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European official raises alarm about Russia flying Western-made airplanes

The European Union’s top aviation safety regulator said on Tuesday that he is “very worried” about the safety of Westernmade aircraft continuing to fly in Russia without access to spare parts and proper maintenance.

The European Union and the United States have moved to restrict Russia‘s access to spare parts following its invasion of Ukraine. Russia calls its actions in Ukraine a “special operation.”

“This is very unsafe,” Patrick Ky, executive director of the European Union Aviation Safety Agency (EASA), told reporters on the sidelines of a conference, adding regulators do not have good data on many of the planes flying in Russia or if any have experienced safety issues in recent months.

Mr. Ky said regulators should consider requests for exemptions from Russia “on a case by case basis, what would be the justification, why do you absolutely need to operate this type of aircraft.”

Mr. Ky added he was in favor of reviewing specific cases if it were needed “for humanitarian reasons … but then it should not become the norm.”

Mr. Ky said as time goes on the risks grow. “In six months – who knows? In one year – who knows?” He said there were reports Russia will be forced cannibalize airplanes to keep others operating.

In early March, Boeing Co BA.N and Airbus SE AIR.PA said they suspended the supply of spare parts to Russian carriers.

In April, the Federal Aviation Administration (FAA) downgraded its air safety rating for Russia, saying the country’s Federal Agency for Air Transport was not complying with International Civil Aviation Organization (ICAO) safety standards.

The United States in March banned Russian carriers from American airspace, joining the European Union and Canada.

The US Commerce Department in March added more than 150 Boeing airplanes operated by Russia airlines to a list of aircraft believed to violate U.S. export controls.

The planes were Russian passenger and cargo carriers including flag carrier Aeroflot, AirBridge Cargo, Utair, Nordwind, Azur Air and Aviastar-TU in a move that the department said would “effectively ground” the planes from traveling outside Russia.

The department said any refueling, maintenance, repair, or spare parts or services for those planes violates US export controls and subjects companies to U.S. enforcement actions that could include “substantial jail time, fines, loss of export privileges.”

Earlier this month, the department added 70 Russian entities to its trade blacklist including several aircraft factories. – Reuters

Biden touts grain silos on Ukraine border to help exports; Kyiv wants ports open

US President Joe Biden said on Tuesday that temporary silos would be built along the border with Ukraine in a bid to help export more grain and address a growing global food crisis.

Since the Russian invasion and blockade of Ukrainian Black Sea ports, grain shipments have stalled and more than 20 million tonnes are stuck in silos. Ukraine says it faces a shortage of silos for a new crop.

The war is stoking prices for grains, cooking oils, fuel and fertilizer.

Russia and Ukraine account for nearly a third of global wheat supplies. Ukraine is also a major exporter of corn and sunflower oil and Russia a key fertilizer exporter.

“I’m working closely with our European partners to get 20 million tons of grain locked in Ukraine out onto the market to help bring down food prices,” Mr. Biden told a Philadelphia union convention. “It can’t get out through the Black Sea because it’ll get blown out of the water.”

Since the war started, Ukraine and Russia have laid sea mines. Some 84 foreign ships are stuck in Ukrainian ports – many with grain cargoes onboard. Read full story

Mr. Biden said Washington was developing a plan to get grain out by rail, but noted Ukrainian track gauges were different from those in Europe, so the grain has to be transferred to different trains at the border.

“So we’re going to build silos, temporary silos, on the borders of Ukraine, including in Poland,” BMr. iden said.

Grain could be transferred from Ukrainian railway cars into the new silos, and then onto European freight cars to “get it out to the ocean and get it across the world,” he said, adding the plan was taking time.

“This is just one of the possibly useful steps in ensuring food security. But we also need a green corridor for our ports,” Andriy Yermak, chief of staff to Ukrainian President Volodymyr Zelenskiy, said in an online post.

Ukraine‘s agriculture ministry on Tuesday said European countries were considering providing temporary silos to “preserve the harvest and secure future grain supplies”. Read full story

Ukraine says the best way to get grain exports moving again is through Black Sea shipments. Read full story

UN Secretary-General Antonio Guterres is trying to broker what he calls a “package deal” to resume Ukrainian Black Sea exports and Russian food and fertilizer exports, which Moscow says had been hit by sanctions. The UN has so far described talks with Russia as “constructive.” – Reuters

Globe joins list of top 200 Asia-Pacific Climate Leaders

Leading digital solutions platform Globe has made it to the list of top 200 Climate Leaders in Asia Pacific based on a special report entitled “Asia-Pacific climate leaders: Which companies cut emissions?” developed by the Financial Times, Nikkei Asia, and Statista for making headway in reducing emissions intensity, coming from an evaluation of publicly disclosed data on greenhouse gas emissions and revenues reported from 2015-2020.

Globe is one of only two companies from the Philippines included in the report.

The joint initiative among the three organizations acknowledged 200 outstanding companies across the Asia Pacific region for their impressive environment, social and corporate governance (ESG) performance and continued dedication to reducing their carbon footprint.

Selection for the Climate Leaders Asia-Pacific 2022 list included months of intensive research, scrutiny of existing emissions data, public calls for participation, and direct contact with thousands of companies in the region.

According to their official release, “The survey takes account of so-called Scope 1 and Scope 2 emissions: those produced by the company itself, plus those produced in generating the energy it used. Scope 3 emissions, or indirect emissions arising in businesses’ supply chains, were excluded from the review.”

“We are happy to be recognized for our efforts in putting ESG as a priority in our organization. There’s still a lot to be done to help the country achieve its carbon reduction ambitions. We hope to serve as an example for other companies in the region to set their ambitions and work towards a net zero GHG goal,” said Yoly Crisanto, Chief Sustainability and Corporate Communications Officer at Globe.

Globe has initiated strategic initiatives to reduce its greenhouse gas emissions to net zero by 2050. It also became the first and only publicly listed company in the Philippines to commit to set science-based targets aligned to the 1.5 degrees pathway of the Paris Agreement. It has partnered with key industry experts to operationalize its climate action plans.

So far, it has deployed over 8,500 green network solutions such as fuel cell systems, direct current-hybrid generators, free cooling systems, and lithium-ion batteries that are more energy efficient and use cleaner fuel with lower emissions.

It has also shifted 14 key facilities to renewable energy and continues to buy renewable energy bundled with verified carbon offsets as part of the company’s decarbonization journey. The company looks to move more of its high-energy utilization facilities to renewable energy via Power Purchase Agreements (PPA) this year, in alignment with current provisions of government’s programs on RE.

Globe has also included sustainability as part of its sustainable power purchasing criteria. Furthermore, the company continues to engage business partners, vendors, suppliers, and customers to ensure that sustainable practices are adopted and promoted across the total value chain.

In managing its climate impact, the company is also into responsible waste management through e-waste recycling and nature-based solutions including virtual tree planting through the GForest game in the GCash app, reforestation, and mangrove conservation.

Last year, Globe formally joined the Task Force on Climate-Related Financial Disclosure (TCFD) as part of its commitment to mitigating the impact of climate change through a science-based, numbers-backed report. This will increase transparency on climate-related risks and opportunities within financial markets.

The company increased its CDP (formerly Carbon Disclosure Project) Rating to a B last year, following continuous efforts to reduce carbon emissions.

The digital solutions group’s efforts to reduce carbon emissions is part of its commitment to the United Nations Sustainable Development Goals, particularly UN SDG No. 13, which underscores the importance of climate action to save lives and livelihoods to address climate emergencies.

To see the full list of companies recognized by FT-Nikkei-Statista, view here: https://www.ft.com/reports/asia-pacific-climate-leaders.

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

 


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Virtual storefronts, messaging to act as bridge between businesses and metaverse

UNSPLASH

Virtual storefronts that allow customers to message businesses are essential to growth, according to global tech firm Meta.

“A lot of the features we have built are inspired by how businesses in Asia Pacific are using our platforms to find and connect with customers in a personal, timely, and relevant way,” said Ankur Prasad, global product marketing director for business messaging at Meta, at a virtual roundtable on June 14.  

These include Facebook and Instagram Live, which put small business owners and big brand names in the same playing field. 

Mr. Prasad explained that “seamless discovery and messaging experiences” are the goal. In the Asia Pacific, Meta found that 7 out of 10 people felt more connected to businesses they can message. 

“Southeast Asia in particular is a key region for Messenger. Many small businesses within the region set up and operate their businesses purely on Meta’s apps, whether it’s Facebook, Messenger, Instagram, and/or WhatsApp,” he said.

Ragde Falcis, co-founder and chief executive officer of multi-channel commerce platform ChatGenie.PH, added that messaging apps increase customer satisfaction, which, in turn, brings more growth and scaling opportunities. 

“And it’s all because they bring more convenience,” he said. 

Messaging, both panelists said, is a potential bridge to the metaverse, a virtual world widely regarded as the successor of the internet.  

For businesses to capitalize on virtual storefronts and messaging, internet connectivity will have to improve as the Philippines ranks 14th out of 22 Asian countries (and 53rd out of 100 countries globally) in the 2022 Internet Inclusivity Index commissioned by Meta. 

Despite infrastructure woes, Mr. Prasad maintained that the future remains bright for APAC: “Communication between people and businesses have evolved, and I’m sure it will continue to evolve.” — Brontë H. Lacsamana

Korean pop band BTS taking a break to work on solo projects

BTS danced its way through the United Nations — SCREENSHOT FROM YOUTUBE.COM/UNITEDNATIONS

BTS, the South Korean band that spearheaded a global K-pop craze, is taking a break as a group to work on solo projects, the singers announced on Tuesday.Band member RM, speaking at the annual FESTA dinner that celebrates the group’s founding, said he had been feeling a need to explore his own work without the constant recording and performing required of BTS.“The problem with K-pop and the whole idol system is that they don’t give you time to mature. You have to keep producing music and keep doing something,” said RM, seated at a table with his six fellow band members and speaking in Korean.A video of the dinner was posted on the band’s official Twitter handle.An English translation of the remarks showed one of the members calling the break a “hiatus,” a description a representative for the band disputed in a statement.“To be clear, they are not on hiatus but will take time to explore some solo projects at this time and remain active in various different formats,” the statement said.BTS made its debut in June 2013 and became a worldwide sensation with its upbeat hits and social campaigns aimed at empowering young people. The group released its new album, “Proof,” on Friday.Last year, BTS became the first Asian band to win artist of the year at the American Music Awards. The group met U.S. President Joe Biden at the White House in May to discuss hate crimes targeting Asians. — Reuters

 

Energizing winds blow at Okada Manila with new changes

Kazuo Okada delivers inspiring message during town hall meeting

A whiff of fresh air is blowing through Okada Manila, one of the biggest casino resort and hotel complexes within the Entertainment City. Tiger Resort Leisure and Entertainment, Inc. (TRLEI) was granted a license to operate a casino in 2007. The integrated resort formally opened to the public on March 31, 2017.

After a five-year hiatus, Kazuo Okada, its founding Chairman, is now back at the helm bringing a renewed vibrancy and excitement to this iconic integrated resort.

Fondly called “Daddy O,” Kazuo Okada addressed employees at a recent town hall after being back at the helm to bring a renewed vibrancy and excitement to the iconic integrated resort.

On June 6, Mr. Okada warmly addressed the Board of Directors and valued team members of Okada Manila during its first-ever Town Hall Meeting in five years. In his speech, Chairman Okada stated that he wants nothing more than for Okada Manila’s senior management to have greater interaction and an “at arm’s length” accessibility with his Board of Directors. He also emphasized that it is his fervent desire for all stakeholders to know that his Board of Directors is sincere in its pursuit to better serve the needs of its employees while at the same time elevating Okada Manila to greater heights of success.

Mr. Okada considers all employees as his Okada Manila family. He encouraged everyone to remain steadfast and unified in their commitment to the company as well as the esteemed guests they serve. He expressed his immense gratitude for their continued service and support throughout the transition, and was extremely pleased to let them know how much they are valued. Mr. Okada considers each single employee’s contribution to the company as being worthy of recognition.

Meanwhile, Okada Manila is pleased to announce — Business As Usual. Borders are opening up and international travel and tourism are primed for a comeback. Under the able leadership of Mr. Okada, whom employees fondly call “Daddy O,” Okada Manila is poised to seize the opportunity for business growth with enhanced services and exciting new attractions and promotions. Awarded the Forbes Five Star for two consecutive years, Okada Manila invites you to come and experience for yourself the distinctive brand of luxury, world-class amenities, as well as the hallmark Japanese hospitality — “Omotenashi.

 


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World Competitiveness Ranking 2022

THE PHILIPPINES climbed four spots in an annual global competitiveness report by Switzerland-based International Institute for Management Development (IMD), due to the economy’s improved performance. Read the full story.

 

PHL competitiveness ranking improves

Paper lanterns are displayed to form the Philippine flag at a mall in Manila, June 12. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINES climbed four spots in an annual global competitiveness report by Switzerland-based International Institute for Management Development (IMD), due to the economy’s improved performance.

IMD’s 2022 World Competitiveness Yearbook ranked the Philippines 48th out of 63 economies, from the 52nd spot out of 64 economies in 2021. This was the Philippines’ highest ranking in two years or since placing 45th in 2020.

However, the country continued to lag behind its neighbors, placing 13th among the 14 Asia-Pacific economies in the index for the fifth straight year.

IMD ranked each country’s competitiveness using 333 indicators grouped under four factors: economic performance, government efficiency, business efficiency, and infrastructure.

“The Philippines saw improvements in its Economic Performance, wherein the country currently ranks at 53rd, a jump from 57th in 2021,” the Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness said in a statement. The center has been the IMD’s Philippine partner institute in producing the competitiveness yearbook since 1997.

The country’s GDP expanded by 5.7% in 2021, as the economy gradually reopened after strict lockdowns. In the first quarter of 2022, GDP grew by 8.3%.

While infrastructure ranking rose two places to 57th spot, it is still the lowest among the competitiveness factors for the Philippines, particularly in terms of health and education infrastructure.

However, the Philippines slid to 48th in terms of government efficiency from 45th in 2021, due to the decline in public finance to 51st from 45th in 2021. This was mainly due to the deterioration of the budget deficit and outstanding debt as the government ramped up spending and borrowings to finance its coronavirus disease 2019 (COVID-19) pandemic response.

The budget deficit stood at P311.9 billion as of end-April, while outstanding debt rose to a record P12.76 trillion.

The Philippines also saw a drop in business efficiency, slipping to 39th from 37th last year, as productivity and efficiency declined six spots to 56th place. Overall productivity plunged to 57th place in this year’s ranking, from 10th in 2021, which IMD said reflected the negative impact of the COVID-19 pandemic.

IMD said the Philippines will continue to face challenges this year, such as implementing effective strategies to drive recovery from the pandemic while strengthening fiscal responsibility and reducing poverty.

The country also needs to promote “innovative governance” and ensure smooth post-election transition of power, as well as develop “future-ready” health and education systems. It also has to invest in sustainable infrastructure and reduce climate change vulnerability, the IMD said.

University of Asia and the Pacific (UA&P) Senior Economist Cid L. Terosa said in an e-mail interview with BusinessWorld that the country’s improved ranking sends a positive signal to potential investors. 

“The ranking of the Philippines improved because of its better economic performance and improved state of infrastructure. In particular, increasing real GDP growth, higher gross capital formation, evident macroeconomic stability, and greater employment creation propelled the Philippines to a higher ranking,” he said.

Foundation for Economic Freedom (FEF) President Calixto V. Chikiamco in a mobile phone message attributed the higher ranking to the government’s better handling of the pandemic, fiscal management, strong foreign exchange reserves, and the continuing attractiveness of its workforce.

European Chamber of Commerce of the Philippines (ECCP) President Lars Wittig said in a mobile phone message that businessmen keep a close eye on these international benchmarks since they provide “a snapshot of the economic health of the country which guide business and investment decisions.”

“The ECCP recognizes substantive benefits of the government’s recent milestones that will further drive global competitiveness and economic development. This includes the amendments to the Public Service Act (PSA), Foreign Investment Act (FIA) and Retail Trade Liberalization Act (RTLA) which will make the Philippines a more attractive destination for trade and investments,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the continued economic reopening increased business activity.

“The country’s improved ranking may have to do with the further reopening of the economy towards greater normalcy after some pockets of hard lockdowns and other restrictions last year. This increased economic/business activities in the country, allowed many businesses/industries to reopen again, operate at higher capacity, hire more workers, book more sales and income, thereby fundamentally leading to better economic recovery prospects,” Mr. Ricafort said.

According to UA&P’s Mr. Terosa, the incoming administration of President-elect Ferdinand “Bongbong” R. Marcos, Jr. can further boost the competitiveness ranking by addressing corruption, sustaining infrastructure development, lowering unemployment, stabilizing inflation, reducing poverty, among others.

Mr. Marcos is set to take his oath of office on June 30.

ECCP’s Mr. Wittig said that the incoming Marcos administration should build on the gains made by the previous administrations in order to improve the country’s competitiveness ranking.

“Building on the gains of the previous administrations is imperative to cushion socioeconomic shocks and advance recovery, coupled with the continued widespread deployment of the national vaccination program,” Mr. Wittig said. 

“More sustainability-related reforms, investments in human resources (education, nutrition, wellness) as well as institutional reforms on good governance and transparency should also be in the front and center of policy priorities to improve the country’s ranking moving forward,” he added.

MOST COMPETITIVE
Denmark topped the competitiveness index, followed by Switzerland, Singapore, Sweden and Hong Kong. The rest of the top 10 included the Netherlands, Taiwan, Finland, Norway, and the United States.

Singapore had the highest competitiveness ranking among the Asia-Pacific economies, followed by Hong Kong, Taiwan, China, and Australia.

Many economies are now feeling inflationary pressure, according to Christos Cabolis, IMD World Competitiveness Center chief economist.

“Other global challenges having an impact on the competitiveness of countries include variants of COVID-19 appearing under different intensity with respect to the number of infected people around the world; differing national policies to address COVID (the ‘zero-tolerance COVID’ policy versus the ‘moving on from COVID’ policy); and the invasion of Ukraine by Russia,” Mr. Cabolis said.

The countries covered by the 2022 World Competitiveness ranking were different from the 2021 report after Bahrain was included while Russia and Ukraine were excluded in this year’s report because of the ongoing war.

Cutting infrastructure spending will hurt economy’s recovery, DoF says

PHILIPPINE STAR/ MICHAEL VARCAS

THE GOVERNMENT should not reduce infrastructure spending as this may hurt the economy’s recovery, the Finance department said.

In an economic bulletin on Tuesday, Department of Finance (DoF) Chief Economist Gil S. Beltran said it is important to continue infrastructure investments “due to its positive impact on competitiveness and economic recovery.”

“Cutting infrastructure spending may narrow down the deficit momentarily but will definitely be counter-productive in the long-run as far as economic recovery is concerned,” Mr. Beltran said.

“Simply put, a half-finished bridge does not cut travel time even by a minute. Stopping construction works midway through the project cycle deprives the economy of the opportunity to immediately benefit from the catalytic effects of infrastructure investments.”

The budget deficit stood at P311.9 billion as of end-April, narrowing by 14.75% from a year ago as tax revenues reached P1 trillion, up 12% year on year. Expenditures, on the other hand, rose by 6.6% due to higher interest payments and allotments for local government units (LGUs).

In the first quarter, public infrastructure spending went up by 4% to P252.8 billion, despite the election ban on new projects. The government is planning to spend P1.27 trillion, equivalent to 5.9% of gross domestic product (GDP), on infrastructure this year.

The incoming Marcos administration has already signaled it will continue the Duterte administration’s infrastructure program.

Mr. Beltran said the medium-term fiscal program shows a declining trend in the deficit, “largely on account of expenditures rising more slowly than GDP but that infrastructure spending is not sacrificed.”

The Development Budget Coordination Committee (DBCC) lowered slightly the budget deficit target to 7.6% of GDP this year, from 7.7% previously, which reflects the impact of the Russia-Ukraine war, China’s slowdown, and monetary policy normalization in the United States.

The DBCC set the deficit goal at 6.1% of GDP for 2023, 5.1% for 2024, and 4.1% for 2025.

Infrastructure spending is projected at 5.4% of GDP for 2023 and 2024, and 5.3% of GDP for 2025.

Fiscal consolidation and recovery will be key in preserving fiscal stability, Mr. Beltran said.

“The planned fiscal consolidation rests on shoring up tax revenues, winding down pandemic-related spending, and cutting non-priority expenditures,” he said.

Finance Secretary Carlos G. Dominiguez III last month proposed a fiscal consolidation plan that involves imposing new tax measures, repealing some tax exemptions, and deferring  personal income tax reductions.

Mr. Dominguez has said the government cannot cover the existing debt incurred during the pandemic by borrowing more or reducing spending every year.

The National Government’s outstanding debt stood at a record-high P12.76 trillion at the end of April.

Mr. Beltran also said the devolution of functions to LGUs and reforms in the pension system of the military and uniformed personnel, is expected to ease the fiscal burden on the National Government.

“Resuming pre-pandemic economic growth rate calls for safely living with the virus and fast-tracking the recovery process. We already have an ongoing infrastructure program and have cut corporate income taxes in a bid to attract more investments,” Mr. Beltran said.

The DBCC set a 7-8% GDP growth target for 2022, as the economy continues to recover from the pandemic.

PHL seen to expand 6% this year

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINE economy is likely to expand by 6% this year, taking into account the headwinds that would likely affect growth, incoming Socioeconomic Planning Secretary Arsenio M. Balisacan said.

“[The] inflation that we are seeing is very much imported, and obviously, will temper our growth a bit. We were expecting growth at the beginning of the year to be around 7-8%, but many things have happened since then, and we are still confident that we’ll achieve 6% growth, and that already takes into account the problems in the global and domestic markets,” he said in a Bloomberg TV interview on Monday.

Last month, the Development Budget Coordination Committee (DBCC) lowered the gross domestic product (GDP) growth target to 7-8%, from 7-9% previously, reflecting the impact of the Russia-Ukraine war, the economic slowdown in China, and monetary policy tightening in the United States.

Inflation accelerated to 5.4% in May, the highest in three and a half years, as fuel and food prices continued to climb amid the ongoing Russia-Ukraine war and supply chain disruptions.

The DBCC also raised the average inflation rate assumption to 3.7-4.7% for 2022, from 2-4% previously.

“The goal is to rapidly ramp up our economic recovery while living with the uptick in prices,” Mr. Balisacan said.

“We’ll have to improve our capacity to address supply bottlenecks. We’ll need to work closely with our trading partners, and make sure we have access to food supply in particular, and basic inputs needed for manufacturing and other industries.”

Mr. Balisacan, who is currently the chairman of the Philippine Competition Commission, said the incoming administration will continue the Duterte administration’s flagship infrastructure projects.

“Given the backlogs in our infrastructure programs, and the infrastructure needs for our economic development, we definitely need to sustain the ramping up of our infrastructure development,” he said.

The Department of Public Works and Highways said only 12 out of 119 flagship projects have been completed as of April.

Asked how the government will fund these projects, Mr. Balisacan said: “We will resort to other means, both internal and external… By external, I mean bilateral and multilateral sources. By internal, I mean the government sources and with our private sector.”

“We will invigorate our public-private partnership thrust to building infrastructure,” he added.

Mr. Balisacan said the private sector’s participation in infrastructure projects is obvious, “given the fiscal bind we are facing.”

“Besides, we also believe this private sector can bring in innovations, technologies in the improvement and management in our public services. There is much that can be gained from getting the private sector involved in our infrastructure development.”

For this year, the government has set aside P1.199 trillion, or 5.5% of GDP, for its infrastructure program. — TJT

Raw material snarls in Korea to ripple across Asia factories

STOCK PHOTO | Image by Vitamin from Pixabay

SOUTH KOREA’S trucker strikes are threatening to disrupt wider supply chains in Asia as warehouses fill up with undelivered raw materials used to make everything from clothing to cars.

Petrochemicals have been one of the hardest hit sectors by the week-long action by truck drivers. Prolonged disruptions to logistics are likely to force South Korean companies that supply a diverse array of chemical products to cut production, impacting factories elsewhere in Asia that use the material to make consumer goods.

LG Chem Ltd. and Hanwha Totalenergies Petrochemical Co. warned Monday that they would most likely have to at least partly suspend output at some plants if the strike continues. Hanwha Solutions Corp. has reduced shipments of polyvinyl chloride and polyethylene by 50%, while its solar panel exports have also been affected, the company said Tuesday.

Companies told authorities they are cutting output at Yeosu National Industrial Complex — home to some 297 petrochemical firms — as they have little room for stockpiles, according to a city official.

The situation is concerning as South Korea is a major exporter of the chemical paraxylene to the Chinese textile industry and one of the largest sellers of PVC to Asian factories, according to Parsley Ong, the head of Asia energy and chemicals research at JPMorgan Chase & Co. The nation also exports synthetic latex and acrylonitrile butadiene styrene used in the auto industry to Northeast Asia and elsewhere in the region.

“The trucker strike increases the challenges that chemical producers are already facing from high feedstock costs and a demand slowdown,” Ong said in an e-mailed reply to queries.

The disruption is dealing a further blow to ethylene cracker operators, which transform naphtha from refineries into plastic products. About 20 million tons per annum of ethylene capacity across Asia has already cut operating rates due to a slowdown in the global economy, according to JPMorgan estimates.

Shipping delays may add to the problems. At the port of Busan, wait times for export containers have surged to 11 days, compared with the median dwell time of three days in the past three months, according to logistics intelligence provider Project44.

The logistics snarls may also impact raw materials coming into South Korea. Import containers are waiting 14 days at the port, up from four days before the strikes, according to Project44.

Yard capacity at the world’s seventh-biggest container port is fast approaching 80%, compared with about 70% in May, as container boxes stack up, according to data from the transport ministry Tuesday. South Korea’s HMM Co. said that while its ships are loading and unloading cargo at Busan without major issues, operations will start to be affected should the strike drag on into this week. — Bloomberg

Copyright fight: Ballet Philippines risks losing ‘treasure trove’ of dance

THE 1980 staging of Rama Hari, choreographed by Alice Reyes who also performed. — PHOTO COURTESY OF RUDY VIDAD, BALLET PHILIPPINES COLLECTION

By Sam L. Marcelo, Multimedia Editor

THE ACRIMONIOUS relationship between the board of Ballet Philippines (BP) and the company’s founder, National Artist for Dance Alice G. Reyes, has turned litigious, prompting choreographers to copyright their creative work to prevent BP from claiming ownership of their dances.

Ms. Reyes, who was named a Gawad Yamang Isip Awardee by the Intellectual Property Office of the Philippines (IPOPHL) on June 6, has been helping dance artists protect their work. Her crusade picked up steam after one of her pieces became the subject of a cease-and-desist letter sent by BP.

“Filipino artists just want respect,” said Ms. Reyes, in a conversation with BusinessWorld. “Royalties would be nice but, really, we just want respect.”

Until the dispute is settled, BP’s status as a resident company of the Cultural Center of the Philippines (CCP) is “on hold,” said Chris B. Millado, outgoing CCP vice-president and artistic director, via Zoom on June 8.

Mr. Millado, whose last official day with the CCP is on June 15, added that BP’s privileges, such as subsidies from the CCP and the use of its venues, have been under evaluation since the beginning of 2022.

The ballet company launched its 53rd season in Gallery by Chele in Taguig City this May with the theme “Dance Where No One Else Has.

“Ballet Philippines is going somewhere where no one has danced before. … It does not just pertain to destination or location. We’re talking about the new mindset and that is collaborations with like-minded people and institutions,” said BP President Kathleen “Maymay” L. Liechtenstein, in a speech delivered at the event.

‘STAKING A CLAIM’
On Oct. 16, 2021, two days after Ms. Reyes’s 79th birthday, BP wrote a cease-and-desist letter to Mr. Millado demanding that CCP stop broadcasting the dance Itim Asu — a work that Ms. Reyes choreographed in 1970 and remounted in 2020 as part of the show Alice and Friends.

(See “‘Total fail’: How communication breakdown broke Ballet Philippines’ leg”)

“BP has intellectual property rights to the ballet work as it was created for BP,” stated the letter signed by Ms. Liechtenstein.

The letter also reiterated that BP “does not give consent to CCP to stream in CCP’s virtual platforms” five productions that were mounted by, or choreographed in whole or in part by Ms. Reyes.

Aside from the aforementioned Itim Asu, and Alice and Friends, BP named three shows that were produced during Ms. Reyes’s return as BP artistic director from 2017 to 2020: A Gala Celebration (2017), The Exemplars (2017), and Tales of the Manuvu (2019).

To wit: BP, a resident company of the CCP, sent a cease-and-desist letter to the CCP over Itim Asu, a dance that BP founder Ms. Reyes:

  • choreographed in 1970, at the behest of the League of the Filipino Composers and the CCP, and
  • remounted in 2020 with the help of a CCP grant.

“You own it from the moment you create it,” said Ms. Reyes, referring to a choreographer’s rights to a piece — in this case, Itim Asu, which is based on Virginia R. Moreno’s award-winning play The Onyx Wolf (also known as La Loba Negra). “In fact, I have the copyright.”

Ms. Reyes is quoting the IP Code, which “grants authors, artists, and other creators, automatic protection for their literary and artistic creations, from the moment they create it.”

WHO OWNS WHAT?
While BP got several important details wrong in its demand (such as when Ms. Reyes created Itim Asu and for whom), the unresolved issue between BP and the coalition of CCP and Ms. Reyes raises larger questions: Who owns a dance and who should profit from it?

It’s complicated.

If Ms. Reyes wishes to mount a new production of Itim Asu — with a different look and feel — she can. And it is also Ms. Reyes who has the power to decide who gets to restage Itim Asu.

As summarized by Mr. Millado, while Ms. Reyes owns the rights to the choreography of Itim Asu — the dance itself — she does not own the rights to the sets, the costumes, and the lighting design of the 1970 production; or the music of Alfredo S. Buenaventura.

If she wants a faithful restaging of the 1970 original, she will have to get permission from her artistic collaborators or their estates since the production’s different parts are owned by different people. And the entire production itself is owned by its producer. (Ms. Reyes got the required permissions for her 2020 restaging. Ms. Moreno was sitting in the audience, as was painter Jaime De Guzman, who designed the sets.)

Neither does Ms. Reyes own the digital file of the 2020 performance that was streamed, or the storage medium (which might be a USB stick, a flash memory card, a CD, or a VHS tape) that it was recorded on — the CCP owns those.

If she wants to upload and stream CCP’s 2020 recording on her own platforms, she will have to ask permission from the CCP.

The CCP, on the other hand, will also have to get permission from the artists and companies involved if they want to stream recordings of live performances (which it did). If the CCP decides to charge people for viewing the streamed works, then artists can ask for royalties.

And if the CCP (or BP) wants to restage Ms. Reyes’ work, they will have to get her permission as well.

Complicating matters: there was no intellectual property system in the Philippines in the 1970s — IPOPHL just celebrated its 25th anniversary on June 6 (hence Ms. Reyes’s award) — and contracts then didn’t account for, say, YouTube and other streaming services.

Goodwill was the grease that kept artistic projects going (spoiler: it still is).

“No copyright rules existed during that time, no written contracts covered ownership,” said CCP’s Mr. Millado. “It’s all retroactive — what’s happening now — and people are staking a claim.”

The pandemic, which forced the creative sector to pivot online when restrictions shuttered live performances, highlighted how recordings — previously thought of as archival material — can be monetized.

According to Mr. Millado, there are several compensation models depending on the circumstances of the broadcast. If a show is uploaded and distributed for free to the public on a specific platform for a limited period of time, the CCP informs artists and offers a token fee, which is often waived.

If the CCP charges audiences for streaming a show, then it might offer its creator a one-time royalty of 15% of their original fee for mounting the production; or pay a minimum amount, with the promise of a percentage of the profit, assuming the show earns.

“It’s more work for arts managers but that’s how you make the sector sustainable. That’s where you enter into ‘creative industry,’” he said.

“They [artists] see that there is an economic opportunity in asserting their moral rights to their intellectual property,” added Mr. Millado. “Performing artists and choreographers are still quite ambiguous about their rights, that’s why they are usually at the mercy of the ‘producers.’ … They need to know what they own, how to protect it, and how they can earn from it.”

Commenting on Ms. Reyes’ Itim Asu, the CCP artistic director said: “If there are no written contracts that say that a company owns a commissioned work or that the artist gives up moral and economic rights to a certain piece, then what prevails is the intellectual property rights law, which is that the work is the ownership of the original creator.”

According to the IPOPHL website, “registration and deposit of works isn’t necessary but authors and artists may opt to file for the copyright registration of their work with IPOPHL for the issuance of the appropriate certificate of copyright registration.”

This is a gross oversimplification of a thorny issue that is still with the CCP’s legal department and other agencies. It is also for this reason that IPOPHL cannot comment on the cease-and-desist letter.

BP did not reply to multiple requests for comment.

A BREAKUP IN THREE ACTS (AND COUNTING)

Act 1.

Cracks first began to show when the BP board passed over Ms. Reyes’ recommendations for her successor and instead appointed Mikhail “Misha” Martynyuk, a dancer of The Kremlin Ballet in Russia, as artistic director of the dance company in February 2020. (See: “The Russians are coming, the Russians are coming”)

Act 2.

Over the pandemic, the rift widened: vocal “pro-Alice” BP dancers, some with careers spanning more than a decade, were frozen out of work.

Ms. Reyes took in these displaced BP dancers, along with retrenched professionals from other dance companies, and formed a group that, through several lockdowns, conducted online classes, mounted shows, and premiered new work with support from the CCP.

Ms. Reyes mentors a corps of 18 dancers; BP, meanwhile, lists 16 on its website.

Act 3.

The tussle over intellectual property rights escalates the schism between the BP board and Ms. Reyes, taking a disagreement over artistry, tradition, and legacy into legal territory with accompanying financial ramifications.

“It’s our right as choreographers to protect our pieces and be given due credit for the hard work we put into creating them,” said Monica A. Gana, a former BP soloist and dancer-choreographer now under Ms. Reyes’ wing.

With Itim Asu turning into a cautionary tale, Ms. Gana and young choreographers like her decided to take control of their pieces, some of which were created and staged under the auspices of BP.

From 2021 to present, the Bureau of Copyright and Related Rights has issued 21 certificates of copyright registrations for literary and artistic works. Out of this number, four fall under “choreography.”

In a June 12 e-mail to BusinessWorld, Ms. Gana continued: “I felt relieved that I had an official document saying that I, as the choreographer, have the right to decide who can dance it [my piece] and where it can be danced.”

LOST TREASURE, SWALLOWED PRIDE
As word of Ms. Liechtenstein’s demands made the rounds in the dance community, artists were dismayed but not surprised at the BP board’s actions.

“I don’t think they realize that choreography is a skill,” said Agnes D. Locsin, a pioneering neoethnic choreographer, via Zoom on June 5. “They’re destroying the name [of Ballet Philippines]. … I’m waiting for them to collapse. It’s just money that’s keeping them alive.”

Named a National Artist for Dance on June 10, Ms. Locsin has been copyrighting her work since 1988.

On June 13, the BP board congratulated Ms. Locsin on its platforms, saying: “Some of Agnes’ greatest and most influential works were created with Ballet Philippines.”

The “current BP” — as Ms. Locsin calls the company under Ms. Liechtenstein — might find that showcasing the work of the newly minted National Artist a less collegial affair than it used to be.

With the “old BP,” restaging requests would be met with a nonchalant “yeah, sure,” from Ms. Locsin, a former artistic director and resident choreographer of BP.

A request from Ms. Reyes herself is even weightier: “You can’t say no,” said Ms. Locsin, trying to explain how esteemed the BP founder is by generations of dancers.

And while she is still open to working with the current BP, Ms. Locsin won’t be as accommodating: “For professional reasons, I feel like I will need to say ‘yes,’” she replied. “However there will definitely be conditions that they will have to meet — which I am sure they will have difficulty meeting.”

Ms. Locsin trusts only three dancers with the restaging of her work. After performing her pieces hundreds of times, their bodies remember the jagged angles of Ms. Locsin’s choreography.

“My restagers can explain dance the way I explained it to them,” she said.

This, in a nutshell, illustrates “the distinct difference between the preservation of dance and other artistic media” as the New York Times put it: “choreography often depends on an oral tradition to uphold its integrity through style, motivation and content.”

Ms. Locsin no longer sees the current BP as part of the oral tradition that she is steeped in, in part because of the way it treated Ms. Reyes.

“They have no knowledge of dance in the Philippines if they don’t value Alice Reyes,” said Ms. Locsin. “Even if you remove the title National Artist — this is Alice Reyes, the founder of Ballet Philippines.”

Ms. Reyes, in a Viber message to BusinessWorld on June 7, went as far as to call BP, the dance company that has been tied to her name since 1969, “Ballet Russe”: “Ballet Russe has lost a treasure trove, blindly insisting that it’s theirs — unless they can swallow their pride, ask permission to stage, pay a teeny royalty.”

By sending the cease-and-desist letter, BP has traded its crown jewels — its vast repertoire of modern and contemporary Filipino pieces — for a gaggle of swans.

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