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Russia holds drills in Belarus as West warns of ‘dangerous moment’

STOCK PHOTO | Image by IGORN from Pixabay

BRUSSELS/MOSCOW – Britain said on Thursday the “most dangerous moment” in the West‘s standoff with Moscow appeared imminent, as Russia held military exercises in Belarus and the Black Sea following the buildup of its forces near Ukraine.

Ukraine also staged war games and the United States urged Americans in the country to leave immediately due to increased threats of Russian military action. But leaders on all sides signalled they hoped diplomacy could still prevail in what British Prime Minister Boris Johnson called Europe’s biggest security crisis for decades.

In a new round of talks, Britain’s foreign minister sparred publicly with her Russian counterpart in Moscow, Johnson visited NATO headquarters in Brussels and Germany’s leader met his Baltic states counterparts in Berlin, where officials from Russia, Ukraine, Germany and France were also holding discussions.

Russia, which has more than 100,000 troops near Ukraine’s borders, denies Western accusations it may be planning to invade its former Soviet neighbour, though it says it could take unspecified “military-technical” action unless demands are met.

“I honestly don’t think a decision has yet been taken” by Moscow on whether to attack, Johnson told a news conference with NATO Secretary-General Jens Stoltenberg. “But that doesn’t mean that it is impossible that something absolutely disastrous could happen very soon indeed.”

“This is probably the most dangerous moment, I would say, in the course of the next few days, in what is the biggest security crisis that Europe has faced for decades.”

The way forward was diplomacy, Johnson later told reporters in Poland.

Stoltenberg also said it was a dangerous moment for European security, adding: “The number of Russian forces is going up. The warning time for a possible attack is going down.”

In a new point of friction, Ukraine criticised Russian naval exercises that it said were part of a “hybrid war” and had made navigation in the Black Sea and Sea of Azov “virtually impossible”.

Nearly nine hours of talks between Ukraine and Russia on Thursday failed to produce a breakthrough on signing a joint document, but both sides agreed to keep talking, the chief of staff to Ukraine’s president said after the talks in Berlin.

Russia said the talks with Ukraine, France and Germany on the conflict in eastern Ukraine fell short of any new agreement, and criticised what it called a lack of clarity in the Ukrainian position.

 

‘THINGS COULD GO CRAZY QUICKLY’

The U.S. State Department urged Americans in Ukraine to leave immediately due to what it called increased threats of Russian military action.

“American citizens should leave now,” President Joe Biden told NBC News in an interview. “We’re dealing with one of the largest armies in the world. It’s a very different situation and things could go crazy quickly.”

Asked whether there was a scenario that could prompt him to send troops to rescue fleeing Americans, Biden replied: “There’s not. That’s a world war when Americans and Russia start shooting at one another. We’re in a very different world than we’ve ever been.”

Visiting Moscow, British Foreign Secretary Liz Truss was upbraided by Russian Foreign Minister Sergei Lavrov, who accused her of refusing to listen.

“I’m honestly disappointed that what we have is a conversation between a mute person and a deaf person,” the 71-year-old veteran diplomat told a news conference.

“Our most detailed explanations fell on unprepared soil .. numerous facts that we produced bounced off (the British delegation.”

Truss, who warned of tough Western sanctions if Ukraine was attacked, challenged Lavrov over his assertion that Russia‘s build-up of troops and weaponry was not threatening anyone.

“I can’t see any other reason for having 100,000 troops stationed on the border, apart from to threaten Ukraine. And if Russia is serious about diplomacy, they need to remove those troops and desist from the threats,” she said.

Lavrov said Moscow favoured diplomacy to resolve the crisis.

 

DE-ESCALATION EFFORTS

Truss’s talks in Moscow follow shuttle diplomacy from French President Emmanuel Macron, who visited Moscow and Kyiv this week. In contrast to U.S. and British leaders, Macron has played down the likelihood of a Russian invasion soon.

As part of U.S. efforts to “reduce chances of miscalculation”, the Chairman of the Joint Chiefs of Staff, General Mark Milley, spoke on Thursday with his Belarusian counterpart, a Pentagon spokesman said.

Urging de-escalation, Chancellor Olaf Scholz said Germany and its allies were ready for dialogue with Moscow and wanted peace.

However further military aggression against Ukraine “would have very serious political, economic and strategic consequences for Russia,” Scholz told reporters in Berlin.

Moscow has used the tensions to seek security concessions from the West that would include a promise never to admit Ukraine to NATO and halt the military alliance’s expansion.

The EU said on Thursday it had delivered a single letter in response to Russia‘s proposals on European security, NATO and the United States having earlier portrayed Russia‘s main demands as non-starters.

Stoltenberg said last week that Russia was expected to have 30,000 troops in Belarus as well SU-35 fighter jets, S-400 air defence systems and nuclear-capable Iskander missiles.

Russia held a briefing for military attachés that lasted just eight minutes, and gave notice of an exercise that was already under way, a senior U.S. State Department official said.

“That’s highly inconsistent with agreements for transparency for large military exercises in Europe. That’s bad news,” the official said.

Ukraine launched its own war games on Thursday which, like Russia‘s joint drills with Minsk, will run until Feb. 20.

The Ukrainian forces, whose numbers have not been disclosed, are set to use Bayraktar drones and anti-tank Javelin and NLAW missiles provided by foreign partners. Kyiv was due to receive a further shipment of U.S. military aid later on Thursday. – Reuters

PBB names former Chief Justice Diosdado M. Peralta as Independent Director

Philippine Business Bank announces the election of Chief Justice Diosdado M. Peralta (ret.) as new member to its Board of Directors.

PBB’s Vice Chairman and President/CEO, Rolando R. Avante, announced, “I am pleased to welcome (ret.) CJ Peralta as our Independent Director. His wealth of experience and expertise will be a tremendous asset to PBB’s board and the organization.”

Chief Justice Peralta was appointed by President Rodrigo Roa Duterte as the Chief Justice of the Supreme Court from October 23, 2019 until his retirement on March 27, 2021. He served as Associate Justice of the Philippines from 2009 to 2019; Presiding Judge of the Sandiganbayan from 2008 to 2009; Associate Justice of the Sandiganbayan on from 2002 to 2008; and Judge in the Regional Trial Court – Branch 95 Quezon City from 1994 to 2000.

Before serving in the Judiciary, Chief Justice Peralta was an active member of the academe. He was a guest Lecturer at the Pamantasan ng Lungsod ng Maynila Graduate School of Law and in San Beda College Graduate School of Law; a member of the Corp of Professor – Department of Criminal Law and Lecturer at Philippine Judicial Academy; and a Professor and Reviewer in Criminal Law/Criminal Procedure at University of Santo Tomas, Ateneo De Manila, San Beda College, University of the East, Philippine Christian University, San Sebastian College, and other review centers. He also served as a City Fiscal in Manila and in Laoag; a Barangay Councilman in Barangay Fairview; and a Legal Consultant for Metro Manila Commission. Chief Justice Peralta also provided work in the private sector as a General Manager for Ace Agro Development Corp.; a Senior Assistant Personnel Manager and Assistant Personnel Manager for Cosmos Bottling Corp.; and an Operations Supervisor for Wisdom Management, Inc.

Chief Justice Peralta finished his Bachelor of Science degree in San Juan de Letran in 1974 and his Bachelor of Laws degree in University of Santo Tomas in 1979. He passed the Bar Examination in 1980. On April 9, 2010, he received his Doctor of Laws degree, honorus causa, from Northwestern University, Laoag City, Ilocos Norte.

Moreover, Chief Justice Peralta is the recipient of several commendations. He received the Special Centennial Award in the Field of Criminal Law given by the Integrated Bar of the Philippines and the Supreme Court during the latter’s Centennial Celebration on June 6, 2001, as well as the Judicial Excellence Awards 2002 (Chief Justice Ramon Avanceña Award for Outstanding Regional Trial Court Judge). In recognition of his vast contribution in the field of law, he was also the recipient of the Outstanding Thomasian Alumni Awards for Law (TOTAL Awardee in Law/Justice) on August 2, 2008, which was the highest award bestowed by the University of Santo Tomas to an alumnus.

The appointment of Chief Justice Diosdado M. Peralta (ret.) as the new Independent Director of Philippine Business Bank was effective on January 19, 2022.

 


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ASUS launches ProArt StudioBook Pro 16 and StudioBook 16 for creators and professionals

Professional grade NVIDIA RTX Studio laptops with world’s first 16” 4K OLED HDR 16:10 PANTONE Validated and Calman verified display for exceptional color accuracy

ASUS Philippines recently unveiled their ASUS OLED creator lineup that includes both ProArt StudioBook Pro 16 and StudioBook 16 OLED. These pair of NVIDIA RTX Studio laptops are targeted not only to creative professionals but also to architects, engineers, game developers, and professionals into data science. Both the StudioBook Pro 16 and StudioBook 16 features the world’s first 16” 4K OLED HDR 16:10 display that is also Calman verified and PANTONE® validated. These workstation laptops are powered by either a powerful 11th Gen Intel® Core™ / Xeon® processor(W7600/H7600) or cutting-edge AMD Ryzen™ 5000 processors(W5600/H5600) and pro-grade NVIDIA RTX™ GPUs ranging from GeForce RTX™ 3060 up to RTX™ A5000 graphics. The new ProArt StudioBook 16 series also features the new ASUS Dial, an intuitive physical controller that offers ultra-precise fingertip control various creative apps.

With the new ProArt StudioBook 16 series, ASUS continues in providing these professionals with ultraportables that delivers powerful performance, exceptional color accuracy, and optimized workflows.

Absolute Precision: World’s first 16” 4K OLED HDR 16:10 display

The new ASUS ProArt Studiobook 16 lineup has the world’s first 16” 4K OLED HDR 16:10 display that is also VESA DisplayHDR™ 500 True Black certified for ultra-high contrast and deep blacks. The 100% DCI-P3 industry-standard color gamut display ensures users are seeing as many vivid, true-to-life colors as possible. For delivering precise color accuracy, this remarkable display is Calman verified, PANTONE® Validated, and has a Delta-E color-accuracy value of less than 2.

Extreme Performance: Powerful Intel® or AMD™ processor, pro-grade NVIDIA RTX™ graphics

ProArt Studiobook 16 / Pro 16 OLED was designed with one goal in mind: to give users all the raw performance they need to handle even the toughest, most resource-hungry projects. It’s equipped with up to a mighty Intel® Xeon® W-11955M processor or up to a powerful AMD Ryzen™ 5900HX processor, one of the world’s fastest SSDs, and has a flexible memory configuration with up to a massive 64 GB of high-speed RAM.

Professional-level 3D graphics processing power is provided by up to an NVIDIA RTX A5000 Laptop GPU, which is based on NVIDIA’ Ampere architecture. It blitzes through the toughest tasks, such as complex CAD models, 3D product design, or high-resolution video editing, thanks to the advanced features in the GPU, including ray tracing and AI acceleration and fast GDDR6 video memory. For outstanding driver stability, the ProArt StudioBook 16 uses NVIDIA Studio Drivers to ensure maximum performance, rock-solid reliability, and wide software compatibility.

Versatile Connectivity: Thunderbolt™ 4, SD Express 7.0, superb I/O ports

With a full complement of I/O ports, connecting the ProArt Studiobook 16 / Pro 16 OLED to user’s studio peripherals, display devices and networks is easy. There is a Thunderbolt™ 4 USB-C® port(IW7600/H7600), a USB 3.2 Gen 2 Type-C® port, with Power Delivery, DisplayPort and VR support, a standard RJ45 Gigabit Ethernet LAN port, the latest HDMI® 2.1 port, and an SD Express 7.0 card reader that puts the connectivity leagues ahead of the pack.

With SD Express 7.0 card reader, ProArt Studiobook 16 / Pro 16 OLED is primed and ready for the fastest ever SD Express cards. Supporting speeds of up to 985 MB/s, these are nearly 10x faster than the original SD cards, making it easier and quicker than ever to transfer large files between devices.

Make Magic Happen: ASUS Dial

Discover new ways to work with the brand-new and exclusive ASUS Dial, an intuitive physical controller that gives users instant and precise fingertip control over parameters in various creative apps. One can easily change brush size, change saturation, adjust layer opacity, or rapidly undo actions. ASUS Dial is currently compatible with four Adobe apps: Photoshop®, Premiere® Pro, Lightroom® Classic, and After Effects®. It’s also fully customizable and there are more compatible apps arriving in the following months.

Promised Stability: ISV Certified, Military-Grade Durability

For creatives, software is key. That’s why ASUS tests and invests in comprehensive ISV (Independent Software Vendor) certification processes to ensure ProArt Studiobook 16 OLED series works as expected with professional applications from the world’s leading software companies.

ProArt Studiobook 16 OLED series meets the ultra-demanding MIL-STD 810H military standard for reliability and durability, undergoing a punishing test regime that includes extended tests for operation in harsh environments.

The Intel variants of the ASUS ProArt StudioBook 16 OLED series will be available later this quarter starting at PHP 164,995.00. For more details, visit our ASUS ProArt StudioBook page or message us at our ASUS Facebook page.

All ASUS ProArt StudioBook 16 OLED series laptops come with a complimentary up to a three-month subscription to Adobe Creative Cloud full suite. Create with no bounds as this membership also includes 100 GB of cloud storage, Adobe Portfolio, Adobe Fonts, and more. Click here to know more about this exciting promo.

Also stay tuned for more news on the incredible ASUS for Business products on the ASUS for Business website. For inquiries, you can also send us a message on ASUS for Business page.

 


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The growing momentum of Philippine fintech

FREEPIK

By Bjorn Biel M. Beltran, Special Features Writer

Technology’s development over the past few decades has been nothing short of a rocket launch: a slow and steady gathering of power in the beginning, a continuous ramp up of momentum towards an ambitious launch into orbit.

Financial technology (fintech) in the Philippines is a clear example. In an e-mail to BusinessWorld, Allen Guo, country manager for the Philippines of Alibaba Cloud Intelligence, said that the industry’s growth has been “nothing short of tremendous”.

The industry, he pointed out, has been steadily growing in recent years, with advancements in digitalization and the availability of smart devices leading the development. The introduction of more online services by banks, rising number of fintech startups and favorable government policies have also helped boost the industry, but COVID-19 served as the tipping point.

“The lockdowns and restrictions brought by the COVID-19 pandemic stimulated a sudden surge in demand for online payment solutions as transactions have increasingly shifted online. In response to this demand, cloud-based fintech products have become a necessary tool not only for businesses but also individuals across the range of daily needs,” Mr. Guo said.

“The growth of fintech in the Philippines has been nothing short of tremendous, particularly if we take into consideration how it has offered viable financial options and solutions to Filipinos amid the pandemic, all while helping boost financial inclusion in the country,” he added.

Yet, the country is still at the lift-off stage. Speaking as the co-founder and chief executive officer of PayMongo, Francis Plaza told BusinessWorld in an interview that fintech development in the country is still in its early stages, likening it to the Internet of the 1990s.

“When you look at the Internet in the 90s, basically the goal of the web was for people to publish information online. That’s the first advent of the technology. Then came in the early 2000s, companies like Google and Facebook made the Internet more interactive. Technologies were built so that we can interact through the web. Now we take it for granted,” Mr. Plaza said.

A recent study by Bain & Company and Facebook found that digital financial services, in particular, have kept Southeast Asian economies afloat. Online payments in the region are expected to go beyond $1 trillion by 2025, driven by the ongoing trend away from physical cash payments and increased usage of e-commerce, as well as further development of new cashless payment methods, particularly for e-wallets and prepaid cards.

In a country where small and medium enterprises (SMEs) comprise 99.5% of all businesses, there is much to be gained by ensuring that such growth will be felt by everyone. Indeed, the Bangko Sentral ng Pilipinas’ Digital Payment Transformation Roadmap for 2020 to 2023 was made to develop a digital payments ecosystem that targets current consumer and business needs to boost digital payments and financial inclusion. One of its key targets is expanding the financially included to 70% of Filipino adults.

Mr. Plaza noted that in his line of business, he still sees a lot of fragmentation in the existing financial services infrastructure, with payments being just one of many avenues for innovation and development. PayMongo, he said, is their effort to develop the infrastructure that might spur others to innovate further.

“The future we see here is that through payments, we enable more businesses to succeed online, they’ll innovate through that, and then they’ll need more financial tools. We will build more, and from simple payments transactions, like the first iteration of the web, it will become something more advanced. People will start taking things for granted, and by then we will have achieved all of these financial goals, including the financial inclusion that leads to financial freedom,” Mr. Plaza said.

The growth of digital payments is but one block in the domino effect. Mr. Guo pointed out that the need for fintech companies to accommodate the rise of cashless payments is also necessitating the growth of cloud technology in the country, which can ensure that payments platforms can handle high volumes of digital transactions with minimal interruption, effectively scale their operations, and deliver increased flexibility in the way their users transact.

“Cloud technology and fintech innovative products are key to ensuring that the supply of services can continue to meet the industry’s growing demand. As such, we see cloud technology to be a viable solution that is helping companies to be more responsive to the needs of the market,” he said.

An exciting time to build
Mr. Guo said that there have been many other initiatives put into place in recent years in a bid to stimulate better financial inclusion in the country. In 2018, the Philippine Identification System ID (PhilSys ID) began its process for registrations. The said process required registrants to have a bank account – a part of the initiative by the Bangko Sentral ng Pilipinas (BSP) to increase the rate of citizens with a bank account.

Then the pandemic happened, and it “became a catalyst for financial digitization born out of necessity.”

“Now, two years post the start of the pandemic, more and more initiatives and programs are being kickstarted across the industry to further buttress its growth. These include partnerships among fintech organizations and tech companies such as Alibaba Cloud,” he said.

Recently, Alibaba Cloud, together with the Philippines’ FinTech Alliance.ph, the premier trade association of digital players in the country’s digital finance sector, announced the launch of the Fintech Industry Sandbox Program earlier February, a new initiative designed to increase local financial institutions’ access to inclusive digital finance.

Alibaba Cloud also partnered with UBX, the fintech venture studio and fund spinoff of UnionBank of the Philippines, to provide eKYC (Electronic Know-Your-Customer) solutions. These products are designed to help local financial institutions boost their efficiency and security through digitalizing the identity verification process. Leveraging Alibaba Cloud’s advanced e-wallet technologies, UBX aims to enable Philippine financial institutions to reach more of the country’s unbanked and build trust remotely.

“Fintech in the Philippines is as promising as it is challenging. But cloud technology has emerged as a viable solution that is helping companies to be more responsive to the needs of the market, especially during the pandemic. For those currently on the sidelines of the financial industry in the Philippines, the time of widespread participation is coming quickly,” Mr. Guo said.

Mr. Plaza pointed out that increasing foreign investor interest in the country’s burgeoning fintech sector can only inspire more entrepreneurs to innovate.

“I’m excited because there will be more startups coming out, and though there are still gaps to bridge in early-stage funding, more and more folks will have the courage to think about entrepreneurship as a viable career path,” he said.

“Which brings me to the opportunities in fintech. Because as more and more businesses start out, as more startups, technologies, and ideas are being built, it will only benefit fintech in general. These companies will need more solutions, they will be integrating into the digital financial ecosystem, they will be providing platforms for others to build on as well. It’s definitely an exciting period to start building,” Mr. Plaza added.

Fintech’s continuing role beyond COVID

Financial technology or fintech has always been playing a pivotal role in transforming finances. It contributed to, among others, enhancing operational efficiency and customer experience in financial services. Adapting to the new normal has only accelerated such functions.

Looking beyond, fintech will continue to fulfill its roles of enabling digitalization across businesses and working towards financial inclusion, which is also a driver of economic recovery and growth towards a post-pandemic world. The Bangko Sentral ng Pilipinas (BSP) is, in fact, aiming to transform 50% of the total volume of retail payments into digital and expand the financially included to 70% of Filipino adults by 2023 under its Digital Payments Transformation Roadmap.

The role of fintech was evident when the lockdown and several restrictions took place to curb the spread of COVID-19. As many businesses started or sped up their digital transformation to adapt to the new situation, fintech has aided them to continue having payment transactions with their customers without physical contact.

The central bank has reported that the volume of monthly digital payments has reached 20.1% in 2020, and monthly digital payments volume for merchant payments grew by 47.8%, while person-to-person monthly digital payments volume increased by 18.1%.

As digitalization continues to expand across industries, businesses in the post-pandemic world would likely be digital and the adoption of fintech could take part in the digitalization of their services.

“There is no arguing that the new economy is digital. Our aspirations for a more inclusive and prosperous post-COVID world necessitate putting in place the critical pillars of a digital economy,” BSP Governor Benjamin E. Diokno said in a keynote speech during a FinTech Alliance virtual forum in 2020. Such pillars, he continued, have given new immediacy to the central bank’s financial inclusion and digital transformation agenda for the sector.

“Fintechs as an innovative provider and enabler of digital financial services will find compelling opportunities in this digital transformation agenda,” he said.

Also part of looking beyond the current pandemic deals with restoring the economy, particularly its growth. Financial inclusion is deemed to be among the factors to drive such recovery, which fintech also has a role to play.

According to Sharmista Appaya, a senior financial sector specialist in the Finance, Competitiveness, and Innovation Global Practice at the World Bank Group, 1.2 billion formerly unbanked adults gained access to financial services over the last decade, decreasing the unbanked population by 35%, which was mainly supported by the increase in mobile money accounts.

She also noted that 1.7 billion adults remained unbanked around the globe. Yet, fintech is nonetheless helping in making financial services further accessible to more people.

In the Philippines, as of the first quarter of 2021, the proportion of banked Filipino adults has reached 53%. These comprised basic deposit and e-money accounts.
“In a world where access to financial services and high-speed broadband internet is not universal or affordable, fintech can democratize access to finance and the world can move closer to achieving financial inclusion,” Ms. Appaya wrote in an article from the World Bank’s website.

And financial inclusion, she added, “is not only a goal in itself, but also a means to an end as an enabler and accelerator of economic growth.”

An article published on the International Monetary Fund (IMF) Blog further substantiated that advances in fintech services, online banking, and mobile money could significantly benefit low-income households and small firms. And such financial inclusion with the help of digital financial services can also support economic growth.

According to the article, previous studies have concluded that extending the reach of traditional financial services to low-income households and small firms “goes hand-in-hand with economic growth and reducing income inequality”. And as noted in the article, by anaylsis, digital financial inclusion could be also linked with higher GDP growth.

“To tap the high potential of digital financial services in the post-COVID era, many factors need to fall into place. Equal access to digital infrastructure (access to electricity, mobile and internet coverage, and digital ID); greater financial and digital literacy; and the avoidance of data biases are necessary for a more inclusive recovery,” it said.

“The pandemic shows that the trend towards greater digitalization of financial services is here to stay,” it added. “To build inclusive societies and address rising inequalities during and after the ongoing crisis, global and national leaders must close the digital divide across and within countries to reap the benefits of digital financial services,” it added. — Chelsey Keith P. Ignacio

Equipping Filipino businesses for the emerging Internet economy

Photo shows PayMongo executives (L-R): Jaime Hing III, chief technology officer; Francis Plaza, chief executive officer; and Luis Sia, chief commercial officer.

While starting their own companies a few years ago, Francis Plaza, Luis Sia, Jaime Hing III, and Edwin Lacierda realized that payments have become one of the biggest bottlenecks of business. To solve this pain point, they collaborated to launch an online payments platform, PayMongo, in 2019.

Having grown their client base to over 9,000 to date, as well as their product suite beyond links that enable sellers to easily accept payments, PayMongo now aims to grow what it calls the Internet economy of emerging markets.

Mr. Plaza, the company’s CEO, shared in an interview that PayMongo’s founders started addressing the pain point by trying to figure out how to make payments easy for everyone, regardless of their expertise in technology.

In building the solutions, Mr. Plaza continued, PayMongo is grounded on the principle that while people have always found ways to make purchases, they need that ability to transfer value between buyers and merchants with little to no overhead in verifying trust.

“Payments isn’t necessarily just that particular time when payments are made. It is this entire life cycle from onboarding to [when] merchants receive their money,” the CEO further stressed.

PayMongo started out with its one-time payment links, wherein merchants can accept Visa, Mastercard, GCash, GrabPay, and over-the-counter payments via SMS, chat, or e-mail. The provider soon expanded its suite with customizable checkout pages, which allows merchants to collect payments online or in-store without any coding needed; application programming interface (API), where payment channels can be integrated into their website or app with just a few lines of code; and e-commerce plug-ins, for fast integration to merchants’ Shopify, Woocommerce, or Magento sites, among others.

“By signing up with us, they are able to meet the basic need that they have: The ability to make transactions on the large scale of the Internet without having the burden of verifying trust every single time,” Mr. Plaza said.

PayMongo is not limiting itself to providing these solutions, nonetheless. As the number of its customers increased due to the pandemic-driven uptick in digital, PayMongo observed that a huge gap exists between businesses using a digital platform to their actual readiness for embarking on digital.

“Our mission is to grow the Internet economy of emerging markets, which is composed of millions of small and medium businesses; and what better way to meet that mission than by helping them grow their businesses on the Internet as well. These will become among our biggest customers in the long run,” Mr. Plaza said.

PayMongo is bringing this boost to businesses through its Accelerator Program, which gives members two months of zero transaction fees from all their sales with PayMongo, plus marketing support and exclusive webinars and content from business experts.

As it empowers Filipino businesses through seamless payment solutions at its core, PayMongo has its sights on building a financial operating system for businesses in the country.

“We realized that by starting out as a payments company, we actually build that one currency that’s more valuable than any peso that goes to the platform, and that currency is trust,” Mr. Plaza explained. “And as businesses trust us more and more, we are in a better position to provide them more financial services.”

The CEO also targets more small and medium businesses to adopt their platform. “[There’s] still a lot of untapped market. One way or another, our goal is for all of these businesses, whatever size, shape, or form, to have some presence on the internet,” he said.

 


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Nov. FDI inflows biggest in nearly 2 years

EURO, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, Jan. 21, 2016. — REUTERS

By Luz Wendy T. Noble, Reporter

NET INFLOWS of foreign direct investments (FDIs) surged to a 23-month high in November, as the reopening of the global economy lifted investor sentiment.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed FDI net inflows in November surged by 96% to $1.095 billion from $559 million in the same month in 2020.

It also grew by 28% from the $855 million in October.   

FDI net inflows registered in November were the biggest since the $1.362 billion logged in December 2019. 

For the first 11 months of 2021, FDI inflows jumped by 52.5% to $9.238 billion, already exceeding the BSP’s $8-billion end-2021 projection.

“The general reopening of the global economy is one major reason, and of course, the improved situation locally with lower COVID-19 (coronavirus disease 2019) cases in the fourth quarter of 2021 helped the rising numbers of FDI and its prospects,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Investor sentiment was lifted by the government’s shift to an alert level system with localized lockdowns, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.   

Metro Manila was placed under the more relaxed Alert Level 2 starting November, as COVID-19 infections showed a downtrend.

BSP data showed foreign investments in debt instruments surged by 109.3% year on year to $896 million in November from $428 million.

Reinvestment of earnings rose by 25.2% to $81 million during the month from $64 million in November 2020. 

Investments in equity and investment fund shares also expanded by 52.4% year on year to $199 million in November from $131 million in the same month in 2020. 

FDIs in equity capital also climbed by 78.8% year on year to $118 million from $66 million. This, as placements increased by 37.9% to $132 million, while withdrawals dropped by 52.8% to $14 million. 

Mr. Asuncion said FDI prospects may be improved in the next few months as more countries contain the Omicron surge.

“I think that FDI trend will continue to improve with the Omicron surge hopefully in the rearview mirror. However, as most health and epidemiology experts say, it is too early to celebrate and that we need to approach the move forward with cautious optimism,” Mr. Asuncion said. 

He said that while the impending monetary policy tightening in the United States will likely be more of an issue to “hot money” than FDIs, long-term investors will be monitoring the country’s leadership change. The national elections will be held on May 9.   

“Real FDI and long-term investments of capital, equipment and hard assets, I believe, will continue to grow as long as continued structural reforms are carried out and pushed by a government with good governance practices in place,” Mr. Asuncion said.

Meanwhile, Mr. Ricafort said the passage of key legislation like the amendments to the Public Service Act (PSA) could also attract more FDIs in the coming months. 

The Congress last week has ratified the bill amending the PSA, which will now allow 100% foreign ownership in industries like telecommunications, airlines and railways.

For 2022, the BSP projects FDI will reach $8.5 billion.

PHL needs to spend better, collect more taxes — World Bank

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter 

THE PHILIPPINE government needs to roll out a fiscal consolidation plan based on the right mix of expanded taxation and productive spending to manage debt racked up during the pandemic, a World Bank economist said.

“To regain policy space, the government will need to start a gradual, fiscal consolidation process,” World Bank Senior Economist Rong Qian said at a Management Association of the Philippines briefing on Thursday. 

“We know from past experience of rapid debt accumulation, countries will need to use a combination of revenue and expenditure measures to reduce the debt-to-GDP ratio. Relying on growth alone will not be enough.”

The Philippine government ramped up borrowings to finance its coronavirus pandemic response in the past two years. The government recorded P11.73 trillion in outstanding debt as of end-2021, growing by 19.7% year on year, preliminary data from the Treasury showed.

This meant the debt-to-GDP ratio is now at 60.5%, higher than the 54.6% a year earlier and slightly above the 60% threshold considered as manageable by multilateral lenders for developing economies. It is also the highest debt-to-GDP ratio since the 65.7% seen in 2005.

Ms. Qian said the pace of fiscal consolidation needs to be studied.

“Too fast consolidation might slow down growth, which will be counterproductive to reduce debt-to-GDP ratio,” she said. “Too slow, it will dampen confidence on government’s commitment to consolidate, while the higher interest payment will prevent productive investment.”

On the revenue side, the government can introduce new taxes, increase existing taxes, and expand tax collection.

As for spending, the government could spend less in areas that produce fewer jobs so it could spend more in areas that do, such as education. The government could also spend better by trying to use fewer resources to get the same outcome, Ms. Qian said.

“Finding the right mix to achieve the inclusive growth agenda needs to be a priority for the next government,” she added.

Finance Secretary Carlos G. Dominguez III has said that the Finance department is reviewing a possible fiscal consolidation plan.

Policy priorities for the Philippines offered by the World Bank also include continuing sound monetary policy, Ms. Qian said, adding that the central bank can closely monitor global recovery so it could continue to keep inflation within target while supporting economic growth.

Inflation eased to 3% in January, the fifth straight month of deceleration, as housing and utilities prices eased, preliminary data from the Philippine Statistics Authority showed. 

This was slower than both the 3.2% in December and the 3.7% in January last year.

The Philippines should also return to face-to-face schooling, improve the country’s access to finance, reduce the barriers to entry of foreign firms, and expand the use of technology, the multilateral bank said.

“Private sector will play an even more important role to drive growth going forward,” Ms. Qian said. “There’s a need to improve access to finance, especially for SMEs (small and medium enterprises), by improving credit information systems, enabling digitalization.”

The government expects the Philippine economy to grow by 7-9% in 2022, while the World Bank’s projection is at 5.9%.

The Philippines could grow faster than recent years amid the potential of agriculture growth, Brain Trust, Inc. Chair and former Socioeconomic Planning Secretary Cielito F. Habito said at the same event.

“There’s much hope for further growth if only we would have a much more outward-looking orientation in the sector,” he said. “We can grow on the fact that we have a large segment of internal demand driving our economy… but now is the time to tap that potential for growth from the world markets.”

Philippine democracy remains flawed amid pandemic 

PHILIPPINE STAR/ MICHAEL VARCAS
The Philippines received a score of 6.62 in the Economist Intelligence Unit (EIU) Democracy Index 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES jumped one spot to 54 out of 167 countries in a London-based think tank’s democracy index last year, as the coronavirus pandemic resulted in an “unprecedented withdrawal” of civil liberties in both developed democracies and authoritarian regimes.

Based on the Economist Intelligence Unit (EIU) Democracy Index 2021, the Philippines under President Rodrigo R. Duterte received a score of 6.62, an improvement from 6.56 in 2020.

The EIU classified the Philippines as a “flawed democracy,” along with nine other countries in Asia.

Philippines climbs by a notch in democracy ranking in 2021

The average regional score in Asia and Australasia dropped to 5.46 in 2021, from 5.62 in 2020, a second straight year of decline and the region’s lowest score since 2006.

The Philippines lagged behind Southeast Asian neighbors Malaysia (39) Timor Leste (43), and Indonesia (52), but ahead of Singapore (66), Thailand (72), Vietnam (131), Cambodia (134), Laos (159), and Myanmar (166).

European countries dominated the “full democracy” classification, with Norway topping the global index with a score of 9.75, followed by New Zealand (9.37), Finland (9.27), Sweden (9.26), Iceland (9.18) and Denmark (9.09).

On the other hand, Afghanistan and Myanmar displaced North Korea at the bottom of the list.

The EIU said the pandemic has compounded many pre-pandemic threats to democracy, citing an increasingly technocratic approach to managing society in Western democracies and a tendency in many backward democracies and authoritarian regimes to resort to coercion.

Maria Ela L. Atienza, a political science professor at the University of the Philippines, said Philippine democracy has been weakened by “too much concentration of powers in the Executive branch” under the current administration.   

“While not the only culprit, President Duterte and his administration have concentrated too much power in his office, threatening the rule of law and the independence of the Judiciary, relying too much on punitive measures and the powers of the military and the police, violating human rights and media freedom, and attacking those labeled as opposition,” she said in a Viber message. 

Ms. Atienza said the government relied heavily on a militarist approach for its pandemic response.   

“The response has also put the blame largely on people who violate the laws but at the same time, those quickly rounded up and punished are poor people who were affected heavily by the pandemic, community organizers and activists while rich people and administration allies who violate health protocols are given a lot of leeway,” she said.

The political analyst said the next administration needs to ensure that government officials and agencies are “accountable to the people and can be checked by other branches and sectors.” 

DROP IN GLOBAL AVERAGE
The EIU said the global average score took a big hit for a second consecutive year, falling to 5.28 from 5.37 in 2020. This was the worst global score since the index first came out in 2006.

Less than half or 45.7% of the world’s population now live in a democracy of some sort, a significant decline from 49.4% in 2020, according to the report.

It said only 6.4% of the world’s population live in full democracies or countries that provide their citizens civil liberties and political freedoms as well as an effective government and political culture.

More than a third of the population live under authoritarian rule, many of them in China.

EIU said China is set to become the world’s largest economy by 2030, which may result in the spread of authoritarian rule around the world and a rollback of democracy globally.   

Mr. Duterte led a foreign policy pivot to China and away from the US when he took office in 2016.

However, less than a year before he steps down, Mr. Duterte appears to have changed his tune. He has thanked US President Joseph R. Biden for donating coronavirus vaccines to the Philippines and restored a visiting forces agreement after suspending it for months. 

UP’s Ms. Atienza said it would be difficult for the next government to continue Mr. Duterte’s foreign policy pivot to China since the majority of Filipinos have unfavorable attitudes towards the Chinese government. 

“While China is an economic power, it has not been successful in forging greater people-to-people exchanges and interactions, though it is trying, compared with other powers that are able to establish strong linkages not only with national elite but with the people themselves,” she said.

Japanese Film Fest returns online

THE JAPANESE Film Festival (JFF) returns this year with a virtual edition, featuring 20 films depicting Japanese culture across different time periods.

The online film festival runs from Feb. 14 to 27 through its online website, https://watch.jff.jpf.go.jp/.

In March last, the film festival was held in a mixed physical and online setup. This year it will be held purely online. Formerly known as Eiga Sai, the festival — which has iterations in other Southeast Asian countries, India, Russia, and Australia — was rebranded as the Japanese Film Festival.

According to the film festival’s website, the first online film festival, called JFF Plus: Online Festival 2020-2021, recorded more than 220,000 views from 20 countries worldwide.

“Films have intangible impacts on our society. We watch films to be entertained, to be educated, to escape from the humdrums of daily life, and to travel beyond space and time,” Ben Suzuki, director of the Japan Foundation Manila, said at an online press conference on Feb. 8.

Mr. Suzuki added that “films are a powerful vehicle for cultural exchange and bilateral relations” and “strengthen ties between Japan and the Philippines through moving images.”

“We are working to expand our activities to the world from both the physical and online perspectives,” JFF producer of Japan Foundation Tokyo Masafumi Konomi said, speaking through an interpreter.

This year’s film festival lineup includes Japanese drama, comedy, animation, thriller, documentaries, and classics.

The dramas are: Takafumi Hatano’s Ozland (2018); Yuichiro Hirakawa’s Until the Break of Dawn (2012); Yukiko Mishima’s Bread of Happiness (2012); Satoko Yokohama’s Ito (2021); Takeshi Furusawa’s ReLIFE (2017); Yukiko Sode’s Aristocrats (2021); Miwa Nishikawa’s Under the Open Sky (2021); Soushi Matsumoto’s It’s a Summer Film! (2021); Ryota Nakano’s Her Love Boils Bathwater (2016); Shuichi Okita’s The Chef of South Polar (2009); and Atsuhiro Yamada’s Awake (2020).

The documentaries are Takashi Innami’s The God of Ramen (2013), and Eiji Sakata’s SUMODO: The Successors of Samurai (2020). The animated films are Yasuhiro Yoshiura’s Time of EVE the Movie (2010); and Patema Inverted (2013). The period dramas are Isshin Inudo and Shinji Higuch’s The Floating Castle (2012); and Haruki Kadokawa’s Mio’s Cookbook (2020).

The other films are Hisashi Kimura’s thriller Masked Ward (2020); Shinobu Yaguchi’s comedy Happy Flight (2008); and Akira Kurosawa’s classic Rashomon (1950).

The films have subtitles in Arabic, Burmese, Central Khmer, English, German, Hungarian, Korean, Indonesian, Italian, Malay, Portuguese, Spanish, Thai, and Vietnamese. Each film will be on view for 48 hours upon its premiere.

In addition to the film screenings, there will be online discussions under the heading “Let’s Talk about Japanese Films!” These will be available to interested participants even outside the Philippines. Joining the discussion are film professionals who will talk about the influences of Japanese cinema in the Philippines. The first online discussion, “Your Guide to Japanese Films,” will be held on Feb. 14, 2-4 p.m.; while the second discussion, “Inside the World of JFF 2022 Films,” will be on Feb. 22, 5-7 p.m.

Details on the films, and registration to the online discussions are available on the JFF+ portal website (https://jff.jpf.go.jp/watch/jffonline2022/philippines/). For more information, visit www.jfmo.org and Facebook. — Michelle Anne P. Soliman

Jennifer Lopez has rom-com ‘homecoming’ with Marry Me

A SCENE from the film Marry Me — IMDB.COM

LONDON — Jennifer Lopez plays a familiar role in the new film Marry Me, portraying a pop superstar whose love life is scrutinized by millions.

Often snapped by photographers herself, in the movie Ms. Lopez plays Kat Valdez, half of a music superstar couple with her partner Bastian.

The two plan to wed in front of a global audience, streaming their nuptials to their fans, but shortly before, Kat learns Bastian has been unfaithful and instead marries a stranger in the crowd, Charlie, played by Owen Wilson.

“This wasn’t a role where I had to research what it was like to be a famous recording artist … I understand what all of that is already,” Lopez said during a virtual press conference.

“The difficult part was… the idea of showing what it’s really like inside my bedroom when something goes wrong and you suffer a heartbreak like this in front of the whole world and the media kind of goes to town on you.”

Released in time for Valentine’s Day, the movie is a rom-com “homecoming” for Lopez, known for films like Maid in Manhattan, The Wedding Planner, and The Back-up Plan.

“I, as a moviegoer, love romantic comedies. Those are some of my favorite movies of all time, whether it’s When Harry met Sally or Prelude to a Kiss or any of these type of movies,” Lopez said.

“All of those movies are what I grew up on in a way, and I love them so much. And so it is kind of a homecoming for me because I haven’t done one in a few years.”

Colombian singer Maluma makes his acting debut in the film, playing Bastian.

“We both love music. We both love touring, (performing) and everything. So, I felt pretty connected,” he said of his character, though dismissing Bastian’s unfaithfulness.

“I enjoyed … the experience of being in the movie … even making the music was beautiful too.” —  Reuters