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Bollywood star or deepfake? AI floods social media in Asia

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Women are top target of generative AI’s ‘chilling effect’

THERE was the Bollywood star in skin-tight lycra, the Bangladeshi politician filmed in a bikini and the young Pakistani woman snapped with a man.

None was real, but all three images were credible enough to unleash lust, vitriol — and even allegedly a murder, underlining the sophistication of generative artificial intelligence (AI), and the threats it poses to women across Asia.

The two videos and the photo were deepfake, and went viral in a vibrant social mediascape that is struggling to come to grips with the technology that has the power to create convincing copies that can upend real lives. “We need to address this as a community and with urgency before more of us are affected by such identity theft,” Indian actress Rashmika Mandanna said in a post on X, formerly Twitter, that has garnered more than 6.2 million views.

She is not the only Bollywood star to be cloned and attacked on social media, with top actors including Katrina Kaif, Alia Bhatt, and Deepika Padukone also targeted with deepfakes.

The lycra video, said Ms. Mandanna, was “extremely scary not only for me, but also for each one of us who today is vulnerable to so much harm because of how technology is being misused.”

While digitally manipulated images and videos of women were once easy to spot, usually lurking in the dark corners of the internet, the explosion in generative AI tools such as Midjourney, Stable Diffusion, and DALL-E has made it easy and cheap to create and circulate convincing deepfakes.

More than 90% of deepfake videos online are pornographic, according to tech experts, and most are of women.

While there are no separate data for South Asian countries, digital rights experts say the issue is particularly challenging in conservative societies, where women have long been harassed online and abuse has gone largely unpunished.

Social media firms are struggling to keep up.

Google’s YouTube and Meta Platforms — which owns Facebook, Instagram and WhatsApp — have updated their policies, requiring creators and advertisers to label all AI-generated content.

But the onus is largely on victims — usually girls and women — to take action, said Rumman Chowdhury, an AI expert at Harvard University who previously worked at reducing harms on Twitter.

“Generative AI will regrettably supercharge online harassment and malicious content … and women are the canaries in the coal mine. They are the ones impacted first, the ones on whom the technologies are tested,” she said.

“It is an indication to the rest of the world to pay attention, because it’s coming for everyone,” Ms. Chowdhury told a recent United Nations briefing.

DEEPFAKES AND THE LAW
As deepfakes have proliferated worldwide, there are growing concerns — and rising instances — of their use in harassment, scams and sextortion.

Regulations have been slow to follow.

The US Executive Order on AI touches on dangers posed by deepfakes, while the European Union’s proposed AI Act will require greater transparency and disclosure from providers.

Last month, 18 countries — including the United States and Britain — unveiled a non-binding agreement on keeping the wider public safe from AI misuse, including deepfakes.

Among Asian nations, China requires providers to use watermarks and report illegal deepfakes, while South Korea has made it illegal to distribute deepfakes that harm “public interest,” with potential imprisonment or fines.

India is taking a tough stance as it drafts new rules.

IT Minister Ashwini Vaishnaw has said social media firms must remove deepfakes within 36 hours of receiving a notification, or risk losing their safe-harbor status that protects them from liability for third-party content.

But the focus should be on “mitigating and preventing incidents, rather than reactive responses,” said Malavika Rajkumar at the advocacy group IT for Change.

While the Indian government has indicated it may force providers and platforms to disclose the identity of deepfake creators, “striking a balance between privacy protection and preventing abuse is key,” Rajkumar added.

WOMEN TARGETED
Deepfakes of women and other vulnerable communities such as LGBTQ+ people — especially sexual images and videos — can be particularly dangerous in deeply religious or conservative societies, human rights activists say.

In Bangladesh, deepfake videos of female opposition politicians — Rumin Farhana in a bikini and Nipun Roy in a swimming pool — have emerged ahead of an election on Jan. 7.

And last month, an 18-year-old woman was allegedly shot dead by her father and uncle in a so-called honor killing in Pakistan’s remote Kohistan province, after a photograph of her with a man went viral. Police say the image was doctored.

Shahzadi Rai, a transgender member of Pakistan’s Karachi Municipal Council, who has been the target of abusive trolling with deepfake images, has said they could exacerbate online gender-based violence and “seriously jeopardize” her career.

Even if audiences are able to distinguish between a real image and a deepfake, the woman’s integrity is questioned, and her credibility may be damaged, said Nighat Dad, founder of the non-profit Digital Rights Foundation in Pakistan.

“The threat to women’s privacy and safety is deeply concerning,” she said, particularly as disinformation campaigns gain steam ahead of an election scheduled for Feb. 8. “Deepfakes are creating an increasingly unsafe online environment for women, even non-public figures, and may discourage women from participating in politics and online spaces,” she said.

In several countries including India, entrenched gender biases already affect the ability of girls and young women to use the internet, a recent report found.

Deepfakes of powerful Bollywood stars only underline the risk that AI poses to all women, said Ms. Rajkumar.

“Deepfakes have affected women and vulnerable communities for a long time; they have gained widespread attention only after popular actresses were targeted,” she said.

The heightened focus now should push “platforms, policymakers, and society at large to create a safer and more inclusive online environment,” she added. — Thomson Reuters Foundation

Netflix posts viewer data on every show, film for first time

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NETFLIX, INC. is ready to tell the world how many people watch its shows.

On Tuesday, the company released global midyear viewer data for every title on its service, the first of what Netflix said will be regular reports.

The political thriller The Night Agent was the most-watched title globally in the first half of 2023, generating 812.1 million hours of viewing, Netflix said. That was followed by Season 2 of the family drama Ginny & Georgia and the debut of The Glory, a South Korean series. Ginny & Georgia delivered the biggest audience if you consider all seasons of a show.

The disclosure by Netflix — the most-detailed ever for any streaming service — follows a months-long fight between Hollywood labor unions and major studios. In the wake of two strikes, writers and actors won more compensation for their work in streaming, and their pay hinges in part on greater disclosure of US viewer data by services like Netflix.

Now, the company is giving everyone — viewers, suppliers, and competitors — a deeper look into what people are watching with the semiannual “What We Watched: A Netflix Engagement Report.”

“Over the last 16 years of streaming one constant has been people asking for more viewership data,” Netflix co-Chief Executive Officer Ted Sarandos said on a call with journalists. The lack of transparency created “mistrust over time” with creatives, he said.

For years, Netflix refused to disclose viewership figures, with other major streaming services following suit. And Hollywood’s creative community initially appreciated not being subject to the Nielsen audience ratings that shows live and die by on broadcast and cable television.

More recently, writers and producers have criticized Netflix, arguing it was hiding audience data to avoid paying more for its most successful programs.

The streaming giant has begun disclosing more data. Its reporting includes audience figures for a handful of popular titles and weekly top 10 lists revealing the most-watched movies and TV shows in English and other languages.

Netflix, based in Los Gatos, California, publishes these lists for individual countries as well, though it doesn’t include the hours viewed.

The top 10 lists have given the public a pretty good sense of what shows are popular, but don’t offer figures for the vast majority of titles available.

The data released Tuesday cover more than 18,000 titles, including thousands of films and shows that generated between 50,000 hours and 100,000 hours. — Bloomberg

PHL ranked among laggards in governance, ESG

PHILIPPINE STAR/ MICHAEL VARCAS

By Revin Mikhael D. Ochave, Reporter

THE Philippines has kept the 11th spot but at a lower overall score in a ranking of 12 Asia-Pacific countries on their performance in corporate governance (CG) and environmental, social, and corporate governance (ESG).

The 2023 CG Watch biennial survey by nonprofit association Asian Corporate Governance Association (ACGA) showed that the Philippines maintained its previous ranking in 2020, besting only Indonesia. The survey looked into the countries’ market performance and practices.

According to the report, the Philippines scored 37.6 in the 2023 ranking, down from a score of 39 in 2020, citing the country’s policy focus being “elsewhere” and the securities regulator’s “lacks resources.” 

Philippines ranks near bottom of Corporate Governance IndexAustralia secured the top spot with a score of 75.2, followed by Japan at 64.6, Singapore at 62.9, Taiwan at 62.8, Malaysia at 61.5, India at 59.4, Hong Kong at 59.3, Korea at 57.1, Thailand at 53.9, and China at 43.7. 

The rankings were based on seven categories, namely: government and public governance; regulators on funding, capacity building, and reform, and enforcement regulators; corporate governance rules; listed companies; investors; auditors and audit regulators; and civil society and media. 

ACGR data showed that the Philippines scored higher in categories such as government and public governance at 29 versus 28 in 2020; CG rules at 48 from 45; investors at 25 from 21; and auditors and audit regulators at 62 from 60. 

However, the country scored lower in terms of regulators at 25 from 27; listed companies at 48 from 55; and civil society and media at 33 from 36. 

“Our goal in CG Watch is to give a diagnosis of the health of CG systems across APAC (Asia-Pacific). More than 20 years after the Asian Financial Crisis there is no doubt that most of the region is in better shape. We hope our scores and rankings help each market to pinpoint next steps for improvement,” ACGA Secretary General Jamie Allen said. 

Meanwhile, a separate survey done by Hong Kong-based capital markets and investment group CLSA Ltd. showed that the Philippines ranked last among the 12 APAC countries in terms of the CLSA CG score. 

The Philippines came out with a score of 49.3 in the 2023 CLSA CG ranking, lower than the 50.5 score in 2020. 

“Our analysis of CG scores by thematic characteristics revealed that gender-diverse firms have the highest CG scores, followed by privately-owned enterprises, large caps and manager-run companies; while state-owned firms score the lowest,” CLSA said.

CLSA reveals CG winners and losers by sector and examines CG scores by corporate characteristics as well as CG’s relationship with broader ESG scores and shareholder value creation.

“The Asian region is characterized by extreme weather events, shifting demographics and geopolitical uncertainties. Now more than ever it has become increasingly crucial to comprehend the connection between effective corporate governance, ESG, and shareholder returns,” CLSA Head of Sustain Asia Research Seungjoo Ro said. 

Sought for comment, SEC Commissioner McJill Bryant T. Fernandez said via Viber message that the regulator has been consistent in promoting corporate governance and protecting minority investors, through policies and regulations consistent with international best practices.

“This can be attested by, among others, the recognitions from both domestic and international bodies, as well as engagements with stakeholders here and abroad,” he said.

He added that the SEC “was neither consulted nor interviewed” about the report.

“To be circumspect, the Commission will go over the entire report and commits to provide substantive comments thereon soonest,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that greater emphasis on ESG compliance is needed since it has been linked to good business practices. 

“Global and local regulators have already encouraged compliance with ESG standards for both issuers and investors even before the pandemic, which somewhat disrupted business, market, and other economic activities,” Mr. Ricafort said in a Viber message. 

“There should be greater emphasis on ESG compliance as this has become one of the important considerations by foreign investors in recent years, as ESG compliance is tied to good business practices,” he added.

Mr. Ricafort added that corporate regulators should have more funding to support more ESG compliance initiatives.

“More funding is needed to bankroll more ESG compliance initiatives amid limited financial resources of the government due to budget deficits especially since the pandemic,” Mr. Ricafort said.

Stuff To Do (12/15/23)


Araneta City brings back Fiesta Carnival

THE ICONIC Fiesta Carnival, a theme park that characterized Cubao (now Araneta City) in the 1980s and ’90s, is reopening this month in the old Shopwise building and will have rides like bump cars and indoor trains for children and adults alike. The park’s grand opening will be on Dec. 15, attended by Araneta City executives, carnival operators, and Binibining Pilipinas queens, after which there will be a colorful parade of mascots, marching band, clowns, jugglers, stilt walkers.


Big Bad Wolf goes to Davao

THE BIG Bad Wolf (BBW) Book Sale returns to Davao for the third time — marking the last leg of Big Bad Wolf’s 2023 run in the Philippine. It will take place at SMX Convention Center Davao, SM Lanang Premier from Dec. 15 to 23. With its return this holiday season, Metrobank offers the sale with exclusive perks when book shoppers pay using their Metrobank credit and debit card. This is on top of the up to 95% discount they will enjoy on books. The perks include early VIP access, as a Metrobank credit or debit cardholder can enter the book sale on Dec. 14, from noon to 10 p.m., along with one guest. Other perks include a 0% installment payment option for a three-month term with a minimum spend of P3,000 using a Metrobank credit card; dedicated payment lanes for an easier checkout; a chance to be one of the 20 winners of P20,000 cash back (for details, visit https://www.metrobank.com.ph/promos/holiday-cashback-2023 ); and earn up to P4,000 eGCs or GCash credits on any 0% installment spend (register first at mbcpc.co/morewithzeroq4 ).


The Ransom Collective, Bandang Shirley in show

MANILA-based production outfit GNN will be wrapping up the year with their annual year-end event at 123 Block in Mandala Park, Mandaluyong City, on Dec. 15, 7 p.m. onwards. The show will feature some of their favorite collaborators: The Ransom Collective, Oh Flamingo!, SOS, Ang Bandang Shirley, and Ciudad. Early bird tickets are currently on sale for P700 for a limited time only. Regular/door tickets will be available for P800. Slots can be secured via this link: bit.ly/gnnyep23.


Yuchengco Museum hosts guitar quartet concert

THE CHRISTMAS concert Paskong Cuerdas will take place on Dec. 16, 4 p.m., in the YSpace at the Yuchengco Museum, RCBC Plaza, Makati. For the benefit of Family Wellness Center Foundation, Inc., it is presented by the Yuchengco Museum and the Guitar Friends. The PIMA Guitar Quartet and soprano Stefanie Quintin will perform festive tunes in time for the Christmas season. Tickets cost P750 while students, seniors, PWDs, Yuchengco employees, and embassy employees in RCBC Plaza can enter for P550.


BP, Pintô Art Museum collaborate on a holiday art exhibit

BALLET PHILIPPINES (BP) and Pintô Art Museum have partnered for a special art exhibit featuring the work of 35 contemporary Filipino artists. The exhibit, titled “Ballet in Pintô,” will premier on the gala night of Ballet Philippines’ Christmas Fairytales on Dec. 15. The lobby of The Theatre at Solaire will be transformed into an art space where visual arts and dance meet. Pintô Founder Dr. Joven Cuanang and artist/curator Ferdie Montemayor commissioned 35 contemporary Filipino artists to produce paintings and sculptures that will feature the company’s dancers. Last July, Pintô invited the Ballet Philippines dancers to the museum’s Academy Room for a special day of art and dance. The afternoon provided the artists an opportunity to meet and study their subjects. As the dancers performed excerpts from Christmas Fairytales, the artists made studies for their eventual works. The finished works will be on exhibit from Dec. 15 to 17, during Ballet Philippine’s performances of Christmas Fairytales. The proceeds earned from the upcoming exhibition will benefit the causes supported by the Pintō Museum and Ballet Philippines. Tickets to Christmas Fairytales will be available at discounted prices for Metrobank credit card holders. Metrobank is offering 20% off on select seats at all Ballet Philippines shows until March 10, 2024, which includes the Christmas show which will run from Dec. 15 to 17 at the Theatre at Solaire. Set in a world of magic and dreams, Christmas Fairytales follows Little Tala, who is tasked by The Master of Time to fix lost fairytale characters in order to go home. Tickets to the show can be booked via TicketWorld or via Ballet Philippines at info@ballet.ph.


Eastwood City’s Holiday Lightscapade

The open park of Eastwood City welcomes visitors to a luminous wonderland at night. Until Dec. 30, the mall’s open area turns into a kaleidoscope of lights every hour from 6 to 10 p.m., set to rhythms that families and friends can relax or even dance to. Come on Dec. 15 or Dec. 24 to catch Eastwood City’s fireworks displays illuminating the skies.


Taiwanese math rock trio to perform in Manila

TAIWANESE experimental band Elephant Gym will perform for a second time in Manila on Dec. 16 at the Balcony Music House in Makati. The math rock outfit will once again display their ability to interlace various threads of jazz, electronic, and classical into a singular patchwork of contemporary math- and post-rock. They first visited Manila in 2018 as one of the headlining acts of All of The Noise, a mini-music festival organized by The Rest Is Noise PH, which is also organizing their upcoming one-night-only performance. Their special guest at the show will be Filipino indie rock outfit Musical O. Elephant Gym’s forthcoming album, World, will mark their 10th anniversary as a band. Regular tickets for their Manila performance are available for P1,500 via bit.ly/elephantgymmanila.


Parokya ni Edgar to perform at Batangas Lakelands

BATANGAS Lakelands and Traverse Entertainment will present Parokya ni Edgar Live at Batangas Lakelands on Dec. 16. Parokya ni Edgar is best known for their hit songs “Harana,” “The Yes Yes Show,” and “Bagsakan.” The venue is Batangas Lakelands, a 20-hectare event destination and active-lifestyle park in Balete, Batangas. This concert will also feature special guest performers Taylor Sheesh, Lucas Garcia, Lunar Lights, Bea Mae Sacramento, Luke Daniel, James Andrew, Fumiya, and the FAITH Colleges Dance Company. Tickets will include a complimentary food voucher worth P200. Tickets are available via TicketWorld.


Hanabishi to give away free merch at Asia Pop

APPLIANCE brand Hanabishi Appliances will join the Philippine P-pop and K-pop communities as they come together for the Asia Pop Christmas Carnival on Dec. 17 at the Quantum Skyview in Gateway Mall 2, Quezon City. The brand will have its own booth at the venue and will be giving away free merchandise to fans. The Asia Pop Christmas Carnival will feature performances from top P-pop and K-pop groups, as well as singing and dancing competitions, games, and raffles. Admission to the Asia Pop Christmas Carnival is free.


Nuvali sparkles with its annual Fountain of Lights

THE NUVALI Fountain of Lights, an immersive experience on the grounds of Nuvali in Laguna, officially began in mid-November and is ongoing until January. The leveled-up water show is titled “Seaside Serenade: Muses And Creatures,” and was put up for the benefit the Priceless Planet Coalition, a global environmental organization committed to restoring 100 million trees by 2025. Around the lakeside view is a host of activities, from the newly installed LED Swing by Avida to Coffee Bean’s stand-alone store. The Nuvali Fountain of Lights is held on Fridays to Sundays until Jan. 14 from 6 to 9 p.m.


Alviera holds 1st Northern Floats Festival in Pampanga

PORAC, Pampanga is brighter and more colorful this holiday season as Ayala Land and Leonio Land present the first-ever Alviera Northern Floats Festival. Ongoing until Dec. 17, the festival will highlight larger-than-life floats which introduce Alviera’s Christmas characters: Alvie, Sandy, Christoff, Sparkles, Fin, and the Jingle Belles. There will be carnival-themed activities like game booths, zorbs, a kite display, as well as live music and food stalls. Festival goers can also enjoy special access to the SandBox adventure destination, bike trails, and the exclusive Alviera Country Club. For P125, guests can access the Alviera Northern Floats Festival and enjoy one Sandbox ride. For P375, guests can enter with a P150 food and drinks voucher, a P100 voucher for activities, and one SandBox ride. Meanwhile, for P525, guests get all that plus access to the Giant Swing, Free Fall, and Roller Coaster Zipline. The “ultimate” festival experience costs P725, inclusive of a one-day Alviera Country Club guest pass with complimentary food and drinks. Tickets are available via Tickelo. Visit the official Alviera Facebook page for more information.

ACEN signs P11-B sustainability-linked loan facility

AYALA-LED ACEN Corp. inked an P11-billion sustainability-linked loan facility with the Asian Development Bank (ADB) and the Bank of the Philippine Islands (BPI) to finance solar projects.

“This financing is not just a loan; it is a clear testament of our unwavering commitment to our sustainability ambitions as we set the stage for accelerated growth in the renewables sector,” ACEN President and Chief Executive Office Eric T. Francia said in a stock exchange disclosure on Thursday.

He said that the loan is an “instrumental step” for the company’s ambitious target of reaching an installed energy capacity of 20 gigawatts by 2030.

Corazon G. Dizon, chief finance officer of ACEN, said that the loan “aligns with our priorities and enables us to consistently invest in sustainable energy infrastructure towards our net zero transition goal.”

The company also said that the facility supports its aspiration to “become the largest listed renewables platform in Southeast Asia and will contribute to the development of solar projects.”

In a separate disclosure, ACEN said that it had subscribed to 22.33 million common shares with a par value of P1 per share or a total par value of P22.33 million of its subsidiary Belenos Energy Corp.

It also subscribed to 200.93 million redeemable preferred shares with a par value of P1 or a total par value of P200.93 million.

The subscription will be issued out of the increase in the authorized capital stock of Belenos, which is ACEN’s special purpose vehicle for development projects in the Philippines.

In total, ACEN’s subscription is valued at P223.25 million with an initial payment of P25 million.

“The acquisition will allow ACEN to have a significant ownership in Belenos and is meant to implement Belenos’ investment into a potential renewable energy project,” ACEN said.

The company also said that it had joined as a member of global group Powering Past Coal Alliance (PPCA) at the Conference of the Parties or COP28.

“It is an opportune time for ACEN to join PPCA. As ACEN continues to lead pioneering initiatives such as the world’s first market-based Energy Transition Mechanism and the recently announced Transition Credit pilot, there is much benefit to connecting with the PPCA network to further these innovative transition initiatives,” Mr. Francia said.

With the induction, ACEN will commit to a “healthier, cleaner planet, marking a significant stride in the global movement towards a sustainable future,” it said.

To date, ACEN has around 4,430 megawatts of renewable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia.

On Thursday, shares of the company rose by three centavos or 0.68% to P4.46 apiece. — Sheldeen Joy Talavera

Entertainment News (12/15/23)


KAIA to stage first headline concert

THE P-POP group KAIA will hold its first major concert, on Dec. 19 at the Teatrino Promenade in Greenhills Shopping Center, San Juan. Dubbed KAIA IS HERE: 1st Solo Concert, the concert will feature the all-girl ensemble performing some of the crowd favorites and new songs live, including individual and group segments made specifically for the fans. Tickets to the concert are available at TicketNet and its physical outlets nationwide. Official merch is also bundled with the tickets.


QCinema Best Short Film to screen in Sundance

THE EXPERIMENTAL sex dramedy Bold Eagle by director Whammy Alcazaren, which won Best Short film at the QCinema International Film Festival 2022, has been selected for Sundance Film Festival 2024’s Midnight Short Film Program. Out of a record 12,000 entries submitted this year, Bold Eagle will be screening alongside 53 other short films in competition. With a running time of 16 minutes, it tells the story of Bold, an “alter” or someone who anonymously posts nudes and performs lascivious acts over the Internet, suffering an existential crisis during the pandemic. Featured in the film are the voices of Gio Gahol and Ricky Davao. Bold Eagle will have its Sundance premiere on Jan. 22, 2024.


Tate McRae releases sophomore album

THE SECOND album of multi-awarded singer-songwriter Tate McRae, Think Later, has been released via RCA Records. With 14 tracks, the new record showcasing Ms. McRae’s vocal talent. It explores the feelings of falling in love and embracing the raw emotions that result. Think Later is executive produced by Ryan Tedder and features writing collaborators and producers including Amy Allen, Jasper Harris, Greg Kurstin, ILYA, Savan Kotecha, and more. It is out now on all streaming platforms.


Bridgerton set for a two-part Season 3

NETFLIX and Shondaland have announced that Bridgerton will return for a third season in 2024. The season will be split into two four-episode parts, with Part 1 premiering on May 16, 2024, followed by Part 2 on June 13, 2024. As previously announced, the season will focus on the budding romance between Penelope Featherington (Nicola Coughlan) and Colin Bridgerton (Luke Newton), affectionately known by fans as #Polin.


Imago, Ebe Dancel reveal new song collaboration

TO END 2023 strong, Imago will be dropping a comeback single, “Magbabalik,” featuring one of OPM’s finest vocalists today, Ebe Dancel. The band’s latest song also introduces their new vocalist, the former solo artist Kurei, who is also part of Soupstar Entertainment. Written by Imago’s bassist, Myrene Academia, “Magbabalik” explores themes of loss and redemption. “When we made the demo, we thought it would be great to come and have Ebe sing with Kurei on it. The song is about losing things,” she said in a statement. The collaboration with the former Sugarfree frontman was a natural fit for the band. The song is now out on all streaming platforms.


Hong Kong youth horror series now available on Viu

THE TOP-RATED horror series Left On Read from Hong Kong is now available on Viu Philippines. The 15-episode series tells the story of a group of students who are added by an Admin to a chat group called “Read It or Die.” The Admin forces them to play a killing game wherein they must remove an unknown target; and anyone who fails to reply to the other members’ messages will instantly die. It features Marf Yau and Yoyo Kot, members of the Hong Kong girl group Collar. The Viu app can be downloaded via Apple Store or Play Store for free.

Del Monte Pacific incurs net loss

LISTED Del Monte Pacific Ltd. (DMPL) recorded a net loss in the second quarter of its fiscal year, led by lower sales in the United States and a decline in export receipts.

In a regulatory filing on Thursday, DMPL said it posted an $8 million net loss during the August-to-October period, a reversal of the $50 million net profit last year.

“We faced a tough quarter as lower pineapple supply, higher costs and consumer spending trends impacted our margins and operating performance. In addition, higher interest charges also affected the group’s bottom line,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said. 

“We expect that consumer spending will continue to be curbed by persistently higher living costs, mainly driven by high energy prices and rising borrowing costs. To address challenging market conditions, we will focus on effectively managing our inventory over the next nine to 12 months. Additionally, we will explore opportunities to enhance our capital structure, reduce leverage, and minimize interest expenses,” he added. 

According to DMPL, it logged a 5% decline in sales to $667.1 million due to 2% lower sales in the US by subsidiary Del Monte Foods, Inc. (DMFI) worth $494.6 million, and lower exports of fresh and packaged pineapple by Del Monte Philippines, Inc. (DMPI). 

“DMFI grew its leading market share positions across its core businesses of canned fruit, vegetable and tomato with higher-margin branded retail products increasing as a proportion of overall mix,” DMPL said. 

In the second quarter, Philippine sales fell 1% to $107.8 million, but were flat in US dollar terms.

“Sales in the culinary and beverage segments experienced growth, driven by the launch of strategic campaigns. Spaghetti sauce’s birthday campaign, including the limited edition birthday collectibles, resonated well with consumers as it reinforced Del Monte’s value amidst the inflationary environment,” DMPL said.

In the first half, DMPL recorded a $22 million net loss compared to the $19 million net profit in the same period a year ago. 

DMPL said its sales rose 2% to $1.2 billion led by higher sales in the US but posted a 28% decline in gross profit to $244 million due to higher costs. 

Meanwhile, DMPL said it is expecting to deliver higher branded revenue growth for fiscal year 2024.

Amid the uncertainty, the company added that it is implementing various strategies such as optimizing packaging materials, implementing power and fuel initiatives, making investments to enhance efficiency, productivity, and wastage minimization, and introducing product bundling initiatives in distribution centers.

Shares of DMPL at the local bourse fell 70 centavos or 9.46% to P6.70 apiece on Thursday. — Revin Mikhael D. Ochave

Mattel to make American Girl movie after Barbie success

MATTEL said on Wednesday it was planning to make a live-action feature film based on its American Girl doll line with Paramount Pictures and Temple Hill Entertainment, after the box-office success of its Barbie movie earlier this year.

Shares of the toymaker rose marginally in extended trading after it also said Lindsey Anderson Beer, who wrote the Netflix film Sierra Burgess is a Loser, would write the screenplay and produce the film. Margot Robbie-starrer Barbie, released in July, recorded the biggest opening of the year, which Mattel in October said was expected to contribute more than $125 million towards its Dolls segment’s key gross billings measure in 2023.

American Girl was founded in 1986 by Pleasant Rowland, a teacher-turned-entrepreneur who set out to celebrate girlhood with beautiful dolls and adventurous books that would nourish a child’s imagination and provide education and entertainment.

Paramount Pictures, a unit of media and entertainment company Paramount Global, has produced several film franchises including Mission Impossible, while Temple Hill Entertainment has produced films including The Fault in Our Stars. — Reuters

MPTC eyes expansion of expressway in Cebu

METRO Pacific Tollways Corp. (MPTC) is considering an expansion of the Cebu–Cordova Link Expressway (CCLEX) that will connect to major city roads in Metro Cebu, the company’s president said.

“We are looking at Cebu not as a new [project] but as an extension of CCLEX. We need a connection to the city road. On the other side — because what we only did was the bridge — there is no connection to the airport [and] to local roads. We need to connect to local roads,” Rogelio L. Singson, president and chief executive officer of MPTC, told reporters on the sidelines of a forum.

The 8.9-kilometer CCLEX connects Mactan Island through Cordova town to the mainland of Cebu through south road properties.

“We’re just finalizing it with the DPWH (Department of Public Works and Highways) to get the alignment,” Mr. Singson said.

The company is also considering a joint venture to pursue the plan and other arrangements, Mr. Singson said.

“For now, [there is no project cost yet] because it will depend on the alignment as some portions are most likely viaducts and right of ways will run through waterways,” he added.

In November, the company said it would postpone its initial public offering plan to 2025 as MPTC weighs its options amid a plan to form a joint venture company with San Miguel Corp.

With this development, MPTC is looking to tap local and foreign banks as it seeks to raise fresh funds after putting its planned market listing on hold.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Spotify to host Warner Bros. Discovery podcasts

WARNER BROS. DISCOVERY said on Tuesday that music streaming giant Spotify would host the media conglomerate’s podcasts as part of its monetization drive.

Spotify’s enterprise podcast platform, Megaphone, will host Warner Bros. Discovery’s podcasts which will be monetized through Spotify Audience Network.

The audience network is an advertising marketplace for podcasts, first launched in 2021. Over the past 12 months, advertiser participation at the audience network has grown over 45%.

Warner Bros. Discovery chief executive officer David Zaslav previously spoke at a conference about bundling offerings to create a better consumer experience.

Reuters reported in November that Verizon is planning to offer ad-supported versions of Warner Bros. Discovery’s Max streaming services and Netflix for about $10 a month combined instead of about $17, furthering a push towards bundling. — Reuters

Some footnotes to ASEAN+3: Economic outlook and financial stability

HERT NIKS-UNSPLASH

(1st of two parts)

Until I retired in 2019, I was one of the deputies of central banks and ministries of finance in the ASEAN+3 region who, over the last 20 years, tried putting together the various components of the regional financing mechanism that we now call the $240-billion Chiang Mai Initiative Multilateralization (CMIM).

Against the backdrop of the Asian Financial Crisis in 1997-98, our principals issued a directive in Chiang Mai, Thailand in 1999 to strengthen regional cooperation and build a regional safety net. It was imperative to complement and strengthen the global financial facilities provided by the International Monetary Fund (IMF). It was a long journey of spirited debates and backroom negotiations on the amount of regional financing, distribution of shares and voting powers, and de-linking a portion from an IMF adjustment program, if necessary, to make it quick disbursing and more flexible. And more debates on the organizational structure on how financial stability would be delivered.

That is how the ASEAN+3 Macroeconomic Research Office (AMRO) was formed, with its own staff of economists and analysts to do independent, strategic regional surveillance. Surveillance provides the basis for assessing the risks and challenges that could trigger a potential balance of payments problem and warrant the activation of the CMIM. CMIM began with bilateral swap arrangements with a modest initial funding of $80 billion, until it was multilateralized and increased by 50% to $120 billion, and later doubled to $240 billion. The bigger +3 countries — China and Hong Kong, Japan, and South Korea —contributed the largest chunk, followed by the ASEAN 5 (Indonesia, Malaysia, the Philippines, Singapore, and Thailand), and in varying amounts according to their financial capability, the rest of the ASEAN 10 (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam).

The idea was based on the principle of self-reliance, that when national safety nets, such as the member countries’ foreign exchange reserves, are not sufficient and bilateral swap arrangements fall short of the requirements, we could use a regional financing mechanism before the ASEAN+3 constituent countries run to the Fund for help. This is crucial because any amount from Washington is covered by conditionalities — lots of conditionalities — including the need for policy and structural reforms. Since the ASEAN+3 economies hold trillions of dollars together, it makes sense to create a regional financing arrangement that could be tapped anytime based on protocols.

AN ADVISORY PANEL AND REPORTS
To ensure an independent AMRO, we formed the Advisory Panel to be composed of senior government and central bank officials, and respected academicians and researchers. Country reports, the AMRO Regional Economic Outlook (AREO), and, starting this year, the ASEAN+3 Financial Stability Report (AFSR) are discussed with the Advisory Panel during its quarterly meetings. The panel is expected to provide an open and frank exchange of perspectives on these staff outputs, to serve as a second pair of eyes and, in the process, to achieve a more independent assessment of the region.

For two years, 2023 to 2025, the Bangko Sentral ng Pilipinas nominated me for, and the 10 ASEAN member countries voted me into, the six-member Advisory Panel. During the initial meeting of the panel early this year, I was elected to chair the meetings for a period of one year until the chairmanship is passed on to the next person.

It was in that capacity that I attended the Annual Meeting of Central Bank and Finance Deputies in Kanazawa, Japan during the first week of December, and conveyed to the deputies the general observations of the Panel. We expressed the view that with the AREO and now, the twin publication AFSR, in the mainstream, we are more prepared to translate the idea of closer regional financial cooperation into something concrete and functional. In case the CMIM is activated, this will happen with full information and assessment of the real situation on the ground. AMRO staff are annually sent on missions to member countries to collect local data and perspectives to empower them in writing country reports and advising member economies on appropriate policy options. We can then assure our taxpayers that public money is used judiciously to help each other, that due diligence is rigorously done.

GENERAL OBSERVATIONS
What were the general observations of the Panel?

We all agreed that we have weathered the global pandemic and geopolitical risks relatively well, without the need for exceptional external financing support.

And it looks like we can put behind us the headwinds that hit during the pandemic, when almost all the world was locked down and business activities were at a standstill. Economic scarring was deepest in the labor market. But based on the latest data, there have been brighter spots, some silver lining like recovery efforts taking root in many economies. Thus, instead of the headwinds, we now face crosswinds that could at times produce some disturbances on the sides.

But the balance of risks remains on an upward drift.

If global value chains foul up, it is indeed possible to see a resurgence in global commodity prices, and if the US Fed remains hawkish, regional currencies could weaken. Recent disinflation may not be enough to put behind us higher interest rates without linking this to financial stability. While AMRO’s assessment of the economic recovery in China is more optimistic than the Fund’s based on its fixed asset investment, industrial profits, and real consumer spending, it was also correct to list China’s slower recovery as a short-term risk with low probability. The US-China geopolitical tension should truly be a long-term risk with low likelihood because it is against everybody’s long-term interest. Making noise is far superior to fighting a war.

TROUBLING PUBLIC DEBT
At the same time, the Advisory Panel observed that due to pandemic exigencies, public debt has risen to some disturbing proportions, together with both corporate and, most especially, household debt. The region’s total debt to GDP ratio has steadily risen, peaking at 325% during the pandemic before coming down to 299%, which is still a source of concern.

AMRO stress tested and found that fiscal sustainability and financial stability may not exactly be in clear and present danger. While the issue of indebtedness across the household, corporate, and sovereign debt was amplified in the AFSR, it would also be imperative to impress upon the authorities that if allowed to accumulate more, and at a more rapid pace, the debt issue could graduate to the front and center of public policy concern.

That is why, while the debt issue continues to evolve, it would be worthwhile to focus on those debts involving the non-bank financial institutions which may be outside the regulatory and supervisory ambits of some central banks and banking regulators. Very little is known about them, including the extent of their lending to banks and other corporates — that which involves non-trivial maturity and currency transformation. To the extent that they are related to banks and, therefore, the whole entity qualifies as a financial conglomerate, data gaps may exist and should be addressed to allow for stronger risk management.

Thus, while we should not worry as yet, neither should we be complacent.

For instance, with the current uncertain and volatile external environment, many countries have begun the cycle of de-risking and, in some cases, decoupling. Countries tend to rely more on domestic supplies and less on imports. Moreover, global demand also appears to shift from goods to services and this is quite noticeable in the US and China. What this holds for the region should be examined and addressed.

DEEPER ASSESSMENT
True, economic recovery seems to be gaining more ground in the major economies. The question reduces to how much would be the net impact be on the ASEAN+3. AMRO will need to take a deep dive into these two developments so we can have a deeper assessment of the regional outlook for designing adjustment policies, should they be necessary.

In the financial sector, the AFSR is truly a welcome knowledge resource. It made the point that higher policy rates, which impinge on the bank clients’ ability to service their debt, could raise their non-performing loans. However, it cuts both ways in that the banks’ net interest margins could also increase. AMRO should be looking into this point at whether there are lags involved from interest rate adjustments to both lending and deposit.

Finally, while we have had access to monetary and fiscal tools as well as prudential tools in the last few years, it seems we now realize the limitations of traditional tools. The point is that to begin building up monetary and fiscal space again, we may need to consider a broader range of macroprudential tools. The point is to enhance the attractiveness of the region through purposeful structural and policy reforms — on governance, on climate change, on green finance, and add to that, stronger fiscal consolidation and debt management — and that would truly prepare us for the cycle of more sustainable regional economic growth.

(To be continued.)

 

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.

Pianist Chloe Flower covers the range of festive emotions in ‘popsical’ hit

AMAZON

IT MAY SOUND like a frozen ice for summer, but for US pianist Chloe Flower “popsical” is her trademark blend of pop and classical that is tapping into demand for holiday music for thoughtful times.

“I wanted to create something for everyone because I know the holidays aren’t always happy,” said Ms. Flower of her festive record Chloe Hearts Christmas.

“It kind of ebbs and flows through happy and sad and melancholy and hopeful,” she added.

Ms. Flower, has come up with a style she says does not belong in the usual categories — hence the name popsical.

Now aged 38, she has played the piano since she was two and cannot imagine life without it.

“I don’t think there’s anything else I could do for 14 hours a day and not want to die,” she said.

Signed to Sony Music Masterworks, Chloe’s first solo album was released in 2021.

Her public profile had already surged after rapper Cardi B hired her in 2019 to accompany her at the Grammy Awards on a piano that once belonged to the legendary performer Liberace.

The 16 tracks of Chloe Hearts Christmas, in her popsical style, include Tchaikovsky’s “Dance of the Sugar Plum Fairy,” Joni Mitchell’s “River,” and BTS singer V’s “Christmas Tree.”

Born in Pennsylvania and of Korean heritage, Flower relishes the cultural exchange South Korea’s BTS boy band has spurred.

“I love (how) BTS (have) brought Asian culture to America. I see friends singing in Korean and they have no idea what they’re saying, but that’s so cool, right?,” she said. — Reuters