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Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • AirAsia eager to introduce bio-fuel powered flight, supported by Airbus

    AirAsia eager to introduce bio-fuel powered flight, supported by Airbus

    AirAsia Group Bhd is expected to introduce a biofuel-powered flight in the future as the airline initiated research and developments (R&D) into aviation biofuels supported by Airbus SE.

    Group chief executive officer Tan Sri Tony Fernandes has expressed interest to explore the production of alternative and sustainable aviation biofuels in Malaysia.

    “However, it is too early to comment right now but obviously, we as an airline would like to do more in biofuels. We can not do it alone. So, it is great that Airbus supports our vision of trying to get biofuels into the aircraft. Hopefully that dream is not so far away with Airbus’ support,” Fernandes said after the signing ceremony between AirAsia and Airbus involving the airline’s 42 new aircraft orders in Kuala Lumpur last Friday.

    Market observers believe the move likely to cut the group’s jet fuel cost and reduce carbon emissions.

    Fernandes said aviation biofuels R&D requires a lot of work involving comprehensive studies on how the alternative fuel burns compared with the conventional kerosene jet fuels.

    He said technical support from airframe maker Airbus SE would facilitate the airline’s initiative to develop its aviation biofuels.

    Airbus had last Friday announced it would increase participation in the Aerospace Malaysia Innovation Centre (AMIC) to provide more funds for joint research programs.

    Airbus is also one of AMIC founders, which is set to appoint an Innovation Technical Director to support the non-profit organization including into aviation biofuels in Malaysia.

    This was also part of Airbus’ US$120 million (RM505 million) planned investments announced last week comprising three initiatives to further develop Malaysia’s aviation and aerospace industry.

    Under the initiatives for AMIC, Airbus said the programs benefitting from additional funding such as alternative and sustainable aviation biofuels.

    Inter’s Romelu Lukaku was allegedly subjected to racial abuse during the match against Cagliari at Sardegna Arena Stadium in Cagliari, Italy. – EPA

    Chief executive officer Gauillaume Faury said Airbus’ new initiatives also include the expansion of the company’s wholly-owned maintenance, repair, and overhaul (MRO) facility – Sepang Aircraft Engineering (SAE); and the establishment of the Airbus Malaysia Digital Initiative.

    “These initiatives will significantly enhance our presence in Malaysia, which is one of our most important markets in Asia,” he said at a press conference at the signing ceremony of the firm order between AirAsia Group and Airbus here, recently.

    He said Airbus’ initiatives would also strengthen its win-win partnerships with Malaysia, contributing to the development of the Malaysian aerospace sector and enabling the company to benefit from the competencies and skills available in the country.

    Major airlines had been experimenting for years with biofuels in an effort to reduce both carbon emissions and their reliance on fossil fuels.

    According to Bloomberg, several major carriers were planning larger-scale usage of biofuel in 2019 and 2020, including JetBlue Airways Corp and Cathay Pacific Airways Ltd.

    Meanwhile, the International Air Transport Association (IATA) had approved a resolution that called on governments to continue working towards the implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

    Having agreed through the United Nations’ International Civil Aviation Organisation (ICAO), CORSIA would limit net carbon dioxide emissions from international aviation at 2020 levels to achieve carbon-neutral growth.

    The first test flight with biojet fuel was undertaken by Virgin Atlantic in 2008. As at June 2019, more than 180,000 commercial flights using sustainable aviation fuels have been performed, according to IATA.

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  • Another Hong Kong counterfeit ring in custody

    Another Hong Kong counterfeit ring in custody

    Customs has smashed another Hong Kong counterfeiting syndicate, this one operating from Tung Choi Street in Mong Kok.

    About 2600 items of suspected counterfeit goods – including handbags, wallets and belts with an estimated market value of about HKD4.3 million (US$548,000) – were seized during the raid of a fixed hawker pitch and a storage facility.

    Customs had earlier received information alleging the sale of counterfeit goods at a fixed hawker pitch in Mong Kok. After an in-depth investigation with the assistance of the trademark owner, Customs officers took enforcement action that culminated in the raid. The batch of suspected counterfeit goods and one tablet for displaying photos of suspected counterfeit goods were seized.

    During the operation, one female syndicate head and one male member of the Hong Kong counterfeit ring, both aged 46, were arrested. The investigation is ongoing.

    Customs says it will continue to step up inspection and enforcement to combat the sale of counterfeit goods, and reminds consumers to procure goods at reputable shops and to check with the trademark owners or their authorized agents if the authenticity of a product is in doubt.

    Customs also reminds traders to be cautious and prudent in merchandising, describing the sale of counterfeit goods as a serious crime with offenders liable to criminal sanctions. Under the Trade Descriptions Ordinance, any person who sells or possesses for sale any goods with a forged trademark commits an offence. The maximum penalty upon conviction is a fine of $500,000 ($64,000) and imprisonment for five years.

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  • Overseas expansion and domestic store upgrades for Harvey Nash

    Overseas expansion and domestic store upgrades for Harvey Nash

    Harvey Norman executive chairman Gerry Harvey says the furniture and homewares giant is looking at entering new markets in Southeast Asia and expanding its premium store format in capital cities across Australia to maintain momentum in a “not great” retail climate.

    The retailer on Friday announced plans to raise $174 million from investors to pay down debt and better position the company for a future retail recession, as it reported a 12.1 percent increase in year-on-year sales from company-operated stores to $2.23 billion in FY19.

    However, the co-founder and chair of the furniture chain stopped short of complaining about the current retail climate.

    “I think ‘struggle’, ‘recession’ and ‘tough’ are pretty strong words. It’s not that bad,” Harvey said.

    “It’s not great – trying to get last year’s figures is difficult – but we wouldn’t have made $574 million [reported profit before tax] if it were so terrible.”

    Though Harvey Norman is largely sheltered from the rising cost of rent which is forcing many retailers to shrink their store networks, the retailer is leaving some of the sites it doesn’t own for this reason.

    “I’ve just had a few rent increases that are horrendous,” Harvey said. “There are a couple of sites we’ll be exciting because of that.”

    “Looking” at Thailand and Vietnam

    Wages were another hindrance to the company’s domestic growth in FY19. Sales grew 12.1 per cent year on year in the overseas markets where Harvey Norman operates, compared to a 12.1 per cent decline in revenue from Australian franchisees.

    Harvey Norman has 90 international stores in New Zealand, Singapore, Malaysia, Ireland, Northern Ireland, Slovenia and Croatia. The New Zealand market, however, was an exception, with performance more similar to Australia.

    “Australia and New Zealand have got very high standards of living,” Harvey said.

    “The minimum wage in Australia is probably the highest in the world. Singapore, Malaysia and Croatia are way below Australia. The costs are less significant.”

    This is at least part of the reason Harvey Norman plans to open more bricks-and-mortar presence in Malaysia, where the retailer will focus its expansion efforts in the near term.

    “Our immediate focus is on Malaysia, where we think we can open a lot more shops in the next few years,” Harvey said.

    “We’re also looking at whether we open in Thailand or Vietnam. That’s not going to happen tomorrow, but we do want to go to other countries.”

    Bringing back the ‘wow’ factor

    At home, the focus is on rolling out a new premium store format to more capital cities and upgrading the look and feel of stores across the network.

    “We really want to do one in every state that looks like Auburn,” Harvey said about the retailer’s NSW flagship store, which opened last year.

    “We did it on the basis that we could do the same in Melbourne and Brisbane and Perth. It’s on the to-do list. We’d love to have a really great signature shop in Melbourne, we haven’t got one.”

    For the long-time retail executive, stores are the key to staying relevant, even as consumers spend more of their daily lives online.

    “People are talking about how they’re always looking at a screen during the day and on their phone at night. They’re losing contact with people, and they’re starting to say, ‘I really have to go out into the world again’,” Harvey said.

    “You’ve got people going more and more online, and at the same time, wanting to go more and more offline.”

    Harvey Norman’s approach is to invest in making stores very appealing, offering a wide range of merchandise, providing wonderful service and the ‘wow’ factor, Harvey said.

    “Most retailers right across the world have not been spending money on their shops, and then their shops start to look terrible,” he said.

    “I think people are bored with online shopping and shopping centres, where they all look the same. They’d like to see something different.”

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  • Zalora Fashion Festival planned for Singapore

    Zalora Fashion Festival planned for Singapore

    Zalora is holding a Fashion Festival on Saturday (September 7) at The Deck in Singapore’s art district.

    The Zalora Fashion Festival is in partnership with leading global brands in fashion, beauty and technology to create the festival as an interactive playground for brands to reach fashion consumers.

    Visitors will be encouraged to discover a world of fashion, beauty, music and innovation over the day-long fiesta, enjoying a “social media feast” on the event’s surprise interactive rooms specially curated by Zalora’s partner brands – Calvin Klein, Adidas, Vans, Nars, and Skin Inc.

    Participants will be among the first to catch a sneak peak at what the firm has in store for its new brands at a style session showcasing the best of new collections and insights from in-house brands.

    The Zalora Fashion Festival will be open to the public from 12pm to 9pm.

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  • Animal rights activists condemn Taylor Swift for accepting Melbourne Cup offer

    Animal rights activists condemn Taylor Swift for accepting Melbourne Cup offer

    Multiple Animal rights activists have flooded Taylor Swift’s social media channels asking her to refuse the offer that she just accepted from the Melbourne Horse Racing Cup 2019.

    According to a Guardian report, animal activist coalitions are starting campaigns all over websites such as Facebook, Instagram, and Twitter imploring the famous American singer to “not entertain horse killers”.

    According to the activists, racing tournaments kill hundreds if not thousands of horses almost on a yearly basis, due to the terrible conditions and inhuman treatment.

    The organizers of the Melbourne Cup have yet to respond to these kinds of claims, as the mistreatment of horses has never been discussed before.

    One comment that we can base the condition of the cup on is from the chief executive of the Victoria Club himself, Neil Wilson.

    Wilson expresses his gratitude and excitement about Swift’s performance during the race and hopes they can captivate her with the entertainment they’ve been offering to the public for decades.

    What else do the activists protest?

    Further allegations from the animal rights activists mention the use of animals’ lives as profit from gambling activities within the country.

    Aside from regular casino games and sports betting, horse racing bets are some of the most popular forms of gambling in Australia and have been for more than a century.

    Mick Arnold, a betting options provider for some of the best Australian VIP casinos has commented:

    “I don’t understand where the accusations of the animal rights activists are coming from.

    Every single horse breeder and the professionals themselves take extremely good care of their animals.

    And why wouldn’t they? An unhealthy horse isn’t in a shape to win the race, so why would they use it for the sport?

    I believe that animal rights activists are basing their accusations on emotions rather than facts. Every horse that takes part in these races is treated humanely and with great care.”

    It is unlikely for Arnold’s comments to be taken well by the animal rights activists, as he represents the companies these people are actually protesting.

    But when it comes to Taylor Swift herself, it needs to be noted that the “#NupToTheCup” is still relatively new, and she may not have had the chance to notice it on some of her channels.

    Whether or not she refuses the concert is yet to be seen, but considering how well her initiative was received by the executive director, it is unlikely to be the case.

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  • Hong Kong retail sales down last month

    Hong Kong retail sales down last month

    Hong Kong retail sales in July plunged by 11.4 percent as ongoing protests and the China-US trade war took their toll.

    The fall was widely expected with several large retailers projecting double-digit declines based on their own internal monitoring during the month.

    A government spokesman said the decline in retail sales reflected “weak local consumer sentiment and significant disruptions to inbound tourism and consumption-related activities arising from the recent local social incidents”.

    He said the Census and Statistics Department (C&SD) expected Hong Kong retail sales will likely stay weak in the near term, as escalated US-Mainland trade tensions and subdued economic conditions continue to dampen consumer sentiment.

    “The situation may even deteriorate further if the social incidents involving violence do not come to a stop.”

    July’s decrease followed a 6.7-per-cent decline in June when the current round of protests commenced. For the first seven months of the year, sales are down by 3.8 percent year on year.

    After netting out the effects of price changes, July’s figure was even bleaker, down 13 percent compared with a decline of 7.6 percent in June and a year-to-date 4.4 percent.

    Retail sales to visitors usually account for about 50 percent of the total market in Hong Kong, so the key category of watches, jewelry, and luxury goods – the largest category – plummeted by 24.4 percent in July.

    Apparel sales fell by 13 percent, medicines, and cosmetics by 16.1 percent, and commodities in department stores by 10.4 percent.

    Categories less reliant on visitors performed better: sales of food, alcoholic drinks, and tobacco were down by 2.3 percent, consumer goods, not classified elsewhere by 1.4 percent, and books, stationery, newspapers, and gifts by 6 percent.

    Sales of electrical goods fell by 17.4 percent, of footwear and accessories by 10.1 percent and of furniture and fixtures by 8.7 percent.

    The only category to post growth year on year was supermarket sales, which rose by a modest 1 percent.

  • Topsports China plans IPO

    Topsports China plans IPO

    Chinese sportswear firm Topsports International is set to proceed with an IPO in Hong Kong, despite economic uncertainties and ongoing protests in the city.

    The Belle International subsidiary is expected to launch its IPO this month, provided it qualifies for the listing. It is expected to be raising up to $1 billion from the exercise, which will see it among the few major firms to start trading on the exchange amidst continuing protests.

    The spinoff was first proposed more than a year ago by the company’s private equity owners Hillhouse Capital and CDH who took Belle private in a US$6.8 billion deal in July 2017.

    The prospectus for Topsports’ IPO says the company is China’s largest sportswear retailer in terms of retail sales value. It enjoyed a 15.9 percent market share last year.

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  • Contacts is the latest Google app allowing you to switch accounts

    Contacts is the latest Google app allowing you to switch accounts

    Google has been making it easier for users with multiple Google accounts to quickly switch between them on several of its apps. Google Maps and Drive both allow you to swipe up or down from the avatar in the top right-hand corner (with your photo or initial) to quickly change to the next Google account in queue. So instead of tapping on the avatar to see the different accounts you can choose from and then selecting one to switch to, you can save time by using the new gesture.

    This feature is now available on version 3.8.3 of Google Contacts, and after swiping through each of your Google accounts, it will give you the opportunity to see the contacts from all of your accounts in one list. This shows up as an avatar that looks like two pawns from a chessboard. When you swap between accounts on Maps, the only thing that changes is the avatar. On Drive and with Contacts, the appropriate menu slides out from the side as the avatar changes.

    Truthfully, you will save some time by switching between accounts this way. This is another example of Google not sitting back on its laurels and looking to improve Android and its apps with every chance it gets.

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  • Indonesia’s New Capital Already Attracting Speculators

    Indonesia’s New Capital Already Attracting Speculators

    Indonesia’s decision to relocate its capital from Jakarta to eastern Borneo is already attracting speculators and inflating land prices, according to a local industry body, which is urging President Joko Widodo to take measures to differentiate between pure profiteers and real developers.

    I’ve heard that land prices are rising already, said Soelaeman Soemawinata, chairman of the Association of Indonesian Real Estate Companies which represents more than 5,000 member firms.

    We must set developers and speculators apart. Speculators don’t develop anything as they just wait until land prices increase, and then sell. Developers expect the government to secure the land, which can be developed by them.»

    The government controls about 180,000 hectares of land in the future capital, triple of Jakarta, in a $33 billion project to build the new landmark city from scratch with support from both the public and private sector. Indonesia plans to begin construction by 2020-end and start the relocation in phases starting from 2024.

    Despite limited access to lands in the East Kalimantan province due to it mostly being protected and commercial forestry under government control, developers remain upbeat with various plans underway from basic infrastructure to luxury condos.

    Still, the association and Soemawinata want further tightening to screen participants. He said the association wanted President Widodo to provide a legal basis for the participation of private developers» considering that construction could last through several regimes.

    The move to relocate Indonesia’s capital is meant to ease pressure on the congested and sinking Jakarta and spread economic activity outside the island of Java.

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  • Rimowa Elements Hong Kong store relocates

    Rimowa Elements Hong Kong store relocates

    Premium luggage label Rimowa has relocated and reopened its Hong Kong Rimowa Elements store.

    The new 1510sqft Rimowa Elements store features the brand’s latest store design concept and incorporates site-specific details, such as the wood and recycled rubber flooring that allows customers to roll-test their suitcases on a variety of surfaces before purchase.

    In addition to showcasing the brand’s latest luggage collections, the Rimowa Elements store features an in-store client-care center that can process most repairs – such as wheel exchange and handle & lock repair.

    As part of this fresh design, Rimowa Elements is introducing a hot stamping service, inviting customers to personalize their Rimowa leather travel accessories.

    Located in West Kowloon, Elements is one of the top tier shopping malls in Hong Kong, covering more than 1 million sqft of shopping, dining, art, and entertainment.

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  • David Jones profit almost halves this year

    David Jones profit almost halves this year

    David Jones’ operating profit fell 42 percent to $37 million in the 2019 financial year, hampered by tough trading conditions and little economic growth in the Australian market.

    Parent company Woolworths Holdings chief executive Ian Moir said the performance was fair considering the conditions, and that the management team has adapted their strategy to the changing retail landscape.

    “Our businesses are well-positioned to see through the significant economic and structural challenges retailers are facing,” Moir said in a statement to investors.

    “We are focused on building future-fit, customer-focused businesses with strong portfolios of brands that deliver long term value.”

    The South African retail group said it didn’t expect conditions to improve significantly in the short-term, with the retail market continuing to be tough due to heavy discounting and promotional material.

    As such, Woolworths Holdings said the previously announced plans to reduce store count is underway across the David Jones portfolio to improve stock productivity as online sales grow. David Jones didn’t specify which stores are being closed.

    The 2019 financial year also saw turnover and concession sales fall 0.8 percent for the department store, and comparable sales fall 0.1 percent. However, online sales grew 46.8 percent and now makeup 7.7 percent of total sales.

    Moir said he believes “the worst is over” for the struggling department store chain.

    “We’ve had many bad years at David Jones and learned many lessons,” Moir said.

    “We know more about the Australian customer through fixing the David Jones business because we have collected data and research about what they want. We believe the worst is over.

    “The year 2021 will be a much stronger year for David Jones.”

    Moir will relocate to Sydney to oversee the turnaround more closely, as he understands the Australian market from his time running Country Road Group.

    Country Road

    Country Road also saw its operating profit fall over the year – a 2.9 percent drop to $100 million.

    Sales at the clothing retailer grew 0.5 percent, while comparable sales fell 0.6 percent. Online sales now represent 20.3 percent of total sales, having grown 12.9 percent over the period.

    Net retail space reduced 2.9 percent over the period, with further space reductions a priority.

  • Luxiee secures six-figure funding from Singapore angel

    Luxiee secures six-figure funding from Singapore angel

    Singapore-headquartered online diamond marketplace, Luxiee, has raised a six-figure investment in a private seed-funding round.

    The team secured financier Kewee Kho, also vice-chairman of Roadbull Logistics and independent director of Courts Asia, as the leading investor.

    Luxiee, launched in January, bills itself as the world’s first online diamond marketplace that connects consumers directly to established suppliers in a transparent matching model that removes the middle-man, resulting in better value for customers. The funds raised will be channeled towards marketing, branding, public relations, and media placement, as well as building the business’ staff.

    “It’s about time a traditional industry like diamonds experience a new way of delivering real value to customers. It is a disruption to an old school economy,” said Kho in a statement. “The impressive background of Luxiee’s solid management team, with experts coming together from the creative, digital marketing, and precious gems industries, reinforces my belief in this new and current business model. Transformative growth awaits, and I look forward to an exciting and rewarding journey with the team.”

    Luxiee CEO Nicholas Lim said it was exciting to have an experienced investor like Kewee Kho on board.

    “We look forward to his strategic direction and advice. His confidence in the business is added assurance to the formula of our business model, and we are driven by opportunities to accelerate our growth.”

    Luxiee says the direct connection between supplier and consumer through its platform allows consumers to enjoy up to a 300-per-cent reduction in the diamond price compared with those sold at luxury retail outlets. For example: a 1.0 Carat, F Color, VS2 Clarity, Excellent Cut diamond can sell for as low as SG$7000 (US$5000).

  • Offshore boost for Harvey Norman sales

    Offshore boost for Harvey Norman sales

    Harvey Norman has lifted full-year profit by 7.2 percent to $402.3 million with its overseas ventures again outshining local franchisees, which struggled amid tough retail conditions.

    The homeware, whitegoods and electronics retailer lifted total sales by 12.1 percent to $2.23 billion in the 12 months to June 30, largely thanks to its 90 company-operated offshore stores breaking through the $2 billion sales barrier for the first time.

    An 11.7 percent rise in Harvey Norman’s overseas profitability to $129.70 million – including a 9.7 percent lift in offshore revenue to $2.05 billion – offset a 2.3 percent decline in revenue received from the company’s 195 franchised Australian complexes.

    Revenue from local franchisees was $944 million for the year, with total franchisee sales down by 1.8 percent to $5.66 billion amid a housing market downturn and broader economic jitters.

    Harvey Norman announced a $173.49 million capital raising to manage debt, but still increased its final dividend by 3.0 cents to a fully franked 21.0 cents.

    Shares in the company dropped by 1.82 percent to $4.585 by 1223 AEST, still 25 percent higher than $3.66 a year ago.

    Harvey Norman said it had been a particularly tough second half in Australia, with fourth-quarter aggregate comparable sales for franchisees dropping by 1.6 percent, for a full-year comparable sales decline of 0.9 percent.

    The company said local franchisees had nonetheless continued to invest in their operations in anticipation of federal government tax cuts, stabilizing house prices and an increase in lending by banks for mortgages and small business loans.

    Chairman Gerry Harvey said the company has begun replicating its successful overseas premium store format in Australia and New Zealand.

    A premium refit is currently underway at the company’s Cairns franchised complex, while franchised complexes at Campbelltown, Balgowlah, Preston, and Aspley will commence post-Christmas.

    The company said it intends to grow its international footprint with up to 21 new stores overseas within the next two years, including 17 alone in Singapore and Malaysia.

    “We intend to grow our international retail footprint and are on track with our expansion opportunities,” Mr Harvey said on Friday.

    Harvey Norman’s Singapore and Malaysia segment increased profit by 48.1 percent to $37.1 million for the year, while profit in Slovenia and Croatia ticked 0.8 percent higher to $7.46 million.

    In Ireland and Northern Ireland, profit nearly quadrupled to $6.39 million on double-digit growth across all key product categories.

    Challenging economic conditions weighed on the company’s New Zealand stores, with profit from across the ditch dropping by 6.0 percent to $77.39 million despite sales revenue increasing by $25.57 million.

    Overseas revenue has now increased by 48 percent over the last five years and profitability has nearly quadrupled.

  • Skype brings a handful of new features to its app

    Skype brings a handful of new features to its app

    Skype’s messaging app might seem a bit obsolete for some due to the lack of many features, but that’s about to change. The developer announced a new set of improvements are coming to Skype in the coming days.

    The newest update brings message drafts, a much-needed feature that allows Skype users to save any messages they didn’t send in the corresponding conversation. Skype also says that messages saved as drafts are even available when you leave and come back to the Skype app, but we don’t think adding this feature in any other way would be useful.

    Message bookmarks is another important addition in this update. It will allow Skype users to bookmark any message in conversations by simply right-clicking or long-pressing the message and tapping Add bookmark. The message will be saved in the Bookmarks screen with other bookmarked messages.

    Furthermore, the update brings the option to preview photos, videos, and files that you want to share before sending them. You can even add a message that will be sent along with the files if you want to write an explanation or description for what you’re sending.

    Also, a new way to display multiple photos or videos sent at once. You’ll now see an album in the chat history with all the photos combined, but you can also check them out individually by clicking between the photos or videos in the album.

    All the new features announced today will be available on the latest version of Skype across all platforms, so expect to see them soon on your phone.

  • Large police raid in the Philippines: Cebu POGO Operations employees arrested

    Large police raid in the Philippines: Cebu POGO Operations employees arrested

    The POGO (Philippines Offshore Gaming Operations) have been in quite a lot of trouble in their respective country in the last few years. There has been an insurmountable amount of pressure from the local government to somehow reduce their business power in the long term, by either planning crippling regulation updates or simply implying that they will support the industry.

    This was the case when the country’s president Rodrigo Duterte announced not too long ago that there are no plans to classify POGO as illegal business methods in the country, but the recent police raid on Cebu is a direct contradiction to that announcement.

    What happened?

    On the 7th of September, the Philippines police raided Cebu operations of Xing Huang Jin Cheng Co in the capital.

    According to the reports from the Philippine National Police-Criminal Investigation and Detection Group-Central Visayas, they arrested as many as 181 Chinese nationals that were legally employed in the company, alongside several locals, South Korean and Thai citizens.

    The number of employees arrested was so large that they had to be transported in a nearby gym to “keep them under control”.

    The charges being pressed against Cebu are based on suspicion of them lacking a license to conduct offshore gambling operations from the Philippines, but the lawyers of the company have something very different to say.

    What do the lawyers say?

    According to Jeff David, the lawyer representative of Cebu, the government is challenging the company for missing a POGO license but does not consider the fact that the BPO (business processing outsourcing) license is present.

    Furthermore, David mentions that the company has all of the legal documentation well undercover for their operations in offshore jurisdictions and that this is nothing but a hit against the company for not complying with the local police’s corrupt ways.

    Furthermore, David mentions the inhumane treatment of Chinese employees and the exploitation by the police of their severe lack of the English language. According to David, these employees had very little to defend themselves against the accusations or the demands that the police were making the moment they broke into the building.

    This could be plausible as Chinese nationals comprise a large majority of gaming companies based in South-East Asia or Oceania, and there have been recorded cases of local police keeping a much closer eye on these individuals specifically.

    In fact, according to Kathy Pena, an HR representative from Playamo AU, this is also the case in some Australian live casinos that offer blackjack and roulette games:

    “Our company mostly focuses on offshore jurisdictions as the primary source of customers. Therefore we have to have a large staff of people who understand these languages, or know how to structure our platform to better suit these audiences.

    Furthermore, we tend to employ Chinese nationals and bring them over to Australia with a working visa and no strings attached. We give them a stable job and it’s up to them to find a place to live here.

    We’ve had several altercations so to say with the local police, who more or less wanted to know why there were so many Chinese nationals working in an Australian company.

    The answer is quite simple. Once we find it hard to find skilled labor locally, we broaden our perspective to nearby jurisdictions, and so far, Chinese nationals have met our criteria to an A+.

    I fully understand the situation Cebu representatives may be in right now, as we’ve experienced a similar issue multiple times, but not at that scale and not so extreme. Hopefully, it all works out well for everybody involved.”

    What will be the next steps?

    It is likely that Cebu lawyers will start an investigation on whether or not this raid was warranted, and if it was nothing but a political move gains POGO companies in the Philippines.

    Both the lawyers and the company owners understand the aversion that the government has towards them, as gaming isn’t necessarily the most moral of businesses. But as long as the law allows it, there is absolutely no leverage the police can have against these individuals.

    Should the investigation prove that Cebu had both a POGO and a BPO license, the company would have some leverage over the government to compensate for inflicted damage. But should there be actual evidence of the license missing, multiple executives could find themselves in the Philippines jail or paying a humongous fine.

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