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China coast guard repeats opposition to Philippines’ grounded warship

CARLOS DE SOUZA-UNSPLASH

BEIJING (UPDATE) – China’s coast guard said it had warned and followed Philippine vessels on Friday near the Second Thomas Shoal in the South China Sea that were carrying out a resupply mission to a grounded warship on the atoll.

Disputes over the grounded World War Two-era warship Sierra Madre have heated up after China sprayed a Philippine vessel with a water cannon on an Aug. 5 resupply mission, with Philippines rejecting Beijing’s repeated calls to tow away the ship.

Two Philippine supply boats and two coast guard ships entered the waters adjacent to the shoal without the permission of the Chinese government, the coast guard said.

The Second Thomas Shoal, known in China as Renai Reef, and Ayungin in Manila, lies within the Philippines’ exclusive economic zone and is home to a handful of troops living aboard the warship, grounded there in 1999 to reinforce its sovereignty claim.

China’s coast guard said it issued a stern warning to the Philippine vessels and followed them throughout the journey, repeating China’s “firm” opposition to the Philippines’ transportation of “illegal” construction materials to the grounded warship.

Relations between the two countries froze over the South China Sea under Philippine President Ferdinand Marcos Jr., with Manila pivoting back to the United States, which supports the Southeast Asian nation in its maritime disputes with China.

Reuters had reported that Manila is in talks to develop a civilian port in the remote northernmost islands of the Philippines, which is less than 200 km (125 miles) from Taiwan.

The Southeast Asian nation also upgraded bilateral ties with Australia to a strategic partnership amid rising security challenges, including China’s stronger presence in the South China Sea. — Reuters

DBM releases P3 billion for fuel subsidy program

PHILIPPINE STAR/ MIGUEL DE GUZMAN

The Department of Budget and Management (DBM) on Friday said it has approved the release of P3 billion for a fuel subsidy program for public utility drivers and transport operators affected by the recent spike in oil prices.

Budget Secretary Amenah F. Pangandaman said a one-time fuel subsidy will be given to over 1.36 million workers in the transport sector.

A P10,000 fuel subsidy will be given to operators of modernized public utility jeepney (PUJ) and modernized utility vehicle express (UVE).

Drivers of traditional PUJs and UVEs, public utility buses, minibuses, taxis, transport network vehicle services, tourist and school transport services, and Filcabs will receive a subsidy of P6,500.

Tricycle drivers will receive P1,000 as fuel subsidy, while delivery service riders will get P1,200.

“Transportation is the lifeblood of our economy. We will make sure that they are given the appropriate assistance from the government,” Ms. Pangandaman said in a statement.

The Landbank of the Philippines (LBP) will distribute the subsidies through the identified modes of payment upon instruction of the Land Transportation Franchising and Regulatory Board (LTFRB). — Miguel Hanz L. Antivola

PLDT, Smart back government’s nationwide digitalization push with GoDigital Pilipinas

From L-R: Armani Alcayaga, Executive Director - GDP, Director June Vincent Gaudan, DICT, Alexis Bernardino, PLDT Enterprise, Ida Tiongson, WomenBiz and Prulife, Jaypee Soliman, Unionbank, Frankie Antolin, IBPAP, Euan Toralballa, PLDT Enterprise, Vince Rodriguez, PLDT Enterprise, and DICT Regional Dir. Reynaldo Sy.

Leading integrated telco network PLDT Inc. (PLDT) continues to bolster the Government’s digitalization thrust with its support for the GoDigital Pilipinas (GDP) movement.

“This is a testament to the PLDT Group’s continued commitment to help the Government in its initiatives to drive the nation’s digital transformation and ensure that no Filipino is left behind,” said PLDT and Smart First Vice President and Head of Enterprise and International Business Groups Mitch Locsin.

GDP is a movement under the Government-mandated Presidential Private Sector Advisory Council (PSAC) formed in July 2022, with PLDT and Smart President and CEO Alfredo S. Panlilio as one of its founding members under the Digital Infrastructure pillar.

PLDT, its wireless subsidiary Smart Communications, Inc. (Smart), its B2B arm PLDT Enterprise and PLDT Home threw their full support behind the launch of GDP’s nationwide caravan, whose North Luzon leg recently kicked off in La Union. PLDT is the official broadband partner of GDP.

During the kickoff events, PLDT and Smart officials also shared their expertise in plenary discussions before an audience composed of local business owners, students, and government representatives, and spoke before students from Don Mariano Marcos State University in a University Talk. PLDT also provided connectivity for a Web3.0 gaming event.

An initiative of the Digital Infrastructure pillar of PSAC, GDP heeds the call of the government to address the risk of a digital divide by promoting digital literacy and building a sustainable digital ecosystem. As part of their nationwide campaign, GDP is set to hold launch activities in Bicol, Cebu, Davao and the Bangsamoro.

“GoDigital Pilipinas Movement is an agile movement composed of several convenor organizations and supporting companies that will drive national digital transformation. GoDigital envisions to be the key enabling partner of government, especially of the local government units,” said Armani Alcayaga, Executive Director and Trustee, GoDigital Pilipinas Movement.

Supporting the Government’s thrust to empower citizens through technology and create a connected and inclusive society are PLDT and Smart’s integrated fixed and wireless networks across the country.

As of end-March 2023, PLDT had expanded its total fiber footprint to over 1.1 million kilometers, consisting of over 231,000 kilometers of international fiber and over 874,000 kilometers of domestic fiber.

This fiber infrastructure also supports Smart’s 3G, 4G/LTE and 5G network, which covers 97 percent of the country’s population as of end-March 2023.

PLDT and Smart’s continued efforts to transform their integrated fixed and wireless networks contribute to the PLDT Group’s endeavors to provide connectivity to all, and to anchor initiatives on the United Nations Sustainable Development Goals (UNSDG) particularly on SDG No. 9 – Industry, Innovation, and Infrastructure.

 


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PLDT Enterprise empowers leaders to realize their visions and take their businesses further

PLDT Enterprise introduces the Visionary Leaders of its latest Further Together campaign. From left to right: Jacqe Gutierrez, CEO & Co-founder of Happy Skin Cosmetics, BLK Cosmetics, and Seoul White Korea; Judd Balayan, Chief Operating Officer and Group Chief Financial Officer of DDB Group Philippines; Dr. Diana Edralin, General Manager of Roche (Philippines) Inc. and President of Pharmaceutical & Healthcare Association of the Philippines; Sonya Garcia, Owner of Sonya's Garden; and Marivic Del Pilar, President and General Manager of Victory Liner.

Visionary leaders are agents of change, aided by their grit and gift of clearly seeing the road ahead. They are unafraid to stand on the shoulder of giants, to outwork others, and to go further to see their visions become reality.

PLDT Enterprise, the B2B arm of the largest fully integrated telecommunications company in the Philippines PLDT, has found some of these driven visionaries who have translated their aspirations to trailblazing and successful businesses that spurred economic activity, created jobs, and changed lives.

Meet this special ensemble of leaders who found opportunities in the face of tough challenges, focused on the solution and not the problem, and prioritized people and products over profits.

Former banker Sonya Garcia turned a painful chapter in her life to recreate her happy place. She brought to life the vision of her grandmother’s garden Capiz, sustaining the continued growth of the place where she is happiest, in the form of Sonya’s Garden, a sanctuary that pioneered the bed-and-breakfast business in the country.

Dr. Diana Edralin, General Manager of the Philippine operations of pharmaceutical giant Roche (Philippines) Inc. and President of the Pharmaceutical & Healthcare Association of the Philippines (PHAP), through her purpose-driven leadership, is guiding her company in leading the transformation of the healthcare ecosystem by ensuring access to innovative solutions that ensure better patient outcomes and improved quality of life. She is a strong advocate of nurturing and mentoring a diverse, inclusive, and equitable workforce—with the primary goal of not just business success but having a lasting impact on employees’ lives, but also the patients’, and ultimately the society.

Marivic del Pilar, President and General Manager of Victory Liner, one of the biggest bus companies in the country, isn’t afraid to embrace new technology to allow Victory Liner better cope with the challenges posed by the pandemic and improve service to commuters. The mobility restrictions from the pandemic tested Victory Liner’s business model initially, but it has since recovered with her vision to move forward and adapt to digital solutions.

As Chief Operating Officer and Chief Financial Officer of the DBB Group in the Philippines, Judd Balayan helped the country’s first integrated marketing communication and services network navigate the rough waters spawned by the pandemic by prudently managing group finances, winning new accounts, and focusing on staff welfare and health. He believes energizing, engaging, and elevating people focusing on the product is key to success during these challenging times.

The decade that Jacqe Gutierrez, CEO and co-founder of Happy Skin Cosmetics, BLK Cosmetics, and Seoul White Korea, spent with a multinational brand handling beauty products, molded her vision of developing cosmetics with the Filipina in mind. Those years gave her the space to create something real that brings joy to the customers. As an entrepreneur, she believes that local brands can compete in the international market. Like many visionaries, Gutierrez is happiest when she can give back by providing people opportunities to be better.

Even out-of-the-box thinkers who push boundaries need help to realize their vision–a leader like PLDT Enterprise who is highly focused on the task, equipped with a myriad of digital solutions, tested problem-solving prowess, and a deeply ingrained belief that “together, we could move further.”

“Given our digital footprint, our expansive network, the suite of solutions we offer, and our decades long experience, we are proud to say that we are the go-to digital transformation ally for anyone’s business – from the largest enterprises to the humbly thriving,” says Mitch Locsin, PLDT and Smart First Vice President and Head of Enterprise and International Business Groups.

Locsin highlighted that the past efforts of PLDT Enterprise fortify its network infrastructure and technological capabilities to provide the right digital solutions for enterprises weathering market disruptions. The group has and continues to expand its expertise in the technology landscape by securing more certifications in domain services.

“Our focus is always our customers. We firmly believe that together, we can go further together in growing their business and making their visions a reality,” Locsin adds.

Watch PLDT Enterprise’s newest Further Together campaign video here.

 


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Board approves minimum wage hike for Calabarzon

Workers in Cavite, Laguna, Batangas, Rizal, and Quezon provinces will see their minimum wage increase by P35-P50 starting Sept. 24. -- Photo by KJ Rosales, The Philippine Star

A REGIONAL wage board approved an increase in the daily minimum wages of workers in the Cavite, Laguna, Batangas, Rizal, and Quezon (Calabarzon) provinces, the Department of Labor and Employment (DoLE) said on Thursday.

The Regional Tripartite Wages and Board in Region IV-A (Calabarzon) issued a wage order which provides a 9-11% increase from the current daily minimum wage rates, ranging from P35 to P50 depending on the geographical area and labor sector.

The higher daily minimum wage will take effect in Calabarzon on Sept. 24, the DoLE said.

Around 719,704 minimum wage earners in the region, which is considered a major manufacturing hub, are expected to benefit from the increase.

For non-agriculture workers, the daily minimum wage will increase to P520 for those in the extended metropolitan area, and P479 for those working in component cities and first-class municipalities.

Non-agriculture workers in second- and third-class municipalities will now receive P425 a day, while those in the fourth, fifth and sixth municipalities will get a P385 daily wage.

For agriculture workers, the daily minimum wage will now be P479 for those in the extended metropolitan area and component cities, and P425 for first-class municipalities. The daily wage for agriculture workers in the second- to sixth-class municipalities will increase to P385.

Meanwhile, the daily wage for workers in retail and service establishments with not more than 10 workers will increase to P385 from the current P350.

Agricultural workers in the new cities of Calaca, Batangas, and Carmona, Cavite will receive a P89 increase in their daily minimum pay after being converted from first-class municipalities to cities.

The DoLE said the Calabarzon wage board’s order was submitted to the National Wages and Productivity Commission on Sept. 4 and was affirmed by the body on Sept. 5.

“The (wage) increase… resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities,” the DoLE said.

The Labor department said about 1.6 million workers earning above minimum wage may also indirectly benefit from the wage adjustment, as companies will correct the wage distortion.

However, the approved wage hike is significantly lower than the petitions filed by various labor groups.

For instance, the Worker’s Initiative for Wage Increase (Win for Win) in March filed a petition asking the Calabarzon wage board to increase the region’s daily minimum wage to P750 to help workers cope with soaring prices of basic goods.

The group sought wage hikes of P280, P321, P360 and P400 for the four wage classes in Calabarzon.

“The meager increase granted by the wage board in Calabarzon and even in the (National Capital Region) last few months only showed how futile the regional wage fixing mechanisms is in addressing the widening gap between workers’ wages and the cost of living,” Partido Manggagawa Chairman Renato B. Magtubo said in Viber message.

Josua T. Mata, secretary general of Sentro ng mga Nagkakaisa at Progresibong Manggagawa, said the approved increase is not enough for workers to recover the diminished value of their wages.

“Clearly, it’s not a real wage increase,” he said in a Viber message. “Indeed, the regional wage-setting mechanisms that we have never fails to disappoint the workers.”

Mr. Magtubo called on Congress to fast-track deliberations on legislated wage hike proposals, which he said could help workers deal with the rising prices of basic commodities.

“It is also high time for Congress to take a serious look at the regional minimum wage fixing mechanism, which most labor groups in the country want to be reviewed or abolished,” Mr. Magtubo said.

In March, Senate President Juan Miguel “Migz” F. Zubiri filed a bill that seeks to increase wages of all workers by P150.

Labor Secretary Bienvenido E. Laguesma has said he would leave it to Congress to decide on legislated wage hike proposals. — John Victor D. Ordoñez

Australia PM says new strategic partnership to strengthen ties with Philippines

Australian Prime Minister Anthony Albanese offers flowers during a wreath laying ceremony at the monument of Dr. Jose Rizal in Manila on Friday, Sept. 8, 2023. Prime Minister Albanese's visit was the first by an Australian prime minister since 2003. -- Photo by KJ ROSALES/The Philippine Star

MANILA – Australian Prime Minister Anthony Albanese said on Friday a new strategic partnership his country will sign with the Philippines will strengthen bilateral ties between the two nations.

Albanese spoke during a bilateral meeting with his Philippine counterpart Ferdinand Marcos Jr., who said the Philippines and Australia’s close relationship was “terribly important.”

“The new strategic partnership that we will sign today will strengthen the bilateral ties that we’ve had for 77 years,” Albanese told Marcos.

Albanese’s visit to the Philippines is the first bilateral visit by an Australian leader in 20 years, after a period of renewed tension between the Philippines and China in waters they both claim in the South China Sea.

Albanese threw his support behind a 2016 arbitral ruling on the South China Sea that invalidated China’s expansive claims in the resource-rich waterway.

“Australia supports the 2016 South China Sea arbitral award. That is final and binding. And it is important that it be upheld going forward,” Albanese said. — Reuters

Meralco’s first ever Giga Summit to bring in global experts on nuclear power

Meralco Power Academy is hosting the first ever Giga Summit on Sustainable Energy, Energy Efficiency, and Future Grid. Scheduled to take place from September 11 to 13 at The Fifth at Rockwell in Makati City, the 3-day event aims to foster knowledge exchange among industry leaders, policymakers, and experts from across the globe and become a platform for exchanging insights, shaping power and energy trends, and sharing best practices. For more information visit www.meralcopoweracademy.org.

Discussions to focus on sustainable energy, energy management, and smart metering

In the continuing pursuit towards a more resilient and sustainable future, the Meralco Power Academy (MPA) is bringing together over 30 local and international power industry experts in the first ever Giga Summit on Sustainable Energy, Energy Efficiency, and Future Grid.

Scheduled to take place from Sept. 11 to 13 at The Fifth at Rockwell in Makati City, Giga Summit aims to foster knowledge exchange among industry leaders, policymakers, and experts from across the globe and become a platform for exchanging insights, shaping power and energy trends, and sharing best practices.

The Sustainable Energy discussions on the first day will revolve around accelerating the transition towards cleaner and more progressive sources of energy that benefit both people and the planet.

This will feature nuclear power experts including Canada-based Filipino nuclear scientist Dr. Francisco “Ike” Dimayuga of Atomic Energy of Canada Limited, Ultra Safe Nuclear Corporation Executive Vice President Roland Backhaus, University of California, Berkeley Director of International Partnerships for College of Engineering Dr. Matthew P. Sherburne, and University of Illinois Urbana-Champaign, Director of Illinois Microreactor R&D Center Dr. Caleb Brooks.

“Giga Summit will serve as an avenue to spark relevant discussions on the role of next generation technologies in our transition towards stable and sustainable energy supply. With the growing interest on nuclear power, our invited experts will shed light on the opportunities and exciting developments in the area of small and micro modular reactors and share experiential learnings that will be relevant as we put forward plans to utilize these technologies,” Meralco Executive Vice-President and Chief Operating Officer and MPA Vice-Chairman Ronnie L. Aperocho said.

Meralco EVP and COO and MPA Vice-Chairman Ronnie L. Aperocho said that the three-day Giga Summit will bring in global nuclear experts who will shed light on opportunities and exciting developments in the area of small and micro modular reactors and share experiential learnings that will be relevant as the Philippines puts forward plans to utilize these technologies.

The second day of the summit will cover Energy Efficiency with sessions that will delve into the various ways to optimize energy consumption; while the third day will tackle Future Grid with discussions on fast-tracking the development and integration of advanced metering infrastructure to meet the growing demand for a smarter and more resilient energy infrastructure.

Also joing the summit are distinguished energy industry experts from both the government and private sector including the Department of Energy, Energy Regulatory Commission, Meralco, ASEAN Centre for Energy, Commonwealth Edison Co., Korea Electric Power Corporation, and Plasma Kinetics, among others.

Interested participants may register at www.meralcopoweracademy.org or by sending an email to gigasummit@meralcopoweracademy.org.

 


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Mosquito-borne dengue grows deadlier in South Asia as planet warms

STOCK PHOTO | Image by WikiImages from Pixabay

 – Mosquito-borne dengue fever is taking a heavy toll on South Asian nations this year as Bangladesh grapples with record deaths and Nepal faces cases in new areas, with disease experts linking worsening outbreaks to the impacts of climate change.

Authorities in the two countries are scrambling to contain and treat the disease – which is also known as “breakbone fever” for the severe muscle and joint pains it induces. Entomologists and epidemiologists say rising temperatures and longer monsoon seasons are providing ideal breeding conditions for mosquitoes.

The threat is not restricted to South Asia as dengue rates are rising globally with 4.2 million cases reported in 2022 – up eight-fold from 2000 – the World Health Organization (WHO) says. Earlier this year, WHO said dengue is the fastest-spreading tropical disease worldwide and represents a “pandemic threat”.

In Bangladesh, at least 691 people have died so far in 2023, and more than 138,000 have been infected, official figures show, making this the deadliest year since the first recorded epidemic in 2000. The previous record toll was 281 deaths last year.

A lack of proper prevention measures has allowed the dengue-carrying Aedes aegypti mosquito to spread across almost all of Bangladesh, said Kabirul Bashar, an entomologist and zoology professor at Jahangirnagar University in the capital Dhaka.

He said this raised the risk of more infections occurring during September. Dengue is common during the June-to-September monsoon season, when mosquitoes thrive in stagnant water.

“This climate is favorable for the breeding of Aedes mosquitoes,” Bashar said in an interview. “Dengue is not only a problem for Dhaka, it is now a problem for the entire country.”

 

NEPAL STRUGGLING WITH ‘STRANGE’ GROWTH OF DENGUE CASES

Meanwhile, Nepal – which first recorded dengue in 2004 – has had at least 13 dengue deaths and more than 21,200 cases so far this year across 75 of its 77 districts, according to officials.

This year could match the 2022 toll of 88 deaths and 54,000 cases, said Uttam Koirala, a senior public health officer at the national epidemiology and disease control division.

Meghnath Dhimal, a senior research officer at the Nepal Health Research Council (NHRC), said the incidence and spread of dengue had been rising quickly nationwide in recent years.

Rising temperatures mean cases have started occurring in colder autumn monthswhile Nepal’s higher mountain districts that never before had the disease are now struggling to curb its spread, he said, describing the shifting patterns as “strange”.

For example, the city of Dharan in the mountainous east has been hit particularly hard this year – with dengue cases rising so fast that hospitals and ambulances are overwhelmed by demand, according to Umesh Mehta, the local health division chief.

The city of more than 160,000 people saw the number of dengue cases peak at 1,700 a day as of late August, he said.

Amrit Kumar Thakur, a Dharan resident, was one of four members of his family to contract dengue last month. The 27-year-old said the disease started with a mild body ache and got steadily worse before he was treated at a temporary health centre set up to deal with the fast-growing number of cases.

“Dengue was the worst health experience of my life,” said Mr. Thakur, adding that he and his relatives had fully recovered.

 

CLIMATE CHANGE SEEN CREATING IDEAL BREEDING CONDITIONS

WHO says dengue is rising partly because global warming benefits mosquitoes, along with other factors including movement of people and goods, urbanization and problems with sanitation.

In July, WHO said an unusual episodic amount of rainfall in Bangladesh, together with high temperatures and high humidity, had helped the mosquito population to grow across the nation.

Furthermore, Bangladesh has experienced longer-than-usual monsoon seasons in recent years, with erratic rainfall over the March-to-October period and more breeding grounds popping up for mosquitoes, according to various disease and health experts.

The number of potential breeding sites identified in 2023 is the highest in the last five years, said Nazmul Islam, director of the disease control branch of Bangladesh’s health department.

Fiercer floods fueled by heavy rains and melting glaciers – driven by climate change – are another major factor behind the spread of dengue, said Mohammad Mushtuq Husain, an advisor at the Institute of Epidemiology, Disease Control and Research.

The Bangladeshi government has also cited climate change as a driver behind the country’s worsening dengue outbreak.

Saber Hossain Chowdhury, the prime minister’s special envoy on climate change, said last month on the messaging platform X, formerly known as Twitter, that the nation’s record dengue cases are “a clear instance of (the) climate change health nexus”.

Bangladesh needs to think about a national plan for adapting its health system to prevent diseases like dengue from turning into major disasters, Mr. Chowdhury said in an interview.

 

EFFORTS UNDERWAY TO CONTROL MOSQUITOES AND INFORM THE PUBLIC

As dengue lacks a specific cure, health experts say the disease must be kept at bay through control of mosquito breeding, engaging with the public, and managing symptoms.

In Dhaka, officials are going around the city spraying insecticide to kill mosquitoes and imposing fines on people if breeding sites for the larvae are found.

Atiqul Islam, mayor of the Dhaka North City Corporation, said the authorities would have to keep informing residents of the risks, and monitoring the situation, throughout the year.

“It’s not the time for pinning blame, rather everyone should come forward to deal with the dengue situation – for their love of this city where we are born, live and die,” said Islam.

In Nepal, Dhimal from the NHRC said no authority alone could stop dengue as mosquitoes are found everywhere from garages to the corners of houses which are out of reach of the government.

“Everyone should be aware and proactive, and contribute from their side to control the spread of the vector,” he added.

Civil society and development organizations are also helping to tackle the disease.

Sanjeev Kafley, head of the Bangladesh delegation for the International Red Cross, said it was helping to raise public awareness, procuring testing kits, and boosting the availability of platelets used in blood transfusions to treat some patients.

Yet when it comes to treatment broadly, ordinary families face high costs. Researchers from Dhaka University’s Institute of Health Economics have warned that total medical expenses for dengue patients may exceed 10 billion taka ($91 million) this year, up from 4.5 billion taka ($41 million) in 2019.

Dhaka resident Akhtar Hossain spent 60,000 taka ($545) on private hospital care for his daughter, Ayesha Tabassum Taqwa, who ultimately died of dengue last month at the age of 10.

Hossain cried as he spoke of Taqwa’s love of learning.

“Her books, notebooks … are all still on the reading table. (She) will never arrange new books,” he said. “(But) who can we blame and what is the point of talking about it?” – Reuters

IMF, World Bank to step up cooperation on climate, debt, digital transition

IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. — REUTERS

 – The International Monetary Fund and World Bank on Thursday issued a rare joint statement pledging to step up their cooperation to address climate change, debt vulnerabilities and countries’ digital transitions.

The statement, released ahead of a G20 leaders summit in India this week, said the two institutions can help address mounting challenges facing the global economy – from increasing climate disasters to slowing growth and geopolitical fragmentation – by working together.

“The Bretton Woods institutions, with their universal membership and specialist expertise, are well-placed to make a critical contribution to help countries tackle these challenges,” IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga said in the joint statement.

The IMF and World Bank were established in 1944 at a meeting in Bretton Woods, New Hampshire.

Mr. Banga is scheduled to attend his first G20 summit after starting as the World Bank‘s new president in June, with a mandate to expand the lender’s resources to help tackle climate change, pandemics, fragility and other global crises alongside its traditional anti-poverty mission.

US President Joe Biden at the G20 summit intends to focus heavily on reforming the World Bank and other multilateral development lenders to scale up their lending for climate and infrastructure. The US sees the institution as an important counterbalance to China’s overseas lending.

The joint IMFWorld Bank statement said the two institutions would collaborate on climate change on a “more structured and institutionalized footing.This includes formalizing regular meetings of the new Bank-Fund Climate Advisory Group every two months to consider climate-related developments on key projects, including loans through the IMF‘s new Resilience and Sustainability Trust, which provides middle-income countries with financing on climate resilience and transition projects.

 

DEBT VULNERABILITIES

The two institutions also said they will incorporate climate considerations into their work on debt sustainability for low-income countries.

The IMF and World Bank have worked closely on debt sustainability issues, both pushing for improved restructuring frameworks. They launched a sovereign debt roundtable last year to standardize restructuring concepts and speed up debt treatments.

“We will enhance our joint work to help prevent further build-up of debt vulnerabilities, assisting countries to strengthen debt management and transparency and public finances,” Ms. Georgieva and Mr. Banga said, adding that they would also deepen support to creditors and debtors engaged in debt restructurings.

On the digital transition, the two institutions said they would collaborate to help countries to connect their citizens to online services and reduce barriers to digital inclusion.

“We will step up our joint work to help countries increase the effectiveness of revenue collection and expenditure systems and reap the benefits of new digital technologies while mitigating the risks,” Ms. Georgieva and Mr. Banga said.

That will include improving cross-border payment systems while ensuring that such innovations spur growth, poverty reduction and job creation, they added. – Reuters

New flaw in Apple devices led to spyware infection, researchers say

BW FILE PHOTO

Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple devices.

While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO’s Pegasus spyware, it said in a statement.

“This shows that civil society is once again serving as the early warning system about really sophisticated attacks,” said John Scott-Railton, senior researcher at Citizen Lab, which is based at the University of Toronto’s Munk School of Global Affairs and Public Policy.

Citizen Lab did not provide further details on the affected individual or the organization.

The flaw allowed compromise of iPhones running the latest version of iOS (16.6) without any interaction from the victim, the digital watchdog said.

Apple issued new updates on its devices after investigating the flaws reported by Citizen Lab. An Apple spokesperson said it had no further comment, while Citizen Lab urged consumers to update their devices.

A NSO spokesperson said it did not have any immediate comment on the Citizen Lab research.

The Israeli firm has been blacklisted by the US government since 2021 for alleged abuses, including surveillance of government officials and journalists. – Reuters

US judge won’t order Philippine casino merger to close

WILMINGTON, Del. – The Philippines’ largest casino, owned by an affiliate of Japan’s Universal Entertainment Corp. does not have to complete a SPAC merger deal with 26 Capital Acquisition Corp. of the U.S., a Delaware judge ruled on Thursday.

Vice Chancellor Travis Laster said the affiliate that owned Okada Manila did not have to complete the $2.5 billion deal 2021 merger in part because 26 Capital “engaged in conduct that should not be rewarded” by ordering the deal to close.

Laster said 26 Capital could still seek damages, which he would address at a later date.

An attorney for the casino owners said they were pleased with the ruling and an attorney for 26 Capital did not respond to a request for comment.

Delaware courts have a history of ordering parties to complete their merger deals, but Laster said those were situations where the court could oversee and enforce its order which the judge said he would not be able to do.

Laster said directing the deal to close might violate a Philippine court order. In April 2022, the Philippine Supreme Court ordered Japanese pachinko tycoon Kazuo Okada returned to the leadership of the casino owner as part of Okada’s fight against his removal from Universal Entertainment.

Laster also said ordering the deal to close would reward improper conduct.

He said it was never disclosed to the casino owners that their deal adviser, Zama Capital hedge fund founder Alex Eiseman, also owned more than 60% of a 26 Capital affiliate. A low-ball deal for the casino would therefore benefit Eiseman’s investment and Laster described Eiseman’s work with 26 Capital as “a conspiracy to mislead Universal.”

A lawyer for Eiseman did not respond to a request for comment.

If completed, the deal would have generated $275 million for the casino.

Okada Manila started operations late in 2016 and is the biggest of four multibillion-dollar casino-resorts operating in the Philippine capital. — Reuters

BSP sees within-target inflation by Q1

Inflation unexpectedly accelerated for the first time in seven months in August, as food and transport costs rose. — PHILIPPINE STAR/EDD GUMBAN

INFLATION is now likely to land within the Bangko Sentral ng Pilipinas’ (BSP) target by the first quarter of 2024, not the fourth quarter of this year, BSP Governor Eli M. Remolona, Jr. said.

“We’re not quite clear about the fourth quarter (of 2023) yet. We’re still looking at the way our tightening measures have been working their way through the economy on the demand side. We’re not sure about the fourth quarter because if there are further supply shocks, then the numbers will be different,” Mr. Remolona said in an interview with BusinessWorld Editor-in-Chief Wilfredo G. Reyes on Sept. 4, a day before the government reported a faster-than-expected 5.3% inflation for August.

BusinessWorld’s one-on-one interview with Mr. Remolona will be streamed on BusinessWorld and The Philippine Star’s Facebook pages, as well as the BusinessWorldTV YouTube page, at 11 a.m. today (Sept. 8).

“My best guess is it will be the first quarter of 2024, before we get into the (2-4%) target range,” Mr. Remolona said.

The BSP will likely upwardly revise its full-year forecast of 5.6% for 2023 at the next policy meeting on Sept. 21, he said.

Inflation unexpectedly accelerated for the first time in seven months in August, as food and transport costs rose. The consumer price index (CPI) quickened to 5.3% in August from 4.7% in July, above the 4.9% median estimate in a BusinessWorld poll conducted last week.

August marked the 17th consecutive month that inflation surpassed the central bank’s 2-4% target range. 

For the first eight months of 2023, inflation averaged 6.6%.

Mr. Remolona said the central bank still has space for further tightening.

“If inflation continues to be an issue, then we could raise policy rate from 6.25% to a higher policy rate. If we think the tightening is already very effective, then we wouldn’t need to increase further,” he said.

The BSP has kept its key policy rate at a near 16-year high of 6.25% for the last three meetings. It has hiked benchmark interest rates by 425 basis points (bps) from May 2022 to March 2023 to curb inflation.

Aside from inflation, Mr. Remolona said the Monetary Board will also be taking into account recent economic output data at its next policy-setting meeting on Sept. 21.

“That (output data) for us is an indicator of how much we’ve done on the demand side to compensate for the pressures from the supply side,” he said.

“We could still hike. We have a sense of how high we can hike before growth becomes an issue, we compute what we call the natural rate and we’re still below the natural rate. We have room to hike because of our calculations.”

Mr. Remolona said the Philippine economy can still grow by 6% this year, the lower end of the 6-7% growth target for 2023, if the government ramps up spending.

Gross domestic product grew by a slower-than-expected 4.3% in the second quarter, partly due to government underspending. This brought the six-month average to 5.3%, still below the government’s 6-7% target this year.

Meanwhile, Mr. Remolona said the US Federal Reserve is still hawkish, but the Jackson Hole speech by Chairman Jerome H. Powell in August had more uncertainty compared with the previous Federal Open Market Committee (FOMC) statement.

“But I think, in my opinion, they’re slightly behind the curve in terms of tightening. I think we’re closer to being on track in terms of tightening,” he added. 

The US Federal Reserve hiked borrowing costs by 25 bps at its meeting in July. This brought the Fed funds rate to 5.25-5.5%, its highest level in 22 years.

The next meeting of the FOMC is scheduled for Sept. 19-20.

Mr. Remolona, however, noted that several financial crises occurred after the Fed raised its policy rate “very sharply.”

“In November 1994 for example, for the first time the FOMC raised its policy rate by 75 bps, within a few months we saw the Tequila crisis. And within the two years we saw the Asian (financial) crisis,” he said.

“This time, the FOMC has been even more aggressive than it was in 1994, so this makes me worried about what might happen down the road,” he said.

Earlier this year, markets around the world were rattled by the back-to-back collapse of Silicon Valley Bank (SVB) and New York’s Signature Bank. A crisis of confidence also hit Credit Suisse, which resulted in a state-led rescue by its Swiss rival UBS Group. 

“We already saw SVB, we already saw Credit Suisse, I’m concerned that there may be further financial accidents in the future. I think what high levels of interest rates do is they make the floor more slippery for banks and so they make accidents, or slips, more likely to happen,” Mr. Remolona added. — Keisha B. Ta-asan