No evidence riders get minimum wage through gig labor — report

August 11, 2022 | 3:39 pm

Gig workers in the Philippines “face low pay and dangerous conditions,” according to a report that ranked nine of the most popular digital labor platforms in the country.

According to the Fairwork Philippines 2022 report, there is no evidence that drivers and riders earn at least the daily minimum wage of P537 per day ($US 9.70) after work-related costs despite gigging for top digital platforms — namely, Angkas, Borzo (formerly Mr. Speedy), Foodpanda, Grab Car, Grab Express, Joyride, Lalamove, TokTok, and Transportify.

The baseline report, launched on Aug. 9, assessed these platforms against its five principles of fairness (fair pay, fair conditions, fair contracts, fair management, and fair representation), giving each a fairness score out of 10.

Of the gig economy platforms rated, GrabCar and GrabFood/Express topped the ranking with 3 points out of 10, followed by Angkas and Lalamove with 2 points each. The remaining companies could not provide evidence of the minimum standards of fair work.

“When platforms are not scored, it does not necessarily mean they do not provide these particular principles,” said Cheryll Ruth R. Soriano, the principal investigator for Fairwork Philippines and a professor of the department of communications at De La Salle University. “It means that we lack evidence to score… that these platforms are indeed offering these particular services.”

Workers, lured by the opportunities and promises of the platform economy as a viable source of income, take on debt to buy cars and motorcycles — only to default on loans.

“We’ve talked to a few workers na nahatak yung kanilang mga sasakyan, lalo na nung pandemic, na wala namang safeguard [We’ve talked to a few workers whose cars have been towed away, especially since the conditions prevailing in this pandemic offer no safeguards],” said Ms. Soriano. “Hindi na nila mahulugan dahil hindi naman talaga ganun ka-stable ang kita sa gig work [They couldn’t make the regular loan payments because gig work isn’t that stable].”

Platform workers may seem to be earning well but after fixed capital costs, onboarding costs (including uniforms and insulated bags), and mobile data costs, “they’re actually in an economically precarious situation,” she said.

Over 400,000 Filipino workers fall under this gig economy classification. As with many other platform workers worldwide, their status as independent contractors rather than employees disqualify them from social protections provided under Philippine labor laws.

Among these benefits is health insurance. Although some platforms provide accident insurance and safety mechanisms, others ask workers to get their own. It is common for workers to crowdsource resources in social media groups when they fall ill or get into an accident.

The report’s other findings are as follows:

None of the nine platforms demonstrates their workers are guaranteed to be paid the minimum wage after costs.
Only four platforms (GrabCar, GrabFood/GrabExpress, Angkas, and Lalamove) could evidence practices to protect workers from risks associated with their jobs.
Many platforms operating in the Philippines need to do better when providing a basic level of fairness in their contracts. Some excluded liability on the part of the platforms. Four (GrabCar, GrabFood/GrabExpress, Angkas, and Lalamove) have clear terms and conditions, in a language comprehensible to the workers.
Two platforms (GrabCar and GrabFood/GrabExpress) were evidenced to have precise communication mechanisms for workers to meaningfully appeal low ratings, payment issues, deactivations, and other penalties and disciplinary actions.
There was no evidence that any of the studied platforms assured freedom of association and the expression of a collective worker voice. Neither was their proof that any of the platforms supported democratic governance.

Data was collected using desk research, as well as worker and manager interviews from the nine different platforms.

“This promotion of platform labor as an opportunity needs to be matched with ample protections and safeguards so workers do not fall into economically precarious conditions,” said Ms. Soriano.

Fairwork is a project based at the Oxford Internet Institute, University of Oxford, financed by the Federal Ministry for Economic Cooperation and Development, and commissioned by the Deutsche Gesellschaft für Internationale Zusammenarbeit. The project evaluates the work conditions of digital labor platforms in the platform economy.

“Some platforms scored better than others,” said Adam Badger, a postdoctoral researcher at Fairwork’s UK team. “That means better practice is possible, and that platforms can improve on those practices. It’s not all a sad story.”

The Philippine platform economy report will be updated yearly. — Patricia B. Mirasol

North Korea declares victory over COVID, suggests leader Kim had it

August 11, 2022 | 3:02 pm

North-Korea-Kim-Jong-Un — KCNA VIA REUTERS

SEOUL — North Korean leader Kim Jong Un has declared victory over coronavirus disease 2019 (COVID-19) and his sister indicated that he too caught the virus, while vowing “deadly retaliation” against South Korea, which the North blames for causing the outbreak.

Mr. Kim ordered the lifting of maximum anti-epidemic measures imposed in May though adding that North Korea must maintain a “steel-strong anti-epidemic barrier and intensifying the anti-epidemic work until the end of the global health crisis,” North Korea’s KCNA news agency reported on Thursday.

North Korea has never confirmed how many people caught COVID, apparently because it lacks testing supplies.

Instead, it has reported daily numbers of patients with fever, a tally that rose to some 4.77 million. But it has registered no new such cases since July 29.

Mr. Kim made his declaration in a speech on Wednesday at a meeting on COVID policy with thousands of unmasked officials sitting indoors, according to footage from state broadcasters.

Mr. Kim’s sister, Kim Yo Jong, also addressed the gathering and said the young leader himself had suffered from fever symptoms, according to KCNA, indicating for the first time that he was likely infected with the virus.

“Even though he was seriously ill with a high fever, he could not lie down for a moment thinking about the people he had to take care of until the end in the face of the anti-epidemic war,” she said.

She did not elaborate on Kim’s health but blamed propaganda leaflets from South Korea found near the border for causing the coronavirus outbreak.

North Korean defectors and activists in the South have for decades floated balloons carrying anti-Pyongyang leaflets into the North, at times along with food, medicine, money and other items.

Kim Yo Jong criticized South Korea’s new government of President Yoon Suk-yeol for seeking to lift a 2020 ban on the leaflet campaigns, calling the South an “invariable principal enemy.”

“We can no longer overlook the uninterrupted influx of rubbish from South Korea,” she said, threatening to “wipe out” South Korea’s authorities.

“Our countermeasure must be a deadly retaliatory one.”

South Korea’s Unification Ministry, which handles relations with the North, expressed regret about North Korea’s repeated “groundless claims” regarding the origin of its COVID outbreak and its “rude and threatening remarks”.

Asked about Mr. Kim’s health, an official at the ministry said it could not confirm anything.

RESTRICTIONS REMOVED
Analysts said although the authoritarian North has used the pandemic to tighten social controls, its victory declaration could be a prelude to restoring trade hampered by border lockdowns.

“The meeting seems primarily aimed at fostering unity among the people but could also be to send a message to China that they’re COVID-free and ready to restart trade,” said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

Analysts have also said the declaration of victory over COVID may clear the way for the North to conduct its first test of a nuclear weapon since 2017.

North Korea’s official death rate of 0.0016%, or 74 out of some 4.77 million, is an “unprecedented miracle,” its anti-COVID chief Ri Chung Gil told the meeting.

The World Health Organization has cast doubts on North Korea’s assertions.

“Whatever the truth behind the numbers, this is the story being told to the North Korean citizens. And right now the numbers are telling them that the epidemic is over,” said Martyn Williams, a researcher with the US-based 38 North Project.

Like other countries, North Korea was likely balancing the need for control with public frustration with restrictions, he said.

“As of Wednesday evening, state TV was still showing 100% mask wearing in public activities but the longer cases remain at zero, I think the greater the public will question the continued limitations on their lives,” Mr. Williams said.

North Korea’s declaration on COVID comes despite no known vaccine programme. Instead, it says it relied on lockdowns, domestically produced medicines, and what Mr. Kim called the “advantageous Korean-style socialist system.” — Reuters

Samsung unveils new foldable smartphones, seeking keep lead in growing market

August 11, 2022 | 2:33 pm

SEOUL — Samsung Electronics unveiled its latest high-end foldable smartphones on Wednesday, keeping prices at the same level as last year’s in a bid to cement its leadership in an expanding niche market.

The smartphone maker priced its clamshell Galaxy Z Flip4 at $999.99, and the 5G-enabled top-line Galaxy Z Fold4 with a 7.6-inch main screen to start at $1,799.99 in the United States, the same as the launch prices of last year’s models.

“We’ve successfully transformed this category from a radical project to a mainstream device lineup enjoyed by millions worldwide,” said TM Roh, president and head of mobile experience at Samsung Electronics.

The Galaxy Z Flip4 and Z Fold4, as well as its latest earbuds, Galaxy Buds2 Pro, will be generally available starting Aug. 26 in select places such as the United States, parts of Europe and South Korea.

Counterpoint Research forecast global shipments of foldable smartphones to grow to 16 million units this year, just 1.2% of the 1.36 billion smartphone shipments forecast, but a jump from 9 million foldables shipped last year.

Although the overall smartphone market is seen shrinking this year as consumers spend less, foldable smartphones are likely to fare better, as their quirky form factor, large screens and portability attract interest, analysts said.

Samsung held a 62% market share in foldable smartphones in the first half of 2022, followed by Huawei at 16% and Oppo at 3%. Counterpoint forecast Samsung’s share in the second half will be around 80% after the new releases.

Samsung said it is aiming for foldable phone sales to surpass that of its past flagship smartphone, Galaxy Note, in the second half.

“Foldables have helped Samsung differentiate itself… Apple will be Samsung’s key competitor in the future and we expect a foldable to be released from Apple in either 2024 or 2025,” said Counterpoint senior analyst Jene Park.

Samsung said the latest models make it easier for phone owners to use popular apps such as Instagram and Microsoft’s Outlook. — Reuters

Indian companies swapping dollar for Asian currencies to buy Russian coal

August 11, 2022 | 2:07 pm

NEW DELHI — Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the US dollar and cutting the risk of breaching Western sanctions against Moscow.

Reuters previously reported on a large Indian coal deal involving the Chinese yuan, but the customs data underline how non-dollar settlements are becoming commonplace.

India has aggressively stepped up purchases of Russian oil and coal since the war in Ukraine began, helping to cushion Moscow from the effects of sanctions and allowing New Delhi to secure raw materials at discounts compared to supplies from other countries.

Russia became India’s third-largest coal supplier in July, with imports rising by over a fifth compared with June to a record 2.06 million tonnes.

In June, Indian buyers paid for at least 742,000 tonnes of Russian coal using currencies other than the US dollar, according to a summary of deals compiled by a trade source based in India using customs documents and shared with Reuters, equal to 44% of the 1.7 million tonnes of Russian imports that month.

Indian steelmakers and cement manufacturers have bought Russian coal using the United Arab Emirates dirham, Hong Kong dollar, yuan and euro in recent weeks, according to customs documents separately reviewed by Reuters.

The yuan accounted for 31% of the non-US dollar payments for Russian coal in June and the Hong Kong dollar for 28%. The euro made up under a quarter and the Emirati dirham around one-sixth, the data from the trade source showed.

India’s Ministry of Finance, which administers the customs board, did not respond to emails seeking comment confirming the documents. The Ministry of Commerce and Industry declined to comment.

The Reserve Bank of India also did not respond to requests for comment.

The RBI has approved payments for commodities in the Indian rupee, a move it expects to boost bilateral trade with Russia in its own currency.

The US dollar has been the dominant currency for Indian commodity imports, traders said, and the greenback makes up most of the country’s foreign exchange reserves.

For deals in a currency other than the dollar, lenders would potentially have to send dollars to bank branches in the country of the original currency, or banks they have tie-ups with, in exchange for that currency to settle the trade.

KEEPING DOLLAR AT A DISTANCE
Two traders based in India that purchase coal for domestic customers and a trader based in Europe that deals with Russian coal said they expected the share of non-dollar transactions for Russian coal to increase as banks and other parties explore ways of cushioning themselves against any further tightening of sanctions.

Buying Russian coal using the US dollar is not illegal for Indian firms.

Reuters was able to corroborate customs documents for four of the 11 vessels in the summary of Russian coal trades in June provided by the trade source, which showed payments made using the yuan, euro and the Emirati dirham, using ship tracking data and by speaking to a private customs agent based in India.

Another three vessels in the 11 deals in the trader’s summary were paid for using the Hong Kong dollar and the yuan, two trade sources familiar with the transactions confirmed.

In one of those three deals, Jindal Steel and Power Ltd (JSPL) imported 79,721 tonnes of so-called PCI coal in the vessel Zheng Kai from Russia’s Ust-Luga port using yuan, according to the two sources.

Rival steelmaker Arcelormittal Nippon Steel India shipped in 35,000 tonnes of Russian anthracite coal using euros, a customs document dated June 15 showed.

JSPL and Arcelormittal Nippon declined to comment.

Non-dollar imports continued into July.

Two Indian customs documents from last month reviewed by Reuters showed that Indian companies agreed to pay for Russian coal using Hong Kong dollars and Emirati dirhams.

India’s JK Lakshmi Cement imported 10,000 tonnes of Russian thermal coal in the bulk vessel Ada, according to a customs document dated July 20. The invoice was valued at 14.62 million Emirati dirhams ($3.98 million), and trader Swiss Singapore facilitated the deal.

JK Lakshmi did not respond to calls or emails requesting a comment. Swiss Singapore, owned by Indian conglomerate Aditya Birla Group, did not respond to requests seeking comment.

Indian coal trader Chettinad Logistics imported 25,000 tonnes of Russian thermal coal from Singapore-based trader Avani Resources and paid in Hong Kong dollars, another customs document dated July 20 showed.

Reuters was unable to contact Chettinad Logistics. Avani did not respond to an email seeking comment. ($1 = 0.9764 euros, 7.8497 Hong Kong dollars, 3.6729 UAE dirham) — Reuters

US rethinks steps on China tariffs in wake of Taiwan response — sources

August 11, 2022 | 1:02 pm

WASHINGTON — China’s war games around Taiwan have led Biden administration officials to recalibrate their thinking on whether to scrap some tariffs or potentially impose others on Beijing, setting those options aside for now, according to sources familiar with the deliberations.

President Joseph R. Biden, Jr.’s team has been wrestling for months with various ways to ease the costs of duties imposed on Chinese imports during predecessor Donald Trump’s tenure, as it tries to tamp down skyrocketing inflation.

It has considered a combination of eliminating some tariffs, launching a new “Section 301” investigation into potential areas for additional tariffs, and expanding a list of tariff exclusions to aid US companies that can only get certain supplies from China.

Mr. Biden has not made a decision on the issue and all options remain on the table, the White House said.

The tariffs make Chinese imports more expensive for US companies, which, in turn, make products cost more for consumers. Bringing down inflation is a major goal for Mr. Biden, a Democrat, ahead of the November midterm elections, which could shift control of one or both houses of Congress to Republicans.

But Beijing’s response to US House Speaker Nancy Pelosi’s visit last week to Taiwan triggered a recalculation by administration officials, who are eager not to do anything that could be viewed by China as an escalation while also seeking to avoid being seen as retreating in the face of the communist country’s aggression.

China’s military for days took part in ballistic missile launches and simulated attacks on the self-ruled island of Taiwan that China claims as its own.

“I think Taiwan has changed everything,” said one source familiar with the latest developments in the process, details of which have not been previously reported.

“The president had not made a decision before events in the Taiwan Strait and has still not made a decision, period. Nothing has been shelved or put on hold, and all options remain on the table,” said White House spokesperson Saloni Sharma. “The only person who will make the decision is the president — and he will do so based on what is in our interests.”

Asked why a decision was taking so long, Commerce Secretary Gina Raimondo referred to the complicated geopolitical situation.

“After Speaker Pelosi’s visit to Taiwan, it’s particularly complicated. So the president is weighing his options. He is very cautious. He wants to make sure that we don’t do anything which would hurt American labor and American workers,” she said in an interview with Bloomberg TV.

EXCLUSIONS LIST

With the most forceful measures regarding tariff relief and tariff escalation largely on the back burner for now, focus is on the so-called exclusions list.

The Trump administration had approved tariff exclusions for more than 2,200 import categories, including many critical industrial components and chemicals, but those expired as Mr. Biden took office in January 2021. US Trade Representative Katherine Tai has reinstated only 352 of them. Industry groups and more than 140 US lawmakers have urged her to vastly increase the numbers.

The Biden administration’s next steps could have a significant impact on hundreds of billions of dollars of trade between the world’s two largest economies.

US industries from consumer electronics and retailers to automotive and aerospace have been clamoring for Mr. Biden to eliminate the duties of up to 25% as they struggle with rising costs and tight supplies.

The tariffs were imposed in 2018 and 2019 by Mr. Trump on thousands of Chinese imports valued then at $370 billion to pressure China over its suspected theft of US intellectual property.

Some senior administration officials, including Treasury Secretary Janet Yellen, had argued the duties were imposed on “non-strategic” consumer goods that had unnecessarily raised costs for consumers and businesses, and removing them could help ease rampant inflation. Ms. Tai argued the tariffs were “significant leverage” that should be used to press China for changes to its behavior.

MULTIPLE FACTORS

Multiple factors, in addition to China’s Taiwan response, have complicated the administration’s deliberations.

As US officials considered getting rid of some of the tariffs, they sought reciprocal rollbacks from Beijing and were rebuffed, two sources said.

One of the sources, who said a unilateral removal of some US tariffs on Chinese imports has been put on hold, said this was done in part because China failed to show any willingness to take reciprocal actions or meet its “Phase 1” trade deal commitments.

A spokesperson for the Chinese embassy in Washington said economic and trade relations between the two countries faced “severe” challenges.

“The (Pelosi) visit has undermined the political foundation of the China-US relations and will inevitably cause major disruption to the exchanges and cooperation between the two sides,” Liu Pengyu said in an email to Reuters.

The trade deal, reached at the end of 2019 with the Trump administration, required China to increase its purchases of US farm and manufactured goods, energy and services by $200 billion in 2020 and 2021 over 2017 levels. China fell well short of these commitments, which included a $77.7 billion two-year increase in imports of U.S. manufactured goods, including aircraft, machinery, vehicles and pharmaceuticals.

The Peterson Institute for International Economics estimates that China effectively bought none of the extra goods it promised. Beijing blamed the coronavirus disease 2019 (COVID-19) pandemic, which began just as the deal was signed in January 2020.

The US Trade Representative’s office is now in the midst of a statutory four-year review of the tariffs imposed by Mr. Trump, which could take a few more months to complete. Final public comments on whether to keep them in place are due by Aug. 23.

Union groups led by the United Steelworkers have urged USTR to keep the tariffs on Chinese goods in place to help “level the playing field” for workers in the United States and reduce US reliance on Chinese suppliers.

Mr. Biden has been concerned about rolling back tariffs in part because of labor, which is a key constituency for him, and because of China’s failure to buy the products it had agreed to purchase, according to the first source. The White House has declined to lay out a timeline for when a final decision will be made. — Reuters

Energy price crisis exposes Britain’s ‘leaky’ homes

August 11, 2022 | 12:34 pm

LONDON — Sitting in his cool front room in Worcester Park, a suburb of sprawling south London, John Butler explains how it used to feel living in his 1930s home.

The damp caused cupboards to go moldy and the wallpaper to peel. The interior walls could be cold to the touch in the winter, and opening windows in the summer would give him a sore throat from the pollution outside while doing little to cool down the house.

“It would be excruciatingly hot,” said Mr. Butler, 60, who has lived in the house for nearly three decades.

But this summer he and his partner, Dawn Mulvaney, have been comfortable for the first time, after their home was one of 13 chosen for a local social-housing retrofit, to pilot a new approach from the Netherlands called “Energiesprong.”

Instead of boosting a home’s energy efficiency one improvement at a time — updating the heating system, replacing windows, insulating wall cavities — the building is fully updated within a few months, or even a few days.

Under the Energiesprong system — the name means “energy leap” in Dutch — insulated pre-made roof and wall panels are installed to fully envelope the original house, like a tea cosy.

That, combined with rooftop solar panels, new doors, triple-glazed windows and a low-carbon heat pump and ventilation system, brings the house close to achieving net-zero emissions, with the power it generates mostly covering what it uses.

After Mr. Butler’s retrofit, “the bills went down straight away, the air was cleaner, the rooms were cooler,” he said.

In the six days after the work was completed in July, the couple’s energy bill came to 4 pounds ($4.84), one-fifth of what they used to pay per week in the summer.

As homes across Britain brace for soaring energy costs this winter due to a global surge in fuel prices driven by the war in Ukraine, investing in more such retrofits could ease the burden for the poor — and set up Britain to meet its climate goals.

UK household energy costs are expected to surge 230% this winter compared to last year, according to analysts at Cornwall Insights — a meteoric hike many families will struggle to afford.

The financial squeeze facing millions of Britons spotlights the government’s sluggish progress on upgrading homes to improve energy efficiency, a move climate experts and housing groups see as vital to reaching net-zero goals and lowering energy bills.

A June report from the independent Climate Change Committee said Britain had made headway in boosting its use of renewable energy and electric vehicles, but a lack of housing retrofits is one thing hampering progress towards its goal of net-zero carbon emissions by 2050.

The report said government schemes supported energy efficiency projects in more than 150,000 homes last year, but that needs to increase to 1 million per year by 2030.

Britain has approximately 29 million households.

“The first thing we should do isn’t subsidize everyone’s Teslas, but make sure those in the most vulnerable housing are able to affordably keep warm,” said Alastair Harper, head of public affairs at housing charity Shelter.

“People are stuck in old, leaky buildings that weren’t designed for the world we’re in now,” he said.

SOCIAL HOUSING FOCUS

As a way to get homes to net zero, whole-house upgrades can be prohibitively expensive.

But Emmelie Brownlee, head of communications at Energiesprong UK, the nonprofit company working to expand the approach, said the cost would come down as the supply chain develops.

The organization aims for a cost of about 75,000 pounds ($90,720) per retrofit, with Ms. Brownlee saying its method is still cheaper and more climate-efficient than single measures over the long term.

With the help of government grants, Mr. Butler’s retrofit was paid for by Sutton Housing Partnership, which manages the council’s housing. Now the retrofit is complete, Butler will pay them a weekly 10-pound fee to contribute to the cost.

In search of other options, many local governments have applied for the government’s 3.8 billion-pound Social Housing Decarbonisation Fund (SHDF), which launched last year.

The SHDF takes a “fabric first” view that prioritizes loft and wall insulation before replacing energy systems, a method some experts back as quick and affordable, estimating an uninsulated home loses about a quarter of its heat through its roof.

London Mayor Sadiq Khan aims to accelerate retrofit efforts in the capital by mobilizing about 500 million pounds through green bonds.

“Social (housing) is the way to go because we can ramp up quite quickly,” Mr. Khan said in an interview with the Thomson Reuters Foundation.

“Rather than going door to door… if you do social homes, you get an entire block,” Mr. Khan said.

INSULATING AGAINST FUEL POVERTY

But social housing makes up less than one-fifth of homes in Britain.

Fuel poverty can be an even bigger problem in private rentals and owner-occupied properties where there have generally been fewer efforts to upgrade energy efficiency.

The Department for Business, Energy and Industrial Strategy (BEIS) launched the Green Homes Grant in 2020 to kick-start energy efficiency retrofits for private homes and rental units.

But a report from the Public Accounts Committee found the scheme, which spent only 20% of its original budget after many applications were rejected, will have helped upgrade only about 47,500 homes out of the 600,000 planned.

The report added that the department’s “fragmented, stop-go” approach to retrofitting homes in general “has hindered stable, long-term progress”.

A BEIS spokesperson said the department is taking these lessons into account when designing new policies, and has a commitment to “go further and faster” in investing 6.6 billion pounds in energy efficiency measures over this parliamentary term.

Nick Mabey, director of the E3G climate change think-tank, said the best way to scale up successful retrofit projects is to give more control to local governments.

“We’re the most centralized country in the G20 for infrastructure investment and financing, and that means we struggle when it comes to things that require detailed, place-based investment and engagement,” he said.

Over in Sutton, Mr. Butler worries there could be social unrest in the winter when many people are forced to choose between heating their homes and paying their rent, or feeding their children.

“Things just can’t go on the way they have been,” he said. ($1 = 0.8267 pounds) — Thomson Reuters Foundation

Sick again, Argentina’s economy eats away at nation’s mental health — study

August 11, 2022 | 11:57 am

Argentine one hundred peso bills — REUTERS

BUENOS AIRES — Argentines mired in their country’s latest economic meltdown are experiencing a growing sense of hopelessness, according to a landmark mental health study that points to boom times for at least one profession: psychologists.

Beset by soaring inflation that depresses livelihoods as the peso currency steadily declines, the dysfunctional economy is wreaking havoc on the population’s state of mind as well as its wallets.

That’s the conclusion of a survey by Buenos Aires University’s (UBA) applied psychology department, which found that upwards of 85% of 1,700 respondents think the present crisis has made them less hopeful for the future, with half describing the change as significant or drastic.

Blessed with rich natural resources, the South American country has nevertheless lurched from one crisis to another for much of its 200-plus years since independence, progressively helping fuel demand for mental health care, which is generally accessible through public hospitals.

According to pre-pandemic data from the World Health Organization, Argentina had 222 psychologists per 100,000 residents, compared with 49 in France and 30 in the United States.

“The constant cycle of crisis has filled up so many doctor’s offices,” said Gustavo Gonzalez, head of the UBA’s applied psychology department.

“Things are bad, and in some ways, worse in terms of mental health.”

The UBA poll showed the most used terms by respondents to describe their current state of mind were “anguish,” “fed up,” “angry” and — the single most used term among 18–29-year-olds — “fear for the future.”

Nearly 90% said they thought their economic circumstances would worsen over the next year.

President Alberto Fernandez has sought to stop the economic rot with measures including giving his latest economy minister, Sergio Massa, expanded powers over trade, industrial and agricultural policy.

Meanwhile, the ranks of the poor have swollen to almost 40% of the population.

UBA’s Mr. Gonzalez said the present turmoil was contributing to a “psychological saturation” for those most affected, as too many emotionally exhausted people essentially gave up on the possibility of a brighter future.

“The average Argentine can’t seem to find the light at the end of the tunnel, and they obviously hold the government responsible,” he said, potentially bad news for Mr. Fernandez’s ruling center-left Peronists when the country holds elections next year.

“It’s like a curse that eternally returns.” — Reuters

ABS-CBN, TV5 sign landmark deal that includes SkyCable

August 11, 2022 | 10:56 am

Cignal-x-SkyCable-KV — Present at the signing are (from left) PLDT Inc. and Smart Communications Inc. President and CEO Alfredo S. Panlilio, Mediaquest Holdings Chairman Manuel V. Pangilinan, Mediaquest Holdings President & CEO Jane J. Basas, Sky Cable Corp President & CEO Antonio S. Ventosa, ABS-CBN Chairman Mark L. Lopez and ABS-CBN President & CEO Carlo L. Katigbak.

By Regina Lay, One News Business News Editor

It’s a match made for TV: MediaQuest, the parent company of TV5 Network, has signed a landmark deal with ABS-CBN, capping three years of disruption in the broadcast media industry.

The closed-door ceremony was led by MediaQuest Holdings Chairman Manuel V. Pangilinan and ABS-CBN Chairman Mark L. Lopez at the Cignal Launchpad headquarters in Mandaluyong.

ABS-CBN will acquire 6,459,353 primary shares, or roughly 34.99%, in TV5 for P2.16 billion. Down the line, there is also an option, subject to regulatory approvals, for ABS to increase its stake to up to 49.92%.

“We welcome the investment and entry of ABS-CBN in TV5. ABS-CBN has always been the leading developer and provider of Filipino entertainment content in the Philippines and overseas as well. We now can achieve our cherished goal in greater measure of providing quality content across Entertainment, Sports and News in the service of the Filipino people,” Mr. Pangilinan said in a statement.

The two had been in discussions for over a year, and Mr. Pangilinan said both sides are walking away “happy”.

“Both parties feel good about it, that we did not take everything on the table,” he said on the sidelines of the event.

Both sides are also still working out the grid and have not finalized the show lineup. “There is discussion and agreement that News should also be combined in some shape or form,” Mr. Pangilinan said.

“For ABS-CBN, it presents an exciting opportunity to achieve synergies in content production, work with the best talent on-cam and off-cam, as well as to expand our ability to reach and engage with every Filipino throughout the country,” Mr. Lopez said.

“This partnership is consistent with the strategic intention of ABS-CBN to evolve and primarily be a storytelling company,” he added. The network giant lost its franchise two years ago and recently told shareholders it will focus on content distribution instead.

The deal also includes Cignal Cable acquiring a minority 38.88% stake in SkyCable for P2.862 billion. The company says this will enhance its public service offerings, particularly educational programs for children in remote areas.

But even before the announcement, the idea had already triggered a reaction from the Philippine Competition Commission. The MVP group had actually expressed interest in SkyCable as early as 2020, but dropped the bid then due to possible antitrust issues.

But this time Mr. Pangilinan was unfazed, saying “both organizations have ensured that the transaction meets all of the legal requirements [and] securities laws”.

Asked if this might finally be TV5’s path to profitability, Mr. Pangilinan said: “That’s part of the motivation. You’re not marrying somebody to lose money, right?”

Both transactions are expected to close in August 2022.

Also at the signing were PLDT Inc. and Smart Communications Inc. President and CEO Alfredo S. Panlilio, Mediaquest President Jane J. Basas, Sky Cable President Antonio S. Ventosa, ABS-CBN President & CEO Carlo L. Katigbak and ABS-CBN Head of Corporate Partnerships Roberto Barreiro.

“We look forward to this strengthened partnership, as we see the opportunity to help TV5 grow and be an important part of every home in the Philippines,” Mr.Lopez said. “I am happy and honored to be able to recognize and say: Ang ating mga Kapatid ay ang ating mga Kapamilya.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

SLMC Bonifacio Global City MAB Corp. to hold annual stockholders’ meeting on September 14

August 11, 2022 | 7:00 am

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Net FDI inflows jump 64% in May

August 11, 2022 | 12:34 am

Skyline-slum-area — The Makati skyline is seen in the background in this file photo. — PHILIPPINE STAR/ MICHAEL VARCAS

NET INFLOWS of foreign direct investments (FDIs) increased 64% in May, as investors adopted a wait-and-see attitude after the presidential elections.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed that FDI net inflows surged to $742 million in May from $452 million in the same month in 2021.

However, net inflows of FDIs went down by 24.9% from $989 million in April.

The net FDI inflows in May was the lowest level in two months, or since the $727 million in March.

“The year-to-date growth was mainly on account of the increase in non-residents’ net investments in debt instruments, which muted the decline in net equity capital placements (other than reinvestment of earnings),” the BSP said in a statement.

In an e-mail note, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the May FDI net inflows was “the lowest in two months or since March 2022 amid some wait-and-see stance while waiting for the outcome of the May 2022 presidential elections, but still among pre-pandemic highs.”

The Philippines conducted its national elections on May 9. President Ferdinand R. Marcos, Jr. and his running mate Vice-President Sara Duterte-Carpio, won by a landslide.

Despite the month-on-month slump in FDIs, this was the fastest growth in monthly FDI inflows since the 98.2% surge in November last year.

“The pickup in FDI reflects the improving sentiment from reopening theme, which continued to play out nicely and supported the recovery,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Metro Manila and most areas in the country have been under the most lenient alert level since March, as coronavirus infections declined.

Mr. Roces also said FDIs contributed to capital formation despite private consumption going down, as seen from the second-quarter gross domestic product (GDP) report on Tuesday.

The country’s GDP expanded by 7.4% in the second quarter, slower than the 12.1% a year ago and the 8.2% in the first quarter of 2022.

Quarter on quarter, household spending fell 2.7%, reflecting the impact of rising prices.

The share of capital formation, the investment component of the economy, eased to 20.5% in the second quarter from 83.7% last year.

“FDI contributed to this as the money that is invested is spent to create economic activity to form physical capital,” Mr. Roces said.

BSP data showed non-residents’ net investments in debt instruments of local affiliates jumped by 93% to $544 million in May, from $282 million a year ago.

Also, investments in equity and investment fund shares rose by 16% in May to $197 million.

Non-residents’ net investments in equity capital (other than reinvestment of earnings) grew by 47.8% to $91 million from $61 million in the same month last year. Equity capital placements up by 25.1% to $104 million, while withdrawals dropped by 40.5% to $13 million.

The equity placements were mainly from Japan, the United States, Singapore and the Netherlands, and invested mostly in manufacturing, real estate, information and communication, and transportation industries.

Reinvestment of earnings slipped by 2% to $106 million year on year in May.

For the first five months of the year, total FDI net inflows grew by 18.8% to $4.2 billion from the $3.5 billion net inflows posted in the same period last year.

Reinvestment of earnings inched up by 0.2% to $435 million in the January to May period.

Meanwhile, investments in equity capital slumped by 31.3% to $607 million in the five-month period, as placements declined by 34.2% to $679 million. Equity withdrawals also dropped by 51.4% to $72 million.

Net inflows of FDIs are expected to slow in the next few months, amid external headwinds.

“Compared with other emerging economies, the Philippine economy remains to be one of the fastest growing economies,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

“External headwinds such as potential slowdown in advanced economies can eventually temper the rise of FDI, however, for the year, most of these economies are still growing above their potential output and businesses would have the capacity to invest in emerging economies such as the Philippines,” she added.

Ms. Velasquez also said specific investment priorities should be laid out by the new administration.

“With mobility restrictions still down, FDI may still continue to play a role in propping up the recovery in the quarters ahead,” Mr. Roces said.

The central bank sees FDI net inflows reaching $11 billion this year. — Keisha B. Ta-asan

Palace denies Marcos signed sugar order

August 11, 2022 | 12:33 am

MALACAÑANG late on Wednesday denied approving a sugar importation order that was uploaded on the regulator’s website, then taken down, saying that it was not signed by President Ferdinand R. Marcos, Jr.

Mr. Marcos, chairman of the Sugar Regulatory Administration (SRA) Board and Agriculture secretary, rejected the proposal to import 300,000 metric tons (mt) of sugar “in no uncertain terms,” Press Secretary Rose Beatrix L. Cruz-Angeles said in a statement. She did not elaborate.

A signed copy of Sugar Order (SO) No. 4 dated Aug. 9 was uploaded on the SRA website on Wednesday morning. The order, which showed it was received by the SRA Records Section and University of the Philippines Law Center Office of the National Registrar on Aug. 10, could not be found on the website by Wednesday afternoon.

The copy of the order showed a signature above Mr. Marcos’ name, as well as signatures by SRA Administrator Hermenegildo R. Serafica, board members Roland B. Beltran (miller’s representative) and Aurelio Gerardo J. Valderrama, Jr. (planters’ representative).

However, Ms. Cruz-Angeles said the President “did not sign that.”

Mr. Serafica, vice-chair of the SRA board, earlier on Wednesday said the sugar importation was approved by the board to “fill the gap in production.”

When asked about Malacañang’s statement, he declined to comment.

Sugar prices in the country have gone up due to tight supply.

According to SRA’s final estimate for crop year 2021-2022, raw sugar output would reach 1.8 million MT, a 16% drop from last season’s 2.14 million MT.

The SRA estimates that by end-August, sugar stocks will be in negative territory, with raw sugar balance at -35,231 MT and refined sugar balance at -20,748.65 MT.

In early August, the average price of refined sugar in wet markets climbed to P95 per kilogram, or up 79.5% from P52.93 in the similar period a year ago. The average price of raw sugar in wet markets surged by 57.7% to P71.43 from P45.29 in 2021.

In February, the SRA issued SO No. 3, which authorized the importation of 200,000 MT of refined sugar.

“If you recall, after Typhoon Odette, the SRA already projected that we will be short in supply by August. Hence, the SRA issued SO No. 3. This volume was allocated exclusively for the industrial users at that time,” Mr. Serafica said on Wednesday morning.

However, a court issued a temporary restraining order on the imports, after a case was filed by sugarcane planters led by the United Sugar Producers Federation.

“This caused the industrial users to scramble for sugar and buy whatever sugar they can to keep their factories running… this stalling of importation resulted in the tightness in supply such that even the sugar that was normally intended for the retail market was being used up by the industrials. Even the buffer stock was depleted,” Mr. Serafica said.

The SRA chief noted some mills began operations early to beef up sugar stocks.

“Mills normally start between September to December but this time some mills opted to start this August to help alleviate the supply situation,” he said.

‘A BREATHER’
Sought for comment, Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said sugar imports would provide a much-needed “breather” for food processing firms.

“The sugar shortage and high price issues are a recurring one over the years similar to rice,” Mr. Barcelon said in a Viber message.

“The DA should institute a monitoring system to avoid inflationary impact. A system of balancing supply versus price so the local sugar farmers and mills would not be unduly impacted,” he added.

The PCCI, the Philippine Food Exporters, and Philippine Exporters Confederation urged the government to look into “the crippling supply of sugar that is expected to hurt both the local food processors and manufacturers and the consumers in general.”

“While we recognize the need to protect our sugar producers and millers, we need to strike a balance and consider expanding our import requirement before the situation worsens, which could lead to higher inflation,” the groups said in a statement.

Trade Undersecretary Ruth B. Castelo said in a Laging Handa briefing on Wednesday that the Department of Trade and Industry (DTI) is ready to help the DA in enforcing and monitoring the suggested retail price (SRP) for sugar, which has yet to be released.

“Once the DA releases the SRP, the DTI can help in terms of monitoring since we are also checking in markets. We can include sugar,” Ms. Castelo said. — Kyle Aristophere T. Atienza, Luisa Maria C. Jocson and Revin Mikhael D. Ochave

Philippine bookshops rush online as coronavirus pandemic boosts sales

August 11, 2022 | 12:32 am

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By Michelle Anne P. Soliman, Reporter

BEVERLY WICO SIY, 42, failed to publish a book on Filipino idioms in 2020 amid a coronavirus pandemic.

Like most sectors, the publishing industry had to adjust to countrywide lockdowns, forcing them to shift processes online.

“I also had Filipino poems that I wanted illustrated but that too didn’t happen,” Ms. Siy, who manages a publishing house, said via Zoom.

Canceled book fairs and industry events, nationwide lockdowns and global supply chain issues hit both the local and international publishing industry, forcing some of them to shift online.

Bookshops, publishers and printing presses were shuttered despite soaring book sales, while governments have largely neglected the publishing and creative sectors by failing to provide financial support, according to the International Publishers Association (IPA).

“While the long-term impacts of the pandemic are still unknowable, there is a real risk that many companies may not survive to see the consequences,” it said in a 2020 report. “Those that do will have to adapt to accelerating digitization trends that may outlive the pandemic and fundamentally transform our industry.”

In the Philippines, registered book sales jumped by 72% to P3.35 billion at the height of the coronavirus pandemic in 2020 from a year earlier, according to the National Book Development Board (NBDB). Sales further increased to 3.74 billion last year.

The Department of Education (DepEd) was the biggest institutional customer, having bought P1.86 billion worth of textbooks and instructional materials in 2020, it said in a report.

Registration automation and streamlining, online sales and digitalization, a more efficient distribution network, subsidies and grants also led to the revenue jump, NBDB Executive Director Charisse Aquino-Tugade said in an e-mail.

During the pandemic, the Educational Publishers Association partnered with the Book Development Association of the Philippines and online marketplaces Shopee and Lazada to host Aklatan, the biggest book fair in the country. Twenty-six participating publishers sold 28,000 books, generating $120,000 in revenue, the IPA said.

Ms. Tugade cited the wide gap between imported and exported books in the Philippines at 24:1 in favor of the former. “The pandemic has basically almost devastated the industry,” she separately said in a Zoom interview. “A lot of the procurement and institutional buying in the Philippines is through the DepEd.”

The book publishing industry contributed P4.74 billion to the Philippine economy in 2019, or less than 1% of economic output.

In 2020, the local publishing industry recorded 6,500 registrations for new book titles, compared with 6,666 in 2019 and 7,474 in 2018. Book registrations started increasing again last year to 9,497, Ms. Tugade said. During the pandemic, self-published authors also rose, she added.

ONLINE SHIFT
The pandemic has forced some publishers to embrace digitization, and it has paid off.

Local book publisher Bookshelf PH started operating in early 2020, just before most areas in the Philippines were locked down to contain the coronavirus.

“The pandemic and new normal shifted more of our processes online,” Monette Quiogue, head of operations at Bookshelf PH, said in an e-mail. “Instead of conducting face-to-face interviews with subjects and resource persons, we instead switched to remote interviewing. In addition to physical books, we also focused increasingly on distributing e-books and audiobooks.”

“Because we target a specific niche — Filipino nonfiction books telling very Filipino stories — we felt we were able to provide content that people were looking for,” she added.

The company has published books on the success stories of Filipinas, a history of blockchain in the Philippines and online business development. It has published more than 50 titles of physical books, e-books and audiobooks.

“We will continue to develop titles that feature the talent, knowledge and skills of Filipinos in various fields and show how they can educate and inspire readers,” Ms. Quiogue said. “That has been our objective from the start and we will continue to do so.”

Another publisher that managed to thrive online during the lockdown was comics publisher Komiket. Launched in 2015, it started as an affordable comics art market for first-time comics creators, artists and readers. A year later, it registered as a nonprofit group with the Securities and Exchange Commission.

In 2019, Komiket built its Secret HQ bookstore in Poblacion, Makati before selling Filipino comics nationwide. During the pandemic, it continued to publish original comics and graphic novels in English. The company also started an international comics festival online.

“We saw that as an opportunity,” Komiket President and Co-Founder Paolo Alessandro Herras said in an interview. “As the community grew, we needed to increase our readership. We put up the Philippine International Comics Festival, and we became more active as a publisher.”

Komiket shortlists comic pitches annually to develop, publish and distribute these in its bookstore. “It gave us time to pause and focus on what we really wanted to do as an organization,” Mr. Herras said.

Komiket has published five titles including Tarantadong Kalbo Vol. 1 featuring comics by artist Kevin Eric Raymundo, which was released in 2020.

“If you look at their cultural behavior, Filipinos don’t want to pay for anything digital or online,” he said. “But that doesn’t mean that going online is useless. It has its use in terms of promotion and building your audience.”

“If the readers love the work, they will buy the book. That’s a path that works for some, but not for all. There are many ways to build your creators’ path,” he added.

As part of its pandemic recovery plan, the NBDB streamlined its registration by allowing applicants to submit documents online. There were 1,989 registrants — 359 companies and 1,630 people — last year, compared with 513 in 2020 and 690 in 2019. Registration allows the agency to track sales and the performance of publishers, authors and graphic designers, Ms. Tugade said.

The agency has a P100-million budget this year, which she said is not enough. “We need P400 million next year to help the industry survive.”

Aside from supporting the millions of authors, illustrators, printers, distributors and booksellers globally, publishing has also helped educate people, spread scientific research especially during the pandemic and open new worlds millions of people.

But the coronavirus has exposed vulnerabilities in the sector, the IPA said. “With disruptions at every link in the supply chain, fixed routes to market and sudden lockdowns have left countless books collecting dust in warehouses, bookshops and libraries.”

Some publishers failed to shift online, which left them sinking when the pandemic shut off all sales channels except e-commerce.

“For publishers of all sizes, this crisis has been a brusque wake-up call to the need to find new, innovative routes to market and adopt diversified, durable business models,” it said. “Now is the time to benefit from the cohesion built in adversity to craft a recovery strategy that enables the global publishing industry to rally stronger, more resilient and more adaptable.”

Ms. Siy, the author and publisher, finished an unplanned project online during the pandemic. In April 2020, she joined an online writing contest on Filipino flash fiction, where one of her 39 entries won.

Later that year, she added 11 Filipino flash fiction stories and tapped senior high school multimedia art students at iACADEMY for the illustrations. The book titled COVIDagli was published by Balangay Books last year.

“Some projects didn’t materialize, but there were also pleasant surprises,” she said.

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