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South Korea in national mourning after deadly Halloween crush

POLICE OFFICERS walk at the scene where many people died and were injured in a stampede during a Halloween festival in Seoul, South Korea, Oct. 30, 2022. — REUTERS

SEOUL — South Korea’s President Yoon Suk-yeol declared a period of national mourning on Sunday after a Halloween crush killed some 151 people in a packed nightlife area in Seoul.

Yoon expressed condolences to the victims, mostly teenagers and people in their 20s, and his wishes for a speedy recovery to the many injured.

“This is truly tragic,” he said in a statement. “A tragedy and disaster that should not have happened took place in the heart of Seoul last night.”

A huge crowd celebrating in the popular Itaewon district surged into an alley on Saturday night, emergency officials said, adding the death toll could rise.

Choi Sung-beom, head of the Yongsan Fire Station, said 151 deaths had been confirmed, including 19 foreigners. He told a briefing at the scene 82 people were injured, 19 of them seriously.

It was the first Halloween event in Seoul in three years after the country lifted coronavirus restrictions and social distancing. Many of the partygoers were wearing masks and Halloween costumes.

Early on Sunday costumes and personal belongings mingled with blood spots in the narrow street. Survivors huddled under emergency blankets amid throngs of emergency workers, police, and media.

Many of those killed were near a nightclub, Mr. Choi said. Many of the victims were women in their 20s, while the foreigners killed included people from China, Iran, Uzbekistan and Norway, he said.

Witnesses described the crowd becoming increasingly unruly and agitated as the evening deepened. Chaos erupted just before the 10:20 p.m. (1320 GMT) stampede, with police on hand for the event at times struggling to control the crowds, witnesses said.

Moon Ju-young, 21, said there were clear signs of trouble in the alley before the incident. He told Reuters it was more than 10 times as crowded as usual.

Social media footage showed hundreds of people packed in the narrow, sloped alley crushed and immobile as emergency officials and police tried to pull them free.

PACKED ALLEY ON SLOPE
Mr. Choi, the Yongsan district fire chief, said all the deaths were likely from the crush in the alley.

Fire officials and witnesses said people continued to pour into the alley after it was already packed wall-to-wall, when those at the top of the slope fell, sending people below them toppling over others.

One woman said her daughter, pulled from the crush of people, survived after being trapped for more than an hour.

A makeshift morgue was set up in a building next to the scene. About four dozen bodies were wheeled out on wheeled stretchers and moved to a government facility to identify the victims, according to a Reuters witness.

The Itaewon district is popular with young South Koreans and expatriates alike, its dozens of bars and restaurants packed on Saturday for Halloween after businesses had suffered a sharp decline over three years of the pandemic.

“You would see big crowds at Christmas and fireworks… but this was several ten-folds bigger than any of that,” Park Jung-hoon, 21, told Reuters from the scene.

US President Joseph R. Biden and first lady Jill Biden sent their condolences, writing: “We grieve with the people of the Republic of Korea and send our best wishes for a quick recovery to all those who were injured.”

British Prime Minister Rishi Sunak tweeted: “All our thoughts are with those currently responding and all South Koreans at this very distressing time.”

With the easing of the coronavirus pandemic, curfews on bars and restaurants and a limit of 10 people for private gatherings were lifted in April. An outdoor mask mandate was dropped in May.

President Yoon held an emergency meeting with senior aides and ordered a task force be set up to secure resources to treat the injured and launch a thorough investigation into the cause of the disaster.

The disaster is among the country’s deadliest since a 2014 ferry sinking that killed 304 people, mainly high school students.

The sinking of the Sewol, and criticism of the official response, sent shockwaves across South Korea, prompting widespread soul-searching over safety measures in the country that are likely to be renewed in the wake of Saturday’s crush. — Reuters

‘It ruined everything’: Buy-now, pay-later drives Gen Z into debt

JCOMP-FREEPIK

SARAH PFEFFERLE had already saved $16,000 for her future home by the time she was 18. Then she started using buy-now, pay-later products (BNPL) and “ruined everything.”

In just two months, the Chicago native racked up $5,000 in debt across three of the installment-loan firms. The ballooning balances, alongside unexpected medical costs, drained much of her savings and prompted her to seek help from a financial adviser. But the damage was done: Ms. Pfefferle’s credit score dropped to 580 from 720 after she closed her accounts.

Ms. Pfefferle, now 21, said her plan to buy a house has been set back at least two years. And she fears she won’t be able to get a mortgage.

“I have little to no money saved for emergencies,” she said. “It’s a vicious cycle.”

Ms. Pfefferle is hardly alone. Australian firm Afterpay Ltd. popularized the concept of buy now, pay later as a new spin on layaway plans with an instant-gratification twist. The financial products typically let consumers pay for purchases in four installments with the promise of little to no fees, no interest and quick credit approvals.

That enticed young consumers with little credit history, who saw BNPL as an alternative to credit cards for the TikTok generation. The pioneering firms, including  Afterpay, Klarna Bank AB and Affirm Holdings, Inc., launched with hip clothing retailers, struck brand deals with social media influencers and quickly became ubiquitous on apps and online checkouts. They make most of their money by charging merchants a fee each time a consumer uses the product at checkout.

The short-term loans surged in popularity during the pandemic thanks to consumers who were flush with extra cash and limited to shopping online. Five major BNPL companies originated 180 million loans totaling $24.2 billion in 2021, a near tenfold increase from 2019, according to a report from the Consumer Financial Protection Bureau (CFPB).

The promise of interest-free payments made BNPL products particularly attractive to credit card-wary Gen Z, who in many cases grew up watching loved ones struggle during the financial crisis. However, BNPL is “only free when you follow all the rules,” said Ed Mierzwinski, a senior director of the US Public Interest Research Group.

The BNPL firms have been plagued by delinquency this year as inflation bites. The CFPB found that younger borrowers are more likely to have loans in “derogatory status,” meaning they’re either in default or sent to a third-party debt collector. Roughly 11% of borrowers paid at least one late fee in 2021, an increase from the prior year. And 18% of consumers aged 18 to 29 fell behind on payments in 2021, according to a US Federal Reserve report.

These days, young TikTok users joke about dodging payments or accruing balances they can’t pay off.

“The marketing here is counting on a younger, perhaps less financially sophisticated spender because they haven’t been in the financial marketplace as long,” Mr. Mierzwinski said.

In e-mailed statements, Afterpay — now owned by digital payments company Block, Inc. — Klarna and Affirm all said they provide more consumer safeguards than credit cards and emphasized that they don’t charge interest and either don’t charge late fees or cap them.

NEW TO MONEY
For Gabrielle, who asked that her last name be withheld, it didn’t feel like she was spending money because her BNPL payments weren’t due for weeks. And the more she spent, the more credit she got. More than a year later, the 19-year-old was left with a heap of new clothes, makeup and $3,500 in debt with balances across several BNPL apps — a common borrower practice called “loan stacking,” which the CFPB cited as a risk to consumers.

She was eventually able to pay off her balances in April after seeking help on a Reddit forum where many users said BNPL apps fueled their shopping addictions.

A poll for the Financial Technology Association found 40% of BNPL users borrowed from multiple providers. And nearly a third reported spending “more than they would have if BNPL hadn’t been available,” according to the Financial Health Network.

For some, falling behind on BNPL payments could have long-lasting consequences.

Briana Gordley, 24, said she didn’t understand the hidden pitfalls of BNPL when she first encountered an Afterpay ad at the clothing retailer Forever 21 in 2016. Paying her own way through college and rejected by credit card providers, the then-freshman believed the financial offering was a safe way to pay for things she couldn’t afford with her part-time job.

Just 18 months later, the Texas native had spent $1,500 across three platforms, and three of her loans had been sent to collections. She was forced to turn to her parents for help. And even then, it took her two years to finally build a savings account and start paying down her student loans.

While Ms. Gordley’s late payments didn’t impact her credit score, that may not be the case for borrowers in the future. Major credit bureaus like Equifax, Inc. and Experian Plc have said they’ll start including BNPL purchases on consumers’ credit reports, although not all lenders are reporting data to them yet. Loans sent to debt collectors can also be reported, which can hurt consumers’ credit scores.

Ms. Gordley told the Senate Banking Committee in September that BNPL targets younger borrowers who are just learning how to manage their own finances, and said the products verge on being “predatory” without strong disclosures and consumer protections.

“I understand and believe in personal accountability and responsibility for the choices I made,” Ms. Gordley said during a listening session hosted by the committee. “But accountability and responsibility should be a two-way street between consumers and businesses.” — Bloomberg

Liz Truss’ phone was hacked by suspected Putin agents — report

Liz Truss arrives at the Conservative Party headquarters, after being announced as Britain’s next Prime Minister, in London, Britain, Sept. 5. — REUTERS

LONDON — Former British Prime Minister Liz Truss’ personal phone was hacked by suspected agents working for Russian President Vladimir Putin when she was foreign minister, the Daily Mail reported on Saturday.

Those agents gained access to “top-secret details” of negotiations with international allies in addition to private messages exchanged with Truss’s close friend Kwasi Kwarteng, who later became finance minister, the report said.

The messages are believed to have included discussions with senior international foreign ministers about the war in Ukraine, including details about arms shipments, it added.

Up to a year’s worth of messages were downloaded, the Mail said, citing unnamed sources.

A British government spokesperson declined to comment on “individuals’ security arrangements”.

“The Government has robust systems in place to protect against cyber threats. That includes regular security briefings for Ministers, and advice on protecting their personal data and mitigating cyber threats,” the spokesperson added.

The hack was discovered during the Conservative Party leadership campaign that led to Truss becoming prime minister, the Mail reported.

Truss left office last week as prime minister and was succeeded by Rishi Sunak.

The Mail said the messages that fell into foreign hands included criticisms of Johnson made by Truss and Kwarteng, “leading to a potential risk of blackmail.” — Reuters

Hate speech, online extremism fueled Pelosi attack, terror experts believe

PAUL FRANCIS PELOSI

WASHINGTON — The frequent targeting of US House Speaker Nancy Pelosi by online extremists and political opponents likely contributed to the violent attack on her husband Paul, terrorism and extremism experts said.

The intruder at the Pelosis’ home yelled “Where’s Nancy?” before assaulting Paul Pelosi with a hammer, according to a person briefed on the incident. An internet user with the same name as the man arrested at the scene, David Depape, expressed support for former President Donald Trump and embraced the cult-like conspiracy theory QAnon in online posts that referenced “satanic pedophilia.”

Police have yet to comment on a motive in the attack.

But terrorism and extremism experts believe it could be an example of the growing threat of so-called stochastic terrorism, in which sometimes unstable individuals are inspired to violence by hate speech and scenarios they see online and hear echoed by public figures.

“This was clearly a targeted attack. The purpose was to locate and potentially harm the speaker of the house,” said John Cohen, a former counterterrorism coordinator and head of intelligence at the Department of Homeland Security, who is currently working with state and local law enforcement across the country on the issue.

“This is a continuation of a trend that we have been experiencing over the past several years. It is a threat dynamic that has law enforcement extraordinarily concerned.”

Ms. Pelosi has been demonized online and in public by both far right and far left-leaning political websites and figures. Graphics depicting her being beheaded, and a call to send immigrants to her home, with her address, circulated online this summer, according to Site Intelligence Group, which researches online extremism.

Rita Katz, executive director of Site, said the Speaker was a hate figure for much of the political right, and is the “face of the Democratic establishment and, as such, at the center of many QAnon-adjacent conspiracy theories.”

Those theories and people who espouse them are sometimes promoted by more mainstream public figures, amplifying the threats, experts say.

“While the intent may be to mobilize one’s political base or generate ratings it also adds to the volatility of the threat environment,” said Mr. Cohen.

Individual attackers, sometimes known as “lone wolves” frequently combine personal with political grievances and are reinforced and radicalized by things they read online, the Department of Justice’s research arm The National Institute of Justice reports.

Attacks on political figures, places of worship and races or ethnicities have occurred in the United States for decades, but law enforcement professionals say the current environment is particularly dangerous.

“Today’s radical extremism threat has this powerful digital component that can really accelerate recruitment and activate violence across a broader threat landscape,” Aisha Qureshi, a social science analyst at the National Institute, said in an agency podcast before the Pelosi attack.

“Just the sheer volume and speed of misinformation spread through social media really exacerbates this problem,” she said.

Threats against political leaders are rising in the United States. Cases related to “concerning statements and threats” against members of Congress jumped from 3,939 in 2017 to 9,625 in 2021, according to the US Capitol Police.

“Look at the FBI attack in Ohio,” said Todd Helmus, a senior behavioral scientist at security research firm Rand Corp., referring to an August incident when an armed man tried to break into the Cincinnati FBI headquarters.

Mr. Helmus linked that incident to rhetoric surrounding the FBI’s removal of classified documents from Trump’s Florida estate. Site said the Pelosi attack was being celebrated online by far-right supporters.

“We’re just waiting for more of these things to occur,” said Mr. Helmus. — Reuters

Traveler fined, refused entry to Australia for ‘significant’ biosecurity breach

STOCK PHOTO | Image from Pixabay

SYDNEY — An international traveler has been fined and refused entry to Australia after trying to bring meat into the country in what the government said on Sunday was a “significant breach” of biosecurity laws to protect Australia from foot and mouth disease.

Australia earlier this year stepped up protection against foot and mouth disease at its international airports following an outbreak in Indonesia.

In a statement, Agriculture Minister Murray Watt and Home Affairs Minister Clare O’Neil said the traveler had been fined $2,664 and blocked from entering Australia after attempting to bring 6 kilograms of meat products into the country.

“Australian biosecurity officers uncovered the undeclared meat during a baggage inspection at Perth Airport (on) Oct. 18,” the ministers said.

The traveler failed to declare 3.1 kg of duck, 1.4 kg of beef rendang, over 500 grams of frozen beef and nearly 900 grams of chicken concealed in his luggage, they said.

Ms. O’Neil said the traveler was referred to Australian Border Force officers, who canceled the man’s visa.

“This is why legislation is in place to cancel the visa of any traveller who commits a significant biosecurity breach or repeatedly contravenes biosecurity laws,” she said.

Foot and mouth disease is highly transmissible and causes lesions and lameness in cattle, sheep, goats and other cloven-hoofed animals, but does not affect humans.

The government has estimated a large outbreak in Australia could see revenue losses of up to $A51.8 billion ($33.2 billion) over 10 years.

In Indonesia, authorities have been working to get an outbreak under control that has infected hundreds of thousands of livestock and killed thousands of animals. — Reuters

Scanning the health legislative agenda

FREEPIK

I have worked on health policy for more than a decade, but I have never seen health given so much importance by ordinary Filipinos until recently. COVID-19 has made our society and politics more aware of public health. Everyone suddenly has become interested in vaccines, the Department of Health (DoH), and all types of health news.

While we have succeeded in making many important health laws in the past including the game-changing Universal Health Care Act, our lawmakers and the Executive are now keen on introducing health legislation that will address many weaknesses in our health system’s response to the pandemic.

Despite not having appointed a Health Secretary, the President in his very first state-of-the-nation address (SONA) mentioned as priority the passage of three important health measures, namely: the Vaccine Institute, Medical Reserves Corps, and the Center for Disease Control and Prevention. This October, the Legislative-Executive Development Advisory Council (LEDAC) affirmed the SONA’s legislative health agenda and included the bill on the Magna Carta for Barangay Health Workers.

Some of these proposals had already been tackled in the previous 18th Congress. The bills on the Virology Institute and the Center for Disease Control and Prevention were in fact passed on third reading at the House of Representatives, but the lack of time prevented their legislation.

For the 19th Congress, many legislators have filed or refiled the bills.

First on the list is the creation of the Virology Institute. The goal is to boost our vaccine capacity by making vaccine development its primary function. It will be established under the Department of Science and Technology and will cover therapeutic research, aside from vaccine development.

When the COVID-19 vaccines were introduced, we experienced serious supply problems. To have access to vaccines, we were literally at the mercy of vaccine-producing countries. We now realize the need to build our own vaccine development capacity.

Second is the creation of the Center for Disease Control and Prevention or CDC. Some countries like the US have a functioning CDC, which has played a leading role in fighting the pandemic. The CDC sets the tone for the adoption of US health policies in response to the pandemic. This is what the Philippines wants to emulate.

While some functions of the CDC are already performed by several bureaus under the DoH and other government agencies, the pandemic response was bogged down by a lack of coordination and the differing or contradicting positions taken by officials from different government bodies.

The hope is that the creation of a CDC will address the coordination problems by lodging into one organization all relevant and important offices. This organizational coordination will deal with a real time response to COVID-19 and other emerging diseases.

However, it is an imperative that the bill creating the CDC avoid redundancy of organizations and functions. It should also result in an institution with a voice strong enough for the Chief Executive to base the country’s health interventions and policy directions.

Third is the establishment of a Medical Reserves Corps. The aim of the bill is to have a reserve medical workforce that will be called upon in times of health emergencies. This considers the need for quick and agile deployment of human resources when necessary. Our policymakers and politicians have seen how difficult it has been for our health frontliners to work overtime, do double duty, or perform straight shifts. The situation was much worse in the early pandemic period when hospitals were always at full capacity.

The supply of health human resources has been a perennial problem. According to the World Health Organization’s global health workforce statistics of 2017, the Philippines only has 0.6 doctor per 1,000 population. We also emphasize that geographically isolated and disadvantaged areas (GIDA) have very limited health human resources.

While the objective of having a reserve is good, the bigger challenge that we need to address is how to ensure a sufficient supply of health human resources.

Lastly, on the Magna Carta for Barangay Health Workers (BHW), we do recognize the significant role played by our BHWs especially during the COVID-19 pandemic. Such recognition must translate into giving commensurate benefits to them and having their ranks professionalized (instead of being politicized).

By providing them with ample training and setting qualifications, our health system will be able to establish primary care teams and networks that are the first point of contact in the delivery of basic health care services in the communities.

This will not only help address the insufficient supply of health workers in the delivery of basic health services, but will also allow better health monitoring, given the trust created by the personal link of the patients and the BHWs.

To conclude, these health priority measures for legislation, once passed into law, will aid and complement the Universal Health Care Act, and will better prepare and equip our health system in dealing with catastrophic illness or health emergencies.

 

Paula Mae Tanquieng, a lawyer by profession, provides legal guidance to Action for Economic Reforms in pursuit of legislative reforms on health.

Offshore wind puts the Philippines on the road to energy independence

CARL RAW-UNSPLASH

OFFSHORE WIND is emerging as a possible “win-win” for the Philippines in its pursuit of energy independence. The country’s success will depend on clear regulations, strong incentives, early investments in grid capacity, and the political will to make it all happen.

Offshore wind can meet growing energy needs, while protecting our land.

With its lush and beautiful nature, both above and below the sea, the Philippines is balancing the development and environmental agendas. And like all nations, it faces the imperative to transition to cleaner sources of energy while protecting its precious, and limited, land resources.

Land scarcity is a problem, and offshore wind is one of the solutions. Food vs Energy vs Environment is a false choice — The Philippines can achieve greater security on all through good political craftsmanship.

When you combine increasing food security concerns with the growing demand for clean energy, it’s natural to explore ways of producing energy offshore, rather than on land. Offshore wind in Asia, Europe, and North America has reached 60 gigawatts (GW) to date, and another 315 GW is anticipated to be added to the global energy mix by 2031.*

Offshore wind is poised to be an abundant energy source in the Philippines, with potential for up to 178 GW according to the World Bank. It’s been identified as a viable energy solution that allows this country to protect its scarce land resources, boost local employment, and stimulate industrial growth.

Size matters in the offshore wind game.

To get to this point, the World Bank suggests the Philippines needs a government-sanctioned roadmap, supporting a minimum of 15 GW of operational capacity by 2035, 30 GW by 2040, and 50 GW by 2050. This level of government commitment will give offshore wind players the long-term assurance they need to make the necessary investments. It will also help the National Grid Corporation of the Philippines (NGCP) plan its own development, as the grid remains a critical limiting factor to expanding renewables.

By the end of the 2nd quarter of 2022, the Philippines Department of Energy (DoE) has awarded over 22 GW of service contracts for offshore wind. This is a good start, but a lot of work remains to secure a position as more than just a minor contributor in the larger offshore wind ecosystem. The Philippines is home to strong players in the energy industry, and the country must continue to partner with global leaders to successfully navigate the energy transition. By scaling offshore wind along the shores, the Philippines has the potential to create a national cluster that benefits both the local economy and national development.

We have a window of opportunity to build a thriving offshore wind industry.

If we look at mature offshore wind markets today, they deliver competitively priced energy with zero direct emissions. This did not happen by accident. Every thriving market for offshore wind has always started with a certain level of government support. It begins with a clear and agreed upon roadmap towards a defined target that in turn drives the regulatory agenda. Well-crafted regulation gives the assurance needed to encourage investment.

To attract capital and secure the development of a domestic renewables industry, offshore wind will require a form of feed-in tariff in the initial phase. The larger the scale and the greater the visibility on the regulation side, the lower the tariff can be. However, there is no way around the fact that the first movers will require incentives from government to develop the industry. Thanks to the government support, the offshore wind power costs have fallen dramatically in recent years in the UK. In the latest auction, prices dropped 5.8%, and is a quarter of the current spot price.

Developing the domestic offshore wind industry will require upgrades of not only the national grid, but also the country’s ports, domestic shipping capabilities, sea-traffic management and much more — all with a keen eye to protect the rich and beautiful underwater environment surrounding the Philippines. In addition to Department of Energy and Department of Environment and Natural Resources, the Maritime Industry Authority and the Philippine Coast Guard should also be involved.

Support from the local government is also crucial to the success of offshore wind. From a regulatory and political perspective, they are an essential enabler in ensuring everything is in place to succeed. National, provincial, and municipal governments must work together to harmonize regulations.

With the build-out of offshore wind comes the need to take care of the aquatic life around the infrastructure. It requires research and mapping of the biodiversity and the migratory routes for aquatic life and birds. This enables the offshore developers to deliver the projects in a responsible and sustainable manner.

When it comes to the local fisheries in the Philippines, we see some clear advantages connected to offshore wind. While the construction period for the offshore structures may reduce catch levels temporarily, the large number of structures installed act as artificial reefs and can help boost biomass generation in the project areas.

The potential is enormous, but time is of the essence.

The Philippines is a country rich in offshore wind resources. It has a strong maritime legacy. It is home to highly capable local industries. And it’s a country that has long welcomed global partners to help it progress. These factors combined make the Philippines the ideal setting for a thriving offshore wind sector, and the country is well-positioned to extract significant value from this energy resource.

Offshore wind has the potential to put the Philippines on the road to energy independence. We see that a crucial enabler for offshore wind success in the Philippines will be finding the right partners who understand and respect Filipino culture, history, and legacy. The future offshore wind sites will become important infrastructure for the country’s future, and its development must be done in a way that is respectful and profitable for all.

*Global Wind Energy Council, annual report 2021

 

Torbjørn Kirkeby-Garstad is the General Manager Southeast Asia, Scatec. Scatec has a joint venture with Aboitiz Power: SN Aboitiz, and is aiming to develop 2.4 GW of offshore wind in the Philippines over the coming years.

What the new ‘Saudi First’ policy means for oil and power

GRAYSTUDIOPRO1-FREEPIK

PRINCE Abdulaziz bin Salman has had enough. The Saudi Energy Minister, object of vitriolic criticism in Washington since he led the OPEC+ cartel into an oil output cut this month, said he keeps hearing: “Are you with us, or against us?” But the kingdom isn’t choosing sides, he told Wall Street’s good and great last week in Riyadh. “Is there any room for ‘We are for Saudi Arabia and for the people of Saudi Arabia?’”

If putting his country first was impolite, Prince Abdulaziz — son of King Salman, half-brother of Crown Prince Mohammed bin Salman — warned he would have no choice but to be rude. “I’m pro-Saudi,” he said.

It’s been the reigning message at the kingdom’s annual Future Investment Initiative conference last week — and one that matters for everyone else as oil hovers close to the $100-a-barrel barrier.

In conversations with senior members of the Saudi royal family, officials and local business people, it’s clear that Riyadh is embarking on what I would call a “Saudi First” energy, economic and foreign policy agenda. It’s a shift several years in the making, which will have consequences for the rest of the world, chiefly via oil prices, but also when it comes to shaping Middle East diplomacy and the fight against climate change.

The signs have been around for a while. Earlier this year, Prince Mohammed, who runs the day-to-day affairs of the kingdom, said he didn’t mind whether US President Joseph R. Biden understood his approach. “It’s up to him to think about the interest of America,” he told The Atlantic. Left unsaid: MBS, as Prince Mohammed is known, was concentrating on the Saudis’ interest.

What I heard last week in Riyadh is the manifestation of that thinking: a bolder, determined and ambitious kingdom, still allied with America, but at the same time unshackled from the almost 80-year-old relationship. It’s a nation now more focused on Asia and its top oil clients — China, India, Japan, and South Korea. Together, the four countries account for 65% of all Saudi oil exports.

Amid a turbulent world, shaped by the Russian invasion of Ukraine and the highest inflation in 40 years in America and the United Kingdom, the kingdom has emerged as one of the few economic and political winners. Saudi economic growth is the strongest inside the Group of 20 (G20) major economies and the country is flush with cash.

Even after the recently announced OPEC+ output cut, Saudi oil production will set the highest ever annual average at roughly 10.7 million barrels a day in 2022. On year-to-date oil prices and output, its gross annual petroleum revenues are set to rise to almost $400 billion, just a fraction below the peak set in 2008 when oil prices rose to an all-time high.

And yet, away from the Ritz Carlton hotel, where the annual “Davos in the Desert” conference took place, and the moneyed districts of Riyadh such as Al Olaya where bankers stay, Saudi Arabia is a relatively poor nation. Its GDP per capita stood at $23,500 in 2021, well behind the $45,000 of the United Arab Emirates and the $68,000 of Qatar. With the country’s population growing by about 600,000 people every year (projected to reach 36.2 million in 2022), Riyadh has to run hard to stay still.

And that’s a key reason behind “Saudi First.” A banker, with decades of experience in the country, summed it up to me this way: “They just need the money, really need it — and that means high oil prices.”

In the past, Riyadh was willing to accept lower oil prices, boosting production — or delaying cuts — for the benefit of Washington. Not anymore. With the economic outlook uncertain, it would rather err on the side of supplying too little rather than too much. If it is going to make a mistake, let that result in higher, rather than lower, oil prices. Mohammed al-Jadaan, the Saudi finance minister, told me Riyadh was simply doing what others inside the G20 were — looking after themselves.

“Look at the Federal Reserve: The Fed is increasing the rates, it’s impacting everybody else, but we understand this is a domestic issue, they need to deal with inflation,” he said.

Saudi officials are at pains to say they don’t have a particular price target. But from their actions it’s clear Riyadh wants to keep Brent crude as close to $100 a barrel as it can. Many diplomats here see $80 a barrel as an unofficial floor. And if aiming for higher prices helps Russia, which is in need of cash to bankroll the invasion of Ukraine, that’s just a byproduct of the policy. Put differently, Riyadh believes the OPEC+ cut is about business, not politics.

But Riyadh also no longer believes that its oil-for-security bargain with Washington is working as it once was. For decades, Riyadh kept oil prices under relative control and purchased American weapons. In return, Washington provided regional security, deploying its military might if needed, and diplomatic support, largely ignoring human rights abuses. Now the kingdom wants a far more aggressive stance against Iran and its regional proxies, including in Yemen, and it is flummoxed by how Washington has seemingly turned a blind eye to the black market on Iranian crude, allowing Tehran to cash in on high oil prices.

The alliance, Saudi officials and local business people say, is unbalanced: If Washington wants Riyadh to keep oil prices down, it will have to deliver the other side of the bargain, most likely putting pressure on Iran. But the kingdom is increasingly likely to ask for bigger favors in return. As with America First under Donald Trump, Saudi First is transactional.

Such a turn has significant consequences for global economies: Oil prices are likely to remain higher for longer, fueling inflation. For equity and bond investors in fossil fuel companies, it’s a sign the boom times may continue. For everyone else, it’s a starker picture.

And further in the background is a profound disagreement about how to manage the energy transition and the fight against climate change. The Saudis believe the world is putting too much focus on restricting fossil fuel supply and discouraging investment while demand is still growing. It’s an approach, perhaps, fit for the US and Europe, but not for the emerging world.

“We’re looking at it from a Western point of view and the rest of the world needs to adapt,” said Amin Nasser, the chief executive of state-owned oil giant Saudi Aramco. “No, it doesn’t work like that.”

It’s a sign of what’s to come. Be prepared to hear “no” from the Saudis much more often.

BLOOMBERG OPINION

Puregold shines the spotlight on Filipino ‘winners’ and their success stories through “Nasa Iyo ang Panalo”

Puregold’s “Nasa Iyo ang Panalo” features the success story of Justin de Dios, sub-vocalist and creative lead of Filipino boy group SB19.

Puregold rings in its twenty-fifth year in the retail industry with one important goal: to highlight life ‘Panalo Stories’ of its customers—Filipinos across the country.

Puregold begins by telling the tales of triumph of six sought-after personalities in the fields of entertainment, music, and sports. The supermarket retail chain announced its partnership with these endorsers through a campaign called “Nasa Iyo ang Panalo”. Featuring videos that reveal the journeys these individuals took to get to where they are right now, it singularly conveys an important message: that all Filipinos can win in life, too.

Vincent Co, President of Puregold Price Club, Inc., says, “Our success would not have been possible without our customers, who have been with us all these years. As we look forward to our 25th year, we aim to show our appreciation through inspiring Panalo Stories, in the hope that Filipinos will see how success is possible for them as well.”

Puregold’s “Nasa Iyo ang Panalo” tells the story of Justin de Dios, popularly known as “Justin,” the sub-vocalist and creative lead of Filipino boy band SB19. A singer, rapper, and actor, Justin once doubted that he could achieve recognition for his musical talent, but with sheer determination, he has become a shining star in Philippine Pop.

“May panahong walang gustong makinig sa’kin; mga panahong gusto ko nang sumuko. Pero hindi ako nagpatalo,” he shares in his Puregold video, which has already garnered 3.9 million views to date, a testament to how many people listen to and believe in him now.

A beautiful face with stellar talent, as we have seen in the many teleseryes that she has starred in, Francine Diaz reveals a life that was filled with struggle. In her “Nasa Iyo ang Panalo” video, she gives us a glimpse of how much she has been through. “May mga iniyakan, pero mas marami akong nilabanan. Ang pagpursigi ko, walang cut, dahil alam kong nasa akin ang panalo.”

With her family as Francine’s inspiration, the young breadwinner worked hard to become who she is today—a gifted actress with fans who adore her, as well as projects and endorsements lined up for her to take.

Also featured in Puregold’s “Nasa Iyo ang Panalo” is celebrity couple Luis Manzano and Jessy Mendiola, both big names in the local entertainment industry even before their paths crossed.

In their video, the soon-to-be first-time parents profess how their love is their biggest victory, and how their partnership has led them to believe that they will win every battle they may face. “Hindi mo kailangang maging mag-isa,” the couple discloses. “May kasama kang sasalubong sa kahit anong ibigay ng tadhana.”

Conquering Tiktok, arguably the most popular social media platform of this generation, influencer, actress, and “Reyna Batangueña of the Tiktokverse” Queenay Mercado, also has a success story to share.

Now with over 12 million followers on Tiktok, Queenay, through her videos, took pride in her beginnings, which catapulted her into virality. Still, Queenay remains true to her roots. As she says in her “Nasa Iyo ang Panalo” video, “Isang maliit na boses mula sa malayo . . . ipinagmalaki ko at ipinarating sa buong bansa, at sa ibang parte ng mundo.”

With another inspiring tale of hard work and perseverance, pole vaulter and record-holder EJ Obiena completes the six successful individuals featured in “Nasa Iyo ang Panalo”.

 

EJ’s grit and determination led him to his status as the highly esteemed athlete he is today. He continues to compete and bring success not just to himself, but also to the Philippines. He says in his video, “Sugod lang hanggang tuktok, dahil kahit anong mangyari, alam kong nasa akin ang panalo.”

Puregold customers and followers of its digital channels can watch for more Panalo Stories from these personalities, and from ordinary Filipinos, as the retailer celebrates its 25th year.

As Vincent affirms, “Puregold is honored to have this opportunity to encourage Filipinos to take hold of their destinies and begin their journeys towards their greatest aspirations. We hope that ‘Nasa Iyo ang Panalo’ communicates a very clear message: ‘Success— Panalo is in each and every one of us’.”

For more updates, like @puregold.shopping on Facebook, follow @puregold_ph on Instagram and Twitter, and subscribe to Puregold Channel on YouTube.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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FIRST IN MANILA: A 3D Whale Shark billboard, Space Tunnel, Golden Gateway and Dazzling Light shows—all immersive experiences lead to SM

Mega Space Odyssey (left photo) and 3D Whale Shark (right photo), SM Megamall

LOOK: A 3D Whale Shark Billboard, Space Tunnel, Golden Gateway and Dazzling Light shows take over the Holidays in Manila.

SM Supermalls celebrates not just joyful, but also fun, immersive and experiential holidays. This year, we take you to the deep oceans with SM Megamall’s first-ever 3D Whale Shark LED billboard, see the Northern lights at the Aurora Trail of SM City North Edsa, Sparkle at the Light show and Holiday fireworks at SM Mall of Asia, enter the Golden gateway of SM Aura Premier and explore the outer space at the Mega Space Odyssey.

NORTH EDSA’S AURORA TRAIL

Aurora Walk, SM North Edsa

The illuminating lights of the Aurora Borealis is at the North this Christmas. Walk and indulge in a family friendly immersive experience at the Aurora trail ascending the giant holiday tree with a magical array of lights, forestry, rein-bears & holiday polar express.

MEGA SPACE ODYSSEY & 3D WHALE SHARK

Travel to majestic galaxies in outer space and take photos and videos with your space explorer friends. Experience the first-ever immersive 3D LED tunnel in Manila on October 21 to December 25 at the ground level Mega Fashion Hall (at the back of the Giant Christmas Tree).

SM Supermalls introduces the new 3D technology along EDSA by screening a hyper-realistic 3D Whale Shark at SM Megamall’s LED billboard. Bringing you the first in the Philippines, High-Definition Immersive content at the heart of the bustling metropolis. Netizens are awestruck of a larger-than-life Whale Shark peeking out of a digital billboard spanning over 2,000 square foot. The Mega Whale Shark was first teased on April 27 but customers, tourists and motorists can catch the short preview every 15 minutes starting April 28 at peak hours from 12nn to 10pm daily. Watch out for the new 3D content this Christmas. The Philippines has the 2nd largest population of whale shark in the world at over 1,950.

MOA SPARKLE OF LIGHT SHOW AND HOLIDAY FIREWORKS

Sparkle of Light Show, Mall of Asia

Feel the Christmas spirit as you watch the brightest and merriest indoor Christmas tree music and lights show. Be in awe as you watch over one hundred thousand lights set to music. Catch the show DAILY, every hour from 10am to 10pm until end of December at the Central Atrium.

Holiday Fireworks, Mall of Asia

Enjoy the most awaited and better than ever fireworks display at the MOA Complex every Friday and Saturday from November to December 2022. Make sure to experience this magical moment with your families and loved ones.

AURA’s GOLDEN GATEWAY and NIGHTS OF DAZZLING LIGHTS

Golden Gateway, SM Aura Premier

Tucked behind the giant Christmas tree is a golden gemstone-shaped immersive experience. In partnership with global smartphone brand TECNO Mobile, technology and art meet to transport all who enter this enclosure into scenes of an opulent holiday palace and fantastical golden worlds. Simply present PHP 1,000 in single or collected receipts and enter a whole new world filled with glitz and glamour.

The theatrical room isn’t the only technological experience the mall has. Equally spectacular is a choreographed light and sound display at SM Aura Premier’s Skypark at Level 5. Visitors of the Skypark enter a space with tall tree-like sculptures made of strings of lights. As they go through a forest of lights, a jaw-dropping musical show will entrance and excite them. Visitors can stop and enjoy the choreographed audio and visual performance at 7pm on all Sunday nights of December, including December 25th itself.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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SEA suffers from digitalization skills gap, cybersecurity still top concern — IDC

UNSPLASH

Digitalization in Southeast Asia (SEA) is hampered by a shortage of talent and a skills gap, according to a market intelligence provider for technology vendors and investors.

“Just because we have automation doesn’t mean you don’t invest in talent,” said James Sivalingam, senior program manager at International Data Corporation (IDC) Asia/Pacific, at a cybersecurity webinar on Oct. 27. “Talent is ultimately your critical differentiator.”  

While talent shortage is a global problem, it is “more pronounced” in SEA, he added.

“A lot of deals are closed based on the kind of analysts and consultants you bring to the table,” he added. “This is probably the most expensive investment you make in the company.” 

He advised creating a consistent learning platform and providing a career pathway for employees.

In 2021, investments in cybersecurity (services, software, and appliance) for SEA organizations reached $3.2 billion. This figure is expected to increase at a five-year compound annual growth rate (CAGR) of 13.6% to reach $6.1 billion by 2026. 

Organizations want more control of the technology that runs their operations and now prefer local or national vendors because of digital sovereignty concerns, Mr. Sivalingam said. They have also moved away from implementing controls for compliance’s sake and are looking to manage security holistically. 

According to IDC Asia/Pacific’s Security Sourcing Survey 2022, organizations believe that the top three cyberthreats they are most vulnerable to are data loss and privacy, the cloud environment, and network security. This, Mr. Sivalingam noted, correlates with the top three areas of security spending in 2022: information and data security, network security, and cloud security operations. 

To become the preferred security provider among clients, Mr. Sivalingam told vendors to nurture their thought leaders by providing guidance and sharing expertise; templatize their workflows to help speed up the time to onboard new technologies and applications; showcase their human talent and make them the face of the company; and contextualize marketing campaigns to the end-user. 

“A lot of vendors miss this,” he said, on the fourth point. “Sometimes it’s not contextualized to SEA, or to the size of the business they’re going for. … Not everyone understands technical language.” — Patricia B. Mirasol

 

IMF cuts Asia’s economic forecasts as China’s slowdown bites

TOKYO — The International Monetary Fund (IMF) cut Asia’s economic forecasts on Friday as global monetary tightening, rising inflation blamed on the war in Ukraine, and China’s sharp slowdown dampened the region’s recovery prospects.

While inflation in Asia remains subdued compared with other regions, most central banks must continue raising interest rates to ensure inflation expectations do not become de-anchored, the IMF said in its Asia-Pacific regional economic outlook report.

“Asia’s strong economic rebound early this year is losing momentum, with a weaker-than expected second quarter,” said Krishna Srinivasan, director of the IMF’s Asia and Pacific Department.

“Further tightening of monetary policy will be required to ensure that inflation returns to target and inflation expectations remain well anchored.”

The IMF cut Asia’s growth forecast to 4.0% this year and 4.3% next year, down 0.9% point and 0.8 point from April, respectively. The slowdown follows a 6.5% expansion in 2021.

“As the effects of the pandemic wane, the region faces new headwinds from global financial tightening and an expected slowdown of external demand,” the report said.

Among the biggest headwinds is China’s rapid and broad-based economic slowdown blamed on strict coronavirus disease 2019 (COVID-19) lockdowns and its worsening property woes, the IMF said.

“With a growing number of property developers defaulting on their debt over the past year, the sector’s access to market financing has become increasingly challenging,” the report said.

“Risks to the banking system from the real estate sector are rising because of substantial exposure.”

The IMF expects China’s growth to slow to 3.2% this year, a 1.2-point downgrade from its April projection, after an 8.1% rise in 2021. The world’s second-largest economy is seen growing 4.4% next year and 4.5% in 2024, the IMF said.

While it expects China to gradually lift strict COVID-19 curbs next year, the IMF does not see a speedy resolution to Beijing’s real estate crisis, which it said needed to be addressed in a comprehensive way to support growth.

“One would hope that with the party congress behind us, there would be further attention being paid to policy response to these,” Mr. Srinivasan said.

“But we don’t see a quick resolution of the real estate sector (crisis) because that could take longer,” he added

As Asian emerging economies are forced to raise rates to avoid rapid capital outflows, a “judicious” use of foreign exchange intervention could help ease the burden on monetary policy in some countries, the IMF said.

“This tool could be particularly useful among Asia’s shallower foreign exchange markets” like the Philippines, or where currency mismatches on bank or corporate balance sheets heighten exchange-rate volatility risks such as in Indonesia, the IMF said.

“Foreign exchange intervention should be temporary to avoid side effects from sustained use, which may include increased risk-taking in the private sector,” it said. — Reuters

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