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Philippine banks unlikely to face significant risks from FX volatility

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PHILIPPINE BANKS are unlikely to face significant risks from foreign exchange volatility as their dollar exposures are low, analysts from Moody’s Investors Service and Fitch Ratings said.

“Currency fluctuations, in particular, a weaker peso, would have limited impact on Philippine banks’ liquidity and capital given most of the banks are funded by local currency deposits and have a relatively low share of unhedged foreign currency borrowings,” Moody’s Investors Service Financial Institutions Group Analyst Joyce Ong said in an e-mail.

Moody’s likewise said in a report released on Monday titled “Foreign Currency Risk is Acute for Some Banking Systems” that foreign exchange risk is low for banks in the Philippines.

It said banking systems in countries such as the Philippines, Indonesia, Vietnam, Chile, Cote d’Ivoire, and Guatemala have minimal exposure denominated in dollars compared with other economies in the region.

“On the other hand, Philippine banks could see some uptick in problem loans from corporate borrowers that derive their earnings in pesos but are heavily reliant on foreign currency borrowings, such as those in the import business, as these companies face higher debt burden with weaker pesos and elevated refinancing risks amid tight dollar liquidity,” Ms. Ong said.

“But the exposure to such at-risk corporate borrowers is small in the Philippine banking system and we expect overall asset quality to remain manageable given the banks lend mostly to local corporates that have diversified cash flows and buffers to withstand currency fluctuations,” she added. 

The peso this year slumped by as much as 13.6% against the dollar from its P51 close on Dec. 31,2021, hitting a record low of P59, last seen on Oct. 17, due to the hawkish stance of the US Federal Reserve.

The local unit has since bounced back, ending at P55.45 a dollar on Wednesday, up by 52.5 centavos from its P55.975 close on Tuesday, based on data from the Bankers Association of the Philippines.

“Philippine banks generally only have moderate direct foreign exchange (FX) exposures, so we don’t see movement in the FX market posing a huge risk to their balance sheets” Fitch Asia-Pacific Financial Institutions Director Tamma Febrian said in an interview with BusinessWorld.

He added that only 8% of Philippine banks’ loans are denominated in dollars, while on the funding side, around 15% of their deposits are denominated in foreign currency.

“We could see some repercussion on the banks’ asset quality should FX continue to fluctuate, in particular for borrowers who have borrowed a significant proportion in foreign currency and have unhedged exposures,” he said.

Mr. Febrian said these borrowers, such as firms in the energy sector, rely heavily on import materials and may see their cash flows challenged by volatility in the foreign exchange market as this would directly impact their input costs.

He added that borrowers are more concerned about uncertainties in cash flow management.

“Right now, if they see that the peso is going to start stabilizing to a level where they are a little bit more comfortable in the past few years, I think that’s good in terms of their cash flow,” he said. 

On the other hand, currency fluctuations could also support banks’ profitability with regards to their trading gains, Mr. Febrian said.

“For some banks, we did see a bit of a spike on trading gains in recent quarter on the back of the movements in the FX currency as they reap benefit from the wider bid-ask spread,” he said.

“But in recent weeks, we have seen some stabilization in the USD/PHP. Overall, we don’t expect the movements in the FX market to have significant impact for the banking sector’s financial performance over the next few quarters,” Mr. Febrian added. — Keisha B. Ta-asan

SEC revokes registration of 2 investment-taking entities

THE Securities and Exchange Commission (SEC) has revoked the corporate registrations of Koen Solutions OPC and Phil Maritime and Ocean Institute of Technology, Inc. (PMOIT) for illegally soliciting investments from the public.

In a press release on Thursday, the SEC said Koen Solutions violated Section 44 of the Revised Corporation Code and Sections 8, 26 and 28 of the Securities Regulation Code.

The SEC’s Enforcement and Investor Protection Department (EIPD) found out that Koen Solutions had been inviting the public to invest in its application for a guaranteed 2.5% to 3% daily income or 75% to 90% monthly income.

Interested individuals must put in money on “financial trading robots” which supposedly search for and trade cryptocurrencies that bring profits to investors.

On Sep. 9, the regulator issued an advisory against Koen Solutions that also directed it to stop soliciting investments until it has secured the license to do so.

Koen Solutions continued to sell investments, the SEC said, adding that the entity claimed to have applied for a secondary license.

“Considering that nowhere is it stated in its primary purpose that Koen Solutions is authorized to engage in the selling or offering for sale of securities to the public, the activity of Koen Solutions of selling, or offering for sale of investments is considered an ultra vires act,” the SEC order read.

Meanwhile, Phil Maritime was found to be enticing the public to invest P350,000 for a 40% share in the school’s annual income, translating into a P206,000 share or a quarterly income of at least P51,000.

The promised return on investment supposedly comes from the school’s revenues, earnings from its training center, dormitory revenues, and earnings from the school’s commercial center.

“This scheme is unsustainable, as it must rely on a continuous inflow of new investors in order to make payouts to earlier investors, all the more made glaring considering that it has no actual operations yet to speak of,” the EIPD said.

On Sep. 13, the SEC issued an advisory against PMOIT and advised the public not to invest in the group.

The regulator said the investment schemes of PMOIT and Koen Solutions involve the sale and offer of securities to the public in the form of investment contracts that are required to be registered with the commission.

“The certificates of incorporation of Koen Solutions OPC and PMOIT have thus been revoked, with such status caused to be reflected on the online database of the SEC,” the regulator said. — Justine Irish D. Tabile

Who did we listen to in 2022? Spotify knows

WHO did we listen to in 2022? According to music streaming service Spotify, the world enjoyed the music of Bad Bunny, Taylor Swift and Drake, while Filipinos opted for local sounds.

Spotify recently unveiled its 2022 Wrapped campaign — announcing the top artists, albums, songs, playlists, and podcasts that were favored by more than 456 million listeners around the world. Spotify users can also find their personalized Wrapped experience, with features that note the soundtrack of their year.

Globally, Bad Bunny, Taylor Swift and Drake topped the Wrapped lists across most-streamed album, track, and artist. For the third year in a row, Puerto Rican rapper Bad Bunny took the number one spot for most-streamed artist globally, with more than 18.5 billion streams this year.

Closer to home, Filipinos went local.

Outranking global hits, NOBITA’s “Ikaw Lang” was the most streamed track in the Philippines, followed by  Arthur Nery’s “Pagsamo” (#2), Adie’s “Paraluman” (#3), Zack Tabudlo’s “Pano” (#4) and Arthur Nery’s “Isa lang” (#5). Pinoy love songs even beat out Troye Sivan’s “Angel Baby” (#6) and Justin Bieber’s “Ghost”(#11).

Filipinos took five out of the top 10 spots in this year’s Top Artists, and breaking through the list is Zack Tabudlo, who secured the #3 spot and emerged as this year’s Top Local Artist. Mr. Tabudlo’s cathartic album Episode was also the second most streamed album in the country, while Ben&Ben maintained their fourth place from 2021 and kept a spot in the top list for the fourth consecutive year.

Spotify’s RADAR program, an initiative to support emerging artists, has enabled new local artists and tracks to be added to the daily soundtrack of Filipinos. Emerging artists like P-Pop groups BGYO and BINI were amongst the Top RADAR Philippines Artists, alongside Adie.

Filipino creators also reigned in this year’s Top Podcasts. Intimate sharing of life stories and advice are a hit among Filipinos with Barangay Love Stories, Spotify Exclusive skypodcast, Dear MOR: The Podcast, and Spotify Original Hugot Marcelo taking up the top four spots. Comedic conversations also resonated among locals, with Spotify Exclusive Punchline with Alex Calleja taking up the fifth spot.

PERSONALIZED EXPERIENCE

Eligible Spotify users can access their personalized 2022 Wrapped experience in their updated Spotify mobile app (iOS and Android).

In addition to learning which were their favorite artists, genres, songs, and podcasts — and the number of minutes they listened to Spotify — there is also “Your Listening Personality,” a new feature that looks into the listener’s music taste based on their 2022 listening trends, with 16 different Spotify-created Listening Personality types. Additionally, “Audio Day” is an interactive story that gives users a peek into how their music taste evolves throughout the day.

Spotify users can now share their Wrapped cards on Instagram and Facebook, along with custom Wrapped-themed GIFs.

In 2022, Spotify expanded to include messages from more than 40,000 artists like Taylor Swift, Billie Eilish, J Balvin, Måneskin and more. With “Your Artist Messages,” eligible fans will get a personalized video feed with thank you messages from some of their top artists in 2022, with each video followed by their most listened song from that artist this year.

As a part of the partnership between Spotify and FC Barcelona, fans can also find 2022 Wrapped videos on social from some of their favorite players, including Robert Lewandowski, Alexia Putellas, Pedri, and Ansu Fati.

SPOTIFY 2022 WRAPPED PHILIPPINES TOP LISTS

Philippines’ Top Artists

Taylor Swift

BTS

Zack Tabudlo

Ben&Ben

Justin Bieber

Philippines’ Top Female Artists

1. Taylor Swift

2. Ariana Grande

3. Moira dela Torre

4. Olivia Rodrigo

5. NIKI

Philippines’ Top Male Artists

1. Zack Tabudlo

2. Justin Bieber

3. Arthur Nery

4. The Weeknd

5. Adie

Philippines’ Top Groups

1. BTS

2. Ben&Ben

3. LANY

4. BLACKPINK

5. TWICE

Philippines’ Top Albums

1. Proof, BTS

2. Episode, Zack Tabudlo

3. Red (Taylor’s Version), Taylor Swift

4. SOUR, Olivia Rodrigo

5. Midnights, Taylor Swift

Philippines’ Top Local Artist

1. Zack Tabudlo

2. Ben&Ben

3. Arthur Nery

4. Moira dela Torre

5. Adie

Philippines’ Top Tracks and Top Local Tracks

1. “Ikaw Lang,” NOBITA

2. “Pagsamo,” Arthur Nery

3. “Paraluman,” Adie

4. “Pano,” Zack Tabudlo

5. “Isa Lang,” Arthur Nery

Philippines’ Top Spotify Playlists

1. Hot Hits Philippines

2. Today’s Top Hits

3. OPM Favorites

4. Tatak Pinoy

5. Kalye Hip Hop

Philippines’ Top Podcasts

1. Barangay Love Stories

2. skypodcast

3. Dear MOR: The Podcast

4. Hugot Marcelo

5. Punchline with Alex Calleja!

Philippines’ Top Podcast Genres

1. Love & Relationships

2. Pop Culture

3. Self-Help

4. Horror & Paranormal

SPOTIFY 2022 WRAPPED GLOBAL TOP LISTS

Most Streamed Artists Globally

1. Bad Bunny

2. Taylor Swift

3. Drake

4. The Weeknd

5. BTS

Most Streamed Songs Globally

1. “As It Was” by Harry Styles

2. “Heat Waves” by Glass Animals

3. “STAY (with Justin Bieber)” by The Kid LAROI

4. “Me Porto Bonito” by Bad Bunny feat. Chencho Corleone

5. “Tití Me Preguntó” by Bad Bunny

Most Streamed Albums Globally

1. Un Verano Sin Ti, Bad Bunny

2. Harry’s House, Harry Styles

3. SOUR, Olivia Rodrigo

4. =, Ed Sheeran

5. Planet Her, Doja Cat

Most Popular Podcasts Globally

1. The Joe Rogan Experience

2. Call Her Daddy

3. Anything Goes with Emma Chamberlain

4. Caso 63 (All Languages)

5. Crime Junkie

Ex-Wirecard boss goes on trial for fraud

MUNICH — The trial begins on Thursday of the former Wirecard chief executive who steered the payments company through its rise and spectacular collapse two years ago in a fraud scandal that shook German politics and tarnished the country’s business reputation.

The 53-year-old former chief executive officer Markus Braun, who has been in custody since his arrest in 2020, and two other managers of the defunct blue chip firm face charges including fraud and market manipulation.

They could be jailed for up to 15 years if convicted.

Mr. Braun has denied embezzling money from Wirecard and accused others of running a shadow operation without his knowledge.

He will appear in Munich’s largest and newest courtroom, a bomb-proof underground hall built in the Stadelheim prison complex that is also intended to try terror suspects. A verdict is not expected before 2024 at the earliest.

Founded in 1999 and based in the Munich suburb of Aschheim, Wirecard’s fairy-tale rise transformed it from a payment processor for pornography and online gambling to a showpiece for a new type of German tech company that could compete with the established titans of Europe’s largest economy.

It displaced Commerzbank in Germany’s DAX blue-chip index and at one point was worth $28 billion, but its demise embarrassed the Germany establishment, placing politicians who backed the company and regulators who took years to investigate it under scrutiny.

After batting away suspicions of wrongdoing from investors and journalists and successfully lobbying the German authorities to investigate those who were scrutinizing its finances instead, Wirecard was forced to admit in June 2020 that €1.9 billion were missing from its balance sheet.

The prosecution has said Wirecard’s management invented vast sums of phantom revenue to hoodwink investors and creditors.

The government of then Chancellor Angela Merkel, which had previously backed Wirecard’s pursuit of an acquisition in China, briefly considered bailing out the company.

However, within days, Wirecard became the first-ever DAX member to file for insolvency, owing creditors nearly $4 billion.

EVIDENCE
Prosecutors will draw on evidence from Braun’s co-defendant Oliver Bellenhaus, the former head of Wirecard’s subsidiary in Dubai, who became a key witness after turning himself in to the German authorities in 2020.

Another former executive, Stephan von Erffa, is also on trial. He has publicly expressed regret about the events at Wirecard but denied orchestrating them. His lawyer said von Erffa did not want to comment on the charges.

A key suspect, Wirecard’s former chief operating officer Jan Marsalek, is an international fugitive whose whereabouts are unknown.

Following Wirecard’s demise, the head of German financial regulator BaFin resigned and the head of Germany’s accounting watchdog also stepped down.

There are 100 court dates provisionally scheduled until the end of next year in the case. — Reuters

Meralco eyes US grant to look into small nuclear reactors

POWER distributor Manila Electric Co. (Meralco) is applying for a grant from the United States to do a feasibility study on introducing nuclear energy in the Philippines, its top official said.

“We are applying [for] a grant from USTDA (United States Trade and Development Agency) to do a feasibility study for SMRs (small modular reactors). We’re looking into nuclear,” Ray C. Espinosa, Meralco president and chief executive officer, told reporters.

Mr. Espinosa said the company is looking at nuclear energy after the pronouncement of President Ferdinand R. Marcos, Jr. to look into its inclusion in the country’s energy mix for energy security.

Earlier, the Department of Energy (DoE) estimated a timeline of 10 years before the country can incorporate nuclear into the mix. It is considering adopting nuclear as a reliable and stable source of energy that will address the Philippines’ energy supply issues.

This week alone, the National Grid Corp. of the Philippines (NGCP) placed the Luzon and Visayas electricity grids under yellow and red alerts as power reserves thinned when several power plants went into forced outages.

For Meralco, the country’s largest electricity distributor, the search for alternative sources of energy has become crucial as the dry season usually results in a surge in power demand.

Jose Ronald V. Valles, Meralco’s first vice-president and head of its regulatory management, gave an assurance that supply is enough for next year’s summer months.

“The Meralco franchise area is safe during summer months. The question of whether the franchise area is safe or not depends on whether there is enough capacity [for] the grid. In Meralco, we have enough supply,” he said on Monday.

Supply sufficiency is possible for as long transmission lines and power plants are available, Mr. Espinosa said.

“The only problem is if outside our franchise area one of the power plants trips, then supply will fall short then the system operator would direct us to [do] manual load dropping (MLD) usually our share of MLD is 70%,” he said.

MLD or rotating power interruptions are implemented to distribute the limited power supply.

NGCP, the system operator, declares yellow alerts when the power supply available to the grid falls below a designated safety threshold. If the supply-demand balance deteriorates further, a red alert is declared, warning consumers of rolling brownouts.

When a red alert is declared, NGCP instructs Meralco to implement MLD.

“Power supply is still tight for next year, but [at] Meralco, we are going to enter into [a] contract for summer months, at least five months covered to make sure that our franchise area has sufficient power,” Mr. Espinosa said.

For now, Meralco is trying to secure two emergency power supply agreements or EPSAs to cover the expected demand in the dry months.

“We have a separate EPSAs that we are trying to procure for 180 megawatts (MW) peaking and 300 MW baseload, but these two EPSAs are still pending for DoE’s approval,” Mr. Valles said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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. — Ashley Erika O. Jose

What to See This Week (12/09/22)

Plan 75 

SET in Japan in the near future, the film tells of a government program, Plan 75, which encourages senior citizens to agree to voluntary euthanasia to remedy the problems of a super-aged society. An elderly woman whose means of survival are vanishing, a pragmatic Plan 75 salesman, and a young Filipino laborer find themselves facing choices of life and death. The winner of a Camera D’Or Special Mention at the 2022 Cannes Film Festival’s Un Certain Regard section, the film is co-written and directed by Chie Hayakawa, and features Filipina actress Stefanie Arianne, Chieko Baisho, and Hayato Isomura. Variety’s Peter Debruge writes, “Plan 75 might have been a risible exercise in emotional manipulation if not for the sensitive tone with which Hayakawa approaches all of her characters. The film’s underlying agenda is hardly subtle, and yet, Hayakawa leaves more than enough room for audiences to disagree — that is, to consider the actual merits of deciding the hour and means of one’s own exit.” Film review aggregate site Rotten Tomatoes’ Tomatometer gives the film a score of 92%, and an audience score of 100%.   

MTRCB Rating: PG

A Mermaid for Christmas 

THIS 2019 TV movie hits the big screen in the Philippines in time for the holidays, and combines classic Christmas themes with an escapist fantasy element that only a mermaid can provide. Directed by Michael Caruso, it stars Kyle Lowder, Kathleen Gati, Arriane Zucker, Sheree J. Wilson, and Chadwick Armstrong.   

MTRCB Rating: PG

Call Me Papi

AFTER the COVID-19 pandemic stretched out its shooting schedule over three years, Call Me Papi is finally finished and out for theatrical release. The film follows five men living under one roof who each face various challenges. Produced by Feast Foundation in cooperation with Viva Films, and directed by Alvin Yapan, it stars Enzo Pineda, Albie Casiño, Lharby Policarpio, Royce Cabrera, and Aaron Concepcion, with Irma Adlawan, Anja Aguilar, and Katya Santos. It features the song “Inuman Na” by Parokya ni Edgar.

MTRCB Rating: R-16

Too early for minimum wage increase — PCCI

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By John Victor D. Ordoñez, Reporter

THE Philippine Chamber of Commerce and Industry (PCCI) on Wednesday said it was too early for trade unions to ask for a daily minimum wage increase in Metro Manila, adding that inflation and oil prices would probably taper off starting next year.

“What is important right now is to sustain their workers’ jobs and create more opportunities to boost jobs,” PCCI President George T. Barcelon said by telephone. Regional tripartite wage boards would likely address worker pay next year, he added.

In June, the Metro Manila Wage Board issued a P33 minimum wage hike. Wage boards can only act on wage petitions a year after a region’s last wage order.

The Kapatiran ng mga Unyon at Samahang Manggagawa trade union filed a petition on Monday seeking a P100 increase in the daily minimum wage in the National Capital Region.

Minimum wage earners who work five days a week earn P11,400 monthly, which is lower than average monthly expenses of P15,666, it said, citing 2018 government data.

“The average inflation rate in the Philippines during that time was 5.2% for the entire 12 months, which was surpassed [in the first 10 months of] 2022, averaging 5.4%,” it said in a statement. Rising prices make it difficult to live on a daily minimum wage of P570, it added.

On Tuesday, the Philippine Statistics Authority (PSA) said inflation quickened to a 14-year high of 8% in November. This was faster than 7.7% in October and the median estimate of 7.8% in a BusinessWorld poll of economists last week.

Mr. Barcelon said the government should focus on strengthening ties with micro, small and medium enterprises to help increase jobs in the country.

Labor Secretary Bienvenido E. Laguesma earlier said his department would focus on helping the sector to improve the quality of jobs.

Job quality improved in October as the underemployment rate, or Filipinos looking for more work, eased to 14.2% from 15.4% in September, PSA said on Wednesday.

The Philippine jobless rate dropped to 4.5% in October, the lowest since October 2019 before the pandemic hit the country and the world. Last week, the International Labour Organization (ILO) said inflation continues to cut the purchasing power of low-paid workers.

In the first half, global wages fell in real terms for the first time in the 21st century, it said.

Mr. Barcelon welcomed the President Ferdinand R. Marcos, Jr.’s vow to bolster the manufacturing sector to boost job creation.

Mr. Marcos told a forum on Tuesday developing the manufacturing sector and local markets would help expand economic output.

The ILO has said the Philippines has the potential to boost jobs in manufacturing while it recovers from the pandemic.

The manufacturing sector posted lower employment numbers in October, with 3.667 million workers from 4.45 million a month earlier.

“Developing the manufacturing sector could be crucial in a big way if we are able to attract foreign investors since marginalized operators have not fully recovered from the pandemic,” Mr. Barcelon said.

Manulife Philippines launches online platform

THE MANUFACTURERS LIFE Insurance Co. (Phils.), Inc. (Manulife Philippines) launched its online shop on Wednesday as more customers go digital.

The digital platform called Manulife Shop was developed in partnership with Democrance, an international insurtech startup, the company said in a statement.

“Manulife Shop is our latest initiative to provide intuitive, convenient, and frictionless customer experience for today’s hyper-digital Filipinos, in line with our ambition to be the most digital, customer-centric global company in our industry,” Manulife Philippines President and Chief Executive Officer Rahul Hora was quoted as saying.

“Through Manulife Shop, we respond to the needs of Filipinos who want access to easy and affordable insurance protection options, with the comfort of digitally driven customer experiences where they can transact seamlessly,” he said.

Manulife Philippines said its own study showed more Filipinos are looking to buy insurance products online.

“Manulife’s recent study, “The Modern Filipino Family: Exploring family dynamics and digitalization in the new normal,” found that 90% of the Filipinos surveyed use e-commerce apps, and 82% use finance apps for cashless payments or to buy insurance,” it said.

“In addition, among those surveyed, 25% of Filipino Gen X and 33% of Filipino millennials revealed that they have bought insurance products online in the past 12 months, while 41% of Gen Zs are considering purchasing insurance products online in the next 12 months. Participants in the survey cited convenience (45%), sense of security (22%), and protection (17%) as their reasons for buying insurance products online,” Manulife Philippines added.

The online shop currently offers three products for purchase, namely 365 Ready Accident, an accident life insurance product that covers accidental death, dismemberment, total permanent disability, double indemnity, and family assistance for as low as P199 yearly; 365 Ready Life, a term life insurance plan that provides coverage for just P249 a year; and 365 Ready Duo, a term life and personal accident insurance plan offered for as low as P448 annually.

“Manulife Shop serves the growing number of Filipinos seeking digitally enabled insurance to secure their protection,” Manulife Philippines said.

The shop can be accessed via www.manulife.com.ph/online-shop. Interested customers may also tap a Manulife financial advisor for consultation. — A.M.C. Sy

Yamaha Motor remains keen on bringing in e-bikes, e-scooters

MOTORCYCLE brand Yamaha Motor Philippines, Inc. is still considering a plan to introduce its electric bikes and electronic scooters to the country as a proposal for zero tariffs on select imported electric vehicles or EVs remains pending.

Hiroshi Koike, Yamaha Motor Philippines president, said in an interview on the sidelines of the company’s recent solar roof launch in Batangas that the company was still studying whether to bring in its e-bikes and e-scooters.

Mr. Koike said that the proposed zero-tariff policy on EVs, including e-bikes and e-scooters, would help in the decision, but said that it is not enough.

“It (zero-tariff) is better than nothing. But I don’t think it is enough. Simply speaking, if we were to come up with e-bike that has a similar performance as the current internal combustion engine, the price would be double. A few percent would not offset those,” Mr. Koike said.

“We need to think about it (e-bike) but we already mass produce e-bikes in Vietnam. These are exported to Europe. We already have the products, [but] it is sold elsewhere. We need to think a lot before bringing these in because we need to think how to have battery stations,” he added.

On Nov. 24, the National Economic and Development Authority (NEDA) Board endorsed an executive order (EO) lowering the most favored nation tariff rates on completely built-up units of EVs to zero percent for five years. The current tariff rates for EVs range from 5% to 30%.

The proposed EO covers electric passenger cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles. However, the proposed EO excludes hybrid EVs.

Mr. Koike said that there are still a lot of improvements needed in terms of price, infrastructure, and sustainability before coming up with a decision.

“As a manufacturer, we need to think about how to collect the battery because when we talk about saving the environment, which is supposed to be the objective of EVs, there is no point if people start throwing out the batteries everywhere. It is not good for the environment,” Mr. Koike said.

“EV is only one of the options when we talk about reducing carbon dioxide. We are also looking at hydrogen engine and biofuel. There are different options and I think we should be open-minded and think what is best for the society and customer as well,” he added.

Meanwhile, Mr. Koike said that the country still faces a lot of challenges in accelerating the adoption of EVs.

“We need to invest in infrastructure. There are so many obstacles that need to be done in order to realize (EV adoption),” Mr. Koike said.

“It cannot happen overnight. There’s a region like Europe that is already doing it (EVs). If we can learn from what they’ve done and try to not make the same mistakes, I think we can do it in less work and shorter amount of time,” he added. — Revin Mikhael D. Ochave

Kim Kardashian, other celebrities beat EMax crypto investors’ lawsuit

KIM KARDASHIAN attends the Baby2Baby gala at Pacific Design Center in West Hollywood, California, US, Nov. 12. — REUTERS

A FEDERAL judge in California on Wednesday dismissed a lawsuit against reality TV star Kim Kardashian, boxing legend Floyd Mayweather, Jr. and others over their role in promoting a cryptocurrency, saying it was not clear that the investors who sued actually saw the promotions.

The lawsuit filed in January claims EthereumMax executives schemed with celebrity promoters to induce investors to buy the EMax token, driving up its price and allowing them to sell their own tokens at a profit.

US District Judge Michael Fitzgerald in Los Angeles said that the investors may amend and refile their proposed class action. The decision comes as other celebrity promoters face lawsuits from users of the failed cryptocurrency exchange FTX, whose collapse has deepened an ongoing “crypto winter.”

Sean Masson, an attorney who represents the investors in the EthereumMax case, said they plan to revise their claims to add “a host of additional facts demonstrating defendants’ wrongdoing and liability.”

Michael Rhodes, the lead attorney for Kardashian, said the defense is “pleased with the court’s well-reasoned ruling.”

Attorneys for Mr. Mayweather did not immediately respond to a request for comment. Also named in the lawsuit was former National Basketball Association star Paul Pierce.

Ms. Kardashian promoted EthereumMax in a June 2021 post on Instagram, and Mr. Mayweather wore the company’s logo on his boxing trunks during a widely viewed fight, the investors said.

In Wednesday’s ruling, Mr. Fitzgerald said that investors had failed to show that the executives and promoters schemed to mislead investors, rather than acting in their own self-interest.

The investors’ fraud claims failed because they had not stated whether or when they saw the promotions, the judge wrote.

While the investors may revise those claims, Mr. Fitzgerald permanently dismissed their claim under California’s consumer protection law, which he said applies to tangible goods and services, not “intangible goods” such as cryptocurrency.

Ms. Kardashian agreed in October to pay the SEC $1.26 million to settle claims that she failed to disclose she was paid to promote EthereumMax tokens. She did not admit wrongdoing. — Reuters

Indonesia to allow former politicians to head central bank, financial regulator

INDONESIA’S parliament and government have agreed on a clause in a new financial bill to allow former politicians to stand as central bank governor, three sources familiar with the discussions told Reuters.

Plans by parliament in the last few years to overhaul how the central bank operates have raised market concerns that Bank Indonesia (BI) could lose independence and its policy making could be at risk from political interference.

Parliament and the government were due to approve a final draft of the bill later on Thursday and a member of the parliament commission overseeing the bill said parliament will hold a plenary session for a final vote on Monday.

The bill will also expand the mandate of BI to support economic growth, on top of managing the value of the rupiah, and allow BI to purchase bonds directly from the government “under certain conditions” set by the president, said one of the sources, who declined to be named as the bill is not public yet.

BI and the parliamentary commissions in charge of the bill did not immediately respond when asked for comment.

BI conducted such bond buying during the COVID-19 pandemic, and the quantitative easing program is set to end this year.

Alongside running BI, politicians who resign from their party will also be eligible to head the Financial Services Authority and the Deposit Insurance Corp.

“Politicians have the same rights like others to run for these positions and in terms of competence, they can do it,” the source said.

President Joko Widodo has previously pledged BI would remain independent.

Tauhid Ahmad, an economist at the Institute for Development of Economics and Finance (INDEF), a local think tank, said while currently no specific rule prohibited a politician from standing for a BI post, a “code of ethics” has stopped them from doing so.

Mr. Tauhid said even though a BI candidate would now have to stand down from a political party, ties with the party would remain strong.

“There is a threat BI’s independence’s will be weakened.” he said.

Currently, BI has a six-member board of governors, who are recommended by the president and elected by parliament. They can come from any background, but five existing members are career central bankers and one has a long career as an economist.

A panel of experts to parliament’s legislation committee had previously recommended that cabinet ministers be given voting rights at BI’s monthly monetary policy reviews and to form a Monetary Council to supervise BI, with seats for the finance minister and a minister in the economics sector.

These recommendations, however, were not included in the latest draft, a source said. — Reuters

Manila must scrap labor contracting, says envoy

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By Alyssa Nicole O. Tan, Reporter

THE PHILIPPINES should overcome its labor contracting policy to improve worker conditions, the Swedish ambassador in the Philippines said on Wednesday.

The unavailability of permanent jobs has negatively affected the livelihood of many Filipinos, Swedish Ambassador Annika Thunborg told BusinessWorld on the sidelines of a labor forum.

“Contractualization is an issue,” she said, referring to the corporate practice of giving workers temporary work that is fewer than six months and then ending their employment just before they get regularized to avoid paying benefits.

“In certain sectors, you can have more temporary contracts. It comes with the nature of the business. There are very big sectors, professional groups or just groups of workers in the Philippines that completely have no organization at all,” she added.

She said this concern has led to uncertainty, citing construction workers who have to queue outside the building site to be paid hand-to-mouth, while some people go to mom-and-pop stores in the evening to buy the little they could afford.

“That is not sustainable, that is not good for them,” Ms. Thunborg said. “It is not good for their families, it is not good for the companies and it is not good for society.”

“If the workers are regularized and given permanent contracts, opportunity and responsibility to learn, it will lead to stability and dignity, which in turn will lead to a more efficient and effective work culture and help a business combat corruption,” she added.

At the labor forum, IKEA Philippines head Georg Platzer recounted his experience shopping in the Philippines, saying he felt pity for workers who failed to answer his basic questions.

“There is a lack of competence and then I realized maybe because they don’t get training,” he said. “Maybe they do not get right on boarding, maybe they get changed every six months and then they just change uniforms,” he said.

Mr. Platzer said permanent jobs would let workers reach a certain competence and confidence level. “They feel well when they meet the customer because they have the right answers in place.”

Ms. Thunborg cited the need for dialogue among the private sector, the government and civil society, including trade unions.

“Effective social dialogue can play an important role in reducing inequalities, improving labor market inclusion and creating a stable labor market,” she said.

“Strong labor movements, as well as collective agreements at a central level between the employers and workers have been crucial in achieving successful socioeconomic development in many countries,” she added.

“Agreements of this kind have created decent working conditions and stable labor markets without strikes and unrest, which have been beneficial to employers, employees, companies and society.”

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