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Key findings of leaked Pandora Papers on offshore wealth

PIXABAY

A group of news organizations has released the following main findings after reviewing what it describes as a massive leak of confidential financial records revealing assets held offshore by politicians and public officials worldwide.  

The news reports have been published by the International Consortium of Investigative Journalists (ICIJ) and its media partners in the Pandora investigation, including The Washington Post, the BBC, The Guardian, Radio France and the Indian Express.  

Reuters could not independently verify the allegations or documents detailed by the consortium and its partners.  

JORDAN’S KING ABDULLAH 
Jordan’s King Abdullah amassed about $100 million worth of property in the United States and the UK through secret companies. They were purchased between 2003 and 2017 via firms registered in tax havens and include properties in Malibu, southern California, and Washington and London.  

DLA Piper, a London law office representing Abdullah, told the ICIJ that he had “not at any point misused public monies or made any use whatsoever of the proceeds of aid or assistance intended for public use.”  

CZECH PRIME MINISTER ANDREJ BABIS 
The Pandora news reports said Mr. Babis moved $22 million through offshore companies to buy an estate on the French Riviera in 2009 while keeping his ownership secret. The report did not say the transactions broke the law.  

Mr. Babis, speaking on Sunday in a TV debate ahead of Oct. 8-9 elections, denied wrongdoing and said “the money left a Czech bank, was taxed, it was my money, and returned to a Czech bank”.  

Mr. Babis, founder of the Agrofert farming, food, chemicals and media empire, entered politics in 2011 on an anti-corruption agenda.  

SVETLANA KRIVONOGIKH 
The Washington Post said Russian woman Svetlana Krivonogikh became the owner of a Monaco apartment via an offshore company incorporated on the Caribbean island of Tortola in April 2003 just weeks after she gave birth to a girl. At the time, she was in a secret, years-long relationship with Russian President Vladimir Putin, the Post said, citing Russian investigative outlet Proekt.  

The Post said Ms. Krivonogikh, her daughter, who is now 18, and the Kremlin did not respond to requests for comment.  

PAKISTAN 
The ICIJ said the leaked documents showed members of Prime Minister Imran Khan’s inner circle, including cabinet ministers, have secretly owned companies and trusts holding millions of dollars of hidden wealth. The documents also showed the personal wealth of Pakistani military leaders, it added.  

The consortium said the documents contained no suggestion that Mr. Khan himself owns offshore companies.  

It said Finance Minister Shaukat Fayaz Ahmed Tarin and members of his family own four offshore firms. According to Tariq Fawad Malik, a financial consultant who handled the paperwork on the companies, they were set up as part of the Tarin family’s intended investment in a bank with a Saudi business, the ICIJ said. The deal did not proceed.  

The ICIJ quoted Mr. Tarin as saying in a statement: “The off-shore companies mentioned were incorporated as part of the fund-raising process for my bank.”  

SOUTH DAKOTA 
The Guardian said the files provided evidence that South Dakota now rivalled opaque jurisdictions in Europe and the Caribbean for financial secrecy.  

The documents reveal almost $360 billion in customer assets are sitting in trusts in South Dakota, some of it tied to offshore-based people and companies accused of human rights abuses and other wrongdoing, it said. State officials declined to comment to the paper.  

AZERBAIJAN 
The investigation found Azerbaijani President Ilham Aliyev and his family have secretly been involved in British property deals worth more than 400 million pounds ($542 million), according to the BBC.  

The files show how the family bought 17 properties, including a 33 million pound office block in London for the president’s 11-year-old son.  

The research also reveals how another office block owned by the family nearby was sold to the Crown Estate for 66 million pounds in 2018. The Crown Estate said it carried out the checks required in law at the time of purchase but is now looking into the matter. The Aliyevs declined to comment to the BBC.  

KENYA 
Kenya’s President Uhuru Kenyatta and six members of his family have been linked to 13 offshore companies, according to the documents.  

The Kenyattas’ offshore investments included a company with stocks and bonds worth $30 million, the BBC reported. The Kenyattas had not yet responded to requests for comment, it added. — Reuters 

Work-from-home future challenges call centers in the Philippines

BW FILE PHOTO

The Philippines should adopt policies for call centers that will fit the post-pandemic workplace, according to the head of the industry group, as it seeks to extend the sector’s two decades of growth.

The Contact Center Association of the Philippines sees a shift toward working-from-home, one of several COVID-era workforce adaptations that could become entrenched. However, some tax breaks crucial to the industry are only valid if the bulk of their employees work in designated economic zones. 

“No business is thinking we will just go back, after this pandemic is over, to the way we were,” Chairman Benedict Hernandez said in an interview. He urged the government to develop a long-term policy that recognizes the new reality of hybrid home-office work. 

The association expects the outsourcing industry’s revenues to grow 9% this year, outpacing 6%-7% for the sector globally, as more companies shift toward digitalization.

“It’s an encouraging yet vulnerable recovery,” Hernandez said. The outsourcing industry, which includes call centers, needs “support and protection so that we can continue creating more jobs and helping the economy recover.” 

With most Filipinos proficient in English, call centers have played an increasingly important role in the country’s economy since the 1990s, creating millions of jobs and driving consumption. As exporters of information-technology services are often located inside government-designated economic zones, many of the companies enjoy special tax breaks.

Call centers employ about 800,000 people in the Southeast Asian nation, or about three-fourths of the 1.3 million workers in the outsourcing sector, and add as many as 80,000 new jobs per year. As the global recovery continues more companies will look to cut costs by moving jobs offshore, creating more opportunities for Philippine outsourcing companies, Hernandez said. 

PLAYING CATCH-UP
Still, the industry faces a number of risks. 

Fresh COVID outbreaks are prompting clients who may have concentrated operations in a single country to reconsider that strategy. To bolster its competitiveness, the Philippines will need to play catch-up in vaccinating employees, upgrading infrastructure and implementing supportive government policies, Hernandez said.

Among the challenges are infrastructure investments by telecommunication companies to bolster at-home connectivity. “We’re very happy with how much speed and capital they’re laying out,” Hernandez said. “It’s getting better, but we’re not yet there.”

In addition, a 1994 law on economic zones must be updated for the outsourcing industry, Hernandez said. The law gives tax breaks to companies whose output is produced in the zones, which suggests employees must be working onsite. 

Amid the pandemic, about 60% of total call center employees are currently working from home, with some companies now fully home-based. The government recently allowed companies in the economic zones to let as many as 90% of employees work from home through next March. 

That extension “buys us time,” Hernandez said, but isn’t a durable solution.

FISCAL CAUTION
Officials from the National Economic and Development Authority and the Department of Trade and Industry didn’t respond to requests for comment.

The Duterte administration generally has been cautious about using fiscal measures to counter the effects of the pandemic, though an order imposing 12% value-added tax on exporters’ transactions, which could affect call centers, has been deferred for now.

Earlier this year the government changed the fiscal-incentives system, phasing out certain tax breaks in the economic zones and tweaking others. Some outsourcing firms worry that reducing such incentives will make the Philippines more expensive and drive away investors.

“It’s been a resilient industry,” Hernandez said. “This year, we’re seeing a very promising recovery but that continues to be vulnerable. We still need support.” — Bloomberg

Two Koreas reopen hotlines as North urges South to mend ties  

REUTERS

SEOUL — The two Koreas on Monday restored their hotlines that the North severed months ago, with Pyongyang urging Seoul to step up efforts to improve relations after criticizing what it called double standards over weapons development.  

North Korean leader Kim Jong Un expressed his willingness last week to reactivate the hotlines, which North Korea cut off in early August in protest against joint South Korea-US military exercises, just days after reopening them for the first time in a year.  

Pyongyang’s official KCNA news agency had said the telephone links would be reconnected on Monday at 9:00 a.m. (0000 GMT).  

The South confirmed that twice-daily regular communication was restarted on time via military hotlines and others run by the Unification Ministry, except for the navy channel set up on an international network for merchant ships.  

The hotlines are a rare tool to bridge the rivals, but it was unclear whether their reconnection would facilitate any meaningful return to talks aimed at dismantling the North’s nuclear and missile programs in return for US sanctions relief.  

KCNA called for Seoul to fulfil its “tasks” to mend strained cross-border ties, repeating Kim’s speech last week that he had decided to recover the lines to help realize people’s hopes for a thaw and peace.  

In that speech, Kim urged South Korea to abandon its “double standards” and “delusion” over the North’s self-defensive military activities while developing its own weapons.  

“The South Korean authorities should make positive efforts to put the north-south ties on a right track and settle the important tasks which must be prioritized to open up the bright prospect in the future,” KCNA said.  

HOTLINES REDUCE TENSIONS 
Seoul’s defense ministry said the hotlines have contributed to preventing unexpected clashes and their reopening would hopefully lead to substantive easing of military tension.  

The Unification Ministry, responsible for inter-Korean affairs, expressed hopes that it would be able to resume dialogue soon on ways to recover relations and foster peace.  

In Washington, a US State Department spokesperson said it strongly supports inter-Korean cooperation, calling the reconnected lines “an important component in creating a more stable environment on the Korean Peninsula.”  

Tension had flared since the hotlines were severed, with North Korea warning of a security crisis and firing a series of new missiles, including a hypersonic missile, an anti-aircraft missile, and a “strategic” cruise missile with potential nuclear capabilities.  

The launches underlined how the isolated country has been constantly developing increasingly sophisticated weapons, raising the stakes for stalled denuclearization negotiations.  

While accusing Washington of “hostile policy,” Pyongyang has said it is willing to mend inter-Korean relations and consider another summit if Seoul drops double standards.  

Analysts say the North’s carrot-and-stick approach is aimed at securing international recognition as a nuclear weapons state and driving a wedge between the United States and South Korea, counting on South Korean President Moon Jae-in’s eagerness to forge a diplomatic legacy before his term ends in May. — Hyonhee Shin/Reuters 

Amid COVID-19 booster data dilemma, EU nations’ plans diverge

FREEPIK

LONDON — A patchwork of campaigns for an extra coronavirus disease 2019 (COVID-19) shot are being rolled out across the European Union even before the region’s drug watchdog rules on whether they are safe and effective.  

Italy, France, Germany, and Ireland have already started to administer booster shots and the Netherlands plans to do so soon but only to people who are immunosuppressed.  

But several EU countries are waiting for the European Medicines Agency (EMA) to give its opinion this week.  

The fragmented picture mirrors the different approaches seen in the roll-out of shots across one of the world’s wealthiest regions at the turn of the year.  

They also highlight the lack of consensus among scientists about how broadly they are needed, while governments seek to revive their ailing economies, fight the more infectious Delta variant, and avoid further lockdowns in the winter.  

Underscoring what is at stake, the EU’s infectious diseases center said on Thursday the region’s coverage of vaccines was still too low and there was a risk of a significant surge in cases, hospitalizations and deaths over the next six weeks.  

Only 61% of the total population have been fully vaccinated, and only three countries — Malta, Portugal, Iceland — have vaccinated more than 75% of their total population, it said.  

That compares with less than a quarter of the population in Bulgaria, one of the big laggards in EU vaccinations.  

Still, the bloc’s push towards boosters will stir the debate over rich nations’ use of vaccines while poorer countries struggle to access supplies and inoculate their citizens.  

The World Health Organization has called on countries to delay boosters until more people around the world have been inoculated.  

EU NEXT IN LINE 
If the EMA gives its backing for the Pfizer booster, the 27-member bloc will join the United States, Britain and Israel, which have already received the green light to administer them.  

Those have relied on data from Israel where boosters are being offered to the whole population showing that more than 1.1 million people aged 60 and older received a booster dose of Pfizer, resulting in a decline in overall infections as well as severe illness from COVID-19 in that group.  

Pfizer and Moderna have also each released analyses of clinical trial data showing that the effectiveness of their shots, initially estimated at over 90% against symptomatic COVID-19 infection, wanes over time.  

Many vaccine experts say the data so far only suggest a need for boosters in older adults and people with compromised immune systems.  

A decision by the EMA is expected on Monday, although the regulator is unlikely to provide detailed guidance on who should receive a booster shot.  

The EMA and the European Centre of Disease Prevention and Control (ECDC) have both said there is not enough data on the issue.  

On Thursday, the ECDC said additional doses may be given to people with severely weakened immune systems as they may not have adequate protection from standard vaccination.  

As a precautionary measure, older frail people, in particular those living in care homes, could also get a booster, while healthcare workers and other staff who are exposed to the virus could also be considered, it said.  

But it said it was still assessing data on waning immunity after vaccination and reduced vaccine effectiveness against the Delta variant.  

DIVERGING MOVES 
In the meantime, EU countries are implementing their own policies.  

Italy has started to administer shots across the immunocompromised, the elderly and healthcare workers who are vulnerable or at high risk of infection, targeting a total of about 9 million people.  

In contrast, the Netherlands is limiting its boosters to the immunosuppressed — up to 400,000 people — and has stressed the need for primary vaccinations.  

“For the time being, the current COVID-19 vaccines offer an undiminished high level of protection against it. The only clues so far for diminishing protections are coming from Israel, but these indications in themselves still offer too little basis for a booster campaign in the Netherlands,” the health council said.  

In Denmark, the government is pursuing a similar strategy but plans to hand out extra doses to medical staff and anyone over 65 if the EMA gives the go-ahead.  

Switzerland will not use boosters for now because the authorities say they do not see protection slipping over time, but they are still monitoring the data.  

The decision-making has exposed domestic divisions too. Germany’s federal and regional health ministers were worried about slowing vaccination rates and voted for third doses to a large portion of the population.  

But the country’s vaccine expert panel STIKO has only endorsed an extra shot for the immunocompromised, such as cancer patients or people with organ transplants.  

It said it was considering widening to other groups and it would make a recommendation over the coming weeks. — Josephine Mason, Anthony Deutsch, and Nikolaj Skydsgaard/Reuters  

Meralco energizes new COVID-19 vaccination center in Pateros

In its continuing support to the Government and Private Sector’s fight against COVID-19, Meralco energizes a new vaccination center at the AMC Gym, Barangay San Roque, Pateros.

The project involves the installation of six (6) 15-meter concrete poles, two (2) 50-kVA distribution transformers, ten (10) spans of insulated primary wires, service drop wires and metering facility.

This new vaccination center is one of the many vital COVID-19 facilities in the Meralco franchise area that are given the highest priority in terms of providing safe, adequate, and reliable supply of electricity, in line with the company’s thrust to assist the government during the pandemic. To date, more than 140 vital COVID-19 facilities have already been energized by Meralco which include government offices, hospitals, testing laboratories, quarantine and vaccination centers, and vaccine storage facilities.

 

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Pandora Papers: Document dump allegedly links world leaders to secret wealth

Russian President Vladimir Putin

WASHINGTON — A massive leak of financial documents was published by several major news organizations on Sunday that allegedly tie world leaders to secret stores of wealth, including King Abdullah of Jordan, Czech Prime Minister Andrej Babis and associates of Russian President Vladimir Putin.  

The dump of more than 11.9 million records, amounting to about 2.94 terabytes of data, came five years after the leak known as the “Panama Papers” exposed how money was hidden by the wealthy in ways that law enforcement agencies could not detect.   

The International Consortium of Investigative Journalists, a Washington, D.C.-based network of reporters and media organizations, said the files are linked to about 35 current and former national leaders, and more than 330 politicians and public officials in 91 countries and territories. It did not say how the files were obtained, and Reuters could not independently verify the allegations or documents detailed by the consortium.   

Jordan’s King Abdullah, a close ally of the United States, was alleged to have used offshore accounts to spend more than $100 million on luxury homes in the United Kingdom and the United States.   

DLA Piper, a London law office representing Abdullah, told the consortium of media outlets that he had “not at any point misused public monies or made any use whatsoever of the proceeds of aid or assistance intended for public use.”   

The Washington Post, which is part of the consortium, also reported on the case of Svetlana Krivonogikh, a Russian woman who it said became the owner of a Monaco apartment through an offshore company incorporated on the Caribbean island of Tortola in April 2003 just weeks after she gave birth to a girl. At the time, she was in a secret, years-long relationship with Putin, the newspaper said, citing Russian investigative outlet Proekt.   

The Post said Ms. Krivonogikh, her daughter, who is now 18, and the Kremlin did not respond to requests for comment.  Days ahead of the Czech Republic’s Oct. 8–9 parliamentary election, the documents allegedly tied the country’s prime minister, Babis, to a secret $22 million estate in a hilltop village near Cannes, France.  Speaking during a television debate on Sunday, Mr. Babis denied any wrongdoing.   

“The money left a Czech bank, was taxed, it was my money, and returned to a Czech bank,” Mr. Babis said. — Reuters

US condemns ‘provocative’ Chinese activities near Taiwan

REUTERS

TAIPEI — The United States urged China on Sunday to stop its “provocative” military activities near Taiwan, after the island scrambled jets to warn away close to 100 Chinese military aircraft entering its air defense zone over a three-day period.  

Taiwan, a democratically governed island that is claimed by China, has complained for more than a year of repeated missions near it by China’s air force, often in the southwestern part of its air defense zone close to the Taiwan-controlled Pratas Islands.  

On Friday, Saturday and again on Sunday, Taiwan’s defense ministry reported that China’s air force had sent aircraft into the zone, with 39 on Saturday alone, the highest reported number to date.  

“The United States is very concerned by the People’s Republic of China’s provocative military activity near Taiwan, which is destabilizing, risks miscalculations, and undermines regional peace and stability,” State Department spokesperson Ned Price said in a statement.  

“We urge Beijing to cease its military, diplomatic, and economic pressure and coercion against Taiwan.”  

The United States has an abiding interest in peace and stability across the Taiwan Strait, and will continue to assist Taiwan in maintaining a “sufficient self-defense capability,” Mr. Price added.  

“The US commitment to Taiwan is rock solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region.”  

Taiwan’s Foreign Ministry thanked the United States for its concern, and said China was increasing tension in the Indo-Pacific region.  

“In the face of China’s challenges, our country’s government has always committed itself to improving our self-defense capabilities and resolutely safeguarding Taiwan’s democracy, freedom, peace and prosperity,” it said.  

China has yet to comment on its activities, and it is not clear what may have caused Beijing to decide to mount the missions, though Friday was the country’s National Day, a patriotic holiday that marks the founding of the People’s Republic.  

It has previously said such flights were to protect the country’s sovereignty and aimed against “collusion” between Taiwan and the United States, the island’s most important international backer.  

Taiwan’s defense ministry said it sent combat aircraft to warn away the Chinese aircraft, while missile systems were deployed to monitor them.  

It said the aircraft were a mixture of J-16 and Su-30 fighters as well as anti-submarine and early warning aircraft. Friday’s flights included nuclear-capable H-6 bombers.  

Taiwan Premier Su Tseng-chang condemned China for its actions on Saturday, saying the country was engaging in military aggression and damaging regional peace.  

Taiwan marks its national day next Sunday, with a major speech by President Tsai Ing-wen and military parade in central Taipei, which will include a fly-by of fighter jets.  

China has stepped up military and political pressure to try to force Taiwan to accept Chinese sovereignty.  

Taiwan says it is an independent country and will defend its freedom and democracy. — Ben Blanchard/Reuters  

PCCI names Cathay Land’s Jeffrey Ng as 47th PBC&E chairman

Jeffrey Ng, Cathay Land Inc. president

Jeffrey Ng, president of Cathay Land Inc., is leading the country’s biggest business conference in November, the Philippine Chamber of Commerce and Industry (PCCI) announced today.

Jeffrey, as he is called by colleagues in business, was unanimously appointed the Chairman of the 47th Philippine Business Conference & Expo (PBC&E) by the PCCI Board of Trustees headed by its President Benedicto V. Yujuico.

The PBC&E is an annual summit of the country’s business and industry captains from all over the country. It is a venue for business-to-business, business-to-customers, business-to-government networking. It provides the platform for business leaders, policy makers, and development partners to share and exchange ideas on potentials and challenges facing business and its ecosystem.

Each year, the PCCI selects a theme based on trends shaping the development and evolving needs of business and the economy. The theme of this year’s PBC&E is “innovation.ph: Economic Recovery for All.” Discussions will focus on policies and programs to build a strong foundation for a more sustainable and resilient future.

Explaining the selection of Mr. Ng, PCCI President Amb. Benedicto Yujuico said, “Jeffrey’s economics background and pioneering business ventures spanning over three decades were the primary consideration in selecting him as Chair of the 47th PBC&E.”

Mr. Ng is an Economics Cum Laude graduate of University of the Philippines Diliman with a Master’s Degree in Business Economics at the University of Asia and the Pacific. He is currently President of UP School of Economics Alumni Association (UPSEAA). He is a Board member of Philippine Chamber of Commerce and Industry (PCCI) and Foundation for Economic Freedom (FEF). He is also the President of Cathay Land, Inc., (developer of South Forbes Golf City), the Astoria Hotels and Resorts, and Cathay Metal Corp. (steel manufacturing).

“Jeffrey is visionary in real estate and property development. For instance, he knew early on that the urban sprawl of Metro Manila would extend outside the metropolis, so he ventured in land-banking in the South and developed new thriving townships in Cavite,” Mr. Yujuico added.

“I am extremely honored with the appointment and I thank (President) Dickie and the entire PCCI Board for the trust. I am excited to lead the staging of the conference despite and because of the challenging situation we are in. The PBC has always strived to be relevant in raising the concerns of the business sector and bringing about resolutions that would help address these concerns. I am glad we are now seeing a whole of society and whole of government approach as we recover from the pandemic. Hopefully, through the PBC, I can contribute to the putting together of innovative solutions as we recover and build better and smarter,” Mr. Ng said.

This year’s conference will be held on Nov. 17-18, 2021. It will present and discuss how Innovation has become a catalyst to reboot the economy and accelerate growth to recover lost grounds and catch up with Ambisyon 2040’s goal for the country to become a middle-income economy in 20 years.

Among the highly anticipated segments of the conference is a session with pioneers and global leaders in innovation and technology, and one with the 2022 Presidentiables. The conference will conclude with the presentation of the business sector’s wish list to government.

French Catholic Church had an estimated 3,000 pedophiles since 1950s — commission head

Raimond Spekking/CC BY-SA 4.0/Wikimedia Commons

PARIS — The French Catholic Church has had an estimated 3,000 pedophiles in its ranks over the past 70 years, the head of an independent commission investigating the sex abuse scandal said in an interview published on Sunday.  

The scandal in the French Church is the latest to hit the Roman Catholic Church, which has been rocked by sexual abuse scandals around the world, often involving children, over the past 20 years.  

The French commission is due to publish its findings on Tuesday, marking the culmination of 2-1/2 years of work, probing allegations of abuse going back to the 1950s.  

“We have estimated the number [of pedophiles] as standing at 3,000, out of 115,000 priests and religious officials, going back to the 1950s,” commission head Jean-Marc Sauve told the Journal du Dimanche paper.  

A spokesperson representing the French Catholic Bishops’ Conference declined to comment on Mr. Sauve’s remarks.  

A Vatican spokesperson said it would wait for the full report to be published before deciding on whether to comment.  

In June, Pope Francis said the Catholic Church’s sexual abuse crisis was a worldwide “catastrophe.”  

The French Catholic Church posted a prayer on its official Twitter account on Sunday, on behalf of victims, and added it would also hold a prayer on Oct. 5 — the day of the publication of the report.  

“Dear Lord — we entrust to you all those who have been victims of violence and sexual attacks in the Church. We pray that we will always be able to count on your support and help during these ordeals,” it wrote on its Twitter account.  

STEPS TO WIPE OUT ABUSE  

Since his election in 2013, Pope Francis has taken a series of steps aimed at wiping out sexual abuse of minors by clerics.  

In 2019, the pope issued a landmark decree making bishops directly accountable for sexual abuse or covering it up, requiring clerics to report any cases to Church superiors and allowing anyone to complain directly to the Vatican if needed.  

This year, he issued the most extensive revision to Catholic Church law in four decades, insisting that bishops take action against clerics who abuse minors and vulnerable adults. Critics have said he has not done enough.  

The French Church, which has seen dwindling numbers of faithful in recent years, said in March it would propose financial compensation to those who were victims of abuse.  

Last month, the Roman Catholic Archbishop of Cologne decided to take a “spiritual time-out” from his duties after committing grave errors in a crisis over clerical sexual abuse.  

A report published last year in Britain said the Catholic Church received more than 900 complaints involving over 3,000 instances of child sex abuse in England and Wales between 1970 and 2015, and that there have been more than 100 reported allegations a year since 2016. — Reuters 

PHL’s largest telco-neutral data center provider bullish on growth as hyperscalers arrive

BW FILE PHOTO

The country’s largest telco-neutral data center to provide telco-grade and tailored data center services, Beeinfotech PH (Bee Information Technology PH Inc.), is confident that the Philippine data center market is ready to cater to the needs of global hyperscale companies. This is due to a variety of factors, including the growth of enterprise cloud and data center adoption in the market, rising Internet use, and the recent improvements in the nation’s Information and Communications Technology (ICT) capabilities.

Recent forecasts have revealed that developments in the Asia Pacific make the region a prime destination for hyperscalers. According to Frost & Sullivan, APAC will lead all the other regions as the top data center market in the world by 2025. The firm also noted that the Philippines is expected to boom in data center growth, with an average increase of 24% in data center supply within the next three to five years. This was highlighted by the Philippines’ Department of Trade and Industry in a recent online event announcing the arrival of hyperscale companies in the country.

Reynaldo Huergas, Beeinfotech PH President and CEO

“These projections show how the country’s ICT abilities have vastly improved throughout the years. It’s a testament that the Philippines is ready to take on a pivotal role in ensuring that the online services people around the world use daily and enjoy keep running through hosting the infrastructure of hyperscale companies within shores,” said Reynaldo Huergas, Beeinfotech PH President and CEO.

Hyperscale refers to the expansion of significant resources in a data center to quickly adapt to customer demand. The companies that have this ability are mostly IT enterprises that deal with a lot of real-time data through their online services, such as Google, Microsoft, and Amazon.

Huergas notes that despite these companies having their own data centers, certain logistical considerations make it much more feasible for them to colocate or host infrastructure within data center partners that already have the facilities. Beeinfotech PH’s own multi-million peso “The HIVE” facility launched in August, for example, has a 3,000-plus rack space well-suited for scaling resources quickly.

“It will take companies years to build their data center, not just because of the construction itself, but due to several hurdles such as the paperwork and permits that need to be complied with first. By colocating resources to a local data center partner, hyperscale companies can deploy immediately to answer customer demand at once,” adds Huergas.

Philippines as the next premier data center hub for hyperscalers

Beeinfotech PH notes that several hyperscale companies have been eyeing the Philippines for a while now. The country’s positive connections with the East and West make it a gateway for both to expand to the fast-rising APAC market, while allowing companies within the region to make their mark on the rest of the world. Beeinfotech PH also cites that the surrounding data center hubs in other ASEAN countries have become too congested to support the critical compute zones needed by hyperscale companies.

The rising number of undersea cables strengthening the country’s connectivity is also attracting global companies. Currently, there are 10 international submarine cable systems providing connectivity to the Philippines, and by 2024, there will be five more trans-pacific subsea cables connecting the market to the rest of the world.

Beeinfotech PH also contends that the high-ranking Internet use of Filipinos makes expansion into the Philippines as lucrative as ever due to the possibility of tapping a digital-savvy customer base of nearly a hundred million online users.

“The high Internet usage of Filipinos translates to a profitable market for hyperscalers. But to reach them first, hyperscalers have to bring their resources closer by either expanding or colocating. The closer their presence is, the faster the delivery of their content will be, thus enabling them to attract and retain a significant audience,” said Maricar Nepomuceno, Beeinfotech PH Senior Vice President, Strategic Planning & Business Development.

The rising data center market in the Philippines is another reason for hyperscalers to show up. Beeinfotech PH is among the few data center service providers in the Philippines with the facilities to host hyperscale companies. In addition to extending truly telco-neutral and bespoke colocation services, its The HIVE facility offers an open canvas within its premises to meet all stringent requirements and allow hyperscale companies more freedom in their colocation methods.

For more information on Beeinfotech’s hyperscale-ready services, visit beeinfotech.ph.

 

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[B-SIDE Podcast] Offline to online: winning the battle for brand loyalty in the digital space

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Digital spending went up 60% for every person in the past year, according to the third iteration of SYNC Southeast Asia, an annual report by Facebook and management consulting firm Bain & Company.  

Titled Southeast Asia, the home for digital transformation, the report takes a look at emerging digital lifestyle trends in the region.  

In this B-Side episode, Facebook Philippines country director John Rubio shares the stories behind the statistics. He tells BusinessWorld reporter H. Lacsamana how retailers can take their business offline-to-online with the help of 6 Rs. 

TAKEAWAYS  

The consumer journey is mostly digital.  

Filipinos, who spend as much as 10 to 11 hours online, are able to translate their time to e-commerce activity, whether it’s discovering brands and products, considering whether to buy them based on research, or actually making purchases, according to Mr. Rubio.  

This entire consumer journey now happens online — the study shows that the discovery and consideration phases now occur 80% and 83% online respectively.   

“Before, for example, you’d be walking in the mall and maybe you’d hit a makeup stand and you’d say ‘yeah, I like that’ and try it out,” he explained. “What’s happened is a massive shift where that now happens online.”  

To win the battle for brand loyalty, have a robust online presence. 

A major concern for brands is that consumers are now more likely to switch, with 51% more Filipinos saying they switched their most-purchased brand in the last 3 months.   

“What that really means for brands is they need to understand the customer journey we talked about and say, if discovery is now happening on digital, it’s happening on my Facebook or Instagram feed. It’s happening on Facebook Live. It’s happening on YouTube. It’s happening on TikTok,” said Mr. Rubio. “How do they leverage that?”  

He recommended brands think about whether their website or social media pages provide enough details for potential customers.   

Another factor is sustainability, for which around 80% of Filipinos said they would pay up to 10% more: “A lot of people now are very attuned to purpose. They want to buy some brands that are, for example, sustainable [and] adhere to the same social principles as they do, especially as we go to the younger segments.”  

The convenience of e-wallets helped spur e-commerce.  

With Filipinos purchasing 8.2 product categories in 2021 compared to just 4.7 in 2020, the convenience of payment modes has become important as well.   

“People find the utmost convenience of being able to have a digital e-wallet and being able to pay online, whether to pay for Grab, Lazada, Shopee, Zalora, and so forth,” said Mr. Rubio. “It’s much more convenient to do that. You can even shop at midnight.”  

Outside of the pandemic, the massive adoption of e-wallets drove e-commerce — the report found that 1 in 3 people now prefer to pay with an e-wallet.  

Six Rs can help brands go from offline to online.  

Majority of respondents (65-80% across markets) said their digital purchasing behavior may stick even after the pandemic.  

In order for businesses to evolve with their consumers, Mr. Rubio suggested building a good offline-to-online (O2O) strategy with the help of 6 Rs:  

  1. Rewrite a digital first agenda.  
  2. Rewire your business model.  
  3. Reimagine your consumer engagement.  
  4. Refresh your product offers.  
  5. Re-envision your view of sustainability.  
  6. Realign a post-pandemic lifestyle.  

“We need to make sure we’re experimenting so that we’re not one of those that are left out in a post-COVID world,” he said.  

Recorded remotely on Sept. 14. Produced by Paolo L. Lopez and Sam L. Marcelo.

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Navigating the Digital World with SAP ERP

Nearly two years into the pandemic, it is clear that digitalization is crucial to modern businesses and their ability to navigate the unpredictable business climate. Digitalization is paving the way for organizations to utilize and engage with innovations and R&D activities as they explore new market opportunities. And, business leaders agree.

“Technology, such as cloud enterprise resource planning (ERP), has become an insightful conduit of knowledge for businesses, enabling them to manage through volatility,” Mickey North Rizza, Program Vice President of Enterprise Applications and Digital Commerce at the International Data Corporation (IDC), said.

She added that with the right combination of technologies such as cloud, mobile, intelligent processes, and real-time insights, businesses can utilize data to ensure that customer needs are met, no matter the circumstances.

Shari Lava, Research Director of Small and Medium Business at IDC explained, “Cloud ERP systems are where data come together to provide a snapshot of the health of the business. Cloud ERP systems can now connect, in real time, critical customer data to operational data such as outstanding customer invoices, payroll, and other business expenses such as outstanding supplier purchases. These insights provide a holistic financial view as well as a complete picture of the business, allowing a company to take the necessary action.”

SAP Business One is an end-to-end solution designed for the digital transformation needs of every business. It can support organizations to reach their goal of becoming an intelligent enterprise, augmenting business operations from accounting and financials, purchasing, inventory, sales, and customer relationships to reporting and analytics.

SAP Business One also allows companies of all sizes to have greater control over their key processes and gain deeper insight into their businesses’ performance — allowing for informed decisions based on real-time information that can drive profitable growth.

In the Philippines, SAP Business One is available through Integrated Computer Systems, Inc. (ICS), a leading IT solutions provider in the country for over 40 years. An official partner of SAP, as well as a number of global IT organizations, ICS is committed to see its clients through from end to end. The company’s pool of professionals are adept in delivering installation, support, maintenance, and consultancy services, ensuring that clients have everything they need to make the most of their IT investments.

“Our local partners help put SAP solutions to work to improve speed and stability across an entire business. Intelligent automation creates consistent, connected, end-to-end processes, while intelligent insights help customers overcome the hurdles that slow down growth and guide the decisions that can accelerate it,” SAP said.

SAP business management software lets organizations confidently stay ahead of change as they navigate the digital landscape, enabling them to grow their business into the future.

For more information on SAP BusinessOne and ICS, interested parties may visit www.ics.com.ph or inquire here.

 

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