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IC open to transferring oversight of HMO sector

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THE INSURANCE Commission (IC) is open to handing over the supervision and regulation of health maintenance organizations (HMO) to another government agency, its top official said.

“Until we can find the right place to put them, we’ll do everything we can for them. I don’t see other options at the present… If there would be better people or a better organization to handle it, I’ll be more than happy to transition,” Insurance Commissioner Reynaldo A. Regalado told reporters late on Monday.

This, as Mr. Regalado said he is in talks with Congressman Anthony T. Golez, Jr. regarding a proposal to transfer the oversight of HMOs to another agency under the Department of Finance. This would also need to be coordinated with other concerned agencies, he added.

“I think we have to get the wisdom of the legislators. It has to be covered by law, so the mandate is clear,” Mr. Regalado said.

With HMOs being covered by anti-money laundering rules, the sector needs to be regulated by a financial regulator, he added.

Meanwhile, the IC will likely delay its proposal to hike HMOs’ minimum capital requirements, Mr. Regalado said.

The IC in July issued a draft circular that proposed to raise the minimum paid-up capital of HMOs to P50 million by end-2024 from the current P10 million. Meanwhile, new HMOs must put up at least P100 million in capital.

By end-2025, all HMOs should have at least P100 million in paid-up capital under the proposal. This would be increased to P200 million by end-2028, to P350 million by end-2031 and to P500 million by end-2034.

“We have not spoken with the hospitals and the doctors. We may have to be doing that because it’s something that we have not been having much of a dialogue. So, we’ll have to coordinate with the Department of Health on how we’re supposed to go about it because now we will have to check on the proper rates that we’re supposed to be putting up,” Mr. Regalado said.

“It’s a moving target. We are reviewing. To be honest about it, we are reviewing because this has been given to us through an executive order… We’re in continuing discussion with Congress on how we’re supposed to go about it because once we have a clearer mandate, I think that would be good,” he added.

The HMO industry booked a combined net income of P636.6 million at end-June versus the P1.19-billion net loss booked in the same period last year, according to IC data based on the unaudited financial statements of 25 companies.

Only six out of the 25 licensed HMO companies recorded net losses in the period, according to the report, with all firms meeting the current P10-million capital requirement. — AMCS

DigiPlus Q3 profit jumps to P3.52B on user traffic, new games

DIGIPLUS.COM.PH

LISTED DigiPlus Interactive Corp. saw a 247% increase in its third-quarter net income to P3.52 billion from P1.02 billion a year ago, led by higher user traffic and new game offerings.

Third quarter revenue improved by 171% to P19 billion from P7.01 billion last year, DigiPlus said in a statement to the stock exchange on Tuesday.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 206% to P3.83 billion.

For the first nine months, DigiPlus saw a 314% growth in net income to P8.75 billion from P2.1 billion in 2023, led by its retail games, new product offerings, and cost efficiencies.

Revenue jumped by 223% to P51.56 billion from P15.98 billion in 2023.

EBITDA also grew by 271% to P9.34 billion.

DigiPlus operates platforms such as BingoPlus, ArenaPlus, PeryaGame, Tongits+, and GameZone.

In September, the company’s BingoPlus platform launched the Pinoy Drop Ball digital game, the first live-streamed drop ball experience in the Philippines. The company also introduced the Super Ace Jackpot that offers P200 million in jackpots and individual wins reaching up to P30 million.

“Pinoy Drop Ball and Super Ace Jackpot are quickly rising as fan favorite and expected to drive significant revenue growth for DigiPlus in the coming months, as they capture the thrill and loyalty of Filipino players,” DigiPlus said.

On Tuesday, DigiPlus shares rose by 2.16% or 45 centavos to P21.25 per share. — Revin Mikhael D. Ochave

Wodd PH uses bamboo to make sunglasses, cut waste

STARTUP WODD PH uses bamboo to make sunglasses in line with Quezon City’s push to cut plastic waste.

It also helps Filipino farmers in Cebu and Davao, where it gets the raw materials to make wood and bamboo-oriented consumer and fashion products.

“The more you use local farmers, the more you’re giving them opportunities,” Stephene Roy C. Condino, group executive vice-president at MASA Group of Companies, the parent of Wodd PH, told BusinessWorld in an interview.

The “poor man’s timber” is a versatile material used in products like furniture, paper, musical instruments, accessories, and food.

In the Philippines, there are about 50,000 hectares of bamboo forests, according to the Department of Environment and Natural Resources.

Despite the demand for bamboo in the Philippines, it is still considered an untapped potential, according to the Department of Trade and Industry.

To maximize the produce from five to 10 local farmers, a strand of bamboo creates about two to three pieces of eyewear that costs P4,000 each and takes two days to make.

“If there is a demand to produce more, you will need to have more farmers,” Mr. Condino said.

He said it is difficult to market sustainable products in the Philippines because people think they are expensive.

“Eventually, no one believes in what you do as a sustainable company because they are not used to it,” he said. “We have to inform everyone that it’s not always cost-driven.”

Committed to promoting sustainability, the environmental startup has pledged to plant a tree for every eyewear it sells.

As many as 3,000 tree seedlings had been planted in Samar, Davao del Sur, Bicol and Rizal as of October as part of this environmental commitment.

“We have to ensure that we take good care of these seedlings,” Mr. Condino said. “When we plant them, they will grow for three years and not just for a short time.”

He added that customers should be aware of the sustainability work done by businesses that sell eco-friendly products and services.   

“We need to see action. We need to see results coming from what we’re trying to portray to customers,” he added. — Almira Louise S. Martinez

Governance myopia or mysteries

FREEPIK

Shortsightedness is only too obvious when one sees the remains of the fake beach along Roxas Boulevard. This senseless project that has harmed the environment executed by of all things, the Department in charge of protecting it, is a disgraceful piece of evidence of government myopia. The proponents and its approvers did not anticipate the heavy rains and typhoons that recur in our country year after year. And did not provide for maintenance and security arrangements that became the cause for the abandonment of the project.

Here in Cebu, day after day, there is a traffic bottleneck at the corner of Salinas Drive and Gorordo Ave., two of the main roads along residential, and increasingly commercial, areas. Gasoline is wasted as motor vehicles stall for 10 to 20 minutes in the unnecessary traffic jam.

Some years ago, money from the Priority Development Assistance Fund (PDAF or pork barrel) was allocated for a huge overpass that would traverse and uglify the gracious Gorordo Ave. for several blocks. Fortunately, a group of citizens organized themselves into a “movement for a livable Cebu” and lobbied noisily in the media and with the National Government to stop the ugly overpass from being built.

Even a non-engineer like me can see that there are obvious, and simpler solutions to the traffic snarl at the intersection: Reduce the parking area of a mini mall at the intersection. In order to let traffic from Gorordo Ave. flare into the Salinas Drive, redesign the wasteful traffic “island.” Cut into the space occupied by an economically unproductive Church compound that does not even pay taxes.

But until today, because of myopia or “mysteries,” the traffic bottleneck continues at that busy intersection because government has not done anything new since the overpass project was discarded years ago. Meanwhile, gasoline prices continue to increase, and thousands of peoples’ precious time continues to be wasted day after day, hour after hour.

On another busy road, A.S. Fortuna, which has become more and more commercialized, floods occur whenever heavy rains come to Cebu City. This road becomes unpassable. The public works crews have come and gone; yet the floods still occur. It seems to a few simple folk like me that the government cannot seem to see that the waters do not drain because certain parts of A.S. Fortuna, such as the section surrounding a memorial chapel, have been cemented all the way to its parking area. Why doesn’t the government ask the owners of the memorial chapel to convert some of the cemented land into drainable space? Is it another case of myopia, or mystery?

The Secretary of Finance has directed that the almost P90 billion in excess or unused Philippine Health Insurance Corp. (PhilHealth) funds be turned over to the national treasury. This is against the law that provides that excess or unused PhilHealth funds can only be used to expand services or reduce premiums. It is obvious that PhilHealth management has failed to plan intelligently for the effective use of the funds to benefit its members, who contribute 4% of their monthly salaries as members. And now, the premiums, it seems, have been increased to 5%, yet they cannot even make effective use out of the 4% contributions. Myopia, or mystery?

My housekeeper’s brother, who had a motorcycle accident over the weekend, is in a government hospital awaiting surgery on his head. In order to avail of assistance from the Department of Social Welfare and Development (DSWD), she went to the Philippine Statistics Authority (PSA) to get a copy of his birth certificate. She suddenly came back with a small piece of paper on which the PSA listed eight instructions in bureaucratic English with PSA’s “appointment” website indicated on top. My probinsiyana (provincial) maid, who never entered high school, doesn’t know how to use a computer. Even I, with my master’s degree, have difficulty making sense of the “Steps on how to use the Appointment System.” Even the list of eight steps to take does not make clear at what point the copy of a birth certificate is obtained. Another indication of governance absurdity. 

The Supreme Court has recently affirmed the Sandiganbayan’s decision to dismiss the P276-million case against the Marcoses because, it says, to undue delays in the prosecution of the case.  The Sandiganbayan has explained that the delay is not the fault of the respondents. Thus, the dismissal. And our highest court of justice has affirmed its decision, now that the President is another Marcos! P276 million can fund so many running water systems in the rural areas which will enable housewives to conserve their energies for other family needs than fetching water from distant sources day after day. It could also upgrade government hospitals that care for our poor. This is truly an appalling injustice!

Three months have passed since the government created the much-vaunted multi-billion Maharlika Investment Fund (MIF).  It would be interesting to get a Profit and Loss statement; and in the spirit of transparency, obtain its detailed budget for staffing and salaries. Its CEO, Rafael Jose Consing, should make a report on what the MIF has done, if anything. Or are these more of government’s mysteries?

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

Arts & Culture (11/05/24)


Silverlens makes its debut at Art Week Tokyo

SILVERLENS Gallery will be exhibiting at Art Week Tokyo (AWT) for the very first time as part of the AWT Focus section, with an exhibit titled Earth, Wind, and Fire: Visions of the Future from Asia, curated by Mami Kataoka. It will feature the works of Poklong Anading, Taloi Havini, and Yee I-Lann, on display at the Okura Museum of Art from Nov. 5 to 10. The show will consist of Mr. Anading’s conceptual photographs, Ms. Havini’s wall-bound sculptures, and Ms. Yee’s woven mats.


SM to present Swan Lake ballet filmed for IMAX

THE iconic ballet Swan Lake will be taking flight in an IMAX film from Nov. 8 to 10 at various SM IMAX theaters, including SM Aura and SM Megamall. It will mark the first ever filmed-for-IMAX ballet, moving from the stage to the big screen with the goal of creating an immersive visual and audio experience for moviegoers. Tickets are available via https://bit.ly/SwanLakeAtSMCinema.


CCP Children’s Biennale promotes art appreciation

THE Cultural Center of the Philippines’ (CCP) Children’s Biennale 2024 will bring colorful exhibits, interactive workshops, animated film screenings, and live performances to the Samsung Performing Arts Theater in Circuit Makati on Nov. 9 and 10. Children’s Biennale: Let’s Play! welcomes kids of all ages. On Nov. 9, 10 a.m. and 4 p.m., there will be screenings of the animated film Before Brabant, directed by Alberto “Chino” Rodriguez with a live soundtrack by the Philippine Philharmonic Orchestra. On Nov. 10, 10 a.m. and 4 p.m., there will be a special performance of “Mga Kuwento ni Juan Tamad” by Alice Reyes Dance Philippines. Pre-show activities from 8 to 11 a.m. and 2 to 5 p.m. on both days are scheduled: Young at ART, a web series that features conversations between young children and veteran artists; Tara, Laro Ta(y)o, where children can learn about traditional games and indigenous dances; and Himig Himbing: Mga Heleng Atin, about Philippine lullabies. The event will have a Pay-What-You-Can scheme. Register via this link: https://bit.ly/4f8YDJJ.


Daniel dela Cruz exhibit at Galerie Joaquin

SCULPTOR Daniel dela Cruz has reinterpreted the story of Alice in Wonderland in his works, focusing on the innocence of Alice and the quirkiness of the characters she meets during her adventures. With a delicate, introspective touch emphasizing Alice’s vulnerability, he used brass, copper, and other metals to create intricate sculptures which will be on display at Galerie Joaquin, Rockwell, Makati City, from Nov. 7 to 17.


Digital art workshop at Yuchengco

ASPIRING digital artists can learn skills and new techniques at “Embracing Digital Art,” a three-day workshop with visual artist and multimedia arts professor Benedicto Modesto. He will present the most efficient tools for drawing, painting, and art studies using Krita. The workshop is slated for Nov. 9, 16, and 23, 1 to 5 p.m., at the Y Space at the Yuchengco Museum, RCBC Plaza, Makati City. Tickets cost P2,500 for the general public, P2,000 for seniors and PWDs, and P1,800 for students and academic faculty. Meanwhile, the Yuchengco Museum is currently closed until Nov. 19 for the setup of an exhibition.


Manila Pianos Artist Series presents Al Gatmaitan

THE Manila Pianos Artist Series, in collaboration with Artes Organization, present Al Gatmaitan in the concert Tra Musica E Sogno, an evening that highlights classical crossover pieces. A tenor, theater artist, and actor, Mr. Gatmaitan received extensive vocal education at the University of the Philippines followed by studies at the Conservatory of Music, University of Santo Tomas. He finally finished his Music Degree at St. Paul College, Manila. For this special show, Mr. Gatmaitan’s repertoire includes a mix of Italian, Spanish, and English classical crossover songs influenced by Andrea Bocelli. Concert pianist Dingdong Fiel will share the stage with Mr. Gatmaitan. The concert is slated for Nov. 14, 7 p.m., at the Manila Pianos Showroom, 4/F Ronac Lifestyle Center, Paseo de Magallanes, Makati City. Regular tickets cost P1,000, while they cost P800 for seniors, and P500 for students.

Demand for low-cost transactions to drive Wise’s growth in PHL

ANASTASIA NELEN–UNSPLASH

WISE PHILIPPINES expects transactions coursed through its platform to continue growing as it looks to provide low-cost remittance services and instant international transfers, its top official said.

The global cross-border payments platform entered the Philippine market in May amid the increasing number of freelancers and gig economy workers in the country and the steady growth in remittances and digital payments.

Wise Philippines Country Manager Areson I. Cuevas told BusinessWorld that their main goal is to provide low-cost international fund transfers.

“It’s really about receiving instantly and getting the most money out of what is being sent to them. Of course, we want to support the employers of the freelancers so that their employees in the Philippines could really get the most out of their salaries,” he said.

“And also, the OFWs (overseas Filipino workers). It’s both ways. OFWs will send and the dependents will receive. We want that to be instant, and we want that whatever the OFWs send, there will be as little cost as possible.”

The remittance market is a potential growth area for the company, Mr. Cuevas said.

“If you look at the data by the central bank on inward remittances, that’s $37 billion per year… The aim is to really support a lot of these inward remittances because the more that we support, then the more Filipinos are able to enjoy mid-market rates and lower transaction fees,” he said.

“As we all know, the Philippines is very big on inward remittances, and that’s where Wise could come in with our services,” he added.

Latest data from the Bangko Sentral ng Pilipinas showed that cash remittances grew by 2.9% to $22.22 billion in the January-August period from $21.58 billion a year earlier.

The United States accounted for nearly half or 41.3% of overall remittances in the first eight months. This was followed by Singapore (7%), Saudi Arabia (6.1%), the United Kingdom (4.9%) and Japan (4.8%).

The lack of consumer awareness regarding the fees charged on transactions is both a challenge and opportunity for Wise in terms of customer acquisition, Mr. Cuevas said.

“We really need to educate customers, and that has always been the mission of Wise: to share the cost of hidden markup fees. I think that’s a big friction in how to acquire more customers,” he said. “Wise has been putting out … customer information campaigns on the hidden costs of markups and transparency. Hopefully, more and more Filipinos will realize that okay, there’s this company called Wise, and I should be able to get transfers globally at very low cost and at mid-market exchange rates.”

“There’s a large number of Filipinos who are not aware that their foreign transactions incur a hidden markup, and with Wise you always get mid-market rates, which is what you see on Google. Sometimes Filipinos don’t check what the prevailing mid-market rate is compared to what the provider is giving them, and Wise always offers the mid-market rate,” he added.

Wise Philippines recently gained direct access to real-time electronic fund transfer service InstaPay and the BSP’s gross payment system PhilPaSS Plus, which it expects to result in faster transactions.

Mr. Cuevas said the company is also looking to partner with PESONet, which caters to high-value transactions.

“We cannot say much about that, but it is something that we are looking at. So, hopefully in the future,” he said. “Right now, we want to focus on improving customer experience through InstaPay.”

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks, while InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

The value of transactions done via InstaPay and PESONet jumped by 33.9% year on year to P12.37 trillion as of end-September, latest BSP data showed.

Meanwhile, the combined volume of transactions done via the two payment gateways also surged by 64% year on year to 1.05 billion in the first nine months of the year. — A.M.C. Sy

SteelAsia targets to export P1.2B worth of steel bars early next year

STEELASIA.COM

STEEL MANUFACTURER SteelAsia Manufacturing Corp. expects to ship P1.2 billion worth of steel bars to Canada in early 2025, following the completion of its seventh export of rebar a few days ago, the company said on Tuesday.

The company’s latest shipment, which was sourced from its Davao mill, comprises 30,000 metric tons of steel bars worth P511.24 million, the company said in a statement.

According to the company, its next shipment set for early next year will also be sourced from its plant in Davao.

The manufacturer’s previous six shipments, totaling 41,400 metric tons worth P1.58 billion, came from its Batangas mill and are used for Canadian infrastructure projects.

SteelAsia currently operates five facilities in Batangas, Bulacan, Davao, and Cebu, which supply over 70% of all rebar used in infrastructure, housing, power, industrial, and other business developments in the Philippines. — Justine Irish D. Tabile

Women entrepreneurs need tailored microfinance

FREEPIK

By Darshni Nagaria, Sara Niner and Elena Mayer-Besting

THE FINANCING NEEDS of entrepreneurs vary depending on business size, reason for starting a business and opportunities for enterprise growth. Typically, necessity-driven entrepreneurs start a business venture to support themselves and their families’ livelihoods when there is a lack of decent employment opportunities. As outlined in our recent blog “From necessity to opportunity: Supporting women entrepreneurs at all levels to thrive” in Asia, most women-owned businesses were started out of necessity. Necessity entrepreneurs are more likely to remain at the micro level and their businesses are typically concentrated in low value-added retail and service sectors within the informal economy.

Microfinance programs provide financial services to those who are traditionally unbanked and lack access to conventional banking and related services. The most common form is microcredit or small loans. Other forms include microsavings, microinsurance and micropensions.

Often, necessity driven microentrepreneurs fall into the unbanked category and it is hoped that access to these financial services can drive women’s economic empowerment, which in turn can result in poverty alleviation. However, for this to happen, microfinance programs should consider the different situations and vulnerabilities of clients and mitigate risks. Gaining an understanding of how finances are organized in households, the decision-making power of different household members including who will predominantly control loans, as well as the freedom that clients have in a specific household, community and local context.

Women and girls are often constrained by social customs and beliefs, which can prevent them from having an equal voice in household decision-making, limit their freedom of movement and their ability to make their own economic choices. At the same time, women and girls are usually responsible for the majority of unpaid domestic and care work, leaving them with little time for income-generating activities, such as paid work or entrepreneurship or, if they do juggle both, a highly stressful and sometimes unsustainable double burden. This is important when considering microfinance, as in some cases, women may take out loans, but do not actually control what the funds are used for or how the businesses they fund are managed, while being responsible for the loan’s repayment. These situations are then likely to give rise to indebtedness, high levels of stress and tensions within households, and can lead to domestic violence.

Microsavings models are one more promising alternative to the more well-known forms of micro credit. Microsavings groups allow members to control and grow a common pool of savings funds, borrow from the pool, and benefit from interest repayments by other group members. Savings groups formed within communities allow members to develop schemes based on local needs. Women can set their own interest rates and internal loan processes to suit themselves. They can also plan ahead for when they know loans may be needed most and periods when they cannot be repaid such as before harvest.

However, evidence shows that savings groups (and all forms of microfinance) can also fall short of holistic empowerment unless social norms related to women’s agency are shifted. For microfinance to deliver on its promises, several actions are needed.

There’s a need to consider gender relations and dynamics within communities and households in the design and delivery of financial products and services and relevant regulations, including by engaging local gender experts and women borrowers.

Following a bottom-up participatory approach in the design and delivery of financial products and services by including borrowers and entrepreneurs throughout.

The focus should be on building savings alongside offering credit and debt for women entrepreneurs and borrowers. In cases of low financial resilience, building savings should be prioritized.

There’s also a need to monitor women’s loan use, including their control of the funds within the household. Capping interest rates at low levels will also give women the time to boost their capacity and businesses.

Meanwhile, there’s a need to organize and provide culturally appropriate training about gender roles and relations using feminist methodologies, with men’s engagement to facilitate more balanced, supportive and safe dynamics at the household level.

Support systems such as subsidized childcare, will lead to manageable workloads in the paid labor market.

The United Nations Economic and Social Commission for Asia and the Pacific’s (ESCAP) work on entrepreneurship, in partnership with Global Affairs Canada, has supported necessity-driven women entrepreneurs by providing debt relief support, grants and seed funding and financial literacy training. Among others, the program has underscored the importance of designing gender sensitive financial products and services.

 

Darshni Nagaria is a consultant at ESCAP, while Elena Mayer-Besting is an Economic Affairs officer at the UN agency. Sara Niner is a senior lecturer at Monash University in Melbourne.

Developments in fintech in the Philippines

FREEPIK

There are significant developments in fintech in the Philippines. The changes are mainly in the areas of digital payment systems, digital banks, cryptocurrencies, and central bank digital currencies.

This sector is regulated by the Bangko Sentral ng Pilipinas (BSP).

DIGITAL PAYMENT SYSTEMS
According to the BSP, digital payments in the Philippines made up 52.8% of all retail payment transactions in 2023 — a leap from only 10% in 2018. To regulate this exponential utilization of digital payment systems, Republic Act No. 11127 (the National Payment Systems Act) was passed, governing the registration of payment and settlement systems. Implementing this is BSP Circular No. 1049, which defined the functions of an online payment system (OPS) as follows:

A.) Maintains the platform that enables payments or fund transfers, regardless of whether the source and destination of accounts are maintained within the same or different institutions;

B.) Operates the systems or network that enables payments or fund transfers to be made through the use of payment instruments;

C.) Provides a system that processes payments on behalf of any person or the government; and,

D.) Performs such other similar activities, as may be determined by the Monetary Board.

Given the volume of OPS operators and to minimize the multiplicity of OPS services in the market, BSP Memorandum No. M–2023–005 required all OPS operators to adopt the QRPH standard (or National QR Code Standard) by July 1, 2023 to enable interoperability of payment systems. As the name implies, it requires the use of standardized QR codes that can be used and read by the different apps of the payment service providers.

To integrate with the ASEAN market, the BSP and four other central banks in the region announced that they will interconnect their respective domestic online payment systems through the Bank of International Settlement’s Nexus Project. The BSP also signed the Memorandum of Understanding in Regional Payment Connectivity with the Bank Indonesia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the Bank of Thailand, to “connect instant payment systems and facilitate cross-border transactions for about 500 million people in the ASEAN region” (BSP – 2023 Status of Digital Payments in the Philippines).

DIGITAL BANKING
To date, there are six duly licensed digital banks operating in the Philippines. BSP Circular No. 1105, dated Dec. 2, 2020 considers digital banks as a distinct class of banks, and defines these as banks “which offer financial products and services that are processed through a digital platform and/or electronic channels with no physical branch/sub-branch or branch-lite unit offering financial products and services.” On Aug. 8 this year, the BSP announced that the moratorium imposed on the establishment of digital banks in the Philippines will be lifted on Jan. 1, 2025.

CRYPTOCURRENCIES
Under BSP Circular No. 1108, dated Jan. 26, 2021, cryptocurrencies are treated as virtual assets (VA) transacted through a virtual asset service provider (VASP). A VA is defined as any type of digital unit that can be digitally traded, or transferred, and can be used for payment or investment purposes, while a VASP is defined as an entity that offers services or engages in activities that provide facility for the transfer or exchange of VAs, including:

1.) Exchange between VAs and fiat currencies;

2.) Exchange between one or more forms of VAs;

3.) Transfer of VAs; and,

4.) Safekeeping and/or administration of VAs or instruments enabling control over VAs.

VAs do not have legal tender status. However, VASPs are still considered money service businesses, which are “financial services that involve the acceptance of cash, checks, other monetary instruments or other stores of va1ue, and the payment of a corresponding sum in cash or other form to a beneficiary by means of a communication, message, transfer, or through a clearing network to which the service provider belongs.” Platforms like the Philippine Digital Asset Exchange (PDAX) are examples of VASPs as cryptocurrency platforms.

Barring a change in regulations, the three-year moratorium in granting VASP licenses will be lifted in 2025.

CENTRAL BANK DIGITAL CURRENCY
The BSP also has its own fintech initiatives. For instance, the BSP has been exploring issuance of its own Central Bank Digital Currency (CBDC) through Project Agila, and it is targeting to complete its pilot run by the end of 2024. A CBDC is “a digital form of central bank money that is denominated in a unit of account and functions as both a medium of exchange and a store of value” (Technical Working Group on Central Bank Digital Currency – Central Bank Digital Currency for the BSP, Fundamentals and Strategies).

Unlike cryptocurrencies, a CBDC is considered to be money.

CONCLUSION
Technological advancements in fintech, partnered with the openness of Philippine regulators to innovations in the field, presents a business-friendly environment for future investors, while opening businesses and consumers to various options for smoother and flexible transactions. It also offers a solution for streamlining cross-border transactions. n

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and is not offered as and does not constitute legal advice or legal opinion.

 

Roilan Rigil Kent A. Alonzo is an associate of the Corporate and Special Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

(632) 8830-8000

raalonzo@accralaw.com

QuincyJones, US music legend who reshaped pop music, 91

QUINCY JONES, the man known simply as “Q” who worked with musicians ranging from Count Basie to Frank Sinatra and reshaped pop music with his collaborations with Michael Jackson, died on Sunday at age 91.

Mr. Jones’ publicist confirmed the producer’s death. No details on the cause were disclosed.

There was little Mr. Jones did not do in a music career of more than 65 years. He was a trumpeter, bandleader, arranger, composer, producer and winner of 28 Grammy Awards.

A studio workaholic and a virtuoso at handling delicate egos, he shaped recordings by jazz greats such as Miles Davis, produced Mr. Sinatra, and put together the superstar ensemble that recorded the 1985 fundraiser “We Are the World,” the biggest hit song of its time.

Mr. Jones also was a prolific writer of movie scores and co-produced the film The Color Purple, as well as the 1990s television show The Fresh Prince of Bel Air, which launched the career of Will Smith.

In 1971, Mr. Jones became the first Black musical director for the Academy Awards television broadcast. Later this month, Hollywood’s film academy will celebrate his career with an honorary Oscar to be presented at its annual Governors Awards.

Mr. Jones’ circle of friends included some of the best-known figures of the 20th century. He dined with Pablo Picasso, met Pope John Paul II, helped Nelson Mandela celebrate his 90th birthday and once retreated to Marlon Brando’s South Pacific island to recover from a breakdown.

Everything he did was stamped with his universal and undeniable hipness. U2 frontman Bono called Mr. Jones “the coolest person I’ve ever met.”

Mr. Jones’ most lasting achievements were in collaboration with Mr. Jackson. They made three landmark albums — Off the Wall in 1979, Thriller in 1982, and Bad in 1987 — that changed the landscape of American popular music. Thriller sold as many as 70 million copies, with six of the nine songs on the album becoming top 10 singles.

MUSICAL BREAK-IN
Quincy Delight Jones, Jr. was born March 14, 1933, in Chicago. As a boy, he aspired to be a gangster like those he saw in his rough neighborhood. He was seven when his mother was taken to a mental institution. His father, a carpenter, remarried and moved the family to Bremerton in Washington state, where young Quincy pursued a life of petty crime.

Mr. Jones said his interest in music bloomed in Bremerton, when he and some friends found a piano after sneaking into the community center in the segregated wartime housing project where they lived.

He experimented with different instruments in the school band before settling on the trumpet and by 13 was playing jazz, popular music, and rhythm and blues (R&B) in nightclubs. In Seattle at age 14, Mr. Jones met 16-year-old Ray Charles, not yet famous, who taught him to arrange and compose music.

Basie and trumpeter Clark Terry also would be mentors to the young Mr. Jones and he won a scholarship to what would become the Berklee College of Music in Boston. He gave it up, however, to go on the road with Lionel Hampton’s band as a teenage trumpet player in the early 1950s.

“Music was the one thing I could control,” Mr. Jones wrote in his autobiography. “It was the one world that offered me freedom … I didn’t have to search for answers. The answers lay no further than the bell of my trumpet and my scrawled, penciled scores. Music made me full, strong, popular, self-reliant, and cool.”

In the late 1950s, he went on US government-sponsored tours around the world with a band organized by bebop jazz pioneer Dizzy Gillespie. Mr. Jones then led his own band through Europe.

He was deeply in debt in the early 1960s when he took a job at Mercury Records in New York, becoming one of the first Black executives at a white-owned record company.

There, Mr. Jones ventured out of the jazz genre and produced his first hit single, “It’s My Party,” a Lesley Gore song that topped the US pop chart in 1964.

Jazz purists called him a sell-out for making pop music but Mr. Jones later told Rolling Stone: “The underlying motivation for any artist, be it Stravinsky or Miles Davis, is to make the kind of music they want and still have everyone buy it.”

At Mercury, Mr. Jones got his first movie-scoring job, Sidney Lumet’s The Pawnbroker. He went on to score nearly 40 films, including In the Heat of the Night, In Cold Blood, Mackenna’s Gold, The Wiz, and part of the television mini-series Roots.

The people Mr. Jones worked with would populate a jazz or R&B hall of fame: Basie, Gillespie, Tommy Dorsey, Dinah Washington, Nat King Cole, Sarah Vaughan, Aretha Franklin. But he also produced in other genres with, among others, Paul Simon, Amy Winehouse, Barbra Streisand, and Donna Summer.

He arranged Mr. Sinatra’s hit “Fly Me to the Moon” that astronaut Buzz Aldrin played a cassette recording of during the first moon landing in 1969. Years later, Mr. Jones told GQ magazine that Mr. Sinatra “called me up, and he was like a little kid: ‘We got the first music on the moon, man!’”

His own recordings were just as eclectic, veering from jazz to soul, African to Brazilian. In 1991, his Back on the Block record won the Grammy for album of the year and also Grammys in the rap, rhythm and blues, jazz fusion, and instrumental categories.

Mr. Jones’ work with Mr. Jackson was historic, although Mr. Jackson’s record company initially thought Mr. Jones was too jazzy to be his producer. They started in 1979 with Off the Wall, after the singer had split from his brothers in the Jackson 5 and put together a mix of dance tracks and ballads. The album featured four songs that became top 10 hits.

Their 1982 collaboration, Thriller, became a cultural touchstone of the 1980s. Mr. Jones and Mr. Jackson wanted to broaden Mr. Jackson’s fan base so they added rock elements, getting guitarist Eddie Van Halen to play a blistering solo on “Beat It,” which became one of Mr. Jackson’s biggest hits ever. Complemented by dazzling videos featuring Mr. Jackson’s mesmerizing dancing just as MTV was coming of age, Thriller made the entertainer one of the biggest stars in the world.

DIVINE COLLABORATION
Hits like “Beat It,” “Billie Jean,” and the title song made Thriller the biggest-selling album of all time. It won three Grammys for Mr. Jones and seven for Mr. Jackson.

They followed that in 1987 with Bad, which had five No. 1 hits, including “Smooth Criminal” and “Man in the Mirror.”

In 1985, Mr. Jones, Mr. Jackson, and singer Lionel Richie organized “We Are the World,” a record to raise money for fighting famine in Ethiopia. The huge all-star chorus featured Ray Charles, Bob Dylan, Diana Ross, Bruce Springsteen, and Smokey Robinson. Mr. Jones set the tone for the recording session with a sign that said: “Leave your ego at the door.”

“Wow Q — what a great ride!” Mr. Richie said above a picture of the two that he posted on social media platform X on Monday.

Oprah Winfrey, who said Mr. Jones “discovered” her for her Oscar-nominated role in The Color Purple, called him “one of one.”

“My life changed forever for the better after meeting him,” Ms. Winfrey wrote on Instagram. “I had never experienced, nor have since, anyone (whose) heart was so filled with love.”

Mr. Jackson died in 2009, and Mr. Jones later sued the estate, testifying that he was “cheated out of a lot of money” in royalties. In July 2017, a Los Angeles jury awarded Jones Mr. $9.4 million.

Mr. Jones started his own record label, Qwest, as well as Vibe, a magazine that covered the hip-hop world, and had various foundations and humanitarian projects.

He kept launching new projects well past the traditional retirement age. In 2018, Mr. Jones, then 84, told GQ magazine: “I never been this busy in my life.”

Mr. Jones was married three times. His first wife was his high school sweetheart Jeri Caldwell with whom he had one daughter; his second wife was Swedish model Ulla Andersson with whom he had two children, including Quincy III, who became a hip-hop producer.

His third wife was Mod Squad actor Peggy Lipton, with whom he had two daughters, including actor Rashida Jones. He had two other children outside his marriages, including one with actor Nastassja Kinski. — Reuters

Younger Filipinos now more aware about the need for insurance, Manulife Philippines says

THE MANUFACTURERS Life Insurance Co. (Phils.), Inc. (Manulife Philippines) expects younger generations to make up a bigger share of the insurance market amid increasing awareness about the need for protection due to growing wellness concerns.

“If you look at the overall demographics of the Philippines, we have a very young population, and hence, we as an insurance company are always, through our product design, through our communication strategy, through the propositions that we provide to our customers, we are targeting these customers in that age bracket,” Manulife Philippines President and Chief Executive Officer Rahul Hora said at an event on Tuesday.

“[They aren’t the largest portion of the market right now,] but we are seeing an increasing trend with the increased awareness that these age groups have,” he added.

A recent Manulife Philippines study titled “In Wellness and In Health: Navigating the landscape of health, well-being, and financial preparedness in the Philippines,” which covered 1,000 Filipino consumers, showed that young Filipinos are dealing with wellness concerns, highlighting the need for insurance coverage, he said.

Filipinos aged 18-29 years old said their average number of sick days a year was at 3.4, higher than the 2.7 average for all respondents, the study showed.

Those aged 30-39 years old felt sick 2.7 times over the last 12 months, while respondents who were 40-49 years old had an average of two sick days. Lastly, those in the ages of 50-55 years old were sick 1.9 times a year.

The study showed the top five illnesses Filipinos are worried about are diabetes (36%), anxiety (36%), depression (35%), heart disease (34%), and cancer (26%).

Concerns about anxiety and depression were also more common with the younger generation and with females, the report said.

This was due to Filipinos not getting enough sleep (28%), believing that following a regular exercise routine is expensive (68%), and thinking that changing their current lifestyle would mean changing their social life which is difficult (50%).

Some 33% of the respondents said their current lifestyles were unhealthy. This was more prominent among lower middle-income households (46%), while only 31% and 29% of middle-income households and upper-income households, respectively, admitted having unhealthy lifestyles.

“I think the first thing that was quite encouraging was that overall, there is awareness. There is awareness and appreciation,” Mr. Hora said.

On the other hand, 24% of the respondents said they do not know what a healthy diet is, while 34% said they do not have time to think about their diet.

Respondents said they were unable to commit to a healthy lifestyle as 54% of them believe that healthy eating is more expensive, 46% think healthy food does not taste good, and 35% said healthy food is hard to prepare or not easy to find.

“Another couple of myths that came up, which were quite surprising, was that 25% of respondents actually believed that critical illness can only happen to you when you’re middle-aged or older,” Mr. Hora said. “Another surprising myth that came up was that 21% still think that eating habits and nutrition have little or no impact on children’s mental development.”

For exercising, 40% said exercise is always painful or takes too much effort, 38% said they are too busy, while 37% said they do not know what type of exercise is appropriate for them.

“It’s not easy to find ways of exercising. There are not even certain parks around to walk and in a safe environment. So, even if they would want to commit, accessibility continues to be a challenge for our customers as far as exercising is concerned,” Mr. Hora said.

Another key finding was that 41% of respondents’ medical spending was out of pocket.

“This figure, over the years, we’ve seen it declining, which is good news. A few years back, this figure was as high as 52%. But either way, it’s extremely high,” Mr. Hora said.

Broken down, 82% of respondents said they source their funds from personal savings, 26% from health maintenance organizations, and 22% via loans from family and friends.

“Now imagine the impact that this has on their own financial well-being because these savings were probably meant for something else. These savings were probably meant for their children’s education, for other meaningful expenditures that they were planning for but it had to be consumed for a medical expense,” Mr. Hora said.

“If you ask them what is the amount of savings that they have at this point of time, they are in the range of about P38,000. That’s the amount of savings they have with them to deal with any medical expense. How much they would need is about in the range of P75,000 to P80,000. So, that’s the gap that they will have to fill out if anything was to happen to them at this point of time,” he said. “Even if you quantify this gap that we were talking about, it’s quite a significant gap. Where they are and where they need to be, there’s a huge financial gap that we need to fill.”

Manulife Philippines’ premium income stood at P15.54 billion in 2023. Its net income was at P1.899 billion. — A.M.C. Sy

How PSEi member stocks performed — November 5, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, November 5, 2024.