THE US central bank and Congress have responded more to the COVID-19 crisis than they did in the last crisis, Minneapolis Federal Reserve Bank President Neel Kashkari said, and they need to do still more to return the economy faster to its pre-crisis footing.
“Right now I’m not concerned about it — this is like wartime spending,” Mr. Kashkari said at an online seminar held by Montanaís Bureau of Business and Economic Research, in response to a question about the risks of government borrowing too much in the face of the pandemic. “We have the capacity to do what we need to do.”
The Fed has said it will keep interest rates at their current near-zero level until the economy reaches full employment and inflation not only reaches 2% but looks set to exceed it for some time. It has also pledged to keep buying at least $120 billion of Treasuries and mortgage-backed securities until there is “substantial further progress” toward both of those goals.
“The key now is for the Federal Reserve to keep our foot on the monetary policy gas until we really have achieved maximum employment as we call it,” Mr. Kashkari said. “And I think it’s going to be important for Congress to continue to be aggressive supporting people who have been laid off, supporting small businesses until we really get the pandemic behind us and restore the economy.”
Mr. Kashkari added that the Fed is still far from even thinking about making adjustments to its balance sheet policy. — Reuters
NLEX CORP. said it would conduct a full investigation of an accident at the NLEX Connector Road project site.
“Initial reports show that four workers were injured, and immediately taken to a nearby hospital for treatment,” NLEX Corp. said in an e-mailed statement by late Monday.
It said three of them sustained minor injuries and were eventually cleared to go home.
The accident occurred around 4:50 p.m. on Monday at the NLEX Connector Road project site in the vicinity of the Blumentritt Station, the company added.
The worker who sustained the most injury was still at the hospital as of Monday night.
NLEX Corp. vowed to extend all possible assistance to the injured workers.
“The company is committed to upholding safety standards on all its projects, and will be conducting a full investigation of the incident,” it said.
The NLEX Connector Road project is the eight-kilometer toll road linking the tail of NLEX Harbor Link Segment 10 at C3 Road in Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila.
NLEX Corp. is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., 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
STOCKHOLM — Spotify Technology SA on Tuesday made a long-awaited debut in South Korea, the sixth largest music market in the world and home to the K-pop music genre. The Swedish music streaming giant is currently present in over 90 countries and has entered into several new markets in the last two years including Russia, India and the Middle East. In South Korea, the company will compete with music streaming companies such as Melon, Genie, FLO, and Apple Music. “We wanted to be super thoughtful in how we approach coming into a market like this as we didn’t want to just take a global service and launch it into South Korea,” Alex Norstrom, Chief Freemium Business Officer of Spotify, told Reuters. The offering is tailored to the market with right relationships with local partners, both on the content side as well as on the distribution side, he said. Spotify will give Korean listeners access to over 60 million tracks along with a wide range of Korean music, including K-pop, Hip Hop, and Indie. K-pop is a multi-billion dollar global music industry with bands like BTS and BLACKPINK building huge fan bases outside South Korea. — Reuters
THE ANTI-MONEY Laundering Council said suspicious transaction reports involving business entities and legal persons reached P52.328 trillion in 2015 to 2019. — BW FILE PHOTO
GAPS IN MONITORING suspicious transactions performed and channeled throughinformal businesses and legal persons still need to be addressed, the Anti-Money Laundering Council (AMLC) said in a report.
From 2015 to 2019, the value involved in 87,190 suspicious transaction reports involving business entities and legal persons reached P52.328 trillion, based on a study conducted by the watchdog.
“The overall risk of legal persons and business entities to money laundering is medium high that requires collective mitigating strategic actions that can be implemented from short to medium term,” the AMLC said in a report published on Tuesday.
The study found that P4.6 billion or around 95% of frozen assets in the sample cases involved cases related to graft, e-commerce violations, and illegal drugs.
It noted that cash-intensive industries are at risk of being avenues for “dirty money” activities of criminals in order to hide the nature of their funds.
“Given the anonymous character of cash, authorities face difficulties in tracing the nexus between the funds and the criminal activities,” AMLC said.
Nearly half (49%) of suspicious transaction reports used in the study involved cash deposits.
The watchdog said they observed a trend that criminals are using businesses like wholesale or retail trading to move illegal funds that will be mixed with legitimate income.
It said some cases involved businesses established by Filipino dummies backed by foreign nationals that have control and ownership of the firms.
Most or 95% of suspicious transaction reports were filed by banks, followed by credit card firms (1.11%), while those from money issuers rose to 1,148 from 2017 to 2019 from having no reports in the preceding two years.
On the other hand, reports filed by insurance and financing companies and investment houses only comprised 0.12% and 1.24%, respectively, of the total.
“Based on the sample suspicious transaction reports, there is low threat involving the insurance sector, while there appears a low-medium threat on the use of financing companies and investment houses by entities suspected to be involved in illegal transactions,” the AMLC said.
The AMLC on Sunday issued implementing rules and regulations following the signing of Republic Act 11521 on Friday that strengthened the country’s anti-money laundering and counter-terrorism measures.
This beat the Feb. 1 deadline given by the Financial Action Task Force for the Philippines to address gaps in its anti-money laundering and counter-terrorism financing measures. — L.W.T. Noble
ABS-CBN CORP. said it is open to a partnership with Cignal TV, Inc. for the inclusion of TeleRadyo, Cinema One, and ANC in its channel lineup.
“Yes, we are open to it. We are open to any partnership that helps grow the audience of any of our channels,” ABS-CBN President and Chief Executive Officer Carlo L. Katigbak said at a special stockholders’ meeting on Tuesday, when asked by a stockholder on the matter.
ABS-CBN stockholders also approved the company’s stock purchase and stock grant plans for its employees and artists.
The media company has two stock purchase plans.
Plan 1 will apply to all regular employees who agreed to a pay reduction from September last year until February 2021, while Plan 2 will be offered to all employees of ABS-CBN and its subsidiaries. “Those who will participate will pay their subscription until December 2021,” Mr. Katigbak said.
Meanwhile, the company’s stock grant plans will be given to employees who were promoted anytime between September 2020 to December 2021, and who did not receive any salary adjustment for the said period.
“There will be multiple award dates depending on the time of promotion,” Mr. Katigbak said.
“In addition to stockholders’ approval, the ABS-CBN stock purchase plans and stock grant plans are still subject to the approval of the Securities and Exchange Commission,” he added.
The shares under the plans are also subject for listing with the Philippine Stock Exchange.
Asked how the stock grant plans would benefit the company’s minority shareholders, ABS-CBN Chairman Martin L. Lopez said: “The ability to retain employees and continue to benefit them will benefit all shareholders, including the minority shareholders.”
“This is also a recognition for our employees who agreed to take a voluntary pay cut to help the company during this challenging time,” he added.
The former broadcast giant has partnered with Zoe Broadcasting Network, Inc. to show several of its programs on the A2Z channel.
ABS-CBN has also partnered with TV5 for its variety show ASAP Natin ‘To and the FPJ: Da King movie block.
Cignal TV also carries some ABS-CBN channels, such as Kapamilya Channel, Jeepney, Cinemo, and Knowledge Channel, through its pay TV service.
ABS-CBN shares closed 2.08% higher at 12.76 apiece on Tuesday.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that owns and operates TV5 and CignalTV has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
AS A SOCIETY, we witnessed workers grapple with the strains of the coronavirus disease 2019 (COVID-19) pandemic, experienced the mental stresses of social isolation, and struggled to achieve work-life balance while working remotely — all of which has taken an enormous toll on our “mental health.” But do we know what this elusive buzzword means?
Mental health goes beyond the absence of mental disorders such as depression and anxiety. Mental health, according to the World Health Organization (WHO), refers to an overall state of well-being where an individual realizes their abilities, can cope with the normal stresses of life, and is able to work productively and contribute to their community. Anyone could suffer from poor mental health at some point in their lives. However, it isn’t easy to identify those struggling with mental health issues, as it is a “silent killer” according to WHO Director-General Tedros Adhanom Ghebreyesus. Realistically, it could take years before people feel comfortable opening up about their mental health struggles, and by then, it could be too late.
Just because mental health issues are invisible, does not mean they do not exist. Globally, nearly 1 billion people have mental health issues and it’s reported that people with serious mental conditions die two decades earlier than those without mental illness. According to the WHO Special Initiative for Mental Health survey in early 2020, at least 3.6 Filipinos suffer from one type of mental, neurological, or substance use disorder.
Yet, mental health remains a topic that is poorly understood. For many people, this is still a hard topic to talk about. People from different demographics, ethnicities, and countries have varying attitudes towards mental health. Poor mental health tends to be taken as a sign of weakness; therefore, some people disregard mental health issues, whilst others deny their existence altogether. Due to the social stigma and costs that surround the topic of mental disorders, most of the people that suffer from mental health issues do not receive treatment. Without proper treatment, people are forced to deal with these issues alone, leading them further into a vicious cycle of stress and despair. As coworkers, employers, and leaders, it is imperative for us to appreciate and value people for who they are and to be sensitive to what they are going through daily. No one should struggle with mental health alone.
GAINING A FRESH PERSPECTIVE While the COVID-19 pandemic has further exacerbated the global mental health crisis, with close to one-third of Asia Pacific’s remote workers admitting that the pandemic has increased burnout at work, employers must recognize that mental health issues have always been prevalent at the workplace. Currently, people are constantly working at breakneck speeds to meet ever-present deadlines, and some even take leave to do more work. To make matters worse, there is a lack of transparency with regards to communicating these issues in the workplace. For instance, 63% of employees do not feel comfortable revealing to their coworkers that they took time off work because of mental health issues. As a result, there is a lack of awareness about the mental health battle that workers have been facing for years.
There is no doubt that it is challenging to consistently promote a healthy working environment, especially as we enter the post-pandemic world and companies are striving to play catch-up due to the perception of lost time owing to the pandemic. It seems almost counter-intuitive to suggest taking a step back to gain a fresh perspective. Yet, that is exactly what we need to do. By reflecting on the most important things 2020 has taught us, we should realize that amidst the uncertainty of this year, our coworkers have weathered the storm with us. They have been challenged, stretched, and tested like never before, and have come out of the pandemic with a newfound resilience and stoicism.Without their collective grit, businesses would not have survived the pandemic. Hence, the bottom line is that people should always come first. This mentality allows us to safeguard the happiness, health, and mental well-being of our employees, and gives us the ability to pave the way to build a better future of work. It’s not only the right thing to do, but it’s the smart thing to do. A recent study led by WHO estimated that for every $1 invested in treatment for common mental health disorders, there is a return of $4 in improved health and productivity.
On the flip side, there are significant costs that come with the inability to address mental health issues. Not only are employee morale and employee retention expected to decrease, but also, mental health issues cost the global economy $1 trillion per year in lost productivity. Poor mental health affects employees as a person and inevitably affects the business. To combat this issue, it is important for employers and employees alike to realize that mental health is a part of our overall well-being, and that it should be normalized instead of stigmatized. Therefore, there are things we can do to address mental health.
HERE ARE A FEW SUGGESTIONS: Don’t be afraid to talk about mental health, especially if it’s something that you’ve not experienced before. Initially, there will always be questions and awkward pauses, but this is all part and parcel of learning how to deal with a phenomenon that affects millions of people worldwide. The important thing to remember is that you’re not alone and that chances are, as you open up, you will find more people that have experienced the same thing as you have. All you need to do is to take that first leap of faith and trust that there will be people that will support you throughout your mental health journey. If you’ve not personally experienced mental health issues, try educating yourself on the topic so that you will be better equipped to help the people around you in the future.
Always reach out when you need support. Apart from having a good support system at home, be honest and transparent with your boss and the people you work with. At 3M, employees are encouraged to regularly communicate their preferences for how they prefer to work through the FlexAbility program, which encourages supervisors to be supportive and helpful by trying to remove any obstacles employees may face at work. It is not a one-size-fits-all program; rather, it is customized based on an employee’s role and personal circumstances. Open communication facilitates better relationships and is more likely to result in a better workflow.
Be inspired and try new coping strategies — whether it’s a fitness activity that you’ve always wanted to try out or developing a habit for practicing mindfulness. Take advantage of the community around you. Engage and connect with others so you can be inspired by new ideas on how to cope with stress. For instance, to help employees navigate the post-pandemic world, 3M held a Global Virtual Well-being Fair to allow employees to gain access to resources that would help their physical, mental, and emotional health and well-being.
Be aware of the resources that are available to you. Some companies like 3M offer resources such as the Employee Assistance Program (EAP), which allows employees to be properly supported throughout their careers. The EAP offers a wide range of services, whether that is tele-counseling or just asking for advice on how to handle life as a working parent. The goal of these resources is to allow employees to receive help in all aspects of their life when needed.
All in all, achieving good mental health should be thought of as a constant work in progress — a journey, instead of a fixed endpoint. With the right resources, working environment, and support, we can move towards creating a workplace that is both inclusive and collaborative. In doing so, we are making a conscious effort to solve problems together in the face of adversity. Mental health affects us all and it is time to face the music if we want to be responsible, caring, and empathetic leaders in the 21st century.
Jim Falteisek is vice-president of 3M Asia Corporate Affairs.
NEW YORK — The family of Tony Bennett has revealed that the legendary singer has been suffering from Alzheimer’s disease, breaking their silence on his condition four years after he was diagnosed. His wife, Susan, told AARP Magazine in an interview published on Monday that the 94-year-old singer, best known for the ballad “I Left My Heart in San Francisco,” had been losing his ability to make decisions. Despite the diagnosis in 2016, Bennett recorded a new album with Lady Gaga that is expected to be released later this year, the magazine and Bennett’s publicist said. The album, a follow-up to their 2014 collaboration Cheek to Cheek, was recorded between 2018 and 2020. AARP Magazine said raw documentary footage of the sessions showed Ms. Gaga at one point when Bennett, in good voice but at times seeming lost and bewildered, sang the solo passage of a love song. “Gaga looks on, from behind her mic, her smile breaking into a quiver, her eyes brimming, before she puts her hands over her face and sobs,” the magazine said. Mr. Bennett, an 18-time Grammy Award winner who started his career in the 1950s, remains upbeat but his condition is increasingly deteriorating, his wife said. “He would ask me, ‘What is Alzheimer’s?’ I would explain, but he wouldn’t get it,” his wife told AARP Magazine. Gayatri Devi, a neurologist at Lenox Hill Hospital in Manhattan, diagnosed Mr. Bennett in 2016. Ms. Devi has strongly encouraged Mr. Bennett’s family to keep him singing and performing for as long as he can enjoy it. The fatal disease causes a decline in memory, thinking and reasoning skills, according to the Alzheimer’s Association. Mr. Bennett so far has been spared the disorientation that can sometimes prompt patients to wander from home or experience terror, rage or depression, the magazine article said. “He might never develop these symptoms. But there was little doubt that the disease had progressed. Even his increasingly rare moments of clarity and awareness reveal the depths of his debility,” the magazine said. — Reuters
LAND BANK of the Philippines (LANDBANK) launched a new credit facility that aims to support small farmers and micro, small, and medium enterprises (MSMEs) involved in cacao, coffee, coconut, and processed fruits and nuts.
The state-owned bank said in a statement on Tuesday that the new credit facility seeks to give financial assistance to help boost the incomes of small farmers and provide employment to people in Eastern Visayas and Mindanao.
“LANDBANK will manage the credit facility in partnership with the Department of Trade and Industry (DTI), which will endorse beneficiaries qualified to borrow under the facility that include cooperatives, farmers’ associations and organizations, nongovernmental organizations (NGOs), and MSMEs,” it said.
LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said the credit facility targets to improve the link of local agriculture value chains, starting from production to distribution.
“Together with DTI, we hope to increase the productivity and income of farmers and agri-based MSMEs who are crucial to the growth of these sectors,” Ms. Borromeo said.
Under the new credit facility, the state-run bank said borrowers can avail up to 90% of the project cost, net of matching grant from the DTI. The loan has a 5% per annum fixed interest rate for the first three years to fund production costs, machinery, facility, and equipment.
Projects eligible for funding under the credit facility include the production of crops such as cacao, coconut, coffee, and processed fruits and nuts; development of new plantation, replanting, rejuvenation, and rehabilitation of old trees; establishment of nursery gardens; post-harvest activities such as fermentation and drying; processing or manufacturing such as roasting, grinding or milling, packaging and storing; and trading.
LANDBANK said loans for production are payable according to the crop cycle or gestation and payback period of the project, while loans for acquiring fixed assets such as machinery can be paid based on project cash flow.
It added that loans to be used as permanent working capital are payable up to three years, while loans for working capital are payable up to one year.
“The newly launched credit facility is in support of the Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth Project) implemented by the DTI and funded by the International Fund for Agricultural Development,” LANDBANK said. — Revin Mikhael D. Ochave
CHILDREN who have been confined at home over the pandemic are at risk of depression, warned experts.
“We are concerned about younger children who are deprived of social and emotional learning,” said Dr. Francis Xavier Dimalanta, a member of the board of trustees of the Philippine Pediatric Society, Inc. “A silent pandemic is forthcoming,” he added as he noted the rising numbers of individuals who reported feeling sad, fearful, anxious, and depressed since the start of the pandemic. “It is important that we are cognizant of this. … The biggest strength we have now is our immediate family.”
“Social confinement is a challenge because humans are social,” added Dr. Adelaida Gines, president of the Philippine Guidance and Counseling Association. “Play is a serious activity for children but they don’t go out anymore.”
Children are also affected by how well their parents cope with their own stress, said Dr. Rhodora Andrea Concepcion, president of the Philippine Society for Child and Adolescent Psychiatry.
To address this “silent pandemic,” the Filipino Family Wellbeing Virtual Conference will bring together families, educators, experts, organizations, and government agencies in multisectoral discussions on Feb. 12 and 13.
“We organized this to identify how the Filipino family can develop to become holistically well,” said Dr. Sheila Hocson, a consultant at Unilab Foundation, Inc., which leads the Bayanihan for Wellbeing Initiative that organized the said event. “A healthier Philippines starts with healthier families.”
Family well-being is defined as the “safety, health, and financial security of the whole family,” (where “health” encompasses both physical and mental health) by the National Center on Parent, Family, and Community Engagement. — Patricia B. Mirasol
THE Trade department’s export promotion arm is targeting $16.25 million in sales in its first two international trade events this year.
Five Philippine food companies will exhibit their goods at virtual organic food event Biofach in Germany this month, while 13 will participate in the hybrid physical and digital Gulfood Hotel and Equipment Exhibition and Salon Culinaire in Dubai.
The Center for International Trade Expositions and Missions (CITEM) said in an e-mail that the Philippine delegation targets $8.5 million in export sales at the Biofach event and $7.750 million at the Gulfood event.
Last year, the Philippines collected $36.37 million at Biofach, exceeding its $10.37-million target. Participants at Gulfood 2020 earned $102.6 million in export sales.
This puts the 2021 target at 88% lower than the $138.97 million generated at the physical pre-pandemic events last year.
CITEM in May last year urged exporters to explore online channels after trade shows were cancelled due to the ongoing coronavirus disease 2019 (COVID-19) pandemic. Since the lockdown, CITEM has joined four international shows either in digital or hybrid formats.
Philippine businesses at the China International Import Expo in November received $6.17 million in onsite booked sales and $455,689 in export commitments.
CITEM Executive Director Pauline Suaco-Juan in a statement said that the agency is migrating its processes to digital.
“The digital format opens you up to a bigger portion of the world rather than just people who physically go to the trade shows. As we know, sourcing now, because of digital, is enabled 365 days of the year, 24/7. And it’s good for our products to be searchable online,” she said.
Gulfood physical exhibits, for example, will have QR codes that will lead potential buyers to the inbox of Philippine exhibitors. — Jenina P. Ibañez
LOS ANGELES — Westworld TV and film actress Evan Rachel Wood on Monday said her former fiance, rock singer Marilyn Manson, “horrifically abused me for years.” Ms. Wood, 33, who dated Mr. Manson, 52, from around 2007 and was briefly engaged to him in 2010, made the accusation in an Instagram post. “The name of my abuser is Brian Warner, also known to the world as Marilyn Manson. He started grooming me when I was a teenager and horrifically abused me for years,” she wrote. “I was brainwashed and manipulated into submission,” Wood added. Representatives for Manson did not return requests for comment on Monday. The singer-songwriter is known for his Gothic-inspired black outfits and heavy make-up. His hits include “The Dope Show” and “Personal Jesus.” Ms. Wood has testified before the US Congress and California Senate about her experience with domestic violence and rape without identifying who was responsible. Three other women on Monday also posted accusations on Instagram against Mr. Manson of emotional and psychological abuse in the last 10 years. She said on Monday that she was “done living in fear of retaliation, slander and blackmail… I stand with the many victims who will no longer be silent.” The actor’s representatives did not return a request for further comment on Monday. — Reuters
HONG KONG insurance giant AIA Group Ltd. and China Strategic Holdings Ltd., an investment firm backed by billionaire Henry Cheng, are among final bidders for Bank of East Asia Ltd.’s (BEA) life insurance unit, according to people with knowledge of the matter.
The companies have submitted binding bids for the asset, proceeding into the final stage of negotiations, the people said, asking not to be identified because the deliberations are private. BEA, which counts activist investor Paul Singer’s Elliott Management Corp. as a shareholder, could raise about $500 million to $600 million from a potential transaction, people familiar with the matter have said.
An announcement on the sale outcome could come as early as this month, the people said. Other bidders could emerge and talks could still be delayed or even fall apart, the people said. China Strategic confirmed in an exchange filing that it’s been selected as one of the shortlisted bidders and has submitted an offer, while representatives for AIA and BEA declined to comment.
Shares in China Strategic extended gains after the Bloomberg News report on Monday, and rose further by as much as 25% on Tuesday in Hong Kong, their largest intraday gain since Dec. 29. After closing higher on Monday, shares in BEA increased as much as 3.6% on Tuesday while AIA declined as much as 1%.
BEA in September started a process of selling its life insurance unit in a bid to boost profitability and lift its shares. As part of the deal, the Hong Kong-listed lender is also seeking to enter into a long-term exclusive distribution agreement that will provide an ongoing source of revenue as a distributor of insurance products through its platform. Goldman Sachs Group, Inc. has been helping BEA on the strategic review and potential sale of the asset.
BEA Life Ltd., the bank’s wholly owned life insurance arm, had about HK$25.4 billion ($3.3 billion) in assets as of the end of June, according to BEA’s latest financial report. BEA’s commission income from sales of BEA Life products increased by about 49% in the first half of last year despite a drop in new premium income. BEA is scheduled to report its 2020 full-year earnings on Feb. 24.
Founded in 1919, AIA is based in Hong Kong and has a presence in 18 markets. Its third-quarter new business value fell 28% to $706 million from a year earlier amid the impact from the coronavirus pandemic. It has a market value of about $150 billion.
Listed in Hong Kong, China Strategic’s operations range from investing in securities and loan financing to trading metal minerals and electronics components as well as securities brokerage, according to its website. New World Development Co. Chairman Henry Cheng holds about a 17% stake in the company, according to data compiled by Bloomberg. In 2010, China Strategic scrapped a joint offer for a majority stake in Nan Shan Life Insurance Co., held by American International Group Inc., following a formal rejection notice from the Taiwan government. — Bloomberg
