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WWF Philippines, BPI Foundation tie up to establish hydroponic farms

WORLD WIDE Fund for Nature (WWF) Philippines and the Bank of the Philippine Islands (BPI) Foundation said they have entered into a partnership to establish so-called “food sheds” — modular, multilevel hydroponic farming structures — in rural areas.

WWF Philippines said in a statement Wednesday that the project hopes to promote food and livelihood security in remote areas.

The project, known as PagSibol, hopes to improve food production in WWF Philippines’ partner communities via hydroponic growing facilities, in which crops are grown not in soil but in liquid, infused with mineral nutrients.

“These food sheds that the BPI Foundation is helping us to put up will guide our communities to further, more sustainable prosperity,” WWF Philippines project manager Muneer Hinay said in the statement.

WWF Philippines said food sheds are low cost and need less land than open-air farms. They also come with space to raise poultry.

It added that the roofed structure will protect the crops from the elements, with the hydroponics enabling year-round cultivation.

“With the added, consistent production provided by a food shed, each of the PagSibol projects’ partner communities will be able to provide for their needs, while selling any surplus for additional income,” WWF Philippines said.

According to WWF Philippines, food and livelihood security remains an issue with an estimated 5.2 million Filipinos experiencing hunger last year and about 4 million out of work as of January 2021.

WWF Philippines said the partner communities include Barangay Bantog, Tarlac City; Barangay Dolores, Ormoc City; Barangays Balugo and Sibulan, Negros Oriental; Barangay Ara-al, La Carlota City; Barangay Mailum, Bago City; Anajawan Island, General Luna, Surigao del Norte; Barangays Basagad, Balo-i and Binuni, in the municipality of Bacolod, both in Lanao del Norte; Barangay Tigbalabag, Zamboanga City; Barangay Kidalapong, Malita, Davao Occidental; and Barangay Dailag, Arakan, North Cotabato. — Revin Mikhael D. Ochave

Higher vaccine share for capital planned as more doses arrive

THE SECOND batch of coronavirus vaccines donated by the Chinese government arrived in the Philippines on Wednesday, according to authorities heading the country’s pandemic response.

The country took delivery of about 400,000 additional doses of Coronavac developed by China’s Sinovac Biotech Ltd., the Department of Health and the National Task Force against COVID-19 said in a joint statement.

Beijing in late-February donated about 600,000 vials of CoronaVac, which kicked off Manila’s vaccination drive.

The Philippines also previously took delivery of about 525,600 doses of the vaccine developed British firm AstraZeneca, Plc through a global initiative for equal access.

Officials of the inter-agency task force leading the country’s pandemic response, including  vaccine Czar Carlito G. Galvez, Jr, Health Secretary Francisco T. Duque III and testing czar Vivencio B. Dizon, received the latest delivery at the Ninoy Aquino International Airport.

“The arrival of these vaccines could not have occurred at a more opportune time considering the continued rise in cases, which in turn increases the need to inoculate more high-risk individuals as soon as possible,” Mr. Duque was quoted as saying.

In the next two days, the Philippines is also expected to receive about 979,200 more vials of AstraZeneca.

Before the month ends, Manila would also take delivery of about one million Sinovac doses paid for by the Philippine government.

The OCTA Research Team from the University of the Philippines, which has been tracking the pandemic numbers, on Wednesday said all vaccines available in the country must be deployed to the National Capital Region (NCR) and its surrounding provinces where there have been a renewed surge of transmissions.

OCTA member Ranjit S. Rye recommended that at least 4.5 million doses be given to the capital, which has been the epicenter of COVID-19 cases.

“If we win the war in the NCR, we think, we win the battle against COVID in the country,” he said in a mix of Filipino and English.

From the initial 1,125,600 Sinovac and AstraZeneca doses delivered, 818,100 have been released for the first dose, based on Department of Health (DoH) data as of Mar. 23. Of the total released, 251,235 doses or 30.7% went to NCR.

Presidential adviser for entrepreneurship Jose Maria C. Concepcion, in an interview with CNN Philippines on Wednesday, said the private sector already proposed to the task force to allocate its initial donation of vaccines for the capital region.

The private sector and local governments were able to secure about 17 million doses of AstraZeneca through a tripartite agreement with the national government and the manufacturer.  About five million doses were paid for by private firms.

Mr. Concepcion said 2.6 million of private sector-funded AstraZeneca doses are expected to arrive in May. Of this initial batch, about 1.6 million doses would be given to the national government, he said.

Health Undersecretary Maria Rosario S. Vergeire, in a briefing Wednesday, reiterated that the prioritization framework for vaccination should be observed after reports of some local officials receiving their first dose.

“We are all entitled to be vaccinated. We just need to have this prioritization because we do not have enough vaccines yet. We will get to that point where everyone will be given their shot,” Ms. Vergeire said in a mix of English and Filipino.

Healthcare workers are at the top of the priority list followed by vulnerable groups like senior citizens and those with comorbidities.

The DoH reported 6,666 coronavirus infections on Wednesday, bringing the total to 684,311.

The death toll rose by 47 to 13,039, while recoveries increased by 1,072 to 579,518, it said in a bulletin.

There were 91,754 active cases, 95.3% of which were mild, 2.5% did not show symptoms, 0.8% were critical, 0.9% were severe, and 0.46% were moderate.

Seven laboratories failed to submit their data on Mar. 23, it said. — Kyle Aristophere T. Atienza and Vann Marlo M. Villegas

Researchers propose 4-week stricter rules if COVID surge stays

MORE stringent rules will have to be considered by the government if coronavirus infections continue to increase after the current two-week semi-lockdown imposed on the capital Metro Manila and four surrounding provinces, researchers said on Wednesday.

If the current coronavirus reproduction rate of 2.0 does not go down to 1.5 within the two-week period from Mar. 22 to Apr. 4, the government should implement the second strictest level tagged as modified enhanced community quarantine (MECQ),  the OCTA Research Team from the University of the Philippines said in a televised press briefing.

“Let’s give the bubble a chance, but if the cases continue to go up after next week, then we should think about a stricter quarantine classification,” Ranjit S. Rye, one of the group’s members, said in a mix of English and Filipino.

The “bubble” covers the National Capital Region and the provinces of  Bulacan, Rizal, Laguna, and Cavite.

Mr. Rye said stricter restrictions for four weeks could “knock out” the renewed surge in coronavirus cases and address the weakening capacity of hospitals within these areas.

“For four weeks, it will really knock it out,” he said, noting that it will also coincide with the expected arrival of more vaccines.

He said it is “more realistic” to observe a downtrend in infections “after four weeks of stricter restrictions.”

Mr. Rye said they are suggesting a “soft MECQ,” wherein public transportation will not be limited so it can provide service to workers.

A number of business establishments will also be allowed to continue operations.

Meanwhile, the group Advocates of Science and Technology for the People (AGHAM) on Wednesday pushed for free mass testing and extensive contact tracing to arrest the virus transmission.

“The Philippines must immediately implement free mass testing and more aggressive contact tracing in view of increased transmission of COVID-19,” AGHAM said in a statement.

The group also urged the government to increase its support to the local sector for producing testing kits to make the supply “sufficient, affordable, and not solely dependent on imports.”

“Scientists from UP have already demonstrated that we can make our own testing kits,” it said. “We have competent scientists, technologists, and engineers to propel our country forward in this direction.”

“With a massive budget of at least $2.91B through various loans at its disposal, we expected a system that is prepared to address a possible worse surge of the disease. To say that we are disappointed is an understatement,” it said. — Kyle Aristophere T. Atienza

Military deploys more naval assets in West Philippine Sea

ARMED Forces of the Philippines Chief of Staff Cirilito E. Sobejana on Wednesday said he has directed the deployment of more naval assets to the West Philippine Sea to monitor about 200 Chinese fishing vessels that massed at a reef within the Philippine territory.

“I directed the Philippine Navy to deploy additional naval assets to the West Philippine Sea to increase our visibility and ensure the security and safety of our fishermen. Of course our marine resources and integrity of our territory,” he told the Commission on Appointments.

“We do not tolerate incursions in our territorial waters from anybody,” he added.

In early February, Mr. Sobejana also ordered increased naval presence in the West Philippine Sea after China passed a new law authorizing its coast guard to fire at foreign vessels.

The commission on Wednesday approved the nomination of Mr. Sobejana to the rank of general as well as the nomination of six other officers and 26 ad interim appointments of senior officers in the armed forces.

The Philippine government on Sunday said it was concerned that more than 200 Chinese militia vessels had moored at the Whitsun Reef or Juan Felipe Reef. The vessels had no actual fishing activities and had full white lights on at night.

Foreign Affairs Secretary Teodoro L. Locsin, Jr. said the country filed a diplomatic protest against the activity. The Foreign Affairs department, in a statement on Tuesday, demanded China to withdraw the fishing vessels and maritime assets at the reef, saying it infringes on Philippine sovereignty.

Mr. Sobejana said the military had conducted maritime patrol in the area and counted 183 vessels at the reef, which were in a formation similar to fishing boats when at rest.

“But the number is quite substantial compared to the formation that I have observed in the Sulu seas. So we are trying to assess why they did such kind of a formation,” he said. 

They have also invited China’s defense attache to the Philippines on Wednesday to discuss the matter, Mr. Sobejana said.

The Chinese Embassy in Manila on Monday said the reef is part of China’s Nansha Qundao and the Chinese vessels had taken shelter near the reef due to rough sea conditions. — Vann Marlo M. Villegas

House leader says Finance dep’t assures support to P420-B stimulus package 

HOUSE Speaker Lord Allan Jay Q. Velasco on Wednesday said the Department of Finance has promised to find funding sources for the proposed P420-billion economic stimulus package.

In a statement on Wednesday, Mr. Velasco said he “got an assurance” of support on the proposed Bayanihan to Arise as One Act from Finance Secretary Carlos G. Dominguez III during a recent meeting. 

The bill is the third economic relief fund after the Bayanihan to Heal as One Act (Bayanihan I) and the Bayanihan to Recover as One Act (Bayanihan II).

“It’s a matter of finding revenues to be able to fund those programs. Secretary Dominguez did not actually shoot down Bayanihan III,” Mr. Velasco said.

“(H)e (Mr. Dominguez) really wants to help the Filipino people. He just said to give him time to look for the funding,” the solon added.

The proposed third Bayanihan law, filed last month by the speaker and Marikina Representative Stella Luz A. Quimbo, has garnered the support of 224 members of the House of Representatives. 

The proposed economic relief package will consist of P108 billion for social amelioration program assistance to households affected by the pandemic; P100 billion for capacity-building of businesses from critically affected industries; P70 billion capacity-building for agricultural producers; P52 billion for wage subsidies; P30 billion for displaced workers; P30 billion for internet expenses for teachers and students; P25 billion for COVID-19 vaccines and medicines; and P5 billion for the rehabilitation of typhoon-affected areas.

Economic managers have previously said that a third Baynihan fund is not needed, citing that there are already pandemic response measures covered by the 2021 national budget and the Bayanihan II. — Gillian M. Cortez

Electricity lifeline rate extension to 2051 ratified by Senate

THE PROPOSED law that will extend the lifeline rates for the poor until 2051 has been ratified by the Senate, placing the measure up for President Rodrigo R. Duterte’s approval. 

The Senate ratified the bicameral committee report in its last plenary session on Wednesday before the congressional recess until May 17. 

The Senate approved Senate Bill 1877 and House Bill 8145 that would amend Section 73 of the Electric Power Industry Reform Act of 2001 (EPIRA) Law.

Lifeline rate is a subsidy provided to qualified marginalized consumers who cannot pay at full cost. The subsidy will be shouldered by non-lifeline rate consumers.

Senator Sherwin T. Gatchalian, chair of the committee on energy, said the approved bicameral report added another criterion for those who will be eligible to the lifeline rate, which is the power consumption level of the household, should be continuously within the threshold to be determined by the Energy Regulatory Commission.

He also said the extension of the lifeline rate will have minimal impact on non-lifeline rate consumers, citing an estimate by the Energy department that they would only be paying P0.0087 per kilowatt hour by 2051 for the subsidy.

“In short, the relief provided to millions of poor households through this extension will far outweigh the minimal cost shouldered by more affluent consumers,” Mr. Gatchalian said.

“The changes in the bicam report as discussed will allow for the even more efficient and fiscally responsible implementation of the extended lifeline rate,” he added.

The House of Representatives ratified the bicameral committee report last Monday. — Vann Marlo M. Villegas

Nationwide round-up (03/24/21)

IBP rallies judicial sector to act faster on cases of killing of lawyers, judges

THE Integrated Bar of the Philippines (IBP) welcomed the vow of the Supreme Court on Tuesday to help protect lawyers and judges amid the rise of violence against them, and called on legal practitioners to do their part in speeding up the litigation of these cases. “Lawyers, judges, prosecutors, and all workers in the justice sector can and should do so much to deliver justice a lot faster. Only when the evil-doers are swiftly and surely held accountable that the criminals fear the law and respect the rights of others,” the IBP, the official organization of Philippine lawyers, said in its statement on Wednesday. “While we vigorously pushback against any threat, violence, or disregard of due process, we will move forward and focus on what we can do to deliver ‘Justice Bilis’ (swift justice),” it added. In a mobile message on Wednesday, IBP President Domingo Egon Q. Cayosa explained that Justice Bilis is “a campaign and major program of our leadership and the 24th IBP Board” aimed at resolving cases much faster by improving technology in the Supreme Court to be able to conduct hearings via videoconferencing. Meanwhile, eight senators who are also lawyers filed a resolution on Wednesday condemning the spate of killings of lawyers and added their voice to those calling on President Rodrigo R. Duterte to take “necessary steps” to ensure the safety of members of the legal profession. The resolution was filed by Senate Minority Leader Franklin M. Drilon, Senators Juan Edgardo M. Angara, Pia S. Cayetano, Leila M. de Lima, Richard J. Gordon, Francisco N. Pangilinan, Aquilino L. Pimentel III, and Francisco N. Tolentino. They noted that the 54 lawyers had been killed since 2016 and only five cases have reached the courts, citing data from the Department of Justice. The Free Legal Assistance Group reported 100 lawyers who have been killed in the last 20 years. — Bianca Angelica D. Añago and Kyle Aristophere T. Atienza

House panel approves consolidated bills on better health crisis response

A House of Representatives panel on Wednesday approved the proposed law that will strengthen the country’s response to public health crises. The House committee on appropriations approved the substitute bill consolidating 14 related measures that aim to boost the management of public health emergencies. Quezon Representative Angelina “Helen” DL Tan said during the hearing that the country has a long way to go before it can effectively implement International Health Regulations crafted by the World Health Organization for controlling the global spread of diseases. “The bills aim to establish a health security national action plan and strengthen institutional capacity to prevent diseases prevention, surveillance, control, and response systems and implement contingency plans to deal with public health events,” she said.

OCCUPATIONAL DISEASE
In the upper chamber, Senator Risa N. Hontiveros-Baraquel on Wednesday called for the inclusion of coronavirus infection among the occupational diseases that workers can avail insurance for under the government’s compensation program for employees. She urged the Department of Labor and Employment and Employees Compensation Commission to declare COVID-19 as an occupational disease under the Employees Compensation Act and Employees Compensation Program. Ms. Hontiveros said workers are at high risk offices, factories, and mass transportation are the new “hot spots” of virus transmission. “Employees should not be burdened with proving that they contracted the virus from work, because traveling between home and the workplace via public transport is in itself a work-related sacrifice that our workers make,” she said in Filipino. — Gillian M. Cortez and Vann Marlo M. Villegas

Regional Updates (03/24/21)

2 more Abu Sayyaf members in abduction of Indonesians killed

ANOTHER two members of the Abu Sayyaf who were involved in the kidnapping of five Indonesians in January last year were killed Tuesday afternoon in post-rescue operations, the military reported. Their leader Majan Sahidjuan was killed over the weekend in an island in Tawi-Tawi, a province in the country’s south. Several other members of the kidnap-for-ransom group were killed Thursday last week when three of the abductees were rescued. The latest two fatalities, along with the last of the Indonesian captives who has been rescued, managed to escape during the weekend encounter but were later tracked and killed in a gunfight. The four rescued Indonesians were flown to Manila and handed over on Tuesday to Indonesian Embassy officials. The first three victims told the military one of them was killed by their captors while trying to escape during an encounter between their kidnappers and government forces in Patikul, Sulu in September. They were kidnapped in January last year from a vessel in waters off Malaysia. Lt. Gen. Corleto S. Vinluan, Jr., commander of the Western Mindanao Command, lauded the troops and acknowledged the contribution of other sectors. “We also have to give due recognition to the support of the local government officials, our partners from the PNP (Philippine National Police), and community who directed our troops to the terrorists’ location,” he said. The Abu Sayyaf group first became notorious for hijacking and kidnapping activities, but later became involved in terrorism and linked with the extremist Islamic State. — MSJ

Supreme Court orders further reduction in onsite manpower

THE Supreme Court (SC) on Tuesday ordered to “drastically reduce” the number of onsite personnel in all courts within the National Capital Region and the provinces of Bulacan, Cavite, Laguna, and Rizal from Mar. 24 to 26, following a directive to operate with a 30% to 50% skeletal workforce from Mar. 23 to 31. The order cites the “alarming increase” of coronavirus cases in these areas, which have been placed under more stringent restrictions by the national government until Apr. 4. The high court said the number of personnel who will work onsite should just be “as sufficient to attend to all urgent matters, preferably by videoconferencing.” In another circular also released Tuesday night, Chief Justice Diosdado M. Peralta allowed all courts and offices in Metro Manila and the four surrounding provinces to maintain less than 30% of staff until Apr. 16. All judges in the area are allowed to conduct fully-remote videoconferencing hearings as an alternative without the need for approval from the Office of the Court Administrator. — Bianca Angelica D. Añago

Phivolcs warns of increased Taal Volcano seismic activity

STATE scientists on Wednesday warned of increasing seismic activity at Taal Volcano, which heightens the possibility of a magmatic eruption. “Overall seismic energy release has markedly increased since yesterday afternoon compared to previous seismic swarms. Sulfur dioxide gas emission in the previous week has been generally high with a peak of 1,184 tons/day on 21 Mar. 2021,” the Philippine Institute of Volcanology and Seismology (Phivolcs) said in an advisory released at 12:30 p.m. Wednesday. “The above parameters indicate that magma has been migrating across shallow depths beneath Taal Volcano Island, increasing the possibilities of magmatic eruption.” Phivolcs maintained the alert level at 2 out of five levels. “Alert Level 2 (Increased Unrest) is currently maintained over Taal Volcano but that unrest has been elevating and is under constant evaluation,” Phivolcs said, “sudden steam-driven or phreatic explosions, volcanic earthquakes, minor ashfall, and lethal accumulations or expulsions of volcanic gas can occur and threaten areas within and around” the island. Taal Volcano, which last erupted in January 2020, has been exhibiting “unrest” since Feb. 13 this year with 2,015 volcanic tremors recorded. — MSJ

Keep ears to the ground to come up with helpful solutions, Filipina tech leaders say

Keeping your ears to the ground and sincerely listening to what people say allows you to come up with helpful solutions, according to Filipina tech leaders who participated in a forum organized by local startup enabler QBO Innovation Hub. 

“I really empathize with women who have to juggle responsibilities. It is a struggle,” said Grace T. Vera Cruz, president of mobile technology company Grab Philippines. “I love compassion as a word, and we live it [at Grab].” 

Grab employees with children can talk about coping mechanisms, working from home, and other concerns in a forum called Parents at Grab. Drivers can also check in and discuss their concerns through Zoom calls and Facebook live events. 

Telecommunications company PLDT, Inc. meanwhile, asked employees what they needed and gave them what they asked for: vitamin C and masks, early in the pandemic; chairs, when the disadvantages of not having a proper home office started surfacing.  

“Six months into the pandemic, everyone asked for chairs,” said Katrina L. Abelarde, first vice-president and head of PLDT-Smart’s International Carrier Group. “Apparently, a lot were sitting on beds and it was giving them backaches. We tried morning workouts but that didn’t work out, so we gave away chairs.” 

Reaching out also proved beneficial to Frontlearners, said Elaine P. De Velez, co-founder and chief executive officer. The education technology (edtech) company tweaked its e-learning content and learning management system to make it more relevant to its school clientele. 

Ms. De Velez said there was a forced migration to digital last year as many schools grasped at learning continuity. For some customers who had been using the platform for years, it was business as usual. For others who had only recently come onboard, the company proved to be a welcome solution. “Some schools had no I.T. (information technology) department,” she added, “whereas others had an I.T. department but no edtech component. We reached out to them in whatever stage of technological adaptation they were in.”

Talking things through with people you trust, enabling people to succeed, and inspiring others by being the best person you can be are among the pieces of advice Ms. Vera Cruz shared at the online event. 

“We want to leverage what we have to empower everyone to fulfill their own missions and also solve the problems they might have in their lives,” she said. — Patricia B. Mirasol

Responsible investing in different cultural contexts 4

(Last of four parts)

Time flies when you are locked down at home — and it has been a nice recollective journey around the globe the past three weeks writing about the state of Sustainable Finance first in the United States and Europe, moving over to Latin America, then Africa, and today circling back home to the Asia Pacific region. Why is it important to examine other geographies before our own? Well, to compare our development of course.

Our region is unique in that while it is raging in growth, it also is home to some of the largest inequal distributions of wealth as well as levels of development that make it exceedingly difficult to form any generalizable statements on the region from an economic perspective. Further, the countries within the region are so culturally diverse with a myriad of languages that do not communicate with each other, making it impossible to really characterize Asian practices in any specific way.

What is common though is that several government owned funds in the emerging economies are leading the Responsible Investment (RI) movement, creating momentum across the region. The Government Pension Fund of Thailand (GPF), a founding member of the PRI, the South Korean National Pension Service (NPS), and Malaysia’s Sovereign Wealth Fund Khazanah are examples of regional RI champions. NPS began investing in RI funds in 2006 and more local pension funds have expressed their interest in RI since. Some funds have partnered with those in Europe to invest in things like clean energy and waste-to-energy projects, although this is just a small amount compared to the total investment universe.

Hong Kong and China, however, do not have the same story. The main reason is that corporate pension funds are still in their infancy in China. Signatories to the UN Principles for Responsible Investment (UNPRI) in Hong Kong are mostly private equity (PE) firms. Among the PE projects, infrastructure investments are the focus (e.g., social infrastructure including public facilities such as schools and hospitals, utilities such as energy, water and waste management companies, and transport including mass transport systems, toll roads, and railways.) Because of the urbanization of this region, these types of investments are fundamental in growing cities and satellite towns in Asia, where rapidly expanding populations put a strain on local resources and infrastructure.

Due to the high presence of foreign direct investments in the region, those who are driving RI awareness and practice in Asia are foreign fund managers, unlike in Europe and the US where local asset owners are the major drivers in the sustainability market. For instance, BNP Paribas established the first Asian environmental equity fund “Green Tiger” and the first Greater China Environmental Fund. Further, the concept of shareholder activism is not well developed in most Asian jurisdictions. Foreign fund managers usually engage privately, especially in countries where family ownership dominates the business model, as in Hong Kong.

The state of RI in Australia is much more advanced than those of its emerging economy neighbors and is one of the most well-developed globally. Market players come from across the board: government funds, corporate funds, and pension funds and approximately half of the funds under management of Australian asset managers fall under UNPRI commitments to ESG (Environmental, Social, Governance criteria) integration. Australia also boasts a very developed sustainability index market.*

Recently, however, initiatives towards getting the markets more involved have begun. Bursa Malaysia and the Shanghai Stock Exchange recently introduced a mix of best practice ESG guidelines, sustainability indices, awards and specialist market services and 2010 saw the launch of the Hang Seng Corporate Sustainability Index (HKCSI) Series covering large and liquid listed companies in Hong Kong and Mainland China. The Hang Seng Corporate Sustainability Index Fund, which tracks the HKCSI, was launched in 2011. Most recently the Philippine Stock Exchange announced plans for an ESG index by 2022. This trails our first Sustainability retail fund which was launched earlier this year by ATRAM. There thus appears to be a plausible movement towards the creation of funds based on sustainability indices.

This March series has attempted to present how Responsible Investment adoption and practice is largely dispersed and to explain how the types of strategies being used differ based on the cultural context as related to religion, events in the institutional environment, social problems, development levels of the capital markets, and the pace of urbanization. In a similar vein, this chapter has highlighted that the key promoters of RI vary across geographies. In Europe, government-wide initiatives adopted by asset owners are driving a non-prescriptive ESG integration approach. In the US however, RI was born in response to religious teachings and civil societal pressures following catastrophic events, making the landscape more akin to investment considerations based on moral concerns. In Latin America, a largely Catholic region, RI is developing from a philanthropic approach wherein funds donate a percentage of their profits towards charitable purposes. In Northern Africa, negative screening is the norm, which adheres to Islamic finance principles of Shar’iah. In both Latin America and Africa, impact investing plays a crucial role for development. Finally, Asia is an interesting market with differing levels of adoption. In some geographies such as Malaysia, South Korea, and Thailand, government initiatives are driving RI whereas in Hong Kong, foreign fund managers are leading the practice. These differences are necessary to consider when studying the phenomenon, in order to avoid strong generalizations, to enable a clear understanding of cultural embeddedness and propensity for change, and to create proper tools, favorable legislation, and successful strategies for each institutional environment. n

*Some examples are ACT Australian Cleantech, ALTEXAustralia, Carbon Disclosure Leadership Index (CDLI) Corporate Responsibility Index (CRI), Ethinvest Environmental Share Price Index, FTSE4Good Australia 30, FTSE Shariah Australia, GS/ASX 300 Socially Responsible Accumulation Index, IPD Green Property Investment Index, Reputex Climate Change Opportunity, Reputex Environment Opportunity, Reputex Future Energy, Reputex Governance Leaders, and Reputex Sustainability 120 Index.

The original book chapter from where this series is based is published in Italian: Laurel, D. & Piani, V., 2013, L’SRI nei diversi contesti culturali (Socially Responsible Investing in Different Cultural Contexts) in Creare Valore a Lungo Termine (Creating Long-term Value), eds. Del Maso, D. and Fiorentini, G. EGEA (Milan, Italy).

 

Daniela “Danie” Laurel is a business journalist and anchor-producer of BusinessWorld Live on One News, formerly Bloomberg TV Philippines. Prior to this, she was a permanent professor of Finance at IESEG School of Management in Paris and maintains teaching affiliations at IESEG and the Ateneo School of Government. She has also worked as an investment banker in The Netherlands. Ms. Laurel holds a Ph.D. in Management Engineering with concentrations in Finance and Accounting from the Politecnico di Milano in Italy and an MBA from the Universidad Carlos III de Madrid.

Singapore’s shrinking population does not mean economic doom

CHRISTIAN CHEN/WUNSPLASH

IN A GOVERNMENT POSTER from the early 1970s, a young Singaporean mother stands in a laundry-strewn apartment with a screaming infant on her hip. Her toddler is on the floor wailing and her husband stands disapprovingly in the doorway, disgusted by the messy home. A thought bubble appears above the woman’s head: “If only I hadn’t married so early.” The message was part of a campaign to discourage teenage weddings and large families.

When Singapore became independent in 1965, the average mother had at least four children. Lowering the birth rate was considered vital to eradicating poverty, boosting education and healthcare, and moving much of the population from crowded shop houses to affordable public housing — the tenets of founding Prime Minister Lee Kuan Yew’s vision for the city-state. Survival depended upon family planning.

Half a century later, Singapore is very different. After falling steadily for years, its total fertility rate, the number of children a woman has over the course of her lifetime, slipped to a record low of 1.1 in 2020, according to official figures. (A rate of 2.1 is considered the requirement to keep a population steady.) The government now offers baby bonuses worth as much as S$10,000 ($7,430), and the cost of reproductive technology treatment is heavily subsidized. Late last year, Deputy Prime Minister Heng Swee Keat foreshadowed further incentives.

The government’s latest preoccupation with child-rearing could be interpreted as an attempt to address an overcorrection. It also rests on the premise that more people will boost growth. But this view skates past a certain inevitability: Singapore’s economic star was destined to fade long before its demographic challenges manifested.

In a 1994 essay in Foreign Affairs, Paul Krugman noted that the so-called tiger economies of East Asia were benefiting from a rare surge in the workforce and investment, which would eventually dissipate. In Singapore, per capita income roughly doubled every decade between 1966 and 1990 and gross domestic product rose 8.5% a year, according to Krugman. The share of the population that was employed and the number of people who received secondary education rose dramatically. “Even without going through the formal exercise of growth accounting, these numbers should make it obvious that Singapore’s growth has been based largely on one-time changes in behavior that cannot be repeated,” he wrote.

The most obvious way to mitigate such a decline — more immigration — has met periodic resistance. Historically, the country embraced workers from abroad, who either brought specific skills required by multinational companies or perform roles that don’t excite locals. (A big chunk of foreigners work in construction and food-and-beverage industries.) Amid the COVID-19 downturn, however, ministers have emphasized the need for employers to preserve the “Singapore core.” This attention to domestic sensitivities has been amplified since the general election in July, when the opposition picked up seats in parliament.

You could argue this has always been a latent concern: “Singaporeans have strong reservations about admitting immigrants,” Lee wrote in his book One Man’s View of the World, published in 2013, “but we arrive at this option almost by process of elimination.’’ He continued: “Do we face up to reality and accept that some immigrants are necessary, or do we simply allow Singapore to shrink, age and lose vitality?”

Yet demographic challenges don’t necessarily spell economic hardship. Japan’s population is contracting and aging simultaneously. Despite the caricature of the country as an economic failure in the grip of terminal decline, life goes on. True, growth in overall GDP has been fairly anemic in past few decades, but GDP per capita has held up well. Businesses continue to invest and, prior to the pandemic, Japan began to tentatively embrace immigration as part of the solution to population retreat, as I’ve written. What’s more, the unemployment rate is low — before the pandemic, around 2.2% — and even the ravages of COVID-19 haven’t pushed it much higher than 3%. Prior to the coronavirus, there were multiple jobs in Tokyo for every applicant.

There’s also hope in greater use of robots and automation. Androids have been more visible across Singapore over the past year, from a mechanical dog called Spot that patrolled a popular park to monitor social distancing, to a robot barista and cute machines that help clean hawker centers. But it’s unclear, given the premium now placed on social harmony and protecting jobs, whether the country will go for en-masse deployment of robots anytime soon. In a nod to both technological aspirations and labor-market constraints, officials announced in November a new category of visa for people with a proven track record in this field.

Singapore’s strategy for decades was marketing itself as an efficient, well-regulated and impeccably maintained First-World island — a place that would stand out in a region renowned for sky-high growth rates but beset by straining infrastructure and political volatility. Generations of visitors have marveled at the user-friendliness of its airport, roads, and port facilities. Many chose to root their businesses here.

To a large extent, smaller families are a byproduct of all this prosperity. Unlike the family in the 1970s-era poster, both parents tend to work these days. Locals complain about stress, a national ethos that emphasizes professional advancement, and the pressure to get their child into good high schools and the National University of Singapore. Almost every street corner has a business offering extracurricular tutoring in Math, Science, and English. “The tiger mom concept is so rampant here,” said Anu, a 40-year-old who works in public relations and has one child, lamenting the anxieties parents and children face.

For an updated understanding of modern family friction, a more instructive exercise would be to camp out at the Forum mall on Orchard Road, one of the country’s most iconic streets. On a Sunday afternoon, you can join throngs of families shuttling one or two kids between ballet, music, Taekwondo, and gym classes while trying to avoid vegan ice cream shops and the Toys “R” Us store on the third floor. Singaporeans may be content with fewer kids, but they’re sure ready to spend a lot on them. Welcome to the smaller, richer future. 

BLOOMBERG OPINION

What happened to optimism?

IT’S TRUE that there is very little to cheer about. Just when hope picked up with the vaccine solution, a surge of COVID-19 variants and a rise in hospital bed occupancy has pulled back any bussing optimism. Even in chat groups it’s the prophets of doom, sometimes with old news and fake reports, that dominate the conversation.

Have we become a cheering-impaired nation? Is the feeling of being left behind by the rest of the world in recovering from the pandemic pulling down our hoping mechanism?

Should there be a new corporate position for optimists? The Chief Optimistic Officer (COO) is not to be confused with the second in command. She is mandated to provide exhortation and encouragement to the troops. The vacuum in the optimism needs to be addressed. More people are criticized for what they do wrong than praised for what they do right.

The cheerleader function has not been specified in the organizational hierarchy as this role has been assigned to the CEO whose good cheer is courted hourly by underlings. A kind word in the elevator (nice sneakers) is enough to make the addressed subordinate feel noticed and appreciated.

Cheering as a method of positive reinforcement is prevalent in competitive sports, including gymnastics. Supporters of college basketball teams (when actual presence in the arena is allowed again) entertain the illusion that their presence in large numbers expressed too in rhythmic chanting (one big fight), and led by cheerleaders with their backs to the game, results in unbelievable team performance.

It seems anyway that there are now cheerleaders, especially among senior recruits of troubled companies, that have assumed this hortatory role under the guise of more mundane titles like business development officer — there’s a new market we need to penetrate: the stay-at-homes.

Cheerleaders, as noted above in their counterparts in sports, have their backs to the game. They do not actually dribble the ball or score points. Their sole function is to stir the observers and make them believe that the play in the court is affected by the loudness of the cheers.

The cheerleader likes to call meetings, at least once a month, even if now mostly virtual. She includes everyone in these “town hall” gatherings. The resulting photo gallery of 150 faces shows the wide participation in the cheer rally. She spouts slogans — do not sell advertising spots, sell the company. She peppers spiels with applause lines — you are the best. It just doesn’t show in the numbers… yet. Did you get the snack box we sent out?

Optimism is an attribute of a good leader. Churchill as a war leader continued to rally the besieged nation (we will fight them in the beaches, we will fight them in the streets…) even at the height of the London bombing and the retreat from Dunkirk. The dark clouds of defeat had to lift.

What is the role of a leader, after all, when all he sees is how impossible the situation has become and how death is just around the corner? (The virus is everywhere.) It’s not difficult to be a prophet of doom. All it takes is cynicism and the conviction that survival is impossible. There is enough real (and fake) news to throw in the mix.

In the first two months of the current year, there was a feeling that the tide would turn. Of course, the projections of a research organization again raised the specter of the “second wave” to set us back again in a state of helplessness.

Are we advocating self-delusion and shrugging off the nasty numbers? Maybe.

Optimism is like ambition. It is a desire to reach a goal and the conviction that life is great. As children, we were routinely asked what we wanted to be when we grew up. Like the Man from la Mancha, we dreamed impossible dreams of professional achievements, wealth, political positions — certainly a few wanted to be mayor of a big city in the South. Unreachable stars require a hefty dose of optimism, maybe misplaced but still a driving force.

Being immersed in bad news and negative economic numbers and delays in the vaccination program, we can perhaps actually achieve “herd immunity” …unfortunately against the contagion of hope.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

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