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Cebu Pacific receives Airbus 320neo delivery

CEBU PACIFIC has received its newest Airbus 320neo aircraft, which is part of its goal to expand its network, the budget carrier said on Tuesday.

“This aircraft delivery supports our goal to make our operations more reliable while continuing to provide safe, reliable, and affordable air travel to our passengers. Our ongoing investment in SAF (sustainable aviation fuel) is also a crucial step for our decarbonization efforts, paving the way for a more sustainable future in air travel,” Alex B. Reyes, chief strategy officer of Cebu Pacific, said in a media release.

The company is anticipating a total of 19 aircraft deliveries this year, which is comprised of six deliveries by yearend, Cebu Pacific said.

Airbus A320neo is said to be compatible and will be powered by SAF, which is also in line with the company’s target to integrate green fuel across its network by 2030.

Cebu Pacific claims that it operates the youngest fleet in the world, having a diversified fleet of about 74 aircraft allowing it to widen its network coverage further in the country. The low-cost carrier is also targeting to transition its fleet to an all-NEO by 2028, it said

Last month, Cebu Pacific said it had partnered with Neste, an oil refining and marketing company, to explore the availability of SAF supply in Asia Pacific. — Ashley Erika O. Jose

Treasury makes full award of bonds at higher average rate

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday at a higher average rate before the release of key economic data this week.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year bonds it auctioned off on Tuesday as total bids reached P60.889 billion or more than twice the offered volume.

The bonds, which have a remaining life of six years and eight months, were awarded at an average rate of 6.807%, with accepted yields ranging from 6.7% to 6.84%.

The average rate of the reissued bonds was 43.2 basis points (bps) higher than the 6.375% quoted for the papers when they were last offered on Oct. 17.

Meanwhile, this was 6.8 bps below the 6.875% coupon for the series.

The average yield was also 6.9 bps lower than the 6.876% quoted for the five-year bond and 3.2 bps below the 6.839% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

T-bond yields rose from the rates seen for the previous award, following the increase in most Treasury bill (T-bill) yields amid “expectations of an upbeat Philippine GDP (gross domestic product) report this week,” a trader said in an e-mail.

On Monday, the average rates of the 91- and 182-day T-bills went up by 0.9 bp to 6.352% and 7.4 bps to 6.536%, respectively. Meanwhile, the yield on the 364-day T-bill inched down by 0.1 bp to 6.591%.

A BusinessWorld poll of 18 economists and analysts last week yielded a median estimate of 4.9% for GDP growth in the July-September period.

If realized, this would be faster than the preliminary 4.3% growth recorded in the preceding quarter, but slower than 7.7% in the July-September period a year ago.

This would bring the nine-month GDP growth average to 5.2%, still below the government’s 6-7% full-year target.

The Philippine Statistics Authority will release third-quarter GDP data on Thursday.

T-bond rates were lower than secondary market levels as seven-year US Treasury yields dropped amid lower global crude oil prices recently and expectations that the US Federal Reserve may be done with its tightening cycle, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Fed kept its benchmark interest rate steady at the 5.25%-5.5% range for a second straight time during its meeting from Oct. 31 to Nov. 1.

The US central bank has hiked rates by a cumulative 525 bps since it began its tightening cycle in March last year.

Market expectations that the Fed will hold interest rates steady at its December meeting stand at 90.4%, down from 95.2 on Friday but above the 74.4% a week ago. Expectations for a rate cut of at least 25 basis points have grown to more than 50% at the May 2024 meeting, according to CME’s FedWatch Tool, Reuters reported.

Markets will look for more clarity on the Fed’s intentions from officials speaking later in the week, including Fed Chair Jerome H. Powell, and voting members such as New York Fed chief John Williams and Dallas Fed President Lorie Logan.

The BTr plans to borrow P225 billion from the domestic market this month, or P75 billion via T-bills and P150 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy

A virtuous cycle of growth through investments in manufacturing

A WORKER sews the eye of a customized pet plushie, at the Pampanga Teddy Bear Factory, in Angeles City, Pampanga. — REUTERS

To say that times are more challenging for Filipinos now is to state the obvious. A Pulse Asia survey conducted in the third quarter of this year found that Filipinos’ most urgent concerns are predominantly economic. Nearly three out of four Filipinos said their top concern was controlling inflation, 49% believe that the pay of workers must be increased, and 27% say that more jobs should be created.

There is a basis for this concern. According to the Philippine Statistics Authority, overall inflation increased to 6.1% in September from 5.3% in August. Small wonder that consumer confidence remained in negative territory, albeit with a slight improvement, at -9.6% for the third quarter of the year from -10.5% in the second quarter, according to the Consumer Expectation Survey of the Bangko Sentral ng Pilipinas (BSP).

Business outlook on the economy, however, continued to weaken. According to the BSP’s Business Expectations Survey, the confidence index in the third quarter went down to 35.8% from 40.8% in the previous quarter. Among the factors that contributed to the damped down business outlook were a decline in sales and demand for goods and services due to weather-related disruptions and other seasonal factors, higher prices of raw materials and production costs, elevated inflation and interest rates, and peso depreciation.

Indeed, controlling inflation is crucial to the creation of a stable economic environment that is conducive to economic growth, an increase in wages, and boosting the confidence of businesses to expand and invest in the Philippines.

President Ferdinand Marcos, Jr. said that economic security — where individuals enjoy a stable source of income and are consistently able to meet their basic needs — is national security. Achieving economic security, in turn, hinges on the interplay and collaboration among various stakeholders, specifically the government and the private sector. While it articulates the vision and sets the direction of the nation, the government by itself alone cannot do everything. The private sector is an ideal partner because of its access to capital, technical expertise, and operational efficiency.

Another Pulse Asia survey commissioned by the Stratbase ADR Institute revealed that in the third quarter of 2023, seven out of 10 Filipinos agreed that the private sector plays an instrumental role in ensuring economic security. The private sector does this by making goods that are more affordable and accessible to Filipino consumers (64%), creating jobs (60%), and expanding livelihood opportunities (58%).

With a majority of Filipinos aware of the contribution of the private sector to the economy and, as a consequence, people’s income and security, the government is on the right path in declaring that creating an investment- and business-friendly economic and regulatory environment is a priority. While the current consumer-driven economy has been in place for years, such an economic structure exposes the country to numerous external factors that are beyond our control and could easily affect and even cripple growth. We saw this firsthand during the 2020 lockdowns, when mobility restrictions disrupted supply chains and dampened various services, causing the economy to contract.

An investment-driven economy, on the other hand, will have a multiplier effect: it will pave the way for better infrastructure, create jobs, increase income, and improve quality of life. It will also create a virtuous cycle that will attract further investments and yield benefits many times over.

Often cited by businesses — both foreign and local — in their ideal environment would be that policies and regulations are crafted by the rule of law and are evenly and consistently applied. Predictability is one major factor for investors because they need to plan their operations, make forecasts, and consider different variables in their business operations. They also want to see a government that is run with transparency and accountability, with little to no room for corruption and other irregularities, and little to no tolerance for inefficiency.

There is also a need for blanket legislation to address regulatory hurdles commonly faced by investors. This legislation will help fast-track priority investments in the country, especially those related to infrastructure and those that are critical in generating jobs.

One viable avenue for investment-led growth would be in the manufacturing sector. Yet another Pulse Asia survey commissioned by Stratbase in the first quarter of this year revealed that an overwhelming 89% of Filipinos agree that the government should extend support to the manufacturing sector, with its capacity to accelerate economic growth and development. Respondents said that manufacturing activities are key in creating livelihood opportunities for local service businesses needed to support manufacturing operations (62%) and making goods more affordable and accessible to Filipino consumers (62%).

For this, the government must provide incentives such as income tax holidays that are tailor-fit to investors catering to both the international and domestic markets. Domestic-oriented manufacturing corporations, specifically, are equally important in spurring economic growth. They make goods more affordable and accessible to consumers and reduce our dependence on imports, thus improving our balance of trade.

Finally, in pursuing investment-driven economic growth, the Philippines should fortify its ties with its most beneficial trading and investment partners — the United States, Japan, Australia, the European Union, and the United Kingdom. This mirrors the above-mentioned survey by Pulse Asia which identified the United States (74%), Japan (55%), Australia (46%), Canada (40%), and the European Union (26%) as the top five entities that the Marcos Jr. administration should strengthen its economic relations with.

Investments are crucial to unlocking the Philippines’ economic potential. Partnering with these economic partners and focusing on sectors that present great opportunities boost our chances of attaining investment-led growth that will pave the way for a resilient, prosperous, sustainable future for Filipinos.

 

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

Hungary sacks museum chief for not enforcing LGBT ban on under-18s at exhibition

MNM.HU

BUDAPEST — Hungary’s government dismissed the director of the National Museum on Monday after it allowed under-18s to visit a World Press Photo exhibition featuring lesbian, gay, bisexual, and transgender (LGBT) content that it is hosting despite a legal ban.

Tensions over the exhibition surfaced last month when the far-right Mi Hazank (Our Homeland) party initiated a government inquiry over the issue. It cited a 2021 law that bans the “display and promotion of homosexuality” in books and films accessible to under-18s.

The law, which Prime Minister Viktor Orban’s government says aims to protect children, has come under fire from the European Union and human rights groups.

Following the government inquiry, the museum said it had no right to ask visitors for ID to determine their age but it included a message on its website calling on under-18s not to visit the exhibition.

The Minister for Culture and Innovation said in a statement on Monday that Laszlo Simon, the director of the museum, had been dismissed for failing to comply “with the legal obligations of the institution.”

Mr. Simon acknowledged his sacking in a Facebook post but denied that the museum had deliberately violated any laws. He said the museum had immediately flagged the age restriction on its website “without delay.”

The ministry of culture and the government spokesman did not reply immediately to Reuters’ e-mailed questions.

Mr. Simon — a former lawmaker in Mr. Orban’s conservative Fidesz party — had ironically thanked My Homeland in an earlier Facebook post for giving the exhibition publicity as long queues formed outside the museum over the weekend.

Earlier this year some Hungarian booksellers were fined for selling books depicting homosexuality, which were not wrapped in plastic as required by the legislation. — Reuters

Fulfillment services seen empowering MSMEs in the age of e-commerce

By Miguel Hanz L. Antivola, Reporter

A COMPLETE network of partners and tools is a growing necessity for micro-, small- and medium-sized enterprises (MSMEs) to leverage the steady rise of e-commerce, according to entrepreneur Jacqueline Y. Chua.

Just when the pandemic hit, Ms. Chua, along with her colleague, saw an opportunity. Drawing from their experience in setting up e-commerce ventures for a conglomerate, they embarked on a new venture dedicated to serving MSMEs.

Ms. Chua, as the co-founder and chief executive officer of We Empower Ecommerce Solutions, Inc. (FullFill), took the initiative to convert her business partner’s facility into their startup’s headquarters.

With just a single year in full operation, FullFill grew to become a one-stop e-commerce support hub with micro-warehouses, co-working spaces, photo studios, and other services, Ms. Chua said.

“We are a startup, small business owners as well, so we understand the challenges faced by each MSME,” she said. “We wanted to create an end-to-end solution for them.”

“Our main advocacy is to help as many MSMEs as possible like us so they will have an easier time scaling and finding partners to grow their businesses,” she added.

The Philippine e-commerce market reached P500.9 billion in revenues with a growth rate of 31.3% last year, according to GlobalData analytics.

It is expected to grow by 22.9% to reach P615.7 billion this year, it added.

While Ms. Chua recognized the high growth trajectory of the e-commerce industry, she noted that online-native MSMEs eventually integrate into brick-and-mortar businesses after gaining critical mass. This integration also prompted FullFill to expand its services.

“For things that we cannot do ourselves, we work with collaborator partners,” she said on partnering with other businesses and service providers for MSMEs.

“FullFill was originally intended for e-commerce players,” she said. “But over the course of the past year that we’ve been operating, we have actually expanded to include B2B or business-to-business channel fulfillment services as well.”

Ms. Chua also noted that most MSMEs born in the e-commerce space, typically pandemic-born partnerships, struggle with manpower and finding a trusted service provider that suits their needs.

“If I am the owner myself. I do not have time to run the actual operations, picking and packing orders, or creating social media content,” she said.

“It’s very important for you to have a partner or outsource these services to those who are experts in that particular field,” she said on FullFill’s collaborator partners for other resources.

“In terms of output, content, and the efficiency of fulfillment, your KPIs [key performance indicators] will all be better instead of you doing all the work by yourself,” she added.

“What we strive to do is create an ecosystem where these MSMEs would know who to talk to.”

EXPANSION
While FullFill is still in its first year of operations, Ms. Chua said it is focused on ensuring its business concept is acceptable to the 40 clients it is serving.

“Once we actually tick that box, we will move on to expanding to about 10 more locations in five years,” she said.

Currently headquartered in Pasig, Ms. Chua noted the company’s convenient and strategic location in the metropolitan area.

“We are very near C5 and near Makati, Bonifacio Global City, and Quezon City,” she said. “In general, if you look at the radius, we are a maximum of 20 kilometers away from every location within Metro Manila.”

“But the intent is really to expand outside the metro already,” she added on the company’s plans to build hubs in provincial metropolitan areas such as Davao and Cebu.

Ms. Chua noted that some of FullFill’s clients are based in the provinces and are eyeing expansion in Metro Manila.

“They don’t have the bandwidth to create another team here because it’s not efficient anymore,” she said. “So they actually outsource the fulfillment and even the content creation to us already. We’re like their business partner in Manila.”

“It’s really the maturity of the MSMEs right now,” she said on the main industry driver. “At this point, it is very important that we listen to them as their business partners.”

AgriNurture profits decline to P9.56M

LISTED AgriNurture, Inc. on Tuesday reported that its attributable net income fell to P9.56 million in the third quarter from P30.65 million a year ago.

In a regulatory filing, the company said its revenues dropped by 11.6% to P761.23 million from P860.92 million in the same period last year.

Retail and franchising sales for the period went up by P54.95 million from P36.99 million last year after the opening of new company-owned and franchise stores during the quarter.

Cost of sales fell to P669.6 million, an 11.5% decline from the P756.97 million reported the prior year.

The company reported that its attributable net income for the nine months ending September decreased by 82.6% to P15.4 million from P88.4 million a year earlier.

It attributed the decrease to a decline in export revenues to China and the United States, an increase in wages, rising logistics costs, and the non-recognition of change in the fair value of its biological assets during the period.

The company’s revenues, likewise, declined by 6% for the nine-month period to P2.65 billion from P2.82 billion last year.

It added that Philippine operations contributed 42% of the company’s total sales, while 58% were from foreign operations.

The company reported a decrease in the export of bananas and various fresh and processed goods to P72.11 million, 32% lower than the prior year.

This was due to a slowing of demand in the Chinese market and “increasing competition from other Southeast Asian suppliers.”

Local sales went up by 59% to P332.85 million from P208.97 million last year, driven by an increase in outlets opened, higher pricing, and stronger demand for rice and fresh produce.

The company’s cost of sales declined by 4.5% to P2.33 billion from P2.44 billion in the same period last year due to a drop in purchase costs.

On Tuesday, AgriNurture shares went up by 0.49% or one centavo to close at P2.06 apiece. — Adrian H. Halili

Rediscount facility untapped in Oct.

BW FILE PHOTO

BANKS continued to leave the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) untouched in October amid ample liquidity in the financial system.

Banks likewise did not tap the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) in the previous month, the central bank said on Tuesday.

The peso rediscount window last saw availments in April, June and October last year, with cumulative loans hitting P15.3 billion. Meanwhile, the last time the EDYRF was tapped was for a dollar rediscounting loan in 2016.

The BSP’s rediscount facility gives banks access to additional liquidity by letting them post collectibles from clients as collateral.

Lenders can use the cash, which could be in peso, dollar, or yen, to lend more to corporate or retail clients and service unexpected withdrawals.

Banks did not borrow from the rediscounting facilities in October due to excess liquidity in the financial system, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Banks have more than enough capital buffers that could be used for additional lending activities,” he said, adding that improved profitability allowed them to lend more.

“Some banks have also raised additional capital from investors that may be used for additional lending and investments activities. Banks also have other alternatives to raise funding such as through the equity and bonds market, interbank market, increased deposits,” Mr. Ricafort said.

Money supply or M3 — which is considered as the broadest measure of liquidity in an economy — rose by 6.8% to P16.5 trillion in August, preliminary data from the central bank showed.

This was faster than the 5.7% growth in July.

Meanwhile, loans disbursed by big banks went up by 7.2% to P11.07 trillion as of end-August from P10.33 trillion seen in the same period last year.

This was slower than the 7.7% increase recorded in July.

NOVEMBER RATES
For this month, the applicable rate for peso rediscount loans will be at 7.733% for those maturing in 90 days and at 7.966% for those falling due in 91-180 days.

Meanwhile, dollar borrowings will be priced at 7.8888% (1-90 days), 7.9559% (91-180 days), and 7.9559% (181-360 days).

Yen-dominated borrowings will be priced at 2.088% (1-90 days), 2.121% (91-180 days), and 2.20693% (181-360 days). — K.B. Ta-asan

Headline inflation rates in the Philippines

ANNUAL INFLATION sharply slowed in October after two straight months of acceleration, reflecting easing prices of key food items, the Philippine Statistics Authority (PSA) said on Tuesday. Read the full story.

Headline inflation rates in the Philippines

The imperatives of green finance

STOCK PHOTO | Image from Freepik

Green financing has become a potent instrument for funding projects that are both commercially and environmentally sustainable in an era marked by rising environmental consciousness and vigilance. The Philippines is slowly embracing green finance as businesses are realizing the importance of incorporating environmental sustainability in business plans.

Green financing gives priority to investments and projects that are ecologically responsible. Its significance is immeasurable because it tackles several urgent global issues, including:

Climate Change Mitigation: Green finance plays a critical role in preventing climate change by directing funds toward initiatives that lower greenhouse gas emissions and foster climate resilience.

Biodiversity conservation: It backs programs that maintain biodiversity and ecosystems, which in turn protects the planet’s priceless natural resources.

Resource Efficiency: Green finance encourages the wise use of resources, which lowers waste and encourages responsible patterns of production and consumption.

Sustainable development promotes economic expansion while making sure that it is fair, eco-friendly, and inclusive of all social groups.

In fact, green financing’s ability to promote environmental responsibility is one of its main benefits. Considering the global struggles posed by climate change and environmental degradation, businesses that use green financing show that they are dedicated to lowering their carbon footprints and minimizing their adverse effects on the environment. This proactive approach not only helps the environment, but also improves a business’ standing as a socially conscious organization.

In the long run, green finance can result in significant cost savings. Businesses can lower their operational expenses, including energy use, trash disposal, and water use, by investing in sustainable practices, renewable energy sources, and energy-efficient equipment. These cost-cutting strategies may provide one with a competitive advantage in the market and larger profit margins.

Access to a wide variety of financial sources designated especially for environmentally friendly projects is also made possible via green financing. These sources include government grants, institutional investor loans and equity investments, green-focused funds, and green bonds. These grants can give companies the money they need to start or grow their sustainable projects.

Businesses that use green finance are better positioned to comply with environmental restrictions that are being enacted by governments throughout the world. Companies can reduce the risk of non-compliance and possible legal penalties by funding projects that comply with environmental standards.

Adopting green financing also provides a business edge. Surveys have shown that customers prefer to support environmentally conscious enterprises, and investors have become more interested about the environmental policies of the firms they invest in. Businesses can reach a wider range of consumers and investors by embracing environmental stewardship.

Several Philippine conglomerates have embraced green financing in supporting several big-ticket initiatives. One of the biggest and oldest corporations in the Philippines, Ayala Corp., is noteworthy for having pioneered green finance. The diversified firm has regularly used green funding to support its initiatives in infrastructure, energy, and real estate.

The real estate division of Ayala Corp., Ayala Land, for example, raised P8 billion (about $160 million) by issuing its first green bond just prior to the outbreak of the global health pandemic. The money raised was set aside for environmentally friendly and sustainable projects, such as the creation of sustainable townships and the integration of energy-saving infrastructure into their various development projects.

AC Energy, another subsidiary of Ayala Corp., is also an early adopter of green financing. The energy firm has been actively involved in the renewable energy industry, adding more wind and solar projects to its portfolio. To finance these renewable energy projects, AC Energy used green financing through joint ventures with domestic and foreign institutions to issue green bonds. The company’s dedication to sustainability has helped the Philippines switch to cleaner energy while also drawing in green investors.

First Gen Corp., a major player in the renewable energy sector in the Philippines, has also drawn green finance to support its renewable energy initiatives. The business is significantly advancing the nation’s use of sustainable energy.

Green financing, however, provides some unique and inherent difficulties. For example, green bonds have more stringent requirements and can only be applied to projects that adhere to specific environmental standards. This restriction might limit the kinds of projects that an organization can use green money for.

While green financing can result in long-term cost benefits, it is also an accepted truism that adopting environmentally friendly practices and technologies can come with a hefty upfront cost. For one, it is necessary to invest a large amount of money up front to implement sustainable supply chain procedures, energy-efficient infrastructure, or renewable energy solutions. To optimize the advantages of these costs, businesses need to carefully plan and budget for them.

Since the green finance industry is still in its infancy, it is susceptible to shifts in legislation, investor tastes, and market dynamics. Businesses that venture into green financing may encounter uncertainties about the availability of green money, the market for green products, and how green financing instruments will change over time. Additionally, to stay in line with green financing regulations, businesses must continuously track their progress and report on the environmental effect of their projects. This can take a lot of time and might call for additional resources for reporting and verification related to sustainability.

Businesses that use green finance also run the risk of being accused of greenwashing, which is the practice of deceiving investors and customers by portraying a business or its products as being more ecologically friendly than they are. Therefore, businesses that use green finance must be careful in implementing projects funded by green financing as this could potentially harm their brand and they may encounter some legal repercussions if environmental claims are proven to be wrong or made in deceit.

Indeed, businesses that value environmental sustainability can benefit from green financing in several ways, including cost savings, competitive advantage, environmental responsibility, and access to capital, but companies that embrace this finding mode just need to be cognizant of potential pitfalls.

Green finance has shown to be an effective tool for Philippine businesses like Ayala Land, AC Energy, and First Gen Corp. in funding their environmentally friendly projects, which range from renewable energy projects to sustainable real estate developments. The initiatives of these businesses can be used as insightful case studies by others who wish to adopt green financing to pursue profitable and environmentally responsible business operations.

As can be observed, green finance is going to be more and more important in determining how businesses and environmental responsibilities are shaped in the future as we continue to transition toward sustainability.

Studies have shown that green finance is, indeed, a very potent instrument that has the potential to create a sustainable future as it addresses the interrelated issues of resource depletion, biodiversity loss, and climate change by balancing economic expansion with environmental stewardship. Green finance can provide an avenue towards a future where environmental integrity and economic success coexist by reducing environmental risks, promoting business sustainability, attracting money to ecologically responsible projects, and exhibiting global leadership.

When countries and organizations continue to place a high priority on green finance, they can continue to improve both the planet’s overall health and their own. Making the shift to green finance is a crucial step toward creating a sustainable world and emphasizes the crucial role that finance will play in determining the course of our planet’s future.

 

Ron F. Jabal, APR, is the chairman and CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph rfjabal@gmail.com

South Korea police question K-Pop star over alleged drug use

G-DRAGON — EN.WIKIPEDIA.ORG

INCHEON, South Korea — The former front man for the K-pop band BIGBANG, known as G-Dragon, appeared at a police station for questioning on Monday over allegations of illegal drug use, the latest in a string of South Korean artists embroiled in high-profile narcotics cases.

The investigation against the singer and rapper, whose given name is Kwon Ji-yong, comes amid an ongoing crackdown on illegal drugs by the government of conservative President Yoon Suk Yeol.

After the allegations surfaced in late October, shares of some K-pop agencies fell, including Mr. Kwon’s former agent YG Entertainment, though they have since rebounded.

Leaving the police station after four hours of questioning, Mr. Kwon, 35, denied the allegations and said a drug test taken during questioning came back negative. He said he was cooperating with the police investigation.

As he arrived for questioning earlier, Mr. Kwon, who was dressed in a dark suit, said: “There is no truth to (the accusation of) illegal drug-related crime.”

The police station in Incheon was the same location where the star of the Oscar-winning film Parasite, Lee Sun-kyun, was separately also questioned over the weekend over an allegation of illegal drug use.

Mr. Lee declined to comment as he left the police station on Saturday, only saying he had answered all the questions asked by police to the best of his knowledge.

A series of arrests on drug charges in recent months, including of chaebol heirs and celebrities, has prompted authorities to tighten a crackdown on narcotics and customs inspections.

South Korea has tough drug laws, and crimes are typically punishable by at least six months in prison or up to 14 years for repeat offenders and dealers.

Social media and foreign travel have made illegal drugs more accessible, drug rehab advocates say.

Mr. Kwon is not the first member of BIGBANG to face criminal charges.

In 2017, T.O.P., whose legal name is Choi Seung-hyun, received a suspended 10-month jail sentence for marijuana use, after he pleaded guilty and sought leniency to avoid a prison term.

Mr. Seungri, whose real name is Lee Seung-hyun, was convicted in 2021 of collusion in a tax evasion, bribery, and prostitution scheme and served an 18-month prison sentence.

BIGBANG dominated the K-pop scene after their debut in 2006. Mr. Kwon and four other former and current members have pursued solo careers. — Reuters

Maynilad to offer discount to marginalized customers

LOW-INCOME customers served by Maynilad Water Services, Inc. may expect lower water bills next year as the company is set to implement a program that will allow them to apply for a bigger discount.

In a media release on Tuesday, Metro Manila’s west zone concessionaire said it would implement the Enhanced Lifeline Program (ELP) starting Jan. 1, 2024, which will give an opportunity to low-income and low-consuming residential consumers to apply for more discounts on their water bills.

Maynilad said the move came after it was urged by the Metropolitan Waterworks and Sewerage System’s Regulatory Office to extend a discount not only to its low-consuming customers but also to its marginalized customers.

Regular lifeline customers, or those whose monthly consumption does not exceed 10 cubic meters, already enjoy a 41% discount on the basic charge.

“But under the ELP, those ‘Regular Lifeline’ customers who are also marginalized [or] beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) Act, or customers living below the poverty line, as determined by the Department of Social Welfare and Development (DSWD) — can apply and qualify for a higher discount on their water bills,” the company said.

The company said that applications for the low-income lifeline rate will start on Nov. 14. Qualified customers can apply by submitting a completed application form, their latest water bill, and a photocopy of their 4Ps identification to any Maynilad business area office or Barangay helpdesk.

For non-4Ps beneficiaries, a local Social Welfare and Development Office certification and photocopy of one government identification card are required.

Maynilad said that it has over 320,000 regular lifeline customers and expects around 60,000 low-income lifeline customers to apply for the higher discount under the ELP.

Maynilad serves Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon.

It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three 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 an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

FedEx Express says expedited Vietnam-PHL flight service to benefit local businesses

EXPRESS transportation company FedEx Express, a subsidiary of FedEx Corp., has introduced a new flight service connecting Vietnam to the Philippines, aiming to expedite shipment transit and support e-commerce growth.

It will now take one business day for Southern Vietnam exports to reach the Philippines and major Asian markets, the company said in an e-mailed statement to reporters on Monday.

“Local businesses serving international customers may gain a competitive advantage with expedited delivery times,” said Maribeth Espinosa, managing director at FedEx Express Philippines.

“The improved transit time from Vietnam to the Philippines will support the growth in trade volumes between both markets,” she said.

“Combined with the projected revenue growth of e-commerce in Southeast Asia, the role of logistics in enabling intra-Asia trade becomes even more pronounced,” she added on enabling access to more import and export opportunities.

FedEx Express noted that deliveries taking too long were the number one consumer pain point for small- and medium-sized enterprises (SMEs), followed by handling returns, according to a study it commissioned last year.

It said consumers typically expected delivery within three days to one week. “There is a desire for delivery to be at least more reliable if not faster.”

However, it also noted how SMEs in India, Malaysia, Philippines, and Vietnam were among the most optimistic about their future e-commerce growth in the next three years.

Trade between the Philippines and Vietnam increased by 14.7% last year, reaching $7.8 billion in revenues, the Philippine News Agency said in July.

“We anticipate increased investments within the world’s largest free trade area, stimulating economic growth in Southeast Asia,” Ms. Espinosa said on the new FedEx service alongside the Regional Comprehensive Economic Partnership (RCEP).

The Senate ratified the RCEP in June, which is billed as the world’s biggest free trade agreement (FTA). This involves a third of the global economy as the participating countries include the members of ASEAN, Australia, China, Japan, New Zealand, and South Korea.

RCEP-participating countries are expected to have increased trade among participants as the FTA allows a liberal, facilitative, and competitive investment environment, especially in terms of quantity, tariffs, and import taxes.

“The new flight will use a dedicated B767 freighter flying four evenings a week from Ho Chi Minh connecting Asia and Europe through the FedEx Asia Pacific Hub in Guangzhou, China,” FedEx Express noted.

The company now offers nine weekly flights departing from Vietnam to Asia, Europe, and the United States. — Miguel Hanz L. Antivola

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