Home Blog Page 1441

BPI aims to raise at least P5 billion from offering of sustainable bonds

BPI FACEBOOK PAGE

BANK of the Philippine Islands (BPI) is looking to raise at least P5 billion from its offer of 1.5-year peso-denominated sustainable bonds, it said on Thursday.

“The net proceeds of the offer will be used for the financing or refinancing of new or existing eligible green and/or social projects as defined under, and consistent with, BPI’s Sustainable Funding Framework,” the bank said in a disclosure to the stock exchange.

BPI will offer the bonds at a minimum investment amount of P500,000 with additional increments of P100,000.

The bank has the option to upsize the issue, it said.

The offer period will run from July 18 to Aug. 2, unless adjusted by the lender. The bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Aug. 9, the bank said.

BPI Capital Corp. and Standard Chartered Bank were tapped to be the joint lead arrangers and selling agents for the offer.

The bank said it submitted an application for confirmation of the “ASEAN Sustainable” label with the Securities and Exchange Commission on June 28 and is still waiting for confirmation from the regulator.

The bonds will mark the third issuance out of BPI’s P100-billion bond program, which was approved by its board in May 2022.

The last offering under the program was in October 2023, from which BPI raised P36.66 billion from 1.5-year fixed-rate bonds, higher than the initial target of P5 billion. The notes were priced at 6.425% per annum.

BPI said it would use the issue’s proceeds for general corporate purposes, including funding source diversification.

The listed bank saw its net income grow by 25.8% year on year to P15.3 billion in the first quarter as higher revenues helped offset increased provisions and expenses.

BPI shares rose by P1.60 or 1.37% to end at P118.30 apiece on Thursday. — AMCS

Entertainment News (07/05/24)


Hitsujibungaku set for Marikina concert

ON July 6, the Japanese band Hitsujibungaku will  perform live at Eastside Events Place in Marikina City. Tickets, now running low, are available for a promo price of P2,500 only until 11 p.m. the night before the concert. Meanwhile, walk-ins can enter for P3,000. Presented by The Rest Is Noise and Gabi Na Naman Productions, the show features the Japanese rock band whose song “more than words” became a hit as part of the hit Japanese animé series Jujutsu Kaisen. Hitsujibungaku: Live in Manila starts at 7:30 p.m. on July 6 at Eastside Events Place, 18 Sumulong Highway, Marikina City.


Instituto Cervantes celebrates Orgullo 2024

THE SPANISH Cultural center Instituto Cervantes de Manila is presenting its annual celebration of diversity, equality, and LGBTQ+ (lesbian, gay, bisexual, trans, queer plus) rights. Orgullo 2024: Seas quien seas, sé is scheduled to take place on July 6, 4:30 p.m onwards, at the Pop-Up Library of Ayala Triangle Gardens, Makati City. It kicks off with the round-table discussion “¿Entiendes? Nuevos tiempos, nuevos lenguajes.” In this debate, Filipino linguist Jeff Roxas, Spain’s Beatriz Jimeno, and Chile’s Gabriel Alvarado will discuss how current Spanish is adapting to social changes in terms of gender and how inclusivity brings about problems in changing language. At 6 p.m., there will be an Open Mic Recital where participants can showcase the creativity, talent, and spirit of the LGBTQ+ community. Interested individuals can register here: https://forms.office.com/e/p9vKaGHx3B. Live music, dance performances, trivia games, and a DJ set will cap off the night. Admission is on a first-come, first-served basis.


Nicole Laurel Asensio launches new EP

TO celebrate her birth month, singer Nicole Laurel Asensio has launched Changes Over Time, a new collection of original music in tandem with producer Gabe Dandan. The four-track extended play incorporates orchestral elements and electronic rhythms. All tracks were mixed and mastered in Dolby Atmos by Waxiefied Sound Production. “It was a tireless three-day process of writing and producing on the fly, but the spontaneity is what gave these songs their unique charm and sound,” Ms. Laurel Asensio said in a statement. Changes Over Time is out now on all digital streaming music platforms.


Godzilla x Kong: The New Empire on HBO GO

WARNER Bros. Pictures and Legendary Pictures’ Godzilla x Kong: The New Empire has made its streaming debut on HBO GO. The film is an action-packed adventure that follows Kong’s journey to find his family through an undiscovered layer of Hollow Earth. It is directed by Adam Wingard and stars Rebecca Hall, Brian Tyree Henry, Dan Stevens, Kaylee Hottle, Alex Ferns, and Fala Chen.


Steve Aoki drops 9th studio album

RENOWNED producer and Grammy-nominated  artist Steve Aoki has unveiled his 9th studio album, Paragon. It builds on the expansive Hiroquest universe that Mr. Aoki has established through his music, trading cards, and newly released graphic novel. Paragon showcases contemporary global dance sounds in a collaboration with Kid Cudi, and the vibrant sounds of South Africa alongside Moonchild Sanelly, Amapiano-heavy sounds in a collaboration with Major League DJZ, Brazilian Baile Funk with Natalhão, and a blend of American hip-hop with EDM in a collaboration with Lil Jon. Accompanying the album, Mr. Aoki also released the music video for “Heavenly Hell,” alongside Grammy award-winning hitmaker NE-YO. Paragon is out now on all digital music streaming platforms.


NE-YO tour set for Manila stop in October

GRAMMY award-winning R&B hitmaker and songwriter NE-YO is bringing the Champagne and Roses Tour to Manila on Oct. 8 at the Araneta Coliseum in Quezon City. Wilbros Live presents this concert by the singer known for hits like “So Sick” and “Miss Independent.” Tickets go on sale on July 6 at 12 p.m. via TicketNet online and outlets nationwide.


Twisters comes to Philippine cinemas in July

THE WARNER Bros. Pictures disaster epic Twisters will be screening in Philippine cinemas starting July 17. Directed by Lee Isaac Chung and starring Daisy Edgar-Jones, Glen Powell, Anthony Ramos, and David Corenswet, the film is loosely based on the 1996 blockbuster Twister. Ms. Edgar-Jones stars as Kate Cooper, a former storm chaser haunted by a devastating encounter with a tornado while in college, who now studies storm patterns on screens safely in New York City. She is lured back to the open plains to test a groundbreaking new tracking system. There, she crosses paths with Tyler Owens (Mr. Powell), a social-media superstar who thrives on posting his storm-chasing adventures with his raucous crew. Twisters is out in Philippine cinemas on July 17.


Filipino artists at Bigo Voice Music Fest

GLOBAL livestreaming platform Bigo Live recently announced the winners of the first-ever Bigo Voice Music Fest competition on June 28. Three rising stars — Nikki Enriquez (Bigo id: NikkiEnriquez), Ronnel Abinal (Bigo id: White_Official28), and Lailanie Balmediano (Bigo id: primelovekisses) — won the top three prizes, respectively, receiving trophies and 200,000 Bigo Beans (the virtual currency on Bigo Live). Meanwhile, audience members voted IKANG (Bigo id: ikangmo) as the “Most Impactful Icon of the Night.” The awards night was attended by over 200 fans and broadcasters. The three artists emerged as winners after a series of online challenges on Bigo Live where over 100 Philippine-based broadcasters battled it out across three categories: Solo, Duo, and Family Livehouses.

Why Putin is in Ukraine

FLICKER AND PIXABAY

LIVING in Moscow in the 1990s, I recall watching an after-dinner skit that a Russian acquaintance would perform. Standing next to a big pink wall map of the recently departed Soviet empire, she’d tap on Russia’s new neighbor states with a stick and then bark like a slightly unhinged school teacher: “Vot! Nashi!” (Here! Ours!), “I vot! Nashi!” (And here! Ours!), thwacking each ex-republic in turn, before moving on to Alaska, California, and beyond.

She was, of course, mocking the country’s neo-fascist nationalists, who had formed a group called, you guessed it, Nashi. It seemed funny at the time, but less so in retrospect.

This was 1993, the year Harvard professor Samuel Huntington published his controversial Foreign Affairs essay, “The Clash of Civilizations?” predicting that the world wouldn’t adopt Western values, but instead divide and fight along religious and cultural lines. I’d already encountered nationalists and cosplay-Cossacks fighting with pro-Russia separatists in Georgia and Moldova, but they were on the outs with the Kremlin. Yet by 2014, President Vladimir Putin would adopt their ideas, annex Crimea and invade Ukraine.

Western leaders need to better understand Russia’s motivations in its so-called near abroad, if they’re to read Putin’s approach to ending the conflict in Ukraine correctly. We’re naturally solipsistic, assuming that everything revolves around us. And that’s before you get to the pure narcissism of former US President Donald Trump, who again in a recent podcast insisted that had he still been in the White House in February 2022, Putin would never have invaded Ukraine, because, well, he’s Trump — and Hamas wouldn’t have dared attack Israel, either. The root of the problem, he said, as do Putin and too many others, was NATO’s provocative decision to let new members join from the former Soviet bloc.

Putin clearly was angered by NATO expansion. Yet the important questions here are why, and whether Russia still would be invading its neighbors if NATO didn’t exist. The answer to the last part is of course a counterfactual, but most evidence points to yes, because this isn’t primarily about us. It’s about Russia.

In the 1990s, Nashi looked like dinosaurs, but Russia’s nationalists were right about one thing: The 1991 Soviet breakup marked only the beginning of a contested imperial collapse, not its end. The country was just embarking on a process of figuring out what it meant to be Russian, not reverting to some imagined universal, but in fact Western, norm. Russia had never before been a Westphalian nation state. The new post-Soviet borders seemed unnatural, and not just to ex-KGB agents like Putin. Very few Russians I met in the 1990s thought Ukraine was a real country, nor Belarus, or indeed Kazakhstan.

It took a while for the Kremlin to fully articulate what being a post-Soviet Russian should mean and to find a label for this ambiguity about where the country ended. Putin started defining Russia as a “state-civilization” (as opposed to a mere nation state) around 2012, but it became a fully developed doctrine in the 2023 edition of “The Foreign Policy Concept of the Russian Federation.”  That document declares “the special position of Russia as a distinctive state-civilization,” responsible for all peoples within the “Russian World.”

This idea is key to setting expectations as to the circumstances in which Putin might make peace in Ukraine and for how long. It’s also important for remembering that Russia has never been just a victim responding to threats, but has pursued its own agenda of expansion and transformation, which it sees as positive.

This is why Putin responded so aggressively in 2013 to Ukraine’s decision to sign a trade and association pact with the European Union — the deal threatened to thwart his plans for Ukraine. At the time, NATO membership wasn’t on anyone’s agenda, or even possible for Ukraine, whose constitution forbade joining any military alliance. That block was removed only in December 2014, nine months after Putin annexed Crimea and long after he sent Russian troops and tanks to fight in Eastern Ukraine.

This way of understanding Russia as a state-civilization defined against the West is now being taught to the young, who can be more susceptible to Western ideals and culture. As of Sept. 1 last year, every student entering university in Russia has had to study a new mandatory course, called Foundations of Russian Statehood.

The core proposition is that Russia, as a state-civilization, is “heir to the thousand-year historical and political experience of all previous states that existed on the territory of our country: Russian land, Russian state, Russian kingdom, Russian empire, USSR.” Embedding this version of history is a huge project. It has included the appointment of vice-rectors as latter-day university Commissars, responsible for the ideological content of coursework, and sending almost 6,000 professors to “re-training” centers.

There’s also a new incarnation of the Communist-era Young Pioneers, called Movement of the First, which was rolled out in 2022 to teach collectivism to some 5 million kids, among other values deemed as traditional to Russia, in contrast to the individualistic decadence of the West. History textbooks in lower schools also have been culled and replaced by a handful of new approved titles.

The name Ukraine, Russia’s students are now told, was never a national or ethnic designation, but indicated an area of Russia’s border territories. And like so many empires before, Russia’s official texts portray a sometimes-genocidal history of expansion as a selfless burden, carried primarily by ethnic Russians on behalf of less civilized peoples.

Civilizations aren’t static and smaller countries and ordinary people can have agency. A large contingent of Ukrainian soldiers fighting invasion by what they often call Muscovy are Russian speakers from the East. On June 25, even as the war continued, Ukraine (and Moldova) began talks with the EU not just on trade but full membership, a choice you could describe as civilizational. The process involves adopting well over 100,000 pages of laws known as the Acquis Communautaire and would leave the two states looking more like Poland and Romania, and less like Russia.

Seen from the Kremlin, this contest is indeed existential, not because it fears NATO forces will attack across its internationally recognized borders, but because even the prospect of joining Western institutions encourages Moscow’s former possessions to resist the Kremlin’s expansion plans. And if Russia is to be not just a nation state but a great-power civilization, then losing the chance to control Ukraine means losing great power potential.

The problem Putin’s worldview poses for Ukrainian sovereignty is obvious. But it’s a problem for Europe, too, because it isn’t at all clear where Russia’s civilizational project ends or how the absorption of Ukraine might add to its ambition. The “Russian World” is both large and ill-defined. So what to do? Allow Putin to impose his “state-civilization,” or stop him in Ukraine?

Russia is hardly the first empire to resist the loss of long-held colonies, so there’s nothing unique about its attempt. But few would suggest the Hapsburg, Ottoman, British or French empires had a right to hold on to, let alone restore, their imperial claims, or that the desire to do so was “provoked,” or that the world would be better off had they been able to cling on.

Understanding Putin’s outlook is key to grasping that the “neutrality” and “demilitarization” he demands of Russia’s neighbors is not his end goal. It is a prerequisite for rebuilding Russia’s state-civilization and Moscow’s status as the beating heart of a great power. Every peace proposal for Ukraine needs to keep that fact front and center. And if a once and future President Trump wants to play the role of mediator, by all means. But he should start by reading the Kremlin’s new college textbook.

BLOOMBERG OPINION

Labor pins hopes on Congress wage measures

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Chloe Mari A. Hufana

LABOR GROUPS continued to push for a legislated wage hike following an order granting a P35 raise in the National Capital Region (NCR) minimum wage, arguing that a uniform national increase is needed to support workers across the country.

“A legislated wage hike is crucial because it ensures that wage adjustments cover all regions,” Federation of Free Workers President and NAGKAISA Labor Coalition Chairman Jose G. Matula told BusinessWorld via Viber.

“This (wage board) increase is grossly insufficient, amounting to less than one-fourth or 23.3% of the proposed P150 recovery wage, and it is limited solely to Metro Manila. It fails to address the inadequacy of minimum wages in regions outside the NCR, where wages are below the poverty threshold,” he added.

On Monday, the Regional Tripartite Wages and Productivity Board-NCR (RTWPB) approved a P35 wage order for workers in the capital region.

This brings non-agricultural workers’ daily minimum wage to P645 from P610. For agriculture and service establishments with 15 workers or less, minimum daily wages will now be at P608 from P573.

Workers in manufacturing establishments regularly employing fewer than 10 will also receive a minimum daily wage of P608.

The wage order will take effect on July 17, a day after the anniversary of the last wage order in the capital.

Bukluran ng Manggagawang Pilipino President Renecio S. Espiritu told BusinessWorld via Messenger chat the wage order is a “joke,” adding that his group will continue to press for a legislated wage hike.

“A national wage increase is needed because the prices of commodities in the provinces are the same, and the productivity of workers in the provinces is the same as well. Workers should be paid equally and must not be discriminated against just because they are from the provinces,” he added.

Economic think tank IBON Foundation Executive Director Jose Enrique A. Africa said a legislated wage increase would not be inflationary.

“The P35 NCR minimum wage hike isn’t even enough to make up for inflation since the recent peak real value of the minimum wage was reached in June 2016 at the close of the last Aquino administration. This would have needed a P45 hike but only P35 was given, meaning that the minimum wage has not even kept up with the last eight years of inflation,” Mr. Africa told BusinessWorld via Viber.

Employers called the wage order a “relief” and “win-win” as it strikes a balance between the interests of workers and businesses.

In February, the Senate approved a P100 across-the-board minimum wage hike for workers in the private sector.

The House of Representatives has yet to pass counterpart legislation. Bills in the House for an across-the-board hike range from P100 to P750.

The regional board reviewed petitions ranging from P597 to P750 before it made its decision on June 27.

“I see an opportunity in this granting of even a meager wage increase. It emboldens workers in their advocacy for a legislated wage hike,” Mr. Matula added. “(This also) highlights to Congress the weaknesses of the RTWPBs, providing more reason to legislate corrective measures.”

Cosco Capital to acquire Matuno River Dev’t Corp.

LUCIO L. Co-led Cosco Capital, Inc. announced on Thursday the planned acquisition of Matuno River Development Corp. (MRDC), expanding its presence in the renewable energy sector.

In a disclosure to the stock exchange, Cosco Capital said it intends to acquire 9.18 million shares of MRDC. The company did not disclose the price.

“The intended transaction offers Cosco Capital the opportunity to enter into another profitable business within the renewable energy sector,” the listed company said.

“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” it added.

MRDC is the developer of the 8.66-megawatt Matuno River Hydroelectric Power Plant in Bambang, Nueva Vizcaya. The power plant is covered by a hydropower service contract with the Energy department.

The power plant draws energy from the Matuno River, a tributary of the Magat Dam.

“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital, Inc., as well as to its entire operating segment, generating more income for the company,” Cosco Capital said.

Cosco Capital said the shares will be paid through issuance of checks.

It added that the proposed acquisition will be submitted to the approval of the Philippine Competition Commission, if applicable.

Cosco Capital finalized its entry into the renewable energy sector in March after acquiring a 60% stake in Catuiran Hydropower Corp. for P551.88 million.

Catuiran operates an eight-megawatt hydropower plant in Naujan, Oriental Mindoro. The plant is covered by a renewable energy service contract with the Energy department.

On Thursday, Cosco Capital shares rose by 0.22% or one centavo, closing at P4.59 apiece. — Revin Mikhael D. Ochave

PHL banks’ nonperforming loans likely past peak, Fitch says

BW FILE PHOTO

PHILIPPINE BANKS’ nonperforming loans (NPL) may have already peaked amid an improving operating environment and expectations of benchmark interest rate cuts in the near term, Fitch Ratings said on Thursday.

“We believe that NPLs have already peaked in the Philippines. We’re actually forecasting for the major banks, for the impaired loan ratios to fall flattish this year for some of them,” Fitch Ratings Head of South and Southeast Asia Banks Tania Gold said in a webinar.

Ms. Gold said this outlook is mainly due to the “economic environment and then ratios declining next year on the back of lower interest rates.”

Latest data from the Bangjo Sentral ng Pilipinas (BSP) showed that the banking industry’s gross NPL ratio rose to 3.57% in May from 3.45% in April. This was also its highest in 23 months or since the 3.6% ratio in June 2022.

Soured loans rose by 3.1% to P495.67 billion in May from P480.65 billion a month earlier. Year on year, it jumped by 13.7% from P436.12 billion.

“Certain segments of the loan portfolio do have higher NPL ratios, but overall, we think that they think that they’ve been trending down with strong credit growth,” Fitch Ratings Head of Asia-Pacific Banks Jonathan Cornish said.

Fitch Ratings last month revised its outlook on the Philippine banking sector to “improving” from “neutral.”

“We revised the banking sector outlook to ‘improving’ from ‘neutral’ quite recently. This is really on the back of higher-for-longer interest rates, which means margin and interest income should hold up for longer than we previously expected,” Ms. Gold said.

Fitch also sees high net interest margins (NIM) amid increased unsecured lending.

“There’s even further upside if BSP reduces the deposit reserve requirements. To put some color on this, when we put the ‘neutral’ outlook for 2024 in the banking sector late last year, we were expecting a 7-basis-point (bp) NIM contraction, we’re now expecting a 7-bp increase,” she added.

BSP Governor Eli M. Remolona, Jr. earlier said they want to reduce big banks’ reserve requirement ratio to 5% from the current 9.5%.

The government’s infrastructure thrust will also drive loan growth, Fitch said.

Latest data from the BSP showed that bank lending grew by 9.6% to P11.91 trillion as of end-April from P10.87 trillion a year ago, its fastest pace of growth in 12 months.

“We saw some high NPLs during COVID, even on the mortgage side, so we’re watching to see how these unsecured loans season. However, all our issuer default ratings in the Philippines are driven by government support rather than the standalone ratings,” Ms. Gold added. — Luisa Maria Jacinta C. Jocson

London exhibition looks at Barbie’s design evolution over 65 years

LONDON — A new exhibition looking at the evolution of Barbie opens in London this week as the famed Mattel doll celebrates her 65th birthday this year.

Barbie: The Exhibition,” running at the Design Museum from July 5 to Feb. 23, features more than 250 items from the Barbie universe, including an array of dolls showing her changing appearance, design sketches, and dream houses.

On display is a first edition of the first Barbie released in 1959 with blonde hair, angled eyes, dressed in a black-and-white swimsuit, along with later models representing different races, hair textures and shapes.

Other “firsts” include a Black Barbie and one in a wheelchair. One section dedicated to career roles includes a police officer, scientist, doctor, presidents and a voter, while another focuses on Barbie’s long-term companion Ken, who was introduced in 1961.

“I hope that whatever your reason for coming to this show …, whether you’re a Barbie fanatic or whether you’re a Barbie sceptic, you come away with an appreciation of detailed research and the rigorous design thinking that goes into the making of Barbie,” curator Danielle Thom said in an interview.

“I do hope that people come away having learned something about … how this brand has come into being and managed to dominate the toy market for such a long period of time.”

The exhibition coincides with Barbie’s 65th birthday this year and follows on the huge success of last year’s Barbie movie starring Margot Robbie, which grossed $1.4 billion at the global box office.

“Barbie’s resonance and culture has never been larger, more prominent,” Kim Culmone, senior vice-president of design for Mattel, said. — Reuters

A private equity rebound remains elusive

DC STUDIO-FREEPIK

ASIA-PACIFIC private equity (PE) markets plunged again in 2023 as investors fretted about slowing economic growth, high interest rates, and volatile public stock markets. Deal value fell to $149 billion, extending the dealmaking slump that began in 2022. Exits fell sharply, and fund-raising declined to its lowest level in 10 years.

Investors remained especially cautious of buying companies in Greater China, and a murky economic outlook affected the entire region. Southeast Asia deal value fell 39% compared with the previous five-year average and exit value declined 58% over 2022.  In the first quarter of 2024, Southeast Asia deal value fell to $1.4 billion, down 46% from the previous quarter.

Japan was the only market to buck the trend, with a rise in deal activity. Investors found comfort in Japan’s deep pool of target companies with performance improvement potential, its stable regulatory environment, and persistently low interest rates.

Technology was again the largest industry sector in terms of deals and exits across the region. But investors continued shifting away from riskier, more speculative assets to defensive assets, including manufacturing companies and firms linked to the energy transition. The energy and natural resources sector was the only investment area in which deal value and volume grew in 2023. Deal value rose to $22 billion, up 7% versus the prior five-year average. In Southeast Asia, several large deals boosted healthcare’s proportion of overall deal value.

For the first time since 2017, buyouts represented the largest proportion of Asia-Pacific deal value, pushing growth deals to second place. Buyouts accounted for 48% of deal value, up from the prior five-year average of 32%. Growth deals represented 41% of deal value. However, in Southeast Asia, growth capital continued to account for 70% of deal value in 2023.

Asia-Pacific median deal multiples — the ratio of enterprise value to EBITDA — fell sharply in 2023 to 10.1 from 14.8 a year earlier, according to data reported at year-end. In Southeast Asia, the median multiple dipped slightly to 11.6%.

Facing the sixth year in a row of low or negative net cash flow, limited partners (LPs) put new allocations largely on hold. Investors focused on funds with demonstrated success, exposure to preferred markets, and differentiated strategies.

By year-end, signs of market improvement began to appear, but the timing of a recovery remains unclear. Inflation rates began falling in most markets after spiking in 2022. Interest rates in most Asia-Pacific markets are forecast to decline in late 2024 or 2025. And some currencies that depreciated against the US dollar in 2022 and 2023 started to recover.

Returns were a bright spot in 2023, reconfirming that private equity is still an attractive investment class, far outperforming public markets over 5-, 10-, and 20-year horizons. And the volume of dry powder remains at a record level.

New sectors hold promise once private equity rebounds: Disruptive innovations like generative AI are creating fresh opportunities. Bain research shows most general partners (GPs) are using generative AI to mitigate risk, enhance operations, and improve the performance of portfolio companies. GPs already are scouting for generative AI assets coming to market and are assessing how generative AI can be useful during diligence on potential targets.

LPs are still optimistic about some countries within the region. Japan ranked among the top three developed markets for PE investment opportunities over the next 12 months, according to Preqin’s 2023 investor survey. India and Southeast Asia ranked best in terms of emerging market investment opportunities.

The two-year drop in dealmaking has put GPs under growing pressure to exit aging investments and return cash to LPs. The most common reason that efforts to sell portfolio companies have failed is the buyer and seller cannot agree on the valuation. To improve their odds, leaders are shifting their attention to portfolio management and exit planning. Bain research shows that developing a pre-sales strategy and a compelling equity story can help funds attract buyers and exit successfully despite difficult market conditions.

In a turbulent year for private equity, many leading funds also started to explore alternative asset classes, including infrastructure and private credit, as a key source of growth. Both of these asset classes have room to grow in the Asia-Pacific region.

In our experience, diversification is challenging. Those who get it right build needed capabilities and invest close to their core business.

 

Usman Akhtar is a senior partner and head of Southeast Asia Private Equity practice at Bain & Company based in Singapore. Sebastien Lamy is a senior partner and head of Asia-Pacific Private Equity practice based in Singapore, and Lachlan McMurdo is a partner based in Melbourne.

Workers in PHL reporting mental health issues at rate exceeding global average

UNSPLASH

SOME 87% of professionals in the Philippines reported experiencing work-related mental health issues, far exceed the global average of 76%, insurance company AXA said.

The issues cited included at least one of the effects of their work environment: fatigue, trouble sleeping, stress and anxiety, loss of interest, difficulty concentrating, loss of self-confidence, a feeling of worthlessness, and appetite or eating disorders.

Half of respondents reported experience more than four of the effects, against the global rate of over 10%.

“Despite evidence indicating work-related mental health issues, most employees don’t perceive work as the main source of their difficulties. In fact, fewer than a quarter attribute their mental health challenges to their jobs, highlighting a significant disconnect from the actual causes of their struggles,” AXA said in a statement.

AXA added twhat the effects of poor mental health in the workplace lead to “significant disengagement.” It said 85% of workers in the Philippines are thinking of stepping back from work, while 68% are considering quitting or changing jobs.

Over 55% of respondents said they disengage by taking training courses for new jobs, 54% choose to work remotely to escape the workplace, while half take sick leave. It added that 31% have called in sick due to mental health issues.

Burnout is a key issue for employees, with 33% saying they experienced it in 2023. This is above the global average of 20%. Only 22% of employees who experienced this said they sought professional help.

The study found 64% of Philippine respondents are more likely to seek support from their supervisors, well above the global average of 46%.

Over 70% said their companies are providing mental health support, compared to 57% globally.

This brings the satisfaction rate of Filipino workers to 68%, though it dips to 58% for those experiencing burnout.

“Given the variety of mind health problems and difficulties encountered in the workplace, businesses should have a diverse range of solutions on their radar to meet everyone’s needs,” AXA said.

Almost half of respondents expect their employers to offer mental health workshops, 43% expect external consultation services, and 38% expect to be granted mental health days.

The study added that 49% of respondents in the Philippines expressed a strong preference for mental health education, against the global average of 36%.

“Prioritizing the health of employees and recognizing how critical it is to ensure they maintain a positive state of being in and out of the workplace is a business imperative,” Sharon C. Hernandez, chief human resources officer of AXA Philippines said in a statement. — Chloe Mari A. Hufana

Why companies need an AI policy

The integration of artificial intelligence (AI) into business operations is rapidly transforming industries, creating new opportunities, and posing significant challenges. As AI systems become more advanced and ubiquitous, the need for companies to develop comprehensive AI policies has become critical. These policies serve as a framework for responsible AI deployment, ensuring that the technology is used ethically, legally, and effectively. The importance of having an AI policy is underscored by the actions of several leading organizations that have already established such guidelines.

Firstly, AI policies are essential for managing ethical considerations. AI systems can make decisions that have profound implications on people’s lives, such as in hiring processes, loan approvals, and law enforcement. Without proper guidelines, these systems can perpetuate or even exacerbate biases and discrimination. An AI policy helps companies identify potential ethical issues and implement measures to mitigate them. For instance, Google has developed its AI Principles, which outline objectives such as avoiding unfair bias, being accountable to people, and ensuring privacy and security. These principles guide Google’s AI development and use, aiming to prevent harm and promote fairness.

Secondly, AI policies are crucial for legal compliance. The regulatory landscape for AI is evolving, with governments around the world introducing new laws and regulations to govern its use. Companies need to navigate this complex environment to avoid legal pitfalls. An AI policy provides a structured approach to compliance, helping organizations adhere to relevant regulations. For instance, the European Union’s General Data Protection Regulation (GDPR) includes explicit rules governing automated decision-making and profiling. Companies operating in the EU must ensure their AI systems comply with these rules, and having a robust AI policy can facilitate this process.

Moreover, AI policies help safeguard user privacy and data security. AI systems often rely on large datasets to function effectively, which raises concerns about how this data is collected, stored, and used. A well-defined AI policy addresses these issues by establishing standards for data governance, including data anonymization, consent, and access controls. Microsoft’s AI principles emphasize the importance of privacy and security, committing to stringent data protection measures and transparent data practices. This safeguards users and at the same time fosters trust among customers and stakeholders.

AI policies also play a vital role in fostering transparency and accountability. As AI systems and platforms become more complex, understanding their decision-making processes becomes increasingly challenging. This opacity can lead to mistrust and skepticism among users and the public. An AI policy that promotes transparency can help demystify these systems. For instance, IBM has published its AI Ethics and Principles, which include commitments to transparency and explainability. IBM aims to ensure that AI decisions are understandable and that there is clarity about how data is used, and AI models are trained.

Furthermore, AI policies encourage innovation and sustainable growth. By providing clear guidelines, these policies can help companies navigate the ethical and legal challenges associated with AI, allowing them to focus on innovation and development. A structured approach to AI can lead to the creation of more reliable and effective AI solutions. For example, Accenture’s Responsible AI framework is designed to foster innovation while ensuring ethical use of AI. This approach balances the need for cutting-edge technology with the imperative to act responsibly.

In addition, AI policies support workforce preparedness and development. The rise of AI is reshaping job roles and skill requirements, necessitating new training and education programs. An AI policy can include strategies for workforce development, ensuring employees have the skills needed to work with AI technologies. This is essential for maintaining a competitive edge and for mitigating the potential displacement of workers. For instance, Deloitte’s AI Institute focuses on understanding the impact of AI on the workforce and developing strategies to upskill employees, thereby supporting a smooth transition to an AI-driven workplace.

The importance of having an AI policy is also reflected in the initiatives of industry consortia and standard-setting bodies. Organizations like the Partnership on AI, which includes members such as Amazon, Facebook, and Apple, work to establish best practices and standards for AI. These efforts underscore the collective recognition of the need for responsible AI development and deployment.

In the end, the necessity for companies to adopt an AI policy cannot be overstated. Such policies provide a framework for addressing ethical concerns, ensuring legal compliance, protecting privacy and data security, fostering transparency and accountability, encouraging innovation, and supporting workforce development. By adopting and adhering to AI policies, companies can harness the transformative potential of AI in a responsible and sustainable manner, ultimately contributing to societal well-being and progress.

The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the Digital Transformation: IT Governance Committee of FINEX Academy. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

FedEx to expand facility at Clark airport

FEDERAL EXPRESS Corp. (FedEx) plans to expand its facility at Clark International Airport (CIA) to accommodate increasing demand from small- and medium-sized enterprises and large freight shippers seeking access to global markets, the company announced on Thursday.

The company has entered into an agreement with Luzon International Premiere Airport Development (LIPAD), the operator of CIA, to initiate the expansion project, FedEx said in a statement.

Upon completion, the expansion will increase the size of the company’s current 17,000-square-meter facility twofold.

The facility currently boasts a sorting capacity of 9,000 parcels per hour and includes a 630-square-meter area dedicated to freight handling.

“The new facility is set to offer enhanced capabilities that will benefit local businesses looking to amplify their presence in international markets and support the growing demand for e-commerce, freight, and cold-chain shipments across the Asia-Pacific region,” said the company.

FedEx also said that the expansion encompasses the establishment of additional aprons and taxiways, aimed at enhancing cargo handling capabilities.

“These developments are expected to bring economic benefits to the northern Luzon region, providing job opportunities for the local community and serving as an economic stimulus in the region,” it added.

FedEx established its presence in Clark in October 2021, marking an extension of its 40-year history in the Philippines. — Justine Irish D. Tabile

Roger Waters busy on new album, says Pink Floyd reunion ‘not in me’

ROGER WATERS — COMMONS.WIKIMEDIA.ORG

LONDON — Roger Waters has dismissed the idea of Pink Floyd reuniting on stage again, saying he is “busy doing other things” including working on a new album and writing a memoir.

In an interview with Reuters, the guitarist and singer-songwriter said he loved his time in the rock group he co-founded in 1965 but had no plans to perform again with his two former surviving bandmates, drummer Nick Mason and guitarist David Gilmour.

Mr. Waters, the creative force behind albums like The Dark Side of the Moon and The Wall, left Pink Floyd in 1985 following personal and creative differences.

He was embroiled in legal wrangles over use of the group’s name as his former bandmates continued without him.

He and Mr. Gilmour have been at odds for years in one of rock’s most famous feuds, clashing more recently on social media over the Russia-Ukraine war.

Asked if the three might ever perform together again, Waters said: “No, whatever for?”

He said the idea of a reunion was like a nostalgic need in some people but added “it’s not in me.”

Pink Floyd last performed together at the Live 8 charity concert in London in 2005, when Mr. Waters joined Mr. Mason, with whom he is friendly, Mr. Gilmour, and keyboardist Richard Wright on stage.

“We did it. And I don’t regret it because Rick (Wright) was still alive, and I’m so glad that we had the opportunity to at least do three or four numbers,” Mr. Waters said.

“We played reasonably well, and the people liked it. And so I’m really, really glad. Do I want to do anything like (it)? No, I don’t, particularly as there’s only three of us left alive.”

Mr. Wright died in 2008. Original frontman Syd Barrett, who left the band in 1968 due to his erratic behavior brought on by drug abuse, died in 2006.

Mr. Mason told Reuters in May he would be open to a reunion but that there was no such appetite from Mr. Waters and Mr. Gilmour.

“I’m busy doing other things… it has nothing to do with any rancor or anything. People are different,” Mr. Waters said.

“David and I are very, very different people and that’s okay.”

Mr. Waters, 80, said he currently was working on his new album, called The Bar as well as a memoir.

“I’ve been working on (it) for a couple of years… and I’m in sort of an editing process with that now. So, I’m a busy chap,” he said. — Reuters