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Japan to spend $1.8M on Abe’s funeral despite opposition

Former Prime Minister Shinzo Abe. Image via Chairman of the Joint Chiefs of Staff/Flickr/CC BY 2.0

TOKYO — Japan will spend $1.83 million on a state funeral for slain former leader Shinzo Abe, the government said on Friday, despite growing opposition from a public angered by revelations of the ruling party’s ties to the Unification Church. 

Abe, Japan’s longest-serving but divisive premier, was shot and killed at an election rally on July 8, and although funeral services were held soon after, Japan has decided to hold a state funeral at Tokyo’s Nippon Budokan arena on Sept. 27. 

The government of Prime Minister Fumio Kishida, an Abe protege, decided the state funeral would be paid for solely with state funds. 

But opinion polls show persistent opposition to the idea. In the latest, published on Sunday, 53% of respondents were against a state funeral. 

The public has been angered by revelations of ties between the ruling party and the Unification Church, which a vast majority of respondents in opinion polls feel have not been fully explained and have become a major headache for Kishida, dragging down his support. 

The church, founded in South Korea in the 1950s and famous for its mass weddings, has over the years faced questions over how it solicits donations. 

Abe’s suspected assassin, arrested at the scene moments after the shooting, bore a grudge against the church, alleging it bankrupted his mother, and he blamed Abe for promoting it, according to his social media posts and news reports. 

The man is undergoing psychiatric evaluation, media has reported. 

“Abe was highly regarded both within Japan and internationally, and there have been many messages of condolence (since his death),” chief cabinet secretary Hirokazu Matsuno told a news conference. 

“We believe it is necessary for Japan as a country to respond to that as international etiquette, and so we decided that it is best to conduct this funeral as an official event hosted by the government and have international visitors attend,” he said. 

Japan’s last fully state-funded funeral for a prime minister was for Shigeru Yoshida in 1967. Subsequent ones have been paid for by both the state and the ruling Liberal Democratic Party (LDP), of which Abe was an influential member. 

Several current and former world leaders are expected to attend, with news reports saying arrangements were being made for former US President Barack Obama to take part. 

Russian President Vladimir Putin will not attend, the Kremlin said in July. ($1 = 136.7000 yen) — Reuters

PHL corporate bond issuance may hit $7B in 2022

BW FILE PHOTO

Philippine companies are seen raising a record P400 billion ($7.14 billion) through bond issuances this year to fund expansion plans and retire debts, the country’s bond market operator said on Friday.

Year-to-date, companies have raised P371 billion via bonds, with a robust pipeline in the coming months. Bond listings on the Philippine Dealing & Exchange Corp (PDEx) fell by nearly half to P213 billion last year from a record high of P387 billion in 2020.

“If last year was a year of caution, this year, the firms are back for funding,” Antonino A. Nakpil, PDEx president and chief executive officer, told Reuters.

Top issuers include banks and property firms, and conglomerates. In July, San Miguel Corp. raised P30 billion, the largest domestic bond deal by a non-banking institution.

Philippine companies, backed by financial markets despite higher lending rates, are pursuing expansion plans this year, banking on an economic recovery from the coronavirus disease 2019 (COVID-19) pandemic.

Companies are taking advantage of market liquidity to fund expansion and pay down debts, Mr. Nakpil said. On Friday, property firm Robinsons Land Corp. listed P15 billion in a bond deal oversubscribed by 12 times.

To date, there are 54 companies that have a combined 193 bond issues in the Philippines’ fixed income trading platform. — Reuters

Shopee 9.9 sale includes community-building initiatives

SHOPEE’s Sept. 9 sale will offer shopping deals, vouchers, games, and a chance to support community-building projects.

The 9.9 Super Shopping Day marks the start of the year-end shopping season.

“We are thrilled to be welcoming the busiest sale season of the year with our users, sellers, and communities from all over the Philippines,” said Martin Yu, director at Shopee Philippines, in a statement. “We aim to be a platform that harnesses the power of technology to help all of our stakeholders and the community — whether it’s through our impactful CSR initiatives or exciting double day sales.”

Barangay Shopee, a new initiative under the Shopee Bayanihan program, allows users to win a sponsored community project for their barangay — examples include the construction of a basketball court, the renovation of a multi-purpose hall, or the provision of public school supplies.

Shopee users can nominate their barangay by posting video entries on Facebook and submitting the link via the app.

Meanwhile, deals and upsized brand promos will include free shipping with no minimum spend and P1 deals.

Brands offering discounts include INSPI, Garnier, Dreame, Sabbat, OPPO, GameXtreme, Huawei, Colgate-Palmolive, Crocs PH, Uni-Care, Johnson & Johnson, Abbott Philippines, Pedigree and Whiskas, Belo Essentials, P&G Beauty, Unilever, Ace Hardware, Adidas, Xiaomi, POCO, Bosch, Chef’s Classics, Enfagrow, and Lactum.

Users who purchase on the app can play a game for a chance to win up to P1 million.

For more information, visit the 9.9 Super Shopping Day page and the Barangay Shopee page on the app. — Brontë H. Lacsamana


SIDEBAR | Filipinos shop more after office hours

Filipino consumers are more likely to buy online outside typical working hours, specifically from 7 p.m. onwards, with transactions peaking at 9 p.m., according to The State of Online Shoppers in the Philippines 2021/22 – Part 2 conducted by Southeast Asian e-commerce meta-search website iPrice.

This is in contrast with the platform’s 2016/17 edition of the report, where most Filipinos made online purchases during work hours. Midnight shopping was also found to be nearly three times higher in the recent study as compared to four years ago.

Sunday is also the peak shopping day for Filipino consumers, unlike in 2016/17 when that was the day with the lowest number of transactions.

“Our hypothesis is the shift toward mobile e-commerce has driven these changes in online buying patterns,” iPrice said in its latest report.

“The rapid roll-out of mobile broadband and affordable mobile devices; the optimization of e-commerce websites for mobile browsers and the investment in marketing campaigns by online retailers to encourage purchases via mobile has led to Philippine consumers putting more trust in mobile shopping platforms,” it explained.

However, despite the increase in comfort using mobile devices that allow purchases from anytime anywhere, iPrice found that Filipinos prefer to buy expensive items via desktop, with the average basket size being 86% higher for desktop purchases.

The meta-search platform concluded that expensive items require a search for more information prior to making a purchase, easier done through a desktop’s larger screen.
iPrice’s report is based on data from 125 million users on iPrice Group’s e-commerce across websites across six key SEA markets including the Philippines. Data was collected from January 2021 to April 2022. — Brontë H. Lacsamana

China’s navy begins to erase imaginary Taiwan Strait median line

A globe is seen in front of Chinese and Taiwanese flags in this illustration, Aug. 6, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

TAIPEI — For nearly 70 years an imagined line running down the Taiwan Strait between Taiwan and China has helped keep the peace but the so-called median line is looking increasingly meaningless as China’s modernized navy asserts its strength. 

China has never officially recognized the line that a US general devised in 1954 at the height of Cold War hostility between Communist China and US-backed Taiwan although the People’s Liberation Army largely respected it. 

Now Taiwan is bracing for warships from China’s much larger navy routinely pushing over the line as part of the steps an angry Beijing has taken to protest against a visit to Taipei three weeks ago by US House Speaker Nancy Pelosi. 

“They want to increase pressure on us with the end goal of us giving up the median line,” said one Taiwanese official familiar with security planning in the region. 

“They want to make that a fact,” said the official, who declined to be identified given the sensitivity of the issue. 

Some Taiwanese officials say it would be “impossible” for the island to abandon the concept of a buffer that the line represents. 

Foreign Minister Joseph Wu told a news conference this month a change in the status quo could not be tolerated. 

“We need to join our hands with likeminded partners to make sure that the median line is still there, to safeguard peace and stability across the Taiwan Strait,” Mr. Wu said. 

Other officials and security analysts warn that it would be difficult for the island to defend the line without raising the risk of dangerous escalation. 

PROJECTING POWER 

Taiwan would have to react militarily if Chinese forces entered its 12 nautical miles of territorial waters, the Taiwan official said, but apart from that, there was no immediate plan to give the military or coastguard more authority to respond. 

President Tsai Ing-wen has repeatedly said Taiwan will neither provoke nor escalate conflict. 

It is questionable whether international support for Taiwan is sufficient to deter China from patrolling into Taiwan’s side of one of the world’s busiest shipping lanes, or if Taiwan’s friends would help it maintain the line. 

Ships of the US and other Western navies sail through the strait to highlight what they maintain is its international status, not to strictly enforce the imaginary line that has no legal standing. 

The Taiwan Strait is some 180 kilometers wide and at its narrowest, the median line is about 40 km from Taiwan’s waters. 

An established Chinese naval presence close to Taiwan’s territorial waters would stretch Taiwan’s military and make any Chinese blockade or invasion much easier, Taiwanese officials warn. 

Ultimately, a redundant median line would also usher in further challenge to the long-standing US dominance of China’s near seas — the so-called first island chain — and help China to project its power into the Pacific. 

The median line has no features marking it. For years, China tacitly acknowledged it but in 2020 a foreign ministry spokesman stated it “did not exist.” That was echoed by its defense ministry and Taiwan Affairs Council. 

In recent days, the two sides’ frigates and destroyers have played cat-and-mouse, with Chinese ships attempting to maneuver around Taiwanese patrols to cross the line. 

Chinese fighter jets have also crossed the line this month, albeit only going a short way over, something China’s air force has only done rarely in the past. 

China’s defense ministry did not respond to requests for comment. 

‘POLITICAL ARTIFACT’ 

Chieh Chung, a security analyst from the National Policy Foundation think tank in Taipei, said the “overthrowing” of the median line consensus had increased the risk of accidental conflict. 

Chieh said the codes of engagement for Taiwan’s coastguard and military should be reviewed to give them more authority and legal protection in reacting to increasingly complex challenges from Chinese forces. 

Within weeks, US warships are expected to sail through the Taiwan Strait, underscoring what they see as its status as an international waterway, to the inevitable annoyance of China, which claims sovereignty and other rights over the strait. 

But the US ships are not expected to challenge Chinese vessels on either side of the median line. 

Three US officials, speaking on the condition of anonymity, said that Chinese crossings of the median line had little tactical importance. 

“It’s an imaginary line that’s symbolic and it’s about poking Taiwan in the eye a bit,” one of the officials told Reuters. 

The United States saw little need to uphold the status of the line or push back against China’s moves across it, they said. 

Christopher Twomey, a scholar at the US Naval Postgraduate School in California, said he believed the US Navy viewed the line as a “political artifact” rather than a legal one. 

Speaking in a private capacity, Mr. Twomey said the dangers should not be overstated and the recognition and use of the strait as an international waterway would continue. He described Chinese activities as “political statements.” 

“Mere Chinese presence on either side of arbitrary lines within that area is not likely to lead to any operational response,” Mr. Twomey said. — Reuters

Britons to face shock of record leap in fuel bills

UNSPLASH

LONDON — Britons will learn the reality of the looming winter energy shock on Friday when the regulator announces an expected 80% jump in its price cap, heaping pressure on the government to do more to help millions of households facing fuel poverty. 

Wholesale gas and power prices that were already rising after the pandemic have surged since Russia invaded Ukraine and Moscow curtailed gas exports to Europe, driving UK inflation to a 40-year high. 

The increases are passed on to British consumers through a price cap, calculated every three months, that was designed to stop energy suppliers profiteering but is now the lowest price available for 24 million households. 

Analysts at Cornwall Insight predict the cap, which applies from Oct. 1, will rise 80%, taking average dual-fuel bills to 3,554 pounds ($4,212) a year, on top of a 54% rise in April. 

To put the rise into context, the opposition Labour Party has proposed a six-month freeze on energy prices. If extended for a year it would cost around 60 billion pounds — almost as much as the coronavirus disease 2019 (COVID-19) pandemic furlough scheme. 

“Without further support from the government, more than half of UK households will likely be in fuel poverty by January,” supplier EDF Energy UK’s executive Philippe Commaret said on Wednesday, adding that customers were at risk of a “dramatic and catastrophic winter”. 

Fuel poverty is defined as spending more than 10% of income on energy. 

SPIRALLING COSTS 

The spiralling cost of energy, reflected in the price of everything from food to travel, is set to worsen a cost of living crisis amid warnings from the Bank of England of a lengthy recession. 

The Labour Party said the new cap, which is due to be announced by regulator Ofgem at 0600 GMT, would be devastating. 

“The fact the government is absent at this time of national crisis is unforgivable,” leader Keir Starmer said. 

The government announced a 400 pound discount on consumer bills for this winter in May, when price forecasts were significantly lower. It has since been preoccupied with the battle to oust Boris Johnson as prime minister, and the race to replace him. 

While European governments seek to conserve gas, increase storage and cut bills, Britain’s government has split into the warring camps of candidates Liz Truss and Rishi Sunak, who have clashed over how to respond to the crisis as they vie for the top job. 

Truss wants to suspend environmental and social levies — a measure that would shave about 8% off bills under the current cap — while Mr. Sunak has said he will cut sales tax. 

Cornwall Insight predicts the cap will rise by another 31% in January to 4,650 pounds, more than three and a half times the level of a year earlier, as the market shows no sign of abating, with UK gas prices hitting a record high on Monday. 

Energy suppliers have come up with their own proposals. 

Centrica-owned British Gas said it would give 12 million pounds of its 98 million first-half pretax profit to an energy support fund. Scottish Power has called for the government to cover some of the rise, which would be repaid over 10 to 15 years. ($1 = 0.8437 pounds) — Reuters

China Telecom PHL partner sees profit for venture by 2026

China Telecommunications Corp.’s Philippine venture expects to post its first profit in as early as four years, the majority shareholder of the Southeast Asian nation’s third mobile-phone provider said.

A positive bottomline “will emerge” for DITO Telecommunity Corp. by 2026 or 2027, said Ernesto R. Alberto, president of DITO CME Holdings Corp. that’s owned by businessman Dennis A. Uy. 

“We are also on track on the business plan despite two-and-half years of the pandemic,” Mr. Alberto said in an interview this week with other officials of Mr. Uy’s businesses. 

The telecom venture’s earnings before interest, taxes, depreciation and amortization is also on track to be positive as early as end-2024 “assuming no event risk,” Mr. Alberto said.

DITO CME may sell down its 53% stake in DITO Telecom to raise its equity share to help fund venture’s expansion and has asked banks to find it an “ideal private equity placement partner,” Mr. Alberto said.

Still, the DITO CME president said a preferred option is to use its share in DITO Telecom to raise its share of equity component with a 2-3 year loan with balloon payment. “We are confident that the value of shares will be much more — barring of course, event risks — two, three years down the road,” he said, adding that talks are on with foreign and local lenders on this “bridge facility.”

DITO Telecom is also optimistic that it will complete by November talks with a group of lenders led by Bank of China for a $4.1 billion long term loan to fund rollout of its network which is required to have 84% population coverage by 2024.

By 2024, DITO Telecom “will be on even keel competition with the incumbents in terms of capacity but with a much more brand-new network without any legacy baggage,” Mr. Alberto said.

The mobile-phone provider, which started commercial operations in March 2021, is close to hitting its 12 million customer goal by year-end, with the subscriber count currently nearing 11.5 million. — Bloomberg

Takeover of NDTV by India’s richest man worries journalists

Image via Vinu Thomas/CC BY-SA 2.0/Wikimedia Commons

NEW DELHI — For years Indian television company NDTV pursued an independent line critical of the government even as others embraced strident nationalism. Now a proposed takeover by tycoon Gautam Adani’s conglomerate has raised fears that one of the country’s last bastions of free media is under threat.

NDTV is seeking to block the bid by Mr. Adani, who is India — and Asia’s — richest man, citing regulatory restrictions related to what it called an “entirely unexpected” move .

NDTV, founded in 1988, blazed a trail for independent broadcasting in India as the country opened up to free market enterprise. Journalists in the country view Adani’s play with trepidation.

“We all feel dejected,” a current senior NDTV journalist, who declined to be named as employees are not authorised to speak on the issue, told Reuters.

“The main concern is our editorial independence which we think will be compromised” by the hostile takeover. NDTV runs one of India’s most popular news websites along with channels in Hindi and English.

Adani Group said NDTV was “the most suitable broadcast and digital platform to deliver on our vision.” A spokesperson for Mr. Adani did not respond to a request for comment on whether the channel’s independence would be compromised by a takeover.

Also critical of the opposition Congress party when in power, the network has been at loggerheads with Modi and his brand of Hindu nationalist politics since long before he became prime minister.

After taking office in 2014, Narendra Modi cast the media as part of an out-of-touch elite and India fell in media freedom rankings. Outlets owned by industrial families have aligned themselves with the government, Reporters Without Borders said this year.

Mr. Adani has previously said he is not close to Mr. Modi. While his rapid ascent of the Forbes’ rich list has taken place in tandem with Mr. Modi’s political fortunes and both hail from the state of Gujarat, there is little evidence of strong links between the two men beyond the politician’s use of Adani-owned private jets before he became prime minister.

Regardless, media observers say that ownership by corporate titans has had a negative effect on journalism in India.

Mukesh Ambani’s Reliance Industries controls Network18, another of India’s largest media houses.

“Media ownership for many corporates has been a way of creating favors so that other businesses can grow. That cross-ownership is a huge problem,” said Hartosh Singh Bal, the political editor of the Caravan magazine, one of India’s few remaining independent media publications.

“In terms of independence the other channels don’t even come close. Not only is government’s view propagated through them, but any counter-narrative, any fact challenging the government is dismissed, and I see that the same thing will happen.”

Saba Naqvi, a veteran freelance journalist and visiting lecturer at India’s Jindal School of Journalism and Communication, said NDTV was one of the few networks in India with the size and credibility to hold the government to account.

“It is the last influential outfit ready to take on the government,” she said

“It’s a crown jewel in the media landscape.”

Owned by husband-and-wife team Prannoy Roy and Radhika Roy, NDTV has been criticized by Mr. Modi’s supporters for bias against him. Fans compare it favorably to other networks, where split-screen debates crowded with panelists regularly descend into chaos.

“It stands out as the one place you can occasionally get a sensible debate,” Ms. Naqvi said.

The proposed takeover comes amid a worsening landscape for independent journalism in the county.

India fell to 150 out of 180 countries ranked in Reporters Without Borders’ World Press Freedom Index this year, its lowest position ever.

The government rejects the group’s conclusions, pointing to a lack of transparency and objectivity, and says it protects the rights of journalists in the country. — Reuters

Question of who might succeed Pope Francis to loom over cardinals’ gathering

REUTERS

VATICAN CITY — Roman Catholic cardinals from around the world gather for events at the Vatican starting this weekend that could amount to a dress rehearsal for an eventual conclave to choose a successor to Pope Francis after he dies or resigns.

On Saturday Francis will induct 20 prelates into the College of Cardinals, the exclusive group whose members serve as the pope’s top advisors and administrators at the Vatican and around the globe.

Sixteen of the newcomers are under 80 years old and thus join the even more exclusive inner sanctum known as cardinal electors, eligible to enter a secret conclave to choose the next pope from among themselves.

Saturday’s ceremony — known as a consistory — is the eighth time Francis has named new cardinals, again putting his stamp on the Church’s future by choosing men who mostly agree with his vision of a more inclusive Church.

“The odds are now in favour of having another pope who will continue Francis’s policies, but you never know how cardinals will vote once they enter a conclave,” wrote Father Tom Reese, a Church historian and columnist for Religion News Service.

One significant appointment in the richer countries is that of Bishop Robert McElroy of San Diego, California, who is seen as a progressive. By giving San Diego its first cardinal, Francis bypassed conservative archbishops in San Francisco and Los Angeles.

McElroy has been an outspoken ally of Francis’ pastoral approach to social issues, such as protection of the environment and a more welcoming approach to gay Catholics.

McElroy also has opposed conservative US clergymen who want to ban Catholic politicians, including President Joseph R. Biden, Jr., and House of Representatives Speaker Nancy Pelosi, from receiving communion because of their support of abortion rights.

Francis, elected as pope in 2013, has now chosen 83 of the 132 cardinal electors, or about 63%. Church law stipulates a maximum of 120 electors but popes regularly ignore that, mostly because the numbers go down as other cardinals turn 80 and lose their voting rights.

The 85-year-old pontiff told Reuters in an interview last month that if he does resign in the future for health reasons — instead of dying in office — he has no plans to do so anytime soon. This means he could name even more cardinals as soon as next year.

GETTING TO KNOW YOU

Perhaps more significant than the consistory itself will be two days of closed door meetings of cardinals on Monday and Tuesday.

The meetings, officially to discuss the Vatican’s new constitution, will give cardinals a rare opportunity to size each other up in person without being under the pressure of gathering to elect a new pope.

“For the majority of the cardinals, it will be the first time they can get to know each other personally,” wrote Luis Badilla, head of the Il Sismografo website that specialises in Church issues. He said they would be a “rehearsal for a conclave.”

Since his election as the first Latin American pope, Francis has mostly broken the mold used by his predecessors in picking cardinals. Often he has preferred men from far-flung places or smaller cities, rather than from big capitals of the developed world where having a cardinal was considered automatic.

Archbishop Leonardo Steiner of Manaus, Brazil, becomes the first cardinal from the Amazon region, underscoring Francis’ concern for indigenous people and the environment.

Another unexpected new cardinal elector is Archbishop Giorgio Marengo, an Italian who is the Catholic Church’s administrator in Mongolia. At 48, he is the youngest of the new cardinal electors.

Mongolia has fewer than 1,500 Catholics but is strategically significant because it borders with China, where the Vatican is trying to improve the situation for Catholics.

With each consistory, Francis has continued what one diplomat has called a “tilt towards Asia,” increasing the likelihood that the next pope could be from the region that is a growing economic and political powerhouse.

Other new electors come from Singapore, India and East Timor. — Reuters

Netflix Seoul Vibe gas station sells gas at 1988 prices

Park Ju-hyun, Ong Seong-wu, Ko Kyung-pyo, Yoo Ah-in, and Lee Kyoo-hyung.

Amidst the skyrocketing fuel prices of 2022, a gas station opens today along EDSA, Quezon Avenue, selling fuel at 1988 prices.

To celebrate the premiere of the new Korean Netflix film “Seoul Vibe”—whose tagline is “Drive back to 1988”—Netflix unveils the Seoul Vibe Gas Station, allowing pre-booked motorists to purchase gasoline at Php 7 per liter, the price in 1988.

“Seoul Vibe” is a Korean blockbuster action film, whose story revolves around a team of ragtag drivers and mechanics deployed to go undercover and dismantle a massive money-laundering ring. It stars Yoo Ah-in from “Hellbound” and Ko Kyung-pyo from “Reply 1988.” It is set during the 1988 Seoul Olympics.

The station’s opening was inspired by Filipinos’ nostalgia on social media for the time when fuel was more affordable.

In order to avail of the price-off, drivers needed to visit www.SeoulVibe1988.ph where they booked a slot to gas up at the station. Fueling is strictly by appointment and vehicles without a reservation will not be allowed in the station.

The offer is available on Aug. 26, 2022 only. Each vehicle can gas up to 40 liters.

The Netflix Seoul Vibe Gas Station’s fuel is provided by SEAOIL.

Drive back to 1988. Watch “Seoul Vibe,” streaming starting August 26, 2022 (Friday), only on Netflix.

Get the vibe from the cast of Seoul Vibe

The much-anticipated Korean film, Seoul Vibe, will be released today on Netflix. It is a Korean film set during the 1988 Seoul Olympics.

The film stars Yoo Ah-in from “Hellbound,” playing the role of Dong Wook, the greatest driver of the Sanggye-dong crew and Ko Kyung-pyo from “Reply 1988” is DJ Woo Sam, a club DJ, spy, and theology student. Lee Kyoo-hyung from “Prison Playbook” portrays Bok Nam, the genius when it comes to Seoul’s geography. Park Ju-hyun from “Extracurricular” is Dong Wook’s motor-riding younger sister named Yoon Hee. Ong Seong-wu from the former idol group “Wanna One” plays the character Jun Ki, the genius mechanic, and Sanggye-dong’s MacGyver.

Seoul Vibe premieres today, August 26, only on Netflix. Make sure to watch and #DriveBackTo1988.

 


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Tycoon Uy’s empire open to sale of crown jewels to pay debt

UDENNA.PH

Philippine tycoon Dennis A. Uy’s conglomerate is open to parting ways with its crown jewels as part of an asset-sale plan to pay down debt after it aggressively expanded from oil to casinos. 

Discussions are underway and are ripe to close in coming months, according to the president of holding company Udenna Corp., who joined Mr. Uy for an interview with Bloomberg this week. 

The leaders of several units, including Chelsea Logistics & Infrastructure Holdings Corp. and Phoenix Petroleum Philippines Inc. were also present. Although the preference is to pare down debt without divesting the majority of Phoenix and Chelsea, the group is open to offers.

Udenna would like to keep its crown jewels, but won’t object to an attractive offer if that helps cut debt further, President Raymundo Martin M. Escalona said.

The asset-sale plan follows years of credit-fueled expansion by Udenna, including a foray into property and casinos, a telecommunication venture, as well as investments in a gas platform operator and a culinary school. 

The Davao City-based business empire made headlines in July after one of its units received a default notice from creditors, which Mr. Escalona said made him skip dinner when he received word of it on a Friday evening. He termed it as a “misunderstanding” and Udenna said the matter is now settled. 

The executives declined to give a figure for the group’s total debt, but publicly available filings provide details of its borrowings. Mobile phone operator DITO Telecommunity Corp., Mr. Uy’s venture with China Telecommunications Corp., took out more than $1 billion in loans from Chinese banks, according to figures published this month. Udenna’s most recent report shows debt of P180 billion ($3.21 billion) at the end of 2020.

Creditors have been supportive, Mr. Escalona said, adding the group is looking to sign a planned $4.1 billion loan by November.

“We know how to sell, and we know how to buy,” Mr. Uy said. “If some of our assets are attractive, and it makes sense, then we rationalize, but again, it’s not easy because everyone’s part of the family.”

RIGHTING SHIP

Mr. Uy, 48, said any decision to sell assets is an emotional one for him as the company is responsible for thousands of families.

“We should’ve raised equity, which we planned in 2020, but we made the decision that debt is cheaper,” said Mr. Uy, adding he should’ve brought in strategic partners.

The conglomerate has already started unloading assets, selling stake in its casino ventures to billionaire Enrique K. Razon, Jr., who is also acquiring a stake in an offshore gas project where Mr. Uy has an investment. Chelsea last year sold its entire holding in a shipping company called 2GO.  

Mr. Uy, who made a name from oil trading, kicked off his expansion and deal spree following the 2016 election of former President Rodrigo R. Duterte. Both hail from Davao City in the southern island of Mindanao. The shipping and energy mogul, who contributed to Mr. Duterte’s campaign and counts the leader as a family friend, defended his aggressive expansion in a 2017 interview, saying he believed in Mr. Duterte’s economic agenda. In the past years, he has assembled assets that have eaten into industries ruled by the country’s richest families.

“We expanded too fast in the past, and the only reason we did that was that there was a very strong belief that the economy will improve,” said Mr. Escalona.

The onslaught of the pandemic and the group’s debt load have raised the insolvency risks on Mr. Uy’s businesses. A measure of bankruptcy risk, known as the Altman-Z score, for four companies owned by the businessman shows greater risks than the average for the MSCI Philippines Index, which is already the worst in Southeast Asia, according to data compiled by Bloomberg. 

“Of course we are wounded. Who else is not?” Mr. Uy said. “We’re making it right, righting the ship.” — Bloomberg

Globe steps up advocacies vs online bullying to protect Filipino children

It takes a village to keep children protected online. The panel discussion at the webinar shows (clockwise) host Nina Corpuz-Rodriguez, Dr. Francine Bofill of KonsultaMD, Atty. Irish Salandanan-Almeida of Globe, Amanda Griffin Jacob of Glam-o-Mamas, and Mommy GL and Daddy Ranilo of Usapang Nanay.

Digital solutions platform Globe intensifies its commitment to online safety, enjoining the academe, mental health professionals, parents and guardians, and other key partners to protect Filipino children against cyberbullying.

Due to the pervasiveness of bullying on digital platforms, Globe noted the need for parents and caregivers to understand their role in keeping children safe online.

“As Globe empowers our 92 million customers to use technology for every need, we urge everyone to use digital communication channels for good and teach our young people to do the same. Our connectedness comes with it being a responsible digital citizen, and that communicating with respect, intention, and impact is first taught at home,” said Yoly Crisanto, Globe Chief Sustainability and Corporate Communications Officer.

Yoly Crisanto, Globe Chief Sustainability and Corporate Communications Officer, calls on the public to use digital channels for good in Globe’s The Family as the Safety Net webinar against cyberbullying of Filipino youth.

The company has launched the www.makeitsafe.ph portal to stop cyberbullying by making available the A-Z of Cyberbullying glossary. The glossary is buildable, and anyone can add words to inform other parents on terms to watch out for. The microsite has received 12,000 hits since it was launched last July 18.

Parents can get more guidance on helping children be safe and responsible online through parent-focused Globe Digital Thumbprint Program (DTP) e-modules on the microsite. DTP promotes digital citizenship and cyber safety among the youth.

Dr. Francine Bofill of KonsultaMD shares about the mental health toll of cyberbullying among Filipino youth. She also shared how the number of children and minors asking for mental health support increased during the pandemic.

“We leverage technology with the help of our key partners to protect the youth. We are equipping our customers— parents, caregivers, and guardians— to address cyberbullying by helping them understand the rapidly developing online language used by children through digital channels,” said RG Orense, Head of Digital and Social Channel Strategy at Globe.

Globe further equips parents with the proper knowledge to address the issue through its partnership with two of the most influential online parenting communities on Facebook —- Glam-O-Mommas, a community with 44,500 active members owned by model and TV personality Amanda Griffin-Jacob; and Usapang Nanay, a community of 519,000 members, run by the husband and wife duo of Mommy GL and Daddy Ranilo Guardiano.

Atty. Irish Salandanan-Almeida, Chief Privacy Officer of Globe, shared Globe’s initiatives to protect customers’ data privacy and overall online safety.

It has also started sharing its new #makeITsafePH campaign materials on cyberbullying to partners in the academe, showing them to teachers and parents during parent seminars. The materials have collectively been viewed 113 million times on social media, particularly TikTok and Facebook, over the past one and a half months.

This is among its initiatives to protect minors from cyber violence, which includes bullying and online sexual abuse and exploitation of children (OSAEC), in support of the United Nations Sustainable Development Goal No. 4 on inclusive and equitable quality education and promoting lifelong learning opportunities for all, and UN SDG No. 17, which highlights the value of partnerships in achieving sustainable development goals.

Amanda Griffin Jacob, founder of popular Facebook community Glam-o-Mamas, announced its partnership with Globe to empower parents and guardians to be better digital allies of their children.

The advocacy is strongly supported by well-known celebrities, movie personalities, and athletes including Kim Atienza, Gretchen Fullido, Edu Manzano, Pia Guanio-Mago, Ryan Eigenmann, Arlene Muhlach, Cai Cortez, Kiray Celis, Gillian Vicencio, Sophie Reyes, Alora Sasam, JC Alcantara, Melizza Jimenez, Gian Magdangal, Aby Marano, Junemar Fajardo, and Japeth Aguilar. Social media influencers Dr. Kilimanguru, Mela Habijan, and Reb Atadero have also joined the fight against online bullying.

Globe also understands that violence against children, such as cyberbullying, has devastating effects on the physical and emotional well-being of young people.

Because of this, Globe has partnered with its telemedicine platform KonsultaMD to provide mental wellness support to parents, guardians, and victims of cyberbullying. Users can redeem one free session with a licensed KonsultaMD mental health professional 24/7 using the promo code MAKEITSAFEPH.

The Digital 2022 report from We Are Social and Hootsuite ranks the Philippines as the second most active country on social media. But it was also just behind Thailand in the ranking of countries worldwide where children are highly exposed to online risks and without sufficient skills to cope with cyber threats.

A poll conducted by the United Nations Children’s Fund (UNICEF) a few years ago showed one-third of cyberviolence experienced by Filipino children is in the form of verbal abuse over the internet or cell phone, while a fourth is through sexual messages.

Another study conducted by Cornell University and University of California, Berkeley found that parents underestimate how often their child is a victim or perpetrator of cyberbullying, exposed to sexual imagery and approached by strangers online.

To learn more about Globe, visit www.globe.com.ph.

 


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‘Hot money’ outflows slow in July

THE EXIT of short-term foreign investments slowed in July, as the Bangko Sentral ng Pilipinas (BSP) continued to tighten monetary policy.

Data released by the central bank showed transactions on foreign investments registered with the BSP through authorized agent banks (AABs) saw a net outflow of $103.14 million in July, the smallest outflow in two months.

The July figure was 70% lower than the $342-million net outflows recorded in June, and the $339.7 million in net outflows in the same month in 2021.

Foreign investments registered with the BSP through AABs are also known as “hot money” due to the ease with which they enter and exit financial markets. Investors typically want to secure the best short-term rates possible.

The exit of foreign funds was due to “broad risk-off tone on expectations for rate hikes from the Fed,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message. 

The US Federal Reserve implemented a second straight 75-basis-point (bp) rate hike in July, as it sought to tame runaway inflation. The rate is currently in the 2.25%-2.5% range.

“Concerns also about collapsing interest rate differentials and surging inflation may have also caused some panic after BSP opted to stay dovish at their June meeting,” Mr. Mapa said.   

The BSP raised the benchmark rate by 25 bps at its June meeting. However, it implemented an off-cycle 75-bp hike in July as it sought to contain broadening inflationary pressures.

Inflation rose to 6.1% in June, and quickened to 6.4% in July, beyond the central bank’s 2-4% target band.

Gross inflows of hot money decreased by 2.9% to $7.82 billion in July from $8.06 billion a year earlier.

The top five investor economies during the month included the United Kingdom, United States, Singapore, Hong Kong and Luxembourg, which accounted for 84.7% of foreign portfolio investment inflow.

The bulk of investments went to securities of holding companies; food, beverage and tobacco; property; banks; and transportation services. The rest were invested in peso government securities. 

Meanwhile, gross outflows declined by 15.4% to $7.19 billion in July from $8.5 billion a year ago.

For the first seven months, foreign investments yielded a net inflow of $625 million, a turnaround from the $446-million net outflows in the same period last year.

Asian Institute of Management economist John Paolo R. Rivera said in a Viber message that outflows were expected as the Philippine central bank raised interest rates.   

“The cost of borrowing for investment is rising. If the interest rate in the Philippines would be higher relative to other countries, investments might go to economies with relatively lower cost of borrowing for investments,” Mr. Rivera said. 

“However, because many countries are following suit in increasing policy rate, it is now a matter of who has better investment climate and clearer economic plans to manage persistent downside risks like currency depreciation and inflation,” he added.   

With its recent 50-bp hike last week, the central bank has raised rates by a total of 175 bps so far this year.

Meanwhile, concerns on China’s growth prospects and brewing tension in Taiwan may have also weighed on investor sentiment, Mr. Mapa said.

The BSP expects hot money to yield a net inflow of $4.5 billion in 2022.

The BSP said registration of inward foreign investments delegated to AABs by the BSP is “optional under the rules on foreign exchange transactions.” — KBT