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Asialink secures P125-million credit line from Korean bank

ASIALINK FINANCE Corp. has secured a P125-million credit line from KEB Hana Bank Global to help boost its lending resources, it said on Wednesday.

The credit line will help fund loans to small businesses, Asialink said in a statement.

“This breakthrough collaboration with a South Korean bank marks a vital step towards strengthening further Asialink’s diversification of funding sources for relending to the largely unbanked business sector,” Asialink President and Chief Operating Officer Eillen B. Mangubat said.

“The credit agreement between Asialink and Hana Bank is a testament to our commitment to enhancing Filipino lives through increased funding and sustainable growth,” KEB Hana Bank Manila Site General Manager Francis Koo said.

Asialink released over P12 billion in loans to new borrowers last year, it said.

It aims to disburse a combined amount of more than P40 billion in loans this year to small- and medium-sized businesses.

Micro, small and medium enterprises accounted for 99% of business establishments in the Philippines in 2022, government data showed.

Asialink is aiming to conduct an initial public offering by 2028 and expects its total capital to reach P30 billion by then.

As of April, its capital stood at P12 billion.

The company also aims to double its active customer base next year from the 100,000 recorded as of April. — A.M.C. Sy

Jailing of theater duo sends shockwaves through Russia’s artistic community

LONDON — Leading figures in Russian artistic and intellectual circles have expressed shock and dismay after a theater director and playwright were jailed for six years on charges of “justifying terrorism.”

Monday’s verdict by a Moscow court against director Yevgenia Berkovich and playwright Svetlana Petriychuk, who maintained their innocence, had been all but certain as acquittal rates for serious crimes are near zero in Russia.

The pair were arrested in May last year for staging Finist, the Brave Falcon, a play that borrowed elements from a classic fairy tale to tell the story of Russian women who are lured to Syria and marry Islamic State (ISIS) fighters.

Their conviction is widely seen as the first occasion in modern Russia that artists have gone to jail solely for their art rather than for an explicitly political stance.

Russian opposition figures said the court ruling represents a widening of a Kremlin crackdown on free expression and shows no one is safe from criminal prosecution.

“The criminal case against Yevgenia Berkovich and Svetlana Petriychuk will go down in Russian history as one of the most shameful and disgraceful,” opposition politician Lev Shlosberg wrote on Telegram.

The pair’s conviction, he said, was “a reminder of the complete defenselessness of art in a state without rights.”

Asked by reporters about the court ruling, the Kremlin declined to comment.

Defense lawyer Kseniya Karpinskaya said she would appeal the guilty verdict and sentence following a six-week trial, but that she had “little hope.”

CULTURAL FIGURES FLEE ABROAD
Russian arts have been drained of much of their creative talent since the invasion of Ukraine in February 2022, after which many top writers, musicians, and directors fled abroad.

Artists and human rights defenders inside and outside Russia have organized an open letter in support of Ms. Berkovich, 39, and Ms. Petriychuk, 44, that has garnered more than 16,000 signatures.

Supporters point out the irony that a play that won two of Russia’s top theater prizes at a festival supported, in part, by the culture ministry, is under fire from its justice system.

“They didn’t do anything wrong,” exiled Russian director Kirill Serebrennikov said at the Cannes Film festival in May. “They just staged a play that won a national theater award.”

Prosecutor Yekaterina Denisova argued that the women displayed positive opinions of ISIS and that the play did not sufficiently denounce radical Islamist ideologies.

Ms. Berkovich and Ms. Petriychuk said that while they had nothing against Islam, they were not Muslims and the play, whose main character is jailed for terrorism on her return to Russia, clearly condemned extremism.

“I staged the performance to prevent terrorism,” Ms. Berkovich told the court at the start of the trial. She said she had “nothing but condemnation and disgust” for terrorists.

Weeks before the trial, Ms. Berkovich and Ms. Petriychuk were added to Russia’s official list of “terrorists and extremists,” joining thousands of people and entities similarly designated in a crackdown on perceived subversive activity that intensified after the invasion of Ukraine.

Authorities launched the case after a pro-Kremlin theater actor — later a witness for the prosecution — denounced a staging of Finist, the Brave Falcon in his home city, Nizhny Novgorod, in social media posts.

The man, Vladimir Karpuk, said it was inappropriate to put on a play by an anti-war playwright following a Ukrainian attack on a bridge linking Russia and annexed Crimea.

Prominent journalist Ksenia Sobchak said it was a “disgrace” to Russia’s justice system to jail artists whose work “in fact exposes this terrorism rather than justifies it.”

“I am simply speechless,” she said. — Reuters

Philippine Merchandise Trade Performance (May 2024)

THE PHILIPPINES’ trade gap widened slightly in May, as exports and imports contracted on an annual basis, the statistics agency said on Wednesday. Read the full story.

Philippine Merchandise Trade Performance (May 2024)

PLDT completes VITRO data center structure

BW FILE PHOTO

PLDT Inc., through its unit ePLDT, Inc., has completed the structure of its 50-megawatt (MW) hyperscale VITRO Sta. Rosa, its biggest data center to date, the company announced on Wednesday. 

“VITRO Sta. Rosa is a landmark achievement for the PLDT Group and the Philippines. A lot of hyperscalers have already expressed their interest in co-locating in our facility,” ePLDT and VITRO, Inc. President and Chief Executive Officer Victor S. Genuino said in a statement. 

The structural completion of VITRO Sta. Rosa will pave the way for power integration and energization, ePLDT said. 

“With its structural completion, VITRO Sta. Rosa is completing another cornerstone in its development as it energizes the facility soon to welcome telcos, enterprises, and hyperscalers,” it added.

VITRO Sta. Rosa is said to be the country’s largest data center campus in the country, sitting on a five-hectare lot in Sta. Rosa, Laguna. According to its website, Vitro Sta. Rosa will have an initial capacity of 14 MW this year, which can be expanded to 50 MW once fully operational.

The Laguna data center is ePLDT’s 11th data center.

VITRO Sta. Rosa is designed to use less energy while also using the latest innovation in cooling and power redundancy — the highest network level with at least three fiber routes from PLDT and other telecommunication providers.

Earlier this year, PLDT said it was planning to scale up the capacity of its data centers.

The company said that its planned 12th data center may double the capacity of VITRO Sta. Rosa, while it is still in the site selection process for its 13th and 14th data centers. 

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. — Ashley Erika O. Jose

Evolution to drive Philippine digital economy’s growth

SNOWING-FREEPIK

THE PHILIPPINE digital economy is poised for further growth as platforms continue to evolve, driven by a young population and growing demand for online solutions, industry executives said.

“With the average age for Filipinos at 25, the growth of online payments, and consumer behavior wanting more convenience and more speed, we value time more,” Prosperna Chief Executive Office and Founder Dennis Velasco said during a panel discussion at KPMG’s Innovation Summit 2024 held on July 4.

“People are hungry to find more ways — not just via e-commerce — to save time and money,” he said.

Prosperna is an e-commerce platform that allows businesses to set up online stores to sell their products, accept payments, and book shipping.

Merchants and brands are embracing multi-channel commerce rapidly, Mr. Velasco added.

“Brands and products need to be everywhere — Facebook, Instagram, Lazada, Shopee, TikTok, — you name it,” he said. “Just like in traditional retail, instead of them having to input a lot of money on expensive rent, they can access more customers in multiple channels online.”

Payment gateway Dragonpay, for its part, found ways to integrate several payment methods into its platform and then offer a single application programming interface to merchants or the seller.

This is meant to help serve customers who do not have credit cards, Dragonpay CEO Dick Chiang said during the same discussion.

“We tried to solve the problem of financial inclusion by looking out there and figuring out what is everybody doing. Are they going to an LBC counter, Cebuana counter? Are they paying cash over the counter?,” Mr. Chang said.

Electronic platform GCash is built around problem-solving and providing consumers easier access to financial services, Mynt Chief Finance Officer Tek Olaño said. Mynt or Globe Fintech Innovations, Inc. is the parent firm of GCash.

“We always put the purpose of the company at the center of the project. We want financial innovation. We want financial health. We want to provide financial access to the Filipinos,” Mr. Olaño said.

“A lot of companies talk about artificial intelligence (AI) or wanting to be data-driven and customer-centric, but leadership makes a difference in embracing digital transformation,” Security Bank Corp. Senior Vice-President and Head of Data Science & AI Center of Excellence Criselda Q. De Sagun-Madrid said. — A.R.A. Inosante

New cardholders drive growth in credit cards

FREEPIK

THE PHILIPPINE credit card market continued to grow in the fourth quarter of 2023, mainly driven by new cardholders, a study by TransUnion showed.

Total outstanding credit card volumes in the Philippines increased to 11.2 million in the fourth quarter of 2023 from 9.3 million in the same period in 2022, TransUnion said in a statement on Wednesday.

Credit card penetration, or the percentage of adults holding at least one credit card, reached over 15% of Filipino adults in the same period.

“Together, these trends represent a growth of around 20% in both overall volume and penetration rate in the last year,” it said.

TransUnion said its study’s findings were consistent with data from the Credit Card Association of the Philippines (CCAP). CCAP data showed credit card spending increased by 39% to P853 billion in the first half of 2023, faster than the 29% increase in the comparable year-ago period.

“The trends in card originations, total volume, penetration, and spending all indicate a promising growth trajectory for the credit card market in the country,” TransUnion said.

“The credit card market in the Philippines will continue to experience growth as demand remains high, especially amongst younger consumers. Data from TransUnion clearly shows that the younger generation of Filipinos, particularly Gen Z, are quickly emerging as a cornerstone for future market growth. This generation places a higher importance on accessing credit and lending products to achieve their financial goals. As more Gen Z consumers reach adulthood, we expect their share of the credit market to continue increasing,” TransUnion Asia Pacific Principal of Research and Consulting Weihan Sun said.

The firm’s study showed that Gen Z Filipinos contributed significantly to the increase in credit card originations.

“The percentage share of overall originations among Gen Z Filipinos has more than doubled over the past five years — up from just under one in 10 (9%) in Q3 2019 to more than one in five (22%) in Q3 2023. This share will likely increase as more Gen Z consumers reach adulthood,” it said. “Gen Z Filipinos also comprised a greater share of the new-to-card segment of borrowers — they made up one-third (33%) of all new-to-card borrowers in 2023.”

Overall, new-to-card consumers accounted for 30% of all outstanding credit card balances during the first nine months of 2023, up from just 19% in 2019 or before the coronavirus pandemic.

Lenders can tap this market through value-added services such as reward points, installment payment facilities, and discounts associated with their card products, TransUnion said.

“While it’s an important factor for potential growth opportunities among lenders, bringing new-to-card consumers into the formal financial system can also drive greater financial inclusion by catering to a larger demographic of borrowers. To that end, TransUnion Philippines remains committed to finding innovative ways to use alternative data to help more consumers access the credit they need,” Mr. Sun said. 

“We are focused on helping Filipinos who were previously deemed invisible by the formal financial system to access the credit they need to broaden their horizons, build wealth and attain greater flexibility, contributing to the development of the country as a whole,” he added.

By gender, male borrowers accounted for 60% of credit card originations while females comprised the remaining 40%.

The number of active credit card accounts was likewise dominated by men with a 61% share.

“This ratio has remained relatively consistent over the past five years, highlighting a strong need to focus more on extending financial inclusion among female consumers,” TransUnion said.

“As TransUnion continues its pursuit of financial inclusion in the Philippines, closing the gender gap among credit card borrowers also emerges as a promising avenue for growth,” Mr. Sun said. “Lenders should consider offerings specifically tailored to female consumers to foster a more financially inclusive credit market, which at the same time would help them to further capitalize on the growth potential of an expanding market.” — A.M.C. Sy

On the sidelines

PRESSFOTO-FREEPIK

AT THIS TIME of the NBA season already ended in the US, the search for coaches seems frenzied. It seems the decision to fire an existing coach is an easy decision for teams not making the playoffs or exiting too early in them. Why blame the marquee players when you can dump the coach?

While the coach doesn’t score any points, he’s the easiest to blame for any loss. It’s not just sports that require coaches. Corporate organizations too need help from the sidelines with the use of management consultants. Then there is the little-known niche in business advice which is “executive coaching.”

This special consultant has for a client not a company but only its CEO for “one-on-one” evaluation and guidance. In a period of four to six weeks, this corporate trainer watches his CEO from the sidelines. Much like a coach for basketball, he observes how the CEO undergoes fitness training, dribbles the ball through midcourt in time, makes foul shots, assists, trash talks, plays under pressure (down 15 points in Q4), and accept defeats — next season will be better, this is a learning experience.

CEOs are used to giving orders. Can they also sit still and listen to a coach evaluating their plays? When is the best time to recruit an executive coach? Probably not during a corporate crisis when the phone can’t stop ringing and there’s hardly time to sit still and listen to leadership principles. A quiet first quarter when the previous year’s numbers are being finalized (or massaged) may offer the right break.

The coach should not be part of a CEO’s management team. Being on the inside may affect the advice he offers when he may have his own agenda to promote. The ideal coach is retired from his corporate job, had a good and successful career behind him, preferably even residing in another country, making him an objective observer. A stranger with no professional ties to his client is ideal.

The CEO is deemed too close to the game, and so needs the perspective of someone on the sidelines who has also played this game. Like a retreat master, the coach raises basic questions which the CEO can meditate on. The counseling sessions can take the form of Ignatian spiritual exercises — is there a corporate after-life?

What role should the CEO play? This goes beyond a job description. It’s about the added value a particular CEO brings to his organization. Is he a foreman who gives instructions to the team on how to build the edifice? Does he write the play and cast the actors in particular roles and direct their performance? (Bring your voice down a little.) What are his priorities? Does the in-box dictate his schedule? Does he have an exit strategy for himself? Is he a good mentor?

Some questions deal with the company. Where does the CEO want to bring his organization in the next three years? What does he need to accomplish as CEO to make this happen? Does he consider himself irreplaceable?

Since the client of an executive coach also has a social side, some questions relate to personal issues. How much time does the CEO devote to personal growth? Has he considered what to do when he retires? Does he have a consuming passion outside work, like singing operatic numbers?

The final report after the engagement may just be verbal. It highlights the client’s strengths (he doesn’t sleep) and areas for improvement (he is never fully awake).

An executive coach must be detached. Since he is not out to curry favor with his client, he can be brutally frank. (The client does not always listen, anyway.) After the wrap-up session, the coach will be taking a plane out, not expecting any job offer. His effectiveness lies in his being outside the loop with no intention of being in it. A CEO too needs someone to give unbiased pointers and raise questions subordinates do not care to bring up. Anyway, the coach does not give absolution.

Even young CEOs need to be coached. Sometimes, this is done by informal mentors who may be related, as in the dynastic appointments in family corporations.

Getting views from a sideline coach can give better perspectives on the corporate game… and what to do to when it’s over.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Alec Baldwin manslaughter trial revolves around Wild West gun

ACTOR Alec Baldwin in a scene from Rust. — IMDB

SANTA FE, New Mexico — The inner workings of a Colt .45 “Peacemaker” revolver, a symbol of the American Wild West, have become the focus of Alec Baldwin’s trial for the 2021 fatal shooting of Rust cinematographer Halyna Hutchins on a New Mexico movie set.

Jury selection was set to begin on Tuesday nearly three years after Mr. Baldwin was directed to point his gun at Ms. Hutchins as she set up a camera shot inside a movie-set church about 20 miles southwest of Santa Fe.

Ms. Hutchin’s 2021 death was Hollywood’s first on-set shooting fatality in three decades and momentarily sparked calls to end the widespread use of real firearms on movie sets.

Ms. Baldwin’s involuntary manslaughter trial in a modern, brown-stucco courthouse in downtown Santa Fe is expected to last eight days and run to July 19.

It is remarkable in that there is little or no precedent in US history for an actor to face criminal prosecution for an on-set shooting death. The 30 Rock actor could be imprisoned for up to 18 months if found guilty.

In March, Rust armorer Hannah Gutierrez, the set employee in charge of firearm safety, was found guilty of involuntary manslaughter by a Santa Fe, New Mexico, jury for mistakenly loading a live round into Mr. Baldwin’s gun. Ms. Gutierrez received the maximum 18-month sentence.

Legal analysts and firearms specialists had long expected Mr. Baldwin’s case to hinge on whether he should have inspected the gun after he was told it was “cold,” an industry term meaning it was empty or contained inert, dummy rounds.

But in a pivotal interview in December 2021, Mr. Baldwin told ABC News’ George Stephanopoulos he did not pull the trigger, sending prosecutors and defense lawyers into the world of forensic firearms testing.

Mr. Baldwin, 66, said he cocked the reproduction 1873 Single Action Army pistol before it fired a live round that killed the rising-star cinematographer and wounded director Joel Souza.

Santa Fe police set out to test Mr. Baldwin’s claims. An FBI examination found the gun was worked normally and would not fire at full cock without the trigger pulled. State prosecutors filed charges thereafter, alleging Mr. Baldwin was lying about the trigger.

Mr. Baldwin’s legal team last year countered with photographic evidence the Italian-made Pietta gun’s full-cock notch had been filed down, making it easier to fire. That allowed a mechanical failure or “accidental discharge” without a trigger pull, they said.

UPHILL BATTLE
Whether the revolver was modified or not, legal experts see an uphill battle for the prosecution to prove Mr. Baldwin knew he could kill Ms. Hutchins but showed willful disregard to the risk — a level of criminal negligence required for an involuntary manslaughter conviction.

“The gun is probably the best defense, because there is no way to definitively say what the condition of the firearm was,” said gun historian Ashley Hlebinsky who is executive director of the University of Wyoming Firearms Research Center.

Prosecutors last year dropped charges, convinced the gun was modified, only to have a grand jury reinstate them in January after independent firearms expert Lucien Haag confirmed findings of the FBI examination.

The FBI destroyed the gun during testing and the actor’s lawyers said they were left with no way to prove it was modified.

“The worst evidence against Baldwin is the FBI ballistics report that says he pulled the trigger, and his ABC interview where he said he didn’t,” said Neama Rahmani, a Los Angeles trial attorney and former federal prosecutor.

Another possible hurdle for the prosecution is persuading jurors Mr. Baldwin is guilty of criminal negligence after Ms. Gutierrez and first assistant director Dave Halls were convicted for the shooting. Halls accepted blame in a plea deal, acknowledging he did not check rounds in Mr. Baldwin’s gun. He was convicted on a misdemeanor charge and given a six-month suspended sentence.

“Juries have difficulty with the idea that people can share guilt,” said University of New Mexico law professor Joshua Kastenburg, a former lawyer and judge in the US Air Force.

Still, jurors may not buy Mr. Baldwin’s argument that, as an actor, he was not responsible for firearms safety and relied on set experts like Ms. Gutierrez and Mr. Halls.

Gun ownership is common in the Southwest United States where there is a cultural norm to check a weapon and never point it at someone and pull the trigger, according to Hlebinsky.

Then there is Mr. Baldwin’s on-set behavior.

Using videos and photos from Rust filming, state prosecutor Morrissey will try to show Mr. Baldwin was a man with “no control of his emotions,” whose “off script” firing of guns and pointing them at crew contributed to a collapse in firearms safety, according to court filings.

The two other most powerful people on the set, Souza and Halls, are likely to defend the actor. Both have been called as witnesses by the defense and prosecution, respectively.

During Ms. Gutierrez’s trial, Mr. Souza and Mr. Halls dismissed Mr. Baldwin’s on-set antics as typical of high-powered actors.

Mr. Baldwin’s best defense may be doubts his lawyers can sow about the workings of the pistol, according to Hlebinsky.

“I don’t think anyone can say 100% what happened,” said the firearms historian, who has acted as an expert in court cases on single action Colt. 45 type revolvers similar to Mr. Baldwin’s. — Reuters

MORE Power eyes P1-B investment to boost Bohol services

By Justine Irish D. Tabile, Reporter

ILOILO CITY — Razon-led power distributor MORE Electric and Power Corp. (MORE Power) is looking to invest P1 billion in Bohol to enhance services in the area, its top official said.

On the sidelines of the company’s facility tour on Monday, MORE Power President and Chief Executive Officer Roel Z. Castro said that an investment of one billion pesos over the next four years would be “doable” to improve services in the area.

“Bohol is not as big as Iloilo, and when I was looking at the system, it’s not totally damaged, but it definitely needs improvement, so I am looking at about a billion (in investment),” said Mr. Castro in a mix of English and Filipino.

Mr. Castro said that the investment will cover the installation of automatic circuit reclosers (ACRs), which will ensure continuity of electric service to customers.

“Most of them (electricity distribution infrastructure) do not have ACRs, and ACRs can avert 98–99% of outages. So, the installation of those will immediately bring improvement,” he added.

A part of the investment, he said, will go to establishing a 24/7 helpline in Bohol that will address customer concerns promptly.

 “Their helpline is not that responsive yet. Here in Iloilo, if there is one thing that we really made sure of from the first day, it is our response rate, and you will see that even now,” he added.

 In April, SPC Power Corp. announced that its board of directors had cleared the sale of the company’s share in Bohol Light Co. to MORE Power’s subsidiary Primelectric Holdings, Inc.

 SPC Power holds 29.93 million shares in the power distribution utility in Tagbilaran City, which it sold at P6.67 apiece, totaling P199.5 million. 

 For Negros Occidental, Mr. Castro said that they are ready to start operating but are still waiting for their franchise to be signed.

 “The bill is in Malacañang, and I think if the president doesn’t sign it, it will lapse into law by the end of July,” he said.

 MORE Power, through Primelectric, entered a joint venture with Central Negros Electric Cooperative, Inc. (Ceneco) last year to address power issues in the province.

 Meanwhile, MORE Power’s affiliate, Negros Electric and Power Corp. (NEPC), is seeking the passage of House Bill 9805, which will grant it a congressional franchise to provide services in the area.

NEPC is structured as a 70-30 joint venture between Primelectric and Ceneco, respectively.

 The bill outlines the transfer of the franchise from Ceneco to NEPC, which will be effected via a Primelectric investment in Ceneco.

 Ceneco distributes electricity to households and establishments in the cities of Bacolod, Talisay, Silay, and Bago and the municipalities of Murcia and Don Salvador Benedicto.

Once granted the franchise, Mr. Castro said MORE Power will apply for a certificate of public convenience and necessity (CPCN).

“I don’t know how long the ERC (Energy Regulatory Commission) will take to approve the CPCN, but we will do an early application so that they are able to go through the requirements already,” he said.

“But internally, we are ready now. We made sure that the systems, people, form, permits, and logistics were ready,” he added.

 MORE Power’s initial investment to buy the Negros Occidental distribution system was P2 billion, said Mr. Castro.

 “And then we are readying another P2.1-2.5 billion for the next five years for the improvement,” he added.

Global PC shipments rise in second quarter, with Apple seeing biggest jump, IDC says

GLENN CARSTENS PETERS-UNSPLASH

GLOBAL shipments of personal computers rose by 3% in the second quarter, helped by demand for artificial intelligence (AI)-capable devices, with Apple seeing the biggest growth among PC makers, preliminary data from research firm IDC showed on Tuesday.

PC shipments reached 64.9 million units in the three months ended June, marking a second straight quarter of growth after two years of decline, the report said.

According to International Data Corp. (IDC), Apple’s shipments jumped 20.8% from the second quarter of 2023, the biggest rise among global PC makers, followed by a gain of 13.7% by Acer Group.

The market for PCs is expected to rebound from a lull in orders following the pandemic-driven buying spree.

Two consecutive quarters of growth, the market hype around artificial intelligence PCs, and a commercial refresh cycle seem to be what the PC market needed, said Ryan Reith, group vice-president at IDC’s Worldwide Device Trackers.

“The buzz is clearly around AI, but a lot is happening with non-AI PC purchasing to make this mature market show signs of positivity.”

However, weak results in China continued to hold the market back, IDC said, adding that excluding the country, worldwide shipments grew more than 5% in the quarter year over year.

China’s Lenovo Group saw the highest market share of 22.7%, followed by HP with 21.1%.

Dell Technologies’ market share was at 15.5% while its shipments fell 2.4%. — Reuters

Net Foreign Direct Investment (April 2024)

THE PHILIPPINES’ foreign direct investment (FDI) net inflows slumped to a 10-month low in April, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday. Read the full story.

Net Foreign Direct Investment (April 2024)

PSEi member stocks performed — July 10, 2024

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 10, 2024.