Category: Economy

Philippine lawmakers are deliberating potential amendments to the Constitution to ease restrictions on economic ownership.

“We want to lift the restrictive provisions vis a vis the economy,” House Speaker Martin Romualdez said in an economic briefing.

Congressional leaders from major political parties convened on December 11 to address procedural challenges that have impeded previous attempts to amend the Philippines’ 1987 constitution. The proposed amendments aim to grant lawmakers the authority to regulate economic sectors, providing flexibility for increased foreign investment.

Foreign business chambers have long advocated for the revision of current restrictions, particularly the 60-40 rule, limiting foreign ownership in local enterprises to 40%. The anticipated changes could pave the way for a more open investment environment.

Despite past unsuccessful endeavors to amend the constitution, Speaker Romualdez expressed determination in facilitating the process. However, critics have voiced concerns, suggesting that constitutional amendments might inadvertently lead to the lifting of term limits for elected officials.

As discussions unfold, the focus remains on striking a balance between fostering foreign investment and addressing potential pitfalls associated with constitutional modifications.

Singapore sealed its first-ever agreement with Papua New Guinea on December 8, allowing Singaporean companies to purchase carbon credits from projects in Papua New Guinea to offset a portion of their carbon tax liability. The agreement, signed at the COP28 climate conference, is deemed significant as both nations are part of the Alliance of Small Island States (Aosis).

Minister for Sustainability and the Environment, Grace Fu, signed the agreement alongside her counterpart, Papua New Guinea’s Minister for Environment, Conservation, and Climate Change, Simo Kilepa. The accord mandates project developers to cancel 2% of authorized carbon credits for global emission mitigation and allocate 5% of the proceeds to climate adaptation efforts in Papua New Guinea.

Ms. Fu highlighted the dual focus on both mitigation and adaptation actions to align with the goals of the Paris Agreement. The carbon crediting projects are expected to bring sustainable development benefits to local communities, promoting job creation, enhanced energy security, and reduced pollution.

Companies in Singapore can offset up to 5% of taxable emissions by purchasing credits if the projects meet Singapore’s eligibility criteria for real and permanent emissions reductions. Singapore has previously concluded similar implementation agreements with Bhutan, Paraguay, Ghana, and Vietnam, creating a diversified portfolio of credits.

Ms Fu added that the agreement will set up a bilateral framework to allow for the transfer of carbon credits between the two countries, with measures in place to prevent double counting.

“This will create the avenue for worthwhile climate mitigation projects to be financed,” she added.

“High-integrity carbon markets can contribute to much-needed climate action globally, and it is imperative that the environmental integrity of carbon credits under the implementation agreement meets internationally recognised standards,” said Ms Fu.

Singapore has inked a historic free trade agreement (FTA) with four South American countries—Argentina, Brazil, Paraguay, and Uruguay—a group known by the Spanish acronym Mercosur. This marks Singapore’s first trade pact with these nations and Mercosur’s first such deal with a South-east Asian nation.

The Mercosur-Singapore Free Trade Agreement (MCSFTA) aims to facilitate increased trade by reducing tariffs and establishing transparent investment conditions.

The agreement, signed at the 63rd Summit of Heads of State of Mercosur and Associate States in Rio de Janeiro, Brazil, targets enhanced entrepreneurship, accelerated digitalization, sustainable development, and food supply security. The deal is expected to benefit small and medium-sized enterprises (SMEs) across the five economies.

The accord, a result of over four years of negotiations, was signed by Foreign Minister Vivian Balakrishnan and ministers from the Mercosur nations. The focus is on streamlining customs procedures, boosting investor confidence, facilitating digital trade, and supporting SME internationalization.

The signatories will now move forward with domestic ratification processes to implement the agreement. Dr. Balakrishnan highlighted the significance of the MCSFTA, describing it as a bridge between Southeast Asia and South America, bringing the regions closer together.

The pact expands Singapore’s trade relations with Latin America, fostering economic opportunities and collaboration in various sectors, including e-commerce, agri-trade, and government procurement. The Mercosur bloc collectively represents the world’s eighth-largest economy, with a combined GDP of $2.7 trillion and a market of 272 million people.

Indian Prime Minister Narendra Modi announced a $250 million Line of Credit (LoC) to Kenya for the modernization of its agriculture sector. The announcement came following extensive discussions with Kenyan President William Samoei Ruto, who is on a three-day visit to India aimed at enhancing overall relations between the two nations.

In its foreign policy, India has always given high priority to Africa and has expanded its overall ties with the continent on a mission mode in the last nearly one decade, Modi said in his media statement after the talks.

During the talks, both leaders acknowledged terrorism as the most serious challenge facing humanity and pledged to intensify counter-terrorism cooperation. The economic collaboration between India and Kenya was also a focal point, with the assurance from Prime Minister Modi that both nations would explore new opportunities to fully realize their economic potential.

“I am confident that President Ruto’s visit to India will not only strengthen bilateral ties but will give a new momentum to our engagement with Africa,” stated Prime Minister Modi in a media statement following the discussions.

In a bid to draw in more tourists, Thailand’s cabinet has approved a ministerial regulation that extends the opening hours of nightclubs and entertainment venues in key tourist hotspots. This latest initiative is part of the government’s ongoing efforts to attract more visitors and boost economic growth.

Under the new regulation, entertainment establishments, including clubs, karaoke bars and other venues in popular tourist destinations such as Phuket, Bangkok, Pattaya, Chiang Mai, and Samui will now be permitted to stay open for an additional two hours. Thereby extending their opening hours until 4 AM.

Thailand’s Prime Minister Srettha Thavisin had previously said the new rules would start on December 15.

Recognizing the tourism industry as a vital economic driver, particularly in the face of sluggish economic growth, the Thai government has been implementing various measures to rekindle interest from international travelers. One such initiative was the decision in September to waive visa requirements for Chinese visitors, a move intended to bolster tourism, given the significance of Chinese tourists to Southeast Asia’s second-largest economy.

According to current tourism statistics, Thailand has welcomed 24.5 million foreign tourists this year, with a projected total of 28 million by the end of the year. Despite these positive numbers, the figures still fall short of the pre-pandemic peak in 2019 when Thailand recorded a staggering 39.9 million tourists.

The Karnataka government has approved 62 industrial investment proposals valued at Rs 3,607.19 crore, aiming to generate employment for 10,755 individuals within the state.

These proposals received approval from the State Level Single Window Clearance Committee, headed by Large and Medium Industries and Infrastructure Development Minister, Mr. M. B. Patil, during a meeting held on Tuesday.

Key investors involved in these approved projects include Texcon Steels, Hundri Sugars and Ethanol Private Limited, Bren Life Sciences, Alpine Ethanol, Virupaksha Laboratories, and Qualcomm India, among others.

Eight of them envisaged more than Rs 50 crore investment, totaling Rs 2,088.44 crore. This substantial investment has the potential to create 6,360 jobs, as declared by the committee on Wednesday.

Among the 62 proposals, 51 investment projects fall within the range of Rs 15 crore to Rs 50 crore, amounting to Rs 941.40 crore. These projects are expected to contribute to the employment of 4,395 individuals in Karnataka.

Additionally, the committee approved three projects with an extra investment of Rs 577.35 crore.

Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz said that the kingdom has discovered two new natural gas fields in the Empty Quarter region.

Prince Abdulaziz said the discovery of the Al-Hiran natural gas field was confirmed after gas flowed from the Hanifa reservoir at a rate of 30 million standard cubic feet per day, and 1,600 barrels of condensates daily.

“Natural gas was also discovered in five reservoirs in previously discovered fields,” the agency added, citing the minister.

The discovery is set to reshape the landscape of Saudi Arabia’s energy resources, reaffirming the country’s position as a global energy giant. The addition of substantial natural gas fields aids the Kingdom’s efforts to diversify its energy resources, reducing dependence on oil.

The economic implications of these new Saudi natural gas fields are immense. They promise job creation, infrastructure development, and potential export opportunities.

The German government pledged to invest four billion euros in the Africa-EU Green Energy Initiative until 2030, with Chancellor Olaf Scholz saying that African countries should benefit more from their wealth of raw materials.

Scholz discussed the pledge at a news conference on the G20 Compact with Africa summit in Berlin. He did not mention any specific projects but said the materials used in green energy should be processed in the African nations they come from.

“This is about investments that pay off for both sides,” Scholz told delegates. “For example, on the road to climate neutrality in 2045, we in Germany will need large quantities of green hydrogen and will import a large proportion of it from Africa,” he stated.

Compact with Africa is based on an initiative launched by Germany during its chairmanship of the Group of 20 leading rich and developing nations. It aims to enhance economic conditions in participating countries, making them more attractive for foreign private investments. ‘Africa is our partner of choice when it comes to intensifying our economic relations and moving toward a climate-neutral future together,’ he said.

Moussa Faki, the chairperson of the African Union Commission, welcomed the initiative, stating, “The African continent is open to different partnerships,” while emphasizing the shared responsibility of improving governance. He expressed confidence that this vision would attract significant capital investments in the continent, contributing to its economic growth and sustainability.

As many as 94,332 Indian tourists visited Singapore in October, up from 81,014 in the preceding month, said a media report on Tuesday. This surge positioned India as Singapore’s third-largest tourist-generating market, surpassing Malaysia and Australia.

According to the data released by the Singapore Tourism Board (STB), “A total of 94,332 Indian tourists visited Singapore in October, up from 81,014 in the preceding month. It took over countries such as Malaysia and Australia.”

Despite the impressive surge from India, Singapore’s overall international visitor arrivals dipped to 1,125,948 in October, marking a third consecutive month of decline. Australia, which rounded out the top five, was the source of 88,032 visitors, down from 104,497 in the preceding month. Malaysia came in fourth, with 88,641 tourist arrivals, down from 89,384 in September.

Tourism arrival patterns in 2023 reflect seasonal trends – a boost in July and August from inbound Chinese arrivals, before tapering in September and October – which were also observed pre-pandemic, said DBS Bank analyst Geraldine Wong.

Indonesia maintained its position as the top source of visitors, contributing 180,881 tourists in October, while China, with 122,764 visitors, saw a slight drop from September. Wong suggested that safety concerns in other destinations might have redirected Chinese tourists to Singapore temporarily.