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Sam Shoaf returns with a new single that’s sure to get you in your feelings

Sam Shoaf

From TV screens to the airwaves, Sam Shoaf is making his presence felt once again, and he’s got something special for your playlist. After charming the nation as a standout contestant on The Voice Kids Philippines back in 2013, and dazzling audiences on Your Face Sounds Familiar Kids and The Kids Choice, Mr. Shoaf is back and ready to make waves with his latest single, “Di Ka Na Maalis”, released under Viva Records.

This time around, Mr. Shoaf teams up with Kyle “Paraluman” Raphael, crafting a track that’ll have you humming its irresistible chorus on repeat. “Di Ka Na Maalis” is a fresh take on modern alt-pop, with melodies that stick like glue and lyrics that will make anyone with a pulse swoon. The song’s got all the pakilig lines and vibes you’d expect from someone who’s grown up under the spotlight, yet it’s clear Sam Shoaf has matured into an artist with something new to say.

Infatuation never sounded this good! If you’re ready for a feel-good anthem that’s equal parts catchy and heartfelt, Sam Shoaf’s “Di Ka Na Maalis” is the perfect addition to your playlist. After all, who can resist a track that tugs at your heartstrings and makes your head bop at the same time?

Sam Shoaf may have started young, but with this new release, it’s clear he’s in it for the long haul.

 

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No ‘external force’ can change our future, Taiwan president says on frontline islands

Honor guards raise a Taiwanese flag at the Presidential Palace in Taipei, Taiwan Oct. 10, 2023. — REUTERS

KINMEN, Taiwan – Taiwan cherishes its freedom and democracy and no “external force” can change its future, Taiwan President Lai Ching-te said on Friday, visiting sensitive frontline islands next to China for the 75th anniversary of a key victory over communist forces.

Taiwan has controlled Kinmen, and the Matsu islands to the north, since the defeated Republic of China government fled to Taipei in 1949 after losing a civil war with Mao Zedong’s communists.

Lai told veterans and family members that the October 1949 Battle of Guningtou, when republican forces beat off an invasion attempt of Kinmen by the People’s Liberation Army “represents our determination to protect our country”.

“The Battle of Guningtou makes us realize that democracy and freedom are not something to be taken for granted,” Lai said.

“We treasure a democratic and free way of life, and we cannot, and will not, allow any external force to change the future of Taiwan, Penghu, Kinmen and Matsu, right?” Lai added, referring to all the island groups the government controls, though without directly mentioning China.

Beijing detests Lai as a “separatist” and views democratically governed Taiwan as its own territory, a claim he rejects, saying only Taiwan’s people can decide their future.

China staged a day of war games around Taiwan earlier this month it said were a warning to “separatist acts”.

Lai reiterated his determination to maintain peace and stability and defend Taiwan’s sovereignty, as well as his willingness to talk to Beijing.

“Our insistence on safeguarding a democratic and free lifestyle for generations to come has not changed and will remain unchanged,” he added.

The Kinmen battle was a rare victory for Chiang Kai-shek’s forces in the final days of China’s civil war.

In December of that year, the republican government fled to Taiwan and in the following years and months would lose a string of other islands and islets to communist forces. The Republic of China remains Taiwan’s formal name.

Late Thursday, Taiwan’s military staged nighttime live fire drills on the Penghu islands, home to a major air force and navy base and which sit in the Taiwan Strait though are closer to Taiwan than China, practicing repelling an assault from the sea.

It was Lai’s second trip to Kinmen since he took office in May.

Kinmen is today a popular tourist destination due in part to its Cold War history.

Taiwan retains a sizeable military presence.

No peace treaty or armistice has ever been signed between Taiwan and China and neither government officially recognizes the other. – Reuters

World Bank rolls out new strategy to boost economic opportunities for women

REUTERS

WASHINGTON – The World Bank announced on Thursday a new gender strategy aimed at boosting economic opportunities for women and enabling their participation in the global economy through social protection and access to broadband and capital.

The Gender Strategy 2024-2030, unveiled during the International Monetary Fund and World Bank annual meetings in Washington, has set goals by 2030 that aim to enable 300 million more women to use broadband internet, unlocking essential services, financial services, education and job opportunities.

It also aims to support 250 million women with social protection programs focusing on the poorest and most vulnerable, and to provide 80 million more women and women-led businesses with capital, addressing constraints to entrepreneurship growth.

“When we increase women’s economic participation, it not only boosts the global economy, but also strengthens families and communities,” World Bank President Ajay Banga said in a statement. “Through economic empowerment we are building a ladder out of poverty and extending hope and dignity as far as possible.” – Reuters

Apple’s Q3 China smartphone sales slip, Huawei’s soar

BW FILE PHOTO

BEIJING – Apple’s iPhone sales in China slipped 0.3% while rival Huawei posted a 42% surge in the third quarter of 2024, as competition intensifies in the world’s largest smartphone market.

Apple reached second place with a 15.6% market share, though down 0.5 percentage points year-on-year, while Huawei claimed third place with 15.3%, gaining 4.2 percentage points, showed data from researcher IDC on Friday.

Vivo, which primarily sells budget phones, was the top vendor with a market share of 18.6%.

The contrasting performances follow Huawei’s comeback last year in the premium segment with its Mate 60 series, featuring what analysts said is a domestically produced chip.

The Chinese tech giant further challenged Apple’s position with its latest Pura 70 model released earlier this year.

Apple has faced additional headwind in China, including restrictions on iPhone use by some government agencies.

The U.S. tech giant has since responded with multiple discount campaigns to boost sales.

The third-quarter performance was partly helped by the new iPhone 16, which went on sale on Sept. 20. On the same day, Huawei launched a competing product– a tri-foldable phone.

The new iPhones got off to a strong start in China, with sales 20% higher in the first three weeks since launch compared with the 2023 models, showed separate data from researcher Counterpoint.

“With its annual new product launch, Apple returned to China’s top five market rankings with a 15.6% market share,” IDC said.

“With subsequent increases in market promotions and the launch of Apple Vision Pro, the market demand for the iPhone 16 series is expected to gradually materialize in the future.”

Overall, China smartphone sales for the third quarter rose 3.2% to 68.78 million units. – Reuters

Indonesia wants to join BRICS, ministry says

REUTERS

JAKARTA – Indonesia has expressed its desire to join the BRICS group of major emerging economies, which accounts for 35% of global economic output, as a means to strengthen emerging countries, its foreign ministry said in a statement.

As BRICS world leaders convened in Kazan for a summit this week, Indonesia’s foreign ministry said late on Thursday that the process of joining the group has begun.

“Indonesia joining BRICS is a manifestation of its independent-active foreign policy,” said Sugiono, the newly appointed foreign minister, who like many Indonesians goes by one name. “That does not mean we join a certain bloc, but we actively participate in every forum.”

Indonesia, the world’s fourth most populous nation, holds a non-aligned foreign policy.

President Prabowo Subianto, who took office on Sunday, has stressed repeatedly that he will befriend all countries, be they China or the United States, and that Indonesia will not be joining any military bloc.

Sugiono added BRICS suits Prabowo’s main government programs “especially with regards to food and energy security, poverty eradication, and the advancement of human resources,” adding that Indonesia sees the group as a “vehicle” to further the interests of the global south.

Russian President Vladimir Putin said more than 30 countries had expressed a desire to join the BRICS, though there was little immediate clarity on how the expansion would work.

Current members include Brazil, China, Egypt, Ethiopia, India, Iran, Russia, South Africa and the United Arab Emirates.

Yohanes Sulaiman, an international relations professor at Jenderal Achmad Yani University, questioned the benefits of Indonesia joining BRICS as they can be gleaned from bilateral relations, but it shows Indonesia does not want to miss out.

“It’s better to follow than to be left behind,” he said, adding it does not necessarily mean Prabowo’s foreign policy adheres more to the east than to the west.

In a bid to attract more investment and trade deals from its members, Indonesia said earlier this year before Prabowo took office that it aims to complete the accession to become the member of Paris-based Organization for Economic Co-operation and Development (OECD) within two to three years.

The BRICS summit in Kazan touched on the war in the Middle East and Ukraine, though there were no signs that anything specific would be done to end either conflict. – Reuters

How an anxious China is backing Myanmar’s faltering junta in civil war

REUTERS

BANGKOK/BEIJING – When an alliance led by three rebel armies seized swathes of territory near Myanmar’s border with China from the military junta last October, Beijing looked the other way.

A year on, rebel forces have ground down the junta, pushing the military out of vital borderlands and making inroads into the contested heart of Myanmar.

In response, China has sealed the border and shut off key imports to territory under rebel control, said a rebel leader and five border-area residents, a move analysts say aims to dissuade the alliance from further advances, including attacking the cultural capital of Mandalay.

After initially backing the Three Brotherhood Alliance to crack down on rampant border crime going unchecked by the junta, Beijing is increasingly alarmed at the rapid degeneration of the military, which it still sees as a guarantor of stability in its neighbor, said two analysts who track Myanmar-China relations. China is also anxious about the ascendancy of rebel groups that have been helping the alliance and are also tied to the U.S.-backed parallel National Unity Government, one of them said.

The previously unreported details of how Beijing is pressuring rebel forces, including by blocking imports – leading at least one group to withdraw from the fight – were described to Reuters by nine people with knowledge of the conflict.

One inflection point came in August, when the alliance took the northeastern town of Lashio, marking the first seizure of a regional military command in Myanmar’s history.

The town of about 130,000 fell to the rebels twice as quickly as they had expected, said Ni Ni Kyaw, secretary of a communist resistance group fighting in support of Operation 1027, as the alliance-led offensive is known.

Myanmar’s junta said in a statement responding to Reuters’ questions that it cooperates with Beijing to ensure stability and rule of law along the frontier, and will not accept the demands of “armed terrorists,” as it calls the rebels.

“We will continue to solve the situation using political methods,” it said.

China’s foreign ministry told Reuters it “resolutely opposes the emergence of chaos and war in Myanmar” and urges involved parties to “jointly push for a soft landing of the situation” near the border. The Chinese consulate in Mandalay was partially damaged by a blast last week, though there were no casualties.

Some rebel groups hope to build on the recent momentum and chart a course south to Mandalay, two rebel leaders and analysts said. From there, the capital of Naypyidaw is a mere 300km (190 miles) away.

Beijing would likely oppose such a move, said international security expert Zhu Jiangming, who has written about the border situation for Chinese state media.

“Mandalay is the second largest city in Myanmar, equivalent to Shanghai,” he said, adding that the fall of Mandalay would be a turning point in the conflict that Beijing would try to prevent.

 

‘DIFFICULT SITUATION’

Operation 1027, named after the date when fighting commenced last year, started at a time when crime ensnarling Chinese victims was taking place near the border. That prompted Beijing not to object when the Three Brotherhood Alliance started routing the junta.

The alliance is composed of three groups – including the ethnic Chinese Myanmar National Democratic Alliance Army (MNDAA) – over which Beijing has influence but not direct control.

But China opposes the collapse of the junta, which ousted Aung San Suu Kyi’s civilian government in a 2021 coup. It fears perpetual turmoil along its 1,250-mile border with Myanmar would jeopardize investments and trade, analysts say.

Cracking down on crime should not eclipse the bigger picture, Zheng Gang of CITIC Reform and Development Research Foundation, a division of a Chinese state-owned enterprise developing a port in Myanmar, wrote in a March analysis.

He said greater unrest in Myanmar could benefit China’s rivals, including the U.S. and Japan, whom he said were viewed favorably by influential groups like the NUG.

Beijing previously flexed its muscles when it negotiated a ceasefire between some ethnic militias and the junta in January. But fighting later continued and by mid August, Lashio had fallen.

Shortly after Lashio’s collapse, Chinese foreign minister Wang Yi met junta leader Min Aung Hlaing in Myanmar. Wang told him Beijing “opposes chaos and conflicts” and urged him to “safeguard Chinese personnel and projects,” according to a Chinese government readout. China’s military held joint-fire exercises on the border later that month.

Pressure on the Three Brotherhood Alliance followed. China closed border gates, cutting off supplies to territory newly under MNDAA control, according to Maung Saungkha, leader of another army which supported the alliance in the fighting, as well as five residents.

Even medical supplies like children’s vaccines have not been getting through, leaving the rebels running a public health system amid conflict “in a very difficult situation”, said Maung Saungkha.

The tightened border controls have slowed the flow of arms and ammunition to resistance groups, he said, adding that his forces would try to seize more ammunition from defeated junta troops.

In September, the MNDAA, which has longstanding ties with China, declared it would not work with allies to expand territory, nor engage with or cooperate with “foreign nations” that opposed China or Myanmar. It also announced it was ready for a ceasefire under China’s guidance, though it remains part of the alliance.

Late that month, the junta invited rebel forces to peace talks. The proposal was swiftly rejected by rebel leaders like Maung Saungkha, who said China’s role in backing such negotiations could pave the way for a sham election.

A senior National Unity Government official, who spoke on condition of anonymity because they were not authorized to discuss relations with Beijing, said China was trying to create divisions among anti-junta forces. Beijing has urged some groups to stop fighting the military and cease cooperating with the NUG, said the official, without providing evidence.

The NUG has a loose alliance with some rebel groups, while others sit within its chain of command.

An assault on Mandalay would be difficult for the Three Brotherhood Alliance to engage in while maintaining ties with China, said Jason Tower, an analyst with the Washington-based U.S. Institute of Peace. He added that it would be risky for the rebels to try and take Mandalay without alliance backing.

Soe Thuya Zaw, a commander of the Mandalay People’s Defense Forces, which reports to the NUG, said China’s influence was a “reality,” but that groups like his farther from the border could lead in the fight for Mandalay.

“We must unite, we must prepare, and we must do our training to overcome the pressure from China,” he said.

 

INSTABILITY AT THE TOP

Beijing’s latest intervention came after seeing how quickly junta forces disintegrated in Lashio.

“China has now become even more proactive and shifted its posture quite remarkably,” said Tower.

Rebels believed the junta would use the temporary halt in combat forced by China to prepare a strong defense there, said Soe Thuya Zaw. Instead, the military struggled to put up a fight when conflict resumed, with its high command losing communication with senior officers at regional headquarters.

There has also been instability at the top.

Since the 2021 coup, Min Aung Hlaing has rotated his regional military commanders at a much faster rate. Between June 2017 and the Feb. 2021 coup, the 14 regional military commands that form the bedrock of the general’s hold over Myanmar saw 36 people serve as commanders, according to Security Force Monitor, a research group at Columbia University.

In the same 44-month period after the coup, there were 49 commanders, an increase of 36%.

Many of the rotations – the details of which have not been previously reported – occurred in the area abutting China where the military has lost significant ground.

“According to the latest data available, the majority of currently serving regional military commanders have never commanded a regional military command before,” said Tony Wilson, the research group’s director.

The quick-fire rotation of commanders reflected a bid by Min Aung Hlaing to assert greater control over the military and forestall dissent, said analyst Ye Myo Hein. The general has come under unprecedented pressure and criticism – even from loyalists – for the defeats over the past year.

During the rebel offensive, Min Aung Hlaing sacked Lashio’s regional commander for insubordination after an argument, according to analyst Min Zaw Oo, who has interacted with junta officials, and Ye Myo Hein.

The replacement was not able to enter Lashio during the fighting, they said, nor were reinforcements from other areas.

“You don’t change a commander in a crisis just for insubordination,” Min Zaw Oo said. – Reuters

Operational power plant by 2032 unlikely without BNPP revival – lawmaker

BW FILE PHOTO

By Almira Louise S. Martinez, Reporter

A commercially operational power plant by 2032 can be achieved through the Bataan Nuclear Power Plant (BNPP) revival, a congressman said on Monday. 

As mentioned in the Philippine Nuclear Energy Roadmap, the country aims to include nuclear power plants in the power mix by introducing at least 1,200 megawatts and gradually increasing to 4,800 megawatts by 2050. 

Chairman of the House Committee on Nuclear Energy and Pangasinan 2nd District Rep. Marcos Juan Bruno O. Cojuangco said this goal is unattainable unless the government strives to operationalize the BNPP. 

“They have not even identified the kind of nuclear plant they want to buy,” he told BusinessWorld. “If they were to tell me that they will run the Bataan Nuclear Plant by 2032, I would believe them because it is 100% complete,” he added. 

Re-opening the 1986 mothballed power plant would take four to five years to commission, according to Mr. Cojuangco. “Bataan can supply 620 megawatts, and you can build the three AP-1000 there, which can supply 1100 megawatts each for a total capacity of 3920.” 

Since the BNPP closure, the government has tried different energy sources, such as wind, solar, and geothermal. The committee head pointed out that these technologies have failed to supply adequate power for the country over the past 38 years. 

“They need to increase their ambition for nuclear power, which is a clean yet reliable source that’s cheap,” he said. 

Mr. Cojuangco pointed out that the AP-1000 of Westinghouse Electric Company, APR-1000 of Korea Hydro and Nuclear Power Co., Ltd. (KHNP), and the CANDU 6 of Canada are the three readily deliverable nuclear plants fit for the country. 

 “If there will be a constraint in developing nuclear in the Philippines, it will be our financial capability to finance.” 

The Philippines and South Korea inked a memorandum of understanding (MOU) on October 7 to commence the feasibility study of the BNPP by January 2025. 

The study will be divided into two phases – an assessment of the plant’s current condition and an evaluation of its viability to operate. 

“KHNP may recommend alternative options, including the construction of a conventional plant or the development of a small modular reactor,” the Department of Energy (DOE) said.

Related story:

The Promise of Power: The Bataan Nuclear Power plant

Budget gap widens in September

A flood wall is being built in Manila. Government spending jumped by 13.15% to P572.9 billion in September. — PHILIPPINE STAR/EDD GUMBAN

THE NATIONAL Government’s (NG) budget deficit widened to P273.3 billion in September, as revenues and expenditures posted double-digit growth, the Bureau of the Treasury (BTr) said on Thursday.

Latest data from the Treasury showed the fiscal gap rose by 8.9% in September from P250.9-billion deficit in the same month a year ago, “as the increase of nominal value of expenditures outpaced the increase in revenues.”

Month on month, the budget gap ballooned by 404% from the P54.21-billion deficit in August.

National Government fiscal performanceRevenue collections jumped by 17.32% to P299.7 billion in September from P255.4 billion last year.

Tax revenues rose by 8.53% to P253.5 billion in September, driven by the Bureau of Internal Revenue (BIR) collection which climbed by 14.79% to P174.7 billion.

The Treasury attributed the rise in BIR collection to “higher personal income tax particularly on withholding on wages due to the release of salary differentials of civilian government personnel,” and increased documentary stamp tax collection.

However, revenues from the Bureau of Customs (BoC) fell by an annual 3.31% to P76.3 billion in September amid a double-digit decline in import duties. An executive order reducing import tariffs on rice and other commodities took effect on July 5.

“Also, the decline (in BoC collection) is due to an alarming increase in smuggling activities within the year, as the current amount of the BoC’s seized goods has already surpassed their total haul in 2023,” the Treasury said.

On the other hand, nontax revenues surged by 111.16% to P46.2 billion in September from P21.9 billion a year ago “primarily due to the one-off windfall from the Public-Private Partnership (PPP) concession agreement.”

Treasury income jumped by 24.86% year on year to P9.9 billion in September “driven by higher NG share from PAGCOR (Philippine Amusement and Gaming Corp.) income, interest income from NG deposits, and guarantee fee collection.”

Nontax revenues collected from other offices surged by an annual 160.39% to P36.3 billion.

Meanwhile, government spending jumped by 13.15% to P572.9 billion in September from P506.3 billion in the same month in 2023.

“The notable increase was mainly attributed to non-interest expenses, particularly due to the implementation of capital outlay projects of the Department of Public Works and Highways,” according to the Treasury.

Expenditures rose as the government implemented the first tranche of salary adjustments of civilian government employees in August. The government also increased payments for healthcare workers’ health emergency allowance claims, BTr added.

Primary spending — which refers to total expenditures minus interest payments — increased by 14.75% to P499.1 billion in September.

Interest payments picked up by 3.36% year on year to P73.9 billion, as the NG serviced new loans from the International Bank for Reconstruction and Development, and the impact of foreign exchange fluctuations.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the uptick in revenues was offset by “increased debt servicing/interest costs that increased government expenditure.”

“With fiscal consolidation in place, it might be that revenue generation has been constrained, not allowing it to grow as much as it can,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

NINE-MONTH DEFICIT
For the first nine months of 2024, the budget deficit narrowed by 1.35% to P970.2 billion from P983.5 billion a year ago.

“The total deficit for the first three quarters was 9.08% short of the P1.1 trillion program for the 9-month period and is at 65.36% of the P1.5-trillion revised full-year program,” the Treasury said.

Revenues in the January-to-September period rose by 16.04% to P3.29 trillion from P2.84 trillion in the same period in 2023. It also exceeded the P3.15-trillion target for the period by 4.53%.

Tax revenues, which comprised 85.39% of total collections, grew by 10.62% to P2.81 trillion as of end-September. However, this was 0.79% lower than the P2.83-trillion target for the nine-month period.

BIR collections also climbed by 12.73% to P2.09 trillion in the nine-month period, but fell short of the P2.12-trillion goal by 0.98%. This was also 73.52% of the P2.8-trillion revised target for 2024.

“The double-digit year-on-year growth is underscored by higher collection on VAT (value-added tax), followed by income taxes, other domestic taxes, and percentage taxes,” the Treasury said.

BTr attributed the uptick in VAT collections to changes in the payment schedule under the Tax Reform for Acceleration and Inclusion law, which allowed taxpayers to file their VAT returns quarterly.

Customs revenues increased by 4.59% to P690.7 billion in the nine-month period “due to higher VAT and import duties despite the negative performance in September,” BTr said.

However, Customs collection was 0.46% short of the P693.9-billion target. The tally as of end-September accounted for 73.5% of the P939.7-billion revised full-year program.

Nontax revenues as of end-September jumped by 62.54% to P481.1 billion, as collections from other offices nearly doubled to P270.9 billion and Treasury income surged by 33.02% to P210.2 billion.

“The higher outturn for the period was attributed to the P30-billion remittance from the Manila International Airport Authority (MIAA), representing the upfront payment for the MIAA-Ninoy Aquino International Airport PPP Project,” the BTr said.

As of end-September, nontax revenue collections already exceeded the government’s P449.6-billion full-year target by 7%.

Meanwhile, government spending jumped by 11.56% to P4.26 trillion in the first nine months from P3.82 trillion in the same period in 2023.

State expenditure for the period breached the P4.22-trillion nine-month program by 1.09%. To date, the NG has already disbursed 74.09% of the P5.8-trillion revised full-year program.

Primary spending grew by 9.48% year on year to P3.7 trillion as of end-September while interest payments jumped by 26.77% to P583.3 billion.

“Likely, the deficit could still widen further on more expenditures due to infrastructure spending, interest rate expense and the impact of calamities,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said via Viber.

Mr. Ricafort said wider budget deficits “would still lead to more NG borrowings and overall debt, thereby requiring more tax and other fiscal reform measures.”

The recently imposed VAT on digital service providers and the 1% withholding tax on online sellers would help increase revenue take and narrow the budget deficit, he said. — B.M.D.Cruz

Fitch sees below-target growth for Philippines

Shoppers check various Halloween items in Divisoria. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE Philippines’ gross domestic product (GDP) growth this year may fall below the government’s target amid dampened household spending, Fitch Ratings said.

“We expect the Philippines’ economy to expand by 5.5% in 2024, after 5.5% in 2023 and 7.6% in 2022,” it said in its latest Asia-Pacific Sovereigns Peer Review.

Fitch Ratings’ growth forecast falls well below the government’s 6-7% target. In the first half of the year, GDP averaged 6%.

“The slower growth in 2023 and 2024 has been driven by weaker private consumption, with the post-pandemic boost fading and high (albeit moderating) inflation weighing on real incomes,” it added.

Household spending eased to 4.6% in the second quarter from 5.5% a year ago, the slowest since the coronavirus disease 2019 (COVID-19) pandemic, latest data from the local statistics authority showed.

“Nevertheless, we still forecast real GDP growth of above 6% over the medium term, supported by large investments in infrastructure and reforms to foster trade and investment, including public-private partnerships (PPPs),” Fitch Ratings said.

For 2025, it sees Philippine GDP growth averaging 6.1%, also still below the government’s 6.5-7.5% target range.

Meanwhile, the credit rater expects the National Government’s (NG) fiscal consolidation to continue at a gradual pace.

The government set its deficit ceiling at 5.6% of GDP this year. It is expected to ease further to 3.7% of GDP by 2028.

The Development Budget Coordination Committee (DBCC) kept its deficit ceilings for 2026 to 2028 but revised its revenue and expenditure programs to allow for a more “realistic and sustainable” consolidation path.

“Nevertheless, this is still consistent with a downward path for government (debt-to-GDP) over the medium term, given strong nominal GDP growth,” Fitch said.

“Asia-Pacific (APAC) sovereigns are a long way from undoing the fiscal damage left by the COVID-19 pandemic, as governments have generally prioritized growth and cushioning the public from the effects of the global inflation spike over reducing budget deficits,” it added.

CREDIT RATING
Meanwhile, Fitch Ratings said its latest rating action reflects the country’s “strong medium-term growth, which supports a gradual reduction in government (debt-to-GDP) over the medium term and the large size of the economy relative to ‘BBB’ peers.”

In June, the debt watcher kept the Philippines’ “BBB” investment grade rating with a “stable” outlook. A “BBB” rating indicates low default risk and reflects the economy’s adequate capacity to pay debt.

“The rating is constrained by low GDP per head, despite an upward trend. Governance standards are weaker than at ‘BBB’ peers, though Fitch believes World Bank Governance Indicator scores somewhat overstate this.”

The credit rater cited negative sensitivities to its outlook, such as “reduced confidence in strong, stable medium-term economic growth.”

It also noted the possibility of failing to maintain a stable debt-to-GDP ratio amid the NG’s strategy of scaling back consolidation efforts as well as risks of decreasing foreign-currency reserves due to the potential widening of the current account deficit.

Latest data from the Treasury showed the NG’s outstanding debt slipped by 0.9% to P15.55 trillion as of end-August from the record-high P15.69 trillion as of end-July.

The NG’s debt as a share of GDP stood at 60.9% in the second quarter, still a tad higher than the 60% threshold considered by multilateral lenders to be manageable for developing economies.

In the first half of the year, the country’s current account deficit stood at $7.1 billion, accounting for 3.2% of GDP. The central bank expects the current account deficit to reach $6.8 billion this year, equivalent to 1.5% of GDP.

On the other hand, Fitch Ratings noted positive sensitivities, such as stronger-than-expected economic growth, sustained reductions in debt, and strengthening of governance standards.

The government aims to achieve an “A” level rating before the end of the Marcos administration in 2028.

Electronics industry targets 5% increase in exports next year

Semiconductor chips are seen on a printed circuit board in this illustration picture taken Feb. 17, 2023. — REUTERS

By Justine Irish D. Tabile, Reporter

THE Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said that it is expecting a 5% growth in exports next year amid inventory correction and the expected entry of new investments.

“We maintained our outlook of 10% contraction this year, but we see 5% growth [in exports] next year,” SEIPI President Danilo C. Lachica told reporters on the sidelines of the 13th Arangkada Philippines Forum 2024 on Thursday.

He said next year’s growth will be driven by inventory correction and the launch of new products and expansion.

“Hopefully, with the initiatives of the government to promote investments, we are looking for new products and new expansions for the coming year,” he added.

SEIPI recently held its fourth-quarter meeting earlier this month and has scheduled another meeting for the first quarter of 2025.

“We’ll have another board meeting in the first quarter. And hopefully, we’ll affirm that 5% outlook,” he said.

Despite the optimistic outlook for next year, Mr. Lachica said the board still expects a 10% decline in exports this year despite the optimism in the electronic manufacturing services (EMS) sector.

“The EMS guys are optimistic, but the semiconductor guys are not. Unfortunately, they weigh more than the EMS, [around] 70% of the volume,” he said.

A report from the Philippine Statistics Authority showed that the country’s top exports are still electronic products, which accounted for 52.9%, or $3.57 billion, of the total exports in August.

However, the export value of the country’s electronic product exports in August showed an 8.2% decline from the $3.89-billion worth of electronic products exported in the same month last year.

From January to August, exports of electronic products reached $27.45 billion, representing a 1% increase from $27.19 billion in the same period last year.

Out of the total electronics exports, 76.6% comprised of semiconductors, which had a total value of $21.04 billion.

SEIPI had projected a 10% decline in exports due to inventory correction and a less competitive product mix of the exports from the Philippines.

In particular, Mr. Lachica said that the Philippines is a bit disadvantaged because there were several companies that were not as aggressive in putting in new products and technologies in the country due to the incentives rationalization implemented by the previous government.

Meanwhile, the Department of Trade and Industry projected Philippine exports to surpass the target set under the Philippine Development Plan (PDP) 2023-2028, but miss the targets set under the Philippine Export Development Plan (PEDP).

The PEDP estimates merchandise and services exports for 2024 to reach $143.4 billion, which is much higher than the $107-billion export target under the PDP.

In June, the Development Budget Coordination Committee upwardly adjusted its projection for the growth in merchandise exports this year to 5% from 3% previously, due to the “better-than-expected” performance in the first quarter and amid an improved outlook for the global semiconductor market.

Manila still 3rd cheapest for prime office rent in Asia-Pacific

The skyline of Metro Manila. — PHILIPPINE STAR/EDD GUMBAN

MANILA remained the third most affordable city for prime office rents in the Asia-Pacific region in the third quarter, according to real estate consultancy Knight Frank.

On an annual basis, Manila’s occupancy cost fell by 1.7%, slightly below the average 2.5% decline in the region, a Knight Frank Asia report released on Oct. 22 showed.

The average prime office cost in Manila was $29.64 per square foot (sq.ft.) in the July-to-September period.

Knight Frank: Manila remains 3<sup>rd</sup> cheapest for prime office rent in Q3

“Prime rents in the region fell just 0.1% on a quarter-on-quarter basis, signaling that rents could be bottoming out, supported by growth in Indian markets,” Knight Frank said.

Kuala Lumpur had the lowest average prime office rent in the region at $20.57 per sq.ft., followed by Jakarta with ($26.75), Phnom Penh ($34.13), Guangzhou ($35.60), and Bengaluru ($36.17).

The most expensive rent for prime office space was in Hong Kong SAR ($155.52), followed by Singapore ($125.66), and Sydney ($99.75).

Knight Frank expects Manila to see a decline in rents in the next 12 months, along with Bangkok, Beijing, Guangzhou, Hong Kong, Shenzhen, and Shanghai.

Cities that will see higher rents in the next 12 months include Brisbane, Perth, Ho Chi Minh City, Singapore, Taipei, Seoul and Sydney.

The average prime office vacancy rate in the Asia-Pacific region slipped by 0.2% quarter on quarter to 14.8% in the third quarter, ending consecutive quarterly increases since the second quarter of 2022.

Manila had the 11th highest prime office vacancy rate in the region at 14%. Kuala Lumpur had the highest at 27%, followed by Shenzhen (25.1%), Jakarta (24.9%), Bangkok (24%) and Shanghai (21.1%).

Knight Frank said companies across the region are keeping a close eye on costs amid slower economic growth and geopolitical risks. It noted that leasing sentiment will likely take a hit as firms curb spending.

“Global economic uncertainties have led to more cautious capital expenditure strategies among occupiers, favoring renewals and consolidating office footprints,” Tim Armstrong, Global Head of Occupier Strategy and Solutions said.

Companies that relocate their offices usually opt for smaller spaces, “aligning with cost mitigation needs and the growing acceptance of hybrid work models,” he added.

“While the business sentiment may improve as the Fed eases monetary policy, demand will continue to be tempered by prudent spending and workplace strategies focused on maximizing space utilization,” Mr. Armstrong said.

Knight Frank said the Asia-Pacific prime office sector will still be “tenant favorable” this year. With the delivery of around 12 million square meters (sq.m.) this year, the pipeline supply next year will likely drop by about one-fifth.

“However, as the development peak in the region subsides, any significant uptick in leasing activity could rapidly tighten the availability of prime spaces. This scenario may accelerate the flight-to-quality trend as tenants seek to upgrade their portfolios in a potentially more competitive market,” Mr. Armstrong said. — Aubrey Rose A. Inosante

QCinema expands its reach for 12th year

JAPAN’s Oscar entry, Cloud by Kiyoshi Kurosawa, is the closing film

THE QCINEMA International Film Festival will return to movie theaters for a 12th year, with new sections and programs expanding its reach.

With the theme “The Gaze,” the festival organizers invite audiences to explore diverse perspectives and new ways of seeing the world through film. The festival will run from Nov. 8 to 17 and will feature 77 films across 11 sections.

QCinema, founded in 2013, kicked off its first-ever Directors’ Factory Philippines this year, in collaboration with Cannes Directors’ Fortnight. The initiative allowed four filmmakers from the Philippines and four from other Asian nations to partner up and create films, which will be premiered at the festival.

These four films make up the opening night program on Nov. 8: Walay Balay by Eve Baswel (Philippines) and Gogularaajan Rajendran (Malaysia); Nightbirds by Maria Estela Paiso (Philippines) and Ashok Vish (India); Silig by Arvin Belarmino (Philippines) and Lomorpich Rithy (Cambodia); and Cold Cut by Don Eblahan (Philippines) and Tan Siyou (Singapore).

“QCinema can be the initial wedge to help us break the glass ceiling of world cinema and create the path to global recognition and respect,” Quezon City mayor Joy Belmonte said at a press conference on Oct. 22.

“This vision of QCinema is now a work in progress and is one major factor why Quezon City hopes to be designated as a UNESCO (United Nations Educational, Scientific and Cultural Organization) Creative City for Film. When that happens, our city will be the first in Asia to be given such a distinct honor,” Ms. Belmonte added.

The closing film on Nov. 17 is Japan’s entry to the 2024 Academy Awards, Cloud by Kiyoshi Kurosawa, which previously premiered at the Venice International Film Festival.

ASIAN NEXT WAVE
QCinema’s main competition section, Asian Next Wave, will be showcasing seven directorial debuts from Asian filmmakers.

Making the lineup this year are three female directors: Don’t Cry Butterfly by Vietnamese filmmaker Duong Dieu Linh, the Grand Prize winner at Venice Critics’ Week; Pierce by Singaporean filmmaker Nelicia Low, who was Best Director at the recent Karlovy Vary Crystal Globe Competition; and Mistress Dispeller, a documentary by Hong Kong filmmaker Elizabeth Lo, winner of the NETPAC award for Best Asian Film at Venice.

Other debuts in competition are Happyend by US-based Japanese director Neo Sora, which also recently premiered in Venice; Tale of the Land by Indonesian director Loeloe Hendra Komara, winner of the Fipresci prize in last month’s Busan; and Viet and Nam by Vietnamese director Truong Minh Quy, from Cannes’ Un Certain Regard.

The Filipino filmmaker competing in this section is Bor Ocampo, with Moneyslapper, which is making its world premiere at the festival.

SHORT FILMS
Another competition section is the shorts program. Last year, it was divided into QCShorts for local films given production grants, and QCSEA, for local and Southeast Asian films which had already premiered elsewhere.

This year, QCShorts International combines the two. It includes films from across Southeast Asia, with six Filipino short film grantees competing alongside the region’s best.

The local films are Alaga by Nicole Rosacay, Kinakausap ni Celso ang Diyos by Gilb Baldoza, Refrain by Joseph Dominic Cruz, RAMPAGE! (o ang parada) by Kukay Bautista Zinampan, Supermassive Heavenly Body by Sam Villa-Real, and Water Sports by Whammy Alcazaren.

From Southeast Asia are: Are We Still Friends? by Al Ridwan (Indonesia); Here We Are by Chanasorn Chaikitiporn (Thailand); In the Name of Love I Will Punish You by Exsell Rabbani (Indonesia); Peaceland by Ekin Kee Charles (Malaysia); Saigon Kiss by Hồng Anh Nguyễn (Vietnam); and WAShhh by Mickey Lai (Malaysia).

NEW COMPETITION SECTIONS
QCinema festival director Ed Lejano said that the two expanded competition sections will be joined by RainbowQC and New Horizons, which were previously just exhibition sections, to “flex in our region of Southeast Asia.”

“We have separate programmers for shorts now. We’re really fully loaded, doing what other big film festivals like Busan are doing, but in our own way, here in Quezon City,” Mr. Lejano told BusinessWorld.

RainbowQC celebrates LGBTQIA+ (lesbian, gay, bisexual, trans, queer, intersex, asexual, plus) films, showcasing diverse stories of identity, love, and community with bold and authentic voices from queer cinema worldwide.

Its films include three Cannes Queer Palm nominees: Baby by Marcelo Caetano, The Balconettes by Noémie Merlant, and My Sunshine, by Hiroshi Okuyama. Two other titles round up this competition: Pooja, Sir by Deepak Rauniyar, and Sebastian by Mikko Mäkelä.

New Horizons presents groundbreaking debut features from new directors: Blue Sun Palace by Constance Tsang, winner of the French Touch Prize at Cannes Critics’ Week; Cu Li Never Cries by Phạm Ngọc Lân, which won Best First Feature in Berlin; Santosh by Sandhya Suri from Cannes’ Un Certain Regard; The Major Tones by Ingrid Pokropek, selected at the Berlin Film Festival; and Toxic by Saulė Bliuvaitė, which won a Locarno Golden Leopard.

“We’re really spreading our wings to embrace all filmmakers, be it documentaries or shorts,” added Mr. Lejano.

EXHIBITION SECTIONS
Cinephiles also look forward to QCinema’s non-competition sections which give them a chance to catch titles that rarely see a theatrical release in the country.

One of these sections is Screen International, which will showcase the films of 10 world-renowned directors. Two of these are recent titles from the San Sebastian Film Festival: Spanish documentary Afternoons of Solitude by Albert Serra which won Best Film, and French film When Fall is Coming by François Ozon which won the Best Screenplay award.

The section will also have Cannes winners: India’s All We Imagine as Light by Payal Kapadia (Grand Prix); Portugal’s Grand Tour by Miguel Gomes (Best Director); Argentina’s Simon of the Mountain by Federico Luis (Critics Week Grand Prize); and the US’ Anora by Sean Baker (Palm d’Or).

Completing the lineup are Lav Diaz’ Phantosmia which premiered in Venice, The End by Joshua Oppenheimer, The Count of Monte Cristo by Alexandre de la Patellièr and Matthieu Delaporte, and Venice Golden Lion-winning The Room Next Door by Pedro Almodóvar.

The festival’s brand new QCLokal section will highlight Filipino talents.

To be shown in the section are Room in a Crowd by John Torres, featuring a special live sound performance and stitched-together footage from the lockdown; and Makamisa: Phantasm of Revenge by Khavn, which won Best Feature at Lausanne, and was inspired by José Rizal’s unfinished third novel.

The festival will also have the Shorts Expo, which presents five world premieres of remarkable short films such as Brownout Capital by Pabelle Manikan, Forgetting Clara by Nicole Matti, May Puso ba ang Manika? by Shiri de Leon, Objects Do Not Randomly Fall from the Sky by Maria Estela Paiso, Yung Huling Swimming Reunion Before Life Happens by Glenn Barit, and the Southeast Asian premiere of Invisible Labor by Joanne Cesario.

SPECIAL SCREENINGS AND MORE
Films to be shown in the Special Screenings section are Dominic Baekart’s An Errand, Kaung Zan’s If My Lover Were a Flower, Hanz Florentino’s A Thousand Forests, and Bryan Brazil’s controversial documentary Lost Sabungeros.

On the last film, Mr. Lejano told the press that “there is a context for everything that the festival espouses.”

“Whether it’s a provocative LGBTQIA+ film or an investigative journalism-type documentary, QCinema will always be a safe space for it,” he said. “We get to do what we want because we don’t have any censorship. We classify our own films. I think that’s the way it should be for all festivals in the Philippines.”

Another must-watch section that welcomes films with fantastical, action-packed, or erotic themes is Before Midnight. To be shown in the section are: Motel Destino by Karim Aïnouz, Gazer by Ryan J. Sloan, Infinite Summer by Miguel Llansó, A Samurai in Time by Junichi Yasuda, and The Wailing by Pedro Martin-Calero.

The Rediscovery section, previously named the Restored Classics section, is expected to draw crowds. To be screened this year are Delicatessen by Jean-Pierre Jeunet and Marc Caro; Cannes-winning and Oscar-nominated Dogtooth by Yorgos Lanthimos, and Akira Kurosawa’s final epic, Ran.

This year will also have a section dedicated to contemporary Italian cinema, showing Diabolik by Antonio and Marco Manetti, Io Capitano by Matteo Garrone, Kidnapped: The Abduction of Edgardo Mortara by Marco Bellocchio, My Summer with Irene by Carlo Sironi, La Chimera by Alice Rohrwacher, and Palazzina Laf by Michele Riondino.

Finally, QCinema Selects will present a special selection of standout films from around the world. Its lineup includes: Ghost Cat Anzu by Yoko Kuno and Nobuhiro Yamashita; No Other Land by Rachel Szor, Yuval Abraham, Hamdan Ballal, and Basel Adra; Shahid by Narges Kalhor; Sujo by Fernanda Valadez and Astrid Rondero; The Sparrow in the Chimney by Ramon Zürcher; and Twilight of the Warriors: Walled In by Soi Cheang.

Screenings will be held at the cinemas of the Gateway Mall, Trinoma, Shangri-la Plaza, and the Power Plant Mall. Regular tickets cost P300. For more information about QCinema, visit the website at qcinema.ph or follow its social media accounts — www.facebook.com/QCinemaPH, twitter.com/QCinemaPH, and www.instagram.com/qcinemaph. — Brontë H. Lacsamana

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