Trump paid no income tax in 2020, records show

December 22, 2022 | 5:52 pm

WASHINGTON — Donald Trump paid no income tax during the final full year of his presidency as he reported a loss from his sprawling business interests, according to tax figures released by a congressional panel.

The records, released late on Tuesday by the Democratic-led House of Representatives Ways and Means Committee after a years-long fight, show that Mr. Trump’s income, and his tax liability, fluctuated dramatically during his four years in the White House.

The records cut against the Republican ex-president’s long-cultivated image as a successful businessman as he mounts another bid for the White House.

Mr. Trump and his wife, Melania, paid some form of tax during all four years, the documents showed, but were able to minimize their income taxes in several years as income from Trump’s businesses was more than offset by deductions and losses.

The committee questioned the legitimacy of some of those deductions, including one for $916 million, and members said on Tuesday the tax returns were short on details. The panel is expected to release redacted versions of his full returns in coming days.

Mr. Trump refused to make his tax returns public during his two presidential bids and his campaign for office, even though all other major-party presidential candidates have done so for decades.

The committee obtained the records after a years-long fight and voted on Tuesday to make them public.

A Trump spokesman said the release of the documents was politically motivated.

“If this injustice can happen to President Trump, it can happen to all Americans without cause,” Trump Organization spokesman Steven Cheung said on Wednesday.

Democrats on the panel said their review found that tax authorities did not properly scrutinize Mr. Trump’s complex tax returns to ensure accuracy.

Though the US Internal Revenue Service (IRS) is supposed to audit presidents’ tax returns each year, it did not do so until Democrats pressed for action in 2019.

The IRS assigned only one agent to the audit most of the time, the panel found, and did not examine some of the deductions claimed by Trump.

The IRS declined to comment.

Prior to taking office, Mr. Trump reported heavy losses for many years from his business to offset hundreds of millions of dollars in income, according to media reports and trial testimony about his finances.

The documents released by the committee showed that pattern continued during his time in the White House.

During that time Mr. Trump and his wife were liable for self-employment and household employment taxes. As a result, they paid a total of $3 million in taxes over those four years.

But deductions enabled them to minimize their income tax liability in several years.

In 2017, Mr. Trump and his wife reported adjusted gross income of negative $12.9 million, leading to a net income tax of $750, the records showed.

They reported adjusted gross income of $24.3 million in 2018 and paid a net tax of $1 million, while in 2019 they reported $4.4 million of income in 2019 and paid $134,000 in taxes.

In 2020, they reported a loss of $4.8 million and paid no net income tax. — Reuters

Expensive energy cuts short free visits to Belgium’s ‘Garden of Santa Claus’

December 22, 2022 | 5:51 pm

LA BRUYERE, Belgium — The Belgian “Garden of Santa Claus,” which every year offers a free visit to Santa’s office, bedroom, train and sleigh, will be open only 23 days this year instead of the usual 34 days because of a surge in energy prices, its organizer said.

The work of a Belgian aeronautical engineer, Serge Hennebel, 54, the “Garden of Santa Claus” is a seasonal entertainment venue located in a small village of La Bruyere, in central Belgium, 38 km (24 miles) south-east of Brussels.

Lit by more than 52,800 lights, it attracts visitors from across the world who can enjoy a walk in the village, crossing the path of a giant snowman and taking souvenir photos next to Santa’s sleigh and Santa’s Train.

Energy prices in the euro zone were 35% higher in November than 12 months earlier, boosting the costs of powering the venue and forcing the earlier closure, Mr. Hennebel said. — Reuters

Legalize motorcycle taxis to ease public transportation woes, say commuter advocates

December 22, 2022 | 5:12 pm

EDSA-traffic-20220228-PHILSTAR-MICHAEL-VARCAS — PHILIPPINE STAR/ MICHAEL VARCAS

By Brontë H. Lacsamana, Reporter

THE LEGALIZATION of motorcycle (MC) taxis will ease the nightmarish commute conditions in Metro Manila, which have worsened during the holiday rush, transport advocates said.

“It’s good that we have motorcycle taxis which commuters appreciate, but if they continue to imitate the negative character of taxis of snubbing people when they’re needed, then the TWG (technical working group) should monitor this,” said Primo V. Morillo, convener of The Passenger Forum, in a Dec. 22 Zoom interview.

The Department of Transportation’s (DOTr) TWG reviews and revises guidelines regarding MC taxis and oversees the ongoing pilot implementation of their operations.

House Bill 10571, or the Motorcycle Taxi bill, is already in the works, with three MC taxi companies — Angkas, JoyRide and Move It — given special provisions to operate MC taxis as part of the government’s pilot-testing program.

“We know that, out of all road-based transport, motorcycles are the most accident-prone. Given that, it’s important that we have a system for it, proper training for it, and insurance for it. That’s why our call to the TWG is to design the MC taxi to discourage the use of habal-habal (another name for motorcycles-for-hire),” said Mr. Morillo.

A digital advocacy group also said that a proper motorcycle taxi law will allow more riders to operate safely under ride-hailing companies.

“This law, if enacted, aims to legitimize or legalize the use of motorcycles as vehicles for hire. Right now, it’s not allowed, which is why there are many illegal habal-habal riders on the road, and passengers don’t have protection for that,” Digital Pinoys convener and national campaigner Ronald Gustilo said in a Zoom conversation on Dec. 21.

On Dec. 20, a public Facebook post by Ghint Prns that went viral shed light on the practice of Angkas riders turning off their app in order to offer their services as habal-habal motorcycles:

The user detailed trying to book a rider in Makati City on Dec. 19 and paying a premium because of the Christmas rush.

Delivery platform Lalamove also issued a Dec. 20 statement saying that its vehicles are “not licensed to transport people, only items for delivery,” making the practice illegal.

On social media, netizens have denounced the state of Philippine public transportation given the fact that such an announcement was even necessary:

“Started booking Angkas, Joyride and Grab from 6:00pm and only got a ride at 11:20pm. Taxi drivers asking php 500 for Makati-to-BGC ride + metro rate. When you got barely any options in transpo here, in a car-centric, mostly unwalkable areas in the city, u got nowhere else to go”

— Been Sent (@vincentcastor09) December 14, 2022

“So if it hasn’t dawned on people yet and if people are still trying to defend it. The transportation system in the Philippines is so broken that people have been literally dehumanizing themselves by using transportify and lalamove and basically getting transported as human cargo”

— The Norman Whore (@emkey) December 16, 2022

Diane, 25 years old, has been resorting to this since 2017 just to get from one point to another, sometimes even within the same city.

“I only do it when I can’t get a ride on any public transport and have a hard time booking a Grab or Angkas,” she told BusinessWorld via Messenger on Dec. 21.

For Lalamove and Transportify riders, being booked to deliver a package only to find a human asking to be transported has become a common phenomenon.

A rider from one of these services shared in a Dec. 22 face-to-face conversation with BusinessWorld that while these requests are often refused, riders can’t help but consider striking an agreement with the customer if the price is right.

“This ‘hack’ emerged when I was a college student and it’s still something I’ve had to do even now when I’m already working. Nothing has changed,” Diane said.

Meanwhile, the rider explained that these kinds of deals are unavoidable: “Ganun talaga dahil sa kahirapan ngayon. Nasisilaw yung iba sa pera. Yung sasakay naman, diskarte niya yun. (That’s just how it is in difficult times. More money is tempting. As for the commuter, they’re just being strategic.)”

Traffic and commute nightmare in Metro Manila worsens due to holiday rush

December 22, 2022 | 4:51 pm

THE LEGALIZATION of motorcycle (MC) taxis will ease the nightmarish commute conditions in Metro Manila, which have worsened during the holiday rush, transport advocates said.

House Bill 10571, or the Motorcycle Taxi bill, is already in the works, with three MC taxi companies — Angkas, JoyRide and Move It — given special provisions to operate MC taxis as part of the government’s pilot-testing program.

“This law, if enacted, aims to legitimize or legalize the use of motorcycles as vehicles for hire. Right now, it’s not allowed, which is why there are many illegal habal-habal riders on the road, and passengers don’t have protection for that,” Digital Pinoys convener and national campaigner Ronald Gustilo said in a Zoom conversation on Dec. 21.

Interviews and text by Brontë H. Lacsamana.
Video editing by Earl R. Lagundino and Sam L. Marcelo.

Cocolife celebrates solidarity and kinship this holiday season in its Christmas video for 2022

December 22, 2022 | 4:45 pm

How have we managed to withstand the challenges and uncertainties during the COVID-19 crisis? Even though we were physically apart from our loved ones, friends, and colleagues, we definitely were not alone in coping with the situation. Throughout life’s countless adversities, they’ll always be there for us to lean on and gather strength from.

As we emerge from the COVID-19 crisis, we recognize those who have lent a hand and made our burdens lighter. As such, Cocolife celebrates solidarity and kinship in this year’s holiday season; appreciating those who became the “sandalan” of their families. They are the highlight of Cocolife’s Christmas music video for 2022 entitled “Sumandali Ka Lang.”

The video honors Lanie Calapiz and Roselo Baynosa, serving as utility workers for Cocogen and Cocolife, respectively.

Cocolife employees expressed their gratitude to Mr. Baynosa for his dependability, someone that they have been able to lean on during the pandemic. He did his job diligently day in and day out, and never failed to treat his fellow coworkers with care and respect.

“Maliit na bagay man o malaking bagay, lagi kang nandyan para i-assist kami,” one of the employees added.

They also expressed their appreciation to Ms. Calapiz for her patience and for the lessons they have acquired from her. “Thank you sa pagiging pasensyosa. Kasi alam mo naman, alam kong mahirap,” an employee told her. “Pero kaya mo, para sa pamilya.”

They have not only been providing support to the people at Cocolife and Cocogen, but also to their loved ones’, which drive them to work every single day.

Ms. Calapiz is a single mother with three children who are all studying. “Ako lang po mag-isa nagtataguyod sa kanila,” she shared.

Meanwhile, Mr. Baynosa is a father to three children. “Ang pinakanakakapagod ko pong parte is kung naiisip ko po na ako’y malayo sa pamilya ko eh,” he expressed. “Yung asawa ko may sakit, bilang may diabetes, tapos marami na siyang sakit na komplikado, so hindi na siya masyado makapagtrabaho, makatulong sa akin.”

Their families also expressed their gratitude for their efforts and love for them.

“Salamat sa pag-alaga, paggabay, at pagpapasaya mo samin,” Mr. Baynosa’s daughter tells him in a video message. “Sana maging okay na ang lahat para makauwi ka na din dito tapos magsama-sama na tayong pamilya.”

Ms. Calapiz was also surprised by her children and her mother. “Gusto ko magpasalamat sa mga ginagawa at binibigay mo samin,” one of her children expressed.

Through the video, Cocolife also reminded everyone that we are each other’s “sandalan” not only this Christmas but for all seasons.

Filipinos are assured that they can lean on Cocolife in times of uncertainty, and that Cocolife will always support them in whatever capacity they can in order to reach their dreams – through the company’s insurance products and investment services.

“It is our duty to serve our clients with the best insurance products, life and healthcare insurance, together with the 24/7 customer servicing to cater to our clients’ needs,” Cocolife President and CEO Atty. Martin Loon said.

“We assure you that Cocolife will provide you with only the highest quality of service, as we have done for the past 40 years,” he added.

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Two Bankman-Fried associates plead guilty to fraud as FTX founder heads to US

December 22, 2022 | 2:09 pm

NEW YORK/NASSAU — FTX founder Sam Bankman-Fried left the Bahamas on Wednesday on a US-bound flight to face fraud charges as federal prosecutors announced that two of his former associates had pleaded guilty to similar charges and were now cooperating with the government.

Manhattan US Attorney Damian Williams said in a video posted on Twitter late Wednesday night that Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of FTX, had pleaded guilty to defrauding investors in the crypto trading platform.

The revelation that two of Mr. Bankman-Fried’s closest former associates had decided to cooperate with the government significantly ramped up pressure on the former billionaire.

Mr. Williams said that Mr. Bankman-Fried is now in FBI custody and on his way to the US and urged others involved in the alleged fraud to come forward.

“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” Mr. Williams said. “We are moving quickly and our patience is not eternal.”

“I also said that last week’s announcement would not be our last, and let me be clear once again, neither is today’s,” he added.

The US Securities and Exchange Commission (SEC) in a separate statement on Wednesday evening said it had also charged Ms. Ellison and Mr. Wang for their roles in a multiyear scheme to defraud equity investors of FTX.

The US Commodity Futures Trading Commission also said it had filed fraud charges against Ms. Ellison and Mr. Wang.

An attorney for Ms. Ellison did not respond immediately to request for comment.

“Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness,” Ilan Graff, a lawyer for Mr. Wang, said in a statement.

Federal prosecutors in Manhattan last week charged Mr. Bankman-Fried with stealing billions of dollars in FTX customer assets to plug losses at his hedge fund, Alameda Research, in Mr. what Williams called “one of the biggest financial frauds in American history.”

The 30-year-old cryptocurrency mogul has acknowledged risk-management failures at FTX, but has said he does not believe he has criminal liability.

A spokesman for Mr. Bankman-Fried’s legal team declined to comment.

‘MAKE THE RELEVANT CUSTOMERS WHOLE’
Mr. Bankman-Fried rode a crypto boom to become a billionaire several times over and an influential U.S. political donor, before FTX’s crash wiped out his wealth and tarnished his reputation. The collapse was driven by a wave of customer withdrawals amid concerns over commingling of funds with Alameda.

The announcements from Williams and regulators came just hours after Mr. Bankman-Fried took off from The Bahamas where he consented at a courthouse to be extradited to the United States.

Ms. Ellison and Mr. Wang signed the plea deals on Monday, court records show, after Reuters and other outlets reported over the weekend that Mr. Bankman-Fried would waive his right to fight extradition.

The agreements call for Ellison and Wang to each post a $250,000 release bond, and states that prosecutors may call for a judge to take their cooperation into account at sentencing if they “provided substantial assistance in an investigation or prosecution.”

Mr. Bankman-Fried is likely to appear before a US federal court in Manhattan on Thursday. At his court appearance, known as an arraignment, he is expected to be asked to enter a plea. The US judge would determine whether to grant him bail, and if so, on what conditions.

Mr. Bankman-Fried was arrested on a US extradition request last week in The Bahamas, where he lives and where FTX is based. He ultimately agreed to extradition in part out of a “desire to make the relevant customers whole,” according to an affidavit read in court on Wednesday and dated Dec. 20.

Dressed in a suit, Mr. Bankman-Fried stepped up to the witness box in court, where he spoke clearly and steadily as he was sworn in.

“Yes, I do wish to waive my right to such formal extradition proceedings,” he told Judge Shaka Serville on Wednesday.

Mr. Bankman-Fried’s defense lawyer, Jerone Roberts, said his client was “anxious to leave.”

The judge said he was satisfied that Mr. Bankman-Fried had not been “forced, coerced or threatened” into making the extradition decision.

The $32 billion exchange declared bankruptcy on Nov. 11, and Mr. Bankman-Fried stepped down as CEO the same day. — Reuters

UN council demands end to Myanmar violence in first resolution in decades

December 22, 2022 | 1:49 pm

MYANMAR-PROTESTS_Reuters — FLOWERS hang during a nationwide flower campaign against the military coup in Yangon, Myanmar, April 2, 2021. — REUTERS

UNITED NATIONS — The United Nations (UN) Security Council adopted its first resolution on Myanmar in 74 years on Wednesday to demand an end to violence and urge the military junta to release all political prisoners, including ousted leader Aung San Suu Kyi.

Myanmar has been in crisis since the army took power from Ms. Suu Kyi’s elected government on Feb. 1, 2021, detaining her and other officials and responding to pro democracy protests and dissent with lethal force.

“Today we’ve sent a firm message to the military that they should be in no doubt — we expect this resolution to be implemented in full,” Britain’s UN Ambassador Barbara Woodward said after the vote on the British-drafted resolution.

“We’ve also sent a clear message to the people of Myanmar that we seek progress in line with their rights, their wishes and their interests,” Ms. Woodward told the 15-member council.

It has long been split on how to deal with the Myanmar crisis, with China and Russia arguing against strong action. They both abstained from the vote on Wednesday, along with India. The remaining 12 members voted in favor.

“China still has concerns,” China’s UN Ambassador Zhang Jun told the council after the vote. “There is no quick fix to the issue … Whether or not it can be properly resolved in the end, depends fundamentally, and only, on Myanmar itself.”

He said China had wanted the Security Council to adopt a formal statement on Myanmar, not a resolution.

Russia’s UN Ambassador Vassily Nebenzia said Moscow did not view the situation in Myanmar as a threat to international peace and security and therefore believed it should not be dealt with by the UN Security Council.

US Secretary of State Antony Blinken welcomed the resolution’s adoption. “This is an important step by the Security Council to address the crisis and end the Burma military regime’s escalating repression and violence against civilians,” he said in a statement.

‘FIRST STEP’
Until now the council had only agreed formal statements on Myanmar, where the army also led a 2017 crackdown on Rohingya Muslims that was described by the United States as genocide. Myanmar denies genocide and said it was waging a legitimate campaign against insurgents who attacked police posts.

Negotiations on the draft Security Council resolution began in September. The initial text — seen by Reuters — urged an end to the transfer of arms to Myanmar and threatened sanctions, but that language has since been removed.

The adopted resolution expresses “deep concern” at the continuing state of emergency imposed by the military when it seized power and its “grave impact” on Myanmar’s people.

It urges “concrete and immediate actions” to implement a peace plan agreed by the Association of Southeast Asian Nations (ASEAN) and issues a call to “uphold democratic institutions and processes and to pursue constructive dialogue and reconciliation in accordance with the will and interests of the people.”

The only other resolution adopted by the Security Council was in 1948, when the body recommended the UN General Assembly admit Myanmar — then Burma — as a member of the world body.

Myanmar’s UN Ambassador Kyaw Moe Tun, who still holds the UN seat and represents Ms. Suu Kyi’s government, said while there were positive elements in the resolution the National Unity Government — comprised of remnants of the ousted administration
— would have preferred a stronger text.

“We are clear this is only a first step,” he told reporters. “The National Unity Government calls on the UNSC (to build) on this resolution to take further and stronger action to ensure the end of the military junta and its crimes.” — Reuters

Injectable HIV treatment offers hope to Ugandan patients

December 22, 2022 | 1:31 pm

KAMPALA — Ever since Gerald Muwonge tested positive for HIV (human immunodeficiency virus) eight years ago, keeping his viral load in check has meant carrying around vials of pills for his daily treatment regimen while dodging the stigma this could mean for a gay man in Uganda.

But he hopes that could soon change thanks to an injectable treatment that only needs to be taken once every two months.

In October of last year, about 200 patients in the east African country began a trial of a World Health Organization-approved injection containing the drugs cabotegravir, or CAB-LA, and rilpivirine. Results are due in 2024.

The treatment, developed by British drugmaker GlaxoSmithKline, is the first non-pill option against HIV, and studies have shown similar efficacy as daily oral pills.

“These drugs, you have to take them every day, and if you are taking them at exactly 9 a.m., it should be that way until you die,” said Mr. Muwonge, a 27-year-old activist for lesbian, gay, bisexual, transgender, and intersex (LGBTI) rights.

He says the strict regimen of taking the pills messes with his head.

Mr. Muwonge, who is not among the patients in the trial, said the new injectable treatment option could help to reduce the stigma HIV patients suffer, particularly gay men like himself.

Homosexuality is illegal in Uganda, and gay people often face arrest, ostracism and violence at the hands of law enforcement or local vigilantes.

Many who have HIV have not come out to friends, family members and co-workers and prefer to hide that they have an illness that disproportionately affects the LGBTI community.

The GSK treatment secured US approval in January 2021.

GSK struck a deal in July to allow low-cost generic versions to be used in the developing world for a version of the drug used for HIV prevention but said the first generics will potentially only become available in 2026 because of regulatory requirements for manufacture and use.

In the interim, GSK said it was working on providing governments the regimen free of charge to run studies. Trials are also taking place in Kenya and South Africa.

William Tamale, a manager of the injectable antiretroviral treatment program at Uganda’s Joint Clinical Research Center (JCRC), said the drugs were “very promising.”

The JCRC was chosen to administer the trial of the injectable drugs and Tamale is in charge of that progam in Uganda, where at least 1.4 million people live with HIV/AIDS. — Reuters

Elon Musk, ‘Chief Twit’

December 22, 2022 | 11:44 am

How easy was it to forget the rocket-launching, swashbuckling billionaire inspiration for the superhero Iron Man movies held more than one job this year: the self-anointed role of “Chief Twit.”

Even as the Tesla and SpaceX CEO ended 2022 with major milestones from mounting an aggressive global expansion of Tesla to playing a supporting cast in the Ukrainian resistance of the Russian invasion, everyone focused on Elon Musk’s tweets and what he was going to do to shake up Twitter.

The world hung on his every missive however enraging, provocative or profane, but never boring. He solicited the view of the public before restoring banned accounts belonging to former US President Donald Trump and other prominent US election deniers. Some of Mr. Musk’s greatest hits now adorn the walls of Twitter’s San Francisco office — “Next, I’m buying Coca-Cola to put the cocaine back in.”

The drama intensified after sealing a suspense-filled $44 billion takeover in October, which he completed only after failing to back out of an initial offer made before the advertising market cratered.

He slashed more than half Twitter’s 7,400 staff, including firing its leaders, so quickly his people needed to go back and unfire a few. Most declined to return and work under “hardcore” conditions that entailed sleeping at the office as one employee demonstrated on Twitter.

What’s next for Twitter is anyone’s best guess as strategy shifts by tweet. He has floated the idea of building a version of China’s WeChat, a super app that would include everything from shopping to banking to social media. He has hinted at disrupting the payment space as he had earlier in his career as a founder of PayPal.

What is certain is the pursuit of Twitter sunk his net worth by more than $100 billion, bumping him down to the world’s second richest, according to Forbes.

As the year ends, his very leadership of Twitter is now in question — by him — after Twitter users voted in favor of Mr. Musk stepping down, results he promised to abide in a poll he created. Later that evening, he tweeted that nobody else wants the job either.

WHY IT MATTERS
What Twitter lacks in size, revenue or ambition, it has made up for in influence and impact. It has always punched above its weight and remains the preferred social media megaphone for world and industry leaders, revolutionaries and the media.

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” he wrote in October.

That conviction has come under severe strain. In recent days he has suspended the accounts of journalists from the New York Times, the Washington Post, CNN and others who covered his banning of an account that tracked publicly available real-time flight information on the whereabouts of his jet.

What started as a narrative about the battle for survival of an aging digital business has turned into a global referendum on free speech and content moderation as journalism advocacy groups and officials from France, Germany, Britain and the European Union condemned the suspensions.

Volker Turk, the United Nations’ high commissioner for human rights, wrote last week: “Twitter has a responsibility to respect human rights: @elonmusk should commit to making decisions based on publicly-available policies that respect rights, including free speech. Nothing less.”

WHAT DOES IT MEAN FOR 2023?
Mr. Musk’s first task is to figure out how to stop Twitter from losing $4 million a day to service some $13 billion in debt he used to finance the deal.

He can then complete his missions of converting Twitter from what conservatives allege is a haven of liberal bias to a marketplace of free speech that will not silence election deniers or those who embrace COVID conspiracy theories.

Mr. Musk’s release this year of thousands of Twitter emails and Slack messages, collectively called the “Twitter Files,” that document moderation decisions that fueled right-wing grievances laid the groundwork for the political shift.

These files expose the internal deliberations over how Twitter executives censored coverage of Hunter Biden’s laptop and blacklisted former US President Donald Trump’s account following the Jan. 6 attack on the US Capitol.

“This would have easily changed the Presidential Election outcome without even discussing all of the illegal things they did,” Mr. Trump posted on Monday on Truth Social, a rival social media platform he founded, referring to emails that claim a plot by the FBI to discredit Hunter Biden’s foreign business dealings.

Look to Mr. Musk to stoke political outrage in 2023 as he backs Florida Governor Ron DeSantis for a 2024 US presidential bid while enticing Trump to start tweeting again. — Reuters

Corporate China struggles with supply snags, demand slump as COVID cases spread

December 22, 2022 | 11:23 am

China-Shanghai Stock Exchange — A worker wearing a protective suit takes body temperature of a man inside the Shanghai Stock Exchange building in Shanghai, China Feb. 28, 2020. — REUTERS

SHANGHAI/BEIJING — As China’s massive wave of coronavirus disease 2019 (COVID-19) infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating.

From its original epicenter in the north, including the capital Beijing, COVID-19 infections are spreading throughout the country and cases are impeding workforces in manufacturing belts, including the Yangtze River Delta, near Shanghai.

Retail and financial services businesses have been hard hit by a shortage of staff, with manufacturers not far behind, according to an international business organization operating in China.

“The retail and client facing sectors are in deep trouble. Obviously, they have limited staff that are available to work because of illness, so many of our large-scale retailers are not even opening their doors,” said Noah Fraser, managing director at the Canada-China Business Council.

With mass testing halted after China abruptly dropped its zero-COVID policy this month, official data no longer reliably captures new case numbers. As of Wednesday, the country has reported only 5,241 COVID-19 fatalities since the pandemic began.

Some estimates, however, predict the wave currently sweeping the country could infect up to 60% of China’s 1.4 billion-strong population.

“The case counts are starting to creep up outside of the big cities which, of course, means the virus is moving, and we’re going to see further disruption down the line,” Mr. Fraser said.

Even before COVID-19 infections began hampering companies in China, the world’s second-largest economy was already depressed by its efforts to stamp out infections, as tight movement controls and repeated lockdowns hampered consumption and production.

China’s factory output and retail sales clocked their worst readings in six months in November, prior to the lifting of the majority of COVID curbs at the start of December.

Retail sales fell 5.9% on year amid broad-based weakness in the services sector, while automobile production slumped 9.9%, swinging from an 8.6% gain in October.

LOGISTICS LOGJAM

Leading automobile chipmaker, Renesas Electronics Corp. suspended production at its Beijing plant last Friday due to COVID-19 infections, but said it would re-open Tuesday.

“In a couple of cases companies have shut down either totally their plants or have reduced some of the production,” President of the European Union Chamber of Commerce in China Joerg Wuttke said.

China’s “closed loop” system, where employees are isolated from the wider world, and which had been relied on by many factories in China throughout the zero-COVID era, was beginning to fall apart as infections creep into workforces, Mr. Wuttke added.

“You have to prepare your people to shut it down before they have this fever, which basically clouds their judgment if they are at the machinery, for example.”

A senior executive at a large automotive manufacturer said keeping workers with specialist skills on the factory floor amid a surge in cases was just one of the issues they face.

“If the truck drivers have problems, then goods cannot be delivered to factories, the factories cannot move cars to the shops, and the whole industry chain is affected,” he said.

A senior manager, working in the heavy duty truck sector, said dealers he spoke to were either already infected, or caring for sick family members.

“Basically, everything has stalled and you cannot make any actual business,” he said. Both executives declined to be identified as they are not authorized to speak to media.

China’s position as a key cog in the global supply chain, as well as a major driver of sales for many global consumer goods companies, means further hits to production output and consumer demand will be felt far beyond its borders.

Shanghai’s extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple, Tesla, Adidas, and Estée Lauder.

For now, however, that impact is being limited in part by economic hardships elsewhere in the world denting demand for
products from China.

“Reduced demand in the US and Europe for consumer goods probably hides some of the impact,” said Jonathan Chitayat, the Asia boss of Shanghai-based Genimex Group, a contract manufacturer for a range of consumer products.

Working in manufacturers’ favor as an increasing percentage of the workforce are hit by infections in coming months is the Lunar New Year holiday, where many factories shut for at least a month as workers travel back to their home towns.

Even though the worst effects of the wave are still to emerge, some businesses in China remain relatively upbeat about the future, once the initial wave of infections subsides.

“Most of my clients are up to their eyeballs in debt right now, so all of them are gonna be out trying to entertain people and trying to push deals through,” said Dillon King, co founder of an import-based food and beverage company.

“I’m optimistic for this year coming up, but definitely feeling the pain of the last few weeks for sure.” — Reuters

Grab’s Social Protection initiative registers 1,000 driver-partners in Pag-IBIG, SSS and PhilHealth, encourages more partners to register

December 22, 2022 | 10:02 am

From left to right: representatives from Pag-IBIG, headed by Geraldine V. Pauig; representatives from PhilHealth, headed by Dr. Shirley Domingo; representatives from SSS, headed by Carlo Villacorta; and driver-partner leaders Allan Carrillo and Saturnino Mopas, together with CJ Lacsican, head of Operations of Grab Philippines

Grab Philippines, together with the Philippine Health Insurance Corp. (PhilHealth), Social Security System (SSS), and Pag-IBIG Fund, successfully registered around 1,000 driver partners through Grab’s Social Protection Program which aims to help create a stronger social safety net for Grab drivers and delivery-partners in the Philippines by supporting, educating, and connecting Grab partners to various social welfare services of the government.

“Grab is the first platform in the Philippines to roll out a robust, multi-agency social protection program for driver- and delivery-partner welfare. This program is a result of months-long dialogue and discussion with various government agencies, and we encourage all of our delivery-partners to register to become members. We made SSS, PhilHealth, and Pag-IBIG services available onsite in the Grab Partner Center in Marikina so that it will be easier for you to register,” said Grab Country Head Grace Vera Cruz.

DoLE Undersecretary Ciriaco A. Lagunzad III and Assistant Secretary Dominique Rubia-Tutay (4th and 3rd from left, respectively), alongside officials from SSS, Pag-IBIG, and PhilHealth at the Buwan ng Tagapaghatid Family Day in Manila

Grab and its government agency partners launched the initiative during the Grab’s Buwan ng Tagapaghatid Family Day Celebration at the Quezon City Memorial Circle. SSS, Pag-IBIG and PhilHealth, along with its corporate partners, educated Grab partners on the advantages of existing social protection systems, and its various benefits to the partners and their families.

“Malaking tulong sa amin ang subsidy ng Grab para sa paunang buwan na contribution para masimulan namin ang aming paghuhulog — pero mas malaking tulong ang ginawa nila na ilapit kami sa SSS, PAGIBIG at PhilHealth,” said GrabCar Driver Gleen Bajamunde.

Grab subsidized the first-month contribution of the first 1,000 Grab partners who signed up for the program during the Grab Family Day held in Quezon City and Manila. The program has been piloted in Metro Manila and will be scaled to different Grab cities and communities across the Philippines.

“This partnership with Grab is towards SSS’ goal to reach as many self-employed workers as possible, encouraging them to register as self-employed SSS members, pay the corresponding contributions, and of course, apply for benefits or loans when the need arises. May this initiative by Grab inspire other companies to step up and encourage their gig workers to become self-employed SSS members to avail government social protection programs,” said Carlo Villacorta, department manager of the Professional Sector Department and acting head of the Cooperatives and Informal Sector Department of SSS.

DoLE Undersecretary Ciriaco A. Lagunzad III addresses the crowd in Manila.

Additionally, Department of Labor and Employment (DoLE) Undersecretary Ciriaco A. Lagunzad III, also emphasized the importance of social insurance and welfare coverage of Grab delivery- and driver-partners during the Grab Family Day in Manila. “Inaanyayahan ko ang lahat ng driver-partners ng Grab na magsimula nang maghulog ng SSS, Pag-IBIG at PhilHealth premiums. Maswerte tayo sa paunang tulong na binigay ni Grab para makapagsimula tayo sa ating buwanang contribution sa SSS, Pag-IBIG at PhilHealth. Alam natin na sa ngayon, na bumabalik ang ‘dine in’ at unti-unti nang bumababa na ang demand sa ‘food delivery’.” Sana ay mabigyan kayo ng pagkakataon na maka-‘serve’ sa pamamagitan ng motorcycle taxi para tao naman ang inyong mahatid.”

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Make your most meaningful new year’s resolution as an educator

December 22, 2022 | 9:55 am

Kumon Philippines, Inc. gives educators a fulfilling and profitable way of unlocking the hidden potential of Filipino children through the tried-and-tested Kumon Method of Learning.

Education as an industry was among the hardest hit by the pandemic. With schools and universities closed down, many students and educators have had difficulty catching up with the rest of the world in using technology to supplement their classes.

Fortunately, supplementary education programs exist and have adapted quite quickly to the post-pandemic ‘new normal.’ None more so than Kumon, one of the most well-established franchises in the Philippines and across the world.

Kumon Philippines, Inc. (KPI) always had the fundamentals of education at its core, as it started out with Toru Kumon, a simple math teacher who hoped to improve his son’s math abilities. When he devised what is now distinctively known as the Kumon Method of Learning, he eventually found success in bringing out the potential of more children, leading him to establish the Kumon Institute of Education in Osaka, Japan, in 1958.

Since then, the Kumon Method has become popular with educators around the world, as millions of Franchisee-Instructors began using it to help children in their learning across different regions of the world. The Kumon franchise now extends to 65 countries, including Australia, India, United Arab Emirates, Singapore, South Africa, Switzerland, Canada, Mexico, and more. Kumon was established in the Philippines in 1996, where its franchise has grown with over 300 Kumon Centers across the country.

The Kumon Method instills in students the skills and mindset for learning new materials without being directly taught. Being a home-based education system, it has adapted well to the struggles of education during and after the pandemic, as it aims to develop students’ academic ability and independence by introducing new content in a way that enables students to learn without directly being taught.

Making an education business with purpose and potential

Yet, Kumon has become one of the leading names in the education franchising not only because of their effective methods of teaching, but because they have provided and continue to provide top-notch and consistent support needed to build a rewarding career and profitable education business.

Moreover, Kumon further improved its instructor onboarding experience by utilizing recordings of its franchise orientation videos so that applicants can just watch it from home at their convenience.

Kumon Franchisee-Instructors are guaranteed support even before the start of operations, to the setting up of the business, until Centers are operational, and beyond. Helping assure that franchisees can earn from their education business, Kumon provides a well-researched List of Open Areas, showing ideal locations with growth potential.

Finally, Kumon’s main purpose is to help students all over the world unlock their hidden potential, so Kumon Franchisee-Instructors are required to undergo hands-on training under KPI’s Franchise arm to maintain the top-notch quality of the Kumon Method of Learning. This training is not only for the benefit of Kumon’s students however, as it also includes business strategies for owning and operating a Kumon Center. The training is conducted online for the safety and convenience of prospective franchisees.

Kumon’s continued success as the leading afterschool program and education franchise in the Philippines and abroad can be attributed to its reputation in the industry and solid partnership with stakeholders, particularly its current and potential Franchisee-Instructors.

The uniqueness of the Kumon Method makes the franchising, not only a promising and lucrative opportunity, but a meaningful one. The demand for Kumon and its enrollment is year-round, and its programs are long-term. Students stay long-term as they improve and work through the program levels. This uniqueness poses financial stability, builds strong customer loyalty, and stirs a sense of fulfillment for the Franchisee-Instructor.

Most importantly, however, it also allows educators to provide quality, effective, supplementary learning program to students who need it.

To create your own profitable and fulfilling business venture in education, sign up at https://ph.kumonglobal.com/franchise-enquiry/.

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