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WhatsApp to war:  How Cubans were recruited to fight for Russia

A RUSSIAN FLAG flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, Feb. 27, 2019. — REUTERS

LA FEDERAL, Cuba — Cuban seamstress Yamidely Cervantes has bought a new sewing machine for the first time in years, plus a refrigerator and a cellphone — all on Russia’s dime.

She said her 49-year-old husband Enrique Gonzalez, a struggling bricklayer, left their home in the small town of La Federal on July 19 to fight for the Russian army in Ukraine. Days later, he wired her part of his signing-on bonus of about 200,000 roubles ($2,040) which she received in Cuban pesos, Ms. Cervantes told Reuters.

That represents a windfall on the economically stricken communist-run island. It’s more than 100 times the average monthly state salary of 4,209 pesos ($17), according to the national statistics office.

Few places feel the pinch more than La Federal, a community of about 800 people on the outskirts of Havana where one in four residents are unemployed, government data for 2022 shows.

On the 100-meter dirt road where Ms. Cervantes lives, at least three men have left for Russia since June, and another had sold his home in anticipation of going, she said.

“You can count on one hand those who are left,” the 42-year-old said as she surveyed the street from a small terrace where she’d repurposed two broken toilet bowls as flower pots.

“Necessity is what is driving this.”

Reuters traced the stories of those four men, together with more than a dozen other Cubans recruited to go to Russia from districts in and around the capital Havana, ranging from a builder and a shopkeeper to a refinery worker and phone company employee. Eleven of the men ended up flying to Russia while the other seven got cold feet at the last moment.

Interviews with many of the men plus friends and relatives, together with a trove of WhatsApp messages, travel papers, photos and phone numbers they provided to corroborate their accounts, paint the most detailed picture yet of how Cubans are flocking to shore up Moscow’s war machine.

The Kremlin and Russian defense ministry didn’t respond to queries about Cubans being recruited for their military. The Cuban government also didn’t respond to queries for this article.

News of Cubans ending up in the Russian military hit headlines this month when the Havana government — a longstanding ally of Russia that says it is “not part of the war in Ukraine” — said it had arrested 17 people connected with a human-trafficking ring that lured Cubans to fight for Moscow. Reuters could not establish the identities of those involved in the alleged trafficking ring and when or whether they were arrested.

The recruits identified by Reuters volunteered to go to Russia to work for the military following overtures on social media from a recruiter who identified herself as “Dayana.” In La Federal, for example, all nine recruits identified by Reuters signed up to fight in the war. In Alamar, an eastern Havana suburb, most of the five men signed up for non-fighting roles such as in construction, packaging of provisions and logistics.

Ms. Cervantes’ husband Mr. Gonzalez, speaking via video call from a Russian military base outside the city of Tula, south of Moscow, told Reuters he was one of 119 Cubans training there. When he arrived in Russia, he said, he had signed a contract to work for the military, translated into Spanish.

“Everyone here knew what they were coming for,” he said, smiling in military garb as he gave Reuters a digital phone tour of the camp, ringed by pine trees. “They came for the war.”

Mr. Gonzalez said the 119 Cubans there were being trained to fight in the war, though still wasn’t clear where they’d be sent.

“I have several friends in Ukraine, and they are in places where bombs are falling but they haven’t actually been in confrontations with Ukrainians,” he added. “Everything is good here, but when we go there, we will be in a war zone.”

Reuters was unable to contact any of the other men who joined the military, though confirmed via WhatsApp messages and photos that they had flown to Russia and two are now in Crimea.

Contacted for comment on the recruitment of Cubans into the Russian military, Ukrainian foreign ministry spokesman Oleg Nikolenko said: “I can confirm that the Ukrainian embassy in Havana has reached out to the Cuban authorities on this matter.”

A US State Department spokesperson said the United States was monitoring the situation closely. “We are deeply concerned by reports alleging young Cubans have been deceived and recruited to fight for Russia,” the spokesperson said.

DAYANA IN CAMOUFLAGE CAP
The Cuban recruitment activity identified by Reuters began weeks after a May decree issued by President Vladimir Putin that allowed foreigners who enlisted with the military on year-long contracts to receive Russian citizenship via a fast-track process, along with their spouses, children and parents.

In La Federal, word of the army work began to spread in June, according to the residents interviewed. Offers to join up, shared via Facebook, Instagram and WhatsApp, became the talk of the town, with Dayana named as the contact.

More than two dozen young men interviewed by Reuters in and around Havana spoke of the scale of the exodus.

Cristian Hernandez, 24, broke into laughter when asked how many people had left the area around La Federal. “A ton of people,” he said. “Almost all of our friends have gone over there.”

Yoan Viondi, 23, who lives a few-minute bike ride up the road from the main drag, said he knew about 100 men in Villa Maria, the district that includes La Federal, had been recruited for the Russian war effort since June.

He said a friend gave him the WhatsApp contact for Dayana, a Cuban woman who he said bought plane tickets for recruits. Dayana was also mentioned as a key contact by most of the recruits and relatives Reuters spoke with.

Mr. Viondi wasted no time.

“Hi, good afternoon,” Mr. Viondi said to her in a July 21 message, viewed by Reuters. “Please I need information.”

Dayana, who appears in her chat icon as a dark-haired woman in a camouflage cap, responded with contract terms almost instantaneously, according to time stamps. The first line of the message states: “This is a contract with the Russian military by which you receive citizenship.”

The contract was for one year and offered a signing bonus of 195,000 roubles followed by a monthly salary of 200,000 roubles, plus 15 days of vacation after the first six months of work.

Those terms are in line with those relayed to Reuters by other recruits and their families.

“If you’re in agreement, you should just send (a copy of) your passport,” Dayana’s message read.

Within two minutes, Mr. Viondi had sent a digital copy of his passport. One hour later, Dayana responded in an audio message heard by Reuters: “Perfect, tomorrow I’ll be able to tell you what day you will travel,” she said.

Reuters was unable to reach Dayana for comment on the number used by Mr. Viondi and others, or to confirm her full name.

I WON’T DIE OF HUNGER
In the end, despite his initial enthusiasm, Mr. Viondi became anxious about going to Russia and cut contact with Dayana. He stressed that the people who signed up in La Federal knew they would be going to fight.

“It’s hard living here. Everyone said, ‘If I choose this, I won´t die of hunger in Cuba,” he said. “But they knew where they were going. I knew perfectly well where I was going too.”

Mr. Viondi told Reuters neither Dayana, nor anyone else, had asked him to keep their interactions a secret.

He said he maintained contact with at least four friends who had signed contracts in Russia with the army and that, as far as he knew, “they were fine”. Most, he said, were now in Ukraine.

Cuba is mired in its worst economic crisis in decades, with long lines for even the basics like food, fuel and healthcare, spurring an exodus of Cubans to the US, Latin America and Europe last year.

Ms. Cervantes, the seamstress of La Federal, recalls the desperation her husband Mr. Gonzalez, now in Russia, had felt in the months before he left. “Work, work, work,” she said of his life. “One day, he said to me, ‘Mami, I just can’t take it anymore’.”

“One day he told me, ‘I’m going to Russia. He showed me the photocopy of his passport, and had the ticket and everything. That was the 17th (of July) and he left on the 19th.”

While Ms. Cervantes chose to stay behind, Reuters confirmed through WhatsApp photos and videos that at least three wives from La Federal had joined their husbands in Russia, as well as at least one child.

Ms. Cervantes said her cousin, Luis Herlys Osorio, had enlisted in the Russian army weeks after her husband departed, and that his wife, Nilda, was also now in Russia: “She went, and so did many of the women in the neighborhood.”

Reuters reviewed photos on social media of Nilda, with two other wives from La Federal, at a rented home in the city of Ryazan in western Russia. Mr. Osorio is in Crimea, Ms. Cervantes said.

Cuba has sent mixed messages this month about its citizens fighting for Russia.

On Sept. 8, when it announced the trafficking-ring arrests, it also said it was illegal for its citizens to fight for a foreign army, punishable by life in prison.

Days later, though, Cuba’s ambassador in Moscow said Havana didn’t oppose Cubans “who just want to sign a contract and legally take part with the Russian army in this operation.” Within hours, Cuba contradicted its envoy, reiterating that Cubans were prohibited from fighting as war mercenaries. — Reuters

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Powering sustainable luxury: The all-new Mercedes-Benz EQ

IC Star Automotive Inc., the official and sole distributor of Mercedes-Benz vehicles in the Philippines launched the much-awaited all-electric vehicle series – the Mercedes-Benz EQ on Sept. 20 at the Mercedes-Benz Greenhills showroom.

Introducing the fully electric all-new Mercedes-Benz EQA 250 Electric Art, EQB 250 Electric Art, EQE 300 Electric Art, and EQE 350+ AMG Line, in one momentous occasion in the history of Mercedes-Benz Philippines. These vehicles are more than just an evolution; they are a revolution. They represent the brand’s vision for a future where luxury and sustainability are seamlessly intertwined.

The Mercedes-Benz EQ models stand at the intersection of tradition and innovation, where the commitment to luxury and performance meets a sustainable and electrifying future.

The all new EQA, EQB and EQE are powered by state-of-the-art electric drivetrains that deliver exhilarating performance while producing zero emissions. This means you can enjoy the legendary Mercedes-Benz driving experience with a clear conscience, knowing you’re contributing to a cleaner, greener future.

Safety is also paramount in the design philosophy. The Mercedes-Benz EQ models are equipped with the latest safety features, including advanced driver-assistance systems, to keep you and your loved ones secure on the road.

Furthermore, the technology inside these cars is truly groundbreaking. From an intuitive infotainment system to seamless connectivity options, Mercedes-Benz ensures that your driving experience is not just clean and efficient but also connected and enjoyable.

But it’s not just about the technology; it’s also about the design, the craftsmanship, and the attention to detail that have always defined Mercedes-Benz.

In a nutshell, Mercedes-Benz EQ cars are not just vehicles; they are a promise – a promise of luxury, performance, and sustainability.

 

The Mercedes-Benz EQA: A sporty, compact electric car

EQA is the name of the new entry-level model to the all-electric world of Mercedes-Benz vehicles. The sporty exterior and elegant interior designs are indicative of the Progressive Luxury of the Mercedes-Benz brand. A close relation of the GLA, it delivers all the thrilling characteristics of that vehicle, combined in this case with an efficient electric powertrain.

The EQA exterior design incorporates a range of distinctive elements such as the black panel radiator grille with central star that is the hallmark of Mercedes-Benz, and a continuous light strip at front and rear. Also contributing to its sporty look are its new 19-inch 5-spoke light-alloy wheels Electric Art Design, and its LED High Performance headlamps with EQ-specific energy blue element with high beam assist, a system which automatically switches the headlights setting to low beam from high beam when it detects a vehicle ahead.

The new EQA is a perfect for individuals with active lifestyle, or a young couple who like adventures and weekend road trips because “Loading” has never been this easy. An enhancement of the KEYLESS-GO system, Hands-Free Access is a sensor in the rear bumper that detects your presence when you have a smart key with you, allowing you to open and close the trunk without touching the car or your smart key remote. It also offers a total of 340 liters boot space.

Its interior comes with the luxury features you’d expect with Mercedes, in a compact package that makes it a perfect electric vehicle for city or suburban living. Complete your seamless driving and set your mood with the ambient lighting in spiral-look trim elements which can be configured in 64 different colours, an all-digital cockpit with Apple CarPlay and Android Auto. This gives you convenient access to the most important apps on your smartphone. Driving time becomes charging time, just drop your smartphone into its allotted space in the oddments tray for wireless charging.

One of the things that sets Mercedes-Benz EQA apart from its rivals is the quality of infotainment systems. Also included as standard is the intuitively operated MBUX infotainment system (Mercedes-Benz User Experience). MBUX offers more customization, easier navigation and better quality of interior displays. The 10.25in all digital instrument display makes you in control.  The EQA also has a unique rosé gold accent in the air vents, including illumination when it gets dark.

The new EQA is comfortable too, with its Comfort Seats, rear armrest and THREMOTRONIC automatic climate control. The seats are covered with ARTICO leather in two-tone. The seating position is high and upright, as is typical for an SUV – making it not only comfortable for getting in and out, but also good in terms of all-round visibility. Utility value was one of the general focuses during development. There’s also plenty room in the rear, as rear seat backrest is 40:20:40 split-folding.

Innovative Safety systems are also present in the new EQA 250. It houses standard safety features such as Active Lane Keeping Assist, Active Brake Assist, Active Blind Spot Assist, and a reversing camera. Mercedes offers a Driving Assistance Package with features that issue a variety of warnings. These alert the driver to a pedestrian or cyclist approaching when they open their door, for example.

Moving on to the important parts of actually driving the EQA, it has the latest electric drivetrain technology with a maximum range of 496km (WLTP). Of course, the range you will achieve depends on a lot of things such as the weather, number of passengers, your driving style, how many other systems are drawing power (like the aircon). The Mercedes EQA 250 uses a Type 2 connection and is capable of using a three-phase cable to charge at a rate of 11kW. It has a 66.5 kWh battery and is able to deliver 385 torque.

The fully electric EQA 250 delivers a lot of quality and refinements in the interior, while remaining practically useful as an ideal car. The Mercedes-Benz EQA is quiet, produces zero C02 emission, has powerful electric motor and high-voltage lithium-ion battery that guarantee efficient driving performance.

EQA 250 Electric Art Introductory Retail Price: Php 3,990,000

The Mercedes-Benz EQB: The flexible, spacious electric car

Following the EQA, the EQB is the second fully electric compact SUV from Mercedes-Benz. It is compact outside, but on space, style and smart ideas. The new EQB 250 model is a living proof of new dimensions that is innovative and functional at the same time. It is a capable SUV with room for up to seven, and an advanced electric car you can enjoy every day.

The EQB interprets Mercedes-Benz’s Progressive Luxury in an edgy and particularly characterful way. It features the Mercedes-Benz black panel grille with central star and boasts a full-width LED light strip at the front and rear. Red rear lighting similarly spans the wide power liftgate. A horizontal fibre-optic strip connects the daytime running lights of the full-LED headlamps, ensuring a high level of recognizability both in daylight and at night. The inside of the headlamps is finished to a high level of quality, detail and precision. Blue colour highlights within the headlamp reinforce the signature Mercedes-Benz sophisticated appearance.

Also noticeable in the exterior are the aluminium look roof rails, the circumferential and protective cladding elements that give the overall proportion. The muscular and sensuously modelled vehicle shoulder dominates the side view, which is further enhanced by the rise of the beltline. Outwardly positioned wheels give the EQB a powerful character and confident stance on the road.

The EQB is equipped with 19-inch 5-spoke light-alloy wheels Electric Art Design, and electrically folded side mirrors with Surround Lighting with Brand Projection Logo.

The new EQB offers space and flexibility that may suit several purposes. This gives it an exceptional position not only in the compact segment, but especially among electric cars. The two seats in the third row can be used by people up to 1.65 metres tall, and child seats can also be fitted there. ISOFIX child-seat mountings are provided in the rear rows, allowing up to four child seats back there.

The overall quality of the EQB’s cabin is as good as you’d expect for a Mercedes. The big digital displays look impressive, while the main surfaces of the dashboard and the centre console look and feel luxurious. Crisp yet aerodynamic lines outside define a modern marvel of space-efficiency inside the EQB. The 64-color ambient lighting lets you dial up your own ambience. Also adds are the rose gold-coloured elements and the backlit trim that characterize the modern high-tech ambience in the interior of the EQB. Targeted design accents such as tubular elements in an aluminum look also reinforce the solid, robust and high-quality overall impression.

Intelligent technology and thoughtful luxury are delivered with swift response and silenced refinement. The Mercedes-Benz User Experience (MBUX) is your onboard virtual voice assistant. Just say “Hey, Mercedes” to control countless features by talking naturally. MBUX deliver genuine convenience that gets to know you better as you use it. The fully digital cockpit responds to you with tactile and visual clarity. Steering wheel, console and central screen all offer intuitive touch controls. Reconfigurable digital instruments include EQ-specific displays and designs.

The EQB is also a true Mercedes-Benz when it comes to passive safety. Building on the robust bodyshell structure of the GLB, the body of the EQB was adapted to the special requirements of an electric car.  In addition, the EQB features intelligent driving assistance systems with cooperative support for the driver. Active Lane Keeping Assist, Active Steering Assist, and Active Brake Assist are fitted as standard. In many critical situations, the latter has the ability to prevent a collision or reduce its severity with autonomous braking. The system is also able to brake for stationary vehicles and crossing pedestrians at typical city speeds. It is aided with by a standard fit Parking Package with 360° camera which is clear and easy to use.

The EQB front-wheel drive system is an ideal match for its nimble handling and efficient packaging.  The EQB 250 has a maximum driving range of 474km (WLTP). The EQB 250 has a 140kW/385Nm electric motor on the front axle, hooked up to a 66.5kWh lithium-ion battery. Overall, the EQB is a lively, roomy and capable compact SUV that you would adore driving. It offers an unrivaled combination of efficiency, comfort, and versatility.

EQB 250 Electric Art Introductory Retail Price: Php 4,190,000

The Mercedes-Benz EQE 300 Electric Art and 350+ AMG Line: The luxurious, executive electric cars

Climb aboard and discover a place where electric meets luxury along the line and mobility for all senses. The EQE combines noticeably high-quality materials with visibly groundbreaking innovations. The EQE is an electric alternative to the midsized E-Class sedan. There are two variants currently available in the local market, the EQE 300 Electric Art and EQE 350+ AMG Line.

Meticulously designed to exude an aura of excellence, the EQE sedan from Mercedes-Benz is a futuristic expression of the synergy between innovation and sophistication. The EQE Sedan unveils next-generation electric vehicle performance, state-of-the-art in-cabin technology, and a one-bow design that’s elegant and aerodynamically functional.

The captivating exterior design of the EQE Sedan features a sleek, aerodynamic design with a soft, tapering roofline and stylish 20-inch 5-twin-spoke light-alloy wheels in Electric Art design for the EQE 300, while the EQE 350+ carries 20-inch AMG 5-twin-spoke light-alloy wheels. In the front, the signature Black panel radiator grille with central Mercedes star and Mercedes-Benz pattern and is accentuated by Side skirts in black-grained finished with door trim strip in silver chrome. Also comes as a standard are electrically folding exterior mirrors with Mercedes-Benz Brand logo projection.

Drive safely within your comfort. The EQE has cutting-edge safety features that let you drive with peace of mind. The Digital Light with ULTRA RANGE high beam won’t just illuminate the roads you’re passing through but helps project messages on the road and navigation guides regarding road conditions or traffic warning symbols.

You will also find the Mercedes-Benz Driving Assistance Package in the EQE, along with the Active Steering Assist that keeps you centered in your lane at all times, Active Blind Spot Assist that detects vehicles entering your blind zones and automatically alerts you with an illuminated red icon, Active Lane Keeping Assist that detects unintentional lane drift, and ATTENTION ASSIST drowsiness detection.  It is also equipped with PRESAFE® system that senses an impending collision, it activates automatically. The Parking Package with 360° camera will allow effortless maneuvering for precise parking with all-round visibility, while the GUARD 360 ensures your vehicle’s security while your away.

When you get behind the wheel of the Mercedes-Benz EQE sedan, you’ll realize the future of driving is already here. Relax and enjoy yourself like no other with the standard combination of OLED Central Display 12.8inch screen and 12.3inch Driver Display, and Burmester 3D surround sound system with 15 speakers. Wireless Apple CarPlay and Android Auto connectivity and wireless smartphone charging are standard as well. Another notable feature is the Head-up display is a technology, that shows digital information on your windshield, such as speed, GPS directions, cruise control settings, current traffic conditions in your surrounding area, and more.  Active Ambient Lighting is integrated into the driving assistance systems and can reinforce alerts visually. It makes corresponding feedback possible for the comfort systems. This applies to the climate control system or the ‘Hey Mercedes’ voice assistant.

The EQE 300 Electric Art and EQE 350+ AMG Line impressive range belies serious power. The EQE 300 features 89 kWh battery pack that could deliver maximum range of 621km (WLTP). On the other hand, the EQE 350+ AMG comes with 90.56 kWh which could perform maximum range of 682km (WLTP).

EQE 300 Electric Art Introductory Retail Price: Php 5,590,000
EQE 350+ AMG Line Introductory Retail Price: Php 6,290,000

The launch of the Mercedes-Benz EQA, EQB, and EQE ushers in a new era of Sustainable Mobility. These cars are more than just a mode of transportation; it’s an experience, a statement, and a promise. A promise of an unparalleled driving experience, a promise of safety, a promise of sustainability, and a promise of a future where mobility meets sustainability in perfect harmony.

Experience the new era of Sustainable Luxury with Mercedes-Benz EQ.  The new EQA 250 Electric Art, EQB 250 Electric Art, EQE 300 Electric Art, and EQE 350+ AMG Line will be available for viewing at all Mercedes-Benz Showrooms. Test drives are also offered on Sept 21-24, 2023, in Mercedes-Benz Alabang, Mercedes-Benz Bonifacio Global City, and Mercedes-Benz Greenhills. While you may test drive the Mercedes-Benz EQ in Mercedes-Benz Cebu on Sept 28-Oct 1, 2023.

Learn more about the Mercedes-Benz EQ here.

 


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Michael Gambon, British actor who played Dumbledore, dies aged 82

Photo Credit: IamIrishwikiuser | https://commons.wikimedia.org/wiki/File:Michael_Gambon.jpg CC BY-SA 3.0 DEED | https://creativecommons.org/licenses/by-sa/3.0/deed.en

 – British-Irish actor Michael Gambon, best known to global audiences for playing the wise professor Albus Dumbledore in the “Harry Potter” movie franchise and whose career was launched by his mentor Laurence Olivier, died aged 82 on Thursday.

He died peacefully in hospital, PA Media reported citing a family statement.

Mr. Gambon began his acting on the stage in the early 1960s and later moved into TV and film. Notable film roles include a psychotic mob leader in Peter Greenaway’s “The Cook, the Thief, His Wife & Her Lover” in 1989 and the elderly King George V in Tom Hooper’s “The King’s Speech” in 2010.

But his best-known role was as Dumbledore in the “Harry Potter” franchise, a role he took over from the third installment in the eight-movie series after he replaced the late Richard Harris in 2004. Mr. Gambon played down the praise for his performance and said he simply played himself “with a stuck-on beard and a long robe”.

Michael John Gambon was born on Oct. 19, 1940, in Dublin to a seamstress mother and an engineer father. The family moved to Camden Town in London when Gambon was six as his father sought work in the city’s post-war rebuilding.

Mr. Gambon left school aged 15 to begin an engineering apprenticeship and by 21 he was fully qualified. However, he was also a member of an amateur theatre group and always knew he would act, he told The Herald newspaper in 2004. He was inspired by American actors Marlon Brando and James Dean, who he believed reflected the angst of teenage boys.

In 1962 he auditioned for the great Shakespearean actor Olivier who made him one of the founding members of the National Theatre at the Old Vic, alongside other young emerging greats that included Derek Jacobi and Maggie Smith.

Mr. Gambon built his reputation on the stage over the following years, making his name in particular with his 1980 portrayal of Galileo in John Dexter’s “Life of Galileo”.

The 1980s brought wider attention with the lead role in 1986 TV show “The Singing Detective”, in which he played a writer suffering from a debilitating skin condition whose imagination provided the only escape from his pain. The performance won him one of his four BAFTAs.

He also won three Olivier Awards and two ensemble cast Screen Actors Guild Awards – for 2001’s “Gosford Park” and “The King’s Speech”.

Mr. Gambon was made a Commander of the British Empire in 1992 and knighted for services to drama in 1998, something he called “a nice little present”, although he did not use the title.

A mischievous personality, he often made up stories. For years he showed fellow actors a signed photograph of Robert De Niro which he had in fact inscribed himself before ever meeting the American actor.

He revealed in an episode of “The Late Late Show” in Ireland that he convinced his mother he was friends with the pope.

Mr. Gambon retired from the stage in 2015 after suffering long-term memory problems but continued to act onscreen until 2019. He told an interviewer in 2002 that his work made him feel “the luckiest man in the world”.

Mr. Gambon married Anne Miller in 1962, and the couple had a son. While they never divorced, in later years he also had another partner, set designer Philippa Hart, 25 years his junior, with whom he had two children. – Reuters

PHL conglomerates face tough competition from pure plays — report

PHILIPPINE STAR/MICHAEL VARCAS

Philippine conglomerates are struggling to compete with pure-play companies due to their declining annual total shareholder return (TSR), according to global management consulting firm Bain & Co.

Reshaping portfolios, redefining roles, and investing in technological innovation are keys to succeeding in the volatile landscape, Bain said in a report e-mailed to journalists on Thursday.

Data from Capital IQ and Bain’s analysis showed that conglomerates from the Philippines, during the last decade, had an average annualized TSR of 2.6%, compared to the 3.2% of pure plays.

The fifth edition of Bain’s Southeast Asia Conglomerates report stated that the average annualized TSR of conglomerates in the region from 2013 to 2022 was found to be only 4%, declining by 24% from 2003 to 2012.

Meanwhile, SEA pure plays had 11%, outperforming conglomerates in revenue growth, margins, and multiples.

“When the region was less developed, it was easier for conglomerates to prosper, thanks to their size and privileged access to opportunities, capital, and talent,” Jean Pierre Felenbok, Singapore-based advisory partner at Bain, said in a press statement.

“However, we observed that this privilege started diminishing in the middle of the last decade, and the performance gap between pure plays and conglomerates has widened ever since,” he added.

A correlation between market maturity and conglomerate performance was found in developed markets such as Singapore, Malaysia, and Thailand, where conglomerates lost their upper hand first and most rapidly, according to Bain.

Conglomerates need to expand their margins more quickly and establish strong leadership positions in attractive sectors, mirroring what young pure plays have done, it added.

“Accounting for 17% of the region’s market cap and 30% of capital expenditure, Southeast Asia needs its conglomerates to grow and create value,” Mr. Felenbok said.

Till Vestring, another Bain advisory partner, noted that ‘all-weather stars,’ referring to a subset of conglomerates, have outperformed their peers through increased revenue, defended margins, and expanded multiples.

These included the Enrique Razon Group in the Philippines, which encompasses the port-handler International Container Terminal Services Inc., Bloomberry Resorts Corp., Manila Water Co., and Prime Infrastructure.

Holding company PHINMA Corp. was included in the report’s list of seven new all-weather stars in the region.

“Companies should continue to reinvest in their core businesses to manage their strategic positions and offset erosion of the conglomerate advantage,” Bain said, mentioning that 44% of top-quartile companies are leaders in their primary business.

“Top-quartile conglomerates actively reshaped their portfolio toward high-growth industries and growth engines of the future,” it added.

Bain recommends that companies redefine their corporate center’s roles to add value. It also mentioned that many companies in the region handle group functions for procurement, information technology, and commercial excellence.

It highlighted the need to invest heavily in innovation and technology through data analytics and automation for product development and new revenue streams.

“Ownership and capital structures impact a conglomerate’s value in the public market,” Bain said on optimizing to reduce conglomerate discount. — Miguel Hanz L. Antivola

September inflation likely within 5.3%-6.1% range — BSP

PHILIPPINE STAR/ WALTER BOLLOZOS

Philippine annual inflation in September is expected to settle within the range of 5.3% to 6.1%, the central bank said on Friday, ahead of the data release next week.

Higher prices of fuel, electricity, and key agricultural commodities, as well as peso depreciation are the primary sources of upward price pressures in September, the Bangko Sentral ng Pilipinas (BSP) said in a statement.

Lower prices of rice and meat could contribute to downward price pressures for the month, it said.

Headline inflation in August quickened for the first time in seven months to 5.3% due largely to an uptick in food and transport costs, keeping pressure on the central bank to maintain its hawkish policy stance.

On Thursday, BSP Governor Eli M. Remolona doubled down on his hawkish signals, saying there was “a little bit of scope” for an off-cycle interest rate hike “depending on the numbers”.

Last week, he said a hike was on the table at the BSP’s rate-setting meeting in November.

The BSP on Sept. 21 kept its Target Reverse Repurchase Rate steady at 6.25%, for a fourth straight meeting, after a series of hikes from May last year to March this year to curb inflationary pressures.

“Going forward, the BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data dependent approach to monetary policy formulation,” it said in Friday’s statement. — Reuters

Hot money posts net inflow of $153 million in August

MORE FOREIGN CAPITAL entered than left the Philippines in June, the central bank said. — REUTERS

Foreign portfolio investments registered a net inflow in August, marking the third straight month that foreign capital entered the country, the Bangko Sentral ng Pilipinas (BSP) said.

Transactions on short-term foreign investments registered with the BSP through authorized agent banks posted a net inflow of $153 million in August, a turnaround from the $86 million net outflows in the same month in 2022.

However, the net inflow in August was significantly smaller than the $962 million net inflow in July.

Foreign portfolio investments are commonly referred to as ‘hot money’ due to the ease with which these flows enter or leave the country.

Data from the BSP showed that gross inflows surged by 82% to $1.4 billion in August from the $792 million in the same month a year ago. Month on month, inflows went down by 8.6% from the $1.6 billion in July.

A bulk, or 74.2%, was invested in Philippine Stock Exchange-listed securities involved in banks, property, holding firms, food, beverage, tobacco, and transportation services. Meanwhile, about 25.8% was invested in peso government securities.

The majority, or 88.9%, of investments for the month came from Japan, the United Kingdom, the United States, Luxembourg, and Singapore.

On the other hand, gross outflows jumped by 46.6% to $1.3 billion in August from the $878 million in the same month in 2022. It also more than doubled (109.5%) from the $614 million in the previous month.

The central bank said that 59.2% of total outward remittances went to the United States.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the inflows were driven by market participants continuing to “hunt for bargains (and) opportunities for bottom-fishing.”

“Market sentiment (was) also supported after local policy rates were kept unchanged during the month despite the Fed rate hike on July 26,” he said in a Viber message.

Earlier this month, the BSP maintained key interest rates for a fourth straight meeting. The Monetary Board kept its policy rate at 6.25%, the highest it has been in nearly 16 years.

“The net easing trend in year-on-year inflation from the 14-year peak of 8.7% in January 2023 also supported market sentiment, though offset by higher prices of rice and petroleum that led to some pick up in headline inflation,” Mr. Ricafort added.

Headline inflation accelerated to 5.3% in August, ending six straight months of decline. This also marked the 17th consecutive month that inflation breached the 2-4% target.

The central bank expects inflation to average 5.8% this year.

For the first eight months of the year, BSP-registered foreign investments yielded a net inflow of $311 million, significantly lower than the $589-million net inflow in the same period last year.

Earlier this month, the BSP lowered its hot money net inflow projection for this year to $2 billion, down from the previous estimate of $2.5 billion. It also anticipates net inflows of $3 billion in 2024. — Luisa Maria Jacinta C. Jocson

Marcos says defending territory, not looking for trouble over S. China Sea

PRESIDENT Ferdinand R. Marcos, Jr. at the New York Stock Exchange. — OFFICE OF THE PRESS SECRETARY

The Philippines is not looking for trouble in the South China Sea but would maintain a strong defense of the country’s territory and the rights of its fishermen, President Ferdinand R. Marcos, Jr. said on Friday.

“What we will do is to continue defending the Philippines, the maritime territory of the Philippines, the rights of our fishermen to catch fish in areas where they are doing it for hundreds of years already,” he told reporters.

“That’s why I don’t understand why this happened,” he said referring to an ongoing spat with China over access to the disputed Scarborough Shoal.

The Chinese coastguard has disputed the Philippine version of the events, while the United States has weighed in behind ally Manila, with a senior defense official calling its move a “bold step” and underlining its treaty obligations to defend its former colony.

Mr. Marcos added: “Many of these are operational issues and that I really cannot talk about.

“But in terms of taking down the barrier, I don’t see what else we could do.”

Ties between the Philippines and China have deteriorated of late, in large part due to overtures from Mr. Marcos to deepen defense ties with Washington, including offering expanded access to its troops, ostensibly training and humanitarian purposes.

China, which says Scarborough Shoal is its territory, has chided the United States for what it calls provocations in the region. — Reuters

MTRCB denies It’s Showtime’s motion for reconsideration

With a majority vote, the Movie and Television Review and Classification Board (MTRCB) has decided to reject the Motion for Reconsideration (MR) filed by the network ABS-CBN regarding the 12-day suspension of its noontime variety program It’s Showtime. 

At a Sept. 28 press conference announcing the decision, the board said that it stands by its Aug. 17 ruling in response to complaints about the show’s “Isip Bata” segment. 

The segment, which aired on July 25, sparked controversy when comedian-host Vice Ganda licklicked cake icing offered by their partner Ion Perez in a supposedly “indecent manner..”  

“A big majority of board members, which are comprised of educators, businessmen, and lawyers, voted to deny the MR,”” saidPaulino Cases, chairman of the MTRCB adjudication committee, at the briefing.  

He specified that, out of 30 board members, 27 voted to deny the MR. 

MTRCB chair Lala Sotto-Antonio also said that she did not vote on the suspension in the spirit of transparency and fairness.  

“I truly believe that being my father’s daughter should not be taken against me. Instead, it should even be taken positively that I am someone who grew up in the industry. I am someone who loves the industry and understands the industry… I am just doing my job humbly and justly,” she said.  

Ms. Sotto has been facing criticism for the board’s ruling, considering that her father, Tito Sotto III, is the host of It’s Showtime’s rival noontime show, EAT.  

The MTRCB also reiterated that the case falls under Presidential Decree (PD) No. 1986, which grants the board the power to disapprove of objectionable portions from, and prohibit the broadcast of, television programs.  

It added that the act in question was done inappropriately in presence of children and violated Section 3(C) of the said decree.  

“We receive voluminous complaints on this segment both officially filed to MTRCB and through messages from family and friends,” said Ms. Sotto. 

Meanwhile, ABS-CBN released a statement on their official websites and social media platforms hours after the rejection saying that they are currently exploring all possible options to dispute it. 

“We have received the decision of the Movie and Television Review and Classification Board denying our Motion for Reconsideration regarding It’s Showtime and are currently exploring all our remedies and options,” the statement said. 

It’s Showtime may still appeal the suspension to the Office of the President within 15 days from the receipt of the MR decision. In the meantime, it will continue to air. — Brontë H. Lacsamana 

 

I-Land Residences Sucat: #HomeOfTheFuture within reach

ISOC Land received its citations from the PropertyGuru Philippines Property Awards led by Vice-President and Business Unit Head May Lopez (fourth from left).

I-Land Residences Sucat, the pioneering sustainability-oriented urban condominium community by independent boutique developer ISOC Land, has been deemed the Best Affordable Condo Development in Metro Manila at this year’s 11th PropertyGuru Philippines Property Awards.

The recognition is important as it affirms the growing sensibility among Filipino home seekers for real estate developments that prioritize well-being and environmental sensitivity through sustainable home design and practices.

Most importantly, ISOC Land has shown the way in terms of bringing utmost value to homebuyers by providing such benefits and advantages of sustainable living at an affordable price point.

I-Land Residences Sucat achieves sustainability through distinctive elements such as wide, open spaces and greenery that make up as much as 60% of the development.

“We are extremely proud of this citation as it affirms our commitment to bring sustainability as a way of life for more and more Filipinos, making their dream home of the future within reach,” states Michael Cosiquien, Group Chairman of ISOC Land parent company ISOC Holdings.

“As a developer, we pride ourselves with the fact that we are driven not much by profit but by ensuring the long-term welfare of our residents through a property that will endure for generations—a genuine sanctuary for the whole family,” he adds.

I-Land Residences Sucat was also given a Highly Commended award for Best Eco-Friendly Condo Development and Best Condo Architectural Design, further underscoring the project’s excellence in terms of functionality and design that supports a genuinely sustainable urban lifestyle.

I-Land Residences Sucat leads the local market as the only mid-income residential condominium registered with the U.S. Green Building Council (USGBC) and currently vying for certification under LEED (Leadership in Energy and Environmental Design).

“We share these awards with our project team members and partners who have made our vision of sustainable living within reach possible, and most especially, with our clients and buyers who have placed their trust in our vision,” says May Lopez, ISOC Land Vice President and Business Unit Head.

I-Land Residences Sucat, located South of Metro Manila in Parañaque City, is ISOC Land’s maiden development—its flagship residential project that exemplifies its mission to make sustainable living a reality for ordinary Filipinos.

With the global pivot today toward sustainability, I-Land Residences Sucat leads the local market as the only mid-income residential condominium registered with the U.S. Green Building Council (USGBC) and currently vying for certification under LEED (Leadership in Energy and Environmental Design).

As the most widely utilized and recognized green building system in the world, LEED is a sure symbol of sustainable design, construction and operations that ensure genuine positive impact on the lives of I-Land Residences Sucat’s residents.

I-Land Residences Sucat achieves sustainability through distinctive elements such as wide, open spaces and greenery that make up as much as 60 percent of the two-hectare, six-tower development, along with other features such as natural lighting and ventilation, energy- and water-saving fixtures, as well as an array of amenities for recreation and relaxation.

Launched in 2020, I-Land Residences has enjoyed enthusiastic response from local home buyers, indicating that the preferences and needs of Filipinos have evolved to prioritize health and wellness especially amid the global COVID-19 pandemic.

At present, its first tower, Lime, has already been completed and is scheduled for turnover to its buyers this fourth quarter of 2023. Its second tower, Olive, is more than 50 percent completed, leading to the recent launch of units in its third tower, Sage.

For more information, visit www.iland.com.ph.

 


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Aboitiz InfraCapital’s West Cebu Estate wins ‘Best Industrial Development’ title, spotlights Cebu as a premier industrial investment destination

On its inaugural participation at the 11th Philippine Property Awards, West Cebu Estate of Aboitiz InfraCapital bagged the prestigious Best Industrial Development in the Philippines for 2023.

Following the recent celebration of its 30th anniversary, Aboitiz InfraCapital’s West Cebu Estate has reached a significant milestone by earning the prestigious title of “Best Industrial Development in the Philippines” at the 11th PropertyGuru Philippines Property Awards. This recognition reaffirms the estate’s unwavering dedication to transforming Balamban, Cebu, from a fourth-class municipality into a thriving, first-class economic center.

Over the past three decades, West Cebu Estate has solidified its reputation as the “Shipbuilding Capital of the Philippines” and a premier investment hub, driving substantial growth not only in Balamban but also in neighboring areas like Toledo and Asturias. Today, it is actively expanding its successful track record to transform into an industrial-anchored mixed-use estate that accommodates a diverse range of businesses, extending beyond the shipbuilding industry.

Rafael Fernandez de Mesa, President of Cebu Industrial Park Developers, Inc. and Head of Aboitiz InfraCapital Economic Estates, expressed gratitude for the recognition, stating, “We extend our sincere thanks to PropertyGuru for recognizing our endeavors in promoting economic, social, and environmental progress not only in Balamban, but also in the Philippines. This milestone would not have been possible without the support of our community and the local and provincial governments in Balamban and Cebu. As leaders in industrial real estate, we have worked relentlessly to foster innovation, advance industries, and create new employment opportunities, all in the pursuit of our nation’s growth and the well-being of our fellow Filipinos.”

At the core of West Cebu Estate’s success lies its comprehensive infrastructure, world-class facilities, and a workforce of 14,000 highly skilled Filipinos, ensuring a conducive business environment. From 1995 until 2022, it has attracted PHP 32.46 billion in investments from its 12 locators.

For the past 30 years, West Cebu Estate has been a catalyst of economic and social progress outside Metro Cebu, transforming Balamban from a fourth-class municipality to a first-class economic center that it is at present.

To further enhance its growth trajectory, two transformative developments are under way within this 540-hectare mixed-use Economic Estate: an industrial expansion and an upcoming central business district.

West Cebu Estate is embarking on a 39-hectare industrial expansion, projected to create an additional 14,000 jobs, effectively doubling the existing workforce. Scheduled for completion by 2024, this development is poised to transform West Cebu Estate from primarily a shipbuilding hub into a dynamic mixed-use development catering to various sectors, including automotive, manufacturing, and logistics.

Building upon West Cebu Estate’s legacy of excellence, a 3.3-hectare central business district is in the pipeline, set to be launched by 2025. The CBD will host commercial lots for sale, as well as a diverse array of food outlets, retail shops, basic services, a supermarket, and a transportation hub, all designed to enhance the quality of life for surrounding communities.

West Cebu Estate has rightfully earned its reputation as the leading industrial development in the Philippines. This achievement is a result of a meticulously crafted master plan that harmoniously integrates two core principles: driving economic progress and safeguarding the environment. In line with its commitment to sustainability, West Cebu Estate is currently in the process of pursuing Philippine Green Building Council’s BERDE-District Registration to ensure that its development and operation align with both local and global sustainability standards.

“Our success story underscores the immense potential that exists within our nation, and we’re excited to continue championing this cause, driving progress, and nurturing the talents of our local workforce. We are determined not only to push the boundaries of innovation as we redefine industrial estates in the Philippines but also to drive progress in the countryside, uplifting the communities where we operate,” stated Cyel Auza, Vice-President for Cebu Operations of Aboitiz InfraCapital Economic Estates.

Looking ahead, Aboitiz InfraCapital Economic Estates is poised to further expand its footprint while driving economic growth, business productivity, and job creation, showcasing Cebu as a leading destination for industrial development and investment.

 


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