DoubleDragon: Hotel101-Cebu fully sold, opening in 2025

October 11, 2024 | 12:05 am

THE 548-room Hotel101-Cebu Mactan Airport has been fully sold out before completion, DoubleDragon Corp. said on Thursday.

The listed property developer has completed the building structure and topmost floor of the Hotel101-Cebu Mactan Airport project, the listed property developer said in a statement, adding that the project will be opened within the first half of 2025.

The project, which sits on a 5,493-square-meter (sq.m.) commercial lot along Cebu Mactan Airport Terminal Road, is said to be the biggest airport hotel in Visayas.

With the addition of Hotel101–Cebu Mactan Airport to its portfolio of revenue-generating hotels, Hotel101 aims to gain additional strategic capital to achieve its goal of becoming a leading branded hotel chain both in the Philippines and internationally.

Hotel101 is the flagship property of Hotel of Asia, Inc., the hospitality arm of DoubleDragon.

The Hotel101-Cebu Mactan Airport project is also part of the company’s goal to reach one million operating Hotel101 rooms by 2050. Out of its one million targets, 50,000 are slated in the Philippines.

According to the company, the anticipated opening of the hotel in 2025 will be followed by the launch of the 519-room Hotel101-Davao.

“More Hotel101’s are currently in simultaneous development in various parts of the Philippines and overseas. Hotel101 adopts dynamic pricing on its room rates similar to airline tickets where its room price moves up and down depending on the real-time supply and demand on the chosen date of booking,” it said.

On Wednesday, DoubleDragon’s board of directors approved the issuance of P30-billion bond offerings.

At the local bourse on Thursday, shares in the company closed 34 centavos, or 3.36% higher, to end at P10.46 apiece. — Ashley Erika O. Jose

Peso weakens to 2-month low after Fed minutes

October 11, 2024 | 12:04 am

By Aaron Michael C. Sy, Reporter

THE PHILIPPINE peso fell to a two-month low against the dollar on Thursday after markets grew more confident about a patient approach by the US Federal Reserve to further monetary easing, based on the minutes of the Federal Open Market Committee’s (FOMC) September policy meeting.

It closed at P57.36 a dollar, weakening by 34 centavos from its P57.02 close on Wednesday, according to Bankers Association of the Philippines data posted on its website.

This was the peso’s weakest close since P57.515 on Aug. 7.

The peso opened at P57.15 against the dollar, appreciated to as much as P57.11 and weakened to as much as P57.36 against the greenback. Dollars exchanged inched down to $1.57 billion from $1.58 billion a day earlier.

“The dollar-peso closed higher on dovish bets on the US Federal Reserve after the release of the FOMC minutes,” a trader said by phone.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., in a Viber message also attributed the stronger dollar to the minutes of the US central bank’s meeting last month.

The US dollar rose to a 10-week peak against the yen on Thursday as markets grew more confident about a patient approach by the Fed to further monetary easing, even as a key inflation report loomed later in the day, Reuters reported.

The dollar index, which measures the currency against six key rivals including the yen, stuck close to an almost two-month high touched overnight, as traders further pared bets for US rate cuts this year after last week’s unexpectedly strong payroll data.

Minutes from the Fed’s latest meeting, released overnight, confirmed the central bank’s focus on keeping the labor market healthy.

Traders lay 85% odds on the Fed cutting rates by 25 basis points at its policy meeting on Nov. 7, and a 15% probability of no change, the CME Group’s FedWatch Tool showed.

A week earlier, the probability of a quarter-point cut stood at 65%, with 35% odds for a half-point reduction.

A “substantial majority” of US Federal Reserve officials last month supported a half-point rate cut to start the turn toward easier monetary policy, but there appeared more universal agreement that the initial move would not commit the Fed to any particular pace of rate reductions in the future, minutes of the two-day policy meeting showed on Wednesday.

The minutes provided further details on the breadth of opinion within the Fed as policy makers approved a rate cut of a size usually reserved for moments when the central bank is worried the economy is slowing fast and needs the support of looser financial conditions.

Supporters of the half-point cut “observed that such a recalibration of the stance of monetary policy would begin to bring it into better alignment with recent indicators of inflation and the labor market,” according to the minutes of the Sept. 17-18 session, at which the Fed lowered the benchmark policy rate to 4.75% to 5% from 5.25% to 5.5% it had maintained since July 2023.

The trader expects the peso to trade at P57 to P57.50 a dollar, while Mr. Ricafort sees it at P57.25 to P57.35.

Can’t have more labor and more capital forever

October 11, 2024 | 12:04 am

Infra-Construction-Workers — PHILIPPINE STAR/JOHN RYAN BALDEMOR

At last, I was inducted into the membership of the Management Association of the Philippines (MAP) two days ago, many times postponed because of conflicting schedules. But glad I was because then the keynote speech was delivered by Dr. Robert Klitgaard, professor and former president of Claremont Graduate University who talked about, of all burning issues of the day in the Philippines, “Actionable Recommendations in Reducing Corruption in the Philippines.”

No, I am not about to assess his excellent points, supported by the reactor who was no less than a champion of clean government himself, former Department of Public Works and Highways Secretary Rogelio “Babes” Singson. Once upon a time, he purged the department of corrupt public servants. We need more time and space to give justice to Dr. Klitgaard’s inspiring message that if the Philippines was able to deal with corruption in at least two instances in the past, we can do it again!

But if corruption should persist, and I don’t even attempt to make any judgment on the kind of political candidates who filed their certificates of candidacy (CoCs) from Oct. 1-8, the efforts to address the issue of stagnant growth could be weakened. The reason is the so-called productivity drag which can be minimized if there’s timely and sufficient policy interventions or appropriate breakthroughs in technology. With corruption, the likelihood of both could be remote.

Higher productivity can squeeze more GDP from some given labor and capital, so the economy does not have to be fully dependent on more and more flows of both. Higher growth could lead to higher living standards, higher growth means higher public revenues, stronger soft and hard infrastructure. It’s no longer arguable that if the economy enjoys good public finance, funds are available to bring in new technology and transition to the digital platform. We can even afford to adapt to the imperatives of climate change and renewable energy.

As we wrote in another broadsheet, it is imperative for the Philippines to continue improving on the Government’s maximum target of 8% until 2028. We need to expand the economy much beyond that because of the huge handicap left by the pandemic in 2020, and the large deficit in our efforts to reduce poverty and income inequality. While official targets put us ahead of many countries in the world, we need no less than an economic transformation to allow us to catch up with the other ASEAN 5 countries and break out of the low-middle income group. We have been muddling through this category since 1987.

An interesting article by the IMF’s Nan Li and Diaa Noureldin published in the September Finance and Development and based on April’s World Economic Outlook observed that as of today, productivity growth “has markedly decelerated, accounting for more than half of the decline in global growth.”

In numbers, annual productivity growth in advanced economies declined from 1.4% in 1995-2000 to only 0.4% after the pandemic. Emerging markets, and they include the Philippines, saw their productivity drop from 2.5% to 0.8%. As the two economists described, “the situation is even grimmer for low-income countries, where productivity growth nose-dived from 2% in 2001-2007 to nearly zero after the pandemic.”

So, what drives productivity?

For Li and Noureldin, two main factors drive productivity growth: within-firm improvements and economy-wide allocative efficiency. The first is achieved when better technology is harnessed, management practices are enhanced, and innovative processes are adopted. It’s technology, management, and innovation.

We have seen that the rapid migration of top engineers and data scientists from and to the Googles, Apples, Microsofts, and Huaweis of this world is in itself a race for talent and productivity. Tech literature is replete with stories that document the importance of tapping research and technology. Corporates are enabled to create new products and services, or reinvent existing ones, allowing them greater market share and improving their global competitiveness.

What is sad about the Philippines is that we badly need cheap and reliable energy which could drive both technology and industrial growth. ICT services are not only slow, but they are also uneven. The penetration rate of internet services continues to be low which compromised the learning process of our young pupils during the pandemic. With scarce internet coverage, the cost of access is not exactly affordable. Based on the GSM Association (GSMA) Connectivity Index, the Philippines has shown constant improvement since 2014 on the key areas of infrastructure, affordability, consumer readiness, and content and services. Yet, the rate of improvement is so glacial that for seven years, the country has remained a “transitioner” and one of the lower-scoring in the region.

And here’s the catch: the IMF economists raised the issue of returns on investment in research and development (R&D). Yes, it’s surprising to know that the returns are diminishing. They cited the case of the semiconductor industry where more researchers were reported to be needed to double the density of chips. This seems to be true for the other sectors including ICT where the rapid gains in profitability flattened since the early 2000s.

The second driver therefore is indispensable, and this is allocative efficiency. This is all about allocating scarce resources across business for their most productive use. As Lin and Noureldin argued “this process ensures that the best businesses thrive, while less efficient ones exit the market.” Sounds heartless but in the long run, that is how to create public goods.

The situation in the Philippines in this respect is very challenging. The economy is not well diversified — whether in terms of regional growth and sources of national growth. Economic activities are highly concentrated in Luzon out of the three main islands, and in Luzon, mainly in the National Capital Region. There has been slow labor transition from agriculture, the pace and depth of manufacturing growth can be increased many times over. Instead of manufacturing, wholesale trade, real estate and financial services are preponderant.

And what is the catch for this second driver of productivity?

Believe it or not, despite the new technology and proliferation of various economic and business laws — or perhaps because of these — misallocation of capital and labor has actually increased! It is claimed that such misallocation has dragged down productivity growth by an annual average of 0.6 of a percentage point. Productivity losses because of resource misallocation are due to economic frictions such as regulatory barriers, rigid labor markets, access to finance, and illiberal trade. These are mainly structural issues that could be mitigated by targeted policy interventions.

Without them, and in the flattening of returns on investment in technology, the IMF economists proposed that global growth could be stagnant at 2.8% by the end of this decade, or one percentage point from pre-pandemic level.

Specifically, how does one address the issue of resource misallocation?

Lin and Noureldin suggested a few pathways. Reduction of barriers to market entry and promoting competition is one. What the Philippines started in the early 1990s in industry deregulation and liberalization of foreign trade are steps in the right direction, but more needs to be done. Financial markets can be liberalized, as has been pursued by the Bangko Sentral ng Pilipinas in the last 20 years. Access to funding at market cost should be as wide as possible to encourage business innovation and expansion. Reducing labor market rigidities is another indispensable policy action. Facilitating labor mobility across economic sectors will likely result in a better match between labor supply and demand. Overall productivity is likely to increase.

Finally — and this is where we shall pick up next week — institutional barriers have to be strongly dealt with in order to achieve long-term growth. “Issues such as corruption and weak property rights must be tackled through effective governance and institutional reforms.” We need even-handed regulations and best market practices to create a conducive environment for attaining higher and higher levels of productivity. Encouraging an ecosystem for technological innovation and adoption should lead to more efficient and competitive operations.

The IMF economists concluded their interesting paper by proposing a thought experiment. This would involve every country in the world closing their gaps with the best economic performers in terms of labor market flexibility, financial market liberalization, and regulation of certain product markets. They project that if this were to be done by at least 15%, something that seems achievable given the past performance of many economies, they wrote “the drag on annual productivity growth from allocative efficiency could be eliminated, reversing the decline in productivity and boosting growth.”

For obvious reasons, we cannot always have more labor and more capital at any instance. Paraphrasing that famous quote about working capital, labor and capital are like your diet; if you do not manage them, then they can kill you.

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Macron: Emily in Paris must return to… Paris

October 11, 2024 | 12:04 am

Lucien-Laviscount-and-Lily-Collins-in-Emily-in-Paris-(2020) — LUCIEN LAVISCOUNT and Lily Collins in a scene from Emily in Paris. — IMDB

PARIS — French President Emmanuel Macron said he would fight to ensure Emily — the heroine of Netflix’s hit series Emily in Paris — returns to the French capital from her sojourn in Rome.

“We will fight hard. And we will ask them to remain in Paris! Emily in Paris in Rome doesn’t make sense,” Mr. Macron told Variety magazine, in an interview published on Wednesday.

The fourth season of the series saw American expatriate Emily — played by actress Lily Collins — move from Paris to Rome for work.

The success of the series, which took off after debuting during the COVID lockdowns of 2020, has been such that Mr. Macron’s wife Brigitte had a cameo appearance in the last season.

“I was super proud, and she was very happy to do it. It’s just a few minutes, but I think it was a very good moment for her,” said Mr. Macron, regarding his wife’s cameo.

“I think it’s good for the image of France. Emily in Paris is super positive in terms of attractiveness for the country,” he added.

The program has won fans with its idealized and romanticized version of life in Paris, but has also been criticized for often bearing little resemblance to the reality of life in the capital, and for avoiding Paris’ poorer areas. — Reuters

Aboitiz, House of Investments partner for Tarlac Economic Estate

October 11, 2024 | 12:04 am

ABOITIZ InfraCapital, Inc. has partnered with Yuchengco-led House of Investments, Inc. (HI) to develop and expand its Tarlac Economic Estate.

“This partnership builds on the strong momentum we’ve already achieved, further enhancing investor interest and confidence in TARI Estate,” Aboitiz InfraCapital Head of Economic Estates Rafael P. Fernandez de Mesa said in a statement released on Thursday by parent firm Aboitiz Equity Ventures, Inc.

In separate stock exchange disclosures, the companies said the partnership will be through a joint venture under House of Investments’ Tarlac Terra Ventures Inc.

The tie-up, which is still awaiting corporate and regulatory approvals and the finalization of a definitive agreement, aims to expand Aboitiz InfraCapital’s TARI Estate.

The infrastructure arm of the Aboitiz group said the collaboration for the joint development of its Tarlac Economic Estate through Tarlac Terra Ventures will incorporate House of Investments’ 184-hectare property adjacent to its estate’s ongoing development.

Tarlac Terra Ventures, the owner of the 184-hectare property, is owned by House of Investments. Under its newly formed agreement, House of Investments will retain a 51% stake, while Aboitiz InfraCapital will hold the remaining 49%.

Aboitiz InfraCapital said the development will also utilize mixed-use components to complement its industrial and business offerings.

“Together, the two companies plan to develop and market the land for various mixed-use purposes, enhancing the overall ecosystem within the expanded TARI Estate. The project is aligned with Aboitiz InfraCapital’s long-term vision of creating a smart and sustainable community hub in Central Luzon,” it said.

Aboitiz InfraCapital also said the collaboration aims to boost the regional economy by generating more jobs and attracting both local and foreign investors.

“This joint venture will be an expansion of HI’s business interests into land development, diversifying our property portfolio. We aim to provide long-term value through flexible, sustainable, and forward-thinking real estate solutions,” House of Investments President and Chief Executive Officer Lorenzo V. Tan said.

Aboitiz InfraCapital’s TARI Estate has an initial 200-hectare development, the company said, adding that the integration of House of Investments’ mixed-use property will transform the property into a “range of opportunities for industrial, commercial, and business activities within the estate.”

At the stock exchange on Thursday, shares in Aboitiz Equity Ventures closed five centavos, or 0.13% higher, at P37.25 apiece, while shares in House of Investments closed unchanged at P3.50 per share. — Ashley Erika O. Jose

Central bank approves BPI sale of stake in GoTyme Bank

October 11, 2024 | 12:03 am

THE BANGKO SENTRAL ng Pilipinas (BSP) has approved Bank of the Philippine Islands’ (BPI) sale of its shares in GoTyme Bank, which it gained from its merger with Robinsons Bank Corp. (RBC).

“Please be advised that in its Resolution No. 1145 dated Oct. 3, the (BSP) approved the sale of BPI’s shareholdings in GoTyme Bank Corp. in favor of GoTyme Financial Pte. Ltd. and Giga Investment Holdings Pte. Ltd.,” the Ayala-led lender said in a stock exchange filing.

BPI’s board of directors approved the sale on March 20. The bank’s representatives on April 1 then signed the deeds for absolute sale.

Gokongwei-led JG Summit Capital Services Corp. and Tyme Group earlier said their board of directors had also approved plans to buy out BPI’s minority stake in the digital lender.

BPI earlier said it sold its stake in GoTyme Bank “to address any potential conflict of interest created by the significant overlap in and similarity of product offerings of GoTyme Bank and BPI.”

Under the transaction, BPI sold 752.06 million common shares in GoTyme Bank at P1.20 per share, or P902.47 million in cash.

It said 744.1 million common shares in GoTyme were sold to Gokongwei-led GoTyme Financial, while 7.96 million common shares went to Giga Investment.

The shares sold by BPI accounted for 15% of the outstanding capital stock of GoTyme Bank.

The merger between BPI and Robinsons Bank took effect on Jan. 1, with BPI as the surviving entity.

GoTyme Bank is a partnership between the Gokongwei and Tyme groups. It is one of the six digital banks licensed by the BSP to operate in the country.

The online lender began commercial operations in October 2022 and is targeting 5 million customers by yearend from about 3 million now. It also expects to turn a profit within the next three years.

BPI’s net income grew by 17.5% to P15.3 billion in the second quarter on faster revenue growth. This brought its first-half earnings to P30.56 billion, up by 21.51% year on year.

Its shares closed at P141 on Thursday, down by a peso from the previous day’s finish. — Aaron Michael C. Sy

DoLE estimates POGO job losses at 30,000

October 11, 2024 | 12:03 am

THE Department of Labor and Employment (DoLE) said about 30,000 workers in the Philippine Offshore Gaming Operator (POGO) industry are expected to lose their jobs once their employers shut down.

POGOs, which are now officially known as Internet Gaming Licensees (IGLs), were ordered shut down by the end of the year after the president announced a ban in July.

Earlier this week, at he Labor Inspection Summit in Pasay City, Labor Secretary Bienvenido E. Laguesma told BusinessWorld that IGLs based in Metro Manila have finished profiling the workers set to lose their jobs.

A total of 51 companies in the National Capital Region (NCR), including IGLs, accredited providers, and a special class of business process outsourcing (BPO) firms have finished profiling workers, he said.

Region 4-A (Cavite, Laguna, Batangas, Rizal, Quezon) will finish profiling this month.

“What we are seeing in Region 4, for example, is around 6,000 to 7,000 (are still yet to be profiled). So, the total could reach more or less 30,000 plus,” Mr. Laguesma said.

“We are still looking into those who will be indirectly affected because even though the program is currently focused on those directly affected or the employees of IGLs, we cannot overlook that there will be those indirectly affected by the closure,” he added.

President Ferdinand R. Marcos, Jr., in his State of the Nation Address in July, ordered IGLs banned, citing the criminal activity connected with the industry.

“In Region 4A, which also has four or five IGLs, we are waiting for the completion of their profiling, and according to our regional director, they will also be done within this month,” Mr. Laguesma said.

“We need to finish this early so we can prepare for the interventions DoLE plans to undertake. It’s not just about employment facilitation through job fairs, but we can also help through livelihood projects,” he added.

“Likewise, we can assist in the upskilling or reskilling of workers, as many of them have knowledge of IT and BPO. We are somewhat optimistic that we can help. If not all, then a large portion of the workers. But the President’s directive is to help all those affected,” he added.

Job fairs for IGL workers kicked off Thursday in two Ayala Malls in Metro Manila, Mr. Laguesma said.

Last month, the Philippine Amusement and Gaming Corp. (PAGCOR), the industry’s regulator, said as many as 42,000 Filipino workers would be affected by the ban.

Catalino B. Alano, Jr., PAGCOR’s external communications and corporate communications assistant vice-president, earlier told BusinessWorld the number is composed of IGL workers, service providers, and special BPOs.

He added that as of July 1, only 41 registered IGLs remain, in the NCR, Laguna, and Cavite. Special BPOs number 14 and accredited providers 20. — Chloe Mari A. Hufana

Sustainable Finance: Greening the banking sector

October 11, 2024 | 12:03 am

businessman-using-tablet-with-digital-network-graphic-front-cityscape — FREEPIK

The banking industry has been undergoing a significant transformation in recent years. Once perceived as a sector primarily concerned with profit maximization, the banking industry is fast recognizing the importance of climate change, social inequality, and environmental degradation in the way it does business.

Thus, more and more banks are adopting sustainable practices. Evidently, this transformation is driven by a number of factors — from regulatory pressures and customer expectations, to the industry’s recognition and acceptance that sustainability can be and is now a competitive advantage.

As currently practiced abroad and in the Philippines, sustainability initiatives in the banking sector range from environmental stewardship to social responsibility and ethical governance. For example, Philippines banks have now integrated environmental, social, and governance (ESG) factors into business operations, investment decisions, and risk management. By embracing sustainability, banks are embracing their role in societal resilience while also enhancing reputation and financial performance.

Today, one of the most critical focus areas for sustainable banking is climate change. Filipino banks are recognizing that they have a significant role in moving the needle towards a transition to a low-carbon economy by financing “green” projects.

It is not unusual these days to read in the news that some major banks are developing and providing loan packages and investment proposals for renewable energy projects, energy efficiency initiatives, and sustainable transportation. We are also seeing several banks manifesting support for climate adaptation initiatives by financing infrastructure projects that build resilience to climate-related risks.

From the current base of initiatives, another focus of sustainable banking is the industry’s commitment to social responsibility. We see banks contributing to social development by providing financial services to underserved communities, promoting financial inclusion, and supporting initiatives that address poverty, inequality, and unemployment. By investing in human capital and creating shared value, Filipino banks are helping build stronger relationships with their customers and communities.

Indeed, sustainability in the banking sector is essential for several reasons. They are as follows:

• Risk Management: Because banks take into consideration ESG factors, they are now able to better manage risks associated with environmental disasters, social unrest, and governance failures.

• Reputation and Trust-building: Adoption of sustainable practices promote bank’s reputation and help build trust and credibility with customers, investors, and regulators.

• Regulatory Compliance: Increasingly, governments and regulatory bodies are mandating sustainability reporting and practices.

• Market Opportunities: There is growing demand for green finance products and services, providing banks with new business opportunities.

• Long-term Profitability: Sustainable practices can lead to cost savings, improved operational efficiencies, and long-term profitability.

By looking at the current landscape, we can readily see that banks are employing several strategies in promoting sustainability in the financial sector. By incorporating ESG criteria into their lending and investment processes, they ensure that the projects and companies they finance are aligned with sustainable practices. Assessing the environmental impact, social implications, and governance practices of potential borrowers and investees is becoming a regular practice in the banking industry.

Offering green financial products, such as green bonds, sustainability linked loans, and green mortgages, allows banks to support environmentally friendly projects and businesses. These products can help finance renewable energy projects, energy-efficient buildings, and sustainable agriculture.

Banks are also improving their internal operations by adopting energy-efficient technologies, reducing waste, and promoting sustainable practices among employees. These efforts are further complemented by implementing other initiatives such as paperless banking, use of renewable energy sources, and eco-friendly transportation.

Supporting community development and social initiatives is another way banks can contribute to sustainability. This involves funding education programs, healthcare services, affordable housing projects, and other initiatives that improve the well-being of communities. Regularly publishing sustainability reports and setting clear sustainability targets are also common staples. These help banks demonstrate their commitment to sustainability and hold themselves accountable.

Several Filipino banks have emerged as leaders in sustainable banking. These institutions have demonstrated a strong commitment to environmental, social, and governance principles, and their initiatives serve as examples for the industry.

Here are some exemplary sustainable practices in Philippine banks:

The Bank of the Philippine Islands (BPI) has been at the forefront of sustainability in the Philippine banking sector. BPI’s sustainable practices include:

• Sustainable Energy Finance (SEF) Program: Launched in partnership with the International Finance Corp. (IFC), the SEF program provides financing for renewable energy and energy efficiency projects. This initiative has helped reduce greenhouse gas emissions and promote the use of clean energy.

• Green Building Initiatives: BPI has implemented green building standards in its branches, focusing on energy efficiency, water conservation, and waste reduction. The bank has also invested in solar power systems for several of its branches.

Rizal Commercial Banking Corp. (RCBC) has also made significant strides in sustainability:

• Sustainable Financing Framework: RCBC has developed a Sustainable Financing Framework, under which it issues green and sustainability bonds. These bonds finance projects that contribute to environmental and social sustainability, such as renewable energy, green buildings, and social housing.

• Environmental and Social Risk Management System (ESRMS): RCBC has implemented an ESRMS to integrate environmental and social risk considerations into its credit decision-making process. This system helps the bank identify and mitigate potential ESG risks associated with its lending activities.

LANDBANK has a strong focus on sustainable development, particularly in supporting agriculture and rural communities:

• Green Climate Fund (GCF) Accreditation: LANDBANK is accredited by the Green Climate Fund, allowing it to access funding for climate mitigation and adaptation projects. This enables the bank to support initiatives such as reforestation, climate-resilient agriculture, and renewable energy.

• Sustainable Development Assistance Programs: LANDBANK offers various financial products and services aimed at promoting sustainable agriculture, rural development, and environmental protection. These programs include loans for organic farming, eco-friendly aquaculture, and sustainable fisheries.

The Development Bank of the Philippines (DBP) has a long-standing commitment to sustainability:

• Environmental Management Program (EMP): DBP’s EMP focuses on promoting environmental protection and sustainability through its financing activities. The bank provides loans for projects that support clean energy, pollution control, and sustainable resource management.

• Green Financing Program: DBP offers a Green Financing Program that provides financial support for projects that contribute to environmental sustainability, such as renewable energy, energy efficiency, and waste management. This program aligns with the bank’s goal of promoting sustainable development in the Philippines.

Metropolitan Bank & Trust Co. (Metrobank) has integrated sustainability into its core operations:

• Green Bond Issuance: Metrobank has issued green bonds to finance environmentally sustainable projects. The proceeds from these bonds are used to fund initiatives such as renewable energy, green buildings, and sustainable water management.

• Sustainable Operations: Metrobank has implemented various initiatives to reduce its environmental footprint, including energy-efficient lighting, water conservation measures, and waste reduction programs. The bank also promotes sustainable practices among its employees through awareness campaigns and training programs.

Union Bank of the Philippines has demonstrated a commitment to sustainability through various initiatives and product offerings that align with ESG principles:

• Green Financing and Sustainable Investments: UnionBank offers sustainable financing products to support businesses that engage in environmentally friendly practices. This includes providing loans for renewable energy projects, energy efficiency initiatives, and other eco-friendly ventures that help reduce carbon footprints.

• Digital Transformation for Sustainability: By championing digital banking, UnionBank significantly reduces the need for paper, travel, and physical bank visits. The promotion of e-banking solutions, mobile apps, and digital payments contributes to environmental conservation by reducing the carbon footprint associated with traditional banking activities.

Indeed, sustainability practices in the banking industry are crucial for managing risks, enhancing reputation, complying with regulations, capturing market opportunities, and ensuring long-term profitability. Banks play a vital role in promoting sustainable development by integrating ESG criteria into their operations, developing green financial products, enhancing internal sustainability practices, engaging in community initiatives, and maintaining transparent reporting.

The examples of Philippine banks demonstrate that sustainability is becoming an integral part of the banking sector in the country. These banks have implemented various sustainable practices, including financing renewable energy projects, supporting sustainable agriculture, issuing green bonds, and improving their internal operations. By continuing to innovate and prioritize sustainability, banks can contribute significantly to the global effort to build a more sustainable future.

Sustainability is no longer an option for the banking industry but a necessity. By integrating ESG considerations into their business models, banks can create long-term value for shareholders, customers, and communities. The Philippine banking industry has made significant progress in this area, and with continued efforts, the country can become a leader in sustainable finance in the region.

Dr. Ron F. Jabal, APR, is the CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

Director Steve McQueen’s Blitz opens 2024 London Film Festival

October 11, 2024 | 12:03 am

Elliott-Heffernan-and-Saoirse-Ronan-in-Blitz-(2024)-thumb — IMDB

LONDON — Oscar-winning director Steve McQueen kicked off the London Film Festival on Wednesday with his gripping World War Two drama Blitz.

“Where we’re standing right now, bombs were dropped,” the 12 Years a Slave and Hunger filmmaker said on the red carpet at the capital’s Royal Festival Hall. “So, to be in London showing a movie about London in 1940, I mean, where else can I show this picture?”

Blitz stars Saoirse Ronan as Rita, a London mother who sends her young son George, played by newcomer Elliott Heffernan, to safety in the countryside during the war. But George is determined to return home despite the many dangers ahead.

Like his character, Mr. Heffernan, whose previous acting experience consisted of playing Aladdin in a school play, embarked on a transformative journey with the movie.

“It was a massive adventure, just for one kid who did a school play to being on the red carpet and knowing exactly how a film works. I think I’ve come a very long way,” the 11-year-old said, adding he had not told his friends about his star turn.

“Maybe they’ll find out, maybe they won’t. I might not tell them. I mean, I want to keep it normal,” he said.

Dubbed “the Blitz” by the locals, the intense aerial bombing of the United Kingdom from September 1940 to May 1941 by the German Luftwaffe was officially called Blitzkrieg, or “Lightning War.” It saw Londoners huddling together in underground shelters, battling blazes caused by the bombings and rescuing people from the rubble of their homes.

“It (the film) is about community coming together against all odds and kind of honoring that part of our humanity that needs to find lightness and levity no matter how bad the world is around us,” Ms. Ronan said.

Written and directed by Mr. McQueen, Blitz also stars Harris Dickinson, Paul Weller, Stephen Graham, and Benjamin Clementine.

It is one of 255 titles from 80 countries screening at the 68^th edition of the London Film Festival.

Blitz is out in select cinemas on Nov. 1 and will stream on Apple TV+ from Nov. 22. — Reuters

Accenture opens sustainability hub in Mandaluyong

October 11, 2024 | 12:03 am

ACCENTURE, Inc., a global professional services company, has opened a sustainability hub in Mandaluyong City as part of its environmental, social, and governance (ESG) efforts.

“Our goal here is to have a one-stop shop of all of our ESG-related actions,” Amabel P. Gatmaitan, corporate services and sustainability lead at Accenture Philippines, said during a press briefing on Thursday.

“We partner with a client, regardless of where they are, regardless of what industry they are in, we always make it a point that sustainability is part of the conversation as well. That’s why we’re very proud of our sustainability by design,” Ms. Gatmaitan said.

In a 2024 study by Accenture, which looked into ESG compliance and reporting as a competitive advantage in business reinvention strategies, companies with strong ESG capabilities already consider sustainability as a significant value driver for their organizations.

The firm said that by embedding sustainability in everything it does and works with, Accenture is able to create both business value and sustainable impact, “enabled by technology and human ingenuity.”

Within the sustainability hub is the Workplace Intelligent Network or command center, which started in 2018. This center receives information from buildings enabled with smart meters.

“Through the automated meter reading implementation (AMI), we are aligning with our clients’ objectives to reduce carbon emissions by 80% in 2030 and achieve 100% carbon-free electricity by 2050,” Ms. Gatmaitan said.

She also said the center can monitor and predict in real-time the fuel of the generator set of Accenture locations across regions as part of its business resiliency.

At the Accenture Advanced Technology Centers in the Philippines, Accenture partnered with clients on their net zero journey.

In a study by Accenture and United Nations Global Impact, it urged private sectors to lead with using technology such as generative artificial intelligence to accelerate their sustainability development targets.

The company has 26,000 eco-champions or employees involved in sustainability-related activities such as tree planting, eco-fund runs, and more, Accenture said. — Aubrey Rose A. Inosante

Philippine HMOs expected to bounce back after rampant insurance fraud

October 11, 2024 | 12:02 am

MEDICARE PLUS, Inc. expects the health maintenance organization (HMO) industry to continue its recovery in the coming quarters as companies continue to consolidate.

“In the last two years, there was a huge decline,” Medicare Plus Chief Executive Officer Maria Jesusa “Jayjay” Viray told reporters on Thursday. “That’s a wake-up call to all our partners in the industry. Of course, it’s also going to help if we cooperate with our member-hospitals and clinics and understand their situation.”

“We cannot just be working independently,” she said, adding that she expects the sector to bounce back and grow.

The HMO industry posted a net income of P636.6 million in the second quarter, data from the Insurance Commission showed. This was a turnaround from the P1.19-billion net loss a year earlier, according to the unaudited financial statements of 25 HMOs.

Before this, the HMO industry had quarterly net losses from September 2022 to December 2023.

“As a member of the industry, we have to rethink how we do things, how we serve our clients,” Ms. Viray said. “For some time, I think we’ve been locked in and not fulfilling contracts and coverages… That’s something that we have to revisit.”

She attributed the industry’s decline to rampant fraud.

“So as a provider, we have to do our part in keeping this industry aligned,” she said. “If we don’t rethink how we do things, then it will just continue to decline and there will be more losses.”

Ms. Viray noted that from 30 companies, they have gone down to 25 in just two years.

The Insurance Commission has been shutting down HMOs for failing to meet minimum capital requirements.

In July, the regulator issued an advisory seeking industry comments on a possible increase in HMOs’ minimum paid-up capital, which will be enforced over 10 years.

Under the proposal, existing HMOs must have at least P50 million in paid-up capital by end-2024 from P10 million now, while new HMOs must put up at least P100 million in capital.

By end-2025, all HMOs should have at least P100 million in paid-up capital. This will be increased to P200 million by end-2028, to P350 million by end-2031 and to P500 million by end-2034.

Ms. Viray said she hopes more HMOs would come in since the sector remains largely untapped.

“Only seven million are enrolled in an HMO plan,” she said. “What happened to the rest of the country? The plans are not expensive. Everybody can afford to get a plan. But we have to do our part as providers.”

She said Medicare Plus is expanding and buying clinics since it has managed to meet the minimum capital requirement for HMOs. “We are in expansion mode. We’ve just bought several clinics and we are going to get more,” she added.

As of end-June, Medicare Plus’ capital stock was P50 million.

Ms. Viray said they are waiting for the Securities and Exchange Commission’s (SEC) approval of another P70 million in capital, which will bring the company’s total capital stock to P120 million.

Medicare Plus raised its capital due to its strong revenue, she added.

The company on Thursday signed a memorandum of understanding with the Public Safety Mutual Benefit Fund, Inc. to provide its members with healthcare services.

The Philippine National Police’s (PNP) mutual benefit fund will begin with a pilot program, providing healthcare services first to 16,000 members who have been in the service for 20 to 24 years until the first quarter of 2025, when it will have expanded to more members.

The fund has 200,000 members.

Medicare Plus’ services will add to the PNP’s own hospitalization program, fund trustee Emmanuel B. Peralta said.

The fund will pay P60 million each year in the next five years, for a total of P300 million. This translates to about P40,000 worth of health service coverage per member.

Medicare Plus posted a net income of P545,135 in the second quarter. — Aaron Michael C. Sy

Spanish truckers to stage series of job walkouts over retirement rules

October 11, 2024 | 12:02 am

MADRID — Spain’s truck and bus drivers will start a series of strikes on Oct. 28 to demand earlier retirement on better conditions, union leaders said.

Truck drivers will walk out on Oct. 28, Nov. 11, Nov. 28, Nov. 29, Dec. 5, Dec. 9, and will begin an indefinite strike on Dec. 23 if their demands are not met, representatives of the country’s two main unions, the CCOO and UGT, announced.

The unions demand that drivers’ employment conditions such as the retirement age, now at 67, and the right to partial retirement be improved and adjusted to the conditions of other categories of workers who face similar risks as drivers.

“Age is a determining factor in motor skills, sensory and cognitive loss and constitutes a risk not only for the worker but also for the rest of the people,” said Diego Buenestado, UGT’s secretary for road and urban transportation.

A month-long strike by truckers in 2022 brought Spanish supply chains to a halt, caused food shortages, triggered a bout of inflation and hit economic growth. — Reuters

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