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Macron or Le Pen: why it matters for France, the EU, and the West

The Elysée Palace in Paris, France. — ELYSEE.FR

PARIS — The French will decide on April 24 whether to re-elect pro-business centrist President Emmanuel Macron or blow up decades of mainstream consensus in favor of far-right Marine Le Pen. 

Here’s what to expect from them on major issues:  

THE ECONOMY
LE PEN: The far-right heiress has transformed the former National Front, turning her father’s free-market, small-government party into a big-spending, protectionist one. 

She wants to implement a “Buy French” policy for public tenders, cut the minimum retirement age to 60 for those who started work before 20, scrap income tax for those aged under 30, and cut VAT on energy to 5.5% from 20%. 

She would also spend 2 billion euros ($2.18 billion) over 5 years raising hospital workers’ salaries and recruiting an extra 10,000 of them. Teachers’ salaries would rise 15% over 5 years. 

Gilles Ivaldi, political scientist at Sciences-Po, says her party’s economic programme is further to the left than it has been for decades.  

MACRON: The French leader plans to double down on supply-side reforms he has implemented during his first mandate, with the main plank of his manifesto being an increase in the minimum pension age to 65 from 62. 

Mr. Macron is also promising to make some welfare benefits conditional on 15-20 hours of training, similar to policies in countries such as the United States or Britain. 

Unemployment insurance, which currently guarantees workers up to two thirds of their salary for two years if they lose their job, would be linked to the strength of the economy. 

In his attempt to stay true to his “neither left nor right” motto, he has also promised to make benefits automatic for those who qualify instead of requiring would-be recipients to apply.  

EUROPE
LE PEN: Although she has abandoned earlier plans to leave the euro and pay France’s debt in newly created francs, Ms. Le Pen has nonetheless pledged to cut contributions to European Union (EU) coffers. Such a move would put Paris on a collision course with the European Commission and other EU members. 

She insists French law should prevail over EU rules, in a challenge to the bloc’s top court, and says she wants eventually to replace the EU with a “Europe of nations,” though she has yet to spell out what that would look like. 

Ms. Le Pen would also employ thousands more customs agents to check goods entering France, including from other EU countries, purportedly to fight fraud. Analysts say that would undermine the single market.  

MACRON: The ardent Europhile would continue his push to develop what he calls Europe’s “strategic autonomy” in defense, technology, agriculture, and energy and reduce the bloc’s dependence on other powers. 

Over the past five years, Mr. Macron has sought to re-orient the EU towards a more protectionist stance, blocking some free-trade deals with other blocs such as Mercosur and creating a mechanism that increases scrutiny of outside takeovers of strategic EU companies. 

Mr. Macron is also likely to push for more regulation of US tech giants and has said he wanted to create a “European metaverse” to compete with Facebook’s.  

THE WESTERN ALLIANCE
LE PEN: Ms. Le Pen wants to pull France out of transatlantic military alliance NATO’s integrated command, in a challenge to the West’s post-Cold War security architecture. 

Opponents accuse her of being too close to Moscow. Her party received a bank loan from a Russian bank in 2014 and she was hosted by Russian President Vladimir Putin at the Kremlin shortly before the 2017 presidential election. 

She has condemned Russia’s invasion of Ukraine, but says Moscow could be an ally again post-war. 

In an interview with Reuters, she called herself a “Gaullist,” after wartime leader Charles de Gaulle, and said she would pursue a foreign policy at equal distance from Washington and Moscow. 

Asked if she had a message to France’s traditional allies, Britain and the United States, she said: “Drop the preconceived ideas you have about me.”  

MACRON: Although Mr. Macron ruffled feathers across the trans-Atlantic alliance, notably in eastern Europe and Germany,  when he called NATO “brain-dead” in 2019, he has since said the Russian invasion of Ukraine had “jolted it back to life.” 

He would nonetheless seek to make Europeans less dependent on the US military for security. 

Mr. Macron has pushed the EU to focus more on the Indo-Pacific and China’s rising influence in the region. However, he clashed with Washington, London, and Canberra after Australia ditched a massive submarine deal with France. 

He has been guarded over whether he would seek to cooperate with the new US-UK-Australia security alliance — dubbed AUKUS — against China or try and persuade the EU to pursue its own independent policy towards Beijing. — Michel Rose/Reuters

Shanghai residents question human cost of China’s COVID quarantines

REUTERS

SHANGHAI — Lu, 99, was a long-time resident at Shanghai’s Donghai Elderly Care hospital, her loved ones secure that she was getting round-the-clock care at the city’s largest such center.

That was before coronavirus disease 2019 (COVID-19) struck China’s biggest city last month, the country’s worst outbreak since the virus emerged in Wuhan in late 2019, infecting multiple patients, doctors and care workers at the 1,800-bed facility.

Orderlies posted cries for help on social media, saying they were overwhelmed. Relatives told Reuters that there had been several deaths.

Lu, whose relatives asked that she be identified only by her surname, had coronary heart disease and high blood pressure. She caught COVID and, though she had no symptoms, was being transferred to an isolation facility, her family was told on March 25.

She died there seven days later, the cause of death listed as her underlying medical conditions, her granddaughter said.

Among the questions she has about Lu’s final days was why elderly patients had to be quarantined separately, away from the care workers most familiar with their conditions under China’s quarantine rules.

Her frustrations reflect those of many with China’s no-tolerance COVID policy. Everyone testing positive must quarantine in specialized isolation sites, whether they show symptoms or not.

Shanghai has become a test case for the country’s strict policy. Home quarantine is not an option and, until public outrage prompted a change, Shanghai was separating COVID-positive children from their parents.

From March 1 to April 9, China’s financial hub reported some 180,000 locally transmitted infections, 96% of which were asymptomatic. It reported no deaths for the period.

A Donghai staffer who answered the phone on Sunday declined to answer questions, directing Reuters to another department, which did not respond to repeated calls.

Asked for comment, the Shanghai government sent a local media report with a first-person account of life at one of the quarantine centers. The unidentified author said he wanted to dispel fears that such sites were terrible, saying he received ample meals and medicine but recommending people bring earplugs and eye masks.

The authorities did not offer further comment.

The United States has raised concerns about China’s COVID approach, advising its citizens on Friday to reconsider travel to China “due to arbitrary enforcement of local laws and COVID-19 restrictions.” Beijing dismissed the US concerns as “groundless accusations.”

‘DIDN’T DARE BELIEVE IT’ 

When Lu was being quarantined, the family asked, “Who is going to care for her? Will there be care workers, doctors?”, her granddaughter said. “My grandmother is not someone who can live independently.

“If the care worker had COVID and no symptoms, why couldn’t they stay together?” she said. “The chaos and tragedies happening in Shanghai this time really boil down to cruel policies.”

A relative of Donghai patient Shen Peiying, who gave his surname as Qiu, said he believes the quarantine policy contributed to the April 3 death of the bedridden 72-year-old.

She had not caught COVID, he said, citing test records he saw on China’s health app. After weeks of little communication, staff rang to say Shen had died from a chest infection.

Qiu has refused to consent to her cremation, citing such unanswered questions as what care she received after her regular care worker was quarantined.

“If they were all in quarantine, who was there to take care of the patients?,” Qiu said.

Shanghai is doubling down on the quarantine policy, converting schools, recently finished apartment blocks, and vast exhibition halls into centers, the largest of which can hold 50,000 people. Authorities said last week they have set up over 60 such facilities.

These steps, including sending patients to quarantine sites in neighboring provinces, have been greeted by the public with a mixture of awe at their speed and horror over conditions, prompting some Shanghai residents to call for home quarantine to be allowed.

While Chinese state media has shown hospitals with just two or three patients per room, patients like those sent to Shanghai’s giant exhibition centers say they live side by side with thousands of strangers, without walls or showers and with ceiling lights on at all hours.

Videos on Chinese social media have shown hastily converted quarantine sites, including a ramshackle vacant factory where a number of camping beds were placed, a site made out of shipping containers and a school with a poster saying blankets and hot water were not available.

A source verified the first video. Reuters could not independently verify the others.

Management of such sites has been a concern.

One viral video last week showed patients at a site called the Nanhui makeshift hospital fighting for supplies. Reuters could not reach the facility on Sunday for comment.

Among those posting on social media was Shanghai resident Li Tong, who asked for help after his wife was sent there. He said things got better when more staff arrived to organize the patients but that he was shocked by what the videos showed and what his wife told him.

“I didn’t dare believe it, that Shanghai in 2022 could be

like this,” he said. — Brenda Goh/Reuters

Ukraine conflict hurts Russian science, as West pulls funding

Arctic permafrost. -- Image via Brocken Inaglory/CC BY-SA 3.0/Wikimedia Commons

LONDON — Dozens of international scientists have arrived each year since 2000 at Russia’s remote Northeast Science Station on the Kolyma River in Siberia to study climate change in the Arctic environment.

Not this year, though.

Following Russia’s invasion of Ukraine, Germany’s Max Planck Institute for Biogeochemistry froze the funding used to pay personnel at the research station and to maintain instruments that measure how quickly climate change is thawing Arctic permafrost and how much methane — a potent planet-warming gas — is being released.

The funding freeze will probably lead to an interruption of the continuous measurements at the station dating back to 2013, compromising scientists’ understanding of the warming trend, said Peter Hergersberg, a spokesperson for the Max Planck Society, which is funded by the German state.

“[Russian] colleagues at the Northeast Science Station try to keep the station running,” Mr. Hergersberg said. He declined to say how much funding was withheld.

Reuters spoke with more than two dozen scientists about the impact of the Ukraine conflict on Russian science. Many expressed concern about its future after tens of millions of dollars in Western funding for Russian science has been suspended in the wake of European sanctions on Moscow.

Hundreds of partnerships between Russian and Western institutions have been paused if not canceled altogether, the scientists said, as the invasion has unraveled years spent building international cooperation following the Soviet Union’s 1991 collapse.

Many communication channels are closed and research trips have been postponed indefinitely.

The projects affected by the suspension of Western assistance include the construction of high-tech research facilities in Russia, such as an ion collider and a neutron reactor for which Europe had pledged 25 million euros ($27.4 million).

Such technology would unlock a generation of research that could contribute to everything from fundamental physics to the development of new materials, fuels, and pharmaceuticals, scientists said.

Another 15 million-euro ($16.7 million) contribution toward designing low-carbon materials and battery technologies needed in the energy transition to combat climate change has also been frozen, after the European Union halted all cooperation with Russian entities last month.

“Emotionally, I can understand this suspension,” said Dmitry Shchepashchenko, a Russian environmental scientist who studies global forest cover and has been affiliated with the International Institute for Applied Systems Analysis in Austria since 2007.

But for science overall, he said: “This is a lose-lose solution. Global issues like climate change and biodiversity … can hardly be solved without Russian territory and the expertise of Russian scientists.”

FROZEN FINANCES

When the Soviet Union broke apart, Russian spending on science plummeted, and thousands of scientists moved abroad or abandoned their fields altogether.

“We felt as scientists that our work was not appreciated,” said permafrost scientist Vladimir Romanovksy, who moved his work to Fairbanks, Alaska, in the 1990s. “There was practically no funding, especially for field work.”

Russian funding has since improved, but remains far below that of the West. In 2019, Russia spent 1% of its GDP on research and development — or about $39 billion, adjusted for currency and price variation — according to the Organisation for Economic Co-operation and Development (OECD).

Most of that money has been spent in physical science fields, such as space technology and nuclear energy.

By comparison, Germany, Japan, and the United States each spend around 3% of their respective GDPs. For the United States, that amounted to $612 billion in 2019.

Russian science got a boost, though, from partnerships on projects with scientists abroad. Russia and the United States, for example, led the international consortium that launched the International Space Station in 1998.

The head of Russia’s space agency, Roscosmos, said this month it would suspend its participation in the space station until sanctions tied to the Ukraine invasion are lifted.

Russian scientists also helped build the Large Hadron Collider, the world’s most powerful particle accelerator, at the European Organization for Nuclear Research in Switzerland, known as CERN. In 2012, the collider made the breakthrough discovery of the elusive Higgs boson, which until then had only been theorized.

Scientific camaraderie with Europe continued uninterrupted after Russia annexed Crimea from Ukraine in 2014. But CERN’s governing council announced last month it was suspending any new collaboration with Russia.

Germany alone has given some 110 million euros ($122 million) toward more than 300 German-Russian projects over the last three years. A further 12.6 million euros ($14 million) in EU funding was awarded to Russian organizations for another 18 projects focusing on everything from Arctic climate monitoring to infectious animal diseases.

Chemist Pavel Troshin recently won Russian state funding for his part in a Russian-German effort to develop next-generation solar cells to power communication satellites. But, with the German side now suspended, the project is up in the air.

Joint projects “are supposed to be done for the benefit of all the world, and cutting out Russian scientists … is really counter-productive,” said Mr. Troshin, who works at Russia’s Institute for Problems of Chemical Physics.

“I would never expect something like this. It’s shocking to me. I’m upset very much.”

ARCTIC BLACKOUT

Among the more urgent research efforts on hold are projects to study climate change in the Russian Arctic.

“Two-thirds of the permafrost region is in Russia, so data from there is critical,” said Northern Arizona University ecologist Ted Schuur of the Permafrost Carbon Network.

“If you cut off your view of changing permafrost in Russia, you’re really cutting off our understanding of global changes to permafrost.”

That’s alarming for scientists as global warming thaws the long-frozen ground that holds an estimated 1.5 trillion metric tons of organic carbon — twice the amount already in the atmosphere today.

As permafrost thaws, organic material locked within the ice decays and releases more planet-warming gases like methane and carbon dioxide. Scientists fear that such emissions could cause climate change to spiral out of control.

Scientists can use satellites to monitor landscape changes due to thaw, but can’t pick up what’s happening below ground, which requires on-site research, Mr. Schuur said.

Russian scientists have collected and shared permafrost field data for years, but Western researchers aren’t sure if those communication channels will remain open. Those datasets were also patchy, due to limited funding to cover the vast region.

Arctic ecologist Sue Natali, at US Woodwell Climate Research Center, said her project’s plans for boosting Russian monitoring capability is on hold.

“Instrumentation that was supposed to go out this year has been halted,” she said, as her colleagues’ travel plans have been canceled.

The US government has issued no clear directive on interacting with Russian institutions, contrary to the European stance.

A State Department spokesperson told Reuters: “We do not hold the people of Russia responsible [for the conflict], and believe that continued direct engagement with the Russian people is essential — including in science and technology fields.”

SCIENCE AS COLLATERAL DAMAGE

Projects under the Russian Science Foundation’s state-funded 2021 budget of 22.9 billion rubles ($213 million) had relied on partnerships with India, China, Japan, France, Austria, and Germany, among others.

A spokesperson did not answer Reuters questions about how the halt in European collaboration would affect its work, saying only that the foundation would “continue to support leading teams of researchers and their research projects.”

European scientists had been helping to build Russian research sites including the neutron reactor and the ion collider near St. Petersburg, said Martin Sandhop, a coordinator on this EU-funded effort called CremlinPlus.

The facilities would help to drive research in fields like high-energy physics, biochemistry and materials science.

But plans for a 25-million-euro project extension are now suspended and Mr. Sandhop’s team is redirecting experts and equipment toward European institutions.

Cremlin’s neutron detectors needed for the planned reactor, for example, are now going to a facility in Lund, Sweden.

Even if Russia manages to complete the expansion works, it’s unclear how valuable the work will be without the suite of tools at Western institutions to analyze the data.

Physicist Efim Khazanov at the Institute of Applied Physics in Nizhny Novgorod, near Moscow, said not having access to European equipment would hurt his work using a high-energy laser to study topics such as the structure of spacetime in a vacuum, which could expand our understanding of the universe.

Mr. Khazanov was among thousands of Russian scientists who signed an open letter, posted on the independent online science publication Troitskiy Variant, saying Russia had “doomed itself to international isolation” with its invasion of Ukraine.

Many Russian scientists also fled the country, said Alexander Sergeev, head of the Russian Academy of Sciences, according to Interfax state news agency.

The protest letter was temporarily removed from the site after Russia passed a law March 4 criminalizing “fake news” on the Ukraine campaign.

That day, a letter was published on the state Russian Rectors’ Union website in support of Russia’s invasion and signed by more than 300 leading scientists, who have since been suspended from European University Association membership.

While foreign funding represents just a small part of Russia’s scientific spending, its scientists relied on that money to keep projects and careers afloat.

“Those joint research grants were helping a lot of Russians,” lamented Russian geographer Dmitry Streletskiy, at George Washington University in Washington, D.C. “I’m just surprised the EU is targeting scientists, which is not the right crowd to target.” — Gloria Dickie and Dasha Afanasieva/Reuters

Pag-IBIG Fund on the go

Top executives of Pag-IBIG Fund held a send-off of their mobile branch called Lingkod Pag-IBIG On Wheels. The mobile branches will bring Pag-IBIG services closer to more members and serve as a quick-deploy assistance vehicle to calamity-stricken areas when necessary. Pag-IBIG Fund Board Chairman and Housing Department Secretary Eduardo D. del Rosario and Pag-IBIG Fund CEO Acmad Rizaldy P. Moti led the send-off ceremony, along with other members of the Pag-IBIG Fund Board of Trustees and officials at the DHSUD grounds in Quezon City on Thursday (April 7).

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[B-SIDE Podcast] Navigating the NFT gold rush

Follow us on Spotify BusinessWorld B-Side

Non-fungible Tokens (NFTs) in the form of both digital art and play-to-earn gaming assets have come under fire for their price volatility and vulnerability to frauds and scams.

This March, hackers stole around $600 million from the Ronin blockchain network that supports Axie Infinity, a play-to-earn game with 3 million daily active players, 35% of whom are Filipinos.

Given the game’s large, Philippine-based demographic, the Bangko Sentral ng Pilipinas cautioned the public against dealing hastily with digital tokens.

“If you look at the space right now, it’s still very raw. Nobody has a full grasp of [how play-to-earn] really works,” said Renz Carlo Chong, chief executive officer and co-founder of digital asset production factory BreederDAO.

In this B-Side episode, Mr. Chong talks to BusinessWorld reporter Brontë H. Lacsamana about the opportunities for NFT asset production in the Philippines amid increasing risks.

“It’s really interesting because nobody knows where the space will head towards or how it will develop over the next few years,” he said.

Recorded remotely in March 2022. Produced by Brontë H. Lacsamana, Earl R. Lagundino, and Sam L. Marcelo.

Related story: “Filipinos ride NFT gold rush before the predicted bust”

Follow us on Spotify BusinessWorld B-Side

How SMDC’s Joy Residences ticks all the boxes of any investor’s checklist

Following the property’s highly successful launch, SMDC announces Phase 2 of Joy Residences

It is no coincidence that the savviest real estate investors are also the most astute. They do their homework early on potential assets, and they maximize returns by asking the right questions. Is the development future-proof? Is it sustainable? Will the area grow further and, in turn, drive up the property’s value?

Whatever the qualifications may be, SM Development Corp. (SMDC)’s Joy Residences passes all the marks with flying colors. Joy Residences belongs to SMDC’s roster of vertical garden communities, and boasts of the unparalleled convenience and integrated lifestyle it offers within Baliwag, Bulacan.

If the development’s remarkable sales performance is any indication — selling out almost all of its units shortly after its launch — then SMDC’s Joy Residences is, without a doubt, the fulfillment of any real estate investor’s dreams, be it for end-use or leasing.

Exceptional “15-minute city living” experience

Once known as a bastion of heritage and history, the first-class municipality of Baliwag, Bulacan has since evolved into a progressive locale that nurtures several flourishing industries, including furniture and automobile. The storied past and promising future of Baliwag makes SMDC’s Joy Residences perfect for those looking for a place rich in culture and opportunity, yet with a more relaxed and laid-back pace.

Living in SMDC’s Joy Residences means being granted today’s most sought-after integrated lifestyle. The setup embodies the “15-minute city” concept, where everything you need is just around the corner. It only takes a few steps to go shopping at SM City Baliwag, to attend classes, perhaps, at the National University, and to get to wherever you need to be through the SM City Central Terminal located across Joy Residences. Around the master-planned neighborhood, as well, are key institutions, including banks, hospitals, and government offices. This is exactly the advantage of accessibility investors are looking for, and then some.

Well-appointed spaces, through and through

Rounding off the versatility of the neighborhood is Joy Residences’ wide array of top-tier amenities. The development presents everything one seeks in a warm community — from interconnected linear parks for some me-time strolls, to a multipurpose covered court that encourages a well-balanced lifestyle.

There are also pools, a children’s play area, an exclusive park, and a clubhouse, among others, where you could make the fondest of memories with friends and family.

On top of it being in a prime, strategic location, it’s Joy Residences being a warm community that instantly catches the fancy of any homebuyer or real estate investor.

Find joy in accessibility, security, and profitability 

The joy of adventure is at your fingertips with domestic and international travel made easy. Visit loved ones in various parts of Luzon with the nearby North Luzon Expressway (NLEX), which now also connects to South Luzon Expressway (SLEX). Explore the country and the world via the Clark International Airport, or the upcoming Bulacan International Airport.

Much like any property under the SMDC portfolio, as well, Joy Residences commands a high real estate value, primarily because it’s exceptionally managed and professionally maintained. You are assured that your investment is well taken care of, safe, and secure, so that you can focus more on the things that spark joy for you.

If you are looking to generate passive income and, in turn, financial security for yourself, SMDC Prime Key Leasing has you covered. The official leasing arm of SMDC provides leasing management services to help you ensure maximum yields over time.

Many have already recognized the promise of Joy Residences as a realization of their innermost aspirations. To accommodate more investors looking to own a piece of this community, SMDC has announced the introduction of more units opening under Phase 2 of Joy Residences this April. That’s another chance for you to choose and invest in a joyful future.

To learn more about SMDC’s Joy Residences, follow SMDC on Facebook, Instagram, YouTube, and Twitter.

 

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Asian Hospital, Inc. announces schedule of annual stockholders’ meeting

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Global Ideas: Unlocking your business with AI

Adopting AI (Artificial Intelligence) may be one of the biggest ways to advance a business’ digital transformation but at its best, managers should see it as a way to help, not replace workers.

“I think where AI is super powerful is not in isolation, but as part of a human-centered workflow where it helps to augment the humans’ judgment calls,” said Stef Sy, CEO and founder of leading data technology consultancy firm Thinking Machines, at Makati Business Club’s “Unlocking Your Business With AI” event on March 28.

The event was organized by the Makati Business Club’s Global Ideas Committee, which aims to challenge traditional perspectives of the local business community with the latest industry trends and developments around the world. AI is machines programmed to “think” and “learn” — mimicking human intelligence — to do tasks better and better.

“There is a common interest among the business community to better understand the applications of digital transformation, and it’s important to recognize how AI enhances digital transformation processes and the decision-making associated with it,” said Jaime Alfonso Zobel de Ayala, head of Business Development at Ayala Corp. and MBC Global Ideas Committee chair.

The “human-centered workflow” applies from the beginning. For companies who are starting with AI adoption, EastWest Bank’s Senior AVP and Executive Director Isabelle Yap advises business leaders to not only work with data scientists, but to “have a team that is able to clearly translate your business needs to data experts.”

Ms. Sy added, “Businesses do not only need someone who can code, but someone with strong analytical skills of the industry they are in to help inform a company’s AI framework.”

Thinking Machines assisted EastWest Bank in launching its “ATM Auto-Reconciliation Project”, which used AI to detect fraud and predict which of the bank’s ATMs are broken down. This AI-adoption project improved EastWest Bank’s operations and customer experience by automating its systems for 400+ ATMs nationwide and streamlining 2 million monthly customer transactions, which were done manually in the past and was prone to errors, according to Ms. Yap. She added that adopting AI for its bank operations has allowed their staff more time to focus on other tasks, which boosted productivity.

Nicolas Bivero, co-founder of Penbrothers and MBC Global Ideas committee member, moderated the discussion.

To learn more about AI solutions for business, listen to episode 1 of MBC’s Global Ideas podcast on Spotify and Apple Podcasts — featuring Bivero, Sy and Yap.

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Empowering women-led MSMEs to drive significant growth to PHL economy

Empowering women-led micro, small and medium enterprises (MSMEs) by democratizing access to financial tools and services will result in a significant boost to the local economy.

During the “Promoting Women and Financial Inclusion Today” webinar hosted by the European Chamber of Commerce Philippines, government leaders from the Bangko Sentral ng Pilipinas (BSP) and the Senate, as well as executives of leading open finance platform UBX, and insurance provider Pru Life UK, underscored the huge benefits in including women entrepreneurs into the country’s financial systems.

Global studies conducted by the International Finance Corp. (IFC) and the Organisation for Economic Co-operation and Development (OECD) found that male-led businesses have more access to business financing than their female counterparts.

And yet, women entrepreneurs, according to a “Digital Readiness Study” conducted by the Department of Trade and Industry (DTI), are motivated to grow their businesses for their families and communities. They just need more knowledge and skills to optimize digital platforms and convert engagement to sales.

“The future of finance is in many ways female,” UBX President and CEO John Januszczak said.

Plugging gender gaps

BSP Deputy Governor of the Financial Supervision Sector Chuchi G. Fonacier said bridging gender gaps by empowering women to become entrepreneurs and democratizing access to finance for female-led businesses are important areas that the central bank wants to address.

“One area where there has been substantial exchange and sharing of ideas and initiatives between the BSP and its stakeholders is empowering women to become successful entrepreneurs in the MSME sector. The BSP recognizes the important role of MSMEs in the economy, and in line with this, the BSP has implemented a wide range of policies and regulatory relief measures to support them — particularly as they have been among the most vulnerable sectors during the pandemic,” Ms. Fonacier said.

These include measures that provide incentives to supervised financial institutions to extend financial relief to borrowers, initiatives that incentivize bank lending, and endeavors that promote continued access to lending and financial services, among others.

“The BSP continues to promote the adoption of innovative MSME financing approaches by banks such as the agriculture value chain financing and supply chain financing to direct much needed funds for this sector,” Ms. Fonacier said.

Ms. Fonacier explained that empowering women entrepreneurs also involves financial literacy measures, as this will equip them with the right knowledge to tap the right tools for their financial needs.

“Financial literacy promotes economic empowerment of women as they aspire to become leaders and agents of change, financial inclusion, and sustainability. Financial literacy leads to growth and development in women welfare and, in turn, contributes to economic growth. Financial feminism through financial literacy presents an opportunity not only to reduce gender gaps in pay, investing, and wealth but also to use women’s increasing financial power to align with the goals and actions required to build a sustainable and equitable future,” Ms. Fonacier said.

Significant driver

For her part, Senate Committee on Women, Children, and Family Relations Senator Risa Hontiveros lamented that the pandemic magnified the vulnerabilities of Filipinas.

“We must expand the opportunities for women, especially in financial inclusion. Hindi lang pinto ang dapat pagtutulungan buksan, pati bintana. We can find solutions to common problems of limited access to financing support, training, business development services, and technology that will enhance the competitiveness of women-led micro, small and medium enterprises,” Ms. Hontiveros said.

Ms. Hontiveros also called on the government to enhance its support for the development of digital solutions that democratize access to financial services for women entrepreneurs, noting that the majority of enterprises in the Philippines are female-led.

UBX Managing Director for Banking Services Anne Yosuico agreed, saying that it is imperative for the finance sector to empower women-led businesses as this leads to significant growth to the broader economy.

Citing a McKinsey Global Institute study, Ms. Yosuico said addressing gender gaps could add between $12 trillion to $28 trillion to the global economy, which is larger than the combined economies of the US and China.

World Bank data shows that the Philippines is one of three countries with more female sole proprietors than men. In fact, before the pandemic, 55.8% of business name registrations were women-owned and run, according to data from the DTI.

Furthermore, 64% of MSMEs assisted by the DTI Negosyo Centers were led by women. Another 64% of the 5.8 million individual members of the cooperatives under the National Association of Training Centers for Cooperatives (NATCCO) are female.

“If you look at the potential impact of women, it is game changing,” Ms. Yosuico said. “This investment in women whether it’s through education or targeted financial services — will result in an impact of this scale.”

Ms. Yosuico emphasized that UBX has been in the business of empowering women entrepreneurs through its open finance platform, considered to be the leader in the Philippines.

Through open finance, participating banks and other financial institutions are able to tailor financial products and services to the needs of women.

“There are so many other things that we can do. We can start to look at how women entrepreneurs can also enable other women entrepreneurs. We can provide focused resources and services aimed at enabling women. Most of all, participation and representation matters, so where you are — you have to keep the conversation going. Doing this will open more access for women, especially women entrepreneurs,” Ms. Yosuico said.

For her part, Pru Life UK Chairperson Ida Tiongson said it is imperative for the Philippines to address the four major problems of women entrepreneurs, which she listed as lack of money, lack of confidence, lack of support, and lack of time. These four, she said, can be addressed by promoting financial literacy among women.

“Helping women will have a domino effect on the economy,” Ms. Tiongson said. “The bottom line for all of us is education.”

M.A.X.: ‘Media as Authors of eXperience’ event is back for its 5th installment

TOMCAT-UST’s annual event, Media as Authors of eXperience or M.A.X., returns on April 12, 2022 for its second virtual installment to direct students in responsible media consumption, and uncover what potential lies behind the media industry.

First initiated in May 2018, the event has tackled various media-relevant topics, and now going deeper on today’s media scene. As it dynamically grows, M.A.X. 2022 presents a three-part discussion in a one-day event that features respectable media personalities and professionals. This year’s edition is named #PrimeOfInfluence, inspiring its audience to navigate the current digital reality with limitless passion for their craft.

If you possess an interest in aiding yourself with media literacy, check out TOMCAT-UST’s social media pages @TOMCATust. — Samantha Tawat and Claudia Ramos

Refocus enables Filipino entrepreneurs and young professionals to jump-start digital marketing careers

The Philippines continues to see the rise of digital marketing among many businesses. In 2021, it was found that 92% of Filipinos shopped online while another 71% buy through brand websites and social media platforms. Businesses also continued to spend more money on social media ads while Filipinos are first in Asia in terms of average daily time spent over the internet.

Refocus, an online education technology company, sees the potential of many Filipinos to leverage this opportunity. Whether a regular Juan, a fresh graduate, an entrepreneur, or a young professional, anyone can jumpstart his or her digital marketing careers in hopes to find a better job or way of earning or prepare for bigger roles in the digital marketing field.

According to LinkedIn’s Emerging Jobs Report, jobs evolve, and new ones emerge as technology creates new opportunities and industries. In the Philippines alone, the research revealed that upskilling is critical to the Philippines’ growth and the companies that succeed are the ones that make the workplace conducive for continuous learning.

“Digital marketing has become an in-demand industry that many, if not all, companies have come to realize they need to succeed today. Regardless of the industry, companies see the benefits of utilizing the potential of digital marketing in helping companies reach their goals. However, with these possibilities comes the challenge of many to find an end-to-end learning experience that can give them the exposure needed as if already in the real world,” said Roman Kumas Vyas, founder of Refocus.

There are many possible free and paid courses online that consumers can choose from, but it is different and much more beneficial if a program can provide users the needed exposure to industry leaders and potential corporations that can hire them after they graduate from the course. Refocus aims to provide its students with an education that provides further employment opportunities and increases their potential to earn.

Upskilling the Filipino workforce

“We’re not only here to educate and equip our students with the right digital marketing knowledge and skills. We are here to help them learn, practice, and eventually gain employment at companies looking to beef up their marketing teams. We have set the goal of educating one million students by 2026. Our team is building a system that will be able to face all the challenges, risks, and opportunities,” emphasized Mr. Vyas.

Refocus’ digital marketing program aims to help a person with zero knowledge and experience in marketing to become a specialist viable for employment in any company. It offers an online program that helps students understand, practice, and immerse themselves in various aspects of digital marketing in a span of nine months. Graduates earn a certification once they finish the program. Students are gathered in communities and learn new job-ready skills with the help of Refocus’ corporate partners and curators.

In addition, Refocus’ program is designed to meet the standards and needs of real employers who seek qualified candidates. “The program we offer at Refocus are developed to meet global education requirements and be locally relevant. This is why the industry experts and top professionals we work with in the course are all local, top-notch and able to provide our students with real-life cases that will help them learn from the very best,” stated Mr. Vyas.

Increasing employment potential through digital marketing skills

The digital marketing program offered by Refocus features cognitive, affective, interpersonal, and psychomotor skills. Students will not only learn the basics of digital marketing but even imbibe and practice the soft skills needed to become a great digital marketing specialist.

From job finding skills to having a growth mindset, Refocus wants to inspire current and potential students with the vast opportunities digital marketing offers. Interpersonal skills are likewise practiced by working in a team for particular digital marketing tasks.

Furthermore, students are given the opportunity to access necessary software programs to help them better understand and practice digital marketing. From digital marketing strategy to content creation, performance marketing, paid social efforts, customer relationship management, SEO, Social Media Marketing and Analytics, Refocus has truly made learning digital marketing accessible to Filipinos.

“We firmly believe that students learn best when they practice what they learn. Our digital marketing program is just that – theoretical and practical activities that will equip our students the confidence, determination, and necessary skills to make them competitive in the market,” said Mr. Vyas.

More banks signal intent to sell NPAs

FREEPIK

By Luz Wendy T. Noble, Reporter

ANOTHER asset management company (AMC) has been given regulatory approval to buy banks’ bad assets amid the pandemic.

This as more banks expressed intent to avail themselves of the incentives under the Financial Institutions Strategic Transfer (FIST) Law as they seek to improve asset quality by disposing of nonperforming assets (NPAs).

Based on the latest directory of the Securities and Exchange Commission (SEC), there are already six FIST corporations (FISTCs) as of March 24. PI One FISTC-AMC was added to the list.

The Finance department said there were five FISTCs as of January, namely the Philippine Equitable Recovery FIST-Asset Management Corp., Philippine Recovery Co. FISTC-AMC, Inc., Argo Global Servicing Philippines (FIST-AMC), Collectius FISTC-AMC Private Ltd. Corp., and Resurgent Capital (FISTC-AMC), Inc.

Republic Act 11523 or the FIST Law was signed in February last year and allowed for the creation of SEC-registered AMCs that can help banks clean their balance sheets after the rise in bad assets during the pandemic.

Assets that will be recognized as nonperforming until Dec. 31, 2022 will be eligible to be sold under the law to FISTCs.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said they have received applications for validation of a master list of nonperforming assets from 14 banks. This was higher than the 11 banks as of January.

So far, the BSP has validated four banks’ final master list of eligible NPAs, while the rest are still in various stages of evaluation, Ms. Fonacier said.

“Based on latest simulation, the implementation of the FIST Act is projected to result in disposal of NPAs consisting of nonperforming loans (NPL) of P157.2 billion and Real and Other Properties Acquired of P49.2 billion under an assumed disposal rate of 30%, similar to that experienced during the 1997 Asian Financial Crisis,” Ms. Fonacier said in a Viber message.

Ms. Fonacier said they have not yet received an application for issuance of Certificate of Eligibility from BSP-supervised financial institutions on the transfer of NPAs pursuant to the FIST Act as of now.

“However, submission of master list applications to the BSP by these banks signifies their intention to avail of the incentives under the said law,” she said.

The Certificate of Eligibility of a financial institution looking to sell NPAs will be provided to the SEC and Bureau of Internal Revenue for reference on tax incentives.

Among big banks, Philippine National Bank (PNB) and Rizal Commercial Banking Corp. (RCBC) said they are interested in selling NPAs through the FIST Law.

“We are considering offloading consumer and business loans which are not susceptible to the normal collection process and those will take too much time to collect,” PNB said in an e-mail to BusinessWorld.

“RCBC is looking to offload some of its assets through the FIST Law, as we would like to take advantage of the investors’ increased appetite to invest in distressed assets, given the tax incentives that they can avail,” the Yuchengco-led lender said in an e-mail.

When asked, BDO Unibank, Inc. and Metropolitan Bank & Trust Co. said they are not keen on tapping the provisions of the FIST Law.

Latest BSP data showed the NPL ratio of the banking industry hit a three-month high of 4.24% in February. Bad loans rose 2.38% to P472.774 billion from a year earlier.

During the pandemic, the NPL ratio hit a 13-year high of 4.51% from July to August 2021, which is still much lower than the 17.6% seen in the aftermath of the Asian Financial Crisis in 2002.

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