Unwitting pawn

The growing presence of China in all aspects of the Philippine economy is slowly, but strongly being felt.

Unfortunately, there is also a growing concern that in many of the so-called partnerships between China and the Philippines, whether it be by the government or the private sector, the deals seem to be lopsided in favor of the former.

Take the case of the joint oil and gas exploration deal between the two countries. No less than President Duterte has revealed that he was told by Chinese President Xi Jinping that if the former ignored the Permanent Court of Arbitration’s 2016 ruling, China would agree to be the junior partner in a joint venture to develop gas deposits at the Reed Bank which is located within the Philippines’ exclusive economic zone.

China has refused to recognize the 2016 Hague ruling that invalidated its claim to almost the entire West Philippine Sea (South China Sea) based on the so-called nine-dash line which extends China’s territory.

The Chinese President’s statement is a clear indication that China will not allow the Philippines to have an upper hand in the joint exploration partnership.

Other than concern over growing control of China in many aspects of the Philippine economy and business, there is also a perceived security threat due to the increased presence of the Chinese here.

Take the case of Dito Telecommunity, the country’s so-called third telco, which has for its partner the state-run China Telecom. It will be recalled that the Armed Forces of the Philippines signed a deal with Dito which would allow the company to build facilities inside military camps.

Sen. Francis Pangilinan has said that that an assurance from Dito that such installations would not be involved in intelligence gathering and would not compromise Philippine national security is not enough. For his part, party-list Ako Bicol Rep. Alfredo Garbin, Jr. agrees with Rep. Manny Cabochan that the Philippines and the United States security concerns due to issues of national on the ambitious digital infrastructure initiative of the country’s third telco player may have basis. 

We are all aware of China’s long-standing policy to become the undisputed global power. Let us just make sure that our country and our government leaders be decisive enough to assert our rights lest we become an unwitting victim in this power play in the guise of friendship.

Filling a void

A few bad eggs should not be allowed to spoil everything in the basket.

Recent complaints involving illegal practices of at least 67 online lenders, triggering investigations by the National Privacy Commission and drastic actions on the part of the Securities and Exchange Commission, have put in a bad light the entire online lending industry, which should not be the case.

News reports about their reported malpractices did not distinguish the legitimate online lenders from the illegitimate ones. They have been lumped together, triggering concerns about their operations and business reputations. Not even our government agencies have exerted effort to shield the good guys from the bad ones.

In line with this, legitimate online lending services are now coming out to explain their operations and have expressed intention to participate and contribute in any investigation or public hearing so that appropriate policies can be drawn to weed out the undesirables, but at the same time recognize the important role which online lending plays in our economy.

Legitimate online lenders like FCash Global Lending Inc., whose mobile app can be downloaded on the Google Playstore under the name FastCash, have been insisting that the good guys have to be distinguished from the bad guys. They have insisted that it does not make sense to lump online lenders in the category of undesirable lenders.

In a statement, FCash Global lawyer Dean J.V. Bautista, has said that the company’s business operations are completely legal and regulations-compliant, being duly registered with SEC as a corporation, and having been issued the requisite license to operate as a lending company.

Legitimate online lending services, like FastCash, provide fast and easily accessible credits without asking for collaterals unlike traditional lenders, which require collateral for loans that have market value equivalent to at least 125 percent of the borrowed funds. Moreover, online lenders provide funds as early as two or three days after application. This is something traditional lenders could not do.  By all means, they serve a purpose and this is something that could not be denied.

The restrictive lending policies of banks and other traditional lenders have forced borrowers to resort to informal lenders which impose as high as 20 percent interest rate.

Unlike these informal lenders, legitimate online lenders operate above the ground and form part of the formal lending sector. They pay taxes, issue receipts, have the necessary business permits, and can sue and be sued because they operate officially.

While legitimate online lenders try to free themselves of any association with the bad eggs in the business, adhering to existing laws and regulations on lending and any other rules which may be issued in the future to better regulate the industry, policy makers should do their part to encourage, instead of restricting, online lending while ridding the business of undesirables.

Online lending allows financially-challenged individuals and business entities to secure funds in an easier but safer way. Just like any industry, there are abuses. But it should not prevent an industry that addresses a void that cannot be filled up by banks from existing and thriving.

For comments, e-mail at [email protected]