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High growth under PNoy Aquino and tax cuts under Duterte

This is a follow up to last week’s piece, “The economic and energy legacy of PNoy Aquino” (June 28). Also good opinion pieces on the late President Benigno “PNoy” Aquino’s administration here in BusinessWorld are “PNoy and inclusion” (June 27) by Dr. Raul Fabella, and “PNoy’s unsung contribution: Rapid industrialization” (July 4) by Andrew Masigan.

A friend and Cabinet Secretary asked if 2020 can be separated in assessing Philippines economic performance. So here I disaggregated the averages from six years to three years under former Presidents Gloria Arroyo and Benigno Aquino III, and current President Rodrigo Duterte.

For comparison and additional context, I included data (as of 2020) on the Philippines’ four neighbors with big populations: Indonesia, which has a population of 270.2 million, Vietnam with 97.4 million, Thailand with 69.8 million, and Myanmar with 53.2 million. The population of the Philippines is 108.8 million.

I used four sources in constructing Table 1: the IMF, World Economic Outlook (WEO) database April 2021 for GDP growth; ADB, Key Indicators for Asia and the Pacific 2020 for unemployment rate and labor force participation rate until 2019; Trading Economics for labor data 2020; and the Philippine Statistics Authority (PSA) for the Philippines labor force survey October 2020.

The numbers in Table 1 show the following:

1. GDP growth: The 6.6% growth in 2014-2016 — PNoy’s last three years — would be the highest economic achievement for the past four decades or more in the Philippines. The 6.4% in 2017-2019 (the Duterte administration) was also high, but growth momentum has been reversed. The -9.6% contraction in 2020 was the worst since post WWII records.

Myanmar is the most dynamic economy in the ASEAN and perhaps in the world today. It was growing 12% to 15% a year from 2000 to 2007, and managed to grow 3.2% in 2020.

2. Unemployment rate: PNoy significantly reduced joblessness, from 7.4% of the labor force in 2010 to 5.4% in 2016. President Duterte has continued the unemployment decline to 5.1% in 2019, but this quickly jumped to 8.7% in October 2020 due to indefinite lockdowns and many business and school closures.

3. Labor force participation rate (LFPR): This is an indicator of job optimism or pessimism. If many people, the younger ones especially, think that there are no jobs available anyway, they stop looking for a job and pursue additional studies and are not counted as unemployed. LFPR declines as an indicator of job pessimism, and this is evident under the Duterte administration starting 2017. For the first time since the 1990s and perhaps the 1970s and ’80s, the LFPR is below 62%. Then it further worsened to 59% in 2020.

Filipinos and Philippine-based businesses have much to thank in the administration of PNoy Aquino.

The Duterte administration, however, should be credited for one important achievement — reducing the Philippines’ high corporate income tax (CIT) as a response to continuing tax competition in the ASEAN.

The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act of 2021 (RA 11534) has reduced the CIT, retroactive to July 2020, to 25% for big corporations and 20% for small and medium enterprises (SMEs) with net taxable income of P5 million or lower, and total assets of P100 million or lower excluding land.

Until the first half of 2020, the Philippines had the highest CIT at 30% while Singapore had the lowest with only 17%, followed by Brunei with 18.5%. Five neighbors have 20% CIT — Cambodia, Laos, Indonesia, Thailand and Vietnam. Malaysia and Myanmar have 24% and 25%, respectively (see Table 2).

Recently, Finance Ministers and Treasury Secretaries in the US and Europe have pushed for a global minimum tax (GMT) of 15%, tax harmonization, and killing tax competition worldwide. Their plan is to impose the GMT on companies where they do most business, not on where they are based or headquartered.

Global tax competition is dynamic. See these countries and economies with low CIT or even zero CIT:

• Zero CIT: Bahamas, Bahrain, Bermuda, the Cayman Islands, the Isle of Man, the United Arab Emirates (UAE), and Vanuatu.

• 3-9% CIT: Micronesia 3%, Barbados 5.5%, Uzbekistan 7.5%, and Hungary and Montenegro 9%.

• 10% flat CIT: Bosnia and Herzegovina, Bulgaria, Kosovo, Macedonia, Paraguay, and Qatar.

• 12-12.5% CIT: Macau, Moldova, Cyprus, Ireland, and Liechtenstein.

Small countries have few natural resources and small land area, or they may have big resources like oil and gas but they lack highly technical people to develop and extract those resources, they attract businesses and professionals via low or zero CIT. Qatar, Bahrain, and the UAE are doing this.

The move to a GMT of 15% is not good. We should see more tax competition, not tax harmonization and higher taxes.

 

Bienvenido S. Oplas, Jr. is the Director for Communication and Corporate Affairs, Alas Oplas & Co. CPAs

nonoyoplas@alasoplascpas.com

China’s Xi, Europe leaders said to plan talks as tensions flare

REUTERS

CHINA’s Xi Jinping is expected to speak this week with Germany’s Angela Merkel and France’s Emmanuel Macron, people with knowledge of the matter said, as they attempt to keep human rights disputes from scuttling efforts at cooperation.

The agenda for the joint video call between the leaders isn’t yet known, according to the people, who asked not to be named since the information isn’t public. The French and German leaders have held similar discussions with Mr. Xi in the past, including a Dec. 30 call with top European Union (EU) officials that resulted in a now-stalled investment agreement.

China’s Foreign Ministry didn’t immediately reply to a request for comment. Officials with the French and German governments didn’t confirm that the call would go ahead.

China-EU ties have frayed this year amid an upsurge in negative views toward Beijing in Europe and US President Joseph R. Biden’s effort to press traditional American allies to make a united defense of democracy and human rights. China’s crackdown on its Uyghur minority in Xinjiang has emerged as a key point of tension, with the two sides sanctioning each other’s officials and EU lawmakers in May halting ratification of the Comprehensive Agreement on Investment.

The two sides have also clashed over Group of Seven (G7) and North Atlantic Treaty Organization statements expressing concern about China’s challenge to the established global order. Ms. Merkel and Mr. Macron have advocated a middle ground with China, whose cooperation is vital to global efforts to fight climate change and the coronavirus disease 2019 (COVID-19) pandemic.

Mr. Macron hosted a climate-focused call with Ms. Merkel and Mr. Xi in April, days before a wider climate summit hosted by Mr. Biden. At the time, the European leaders welcomed Mr. Xi’s renewed commitment for China to achieve CO2 neutrality by 2060. The trio also discussed the coronavirus pandemic and global vaccine availability.

China accounted for almost $700 billion of trade with the European Union last year, and Mr. Macron is said to be keen to give a new push to the interests of the aviation company Airbus SE. The Europeans also want China to ease travel restrictions into China for EU citizens, especially business people.

Last month, the G7, which includes France and Germany, joined the EU and the US in pushing for a fresh World Health Organization probe into the origins of the coronavirus pandemic. Chinese diplomats have lashed out against such calls, which Beijing has dismissed as a US-led effort to shift the blame for its own struggle to contain the virus last year.

Still, the Uyghur issue has been the most contentious, with China denying claims it forced ethnic Muslims into internment camps, work programs and birth-control initiatives. A French prosecutor’s office has launched a probe into whether Claudie Pierlot parent SMCP SA, Zara owner Inditex SA, Skechers and Uniqlo profited from exploiting forced labor in China to manufacture fashion products.

Mr. Xi has signaled a defiant stance toward what Beijing views as foreign interference, saying in a nationally televised speech to mark the 100th anniversary of the Communist Party that China would no longer listen to “sanctimonious preaching.” Chinese Foreign Minister Wang Yi echoed that sentiment Saturday at a forum in Beijing, in which he accused the US and its allies of holding onto a “Cold War mentality.”

“Today’s China is no longer the same country of 100 years ago,” Mr. Wang told the World Peace Forum, which was organized by Tsinghua University and the Chinese People’s Institute of Foreign Affairs, a government-run policy group. “No individual or force should underestimate the determination and capacity of the Chinese people to uphold the country’s sovereignty, security and development interests.”

During a panel discussion at the same forum, leading European diplomats called on China to listen to international concerns. Caroline Wilson, the UK’s ambassador to China, told the panel Sunday that human rights issues were “foundational matters” and not tools in a geopolitical game.

Nicolas Chapuis, the European Union’s ambassador, expressed “dismay” in China’s more aggressive approach. “Effective multilateralism implies that all nations, big and small, sit at the same table with the same rights, and most importantly, accept peer review in a tolerant and constructive manner,” Mr. Chapuis said.

The Italian ambassador to China, Luca Ferrari, said on the Sunday panel that the sanctions have been the “main shadow” on the relationship between Beijing and the EU. He called on China to relook at the sanctions to “come out of this conundrum.” — Bloomberg

Hackers demand $70M from companies hit in cyberattack 

WASHINGTON — Hackers suspected to be behind a mass extortion attack that affected hundreds of companies worldwide late on Sunday demanded $70 million to restore the data they are holding ransom, according to a posting on a dark web site.

The demand was posted on a blog typically used by the REvil cybercrime gang, a Russia-linked group that is counted among the cybercriminal world’s most prolific extortionists.

The gang has an affiliate structure, occasionally making it difficult to determine who speaks on the hackers’ behalf, but Allan Liska of cybersecurity firm Recorded Future said the message “almost certainly” came from REvil’s core leadership.

The group has not responded to an attempt by Reuters to reach it for comment.

REvil’s ransomware attack, which the group executed on Friday, was among the most dramatic in a series of increasingly attention-grabbing hacks.

The gang broke into Kaseya, a Miami-based information technology firm, and used their access to breach some of its clients’ clients, setting off a chain reaction that quickly paralyzed the computers of hundreds of firms worldwide.

An executive at Kaseya said the company was aware of the ransom demand but did not immediately return further messages seeking comment.

About a dozen different countries were affected, according to research published https://www.welivesecurity.com/2021/07/03/kaseya-supply-chain-attack-what-we-know-so-far by cybersecurity firm ESET.

In at least one case, the disruption spilled out into the public domain when Swedish Coop grocery store chain had to close hundreds of stores on Saturday because its cash registers had been knocked offline as a consequence of the attack. .

Earlier on Sunday, the White House said it was reaching out to victims of the outbreak “to provide assistance based upon an assessment of national risk.”

The impact of the intrusion is still coming into focus.

Those hit included schools, small public-sector bodies, travel and leisure organizations, credit unions and accountants, said Ross McKerchar, chief information security officer at Sophos Group Plc.

McKerchar’s company was one of several that had blamed REvil for the attack, but Sunday’s statement was the group’s first public acknowledgement that it was behind the campaign.

Ransom-seeking hackers have tended to favor more focused shakedowns against single, high-value targets like Brazilian meatpacker JBS, whose production was disrupted last month when REvil attacked its systems. JBS said it ended up paying the hackers $11 million.

Liska said he believed the hackers had bitten off more than they could chew by scrambling the data of hundreds of companies at a time and that the $70 million demand was an effort to make the best of an awkward situation.

“For all of their big talk on their blog, I think this got way out of hand,” he said. — Reuters

Americans’ July Fourth festivities sparkle after last year’s pandemic cancellations

REUTERS
A child holds a US flag as she watches the Macy’s Fourth of July fireworks in New York City, New York, US, July 4, 2021. — REUTERS/ANDREW KELLY

NEW YORK — Americans marked their nation’s 245th birthday on Sunday with fireworks that may look brighter, hot dogs that may taste juicier and marching bands that may sound jauntier after the coronavirus pandemic forced the cancellation of nearly all celebrations last year.

As always, fireworks displays are the highlight of the July Fourth holiday. Two of the biggest pyrotechnic shows in the country will blast off over the National Mall in Washington, and over a mile stretch of New York City’s East River, separating Manhattan from the boroughs of Queens and Brooklyn.

Despite being scaled back by COVID-19, Nathan’s Famous Hot Dog Eating Contest at Brooklyn’s Coney Island thrilled socially distanced crowds when reigning champion Joey Chestnut shattered his own world record by downing 76 hot dogs and buns in 10 minutes. That was one more than he gobbled last year and marked his 14th win.

This year’s Independence Day holiday, following 600,000 US deaths from coronavirus disease 2019 (COVID-19) and amid a rise in the more aggressive Delta variant, was a time for Americans to show their patriotism and celebrate a personal sense of freedom by mingling with friends again and enjoying summer’s simple pleasures.

But the occasion was not entirely carefree. The US Department of Homeland Security warned state and local police last week of a heightened threat of violence by domestic extremist groups amid relaxed COVID-19 restrictions and the July Fourth holiday.

It was expected to be the busiest July Fourth road travel holiday on record — with an estimated 43.6 million Americans behind the wheel, or 5% more than a previous record set in 2019, the American Automobile Association said.

At Independence Hall in Philadelphia, first lady Jill Biden told a crowd: “The clouds have broken” after a long, dreary winter of isolation battling COVID-19 along with efforts to meet her husband’s goal of getting 70% of US adults their first shot by July Fourth. The government calculated the number at about 67%, as some people have resisted getting vaccinated.

“We’re not at the finish line yet, but summer has never felt more full of possibility, and doesn’t the air smell so much sweeter without our masks?” the first lady said.

Unvaccinated attendees must wear a mask at an evening celebration for 1,000 people on the White House lawn that President Joseph R. Biden and the first lady are hosting for essential workers and military families, officials said. 

The US Secret Service said authorities removed barriers at the White House that were erected in recent years to increase security. The change allows visitors to get right up to the fence of the White House.

The president is hosting the event three days after his visit to Surfside, Florida, to console families whose loved ones were in a condo tower that collapsed on June 24. Several Florida communities canceled their July Fourth fireworks out of respect for those affected by the tragedy, city officials said.

RECONNECTING
The holiday meant a chance for Aleksandra Magidoff, a 12-year-old girl from Brooklyn, to travel to a New Jersey suburb to reconnect with a lifelong friend and her family. They were among the more than 3.5 million people who have moved out of New York, once the US epicenter of COVID-19, since the pandemic started in the spring of 2020.

“I’m so excited — I can talk to them and celebrate with them and just socialize!” said Ms. Magidoff, who was fully vaccinated under the enormous blue whale model at the American Museum of Natural History in New York. The girls planned to gorge on “a bunch of hamburgers and hot dogs” before taking in the fireworks show at a New Jersey fairgrounds, she said.

Last July Fourth, she watched fireworks from her apartment building’s rooftop while under pandemic lockdown, allowed to celebrate with only her immediate family.

Earlier on Sunday in Washington, marching bands stepped off in a traditional parade on Capitol Hill’s Barracks Row. As darkness falls, the National Mall was expected to draw big crowds to a 17-minute fireworks display set off from both sides of the Lincoln Memorial Reflecting Pool.

On New York’s East River, 50 pyrotechnicians have spent days loading more than 65,000 shells on five barges to wow audiences watching the spectacular show either in person or on television. The display is presented by Macy’s department store.

Lighting up the night’s sky not only delights crowds but promises to restore a lifeline this year for the businesses that supply the 16,000 July Fourth fireworks displays that typically occur in cities and towns. Last year, only a “scant few” went on with the show, said Julie Heckman, executive director of the American Pyrotechnics Association.

“Approximately 70% are scheduled to return, and many will be bigger and better than pre-pandemic levels,” Heckman said.

But for some, the holiday was somber.

In addition to the pall cast over the country by the pandemic and the Florida building collapse, the US West faces a heightened risk of wildfires after a scorching heat wave and extremely dry conditions. Nationwide supply-chain glitches tied to the pandemic have jacked up prices of everything from household items to fireworks. — Reuters

PLDT assures stronger commitment to ESG Sustainability Goals under new leadership

The country’s largest fully integrated telco provider PLDT recently announced that it is reaffirming its group-wide commitment to align more business initiatives that contribute to the United Nations’ Sustainability Development Goals (UNSDGs) during the recently organized BusinessWorld Economic Forum on how ESG Criteria guides Leading Companies.

Joined by other panel experts in the group, PLDT Investor Relations Head and newly appointed Head of the Sustainability Office Melissa Vergel de Dios explained how PLDT is reinforcing its programs on sustainability, to focus on more initiatives under the Environment, Social, and Governance pillars that are closely aligned with the business and its purpose of “Connecting and Empowering Filipinos everywhere.”

“A key success factor for sustainability efforts within a company is that it should be high in the CEO agenda. PLDT’s focus on sustainability began under our Chairman, Manny Pangilinan, and I’m happy to share that our new CEO, Al Panlilio, is taking sustainability a notch higher. His direction is to ensure that sustainability is incorporated in the strategies for our three areas of focus, namely: customer experience, digitalization, and operating efficiencies,” Vergel de Dios said.

For the PLDT Group, Vergel de Dios shared three guiding principles which determine the sustainability programs to pursue. First, the project should be scalable – so less of the one-offs, and more of those that can be grown or nurtured. Second, the project should be sustainable – meaning less reliance on continuous funding and handouts. And most importantly, it should be tightly linked to the business.

Among its green initiatives, the PLDT Group deployed the country’s first carbon fiber cell tower to start off an initial roll out in more urban rooftops. Manufacturing carbon fiber towers produces less carbon dioxide as compared to the process of producing steel by up to 70 per cent. Cell sites using carbon fiber towers also occupy less space, lessening the company’s land use.

“We are also deploying green towers which use fuel cell technology that emits less carbon dioxide. In addition, fuel cell towers are cost effective and operate with minimal downtime, supporting our focus on CX and cost efficiencies,” added Vergel de Dios.

PLDT also recently announced a Green Fleet Program that includes the use of electric vehicles as part of its re-fleeting strategy.

The PLDT Group is part of the broader MVP Group where the Meralco organization, including MSERV, can easily assist and provide expertise on energy efficiency and green sources of power.

In line with its purpose and business of connectivity, Vergel de Dios also highlighted the group’s efforts in safeguarding its customers from the dangers of going online.

“While connectivity opens up a whole new world for users, including access to information, education, livelihood opportunities and entertainment, there are attendant dangers that we have a responsibility to address. In line with this, we have robust and extensive cybersecurity and data privacy solutions in place as we commit to providing a safe online environment for our customers, including children,” she said.

PLDT has been a staunch advocate and partner among global organizations who fight to protect children against online sexual abuse and explicit content or OSAEC. PLDT and Smart are in fact the first in the Philippines to join the UK-based Internet Watch Foundation (IWF), a global coalition of more than 150 organizations. Since joining, PLDT has successfully blocked over 10,000 links to child abuse material.

In its portfolio, PLDT and Smart have several other sustainability initiatives to roll out soon that not only benefit communities and stakeholders, but will benefit the business in the long-run.

Vergel de Dios summed up PLDT’s outlook in developing and nurturing their programs, how “sustainability is a journey, a continuing work in progress which should be tightly linked to the business. It is not a competition; rather it is about each of us doing our part to achieve a common objective as stewards of this planet for the next generation.”

Last year, PLDT and Smart joined over 1,000 international leaders when they signified their respective companies’ commitments to the United Nations Global Compact (UNGC) by signing the “Statement from Business Leaders for Renewed Global Cooperation.” PLDT and Smart are registered under the UNGC as the only Philippine telco participants, a tier higher than signatories limited to local engagement. Participants actively engage with the UNGC at the global level to integrate into their companies’ operations, the organization’s Ten Principles on human rights, labor, environment and anti-corruption.

Vivo Becomes World’s Second-fastest Growing 5G Smartphone Brand, According to Strategy Analytics

vivo dominates the smartphone industy with its leading-edge 5G development. In the photo: vivo V21 5G in Dusk Blue. Visit https://www.vivoglobal.ph/phone/vivo-V21-5g/ to know more about this smartphone.

Global tech brand vivo became the second-fastest growing 5Gsmartphone worldwide in the first quarter of 2021. It has a quarter-on-quarter growth rate of 62%, with 19 million units shipped. China and Europe remains to be its strongholds, according to a new research from Strategy Analytics.

vivo continues to be a strong advocate of 5G development. The brand has made remarkable progress in 5G standards and core technologies, committed to providing users with a growing range of 5G mobile phones and an improved 5G experience.

vivois inthe top five best-selling 5G smartphone brands, with19 million units sold and 62% quarter-on-quarter growth in 2021.

Celebrating nation’s birth, Biden urges Americans to help end COVID-19 pandemic

Image via whitehouse.gov

US President Joseph R. Biden, Jr., celebrated the nation’s 245th birthday on Sunday by opening the gates of the White House and calling on Americans to do their part to end the coronavirus disease 2019 (COVID-19) pandemic once and for all. 

“This year, the Fourth of July is a day of special celebration for we are emerging from the darkness of … a year of pandemic and isolation, a year of pain, fear and heartbreaking loss,” Mr. Biden told a White House party opened to around 1,000 people, including military families and workers involved in the coronavirus disease 2019 (COVID-19) response. 

“We never again want to be where we were a year ago today,” he added. 

The largest White House event since Mr. Biden took office in January included burgers and fireworks and was geared toward giving Americans something to celebrate as signs of normalcy have returned following a coronavirus pandemic that has killed more than 600,000 Americans. 

Still, the country has fallen short of Mr. Biden’s goal to have 70% of US adults get at least one vaccine shot by Sunday. The figure is around 67%, as some people have resisted getting inoculated, raising concerns among health officials as the more aggressive Delta variant threatens to generate another surge. 

Mr. Biden mourned the people who died, praised Americans who aided in the country’s emergency response and said vaccines were the best defense against new variants of the virus. 

“It’s the most patriotic thing you can do,” he said of getting vaccinated. 

But his administration was also eager to celebrate what it sees as its signature accomplishment — restoring some normality for a country weary of pandemic restrictions and hardship, burdens that have eased but not disappeared with the widespread availability of inoculations. 

The pandemic forced cancellation of nearly all celebrations last year and led to a toned-down January inauguration for the Democratic president, who had to do without traditional black-tie galas and bipartisan comity as Republican former President Donald J. Trump disputed his election loss. 

Fortress-like security around Washington following the Jan. 6 attack on the U.S. Capitol was eased as crowds marked the Declaration of Independence from Britain in 1776. 

Fencing surrounding the White House has been dramatically scaled back, and the streets filled on Sunday with people who snapped photographs of the president’s motorcade returning from a weekend trip to a Michigan cherry farm, the golf course and his Delaware family home. 

Speaking to people on the south lawn of the White House who had shed their masks to eat watermelon slices and drink beer, Mr. Biden said the coronavirus “no longer paralyzes our nation, and it’s in our power to make sure it never does again.” 

After the speech, the president greeted guests and posed for photographs ahead of a 17-minute fireworks display to be set off later from both sides of the Lincoln Memorial Reflecting Pool. — Trevor Hunnicutt/Reuters

White House reaching out with assistance to latest ransomware victims

UNSPLASH

WASHINGTON — The White House said on Sunday it was reaching out to victims of a wide-ranging ransomware outbreak that is centered on a Florida-based information technology company and has had an impact on hundreds of businesses worldwide. 

Miami-based Kaseya has said that fewer than 60 of its customers had been “directly affected” by the attack. 

But the full impact of the intrusion is still coming into focus, in part because the Kaseya software tool commandeered by the cyber criminals is used by so-called managed service providers, outsourcing shops that other businesses use to handle their back-office IT work, like installing updates. 

One cybersecurity executive said his company alone had seen 350 customers attacked. 

The White House deputy national security adviser for cyber and emerging technology, Anne Neuberger, said in a statement that the FBI and the Department of Homeland Security’s cyber arm “will reach out to identified victims to provide assistance based upon an assessment of national risk.” 

President Joseph R. Biden, Jr., said on Saturday he directed US intelligence agencies to investigate who was behind the ransomware attack. 

Security firm Huntress Labs said on Friday it believed the Russia-linked REvil ransomware gang was to blame for the latest outbreak. Last month, the FBI blamed the same group for paralyzing meat packer JBS SA. 

Kaseya said on Sunday that it hired cybersecurity company FireEye Inc to help deal with the fallout of the breach. 

“The two biggest regions we’ve seen are USA and Germany,” Ross McKerchar, chief information security officer at Sophos Group Plc, said of the impact from the latest ransomware. 

Those affected included schools, small public-sector bodies, travel and leisure organizations, credit unions and accountants, he said. 

The rash of German victims may be due to a major provider there having been compromised. Germany’s federal cybersecurity watchdog said on Sunday an unidentified IT service provider that looks after several thousand customers had been hit. 

In some cases, chain reactions fed more widespread disruption. 

The Swedish Coop grocery store chain had to close hundreds of stores on Saturday because its cash registers are run by Visma Esscom, which manages servers for a number of Swedish businesses and in turn uses Kaseya. 

Mr. McKerchar said the wave of disruption was another illustration of how difficult it was for modestly sized businesses to beat back increasingly well-funded cyber-criminal gangs. 

“Small businesses are outgunned when it comes to cybersecurity,” he said. — Raphael Satter and Trevor Hunnicutt/Reuters 

Queen Elizabeth honors Britain’s health service for pandemic work

Image via Duncan C/Flickr/CC BY-NC 2.0

LONDON — Queen Elizabeth has awarded Britain’s National Health Service (NHS) the George Cross — the highest civilian gallantry award — in recognition of 73 years of dedicated service, including during the coronavirus disease 2019 (COVID-19) pandemic. 

The honor has only been bestowed collectively twice before, and only once by the queen. 

Prime Minister Boris Johnson said the award was a symbol of the nation’s gratitude. 

“NHS staff have cared for us and our friends and family on the frontline of a pandemic for over a year, and I have witnessed their courage first-hand,” Mr. Johnson, who was treated by the NHS in intensive care with COVID-19 last year, said. 

“I know the whole of the UK is behind me in paying tribute and giving thanks for everything the NHS has done for us, not only in the last year, but since its inception.” 

The NHS was established in 1948 as the centerpiece of social reforms following World War Two, with a mission to provide state-funded comprehensive universal healthcare. 

NHS Chief Executive Simon Stevens said the honor recognized the skill, compassion, and fortitude of staff right across the service in responding to the worst pandemic in a century. 

“Out of those dark times have come the best of what it means to be a carer and a health professional,” he said. 

“In the face of adversity, we have seen extraordinary team work, not just across the NHS but involving hundreds of thousands of volunteers, millions of carers, key workers and the British public who have played an indispensable role in helping the health service to look after many hundreds of thousands of seriously ill patients with coronavirus.” 

The George Cross was first bestowed collectively to the people of Malta in 1942 by Queen Elizabeth’s father, King George VI, and to the Royal Ulster Constabulary by the queen in 1999. — Reuters

Saudi Arabia pushes back on UAE opposition to OPEC+ deal

PXHERE

DUBAI — Saudi Arabia’s energy minister pushed back on Sunday against opposition by fellow Gulf producer the United Arab Emirates (UAE) to a proposed OPEC+ deal and called for “compromise and rationality” to secure agreement when the group reconvenes on Monday. 

It was a rare public spat between allies whose national interests have increasingly diverged, spilling over into OPEC+ policy setting at a time consumers want more crude to aid a global recovery from the coronavirus disease 2019 (COVID-19) pandemic. 

OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies, voted on Friday to raise output by some 2 million barrels per day (bpd) from August to December 2021 and to extend remaining cuts to the end of 2022, but UAE objections prevented agreement, sources had said. 

“The extension is the basis and not a secondary issue,” Saudi Energy Minister Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel. 

“You have to balance addressing the current market situation with maintaining the ability to react to future developments … if everyone wants to raise production then there has to be an extension,” he said, noting uncertainty about the course of the pandemic and output from Iran and Venezuela. 

The UAE said on Sunday it backs an output increase from August but suggested deferring to another meeting the decision on extending the supply pact. It said baseline production references — the level from which any cuts are calculated — should be reviewed for any extension. 

The standoff could delay plans to pump more oil through to the end of the year to cool oil prices. 

“Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. … Some compromise and some rationality is what will save us,” the Saudi energy minister said. 

“We are looking for a way to balance the interests of producer and consumer countries and for market stability in general, especially when shortages are expected due to the decrease in stockpiles,” he added. 

Responding to oil demand destruction caused by the COVID-19 pandemic, OPEC+ agreed last year to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd. 

OPEC+ sources said the UAE contended its baseline was originally set too low, but was ready to tolerate if the deal ended in April 2022. The UAE has ambitious production plans and has invested billions of dollars to boost capacity. 

Prince Abdulaziz, who stressed Riyadh’s “sacrifice” in making voluntary cuts, said no country should use a single month as a baseline reference, adding there was a mechanism to file objections and that “selectivity is difficult.” 

The regional alliance that saw Saudi Arabia and the UAE join forces to project power in the Middle East and beyond — coordinating use of financial clout and, in Yemen, military force — has loosened as national interests came to the fore. 

Abu Dhabi extricated itself from the Yemen war in 2019, saddling Riyadh. Saudi Arabia this year took the lead to end a row with Qatar despite reluctance from its Arab allies. 

The kingdom has also moved to challenge the UAE’s dominance as the region’s business and tourism hub as Riyadh vies for foreign capital to diversify its economy away from oil. — Marwa Rashad and Ghaida Ghantous/Reuters 

Philippine military says crashed aircraft was in “very good condition”

MANILA – A Philippine military Lockheed C-130 transport aircraft that crashed at the weekend, killing 47 people, was in “very good condition” and followed specified operating protocols, a military spokesman said on Monday.

Colonel Edgard Arevalo also said the military was determined to find out what caused Sunday’s tragic incident that also left 49 people injured. — Reuters

Canada’s Hong Kong diaspora helps new arrivals with jobs, housing, psychotherapy 

Image via Aaron Davis/CC BY-SA 4.0/Wikimedia Commons

OTTAWA — Hong Kongers in Canada are banding together to help the latest wave of immigrants fleeing Beijing’s tightening grip on their city. 

Networks across the country, some descended from groups set up after China’s crackdown on Tiananmen Square protesters in 1989, are offering new arrivals everything from jobs and accommodation to legal and mental health services and even car rides to the grocery store. 

“We are in a battle. These are my comrades, people who share the same values,” one 38-year-old who asked to be identified only as Ho told Reuters. “Who is going to provide that helping hand if I’m not going to?” 

Ho runs a cooking school near Toronto, and said he hired a former aide to a Hong Kong democratic politician to promote his business online, and recently took on a new kitchen assistant who took part in the city’s 2019 pro-democracy protests. 

Ho, who came to Canada as a teenager before Britain handed Hong Kong back to China in 1997, is just one person helping the network of support groups that have been formed in Toronto, Vancouver, Calgary, and Edmonton in the past two years. 

Immigrants looking after each other is not unique. But people in Canada, which has one of the world’s biggest overseas concentrations of people from Hong Kong, told Reuters the situation is urgent because many of the people they are seeking to help fear they will be arrested for taking part in past protests and may not be able to afford professional help to resettle overseas. 

“It’s my natural duty,” said Ho, who asked not to be identified by his full name, and did not name his new employees, for fear of problems with Hong Kong authorities. “If I was in Hong Kong, I would be in a desperate position. If there was a helping hand, I would hold onto it.” 

Beijing imposed a sweeping national security law on Hong Kong a year ago, outlawing a wide range of political activities and effectively putting an end to public protests. Many pro-democracy activists and politicians, including prominent Beijing critics Joshua Wong and Jimmy Lai, have been arrested under the new law or for protest-related offences. Many people have already left the territory. 

The Hong Kong government and China say the law was necessary to restore stability after the sometimes violent protests of 2019, and that it preserves freedoms guaranteed by Beijing after Britain handed Hong Kong back to China. 

“The Hong Kong national security law upholds the rights and freedoms of Hong Kong people,” said a spokesperson for Hong Kong’s Security Bureau. “Any law enforcement actions taken by Hong Kong law enforcement agencies are based on evidence, strictly according to the law, for the acts of the persons or entities concerned.” 

CANADIAN ‘PARENTS’ 

Britain and Canada are two of the most popular destinations for people leaving Hong Kong after the imposition of the national security law. 

Some 34,000 people applied to live in Britain in the first two months after the country introduced a new fast-track to residency for Hong Kongers earlier this year, according to the Migration Observatory at the University of Oxford, citing government data. 

About a fifth of that number applied for temporary and permanent residency in Canada in the first four months of this year, according to the government. The total number of Hong Kongers going to Canada is likely larger but hard to track as many already hold Canadian passports from earlier waves of emigration. 

Hundreds of thousands of Hong Kongers moved there in the 1980s and 1990s for fear they would lose wealth and property, or much of their freedom, after Communist Party-ruled China took back control of the city. 

But the city prospered and retained freedoms unavailable in mainland China, so many Hong Kongers returned home, or kept a foot in each country. The latest wave of emigration looks more likely to be permanent, as China stamps its authority on Hong Kong. 

Canada loosened its restrictions on admitting Hong Kongers after the imposition of the national security law last year. It set up a new work visa program aimed chiefly at young Hong Kongers with a degree or diploma from a post-secondary institution in the last five years, along with two pathways to permanent residency for Hong Kongers in Canada who have recently worked or completed post-secondary studies in the country. 

The new coronavirus has complicated matters for new arrivals. Under Canada’s latest travel restrictions, even those who have obtained permission to live and work in Canada through the new program are only allowed to enter the country if they have a job offer. 

That is where the support network comes in. The Toronto Hong Kong Parent Group has so far assisted 40 people, half of whom have already received three-year permits, according to Eric Li, co-founder of the group and former president of the Canada-Hong Kong Link, a rights advocacy organization established in 1997. 

Mr. Li said the group has encouraged 20 employers to offer jobs to people arriving from Hong Kong, including Ho’s cooking school, restaurants, a construction company, a travel agency, and a family who hired a Cantonese tutor for their children. 

The Toronto group also has interpreters, lawyers and psychotherapists on hand to help new arrivals and has 10 rooms it can provide as free, temporary accommodation. The rooms are in the members’ or their friends’ homes. 

Volunteers in Calgary said they have helped at least 29 asylum seekers, picking many up from the airport and driving them to doctors’ offices, grocery stores and banks. 

STEPPING STONE 

Canada has long had one of the largest populations of overseas Hong Kongers, some of whom came together in 2019 to hold rallies in solidarity with the protests back home. 

Many of the new groups can trace their roots to activist organizations that formed in response to Beijing’s crackdown on pro-democracy protesters in and around Tiananmen Square in 1989, or the 1997 handover. The groups already have contacts with social agencies, such as Community Family Services of Ontario or the York Support Services Network, or with churches and professionals willing to help. 

The Vancouver Parent Group, supported by the Vancouver Society in Support of Democratic Movement that formed in 1989, has raised more than C$80,000 ($65,963) to help Hong Kong protesters settling in Canada with living costs and legal fees. 

Vancouver “parents” show new arrivals how to navigate public transport or get a library card, and organize donations of winter clothing or kitchenware, according to Ken Tung, one of the volunteers. 

Mr. Tung said their aim is to “give them a stepping stone to move on.” 

Alison, a protester who left Hong Kong last year after many of her friends there were arrested for taking part in protests, was one of those helped by the Calgary group. 

Along with a few other new arrivals, she launched the Soteria Institute, named after the Greek goddess of safety and salvation, to offer free, weekly, online English lessons, resume-writing workshops and emotional support. 

“We understand what they’re experiencing,” said Alison, who asked to be identified by only one name. “We try to use our experience to help out more Hong Kong exiles.” — Sarah Wu/Reuters 

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