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Trial of first person charged under Hong Kong’s national security law begins

Image via Comma Papana BS200/CC BY-SA 4.0/Wikimedia Commons

HONG KONG  The trial of the first person charged under the national security law in Hong Kong begins on Wednesday, almost a year after he was charged with driving his motorbike into officers during a rally while carrying a flag with a protest slogan. 

The case of Tong Ying-kit is seen as a departure from Hong Kong’s common law traditions, as he was denied bail and a jury, and a test of the government’s claim that the slogan “Liberate Hong Kong! Revolution of our times” is secessionist. 

Mr. Tong, 24, was arrested on July 1, 2020, hours after the enactment of the national security law, which punishes what China deems as subversion, secessionism, terrorism and collusion with foreign forces with up to life in prison. 

Mr. Tong faces charges of terrorism and inciting secession, as well as an alternative charge of dangerous driving causing grievous bodily harm, which can lead to up to seven years in prison. 

Mr. Tong has been denied bail. Hong Kong’s common law has traditionally allowed defendants to seek release unless prosecutors can show lawful grounds for their detention. Under the new law, the burden is now placed on the defendant to prove they will not break the law if released on bail. 

On Tuesday, the Court of Appeal upheld a decision to deny Mr. Tong a trial by jury, citing a threat to the personal safety of jurors and their family members. 

His trial will be held by a panel of three judges instead: Esther Toh, Anthea Pang and Wilson Chan. 

Hong Kong’s Judiciary describes trial by jury as one of the most important features of the city’s legal system, a common law tradition designed to offer defendants additional protection against the possibility of authorities overreaching their power. 

Article 46 of the security law  drafted by Beijing, where courts are controlled by the Communist Party and conviction rates are close to 100% – states three instances in which juries can be scrapped: protecting state secrets, cases involving foreign forces and protecting jurors’ safety.  Sara Cheng/Reuters 

US blocks websites linked to Iranian disinformation

Screenshot via www.almasirah.com
Screenshot via www.almasirah.com

DUBAI — The US Justice Department said on Tuesday it seized 36 Iranian-linked websites, many of them associated with either disinformation activities or violent organizations, taking them offline for violating US sanctions.

Several of the sites were back online within hours with new domain addresses. 

“Today, pursuant to court orders, the United States seized 33 websites used by the Iranian Islamic Radio and Television Union (IRTVU) and three websites operated by Kata’ib Hizballah (KH), in violation of US sanctions,” the department said in a statement. 

Also spelled Kataib Hezbollah, KH is one of the main Iran-aligned Iraqi militia groups and has been designated a Foreign Terrorist Organization by the United States. 

The sites seized included Press TV, the Iranian government’s main English-language satellite television channel, and Al Alam, its Arabic-language equivalent. Both came back online using Iranian domain addresses Alalam.ir and Presstv.ir. 

The Justice Department said the 33 domains used by IRTVU are owned by a United States company and that IRTVU did not obtain a license from Treasury’s Office of Foreign Assets Control prior to utilizing the domain names. 

KH also did not obtain a license. 

Notices appeared earlier on Tuesday on a number of Iran-affiliated websites saying they had been seized by the United States government as part of law enforcement action. 

Iranian news agencies said the US government had seized several Iranian media websites and sites belonging to groups affiliated with Iran such as Yemen’s Houthi movement. 

The notices appeared days after a prominent hardliner and fierce critic of the West, Ebrahim Raisi, was elected as Iran’s new president and after envoys for Iran and six world powers, including Washington, adjourned high-stakes talks on reviving their tattered 2015 nuclear accord and returned to capitals for consultations. 

The website of the Arabic-language Masirah TV, which is run by the Houthis, read: 

“The domain almasirah.net has been seized by the United States Government in accordance with a seizure warrant … as part of a law enforcement action by the Bureau of Industry and Security, Office of Export Enforcement and Federal Bureau of Investigation.” 

The site quickly opened up a new, working website at www.almasirah.com. 

Iran’s Arabic language Alalam TV said on its Telegram channel: “US authorities shut down Al-Alam TV’s website.” 

Notices also appeared on the website of Lualua TV, an Arabic-language Bahraini independent channel that broadcasts from Britain. 

US prosecutors in October seized a network of web domains they said were used in a campaign by Iran’s Revolutionary Guard Corps (IRGC) to spread political disinformation around the world. 

The Justice Department said then it had taken control of 92 domains used by the IRGC to pose as independent media outlets targeting audiences in the United States, Europe, Middle East and Southeast Asia. 

The semi-official Iranian news agency YJC agency said on Tuesday the US move “demonstrates that calls for freedom of speech are lies.” — Reuters 

Pag-IBIG Fund members save record-high P10.7B in MP2 Savings in Jan-May 2021, up 109%

Pag-IBIG Fund members collectively saved P10.67 billion under the agency’s voluntary Modified Pag-IBIG 2 Savings program in the first five months of the year, setting another record-high despite the ongoing health crisis, top officials of the agency said on Monday (June 21).

“We are happy to report that despite the impact of the pandemic to our economy, the amount saved by our members in the MP2 Savings from January to May of this year has reached P10.67 billion. This amount is a record-high for any January to May period in our history and hence, speaks highly of the trust that our members have in Pag-IBIG Fund. We would like to assure our members that we will continue to safeguard their savings and do our best to gain the best possible return for every hard-earned peso they save with us. This will also go a long way in helping us serve more members by providing funds for their cash loans and home loans, all in line with President Rodrigo Roa Duterte’s directive to help uplift the lives of more Filipinos especially during these difficult times,” said Secretary Eduardo D. del Rosario of the Department of Human Settlements and Urban Development and Chairperson of the 11-member Pag-IBIG Fund Board of Trustees.

The MP2 Savings is Pag-IBIG Fund’s voluntary savings program that has a 5-year maturity period and a minimum savings requirement of only P500. Made available to members in 2010, the MP2 Savings has seen phenomenal growth over the last 5 years due to the program’s consistently high dividends. In 2020, amid the pandemic-induced economic slowdown, the program still posted a 6.12% annual dividend rate.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti cited the MP2 Savings’ remarkable growth, noting that even in midst of the pandemic, more members continue to save in the program.

“It was only in 2017 when collections from our MP2 Savings surpassed the P1 billion-mark, which was then a historic feat. By the end of 2020, in a span of just three years, MP2 Savings reached a record-high P13.28 billion, surpassing the previous high of P12.01 billion saved by our members in 2019 – an 11% growth. This year, despite the ongoing health crisis, MP2 Savings continue to increase as collections in January to May are up by 109% compared to the same period last year. In fact, the amount of MP2 Savings collected in the first five months of 2021 is already equivalent to 80% of the P13.3 billion saved in MP2 for the entire year of 2020. We thank our members for their continued support and enduring trust that despite the challenging times, they opt to save voluntarily in our MP2 Savings Program,” said Moti.

World Bank vows to keep board apprised of climate action progress

PIXABAY

WASHINGTON  The World Bank on Tuesday agreed to boost its spending on climate change to 35% from 28% and to provide annual progress reports to its board after its draft climate change action plan came under fire for lacking a clear implementation strategy. 

The bank, the largest source of climate finance for developing countries, said it would also publicly release a roadmap to show how it will help those nations meet their Paris climate accord targets. 

Bank officials pledged to provide the board with regular updates, with details to be included in an addendum to the plan, Genevieve Connors, who oversees tracking and reporting of climate finance for the World Bank, told Reuters. 

“This is really transformational in the way we do business,” she said. “One of the central differences of this (climate change action plan) is that we as the World Bank Group have now elevated climate to be central to everything that we do.” 

The World Bank released some details of its five-year plan in April, saying it would help developing countries reduce greenhouse gas emissions by aiding the transition out of coal. But it drew fire for stopping short of halting all funding of fossil fuel projects. 

The bank’s plan calls for increase the amount it dedicates to climate finance, which has totaled $83 billion over the past five years, peaking at $21.4 billion in 2020. 

Environmental campaigners took aim at the new plan on Tuesday, saying its failure to completely end fossil fuel investments undermined the broader goals. 

“The World Bank Group’s selective approach to phasing out fossil fuels is about as effective as throwing both water and gasoline at a house fire,” said Luisa Galvao, a campaigner with the US arm of Friends of the Earth. 

Ms. Connors said the bank would assess gas investments on a case-by-case basis and that gas projects would face high thresholds to win funding. 

In some cases, it makes sense to proceed with gas projects, Ms. Connors said, adding that there was no firm deadline for halting all such investments. 

“It’s a moving target,” she said. “We see it as a journey towards decarbonization … but our countries are all on different pathways and there always may be extenuating circumstances in which a particular natural gas project may make sense. But the hurdles are high, and proof needs to be shown.”  Andrea Shalal/Reuters 

As seas rise, coastal communities face hard choices over ‘managed retreat’

ANDRZEJ KRYSZPINIUK-UNSPLASH

LONDON  With climate change expected to drive a meter or more of sea level rise this century, planning now for “managed retreat” from places facing inundation could help at-risk communities preserve what they value most, researchers and city officials said Tuesday. 

Whether families opt for floating homes or new ones inland, coming moves also present opportunities to address historical inequities and ensure that protecting communities  rather than just cutting economic losses  is a top priority, they said. 

“Too often adaptation is trying to keep the world the way it is when we should be trying to make it better,” argued A.R. Siders, a University of Delaware assistant professor and managed retreat specialist. 

With people everywhere reluctant to leave their homes and communities, even raising the prospect of managed retreat “is incredibly difficult,” Ms. Siders told an online event organized by The Earth Institute and Columbia Climate School. 

But if it is not talked about now and prepared for, “then we will limit the futures we can build,” she said. 

Rising seas, driven by melting of the world’s glaciers and polar ice and by the expansion of warming oceans, threaten low-lying communities from the Pacific islands to US cities like New York and Miami. 

Efforts to protect them have long relied on building engineering defenses, such as seawalls, or reinforcing natural barriers, from replanting mangroves to widening beaches. 

But seawalls, for instance, can cut off communities from the ocean access and views they value or rely on for an income  and as sea levels rise they may fail or prove too costly and impractical to continue expanding, analysts say. 

Instead, many communities will need to move to safer places  or rethink how they stay in place, such as by adopting floating homes or turning flooded roads into canals and relying on boats for travel, Ms. Siders, a lawyer and social scientist, noted in an article in the journal Science this month. 

‘NOT A WELCOME WORD’ 

But few communities are ready to talk seriously about the threats yet, noted Nichole Hefty, deputy resilience officer for Miami-Dade County in flood-threatened southern Florida. 

“The word ‘retreat’ is not a welcome word,” she said. In her county, “we’re not thinking of retreat in terms of leaving but really more in making changes in how we live,” she added. 

That means, for instance, figuring out how to help the more than 100,000 homeowners in the area whose septic tanks  which process waste  are likely to fail by 2040 as groundwater levels rise, she said. 

The county is also experimenting with buying out at-risk property owners, though a pioneering program covers only 10 properties, she said. 

In New York City, about 400,000 people live in flood hazard areas, a problem “we’re going to need every tool in the toolbox” to solve, said Eric Wilson, deputy director for land use and buildings in the Mayor’s Office of Climate Resiliency. 

Globally, some early efforts at managed retreat are underway. 

The Pacific island nation of Fiji has identified more than 40 coastal communities threatened by worsening cyclones and storm surges that need to be moved inland, and about six have been relocated so far. 

An indigenous community living on southern Louisiana’s disappearing Isle de Jean Charles also has used a pioneering $48 million grant from the US government to buy land and begin relocating all of its members. 

That move is “not a lotto, it is not a celebration. It is a response to the changes to the environment,” Chris Brunet, a member of the community, told the online event. 

ECONOMIES OR PEOPLE? 

Jacqueline Patterson, senior director of the NAACP environmental and climate justice program, urged people who may need to move to ask hard questions, including who pays, who benefits and who gets to make key decisions. 

She pointed to an Army Corps of Engineers formula used to prioritise levy improvements in Louisiana, based on the potential economic impact not on how it will affect families. 

“That prioritization of dollars is literally at the sacrifice of people who need protection most,” she said, noting “these are the kind of dynamics we have all too often around how decisions are made.” 

But Mr. Wilson, of New York City, said some signs of change are emerging. 

He said the US Federal Emergency Management Agency (FEMA) had requested information from his city on whether compensating families for lost homes based on their “fair market value” was perpetuating inequities by giving the rich more help. 

Ms. Siders said communities being asked to consider leaving their homes should be able to make key decisions about not just whether to go but what they want to protect or even improve if they do, from access to affordable housing to community culture. 

“It’s about choice  choosing what we preserve, choosing what we let change and (choosing) what we actively change,” she said. 

She warned the decisions would be tough, and governments and other organizations trying to help communities may struggle to provide good advice. 

“How do we help people make decisions when every single decision has harms and benefits?” she asked.  Laurie Goering and Elijah Clarke/Thomson Reuters Foundation 

Golden MV Holdings, Inc. announces schedule of stockholders’ meeting

Loxon Philippines appoints new president

Jon Esmerio, Loxon Philippines president

Loxon Philippines, Inc. (LPI), one of the country’s leading specialty engineering contractors of fully integrated building management systems for the protection of life and property, would like to announce the appointment of Jonathan A. Esmerio as its new President. He assumed the top post following the retirement of Company Founder, Ed C Esmerio. Ed will remain to be the Chairman of the Loxon Group of Companies, Loxon Limited (Hong Kong), and Loxon Philippines, Inc. He is also the Chairman and CEO of Loxon Wandset, Incorporated which anchors its business in architectural aluminium and glass to create modern, eco-friendly, and safe building envelop systems.

“I am confident to leave LPI under the very capable hands of Jon with the guidance of our competent and very hard-working members of the board of directors. Jon brings with him a wealth of experience having served in a variety of roles within the Company. His proven track record, deep expertise, and accomplishments in the construction industry will enable him to steer LPI into even greater heights,” said Ed C. Esmerio.

Jon has been with the Company since 2001 and served as its Chief Executive Officer prior to his appointment. Described as a transformational leader, he takes an active role in ensuring LPI consistently delivers operational and service excellence. He has undergone extensive training overseas in the modern discipline of building protection and risk management and keeps himself abreast with the latest technologies and innovations advancing the industry. Jon graduated with a degree in BS Industrial Engineering from De La Salle University and completed the Corporate Finance Diploma Course in Ateneo de Manila Graduate School. He is scheduled to take the Eliminate Obstacles to Growth by Recognizing and Overcoming Challenges Course of Harvard Business School in the first quarter of 2022. He is concurrently President of ECE Prime Holdings, Inc., which has interests in the property sector.

As an advocate for sustainable development, he is excited to promote the latest technology in fire suppression systems, the Nohmi NN100, which employs clean agent nitrogen gas resulting in zero ozone depletion potential (ODP) and zero global warming potential (GWP). With most companies moving towards digitalization, the Nohmi NN100 offers maximum protection to an organization’s data center in an eco-friendly manner.

Loxon Philippines, Inc. was established in 1983 and was the first in the industry to achieve ISO 9002:1994 certification.  The Company continues to be driven by its unwavering commitment to quality and professionalism and today operates a Risk-Based Quality Management System under ISO 9001:2015.

LPI enjoys long-standing relationships with its overseas partners in Japan, United States, Spain, Canada, Singapore and Australia who continuously provide marketing support and technical assistance. To date, it is responsible for the installation of different types of systems in over one thousand major establishments across the Philippines such as commercial and residential buildings, hotels, malls, airports, schools, manufacturing facilities, telecommunications facilities, and power plants.

 

Half of PHL students consider putting off school amid pandemic

PHILIPPINE STAR/ MIGUEL DE GUZMAN

MORE than half of students in the Philippines consider temporarily dropping out of school until the coronavirus pandemic ends mainly due to difficulties in technology access for remote learning, according to a survey by a private company.

The survey conducted by global software firm Desire 2 Learn (D2L) showed 51% of the respondents want to postpone their schooling until face-to-face classes are allowed again.

A total of 202 students, aged 16 to 23, from universities, vocational schools, and K-12 institutions in the Philippines participated in the survey.

The students’ main concerns with remote learning were: internet connectivity (78%), difficulty in focusing and lack of motivation to learn (66%), finding a quiet and comfortable place to study (58%), balancing learning with other responsibilities (47%), and issues with mental health and wellbeing (43%).

A total of 802 students from the Philippines, Australia, India, and Singapore were surveyed to find out the concerns and situations of students amid the sudden shift to remote learning prompted by the global pandemic.

Among the four countries, the Philippines showed the highest percentage of students who want to postpone their schooling, with only 33% in Australia, 47% in India, and 21% in Singapore.

With the results, D2L recommended that to improve remote learning, teachers must be trained on how to more effectively conduct online classes, including adjusting the delivery of lessons based on the medium, maximizing available digital tools, and determining appropriate student workload, among others. — Bianca Angelica D. Añago

May budget deficit narrows to P200B

PHOTO COURTESY OF DPWH
The Public Works department has ramped up the completion of projects such as the Sta. Monica-Lawton Bridge also known as the Kalayaan Bridge. — PHOTO COURTESY OF DPWH

By Beatrice M. Laforga, Reporter

THE NATIONAL Government’s budget deficit narrowed in May as the double-digit surge in revenues outpaced spending on base effects, the Bureau of the Treasury (BTr) reported.

Preliminary data from the BTr showed the fiscal gap fell by 1% to P200.3 billion in May from P202.1 billion a year ago. However, this was nearly five times larger than the P44-billion deficit in April.

Government revenues jumped 69.3% year on year to P256.4 billion in May, mainly due to a 61% rise in tax collections to P183.7 billion.

The Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) both recorded double-digit annual growth in collections. The BIR’s tax haul rose by 60.5% to P183.7 billion, while the BoC’s collection of duties and taxes went up by 58.05% to P48.6 billion.

Other state offices saw a 505% surge in tax collections to P1.9 billion in May from P300 million a year ago. Other revenues also increased by 270.5% year on year to P22.2 billion.

This was after BTr’s income grew by fivefold to P12.4 billion on higher dividends from its Bond Sinking Fund investment, while other offices collecting nontax revenues also saw their income more than double to P9.7 billion due to low base effect.

Overall spending also rose but at a slower pace of 29.2% to P456.7 billion in May, from P353.6 billion the year before.

“The sizeable increase is attributed mainly to the: disbursements for the capital outlay projects of the Public Works department, banner programs of the Education and Health departments, and releases to the Philippine Health Insurance Corp. (PhilHealth) for the health insurance premiums of senior citizens, and to local government units for the Barangay Development Program,” the BTr said.

Primary spending — which is total expenditures less interest payments — grew by 28% year on year to P427.8 billion, while interest payments climbed by 58% to P28.9 billion.

The government runs on a budget deficit as it spends more than the revenues it generates to boost growth. It borrows from local and foreign lenders to plug this fiscal gap that started to widen since last year after the pandemic-induced recession pulled down tax collections and bloated spending.

FIVE-MONTH PERFORMANCE
Year to date, the budget deficit edged up by 0.7% to P566.2 billion in  the five months to May.

Total state revenues increased by 12.9% to P1.245 trillion from January to May, buoyed by the 27% jump in tax collections to P1.132 trillion.

For the five-month period, the BIR increased its tax take by 29% to P872 billion while Customs saw its revenues grow by 19% to P250 billion.

The total was partially offset by lower nontax income of other government offices, which fell by 46.8% to P112.4 billion from P211.2 billion.

BTr’s income plunged by 65% to P60.8 billion because of the high base last year when state-run firms frontloaded their dividend remittances to boost the government’s pandemic response. Nontax revenues by other offices grew by 32% to P51.6 billion.

Meanwhile, overall state spending only grew by 8.8% to P1.811 trillion in the January to May period.

Primary spending jumped 8.5% year on year to P1.632 trillion while interest payments increased by 11.6% to P178.6 billion.

The share of interest payments to overall expenditures went up to 9.86% from 9.62% last year. As a percentage of revenues, this fell to 14.35% from 14.52% a year ago.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the big jump in revenues last month was buoyed by base effects, as the strict lockdown a year ago brought nearly all economic activity to a standstill.

“We can expect the Philippines to continue to post budget shortfalls for the balance of the year as revenues fall short due to lackadaisical economic activity and the fallout from CREATE (Corporate Recovery and Tax Incentives for Enterprises Act), with the government curtailing spending likely to limit the hit on the overall debt-to-GDP (gross domestic product) ratio,” Mr. Mapa said in a note on Tuesday.

While the Philippines is on track to stay within its deficit limit, he said balancing the budget from here on will be more “complicated” as the government seeks to keep fiscal metrics intact while supporting economic recovery.

Economic managers capped this year’s budget deficit at P1.856 trillion or equivalent to 9.3% of GDP, and stood firm on their policy to observe fiscal prudence amid calls for bigger stimulus package to fast-track the recovery.

“The strategy to hold off on spending has worked to limit the deficit and debt but it also almost ensures that the injured economy stays in sick bay for a little longer. Meanwhile, hopes that previously passed stimulus packages would deliver some form of impetus continues to linger, despite the latter’s inability to deliver only a modest boost to the economy despite all its hype,” Mr. Mapa said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort cautioned that the widening budget deficit in the recent months, as the state aims to hike spending, could force the government to borrow more and increase its outstanding debt.

“For the coming months, increased government spending on various government projects and infrastructure projects around the country could continue especially up to shortly before the May 2022 elections,” Mr. Ricafort said.

A faster recovery backed by sustained vaccination program and further reopening of the economy could help narrow the budget deficit and keep the country’s debt stock in check, he said.

The National Government’s outstanding debt reached P10.991 trillion at the end of April, up 2% from P10.77 trillion as of end-March. Year on year, the debt pile jumped 28% from P8.6 trillion.

National Government Fiscal Performance (May 2021)

Treasury hikes July borrowing program

BW FILE PHOTO

THE BUREAU of the Treasury (BTr) raised its planned borrowings from the local market to P235 billion in July, as it seeks to offer longer tenors amid strong demand and a low-rate environment.

In a memorandum posted on its website on Tuesday, the BTr said it is planning to borrow P60 billion via the Treasury bills (T-bills) and another P175 billion in Treasury bonds (T-bonds).

This is 9.3% higher than the P215-billion borrowing plan in June, which consists of P75 billion in T-bills and P140 billion in T-bonds.

“Given June bid to cover, we see strong market liquidity and demand to put money to work,” National Treasurer Rosalia V. de Leon told reporters via Viber on Tuesday.

For next month, the BTr will offer P5 billion each via the 91-, 182-, and 364-day T-bills every Monday.

It will also hold weekly auctions for the T-bonds again every Tuesday at P35 billion each next month. It will offer 11-year bonds on June 29; seven-year papers on July 6 and July 27; 20-year notes on July 13 and 10-year securities on July 20.

Excluding the scheduled T-bill auction next week and the result of the tap facility on Tuesday, the government has raised P242 billion so far this month, bigger than the programmed P215 billion.

It borrowed P80 billion via the T-bills after upsizing the volume of debt papers it accepted in all four auctions, and another P162 billion in T-bonds as it opened the tap facility for the bonds every week.

A bond trader said the bigger July borrowing program fell within market expectations after the past auctions this month showed that players can absorb longer tenors amid robust liquidity and the sustained risk aversion of investors.

“The BTr now tries to borrow longer to extend its maturity profile while it still can, [while the market is] trying to extend as well because they need to earn margins,” the trader said via Viber.

The Treasury planned to issue more T-bonds to take advantage of low rates before the yields increase once the economy’s recovery picks up, the trader said.

The government aims to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit that is expected to hit 9.3% of economic output. — Beatrice M. Laforga

Manila becomes more expensive for expats — survey

PHILIPPINE STAR/EDD GUMBAN

By Jenina P. Ibañez, Reporter

MANILA is the 78th most expensive city for expatriates to live in according to Mercer’s 2021 Cost of Living Survey, as the Philippines’ capital city jumped two spots from the previous year’s ranking.

Manila tied with Mumbai, India at 78th out of 209 cities in the Mercer survey that compares the costs of 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

Julia Radchenko, Mercer Asia Pacific Global Mobility Leader, said that the Philippines’ rise in ranking was due to the Philippine peso strengthening by 4% against the US dollar this year.

“It is also one of the few Asian currencies that has recorded gains versus the greenback, alongside the Chinese yuan and Taiwanese dollar,” she said in an e-mail to BusinessWorld on Tuesday.

“A fall in demand for imports due to a weaker economy as the country went through long and strict lockdowns to contain the virus has in turn strengthened the peso.”

More than half of the top 10 most expensive cities is in Asia. Ashgabat, Turkmenistan topped the list as the most expensive city, replacing Hong Kong which slipped to second spot. Beirut climbed 42 spots to third place, amid the economic crisis in Lebanon. Tokyo, Japan slipped to fourth place.

Shanghai came in sixth, while Beijing took the ninth spot, as the Chinese currency appreciated against the US dollar and the economy’s rebound from the pandemic.

Several cities in Switzerland also held the top spots, including Zurich (5th), Geneva (8th), and Bern (10th).

Among 42 Asia-Pacific countries in the survey, Manila is the 25th most expensive city, again tied with Mumbai.

“The survey saw a rise in rankings across all Mainland China cities, buoyed by currency appreciation against the US dollar and a swift recovery from the impact of COVID-19,” Mercer said.

Ms. Radchenko in a statement said that companies in the Asia-Pacific region are reassessing workforce mobility amid the pandemic.

“Companies are realizing more than ever that they need to diversify their mobility scenarios and related compensation practices. And it is no longer about just geographical mobility, it is about talent mobility which implies lateral moves, distributed workforce, geographical mobility, international remote working, virtual assignments,” she said.

“What we’ve seen is that companies are exercising more flexibility to accommodate the different personal situations of employees. Broadly speaking, companies are now more open to International remote working arrangements, allowing employers to perform the same role remotely as they would if they were to relocate.”

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said that Manila’s more expensive cost of living could be attributed to a relatively faster hike in real estate rental rates and capital values over the past few years.

Higher housing costs in developed countries also led to a spike in expatriate housing rates in the capital, he said in an e-mail, while a global oil price increase could have also added to transportations costs since the country imports all its oil needs.

“Relatively higher inflation recently also partly contributed to the recent increase in cost of living,” he said.

“However, the COVID-19 pandemic led to some healthy downward correction in the rental/lease rates as well as capital values of housing, after the rising trend in recent years/decades. The pandemic fundamentally reduced demand conditions that also led to some downward correction in the prices of some goods and services in the economy,” Mr. Ricafort added.

Inflation spiked earlier this year as prices of meat products rose due to a supply shortage. Year to date, headline inflation averaged 4.4% as of May, exceeding the central bank’s 2-4% target range.

The BSP expects inflation for 2021 to reach 3.9%.

Manila up two spots in most expensive city list for expats

Reforms may boost LGU property tax haul by P113 billion

PHILIPPINE STAR/ MIGUEL DE GUZMAN

LOCAL GOVERNMENT UNITS (LGUs) could boost their real property tax (RPT) collection by P113.4 billion with the implementation of a project that will digitize their tax valuation and collection processes, the Finance department said.

Data from the Bureau of Local Government Finance (BLGF) showed the Local Governance Reform Project (LGRP) is estimated to increase real property tax collection by 61.7% from the P70.14 billion it collected in 2019.

BLGF Executive Director Niño Raymond B. Alvina said in a statement on Tuesday that the program aims to help at least 1,372 LGUs meet 100% of their collection and valuation targets by 2024, and train over 858 or 50% of 1,715 local assessors to use new digital tools.

Mr. Alvina said the share of RPT to total tax collections by LGUs has been on a downtrend since the Local Government Code was enacted in 1992, since it only makes up 9% of overall tax revenues, compared with business tax collections’ 13% share.

Data from the BLGF showed LGUs collected P70.14 billion in RPT in 2019, or 84% of the P83.77-billion target.

City governments reported the highest collection in 2019 with P48.7 billion, followed by municipalities with P10.87 billion and provinces with P10.58 billion.

In the second quarter of 2020, RPT collections fell by 6% to P46.24 billion year on year and also missed the P56.14-billion target by 17.6%.

The Asian Development Bank (ADB) set aside $26.5 million (P1.32 billion) for the program in July 2020 and an initial $300-million (P15-billion) loan in November 2019. The government also allotted $4.96 million (P242 million) from its budget for the project.

The ADB is planning to lend $400 million (P19.5 billion) more for the program this year.

The LGRP aims to improve property valuation systems of LGUs by deploying digital tools to make reporting more transparent and update the tax maps.

The Interagency Governing Board (IGB), chaired by DoF Secretary Carlos G. Dominguez III, was formed to implement the four-year program.

“This project is quite important. We should put our attention to it because in the end it will help the local governments improve their capacity to raise their own finance,” Mr. Dominguez said during the board’s first meeting on May 18. The IGB will meet every two months.

Once a more integrated and reliable valuation database for properties is established, BLGF’s Mr. Alvina said this could provide better benchmarks as it captures the true market value of land.

The Philippines’ share of property tax collection to the country’s economic output lags behind its Asian peers, he added.

Mr. Alvina said the country’s collections only accounted for 0.5% of GDP in 2019, roughly similar to Thailand, but lower than Singapore’s 2% ratio, Japan’s 2.5% and South Korea’s 3%.

It is also far from the standard of 2% property tax-to-GDP ratio set by the Organization for Economic Cooperation and Development (OECD).

A bill reforming the country’s property valuation system is part of the comprehensive tax reform program of the Duterte administration. — Beatrice M. Laforga