China’s 2021 GDP growth at decade high though momentum cooling

January 17, 2022 | 4:18 pm

BEIJING — China’s economy rebounded in 2021 with its best growth in a decade helped by robust exports but there are signs momentum is slowing on weakening consumption and a property downturn, pointing to the need for more policy support.

Growth in the fourth quarter hit a one-and-a-half-year low, government data showed on Monday shortly after the central bank moved to prop up the economy with a cut to a key lending rate for the first time since early 2020.

The world’s second-largest economy is struggling with a rapidly cooling property sector, as well as sporadic small-scale coronavirus disease 2019 (COVID-19) outbreaks that could deal a blow to its factories and supply chains.

Several Chinese cities went on high alert ahead of the Lunar New Year holiday travel season, as the Omicron variant reached more areas including the capital Beijing.

The economy grew 8.1% last year — its best expansion since 2011 — and faster than a forecast 8.0%. The pace was well above a government target of “above 6%” and 2020’s revised growth of 2.2%. The economy recorded its weakest growth in 44 years in 2020 but staged a faster recovery than other major economies.

Gross domestic product grew 4.0% in the final quarter, National Bureau of Statistics (NBS) data showed, faster than expected but still its weakest pace since the second quarter of 2020. Growth was 4.9% in the third quarter.

“At present, the downward pressure on China’s economy is still relatively big, and growth of residents’ employment and income is restricted,” Ning Jizhe, head of the NBS, told a news conference.

On a quarter-on-quarter basis, GDP rose 1.6% in October–December, compared with expectations for a 1.1% rise and a revised 0.7% gain in the previous quarter.

China’s economy got off to a strong start in 2021 but economists expect growth to slow in the coming months.

The central bank unexpectedly cut the borrowing costs of its medium-term loans for the first time since April 2020, leading some analysts to expect more policy easing this year to guard against developers’ mounting risk of defaults.

The People’s Bank of China said it was lowering the interest rate on 700 billion yuan (5,645.5 PHP billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points to 2.85%. It also cut the 7-day reverse repo rate.

“Economic momentum remains weak amid repeated virus outbreaks and a struggling property sector. As such, we anticipate another 20 bps of cuts to PBOC policy rates during the first half of this year,” said analysts at Capital Economics, in a note.

But Nomura said in a note the space left for future rate cuts this year was small. “We expect another 10 bp rate cut before mid-2022.”

Global share markets were choppy on Monday and benchmark Dalian and Singapore iron ore futures fell after signs of continuing economic weakness in top steel producer China.

Adding to another long-term concern for the economy, mainland China’s birth rate dropped to a record low of 7.52 per 1,000 people in 2021, NBS data also showed on Monday, extending a downward trend that led Beijing last year to begin allowing couples to have up to three children.

PROPERTY, RETAIL SALES SLOW
China’s property market has slowed in recent months as regulators stepped up a campaign to cut high rates of borrowing, triggering defaults at some heavily indebted companies.

Property investment dropped 13.9% in December from a year earlier, falling at the fastest pace since early 2020, according to Reuters calculations based on official data. Investment grew 4.4% in 2021, the slowest since 2016.

Weak consumption data also clouded the outlook, with retail sales in December missing expectations with only a 1.7% increase from a year earlier, the slowest pace since August 2020.

“The biggest challenge this year for policymakers is how to stabilize the economy at a 5–5.5% range against the backdrop of dynamic zero-COVID policy,” said Nie Wen, chief economist at Hwabao Trust in Shanghai.

A bright spot was industrial output, up an annual 4.3% in December, picking up from a 3.8% increase in November, and better than a 3.6% increase in a Reuters poll.

China’s refinery output hit a new record in 2021, as did aluminum and coal production.

Fixed asset investment rose 4.9% in 2021, compared with the 4.8% increase tipped by analysts and 5.2% in the first 11 months of the year.

Booming shipments to coronavirus-hit economies overseas were a key boost to China’s growth last year, with net exports accounting for more than a quarter of GDP growth in Q4 and the country logging its biggest trade surplus in 2021 since records started in 1950.

The outsized role that net exports played in last year’s GDP growth also underscored the relative weakness in other drivers. By contrast, net exports were a drag on overall growth in 2018, when the economy relied more on consumption and investment.

However, the support from export growth may not last. It has been slowing as an overseas surge in demand for goods eases and high costs pressure exporters. — Kevin Yao and Gabriel Crossley/Reuters

Japan weighs state of quasi-emergency for Tokyo, environs — broadcaster

January 17, 2022 | 3:33 pm

Japan-face- mask — PEOPLE wear face masks at Shinagawa station during the rush hour in Tokyo, Japan, April 20, 2020. — REUTERS

TOKYO — Japan’s government is discussing whether to impose a quasi-state of emergency in the capital, Tokyo, and surrounding areas this week to contain a surge in coronavirus disease 2019 (COVID-19) infections, broadcaster FNN said on Monday.

The highly infectious Omicron variant is driving a resurgence in coronavirus cases, which are hovering near record levels, after new infections exceeded 25,000 nationwide in the past two days.

Last week, Tokyo Governor Yuriko Koike said the capital would request measures such as a quasi-emergency if the use of beds allocated for COVID-19 patients climbed to 20%. On Sunday, the figure was 19.3%.

The measures being considered by the government will cover nine prefectures in addition to Tokyo, FNN reported.

The move would follow curbs this month in three regions hosting US military facilities, after it appeared that base outbreaks of Omicron spilled into surrounding communities. The measures include shorter opening hours for restaurants and bars.

However, the effectiveness of emergency declarations in changing people’s behavior has waned after Japan repeatedly deployed the measure throughout the pandemic, said public health expert Kenji Shibuya.

“Omicron is a very important test case for any community,” said Mr. Shibuya, who coordinates vaccine efforts in northern Japan, adding that authorities had to figure out how best to manage the disease while keeping up socio-economic activity.

The essential goal now is to accelerate booster shots, testing, and handing out oral treatments to keep Omicron infections from overwhelming hospitals, he added.

Differing degrees of emergency measures adopted in various parts of Japan last year were lifted at the end of September.

A full declaration of emergency would be sought when occupancy of hospital beds in Tokyo reached half, Koike said last week.

The capital has allocated about 6,900 beds for coronavirus care, of a total of about 128,000 in the region. — Reuters

N.Korea fires two ballistic missiles from Pyongyang airport, S.Korea says

January 17, 2022 | 2:34 pm

SEOUL — North Korea fired two suspected short-range ballistic missiles (SRBM) on Monday from an airport in its capital city of Pyongyang, South Korea’s military reported, the fourth test this month to demonstrate its expanding missile arsenal.

Japan also reported the launch, with chief cabinet secretary Hirokazu Matsuno condemning it as a threat to peace and security.

In less than two weeks, nuclear-armed North Korea has conducted three other missile tests, an unusually rapid series of launches. It said two of them involved single “hypersonic missiles” capable of high speed and maneuvering after launch, while a test on Friday involved a pair of short-range ballistic missiles fired from train cars.

Monday’s launch appeared to involve two SRBMs fired east from Sunan Airfield in Pyongyang, South Korea’s Joint Chiefs of Staff (JCS) said in a statement.

North Korea used the airport to test fire the Hwasong-12 intermediate-range ballistic missile (IRBM) in 2017, with leader Kim Jong Un in attendance.

The missiles fired on Monday traveled about 380 km to a maximum altitude of 42 km, the JCS said in a statement.

Japanese Defence Minister Nobuo Kishi said the missiles appeared to have landed in the ocean near North Korea’s east coast.

“It is self-evident that the aim of North Korea’s frequent missile launches is to improve their missile technology,” he told reporters.

“The repeated launching of North Korea’s ballistic missiles is a grave problem for the international community, including Japan,” Mr. Kishi added, noting that the launches were a violation of UN Security Council resolutions that ban North Korea from all ballistic missile development.

The US military’s Indo-Pacific Command said it assessed that the launch did not pose an immediate threat to the United States or its allies, but “these missile launches highlight the destabilizing impact of (North Korea’s ) illicit weapons program.”

The pace of testing and the different launch sites suggests that North Korea has enough missiles to feel comfortable expending them on tests, training, and demonstrations, and helps reinforce its deterrent credibility by emphasizing the volume of its missile force, said Mason Richey, a professor at Hankuk University of Foreign Studies in Seoul.

North Korea has not tested its longest-range intercontinental ballistic missiles (ICBMs) or nuclear weapons since 2017, but after denuclearisation talks stalled in 2019, it began unveiling and testing a range of new SRBM designs.

Many of the latest SRBMs, including the hypersonic missiles, appear designed to evade missile defenses. North Korea has also vowed to pursue tactical nuclear weapons, which could allow it to deploy nuclear warheads on SRBMs.

“Every tactical missile launch flaunts how little sanctions have constrained the Kim regime, and how the US … has failed to make North Korea pay a sufficient cost for short-range missile program development,” Mr. Richey said.

‘ISOLATING AND STIFLING’
The latest launches have drawn both condemnation and an appeal for dialogue from a US administration that has imposed new sanctions over North Korean missile launches and is pushing for more.

US President Joseph R. Biden, Jr.’s administration imposed its first new sanctions on Pyongyang on Wednesday, and called on the UN Security Council to blacklist several North Korean individuals and entities. It also repeated calls for North Korea to return to talks aimed at reducing tension and persuading it to surrender its arsenal of nuclear weapons and ballistic missiles.

North Korea has defended the missile tests as its sovereign right to self-defense and accused the United States of intentionally intensifying confrontation with new sanctions.

In a statement before Friday’s missile tests, the North Korean foreign ministry said that although the United States might talk of diplomacy and dialogue, its actions showed it was still engrossed in its policy of “isolating and stifling” North Korea.

South Korea’s national security council held an emergency meeting after Monday’s test, with members stressing that “above all else, it is essential to start dialog as soon as possible in order for the situation on the Korean Peninsula to not become more strained and to restore stability,” the presidential Blue House said in a statement.

The launches came as North Korea, more isolated than ever under self-imposed border closures aimed at preventing a COVID-19 pandemic, appeared to be preparing to open at least some trade across its land border with China.

Chinese brokers said they expect the resumption of regular trade with North Korea soon after a North Korean train pulled into a Chinese border town on Sunday in the first such crossing since anti-coronavirus lockdowns began in 2020.

Zhao Tong, a Beijing-based nuclear policy expert at the Carnegie Endowment for International Peace, said North Korea had few reasons to hold back its missile development.

Leader Kim appeared to have little hope of a breakthrough with the United States, and China’s sympathy for North Korea and antipathy towards the United States could encourage North Korea to think that China was unlikely to support any effort by the international community to censure it for the tests, he added.

“North Korea may think this is a safe time to advance its missile development,” Mr. Zhao said.

Last week, China criticized the new US sanctions but also called on all sides to act prudently and engage in dialogue to reduce tensions.

China says it enforces existing international sanctions on North Korea, but has joined with Russia to urge the UN Security Council to ease the measures, saying they hurt the civilian population. — Josh Smith/Reuters

Shortage of COVID-19 testing kits ‘not unique’ to Australia, PM says

January 17, 2022 | 1:47 pm

SYDNEY — Australian Prime Minister Scott Morrison on Monday said the shortages of at-home antigen tests were “not unique” to the country as authorities deal with a runaway Omicron outbreak that has driven up hospitalization rates and strain testing systems.

Australia is facing a shortage of at-home rapid antigen test kits after asymptomatic close contacts were told to bypass government-funded testing hubs, where high volumes delayed results by several days, and take their own tests.

“The rapid antigen tests are in short supply all around the world. This is not something that is unique to Australia going through it,” Mr. Morrison told radio station 2GB on Monday. “It’s part of dealing with Omicron. Omicron has disrupted everything.”

The country’s competition regulator on Monday flagged “significant concerns” about reports of price gouging of testing kits amid reports of stockpiling and called inflated prices “clearly outrageous.”

After successfully containing the virus earlier in the pandemic, Australia has reported nearly 1.3 million cases over the last two weeks, overwhelming hospitals and testing clinics.

Daily infections on Monday dipped in New South Wales and Victoria, Australia’s most populous states, amid expectations the Omicron wave had neared its peak in the country. But net new hospitalizations remain elevated, with more people admitted than at any other time in the pandemic.

A total of 52,970 cases were reported between New South Wales, Victoria, and Tasmania, by late morning with other states due to report later. National daily numbers had touched a record 150,000 last Thursday but have been steadily falling since then.

The outbreak has also threatened to slow down Australia’s economic recovery with the growing toll of workers out sick or ordered to isolate leading to staff shortages and disrupting business supply chains.

“There is little doubt the rapid spread of Omicron is changing people’s behavior and impacting confidence,” Federal Treasurer Josh Frydenberg wrote in an opinion column in The Australian newspaper, but he hoped the outbreak will peak soon.

So far, Australia has reported around 1.6 million infections and 2,691 deaths since the pandemic began. — Reuters

French parliament approves vaccine pass

January 17, 2022 | 1:21 pm

PARIS — France’s parliament gave final approval on Sunday to the government’s latest measures to tackle coronavirus disease 2019 (COVID-19), including a vaccine pass contested by anti-vaccine protestors.

Lawmakers in the lower house of parliament voted 215 in favor to 58 against, paving the way for the law to enter force in the coming days.

The new law, which had a rough ride through parliament with opposition parties finding some of its provisions too tough, will require people to have a certificate of vaccination to enter public places like restaurants, cafes, cinemas, and long-distance trains.

Currently, unvaccinated people can enter such places with the results of a recent negative COVID-19 test. Nearly 78% of the population is fully vaccinated, according to the Health Ministry on Saturday.

President Emmanuel Macron, who is expected to seek a second term in an April presidential election, told Le Parisien paper this month that he wanted to “piss off” unvaccinated people by making their lives so complicated they would end up getting the COVID vaccine.

Thousands of anti-vaccine protestors demonstrated in Paris and some other cities on Saturday against the law, but their numbers were down sharply from the week before, just after Mr. Macron’s remarks.

France is in the grips of its fifth COVID-19 wave with daily new cases regularly hitting record levels over 300,000. Nonetheless the number of serious cases putting people in ICU wards is much lower than the first wave in March–April 2020. — Reuters

Super-rich thrive as COVID-19 pushes millions into poverty

January 17, 2022 | 1:12 pm

LONDON — The world’s 10 wealthiest people more than doubled their fortunes to $1.5 trillion during the pandemic as poverty rates soared, according to a study released by a charity on Monday ahead of a high-profile World Economic Forum (WEF) event.

Heads of state will join chief executives and other prominent figures this week to discuss the planet’s most pressing issues — from climate change to coronavirus disease 2019 (COVID-19) vaccine inequity — at the WEF’s Davos Agenda 2022 conference.

The online meeting will be a springboard for the WEF’s annual summit, which normally sees the world’s rich and powerful converge on the Swiss mountain resort of Davos each winter, but which has been moved to the summer due to the pandemic.

Here are some figures on global inequality:

Billionaires have seen a record surge in their wealth during the pandemic, according to aid agency Oxfam.
The 10 richest people have boosted their fortunes by $15,000 a second or $1.3 billion a day during the pandemic.
They own more than the world’s poorest 3.1 billion people combined.
A new billionaire has been created every 26 hours since the pandemic began.
More than 160 million people are estimated to have been pushed into poverty during the health crisis.
Inequality between nations is expected to rise for the first time in a generation, and is also growing within countries.
Wealthy nations are rebounding faster. Output in rich countries will likely return to pre-pandemic trends by 2023, but will be down 4% on average in developing countries, according to the World Bank.
In 2023, per capita incomes are likely to remain below 2019 levels in 40 developing countries, the bank says.
Inequality is contributing to the death of at least 21,300 people each day — one person every four seconds, according to Oxfam’s report.
An estimated 5.6 million people in poor countries die each year due to lack of access to healthcare, while hunger kills more than 2.1 million annually, the report said.
The proportion of people with COVID-19 who die from the illness in developing countries has been estimated at roughly double that of rich countries.
Just over 7% of people in low-income countries have received a vaccine dose compared with more than 75% in high-income countries.
The wealthiest 1% of the world emits more than twice as much planet-warming carbon dioxide as the bottom 50%.
If unchecked, climate change could push up to 132 million people into extreme poverty by 2030, according to World Bank estimates.
The pandemic has set back global progress towards gender equality, too. It will take nearly 136 years for women to be on an equal footing with men — up from 99 years pre-pandemic.

Sources: Oxfam, World Bank, McKinsey Global Institute, World Economic Forum

— Emma Batha/Thomson Reuters Foundation

‘Upside down again’: Omicron surge roils US small businesses

January 17, 2022 | 12:32 pm

Copy-of-1171017-Maersk-Evora-Selects_09 — IMAGE VIA THE PORT OF LOS ANGELES

LUBBOCK, Texas — Phillip Howard pointed toward a stack of black ski pants piled atop a counter in his winter sports shop as evidence of the hurdles small business owners still face as the pandemic drags on.

The pants were supposed to arrive by August at Troy’s Ski Lubbock shop in west Texas — well before his five-month hot season of selling that kicks off in October. Instead, they came from China the first week of January, delayed by supply-chain failures.

“Late-arriving product really kills us,” Mr. Howard said this week, noting that several other items had also arrived late, missing his pre-holiday sales season. “I’ve been in this business for almost 20 years, and I’ve never encountered anything like this.”

As the pandemic enters its third year, many small businesses across the United States are besieged on three fronts: deepening supply chain issues; periodic staffing shortages; and fewer customers showing up in some areas, fearing the Omicron spike in coronavirus disease 2019 (COVID-19) cases.

This week the Federal Reserve released its latest collection of anecdotes about the state of the economy from businesses, labor groups, and others nationwide, showing that the fast-spreading Omicron variant was exacerbating difficulties, especially for hiring and inflation.

US retail sales fell 1.9% in December amid the shortage of goods and surging infections, the Commerce Department said on Friday.

Though federal aid and the economy’s overall recovery have kept failure and bankruptcy rates for small businesses far lower than expected, day-to-day management has become a challenge. Census surveys conducted since early in the pandemic show concerns steadily shifting from dwindling cash reserves and a hunt for financing to challenges with supply chains and rising costs.

“I’m placing orders for next year now, and we’re looking at double-digit inflation,” Mr. Howard said. “It’s probably 10% across the board for almost everything that I’m having to order.”

‘UPSIDE DOWN AGAIN’

Staffing shortages forced Gage & Tollner, a 19th-century chophouse in Brooklyn, New York, to close for five days in late December.

Co-owner St. John Frizell estimates about 30% of the nearly 60 people working at the restaurant have had COVID-19 in the last month. Owners wanted staff to have a negative coronavirus test before returning to work, but that often meant employees spent hours waiting in lines to get swabbed.

“We just need tests, lots and lots of tests,” he said.

He welcomed the proposal this month by Governor Kathy Hochul that New York should permanently allow restaurants and bars to sell cocktails “to go,” an emergency provision first brought in when establishments were forbidden from seating customers inside in 2020.

Just down the road at Junior’s Restaurant and Bakery — renowned for its cheesecakes — owner Alan Rosen said he had suffered with supply chain issues and staffing shortages. He has sometimes had to rope off entire sections of his restaurants when there were not enough servers to go around.

“Our costs of goods are through the roof, there’s inflationary pressure, supply chains are a mess,” Mr. Rosen said.

Amy Glosser shifted BYKlyn, her cycling studio, to new outdoor premises in the summer of 2020 to keep the Brooklyn business afloat. But Glosser said she and her two dozen employees agreed they could not do another winter outdoors, so she moved the business to a temporary indoor space on Dec. 1.

Then the Omicron variant hit New York City hard, and about 40% of the gym’s 200 members said they wanted to cancel or pause their memberships.

“People are nervous to come inside and sweat together,” Ms. Glosser said.

Randy Peers, president of the Brooklyn Chamber of Commerce, said he’s worried about small businesses being evicted after New York state’s pandemic-era evictions moratorium ended on Saturday, noting that about a third of businesses in the Chamber owe back rent.

Peers said optimism grew over the summer and early fall, with the city’s high vaccination rates and many restrictions lifted. That lasted through Thanksgiving.

“Then Omicron just threw everything upside down again,” he said.

‘HOLDING OUR BREATH’

Small businesses in states where COVID restrictions have been far looser than New York say customers are still coming out, but other pandemic issues continue to plague them.

Mark Pectol, who owns four Zesty Zzeeks Pizza & Wings shops in the Phoenix metro area, said he never dreamed his biggest nightmare as a small business owner would come in the form of supply chain issues.

“I don’t know if I’m going to have pizza boxes at the end of the week,” he said. “If I don’t have pizza boxes — I’m going out of business. We’re just holding our breath.”

Even if he can get pizza boxes, Mr. Pectol said he’s already getting warnings about a possible flour shortage next.

That would be cruelly ironic. In the first year of the pandemic, when grocery stores could not keep flour on shelves, Mr. Pectol said he could still buy it in bulk from his supplier. While his stores were closed under pandemic restrictions, he kept money coming in by selling 140,000 pounds of flour to the public.

Now, the fickleness of the supply chain failures may be turning on him.

“My distributor told me they have flour for me for a month. But this week, they didn’t get any flour in at all,” he said. “If I can’t get it from a big distributor, where will I get it?” — Brad Brooks and Jonathan Allen/Reuters

[B-SIDE Podcast] PHL digital economy: $40 billion by 2025, despite Omicron

January 17, 2022 | 11:37 am

The Omicron surge doesn’t dampen expectations that the Philippine internet economy will hit $40 billion in terms of gross merchandise value (GMV) by 2025.

“We don’t look at our estimates from an event point of view because we can’t forecast individual events like Omicron and who knows what’s going to happen next,” said Willy Chang, associate partner at Bain & Company. “It’s based on foundational views.”

In this B-Side episode, Mr. Chang explains the e-Conomy SEA Report 2021 by Google, Temasek, and Bain & Company to BusinessWorld reporter Revin Mikhael D. Ochave.

He identifies “pockets of opportunity” for small and medium enterprises and how they can become part of Southeast Asia’s fastest-growing digital economy: “The headroom for growth is tremendous.”

TAKEAWAYS

E-commerce is driving the growth of the PHL internet economy.

“In terms of the billion gross merchandise value (GMV) in the future, if we look at what’s driving it, most of this growth will actually come from e-commerce. It is one of the biggest sectors not only for the Philippines but also for the region,” Mr. Chang said.

“The Philippines is the fastest-growing market this year between 2020 and 2021, about 93% growth year on year — highest around the region, and primarily driven by two factors, the first being Philippines saw the largest proportion of new users since COVID-19 started. About 20% of all digital consumers, or people who have used at least one service online, have joined since 2020 and into 2021,” Mr. Chang said.

He also mentioned that the estimated GMV can be reached by the Philippines in 2025 due to improving internet access and its large headroom in terms of potential growth.

“[The] Philippines belongs in the category of where online penetration is a little bit behind, and as a result, the headroom for growth is tremendous. If you look at this year’s report, about 68% of internet users consume online services in the Philippines. This is lower than the other markets such as Indonesia and Singapore,” Mr. Chang said.

“If you look at the internet economy today, as well as what is happening in the Philippines, we do see a lot of very fast-growing adoption of digital payments, not only e-wallets like GCash and PayMaya but also Pesonet and Instapay,” he added.

To take advantage of opportunities, SMEs should deepen digital financial services.

“From an SME and from a [digital] platform point of view, I think the first one is continuing to onboard more and more merchants not just on e-commerce but also on food delivery, etc. There is still a lot of room to grow,” Mr. Chang said.

“The second one is deepening into financial services not just accepting payments. But there is also opportunity for merchants to offer things like buy now, pay later. At the same time, once they start adopting digital payments, they have transactions recorded digitally, they build credit assessment data and that will potentially allow them to access digital banking services or digital lending,” he added.

Mr. Chang also added that SMEs can also tap digital tools to help their productivity — not just in marketing but in areas such as accounting, for example.

“[There are] many pockets of opportunity … that will benefit the SMEs and also deepen the relationship between platforms and SMEs,” Mr. Chang said.

As Omicron rages on, not all sectors in the digital economy will flourish. (Winners: e-commerce, food delivery. Losers: ride-hailing, on-demand transportation, online travel.)

Mr. Chang said not all sectors will be able to cope with the COVID-19 pandemic, especially with the Omicron variant, despite the surge in the internet economy and digital adoption.

“We probably expect e-commerce and food delivery to benefit. But ride-hailing, on-demand transportation, as well as online travel will be muted,” Mr. Chang said.

“If we look at some of the enablers, environmental, social, and governance (ESG), sustainability, data regulation, and privacy, I think these are some of the tough policy questions that need to be addressed collectively by digital insurgents themselves: regulators, businesses, merchants, even consumers. Depending on how some of these factors could evolve, they could affect how different sectors will evolve,” he added.

Recorded remotely on Nov. 30, 2021. Produced by Paolo L. Lopez and Sam L. Marcelo.

Philippine election body dismisses petition to bar Marcos from election

January 17, 2022 | 11:26 am

PHILSTAR

MANILA – The Philippines poll commission on Monday threw out a petition seeking to bar the son of the late dictator Ferdinand Marcos from running in this year’s presidential election.The Commission on Election’s (COMELEC) second division dismissed the complaint seeking to cancel Ferdinand Marcos Jr’s candidacy papers, the lawyers in the petition said.The case is just one of several filed with COMELEC seeking to disqualify the late dictator’s son from running in this year’s election. — Reuters

Perfect tile inspirations to match the interior trends of 2022

January 17, 2022 | 9:15 am

When you’re starting to do home makeover plans this year, you have to design with the hottest home interior design trends in mind. If you want a seamless looking style, luxurious hues, bold and intricate patterns, or warm neutral spaces at home, you can achieve the look that complements the 2022 home interior trends with these tile design inspirations and ideas from Wilcon Depot.

Classy plain-looking tiles

The most versatile and top choice for your flooring is plain-looking tiles for an extra minimalist interior. This classic type of tile is ideal for wide space flooring concepts that allow you to style your home and make your space look bigger. It exudes elegance like no other while bringing a light and neat ambiance around your room.

Retro Floral patterned tiles

When talking about extraordinary wall tiles, retro floral patterned tiles are among the top finds for tile designs. When you’re looking for ways to spruce up your bathroom vibe, you can opt for a retro style. The mixture of beautiful vintage-inspired styles, embossed textures, striking colors, as well as intricate shapes and patterns goes harmoniously, creating a stunning statement on your walls.

Wooden finish tiles

Wood-looking tiles are one of the most popular options that are subtle yet can extravagantly add aesthetic value to your home. You can give an elegant look to your space that creates a homier and more organic-looking. It is also perfect for a nature-inspired set up in your home. Add a classic touch to your home with these wood-looking tiles.

Bright-colored tiles

In making your space stand out, you can accentuate it by having bright and vibrant-looking tiles on your walls and floors. These glossy and bright-colored tiles can add a pop of character and make your space attractive to the eyes. Colorful tiles invoke harmony and a happy vibe to your home, but settling for a monotonous color palette will help you style your space and keep it classy as well.

Unique carpet tiles

When you want to have a comfortable workspace at home, you can achieve it using the easy to install carpet tiles that can completely transform your space in only a few hours. These carpet tiles are DIY-friendly and come in different yet unique patterns and colors that you can mix and match. Carpet tiles can add warmth and texture to your home office, and in addition, these tiles are low maintenance and hypo-allergenic.

You can quickly start your home makeover plans with the one-stop shop for all your tiling needs, Wilcon Depot. Shop now at any Wilcon Depot store with 73 store locations nationwide or shop online at Wilcon Online Store by visiting shop.wilcon.com.ph.

Explore the limitless product selections that Wilcon offers, ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Houseware, Outdoor Living, Building Materials, Hardware, Electrical, Appliances, Tools, Automotives, Paints & Sundries, and other DIY items.

To ensure a safe and convenient shopping environment in all Wilcon stores, the company continuously implements safety protocols for the health and well-being of both employees and valued customers.

You can also shop through your Personal Shopper with the Browse, Call, and Collect/Deliver service. 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.

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

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SM: Piloting towards recovery and a sustainable future

January 17, 2022 | 9:15 am

SM multi-mall vaccination drive — SM has supported the vaccination program of various local governments with over 7.8 million doses of the COVID-19 vaccine administered in 71 SM malls around the country.

Concerted efforts from both public and private sectors are pivotal in emerging in a post-pandemic normal

This sentiment is clear for companies like SM Investments Corporation (SM), the country’s leading conglomerate, which has helped bolster the national government’s recovery plan at the onset of the coronavirus disease (COVID-19) through several health and community initiatives.

“We are always committed to serving the community better. We use the synergies across our businesses and mobilize resources using our broad network to provide wide support around the country,” said SM Investments President and Chief Executive Officer Frederic C. DyBuncio.

Helping Drive Vaccinations

At the forefront of broad vaccination and health efforts, SM ordered over 500,000 doses of COVID-19 vaccines for its employees and in support of national needs.

Across the group, about 130,000 SM employees have been vaccinated to date as the company continues to push for enhanced health and protection among its people.

SM offered its facilities as vaccination sites across the country to aid local government units (LGUs) to inoculate their respective communities safely and conveniently. SM Supermalls has supported the vaccination program of various local governments with over 7.8 million doses of the COVID-19 vaccine administered in 71 malls around the country.

For its staunch commitment to the vaccination campaign, the Inter-Agency Task Force for the Management of Emerging Diseases (IATF) gave special recognition to SM for having administered COVID-19 vaccines nationwide.

Reinforcing Resiliency

SM Prime is on the front lines of UN ARISE, a Private Sector Alliance for Disaster Resilient Societies, which calls for a collective effort to incorporate disaster resilience as a core business strategy. It also promotes private-public partnerships to share global best practices in building disaster-resilient cities and communities.

SM Prime allocates 10% of its capital expenditure to integrate disaster-resilient features in its property designs. This has proven successful in enabling it to operate safely during calamities and even serve as a safe haven for communities who are affected.

When Typhoon Odette (Rai) struck, SM malls in Cebu, Iloilo, Cagayan de Oro, Butuan and Puerto Princesa provided temporary shelter to customers and nearby residents by offering free Wi-Fi, charging stations, drinking water, light snacks, overnight parking and help desks ready to serve customers affected by the typhoon.

In times of disasters, SM swiftly mobilizes the immediate distribution of relief goods using its broad footprint and through its foundations. It also provides critical mobility for essential equipment and goods through its logistics firms. It gives shelter and connectivity to those affected by the typhoon in its malls and activates its banks and malls as collection points for donations while keeping open its stores, banks and malls whenever it could to provide essential public service.

SM also quickly reopened essential stores to provide for the immediate needs of the people after the devastating typhoon. It also opened its banks to assist customers’ transactions needs.

Adopting Renewable Energy

“Above and beyond the pandemic, climate change is a serious threat to the planet, and the Philippines is one of the most vulnerable countries. We recognize the part we need to play in addressing our own energy needs sustainably and supporting the development of renewable energy for the country,” Mr. DyBuncio said.

SM Prime Holdings, SM’s property company, announced it aims to increase its use of renewable energy sources to more than 50% across all its business segments in 2022, well ahead of the national goals to be 35% renewable by 2030.

Its diversification of energy suppliers’ program will highlight the company’s use of solar roof decks in its various properties that will support the electricity requirements of its business operations.

BDO has accelerated efforts in sustainable finance.

BDO Unibank recently disclosed plans to raise P5 billion through the issuance of peso-denominated fixed-rate sustainability bonds. This will diversify the bank’s funding sources and finance or refinance eligible assets under its Sustainable Finance Framework. This is the first time the bank will be issuing such bonds to both institutional and retail investors after its US$150-million green bond in 2017 with the International Finance Corporation as the sole investor.

In over a decade of pursuing Sustainable Finance, BDO has financed 2,184 megawatts of the country’s total installed renewable energy capacity.

Sustaining MSMEs

SM continued to support business continuity of MSMEs.

Through its SM StartUp Package (www.smsupermalls.com), SM is offering start-up packages to MSMEs to boost their initial entry into retail markets. These include start-up friendly rental rates and use of kiosks or carts free of charge; marketing assistance to give the brand free exposure in SM online assets and ad spaces inside malls; financial assistance with BDO Unibank; and mentorship from SM experts on operations and marketing. SM Supermalls launched the first batch of MSME shops through the SM StartUp Markets in 13 malls nationwide.

BDO Network Bank is also dedicated to providing MSMEs and the beneficiaries of Overseas Filipinos with businesses access to additional funds. The MSME Loan or Kabuhayan Loan was designed to assist small business owners in need of extra funding to increase their inventory of stocks, purchase business equipment and assets, and pursue plan of expansion.

Building a Sustainable Future

SM promotes sustainable practices through water recycling. In 2020, SM was able to recycle 28.9 million cubic meters of water.

To help protect communities during disasters, SM Prime has constructed 22 rainwater catchments nationwide, helping reduce flooding in communities, particularly those most vulnerable.

With city mobility affected by COVID-19 restrictions, SM also created a bike-friendly network in its integrated lifestyle cities and facilities to meet the growing needs of cyclists going to work, helping lower carbon footprint while promoting health.

Meanwhile, NEO, a part of SM Investments’ equity investments portfolio, was cited as the first company in the world to be certified as EDGE Zero Carbon for all their buildings by the International Finance Corporation. NEO is also the first office portfolio in Southeast Asia to achieve the WELL Health-Safety Seal. Its entire portfolio is certified 5 Stars under BERDE (Building for Ecologically Responsive Design Excellence), the country’s national voluntary green building rating tool.

SM is taking further actions to address climate action. Both SM Investments and SM Prime Holdings signed on as supporters of the Task Force on Climate-related Financial Disclosures (TCFD), an international framework on Environmental, Social and Corporate Governance (ESG) reporting.

SM has also consistently taken the sustainable development agenda as an integral part of its business strategy, sealing its commitment in March 2019 when SM Investments enlisted as a signatory of the United Nations Global Compact.

To show its commitment, SM established a group-wide Sustainability Office to ensure best-in-class standards, drive initiatives and support all the SM businesses to help promote a sustainable brand for everyday Filipino life.

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Holcim Philippines continues innovation, sustainability push to drive biz growth, positive impact

January 17, 2022 | 9:00 am

holcim_blueleaf_coverphoto — Holcim Philippines accomplished a number of sustainability and innovation initiatives in 2021 to raise its business performance and contributions to development such as an agreement to have its cement plants in Luzon run on solar energy.

Leading building solutions provider Holcim Philippines, Inc. aims to build on its remarkable 2021 accomplishments anchored on innovation and sustainability to further drive business performance and support the country’s progress.

Holcim Philippines President and CEO Horia Adrian: “Despite the challenges in 2021, our Company’s commitments remain solid. We pushed on with key initiatives that will contribute to our long-term success and enable us to have a more positive impact on the country’s development. We are excited to continue our innovation and sustainability programs in line with our mission to help build progress in the Philippines.”

The Company had several notable achievements to make its operations more respectful of the environment and beneficial to society. In May, Holcim Philippines published its first Integrated Annual Report which follows the sustainability disclosure standards of the Global Reporting Initiative.

In July, Holcim Philippines signed an agreement with Sinoma CBMIPH Construction Corp. to upgrade its cement manufacturing facilities in La Union and Misamis Oriental to reduce the fuel consumption, raw materials and carbon footprint of operations.

Furthermore, Holcim Philippines appointed in August Zoe Sibala, former Vice President of Strategy to Senior Vice President of Sustainability, and expanded the role of Richard Cruz, Vice President of Health, Safety, and Security, to include the Environment portfolio.

In September, the Company completed storage and processing facilities at its Bulacan plant to increase usage of alternative fuels and raw materials in cement production through its waste management arm Geocycle. It is also participating in the rehabilitation of the Manila Bay through the Circular Explorer, a solar-powered catamaran sent by the Holcim Group that can collect up to four tons of plastic litter daily and advance marine research.

Finally, the Company signed in November a 20-year power purchase agreement with Blueleaf Energy, a leading renewable energy company, to deliver solar power to its Bulacan and La Union plants. This will make Holcim Philippines’s cement plants the first in the country to be powered by solar energy.

Aside from these, the Company is leaning on digitalization to raise its sustainability performance. The Company is participating in the Holcim Group’s Plants of Tomorrow Initiative and incorporating data analytics in logistics to make operations more efficient and further reduce its environmental footprint.

Holcim Philippines also took steps to have a more positive social impact particularly on the affordable housing front. It forged closer ties with shelter organization Habitat for Humanity, with a cement supply partnership for housing projects in Metro Manila and Negros Occidental and a number of virtual forums on addressing the country’s housing gap. The Company also continued to support the United Nations Human Settlement Programme’s housing project in Marawi and assisted the GMA Kapuso Foundation in building education facilities for indigenous communities in Cagayan.

On the commercial side, Holcim Philippines ramped up product innovations with the launch of new building solutions for specific building applications. In January, it unveiled Holcim Multifix, an easy-to-use and multipurpose mortar product that can help contractors and masons improve the quality of walls, floors, and tile installation in their building projects. The Company followed this up with in March with Holcim Aqua X, the country’s first ever water-repellent cement that protect structures against excess moisture. It capped the year off with the launch in November of Holcim ECOPlanet, its most environment-friendly product with more than 30% lower carbon footprint than other ordinary Portland cement.

ECOPlanet is a global range of green cement developed by the Holcim Group. Holcim Philippines will offer ECOPlanet as a general purpose blended cement ideal for structural applications that delivers equal to superior construction performance while lowering the carbon footprint of buildings.

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