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PLDT Home offers unlimited prepaid fiber service

PLDT HOME

PLDT HOME has launched an unlimited prepaid fiber service to give users a flexible connectivity option.

Users can avail of PLDT Home Fiber Prepaid for a one-time installation fee of P999, which includes seven days of free unlimited fiber service.

Subscribers can top up based on their needs and budget options through these fiber prepaid data packages: P50 for one day of service, P199 for seven days, P399 for 15 days, and P699 for 30 days. All options offer unlimited fiber speeds of up to 50 Megabits per second.

“Filipinos have a sharp eye for opportunity — embracing online gigs, remote work, and multiple income streams to uplift their families and chase their dreams. PLDT Home Fiber Prepaid supports this everyday hustle with fast, reliable internet that keeps up with their pace — no monthly bills, no lock-ins, just full control and flexibility,” said John Y. Palanca, senior vice-president and head of Home Consumer Business and Sales and Development at PLDT.

The company said the new product offers users the stability of having a dedicated fiber line.

“Backed by PLDT’s extensive fiber infrastructure with approximately 1.2 million cable kilometers, reaching 18.76 million homes passed and covering 73% of towns and 91% of provinces, PLDT Home Fiber Prepaid ensures more families nationwide gain access to world-class internet,” it said.

“As the country’s leading digital services provider, PLDT Home continues to empower Filipino households through innovative, value-packed solutions that support their goals, dreams, and daily connection needs.”

Customers can apply for PLDT Home Fiber Prepaid via pldthome.com/fiberprepaid, at select PLDT Home sales distributors, or through PLDT stores nationwide.

PLDT Home is a subsidiary of telecommunications company PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — BVR

Yields on term deposits mixed before BSP meet

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits ended mixed on Wednesday as the two-week tenor went undersubscribed before an expected cut in benchmark borrowing costs at the Monetary Board’s meeting on Thursday.

Total bids for the central bank’s term deposit facility (TDF) reached P143.638 billion, just above the P140 billion placed on the auction block but lower than the P151.725 billion in tenders seen last week for a P120-billion offer. The central bank awarded only P119.096 billion in papers.

Broken down, tenders for the seven-day term deposits stood at P94.542 billion, more than the P70 billion placed on the auction block and the P89.438 billion in bids seen last week for the same offer volume. The BSP made a full P70-billion award of the one-week tenor.

Banks asked for yields ranging from 5.1% to 5.5055%, wider than the 5.45% to 5.5125% margin seen last week. This caused the average rate of the one-week term deposits to go down by 2.32 basis point (bps) to 5.4816% from 5.5048% a week ago.

Meanwhile, the 14-day papers attracted bids worth P49.096 billion, well below the P70 billion auctioned off by the BSP and also lower than the P62.287 billion in tenders fetched for the P50 billion on offer last week. The central bank accepted all bids submitted for the tenor.

Accepted rates were from 5.46% to 5.53%, a tad wider than the 5.47% to 5.53% range seen a week ago. As a result, the average yield of the 14-day deposits was unchanged at 5.5138%.

The BSP has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

Both the TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market yields closer to the policy rate.

Term deposit yields were mixed on Wednesday as the market expects the BSP to cut benchmark interest rates anew at its policy meeting on Thursday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A BusinessWorld poll showed that 15 out of 16 analysts expect the Monetary Board to cut the target reverse repurchase rate by another 25 bps to 5.25% at this week’s review from the current 5.5%.

The BSP in April resumed its easing cycle with a 25-bp cut following a surprise pause in February amid uncertainties stemming from the Trump administration’s trade policies.

The Monetary Board has now reduced borrowing costs by a total of 100 bps since beginning its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. has said that they may cut rates two more times this year in “baby steps” or increments of 25 bps amid a benign inflation outlook.

Still, TDF rates mostly moved sideways as the ongoing conflict between Iran and Israel and its impact on oil prices and the dollar caused renewed inflation concerns, Mr. Ricafort added, which could affect the central bank’s future policy moves.

Oil prices eased in Asian trade on Wednesday, after a gain of 4% in the previous session, as markets weighed the chance of supply disruptions from the Iran-Israel conflict against a US Federal Reserve rates decision that could impact oil demand, Reuters reported.

Brent crude futures slipped 35 cents or 0.5% to $76.10 a barrel by 0723 GMT. US West Texas Intermediate crude futures fell 23 cents or 0.3% to $74.61 per barrel.

Both had initially been up 0.3% to 0.5% in early trade.

US President Donald J. Trump called for Iran’s “unconditional surrender” on Tuesday.

Israel is running low on defensive “Arrow” missile interceptors, however, raising concerns about its ability to counter long-range ballistic missiles from Iran, the Wall Street Journal reported on Wednesday, citing an unidentified US official.

Analysts said the market was largely worried about supply disruptions in the Strait of Hormuz, a conduit for a fifth of the world’s seaborne oil. — Aaron Michael C. Sy with Reuters

NCAP @ Makati

BW FILE PHOTO

Senator Maria Lourdes “Nancy” Sombillo Binay Angeles assumes the mayoralty of Makati City by the end of June, succeeding her younger sister, Mar-len Abigail “Abby” Sombillo Binay-Campos, who held the position for nine years. If memory serves, Senator Nancy will become the first former senator, having served 12 years, to hold Makati’s mayoral office. Sister Abby served in Congress before becoming mayor.

Senator Nancy was elected mayor in May, a week before the Supreme Court lifted its temporary restraining order on the No Contact Apprehension Program (NCAP), a camera-based traffic enforcement initiative. I find this timing auspicious. Perhaps under Mayor Nancy, the NCAP will finally be implemented in Makati.

As a Makati resident, I remain supportive of Abby Binay. I believe she was a good mayor, leading the city better than most, particularly during the pandemic years. I also appreciated her continuation of the hospital project in the first district despite its controversial beginning.

However, in terms of traffic management, she could have done more. Perhaps she relied a little too much on the subway project. There is no doubt in my mind that a city mass transit system would significantly reduce congestion. Unfortunately, unforeseen circumstances have stalled that project indefinitely.

Incoming Mayor Nancy now has the opportunity to leave her mark. With the subway no longer a viable solution in the near term, she urgently needs to tackle the worsening traffic situation. Achieving this goal will require strong support from the National Government, the private sector, and the local community.

Given Makati’s considerable resources, it remains puzzling why the city has not yet adopted camera-based traffic enforcement, even just within the Central Business District (CBD). Perhaps with the mass transit system envisioned as the primary solution, other innovative traffic management strategies remained overlooked.

Now is an ideal time to clarify the relationship between City Hall, its Public Safety Department (PSD), the Makati Parking Authority (MAPA), and the Makati Commercial Estates Association (MACEA). These organizations should collaborate on a pilot NCAP project specifically for the CBD.

MAPA and MACEA (which are both private organizations), rather than City Hall, could lead this initiative, potentially bypassing bureaucratic hurdles that typically slow down City Hall-led projects. Traffic and parking management, as well as road improvements within the CBD, already fall under MAPA’s jurisdiction.

Utilizing camera-based technology in a connected system serves dual purposes: traffic enforcement and crime prevention. It acts as a deterrent against traffic violations and crimes such as theft and robbery, and provides valuable evidence for investigations.

Currently, Makati traffic is chaotic daily. Pre-pandemic, motorists were wary of entering Makati due to the strict enforcement of traffic regulations, particularly on Ayala Avenue and within the CBD. Traffic enforcers diligently issued citations, and Public Utility Vehicles strictly observed loading and unloading zones.

Post-pandemic, despite infrastructure improvements, traffic conditions have deteriorated. Red zones (no-parking and no-waiting areas) are regularly ignored, double parking has become commonplace, and numerous delivery riders, motorcycle taxis, and transport network vehicles obstruct traffic by parking curbside. Privileged drivers continue to stop and park wherever convenient.

Moreover, enforcement noticeably relaxes from 7 p.m. to 7 a.m. Motorists increasingly disregard traffic laws and regulations at night, knowing enforcers are off duty. Jupiter St., a designated no-parking and no U-turn zone, exemplifies this issue, with frequent violations occurring without consequence.

UV Express units entering the CBD frequently disregard traffic lights and signs from evening until early morning, risking the safety of other road users. Night-shift workers exacerbate congestion by double-parking, moving their vehicles only after their shifts conclude.

MAPA spends substantial funds annually on road maintenance, signage, and employing parking and traffic enforcers. However, these investments prove ineffective during the 12 nighttime hours when the CBD essentially becomes lawless. Cameras operating 24/7 can enforce regulations consistently, assisting even a minimal nighttime workforce.

Additionally, MAPA should deputize tow trucks for nighttime operations. There is ample opportunity for revenue from towing illegally parked vehicles. NCAP cameras would also enable the rapid deployment of night-shift traffic enforcers to problem areas or accident scenes.

In the CBD, unscrupulous motorists frequently violate traffic and parking regulations, while pedestrians jaywalk with impunity from 10 p.m. to 7 a.m. Pedestrians often prioritize convenience over personal safety, ignoring underpasses and pedestrian crossings.

Traffic laws apply continuously, not just during the daytime. Enforcement must be strict and consistent, regardless of the hour. Technology, rather than increased human resources, offers the most viable solution. Implementing NCAP in Makati is key.

I propose piloting NCAP within the CBD, focusing initially on Ayala Ave., Gil Puyat Ave., Paseo de Roxas, Dela Rosa, and within Salcedo and Legaspi Villages. From there, Makati can expand the program incrementally to J.P. Rizal, Kalayaan, Chino Roces, and surrounding residential-commercial areas such as Poblacion, San Antonio, and Guadalupe. A phased approach will allow calibration, public education, and continuous improvement.

A successful NCAP deployment in Makati requires a public-private partnership model. Barangays Bel-Air and San Lorenzo should serve as initial test areas, followed by Poblacion and other barangays. City Hall must actively support the initiative, with private-sector buy-in solicited and secured.

Given MAPA’s expertise in parking enforcement, it can effectively identify chronic obstruction zones caused by illegal parking and improper loading/unloading. Integrating NCAP with MAPA’s existing mandate will likely enhance curbside discipline and parking turnover.

MACEA, as the private-sector manager of the Makati CBD, plays a crucial role in urban planning, security, and mobility policy. It can facilitate public-private financing for camera procurement, promote data-sharing and enforcement coordination, and help design traffic rules that align with business needs, minimizing friction. City Hall, especially the Public Safety Department, should manage on-the-ground enforcement, violation disputes, and appeals processing.

Makati hosts thousands of businesses, government offices, banks, schools, shopping centers, and numerous diplomatic missions. Each weekday, the city accommodates over half a million transient workers and commuters. Manual traffic enforcement is unsustainable for this daily influx. Human enforcers suffer from fatigue, bias, and inconsistent implementation.

Diplomatic missions in Makati add complexity. Foreign diplomatic vehicles have immunities under the Vienna Convention, exempting them from penalties. Makati should proactively engage diplomatic missions, requesting voluntary compliance and adherence to local traffic norms, using diplomatic channels to uphold courtesy while reinforcing responsibility.

NCAP systems provide unbiased, round-the-clock monitoring of critical intersections and corridors. Cameras never tire, negotiate, or ignore infractions. Automated penalties for violations have been proven elsewhere to improve road discipline, reduce accidents, and enhance traffic flow.

Beyond easing congestion, NCAP promotes safety, encouraging adherence to speed limits, pedestrian crossings, and stoplights. A well-calibrated NCAP system will protect vulnerable road users, vital in a city with substantial foot traffic.

If Makati wishes to remain a business and urban leader, it must invest in modern, transparent, and fair traffic enforcement systems. The goal is not merely enforcement but creating a safer, efficient, future-ready transportation ecosystem. Implementing NCAP effectively in Makati can achieve exactly that.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Raslag gets SEC nod to form units for solar projects

RASLAG.COM.PH

RENEWABLE energy company Raslag Corp. said on Wednesday that it had secured approval from the Securities and Exchange Commission (SEC) for the creation of two subsidiaries to manage its upcoming solar power projects.

In a stock exchange disclosure, Raslag said it had received the digital certificates of incorporation for its two wholly owned subsidiaries, Raslag Gerona, Inc. and Raslag Liwayway, Inc.

The company said these entities would serve as vehicles to own and operate Raslag 6 in Gerona, Tarlac, as well as Raslag 7 and Raslag 8 in Santa Rosa, Nueva Ecija.

It is currently developing the Raslag 6 solar project, which is expected to generate 58 megawatt-peak (MWp) of electricity.

Raslag 7 and Raslag 8, with a combined capacity of 140 MWp, are also in the pipeline.

In an earlier interview with BusinessWorld, Raslag Chief Finance Officer Karl Geo D. Origeneza said the company had estimated an investment of up to P37 billion to expand its portfolio to 1,000 megawatts (MW) by 2035.

The company develops, owns, and operates solar power plants to provide utility-scale renewable energy to on-grid customers.

At present, Raslag has a total installed capacity of 77.844 MW from four facilities in Pampanga. — Sheldeen Joy Talavera

Tom Cruise, Dolly Parton to receive honorary Oscars

Dolly Parton, seen here in a scene from the 1989 film Steel Magnolias, will be receiving the Jean Hersholt Humanitarian Award for her charitable efforts. — IMDB

ACTION movie star Tom Cruise and singer and actor Dolly Parton are among the luminaries selected to receive honorary Oscars this year for lifetime achievements, Hollywood’s film academy said on Tuesday.

Actor and choreographer Debbie Allen and production designer Wynn Thomas also were selected for recognition by the board of governors of the Academy of Motion Picture Arts & Sciences.

The honorees will receive their Oscar statuettes at the annual Governors Awards gala in November.

Mr. Cruise, currently starring in Mission: Impossible – The Final Reckoning, was selected for his decades of work in Risky Business, two Top Gun movies and several other films. He was nominated for best actor twice, for Born on the Fourth of July and Jerry Maguire, as well as best supporting actor for Magnolia. “Tom Cruise’s incredible commitment to our filmmaking community, to the theatrical experience, and to the stunts community has inspired us all,” Academy President Janet Yang said in a statement.

Ms. Parton, a country music singer and star of movies including Steel Magnolias and The Best Little Whorehouse in Texas, will receive the Jean Hersholt Humanitarian Award for her charitable efforts. Ms. Parton’s Imagination Library has provided more than 284 million free books to children over 30 years, according to the organization’s website. She received two Oscar nominations for best song, for the films 9 to 5 and Transamerica.

Ms. Allen, an actor in movies such as Fame and Ragtime, choreographed the Academy Awards ceremony seven times and several films.

Production designer Debbie Allen Thomas worked on several Spike Lee Films including She’s Gotta Have It and Do the Right Thing, as well as best picture winner A Beautiful Mind. — Reuters

GTA VI delay weighs on global videogame market growth, data show

TRUSTPAIR.COM

THE GLOBAL videogame market’s growth rate is expected to improve marginally in 2025 from the previous year, according to a report from research firm Newzoo, seen exclusively by Reuters on Tuesday.

Analysts and industry experts had projected a surge in industry growth this year due to the expected blockbuster launch of Take-Two’s Grand Theft Auto VI  (GTA VI) and new consoles.

However, the delay of the long-awaited title to next year and price hikes to videogame hardware, arising from tariffs, have made consumer spending uncertain.

The global videogame market is projected to grow 3.4% to $188.9 billion in 2025, compared with last year’s growth of 3.2%, according to the report.

“This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines,” said Michiel Buijsman, principal analyst at Newzoo.

Compounded annually, Newzoo expects the market to grow 3.3% till 2027, compared with its earlier forecast of 3.7%.

As GTA VI is scheduled to launch in 2026, the industry will most likely see the boost from sales next year along with the release of other premium titles such as Capcom’s Resident Evil Requiem.

The launch of GTA VI on PC is also expected to carry growth through 2027, the report said.

Price increases to Microsoft’s Xbox and Sony’s PlayStation devices have sparked fears of slower hardware sales as consumers globally grapple with market uncertainty, even as Nintendo’s Switch 2 became the company’s fastest-selling console.

“Xbox generally is falling further behind on Xbox One, so there will be more sales to come but we don’t expect big numbers… we expect that the lifetime units of PS5 will still slightly trail PS4,” Mr. Buijsman said.

Xbox also unveiled its own handheld console, the Xbox Ally, earlier this month, developed in partnership with ASUS and set to launch in holidays 2025. Reuters

Not just labor, but lifelines: Recognizing the essential role of Filipino domestic workers

STOCK PHOTO | Image by jcomp from Freepik

By Khalid Hassan

INTERNATIONAL Domestic Workers’ Day, June 16, marked 14 years since the adoption of the International Labour Organization’s landmark Convention No. 189 on Decent Work for Domestic Workers. This instrument affirmed a long-overdue truth: domestic workers are workers with rights like others. They deserve the same protections, fair wages, and dignity like other professions.

The Philippines contributed historically to this achievement. It is the only country in Asia to have ratified the Convention, which triggered its entry into force. The Philippines then passed the Batas Kasambahay in 2013 and created the Department of Migrant Workers in 2021. These actions show commitment and leadership worth recognizing.

And yet, for far too many domestic workers, the promises of rights and protections remain distant. They still work long hours for low pay, with limited social protection and, often, without contracts or grievance mechanisms. The struggle for visibility and respect continues.

Domestic workers — overwhelmingly women — are the hands behind the daily routines of millions of Filipino families. They care for children, clean homes, assist the elderly, and provide emotional and physical labor that keeps households running. Overseas, they perform the same duties in foreign homes, often at great personal sacrifice — missing birthdays, graduations, and years of their own children’s lives.

The economic contribution of domestic workers is undeniable. Their earnings support families, stimulate local consumption, and sustain rural economies. Their labor allows others — especially working mothers — to enter and remain in the formal labor force. They contribute to the national economy not only through remittances but by investing in their children’s education and building stronger, more resilient communities.

Their role becomes even more critical in times of crisis. During the COVID-19 pandemic, domestic workers were among the unsung frontliners — caring for the sick and elderly while risking their own health. After typhoons and earthquakes, many help families evacuate, clean up, and recover. In countries as far apart as Lebanon, Haiti, Indonesia, and the Philippines, domestic workers have played crucial but unrecognized roles in household-level disaster response and recovery.

And yet, domestic workers are rarely included in disaster preparedness plans or emergency assistance programs. Their needs are often overlooked, even though they are essential to a household’s ability to recover. This reflects a deeper societal flaw: care and domestic work are still not valued as essential.

Globally, ILO research paints a troubling picture. Many domestic workers routinely work more than 10 hours a day, often without rest days. In several countries, they are excluded from minimum wage laws and social protection schemes. Migrant domestic workers, especially women, remain vulnerable to exploitation due to restrictive immigration systems, isolation, and lack of legal support.

In the Philippines, despite having progressive laws in place, implementation gaps remain. In many regions, the minimum wage for domestic workers is still below a living wage. Labor inspections in private households are limited. Access to social protection is uneven, and grievance mechanisms are often weak or unknown to the workers who need them most.

So what can we do?

First, revise minimum wages for domestic workers and ensure the full implementation of the Batas Kasambahay. This means paid rest days, accessible complaint mechanisms, protection from abuse, and full social protection.

Second, strengthen the Philippines’ negotiating position through strong domestic regulation. Fair treatment abroad starts with fairness at home. Ethical recruitment practices and effective bilateral labor agreements are more likely when we protect our workers here first.

Third, invest in better data. Domestic work must be counted, tracked, and understood. Without reliable data, policies risk being misdirected or ineffective.

Fourth, promote a cultural shift. Domestic workers are not “helpers” — they are skilled professionals. Their labor deserves the same respect and value as any other form of work. Trade unions, employers, women’s organizations, and civil society must help drive this narrative forward.

Finally, include domestic workers in disaster preparedness and crisis response systems. They are not just vulnerable; they are essential to community resilience.

On this International Domestic Workers’ Day, the ILO Country Office for the Philippines salutes the millions of Filipino domestic workers — those working within the country and across borders. You are not invisible. You are not marginal. You are essential.

Let us honor your work not only with words, but through real protections, fair wages, and the dignity that all workers deserve.

 

Khalid Hassan is the director of the ILO in the Philippines.

Philippine military spending vs regional neighbors: How does it stack up?

The Philippines’ military expenditure expanded by almost a fifth to $6.12 billion last year from $5.14 billion in 2023, the Stockholm International Peace Research Institute (SIPRI) database showed. This was equivalent to a military burden — share of military spending to gross domestic product (GDP) — of 1.3% in 2024.

Philippine military spending vs regional neighbors: How does it stack up?

Airline fuel surcharge unchanged for July

PHILIPPINE STAR/ WALTER BOLLOZOS

AIRFARES are likely to remain steady as the Civil Aeronautics Board (CAB) maintained the fuel surcharge at Level 3 for the month of July.

In an advisory on Wednesday, CAB said the passenger and cargo fuel surcharge for domestic and international flights will remain at Level 3 from July 1 to 30.

At this level, the passenger surcharge for domestic flights ranges from P83 to P300, while for international flights, it ranges from P273.36 to P2,032.54.

Since 2024, CAB has downgraded the fuel surcharge to Level 3 only twice — for June and July.

For airlines collecting the surcharge in foreign currency, the applicable conversion rate is P55.64 to the dollar, CAB said.

Fuel surcharges are adjusted based on the movement of jet fuel prices, using the Mean of Platts Singapore (MOPS) as the benchmark.

According to the International Air Transport Association (IATA), the global average jet fuel price rose by 2.2% week on week to $83.68 per barrel as of June 13. Year on year, the average price was down by 15.5%.

In a report dated June 2, IATA said the global aviation industry is expected to post strong growth, supported by declining jet fuel prices and the easing of visa restrictions.

Jet fuel is projected to average $86 per barrel in 2025, lower than the $99 average in 2024, IATA said. This could bring the industry’s total fuel bill to $236 billion, accounting for 25.8% of airline operating costs. — Ashley Erika O. Jose

Value of InstaPay, PESONet transactions surges to P9 trillion as of May

REUTERS

THE COMBINED VALUE of transactions done via InstaPay and PESONet rose by 37.06% year on year to exceed P9 trillion in the first five months of 2025, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Transactions coursed through the two automated clearing houses surged to P9.13 trillion at end-May from P6.66 trillion in the same period a year ago, central bank data showed.

Meanwhile, the volume of transactions made via InstaPay and PESONet more than doubled to 1.206 billion in the five-month period from 542.28 million a year prior.

Broken down, the value of transactions done through PESONet stood at P5.06 trillion as of May, 28.17% higher than the P3.96 trillion recorded in the same period the previous year.

The total volume of PESONet transactions also climbed by 15.92% year on year to 46.65 million in the period from 40.25 million previously.

Meanwhile, the total value of InstaPay transactions jumped by 50.05% year on year to P4.06 trillion at end-May from P2.71 trillion a year prior.

The volume of transactions that went through the payment gateway likewise surged by 130.96% to 1.16 billion in the first five months of the year from 502.04 million in the comparable year-ago period.

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

PESONet is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks.

Meanwhile, 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 increase in InstaPay and PESONet transactions seen in the first five months of 2025 reflects the continued growth in online payments that was accelerated by mobility restrictions due to the coronavirus pandemic, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He added that there has been an “increased adoption of online banking and payment transactions in recent years as part of the e-commerce ecosystem and the increased shift from over-the-counter banking transactions, including the use of InstaPay and PESONet… since these are faster, safer, and more convenient for the general public from anywhere around the world, saving on costs and time in doing so.”

“The high double-digit growth rates also reflect the increased use of e-wallets by Filipinos that are already integrated in digital banking platforms as emerging payment platforms as alternative to cash, checks, and over-the-counter payment transactions,” Mr. Ricafort said.

He added that the growing adoption of digital payments can help improve financial inclusion, especially in unbanked or underbanked areas.

Latest BSP data showed digital payments made up 52.8% of the volume of retail transactions in 2023, higher than the 42.1% share in 2022. In terms of value, 55.3% of retail transactions in 2023 were done online, higher than the 40.1% the year prior.

The central bank has said the increase in digital payments was driven by wider use of online transaction channels, especially e-wallets, among individuals and businesses, with the coronavirus pandemic accelerating the shift.

The BSP wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028. The share of Filipinos with bank accounts reached 65% of the adult population in 2022. — AMCS

Musk’s xAI on track to raise $5 billion in fresh debt following modest demand

ELON MUSK — REUTERS

NEW YORK — Elon Musk’s xAI is on track to close on a $5-billion debt raise led by Morgan Stanley, despite tepid investor demand, according to two people familiar with the matter.

The $5-billion debt sale, which includes a floating-rate term loan, a fixed-rate loan and secured bonds, will be allocated to investors on Wednesday, the two people said, asking not to be identified because the deal is private. xAI did not immediately respond to a request for comment while Morgan Stanley declined.

The xAI offering, which was reported on June 2 as Mr. Musk and US President Donald Trump traded barbs over social media, did not receive overwhelming interest from high-yield and leveraged loan investors, said five people briefed on the deal.

The floating-rate loan will be offered with an interest rate of 700 basis points over the Secured Overnight Financing Rate, a benchmark rate used to price bond deals, while the fixed-rate loan and secured notes will pay a yield of roughly 12%, the two people said.

The average yield-to-maturity on high-yield bonds closed on Monday at 7.6%, according to the ICE BofA High Yield Index. Mr. Musk’s AI company has to pay significantly more since xAI and its debt are not yet rated, giving investors little visibility into the company’s finances and higher risk.

Three bond investors who were offered the debt told Reuters they declined to invest. One of these investors noted that xAI has not yet turned a profit and the debt is not rated. They were especially reticent given Musk’s track record when he financed his $44 billion acquisition of social media giant X, known at the time as Twitter, in 2022. The banks that loaned him $13 billion to close the deal were forced to hold that debt on their balance sheets for two years because they could not offload it.

While the debt sold in full and on time, it received modest demand from investors, all five people said. Investors submitted orders for roughly 1.5 times the amount of debt available, according to the first two people briefed on the deal. Most similar junk bond deals have typically attracted orders for 2.5 to 3 times the loans and bonds being offered, the people said.

Unlike Mr. Musk’s debt deal when he acquired Twitter, Morgan Stanley did not guarantee how much it would sell or commit its own capital to the deal, in what is called a “best efforts” transaction, according to one person familiar with the terms.

In the Twitter acquisition, the banks ended up making money on the debt, selling it with little-to-no discount months after Mr. Trump won the White House and Mr. Musk’s influence in Washington grew.

Apart from selling debt, xAI has also been in talks to raise about $20 billion in equity, valuing the company at more than $120 billion, with some investors placing valuations as high as $200 billion, Reuters reported last week. Reuters

Demand for premium insurance rises with global travel disruptions

STOCK PHOTO | Image from Pixabay

LONDON/NEW YORK — With flight cancellations, delays and other disruptions on the rise, leisure travelers are being increasingly discerning over the level and type of insurance they buy and businesses are turning to specialist advisory services to limit risk.

Since 2019, travel disruptions around the world have risen due to everything from the coronavirus disease 2019 (COVID-19), extreme weather, volcanic eruptions, military conflict, jet safety issues, computer glitches and fires which have closed airports, grounded planes and stranded millions of passengers.

In the US, ongoing air traffic controller shortages and aging technology have caused significant disruption. In May, equipment outages, runway construction and staffing shortages caused flight cancellations, diversions and delays at Newark Liberty, one of the main airports serving New York City.

On Friday, Israel attacked Iran, forcing carriers to cancel or divert thousands of flights to avoid conflict in the Middle East.

Even with insurance, many policies specify a multitude of exemptions in the fine print.

As a result, more travelers are taking out higher-end insurance policies, often at higher premiums, to better protect themselves, according to interviews with nine travel executives, insurance companies and analysts.

“We’re in times that are quite unstable so people are canceling more frequently than previously,” said Duncan Greenfield-Turk, chief executive officer (CEO) of Global Travel Moments, a luxury travel agency based in London.

European tourists have increased their purchases of travel insurance for this summer by 3% compared with last year, according to German insurer Allianz Partners.

Squaremouth, the largest travel insurance marketplace in the US, has seen a 34% year over year increase globally in purchases of “Cancel For Any Reason” protection.

British and US holidaymakers in particular are more willing to pay a higher premium to protect their trip, said Anna Kofoed, the CEO of Travel for Allianz Partners.

About 32% more travellers globally requested an insurance quote from January to April compared to the same period in 2024, according to data from online travel insurance broker InsureMyTrip.

BUSINESSES SEEK TRAVEL ADVICE
There has also been a rise in demand for bespoke travel advice as US President Donald J. Trump has announced a number of immigration-related restrictions including tighter visa vetting procedures and travel bans.

World Travel Protection (WTP), a global firm that advises businesses on travel risk, said it has seen a rise in US residents being detained at US borders and told their documents were no longer valid as visa rules were changing.

WTP has worked with US government representatives to help those individuals return home, according to Frank Harrison, the company’s regional security director for the Americas.

“We’re seeing a very strong uptick in organizations coming to us wanting to know how to navigate the landscape of the US within the wider business,” Mr. Harrison said.

CIBT, which provides non-legal visa and immigration guidance, has seen a 50% rise in inquiries since November from companies seeking to better prepare their employees for travel to the US, according to CEO Steven Diehl.

HIGH-END INSURANCE PRODUCTS EMERGE
One of the newest areas of business is in parametric insurance, which pays compensation automatically after a “trigger” event such as a flight delay without the need to file a claim.

Parametric insurance took off in some countries during the COVID-19 pandemic and in recent months more insurers around the world have begun to offer it.

When testing the market last year, Spanish insurer Mapfre’s Mawdy unit in Ireland said about 11% more customers opted for higher-tier travel insurance packages when instant compensation was included.

Travel destinations have also spotted an opportunity in this burgeoning market.

Marriott Bonvoy’s villa rentals and waterparks offer parametric weather insurance at the point of booking, automatically paying out on rainy days.

Sensible Weather, one of the providers of such coverage, reported its weather guarantees were added to 30% of theme park bookings and 10-15% of higher-value accommodation bookings when they were offered in 2024.

In March, Squaremouth launched a new insurance product with cruise-specific benefits such as coverage for being confined on a cruise ship or missing the port of call.

“Everyone is trying to make it easier for people to understand that each trip (…) is going to have a different set of concerns whether it’s hurricanes or blizzards or what’s going on with air traffic controllers,” Suzanne Morrow, CEO of online insurance broker InsureMyTrip told Reuters. — Reuters

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