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Kazakh president steps up purge of security agency after mass unrest

Kazakhstan President Kassym-Jomart Tokayev. Image via Kremlin.ru/CC BY 4.0/Wikimedia Commons

ALMATY — Kazakhstan’s president fired two more top security officials on Sunday after the worst unrest in three decades of post-Soviet independence and authorities said the situation was stabilizing, with Russian-led troops guarding key facilities.

The sacked officials were deputies to former intelligence chief Karim Massimov, who was arrested on suspicion of treason after violent protests swept the oil- and uranium-producing Central Asian republic that borders Russia and China.

Thousands of people have been detained and public buildings torched during mass anti-government protests in the past week. President Kassym-Jomart Tokayev issued shoot-to-kill orders to end unrest he has blamed on bandits and terrorists.

Russian and state media reported 164 people were killed during the clashes, citing a government social media post. But health and police authorities did not confirm the figure, and the social media post was then deleted.

The internet has been restricted and telecoms patchy, making it difficult to check figures and confirm statements.

No single group has emerged to speak for the protesters. Demonstrations against a fuel price rise began a week ago before erupting into a wider protest against Mr. Tokayev’s government and the man he replaced as veteran president, 81-year-old Nursultan Nazarbayev.

At Mr. Tokayev’s invitation, a Russia-led alliance of ex-Soviet states — the Collective Security Treaty Organization (CSTO) — sent troops to restore order, an intervention that comes at a time of high tension in Russia-US relations ahead of talks this week on the Ukraine crisis.

Mr. Tokayev’s spokesman said on Sunday he thought the forces would not be in Kazakhstan for long, and possibly no more than a week or even less.

Russian President Vladimir Putin and other leaders of CSTO countries will hold a video conference on Monday to discuss the crisis in Kazakhstan, the Kremlin said.

The violence has spurred speculation of a rift in the ruling elite, with Mr. Tokayev fighting to consolidate his authority after firing key officials and removing Nazarbayev from a powerful role as head of the Security Council.

The president’s website announced the sackings of Marat Osipov and Daulet Ergozhin as deputy heads of the National Security Committee. It gave no explanation in a terse statement late on Sunday.

Their arrested former boss, Mr. Massimov, a two-time prime minister, was seen as close to Mr. Nazarbayev. Authorities have not disclosed any details of the allegations against him. He and his lawyer could not be reached for comment.

In a statement meant to quash talk of a rift, Mr. Nazarbayev’s spokesman said Mr. Nazarbayev had been in the capital Nur-Sultan throughout the crisis and chose himself to give up his security council post to Mr. Tokayev to help ease the crisis.

“[He] and the head of state have always been ‘on the same side of the barricades’… In these difficult days they have demonstrated the monolithic nature of state power for all of us,” the statement said, calling for people to rally around Mr. Tokayev.

Former Prime Minister Akezhan Kazhegeldin told Reuters that Mr. Tokayev needed to dispel doubts about who was really in charge. “I think a lot of people in social networks, critics, continue to say he’s a nominee of Nazarbayev, that Nazarbayev is standing behind his back and manipulating him,” he said. “Now he has complete formal executive power, the question is how he will deploy it. He needs to take command.”

Mr. Tokayev is likely to name new government members when he addresses parliament on Tuesday, his spokesman said.

He awarded prizes for bravery to 16 police and army officers killed in the violence.

IMAGE SETBACK
“The situation has been stabilized in all regions of the country,” the presidential office said, adding law enforcement agencies had seized back control of administrative buildings.

“The counter-terrorist operation … will be continued until the complete elimination of the terrorists,” Deputy Defense Minister Sultan Gamaletdinov said.

The violence has dealt a blow to Kazakhstan’s image as a tightly controlled and stable country, which it has used to attract hundreds of billions of dollars of Western investment in its oil and minerals industries.

Police said 6,044 people had been arrested in connection with the unrest.

Russian paratrooper commander Andrey Serdyukov said the CSTO force had finished deploying to Kazakhstan and would remain there until the situation stabilized completely.

“A number of strategic facilities have been transferred under the protection of the united peacekeeping contingent of the CSTO member states,” the presidential office said.

Mr. Serdyukov said the troops were guarding important military, state and socially-important sites in the city of Almaty and nearby areas. He did not identify the facilities.

The deployments signal resolute Kremlin backing for the Kazakh authorities in a region Moscow sees as vital to its security along its southern flank.

US Secretary of State Antony Blinken said Washington was seeking answers from Kazakhstan as to why it needed to call in Russian-led forces to resolve domestic unrest. He also denounced the government’s shoot-to-kill order.

CASH MACHINES GUTTED
In Almaty, the biggest city where much of the violence was concentrated, normal life appeared to be returning on Sunday.

Security forces have set up checkpoints around the city. Smashed windows, gutted cash machines and torched buildings bore witness to the destruction.

The main Republic Square remained sealed off.

Reuters saw two military vehicles with mounted machine guns driving towards the square. Most of dozens of civilian and police cars torched during the unrest had been removed.

Supermarket chain Magnum said 15 of its 68 stores in Almaty had been looted.

A shopping mall’s staff told Reuters that video cameras showed looters attacking an ATM, changing into stolen clothes at the stores, and walking out wearing two or three coats.

Yerkin Zhumabekov, a mall manager, said: “They arrived in cars with no number plates at night, they destroyed everything. They took everything they could, shoes, clothes, cosmetics.” — Olzhas Auyezov and Tamara Vaal/Reuters

China’s Tianjin tightens control over travel after Omicron cases

PIXABAY

BEIJING — The northern Chinese city of Tianjin tightened exit controls and is requiring residents to obtain approval from employers or community authorities before leaving town in an effort to block the spread of the highly transmissible Omicron variant.

The port city to the southeast of Beijing reported 21 domestically transmitted cases with confirmed symptoms on Sunday, the National Health Commission said on Monday, up from three a day earlier.

Tianjin, with around 14 million residents, said over the weekend it detected two local cases of infection with the Omicron. The source of the infections and route to the community remained unclear, and officials had yet to announce how many other local cases were caused by Omicron.

The highly transmissible Omicron variant is rapidly spreading globally, forcing several countries to tighten travel rules, and presents a heightened challenge to China’s efforts to quickly extinguish local outbreaks.

China’s quick containment strategy has taken on extra urgency in the run-up to the Winter Olympics, to be staged in Beijing and neighboring Hebei province starting Feb. 4, and with the Lunar New Year holiday travel season beginning later this month.

Tianjin’s mass testing scheme, which it aims to complete in two days, is part of its effort to “resolutely prevent the virus spreading to other provinces, regions, and cities, especially Beijing,” the city government said in a letter to residents on Monday.

Last year, China hosted several foreign diplomatic delegations in Tianjin instead of Beijing, including those from the United States. The city is also one of north China’s most important oil and gas terminals, is a production base for European planemaker Airbus and hosts data storage centers for Chinese technology firms such as Tencent.

In China’s central Henan province, the city of Anyang detected two local Omicron infections traced to a student arriving from Tianjin, a local paper backed by Communist party authority in Anyang said on Monday.

It remained unclear how many other local cases in Anyang were Omicron. The city of 5.5 million residents suspended all bus services from Sunday.

Prior to the Tianjin and Anyang outbreak, China had reported a handful of Omicron cases among international travelers, and at least one locally transmitted Omicron infection.

In December, a national health official said local transmission of Omicron, caused by an Omicron infection arriving from overseas, had beBEIJING — The northern Chinese city of Tianjin tightened exit controls and is requiring residents to obtain approval from employers or community authorities before leaving town in an effort to block the spread of the highly transmissible Omicron variant.

The port city to the southeast of Beijing reported 21 domestically transmitted cases with confirmed symptoms on Sunday, the National Health Commission said on Monday, up from three a day earlier.

Tianjin, with around 14 million residents, said over the weekend it detected two local cases of infection with the Omicron. The source of the infections and route to the community remained unclear, and officials had yet to announce how many other local cases were caused by Omicron.

The highly transmissible Omicron variant is rapidly spreading globally, forcing several countries to tighten travel rules, and presents a heightened challenge to China’s efforts to quickly extinguish local outbreaks.

China’s quick containment strategy has taken on extra urgency in the run-up to the Winter Olympics, to be staged in Beijing and neighboring Hebei province starting Feb. 4, and with the Lunar New Year holiday travel season beginning later this month.

Tianjin’s mass testing scheme, which it aims to complete in two days, is part of its effort to “resolutely prevent the virus spreading to other provinces, regions, and cities, especially Beijing,” the city government said in a letter to residents on Monday.

Last year, China hosted several foreign diplomatic delegations in Tianjin instead of Beijing, including those from the United States. The city is also one of north China’s most important oil and gas terminals, is a production base for European planemaker Airbus and hosts data storage centers for Chinese technology firms such as Tencent.

In China’s central Henan province, the city of Anyang detected two local Omicron infections traced to a student arriving from Tianjin, a local paper backed by Communist party authority in Anyang said on Monday.

It remained unclear how many other local cases in Anyang were Omicron. The city of 5.5 million residents suspended all bus services from Sunday.

Prior to the Tianjin and Anyang outbreak, China had reported a handful of Omicron cases among international travelers, and at least one locally transmitted Omicron infection.

In December, a national health official said local transmission of Omicron, caused by an Omicron infection arriving from overseas, had been found in the southern city of Guangzhou and quickly contained, without giving local case numbers.

Nationwide, mainland China reported 97 new local symptomatic cases for Sunday, up slightly from 92 a day earlier, with 60 in Henan.

The city of Xian, where local authorities are planning the gradual resumption of parcel deliveries and some businesses as a weeks-long lockdown showed signs of easing, reported 15 local symptomatic cases. — Reutersen found in the southern city of Guangzhou and quickly contained, without giving local case numbers.

Nationwide, mainland China reported 97 new local symptomatic cases for Sunday, up slightly from 92 a day earlier, with 60 in Henan.

The city of Xian, where local authorities are planning the gradual resumption of parcel deliveries and some businesses as a weeks-long lockdown showed signs of easing, reported 15 local symptomatic cases. — Reuters

No concessions, no breakthroughs: Russia, US cast pall on Ukraine talks

A RUSSIAN FLAG flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, Feb. 27, 2019. — REUTERS

MOSCOW/WASHINGTON — Russia said on Sunday it would not make concessions under US pressure and warned that this week’s talks on the Ukraine crisis might end early, while Washington said no breakthroughs were expected and progress depended on de-escalation from Moscow. 

The hard line from Moscow underscored the fragile prospects for negotiations that Washington hopes will avert the danger of a new Russian invasion of Ukraine, at the tensest point in US-Russia relations since the Cold War ended three decades ago. 

Talks begin on Monday in Geneva before moving to Brussels and Vienna, but the state-owned RIA news agency quoted Deputy Foreign Minister Sergei Ryabkov as saying it was entirely possible the diplomacy could end after a single meeting. 

“I can’t rule out anything, this is an entirely possible scenario and the Americans … should have no illusions about this,” he was quoted as saying. 

“Naturally, we will not make any concessions under pressure” or amid constant threats from participants in the talks, said Mr. Ryabkov, who will lead the Russian delegation in Geneva. 

Moscow was not optimistic going into the talks, Interfax news agency quoted Mr. Ryabkov as saying. 

The US prognosis was similarly gloomy. 

“I don’t think we’re going to see any breakthroughs in the coming week,” US Secretary of State Antony Blinken said in a CNN interview. 

In response to Russian demands for Western security guarantees, the United States and allies have said they are prepared to discuss the possibility of each side restricting military exercises and missile deployments in the region. 

Both sides will put proposals on the table and then see if there are grounds for moving forward, Mr. Blinken said. 

“To make actual progress, it’s very hard to see that happening when there’s an ongoing escalation, when Russia has a gun to the head of Ukraine with 100,000 troops near its borders,” Mr. Blinken said in an interview with ABC News. 

Ahead of the formal talks, US Deputy Secretary of State Wendy Sherman met with Mr. Ryabkov on Sunday in Geneva and told him Washington “would welcome genuine progress through diplomacy,” the State Department said. 

Mr. Ryabkov told reporters his meeting with Ms. Sherman had been “complex but businesslike,” Russian news agency Interfax said. 

Tens of thousands of Russian troops are gathered within reach of the border with Ukraine in preparation for what Washington and Kyiv say could be an invasion, eight years after Russia seized the Crimea peninsula from Ukraine. 

The comments from Russia’s Mr. Ryabkov, who has compared the situation to the 1962 Cuban missile crisis when the world stood on the brink of nuclear war, were consistent with the uncompromising line Russia has been signaling for weeks. 

Russia denies invasion plans and said it is responding to what it calls aggressive and provocative behavior from the NATO military alliance and Ukraine, which has tilted toward the West and aspires to join NATO. 

Further complicating the picture, Russia sent troops into neighboring Kazakhstan last week after the oil-producing former Soviet republic was hit by a wave of unrest. Russia’s foreign ministry reacted furiously on Saturday to a jibe by Mr. Blinken that “once Russians are in your house, it’s sometimes very difficult to get them to leave.” 

RED LINES 

Last month, Russia presented a sweeping set of demands including for a ban on further NATO expansion and an end to the alliance’s activity in central and eastern European countries that joined it after 1997. 

The United States and NATO have dismissed large parts of the Russian proposals as non-starters. 

The United States was not willing to discuss pulling some US troops out of eastern Europe or rule out expanding NATO to include Ukraine, Mr. Blinken said. 

To abandon its demands for a more-limited agenda would be a major climb-down that Russia seems unlikely to make, especially after weeks of troop movements near Ukraine and a series of tough statements from President Vladimir Putin. 

The Kremlin leader has said that after successive waves of NATO expansion it is time for Russia to enforce its “red lines” and ensure the alliance does not admit Ukraine or station weapons systems there that would target Russia. 

Ukraine won a NATO promise in 2008 that it would be allowed to join one day, but diplomats say there is no question of that happening any time soon. 

NATO said it is a defensive alliance and Moscow has nothing to fear from it. That is far from Mr. Putin’s world view, which sees Russia as under threat from hostile Western powers he says have repeatedly broken promises given as the Cold War ended not to expand toward its borders. The United States and its allies dispute such pledges were given. 

In two conversations over the past five weeks, US President Joseph R. Biden, Jr., warned Mr. Putin that Russia would face unprecedented economic sanctions in the event of further aggression against Ukraine. The Group of Seven nations and the European Union have joined in threatening “massive consequences.” 

Mr. Putin said that would be a colossal mistake that would lead to a complete rupture of relations. 

In addition to the Geneva talks, Russia is also due to hold negotiations with NATO in Brussels on Wednesday and at the Organization for Security and Cooperation in Europe in Vienna on Thursday. — Reuters

Citi PayLite is back, powered by Global Payments

Citi, the largest foreign bank in the Philippines, and Global Payments Inc., a leading worldwide provider of payment technology and software solutions, have forged a new agreement to bring back Citi’s merchant installment facility, Citi PayLite.

With Citi PayLite, cardholders can split their purchases of at least P3,000 at participating merchants, into equal monthly installments for up to 36 months, depending on the purchase amount and the terms of the participating merchant. For example, a transaction worth P3,000 can be split into three monthly installments of P1,000, making purchases lighter on the wallet and giving cardholders more room to manage their monthly expenses.

Currently, Citi PayLite is available for purchases at leading merchants across a wide range of categories such as gadgets, appliances, department store/shopping, education and healthcare and medical. Citi is aggressively growing their merchant portfolio, expanding to hundreds of brands and thousands of outlets nationwide, to ensure that Citi PayLite is available in more locations by the end of the year. Citi Cardholders may visit www.citibank.com.ph/gppaylite to view the growing list of available brands and outlets that accept PayLite.

Citi PayLite runs on Global Payments point of sale terminals and is available only for locally issued Citi credit cards.

During this time of uncertainty brought about by the pandemic, Citi and Global Payments want to provide customers with more flexible payment options when they purchase high-ticket items and even pay for school tuition fees or healthcare expenses.

With the holiday season just around the corner Citi credit cardholders can shop for premium clothing or upgrade their gadgets and home appliances. They can purchase all these without making a big dent on their pockets as they enjoy light and easy installments with Citi PayLite.

“Citi continues to offer best in class rewards to our loyal credit cardholders and we also want to ensure that they enjoy the convenience of paying for big ticket items on installment basis. With the reopening of many businesses, this is the perfect time for them to go shopping and avail of Citi Paylite,” said Vishal Kadian, Citi Philippines Cards and Loans Director.

Bryan Tiongson, Global Payments Country Head of the Philippines, adds, “Global Payments is a trusted partner to the most sophisticated global financial institutions and merchants, providing innovative payment technologies to meet their customers’ needs and enable frictionless commerce. We are delighted to expand our partnership with Citi to offer PayLite to their cardholders and our merchant customers in the Philippines. By leveraging our technologies and extensive scale in the region, we have the capability to bring Citi PayLite installments to a broader range of customers.”

Availing of Citi PayLite is easy: A Citi credit cardholder only needs to swipe his Citi credit card at participating merchants, choose his preferred installment term, sign the charge slip to agree to the terms and conditions and the details of the Installment transaction, and proceed with the conversion to installment. The cardholder will receive an SMS regarding the outcome of the request. Conversion to Citi PayLite is subject to Citi’s approval based on the cardholder’s available relationship limit. Citi credit cardholders can also avail of Citi PayLite in their favorite online stores by next year.

By March 2022, Citi PayLite will be available in nearly 5,000 outlets serviced by Global Payments in the Philippines including key merchants such as Abenson, Power Mac Center, Rustan’s, Stores Specialists, Inc., and The SM Store.

Citi Philippines is the largest foreign commercial bank in the country in terms of assets, revenues and profitability. Citi offers a wide variety of credit cards; each of them has curated with benefits and privileges. Citi credit cards offer generous reward points or cash rebates, dine-in discounts, travel, hospitality and lifestyle benefits, and much more.

Global Payments is a payments technology leader with extensive scale and unmatched global reach. The company provides innovative payments and software solutions to approximately 4 million merchant locations, serves over 1,500 leading financial institutions and partners globally, enables more than 170 countries with cross-border payments, and processes nearly 60 billion transactions annually.

 


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Germany assessing reliability of antibody tests for Omicron — minister

PIXABAY

FRANKFURT — Germany will study how reliable rapid antigen tests are in detecting the fast-spreading Omicron variant of coronavirus disease 2019 (COVID-19), Health Minister Karl Lauterbach said on Sunday.

“We do not know exactly how well these tests work for Omicron,” Mr. Lauterbach said on public broadcasting channel ARD, adding the results of the assessment would become available within the next few weeks.

It was clear, however, that “the alternative not to test at all … would be far too dangerous,” said Mr. Lauterbach, a scientist and physician.

Earlier, he had told a Sunday newspaper that Germany must revamp its COVID-19 vaccination strategy to tackle the Omicron variant and to ensure it can develop a new vaccine rapidly if it faces a more deadly coronavirus variant in the future. New measures for dining out and bar visits were brought in only last Friday.

Omicron now accounts for 44% of coronavirus infections in Germany, the Robert Koch Institute (RKI) for infectious disease said.

On Sunday, RKI registered 36,552 newly reported corona infections within 24 hours, three times the number a week earlier.

The Bundestag lower house of parliament will soon discuss a draft bill for a general vaccination mandate that is supported by businesses and the public sector, but has been delayed amid uncertainty about united support for it within the three-party coalition government.

Mr. Lauterbach, of the Social Democratic Party, strongly advocates obligatory vaccinations and Justice Minister Marco Buschmann of the libertarian FDP in an interview with Sunday newspaper Bild am Sonntag also urged parliament to decide on the issue soon.

However, the parliamentary leader of the Green Party, Britta Hasselmann said in an interview with the Funke media group that the parties had to discuss the issue internally first.

“It is not an easy decision, it implies a deep intervention,” she said. — Reuters

[B-SIDE Podcast] Fintech and the pandemic: how COVID-19 is normalizing digital wallets

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The financial space has come a long way in the Philippines as banks, wallet services, consumer lending, and insurance are all going digital, albeit at different paces. 

The same goes for the remittance space, largely important in the country due to the large overseas Filipinos worker (OFW) population. 

“More and more senders and recipients would like to send and receive their money digitally. Case in point would be the acceleration of digital wallets being the primary mode of receiving remittances,” said Earl Allan E. Melivo, country director of cross-border digital payments service WorldRemit. 

In this B-Side episode, Mr. Melivo shares with BusinessWorld reporter Brontë H. Lacsamana how financial inclusion can be achieved by supporting digital services in the Philippines. 

We must welcome public, private, domestic, and international players. 

With the Bangko Sentral ng Pilipinas (BSP) regulating the financial space in support of technological innovations and the operation of multiple domestic and international players that offer beneficial services, digital channels will definitely improve. 

“With all these combined efforts and obviously support from both the private sector and the government, we are seeing a lot of improvements and also helping the government to reach its goal of higher financial inclusion or more than 50% financial inclusion in the next five years,” said Mr. Melivo. 

He added that the exponential growth of e-commerce, banks improving their digital banking channels, and people signing up for digital wallets and availing of financial services online, has shown how the Philippines is ahead of the curve. 

Cash is still king, but digital payout methods are gaining traction. 

However, cash is still the number one means of sending and receiving remittances. Companies like WorldRemit, despite acknowledging this fact, also remain hopeful for the increase of digital payout methods which they facilitate cross-border. 

“You can see that the market is shifting towards digital receive methods, as I said, due to the emergence of digital banks and also mobile wallets,” Mr. Melivo said, “So we’re already seeing that as evidence of the industry evolving into a more efficient industry.” 

He predicts that, in the next three to five years, more remittances will be received via digital channels. The shift can happen very fast, as many companies experienced — WorldRemit, for instance, launched a send-to-mobile wallet service just a month after the Philippines went into lockdown. 

The biggest challenge in the Philippines is internet penetration. 

Improving internet quality and access will be a fundamental part of achieving financial inclusion, especially in a large country with thousands of islands. 

“The government’s drive to do financial inclusion is there, and the industry players are very much supportive and doing their best to increase financial inclusion in the country. However, there’s still a question of when we can provide the best possible internet technology to pave way even for the remote areas,” Mr. Melivo explained. 

Mobile internet, in particular, will be vital in letting as many Filipinos as possible avail of digital services rather than rely mostly on cash remittances. 

Government needs to embrace digital culture and help educate the public. 

In the Philippines, there’s a need to educate the wider audience of financial services available in the market. This includes what they are, where to get them, the benefits, and the threats in the digital financial space. 

“Just like the traditional or offline methods, it’s susceptible to abuse, obviously hackers being wiser these days, so it’s a question of how can we further improve these services and also how we can actually try to protect consumers and educate them of the availability of these services and the full benefits of which,” said Mr. Melivo. 

Though the private sector and the government’s financial sector are well underway in terms of financial technology, other public agencies need to embrace it as well. 

Only then will financial inclusion be attainable, he added.  

Recorded remotely on Dec. 16, 2021. Produced by Brontë H. Lacsamana, Paolo L. Lopez and Sam L. Marcelo.

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Primehomes brings spirit of camaraderie and festivity closer to home

All photos by Abdelghani El Kharti

Sensing the connection within the communities becomes closer now, especially with the holiday season. Primehomes Real Estate Development, Inc. brings such spirit of camaraderie and festivity closer to home.

Last November, timing with the holiday season, Primehomes has opened a new residence and spaces for community engagement and a festive atmosphere.

Primehomes Capitol Hills, the developer’s project with four residential phases nestled in Quezon City, welcomed a new community with the opening of the doors of Albizia, the second tower to complete the Laselva, the second phase of Primehomes in Capitol Hills.

The Tower 5, Albizia is built with 15 residential floors with 12 units each. The units came in Studio Premiere, One Bedroom, One-Bedroom Corner Units, and Two-Bedroom Corner Units.

Primehomes maintains establishing “Living Breathable Homes” through Albizia by offering bigger unit cuts for the tower’s future residents.

Albizia has direct access to Primehomes’ key features, which included the main amenity named Parque Verde, main clubhouse Palma De Anahaw, and the Alfresco Lounge area. It also shares a linear park and a basement parking with Tower 4.

Along with the launch of Albizia, Primehomes opened a night market to engage the Primehomes Capitol Hills residents and even visitors, which was initially intended to run from Nov. 27 to Dec. 18.

The majority of the sellers at the night market are residents from Primehomes Capitol Hills. Visitors were also welcome to breeze through the food and retail items, which they could purchase for personal use or consumption or gift ideas.

Primehomes also reactivated its Casa Hardin to bring holiday cheer to Capitol Hills by brightening the area with a tree-lighting ceremony.

Casa Hardin is an activity park open for the residing community to spend time at and enjoy.

The opening of the night market and Casa Hardin a few weeks before Christmas gave more festive spaces for residents and their invited friends, thereby adding a sense of togetherness for the holiday season at Albizia and the rest of the communities in Primehomes Capitol Hills.

Primehomes in Capitol Hills boasts well-designed amenities, multi-purpose clubhouse, and a commercial area. Located at the heart of Quezon City, Primehomes Capitol Hills gives its residents immediate access to top universities, major lifestyle hubs, and business districts.

Primehomes is optimistically looking at 2022 with better towers and amenities.

 


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Virus surge clouds outlook for IPOs

REUTERS
In this photo illustration, the words “Omicron COVID-19” are seen on a smartphone screen with a stock market graph chart in the background. PHOTO BY PAVLO GONCHAR / SOPA IMAGES/SIPA USA VIA REUTERS

By Keren Concepcion G. Valmonte, Reporter

THE ONGOING SURGE in coronavirus disease 2019 (COVID-19) infections in the country is clouding the prospects for upcoming initial public offerings (IPO). 

This as residential developer Haus Talk, Inc. and Figaro Coffee Group, Inc. are scheduled to make their Philippine stock market debut this month.

COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said the market has been factoring in the latest COVID-19 surge and the “more hawkish” stance of the US Federal Reserve, which may have contributed to the recent “lackluster volume” at the stock market.

“IPOs during this time may not get the multiplier effects they would have wanted as demand levels would clearly be impacted,” he said in a Viber message on Friday.    

“This may drive some difficulty in listings during this period as volume levels remain stunted as we have two headwinds to deal with at the time being,” he added, referring to the COVID-19 surge and the looming interest rate hikes in the United States.

The US Fed is widely expected to raise interest rates in March, and start reducing its asset holdings. There are worries of a repeat of 2013’s so-called “taper tantrum,” which led to sharp capital outflows from emerging markets like the Philippines.

The Philippines is in the middle of another COVID-19 wave, with new daily cases hitting 28,707 on Sunday. Active cases reached 128,114 with a 44% infection rate.

“Analysts [would] keep an eye on the increasing COVID-19 cases in the country and how this may affect the government’s policies on movement restrictions,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a separate Viber message on Friday.

However, First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said the PSEi remains “resilient” and this would be the “cushion” for upcoming public offers.

“PSEi looking resilient above 7,000 due to high vaccination rate and this will be the cushion for IPO, keeping investors’ attention and interest to buy on dips,” Ms. Ulang said in a Viber message on Friday.

The Philippine Stock Exchange, Inc. (PSE) just saw a record year in fundraising activities. In 2021, firms raised a record P234.48 billion at the local bourse through eight IPOs, 11 follow-on offerings, four stock rights offerings, and eight private placements.

This year, Haus Talk, is set to make its debut on the PSE’s small, medium, and emerging (SME) board, tentatively set for Jan. 17.

Figaro Coffee Group, Inc.’s offer period starts on Monday (Jan. 10) up to Jan. 14. The company will list under stock symbol “FCG” on the main board of the PSE on Jan. 24.

San Miguel Corp.’s Bank of Commerce, Citicore Energy REIT Corp., and CTS Global Equity Group, Inc. are waiting for regulatory approval for their IPOs.

Meanwhile, Balai ni Fruitas, Inc., North Star Meat Merchants, Inc., and Ovialand, Inc. have expressed interest in raising funds through the stock market this year.

The Villar group is also planning to launch its own real estate investment trust through Vista Land & Lifescapes, Inc. and “small IPOs,” depending on market conditions, for some of its brands such as Coffee Project.

“Although each public offering may be considered unique, market sentiment may also play an effect to investors looking forward to participate in IPOs and existing issues’ growth stories in the local bourse,” Mr. Pangan said.

FIGARO ‘CONFIDENT’
Meanwhile, Figaro Chairman and Director Justin T. Liu said he is not concerned with the timing of the offer, expressing confidence in the company’s brands and products.

“We’re not in the ‘market timing business.’ We’re really more of looking long term so we’re looking to use this capital to grow our company, we’re not really looking at what will happen to the stock on opening day or on the week after,” Mr. Liu said at an online investor’s briefing on Jan. 6.

Figaro plans to use net proceeds from its P767.39-million IPO for store launches and renovations, commissary expansion, debt repayment, and investments in the company’s digital infrastructure.

Figaro and Camerton, Inc. assigned PNB Securities, Inc. as the stock’s stabilizing agent. PNB Securities may purchase up to 93.016 million common shares from the institutional offer for 75 centavos apiece within 30 days upon its listing.

A stabilizing agent is engaged “for the sole purpose of preventing/minimizing reduction in market price of the shares,” the Securities and Exchange Commission (SEC) noted in a document dated Jan. 4. The overallotment is also not allowed to go beyond 15% of the base number of shares sold by the issuer.

The “initial stabilizing action” is directed to start once the stock price falls below its initial offer price. However, if the stock’s price falls further, the next trade will be “below the initial stabilizing price.”

One of the last IPOs last year, Medilines Distributors, Inc., crashed 30% on its first trading day. The Villar-led firm did not arrange a stabilization fund for the offer. 

The SEC has ordered Figaro and PNB Securities to record all details of stabilizing transactions. A weekly disclosure of price stabilization activities within the 30-day period is required.

In addition, the SEC also “directed” the company and the stabilizing agent to submit a report within 15 days from the end of its stabilization period.

Omicron wave could push hospitalizations to record in Philippines

LOCAL TOURISTS frolicked on Nagsasa Cove’s fine grayish-white volcanic sand on Dec. 29, 2021, days before Alert Level 3 in Manila, nearby cities and provinces was raised again amid a fresh surge in coronavirus infections. — NORMAN P. AQUINO

By Norman P. Aquino, Special Reports Editor
and Kyle Aristophere T. Atienza, Reporter

ELMER G. CASTILLO, 37, got his fist vaccine dose against the coronavirus on Dec. 3, under threat of the campsite he manages in Nagsasa Cove in San Antonio, Zambales getting shuttered.

“My wife and I had to because it’s the protocol for those in the tourism sector,” he said in Filipino while watching their small mom-and-pop store on the beachfront on Dec. 28. “But we had our fears — we’ve heard about deaths before.”

Mr. Castillo expects 13 mountaineers climbing Mt. Balingkilat from Subic to pitch tents on Jan. 13 at their property, one of two dozen campsites that were allowed to reopen in September 2021. “We’d be out of business if we continue to refuse to get vaccinated.”

Nagsasa and nearby coves in Central Luzon are famous for their fine volcanic sand from Mt. Pinatubo, which spewed ash and black sand in June 1991, filling thousands of square meters of what used to be seawater hugging the foot of the mountain more than 60 kilometers away.

In Nagsasa, few people — resident or tourist — wear a face mask to protect themselves from the coronavirus. Not one resident had been infected with the virus for the past 22 months, Mr. Castillo said. He’s aware of the Omicron variant, but he doesn’t think of it as much of a threat.

That was before the government raised the alert level in Manila, the capital and nearby cities and provinces — including Zambales — to 3 amid a fresh surge in infections.

Health experts have warned that an Omicron-driven wave of COVID-19 infections could exhaust the Philippines’ healthcare system again.

“Every time there is a spike in COVID-19 cases, we should anticipate that hospital beds will be filled, supplies and equipment will run out, and restrictions will revert to stricter levels especially if we do not learn from recent experiences,” said Joey Francis Hernandez, treasurer of the Philippine Society of Public Health Physicians.

Preparing the hospital system for a spike in COVID-19 cases “would be best if the community is also empowered to respond to this threat,” he said in a Facebook Messenger chat. “That means more free and subsidized testing centers.”

The Department of Health (DoH) at the central, regional and provincial levels should coordinate with hospital associations, professional societies, nongovernment groups and other organizations involved in COVID-19 response, Mr. Hernandez said.

The country started the New Year with more than 3,600 cases after posting fewer than 500 infections before the holiday. The DoH reported a record 28,707 in new daily infections on Sunday.

“Definitely, if this upward trend continues to become a surge, it can again overwhelm our healthcare system,” said Gene A. Nisperos, a board member of the Community Medicine Development Foundation, Inc.

The Delta variant, which has become the dominant strain in the Philippines, nearly exhausted the country’s health system last year. Experts worldwide have said that the Omicron variant could replace Delta as the dominant variant.

“It is very likely that the Omicron variant is going to replace the Delta variant as much as the Delta variant replaced the earlier Alpha and Beta variants,” Rabindra R. Abeyasinghe, WHO Representative to the Philippines, told the ABS-CBN News Channel last month.

“We could expect that the Omicron variant is going to replace the Delta variant given this level of transmissibility that it has been showing in early stages in affected countries,” he said at the time.

Many countries have tightened lockdowns as infections skyrocketed. On Dec. 31, the Philippine government raised the alert level in Metro Manila.

On Thursday, the government placed more cities and provinces under Alert Level 3 from Jan. 9 to 15 to contain the virus.

The United States on Saturday posted more than 468,000 coronavirus cases, pushing the total to almost 61 million. On Jan. 3, it set a global record in daily infections with 1.08 million infections.

CLUES
Meanwhile, the Philippines’ main COVID-19 referral hospital has posted a steady increase in coronavirus patients, its spokesman said on Sunday, as the country struggled to contain a spike in infections fueled by the Omicron variant.

The Philippine General Hospital’s intensive care unit beds for coronavirus patients were fully occupied, spokesman Jonas D. del Rosario said by telephone. “Our ICU beds for COVID-19 patients are now full, or about 30 beds.”

“We are preparing for a steady increase in patients in the next coming weeks,” he said, noting that the state hospital has admitted 291 coronavirus patients.

Health experts have warned that coronavirus cases in the country might top figures from previous waves.

The Philippines may record as many as 35,000 infections this week, Fredegusto P. David of the OCTA Research Group from the University of the Philippines said in a Facebook Messenger chat.

“We should be on offensive mode versus COVID, and not just reactive or defensive,” Mr. Hernandez said, noting that the Health department should continuously assess the capacity of health facilities nationwide.

He also urged the government to address the concerns of overworked and underpaid health workers “to give them one less reason to leave the battlefield.”

“We hope that health authorities have closer coordination with local government units, there is more testing and better contact tracing, data collection and management and health promotion and information dissemination,” Mr. Nisperos said.

“There should really be better health leadership. Sadly, the recent communications coming out of the DoH do not show any real development in thinking.”

South Africa came into the world’s focus in November after becoming one of the first countries to detect Omicron. The country is providing clues to life after Omicron.

President Matamela Cyril Ramaphosa’s government has said the country’s fourth COVID-19 wave had peaked. Deaths from Omicron reached 10,000 compared with about 110,000 from the Delta-driven surge, he said last week.

Vaccinations, immunity after previous infections and signs that Omicron is a milder disease appeared to have kept the pressure off hospitals even if three-quarters of South Africans had not been fully vaccinated against COVID-19.

Peak hospital admissions in South Africa’s Omicron wave were about two-thirds of the Delta peak, the Financial Times reported, citing Richard Friedland, chief executive of Netcare, South Africa’s biggest provider of private healthcare.

On the other hand, COVID-19 hospitalizations in the US were poised to hit a new record as early as Friday, surpassing the record set in January last year as Omicron fuels an infection surge, Reuters reported on Jan. 7.

The Health department on Sunday said 35% of intensive care units in the Philippines were occupied, while the rate for isolation and ward beds were 39% and 38%, respectively. In Metro Manila, 52% of ICU and 50% of isolations beds were occupied, while 65% of ward beds had been used.

Mr. Hernandez urged the state-run Philippine Health Insurance Corp. (PhilHealth) to immediately settle its dispute with private hospitals.

“With the urgency of the situation now, the least that it can do is to immediately process and mobilize arrears owed to hospitals and healthcare workers,” he said. “PhilHealth should also have good crisis management strategies in place at this time.”

An association of private hospitals earlier threatened to hold a five-day protest and refuse PhilHealth coverage from patients seeking treatment due to unpaid hospital claims during the pandemic.

“We should continuously strengthen the health system for the next COVID-19 case spikes by improving health information systems, medicine and vaccine procurement/supply chain, health human resource, leadership and governance, financing and service delivery,” Mr. Hernandez said. “This won’t be over soon.”

Subsidies for GOCCs decline in November

BW FILE PHOTO

SUBSIDIES extended to government-owned companies fell by 46% year on year to P12.33 billion in November, the Bureau of the Treasury (BTr) said.

Subsidies for government-owned and -controlled corporations (GOCCs) declined compared with the P22.78 billion in the same month last year, when the government provided P10 billion to the Land Bank of the Philippines.

Despite the year-on-year decline, the Treasury said GOCC subsidies in November 2021 more than doubled the P5.2 billion seen in October.

The National Irrigation Administration (NIA) received the highest amount in November, receiving P3.97 billion. The Bases Conversion Development Authority (BCDA) followed with P2.79 billion.

Subsidies are granted to GOCCs to cover operational expenses not supported by their revenue.

Other top recipients include the National Housing Authority at P1.66 billion, the Philippine Health Insurance Corp. (PhilHealth) at P903 million, the Philippine Fisheries Development Authority at P881 million, and the Philippine Crop Insurance Corp. at P618 million. 

Meanwhile, GOCCs that did not receive budget support were National Home Mortgage Finance Corp., National Electrification Administration, National Food Authority, National Power Corp., Cagayan Economic Zone Authority, Development Academy of the Philippines, Philippine Postal Corp., Small Business Corp., and the Subic Bay Metropolitan Authority.

In the 11 months to November, total subsidies reached P163.41 billion, down by 13% from P187.86 billion in the same period a year ago. The government budgeted P148.188 billion for GOCC subsidies for the full year.

A total of P76.97 billion went to PhilHealth, while P34.18 billion in subsidies went to the NIA.

In 2020, GOCC subsidies rose by 14% to P230.418 billion, with close to half going to PhilHealth and SSS. — J.P.Ibañez

The sound of time

PATEK FORTISSIMO

SOUND is tied to time. We’re not qualified as physicists to make a proper explanation, but we think of the ways instead by which we use sound to both pass and mark time: alarms, music, the sound of voices in memory. A new piece by Patek Philippe, a project from their Advanced Research department, helps create a better memory of sound by making its minute repeater louder.

The minute repeater, a 17th-century innovation that marked time with chimes in small clocks and watches (as opposed to those on clocktowers that once did the same, albeit on a larger scale), is a frequent complication on luxury timepieces. The Patek Philip Ref. 5750P Advanced Research, nicknamed Fortissimo (it is telling that it is named after a term in music), borrows technology from early phonographs to create this innovation.

“Today, we are in a completely different domain: we are in the field of sound,” said Philip Barat, Head of Research and Development for Patek Philip during a press conference last month.

The minute repeater’s sound amplification system consists of a lever shaped like a tuning fork, and a sapphire crystal plate which vibrates and creates the soundwave that escapes from the four acoustic channels of a titanium ring. Thanks to its angular motion, this rigid and freely movable wafer provides clearly better sound propagation for the confined volume of a wristwatch. The transparency of the sapphire glass also preserves the unobstructed view of the movement through the case back. The other end of this sound lever that resembles a tuning fork features a flexible attachment with a thickness of 0.08 mm. When the hammers strike the gongs, their oscillations are transmitted to the sound lever which in a first phase amplifies them and transmits them to the rigid oscillating wafer where they are further amplified. The angular motion of the oscillating wafer excites the air layers above and beneath the sapphire glass, producing a noticeably louder sound.

“We wanted to amplify the sound of the minute repeater by transmitting the vibrations of the hammer to a vibrating plate. The use of a lever allowed us to amplify these vibrations. The sound therefore comes out louder while remaining pleasing to the ear,” said the company during the press conference, while this chime, the subject of so many hours of work and research, played, and was heard across the world from Switzerland (through computer speakers, alas).

The maximum duration of the time strike (32 strikes at 12:59) — it usually lasts 17 to 18 seconds — was extended to 20 to 21 seconds, allowing the gongs to fade somewhat longer.

“The fortissimo module attached in the case back allows the sound to be heard at a six-fold larger distance… a classic minute repeater on the wrist, at a distance of 10 meters, sounds as loud and clear as an amplified minute repeater at a distance of 60 meters,” said a company statement.

The Ref. 5750P Patek Philippe Advanced Research minute repeater comes in a sleek case with a slightly domed bezel. As with other innovations from the Advanced Research department, this movement will be available in a limited number of timepieces — in this case, 15.

It is inspired by the Ref. 5178 minute repeater with cathedral gongs, has the same diameter of 40 mm. However, with a height of 11.1 mm, it is 0.57 mm thicker.

To demonstrate the efficiency of the fortissimo system, the manufacture opted for the material that poses the greatest acoustic challenges — 950 platinum. In its center, the five-part elaborately constructed dial features an open worked motif inspired by the spoked wheels of vintage automobiles. It stands out against the black background with snailed spiraling lines. The subsidiary seconds at 6 o’clock consists of a rotating disc with the same open worked motif against a black snailed background and a small marker that serves as a hand — a movable element which creates a unique, dynamic effect.

The time is indicated by flat Dauphine hands in white gold and applied kite-type hour markers in blackened white gold. The sapphire-crystal case back reveals the hammers and the classic gongs of the minute repeater as well as the sound lever in the shape of a tuning fork that carries the transparent oscillating wafer of the fortissimo amplifier system. A pierced Calatrava cross decorates the cover of the centrifugal governor that assures the regular rhythm of the time strikes.

This limited special edition is worn on a shiny orange alligator strap with black contrast seams and a platinum fold-over clasp. The watch’s lugs alone, apparently, represent six hours of work: the lugs had to be machined from a single piece of metal. —  JL Garcia

NLEX Corp. unveils expansion plans for 2022

NLEX Corp. plans to start this year the construction of a two-kilometer expressway section between the existing Mindanao Avenue toll plaza and Quirino Highway in Novaliches, Quezon City, the company’s top official said.

The company also intends to start work on the third bridge at Candaba Viaduct.

“[W]e welcome 2022 with optimism as there are big-ticket projects that we will complete and commence this year,” NLEX Corp. President and General Manager J. Luigi L. Bautista said in an e-mailed statement over the weekend.

He was referring to the NLEX C5 Link Mindanao Avenue-Quirino Highway Section, the Candaba Third Viaduct, and the NLEX Connector.

The NLEX C5 Link Mindanao Avenue-Quirino Highway Section is “part of the 11.5-kilometer NLEX C5 Link between Mindanao Avenue, Quirino Highway, Regalado Avenue, Congressional Avenue and C.P. Garcia Avenue in Quezon City,” the company said.

The project is expected to cut travel time between Mindanao Avenue and Commonwealth Avenue to 10 minutes from the usual 45 minutes.

Meanwhile, the planned third bridge at Candaba Viaduct will “expand its capacity from three lanes to four lanes per direction, enhancing the mobility and safety of motorists,” NLEX Corp. said.

“The eight-kilometer NLEX Connector that passes through 5th Avenue/C3 Road, España Boulevard all the way to Sta. Mesa, Manila is targeted for completion this year,” it added.

The company recently signed an agreement with China Road and Bridges Corp. for the civil works contract of the remaining three kilometers of its connector project in Manila. The project is between the future España and Sta. Mesa interchanges, the second section of the eight-kilometer NLEX Connector.

“This elevated expressway will provide supply chain and logistics sector with a more efficient route, bypassing busy roads such as EDSA and C5,” NLEX Corp. said.

The company also said it completed 12 projects on North Luzon Expressway (NLEX) – Subic-Clark-Tarlac Expressway (SCTEX) last year.

“Among the major projects completed last year were the expansion of Subic Freeport Expressway (SFEX), upgrade of link slabs at Candaba Viaduct Southbound, and the rehabilitation of Meycauayan and Bigaa bridges in Bulacan,” it noted.

The company added that it also completed some upgrades in its toll collection system, including the installation of radio-frequency identification (RFID) early detection features on 56 toll lanes. “With this project, the enhanced RFID scanners can detect up to three vehicles in advance for quick processing of toll lane transactions.”

It also equipped the Balintawak, Mindanao, Karuhatan, Paso de Blas, and Tarlac toll plazas with automatic license plate recognition (ALPR) system. “It is being used to match RFID transactions, improve safety, and enforce traffic laws,” the company said.

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin