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Gov’t to borrow P630B from local market in Q3

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THE GOVERNMENT is looking to borrow P630 billion from the domestic market in the third quarter, the Bureau of the Treasury (BTr) said on Thursday.

The Treasury is targeting to raise P260 billion from Treasury bills (T-bills) and P370 billion via Treasury bonds (T-bonds) in the July-to-September period, it said in a notice on its website.

The borrowing plan for the third quarter is 7.69% higher than the P585-billion program for the second quarter.

The government raised just P498.207 billion this quarter, short of its plan.

For the third quarter, the Treasury will auction off more T-bonds with shorter tenors versus those seen in the April-to-June period, the notice showed, with the offer volumes for bonds with tenors above 10 years being smaller than those with shorter maturities. It will also offer bigger volumes of T-bills in its weekly auctions versus the previous quarter.

In July alone, the government is planning to borrow P215 billion, made up of P100 billion in T-bills and P115 billion in T-bonds.

The government will hold five auctions of T-bills next month and will look to raise P6.5 billion via the 91- and 182-day tenors at each offering. It will also offer P7 billion in 364-day T-bills weekly. Next month’s auctions will be held on July 1, 8, 15, 22 and 29.

Meanwhile, the BTr will look to raise P30 billion via T-bonds in three of its four auctions in July, namely via five-year bonds on July 2, seven-year papers on July 9, and 10-year debt on July 16. For its last bond auction next month, it is seeking to borrow P25 billion via the 20-year tenor on July 23.

In August, the government wants raise P220 billion from the domestic market, or P80 billion from T-bills and P140 billion via T-bonds.

Broken down, the BTr will offer P6.5 billion worth of 91-day and 182-day T-bills and P7 billion in 364-day papers at its auctions on Aug. 5, 12, 19, and 27.

For the long-term papers, the government will offer P30 billion each in three-year T-bonds on July 30, five-year debt on Aug. 6, and seven-year bonds on Aug. 13. Meanwhile, it will look to raise P25 billion apiece through 14-year bonds on Aug. 20 and from 20-year papers on Aug. 28.

Lastly, for September, the Treasury is planning to raise P195 billion from the domestic market, or P80 billion through T-bills and P115 billion via T-bonds.

The BTr has four T-bill auctions scheduled in September. It will offer P6.5 billion in 91-day and 182-day T-bills and P7 billion in 364-day T-bills at each of its offerings on Sept. 2, 9, 16, and 23.

As for the long-tenored T-bonds, the Treasury wants to raise P30 billion each from three-year bonds on Sept. 3, via five-year papers on Sept. 10, and from 10-year debt on Sept. 17. The BTr will also look to borrow P25 billion via 20-year bonds on Sept. 24.

The Treasury likely upsized its planned T-bill offers for next quarter amid expectations of lower rates in the near term, a trader said in a text message.

“Demand should be good, especially if the Bangko Sentral ng Pilipinas (BSP) reiterates its rate cut outlook,” the trader said, adding that rates could be steady to lower, also depending on the central bank’s stance.

The increase in T-bill supply is likely “for the purpose of further smoothening the local yield curve,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“Nonetheless, the schedule … probably points to a posture for looming rate cuts,” Mr. Asuncion likewise said.

The Monetary Board on Thursday kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting, as expected by all 15 analysts in a BusinessWorld poll.

BSP Governor Eli M. Remolona, Jr. on Thursday signaled a “less restrictive” policy stance if there is a sustained improvement in the inflation outlook, adding they are “somewhat more likely than before” to begin their easing cycle by their next meeting, which is on Aug. 15.

Mr. Remolona said they could cut rates by 25 basis points (bps) in the third quarter and another 25 bps in the fourth quarter for a total of 50 bps in easing for the year, depending on data,

The Monetary Board’s Aug. 15 review is its only meeting in the third quarter. Meanwhile, its last two reviews for the year, which will be held in the fourth quarter, are scheduled on Oct. 17 and Dec. 19.

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. — AMCS

DoLE 10-year master plan hopes to match training, employer needs

THE Department of Labor and Employment (DoLE) on Wednesday said the alignment of education and training programs with employer needs is needed to sustain the momentum of the government’s 10-year employment master plan.

Labor Secretary Bienvenido E. Laguesma presented the 10-year plan during the National Employment Summit, highlighting the four-point strategy of education and training upgrades youth upskilling, support for micro, small and medium enterprises (MSMEs), and strengthening social mechanisms.

“The first is to strengthen the alignment of education and training programs with industry requirements. The second is to expand employability programs in order to facilitate school-to-work and work-to-work transitions,” Mr. Laguesma said.

“The third is to reduce the regulatory burdens on MSMEs, and at the same time, ensure compliance with all labor standards. Last is to strengthen social protection mechanisms,  including measures for a just transition (to automation)  and the operationalization of the social protection framework,” he added.

Speaking at the same summit, President Ferdinand R. Marcos, Jr. reiterated the government’s goal of creating at least three million new jobs before he ends his term.

“In line with our priorities, the outcomes that we desire, and strategies stated in the Philippine Development Plan, the Philippine Labor and Employment Plan, the Strategic Investment Priority Plan, and the Workforce Development Plan, the Trabaho Para sa Bayan Plan will be one of the driving forces to help create at least three million new jobs by the year 2028,” he said.

He added that the government will provide upskilling and reskilling programs to enhance the competitiveness of the workforce here and overseas.

“The job of the government is to be able to bring you to the skill levels that are required so we can compete in the job markets, once again, here in the Philippines and also abroad. So, rest assured that this administration will continue to ensure the sustainability of jobs, upskilling, and reskilling of our workers to maintain the productivity and the edge of our labor force and our economy,” he said.

Mr. Marcos last year signed the Trabaho Para sa Bayan Act, establishing an inter-agency council to create a national ten-year employment roadmap to improve the Philippine workforce’s competitiveness.

On Thursday, Mr. Laguesma, Trade Secretary Alfredo E. Pascual, and Economic Planning Secretary Arsenio M. Balisacan signed the Employment Covenant, a component of the Trabaho Para sa Bayan law. — Chloe Mari A. Hufana

Philippine education: Creating something out of nothing?

PHILIPPINE STAR/MIGUEL DE GUZMAN

Conversation is essential when it is about cheap and reliable power, connectivity, and infrastructure, and always the flavor of any day, good governance. But unless we put education first in the list of priorities, we might be facing an existential problem. As Elizabeth King of the World Bank pointed out some 13 years ago during that year’s Education World Forum in London, “education is fundamental to development and growth.”

Education is a key component of human capital development, and it cuts across different sectors and concerns for possible constraints to economic growth. The human element is ever present.

It is the human mind that enables development achievements, from health advances and agricultural innovations to efficient public administration and growth of business. Obviously, the task of those who craft public policy is to unleash the potential of the human mind. As King stressed, “there is no better tool for doing so than education.”

But as early as 20 years before the London Education World Forum, several government officials and development partners from various countries had met to affirm the importance of education on both economic devel-opment and people’s lives. There was affirmation to the extent of declaring “Education for All” as a battle cry. But in subsequent years, while enrolment rose, learning levels remained disappointingly low and many seemed to have been left behind. The call was then transformed to “Learning for All.”

What is important and useful for the future is the knowledge and skill sets that young school children will acquire — not simply their school attendance — that will drive their own ability to land a job, increase their personal productivity, improve their health and well-being and their vital contribution to sustainable and inclusive economic growth.

However, in the case of the Philippines, it looks like the problem is becoming two-fold. The number of school enrollees is declining and the quality of education continues to deteriorate. Unless public policy is decisively overhauled to arrest, mitigate, and reverse their impact on the quality of our labor force, the effectiveness of our political leadership and administration, and the functional literacy of our electorate and the rest of civil society, we shall continue to lag our regional neighbors in many ways.

In September last year, the Philippine Institute for Development Studies (PIDS) reported that even as classes had started for a month, enrollees were still 1.9 million short of the Department of Education (DepEd) target of 28.8 million students for school year 2023-2024. DepEd data show a total enrollment of 26.9 million in public schools, private schools, and state and local universities and colleges. The previous year’s level was 28.4 million.

For the Alliance of Concerned Teachers, the reason is poverty. DepEd data seemed to confirm this. Enrollment rose only in the National Capital Region (NCR) while Western Visayas recorded the biggest drop of 230,000 enrollees. The Philippine Statistics Authority (PSA) had earlier reported that Western Visayas suffered from a poverty incidence of 13.8% in 2021 while the poverty incidence in the NCR was only 2.2%.

Aside from lack of resources to sustain their children’s schooling, poor families also expect their children to contribute to family income. There is a compelling reason for these children to be away from the classrooms.

Thus, PIDS summed up that school drop-out is a serious concern. Prematurely dropping out means a loss of potential productivity. Dropping out increases the cost of reaching the desired level of schooling among the popu-lation. Since the drop-out rate is highest for poor children, it means consigning them to a future low-income path.

The other problem with education in this country is the continued deterioration in its quality. A good take-off point here is the latest finding of the 27th Annual Global CEO Survey of professional services firm Pricewater-houseCoopers (PwC) conducted from October to November 2023. Some 54% of the CEOs of Philippine-based firms are worried about the viability of their business beyond the next 10 years unless they innovate the way they create, deliver, and capture value. The major obstacle cited by 71% of them was the lack of workforce skills. Some 69% are also concerned with the lack of technological capabilities in their companies.

It must be abundantly clear that education and skills training are at the heart of these major business concerns.

As we cited in our GlobalSource Partners report this week, a previous study conducted by several staff of the Bangko Sentral ng Pilipinas (“ASEAN-5 Countries: In Competition for FDI,” by Hazel Parcon-Santos, Maria Rica Amador, and Marie Edelweiss Romarate, 2021) indicated that in Southeast Asia, foreign investors look for good quality of human capital more than the cost of labor — in addition to a good credit rating, improved ease of doing business, and good public governance.

If we are to remain competitive in boosting investment and production in the Philippines, we need to start our intervention early. There is no other overriding reason for the urgency of public intervention than the Program for International Student Assessment (PISA) for 2022 student assessment worldwide. It showed the Philippines ranked only 77th out of 81 countries for 15-year-old learners. This means our young Filipino students possessed low proficiency in reading, mathematics, and science.

In mathematics, for instance, Filipino students scored only 355 points, significantly below the global average of 472 points. In reading, the Philippines’ score was only 347 points, still below the global average score of 476 points. In science, we managed to obtain 356 points compared to the world average of 485 points, low enough to put us in third to the last place.

The implications of these results cannot be swept under the rug.

Only 16% of our students managed to qualify for level 2 proficiency in numbers, significantly below the OECD (Organisation for Economic Co-operation and Development) average of 69%. This means that out of 10 Filipino students, less than two could “interpret and recognize, without direct instructions, how a simple situation can be represented mathematically.” In contrast, nearly nine out of 10 students in Singapore, Macao, Japan, Hong Kong, Taiwan, and Estonia could handle it.

This weak proficiency is also reflected in Filipino students’ performance in reading and science. Less than a quarter can extract the main idea from a text of medium length, and almost none of them can comprehend lengthy texts and deal with more abstract concepts. In science, less than a quarter of them could explain familiar scientific phenomena or draw conclusion based on available data. Almost none of them could apply their knowledge of and about science to a wider variety of situations including unfamiliar scientific phenomena.

It is therefore painful to hear that DepEd officials could only talk about a possible reallocation of confidential funds to its National Learning Recovery Program in reaction to this latest PISA finding last year. This is aimed at closing the so-called learning gaps and assisting K to 12 learners in all public elementary and secondary schools nationwide in achieving established learning standards. We definitely need more than this type of stop-gap measures. We should have started a couple of decades ago with correct instructional materials, more and more competent teachers and supervisors, stronger access to both hard and soft infrastructure, and even moral values instructions to our young students to break the perpetuation of corrupt values systems.

Congress should be aware that some DepEd reports indicate that the Philippines spends an average of only $11,030 per student compared with the average $102,612 per student in the other countries that participated in the PISA assessment. That is less than 11%, and no wonder the Filipinos’ scores were only a fraction of these high performing countries which knew how to invest in human capital.

How does one expect to establish a good trajectory of economic growth in the Philippines when the future members of its labor force are hardly literate, or even the ability of those who will be elected to public office to use science on various public issues is dismally low. It is difficult to imagine future legislators making laws without reading on and understanding research studies that could run into several hundred pages.

Equally important, the PISA for the first time tested students on how well they can use their imagination and creativity to produce and improve on ideas. Young Filipino students registered a mean score of 14 in this creative thinking assessment. This score is well below the OECD average of 33, putting the Philippines along with Albania, Uzbekistan, and Morocco as the lowest scorers. The top five countries were Singapore, Korea, Canada, Australia, and New Zealand. With a score of 41, average Singapore students can be matched by only 3% of all Filipino students.

The Philippines should start thinking about developing human capital with strong academic competencies and the ability to think critically and creatively, with constant retooling and reskilling interventions. This is one critical ingredient to addressing the various constraints to economic growth, and to producing a smart citizenry who would vote on merits and demand accountability in public service. As the American statesman who is on the one-dollar bill put it: “For the best return on your money, pour out your purse into your head.”

That way, the Philippines can stop dreaming about creating something out of nothing.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Harry Potter HBO TV series to be led by Succession alums

YOUTUBE.COM/@STREAMONMAX

LOS ANGELES — HBO announced on Wednesday that its upcoming Harry Potter television series will be led by Succession veterans Francesca Gardiner, as writer and showrunner, and Mark Mylod, as director of several episodes.

Both Ms. Gardiner and Mr. Mylod worked on the HBO series Succession about a dysfunctional family that runs a media empire, which won 19 Emmys. Ms. Gardiner was on the producing team and Mr. Mylod served as director and producer.

Ms. Gardiner is also known for her work on the HBO fantasy show His Dark Materials while Mr. Mylod directed episodes of Game of Thrones and the upcoming second season of The Last of Us.

HBO describes the Harry Potter series, which has not yet been officially titled, as “a faithful adaptation of the beloved Harry Potter book series by author and executive producer J.K. Rowling.”

British author Ms. Rowling said on X on Wednesday that she had high hopes for the series.

“I’m truly thrilled to announce our director and writer, both of whom I interviewed as part of the production team,” Ms. Rowling said.

“Both have a genuine passion for #HarryPotter, and having read Francesca’s pilot script and heard Mark’s vision, I’m certain the TV show will more than live up to expectations,” she added.

HBO said “each season will bring Harry Potter and these incredible adventures to new audiences around the world, while the original, classic and cherished films will remain at the core of the franchise and available to watch globally.”

Warner Bros. Discovery announced it was making the new series about the boy wizard last year as part of its plans for its Max streaming service, which combines HBO Max with unscripted programming from Discovery.

The seven Harry Potter books have sold more than 600 million copies worldwide. They were adapted into blockbuster movies starring Daniel Radcliffe that grossed $7.7 billion globally from 2001 to 2011. — Reuters

Considerations in choosing a fitting HMO partner for your organization

Photo by pch.vector on Freepik

Health maintenance organizations (HMOs) can be trusted and reliable partners for any business if they can readily address employees’ healthcare needs and adequately meet them during medical emergencies.

Choosing one partner among several HMOs in the market is a crucial decision to make; thus it requires thorough deliberation on what an HMO can offer, whether these will meet at least most of what employees need for their health and well-being, and whether these will bring the best value possible for an organization’s budget.

In comparing different HMOs and selecting that plan to suit the workforce, several considerations are worth keeping in mind, beginning with the needs of employees. As health needs vary for every individual, it is important to select a plan that will suit them as comprehensively as possible.

“Different age groups have varying health needs. Younger employees may prioritize reproductive health, mental health, and preventive care, whereas older employees might need more comprehensive coverage for chronic conditions and specialist care. Tailoring health plans to these needs ensures all employees benefit,” Jake Jorgovan, a business-to-business growth expert and founder of consultancy Alpha Apex Group, wrote in an article published on his website.

“Employees with families may require plans that offer better pediatric care, maternity benefits, and family coverage options. Single employees might prefer plans with lower premiums and essential health benefits,” he added.

Mr. Jorgovan suggests employers to uncover the specific health needs of their workforce through demographic analysis.

“We recommend conducting a detailed demographic analysis of your workforce to identify specific health needs and preferences,” he wrote. “That way, you can select health insurance options that comply with legal requirements and maximize employee satisfaction and health outcomes.”

“You should find out what package benefits are a priority for your employees. Are there more mothers on the team? Maybe they would need labor fund assistance. What about professionals with existing comorbidities?” online employment marketplace SEEK, which operates Jobstreet in the Philippines, advised in an article published on its website.

With employees’ demographics as a guide, employers can proceed to other considerations, such as the coverage and flexibility of a plan.

“[E]mployees have diverse medical needs based on their health conditions, lifestyles, and family responsibilities. Flexible plans can cater to these varying requirements, ensuring everyone can access necessary services,” Mr. Jorgovan highlighted.

Among the factors under a plan’s coverage that should be highly considered is pre-existing conditions (PECs).

“All illnesses [or] medical conditions present before availing of the HMO will not be covered unless specifically included in the contract, so be sure to confirm that PECs are included in the package,” Philippine HMO and insurance brokerage firm Pascual Brokers Co. explained in an article published on their website.

The firm also recommends employers to ask if the health plan includes an annual physical exam, other medical tests, as well as dental coverage and vision care.

The network of providers and its accessibility to employees is another critical consideration for an HMO plan.

“The primary reason for getting an HMO is to provide a sense of security to your employees that any time there’s a medical emergency or sickness, they don’t need to stress over how to fund their medical expenses,” Pascual Brokers pointed out. “Hence, it is highly important to choose an HMO provider that has a wide network of hospitals, clinics, and doctors nationwide.”

An expansive and accessible provider network can also heighten the chances of employees continuously receiving care from their preferred services and medical professionals.

“Employees with existing healthcare providers or ongoing treatment plans must know they can continue seeing their current doctors without interruption or additional costs,” Mr. Jorgovan noted.

Another consideration worth taking are a plan’s wellness and preventive care benefits, which could contribute to the health and productivity of employees. Benefits employers can check out include preventive care (i.e., early detection of diseases through routine screenings and checkups), chronic disease management programs, as well as mental health support programs.

With all these considerations factored in, organizations must nevertheless determine whether an HMO plan is good value for their money.

“List down all the benefits you can get and even the cons of the HMO being offered to you, and then compare that to the amount you are paying,” Pascual Brokers suggested. “It would be best if you also considered the Maximum Benefit Limit (MBL) or the consumable limit one can use per year because once you go over your MBL, the extra cost will be shouldered by you or your employees.”

These considerations will be handy not just in choosing an HMO partner but also in assessing later on whether a healthcare plan serves employees well, especially as employees’ healthcare coverage needs and providers’ offerings will likely change over time.

“Continually review coverage performance and cost in addition to employee satisfaction so you can keep on top of your employees’ needs and keep offering cost-effective healthcare coverage,” online recruiting company Monster Worldwide wrote on its website. “By keeping track of and evaluating your offerings and benefits on a regular basis, your team will be able to adjust and improve upon your plan as needed.”

Next-gen gaming platform CRETA sees opportunities in PHL

NEXT-GENERATION gaming entertainment platform CRETA announced on Thursday that its token is scheduled to debut on the local cryptocurrency exchange Coins.ph on July 8.

Ray Eiichiro Nakazato, chief creative officer of CRETA, made the announcement during the platform’s launch event in Taguig City, saying that it is necessary to be listed on “a major crypto exchange in the Philippines.”

“CRETA token is a utility token, so all the services we provide within the CRETA platform, you’re going to have to use CRETA token. It is a utility token within the CRETA ecosystem,” he said.

Mr. Nakazato also said that the CRETA token will also be listed on the Philippine Digital Asset Exchange platform, although he did not specify a date.

Officially launched on Thursday, CRETA offers a gaming experience on a decentralized metaverse platform where both gamers and professional game studios can provide Web3 games and new gaming services.

CRETA, headquartered in Dubai, integrates Share to Earn, blending user video sharing platforms with Play to Earn and Create to Earn functionalities.

CRETA also uses blockchain technology called Locus Chain, ensuring that the platform is cost-effective and sustainable. The platform also comes with a proprietary game creation engine that allows users to develop their own games, with the freedom to publish and distribute their creations as non-fungible tokens.

Mr. Nakazato said that CRETA chose the Philippines for the launch since it is an “emerging market.”

“For emerging markets like the Philippines, people and industry are more open to new ideas and new systems. We can try out a lot of new things here. We decided to launch beta testing in Southeast Asia first, then get feedback from users before we go into the mature markets,” he said. — Revin Mikhael D. Ochave

Japan issues fresh warnings amid the yen’s sharp decline

A Japan Yen note is seen in this illustration photo taken June 1, 2017. — REUTERS

TOKYO — Japanese authorities will take necessary actions on currencies, Finance Minister Shunichi Suzuki said on Thursday, signaling readiness to intervene in the exchange-rate market after the yen’s slide to a fresh 38-year low against the dollar.

“It’s desirable for exchange rates to move stably. Rapid, one-sided moves are undesirable. In particular, we’re deeply concerned about the effect on the economy,” Mr. Suzuki told reporters.

“We are watching moves with a high sense of urgency, analyzing the factors behind the moves, and will take necessary actions,” he said.

Chief Cabinet Secretary Yoshimasa Hayashi also told a news conference on Thursday that Tokyo will take “appropriate” action against excessive currency moves. He declined to comment on yen levels and whether authorities would intervene.

The yen stood at 160.45 per dollar in Asia on Thursday, remaining a fraction away from the 38-year low of 160.88 hit overnight on Wednesday.

Japanese authorities are facing renewed pressure to combat sharp declines in the yen, which has fallen 12% so far this year against the dollar as traders focus on the wide interest rate divergence between Japan and the United States.

The yen’s fast-pitch decline below the key 160-to-the-dollar level is heightening market alarm over the chance of imminent yen-buying intervention.

“At this point, authorities are probably starting to worry not just about the speed but the level,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said in a research note. “Unless they intervene, there’s a risk the yen will slide toward 162.”

But analysts doubt whether jawboning, and even intervention, can reverse the weak-yen tide that is driven mostly by uncertainty over how soon the US Federal Reserve will start cutting interest rates.

The Bank of Japan has dropped signals of an imminent interest rate hike, though any increase in the current near-zero short-term policy target will still keep Japan’s borrowing costs very low. Its next policy meeting will be held on July 30-31.

Tokyo spent 9.8 trillion yen ($61 billion) intervening in the foreign exchange market at the end of April and early May, after the Japanese currency hit a 34-year low of 160.245 per dollar on April 29. — Reuters

The cost of climate change is higher than you think

MATT PALMER-UNSPLASH

The world’s climate leaders need better data

IT ISN’T HARD to understand that global warming is already changing how we live. In India’s capital, New Delhi, this summer has been so hot — above 40° Celsius (104° Fahrenheit) even at night — that people are gasping, the tap water is scalding, and the walls of their homes emit heat like radiators. The Saudi Arabian authorities said that 1,300 pilgrims have already died on this year’s Hajj. Players at the European soccer championships are collapsing due to exhaustion.

And yet economists — clearly able to keep cool heads when everybody else is losing theirs — are in the middle of a fresh debate about the real costs of climate change. A new working paper from two academics at Harvard and Northwestern, and published by the National Bureau of Economic Research, argues that the macroeconomic damage from climate change might be as much as six times higher than previously estimated.

Their model predicts that a single degree increase “in global mean temperatures leads to a gradual decline in world GDP that peaks at 12% after six years and does not fully mean-revert even 10 years after the shock.” They point out that this makes unilateral climate action worth it for countries like the US; that argument must surely also hold countries that are poorer but far more exposed to climate change, such as India. Possible to add a couple more countries here? The paper has set off a storm of furious criticism, and not just from economists. The climate scientist John Kennedy argues that its methodology may be flawed. He isn’t sure, for example, that we can easily extrapolate from the historical record of 0.3-degree shocks to global temperature to the larger, one-degree changes associated with climate change.

It’s clear that global warming is already having a malign effect on human health and livelihoods. We just need more clarity on how much.

Discussion of the real costs of climate change, to human welfare and to national economies, have been going on for decades. But we no longer need such estimates to make the case that it is real, and a problem. Instead, we need them as inputs into policymaking — similar to employment or price data.

Policymakers are still short of objective, sector-specific and precise estimates of current and possible future costs. That shortage is a growing problem — because climate policy is beginning to bite. Billions of taxpayer dollars are being directed to sectors that promise to curb emissions; consumers are paying more for carbon-intensive goods and services; and pressure to follow a net zero strategy has complicated decisions for companies and institutional investors.

These should all count as successes in the fight against climate change. When money moves, however, people begin to ask pointed questions. It isn’t just various Republican politicians attacking “woke capital” to get in the headlines. Serious macroeconomic decision-makers, accustomed to evidence-based policy, are beginning to ask exactly what global warming’s costs and benefits are for their particular countries. India’s chief economic adviser, for example, asked earlier this year if we were irrationally scared of the health effects of global warming. It is true that we in India are more exposed to heat stress than most. But, he pointed out, large-scale studies suggest that far more people die in India as a consequence of “moderate cold” than from extreme heat. Delhi’s temperature might stay above 40 degrees for weeks on end, with all the negative effects on public health and economic activity that entails; but would other Indians actually live longer if average temperatures rose? Do we have real evidence for the aggregate effect of higher temperatures on mortality in India and the rest of the developing world? These are real questions that deserve real answers. But the data we currently have are insufficient. And that lack of data might lead to erroneous conclusions. Some scholars in India have noted that those most exposed to heat stress are manual laborers, construction workers and farmers — marginalized groups whose illnesses and deaths the country’s public health system might not properly record. It’s vital that we put more resources into identifying and analyzing the effects of warmer temperatures. Some efforts have already begun: Last year, the World Health Organization released a framework to quantify the eco-nomic value of the health outcomes of climate-related investments. Countries like India must also begin to quantify the many indirect effects of climate change on their macroeconomic fundamentals: from greater variability in farm output to less productive physical investments. We can’t make evidence-based policy for the greatest global problem of our time without more high-quality data.

BLOOMBERG OPINION

Apple supplier Foxconn rejects married women for India jobs

REUTERS

SRIPERUMBUDUR, India — The two women standing near the entrance to the iPhone factory in southern India were upset.

Parvathi and Janaki, sisters in their 20s, had come to the plant, run by major Apple supplier Foxconn, for interviews in March 2023 after seeing job ads on WhatsApp. But they had been turned away at the main gate by a security officer who stopped them and asked: “Are you married?”

“We didn’t get the jobs as we both are married,” Parvathi later said in an interview at her village shanty. “Even the auto-rickshaw driver who took us from the bus stand to the Foxconn facility told us they wouldn’t take married women,” she added. “We thought we would still give it a shot.”

A Reuters investigation has found that Foxconn has systematically excluded married women from jobs at its main India iPhone assembly plant, on the grounds they have more family responsibilities than their unmarried counterparts.

S. Paul, a former human-resources executive at Foxconn India, said the company’s executives verbally convey the recruitment rules to its Indian hiring agencies, which Foxconn tasks with scouting for candidates, bringing them in for interviews and employing them.

Foxconn typically doesn’t hire married women because of “cultural issues” and societal pressures, said Paul, who said he left the company in August 2023 for a better-paying role at a consulting firm. The company’s view was that there were “many issues post-marriage,” Paul added. Among them: Women “have babies after marriage.” 

“Risk factors increase when you hire married women,” he said.

Paul’s account was corroborated by 17 employees from more than a dozen Foxconn hiring agencies in India, and four current and former Foxconn human-resources executives. Twelve of these sources spoke on condition of anonymity.

The agents and the Foxconn HR sources cited family duties, pregnancy and higher absenteeism as reasons why Foxconn did not hire married women at the plant, located at Sriperumbudur, near the city of Chennai. Many of these people also said jewelry worn by married Hindu women could interfere with production.

The ban isn’t absolute. Three former Foxconn HR executives told Reuters that the Taiwan-headquartered manufacturer relaxes the practice of not hiring married women during high-production periods when it sometimes faces labor shortages. In some cases, hiring agencies help female candidates conceal their marital status to secure jobs, Reuters found.

In response to questions from Reuters, Apple and Foxconn acknowledged lapses in hiring practices in 2022 and said they had worked to address the issues. All the discriminatory practices documented by Reuters at the Sriperumbudur plant, however, took place in 2023 and 2024. The companies didn’t address those instances. They also didn’t specify whether any of the lapses in 2022 related to the hiring of married women.

While Indian law doesn’t bar companies from discriminating in hiring based on marital status, Apple’s and Foxconn’s policies prohibit such practice in their supply chains.

Apple told Reuters it upholds the “highest supply chain standards in the industry,” and noted that Foxconn employs some married women in India.

“When concerns about hiring practices were first raised in 2022, we immediately took action and worked with our supplier to conduct monthly audits to identify issues and ensure that our high standards are upheld,” Apple said in a statement. “All of our suppliers in India hire married women, including Foxconn.”

In a statement, Foxconn said it “vigorously refutes allegations of employment discrimination based on marital status, gender, religion or any other form.”

The exposure of the factory’s hiring practices turns a new spotlight on one of the highest-profile foreign investments in India.

Apple, one of the world’s most valuable companies, is positioning India as an alternative manufacturing base to China amid geopolitical tensions between Beijing and Washington. The government of Prime Minister Narendra Modi, for its part, sees Foxconn’s iPhone factory and Apple’s broader supply chain in India as helping the world’s most populous country move up the economic value chain.

Apple, Foxconn and other big companies also play a key role in another imperative of Mr. Modi’s: the removal of societal impediments that prevent many Indian women from getting jobs.

While Foxconn employs thousands of women in India, discrimination on the basis of marital status risks undercutting Mr. Modi’s aims.

Mr. Modi’s administration has tried to overhaul labor laws to make hiring and firing easier and prevent gender-based discrimination in recruitment. Still, those measures are yet to be implemented and would not specifically address discrimination on the basis of marital status.

The hiring curbs at the iPhone plant also show the challenge for both Apple and Foxconn in upholding their stated global standards of inclusion while expanding their supply chains in this fast-growing but largely conservative country.

Between January 2023 and May 2024, Reuters made more than 20 trips to Sriperumbudur and spoke to dozens of jobseekers about the hiring process. Reporters also reviewed a candidate information pamphlet, dozens of job ads and records of WhatsApp discussions in which four of Foxconn’s third-party recruiters stated to prospective candidates that only unmarried women were eligible for assembly jobs. The ads make no mention of the hiring of men.

For some Indian women, a job building iPhones is a ticket out of extreme poverty. The Foxconn positions offer food and accommodation and a monthly paycheck of about $200, roughly in line with India’s per capita GDP. Such jobs are the kind of opportunities offered by multinational companies that the government has encouraged to help lift living standards.

Foxconn, the world’s largest contract electronics manufacturer, outsources its hiring of assembly-line workers to third-party vendors, who must be registered with the Tamil Nadu state government as official Foxconn service providers. The hiring agents scout for and screen the candidates, who ultimately are interviewed and selected by Foxconn. These same vendors directly employ the workers and manage the payroll, getting paid about $10 to $15 a month per employee, three hiring agents said.

Apple and Foxconn each require their suppliers to adhere to their respective codes of conduct.

Foxconn’s code states it is committed to a workforce free of “unlawful discrimination,” and that the company and its suppliers should not discriminate over marital status, gender and other factors in hiring. Apple’s code for suppliers states that they and their subsidiaries, as well as any subcontractors, should not discriminate against any worker based on age, gender, marital status and other matters.

In its statement, Foxconn said, “We enhanced our management process for hiring agencies in India in 2022 and identified four agencies that were posting ads that did not meet our standards,” without naming the agencies. “We took corrective action with those agencies and more than 20 job ads were removed.”

Further, Foxconn said that in its latest round of hiring, almost 25% of the women it hired were married, without specifying the number or where they were employed.

Mr. Modi’s office, and India’s federal ministries of labor, commerce and information technology, did not respond to requests for comment about Foxconn not hiring married women on its assembly lines. Tamil Nadu officials, including the chief minister’s office and the state ministries of industry and labor, also did not respond to questions.

Reuters could not establish when the practice of not hiring married women for assembly line work began. Thanga Rasu, a recruiter at Go Staffing, a hiring vendor for Foxconn, said in November 2023 that he had attended meetings with Foxconn officials for around a year and the “unmarried rule” had been in place during that period.

Assembly lines entirely or predominantly staffed by women have emerged in some industries in India. That’s in line with Mr. Modi’s efforts to boost female labor-force participation — which official data shows is around 37%, compared with almost 80% for men.

Scooter maker Ola Electric is an example of another company with a focus on hiring women. Bhavish Aggarwal, the founder, said on X in May that Ola runs one of the largest “women only automotive plants,” where almost 5,000 work, with a plan to “grow to tens of thousands in the coming years.” Ola declined to comment about its hiring practices.

Despite the country’s economic boom, many women in India remain confined to household chores and childcare. Since taking office in 2014, Mr. Modi has put women at the center of his government’s plans to increase incomes.

“When women prosper, the world prospers,” Mr. Modi said in an address to a ministerial conference on women’s empowerment last August. “We must work to remove the barriers that restrict their access to markets, global value chains and affordable finance.”

Apple and Foxconn, also known as Hon Hai Precision Industry, are central to those goals. When Apple CEO Tim Cook visited India last year, Information Technology Minister Ashwini Vaishnaw said he discussed “job creation especially for women” with the executive. Mr. Vaishnaw’s then-deputy, Rajeev Chandrasekhar, has also lauded Apple’s ecosystem for generating more than 150,000 jobs in the past three years.

Apple, in turn, has bet on India as its next growth frontier and a pillar of its efforts to shift production beyond China. India will account for about 9% to 14% of iPhone production globally this year, compared with 86% to 91% in China, according to Taiwan-based Isaiah Research. Ming-Chi Kuo, an analyst at TF International Securities, has predicted India’s share could reach and even exceed 20% this year. Apple did not address a Reuters query about these estimates.

India is also important to Foxconn, which last year exported devices worth $5 billion from the country, according to commercially available customs data. Led by chairman Young Liu, Foxconn in recent years has expanded in India, where it makes iPhones and products for other smartphone brands, including China’s Xiaomi, and plans to move into AirPods and chipmaking.

In January, Mr. Modi’s government awarded Liu India’s third-highest civilian honor. “Let’s do our part for manufacturing in India and for the betterment of society,” Liu said on receiving the award.

Most iPhones made in India are produced at the Sriperumbudur plant, about 25 miles west of Chennai. The factory began producing the Apple devices in 2019. It now employs thousands of women on its assembly lines.

In a forum hosted by the Center for Emerging Markets at Northeastern University in 2022, Josh Foulger, then a top Foxconn executive in India, said the company was “completely aligned with” the Indian government’s plans to boost manufacturing. He described how Foxconn opted to hire a workforce in India that overwhelmingly comprised women.

“For me it was a no-brainer,” Mr. Foulger said, crediting his mother, a former school teacher, with giving him the idea. “We tried it and it was a fantastic success.”

Mr. Foulger said women migrated from around India to work for Foxconn, attracted by its provision of safe accommodation. He added that Foxconn also hires men — “amazing guys who program all the robots” – as technicians and engineers.

Mr. Foulger, who left Foxconn earlier this year, declined to comment about the manufacturer’s hiring methods.

Many of the people who spoke to Reuters also attributed Foxconn’s hiring practices to what they said were the company’s concerns that married Hindu women wear metal toe rings known in southern India as metti and necklaces called thaali to signify the bond of marriage.

These customary ornaments could interfere with the manufacturing process, and married women won’t typically remove them, according to five of the hiring vendors and three current and former HR executives.

Electrostatic discharge could occur when metals come into contact with phone components, potentially damaging them, one current and one former Foxconn HR executive said.

Additionally, three current and former engineers for Foxconn and an affiliate company, who spoke on the condition of anonymity because they were not authorized to comment publicly, said women were screened for metals on entering and leaving the assembly lines, and that the prohibition on ornaments helped security officers prevent any theft of components.

Reuters could not independently ascertain whether ornaments affected the manufacturing process.

In its statement, Foxconn said “married women are welcome to wear traditional metal ornaments while working in our facilities,” without elaborating.

Suhasini Rao, a Bengaluru-based lawyer specializing in Indian labor regulations, said it would be reasonable for a business to require a person to remove ornaments for safety or quality-control reasons as a condition of employment, provided that was conveyed clearly.

Discrimination solely on the basis of marital status, while not prohibited in the private sector under Indian law, “may interfere with an individual’s fundamental right to freedom of trade and occupation and might be struck down by the courts, if challenged,” Rao said.

There is legal precedent on the subject of firing married women on the grounds of absenteeism.

In 1965, India’s Supreme Court struck down a pharmaceutical company’s practice of terminating the employment of women in its packing and labeling department when they got married.

The company, Messrs International Franchises, had argued that it required consistent attendance that “cannot be expected from married women,” and that there was “greater absenteeism among married women.”

The four judges determined there was “nothing to show that married women would necessarily be more likely to be absent than unmarried women,” and “there is no good and convincing reason why such a rule should continue.” Reuters was unable to determine if the company is still operating.

Foxconn has faced scrutiny over the years for its culture and work environment, most notably in China, where it runs the world’s biggest iPhone factory in Zhengzhou with 200,000 workers.

A spate of suicides by Foxconn employees in China more than a decade ago prompted questions from their families and labor rights groups about work conditions. Foxconn largely attributed the deaths to workers’ personal problems, and set up counseling hotlines.

In India, protests broke out at the Sriperumbudur plant in December 2021, leading to a brief production halt, after more than 250 workers suffered food poisoning.

That episode led Apple to dispatch independent auditors to assess conditions in workers’ facilities. Both Apple and Foxconn said they found some dormitories and dining rooms did not meet required standards, and Apple briefly put the plant on probation.

Two days before the plant partially resumed operations in January 2022, Apple said that it would continue to monitor conditions at workers’ dorms and dining facilities.

In addition to the sisters, Parvathi and Janaki, Reuters spoke to five other women who said they were rejected by Foxconn’s hiring vendors on the grounds that they were married.

Priya Darshini received the news in a WhatsApp group chat, which a recruiter from SS Enterprises, one of the hiring agencies, had created to scout for candidates.

Darshini posed questions to the group in August 2023, according to a transcript reviewed by Reuters: “I have a baby. Are there child care facilities? Could I bring my baby? Age is 2. Salary?”

The recruiter, T. Balu, sent a curt reply: Married “not allowed.”

Asked about his response, Balu told Reuters that Foxconn does not hire married women, who wear ornaments, because it wants to ensure a metal-free zone.

Darshini, who is in her late 20s, told Reuters she is seeking help from friends and family to find a job that would allow her to care for her child.

Paul, the former HR executive, said Foxconn management advises its hiring vendors not to mention marital and age criteria in their job ads.

But in some instances, vendors did not heed that advice.

“Job vacancy for Only Female … iPhone Manufacturing … Age: 19 to 30 Unmarried,” said an ad posted by a recruiter at Proodle, a hiring agency for Foxconn, in a publicly accessible WhatsApp group in February 2024.

A YouTube ad for Foxconn jobs posted by recruiter Cumans Manpower in July last year sought “unmarried only” female candidates aged 18 to 28.

A recruiter with SS Enterprises also posted a Facebook ad in September 2023 that specified the same requirements and contained a link to a Foxconn job application. The ad became inaccessible in late May after Reuters sent questions to SS Enterprises for this story.

When Reuters visited Sriperumbudur in March 2023, a recruiter was standing outside the Foxconn plant and wearing a badge of the hiring agency Groveman Global. She handed a job pamphlet to a Reuters reporter. It advertised mobile-phone manufacturing roles, which the recruiter, who identified herself only as Kaviya, said were Foxconn assembly positions.

The pamphlet stated the jobs were for “unmarried women” aged 18 to 32, with a monthly salary of about $163 for those who live in company hostels and $220 for those who don’t.

Foxconn doesn’t hire married women, Kaviya told Reuters, without elaborating.

None of the hiring agencies identified by Reuters responded to questions about the job ads and employment practices at the Foxconn plant.

Proodle, Cumans, Groveman and SS Enterprises are among the agencies registered by Foxconn as contractors with the Tamil Nadu government for providing assembly line helpers, according to copies of contractor licenses Reuters obtained from the state government under India’s Right to Information Act.

Suppliers that violate Apple’s code of conduct can face probation, suspension and even lose their entire business with Apple. The company said in its 2024 supply chain report that since 2009, it has removed 25 manufacturing supplier facilities and 231 material processors for failure to meet its standards.

In China, at least six online job ads reviewed by Reuters show workers engaged in iPhone assembly at Foxconn’s Zhengzhou plant can earn $400 to $800 a month, more than double the wages in India. The Chinese ads do not mention marital status or gender, saying anyone aged 18 to 48 can apply.

In Sriperumbudur, a road junction a little over a mile from the Foxconn plant is a hotspot for recruiters to meet candidates. Many jobseekers travel with their families from far-flung villages; if hired they are expected to start immediately.

If a married woman somehow makes it inside for an interview during the typical hiring season, Foxconn officials remain on the lookout for telltale metal ornaments, according to one current and one former Foxconn HR executive. Those wearing the ornaments are then turned away with the explanation that there had been a miscommunication or that recruitment had been paused, the people said.

But there are ways to bypass the system.

After she and her sister were turned away at the factory gate, Parvathi told Reuters that their recruiter, whose name she did not know, told them they should have removed their ornaments to conceal their marital status and gain entry.

Five recruitment agency officials also said candidates can conceal their marital status to secure jobs if their Indian government-issued ID card, known as Aadhaar, still reflects them as unmarried.

M. Malathi, a Cumans recruiter, said candidates who had not updated their marital status on Aadhaar and were willing to remove ornaments “could be helped by manpower agencies, and Cumans does help.”

Reuters spoke to a married woman from a town near Chennai, who said she used that strategy to work at Foxconn for a year, undetected, before quitting for personal reasons in 2023.

“It helped that I didn’t wear metal ornaments to work,” said the woman. Reuters is withholding her name so as not to harm her future prospects.

“You don’t need many educational qualifications. I liked it there. I want to go back when the opportunity comes.” — Reuters

Innovation and initiatives driving HMO development

Image by DC Studio on Freepik

Health is always a priority, but life can be unpredictable sometimes; so having the best healthcare products and services is a must.

But not to fret, the emergence of health maintenance organizations (HMOs) has improved healthcare standards and the quality of life for countless Filipinos. Fortunately, many HMO companies are introducing innovative solutions and services, bringing improved healthcare and a worry-free life within the reach for Filipinos.

With the HMO industry constantly evolving, several innovations seen in HMO companies are potentially revolutionizing their healthcare services and wellness campaigns.

Telemedicine

The rise of telemedicine has fast-tracked healthcare practices and services in recent years. It offers a “safe, efficient, and effective healthcare solution addressing the needs of patients and the healthcare system.” Among these solutions include virtual consultations, diagnosis, remote patient monitoring, and patient care management. According to a study published by science journal publisher BioMed Central (BMC), in recent years, telemedicine has grown exponentially, meeting the healthcare needs of Filipinos, as well as expanding its reach within urban and rural areas alike.

The study also said the tool received positive outcomes during the years, having patients receive high-quality care for non-urgent conditions without the need to visit a healthcare facility, thus saving resources and alleviate unnecessary strain on the healthcare system. Moreover, it has been proven to enhance health results and decrease the chance of hospital stays and return visits.

AI healthcare technology

Artificial intelligence (AI) is another game-changer in healthcare; and in the Philippines, AI has already been revolutionizing the HMO industry. Improved service delivery, understanding patient behavior, advancements in drug development, and forecasting disease outbreaks, are some of the things that AI can do to innovate healthcare services.

Alongside patient care and treatments, AI is also a tool used for customer service. This is especially important when dealing with a high volume of queries due to long waiting times. Today, many HMO companies use AI in their operations, efficiently addressing many frequently asked questions, enabling patients to promptly receive responses without waiting for a reply through emails or phone calls. This seamless experience ensures convenient access to healthcare services and boost patient satisfaction.

With the progression of AI, the technology brings potential to unlock new opportunities, fast-tracking advancements and treatments in healthcare.

Partnerships

To continuously deliver high-quality healthcare services, partnerships are strengthening the HMO industry, promoting further resilience and innovation in healthcare solutions. Collaborative innovation efforts can bring about development of insurance products, investments, and wellness programs, tailored to the evolving needs of patients.

As partners, HMO companies can devise risk management plans, streamline payment solutions, pool and manage resources wisely, and navigate market shifts effectively. Partnerships and collaborative efforts can also elevate customer experience by figuring out more convenient ways to access health coverage products.

Promoting financial literacy

Promoting financial literacy is also essential, especially when dealing with insurance awareness and financial struggles in the Philippines. Many HMO companies are extending its financial literacy programs, equipping Filipinos with the necessary financial skills to saving and building their own wealth. Investing in insurance allows them to set up a stable financial future for themselves and for their families, protecting them against whatever comes their way, whether it’s related to healthcare or financing. — Angela Kiara S. Brillantes

Rising US labor costs threaten to derail new LNG projects

REUTERS

HOUSTON — A shortage of skilled labor and nagging inflation from strong wage growth on the US Gulf Coast are pressuring liquefied natural gas (LNG) developers and delaying some projects from reaching a financial go-ahead.

There are five LNG plants under development in Texas and Louisiana and 16 others on the drawing board in the US looking to secure investment and customers. The five under construction would add a combined 86.6 million metric tons per annum (MTPA) of the superchilled gas, enough to keep the US the world’s largest exporter for years to come.

With labor costs jumping as much as 20% since 2021, busting construction budgets and squeezing projected returns for those firms still trying to attract new investors, the fate of some of the early projects has become less certain.

Work at Golden Pass LNG, one of the largest US projects, largely halted after its main contractor ran $2.4 billion over the original budget and filed for bankruptcy. Sempra LNG has revisited selecting Bechtel Corp. to build its Cameron LNG expansion project to reduce costs, and it has reduced its stake in a Texas project, Port Arthur LNG, on higher construction costs.

NextDecade, which is building the first phase of its $18-billion Rio Grande LNG export terminal, achieved a green light after recruiting new investors that reduced its original investors’ stake after engineering, procurement and construction (EPC) costs rose, analysts said.

Behind the struggles are costs that skyrocketed after the COVID-19 pandemic. Contractors have raised wages for skilled workers by as much as 20% in three years, and in some cases are having to pay a per diem rate to retain them, said Travis Woods, president of Gulf Coast Industrial Group, which represents over 1,500 contractors in Texas and Louisiana.

“Welders, pipefitters and electricians for sure are demanding more to keep them on the job. Per diem in some cases are paid to everyone on the project no matter where they live,” Woods said.

The five plants had on site in excess of 20,000 employees up until Golden Pass LNG’s prime contractor Zachry sent home 4,000 workers, according to regulatory filings by the companies and company statements over the last three months.

Venture Global LNG, which has Zachry helping build its Plaquemines plant in Louisiana, said the modular nature of the projects has “insulated us from the significant labor and inflationary challenges that have impacted other projects,” said a spokesperson.

Data from the US Bureau of Labor and Statistics show wages for construction workers in the oil and gas pipeline sectors increasing in Louisiana, where many of the new US plants are being built, by 19% in 2023 compared to 2022.

“Welders and pipefitters are being offered up to $60 an hour and a sign-on bonus, if they agree to stay through completion,” added Woods.

Data from LNG research and consulting firm Rapidan Energy Group show that between 2021 and 2023 EPC contracts for new LNG plants increased between 18% and 25%.

Bechtel Corp., which is the largest US LNG plant contractor and a Zachry rival, declined comment on the situation.

The Reston, Virginia-based contractor has been the preferred builder for top US LNG exporter Cheniere Energy, delivering projects using largely lump-sum, turnkey EPC contracts.

EPC contractors may look to reduce the scope of their contracts and make more elements cost reimbursable, to lessen the risks, according to Poten & Partners, a LNG shipping and consulting company.

“EPC contractors may now be factoring in a 30% to 40% increase into their lump-sum turnkey contracts,” it said in a note last month. — Reuters

Simon Cowell looks for UK’s next megastar boy band again

COMMONS.WIKIMEDIA.ORG

LONDON — Fourteen years after launching One Direction on The X Factor, music mogul and television personality Simon Cowell is looking for the United Kingdom’s (UK) next big boy band, embarking on a new project differing from the talent shows he is known for.

Mr. Cowell will hold auditions for 16-18 year-olds in Liverpool, Dublin and London over the summer in a bid to form megastars on levels not seen in Britain since the best-selling One Direction, who found fame on his televised singing competition The X Factor before parting ways several years later.

“Weirdly since One Direction, there hasn’t been a successful UK band, which I don’t understand why,” Mr. Cowell told Reuters in an interview.

“As an entry point into the music business, it’s by far the best route. Diana Ross became Diana Ross because she was in the Supremes. Beyoncé became Beyoncé ’cos she was in Destiny’s Child.”

Unlike The X Factor, there will be no weekly televised shows or vote but a potential documentary series.

“As a viewer, I’d find it more interesting, particularly if I was a performer, I’d really want to see why people get chosen and what is the process you go through,” Mr. Cowell said.

“In my opinion, that’s never really been shown, certainly since I’ve been making these shows … you see a side of it. I don’t think you really see the interesting part … the highs and lows. And trust me, there are a lot lows.”

The X Factor last aired in Britain in 2018. Once hugely popular, it had seen ratings fall over the years.

“More people than you think watch these shows … Now, of course, in different ways as well — on YouTube, TikTok,” Cowell said. “I think they’re still very popular.”

He said talent shows had a purpose, helping new artists get noticed.

“Right now with the amount of songs that are being uploaded every day and the amount of artists that are breaking globally … I think it’s something like two UK artists in seven years have broken globally … which is horrendous.

“…A lot of these artists get their first break (on televised talent shows)… even their first audition if it goes out and goes viral, that is a step on the ladder.”

Asked if he would do anything differently now compared to his work with One Direction, Mr. Cowell said he would not change much.

“I’m always very — ‘do what you want … have fun’ … I’m certainly not going to tell you what to wear. I might advise you as to what I think is the best record to put out,” he said.

In the last few years, K-pop bands such as BTS have become hit phenomena building global fan bases.

“K-pop filled a void,” Mr. Cowell said. “So when I look at BTS filling out Wembley Stadium, you say, well, then of course there’s still a market for bands, possibly bigger than ever.”

Mr. Cowell, who said his ideal boy band are “people who know who they are,” started his search earlier this month. Asked what response he had received so far, he said: “You really don’t know until you turn up on the day … If not enough people turn up or that I just don’t think they’re right, then we’re gonna have to keep going.” — Reuters