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The Church’s teachings on sustainable mining: The common good

FREEPIK

(Part 2)

The recent Palawan Mining Stakeholders Congress showed the very important influence of the Catholic Church and other religious organizations on public opinion about the desirability of large-scale mining investments in provinces of the Philippines that are rich in mineral ores, especially copper, nickel, and iron and not to mention coal reserves.

Although the majority decision of the stakeholders to declare a moratorium on the issuance of new permits is not legally binding, the Governor of Palawan said that such a consensus will be considered as a major factor for the provincial government’s future policies on mining because it reflected the sentiments of the people.

It would be wise for the top officials of mining companies and LGU heads who recognize the positive contributions of mining income, employment, and poverty alleviation to know very well what the teachings of the Catholic Church are on the issue of sustainable mining. There have already been some notable cases where, in cooperation with LGU heads, Catholic bishops and clergy have influenced the constituents to vote for a no-mining policy, such as in Oriental Mindoro. Although rich in mineral resources, Oriental Mindoro is even richer in very productive agricultural lands and an abundance of water resources that the province can make do with without having to depend on their mineral resources for the livelihood of its population.

That is why, in the many other provinces where mining can make a significant contribution to generating income and employment for the local communities, especially for indigenous tribes, it is of the utmost importance for the investors and other pro-mining supporters to understand where the Church and other religious groups are coming from when they have strong reservations about mining.

As the Apostolic Vicar of Puerto Princesa, the Most Rev. Socrates Calamba Mesiona, explained in great detail during the Palawan Stakeholders Congress, a most important social teaching of the Church is the “universal destination of all the goods of this world.”

It is the Creator’s will that the earth and all which belongs to it be destined for all peoples. It goes against both distributive and social justice that the earth’s goods would only be for the few and powerful, depriving the less privileged people of their use. Pope Francis, quoting from the Second Vatican Council document Gaudium et Spes, defines the common good (as it is also defined in the Philippine Constitution of 1987) as the “sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfilment.” Rather than the utilitarian principle of the greatest good for the greatest number, the common good is respect of the human person as such, endowed with basic and inalienable rights in order to fulfill his or her integral development.

Then Bishop Mesiona walked the talk, going from principle of reflection to criteria for judgment, and all the way to guidelines for action. He did not stay at the level of motherhood statements but got down to brass tacks by describing the many gifts of nature, other than mineral ores, of the Province of Palawan. Waxing lyrical, he noted that we do not need to go somewhere else to marvel at God’s beautiful creation — our beautiful Province of Palawan (indeed, Palawan has been voted by international tourism groups as the “Best Island Resort in the World”). Bishop Mesiona presented a litany of the gifts of creation to his province: Palawan is blessed with rich natural resources and highly diverse flora and fauna found in both land and sea… Its coastal and marine ecosystems include coral reefs (379 species of corals), seagrass meadows (12 species), and mangroves (31 species, distributed in 44,500 hectares of mangrove forests, the largest remaining mangrove cover left in the Philippines). It also harbors several marine species such as marine turtles, dugong, and whale sharks.

Bishop Mesiona presented ample reasons why Palawan is referred to as the “last ecological frontier.” He described the characteristics of terrestrial and freshwater ecosystems of the province as diverse. It is composed of old growth and second growth tropical rainforest which are very difficult to replicate even with the best intentioned and meticulously planned tree planting programs or reforestation. There is karstic limestone, forest over ultramafic rocks, casuarinas and beach forests…These serve as habitats to freshwater fish (a total of 18 Philippine endemics), amphibians (26 Philippine endemics), reptiles (69 species), birds (279 species), migratory birds, and terrestrial mammals (58 species, among which 16 are endemic to Palawan). Even the best mining practices would not be able to avoid wreaking havoc on some of these treasures of nature found in Palawan.

Bishop Mesiona did not completely ignore the blessings that mining can bring to a region that still has a high rate of poverty, which is the fact in Palawan — there are districts where the poverty incidence is even higher than the national average of 22%. He does admit that there are those who support mining in their respective localities because they believe in tangible benefits, such as those in Bataraza town where the Nickel Asia Mining Corp. has mining operations, or the community surrounding MacroAsia Mining Corp. He asked, however, a rhetorical question: “But who are really the main beneficiaries of the so-called ‘development’ and at what price when our mineral resources are extracted, exploited, and brought somewhere else and can never be replaced for the next generation of Palawenos to also see, enjoy, and even behold?”

Referring to Pope Francis, who has written a whole social encyclical entitled “Laudato Si” on the issue of sustainable development, the Bishop reminded us that development must be considered from the inter-temporal point of view. Present development cannot be at the cost of future generations. Pope Francis insists that the common good also extends to future generations: “We can no longer speak of sustainable development apart from intergenerational solidarity… which is not optional, but rather a basic question of justice, since the world we have received also belongs to those who follow us.”

Here, we learn of another kind of commutative justice, which is giving our equals their due. The “others” to which intergenerational solidarity refers are not our contemporaries but generations to come. We cannot try to promote our welfare today by completely disregarding the welfare of future generations. This should be especially felt by parents with children, grandchildren, and those with greater longevity, great-grandchildren.

Bishop Mesiona did not stay only at the level of “principles for reflection” and “criteria for judgment” which constitute the components of the social doctrine that the Teaching Authority of the Church has the obligation to impart to the Catholic faithful. There must be the final “guidelines for action,” walking the talk so to speak.

In this regard, the Bishop gave the audience a reminder that the harsh reality in the Philippines is that good intentions of state regulators are not enough. Often, the best-laid plans of the Department of Environment and Natural Resources (DENR) cannot prevent serious environmental destruction by unscrupulous investors. Indeed, when DENR Secretary Yulo-Loyzaga was asked in a joint session of the committees on local government and environment, natural resources, and climate change about lapses in the issuance of environmental compliance certificates (ECC) to projects in protected areas, she replied: “We are not fully in control of these areas, as you know, given the kind of manpower that we have. The local governments are our partners in the protection of the environment. This is not DENR’s sole job — this is the job of everyone.”

Prudence would then dictate that until the various government agencies can get their act together in truly protecting the environment from irresponsible mining, there should be a moratorium in issuing new permits.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

BTr partially awards bonds on hawkish Fed bets

RJ JOQUICO-UNSPLASH

THE GOVERNMENT made a partial award of the Treasury bonds (T-bonds) it offered on Tuesday at a higher average rate than secondary market levels amid expectations of hawkish signals from the US Federal Reserve this week.

The Bureau of the Treasury (BTr) raised just P26.225 billion via the reissued 10-year bonds it auctioned off on Tuesday, lower than the P30-billion program, despite total bids reaching P53.131 billion.

The bonds, which have a remaining life of nine years and seven months, were awarded at an average rate of 6.754%. Accepted yields ranged from 6.68% to 6.78%.

The average rate of the reissued bonds went down by 7.1 basis points (bps) from the 6.825% fetched for the series’ last award on May 7. However, this was 50.4 bps above the 6.25% coupon for the issue.

This was likewise 4.5 bps higher than 6.709% quoted for the 10-year bond and 3.7 bps above the 6.717% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

Tuesday’s T-bond award brought the outstanding volume for the series to P141.9 billion, the BTr said in a statement.

“The awarded T-bonds today fetched higher amid expectations of hawkish guidance from the Fed meeting this week,” a trader said in an e-mail on Tuesday.

The Federal Open Market Committee was set to start a two-day policy meeting overnight, where it is expected to keep its target rate at the 5.25%-5.5% range for a seventh straight meeting.

The Fed will also update their economic and interest rate projections at this week’s meeting.

Officials have turned more hawkish since the last such release in March, when the median projection was for a reduction of three quarter points this year, Reuters reported. Markets are currently pricing in only 37 bps of cuts by December.

The peso’s persistent weakness against the dollar also led to the higher awarded T-bond yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

On Monday, the local unit closed at P58.79 per dollar, dropping by 27 centavos from its P58.52 finish on Friday, Bankers Association of the Philippines data showed.

Year to date, the peso has weakened by P3.15 from its end-2023 close of P55.37 versus the greenback.

Mr. Ricafort added that T-bond rates likely rose after the 10-year US Treasury yield climbed to new one-week highs due to tempered expectations of a rate cut by the Fed this year after stronger-than-expected US jobs data.

On Monday, US Treasury yields rose as investors digested Friday’s labor market data and looked toward consumer price data and a Federal Reserve policy announcement this week, Reuters reported.

The yield on benchmark US 10-year notes rose 4.1 bps to 4.469% from 4.428% late on Friday, while the 30-year bond yield rose 4.8 bps to 4.5958%.

The 2-year note, which typically moves in step with interest rate expectations, rose by 1.5 bps to 4.8846% from 4.87% late on Friday.

US nonfarm payrolls expanded by 272,000 jobs last month, data showed, while revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000.

Average hourly earnings rose 0.4% after having slowed to a 0.2% rate in April. Wages increased 4.1% in the 12 months through May following an upwardly revised 4% annual rise the prior month.

The unemployment rate, however, edged up to 4% from 3.9% in April, breaching a level that had previously held for 27 straight months.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion from Treasury bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

Topline invests P210M in expansion of fuel station network in Cebu

BW FILE PHOTO

TOP LINE Business Development Corp. (Topline), a property management, franchising, and fuel distribution company, said it has allocated approximately P210 million to finance the construction of its nine fuel stations in Cebu.

“We inaugurated our first service station under the Light Fuels brand just last year, and we are now expanding our footprint in the retail fuel market as we map out our company’s growth to meet the increasing demand in Central Visayas,” Topline President and Chief Executive Officer Erik Lim said in a statement.

“The total annual project volume for the [nine] service stations is estimated to be approximately 12 million to 12.5 million liters. By increasing the supply of liquid fuel in the market, we aim to contribute to the region’s fuel security, especially in the face of supply risks,” Mr. Lim added.

The fuel service stations will be operated by its subsidiary, Light Fuels Corp., and are scheduled to commence operations within the year.

Topline Logistics and Development Corp., another subsidiary of Topline, will supply and distribute liquid fuel to Light Fuel stations as part of Topline’s synergy strategy through vertical integration to optimize costs and mitigate supply chain risks.

Topline Logistics aims to engage in the importation, trading, distribution, and marketing of petroleum-based products, while Light Fuels is involved in the fuel retail sector.

Their parent company, based in Cebu, is actively involved in commercial fuel trading, depot operations, and retail fuel in the Visayas region. — Sheldeen Joy Talavera

Arts & Culture (06/12/24)


Exhibit honors Albert Avellana

SIX artists come together in the exhibit “Same House, Different Time” in a tribute to the late gallerist and curator Albert Avellana. Each year on June 12, Mr. Avellana, the former president of the Museum Foundation of the Philippines, Inc., celebrated his birthday with an exhibit opening at Avellana Art Gallery. The Pasay gallery, which he referred to in an interview as a “living, evolving space for the creative spirit,” would be abuzz with energy as friends, family, art patrons and collectors, and artists spill through its doors in anticipation of new, interesting works and a lively, vibrant party that he was known for. This year, almost two years since his passing, six of his artists who have called Avellana Art Gallery their home literally or figuratively, come together in a show in honor of Avellana who would have turned 61. The two-part exhibit entitled “Same House, Different Time” features pieces by Eugene Jarque, Mac Valdezco, Lexygius Calip, Lynyrd Paras, Ryan Rubio, and Joey Cobcobo. The exhibit starts at the upper gallery rooms featuring mostly old works representing their early encounters with Mr. Avellana. The works in the main gallery conclude the show, featuring their more recent works. The pieces — a mix of paintings, prints, and sculptures — are a tribute to Avellana and how his encouragement and support allowed them to experiment, explore, and navigate their own creative journeys. “Same House, Different Time” opens on June 12 at the Avellana Art Gallery, 2680 F.B. Harrison St., Pasay City, with opening cocktails at 6 p.m.


ArtistSpace holds a blue group exhibit

RENEW your view of blue in this color-centered exhibition that features 25 of the most notable names in contemporary Philippine art. InThe Imperative of Blue,” opening on June 12 at 6 p.m. at ArtistSpace, practitioners of various thematic, stylistic, and conceptual persuasions delve into the properties of blue, not only for its visual weight and feeling, but also its deep implications in culture, history, and the topography of self. The group show will be on view from June 12 to 25 at the ArtistSpace, located at the Ground Level, Ayala Museum Annex, Makati Ave. corner De La Rosa St., Greenbelt Park, Makati City. The roster of artists includes Art de Leon, Billie Jean, Dale Bagtas, Demet Dela Cruz, Dex Fernandez, Don Bryan Bunag, Isko Andrade, Johanna Helmuth, Julieanne Ng, Julius Redillas, Kadin Tiu, Katrina Cuenca, Lao Lianben, Lindslee, Luis Antonio Santos, Lynyrd Paras, Marina Cruz, Mark Andy Garcia, Mars Bugaoan, Neil Pasilan, Plet Bolipata, Raffy T. Napay, Ronald Caringal, Sonny Tolentino, and Winna Go. The exhibit is curated by Carlomar Arcangel Daoana and co-presented with Arcadia Art Gallery. The gallery is open daily from 11a.m. to 8 p.m. Admission is free.


Araneta City holds Independence Day celebration

THIS June, Araneta City is throwing a grand celebration to mark the 126th anniversary of the country’s independence from colonial rule. Among the activities of the We Are Juan celebration is the Musika ni Juan concert at Gateway Mall 2 on June 12 featuring SB19’s leader and main rapper Pablo. Visitors to Ali Mall on the same day can listen to a marching band breathing new life to a few beloved classics. Meanwhile, visitors can catch the last day of the “Amorsolo Lego Art Exhibit” at Gateway Mall 1. On view are works by Amorsolo rendered in Lego cubes, conducted in partnership with the Pinoy Lego User Group (LUG). Also on June 12, Ali Mall hosts the bazaar Proudly Original Products of Quezon City, featuring a wide array of trinkets, accessories, and food items that are 100% Pinoy-made. There is also an online contest on Araw ng Kalayaan. Those who are named after a hero or share the same name with one of the country’s notable forebearers have a chance to win a prize through Araneta City’s digital promo. Check out the post on Araneta City’s Facebook page and follow the instructions for a chance to be one of 70 winners of an Independence Day surprise. To know more about the latest promos, activities, and events at Araneta City, visit www.aranetacity.com.


Intramuros Tourist Center opens

THE NEW Intramuros Tourist Center was inaugurated on June 9 by First Lady Louise Araneta-Marcos. It is located inside the rebuilt San Ignacio Church inside Intramuros at the corner of Arzobispo and Anda Streets. Reconstruction of the church, which was destroyed during World War II along with most of the walled city, started in 2013, with the completed Mission House and partially rebuilt church used as venues for the Manila Biennale in 2018. The Mission House is now the home of the ecclesiastical collection of the Intramuros Administration. The newly opened Intramuros Tourist Center is funded by the Office of the President in coordination with the Department of Tourism (DoT) and other government agencies. The center includes a museum on the history of the area, from precolonial times to the Spanish colonial era when Intramuros was the seat of government, to the destruction brought by World War II, and onward to the current and future development of this Walled City. The tourist center will be manned by DoT-trained tour guides and tourism front liners. Tourists can access guided tour information, details about ongoing events and activities within Intramuros, and services provided by the Intramuros Administration. The tourist center will soon form part of the Hop-On-Hop-Off Manila Cultural Hub. It will open its doors to the public for free starting June 12, the country’s 126th Independence Day, and will be open daily from 9 a.m. to 6 p.m.


K-culture events in June and July

THE KOREAN Cultural Center in the Philippines (KCC) has a series of K-culture events lined up for June and July. From traditional performances and webtoon exhibits to K-drama concerts and K-pop festivities, there’s something for every K-culture enthusiast. The Cebu leg of the K-Culture Next Door: 2024 Korean Festival will be held on June 15 and 16 at the SM Seaside City Cebu, kicking off with an opening ceremony at 2 p.m. at the Sky Hall, with festivities running from 10 a.m. to 8 p.m. at the Mountain Wing Atrium. Highlights include performances by the Jeju Special Self-Governing Provincial Dance Company, the K-Tigers fusion taekwondo team, and the University of Cebu Dance Company. Explore the evolving world of Korean webtoons at the K-Comics World Tour, running from June 21 to Aug. 10 at the Groundspace Gallery, The M in BGC, Taguig. Entrance is free, and no registration is required. A Webtoon workshop will be held on the opening date, June 21. Interested participants may register until June 14 through: bit.ly/KComicsWorkshop. Then there is the OST Symphony: K-drama in Concert featuring the Philippine Philharmonic Orchestra” on June 29, 2p.m., at the Metropolitan Theater, Manila. Reserve seats at bit.ly/ostsymphony. The July events include the KPOP Academy, which interested applicants can register for until June 13 via bit.ly/KPOPAcademy; Everyone’s KPOP: Manila on July 6 at the Mega Fashion Hall, SM Megamall, which is dedicated to all K-pop and non-K-pop fans, featuring the annual Kpop Cover Dance Festival, and surprise performances.


Instituto Cervantes brings writer Garcia Jambrina to PHL

AFTER meeting Filipino novelist Dean Francis Alfaro on June 11 at the UP Vargas Museum, to explore how the fusion of genres like science fiction, fantasy, and history can craft literature that captivates readers and delves into the human condition, as part of BENENGELI 2024, a literature festival spanning 12 cities worldwide, renowned Spanish author Luis García Jambrina will have a second activity in Manila. As part of the collateral activities of the exhibition Nebrija en Filipinas, on June 13, at Instituto Cervantes, the Spanish writer will give a talk on his novel El manuscrito de niebla, a work that traces the steps of the humanist Antonio de Nebrija, fighter against barbarism. Register for free at https://forms.office.com/e/e1qCrctaCW. These events are organized by Instituto Cervantes de Manila, in collaboration with the Embassy of Spain in the Philippines and the University of the Philippines, with the support of PTC-Philippine Transmarine Carriers. For more information, visit Instituto Cervantes’ website (http://manila.cervantes.es) or its Facebook page, www.facebook.com/InstitutoCervantesManila.


Decipher abstractions at The M

THE LECTURE series M Conversations presents “Deciphering Meaning in Abstraction” which will see Dominic Mangila, an artist and academic, discussing works from The M’s ongoing exhibit, “Wild: Women Abstractionists on Nature.” The talk will be held on June 15, 2 p.m, at the 2nd floor foyer of the Metropolitan Museum of Manila in the Mariano K. Tan Centre, 30th St., BGC, Taguig. Attendance to the talk is free with an all-access pass entry ticket. For inquiries e-mail visits@metropolitanmuseummanila.org.

Philippine MSMEs may benefit from AI-fueled cybersecurity automation

WANGXINA-FREEPIK

FILIPINO micro, small and medium enterprises (MSMEs) should use automated cybersecurity solutions powered by artificial intelligence (AI) amid rising cyber threats, according to Palo Alto Networks, Inc.

Small businesses could also save money by availing themselves of consolidated solutions for enterprise-grade security instead of buying several apps on firewalls and endpoints, Palo Alto Networks Country Manager Oscar Visaya told BusinessWorld on the sidelines of a cybersecurity event on May 29.

“You will just have a single pane of glass for your endpoint, network security or for your Zero Trust Network Access, for all the things that you need to safeguard your business,” he said.

Automated cybersecurity replaces manual tasks done by cyber defenders by using AI to alert the company about customer issues, Mr. Visaya said.

And instead of hiring more workers, MSMEs can use managed service, a third-party provider that delivers solutions to be paid monthly.

But AI is not a silver bullet that can fix cybersecurity problems, said Steven Scheurmann, Palo Alto Networks regional vice-president of ASEAN.

“You have got to have a team that still runs and operates it,” he told BusinessWorld on June 5. “When you talk about SMEs in the Philippine market, the way that we deliver AI cyber solutions is through our partner ecosystem.”

He added that Palo Alto uses precision AI in its portfolio to counter cyberattacks.

Meanwhile, Kaspersky Presales Manager Eden M. Carreon said MSMEs don’t need the most advanced tools given their limited budget, but should practice basic cyber hygiene.

They should train their employees to be “human firewalls,” he said, as the cybersecurity firm said online attacks targeting Philippine companies more than tripled to 1.69 million last year from 2022.

Kaspersky earlier highlighted the urgency of boosting cyber defenses against web threats that can reverse the benefits of digitalization.

The global cybersecurity company said web threats detected and blocked among Southeast Asian companies only increased by 0.03% to 13.34 million.

These numbers were calculated using Kaspersky’s business-to-business products installed in companies of various sizes, it said.

Cybercriminals launched an average of 36,552 daily online attacks targeting businesses in the region last year, Kaspersky said, adding that the growth in the region’s digital economies has opened opportunities for both people and companies.

Kaspersky said local businesses should prioritize strengthening their cyber defenses against threats lurking online that can hamper their efforts to harness the benefits of digitalization.

Singaporean companies faced 86% more web threats last year at 1.65 million, while Thai companies had a 24% jump to 1.53 million, it said.

On the other hand, web threats on Indonesian companies fell by 23% to 4.97 million, while Malaysian businesses had 15% fewer attacks at 1.54 million. Vietnamese companies had 21% fewer attacks at 1.96 million. — ARAI

The challenging dynamics of our Independence

A MAN sells Philippine flags of various sizes to motorists plying the southbound lane of EDSA in Quezon City, few days before the celebration of the 126th Philippine Independence on June 12. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

Today’s commemoration of Independence Day will no doubt be the occasion of a recounting of our forebears’ valiant efforts to gain freedom at various points in our history.

There will be a retelling of the measures, big and small, that they took to assert our independence and champion the welfare of our fellowmen. They first went against colonizers, and then fellow Filipinos with vested interests, and, of late, social ills and other banes of modern life.

Indeed, we owe the freedoms we now enjoy — even take for granted — to the known and unknown heroes who stood up for their principles. They risked many things including their own lives.

But we know too well that independence is not an absolute, terminal state. Even though it has been achieved, there is no guarantee that it will not be threatened or cannot be lost again. Often, once the euphoria over its achievement subsides, the constant threats against that precious independence show themselves in ways that are either insidious or menacing. Thus, preserving independence is now a duty that belongs to the current generation who must do everything they can to protect it.

This resonates loud and clear today, given what the Philippines is facing in the West Philippine Sea. China, our giant neighbor to the West, has been unrelenting in its aggressive acts, making a mockery of international law and, in fact, basic decency, in the conduct of its affairs against us.

President Ferdinand Marcos, Jr. stated at the recent Shangri-La Dialogue in Singapore: “Our efforts stand in stark contrast to assertive actions that aim to propagate excessive and baseless claims through force, intimidation, and deception. In the West Philippine Sea, we are on the frontlines of efforts to assert the integrity of the UNCLOS (United Nations Convention on the Law of the Sea) as a Constitution of the Oceans. We have defined our territory and maritime zones in a manner befitting a responsible and law-abiding member of the international community.”

And indeed, our government has made an appropriate response given this threat to our sovereignty and territorial integrity. We have adopted the Comprehensive Archipelagic Defense Concept (CADC) that marks a shift in our defense strategy, from internal security to the enhancement of our external defense capabilities.

According to Defense Secretary Gilberto Teodoro, the shift is important because adopting this strategy is about “developing the country’s capability to protect and secure our entire territory and Exclusive Economic Zone (EEZ) in order to ensure that our people, and all the generations of Filipinos to come, shall freely reap and enjoy the bounties of the natural resources that are rightfully ours within our domain.”

At a recent forum organized by the Stratbase Institute, in cooperation with the Australian Embassy, Professor Renato De Castro, Trustee and Program Convenor, also talked about the CADC. He said that its long-term goal is to guarantee the unimpeded and peaceful exploration and exploitation of all the natural resources within the country’s EEZ for Philippine nationals, corporations, and others authorized by the Philippine government.

The events taking place in the West Philippine Sea affect both maritime security and economic security, two concepts that cannot be separated from each other because they are intimately linked. It is an issue of maritime security because the locality involved falls right within the Philippines’ exclusive zone. It is thus crystal clear that China is intruding into Philippine space that has been established and affirmed by our 2016 victory before the Permanent Court of Arbitration.

At the same time, economic security is also being threatened. Just recently, China declared a unilateral fishing ban in the South China Sea, which includes the West Philippine Sea. The ban is supposed to last four months, from May 1 to Sept. 16. This seriously affects Filipinos who directly source their livelihood from the resources within our EEZ. These waters serve as fishing grounds that feed the families of Filipinos in coastal areas every day. Further, the West Philippine Sea holds a big promise for energy security because it is believed to contain natural gas and oil reserves, which can power the economy. And then, scientists have found substantial damage to our coral reefs and other marine resources. Lastly, as a maritime route, the West Philippine Sea facilitates trade and commerce not only for the Philippines but for the entire area.

Economic security is a cornerstone of well-being, providing people with some degree of predictability to plan and invest in their future and that of their children, according to the United Nations. In this sense, such threats to Philippine sovereignty and economy are a major cause for alarm, because they compromise not only the present but the future, and not only of the marine environment but the people as well.

It is here that our collaboration with like-minded countries becomes crucial. The Philippines cannot achieve an apt response to such threats alone. Enhanced cooperation with nations who share our values, such as Australia, is crucial. These partnerships are strategically necessary, especially in times when important tenets of international law like sovereignty and territorial integrity are being blatantly disregarded.

Acting Deputy Ambassador Johanna Stratton of the Australian Embassy in the Philippines highlighted this as well. During the forum, she said “the Philippines knows more than most that adherence to UNCLOS is fundamental to a secure and stable maritime domain. It provides a comprehensive legal framework for all activities in the oceans and seas.”

As we celebrate Independence Day today, may we remember that freedom and independence are not just vague concepts or big words. They have actual tangible expressions. True freedom means having the right to fully utilize resources that are rightfully ours.

Maritime and economic security, and the elimination of threats to our independence, are ongoing struggles that only get more complex and complicated every day. This is a challenge that we must not give up on.

 

Victor Andres  “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

UBX partners with MediCard to streamline payment collection

UNION BANK of the Philippines, Inc.’s (UnionBank)  open finance platform UBX has partnered with MediCard Philippines, Inc. (MediCard) for payment collection, it said on Tuesday.

Under the partnership, MediCard will use UBX’s end-to-end payment gateway BUx and the transact-now-pay-later solution Splix to provide members with flexible payment options, UBX said in a statement.

MediCard members will be able to pay for their coverage via online banking, credit or debit cards, e-wallets, and over-the-counter channels. BUx has a network of over 50,000 touchpoints, including pawnshops, department stores, and rural banks.

Meanwhile, Splix will let members pay through an insure now, pay later mechanism, allowing them to manage their finances better, UBX said.

The partnership aims to make acquiring health coverage products more convenient and enhance customer experience, it added.

“Our collaboration with MediCard represents a significant milestone in our journey of including everyone into the financial landscape. By leveraging each of our strengths — UBX’s innovative open finance solutions and MediCard’s wide network of healthcare partners and affiliates — we are helping make healthcare more accessible and less intimidating to Filipinos,” UBX President John Januszczak said.

“Our strategic alliance with UBX allows us to accelerate our goal of bridging the healthcare gap in the Philippines. With UBX’s innovative digital solutions and our extensive HMO (Health Maintenance Organization) expertise, we are poised to make significant strides in making healthcare more accessible, convenient, and affordable for all Filipinos,” MediCard Chief Executive Officer Julian Mengual said.

UBX’s parent UnionBank’s attributable net income dropped by 43.84% year on year to P1.98 billion in the first quarter due to one-time integration costs related to its acquisition of Citigroup, Inc.’s consumer business in the Philippines.

Meanwhile, MediCard recorded a net loss of P235.93 million in the first quarter, data from the Insurance Commission showed. — AMCS

Philippine Merchandise Trade Performance (April 2024)

THE PHILIPPINES’ trade deficit narrowed year on year in April but posted the widest level in five months, as exports and imports posted double-digit growth, the statistics agency said on Tuesday. Read the full story.

Philippine Merchandise Trade Performance (April 2024)

CA extends freeze order on MFT Group bank accounts

THE Securities and Exchange Commission (SEC) said the freeze order on the bank, investment, and insurance accounts of Maria Francesca Tan (MFT) Group of Companies, Inc. has been extended by the Court of Appeals (CA) for six months.

 The CA promulgated a resolution on May 30 granting the extension of the freeze order over the MFT Group’s accounts until Nov. 9, the SEC said in an e-mailed statement on Tuesday.

The freeze order on the MFT Group’s accounts, previously covering a 20-day period, was initially issued on May 13. It covers 138 bank accounts, four securities accounts, and four insurance accounts.

 “The CA noted that the freeze order will give the government the necessary time to prepare its case and file the appropriate charges without worrying about the possible dissipation of the assets that could be related to suspected illegal activities,” the SEC said.

 The freeze order was issued after the MFT Group was found to be soliciting investments from the public without the necessary licenses from the SEC.

SEC investigations showed that the MFT Group promised guaranteed returns ranging from 12% to 18% of the amount invested, which was considered as interest income.

BusinessWorld sought comment from the MFT Group regarding the extended freeze order but has yet to receive a response as of the deadline. — Revin Mikhael D. Ochave

See British theater on film

THE CULTURAL Center of the Philippines’ National Theatre Live (CCP NTL) returns with a new lineup of world-class stage plays filmed live from Britain’s stages.

Through the partnership of the CCP with National Theatre Live and Ayala Malls, the second season of CCP NTL will premiere at Ayala Malls Cinemas in Greenbelt, Makati, at Vertis North in Quezon City, and at the Ayala Center in Cebu from June 25 to May 27. The award-winning plays Vanya, Dear England, The Motive and Cue, and Nye will grace the big screens in the Philippines. Meanwhile, crowd favorites from the first season — Fleabag, King Lear, Frankenstein, and Hamlet — will make their comeback.

Vanya is a one-man adaptation featuring Andrew Scott which will premiering on June 25 at the Ayala Malls Cinemas in Greenbelt, Makati.

Returning on June 25 at Ayala Vertis North and Ayala Center Cebu is Fleabag, a rip-roaring look at a woman’s life. Written and performed by Phoebe Waller-Bridge and directed by Vicky Jones, the hilarious, award-winning play that inspired the BBC’s hit TV series with the same title was filmed live on stage in London’s West End in 2019.

On July 30, James Graham’s Dear England arrives at the Ayala Malls Cinemas in Greenbelt, Makati. With the worst track record for penalties in the world, Gareth Southgate knows he needs to open his mind and face up to the years of hurt, to take the team and country back to the promised land.

The contemporary retelling of Shakespeare’s tender, violent, moving and shocking play King Lear will be re-screened on July 30 at Ayala Vertis North and Ayala Center Cebu. Considered by many to be the greatest tragedy ever written, King Lear sees two aging fathers — one a King and another, his courtier — reject the children who truly love them. Their blindness unleashes a tornado of pitiless ambition and treachery, as family and state are plunged into a violent power struggle with bitter ends. The play is directed by Jonathan Munby and stars Sir Ian McKellen.

In Jack Thorne’s The Motive and Cue, audiences are offered a glimpse into the politics of a rehearsal room and the relationship between art and celebrity. Coming to Ayala Malls Cinemas in Greenbelt, Makati on Aug. 27, the play revolves around Richard Burton, then newly married to Elizabeth Taylor, who is going to play the title role in an experimental new Broadway production of Hamlet under John Gielgud’s exacting direction. But as rehearsals progress, two ages of theater collide and the collaboration between actor and director soon threatens to unravel.

Theater lovers at Ayala Vertis North and Ayala Center Cebu will have the chance to see Vanya on Aug. 27.

Directed by Academy Award-winner Danny Boyle, with adaptation by Nick Dear, Frankenstein will return to the Ayala Malls Cinemas in Greenbelt, Makati on Sept. 24. The thrilling, deeply disturbing Mary Shelley classic tackles scientific responsibility, parental neglect, cognitive development and the nature of good and evil. Captured live on stage in 2011, the sold-out production stars Benedict Cumberbatch and Jonny Lee Miller, alternating between the roles of Victor Frankenstein and his creation. For the Sept. 24 scereening, Mr. Miller will be playing as the Creature.

The Motive and Cue will be shown at Ayala Vertis North and Ayala Center Cebu on Sept. 24.

Come Oct. 30, Fleabag will return to the Ayala Malls Cinemas in Greenbelt, Makati for the third time. Frankenstein, this time with Benedict Cumberbatch as the Creature, will premiere at Ayala Vertis North and Ayala Center Cebu on the same day.

Witness Nye’s mind-bending life journey on Nov. 26 at the Ayala Malls Cinemas in Greenbelt, Makati. In Tim Price’s opus, Aneurin “Nye” Bevan confronted death in the eye, as he recollects his deepest memories from his childhood to mining underground, and his fights with Churchill.

Benedict Cumberbatch plays the title role of yet another great Shakespearean tragedy, Hamlet, premiering on Nov. 26, at Ayala Vertis North and Ayala Center Cebu. The play is directed by Lyndsey Turner.

Closing the 2024 CCP NTL’s lineup, Hamlet will return to the Ayala Malls Cinemas in Greenbelt, Makati on Dec. 17. Dear England will premiere on the same day at Ayala Vertis North and Ayala Center Cebu.

Digitally filmed in high-definition quality, the NTL films their plays in front of live theater audiences, but optimized for the big screen and made accessible to theater fans across the globe.

All screenings will be at 6 p.m. The regular ticket price is ₱300 in Makati and Cebu, and ₱350 in Vertis North, while the special ticket price for students is ₱150. This new season also brings bundles and subscriptions for dedicated NTL fans. Groups can avail of the Barkada Pass for ₱1,200 which includes five tickets for the price of four, while students can avail of the Barkada Pass Student bundle at ₱600. Subscriptions for the full season cost ₱2,500 while the half season subscription is ₱1,500, allowing audiences 30% and 20% discounts respectively. Tickets can be purchased at sureseats.com.

Tech investors should want more than startup unicorns

ORIGINAL PHOTO BY PER LOOV-UNSPLASH

By Parmy Olson

IT’S BEEN A DECADE since the term “unicorn” was coined by Silicon Valley venture capitalist Aileen Lee to describe startups that reached a $1-billion valuation. The name quickly became coveted. Yet today, unicorns aren’t so rare. Having reached a peak in the heady, liquid days of 2021, the number of startup unicorns being created globally is now in decline, to 95 last year from 621 in 2021, according to market intelligence firm CB Insights, thanks in part to higher interest rates and greater scrutiny from investors.

In some ways, that has been a healthy correction. As the rise of generative AI threatens to create more froth in the market once again, though, investors should maintain their focus on startups that have strong fundamentals as well as long-term promise. Here’s a new name for firms that fit the bill: thoroughbreds.

These are companies bringing in at least $100 million in revenue annually, according to Saul Klein, founder of London venture capital firm LocalGlobe, who is pushing for a change in the investing lexicon. Startups that have at least $25 million in annual turnover are “colts,” he adds.

He isn’t the first to try and steer the conversation back toward more rational investing with a creature-related metaphor. Others have proposed dragons or centaurs, though Mr. Klein wants to avoid mythical beasts. “It’s not just about hope and promise, but hope and promise times fundamentals,” he says. The last few decades have shown that new tech can reshape industries and boast exponential growth, hence why venture capital has become one of the best-performing asset classes over the past decade, according to Morgan Stanley.

But the “unicorn” label has spun out of control, with startups sometimes resorting to desperate measures to achieve its coveted status as quickly as possible. Some would engage in multiple fundraising rounds over short periods to hit the magical $1-billion threshold, while others pivoted to trends like blockchain or AI to capitalize on market hype. WeWork famously touted unrealistic growth targets as its valuation soared past “decacorn.”

Europe is a good place to shift the focus to revenue thanks to its transparency requirements. The region’s startups still lag Silicon Valley in their ability to acquire higher, later-stage funding, making it harder to scale up to become the next Microsoft Corp. or Alphabet, Inc. But local VC firms already prioritize sustainable business models over valuation metrics, in part because they can see the numbers. Unlike their US counterparts, European startups are subject to more stringent regulations requiring financial disclosures.

Although it’s almost impossible to find out revenue figures for US companies like San Francisco-based Scale.ai (which just raised $1 billion at a $14-billion valuation) or its neighbor Anthropic (which is said to be worth between $15 billion and $20 billion), you can easily get them for any two-person private firm in the UK, since all registered businesses must file annual financial statements with Companies House, the government’s registrar.

Until now, European institutional investors have taken that approach too far, shying away from putting their money into new tech that held great promise. When the AI lab DeepMind was getting off the ground, its founders struggled to find backers who would put more than £30,000 ($38,000) into the enterprise and had to fly to Silicon Valley to get the millions they needed from the likes of Peter Thiel and Elon Musk instead. (Eventually, Google bought DeepMind for $650 million.)

It didn’t help that European investors were cajoled into doing their patriotic duty by “supporting” the local tech ecosystems — think French President Emmanuel Macron targeting 25 unicorns by 2025. “Investors were reasonably saying, ‘For what?’” says Mr. Klein. “These science projects? This is people’s retirement savings. We’re not charities.” To turn the tide, it might help for institutional investors to see the broad number of thoroughbreds across the country and the wider European region.

British investors, for one, are poised to make bigger bets now that its domestic pension providers — who manage assets worth about $3 trillion — have pledged to assign 5% of their default funds to “unlisted equities” by 2030, providing a boost to the country’s tech sector. They would do well to turn their attention to the 118 startups in the UK that are bringing in more than $100 million in revenue, according to market intelligence firm Dealroom.io.

Startups themselves should also resist unicorn envy. In the long run, success can become as mythical as the name. — Bloomberg Opinion

Tokyo’s government Tinder is actually a good idea

ROMEO A-UNSPLASH

THE TOKYO government’s plan to launch its own dating app has attracted mockery online and praise from Elon Musk (which these days often only increases the ridicule).

The announcement, which coincided with the release of latest fertility figures for 2023 that showed a record low, is intended to boost the number of marriages in the capital. In terms of fixing entrenched fertility trends, this idea might not be The One. But don’t swipe left just yet.

The world has at last awakened to the notion that when it comes to the fertility problem, Japan is not an outlier, but a forerunner. But its head start also makes clear that there’s precious little government policy or funding can do to reverse the underlying trend for fewer babies that is now becoming entrenched in almost every developed society. Official efforts seem best spent on the margins, helping those who want to get married or have children but lack the means or opportunity. That population can be significant. In Japan, marriages and childbirth are closely correlated; around two-thirds of women say being wedded is a pre-requisite to having kids, compared to more than 80% in some European countries who said the opposite, according to an international survey by the Nippon Foundation. One likely factor for the fall in the fertility rate in 2023 was the drop in marriages during the pandemic, as couples postponed plans to wed, or failed to meet at all. The rates of unmarried Japanese have been rising across every age group. More than 90% of women aged 30-34 were married in 1980, versus 65% now. A Tokyo survey found that two-thirds of those who weren’t married wanted to wed one day; but nearly 70% of people weren’t making any particular effort to find a partner, such as using dating apps.

Like other social woes, there’s a role for governments to help fix this. Of course, Japan has plenty of dating apps already, from the likes of Pairs or With, which aim to help people find long-term relationships, to the more familiar foreign-owned services aimed at flings, such as Tinder.

Governments don’t have the same conflict of interest as commercial dating apps, where a successful relationship removes you from the dating pool, eliminates you as a customer, and forces companies to spend more on at-tracting new users to replace you. That’s one reason the apps are losing steam, with the market cap of Tinder and Bumble-owner Match Group, Inc. (which also owns the operator of Japan’s Pairs) down more than 80% from its peak.

And while many outside the country expressed surprise that among the requirements for the official app were proof of salary and family registers, this is far from unusual. Other apps, such as Tokyo Calendar Date (a spin-off from a popular magazine promoting high-end lifestyles) in fact make such verification a USP, to help avoid scammers and other time-wasters.

Tokyo’s app is far from the first government involvement in the dating scene — it’s merely one for the digital age. For decades, local authorities across the country have been involved in promoting marriage, from running introductions to holding dating events. Ishikawa prefecture, located some 300 kilometers northwest of Tokyo, is one such example and says that to date it has paired 1,266 couples through its marriage promotion department. In many ways, the government is taking the once-common role of matchmaker. In the prewar era, arranged marriages known as o-miai were how most couples paired off. A go-between, or nakoudo, often a relative but sometimes just a neighborhood glad-hander, would review the backgrounds of eligible singles and make arrangements for meetups of likely matches and their families. The practice has been steadily falling out of popularity since the end of World War II, replaced by so-called marriages of love, where the partners choose each other. But that system is under threat, too: Workplaces were once the most common venues to meet potential future partners, but as elsewhere, a new era of social norms post-MeToo has made the office increasingly off-limits.

Can the government find a niche here? Authorities already operate side-by-side with the private sector in providing many public goods, with the Tokyo government both competing and complementing companies in providing bus and subway services or private and public education. From preschool to the grave, the government is deeply involved in your life. Should it not also be part of perhaps your biggest decision? Besides, the ¥300 million ($1.9 million) Tokyo will spend on its marriage support division this year, which includes the app, is but a fraction of its $3.6 billion total support for childbirth and child-rearing across the capital of 14 million people.

Whatever the outcome, it’s worth watching as awareness grows that falling fertility isn’t isolated to East Asian nations, and can’t simply be legislated away. Skepticism around Tokyo’s latest attempt to make more couples might be jus-tified — and let’s face it, it probably won’t work out. Then again, most relationships don’t. But they’re still worth trying.

 

BLOOMBERG OPINION