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SEIPI sees limited impact from US-China trade war

ELECTRONICS exporters are expecting only some negative effects from the US-China trade war, which has had very little impact on the industry so far, with most firms more concerned about the damage done by the pandemic.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said he is counting on the trade war not being as damaging as the pandemic.

“There may be some backlash but hopefully not as drastic as COVID impact,” he said in a mobile message Wednesday.

The US has prohibited US companies from dealing with Chinese company Huawei Technologies Co. Ltd. and is considering adding China’s largest semiconductor manufacturer to its trade blacklist. In response, China is developing a domestic semiconductor industry. 

The US and China are two of the Philippine electronics industry’s top three export destinations.

“The trade tensions have been going on for some time but we have not seen a significant impact on our industry, certainly nothing like the impact of COVID-19. We supply the global market so we cater to global demand,” he said.

The US-China trade dispute that started in 2018 saw hundreds of billions of dollars worth of tariffs imposed by the two economies. 

Mr. Lachica last year said that electronic manufacturers fleeing China have been moving to Vietnam — not to the Philippines — due to lower operating and labor costs there.

Electronics shipments, which account for more than half of Philippine merchandise exports, declined this year after lockdown restrictions disrupted operations. 

Electronics exports fell 10.4% to $3.18 billion in June, which nonetheless represented a recovery from the $2.29 billion posted in May.

While the business group had earlier predicted a 20% decline for 2020, revising its earlier 5% growth projection issued before the pandemic, Mr. Lachica said there is cause for optimism.

“We are now at about minus 14%. I hope the improvement continues,” he said.

Philippine exports could return to growth in 2022 with a flat performance next year, the Trade department’s export marketing arm said.

But an export business group said that growth could come as soon as next year, especially if electronics and mining demand returns. — Jenina P. Ibañez

ADB proposes regional hub to boost tax cooperation

THE Asian Development Bank (ADB) proposed to set up a regional hub to promote better cooperation on tax policy and administration across the region. 

“I would like to call for the establishment of an effective regional hub on domestic resource mobilization and international tax cooperation in Asia and the Pacific. This hub will serve as an open platform where countries and development partners can collaborate closely to share experiences and practical knowledge, and coordinate on development support,” ADB President Masatsugu Asakawa said in one of the webiners held at the bank’s 53rd Annual Meeting.

He said this will also help in knowledge sharing to raise tax collections and stimulate economic activity; promote international standards against base erosion and profit shifting (BEPS); and promote tax transparency.

“I firmly believe that one of the keys to success in achieving the Sustainable Development Goals (SDGs) in a world reshaped by COVID-19 (coronavirus disease) will lie in strengthening domestic resource mobilization (DRM) and international tax cooperation (ITC),” he said.

He said the proposal also aims to mainstream DRM and ITC in the bank’s operations via its technical assistance and other financial instruments.

The bank also committed to support the action plans of governments to set medium-term revenue strategies, he said, noting that the ADB could also aid in the technology transformation of revenue agencies.

Mr. Asakawa said the Asia-Pacific is the only region that does not have a pan-regional tax association to discuss international and regional tax issues.

He said governments are usually reluctant to “have their hands tied” by entering international tax agreements. 

“But this is a false choice, because stepping away from international tax cooperation for the sake of protecting sovereignty will serve to erode sovereign powers by making BEPS and tax evasion easier,” he said.

Some 27 of 45 ADB-member countries participate in the Inclusive Framework on BEPS, he said, while 19 are not yet part of the Global Forum on Transparency and Exchange of Information for Tax Purposes, which encourages transparency and automatic information exchange of tax matters. 

“The failure to engage in international tax cooperation will result in unilateral tax measures by many governments, which can lead to an increased chance of double or triple taxation. This will definitely undermine cross-border trade and investments,” he added. 

As the pandemic continues to pressure government revenue, Mr. Asakawa said governments will have to prepare for increased public debt to plug widening budget deficits, while ensuring access to additional financial resources in case there is another outbreak wave.

He said the average tax take of countries in developing Asia of 17.6% of gross domestic product, and the Southeast Asia rate of 15%, significantly underperform the levels achieved by Organisation for Economic Co-operation and Development, where the tax take is equivalent to 24.9% of its members’ economies.

“Furthermore, due to decreasing tax revenues and increasing expenditures as a result of the pandemic, many of our developing members have little room to increase their external debt further,” Mr. Asakawa said.

“These figures remind us of the importance of broadening the tax base and enhancing tax compliance. At the same time, we must also address the issue of DRM from a wider perspective,” he added. — Beatrice M. Laforga

PSALM lowers floor price for Malaya plant auction

THE Power Sector Assets and Liabilities Management (PSALM) Corp. said it reduced the floor price for the sale of the Malaya Thermal Power Plant and its underlying land. 

After two failed auctions in 2019, PSALM is trying for a third time to sell the 650-megawatt generation facility, this time for P2.19 billion, less than half its previous price of P4.48 billion. 

There was a “need to arrive at a fair and reasonable minimum bid price that would actually lead to a higher probability of a successful privatization,” PSALM President and Chief Executive Officer Irene B. Garcia said in a statement. 

“We need to privatize the Malaya Power Plant this year so that the proceeds of the sale can be used to settle maturing obligations this year and minimize PSALM’s borrowings,” Ms. Garcia said. 

As of May, PSALM had P404.28 billion in obligations, against P422.01 billion in January.

The power facility in Pililla, Rizal is a Department of Energy-designated generator which is compelled to run and supply the Luzon grid during shortages and plant outages. Once privatized, it will no longer operate as such.

PSALM consulted Isla Lipana & Co., or PwC Philippines, on the price adjustment. It also informed the Commission on Audit last month about the new floor price. 

The government-owned corporation moved the deadline of bid submissions to Sept. 23 from July 30. Bids will be immediately opened and evaluated on that date. 

Lack of interest led to the failed auctions in September and November last year. Even the negotiated sale with a lone bidder in a previous bidding round did not go through because the offer price was lower than the floor price. 

PSALM received in July an offer from South Korean heavy equipment manufacturer Soosan ENS Co., Ltd. to operate and maintain the power plant for a year. 

On Tuesday, PSALM held a pre-bid conference in which it briefed potential buyers on five real estate assets coming up for sale: a 1,868-square-meter (sq.m.) property in General Santos City, a four-lot 13,204 sq.m. site in Loboc, Bohol, a 270,390 sq.m. property in Magdalena, Laguna made up of 20 lots, a three-lot 2,041 sq.m. site in Sudipen, La Union and a 2,148 sq.m. property in Camalaniugan, Cagayan.

Taken together, the properties are going up for sale at a combined minimum price of around P56.55 million. PSALM is accepting bid submissions until Sept. 30. 

Proceeds from the sale will be used to settle financial obligations assumed from the National Power Corp., PSALM said. — Adam J. Ang

Monumental collapse

Just about all quarters, including those directly involved in developments, marked the Clippers as All Too Ready For Prime Time once Kawhi Leonard and Paul George came on board last year. Either or both coveted free agents had an opportunity to move to the Lakers, but instead saw fit to settle in as crosstown rivals; they were bent on marking their own path, distinct from that of LeBron James, in order for their accomplishments to be viewed from perspectives devoid of the shadow of their generation’s best player by far. Which was all well and good, save for one thing: they needed to carve the accomplishments first.

Perhaps in another time, Leonard and George could well have seen their grand plans come to fruition. Unfortunately for them, a confluence of events that saw the National Basketball Association suspend the 2019-20 season, and then restart it in a bubble environment due to the novel coronavirus pandemic changing the dynamics of competition. And, in the end, after having been tried and measured, they were found terribly wanting. In retrospect, the indicators were there for all and sundry to see; their monumental collapse was predated by glaring warning signs that their undeniable talent base masked on occasion, but ultimately served to shine the spotlight on in the face of its notable underachievement.

Indeed, the Clippers were exposed by the gritty Nuggets as less — make that far less — than the sum of their parts. In the wake of the worst beatdown suffered by prohibitive favorites in pro hoops annals spanning three-quarters of a century, they spewed reasons that carried truth. They lost significant man-hours that told on their chemistry, and especially under pressure inside the ESPN Wide World of Sports Complex. When push came to shove, they folded. Said head coach Doc Rivers, “we didn’t meet our expectations, clearly. Because if we had, in my opinion, we’d still be playing.” And it wasn’t simply due to their elimination from contention, the third such time he coughed up a three-to-one series lead from the sidelines. It was the way they bowed out that stunned even casual observers.

For the record, the Clippers have company. In recent memory, the 2016 Warriors, who lost Games Five, Six, and Seven of the Finals to the underdog Cavaliers, come to mind. On the other hand, theirs was inarguably a choke job devoid of valid excuses; they held double-digit leads in each of the contests that could have netted them a conference finals berth, only to bow to the eminently poised Nuggets. They were particularly atrocious in the second half of the rubber match the other day; chaos reigned on both ends of the court, and on the bench as well. They couldn’t stop the bleeding, couldn’t buy a bucket, couldn’t come up with adjustments. In short, they couldn’t be the best version of themselves on which they hung their title hopes. Rivers took the blame in the aftermath, and aptly so. Meanwhile, George couldn’t help but contend that, “internally, we’ve always felt this is not a championship-or-bust year for us.” Sorry, but he can’t be more wrong. Never mind that his was a knee- jerk reaction told with wounds still fresh and disappointment continuing to linger. When he and Leonard were being given the red carpet treatment in the offseason, they were all casting moist eyes on the hardware; they gladly parted with a king’s ransom to assemble the roster conventional wisdom saw as the best-constructed in the league, and they figured to come out on top.

Now, the Clippers have a tight window. Because of their unprecedented meltdown, they have effectively mortgaged the remainder of the decade for just one more crack at the Larry O’Brien Trophy. Leonard and George will be free agents anew next year, and they could well be scrambling for, instead of basking in, respect should their supposed stalwarts walk. And the irony is that success doesn’t guarantee anything; all they need to do is look at the experience of the Raptors after a dramatic title run. They wound up beneficiaries then, and could turn out to be victims by the same token.

In the final analysis, the Clippers have only themselves to blame. They thought they could flip a switch anytime they wanted, and then had no fallback when they couldn’t. And because they foolishly counted dividends before any investment paid off, they have a lot of time on their hands to consider what they can do better through their last great opportunity to win.

ANTHONY L. CUAYCONG has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Nations need to invest $55T to reach emissions target

GLOBAL ECONOMIES will need to invest as much as $55 trillion through the middle of the century to meet an emissions goal and contain warming of the planet, according to a report by a group of executives from energy-intensive companies including ArcelorMittal SA, British Petroleum (BP) Plc and Royal Dutch Shell Plc.

Reaching net-zero carbon emissions target by 2050 will require large-scale electrification of industries, buildings and transport, as well as the use of hydrogen and biofuels in areas that can’t be electrified, according to the Energy Transitions Commission. Using less energy to produce more and recycling material will aid the efforts. Building renewable power plants will take up a bulk of the estimated investment.

More frequent and severe natural calamities across the world have heightened the need to contain climate change and end the use of coal and other fossil fuels while expanding clean energy. That’s forcing some of the biggest fossil fuel users to recast their energy mix and adopt greener sources of power.

The Intergovernmental Panel on Climate Change said in a 2018 report that reaching net-zero CO2 emissions by mid-century will be key to limiting global warming to 1.5 degrees Celsius above pre-industrial levels. Humanity is on course to miss that mark, with the World Meteorological Organization saying there is a 20% chance that global temperatures will breach the limit in at least one of the next five years.

The decarbonization strategy will involve phasing out of coal-fired plants, according to the report. Those that remain should be used as a peaking or a seasonal back-up to renewable power and should be retrofitted with carbon capture and storage.

The report highlighted some challenges on the way.

China, the world’s biggest coal user, “is not yet on a clear path towards a net-zero economy and new coal investments are continuing despite evidence that renewables are now highly competitive on a new-build basis in most of China’s provinces,” it said.

The nation can become a fully developed, rich economy with net-zero emissions by 2050 by rapidly deploying renewable power projects and reducing its dependence on coal, according to the report. The country needs to double annual investments in solar and as much as quadruple investments in wind energy, along with accelerating use of clean energy in industries and residential heating.

India, the second biggest coal user, is likely to see consumption of the fuel peak between 2027 and 2030, before gradually sliding down, Ajay Mathur, a co-chair at Energy Transitions Commission, said in a phone interview. The nation, which currently produces nearly 65% of its electricity from coal, can do without building new coal power plants, as its existing coal fleet is under-utilized and can be ramped up to meet any increase in demand, he said.

Yet, lack of reliable electricity remains a key challenge for the country, said Mathur, who also heads the New Delhi-based The Energy and Resources Institute. — Bloomberg

Red Cross warns coronavirus is driving discrimination in Asia

THE INTERNATIONAL Federation of Red Cross and Red Crescent Societies (IFRC) warned on Thursday that the novel coronavirus is driving discrimination towards vulnerable communities in Asia, including migrants and foreigners.

The humanitarian agency surveyed 5,000 people in Indonesia, Malaysia, Myanmar and Pakistan and found about half blamed a specific group for spreading the coronavirus, with many mentioning Chinese people, immigrants and foreigners.

“It is particularly concerning that both national migrant and foreign workers are blamed for the spread of COVID-19 as they are quite vulnerable already,” Dr Viviane Fluck, one of the lead researchers and the agency’s Asia Pacific community engagement and accountability coordinator, told Reuters.

She said there should be more focus on combating “rumors that are linked to underlying power dynamics and structural issues of inequality.”

More than half of the Indonesians surveyed blamed “foreigners and rule-breakers” while in Myanmar, the groups most often thought to be responsible were people from China and other foreigners.

In Malaysia, two-thirds blamed a “specific group,” most frequently mentioning migrants, foreign tourists and “illegal foreigners,” the researchers said.

Malaysian authorities arrested hundreds of undocumented migrants and refugees in May in a crackdown the United Nations said could push vulnerable groups into hiding and prevent them from seeking treatment.

Police said at the time the operation was aimed at preventing people from traveling amid movement curbs.

In Pakistan, most people surveyed blamed inadequate government controls on the Iranian border, followed by nationals including pilgrims coming back from Iran and then people from China.

In all four countries, higher education had a small impact on whether respondents blamed a specific group, with university graduates slightly less likely to hold certain people responsible, the researchers said. — Reuters

Now would be a good time to invest in commodities, ex-Goldman CEO says

It’s probably a good time to invest in commodities now when prices are lower, according to former Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein.

“From an inflation point of view, as an investor, I think investing in material sectors while they’re under-appreciated is not a bad thing now,” Mr. Blankfein said at the CME Group Inc.’s virtual metals briefing. “Everyone has decided that we’ll never have inflationary pressure again, oil prices will never go up again. I don’t think so.”

The Bloomberg Commodity Index is down almost 11% this year, compared with a 2.1% return for the MSCI World Index and 8.8% for iShares TIPS bond ETF.

Mr. Blankfein’s comments echoed value investor Kopernik Global Investors LLC, which has has about $3.3 billion in asset under management. Its Kopernik Global All-Cap Fund is up about 23% this year, beating 97% of its peers, according to data compiled by Bloomberg.

Kopernik’s director of research, Alissa Corcoran, said that even though some short-term events such as demand destruction due to COVID-19 haven’t been positive, some commodities would likely see higher prices in the longer-term due to better supply-demand fundamentals.

Mr. Blankfein, who joined Goldman as a metals salesman in 1982, wasn’t as optimistic about precious metals, however. He said he’s unclear if it’s a good idea to invest in gold and silver “because it’s been so long since those metals played a role as a store of value.”

Gold jumped to a record in early August and has soared almost 30% in 2020, as the coronavirus pandemic sparked a surge in demand for haven assets. Unprecedented economic stimulus from governments and central banks worldwide has also raised the specter of inflation, adding to the appeal of bullion. — Bloomberg

Trump’s vaccine promises defy the lessons of pharmaceutical history

Every effort to develop a new medicine is like launching a ship across the ocean to hunt for riches. Over the years, we’ve improved the hulls and masts, the maps are better, the sailors more experienced. But even so, vessels get turned back or new lands are barren. And, sometimes, a squall takes down the boat and all her crew.

The Trump administration has set sail on one of the most ambitious vaccine development efforts in history. Operation Warp Speed is likely to deliver a COVID-19 inoculation in a fraction of the years it would usually take. If it does so, it could save the lives of hundreds of thousands of people and economies around the world.

But the administration has also offered timelines for a vaccine that fly in the face of almost every experience in pharmaceutical history. On Tuesday night, President Donald J. Trump said a shot could be ready in three or four weeks. Then, on Wednesday, Paul Mango, deputy chief of staff for policy at the Department of Health and Human Services and one of the senior leaders of the Warp Speed program, said every American could be vaccinated by the end of March.

Mr. Mango said that there are enough doses in production and that trials are moving at a speed so that “the combination of those two will permit us to vaccinate every American before the end of first quarter 2021.” A few hours later, White House Press Secretary Kayleigh McEnany said that “we do believe that it will be widely available by the end of” this year, though also referred to doses of the vaccine being production by then, as opposed to actually distributed. 

Mr. Mango’s and Ms. McEnany ’s remarks were contradicted by the head of the Centers for Disease Control Prevention (CDC), Director Robert Redfield, who told Congress Wednesday that it would likely take until late spring or the summer of next year for most Americans to have access to a vaccine. Other top US health officials have said it’s not likely a vaccine will be ready until the end of the year, and that expanding access to the more than 300 million people living in the US will take longer.

“It would be aspirational to do that,” said Anthony Fauci, the head of the National Institute for Allergy and Infectious Diseases. “But I think it’s more toward the middle to the end of the year that you can get people vaccinated. It depends on what the vaccine is.”

The US has launched many ships. Pfizer Inc., Moderna Inc., and AstraZeneca Plc have headed out at a rapid clip. The early data look promising, and late-stage trials in tens of thousands of volunteers could produce a rapid answer.

But to deploy a vaccine widely by early next year, it’s worth keeping in mind what has to go right:

  • One of the vaccines has to work.
  • The vaccine that works has to be one of the handful that are already in late-stage trials.
  • There can’t be a major safety concern or delay.
  • The clinical trials have to generate strong evidence.
  • The FDA has to accept that evidence and review it rapidly.
  • The manufacturing has to go near perfectly.
  • Hundreds of millions of doses must be delivered around the country, likely with some degree of low-temperature storage requirements.
  • Even in vaccination efforts that the US runs every year, it’s hard to meet the goal of wide uptake. For the 2017–2018 flu season, only 37% of Americans actually got a vaccine, according to the CDC. Many people get it at work, at school, at drugstores, or in hospitals—places that are largely closed or that many Americans are avoiding because of the pandemic.

There are a few loosely understood rules of running a pharmaceutical company, outside the necessity of making a reasonable return for shareholders.

A first rule is don’t kill anyone. A second one is to help people live longer, better lives. The third is not to get sued by securities regulators.

It’s a simple set of goals that often runs into the brutal reality of drug development, often summed up by insiders with the oft-repeated pearl, “science is hard.” Every year, the pharmaceutical industry spends billions on failure. Drugs seem like miracles, then turn out to be a mirage. Much of the money companies invest in research goes toward projects that are stopped because they either don’t help people or might hurt them.

The result is that most companies—there are, of course, exceptions—are conservative in their pronouncements. And some have been in preparing for a vaccine. Merck & Co. has been quietly betting that the first shot across the line won’t necessarily be the best, and that its experimental vaccine could top the early winners. Some form of vaccine is likely to be needed for years, as well, leaving plenty of room for incremental improvements like better protection, more durable immunity, and more certain safety.

To that end, earlier this month, the National Academies of Sciences, Engineering, and Medicine published a report summarizing expert recommendations for distributing a COVID-19 vaccine.

On page 11, it cites a key lesson from past mass vaccination efforts: “Under-promise and over-deliver.”

Having violated the first half of that advice, the best hope now is that the US delivers on the second. — Bloomberg

Globe Honored as Employer of the Year – Telecom Stevie® Award Winner in 2020 Stevie Awards for Great Employers

For the third consecutive year, Globe Telecom bagged the Gold Stevie Awards for Employer of the Year in Telecommunications.  The company also received four other recognitions primarily for its efforts to secure the workplace and take care of its employees during the pandemic.

The Stevie Awards for Great Employers recognize the world’s best employers and the human resources professionals, teams, achievements and HR-related products and suppliers who help to create and drive great places to work.

“We are honored to receive the Stevie Award for Employer of the Year for Telecommunications.

Globe is always committed to the creation of a workplace that can provide a holistic development for our employees — where they can learn, grow, and help in nation-building.  Even in these trying times, we will continue to dedicate each day to enhance the lives of our employees so that together we can create innovative products and solutions and be of better service to our customers,” said Renato Jiao, Globe Chief Human Resource Officer.

To create a high-performing organization through a purpose-driven workforce, Globe continues to come up with programs and opportunities that empower its employees such as flexible work arrangement even before the work-from-home (WFH) setup became the norm, a one-stop app for human resource requirements, flexible benefits program, learning interventions to sharpen employees’ technical and leadership skills, and paid time off for volunteering activities, among others.

As a result of these programs, Globe’s employee-centric organizational culture has been recognized widely in the industry in 2019. The organization has generated a 91% rating in the Sustainable Engagement Index, an above industry average rating in the Human Resource Asia Awards, and an 88% rating on the Organizational Health Index Score.

Globe also received two Silver Stevies for “Most Valuable HR Team” and the “Most Innovative Use of HR Technology During the Pandemic” for its WOW from Home: How Globe redefines working from home and DUDE Bot projects, respectively.  The DUDE bot or Digital Usher for Disasters and Emergencies was created to monitor employees’ health and respond to their COVID symptoms as well as provide them with links to official resources and tips on how to deal with the virus.

WIth working from home becoming the standard arrangement, numerous challenges have surfaced. Globe responded to these challenges by providing WFH tools such as an updated mobile data plan and partially subsidized broadband plans, a virtual Information Technology bar with remote support, vacation leave encashment for personal finances or availment of gadgets, employee discounts on laptops, accessories, and ergonomic chairs, and an in-house courier service that buys and delivers groceries and other necessities.

The company also has an employee wellness program that connects employees to consultation channels for physical or mental health concerns. There are virtual wellness programs webinars, online workout sessions, and even quiz-show podcasts to keep employees healthy and happy.

Likewise, Globe provides work and meeting etiquette tips to ensure work-life balance and assist employees during the transition. It also led to bots that automate health check-ups, helpdesk, and give virtual recognition.

Globe also received a Bronze award for “Most Valuable Employer” for its COVID-19 response. Aware of its crucial role as a telco, Globe has implemented measures and strategies as early as February to ensure that customers are connected,while its employees remain safe from the virus.  Members of the critical skeletal force are also provided additional support through food subsidy, free transportation, free accommodations, complete medical coverage, life insurance, personal protective equipment, and premium pay.

Globe’s Wonderful Employee Experience program also bagged a bronze for “Achievement in Employer Engagement.”  The program’s purpose was to deliver a wonderful experience to employees, uplifting their lives, promoting their wellness, and engaging them to have their best Globe Life.

The awarding ceremonies will be held virtually on November 5, 2020.

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

Forget banana bread, try this dish sponge: pandemic inspires ‘illusion cakes’ in Hong Kong

HONG KONG — A bakery studio in Hong Kong is aiming to bounce back from its COVID-19 slump with “illusion cakes” that appear to be everyday objects until you take a slice.

Dear Harley Cake Studio’s founders Alison Chan and Cony Lam came up with the idea after baking a custom cake for Ms. Chan’s nephew, who loves bananas: a thin layer of yellow fondant wrapped around dark chocolate and Italian meringue butter cream.

Posting such creations on social media brought a new wave of customers to their shop, prompting them to switch the focus of their business to special orders and workshops for wannabe cake illusionists.

Now they can make-to-order cakes that look uncannily like almost anything, from a pair of flip-flops to sea-urchin sashimi or even a dish sponge.

“This illusion cake wave is … kind of saving our business,” Ms. Chan said.

From a crisis level of three-to-four weekly orders during March and April, the studio is now receiving 15-20 orders a week. An illusion cake costs at least HK$1,500 ($194), with some going for HK$12,000-HK$13,000.

“I’m personally super thrilled that we have reached this stage … We never expected that this will blow up,” Ms. Chan said.

“We were just making things that we love, we love baking, we love cake decorating, and we are just making things for fun.”

Customer Chase Ko attended one of Dear Harley Cake Studio’s private classes to learn how to make custom cakes for her boyfriend’s birthday.

“My boyfriend likes Japanese food and Pokemon a lot. Their sushi illusion cake is very cute so I want to design another version with dolls on top of the rice,” Ms. Ko said. — Reuters

Sony PlayStation 5 to launch In November

TOKYO/STOCKHOLM — Sony Corp. said on Wednesday the next-generation PlayStation 5 console would launch in November priced at $499.99 and $399.99 for a version without a disk drive, as it squares off against rival Microsoft Corp.’s Xbox console.

The pricing announcement sets the stage for a year-end showdown between Xbox and PlayStation, as consumers continue to flock to gaming optimized consoles offering exclusive titles.  — Reuters

Fears surge in demand for hand sanitizer could fuel child labor

LONDON — Soaring global demand for hand sanitizer to combat the new coronavirus could increase the use of forced and child labor in sugarcane plantations, UK-based researchers said on Thursday.

Sugarcane is used to make ethanol for alcohol-based gels and seven of the world’s largest sugarcane producers—including Brazil, Mexico and Thailand—have a high to extreme risk of child and forced labor, said analytics firm Verisk Maplecroft.

“A lot of structural challenges that producing countries … already had are now being laid bare by the pandemic,” said Jimena Blanco, head of its Americas team.

After decades of progress, the United Nations (UN) has warned that millions of children around the world could be pushed into work as schools have closed and families struggle to survive the economic crisis triggered by the coronavirus pandemic.

The UN’s special rapporteur on contemporary slavery said on Wednesday there was an acute risk the poorest would be pushed into forced labor and firms that exploit workers making drugs and equipment to fight COVID-19 should be held accountable.

A global scramble for Personal Protective Equipment (PPE) like masks has led governments and businesses to rush into deals with new suppliers.

“They are prioritizing urgency as opposed to social impacts that they are causing,” said Victoria Gama, a human rights analyst at Verisk Maplecroft, calling for increased transparency in supply chains.

She said it was hard to know how much sugarcane ends up as hand sanitizer as it is used in many products, from sugar to biofuels.

CONSUMER PRESSURE

In Mexico, where Verisk Maplecroft rated the risk of child labor as extreme, schools are closed due to COVID-19 and learning is being done via television, although some children in rural areas do not have sets in their homes.

The charity World Vision is currently working to ensure school enrollment for migrant children, discouraging drop outs and improving teacher training.

The project’s director Oscar Castillo is worried that more minors will start working in the fields if schools do not open in January.

“There has to be a comprehensive approach,” Mr. Castillo said, adding that buyers also had to do their due diligence.

“If you say ‘I’m not buying from you anymore’, it creates pressure but you’re not helping solve the problem.”

While fears of spreading the virus and government budget cuts make labor oversight more difficult, potentially leading to more abuses, growing consumer pressure for ethical goods is driving positive change, said Blanco of Verisk Maplecroft.

“We’ve made huge strides and from a business perspective it’s not going to go away, it’s going to become more intense if anything,” she said. — Reuters

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