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Risk of broader war eases a bit after Israel-Hezbollah exchange

TOY SOLDIERS, Hezbollah and Israel flags are seen in this illustration taken on Oct. 15, 2023. — REUTERS

ABOARD A US MILITARY AIRCRAFT — The near-term risk of a broader war in the Middle East has eased somewhat after Israel and Lebanon’s Hezbollah exchanged fire without further escalation but Iran still poses a significant danger as it weighs a strike on Israel, America’s top general said on Monday.

Air Force General C.Q. Brown, chairman of the Joint Chiefs of Staff, spoke to Reuters after emerging from a three-day trip to the Middle East that saw him fly into Israel just hours after Hezbollah launched hundreds of rockets and drones at Israel, and Israel’s military struck Lebanon to thwart a larger attack. It was one of the biggest clashes in more than 10 months of border warfare, but it also ended with limited damage in Israel and without immediate threats of more retaliation from either side.

Mr. Brown noted Hezbollah’s strike was just one of two major threatened attacks against Israel that emerged in recent weeks. Iran is also threatening an attack over the killing of a Hamas leader in Tehran last month.

Asked if the immediate risk of a regional war had declined, Mr. Brown said: “Somewhat, yes.”

“You had two things you knew were going to happen. One’s already happened. Now it depends on how the second is going to play out,” Mr. Brown said while flying out of Israel.

“How Iran responds will dictate how Israel responds, which will dictate whether there is going to be a broader conflict or not.”

Mr. Brown also cautioned that there was also the risk posed by Iran’s militant allies in places such as Iraq, Syria and Jordan who have attacked US troops as well as Yemen’s Houthis, who have targeted Red Sea shipping and even fired drones at Israel.

“And do these others actually go off and do things on their own because they’re not satisfied — the Houthis in particular,” Mr. Brown said, calling the Shia group the “wild card.”

Iran has vowed a severe response to the killing of Hamas leader Ismail Haniyeh, which took place as he visited Tehran late last month and which it blamed on Israel. Israel has neither confirmed or denied its involvement.

Mr. Brown said the US military was better positioned to aid in the defense of Israel, and its own forces in the Middle East, than it was on April 13, when Iran launched an unprecedented attack on Israel, unleashing hundreds of drones, cruise missiles and ballistic missiles.

Still, Israel, the US and other allies managed to destroy almost all of the weapons before they reached their targets.

“We’re better postured,” Mr. Brown said. He noted Sunday’s decision to maintain two aircraft carrier strike groups in the Middle East, as well as extra squadron of F-22 fighter jets.

“We try to improve upon what we did in April.”

Mr. Brown said whatever plans Iran’s military might have, it would be up to Iran’s political leaders to make a decision. “They want to do something that sends a message but they also, I think … don’t want to do something that’s going to create a broader conflict.”

STRUGGLING WITH GAZA FALLOUT
US President Joseph R. Biden’s administration has been seeking to limit the fallout from the war in Gaza between Hamas and Israel, now in its 11th month. The conflict has leveled huge swathes of Gaza, triggered border clashes between Israel and Lebanon’s Iranian-backed Hezbollah movement and drawn in Yemen’s Houthis.

Mr. Brown traveled on Monday to the Israeli military’s Northern Command, where he was briefed on the threats along Israel’s borders with Lebanon and Syria. In Tel Aviv, he met Israel’s Defense Minister Yoav Gallant and its Chief of the General Staff Lieutenant General Herzi Halevi.

Asked about Lebanese Hezbollah’s military might, particularly after the strikes by Israel, Mr. Brown cautioned “they still have capability.”

The current war in the Gaza Strip began on Oct. 7, 2023, when Hamas gunmen stormed into Israeli communities, killing around 1,200 people and abducting about 250 hostages, according to Israeli tallies.

Since then, Israel’s military campaign has driven nearly all of the Palestinian enclave’s 2.3 million people from their homes, giving rise to deadly hunger and disease and killing at least 40,000 people, according to Palestinian health authorities. — Reuters

Sea levels rising faster in Pacific than elsewhere, says WMO report

GENEVA — Sea level rises in the Pacific Ocean are outstripping the global average, a World Meteorological Organization (WMO) report showed on Tuesday, imperiling low-lying island states.

Globally, sea level advances are accelerating as higher temperatures driven by the continued burning of fossil fuels melt once-mighty ice sheets, while warmer oceans cause water molecules to expand.

But even compared to the global average rate rise of 3.4 millimeters a year over the past three decades, the WMO report showed that the average annual increase was “significantly higher” in two measurement areas of the Pacific, north and east of Australia.

“Human activities have weakened the capacity of the ocean to sustain and protect us and — through sea level rise — are transforming a lifelong friend into a growing threat,” said WMO Secretary-General Celeste Saulo in a statement to coincide with the release of the regional State of the Climate report 2023 at a forum in Tonga.

Already, such rises have brought a surge in the frequency of coastal flooding since 1980, with dozens of instances happening in islands like the Cook Islands and French Polynesia which previously reported just a handful of such cases annually.

Such events are sometimes caused by tropical cyclones which scientists think could also be intensifying due to climate change, as sea surface temperatures climb.

Over 34 hazards like storms and floods were reported in the Pacific region in 2023, resulting in more than 200 deaths, the WMO report said, adding that only a third of small island developing states had early warning systems.

A WMO spokesperson said that the impact of rising water levels on Pacific islands was disproportionately high since their average elevation is just a meter or two (3.3 to 6.5 feet) above sea level.

To raise awareness of the dangers, Tuvalu’s foreign minister gave a speech to the United Nations climate conference in 2021 while standing knee-deep in seawater, making global headlines.

But the WMO report said further rises across the planet would “continue for centuries to millennia due to continuing deep ocean heat uptake and mass loss from ice sheets.” — Reuters

Gogolook to strengthen TrustTech in PH

Gogolook Co-Founder and CEO Jeff Kuo

Leading global TrustTech company Gogolook has committed to strengthening Filipinos’ personal cybersecurity through trust technology for a safe digital life, according to its Co-Founder and CEO Jeff Kuo.

Mr. Kuo said that Gogolook aims to put the Philippines at the forefront of TrustTech innovation with its latest commitment to the country. “Our mission is to create a scam-free environment in the Philippines through TrustTech to ensure a safe digital life for Filipinos,” Mr. Kuo revealed.

Mr. Kuo emphasized that TrustTech combines the company’s core value of trust with the use of technology to develop products like Whoscall, which helps users identify and trust unknown communications.

“Some people ask me what TrustTech is. Both ‘Trust’ and ‘Tech’ are fairly easy to understand: the former represents our company’s core value, while the latter is the tool to realize it. When we combine these two words, it reflects the philosophy behind our product development,” Mr. Kuo explained. “For example, Whoscall utilizes technology to enable users to trust unknown calls, messages, and websites,” Mr. Kuo added. 

Mr. Kuo said that Gogolook is dedicated to protecting users from scams and fraud through innovative technology to make Internet access a worry-free experience for all. 

“We firmly believe that everyone should be able to freely use the Internet and other digital services without worrying about scams or other forms of fraud. Gogolook is building trust through technology,” Mr. Kuo said.

Mr. Kuo said that Gogolook uses advanced technology and AI to offer anti-scam and fintech services to safeguard everyone’s digital life.

“We are committed to providing Filipinos with reliable services as our technology and products undergo rigorous assessment and verification to comply with various global standards,” Mr. Kuo added.

Gogolook COO Manwoo Joo said the company has achieved important milestones, such as becoming the top caller ID provider in eight countries and the top provider of scam solutions for businesses. 

“Gogolook is more than just a technology company with our extensive data on scams and behavioral patterns. We are focused on solving social issues on a global scale by developing advanced AI solutions to create a trustworthy and more secure digital world,” Mr. Joo explained.

Gogolook Southeast Asia Regional Director and Philippines Country Representative Mel Migriño said they introduced the digital anti-scam app Whoscall in the country last year and partnered with the government, private sectors, and cause-oriented groups to reinforce the company’s commitment to providing a safe digital life.

“With more than 84 million Filipinos using the internet, we want to advocate inclusive personal cybersecurity in the Philippines through the Whoscall app,” Ms. Migriño said.

Founded in 2012, TrustTech provider Gogolook was established with “Build for Trust” at its core and offers global anti-scam service driven by AI and data. Additionally, Gogolook has partnered with ScamAdviser, leveraging AI-driven website risk rating technology, to create the world’s most comprehensive digital anti-scam database and provide advanced scam prevention solutions for businesses.

Gogolook is a founding member of the Global Anti-Scam Alliance (GASA) and collaborates with the Taiwan National Police Agency, the Thai Royal Police, the Philippines’ Cybercrime Investigation and Coordinating Center, the Financial Supervisory Service of South Korea, the Fukuoka City and Shibuya city government, and the Royal Malaysia Police to fight scams, dedicated to creating a “scam-free environment.”

 

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[B-Side Podcast] Finding the Sweet Spot: How Sugar Taxes Can Fight Obesity and Offset Inflation Impacts

Follow us on Spotify BusinessWorld B-Side

Obesity is now a rising health problem in the Philippines, with a staggering 27 million Filipinos considered overweight or obese, according to a 2019 survey by the Department of Science and Technology’s Food and Nutrition Research Institute (DOST-FNRI).

To combat obesity, the government imposed an excise tax on sugar-sweetened beverages under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which was signed in December 2017.

However, with sustained inflation, the initial impact of the sugar-sweetened beverage tax has diminished, according to the Congressional Policy and Budget Research Department of the House of Representatives.

In light of this issue, I spoke with Filomeno S. Sta. Ana III, a coordinator of Action for Economic Reforms (AER) and a columnist for BusinessWorld.

He discussed the importance of protecting the value of the sugar-sweetened beverage tax amid sustained inflation.

He also shared his insights on the implications of a higher sweetened-beverage tax in combating health problems like obesity and how it can finance other government nutrition programs.

Interview by Edg Adrian A. Eva
Editing by Jayson John D. Marinas

Follow us on Spotify BusinessWorld B-Side

UN warns Libya faces economic collapse amid central bank crisis

TRIPOLI – The United Nations Support Mission in Libya (UNSMIL) issued a statement late on Monday expressing deep concern “over the deteriorating situation in Libya resulting from unilateral decisions.”

Disputes over control of Libya’s Central Bank have raised alarms about the potential misuse of the country’s financial resources.

“UNSMIL is convening an emergency meeting for all parties involved in the Central Bank of Libya crisis in order to reach a consensus based on political agreements, applicable laws, and the principle of the central bank’s independence,” the statement said.

The UN mission has called for the suspension of unilateral decisions, the lifting of force majeure on oil fields, the halting of escalations and use of force, and the protection of Central Bank employees.

Libya’s economy is heavily reliant on oil revenue, and there have been moves to impose force majeure on oil fields, effectively cutting off the country’s primary source of income.

Earlier on Monday, Libya’s eastern-based administration ordered the closure of oilfields in eastern Libya, which account for almost all the country’s production, halting both production and exports after tensions flared over the Central Bank’s leadership.

There has been no confirmation of these actions from the internationally recognized government in Tripoli or from the National Oil Corp (NOC), which controls the country’s oil resources. — Reuters

Champion sustainability: Submit to the Triple P Awards Before Aug. 30

The race is on! As the world continues to prioritize sustainable practices and corporate responsibility, the International Association of Business Communicators (IABC) Philippines invites organizations to showcase their commitment to a sustainable future by participating in the Triple P Awards. With the deadline for submission fast approaching on Aug. 30, 2024, now is the time to put your company’s sustainability achievements in the spotlight.

The Triple P Awards for planet, people, and progress, honors and celebrates excellence in sustainable business practices, transparency, and impactful communication. Whether your organization has redefined industry standards through sustainable practices, created a meaningful impact on your community, or demonstrated leadership in environmental stewardship, this is your opportunity to be recognized among the best in the industry.

Why Participate?

As the corporate landscape evolves, the importance of ESG strategies has never been more critical. Investors, customers, and employees are increasingly prioritizing sustainability and ethical practices in their decision-making processes. Participating in the IABC Triple P Awards positions companies as leaders in this transformative arena, allowing them to highlight their commitments to sustainability and social responsibility.

Melody del Rosario, IABC Chair and ESG Committee head, shared her thoughts on the significance of these awards: “The Triple P Awards represents a powerful opportunity for businesses to demonstrate how they are making a difference. Each entry contributes to a growing narrative of purposeful business, and I encourage all organizations to share their sustainability stories and inspire positive change.”

How to Submit

The submission process is straightforward. Interested organizations can visit the IABC Philippines website at www.iabcphppp.com, where they will find the submission guidelines and criteria. Remember, the deadline is Aug. 30, so don’t miss this chance to share your sustainability journey with the world.

Amplify Your Impact

The Triple P Awards is more than just a recognition; it is a platform to inspire others, lead by example, and amplify the impact of your sustainability efforts. By entering, your organization can inspire others and contribute to a broader dialogue on corporate responsibility and sustainable innovation. This is your moment to lead and make a lasting difference.

Submit your entry today and be recognized for your contributions to a more sustainable future.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Australia to limit foreign student enrolments in migration crackdown

REUTERS

SYDNEY – Australia said on Tuesday it would limit the enrolment number of international students at 270,000 for 2025, as the government looks to rein in record migration that has contributed to a spike in home rental prices.

The decision follows a raft of actions since last year to end COVID-era concessions for foreign students and workers in Australia that helped businesses recruit staff locally while strict border controls kept overseas workers out.

“There’s about 10% more international students in our universities today than before the pandemic and about 50% more in our private vocational and training providers,” Education Minister Jason Clare told a press conference.

The reforms are designed to make the international student sector better and fairer, and this will set it up on a more sustainable footing going forward, Mr.Clare said.

International education is one of Australia’s largest export industries and was worth A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year.

But polls have showed voters are concerns about large influxes of foreign students and workers putting excess pressure on the housing market, making immigration one of the potential major battlegrounds in an election less than an year away.

Net immigration hit a record high in the year to Sept. 30, 2023, surging 60% to a record 548,800, higher than the 518,000 people in the year ending June 2023.

Australia boosted its annual migration numbers in 2022 to help businesses recruit staff to fill shortages after the COVID-19 pandemic brought strict border controls, and kept foreign students and workers out for nearly two years.

The record migration – driven by students from India, China and Philippines – has expanded labor supply and restrained wage pressures, but it exacerbated an already tight housing market.

In a bid to contain the surge in migration, the government last month more than doubled the visa fee for foreign students and pledged to close loopholes in rules that allowed them to continuously extend their stay. — Reuters

Philippines says China is ‘biggest disruptor’ of peace in the region

PHILSTAR

MANILA – The Philippines’ Defence Minister said on Tuesday that China is the biggest disruptor of international peace in the region.

Manila was serious about protecting its sovereignty, Philippines Defense Secretary Gilberto Teodoro told an annual military conference of the United States Indo-Pacific command.

Mr. Teodoro urged partner nations to call out China’s “illegal actions” in the South China Sea.

Brunei, Malaysia, Taiwan, and Vietnam have competing claims of sovereignty in portions of the South China Sea, a conduit for more than $3 trillion in annual ship-borne commerce. China rejects a 2016 ruling by the Permanent Court of Arbitration in the Hague that found Beijing’s expansive claims over the South China Sea had no basis under international law. — Reuters

Geeian ‘Ghie’ Gambala: A beacon of hope for mental health awareness

Geeian “Ghie” Gambala, a dedicated Mental Health Advocate with The Project Eight Initiative, has emerged as a powerful voice in the field of mental health awareness. Her journey from a mentor to a passionate advocate reflects her deep commitment to breaking the stigma surrounding mental health issues and fostering a supportive environment where individuals can seek help and thrive.

A Foundation in Mentorship and Advocacy

Ghie’s passion for mental health advocacy is deeply rooted in her background as a mentor. Over the years, she has attended numerous forums and seminars, gaining insights and expertise that have shaped her approach to mental health awareness. Her active participation in these events has equipped her with the knowledge and tools necessary to guide individuals through their mental health journeys, making her a trusted resource for those seeking support.

As a mentor, Ghie has always been driven by a desire to help others realize their potential and overcome the challenges they face. She understands that mental health is a crucial aspect of overall well-being, and she has dedicated herself to raising awareness about the importance of mental health care. Her advocacy focuses on educating people about mental health issues, promoting early intervention, and encouraging open conversations about mental health.

Championing Mental Health Awareness

Through The Project Eight Initiative, Ghie has taken her advocacy to the next level. She has spearheaded numerous campaigns aimed at raising awareness about mental health, particularly in communities where such topics are often misunderstood or ignored. Ghie’s approach is holistic — she not only addresses the symptoms of mental health issues but also tackles the root causes, such as stress, societal pressures, and lack of support systems.

Education and Awareness: Ghie strongly believes that education is key to breaking the stigma surrounding mental health. She actively participates in community outreach programs, seminars, and workshops where she shares her knowledge and experiences. By providing accurate information and debunking myths, Ghie empowers individuals to take charge of their mental health and seek the help they need without fear of judgment.

Support and Advocacy: Understanding that mental health issues can be isolating, Ghie emphasizes the importance of creating a supportive environment. She advocates for accessible mental health services and encourages communities to support one another. Her work often involves collaborating with other mental health professionals and organizations to provide resources and support networks for those in need.

Promoting Resilience: Gambala’s advocacy also focuses on building resilience — teaching individuals how to cope with life’s challenges in healthy ways. She promotes self-care, mindfulness, and other practices that contribute to mental well-being. Her message is clear: mental health is just as important as physical health, and taking care of it should be a priority.

Leadership and Personal Integrity

Ghie’s leadership within The Project Eight Initiative is marked by her compassion, empathy, and unwavering dedication to her cause. As a responsible mother and trusted friend, she exemplifies the values she advocates for. Her role as a mother has given her a unique perspective on the importance of mental health, not just for individuals, but for families and communities as a whole. She understands the challenges of balancing responsibilities and self-care, and she uses her experiences to guide others in similar situations.

Her friends and colleagues describe Ghie as a pillar of strength — someone who can be relied upon for support, guidance, and a listening ear. Her ability to connect with people on a personal level has made her a trusted confidante for many who are struggling with mental health issues. Ghie’s leadership is not just about providing direction; it’s about creating a space where individuals feel safe, heard, and valued.

A Vision for a Mentally Healthy Society

Ghie Gambala’s work with The Project Eight Initiative continues to inspire and empower individuals to prioritize their mental health. Her advocacy is making a tangible difference in the lives of many, helping to create a society where mental health is understood, respected, and supported.

As she moves forward in her journey, Ghie remains committed to her mission of raising mental health awareness and providing support to those in need. Her story is a powerful reminder that with education, compassion, and determination, we can build a mentally healthy society where everyone has the opportunity to thrive. Through her leadership, Ghie is not just advocating for mental health; she’s creating a legacy of hope, resilience, and empowerment for generations to come.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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SEC says planned fee hike still a go

SEC.GOV.PH

THE SECURITIES and Exchange Commission (SEC) said the proposed hike in its fees would push through after clearing the regulatory impact assessment of the Anti-Red Tape Authority (ARTA).

“We’ve already secured the ARTA’s no objection, basically saying that it’s within our authority. We will ensure that there will be a reasonable transition before any hike is implemented,” SEC Commissioner McJill Bryant T. Fernandez told reporters in Makati City last week.

“It’s now all about timing because we have secured the necessary clearances, even the ARTA, after submitting our regulatory impact assessment. From our end, in terms of clearances from higher-ups, we’ve done it already,” he added.

However, Mr. Fernandez said there is no specific date yet for the proposed fee hike’s implementation.

“It (fee hike) is still part of the plan. There’s no need to raise any alarm bells because the No. 1 priority is to afford companies and industries a reasonable transition,” he said.

Mr. Fernandez said the SEC has also informed local businesses groups of ARTA’s go signal for the fee hike.

“Definitely, our doors are open, and we will be reaching out to them once we are in the implementation stage,” he said.

Asked if there are any changes in the fees to reflect rising inflation, Mr. Fernandez said this would need to go through the necessary clearances.

“The decisions would have to be in tune with reality, factoring everything. But if you’d have any change in terms of rates, you have to go through the same route in terms of getting the clearances,” he said.

In August last year, the SEC proposed to raise fees and charges, which have not changed since 2017. Proceeds from the fee hike will be used to develop the corporate regulator’s digital services.

Under the SEC’s proposal, the fees would increase to one-fourth of 1% of an entity’s authorized capital stock but not less than P2,500 of the subscription price of the subscribed capital stock, whichever is higher.

Another proposed change is to charge corporate issuers one-fourth of 1% of total indebtedness when creating bonded indebtedness.

The SEC also proposed to set the fee on the total transactions cleared and settled in the previous year by the Securities Clearing Corp. of the Philippines and the Philippine Depository Trust Corp. at 0.1 basis point (bp) and 0.05 bp, respectively.

However, business groups led by the Philippine Chamber of Commerce and Industry (PCCI) objected to the fee hike, calling it “anti-business” and “unnecessary.”

The groups said the hike could discourage the entry of new investments and affect the growth of small and medium enterprises.

PSE-PDS MERGER
Meanwhile, Mr. Fernandez said the planned merger between the Philippine Stock Exchange and Philippine Dealing System Holdings Corp. (PDS) is already out of the SEC’s hands since the commission has already given its approval.

“As far as I know, all that we have to issue from our end, we have issued. If there are business negotiations on the other side, it is up to them. We’ve issued what we need to issue,” he said.

PSE President and Chief Executive Officer Ramon S. Monzon said on Aug. 15 the planned acquisition is expected to be completed in the next few months as part of its growth plans.

The market operator seeks to buy as much as 100% of the PDS as part of efforts to merge the country’s capital market infrastructure.

The Bankers Association of the Philippines said in early August it was expecting an offer from the PSE to buy the group’s 21% stake in PDS, the operator of the Philippine Dealing and Exchange Corp., which caters to the fixed-income market.

The PSE has a 20.98% stake in PDS while BAP members and institutions have a 21% stake.

In 2017, the PSE almost completed its takeover of PDS. However, the SEC blocked the transaction as it would breach the individual ownership limit under the Securities Regulation Code. — Revin Mikhael D. Ochave

POGO ban to curb money laundering activities in Philippines, says AMLC

Police raided a suspected Philippine offshore gaming operator hub in a building in Parañaque City. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

MONEY LAUNDERING activities are seen to decline after the implementation of a total ban on Philippine offshore gaming operators (POGO), the Anti-Money Laundering Council (AMLC) said.

“Considering that the POGO sector is highly vulnerable to money laundering activities, a total ban on POGOs may result in a reduction in money laundering opportunities within the gaming sector,” it said in an e-mail.

A risk assessment conducted by AMLC in March 2020 found that POGOs, considered internet-based casinos, are “highly vulnerable to money laundering.”

“Thus, the risk of money laundering within the gaming sector may decrease with the Philippine government’s ban on the operation of POGOs,” AMLC added.

President Ferdinand R. Marcos, Jr. during his State of the Nation Address last month ordered a total ban on all offshore gaming operations, citing their ties to illicit activities such as money laundering, prostitution and human trafficking.

The Philippine Amusement and Gaming Corp. was directed to shutter all POGO facilities by the end of the year.

The Philippines was among the top five countries in Southeast Asia with increased money laundering activities from 2018 to 2023, earlier data from Moody’s showed. Money laundering events in the Philippines jumped by 45% from 2022 to 2023, it added.

However, the AMLC clarified that the remaining action items set by the Financial Action Task Force (FATF) are related to the mitigation of risks associated with junket operations in casinos and not POGO operations.

In June, the FATF kept the Philippines on its “gray list” of jurisdictions under increased monitoring for money laundering risks for a third straight year.

The FATF said the country has acted on 15 out of its 18 recommended items. One of the remaining items that needs to be addressed is “demonstrating that supervisors are using anti-money laundering and counterfinancing of terrorism (AML/CFT) controls to mitigate risks associated with casino junkets.”

“We reiterate that POGOs are not related to the remaining action item concerning junket operations in casinos,” AMLC said.

“This means that the existence or absence of POGOs in the Philippines will not have an effect in addressing the action item pertaining to junket operations in casinos.”

Junkets are described by AMLC as “an arrangement between a casino and a junket operator to facilitate a period of gambling by one player or a group of players at a casino.”

These are casino marketing programs organized as a gaming tour for “high rollers” who travel to casinos to gamble. These junkets may involve transportation, lodging, casino rewards and the movement of funds to and from the casino, it added.

AMLC said the action item on casino junkets involves implementing anti-money laundering controls to mitigate risks in junket operations.

“Among such measures are the implementation of fit and proper tests on junkets, the use of appropriate customer due diligence mechanisms, and regular monitoring of transactions involving junket operations,” it added.

To further eliminate money laundering risks, AMLC said gaming regulators should enhance their AML/CFT controls.

“To further support decreasing risk in the gaming sector, casino regulators should continue to strongly implement the necessary risk measures, including robust compliance checking and enforcement of anti-money laundering obligations within the sector,” AMLC said.

“In any case, the Philippine government continues to implement all necessary measures to address all its remaining action items within the year to trigger the exit process.”

BSP Governor Eli M. Remolona, Jr. earlier said the Philippines could exit the gray list by next year.

Antonio A. Ligon, a law and business professor at De La Salle University in Manila, said eliminating POGOs will have a “strong positive impact” on investor sentiment.

“Anything that is aimed at stopping illegal activities and irregularities in the business community is welcome,” he said in a Viber message. “The harmful effects of illicit activities should not be ignored because of whatever earnings are derived from POGOs.”

The Makati Business Club earlier said the contribution of POGO investments was “minimal,” equivalent to 0.2% of gross domestic product in 2023.

The Finance department also said reputational risk from POGOs could cost the government P55.36 billion in forgone investments due to their criminal ties, as well as P29.01 billion in forgone revenues in tourism.

Construction issues to push back operations of Bulacan airport to 2028

SAN MIGUEL CORP.

THE START of the Bulacan airport’s operations has been pushed back to 2028 due to delays in construction, San Miguel Corp. (SMC) President and Chief Executive Officer Ramon S. Ang said.

“We are working closely with the government to help us, to allow us and give us some panambak (backfill),” he told reporters last week. “The construction has been delayed because we do not have it. If we can get that, then we can begin construction and make the airport ready to run.”

SMC expects to start development work for its P740-billion Bulacan International Airport or the New Manila International Airport (NMIA) project next year. 

“When they suspended the Manila Bay reclamation, they also stopped sand sources, which affected us. We do not have backfill, which we use for construction,” he said.

In 2023, President Ferdinand R. Marcos, Jr. ordered the suspension of all reclamation projects in Manila Bay pending review of their environmental effects.

Mr. Ang said SMC initially targeted to begin operations of the airport by 2027.

“This delay has incurred additional costs. This one-year delay cost us several hundreds of millions of dollars,” Mr. Ang said. “If we can get the sand right now, we can begin the construction and make the airport ready to run by the first quarter of 2028.”

SMC is developing a 2,500-hectare property in Bulacan province into an aerotropolis featuring a world-class gateway that can handle 100 million passengers a year.

With the delays in the NMIA project, the soon-to-be-privatized Ninoy Aquino International Airport (NAIA) could get a boost, Nigel Paul C. Villarete, senior adviser on PPP (public-private partnership) at the technical advisory group Libra Konsult, Inc., said via Viber.

The SMC-led New NAIA Infrastructure Corp. is set to take over the operations of the country’s main gateway on Sept. 14. In March, it signed a P170.6-billion contract to operate, maintain and upgrade the country’s primary gateway for 25 years.

“Even with the completion of the Bulacan airport, or on its possible designation as the primary airport of the country, NAIA will still continue as an important national airport,” Mr. Villarete said.

Last week, SMC said it was on track to take over the operations of NAIA, outlining its plan for the airport such as spending between P3 billion and P5 billion for the construction of an off-ramp from the NAIA Expressway to Terminal 3. SMC had also proposed to charge vehicles a fee for using certain areas at the airport such as curbsides to address traffic congestion.

“I would expect NAIA to retain most of the national flights, while most of the international flights might be transferred to Bulacan. Thus, the current upgrades would surely boost NAIA’s capabilities, especially now that Bulacan (airport) is delayed,” Mr. Villarete said.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said there should be a focus on upgrades on the airside at NAIA.

“The improvements would come when runways and taxiways are reconfigured plus aircraft-handling optimization,” he said.

However, Mr. Villarete said SMC’s proposal to implement curb pricing at NAIA is not expected to solve the issue of traffic.

“There are other airports in the world that (implement) curb pricing, but there are others that don’t, too. I think that’s fine, but it needs to be properly defined and communicated to the public,” he said. — Ashley Erika O. Jose 

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