Absorptive capacity

At this year’s Philippine Business Conference chaired by San Miguel Corporation President and Chief Operating Officer Ramon S. Ang, President Duterte said he’s a bit concerned about the growing trade war between the United States and Mainland China.

Finance Secretary Carlos G. Dominguez and Socioeconomic Secretary Ernesto Pernia are of the opinion that there will be mixed effect of the trade war on US.

Market players believe the tariff is a non-issue. The economy can very well absorb the impact. The local economy will not be severely affected as domestic activities are fueled, mainly, by robust consumer/ and private sector spending. Should there’ll be any, the dent is not enough to slow down our growth in a big way.

Simply put, we have the absorptive capacity.

I was in Seoul, South Korea recently to attend the World Knowledge Forum (WKF). In my brief discussion with Dr. Dae-Whan Chang, chairman of the Maekyung Media Group and WKF executive chairman, affirmed a certain business uneasiness. “Yes, it bothers us because 25 percent of Korean exports and trade is with China.”

While regional crossborder trade and commerce has increased significantly, US still accounts for a large chunk of Korean exports, Dr. Chang said. “While we have diversified and moved some of our trade in the region, including the Philippines, US remains our biggest trading partner.”

The effect remains tentative. The cost benefit and/ or disadvantage are still vague and unquantifiable to regional economies like the Philippines for now. As we watch on the sidelines, the escalating trade tension between the two giant economies still has undetermined value impact. What is certain, however, is that the decision of the US to impose tariffs on China’s produce has a pervasive influence on regional business climate moving ahead.

This leads me to wonder about the news I read that there’ll be no faceoff between US President Trump and Chinese leader Xi Jinping next month in Papua New Guinea for the AsiaPacific Economic Cooperation (APEC) Summit. Instead, Vice President Mike Pence is attending. I find it’s kinda’ off-tangent, considering that this year’s APEC is a milestone, marking its 25th year. I was in the media delegation when the US President Bill Clinton convened the first APEC at Blake Island off Seattle, Washington state, on November 20, 1993. Deadringers:

I haven’t had a chance to be up close and personal with former special assistant to the President Bong Go. Looking at his photos plastered all over media when he filed his certificate of candicacy, I realized the former official photo bomber could be mistaken as Deputy Speaker for Visayas Arthur Yap. Although, the senatorial candidate is a bit mere stocky, both could be mistaken for one or the other from afar.

Another deadringer is seasoned banker Wick Veloso and former Philippine National Police (PNP) chief Director General Ronald M. de la Rosa. Sometime back, during the China visit of President Duterte, both were present – Wick as part of the businessmen’s delegation while “Bato” was in the official delegation. In one of the functions, Wick was mistaken for the PNP chief. Wick just had a hearty laugh.

Namesake: Business journalists were a bit surprised Tuesday when the Commission on Elections released the names of candidates vying for mayors and vice mayors in the city of Manila. An “AMT” is running for the position of vice mayor. Former BSP Governor Amando “Say” M. Tetangco is known in the banking industry as AMT. The candidate who bears the same initials is Amando Magsino Tetangco, a namesake of Gov. Say. The only difference is the middle name – it’s Maglalang for the award-winning governor. Governor Say said he had met his namesake way back when he was still deputy governor.

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