Pentagon chief raises concern about Beijing’s ‘dangerous’ behavior with Chinese counterpart

November 22, 2022 | 5:10 pm

PHNOM PENH — US Defense Secretary Lloyd Austin on Tuesday emphasized the need to improve crisis communications during a meeting with his Chinese counterpart while raising concern about “increasingly dangerous” behavior by Chinese military aircraft.

The roughly 90-minute meeting in Cambodia, described as “productive and professional” by a US official, was the pair’s first since a visit to Taiwan by US House Speaker Nancy Pelosi in August enraged China, which regards the island as its territory.

In his second face-to-face meeting with Chinese Defense Minister General Wei Fenghe this year, Mr. Austin discussed the importance of “substantive dialogue on reducing strategic risk and enhancing operational safety,” Pentagon spokesman Brigadier General Pat Ryder said in a statement after the meeting.

“He (Austin) raised concerns about the increasingly dangerous behavior demonstrated by PLA (China’s People’s Liberation Army) aircraft in the Indo-Pacific region that increases the risk of an accident,” Mr. Ryder said.

In June, a Chinese fighter aircraft dangerously intercepted an Australian military surveillance plane in the South China Sea region in May, Australia’s defense department said.

Australia has said that the Chinese jet flew very close in front of the RAAF aircraft and released a “bundle of chaff” containing small pieces of aluminum that were ingested into the Australian aircraft’s engine. Tuesday’s meeting of the defense ministers took place on the sidelines of an ASEAN gathering in Siem Reap, Cambodia.

After Ms. Pelosi’s visit, China announced it was halting dialogue with the United States in a number of areas, including between theater-level military commanders.

A senior US defence official, speaking on condition of anonymity, said Mr. Austin and Mr. Wei had a “lengthy” discussion about Taiwan and also talked about restarting in the coming months some of the mechanisms that had been canceled after Ms. Pelosi’s visit.

“There’s an expectation that there will be some restart of some of the mechanisms that have been frozen for the last six months,” the official said.

Tuesday’s talks come after a three-hour meeting between US President Joseph R. Biden and Chinese President Xi Jinping last week on the sidelines of the G20 summit in Indonesia, aimed at preventing strained ties from spilling into a new Cold War.

Despite tensions between the United States and China, US military officials have long sought to maintain open lines of communication with their Chinese counterparts to mitigate the risk of potential flare-ups or deal with any accidents.

After Mr. Austin and Mr. Wei’s first meeting this year in Singapore in June, the Pentagon chief said his talks with his Chinese counterpart were an important step in efforts to develop those means of communication.

Relations between China and the United States have been tense, with friction between the world’s two largest economies over everything from Taiwan and China’s human rights record to its military activity in the South China Sea.

Ms. Pelosi’s Taiwan trip infuriated China, which saw it as a US attempt to interfere in its internal affairs. China subsequently launched military drills near the island.

The United States has no formal diplomatic relations with Taiwan but is bound by law to provide the island with the means to defend itself. — Reuters

Indonesian rescue workers race to find victims of deadly quake

November 22, 2022 | 5:09 pm

CIANJUR, Indonesia — Indonesian rescue workers were racing on Tuesday to reach people still trapped in rubble a day after an earthquake devastated a West Java town, killing at least 162 people and injuring hundreds, as officials warned the death toll may rise.

The epicenter of the shallow 5.6-magnitude quake hit on land close to the town of Cianjur in a mountainous area of Indonesia’s most populous province. The tremor on Monday afternoon prompted panicked residents to flee onto the streets as buildings collapsed.

Many of the fatalities were caused by falling buildings, the head of Indonesia’s meteorology and geophysics agency, Dwikorita Karnawati, said in a statement.

Overnight a hospital parking lot in Cianjur was inundated with victims, some treated in makeshift tents, others hooked up to intravenous drips on the pavement, while medical workers stitched up patients under the light of torches.

“Everything collapsed beneath me and I was crushed beneath this child,” Cucu, a 48-year-old resident, told Reuters, from the crowded hospital parking area.

“Two of my kids survived, I dug them up … Two others I brought here, and one is still missing,” she said through tears.

On Tuesday morning, hundreds of police officers had been deployed to assist in rescue efforts, Dedi Prasetyo, national police spokesperson told the Antara state news agency.

“Today’s main task order for personnel is to focus on evacuating victims,” he said.

At least 162 people were killed in Monday’s quake, many of them children, with more than 300 injured, West Java Governor Ridwan Kamil said, warning some residents remained trapped in isolated places.

Authorities were operating “under the assumption that the number of injured and death will rise with time,” he said.

“The challenge is the affected area is spread out … On top of that, the roads in these villages are damaged,” Henri Alfiandi, head of National Search and Rescue Agency (Basarnas), told a news conference.

“Most of the casualties are children, because at 1 p.m. they were still at school,” he said of the time the quake hit.

Basarnas confirmed that 162 people had died and more than 13,000 people had been evacuated.

The national disaster agency (BNPB) said 62 people were killed, and it was yet to verify the 100 additional victims.

Cianjur police chief told Metro TV news channel that 20 people had been evacuated from Cugenang so far, most of whom had died, with residents still reporting missing family members.

The area was hit by a landslide triggered by the quake that had blocked access to the area.

“At least six of my relatives are still unaccounted for, three adults and three children,” said Zainuddin, a local resident from Cugenang.

“If it was just an earthquake only the houses would collapse, but this is worse because of the landslide. In this residential area there were eight houses, all of the which were buried and swept away.”

Rescue efforts were complicated by electricity outages in some areas, and 117 aftershocks.

The earthquake, which struck at a depth of just 10 km (6.2 miles) and was felt strongly in the capital Jakarta about 75 km away, damaged at least 2,200 homes and displaced more than 5,000 people, the BNPB said.

Straddling the so-called “Ring of Fire”, a highly seismically active zone where different plates on the earth’s crust meet, Indonesia has a history of devastating earthquakes. — Reuters

South Korea scrambles to avert trucker strike, fearing economic damage

November 22, 2022 | 5:07 pm

South-Korea-face-mask — A MAN walks along a nearly empty street in Seoul, South Korea, July 12, 2022. — REUTERS

SEOUL — South Korea’s government and ruling-party officials scrambled on Tuesday to stave off a strike by unionized truckers who hobbled the country’s industrial hubs and ports only five months ago.

Members of the administration of President Yoon Suk-yeol urgently met officials of his People Power Party to look for a solution as major trucking unions threatened to begin a nationwide strike on Thursday over pay and surging fuel prices.

In June, an eight-day strike by truckers delayed cargo shipments for industries from autos to semiconductors in Asia’s fourth-largest economy, costing more than $1.2 billion in lost output and unmet deliveries while posing new risks to a strained global supply chain.

Such major companies as Hyundai Motor and steelmaker POSCO were forced to cut output.

Another round of disruption of supplies, production and exports could fuel fears of worsening inflation and damage to the country’s post-pandemic recovery.

The truckers, largely self-employed, want an extension of subsidies to guarantee minimum earnings which the government gave them during the pandemic but which will expire in December.

In a tentative deal to end the June strike, officials promised to address the demand. But legislation introduced last year to extend the subsidies has been held up in parliament as some stakeholders have objected.

The government and ruling party agreed on Tuesday to extend the system by three years but refused to accept the unions’ further request to expand it to cover truckers in better-paying areas, such as carrying fuel and steel.

“If the union members go on a shocking strike, they will inflict substantial damage on the national economy at this bad time with soaring prices and interest rates,” the party’s policy chief, Sung Il-jong, told a briefing.

Yoon is already struggling with economic troubles and low approval ratings.

Labor minister Lee Jung-sik pleaded on Monday for a compromise, urging the truckers not to strike.

The Cargo Truckers Solidarity Union, which is steering the strike, said the government had failed to keep its June promise. The union vowed to go ahead with the strike.

“Life or death, we are going on strike this time with rage,” Lee Bong-ju, the union chief, told reporters. — Reuters

Turkey vows more retaliation after 2 killed in cross-border Kurdish strikes

November 22, 2022 | 1:54 pm

ISTANBUL/AMMAN — Turkey said a Kurdish militia killed two people in mortar attacks from northern Syria on Monday, in an escalation of cross-border retaliation following Turkish air operations at the weekend and a deadly bomb attack in Istanbul a week ago.

Turkey’s armed forces said it was responding, and a senior security official told Reuters that Turkish jets had again started hitting targets in northern Syria.

In the latest in a series of tit-for-tat attacks, several mortar shells hit a border district in Turkey’s Gaziantep province, leaving a child and a teacher among the dead and at least six wounded, said Interior Minister Suleyman Soylu said.

A pregnant woman initially reported as killed was badly wounded and is under treatment in hospital, Soylu said later.

Local governor Davut Gul said five rockets had hit a school, two houses and a truck near the Karkamis border area. Broadcaster CNN Turk said the attack was launched from Syria’s Kobani area, controlled by the Syrian Kurdish YPG militia.

Turkish warplanes had carried out strikes in Syria and Iraq on Sunday, destroying 89 targets linked to the outlawed Kurdistan Workers Party (PKK) and the YPG, which Ankara says is a wing of the PKK.

In a statement, the Turkish defense ministry said 184 militants were killed in operations on Sunday and Monday. It said the operations had included air strikes and land-fired weapons.

Turkey said its weekend operation was in retaliation for the bomb attack in Istanbul last week that killed six people, and which authorities blamed on Kurdish militants. The PKK and YPG-led Syrian Democratic Forces (SDF) have denied involvement in the Nov. 13 bombing on a busy pedestrian avenue.

Washington has allied with the SDF in the fight against Islamic State in Syria, causing a deep and lasting rift with NATO ally Turkey.

The United States urged de-escalation in Syria and said it opposed “any uncoordinated military action in Iraq that violates Iraq’s sovereignty,” US State Department spokesperson Ned Price said in a statement.

An SDF spokesman had said the weekend Turkish strikes destroyed grain silos, a power station and a hospital, killing 11 civilians, an SDF fighter and two guards. It also said it would retaliate.

“GROUND FORCES”
During the weekend violence, eight Turkish security personnel were wounded in YPG rocket attacks from Syria’s Tal Rifat on a police post near a border gate in Kilis province, Ankara said.

On Monday, Turkey struck a Syrian army outpost west of Kobani where a YPG army barrack is located, an SDF source said. The outpost is one of several where the Syrian army was brought in to prevent the Turks from attacking the SDF.

Turkey has backed rebels fighting to topple Syria’s President Bashar al-Assad, and cut diplomatic relations with Damascus early in the 11-year conflict.

Turkey’s armed forces have conducted several large-scale military operations in recent years in northern Iraq and northern Syria against the YPG, PKK and Islamic State.

President Tayyip Erdogan said Turkey’s operations would not be limited to an air campaign and could involve ground forces.

“Our defense ministry and our general staff decide together how much of the land forces should take part. We make our consultations, and then we take our steps accordingly,” he was quoted by Turkish media as saying on a flight from Qatar.

The PKK launched an insurgency against the Turkish state in 1984 and more than 40,000 people have been killed in the conflict. It is considered a terrorist organization by Turkey, the United States and the European Union. — Reuters

Disney brings back Bob Iger as CEO in surprise move to boost growth

November 22, 2022 | 1:50 pm

walt-disney-world — STOCK PHOTO | Image by stinne24 from Pixabay

LOS ANGELES — Bob Iger is returning to Walt Disney Co. as chief executive less than a year after he retired, a surprise comeback that coincides with the entertainment company’s attempt to boost investor confidence and profits at its streaming media unit.

Mr. Iger, 71, who was chief executive for 15 years and retired as chairman last year, has agreed to serve as CEO for two more years effective immediately, Disney said in a statement late on Sunday. He will replace Bob Chapek, who took over as Disney CEO in February 2020 just as the COVID-19 pandemic led to park closures and visitor restrictions.

Shares rose Monday to close at $97.58, up 6.3%.

“Maybe the old hand on the tiller is what’s required,” said Markets.com analyst Neil Wilson. Disney has been spending billions of dollars to compete with rival Netflix Inc. and is seeking to revive its share price.

The stock had sunk more than 40% so far this year, lagging the nearly 7% year-to-date drop in the broader Dow Jones Industrial Average. It lost almost a third of its value while Chapek was at the helm.

“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” Chairwoman Susan Arnold said in the statement.

Disney disappointed investors this month with an earnings report that showed mounting losses at its streaming media unit that includes Disney+. Shares hit a 20-year low the day after the fourth-quarter earnings. Read full story

The streaming business lost nearly $1.5 billion in the quarter, more than twice the previous year’s loss, overshadowing subscriber gains. The unit has yet to turn a profit since its 2019 launch, and Disney has said it expects Disney+ to become profitable in fiscal 2024.

“I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty – perhaps especially in the face of uncertainty – our employees and Cast Members achieve the impossible,” Iger said in a memo to employees seen by Reuters.

SHAREHOLDER PRESSURE
Some activist investors have mounted pressure on Disney this year, including Third Point, led by billionaire Daniel Loeb.

In August, Loeb began pushing for changes, including spinning off the ESPN sports television network and accelerating the planned takeover of Hulu from minority-owner Comcast Corp. The investor later tweeted that he better understood ESPN’s value to Disney. Third Point also pushed Disney to refresh its board and reached a settlement with the company in September that handed a seat to former Meta executive Carolyn Everson.

In the days following its lackluster earnings report, Trian Fund Management LP, co-founded by Nelson Peltz, bought more than $800 million worth of Disney stock, according to a source familiar with the matter. The WSJ first reported Trian’s stake.

Trian’s view is that Iger should not be back in control of the company, the source said, adding that Trian has signaled interest in a board seat as it pushes the entertainment giant to make operational improvements and cut costs.

The stake, which is under the 5% disclosure threshold, is not as large as Trian would like it to be and will likely grow subject to market conditions, the WSJ reported.

Disney did not respond to a request for comment on Trian and Trian did not respond to a request for comment.

IGER’S RETURNS
Mr. Iger exited Disney on a high note as the company led the battle against Netflix in the streaming wars. During his tenure, Disney made several key acquisitions, including Pixar Animation Studios, Marvel Entertainment and 21st Century Fox, and boosted its market capitalization five-fold.

During his first tenure, Disney’s annualized shareholder returns were more than 14%, well above its rival Comcast and the broader stock market.

During this second tour, Iger has been charged with “setting Disney on a path to renewed growth” and working with the board to identify a successor, the company said.

The leadership change caught employees by surprise, two company sources said.

Shortly after Iger’s return was announced, Netflix co-founder Reed Hastings tweeted: “Ugh. I had been hoping Iger would run for President. He is amazing.” — Reuters

Spain to approve mortgage support for more than 1 million households

November 22, 2022 | 1:25 pm

madrid-2714570_1920 — Madrid, Spain | STOCK PHOTO | Image by Stanislav from Pixabay

MADRID – The Spanish government will approve on Tuesday mortgage relief measures such as extending loan repayments for up to seven years for more than one million vulnerable households and middle-class families, the economy ministry said on Monday.

The ministry said the new measures, which would be given the go-ahead at the government’s cabinet meeting, would be adopted pending final negotiations with Spanish banking associations.

In Spain, around three-quarters of the population are homeowners, with most opting for floating-rate mortgages, more exposed to accelerated interest rate rises.

Under the framework, banks will provide mortgage support for vulnerable families through an amended industry-wide code of good practice. The income threshold has been set at 25,200 euros ($25,815).

Vulnerable households will be able to restructure mortgages at a lower interest rate during a five-year grace period, already set in the original 2012 industry-wide code of good practice, which is voluntary but becomes mandatory once lenders adhere to it.

Grace periods allow borrowers to delay payments on the principal of the loan without being charged late fees and not resulting in default or loan cancellation.

The period for cancelling debt has been extended by two years and includes the possibility of a second restructuring, if necessary, the ministry said.

Vulnerable families that spend more than 50% of their monthly income to repay their mortgage, but do not meet the condition set out in the previous code of a 50% rise in their mortgage payments, can take advantage of a two-year grace period.

The government will additionally implement a new code of good practice for middle-class families at risk of vulnerability, setting the income threshold at less than 29,400 euros.

In those cases, lenders must offer the possibility of a 12-month freeze on repayments, a lower interest rate on the deferred principal and an extension of the loan if a mortgage burden represents more than 30% of their income and the cost has risen by at least 20%.

The mortgage relief is expected to come into effect next year. — Reuters

First-ever conference to bring stakeholders together for the Net Zero Building and Net Zero City Summit 2023

November 22, 2022 | 1:00 pm

Global Zero Carbon Partnership and Escom Events, in collaboration with the Department of Energy (DoE), Bases Conversion and Development Authority (BCDA), and Philippine Green Building Council (PHILGBC) as Official Endorsers of the event, have come together to support the initiative to bring together stakeholders in the value chain for Net Zero Building, Energy Efficiency, Building Technology, ESG, and Smart City Development for the first time at the year’s flagship event — Net Zero Building & Net Zero City Summit Philippines 2023 on Jan. 10 at Dusit Thani Manila.

This one-day conference will cover the following topics such as Climate Ambition, Net Zero Pathways, Energy Efficiency, Electric Mobility Business Models, Smart Cities/Buildings, Circular Economy, Sustainable Urban Development, and ESG.

Speakers for this event will be Director Patrick Aquino (Director of Energy Utilization Management Bureau [EUMB] of DoE), Sec. Robert E.A. Borje (Vice-Chairperson and Executive Director of Climate Change Commission), Joy Esther Gai (Programmes Head for Asia Pacific Region of World Green Building Council), Raymond Rufino (Chief Executive Officer of NEO Office PH), and Alexander Ablaza (President of Philippine Energy Efficiency Alliance, Inc.) to name a few.

The event also includes an exhibition of the world’s leading technological innovations in urban planning, carbon management, and building solutions. It is an ideal setting for connecting with business partners, products, and solutions for your projects.

To know more about the event, you can visit the official event website (https://gzcp.org/conference/netzerophilippines/) and/or follow their GZCP’s official linkedin page (https://www.linkedin.com/company/wcecph2022/).

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.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Pest Science Corp.: Celebrating 20 years of excellent science-based service

November 22, 2022 | 12:00 pm

What started out as a small company in the business of pest and termite management, Pest Science Corp. has steadily grown to be the trusted, first ISO-IMS-certified pest control company in the Philippines. Sailing strong through both turbulent and calm waters of the industry, the company was built from humble beginnings with only three pioneers who dedicated themselves to the company. Today Pest Science proudly have more than 500 employees all over the country. Today, under the Lorenzo Group of Companies of which 500 personnel are employed, Pest Science Corp. has an authorized capital base of P30 million operating in 28 branches throughout the country.

One wonders how Pest Science has done it. True to its logo, which features a microscope and a bug, Pest Science has employed a highly-detailed and science-based approach in designing its products and services to its clients. On its first decade, Pest Science has secured ISO certification for an Integrated Management System (IMS). And to maintain this certification, the company continuously trains its employees and staff, ensuring their capacity and knowledge in the field. In addition, Pest Science has its own in-house Pollution Control Officer and Safety Officer.

Pest Science Corp. President and CEO Rayner Lorenzo, Pest Science Corp. Vice-President and Marketing Head Ruby Vida Fragata-Lorenzo, and Pest Science Corp. Sales and Marketing Director Nymrose Abital

Pest Science Corp. is the first IMS-Certified Pest Control Operator & Pest Management Company in the Philippines, audited and certified by TUV-SUD PSB Philippines meeting the following standard:

ISO 9001: 2015 Quality Management System
ISO 14001: 2015 Environmental Management System
ISO 45001: 2018 Occupational Health and Safety Management System

The company’s organized, systematic and science-based approach has ensured the quality of its services to its clients and has given pride and dignity of work to its employees. Pest Science is committed to provide the highest quality of service towards customer satisfaction and to conduct activities responsibly with due consideration of all environmental, occupational health and safety issues.

With the company’s mission to marry science and service together in the dynamic field of pest management, it also wants to serve a larger market particularly in areas where demand of pest control services is high using its bio-rational method. In addition, Pest Science has in its mission to promote and disseminate information to the public about Integrated Pest Management (IPM) — one of the company’s approach to solve the pest problem.

The company does treatments for flying insects like mosquitoes, crawling insects like cockroaches, structural insects like termite and beetles, and also mammal and rodent control. Included also in its excellent lineup of services are fogging, sanitation and misting.

Pest Science ensures that all its people are well-equipped and are trained thoroughly in the science and biology of pest control and management, orienting them on the company’s holistic approach, not just the chemical treatment alone. On top of this, the staff is oriented on the ins and outs of the industry. This way, their people are more than capable to render the best services to their customers. Empowering their people this way has allowed them to have branches all over the Philippines.

In culmination of Pest Science Corp.’s 20^th Anniversary celebration, there was a Media Launch last Nov. 17 at Kusina Comfort Food, Arzo Hotel in Paco, Manila.

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.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

30 more years of Lifeline Rate to almost 6M families

November 22, 2022 | 11:26 am

Almost six million “poorest of the poor” Filipino families are now set to be given aid in their monthly electricity bill for 30 more years following the approval of the Implementing Rules and Regulations (IRR) of the law on Extending and Enhancing the Implementation of the Lifeline Rate.

The Energy Regulatory Commission (ERC), Department of Energy (DOE) and the Department of Social Welfare and Development (DSWD) jointly signed the IRR of Republic Act No. 11552 on October 28, 2022. RA 11552 is also known as “An Act Extending and Enhancing the implementation of the Lifeline Rate, Amending for the Purpose Section 73 of Republic Act. No. 9136 (Electric Power Industry Reform Act of 2021).” DOE Secretary Raphael P.M. Lotilla said “the lifeline rate program in the Philippines is one of the best designed lifeline rate programs in the world; ours is better targeted.” The DOE, led by Lotilla, has been tasked to formulate and promulgate the policy guidelines of RA 11552, ensuring the law and its IRR are lawfully implemented.

The task is consistent with President Ferdinand “Bong Bong” Marcos Jr.’s administration’s steadfast commitment in seeing to it that the benefits of the government’s energy policies and programs are felt by the poorest of the poor. A fair and equitable lifeline subsidy implementation Qualified marginalized electricity end-users are targets of the signed IRR, pursuant to R.A.1152, in terms of ensuring the subsidy given to the beneficiaries is distributed fairly. The DSWD has expressed its commitment to assist in the implementation in order for the IRR to meet the “fair and equitable” objective.

Thirty more years of subsidy to 6 million electricity consumers An amendment made on Section 73 of the EPIRA (RA No. 10150) revamps the 20-year-coverage subsidy provision to electricity consumers, giving the subsidy an extended timeline (additional 30 years).

This means that those from the marginalized sector who consume electricity will continue to enjoy government subsidy in their electricity bill for 30 more years after the first 20 years in the original RA is up. It’s practically like one person enjoying the benefit of a partially-subsidized electricity bill in almost his entire adult life. ERC records show that for the first six months of 2022, beneficiaries have already benefitted from the lifeline rate program an average of P541 Million worth of subsidy per month. The actual discounts vary, depending on the lifeline program’s per Distribution Utility (DU) computation approved by the ERC.

Qualified households—target of the extended subsidy timeframe Priority among the end users of the extended subsidy timeframe are qualified household beneficiaries under the “Pantawid Pamilyang Pilipino Program” (4Ps) Act, the master list of which is with the DSWD. The 4Ps is aimed at national poverty reduction through the provision of cash transfer to extremely poor households to improve health, nutrition and education. ERC Chairman and CEO Monalisa Dimalanta says the ERC will provide the criteria for qualifications of a marginalized end-user while the DSWD will provide the list of qualified household-beneficiaries in order to ensure a uniform and objective procedure of identifying potential beneficiaries. Dimalanta stresses that the IRR is a product of an effective inter-agency collaboration to deliver better public service. As mandated by the law, the ERC, DOE and DSWD, in consultation with the Philippines Statistics Authority (PSA) and other public and private stakeholders, with the approval of the Joint Congressional Energy Commission (JCPC), shall issue, adopt and promulgate the rules and regulations to implement the provisions of RA No. 11552.

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.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Jollibee plans China expansion with focus on smaller stores

November 22, 2022 | 10:38 am

Jollibee Foods Corp. targets to open at least 100 stores in China next year, said its CEO, who sees lockdowns as a “temporary setback” to the Philippine fast-food chain’s target of getting half of sales from abroad.

With food delivery expected to drive growth, the Philippine company that’s known for dishes like fried chicken and sweet spaghetti targets to open smaller stores in China, Hong Kong and Macau where it now has more than 500 outlets, Ernesto Tanmantiong said in an interview with Bloomberg TV’s David Ingles.

“China remains to be one of our pillar markets,” Tanmantiong said. The company will focus on its Yonghe King, Tim Ho Wan and Hong Zhuang Yuan brands, he said.

Jollibee expects half of its sales to come from overseas stores by 2027, and aims to be among the top five restaurant companies in the world, Tanmantiong said. The company is on track to surpass in 2022 its full-year profit before the pandemic, he said, citing its first nine months results.

A double-digit growth in revenue will likely be sustained in 2023 following a 40% growth in the first nine months of this year, Tanmantiong said, as pandemic restrictions continue to ease. The company is “well-positioned” to withstand elevated inflation, with higher-income customers shifting from fine dining to fast food, he said. — Bloomberg

US, PHL to negotiate civil nuclear deal

November 22, 2022 | 12:34 am

By Alyssa Nicole O. Tan, Reporter

THE United States and the Philippines are set to launch negotiations on a civil nuclear energy agreement, US Vice-President Kamala Harris said on Monday.

According to a fact sheet sent by the US embassy in the Philippines, the US and Philippines have opened talks on a civil nuclear cooperation agreement “to support expanded cooperation on zero-emission energy and nonproliferation priorities.”

“Once in force, this agreement will provide the legal basis for US exports of nuclear equipment and material to the Philippines. United States is committed to working with the Philippines to increase energy security and deploying advanced nuclear reactor technology as quickly as safety and security conditions permit to meet the Philippines’ dire baseload power needs,” the US embassy said.

Ms. Harris is currently in the Philippines as part of a trip to bolster economic and security ties with key Asian countries. She met with President Ferdinand R. Marcos, Jr. and Vice-President Sara Duterte-Carpio on Monday.

Also known as the “123 Agreement,” the US embassy said it would help both countries achieve their energy security and climate goals, as well as provide commercial opportunities for the private sector.

The 123 Agreement consists of arrangements to ensure that civil nuclear energy cooperation is protected against nuclear weapons proliferation. It is also the basis of the US National Security Act that requires such arrangement to be in place before it can proceed with the civil cooperation.

Mr. Marcos has previously said it is time for the Philippines to re-examine its strategy towards building nuclear power plants, noting that the country’s current energy demand far exceeds its supply.

“In the area of nuclear power, there have been new technologies developed that allow smaller scale modular nuclear plants and other derivations thereof. Once again, PPPs (public-private partnerships) will play a part in support as funding in this period is limited,” Mr. Marcos said in his first State of the Nation Address in July.

Last week, Energy Secretary Raphael P.M. Lotilla urged the National Power Corp. (Napocor) to consider tapping modular nuclear reactors to supply electricity to remote areas.

Philippine Nuclear Research Institute Senior Research Specialist Unico A. Bautista said the Philippines still has many infrastructure issues that need to be addressed before it can start building nuclear power plants.

“We still don’t have a nuclear power program, so we’re still in the preparation stage,” he told BusinessWorld in a mix of English and Filipino in a phone call. Among the areas that need further development in the Philippines include radioactive waste management, procurement process, among others.

Meanwhile, the US Department of Energy, US State Department and Philippine Department of Energy will also establish an Energy Policy Dialogue, “a high-level platform for the two nations to develop new forms of energy cooperation, including on short and long-term energy planning, offshore wind development, and grid stability and power transmission,” the US embassy said.

The US will also team up with Lopez-led Energy Development Corp. (EDC) to develop a geothermal project in Mindanao.

The US Trade and Development Agency will open an office in the US embassy in Manila that would assist American firms in investing in the country, particularly energy and infrastructure.

The US Department of Agriculture will also establish a food security dialogue with Philippine counterparts to allow both countries to work on resilient food systems and discuss best practices for agricultural innovation and sustainability.

The US International Development Finance Corp. (DFC) is also set to issue a $20-million loan for Agri Exim Global Philippines, Inc., a local processor of organic coconuts into derivative products, to expand its processing facilities.

The US embassy said the United States is planning to partner with listed Philippine company Now Telecom for the deployment of 5G technologies in the country.

The United States Agency for International Development (USAID) is also backing the launch of the first Low Earth Orbit Satellite Broadband Service in Southeast Asia, in partnership with SpaceX Starlink, in the Philippines.

USAID is also launching initiatives to support small and medium enterprises and women entrepreneurs, as well as training workers for the high-tech manufacturing sector.

BoI to miss ’22 investment goal

November 22, 2022 | 12:33 am

makati-skyline-buildings — STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

THE BOARD of Investments (BoI) is unlikely to reach its target of approving P1 trillion in new investments this year, reflecting the impact of the ongoing Russia-Ukraine conflict on global investor sentiment.

Ceferino S. Rodolfo, Trade undersecretary and BoI managing head, told reporters on Monday the BoI has approved P644.4 billion in investments from January to Nov. 15 this year, representing only 64.4% of its P1-trillion target for this year.

The BoI said 81% or P518.3 billion of the total approved investments came from domestic investors, while the rest came from foreign sources.

However, the January-to-November figure is already 73.51% higher compared with the P371.4 billion approved investments in the same period in 2021.

“What is certain is that we will surpass our 2021 level. That is for certain,” Mr. Rodolfo said in mixed English and Filipino.

The BoI’s total investment approvals stood at P655.4 billion in 2021.

“We did not foresee that there would be the Ukraine-Russia war that will have an impact not just on investment going to the Philippines, but also globally. It really affected us. But it is still good news that we will be able to surpass 2021 levels,” Mr. Rodolfo added.

Russia’s invasion of Ukraine in late February had widespread economic implications for the rest of the world. The impact was felt through rising prices of commodities such as food and energy, soaring inflation, supply chain disruptions, lower business confidence and higher investor uncertainty.

For the January-to-November period, the BoI said the biggest amount of approved investments were committed to the power sector at P343.8 billion.

This was followed by information and communications technology sector with P197.6 billion, administrative and support services activities with P26.8 billion, transportation and storage with P25.2 billion, and real estate with P23.8 billion.

Singapore was the top source of BoI-approved foreign investments with P75.3 billion, followed by Japan with P29.9 billion and United Kingdom with P9.9 billion. Investments from the British Virgin Islands stood at P2.6 billion, while those from South Korea hit P2.5 billion.

For 2023, Mr. Rodolfo said the BoI already has P372.8 billion worth of investment leads.

Of the total, P125.3 billion is from the information technology and business process management (IT-BPM) sector, followed by real estate activities at P105.47 billion, and agriculture, forestry, and fisheries at P66.9 billion.

Mr. Rodolfo said several big-ticket projects are expected next year, particularly for sectors such as green metals and renewable energy.

The Energy department last week revised a circular, which paved the way for full foreign ownership in the renewable energy sector.

“The BoI remains optimistic that foreign investments in 2023 will show significant growth given the game-changing economic reforms enacted in the Philippines such as the amended Public Service Act, amended Foreign Investment Act, amended Retail Trade Liberalization Act…,” it said.

Meanwhile, Trade Secretary Alfredo E. Pascual told reporters that fully digitalizing the government’s functions would help improve the processing of foreign investments in the country.

“The digitalization of the whole government function will be the solution for the speedy processing of foreign investments. The common complaint of people we talk to is that they talk to many people in the process,” Mr. Pascual said. — Revin Mikhael D. Ochave