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Globe completes P300-M tower sale to Unity Digital Infrastructure

TO DATE, Globe’s tower sale and leaseback agreement with Unity has generated a total of P3.7 billion. — GLOBE.COM.PH

GLOBE Telecom, Inc. has completed the sale of 25 telecommunications towers to Unity Digital Infrastructure, Inc. for P300 million.

This development marks the latest transaction of Globe’s tower sales to Unity, representing 68.7%, or 307 of the 447 towers to be acquired by Unity for a total of P5.4 billion, the Ayala-led telecommunications company said in a regulatory filing on Tuesday.

Unity is a joint venture telecommunications infrastructure platform of Aboitiz Infracapital, Inc. and global private markets firm Partners Group.

Globe expects an estimated pre-tax net gain of P1.8 billion once this transaction is finalized, the company said.

“This transaction will allow Globe to efficiently raise capital, redeploy capital from passive infrastructure to active equipment, improve balance sheet health, and leverage the expertise of tower companies,” Globe said.

To date, Globe’s tower sale and leaseback agreement with Unity has generated a total of P3.7 billion, its regulatory filing showed.

Aside from its agreement with Unity, Globe also sold 5,709 towers and related infrastructure to Frontier Tower Associates Philippines, Inc. and MIESCOR Infrastructure Development Corp. for P71 billion.

In July, Globe said it had fully closed the sale of 3,529 towers to be acquired by Frontier Towers.

Under this transaction, Frontier Towers will acquire 3,529 towers for P45 billion, while 2,180 towers will be sold to MIESCOR Infrastructure, a unit of Manila Electric Co., for P26 billion.

At the stock exchange on Tuesday, shares in Globe fell by P166, or 7.33%, to close at P2,100 each. — Ashley Erika O. Jose

Metrobank net income rises to P12.12B in Q3

METROBANK.COM.PH

METROPOLITAN Bank & Trust Co.’s (Metrobank) net income rose by 11.35% in the third quarter amid higher revenues as it booked growth in both interest and non-interest earnings.

The Ty-led bank’s attributable net profit stood at P12.124 billion in the three months ended September, up from P10.888 billion in the same period last year, the bank’s financial statement disclosed to the stock exchange on Tuesday showed.

This brought Metrobank’s net income for the first nine months to a record P35.729 billion, up by 12.4% year on year from P31.786 billion, “supported by the bank’s strong asset expansion, recovery in non-interest income and improved asset quality,” it said in a statement.

This translated to a return on equity of 12.93%, rising from 12.83% a year ago, and a return on assets of 1.48%, up from 1.46%.

“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio. We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook,” Metrobank President Fabian S. Dee said.

The bank’s net interest income went up by 4.1% to P27.752 billion in the third quarter from P26.658 billion a year ago.

This came as its interest earnings increased by 12.93%, driven by higher income from loans and receivables and investment securities. Interest expenses grew by a faster 30.94% in the period.

Net interest margin was at 3.9% at end-September, down from 3.93% a year ago.

Metrobank’s other income surged by 50.39% to P12.063 billion from P8.021 billion as it posted higher net trading, securities and foreign exchange gains and fee income in the quarter.

On the other hand, the lender’s total operating expenses went up by 17.25% to P20.597 billion from P17.566 billion amid higher manpower and miscellaneous costs.

Its cost-to-income ratio stood at 52.2% at end-September.

Metrobank’s gross loans expanded by 15.6% as of September.

“Commercial loans surged 16.6% as firms resumed capital spending and built up their inventories. On the other hand, consumer loans grew by 12.3% driven by a 16.6% rise in net credit card receivables and 15.7% growth in auto loans,” the bank said.

Despite the increase in its loans, Metrobank’s asset quality improved as its nonperforming loan (NPL) ratio eased to 1.59% as of September from 1.74% a year prior as it remained “prudent in its lending business,” it said.

“As a result, provision costs declined by 48.2% year on year. Nonetheless, NPL cover remains high, at 161.9%, providing a substantial buffer against any risks to the portfolio.”

Meanwhile, total deposits stood at P2.28 trillion as of September, with low-cost current and savings account or CASA deposits making up 62.3% of the total.

Its loans-to-deposits ratio went up to 74.4% from 62.62% a year ago.

Metrobank’s total assets stood at P3.34 trillion at end-September, and total equity was at P380.14 billion.

Its common equity Tier 1 ratio was at 16.3%, down from 17.59% a year prior, while its capital adequacy ratio was at 17.1%, lower than 18.42%. Still, both remained well above the central bank’s minimum requirements.

The bank’s liquidity ratio inched down to 47.49% from 48.89%, while its liquidity coverage ratio was at a “healthy” 258.4%.

The Metrobank Group had 956 branches, 1,303 on-site automated teller machines (ATMs) and 1,001 off-site ATMs as of Sept. 30.

Metrobank’s shares dropped by P3.20 or 4.07% to close at P75.50 apiece on Tuesday. — A.M.C. Sy

Pay up if you want to see Notre-Dame, French minister wants to tell tourists

NOTREDAMEDEPARIS.FR/EN

PARIS — France should charge visitors a small fee to see the Notre-Dame cathedral to help the country keep its world-famous churches and cathedrals in shape, the culture minister said.

Rachida Dati told newspaper Le Figaro in an interview published last week that by charging only €5 per visitor Notre-Dame could raise €75 million ($81 million) a year.

In France, where secularism is part of the national identity, the state is in charge of maintaining the country’s religious sites, including 15,000 classified as historic monuments, which are usually free of charge.

Notre-Dame has been undergoing reconstruction after a fire severely damaged its roof and spire. President Emmanuel Macron had pledged to rebuild Notre-Dame within five years, drawing massive private-sector financial support.

“As a good Christian, you are supposed to contribute and give some money to the church. But that’s supposed to be from your heart, not from charging the money,” said Soraya Arango, a tourist from Mexico who visited the cathedral.

French tourist Jean-Marie Delprat said he welcomed Ms. Dati’s initiative.

“One has to understand that it is necessary to do maintenance work, and not only here. There are other churches,” Mr. Delprat said.

Ms. Dati, a former Paris district mayor, also said tourists from outside the European Union should pay more to visit non-religious landmarks.

“Is it normal that a French visitor pays the same entrance fee to the Louvre as a Brazilian or Chinese visitor?” Ms. Dati said, adding: “I want visitors from outside the EU to pay more for their entrance ticket and for this supplement to go toward financing the renovation of our national heritage.”

The minister said many of the country’s famous buildings attracting millions of tourists per year were in a degraded state and that new funding sources were needed to address mounting preservation challenges, especially in the capital.

She said the ministry was working on implementing a new pricing policy, which is likely to require coordination with various public and private entities, from January 2026.

“A country that gives up on carrying out major cultural projects gives up on being a great nation,” Ms. Dati said. — Reuters

Can Philippine manufacturing ever recover? On coconut and cacao

FREEPIK

(Part 5)

We have considered at least two reasons why Philippine manufacturing never really took off in our development efforts.

First, we failed to address food security by giving short shrift to or neglecting the pre-condition to industrialization for a resource-rich and populous country like the Philippines, which is a green or agricultural revolution that characterized the first countries to industrialize in Europe, America, and Japan. The second policy mistake our leaders made was to rush head-on to capital-intensive, import-substitution and inward-looking industrialization, instead of first developing labor-intensive, export-oriented industries as our East Asian neighbors did.

There is no stopping us, however, from correcting these errors and removing the handicaps (high energy costs, inefficient infrastructures, and obstacles to doing business) in order to have a reasonable chance of competing with our ASEAN neighbors in export-oriented industries. At this late stage of global industrialization, some countries in Africa are still trying to replicate what the East Asian tigers did during the last century, benefiting from the “economic promise of the T-shirt” as David Pilling recently put it in the Financial Times (Aug. 29).

According to Pilling, “Benin, a nation of 13 million people, is trying to achieve what few African countries have managed: systematically transform raw materials — not just cotton, but also raw cashew nuts, soya, shea, and even human hair for wigs — into finished goods. Until now, like many poor countries, Benin has been trapped in a trading pattern in which it sells cheap raw commodities and imports finished goods.” These words apply perfectly to two raw materials we export: coconut and nickel ores. Philippine manufacturing can be given a big boost if we export high-value food products manufactured from coconut and processed nickel products which Indonesia is already doing.

As already mentioned, the emphasis on the importance of manufacturing for reaching high-income status can be explained by the way that sector makes more productive use of human resources than agriculture and most services. In a rough calculation, using macroeconomic data, one of our young economists at UA&P, Greg Mabaggu, divided total output (value added) per economic sector by the number of people employed by that sector and came out with the following comparative figures. Using the agriculture, forestry, and fisheries (AFF) sector as the standard of 1.0, manufacturing rated 50.8, mining 37.3, construction 4.2; electricity, gas, steam, etc. 502.6; water supply, sewerage, waste management, etc. 43.7. It is evident that the entire industrial sector has much higher labor productivity than agriculture, forestry and fisheries.

What about the service sector, which accounts for almost 60% of our GDP? Wholesale and retail trade, repair of motor vehicles and motorcycles rated 23.8, much smaller than manufacturing. Other service sectors are even less productive in using labor: Transport and storage rates 6.2, accommodation and food services rates 13; professional, scientific and technical activities, 19.2; administrative and support services, 5.2; education, 3.5; human health and social work, 13.2; and arts, entertainment and recreation, 13. These figures suggest that shifting more labor to manufacturing can lead to higher GDP levels and that manufacturing can afford to pay higher wages.

Unfortunately, of the 50.3 million workers employed, only 7.8% are in manufacturing. The AFF sector employs 21.2% of the labor force; construction 11.5%; mining and quarrying 0.6%; and electricity and gas, etc. 0.2% with total industry at 20.2%. Services account for 58.7% of total labor force with wholesale and retail, etc. at 21.1%, transportation and storage at 7.1%; accommodation and food service activities at 5.2%; education at 3%; all other service sectors employ less than 3% each. Those not classified (other service activities) total 6.3%. We can conclude from the above data that most of our workers (almost 60%) are in low productivity businesses.

This explains why economists would like to see more of our 50 million or so employed workers in manufacturing and the other sectors of industry and not concentrated in services. This is evidence that we have not truly industrialized. In fact, a recent chart that appeared in this paper, containing the latest data from the World Bank’s World Development Indicators, showed that labor productivity in the Philippines in 2023 was the fifth lowest in the East and Southeast Asian region. At $23,519, it was more than two times lower than the East Asia & Pacific’s average of $43,715 and the world average of $47,919 in 2023.

One of the most compelling studies about the primordial role of manufacturing to attaining First World status was that of a team of economists at the Asian Development Bank headed by Dr. Jesus Felipe, who is now the Chair of the Economics Department of my alma mater, De La Salle University, a contributor to this paper. The results of this study appeared in the Cambridge Journal of Economics (January 2019) in article entitled “Manufacturing matters… but it’s the jobs that count.” Let me quote from the Abstract: “We assemble a large database of countries’ manufacturing employment and output shares for 1970-2010. We ask whether increased global competition and labor-displacing technological change have made it more difficult for countries to industrialize in employment, and whether there are alternative routes to prosperity. We find that 1.) All of today’s rich non-oil economies enjoyed at least 18% manufacturing employment shares in the past; 2.) They often did so before becoming rich; 3.) Manufacturing peaks at lower employment shares today (typically below 18%) than in the past (often over 30%); 4.) Compared with employment, output shares are weak predictors of prosperity, and are under less pressure; and, 5.) Late developers’ manufacturing employment shares peak at much lower per capita incomes than previous studies have shown. We demonstrate that final result through regression analysis and simulation of the dynamics implied by our regression model. Becoming rich through industrialization has therefore become much more difficult. We argue in large part because of rapid growth in the manufacturing capabilities of some very populous countries.

These findings based on very hard evidence should give Philippine policy makers much food for thought. First, we have to do everything possible in the next 10 years or so to increase the share of manufacturing in total employment from the very low present rate of 8%, not to the practically impossible 20% or more attained in the past by countries like Taiwan and South Korea, but at least to double the rate to 16%.

A glimmer of hope for Philippine manufacturing was suggested by a recent report in September that the country’s manufacturing sector hit a more than two-year high, supported by a rise in new orders and production amid weak international demand, as reported by S&P Global. The domestic demand for manufactured products has reached such a high level that “overall new orders increased at much faster pace, despite demand for Filipino goods dropping notably in international markets.” Here again, we have proof of the advantage of a large, growing, and young population. We should give special attention to the manufacture of food products from the raw materials we grow. We have to “industrialize” agriculture.

One specific crop that should be given very serious attention is cacao, which we were a major producer of before the Second World War. As leading agribusiness economist, Ernie Ordonez, reported in a Philippine daily, the Ivory Coast — the top exporter of cacao in the world — is suffering shortages nowadays.

He advises that we help coconut farmers implement a superior multi-crop cacao system. Considering that two-thirds of the 3.6 million hectares of coconut trees have nothing planted between them, it would be profitable to help these farmers to cultivate cacao in between the coconut trees. In Ernie’s calculations, a cacao investment of only P47,454 per hectare can yield a net income of P130,313 per year, with a cacao tree being productive for 25 years. He suggests that we make use of part of the largely unutilized coco levy fund to fully support the plan of Agriculture Secretary Tiu Laurel and Philippine Coconut Authority Administrator Dexter Buted in fast tracking coconut intercropping by the small coconut farmers who are among the poorest of the poor in the Philippines.

As much as possible, we should not export the raw cacao but have our food manufacturers process them into chocolate candies that replicate the quality of the small producers in Davao and Bohol, who have already made a name for themselves in the global confectionery market.

(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

CEB boosts stake in ground handling firm 1AV to 60%

Founded in 2018, 1AV operates in 34 airports nationwide and plans to expand further to serve major domestic and international airlines. — CEBUPACIFICAIR.COM

CEBU AIR, Inc. (CEB), the publicly listed operator of Cebu Pacific, is increasing its equity stake in 1Aviation Groundhandling Services, Corp. (1AV), a company specializing in ground handling and logistical support services.

Cebu Air has executed a deed-of-assignment and subscription agreement to acquire 1.13 million shares of 1AV at a price of P100 per share, amounting to a total investment of P113 million, the company said in a regulatory filing on Tuesday.

Under this debt-to-equity conversion deal, Cebu Air said a portion of its loans and advances will be converted into 1AV equity by the issuance of an equivalent number of common stocks, pending the approval from the Securities and Exchange Commission.

This debt-to-equity plan will increase Cebu Air’s ownership in 1AV to 60% from the current 40%, making it the majority owner of the company.

As 1AV’s majority owner, Cebu Air will be able to integrate 1AV’s services more seamlessly into its operations, while also reducing operational costs and improving service quality, especially in ground handling and logistical support, it said.

1AV also stands to benefit from the transaction by reducing its debt and improving its overall financial health, Cebu Air said.

Founded in 2018, 1AV operates in 34 airports nationwide and plans to expand further to serve major domestic and international airlines.

To recall, Cebu Air had sold its majority stake in ground-handling service subsidiary 1AV to Philippine Airport Ground Support Solutions, Inc. (PAGSS), led by Jefferson G. Cheng.

Cebu Air said PAGSS and Mr. Cheng both agreed to convert their outstanding loans in 1AV, amounting to P34.23 million and P2.78 million, respectively, or a total of P37 million, into equity through the issuance of 370,000 common shares.

With this, PAGSS and Mr. Cheng remain minority owners of 1AV, collectively owning 40% of its stake.

PAGSS is a ground-handling service company based at Ninoy Aquino International Airport (NAIA).

At the stock exchange on Tuesday, shares in Cebu Air closed 65 centavos, or 1.98% lower, at P32.25 apiece. — Ashley Erika O. Jose

BSP working to ensure exit from ‘gray list’

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) is working to ensure the country’s exit from the Financial Action Task Force’s (FATF) “gray list” of jurisdictions under increased monitoring for anti-money laundering risks by next year.

The central bank has been working with the National Government to “further strengthen the country’s risk-based anti-money laundering/countering terrorism and proliferation financing (AML/CTPF) supervisory regime,” it said in a statement on Tuesday.

“The BSP remains committed to reinforcing the integrity of the Philippine financial system and continues to conduct risk-based AML/CTPF examinations, thematic reviews, and capacity building programs,” it added.

The FATF last week kept the Philippines in its list of jurisdictions under increased monitoring for “dirty money” risks. The country has now been on the gray list for over three years or since June 2021.

Still, it said the country has addressed the remaining deficiencies in its recommended action items.

The dirty money watchdog is set to conduct an on-site visit to verify the Philippines’ progress in its action plan and implementation of reforms. This is set to take place anytime between now and February 2025.

“The Philippines will be removed from the FATF gray list after successful verification,” the BSP said.

The central bank has been implementing the necessary initiatives to “enhance money service business supervision and the effectiveness of targeted financial sanctions framework for terrorism and proliferation financing,” it said.

“The BSP also recognizes the continuing efforts of banks and other BSP-supervised financial institutions to improve their AML/CTPF frameworks,” it added.

Exiting the gray list will help support overseas Filipino workers (OFWs) by making remittances and cross border payments faster and more affordable, the central bank said.

The Anti-Money Laundering Council (AMLC) earlier said the country is on track to exit the gray list by 2025.

In 2002, the FATF blacklisted the Philippines for having no legal anti-money laundering framework. It was removed from the blacklist a year later after the passage of the Anti-Money Laundering Act.

The FATF Plenary, the intergovernmental organization’s decision-making body, usually meets in February, June and October.

Data from Moody’s Investors Service showed that from 2018 to 2023, the Philippines was among the top five countries in Southeast Asia with money laundering activity events added over the five-year period.

The number of money laundering events added in the Philippines increased by 45% from 2022 to 2023, according to Moody’s. — Luisa Maria Jacinta C. Jocson

Sean ‘Diddy’ Combs sexually assaulted 10-year-old boy, lawsuit claims

Sean “Diddy” Combs on the talk show Late Night with Seth Myers. — IMDB

NEW YORK — Sean “Diddy” Combs has been accused of sexually assaulting a 10-year-old boy in 2005, according to a new lawsuit that joins more than two dozen others accusing the music mogul of sexual misconduct.

The civil lawsuit was one of two filed on Monday in a New York state court in Manhattan by Tony Buzbee, a lawyer who says he represents more than 150 victims of Mr. Combs’ abuse, and has filed at least 17 lawsuits.

In Monday’s second lawsuit, another male accuser said he was a 17-year-old auditioning for the reality TV show Making the Band when Mr. Combs and a bodyguard sexually assaulted him in 2008.

“The lawyer behind this lawsuit is interested in media attention rather than the truth,” Mr. Combs’ lawyers said in a statement resembling those issued after earlier Buzbee lawsuits. “In court, the truth will prevail: that Mr. Combs never sexually assaulted or trafficked anyone — man or woman, adult or minor.”

Mr. Combs, 54, has also pleaded not guilty to criminal sex trafficking charges in federal court in Manhattan, where he faces felony counts of racketeering conspiracy, sex trafficking, and transportation to engage in prostitution.

Federal prosecutors have accused the Bad Boy record label founder of coercing men, women, and children into sex acts without their consent, bribing and intimidating them into keeping quiet, and employing his staff to cover up his crimes.

Mr. Combs has been held for six weeks in a Brooklyn jail after being denied bail twice, and is appealing his detention.

In the complaint involving the 10-year-old, the California plaintiff known as John Doe said he was an aspiring actor and rapper when a consultant whom his parents had hired arranged an “audition” with Mr. Combs at a New York hotel.

According to the complaint, after Mr. Doe told Mr. Combs he would “do anything” to become a star, Combs gave him a soda spiked with drugs, pushed him down, and forced him to perform oral sex.

Mr. Doe said he lost consciousness, and upon waking was sore and had his pants undone. He said he cried and asked to see his parents, leading Mr. Combs to say he would hurt them “badly” if Mr. Doe revealed what happened, the complaint said.

In the second complaint, a different California plaintiff named John Doe said Mr. Combs forced him to perform oral sex on himself and the bodyguard, with Mr. Combs framing the latter as a “test” of how much Mr. Doe wanted to succeed in the music industry.

Mr. Doe failed the audition, after Mr. Combs deemed him “untrustworthy due to his reservations about performing oral sex on his bodyguard,” the complaint said.

Combs’ criminal trial is scheduled for May 5, 2025. — Reuters

Our collective stake in our common future

RAWPIXEL.COM-FREEPIK

It’s the season once again — for the Stratbase Group’s Pilipinas Conference, which this year will be held on Nov. 6 and 7 at the Manila Polo Club and also livestreamed. It will be the 9th year that such a major conference is taking place.

Our organization, the Stratbase Group, has been around for 20 years. We are a thinktank, yes, but we also relish our role as a provider of platforms for sparking new ideas and fostering discussions on key issues facing Philippine society. We bring together key stakeholders from the government, private sector, civil society, and diplomatic community to discuss and shape policies that address the complex social, political, and economic challenges affecting the Philippines and the broader Indo-Pacific region.

This year, we are building those discussions around the twin themes of geopolitics and geoeconomics. These two are both crucial to the development of the Philippines and our ability to provide quality life to our people, as well as our ability to protect them. They are also inseparable.

The Philippines has distinct core qualities compared to other countries. We are in a strategically critical location with unparalleled natural resources. Aside from these natural attributes, we boast of a young, skilled, and adaptable workforce. Taken together, these advantages have long defined our potential — the only thing left to do is to make that potential a reality. We are on that track, but we have a long way to go.

A certain way to do this would be to make the Philippines an attractive hub for foreign direct investment. There are ongoing reforms to improve the investment climate, such as easing business regulations and adopting transparency and accountability in our processes. These would definitely overcome bureaucratic delays and encourage more investors to take a chance on the Philippines, not only in the capital region, but in numerous other locations as well across the archipelago.

Investments bring more than the actual amount that investors commit. They bring possibilities and the opportunity to look into the future in a more confident position. They bring infrastructure, which are long-term expressions of commitment. Infrastructure is a stated priority of this administration. Investments bring jobs, occasion consumer spending confidence, and drive economic activity. Specifically, given our innate strengths, the Philippines is being looked at as a regional manufacturing and logistics center. It could play a pivotal role in shaping the economic dynamics of the Indo-Pacific.

Central to these efforts is collaboration between the public and the private sector, as well as with other stakeholders. The people themselves are aware of how important such a partnership is. In a survey commissioned by Stratbase from Pulse Asia Research, Inc., it was found that Filipinos believe that the private sector is vital to achieving economic security. They see the private sector and government working together to promote economic growth and development by expanding livelihood opportunities (52%), making goods more affordable and accessible to consumers (51%), and creating higher-quality jobs (48%).

Obstacles to foreign investment include complicated rules and regulations like red tape (52%), changing government policies and regulations (51%), and corruption in the public sector (46%). Addressing these concerns could significantly enhance investor confidence and drive economic growth.

Working with the private sector and with civil society gives the government a realistic feel of the concerns being faced by industries, business organizations, communities, and individuals. Thus, the government can craft policies or amend existing ones so that they truly respond to what is needed on the ground.

Collaboration is also non-negotiable in good governance. Irregularities happen when one party is given too much discretion without any checks and balances from other stakeholder groups. Ideally when these different groups come together, nobody will be able to get away with self-serving acts without facing reckoning and being held accountable.

THE CONFERENCE
The two-day conference is entitled “Navigating a Complex Geostrategic Landscape: Building Resilience Through Cohesive Cross-Sectoral Collaboration in 2025.”

On the first day, we will focus on the confluence of asymmetric security challenges and their impact on the collective security of the Indo-Pacific region and adherence to the rules-based international order. The Philippines faces risks and opportunities in various areas, including aggressive actions in the West Philippine Sea and proliferating cybersecurity threats like disinformation campaigns. In response, the Marcos Jr. administration has employed minilateral and multilateral approaches to strengthen and expand cooperation with like-minded partners.

On the second day, the focus will shift to strategic initiatives necessary to foster a robust economy and resilient society through the creation of green and high-quality jobs. Since 2022, the Marcos Jr. administration has implemented an Eight-Point Socioeconomic Agenda aimed at mitigating external risks and steering the economy back to a high-growth trajectory. This agenda prioritizes investments in sustainable infrastructure, critical minerals, and clean energy, positioning the Philippines as a key player in the global supply chain.

During the past two decades, Stratbase has been mindful of its unique role in Philippine society — as the top think-tank, we are dedicated to facilitating critical dialogues that include all societal sectors, aiming to elevate the Philippines’ global standing and improve the quality of life of every Filipino.

Indeed, the 2024 Pilipinas Conference serves as a call to action, inviting stakeholders to collectively shape the nation’s future and secure the Philippines’ place on the world stage.

 

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

Converge ICT advancing IoT integration — Uy

CONVERGE ICT Chief Executive Officer Dennis Anthony H. Uy — CONVERGEICT.COM

CONVERGE ICT Solutions, Inc. is working to enhance its services and infrastructure by leveraging Internet of Things (IoT) technology and expanding its data centers and subsea fiber networks to meet the growing demand for better connectivity in the Philippines, its top official said.

“Here in the Philippines, we anticipate an influx of utilization of capacities, especially with IoT, data, and artificial intelligence. All of this content, all of them need huge capacity. We are looking at the new age of intelligence today; we are looking after connectivity,” Converge Chief Executive Officer Dennis Anthony H. Uy said during a press briefing on Tuesday.

With the expected demand for data and connectivity, Converge said it is developing its business and projects to better suit the capacity demand in the country.

For instance, the company said it plans to open two data centers with a combined capacity of 13 megawatts in 2025.

“We will activate it in the first quarter of 2025, and we will build a computing zone; this is a virtual computing machine. On top of this computing data center, we will build the application layer, which is connectivity,” Mr. Uy said.

“We are now also on the way to build digital infrastructure with a multiple edge cloud and data center strategy,” he added.

The company said previously that it was also on track to complete the construction of its international subsea fiber networks by next year.

The Bifrost cable system is expected to be completed by the first quarter of next year, and the Asia-Hainan-Hong Kong Express (SEA-H2X) Submarine Cable System is set for completion by the second quarter of 2025, it said earlier.

“[Our] goal is to drive the expansion of IoT solutions in the Philippines by creating a collaborative environment where local and global stakeholders can connect, share insights, and explore innovative technologies,” said IoT solutions provider Packetworx, Inc. Chief Marketing Officer Raisa Orbon.

Like artificial intelligence, IoT continues to gain momentum in the country as telecommunications companies capitalize on its growth to further strengthen by providing reliable connectivity.

“To support this growth, the DICT is laying the groundwork for a robust IoT ecosystem. Our initiatives focus on infrastructure development, smart cities, industry support, and countryside development,” said DICT Industry Development Bureau Director Emmy Lou V. Delfin.

The development of IoT in the information and communications industry is important as the country’s IoT market is expected to reach P165 billion within this year and has a projected annual growth rate of 20% from this year until 2029.

She said DICT’s programs like the National Broadband Program and its Free Wi-Fi for All project will help bridge the digital gap by providing internet access to Filipinos.

“This connectivity is the foundation upon which IoT thrives, enabling applications across healthcare, agriculture, logistics, and government services,” Ms. Delfin said. — Ashley Erika O. Jose

RCBC upsizes medium-term note program to $4 billion

PHILSTAR FILE PHOTO

RIZAL COMMERCIAL Banking Corp. (RCBC) has upsized its medium-term note program to $4 billion from $3 billion, it said on Tuesday.

The Yuchengco-led bank will also be issuing foreign currency-denominated senior notes under the program, RCBC said in a disclosure to the stock exchange.

It has appointed SMBC Nikko Securities, Inc. as the program arranger, it added.

The increase in its bond program, the planned issuance, and the appointment of the program arranger was approved by the bank’s board of directors on Monday.

RCBC last tapped the foreign bond market in January, raising $400 million from an issuance of five-year senior unsecured sustainability notes.

This issuance marked RCBC’s return to the overseas debt market after over three years.

The notes were issued out of the bank’s medium-term note program, with the proceeds set to finance and refinance its consumer loans, as well as its own operating activities, for eligible green and social categories in line with the RCBC’s Sustainable Finance Framework.

RCBC’s net income declined by 12.97% year on year to P2.25 billion in the second quarter due to increased tax expenses.

Its shares went down by 25 centavos or 0.93% to close at P26.60 each on Tuesday. — AMCS

Pop star Madonna defeats lawsuit over concert start time in Miami

MADONNA.COM

POP SUPERSTAR Madonna persuaded a judge in Miami to throw out a lawsuit claiming she deceived concertgoers by taking the stage 90 minutes late at a concert in April.

Judge Jorge Perez Santiago of Miami-Dade County Court said at a hearing last week that the concert’s 8:30 p.m. start time was subject to change and that an opening act performed as planned before Madonna’s appearance.

The concertgoer alleged Madonna and the arena, Kaseya Center, violated Florida’s law against deceptive and unfair business practices by starting the concert late and for knowingly allowing the venue to be overheated.

Mr. Perez Santiago said there were no issues for a jury to resolve, and dismissed the case. The judge said the dispute over heat boiled down to a subjective feeling.

“If it was too hot for you, it’s too cold for somebody else,” Mr. Perez Santiago said at the Oct. 24 hearing, according to a transcript.

Marcus Corwin, an attorney for the concertgoer, told Reuters on Monday that he planned to appeal the dismissal ruling.

“My job is to help consumers get what they feel they’ve bargained for,” Mr. Corwin said in an interview.

Lawyers for Madonna and the arena, home to the Miami Heat professional basketball team, did not immediately respond to a request for comment.

Mr. Corwin has two other similar pending lawsuits against Madonna before different judges in the same court. He said a judge in one of the cases had rejected Madonna’s early defense arguments.

Mr. Corwin, who is based in Florida, is also pursuing a separate class action over a late Madonna concert start in federal court in Washington, DC. In June, he voluntarily withdrew a lawsuit in New York that accused Madonna of starting concerts two hours late.

Madonna has denied the claims in all the cases.

The lawsuits in Miami-Dade County Court sought damages of under $8,000 for different nights of Madonna’s Celebration Tour in Miami.

Mr. Corwin at the Oct. 24 hearing accused Madonna of habitual lateness.

“I mean, this is not one night. They do this all the time,” he said.

Madonna’s lawyer Austin Flickstein countered that the plaintiff got what he paid for.

“It is not unreasonable for a headlining act to have someone come up and warm up the crowd,” Mr. Flickstein told the court. “Reasonable consumers know this.” — Reuters

Helene and Milton damage is just the start of the climate tab

STOCK PHOTO | Image by Jcomp from Freepik

WHEN we think about the economic damage of climate change, most of us probably think about the physical destruction wrought by mammoth disasters like hurricanes, wildfires, and droughts: Bungalows tumbling into the sea. Houses turned to ash. Acres of dead crops. That sort of thing. But the quieter, longer-term effects of global warming cut even deeper.

Consider western North Carolina. It’s just beginning to repair the heavy physical damage to homes, businesses, and infrastructure caused by Hurricane Helene nearly a month ago. The state’s tab for that could be $53 billion, Governor Roy Cooper has said. But all of that physical wreckage also means businesses are closed, tourists aren’t visiting, people aren’t working, and few are splurging on luxury goods when many are still struggling just to get drinking water. That adds up to financial damage that dwarfs the physical one.

The total short- and long-term economic impacts of Hurricanes Helene and Milton could amount to roughly $400 billion, the private forecasting firm AccuWeather has estimated. That’s more than twice most assessments of the direct physical damage done by these storms.

Clearing away wreckage could take months. Rebuilding homes, businesses, and infrastructure could take years. During that time, the economic losses will pile up, AccuWeather’s chief meteorologist, Jon Porter, noted in an interview. Businesses will close. People will move away forever.

“These places have a long road ahead,” Porter said. “They need a lot of help to rebuild and put lives back together, which tragically changed forever, sometimes in a matter of minutes.”

North Carolina’s pain will also be shared across the country in the form of higher grocery bills. Helene and Milton disrupted agriculture across the Southeast, tightening produce, livestock and fertilizer supplies when consumers are already struggling with food inflation.

Most insidiously, the stress of the disasters will inflict long-term health impacts on millions. Tropical storms cause excess deaths for 15 years after they strike, according to a new study by researchers at the University of California, Berkeley. The average storm leads to 7,000 to 11,000 extra deaths during that span, compared with the 24 deaths, on average, storms cause directly when they land. This doesn’t account for the chronic health problems of those who survive or the medical costs they will incur during their lifetimes.

But the pain doesn’t end there. S&P Global Ratings last week put Asheville and 11 other North Carolina and Tennessee municipalities on “CreditWatch with negative implications,” which is rating company lingo for “We might cut your credit rating.” Why? All of that aforementioned post-hurricane economic weakness could make it harder for these cities and towns to pay their bills. As anybody who has ever tried to buy a car with a lousy credit score can attest, this can balloon your borrowing costs. So add higher interest rates to a bill that is growing longer than a CVS receipt.

Disasters aren’t climate’s only source of financial pain. A group of Oregon economists called the Forum on Oregon Climate Economics recently tried to tally all the losses a heating planet is inflicting on their state. As you would expect, they found the 2018 wildfire season and 2021 heat wave wreaked billions of dollars in damage. But Oregonians also lose tens of billions every year because of excess heat, poor air and water quality, and other routine impacts of climate change, and they risk losing even more from the death of the state’s salt marshes, Douglas firs, and other natural resources.

“The average household in Oregon can reasonably expect to suffer damages in the tens of thousands of dollars per year under current emissions scenarios,” the economists wrote.

And that’s just one state. All across the US and the world, increasingly extreme climate conditions are hurting buildings and infrastructure in subtle but devastating ways, Bloomberg’s CityLab noted recently. Heat and rainfall that were unimaginable at the time of design and construction are causing roofs and HVAC systems to fail, roads and railways to buckle, and foundations and plumbing to shift and crack. Maintenance and repair costs have only begun to soar.

All of this adds up to crushing economic cost. Every 1° Celsius of heating above preindustrial averages cuts global GDP by 12%, a recent National Bureau of Economic Research paper estimated. The 1.3°C of warming the planet has already experienced has left economic output 37% lower already than it might have been in a normal climate. By the end of the century, global GDP could be cut in half — an effect comparable to a permanent state of war.

In fact, war is a good analogy for the challenge we face. Bloomberg NEF has estimated it will cost $215 trillion by 2050 to mitigate future climate change and adapt to the warming already in the pipeline. If Earth faced an alien invasion that was costing it trillions of dollars and thousands of human lives every year and eroding the foundations of society, we wouldn’t blink at spending $215 trillion to repel it. The war against climate change is no less existential.

BLOOMBERG OPINION

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