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Ayala Corp. creates logistics unit

AYALA Corp. said on Thursday that the Securities and Exchange Commission (SEC) has given the go signal to create a unit dedicated to the logistics sector.

In a disclosure to the exchange, the company said the SEC has approved the articles of incorporation and bylaws of AC Logistics Holdings Corp. on Sept. 6.

“AC Logistics will serve as Ayala’s vehicle for investments in the logistics sector,” the company said. 

BusinessWorld reached out to Ayala Corp. to ask for more details about AC Logistics, however, representatives for the company said no further details can be provided at the moment.

In 2018, Ayala Corp. via infrastructure unit AC Infrastructure Holdings, Inc. invested P1 billion for a joint venture with Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg. The two launched Entrego Fulfillment Solutions, Inc., which offers delivery management of parcels, documents, and bulk deliveries of business-to-business clients and business-to-consumer units.

Meanwhile, listed AyalaLand Logistics Holdings Corp. (ALLHC) is a subsidiary of the conglomerate’s Ayala Land, Inc. ALLHC focuses on services related to real estate logistics and facilities.

On Thursday, shares of Ayala Corp. at the stock exchange went up by 0.37% or P3.00 to close at P818.00 each. — Keren Concepcion G. Valmonte

Banks fined P859M from 2018 to 2020

Benjamin E. Diokno, Bangko Sentral ng Pilipinas Governor — BLOOMBERG

THE CENTRAL BANK slapped fines worth P859 million on financial institutions from 2018 to 2020, with noncompliance with mandated credit quotas among the top violations, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Thursday.

“Top violations include noncompliance with BSP issuances on mandatory credit and other BSP regulatory requirements,” Mr. Diokno said in an online briefing.

Of the P859 million in penalties, P7.2 million were imposed on directors, trustees, officers or employees of BSP-supervised financial institutions, he said.

In the first quarter, banks lent P765.92 billion to the agriculture and agrarian reform sectors, equivalent to only 10.59% of their loanable funds. This was below the 25% mandated under Republic Act 10000 or the Agri-Agra Reform Credit Act of 2009, of which 10% must go to the agrarian reform sector and 15% to the agriculture sector.

Meanwhile, lenders extended credit worth P448.458 billion to micro-, small-, and medium-sized enterprises (MSMEs) in the same period, which was just 5.24% of their total loan portfolio. This was below the 10% mandated by the Republic Act 6977 or the Magna Carta for MSMEs, under which banks should allocate 8% of their loan book for micro and small enterprises and 2% for medium-sized enterprises.

The central bank said financial institutions and their officials can explain their side and submit supporting evidence to contest fines imposed on them.

“Violation of laws, rules, and regulations result in safety and soundness concerns and are rooted in issues in corporate governance, oversight and management or of the BSP-supervised financial institutions,” Mr. Diokno said.

“Sound governance practices promote the stability of the Philippine banking system,” he added.

The BSP in August also released updated guidelines on fines for banks’ transactional violations of lenders aligned with the provisions of Republic Act 11211 or The New Central Bank Act, as amended.

BSP Director for Financial Supervision Department IX Dindo R. Santos said a heavier penalty regime for banks for their implementation of anti-money laundering (AML) measures could help the country exit the “gray list” of the Financial Action Task Force (FATF).

“The system is aimed to change the behavior so that the BSP-supervised financial institutions and the directors and officers can run the bank in a prudent manner,” Mr. Santos said in the same briefing.

“This will [help us] achieve in terms of compliance with AML standards and the requirement, this will help us in exiting the list,” he added.

In June, the country was included in the FATF’s gray list or jurisdictions under increased monitoring for their implementation of tighter anti-money laundering and counter-terrorism financing rules.

Mr. Diokno, who is also the Anti-Money Laundering Council’s chairman, said they expect the country to exit the gray list by January 2023. — LWTN

Disney movie musical Frozen comes to London West End

LONDON — Hit Disney animation Frozen has come to the London stage, officially opening as a West End musical on Wednesday in a theater newly restored by composer Andrew Lloyd Webber.

The Oscar-winning film about royal sisters Anna and Elsa in the fictional kingdom of Arendelle has won over legions of young fans around the world since its 2013 release. A stage adaptation opened on Broadway in 2018. Now London has its own version of the musical, starring British actress Samantha Barks as Elsa and Dublin-born actress Stephanie McKeon as Anna.

The musical, which began previews in late August, is showing at the Theatre Royal Drury Lane, which recently reopened after a two-year, 60 million-pound ($82.51 million) restoration. West End veteran Lloyd Webber, known for musicals such as Evita, Cats, and The Phantom of the Opera, bought the theater in 2019. — Reuters

Female Coursera registrants drop to 47% in 2020

PHILSTAR

ONLINE TRAINING service Coursera said the share of female first-time registrants to its courses fell to 47% in 2020 from 54% in each of the preceding two years, possibly reflecting women’s outsized share of household duties and childcare, including the supervision of children studying at home.

Betty Vandenbosch, Coursera, Inc. chief content officer, said in a virtual interview that the findings reported by Coursera make the Philippines an outlier.

“That’s different than most of the rest of the world and I have to assume that has to do with the way COVID happened, the way that people had to deal with COVID in the very early days. It may be that in the Philippines, childcare was different,” she said Wednesday.

“The Philippines already has many more women learners than men, and that is very different. Lots and lots of women are on our platform. But I do think that dip had to do with the roles that women had to take during COVID.”

Southeast Asian neighbors Malaysia and Singapore both saw the share of women among new registered learners increase in 2020, Coursera said.

The Philippine share has since bounced back to 56% in the 12 months to June 2021. The growth rate for women registered for online classes was 774%.

“Many countries, particularly emerging economies, have seen a dramatic increase in online learning participation among women year over year,” according to the report.

The Philippines has higher shares of women represented among business, government, and campus learners than the global average, Coursera found.

Female learners in the Philippines are taking classes in business, probability and statistics, data analysis, and computer programming.

Ms. Vandenbosch noted that women learners in the Philippines tend to take more entry-level certificates compared to their counterparts in Singapore and Malaysia.

“Women in the Philippines are really embracing new careers,” she said. — Jenina P. Ibañez

SEC gives firms more time to submit contact details

THE Securities and Exchange Commission (SEC) is extending the deadline for the submission of the required contact details of entities under its jurisdiction to November, in an effort “to bolster the economic recovery of the business sector during the pandemic.”

“The SEC has extended the deadline for corporations, partnerships, and individuals under the jurisdiction and supervision of the commission to comply with SEC Memorandum Circular No. 28, series of 2020, without penalty, until Nov. 11, 2021,” the regulator said in a notice dated Sept. 8.

Those who fail to file forms or notices by the new deadline will be subjected to a penalty fee worth P10,000.

The memorandum requires persons and entities under the commission’s supervision to have an official e-mail account address and official cellphone number, as well as back-up or alternate contact details, for its transactions with the commission.

These should be under the control of the entity’s corporate secretary or an authorized representative.

Submission of forms or notices of the memorandum may be sent via MC28_S2020@sec.gov.ph. On the notice published online, the SEC also provided contact details of local offices. — Keren Concepcion G. Valmonte

BSP advises public to check banknotes’ genuineness

BW FILE PHOTO

THE CENTRAL BANK advised the public to check their banknotes amid reports of circulating counterfeit P1,000 bills.

The Bangko Sentral ng Pilipinas (BSP) in a statement on Thursday enjoined the public to scrutinize the security features of their banknotes to ensure their genuineness, noting it is verifying reports on social media platforms about alleged counterfeit P1,000 bills.

It noted that the New Generation Currency banknotes are equipped with the latest anti-counterfeiting technology and “improve the visual and tactile differentiation of each denomination”.

“To ascertain the genuineness of the NGC banknotes, the public is advised to use the Feel-Look-Tilt method to check the security features,” the BSP said.

The central bank last year unveiled the enhanced NGC bills that have different engraved horizontal bands for each denomination.

Besides other security features, the P500 and the P1,000 bills also have a roller bar effect on their value panels, which makes counterfeiting more difficult.

Under Republic Act No. 10951, counterfeiters of Philippine currency could face imprisonment of at least 12 years and one day and a fine not exceeding P2 million.

“From January to June 2021, the BSP led five successful law enforcement operations that resulted in the arrest of 14 individuals and the filing of nine separate criminal charges,” the BSP said.

“The BSP also regularly conducts public information campaigns to educate the public on the design, security features, and proper handling of Philippine currency as well as relevant laws, policies, and programs,” it added.

France mourns ‘national treasure’ Belmondo, New Wave cinema star

PARIS — Jean-Paul Belmondo, a star of France’s New Wave cinema after his breakthrough performance in Jean-Luc Godard’s A bout de souffle (Breathless) in 1959, has died. He was 88.

The death of a leading figure in French cinema was felt across the country. President Emmanuel Macron tweeted that France had lost a “national treasure.”

“It seems to me that all of France is sad,” Michel Godest, Mr. Belmondo’s friend and lawyer, told BFM TV, breaking down in tears.

A charismatic actor who often performed his own stunts, Mr. Belmondo switched in the 1960s to mainstream films and became one of France’s leading comedy and action heroes.

His decision to pursue a career in commercial cinema and to shun the art houses led to criticism that he had wasted his undisputed talent — something he always denied.

“When an actor is successful, people turn their back on him and say that he has taken the easy way out, that he doesn’t want to make an effort or take any risks,” Mr. Belmondo once said.

“But if it was so easy to fill cinemas, then the film world would be in much better health than it is. I don’t think I would have stayed in the limelight for so long if I was doing any old rubbish. People aren’t that stupid.”

Mr. Godest told AFP that Belmondo passed away at home, adding: “He had been very tired for some time. He died peacefully.”

Mr. Belmondo was born on April 9, 1933, in Neuilly-sur-Seine, the son of the renowned sculptor Paul Belmondo and painter Sarah Rainaud-Richard. Despite his cultured background, he appeared more drawn to the world of sport than the arts and was a keen boxer in his youth.

Once he had discovered acting, it took three attempts before the Paris Conservatory agreed in 1952 to take him on as a student. Even then it was not a smooth passage, and Mr. Belmondo quit in a huff in 1956 after receiving a cool reception for one of his performances from a conservatory jury.

He went on to star in more than 80 movies, many of them blockbusters, over the next half a century. — Reuters

Australia agriculture labor crisis deepens as state and international borders shut

WITH MORE than half of Australia’s population currently in lockdown due to outbreaks of the Delta COVID-19 strain, tight rules on movement and state border closures are posing serious challenges for the A$66-billion ($49 billion) agriculture industry for the second year in a row.

Already facing a labor shortage due to border closures to international visitors, further restrictions on inter-state travel will obstruct the flow of contract workers who follow the summer harvest cycle, which is due to start in Queensland before progressing down to Victoria. Industry groups fear that the challenges could derail what is tipped to be another stellar crop this season, with Australia expected to produce 54.8 million tons of winter grains, about a third above the 10-year average to 2020-21.

“A disaster situation will occur if the limited number of harvest workers are stopped from moving back and forth across the border,” National Farmers’ Federation Chief Executive Tony Mahar said in an August statement.

Australia has long relied on foreign laborers in its agriculture industry to compensate for its shrinking and aging workforce. The federal government has attempted to plug labor gaps over the course of the pandemic by organizing chartered planes to fly workers from Pacific island nations in pilot programs, but the numbers are nowhere near the level needed to fill the estimated monthly shortfall of up to 24,000 this summer, according to Ernst & Young LLP.

Canberra said last month it would start offering agricultural visas to overseas workers over the next three years, but with little information on which partner countries are involved and how the program will work with the current caps on international arrivals it may not be enough to address the immediate shortages.

The government has also attempted to attract backpackers, who must complete at least three months of agricultural work for a two-year working-holiday stay, with the offer of a visa extension on the completion of a longer farm stint. Still, the number of those workers has plunged from 160,000 pre-pandemic to less than 40,000, leaving some crops unsown or left to rot last season.

“Last year, people were planning a long way ahead to procure people to employ, and it was tight,” said Michael Whitehead, head of agribusiness research at ANZ Banking Group Ltd. This year, the unpredictability of the Delta strain has made it more challenging to do so, he said. The grain, fruit and meat processing sectors would all be affected by the logistical difficulties, he added.

While producers can apply for special permission to cross between some states, the national farming industry group in its statement chided cumbersome bureaucracy and called the situation “state-ism gone mad.” Some workers have said that they were turned away at borders despite being in possession of agricultural permits.

The Western Australian government last week spiked a plan to parachute in foreign laborers to assist with the wheat harvest, nixing any hope of relief as the state has doubled down on its hard border stance that bars entry to workers from the rest of the country.

In addition to labor issues, the border rules also make access to heavy-machinery operators more “challenging,” Agriculture Minister David Littleproud said Tuesday. Some farmers rely on sharing essential equipment with producers in other states with the southward progression of the harvest. — Bloomberg

Shopee takes ‘zero-tolerance’ for banned items 

By Angelica Y. YangReporter 

SHOPEE Philippines said that it does not tolerate the sale of prohibited items and products flagged by the Food and Drug Administration (FDA), adding that it complies with local regulations in markets, amid reports of mercury-containing medical devices on the e-commerce platform. 

“Shopee takes a strict zero-tolerance approach to the sale of prohibited and FDA-warned items on our platform… All listings on Shopee must go through a series of screenings. Any listings not cleared due to regulatory issues or other violations of our terms of use will be removed,” Shopee told BusinessWorld in a statement on Viber late on Wednesday. 

“We comply with local regulations in every market where we operate and require our sellers to be compliant with both local regulations and our own stringent policies,” it added. 

Toxics watchdog EcoWaste Coalition previously pointed out that four e-commerce platforms, including Shopee, hosted “numerous ads” which sold mercury devices through third-party dealers based in the Philippines and China. 

A day before the 9.9 sale, Shopee, MyBenta.com, Carousell and Lazada showed a total of 15 product listings for mercury sphygmomanometers, which measure blood pressure, the group said. Meanwhile, Lazada and Shopee had seven listings for mercury thermometers. 

EcoWaste Coalition, which described mercury as a “highly toxic” chemical, said it was “deeply concerned” since the online sale of mercurial sphygmomanometers and thermometers went against the phaseout provisions for these devices under a Department of Health (DoH) Administrative Order issued in 2008, and the Minamata Convention on Mercury, of which the Philippines is a signatory. 

The DoH order, signed by Health Secretary Francisco T. Duque III, ordered all hospitals to immediately discontinue the distribution of mercury thermometers, and follow guidelines for the gradual phasing-out of mercury in healthcare facilities. 

The Minamata Convention on Mercury classified mercury-containing sphygmomanometers and thermometers among the non-electronic devices whose manufacture and trade were phased-out in 2020. 

After EcoWaste Coalition released its statement, Shopee took down nine product listings with mercury-containing devices. 

“We also take proactive measures to blacklist any related keywords to intercept new attempts to sell such items on our platform. When, in isolated cases, some listings have still managed to evade these screening processes, immediate action is taken,” Shopee said. 

In a separate statement on Thursday, MyBenta.com told BusinessWorld that it had already taken down the “products in question.” 

“We continue to work with environmental groups to ensure that our platform is free of toxic products,” MyBenta.com said in an e-mail. It cited, for instance, that it removed harmful mining products when EcoWaste Coalition brought them to its attention. 

Earlier this year, e-commerce platforms held a dialogue with government agencies that gave them a list of brand and products deemed harmful to ramp up screening measures, according to MyBenta.com. 

“When removing dangerous products on our site, we rely on reports and lists of harmful chemicals available on [government] website,” it added. 

Meanwhile, Carousell said on Thursday that it had taken down the product listings which EcoWaste Coalition pointed out. 

“In accordance with FDA’s latest edict on the banning of mercury-containing medical devices, listings of mercury-containing medical devices are strictly prohibited on Carousell. Carousell has proactively and swiftly removed any such listings from its marketplace,” it told BusinessWorld in an e-mail. 

It added that it monitors its marketplace through “manual and automated” means, and works closely with authorities and partners, including EcoWaste Coalition, to keep its users safe from harmful products. 

Lazada has yet to reply to follow-up questions regarding the inclusion of mercury-containing medical devices in its online shopping channel. As of press time, the nine product listings flagged by EcoWaste Coalition are still up on its platform. 

Malaysia holds rate as vaccine spurs reopening

MALAYSIA kept its benchmark interest rate at a record low Thursday, maintaining support for an economy that’s set to fully reopen in a matter of months.

Bank Negara Malaysia held the overnight policy rate at 1.75% for a seventh straight meeting, a decision expected by 23 of 24 economists surveyed by Bloomberg. One forecast a 25-basis-point cut.

“Moving forward, the further easing of containment measures, rapid progress of the domestic vaccination program and continued expansion in global demand will support the growth momentum going into 2022,” the bank said in a statement announcing the decision. While the bank’s economic view remained cautious, language on the outlook was improved slightly, from “subject to significant downside risks” in July’s decision to “tilted to the downside” on Thursday.

The ringgit was little changed after the decision at 4.1505 to the dollar. Yields on 10-year government bonds were steady at 3.24%.

“The rate hold decision continues to signal a high bar for the BNM to cut rate, even if it has left the options open still,” said Wellian Wiranto, economist at Oversea-Chinese Banking Corp. in Singapore. “Unless the domestic plan reopening plan comes asunder and the global demand slows down perceptibly, BNM will most likely stay the course from here.”

VACCINE ROLLOUT
Malaysia’s swift vaccine rollout has allowed the government to ease virus curbs state by state and announce perks for the inoculated, even as infection numbers remain elevated. More than half of the population had been fully vaccinated as of Wednesday, paving the way for the government to reach its target of reopening all economic and social sectors by the final quarter of the year.

To be sure, risks remain. Confirmed cases are set to breach the 2 million mark by next week, adding pressure to hospitals already running low on beds for Covid-19 patients. The distribution of vaccines has favored the economic powerhouses of Kuala Lumpur and Selangor, with most other states trailing. And the government’s limited fiscal space could hinder its ability to support the economy if the national recovery plan goes off track. — Bloomberg

The Wire actor Williams remembered for his compassion

NEW YORK — Michael K. Williams, best known for playing shotgun toting drug dealer Omar Little in the HBO crime drama The Wire, was remembered by his colleagues as an actor with a special talent for humanizing the characters he portrayed, bringing his own experience as a Black man growing in New York to his roles.

Mr. Williams, who also won praise for his roles in Boardwalk Empire, Bessie, and Lovecraft Country, was found dead in his Brooklyn apartment on Monday, the New York Police Department said. He was 54. An investigation into the cause of death is underway.

“The depth of my love for this brother can only be matched by the depth of my pain learning of his loss,” Wendell Pierce, who played Detective Bunk Moreland in The Wire, wrote in a Twitter thread. Mr. Williams had “the ability to give voice to the human condition portraying the lives of those whose humanity is seldom elevated until he sings their truth,” Mr. Pierce said.

The Wire was a TV series set in Baltimore that tells the story of the narcotics trade through the perspective of criminals, police, and the people caught up between them. Critics praised Mr. Williams for his portrayal of Little, a homosexual drug dealer at war with his rivals. Mr. Williams was transparent about his own bouts with drug addiction, telling NPR in 2016 that he brought his personal experiences to the character.

After The Wire ended in 2008, Mr. Williams was cast as powerful African-American gangster Chalky White in Boardwalk Empire, an HBO series set in Atlantic City, New Jersey during the Prohibition era of the 1920s.

During his career, Mr. Williams earned Emmy nominations for performances in HBO’s Bessie, The Night Of, and Lovecraft Country, in addition to a nod for his role in the 2019 Netflix series When They See Us.

When They See Us tells the real-life story of five teenagers falsely accused of a brutal attack on a female jogger in New York’s Central Park. The so-called Central Park Five were eventually exonerated after spending years in prison.

The creator of the series, Ava DuVernay, and actors Niecy Nash and Jharrel Jerome also memorialized Mr. Williams on Instagram. “I remember you sending me a picture of yourself as a young man and sharing with me that the boys whose story we were telling were a reflection of you — and we were going to get it right,” Ms. DuVernay said. — Reuters

Words that make managers look bad to workers

PCH.VECTOR-FREEPIK

I’m a newly-promoted manager tasked to supervise a group of workers of various backgrounds, experience, seniority, and educational attainment. What do I need to be successful? — Gray Zone.

Start by being kind to people and they will reciprocate. Kindness begets kindness. If not, recalibrate in due time.

You can’t go wrong with kindness. People are basically good. Therefore, treat everyone with kindness unless they show signs they don’t deserve it. This means you can’t assume that every worker is lazy and uncooperative. You need to take the time to listen carefully.

Kindness is a good rule of thumb for managing every employee. It helps you prevent a lot of misunderstandings and gets the best out of people. Of course, there are exceptions. Some people intend to get away with anything they can. If that happens, adjust your style without delay.

BAD EXPRESSIONS
More important, you must be conscious of your own style and be watchful of words that come out of your mouth. This way you get to understand that people react negatively to things that you may have uttered without thinking through the implications. On the top of my list are some depraved expressions you should avoid:

One, “It is a management prerogative.” Many managers in their attempt to short-circuit a “debate” are tempted to hide behind management prerogative. Unless you’re in labor court, don’t use this argument to shut out people. Instead, be patient and explain the rationale for a certain policy.

Two, “That’s not a management problem.” Sure, there are many things that can’t be your concern. But why can’t management do something or at least exert a little effort to make the lives of the workers better? If workers are having difficulty commuting and come in late, would it be possible to assign them to a location nearer their home?

Three, “Come up to my level first before questioning it.” This is too harsh. If you can’t explain it clearly to the workers, then don’t resort to insult. It’s unprofessional, to say the least. It’s also important to understand that when you resort to insult and being disrespectful, it only shows the workers how your position has become shaky and weak.

Four, “I don’t have time to teach you everything.” It’s like saying you’re not interested in their career growth. It will come across as a lack of generosity in sharing what you know. How will you get the best from your workers if you don’t have time to coach them?

Five, “We’ve always done it this way.” This is a killer phrase that turns people off. Who would want to do a good job if you’re always defending the status quo?  What will happen if you ask them for their ideas? Nothing; you’ll be surrounded by people who have no energy to talk.

Six, “It’s confidential.” If it’s confidential, then the drama ends. But first, you must be able to convey the reason behind why information is confidential. Don’t be remiss in saying that certain information is limited to certain persons, no matter how painful it may sound.

Seven, “Don’t bring your personal problems here.” Why not? If people seek your advice about their family problems, don’t hesitate to help. Make an effort to listen to their stories and find out how you can alleviate the situation without resorting to money, if money is requested. You ca n allow them to take time off, if that helps.

Last, “That person is lazy.” Even if it’s true, there is no point to spreading such malicious claims. You don’t know how it might ruin the work relationship if the person in question finds out. The correct approach is to talk directly to the person and not to third parties. Just as important, how would colleagues feel if they’re aware that you talk maliciously behind someone’s back?

DIPLOMACY
Your basic job as a manager is to help everyone reach their full potential so they can do an excellent job, which benefits you, the department, and the whole organization. If everyone sees you as the best boss, it will be easier to work with them regardless of their current situation.

It’s best to be diplomatic with your words and your body language. Many people are sensitive. It’s best to be patient and help people develop. If they lack the necessary knowledge, attitude, skills, and habits, much more patience is called for. Understand people by recalling how you started as a newbie. Talk to people as if they’re family.

If they don’t reciprocate, take proper action, like forcing them to undergo a performance improvement plan, among others. If not, talk to them and find out how you can help them resolve their difficulties.

 

Have a consulting chat with Rey Elbo on Facebook, LinkedIn, or Twitter or you can send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting