telling “friends” that the government’s controversial policy of deporting to Rwanda asylum seekers and migrants who have been smuggled illegally into Britain is “appalling,” according to a piece in The Times of London.

The number of migrants who have crossed the Channel from France in tiny, unseaworthy vessels since 2018 has risen above 50,000, with more than 10,000 so far this year, according to government figures. The scheme to fly them to Rwanda is intended to act as a deterrent to others — and give reassurance to voters that the Tories’ claim to protect Britain’s borders can be translated into practice.

The senior leadership of the Church of England has already denounced the plan as an “immoral policy that shames Britain,” but it’s traditional for the bishops to elide their liberal political views with the Bible against the Tories. Not so, the monarchy, which usually avoids a scrap with No 10.

Charles’s office at Clarence House has not denied his remarks, although a spokesperson insists that “he remains politically neutral.” This is constitutionally the case, but not in actual fact.

The Prince of Wales is known to chafe against his restraints. That’s only human for a 73-year-old man who has been kept waiting for the top job for decades. But then his mother’s superhuman silence on the burning issues of the day is also what endears her to her people and prevents schisms deepening around the royals for all their foibles and pratfalls.

It may not be long before Charles III takes the place of the 96-year-old Elizabeth II. So, the unpalatable fate that beckons is that he must learn to be dull, too.

The Prince may think that Prime Minister Boris Johnson — the wily latter-day Proteus in this drama — is on the backfoot after the Partygate scandals and the subsequent resignation of his second ethics adviser, Christopher Geidt, this week. Ironically, Geidt was ousted by Charles and his scapegrace brother Prince Andrew from his previous job as the Queen’s chief adviser when he tried to restrict their freedoms too tenaciously.

Still, Geidt’s advice holds good. The heir to the throne would be wise not antagonize his prime minister needlessly — Johnson has seen off most of his critics during his turbulent career and notoriously holds a grudge.

And Johnson has friends. The tabloid press are cheerleaders for the Rwanda policy. They regard Charles’ enthusiasm for fads like homoeopathy and organic food as eccentric. In a cost-of-living crisis, more than one commentator has observed that organic food is good to eat, provided that you have a princely income.

It was thought that Charles had learned his lesson 10 years ago after it was revealed that he was in the habit of sending “black spider” letters — named after his idiosyncratic spiraling script — offering advice to ministers on matters from environmentalism to planning rules. A freedom of information request by The Guardian forced their publication. The paper sneered that “the letters show behind the curtain, most of the time, Prince Charles behaves more as a bit of a bore on behalf of his good causes than as any sort of wannabe feudal tyrant.” But the letters might be seen as harbingers of problematic royal behavior.

Take the timing of the Prince’s latest apparent intervention: The European Court of Human Rights stopped the government’s first official flight to Rwanda on the tarmac last week in order to deliberate the legality of the policy. Tory MPs and their press friends are furious. By no coincidence, Charles heads off next week to Rwanda, which hosts the Commonwealth Heads of Government. The United Nations High Commissioner has praised Rwanda’s record on taking refugees from other war-torn African countries. Paul Kagame, its president, who brought peace to his country after the genocidal attacks on the Tutsis in the 1990s, has long been the poster boy for British aid. Critics, however, say his recent human rights record has been “appalling,” too.

The government’s policy does divide political opinion along sharp lines. A majority of Conservative voters and Brexit supporters are in favor of the £120 million ($146 million) scheme, while Labor voters and Remainers generally oppose it. The latest opinion poll conducted for the Tony Blair Institute shows that more than half rightly suspect that the scheme won’t work. Israel and Denmark have tried to offshore asylum seekers without success, though the European Union pays Libya to detain migrants and asylum seekers in miserable detention camps.

Refugee and immigration policy remains a hot-button issue for voters and the latter was a major factor behind the Brexit vote. So, Charles should keep out.

Britain has only just emerged from the divisions created by the toxic EU referendum campaign. The nation a fortnight ago celebrated 70 years of the Queen’s reign in a display of unity that impressed many foreign observers plagued by partisan politics of their own.

Geidt’s advice is going unheeded by both his former masters. Last week, Prince Andrew, now disgraced by his former association with the convicted sex traffickers Jeffrey Epstein and Ghislaine Maxwell, tried to barge his way back into the limelight. It was only the threat of a walk-out by Prince William, Charles’s eldest son, that got his uncle pulled from a royal line-up.

Like it or not, the Prince of Wales must act as his brother’s keeper. At the conclusion of the Apple Cart, the prime minister backs down — but the ultimate contest between King and the political class is left unresolved. The Prince of Wales, seeking a succession which will reassure as well as invigorate, will have to perfect the hardest act of all for a natural intervener: minding the “Firm’s” business, not everyone else’s.

BLOOMBERG OPINION

US supports Philippines in South China Sea, State Department says

PHILIPPINE COAST GUARD PHOTO

WASHINGTON – The United States supports the Philippines in calling on China “to end its provocative actions and respect international law in the South China Sea,” the State Department said on Friday.

The Philippines last week lodged new diplomatic protests against Chinese maritime activities within Manila’s 200-mile (321 km) exclusive economic zone.

It accused China of “illegal fishing” while Chinese coast guard vessels shadowed Philippine boats on a resupply mission, adding to more than 300 complaints filed against Beijing’s activities in the South China Sea.

The United States shares the Philippines’ concerns, the State Department said.

“These actions are part of a broader trend of PRC (People’s Republic of China) provocations against South China Sea claimants and other states lawfully operating in the region,” State Department spokesperson Ned Price said in a statement. – Reuters

Marcos names new BIR chief

Philippine President-elect Ferdinand R. Marcos, Jr. has tapped Bangko Sentral ng Pilipinas (BSP) Assistant Governor and former Bureau of Internal Revenue (BIR) Deputy Commissioner Lilia C. Guillermo to head the tax collection agency.

“Her strong background in IT (information technology) and her almost four decades of service at the BIR complements the President-elect’s objective of boosting the country’s revenue through efficient tax collection,” incoming press secretary Rose Beatrix “Trixie” Cruz-Angeles said in a statement.

Ms. Guillermo heads the BSP Technology and Digital Innovation Office, and is in charge of managing the BSP’s IT Modernization Roadmap.

She was also credited with implementing the Philippines tax computerization project at the BIR and Bureau of Customs (BoC), Ms. Cruz-Angeles said.

Tax lawyer Romeo Lumagui Jr. has been chosen as deputy commissioner for operations at the BIR, Ms. Cruz-Angeles said.

Mr. Lumagui, a tax lawyer, had also served as the regional investigation chief of Revenue Region No. 7B East NCR.

In December, the tax agency had sent a written demand to the Marcos family to settle their unpaid estate tax, which has ballooned to more than P200 billion due to interest.
The Marcos camp has not answered questions regarding the issue.

Mr. Marcos last month said the economy will languish if the government’s main revenue collection agencies, such as the BIR and the BoC, would not be fixed.

“It’s very, very important and we have to at the very least reduce the corrosive influence of corruption in government as a general rule,” he said.

Meanwhile, Mr. Marcos has picked Ricardo de Leon, a former police official, as head of the National Intelligence Agency (NICA).

Mr. de Leon currently heads the Philippine Public Safety College, an educational institution for all police, fire, and jail personnel. – Kyle Aristophere T. Atienza

BSP sees wider BoP, current account deficits this year on weaker global outlook

PIXABAY

THE BANGKO SENTRAL ng Pilipinas (BSP) expects the country to post a wider balance of payments (BoP) deficit this year due to a weaker global growth outlook that could affect trade and capital flows.

The central bank on Friday announced its revised BoP projections for 2022 and 2023 approved during the Monetary Board’s June 16 meeting.

The BoP gives a glimpse of the country’s transactions with the rest of the world at a given time. A deficit shows more funds exited the country than what went in, while a surplus means more money entered the economy.

“The emerging BoP outlook for 2022 and 2023 remains quite circumspect in view of the recent buildup in external risks. Of note is the downgraded global growth outlook following the escalation of the Ukraine-Russia conflict and its international ramifications, most notably the increase in food and fuel prices. The anticipated slowdown of China’s economy could also put pressure on trade prospects,” the BSP said.

“Meanwhile, capital flows could be particularly volatile following the abrupt monetary policy normalization in the US and in other major economies,” it added.

The country’s BoP is now expected to yield a deficit of $6.3 billion this year or equivalent to -1.5% of gross domestic product (GDP), higher than the previous projection of a $4.3-billion gap (-1% of GDP) announced in March.

Latest BSP data showed the country’s BoP stood at a $79-million surplus in the January-April period, a turnaround from the $231-million deficit in the same four months of 2021.

The central bank said it expects a bigger BoP gap this year amid a projected widening of the current account deficit to $19.1 billion (-4.6% of GDP) from the earlier forecast of $16.3 billion (-3.8% of GDP).

This is after it raised its growth projections for imports of goods and services to 18% and 13%, respectively, from 15% and 12% previously amid the recovery of the Philippine economy. Growth forecasts for goods and services exports were maintained at 7% and 11%, respectively.

The BSP maintained its growth forecasts for business process outsourcing (BPO) and travel receipts at 8% and 100%, respectively.

Meanwhile, the BSP maintained its projection for the growth in overseas Filipino workers’ cash remittances at 4% amid rising deployment and expanded channels for sending funds. Cash remittances increased by 2.7% year-on-year to $10.167 billion in the first four months of the year.

The current account deficit was at $4.8 billion in the first quarter, higher than the $32-billion gap seen the year prior, amid a wider trade in goods deficit and the slight decline in net services receipts.

As for the financial account, it is expected to register net inflows of $11.8 billion, higher than the previous projection of $10.9 billion, as the central bank sees a sustained uptrend in foreign direct and portfolio investments.

The central bank expects foreign direct investments (FDI) to end the year at a net inflow of $11 billion, steady from the March outlook, while foreign portfolio investments (FPI) or hot money is now expected to post at $4.5-billion net inflow, higher than the $4 billion the BSP projected in March “fueled in part by the planned issuances of initial public offerings.”

The financial account registered net inflows of $4.9 billion in the first quarter of 2022, a reversal from the $4.1 billion net outflows in the same period last year, amid lower FPI outflows and better inflows from other investment accounts that tempered a decline in net FDI inflows.

Latest BSP data showed total FDI net inflows rose by 2% to $2.43 billion in the first quarter from $2.39 billion during the same period in 2021.

Meanwhile, from January to April, BSP-registered FPIs yielded net inflows of $1.34 billion, a reversal from the $857.44-million net outflow in the same period last year.

Lastly, the country is now expected to end the year with gross international reserves (GIR) of $105 billion, equivalent to eight months of import cover, slightly lower than the previous forecast of $108 billion (8.4 months), “reflecting latest trends as well as the expected rationalization of the national government’s foreign borrowings amid fiscal consolidation efforts.”

GIR was at $103.53 billion as of end-May.

2023 FORECASTS

For 2023, the BSP maintained its forecast of a $2.6-billion BoP deficit, equivalent to -0.6% of GDP, “hinged mainly on expectations of higher inflows in the financial account supported by improved business and consumer sentiment, stronger domestic demand, and continued implementation of business-friendly legislative reforms.”

This is despite its projection of a wider current account deficit of $20.5 billion (-4.4% of GDP) from $17.1 billion (-3.7% of GDP) in March as the country’s trade gap is expected to continue widening.

Meanwhile, the growth outlook for cash remittances was maintained at 4% as base effects are expected to fade and with the recovery of host economies expected to stabilize to pre-pandemic levels, which could boost deployment.

The central bank also kept its growth projections for BPO and travel receipts at 5% and 150%, respectively.

On the other hand, the financial account is expected to register higher net inflows of $16.8 billion in 2023 from $13.4 billion previously as net FDI inflows are now seen at reaching $12 billion from $11.8 billion, while the net FPI inflow projection was maintained at $6.7 billion.

The BSP said the financial account will be boosted by expectations of the Philippines’ sustained growth momentum amid infrastructure improvements and investment-friendly reforms.

Lastly, the central bank lowered its 2023 GIR projection to $106 billion from $109 billion in March on expectations of foreign exchange flows.

“There is also scope to maintain sufficient reserves against possible adverse market volatilities as policy normalizations continue into 2023,” the BSP said.

The central bank noted that growth prospects for 2023 remain “soft” as risks to the external outlook are likely to persist.

“The challenge of dealing with the COVID-19 crisis legacies, the Ukraine-Russia war, as well as global financial tightening continue to dampen prospects for the country’s external sector next year,” the BSP said.

“The BSP will continue to monitor closely emerging external sector developments and risks and how these may impact the BSP’s fulfillment of its price and financial stability objectives,” it added. — K.B. Ta-asan

Long-term thinking, infrastructure to drive growth of digital economy — IDC

STOCK PHOTO | Image by Igor Ovsyannykov from Pixabay

Enterprises have to think long-term to drive the digital economy, according to Sudev Bangah, managing director of IDC (International Data Corporation) ASEAN, a market intelligence provider to technology vendors and investors.

“If enterprises are looking long-term, then growth in the digital economy will also be long-term,” said Mr. Bangah in a June 15 media briefing.

Based on IDC’s 2022 Future Enterprise Resiliency Survey, more than half (51.90%) of digital initiatives among ASEAN organizations are tied to enterprise strategy, but with a short-term focus.

“While they talk about resiliency and agility — they are also looking at returns in business today,” he said. “We hope this will change, because this would be the driver into the digital economy.”

In the APEC (Asia-Pacific Economic Cooperation), of which the Philippines is a member, small- and medium-sized enterprises (SMEs) account for over 97% of all businesses, and up to 60% of the share of the Gross Domestic Product (GDP) of APEC economies.

IT (information technology) spending among ASEAN SMEs is anticipated to grow at a 7.4% compound annual growth rate (CAGR) through 2025, per IDC. IT spending in the ASEAN, meanwhile, is expected to grow at 6.3% CAGR through 2025.

Mr. Bangah said that 86% of ASEAN SMEs have accelerated their digitalization efforts because of the coronavirus disease 2019 (COVID-19) pandemic.

“We find this very encouraging in terms of the digital economy, because they’re an integral cog of it,” he added.

The Philippines aims to improve the country’s readiness in the digital economy through the CHIP (Connect, Harness, Innovate, and Protect) Framework.

CHIP focuses on improving digital infrastructure and connecting; initiating capacity building to upskill Filipinos; undertaking key modernization projects; and mitigating digital risks and threats on cybersecurity and privacy.

According to Mr. Bangah, e-government platforms need to have strong key performance indicators from productivity and user standpoints, such as cutting down applications by three days, or reducing registration time by 70%.

He pointed out that even if a platform has 24 million users, that number doesn’t necessarily translate to how many are trained to use the digital tools.

And while digitalization is a focus in Southeast Asia, he said that governments are still contending with “other problems.”

“In Indonesia and the Philippines, which are huge geographical places that need a lot of infrastructure development, the fundamentals are still being built,” Mr. Bangah said. “Why is the budget for connectivity so low? That’s because the government has other challenges.” — Patricia B. Mirasol

Philippines sees wider current account deficits as global risks build 

REUTERS

The Philippine central bank said on Friday it expects the country’s current account (C/A)  balance to register wider deficits in 2022 and 2023 than previously projected, taking into account the challenges facing the global economy.

The Bangko Sentral ng Pilipinas (BSP) has revised its balance of payments (BoP) projections, with the current account deficit now seen hitting $19.1 billion, or 4.6% of the gross domestic product in 2022.

That compares with the March forecast of a $16.3 billion deficit for this year, or 3.8% of gross domestic product (GDP). 

The BSP said in a statement the revisions to BOP projections took into account the build-up in external risks, ongoing global monetary policy tightening and lingering coronavirus disease 2019 (COVID-19) challenges.

In particular, the BSP cited the downgraded global growth outlook amid the Ukraine-Russia conflict and its impact on commodity prices, the slowdown in China, and the effect on capital flows on central bank policy tightening.

For 2023, the current account deficit is expected to reach $20.5 billion, or 4.4% of GDP, wider than the previous projection of $17.1 billion, or 3.7% of GDP.

With the wider current-account deficit forecast for 2022, the Philippines’ BoP is expected to yield a deficit of $6.3 billion this year (1.5% of GDP) versus the March projection of $4.3 billion (1.0% of GDP).

The BoP deficit forecast for 2023 has been kept at $2.6 billion (0.6% of GDP).

Money sent by Filipinos abroad, a crucial financial flow supporting the Philippine economy, is still projected to increase 4% this year and in 2023, the BSP said, citing base effects that are expected to fade and the recovery of partner economies to pre-pandemic levels. 

The country’s gross international reserves, however, are forecast to hit $105 billion by end-2022 and $106 billion by end-2023, lower than the March projections of $108 billion and $109 billion, respectively. — Reuters

Best gifts to spoil your super dads

Father’s Day is right around the corner! Surely, you ought to think of something that will put a smile on your old man’s face. Whether it is simple or grand, the thought of celebrating with the important men in your life will mean the world to them. Surprise your daddy, dad, papa, tatay, or itay this Father’s Day and get him the best present that will blow his socks off with these smart gift ideas from Wilcon Depot:

Power Tools

Nobody appreciates tools as gifts more than men. They find satisfaction in fixing and building home projects using the tools they own. Complete your grandpa or daddy’s tool collection with these high-quality power tools from Hills. These tools help divide work time in half, provide quality precision and efficiency, and guarantee better safety with its modern features and ergonomic handles for better grip.

Tool Storage and Organizers

No matter the age, profession, or hobby, tools are one of men’s best friends. They are fond of collecting essential tools that can be used for fixing the house, appliances, or even the car. Get them something to keep their tools organized with Truper toolboxes. These come in different sizes and are built with compartments and dividers to be more efficient to use.Of course, a handy storage is also a must to keep things in one place. Ezweep carries a foldable trolley and wheels with built-in handles for convenient keeping and better portability.

Grillers 

If your dad loves backyard cookouts more than anyone else at home, get the right grill for him. Suncrust offers a variety of burner gas and charcoal grills ranging from 3 to 6 burners that will allow him to cook simultaneously. He can also enjoy his top-notch griller outdoors hassle-free since it comes with a storage and wheels making it easier to transport. 

Office Chairs

Aside from being builder daddy, men also love having their own private desk or space. It gives them room to relax and have time for themselves. Get your busy father a nice, cozy office chair from Heim. These chairs are designed with ergonomic shapes to fit the back perfectly.

Office Tables

Another perfect gift for busy, working dads are office tables. It is a practical furniture that can be greatly used on a daily basis. Find the perfect office table with built-in cabinets from Heim. These are designed with a sleek wood finish that can suit his home office’s visual.

Wall Decors

Wall decors are one of the most universal presents anyone can really appreciate, even your strong, manly dads! Bring life to your father’s personal space with Heim decors. You can opt for stylish clocks, chic paintings, wall art, and many more!

Shelves

These shelves from Heim can help keep your dad’s working space clutter-free and organized. He can also use this to display some of his favorite books or prized collections and allow him to enjoy his space even more.

Shower with Heater

Get your busy dad the relaxation he deserves with Ariston water heaters with built-in showerhead. This will provide him the hot, calming shower he needs after a long tiring day at work.

Portable Air Purifier

If your dad travels a lot, this gift is the one for him! This portable air purifier will help keep his personal space fresh and clean. This air purifier emits negative ions that can protect him from airborne viruses, pollutants, and bacteria.

Coffee makers

Coffee is always a must, especially if your dad is going to have a busy day. Serve him a freshly made coffee with a portable coffee maker. This press-on device will surely offer him a good head start in the morning while allowing him to go to work on time!

Sofa

If there’s one thing that every dad wants no matter the day and time, it’s a nice, cozy sofa where he can sit, relax, and even watch his favorite TV shows. Find the perfect sofa for your dad from Nobizzi. They offer a wide variety of sofa ranging in different sizes, designs, and level of comfortability, perfect for your dad’s me-time.

Automotive Accessories and Car care

When it comes to car styling and maintenance, dads are definitely a reliable go-to person. They know from the most basic information such as good cleaning dusters to the most technical ones like keeping cars in great shape and sound. Get your dad some top-quality handy tools and cleaners from Elite Auto Care. They offer a great selection of car accessories and tools, ideal for the car care he deserves.

Celebrate Father’s Day with your awesome dads and get the perfect present for him, exclusively at Wilcon Depot.

Wilcon E-GC

If you’re looking for a great way to spend Father’s Day with your favorite Man, give him an excellent shopping experience with the Wilcon Electronic Gift Card (EGC). It comes in two denominations, P500 and P1,000, allowing you two a fun bonding time while shopping!

Surprise your super dad this Father’s Day and get them a thoughtful gift that he will surely appreciate from Wilcon Depot. Shop now for your home improvement and building needs at any Wilcon Depot and Wilcon Home Essentials store nationwide. Visit any of their 76 stores nationwide and explore the limitless product selections that Wilcon offers. 

Wilcon Depot has been serving the Filipino homeowners and builders nationwide with high-quality home building and improvement needs and excellent customer experience over the years now. Celebrate 45 years of building big ideas with Wilcon Depot and explore their limitless product selections ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

Adhering to health and safety protocols to fight against COVID-19, Wilcon continuously implements necessary precautionary measures inside all of its stores to ensure their employees and valued customers’ safety, health, and well-being a priority.

You can also browse their Digital Catalogue and shop conveniently while at home through your personal shopper with the Browse, Call, and Collect / Deliver service. BROWSE the items you want to purchase at shop.wilcon.com.ph and www.wilcon.com.ph, CALL/Viber/text the Wilcon branch of your choice, and schedule a COLLECT/DELIVER. For the list of participating stores with their pick-up and delivery contact details, click this link: www.wilcon.com.ph/content/328-bcc-branches.

Another shopping alternative is the Wilcon Virtual Tour. An online shopping option wherein customers can contact the nearest Wilcon store via Facebook Messenger App. Customers can contact the nearest stores, and the Wilcon team will take you on a virtual tour where you can explore the available products inside their physical stores.

Wilcon also provides contactless payment options to its customers like bank transfers, GCash, PayMaya, InstaPay, PesoNet, WeChat, and Alipay for customers’ convenience.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram, and subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

 

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

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Asia Pacific ‘strong target’ for NFTs, Web 3.0 platforms — ad exec 

PIXABAY

Web 3.0, the “upgraded” Internet characterized by decentralization and the increased use of artificial intelligence (AI), will “change the contact points between brands and customers,” according to an advertising and public relations executive. 

“We won’t have a meaningful space [with our clients] if we don’t enter into these systems,” said Alberto Canteli, Havas Group chief executive officer and chairman for the Nordics, CEE (Central and Eastern Europe), Middle East, Southeast Asia, Korea, and Japan. “My personal bet is that, in the coming three to five years, Web 3.0 will make us go through the strongest revolution we have ever seen.”  

Fields such as robotics and AI, Mr. Canteli told BusinessWorld in a Zoom call, will move more interactions into the virtual world. Members of Mr. Canteli’s staff are obliged to have Oculus virtual reality headsets to help them understand how Web 3.0 applications work.  

Havas Group, a global communications group, launched Metaverse in Havas, a unit for brands that want to enter the metaverse, early this year; and Havas Blockchain, which offers training and coaching for firms operating in the blockchain ecosystem, in 2018. 

The Group’s clients typically want to mint their own non-fungible tokens (NFTs), or launch a new platform. 

The Asia Pacific region is “a very strong target” for growth, according to Mr. Canteli.

“We have been winning very important accounts in Korea, the Philippines, and Singapore,” he said, declining to give specifics. “We are in a strong business momentum, and are onboarding big, important, new accounts.”  

According to Mr. Canteli, talent retention is the biggest challenge amid digital transformation. 

“Companies have to conquer the hearts of young people” so they will want to stay, he said. “Salary is an option, but it’s not the key one,” Mr. Canteli added. “It’s [also about] being a company that offers flexibility, continuous training, gender parity, respect.” — Patricia B. Mirasol

US envoy to China expects ‘zero COVID’ policy to persist into 2023

REUTERS

WASHINGTON — The United States’ ambassador to China, Nicholas Burns, said on Thursday he expects Beijing’s “zero COVID” policy to persist into early 2023, and that US businesses were reluctant to invest in the country until restrictions ease. 

The re-emergence of infections in China’s capital Beijing has raised new concerns about the outlook for the world’s second largest economy, which had recently emerged from a long lockdown that shook global supply chains in its most populous city and commercial hub, Shanghai. 

“I think we’re going to have to live with this for a long time,” Mr. Burns told an online Brookings Institution event. 

“My own assumption is that we’ll see the continuation of ‘zero COVID’ probably into the beginning months of 2023. That’s what the Chinese government is signaling,” Mr. Burns said, referring to China’s policy of seeking to stamp out each cluster of new cases, often with strict lockdowns and mass testing. 

“I think there’s a hesitancy to invest in future obligations until they can see the end of this,” Mr. Burns said of US companies. 

Analysts say the Chinese government’s official GDP (gross domestic product) growth target of around 5.5% for this year will be hard to achieve without doing away with the strategy. 

Mr. Burns criticized Beijing for censoring oChinese social media Secretary of State Antony Blinken’s May speech on US policy toward China, in which he said Washington expected Beijing to adhere to international rules. 

“We put the speech on Weibo, and WeChat. And it was censored in about two and a half hours. Just taken away,” Mr. Burns said, adding that the Embassy reposted it days later and it was again removed. 

Mr. Burns also said some assessments within China’s government that the United States is in decline and is therefore becoming more aggressive toward China was not accurate and an “excuse.” 

“I think what’s changed is the newly aggressive behavior of the Chinese government … over the last five to 10 years. And you’ve seen a counter reaction to that,” he said. — Michael Martina/Reuters

The M pays tribute to cartoonist and National Artist Larry Alcala

At the height of his career, Larry Alcala was part of every Filipino’s life. Picture a day in the life in the Philippines: the bright pops of color brought on by passing jeeps and tricycles on Manila’s busy streets, the chitter-chatter of neighborhood gossips outside their houses, children climbing trees and playing wherever they can, and the warmth of the tropical sun shining down on all of this. Of all the Filipino artists who worked with these subjects, perhaps none was more prodigious or influential for generations to come than Mr. Alcala. The common and endearing subjects and scenes portrayed by Mr. Alcala is a fitting celebration and offering for National Heritage Month, with its theme “PAMANANG LOKAL: Binhi ng Kulturang Pilipino.”

Larry Alcala: Slices of Life, Wit, and Humor opened at the SMX Convention Center Aura in Bonifacio Global City, Taguig last May 31. The exhibition featured a collection of archival reproduction of Mr. Alcala’s works alongside works in drawing, print, and digital media of selected artists influenced by Mr. Alcala, including members of the organization Ang Illustrador ng Kabataan (INK), which thrives to this day. The exhibition received curatorial guidance from visual communications educator and award-winning illustrator Professor Ruben “Totet” de Jesus of the University of the Philippines Diliman College of Fine Arts.

In the 2018 essay for the occasion of Mr. Alcala’s conferment to the Order of National Artists of the Philippines, Mr. de Jesus wrote that “Filipinos from all levels of society can appreciate Alcala’s art. His galleries are the dailies. There is mastery in his simplicity. There are messages in his images. Most of all, every Filipino is part of his family.”

The exhibition at the SMX Aura was complemented by the M’s education and public programs from June to July: an M Collab participatory project, inviting 18- to 25-year-old participants to share “à la Alcala” digital art contributions online. M Art Inspires (online conversation) featured insights and stories from Prof. de Jesus, visual artist-illustrator Aldy Aguirre, and writer-speaker Carl Javier. At the end of June, we invite young artists to join our M Online Studio Studies with a storytelling through comics and illustration workshop with visual artist-cartoonist Manix Abrera.

Larry Alcala: Slices of Life, Wit, and Humor was presented by the Metropolitan Museum of Manila and Filipino Heritage Festival, Inc., with support from the National Commission for Culture and the Arts, in partnership with SM and venue partner SMX Convention Center Aura. The exhibition was also made possible with the support from the following partners: BusinessWorld, DDB Group Philippines, Security Bank, and The Manila Times.

For more information, e-mail us at info@metmuseum.ph.

 

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

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