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Four teams out to check losing run at PBA On Tour

PBA

Games Today
(Ynares Sports Arena, Pasig)
5 p.m. — Converge vs Blackwater
7:30 p.m. — Ginebra vs Phoenix

FOUR teams are out to snap their losing spell today as the PBA On Tour swings back to the Ynares Sports Arena in Pasig after its out-of-town sorties.

Converge (1-2) seeks to regain traction after dropping its last two games as it takes on Blackwater (2-2), an opposition that’s determined to rebound from its 95-112 loss to NorthPort last time, in the 5 p.m. opener.

Phoenix (2-2) similarly bids to arrest a two-match slide facing off a Barangay Ginebra side (0-2) that has yet to find its rhythm in the 7:30 p.m. main offering.

Aldin Ayo’s FiberXers hope to rediscover the form that enabled them to crush Terrafirma, 119-82, in their initial outing and make up for back-to-back disappointments to Magnolia (95-99) and Meralco (88-96).

Jerrick Balanza, Jeron Teng, Justin Arana and the pre-season’s top assist man Alec Stockton are expected to lead the FiberXers in this quest.

On the other side are Blackwater’s Troy Rosario, RK Ilagan and Rashawn McCarthy, who are poised to get the squad back to the win column.

For the Fuel Masters, the game against the newbie-laden Gin Kings presents a good opportunity to regain their winning ways.

Phoenix has proven its capability to beat tough opponents like San Miguel Beer and Meralco before and intends to recreate this versus a Ginebra side that’s missing big stars Scottie Thompson, Japeth Aguilar, Jamie Malonzo, Christian Standhardinger and Stanley Pringle. — Olmin Leyba

Gilas Pilipinas opens camp with 10 pool members

GILAS Pilipinas carried an optimistic disposition as it opened camp for the FIBA World Cup amid the usual lack-of-abled-bodies issue.

Ten pool members reported for duty in the Independence Day session — about half of the roster that was even further reduced to 20 with Carl Tamayo begging off — but it was business for Gilas.

“We’re all very positive. The players understand the mission,” said coach Chot Reyes.

“We made it very clear that the number one requirement for this is commitment; they have to be willing to come here even without the assurance that they’ll make it to the final lineup and go through this,” he added.

Mr. Reyes and his staff have set training at Meralco Gym for the week before the group checks in at Inspire Academy in Laguna for a four-day stay-in camp. On June 22, the Gilas pool will fly to Estonia for the European workouts and tuneup matches.

A number of the WC team candidates are currently nursing or recovering from injuries like RR Pogoy, Ray Parks, Jr., Calvin Oftana, Carl Tamayo and Jordan Heading.

Mr. Tamayo, who is bothered by a knee injury, has already pulled himself out of consideration for the Gilas 12.

“He doesn’t think he’s going to be fully healthy for the entire process,” Mr. Reyes said of the 6-foot-7 frontliner.

“His MRI doesn’t show any significant injury but I think he needs to get some work done on his knee and get some PRP (platelet-rich plasma treatment) next week. It’s going to take another week pa before it is strong enough to work out. By that time, it will be too late for Lithuania (camp and friendlies).”

The good news is that Japeth Aguilar is back in harness and June Mar Fajardo has been cleared for practice. The two were among the early birds in the WC camp, along with AJ Edu, Thirdy and Kiefer Ravena, Chris Newsome, Poy Erram, Rhenz Abando, CJ Perez and Ange Kouame.

Scottie Thompson was sick and was excused from the session while Justin Brownlee, Jamie Malonzo and Dwight Ramos are still overseas.

“What else is new?” Mr. Reyes said of the manpower troubles. “That is the reality of Philippine basketball. I think it’s the reality of all national teams worldwide.”

“We are on a, best way to put it, crammed schedule. The reality is injuries are a part of it and the other guys have extended stays when they went back to the US. As usual, we have to make do with the cards that are dealt to us.” — Olmin Leyba

TNT Triple Giga and Uratex Dream dominate Red Bull Half Court, secure World Finals slot

TRIPLE GIGA and Uratex Dream rule Red Bull Half Court 2023.

RED Bull Philippines finally crowned the country’s representatives in the culmination of Red Bull Half Court 2023. The Wildcard teams dominated the tournament, with TNT Triple Giga of the Men’s Division coming up on top, while Uratex Dream toppled seven other female teams to secure their spot as the country’s undisputed representative to compete in the Women’s Division of the tournament. Both teams are headed to Serbia in September for the World Finals with the pride of the country on their back!

TNT Triple Giga, consisting of Almond Vosotros, Ping Exciminiano, Gryann Mendoza, and Lervin Flores, showed grit and perseverance when they managed to outperform all the other teams. During the winner-takes-all round against the team of the CAVITEX Braves, Almond Vosotros overcame the odds and rallied his team to victory in an intense back and forth match that ended with a final score of 20 to 21.

On the other hand, Uratex Dream of the Women’s Division left no room for doubt as they dominated throughout the tournament and secured their spot with a win over Team FILA. Kaye Pingol, along with her teammates Mikka Cacho, Samantha Harada, and Blanche Bahuyan, made it clear from the get-go that their goal is to win, and the 4 women are motivated more than ever to carry on that momentum to the World Finals.

Eala jumps to No. 228 in new WTA Ranking

ALEX Eala inched closer to the Top 200 of the Women’s Tennis Association (WTA) rankings anew after a string of impressive stints in Europe.

Buoyed by her third pro title and a couple of playoff finishes, the 18-year-old Filipina jumped from No. 266 to 228 as per the latest WTA list this month

It’s the best placing for Ms. Eala in two months since getting at No. 215 in April. Her career-high was at No. 214 last year.

Ms. Eala’s improvement of 38 notches was made possible by a dominating championship run in the W25 Yecla in Spain for her first pro title this season. Overall, it’s her third after wins in 2021 W15 Manacor in Spain and 2022 W25 Chiang Rai in Thailand.

She is coming off a series of consecutive early exits in April that pulled her down the rankings before reviving her campaign with a quarterfinal finish in the W25 Monastir in Tunisia last month.

After her title conquest in Spain, she also made a quarterfinal finish in the W25 Madrid over the weekend.

The left-handed prodigy is already back in Mallorca Spain, where she’s based for years now as a scholar at the Rafael Nadal Academy. — John Bryan Ulanday

Controversial Novak

Novak Djokovic isn’t easy to like, and not just because the other members of the so-called Big Three of Tennis have far more agreeable personalities. He happens to cling to beliefs that are best described as controversial. For instance, he has insisted that “energetical transformation, through the power of prayer, through the power of gratitude, [can] turn the most toxic food, or maybe most polluted water into the most healing water, because water reacts.” He also wears a nanotechnology device on his chest that, according to the manufacturer, converts body heat to light sent through the nervous system, “improving posture, balance and flexibility, [and] boosting athletic performance and focus, reducing stress, anxiety and chronic pain.”

And then there is Djokovic’s insistence on remaining unvaccinated for the coronavirus. The overwhelming preponderance of scientific fact on the benefits of inoculation, plus the untold risks he places others in by remaining unvaccinated, place him on shaky ground. It doesn’t matter if he has expressed willingness to forego the chance to claim more major championships. He’s a global citizen; he doesn’t live in a bubble. He’s being disingenuous when he says he’s not part of the anti-vax movement while refusing to get jabbed. He’s likewise being duplicitous when he claims to acknowledge the science behind vaccination, and yet doesn’t want to touch it with the proverbial 10-foot pole.

In short, Djokovic hasn’t done himself any favors with his cringe-inducing assumptions. Yet, for all the problems he creates off the court, there can be no doubting his success on it. He’s a magician with a racket in hand, and the very stubbornness that has him taking unconventional positions clearly fuels his greatness. Last Sunday, he cemented his hold on the sport with his record 23rd Grand Slam title, breaking a tie with established king-of-red-clay Rafael Nadal. He has claimed the men’s singles trophy on each major stop at least three times, a feat no one else has accomplished. And, his advancing age notwithstanding, he appears destined to keep rewriting history.

Indeed, Djokovic is once again on track to hit the most elusive of all targets: a calendar-year Grand Slam. He already has the Australian and French Opens in hand, and is the overwhelming favorite to take Wimbledon. Should he do so next month, he will be in prime position to complete what he couldn’t in 2021. And considering his uncanny capacity to learn from his missteps, he isn’t likely to wilt in the moment as he did two years ago. Heck, he’s so self-assured that he doesn’t hesitate to acknowledge “win[ning] the most Slams and break[ing] the record for [most number of weeks] at Number One” as his “clear goals.”

So, yes, Djokovic cannot help but make outlandish, if dangerous, claims. At the same time, his mind-over-matter conviction informs his capacity to perform under extreme pressure. It’s certainly how he has managed to stay on top in the face of a significant youth invasion, and it figures to keep him engaged moving forward. Which is why, in the final analysis, his objectives look to be a matter of when, not if. For all the variabilities life has introduced, he deems himself the only constant that matters.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Residents in for months-long displacement as Philippine volcano spews lava, gases

MANILA – At least 14,000 people evacuated from around a volcano spewing lava and noxious gases in the central Philippines may remain displaced from their homes for months, authorities warned on Tuesday.

Incandescent lava was seen flowing slowly from the mouth of the 2,462-metre (8,077-foot) Mayon volcano, which was placed on a high alert level last week following seismic tremors and hundreds of rockfall events.

“Based on our previous experiences, this volcanic activity may persist for a few months,” Teresito Bacolcol, chief of the state volcanology and seismology agency, told DZMM radio, adding that residents usually living within a 6 km (3.7 miles) radius of the volcano would have to stay in evacuation centres.

Roughly 14,000 people have been evacuated and are sheltering in schools and community centres, disaster agency data show.

Larry Llenaresas, a community leader in Albay province, told DZMM radio there was a need for more food and drinking water for the displaced.

Authorities said people living further away from the volcano should also be ready for possible evacuation, with the police placing checkpoints to prevent residents from returning.

“We will make sure evacuees cannot return until they are advised to do so,” police regional director Westrimundo Obinque told reporters.

Mayon is a tourist attraction because of its near near-perfect conical shape.

Dorothy Colle, a provincial tourism official, said while the no-go zone was being enforced, people were still flocking to observation stations to witness lava flows, which appear particularly bright at night.

Mayon is among the most active of the Philippines’ 24 volcanoes, having erupted more than 50 times in the last four

centuries. Its most destructive eruption came in February 1841

when lava flows buried a town and killed 1,200 people.

The Philippines is in the Pacific “Ring of Fire,” where volcanic activity and earthquakes are common. – Reuters

[B-SIDE Podcast] PHL potential as a key player in global semiconductor industry

Follow us on Spotify BusinessWorld B-Side

The Philippine government needs to invest more in the local semiconductor industry to boost its competitiveness globally, according to RS Group PLC, an electronics and industrial products distributor.

In this B-Side episode, Sean Fredericks, the president of RS Asia-Pacific, discusses with reporter Sheldeen Joy Talavera the potential of the Philippines to become a key player in the industry.

“The Philippines itself is a critical player in the global semiconductor industry… The country’s strategic location provides crucial access to the Southeast Asian market through international shipping and air routes,” he said.

He also said that the country’s English-proficient population and strict adherence to intellectual property protection and international labor laws make it an attractive investment destination.

According to trade data released by the Philippine Statistics Authority, the value of the country’s electronics product exports in 2022 reached $45.66 million, representing a 13.9% increase from the previous year. Semiconductors accounted for the majority at $35 million, followed by electronic data processing at $6 million, and office equipment at $504,450.

Mr. Fredericks highlighted several areas that the government needs to address in order to improve the semiconductor industry.

“The challenges I would say include the country’s inadequate infrastructure, including power supply, roads, and networks. These are basic infrastructure elements that require expansion to support the industry,” he said.

He also highlighted the shortage of high-end skilled talent, such as engineers and technicians, due to Filipinos seeking opportunities abroad.

Moreover, Mr. Fredericks discussed how the ongoing chip dispute between the United States and China can be an opportunity for the Philippines to solidify its position in the industry.

“The ongoing US-China dispute hopefully presents the Philippines with some new opportunities for business. Many US manufacturers are now resourcing away from China to balance their risk,” he said.

The B-Side episode was recorded remotely on May 23, 2023.

Follow us on Spotify BusinessWorld B-Side

Going beyond borders: Asian Consulting Group addresses global and local tax challenges at International Tax Conference on June 15

The Asian Consulting Group (ACG), esteemed for its exceptional tax consultancy services for leading corporations, SMEs, and public figures within the Asia-Pacific region, is gearing up to host the prestigious International Tax Conference in the Philippines. Scheduled for June 15th at the IM Hotel in Makati City, the event marks the successful culmination of the International Roadshow 2023. This notable initiative has been realized through a collaborative effort between ACG and the Center for Strategic Reforms of the Philippines, alongside an array of esteemed international and local business organizations and foreign chambers.

The International Tax Conference aims to address crucial topics, including global tax issues, sustainability, and digitalization. It provides a robust platform for leaders, executives, and influential figures from the corporate and governmental sectors to engage in meaningful discussions.

“As our economy undergoes swift transformations and growth, grasping the complexity of tax regulations has become a fundamental necessity. The International Tax Conference has been meticulously designed to empower Filipino professionals with the critical knowledge and acumen required to proficiently navigate this dynamic landscape effectively,” says Mon Abrea, Chairman and CEO of Asian Consulting Group.

Hosted by multi-awarded journalist Rico Hizon, some of the conference’s key speakers include representatives from The World Bank, Asian Development Bank, International Monetary Fund, United Nations Office on Drugs and Crime, OECD, Department of Budget and Management, and the Senate of the Philippines.

For those keen to broaden their understanding of the Philippine tax framework and forge meaningful connections with industry leaders, the International Tax Conference on June 15th at the IM Hotel, Makati, presents an unparalleled opportunity. Additional information is readily available on the ACG website at https://www.acg.ph. Inquiries can also be directed via email to itc@acg.ph or via mobile at +63 917-627-8805.

 


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GDP growth may slow in Q2 and Q3

MARIAH DALUSONG-UNSPLASH

PHILIPPINE economic growth is expected to slow further in the coming quarters as consumer spending eases.

Nomura Global Markets Research lowered its Philippine gross domestic product (GDP) growth forecast for the second quarter to 5.6% from the 6.4% it gave a month ago, its monthly economic report showed.

It also trimmed its third-quarter projection to 4.8% from 4.9% previously.

“We believe consumer spending growth will continue to moderate, given falling household purchasing power,” Nomura research analysts Euben Paracuelles and Rangga Cipta said.

The Philippine economy grew by 6.4% in the first quarter, the slowest in two years. This was also below the 8% posted in the same quarter a year prior but was within the government’s 6-7% GDP growth target for 2023.

Household final consumption expenditure, which contributes around three-fourths to GDP, grew by 6.3% in the first quarter. However, this was slower than the 7% growth in the previous quarter and the 10% a year earlier amid elevated inflation.

“Public infrastructure spending is likely to improve, given the government’s strong prioritization, but private investment still faces headwinds from sharply higher interest rates,” Nomura Global Markets Research added.

This year, the Philippine government is planning to spend 5.3% of GDP on infrastructure, equivalent to around P1.29 trillion. The government is looking to spend 5-6% of GDP on infrastructure until 2028.

Gross capital formation, the investment component of the economy, grew by 12.2% in the first quarter, slower than 17.7% last year.

Nomura said export growth will also continue to weaken as the US economy may begin to slow down in the third quarter.

“We expect the current account deficit to stay large at 4.1% of GDP in 2023 reflecting the combination of weakening export growth, the boost to capital goods imports from infrastructure projects and higher food imports to address domestic supply shortages,” it said.

This forecast is higher than the Bangko Sentral ng Pilipinas’ (BSP) projection of a $17.1-billion deficit for 2023, which is equivalent to 4% of GDP.

The country posted a current account deficit of $17.8 billion in 2022, higher than the $5.9-billion gap a year earlier, as the trade in goods deficit widened.

Meanwhile, Nomura raised its growth forecast for the fourth quarter to 5.1% from the 4.3% it gave in May.

As a result, it kept its full-year GDP growth forecast at 5.5%, below the government’s goal.

On the other hand, Pantheon Macroeconomics also kept its 5.5% GDP growth forecast for the Philippines this year, it said in a separate note on Monday.

“Support is waning on two fronts: debt growth has hit a ceiling and remittances growth is evaporating,” Pantheon Macroeconomics economists Miguel Chanco and Moorthy Krshnan said.

Outstanding loans by big banks grew by 9.7% to P10.86 trillion in April, BSP data showed.

“Credit card debt growth year over year is now plateauing around the 30% mark — about double the rate of the historical average — with trends at the margin no longer strengthening,” the think tank said.

“The rise and fall have been the most evident, so far, in salary-based general consumption — or “payday” — loans, which accounted for 22% of the acceleration in household debt growth last year, despite making up just 11% of total borrowing historically,” it said.

Remittance growth may also slow this year, it added.

Cash remittances sent through banks jumped by 3% to $2.67 billion in March from $2.59 billion in the same month in 2022. This is the biggest monthly inflow recorded since the $2.76-billion cash remittances seen in January.

SLOWER INFLATION
Meanwhile, Nomura Global Markets Research trimmed its full-year inflation forecast to 5.3% from the 5.8% it gave in May.

Headline inflation slowed to 6.1% in May, bringing the five-month inflation average to 7.5%. The central bank expects inflation to average 5.5% this year.

“As expected, the Bangko Sentral ng Pilipinas left its policy rate unchanged at 6.25% on May 18, citing falling inflation momentum. We believe this pause marks the end of BSP’s hiking cycle, as we expect headline inflation to return to BSP’s 2-4% target by September,” Nomura said.

The central bank last month paused its tightening campaign after raising benchmark interest rates by 425 basis points (bps) from May 2022 to March 2023.

“Beyond this, we still believe BSP will only start cutting its policy rate in March 2024, when our US economics team also expects the Fed to start easing; we forecast a total of 125 bps of cuts,” Nomura added.

The US Federal Reserve has hiked borrowing costs by 500 bps since March last year, bringing the Fed funds rate to 5-5.25%. The Fed is set to meet on June 13-14.

Meanwhile, Pantheon Macroeconomics said the BSP should start cutting interest rates by 50 bps initially in the fourth quarter to support growth.

BSP Governor Felipe M. Medalla earlier said the Monetary Board may keep rates on hold at its next two to three policy meetings scheduled on June 22, Aug. 17 and Sept. 21. — Keisha B. Ta-asan

Supermarket association sees slower price increases for grocery items

FREEPIK

By Revin Mikhael D. Ochave, Reporter

PRICE INCREASES for grocery items sold in supermarkets have slowed down amid easing inflation, according to a local industry group.

Steven T. Cua, Philippine Amalgamated Supermarkets Association president, told BusinessWorld via mobile phone that while the group has seen price hikes for some items, “the increases have slowed down.”

“Fewer suppliers have served us notices of price adjustments on a monthly basis. Producers begin to realize that they have relatively reached the apex of marketable or consumer-acceptable prices for their products without sacrificing a drop in sales. You call this price elasticity,” Mr. Cua said.

“The respite is timely and welcome. Consumers can’t take the continuous battering of increased prices of basic necessities and prime commodities (BNPCs),” he added.

Headline inflation eased to 6.1% in May, the lowest print in a year, amid easing food and transport prices. This brought the five-month average to 7.5%, still above the central bank’s 2-4% target and 5.5% forecast for this year.

Mr. Cua said the group has not seen price increases for grocery items, aside from notices of hikes for biscuits and snack foods amid the end of the current school year.

“Some manufacturers have taken the tack of decreasing their product size either without a price increase or coupled with a lower price increase. Some consumers notice this double whammy and shift to other brands or alternatives. Both suppliers and buyers are attuning product offerings and preferences given the shifts in the pricing landscape,” Mr. Cua said.   

With this, consumers could maximize their shopping budget as more product suppliers are implementing more marketing promotions such as bundles and price-offs, he said.

“This is the suppliers’ way of easing prices for a limited duration or for a limited volume of stocks they want to push out. It is their way of selling the slower-moving items in their inventory; not necessarily those about to expire. These offer the consumers honest-to-goodness great deals during this time when you have to squeeze every centavo out of your every peso,” Mr. Cua said.   

He added that consumers could also opt for imported products as these have already implemented discounts amid lower sales.   

“Some importers have begun to experience a slowdown in sales of their product due to perceived excessive price jumps,” Mr. Cua said. “As a result, some of these suppliers are now offering temporary price discounts of as much as 10%,” he added.   

In May, the Department of Trade and Industry (DTI) said it does not expect any increases in the suggested retail prices (SRPs) of BNPCs despite pending price hike petitions from the manufacturers of items such as canned sardines, milk, and salt.

“You have seen that the price increases have already slowed down. Because of what is happening in the country, of course we need to give some comfort to the consumer, a little breathing room,” Trade Undersecretary Ruth B. Castelo said in May. 

The DTI issued the latest SRP bulletin on Feb. 8, which implemented price increases from 45 centavos to P7 for 76 stock keeping units (SKUs), while the prices of 141 SKUs were unchanged from the prior SRP bulletin issued in August last year.    

The grocery items that had price hikes were tomato sauce, processed milk, 3-in-1 coffee, noodles, bread, detergent soap, canned meat, candles, and condiments.

More Filipino millennials, Gen Zs doing side gigs to boost income — Deloitte

AKSON-UNSPLASH

By John Victor D. Ordoñez, Reporter

MILLENNIALS and Filipinos belonging to Generation Z have taken on more side gigs on top of their primary full-time jobs for additional sources of income, according to the business consulting firm Deloitte.

About 71% of Filipino millennials and 65% of Gen Zs have taken on extra part-time or full-time paying jobs, higher than last year’s 61% and 64%, respectively, Deloitte said in a study released on Monday.

This was also higher than the global averages of 37% of millennials and 46% from Gen Z who said they sought more work.

“These results reflect the economic uncertainty millennials and Gen Zs find themselves in as the world continues to recover from the global pandemic,” Frederic B. Landicho, managing partner and chief executive officer of Deloitte Philippines, said.

“And while these young workers are leaning on their resourcefulness to stay afloat, organizations can play a big part in ensuring the financial well-being of their employees.”

Millennials are those born between the early 1980s and the late 1990s, while those from Gen Z are born between 1995 to 2004, the firm noted.

Deloitte said 40% of both generational groups believe their side jobs have allowed them to develop important skills and relationships.

It added that six out of 10 Filipino millennials and Gen Zs believe that if the Philippine economy does not improve in the next year, it would become harder to land a new job.

Job quality worsened in April, as the underemployment rate, which measures workers seeking further employment or longer hours, increased to 12.9% from 11.2% a month earlier, the Philippine Statistics Authority reported last week.

The country’s jobless rate fell to a four-month low in April at 4.5% from 4.7% in March.

Deloitte said 49% of Filipino millennials and 81% of Gen Zs felt burned out due to the intensity and demands of their work.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said workers from these age groups seek additional sources of income since many of them start families and need to send their children to school.

“People that have been hit hard by the pandemic in terms of reduced livelihood would have to find more work to meet the needs of their respective families, especially as expenditures increase due to higher prices,” Mr. Ricafort said in a Viber message.

Meanwhile, Deloitte’s study found that 76% of Filipino millennials and 81% of Gen Zs would consider looking for a new job if their employers would ask them to return to the office full-time.

Also, about 60% of members from both generational groups have rejected an assignment that went against their personal beliefs and values.

“As we’ve seen in our survey throughout the years, these two generational cohorts put a premium on authenticity, and that includes adhering to their personal beliefs across all aspects of their life,” Deloitte Philippines’ Mr. Landicho said.

The study also showed that more than 80% of workers from both groups agreed that an employer’s increased focus on mental health at work would lead to positive changes within their workplaces.

Deloitte’s study gathered responses from 14,483 Gen Z workers and 8,373 millennials across 44 countries. Of the respondents, 321 Filipino Gen Z employees and 109 millennials provided responses.

Bienvenido S. Oplas, Jr., founder of free market think-tank Minimal Government Thinkers, said younger members of the workforce also tend to be more ambitious than older generations, compelling them to seek more sources of income.

“Young people are just more ambitious and take on bigger dreams than older generations, such as becoming a billionaire by age 50 or younger,” Mr. Oplas said in a Viber message.

Coding to training: Philippines tackles online child sexual abuse

SERGEY ZOLKIN-UNSPLASH

MANILA — Inside an unmarked building in a Manila business district, a war is being waged 24/7 against dark and mostly hidden crimes — the online sexual abuse and exploitation of children.

Here, a system developed by cybersecurity experts at PLDT — the Philippines’ biggest telecommunications company — is blocking millions of attempts by subscribers to access child sexual abuse material every day.

Since last November, PLDT has blocked more than 1.3 billion attempts to access such material with its pioneering child protection platform, a system that checks user searches against a vault of known web addresses hosting sexually abusive content.

“It’s a lot, it’s worrying,” PLDT Chief Information Security Officer Angel Redoble told the Thomson Reuters Foundation. “We don’t know how fast the enemies are getting better. We must cope daily.”

The Philippines was named the world’s top source of online child sexual exploitation content in a 2020 study by the International Justice Mission, a US-based nongovernmental organization working against sex trafficking and exploitation.

According to the study, endemic poverty is helping drive a surge in abuse in the Philippines, where about 20 million of the 115 million population live below the poverty line.

An estimated two million Filipino children have been victims of online sexual abuse and exploitation, according to a study led by UNICEF published last year.

The country’s justice ministry has told telecoms companies and internet service providers to inform law enforcement agencies of child sexual abuse material and update their technology to block it, or face prosecution.

But data privacy laws in the Philippines limit what internet service providers can access — they can see a user’s search activity but are not allowed to monitor individual users or their communications.

Tech experts fear the data protection laws could unintentionally shield some crimes, such as online child sexual exploitation.

BORDERLESS CRIME
The International Justice Mission said online child sexual exploitation was a “fast-growing, borderless crime,” and that perpetrators in Western countries lured Filipinos to sexually abuse children and offer images or videos of the exploitation online.

Livestreaming is believed to be more prevalent in the Philippines than in other countries, it said, due to cheap internet access, robust money transfer infrastructure, widespread English-language proficiency and the country’s reputation as a sex trafficking hub.

Philippine telecoms companies and internet service providers are currently unable to block livestreamed content.

The Britain-based Internet Watch Foundation, a technology-led child protection group, said abused children and criminals were often in different parts of the world.

“It may surprise you, but Europe is by far and away the worst place for hosting this material,” said the foundation’s press manager, Josh Thomas.

As the coronavirus pandemic pushed more Filipinos into poverty, the country saw a 260% increase in reports of online sexual exploitation between 2019 and 2022, the Philippine Department of Justice said.

ROLE OF TECH COMPANIES
PLDT has been working on blocking child sexual abuse-related material since 2018, but back then it could only stop suspicious domains.

“We thought that to be able to block on a content level, we would violate privacy-related laws by sniffing through the traffic of our subscribers,” Mr. Redoble said.

The company built its own cybersecurity group, which came up with a method to screen for child sexual abuse material without violating data privacy laws. But it needed a way detect the offensive material.

Internet Watch Foundation analysts came to the group’s aid by assigning a unique “hash” — a kind of digital fingerprint — to items online confirmed to contain child sexual abuse.

“It’s a line of code which, crucially, cannot be reverse engineered to produce or access abuse imagery,” said Mr. Thomas.

The Internet Watch Foundation provides a hash list of confirmed child sexual abuse material for internet service providers to block. As of last month, PLDT had received more than 400,000 such codes from the foundation.

Mr. Thomas said blocking can “protect the victims of child sexual abuse from further victimization, protect internet users from seeing such images and prevent pedophiles from accessing this content online.”

The company’s top competitor, Globe Telecom, has also partnered with the foundation to boost online child protection.

In the first quarter of this year alone, Globe Telecom blocked more than 65,000 sites carrying child sexual abuse.

But because the crime is borderless, the Internet Watch Foundation and telecoms companies say blocking is only one way of fighting the abusive material.

“We must bring suspects to court,” said Mr. Redoble.

HOLISTIC APPROACH
Civil society organizations say the battle against child sexual abuse material must be waged within communities, especially in poor areas, where criminals, including parents, can prey on vulnerable children.

In Cebu province, international aid group Terre des Hommes Netherlands has partnered with the Bidlisiw Foundation, a local group fighting human trafficking, in a three-year online child safety program called Project SCROL.

Launched this year, the project aims to engage internet service providers, telecoms companies, money transfer agencies and tech companies to build a system for speedy access to justice, and reporting and referral pathways for victims of online child sexual exploitation.

It also operates in Cambodia, Nepal and Kenya.

“Telecoms companies have the technology and tools that we don’t have. But they lack influence on the ground, especially on local governments, enforcers, and households in spreading awareness,” said Judith Pulvera of Bidlisiw.

Project SCROL-trained staff work in schools and resorts in the tourist resort of Cebu to teach people how to spot the red flags of child sexual exploitation and report them to authorities.

The use of separate e-mail accounts to send or receive money transfers from abroad, for example, could be one indicator of offenders attempting to hide their identity.

The project also provided digital training on child safeguarding and protection to law enforcers and frontline service providers for abused and vulnerable children.

Project SCROL also aims to aid the government in implementing laws to punish abusers.

Last year, parliament passed a law that penalizes the production, distribution, possession and accessing of child sexual abuse material. It details the duties of internet service providers, content hosts, social networking sites and financial institutions to block the material.

For Mr. Redoble, the next goal should be “to create a cleaner cyberspace.”

He is proposing a “global chain of trust” among telecoms companies and internet service providers globally to wipe out, once and for all, harmful websites and domains that spread child sexual abuse online.

“When the environment is cleaner, it’s safer, especially for women and children,” said Mr. Redoble. — Thomson Reuters Foundation