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PHL ASEAN agenda topped by freedom of movement for goods, investment, talent

REUTERS

THE Philippine agenda for its chairmanship of ASEAN will feature enhanced freedom of movement for goods, investment, and talent, Trade Undersecretary Allan B. Gepty said.

At the Public-Private Sector Dialogue on the Philippines 2026 Priority Economic Deliverables, Mr. Gepty said: “We aim to strengthen linkages that allow goods to move faster, investments to flow more freely, talent to circulate more efficiently, and innovation to be shared across borders,” he said.

“To realize this ambition, we have identified five strategic thrusts,” he added, which include strengthening trade and investment linkages in recognition of the role of openness and connectivity in the region’s economic success.

“Yet for ASEAN to remain competitive, we must raise our standards of reliability, security, and interoperability,” he said.

The Philippine stint at steering ASEAN will focus on “deepen(ing) regional connectivity, mindful of the value of security in the region, mobility of our people, energy efficiency, supply chain resilience, and industrial capability in semiconductors in particular,” he added.

The second pillar of the Philippine agenda is accelerating digital transformation to ensure the region’s cohesion and competitiveness, he said.

“Digital technologies are reshaping the global economy at a pace that leaves no room for complacency,” he said.

“Whether through artificial intelligence (AI), the digitalization of supply chains, or the rapid rise of cross-border digital services, ASEAN stands at the threshold of a historic opportunity,” he added.

Next year, the region expects to sign the ASEAN Digital Economy Framework Agreement, which aims to create a unified, interoperable, and innovation-friendly digital economy.

“Interestingly, this agreement has the potential to unlock as much as $1 trillion in additional gross domestic product by enabling digital trade and promoting trusted data governance and secure, seamless digital transactions across borders,” he said.

The next area of focus is the creative economy and innovation, citing their role in driving productivity, competitiveness, and resilience.

“It is important that we unlock the financial value of ideas, inventions, designs, and creative works. It is imperative that our stakeholders should see the value of their intangible assets,” Mr. Gepty said.

“We will empower technology transfer practitioners, startups, artists, and innovators by providing a standardized approach to valuing intangibles across the region,” he added.

The Philippines will also be leading the establishment of the ASEAN Center for Creative Industries.

“The center will be a dynamic hub for policy dialogue, capacity-building programs, and collaborative projects that span digital media, film, music, design, and other creative sectors,” he said.

“Complementing this will be the development of a regional plan of action for AI in healthcare, ensuring that innovation strengthens public health systems and improves the well-being of our people,” Mr. Gepty said.

The Philippines’ next area of focus is to advance sustainable and inclusive economies, reflecting the global imperative to align growth with environmental responsibility and social equity.

“As one of the world’s most climate-vulnerable regions, ASEAN cannot afford to pursue development at the expense of the environment. We need initiatives that help farmers transition to climate-smart practices while improving productivity and food security,” he added.

ASEAN will also step up efforts to promote green investment.

“Our work will extend to sustainable tourism, destination readiness frameworks, and even a regional declaration on sustainable space science to illustrate the depth of ASEAN’s ambition and diversity that require collective action,” he added.

The Philippines will also be pushing for the integration of micro, small and medium enterprises (MSME) into the development agenda.

“This is an area that lies at the heart of inclusive growth. MSMEs account for the majority of ASEAN’s enterprises and employ most of our workers,” he said.

“Under the Philippine chairship, we will advocate for a center tasked with delivering high-quality training, research, mentorship, and enterprise support,” he added. — Justine Irish D. Tabile

Pork, onions, carrots subject to MSRP scheme by Dec. 1

A vendor sells pork products at a market in Pasay City. — PHILIPPINE STAR/RYAN BALDEMOR

THE Department of Agriculture (DA) said it will impose maximum suggested retail prices (MSRP) for pork, onions and carrots by Dec. 1 or earlier to ensure that basic food items stay affordable during the holidays.

The DA said it is planning to impose an MSRP of P370 per kilo for liempo (pork belly) and P340 per kilo for kasim (pork shoulder) and pigue (hind leg).

For both imported and domestically grown white and red onions, the MSRP will be set at P120 per kilo. Imported carrots will also carry an MSRP of P120 per kilo.

The price ceilings, which are expected to remain in force until the end of January, may still be lowered depending on supply conditions, according to the DA.

The DA said it will begin conducting market inspections starting next week to monitor prices.

“We will definitely be conducting rounds starting next week, from Dec. 3 to 5… Most of the products mentioned are imported. We allow imports because the local supply is insufficient. But there is a responsibility to sell these products at fair prices to protect consumers,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said at a briefing.

Mr. Laurel said the DA intends to “avoid spikes, and if possible, reduce prices” during the holidays. — Vonn Andrei E. Villamiel

The invoice: How tiny errors sink big VAT claims

In the intricate landscape of Philippine taxation, the Value-Added Tax (VAT) system stands out as one of the most technical and rigorously enforced. For businesses engaged in zero-rated sales, the ability to claim a refund of input VAT is not merely a matter of financial prudence, but it is essential for maintaining competitiveness and healthy cash flow. Yet, as the recent Court of Tax Appeals (CTA) decision in Ibex Global Solutions (Philippines), Inc. v. Commissioner of Internal Revenue (CTA Case No. 11075) demonstrates, even the smallest lapses in documentation, particularly in the details written on invoices and official receipts, can mean the difference between a successful refund and a costly denial.

The claimant, a business process outsourcing (BPO) company, filed a petition for review before the CTA seeking a refund of input VAT allegedly attributable to its zero-rated sales of services to its foreign affiliate for the quarter ended Sept. 30, 2020. The claimant argued that its sales qualified for VAT zero-rating under Section 108(B)(2) of the National Internal Revenue Code (NIRC), as amended, since the services were rendered to a nonresident foreign corporation, paid in acceptable foreign currency, and accounted for in accordance with Bangko Sentral ng Pilipinas (BSP) rules. Despite these assertions, the Bureau of Internal Revenue (BIR) denied the claim, prompting the company to seek judicial relief.

The CTA’s decision meticulously outlined the legal requisites for a VAT refund claim. These include the timely filing of both administrative and judicial claims, VAT registration, proof that the sales are indeed zero-rated, proper documentation showing that the input VAT was duly paid and attributable to zero-rated sales, and, most importantly, strict compliance with substantiation and invoicing requirements. The Court emphasized that these requirements are not mere technicalities but are essential to the integrity of the VAT system, which relies on a tax credit method and an audit trail to ensure proper tax collection and prevent abuse.

While the claimant was able to establish most of the requisites (i.e., timely filing of the administrative and judicial claim, VAT registration, and the foreign status of the customer), the case ultimately hinged on the invoicing requirements. Section 113 of the NIRC and its implementing regulations require that every VAT official receipt (OR) for the sale of services must indicate, among others, the statement that the seller is VAT-registered with taxpayer identification number (TIN), the total amount paid with VAT indicated, the term “zero-rated sales,” if applicable, the date of transaction, quantity, unit cost, and description of goods or properties or the nature of the services. The Court’s review of the claimant’s supporting ORs revealed a critical deficiency: the ORs did not indicate the nature of the services rendered. Instead, the receipts merely referenced “INWARD,” which pertained to the remittance payment from the foreign client but did not specify the actual services performed.

Although the claimant presented its Amended Articles of Incorporation, BIR Certificate of Registration, and billing statements to demonstrate that it was engaged in the sale of services, the CTA decision made clear that these documents, while relevant for establishing the general business activity and client relationship, are not the primary evidence required for VAT purposes. For substantiating a sale of service in relation to a VAT refund claim, the law and regulations require that the transaction be supported by a VAT OR containing all mandatory information, including the nature of the service rendered. The CTA emphasized that, regardless of the existence of other supporting documents, it is the OR that serves as the principal proof of the sale of service for VAT purposes. In this case, the absence of the nature of the transaction on the ORs proved fatal to the petitioner’s claim, as the CTA held that strict compliance with invoicing requirements is indispensable and cannot be substituted by other forms of documentation.

The CTA underscored that the requirement to state the nature of the transaction is not a mere formality. It serves several vital purposes: allowing the BIR and the courts to verify that the transaction qualifies for zero-rating, providing a clear audit trail linking the payment to the specific service rendered, and preventing taxpayers from claiming input VAT on transactions that do not qualify for zero-rating. Failure to indicate the nature of the service on the OR is fatal to the claim, regardless of the taxpayer’s good faith or the actual occurrence of the transaction.

The CTA’s decision is a masterclass in the doctrine of strictissimi juris, the principle that tax exemptions and refunds must be strictly construed against the taxpayer. The CTA explained that the VAT system is designed to ensure that taxes are collected at every stage of the distribution chain, with the seller’s output tax becoming the buyer’s input tax. This system relies on accurate and complete documentation to function properly. In the case of the claimant, the Court found that while the company had issued VAT zero-rated ORs for its sales to its foreign affiliate, the receipts did not indicate the nature of the services rendered. This omission was fatal. The Court explained that while the accounted zero-rated sales were supported by VAT zero-rated ORs, these were not fully compliant with the prescribed invoicing requirements under the VAT law and regulations, since the ORs lacked the indication of the nature of services rendered by the petitioner. As such, the accounted sales were denied VAT zero-rating.

Tax refund claims, being in the nature of tax exemptions, must be strictly construed against the taxpayer, the burden is on the taxpayer to prove strict compliance with all conditions for the grant of a refund. The instant case is cautionary for all VAT-registered businesses, especially those engaged in zero-rated sales. It highlights the need to review invoices to ensure that all required information, including the nature of the transaction, is clearly indicated on all invoices. It also underscores the importance of training billing and finance teams on the legal requirements and the significance of compliance, conducting regular compliance audits, and maintaining complete and accurate records.

For taxpayers, the case is a reminder that the devil is in the details. Even the most sophisticated tax planning and compliance efforts can be undone by a single missing line on an invoice or official receipt. The case also illustrates the importance of keeping abreast of the latest jurisprudence and regulatory developments, as the requirements for VAT compliance are constantly evolving.

In the world of VAT, there are no shortcuts; only strict adherence to the rules will suffice. As the economy continues to grow and more businesses engage in cross-border transactions, the importance of VAT compliance will only increase. The Ibex case is a timely reminder that the key to successful tax compliance is attention to detail and a commitment to best practices. In the end, the cost of compliance is always less than the cost of non-compliance.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Runell Alvyn V. Sarmiento is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Philippines mulls rate cut to spur demand as scandal hits growth

ELI REMOLONA — BLOOMBERG/LAM YIK

(UPDATE) THE Philippine central bank will consider another reduction in the benchmark interest rate next month to spur demand, its top official said, after the economy was hit by an ongoing corruption scandal.

“The demand is affected, just like investor sentiment,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said in an interview Monday on the sidelines of a BSP forum in the central Philippine province of Bohol. Further easing can help boost demand to support the economy, he said.

Inflation expectations are more or less anchored, and the current picture would give the central bank confidence should it decide to further cut its key rate, Mr. Remolona said at a separate briefing.

The central bank in October unexpectedly reduced its key rate by a quarter percentage point and signaled it may ease further, warning the economic outlook has deteriorated amid the widening corruption scandal involving public funds meant for flood infrastructure projects.

The Southeast Asian economy grew at its slowest pace in four years in the last quarter, after the controversy hampered state spending and hit consumer confidence.

When asked if the magnitude of the rate cut will likely be small, Mr. Remolona said yes, adding that a 50-basis point reduction is unlikely. The policymaking Monetary Board is scheduled to meet on Dec. 11.

He also said there’s no urgency in further reducing banks’ reserve requirement ratio.

Asked about the peso, which fell to a record low last month amid the graft scandal, Mr. Remolona said the central bank doesn’t target a specific level for the currency, and that it only intervenes when the market “is going crazy.” — Bloomberg

Petro Gazz eliminates Creamline, advances to PVL Reinforced semis

FACEBOOK.COM/PREMIERVOLLEYBALLLEAGUE

PETRO GAZZ went to Myla Pablo when it needed her most as it pulled off a 25-23, 25-19, 16-25, 25-14 victory over old rival Creamline on Monday that propelled the former to the semis of the PVL Reinforced Conference at the Smart Araneta Coliseum and the latter to its worst finish.

Ms. Pablo responded when called upon, taking charge after import Lindsey Vander Weide rolled her right ankle early in the opening set and unleashed a match-high 26 points, including 23 on kills, that catapulted the Angels straight to the knockout semis against the Akari Chargers on Thursday also at the Big Dome.

Akari earlier stunned elimination round top seed Farm Fresh, 28-26, 30-28, 25-21, to make it this far.

The result put Petro Gazz in prime position to shoot for a third Reinforced Conference crown and fourth overall.

In contrast, it sent the once proud Rebisco franchise to its most awful performance as it ended its 19-conference medal streak in an impressive span of eight years when it raked in 10 championships, four runner-up performances and third-place finishes.

And it was mainly because of Ms. Pablo.

“It was team depth that helped us,” said Petro Gazz coach Gary Van Sickle.

“I was shocked and a bit worried about what happened to Lindsey,” said Ms. Pablo. “When I entered, I made sure not to feel pressure. It also helped that the whole team really stepped up.”

Ms. Vander Weide, despite the excruciating pain, still managed to return in the fourth set when she helped finish off the Cool Smashers.

“I had complete faith in them but I said if they need me, I’m just here to help the team and I’m ready to go,” said Ms. Vander Weide.

Indeed she was.

“Lindsey is a strong-minded person. When she told me she could go, I felt confident putting her right there,” said Mr. Van Sickle.

PVL Notes: Alas Pilipinas women drew perennial gold medalist Thailand as its first foe set Dec. 11 at the Huamark Indoor Stadium in Bangkok, according to schedule released by the host country on Monday. It clashes with Singapore on Tuesday in its last assignment in Group A. In the men’s side, it will battle Myanmar Dec. 13, Cambodia the next day and Indonesia Dec. 16. — Joey Villar

Four teams clash in pair of NCAA 101 play-in matches

THE JRU BOMBERS and the EAC Generals, who ended up last in Group B, take on each other at 2:30 p.m. — NCAA

Games on Tuesday
(Filoil EcoOil Arena)
8:30 a.m. – LPU vs SSC-R (Jrs)
11 a.m. – LPU vs SSC-R (Srs)
2:30 p.m. – JRU vs EAC (Srs)
5 p.m. – JRU vs San Beda (Jrs)

ONE chance.

That is all Jose Rizal University (JRU), Emilio Aguinaldo College (EAC), Lyceum of the Philippines University (LPU) and San Sebastian College-Recoletos (SSC-R) could afford as they clash in a pair of play-in matches for the last two spots in the NCAA Season 101 quarterfinals at the Filoil EcoOil Arena.

The JRU Bombers and the EAC Generals, who ended up last in Group B, take on each other at 2:30 p.m. while the LPU Pirates and the SSC-R Stags, who finished at the bottom of Group A, collide at 11 a.m. — all eyeing a win that would propel them to the quarters.

It will be the first of the long and hard road to glory for teams that wound up at the rear end after the gruelling eliminations where the top three of each bracket punched outright quarters tickets.

The winner of the JRU-EAC duel will play Group A No. 1 University of Perpetual Help in the quarters while the victor of the LPU-SSC-R showdown tangle with Group B No. 1 San Beda University, both needing to win two in a row to gatecrash into the best-of-three semis.

The quarters are set on Wednesday and Thursday.

While it’s a brutal route, at least they have a chance because unlike in the past when, using the same old Final Four format, the fifth to 10th placed schools were eliminated outright.

“We’re going to hold on to that chance, even if it’s slim,” said JRU’s rookie coach Nani Epondulan. — Joey Villar

AIA Rock ‘n’ Roll Running Series stages its fourth edition

FROM left to right: Media Launch - Rissa C. Guilas, AVP, head of channel management and programming, Cignal TV, Ines Preysler, brand director, Sonak Philippines (ASICS), Melissa Henson, chief marketing officer, AIA Philippines, Cristal Bagatsing, OIC, Dept of Tourism, Culture and Arts Manila, Princess Galura, president and managing director, Sunrise Events, Inc. and Dale Evangelista, director of the Manila Sports Council.

ALMOST 9,000 runners converge at the country’s capital as the world-renowned AIA Rock ‘n’ Roll Running Series stages its fourth edition on Saturday.

Music meets running in the Manila series starting at the KM 0 in Rizal Park for the five-division event spearheaded by the centerpiece 42-km full marathon.

Hundreds of foreign runners are also entered in the Rock ‘n’ Roll Manila, which started as the first Asian city stop in 2022, from a total of 25 countries in hunt for a qualifying time in different international marathons.

For the first time in four editions, the world’s largest running series accredited by PATAFA and World Athletics will also have a 1km category for families and kids, joining the other competitive divisions of 5km, 10km, 21km presented by Pilipinas Live and the full marathon backed by ASICS.

Rock ‘n’ Roll Manila will have 30 music stations from only 12 last year around the Manila route to be headlined by OPM legends Itchyworms, Gracenote, Basti Artadi of Wolfgang, Reujen Lista & the Trinidad Band.

“It’s a running era and we’re happy to sustain the quality and quantity of our runners every year. They’re increasing despite a lot of races in the country,” said Princess Galura, president and managing director of Sunrise Events, Inc. that organizes Rock ‘n’ Roll Manila and IRONMAN marathons, during the media launch on Monday at the Robinsons Manila.

But more than just sports and music, the event in partnership with the City of Manila, Department of Tourism, Culture and Arts of Manila (DTCAM), and Manila Sports Council (MASCO) aims to boast the historic tourism sites of the capital.

From the KM 0 in Luneta, Rock ‘n’ Roll Manila will have a three-loop course along the National Museum, Intramuros, Manila City Hall, Kartilya ng Katipunan, Post Office, Jones Bridge, Chinatown, Binondo Church, Bonifacio Drive and Anda Circle.

With the Manila Bay serving as backdrop, the marathon will finish at the Katigbak Drive in front of the iconic Manila Hotel.

“We have sports, health, music and tourism all in one in Rock ‘n’ Roll Manila. We’re excited,” added Ms. Galura, joined by Rissa C. Guilas (Cignal TV AVP and head of channel management and programming), Ines Preysler (ASICS Philippines brand director), Melissa Henson (AIA Philippines chief marketing officer), Cristal Bagatsing (DTCAM officer-in-charge) and Dale Evangelista (Manila Sports Council director).

Manila Vice Mayor Angela Lei “Chi” Atienza also graced the ribbon cutting ceremony as Rock ‘n’ Roll Manila opened the claiming of race kits from hundreds of early birds. — John Bryan Ulanday

Dallas Cowboys claw back from 14-point deficit to down Eagles

BRANDON AUBREY converted a 42-yard field goal as time expired to lift the Dallas Cowboys to a come-from-behind 24-21 win from a 14-point deficit over the visiting Philadelphia Eagles on Sunday.

Aubrey’s kick, the second game-winner of his career, capped a nine-play, 49-yard drive in the final 1:35. The big play was Dak Prescott’s 24-yard completion to George Pickens that got Dallas (5-5-1) to the Philadelphia 22 with 35 seconds left, forcing the Eagles to use their final timeouts and setting up the clutch field goal.

Prescott hit on 23 of 36 passes for 354 yards with two touchdowns and an interception. His 8-yard scramble with 11:40 left, complete with a somersault into the end zone, tied the game at 21. Pickens grabbed nine balls for 146 yards and a touchdown.

Jalen Hurts completed 27 of 39 throws for 289 yards and a touchdown while also running for two scores. It wasn’t enough to keep the Eagles from dropping to 8-3. Reuters

US, Ukraine to continue work on ‘refined’ peace plan to end war with Russia

Army soldier figurines are displayed in front of the Ukrainian and Russian flag colors background in this illustration taken, Feb. 13, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

GENEVA — The United States and Ukraine were set to continue work on Monday on a plan to end the war with Russia after agreeing to modify an earlier proposal that was widely seen as too favorable to Moscow.

The two sides said in a joint statement they had drafted a “refined peace framework” after talks in Geneva on Sunday, although they did not provide specifics.

The White House separately said the Ukrainian delegation had told them it “reflects their national interests” and “addresses their core strategic requirements,” although Kyiv did not issue a statement of its own.

It was not clear how the updated plan would handle a host of issues, including how to guarantee Ukraine’s security against ongoing threats from Russia. The United States and Ukraine said they would continue “intensive work” ahead of a Thursday deadline, although US Secretary of State Marco Rubio, who led the American delegation during the talks, was flying back to Washington late on Sunday.

US President Donald J. Trump has kept up the pressure on Ukraine to reach a deal. On Sunday, he said Ukraine had shown “zero gratitude” for American efforts over the war, prompting Ukrainian officials to emphasize their thanks for Mr. Trump’s support.

Mr. Trump previously set a Thursday deadline for Ukrainian President Volodymyr Zelensky to accept a peace plan, but Mr. Rubio said on Sunday that deadline might not be set in stone.

Mr. Zelensky could travel to the United States as soon as this week to discuss the most sensitive aspects of the plan with Mr. Trump, according to sources familiar with the matter.

The initial 28-point proposal put forth by the United States last week called on Ukraine to cede territory, accept limits on its military and abandon its ambitions to join the North Atlantic Treaty Organization (NATO). Those terms would amount to capitulation for many Ukrainians after nearly four years of fighting in Europe’s deadliest conflict since World War II.

The original plan came as a surprise to US officials across the administration, and two sources said on Saturday it was crafted at an October meeting in Miami that included special envoy Steve Witkoff, Mr. Trump’s son-in-law Jared Kushner, and Kirill Dmitriev, a Russian envoy who is under US sanctions.

EUROPEAN NATIONS ISSUE COUNTERPROPOSAL
Democratic lawmakers have criticized it as essentially a Russian wish list, but Mr. Rubio has insisted that Washington authored the plan with input from both sides in the war.

European allies said they were not involved in crafting the original plan, and they released a counterproposal on Sunday that would ease some of the proposed territorial concessions and include a NATO-style security guarantee from the United States for Ukraine if it is attacked.

The talks come as Russia has slowly gained ground in some regions, while Ukraine’s power and gas facilities have been pummeled by drone and missile attacks, leaving millions of people without water, heating and power for hours each day.

Mr. Zelensky has also been under pressure at home, as a major corruption scandal has ensnared some of his ministers, stirring fresh anger at pervasive graft. That has complicated the country’s efforts to secure funding to keep its economy afloat.

Kyiv had taken heart in recent weeks after the United States tightened sanctions on Russia’s oil sector, the main source of funding for the war, while its own long-range drone and missile strikes have caused considerable damage to the industry. — Reuters

EU to urge US to apply more of the July trade deal, including cutting steel tariffs

A EUROPEAN UNION’S flag flutters outside the European Commission headquarters in Brussels, Belgium, Oct. 15, 2020. — REUTERS

BRUSSELS — European Union (EU) ministers are set to urge top US trade officials on Monday to apply more of the July EU-US trade deal, such as by cutting US tariffs on EU steel and removing them for EU goods such as wine and spirits.

US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer will meet EU ministers responsible for trade on their first trips to Brussels since taking office.

The EU ministers plan to discuss pressing trade issues, including Chinese rare earth and chip exports restrictions, and host Mr. Lutnick and Mr. Greer for 90 minutes over lunch.

Under the end-July deal, the United States set 15% tariffs on most EU goods, while the European Union agreed to remove many of its duties on US imports.

That may only happen in March or April, given it requires approval from the European Parliament and EU governments, which EU diplomats say has exasperated Washington.

But while insisting the process is on course, the 27-nation bloc is also pointing to agreed items on which it wants to see progress, chief among them steel and aluminum.

The United States has a 50% tariff on the metals and since mid-August has applied this to the metal content in 407 “derivative” products such as motorcycles and refrigerators. More derivatives may be added next month.

EU diplomats say that such actions, along with the prospect of new tariffs on trucks, critical minerals, planes and wind turbines, threaten to hollow out the July accord.

“We’re at a delicate moment,” one EU diplomat said. “The US is looking for reasons to criticize the EU as we are trying to get them to work on steel and other unresolved matters.”

The bloc additionally wants a broader range of its products subject only to low pre-Trump duties. These could include wine and spirits, olives and pasta.

The EU is also ready to discuss areas of possible regulatory cooperation, such as covering cars, the bloc’s proposed purchases of US energy and joint efforts on economic security, particularly in response to Chinese export controls. — Reuters

Toxic mines put Southeast Asia’s rivers, people at risk, study says

STOCK PHOTO | Image by David Hellmann from Unsplash

THA TON, Thailand — For most of her life, 59-year-old farmer Tip Kamlue has irrigated her fields in northern Thailand with the waters of the Kok River, which flows down from neighboring Myanmar before joining with the Mekong River that cuts through Southeast Asia.

But since April, after authorities warned residents to stop using the Kok’s water because of concerns over contamination, Ms. Tip has been using groundwater to grow pumpkins, garlic, sweet corn and okra.

“It’s like half of me has died,” Ms. Tip said, standing by her fields in Tha Ton sub-district, and looking out at the river that she is now forced to shun.

Across mainland Southeast Asia, more than 2,400 mines — many of them illegal and unregulated — could be releasing deadly chemicals such as cyanide and mercury into river water, according to research from the US-based Stimson Center think tank released on Monday.

“The scale is something that’s striking to me,” said Brian Eyler, senior fellow at Stimson, pointing to scores of tributaries of major rivers, like the Mekong, the Salween and the Irrawaddy that are probably highly contaminated.

The Stimson report marks the first comprehensive study of potentially polluting mines in mainland Southeast Asia. Researchers analyzed satellite imagery to identify mining activity including 366 alluvial mining sites, 359 heap leach sites, and 77 rare earth mines draining into the Mekong Basin.

Most alluvial mining sites are gold mines, though some also extract tin and silver. Heap leach mining sites include those for gold, nickel, copper, and manganese extraction.

The Mekong is Asia’s third-largest river and supports the livelihood of more than 70 million people as well as the global export of farm and fisheries products. It was previously perceived to be a clean river system, said Mr. Eyler.

“Because so much of the Mekong Basin is essentially ungoverned by national laws and sensible regulations, the basin is unfortunately ripe for this kind of unregulated activity to occur at a high level of intensity and the huge scale that our data reveals,” he said.

The toxic chemicals released through unregulated rare earths mining include ammonium sulphate, and sodium cyanide and mercury that are used for two different types of gold mining, according to Stimson researchers.

That exposes not only the millions of people who live along the Mekong in Southeast Asia to health risks, but also consumers elsewhere.

“There is not a major supermarket in the US that doesn’t have products from the Mekong Basin, including shrimp, rice and fish,” said Mr. Eyler.

CHINA-BACKED MINING
The emergence of new China-backed rare earth mines in eastern Myanmar, not far from the mountainous border with Thailand, initially set off concerns among researchers of the danger of downstream pollution along the Kok River, including areas like Tha Ton.

The contamination pattern on samples from the Kok River shows the presence of arsenic — linked to rare earth and gold mining — alongside heavy rare earths like dysprosium and terbium, said Tanapon Phenrat of Thailand Science Research and Innovation, a Thai government research agency.

“It has only been two years since the rise of rare earth and gold mining in Myanmar at the Kok River’s source,” said Mr. Tanapon, who conducted testing of the waters this year and warns of a sharp rise in contamination levels unless mining is stopped. Mr. Tanapon was not involved in the Stimson study.

Myanmar, which erupted in conflict after the military seized power in 2021, is one of the world’s largest producers of heavy rare earths, critical minerals infused into magnets that power the likes of wind turbines, electric vehicles and defense systems.

From mining sites in Myanmar, the raw material is transported for processing to China, which has a near-monopoly over production of these vital magnets, with Beijing deploying rare earths as leverage in its tariff war with the US.

Mines across Myanmar and Laos use in-situ leaching for rare earth elements that was initially developed within China, according to Mr. Eyler.

“In general, Chinese nationals work on these mines as managers and technical experts,” he said.

In response to questions from Reuters, China’s foreign ministry said it was not aware of the situation.

“The Chinese side has consistently required overseas Chinese enterprises to conduct their production and business operations in accordance with local laws and regulations, and to adopt stringent measures to protect the environment,” it said.

The Thai government has established three new task forces to coordinate international cooperation, monitor the mines’ health impact and secure alternative supplies for communities along the Kok, Sai, Mekong and Salween rivers, said Deputy Prime Minister Suchart Chomklin.

In northern Tha Ton, signs still hang on a bridge over the Kok River, calling for authorities to shut down the rare earths mines upriver, and farmers like Ms. Tip are desperate for an intervention.

“I just want the Kok River to be the way it used to be — where we could eat from it, bathe in it, play in it, and use it for farming,” she said.

“I hope someone will help make that happen.” — Reuters

Malaysia says it plans to ban social media for under-16s from 2026

A person using a smartphone is seen in front of displayed social media logos in this illustration taken on May 25, 2021. — REUTERS

KUALA LUMPUR — Malaysia plans to ban social media for users under the age of 16 starting from next year, joining a growing list of countries choosing to limit access to digital platforms due to concerns about child safety.

Communications Minister Fahmi Fadzil said on Sunday the government was reviewing mechanisms used to impose age restrictions for social media use in Australia and other nations, citing a need to protect youths from online harms such as cyberbullying, financial scams, and child sexual abuse.

“We hope by next year that social media platforms will comply with the government’s decision to bar those under the age of 16 from opening user accounts,” he told reporters, according to a video of his remarks posted online by local daily The Star.

The effects of social media on children’s health and safety have become a growing global concern, with companies including TikTok, Snapchat, Google and Meta Platforms — the operator of Facebook, Instagram, and Whatsapp — facing lawsuits in the United States for their role in fueling a mental health crisis.

In Australia, social media platforms are poised to deactivate accounts registered to users under 16 next month, under a sweeping ban for teenagers that is being closely watched by regulators around the world.

France, Spain, Italy, Denmark and Greece are also jointly testing a template for an age verification app.

Malaysia’s neighbor Indonesia said in January it planned to set a minimum age for social media users but later issued a less stringent regulation requiring tech platforms to filter negative content and impose stronger age verification measures.

Malaysia has put social media companies under greater scrutiny in recent years in response to what it claims to be a rise in harmful content, including online gambling and posts related to race, religion and royalty.

Platforms and messaging services with more than 8 million users in Malaysia are now required to obtain a license under a new regulation that came into effect in January. — Reuters