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Banks’ NPL ratio rises to over two-year high

IIIJAOYINGIII-PIXABAY

PHILIPPINE BANKS’ asset quality worsened in July as the industry’s gross nonperforming loan (NPL) ratio rose to its highest in over two years.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the banking industry’s gross NPL ratio went up to 3.58% in July from 3.51% in June and 3.43% a year ago.

This was the highest bad loan ratio in 25 months or since 3.6% in June 2022.

Data from the BSP showed that soured loans increased by 1.13% to P508.11 billion as of end-July from P502.42 billion a month earlier. Year on year, bad loans jumped by 15.46% from P440.07 billion.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. These are deemed as risk assets since borrowers are unlikely to pay.

The loan portfolio of Philippine banks slid by 0.78% to P14.21 trillion as of end-July from P14.32 trillion at end-June. However, it increased by 10.79% from P12.82 trillion a year ago.

Past due loans rose by 1.88% to P625.71 billion in July from P614.17 billion a month earlier. Year on year, it increased by 18.37% from P528.62 billion.

This brought the past due ratio to 4.4% in July, higher than 4.29% in June and 4.12% a year ago.

On the other hand, restructured loans stood at P291.08 billion in July, down by 0.86% from P293.62 billion in June. Year on year, it fell by 4.47% from P304.71 billion a year ago.

Restructured loans accounted for 2.05% of the industry’s total loan portfolio, steady from a month ago but lower than 2.38% in July 2023.

Banks’ loan loss reserves inched down by 0.05% to P479.24 billion in July from P479.46 billion in June but rose by 6.44% from P450.24 billion a year ago.

This brought the loan loss reserve ratio to 3.37%, slightly higher than 3.35% last month but lower than 3.51% a year ago.

Lenders’ NPL coverage ratio, which gauges the allowance for potential losses due to bad loans, slipped to 94.32% in July from 95.43% in June and 102.66% in July 2023.

The higher NPL ratio in July can be attributed to elevated borrowing costs, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The NPL ratio for Philippine banks reached 3.58% in July, a two-year high likely due to factors like post-pandemic recovery challenges, rising interest rates, and sector-specific issues,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

The BSP had kept its policy rate at an over 17-year high of 6.5% from October 2023 to July 2024. At its August meeting, the Monetary Board cut its policy rate by 25 basis points (bps) to 6.25%.

“Furthermore, the latest pickup in banks’ NPL ratio may also be a function of faster loan growth in recent months, meaning the faster expansion in banks’ loan portfolio also partly corresponds to some pickup in NPLs as well, so it is very important to have tight and uncompromising credit/lending standards to curb NPLs to as minimal as possible,” Mr. Ricafort said.

Outstanding loans of universal and commercial banks rose by 10.4% year on year to P12.14 trillion in July from P11 trillion a year ago. This was the fastest loan growth in 19 months or since the 13.7% logged in December 2022.

For the rest of the year, Mr. Ricafort said rate cuts by the US Federal Reserve and the BSP would lower borrowing costs for consumers and businesses.

“(This) could also help boost economic growth and other business activities, thereby could lead to some improvement in borrowers’ ability to pay that helps ease NPL ratio and overall asset quality of banks,” he said.

Mr. Ravelas said he is “cautiously optimistic” on the outlook for banks.

“However, with improved economic conditions, accommodative measures from the BSP, and strengthened risk management by banks, the outlook for asset quality is cautiously optimistic for the rest of the year,” Mr. Ravelas added.

BSP Governor Eli M. Remolona, Jr. previously said the central bank could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19. — Aaron Michael C. Sy

Philippines is still most disaster-prone country for 16th straight year

Residents wade through the floodwaters in Baseco, Manila, Sept. 2, 2024. — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES remained the most disaster-prone country for the 16th straight year, as it continues to face extreme natural events like typhoons, earthquakes and droughts.

In the latest World Risk Index, the Philippines’ risk score inched up to 46.91 this year from 46.86 last year.

A country’s score is measured based on its exposure to disasters as well as vulnerability to its effects. A score of 100 means a country has a “very high risk” while zero suggests otherwise.

The World Risk Report, published by Germany-based Bündnis Entwicklung Hilft and the Institute for International Law of Peace and Armed Conflict at Ruhr University Bochum (IFHV), assesses the disaster risk for 193 countries using 100 indicators.

The Philippines, which faces an average of 20 typhoons every year, has topped the World Risk Index since 2009.

“In 2024, the risk hotspots remain in the Americas and Asia, hosting eight of the 10 countries with the highest risk scores. Over the long term, however, these hotspots will shift to countries with climate-sensitive exposure and high vulnerability,” the report said.

Indonesia ranked second in the index with a score of 41.13, followed by India (40.96), Colombia (37.81) and Mexico (35.93). The rest of the top 10 included Myanmar (35.85), Mozambique (34.44), Russia (28.12), Bangladesh (27.73), and Pakistan (27.02).

Global disaster risks are also closely linked to poverty and inequality, the report said.

“This persistence often results from robust interactions between increasing vulnerability and damage caused by extreme events. Countries with climate-sensitive exposure and high to very high vulnerability are particularly at risk. These countries can expect more frequent and more intense extreme natural events and damage in the future,” it said.

In terms of exposure to disasters, the Philippines ranked fourth with a score of 39.99. China had the highest exposure (64.59), followed by Mexico (50.08), and Japan (43.67). A high score means a country is most exposed to drought, earthquakes, tsunamis, cyclones, coastal and riverine flooding, and rising sea levels.

“Climate change is increasing the frequency and intensity of extreme natural events, leaving less and less time for regeneration. As soon as one disaster is overcome, the next threat is already looming,” the report said.

The Philippines also had “very high” scores in terms of vulnerability (55.03), susceptibility (51.16), and lack of coping capacities (58.07).

“Extreme weather events, conflicts and pandemics overlap and amplify each other. Global trends such as climate change, population growth and political polarization promote multiple crises and intensify their effects,” the report said.

For instance, the Philippines was hit by 22 typhoons during the coronavirus disease 2019 (COVID-19) pandemic, including Supertyphoon Rolly (international name: Goni) which was considered one of the strongest ever.

“Hundreds of thousands of destroyed homes, overcrowded evacuation centers and the resulting increase in COVID-19 cases not only led to a dramatic increase in humanitarian needs, but also had a negative impact on the mental health of the population,” the report said.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the Philippines’ tight fiscal space has affected risk mitigation measures.

“While government has disaster and climate bodies which craft policy relating to adaptation and mitigation measures to address disaster and climate risks, government offices have not yet done enough to actually implement climate resilient programs and projects,” he said in a Viber message.

“A particular reason for this is our limited fiscal space, in which fundamental social services and infrastructure are the most important spending priorities.”

Typhoons may have cost the Philippine economy around $20 billion in gross domestic product losses from 1990 to 2020, the Asian Development Bank said in a 2021 report.

The Philippine government should come up with ways to make its key projects or programs more climate-responsive or climate-resilient, Mr. Ridon added.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said the Philippines has a high risk of disasters due to its vulnerability to climate change.

“If institutions are strong, there are ways of mitigating the effects of extreme weather conditions in the country. Climate is one significant challenge we face, and our institutions are powerless in protecting our properties and lives. I am thinking of corruption, and flood control funds can be diverted into their interests,” Mr. Lanzona said. — Beatriz Marie D. Cruz

Senate approves CREATE MORE bill on third and final reading

REUTERS

THE SENATE on Monday approved on third and final reading the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to lower taxes on domestic and foreign companies to 20% from 25%.

Senators also approved on final reading a measure that raises the allocation for the Rice Competitiveness Enhancement Fund (RCEF) to P30 billion from the current P10 billion up to 2031.

Twenty-three senators voted in favor of Senate Bill No. 2762 or the CREATE MORE bill.

Under the bill, large, registered business enterprises (RBEs) with a capital stock of over P20 billion will be granted value-added tax (VAT) zero-rating on local purchases made and VAT exemption on imports and duty exemptions on imports of capital equipment, raw materials, spare parts and accessories.

Export-oriented RBEs are also entitled to VAT zero-rating on essential services such as janitorial, security, financial consultancy, marketing and human resources, based on a copy of the bill.

The Senate’s version of CREATE MORE transfers the responsibility of processing VAT refund claims to the Department of Finance from the Bureau of Internal Revenue (BIR) to cut delays.

“CREATE MORE offers enhance and targeted incentives to further drive investment and economic recovery in the country… To achieve this, the measure focuses on enhancing the tax incentives regime for RBEs, clarifying existing rules and policies on the grant and administration of fiscal incentives, and fostering an investment climate favorable for FDIs,” Senator Sherwin T. Gatchalian, who sponsored the bill, said in a statement.

Under the bill, RBEs may get a full 100% additional deduction on power expenses in a taxable year, up from 50% under the Tax Code, to address high power costs.

The bill also proposes a not more than 2% RBE local tax (RBELT) based on gross income. RBEs will also be allowed to have a work-from-home setup for up to half of their workforce, without losing their incentives.

Under the bill, the Philippine President would be allowed to give nonfiscal incentives to enterprises without the need for a recommendation from the Fiscal Incentives Review Board (FIRB).

The bill gives the review board the power to suspend the authority of investment promotion agencies (IPA) that grant incentives to projects and activities with an investment capital over the P20-billion threshold, programs not listed on the national or local Strategic Investment Priority Plan, or for failing to comply with regulations and orders issued by the FIRB.

Under the bill, IPAs are to oversee the operations of different economic zones and freeports and to issue incentives to businesses in these areas.

The FIRB is mandated to review and monitor the compliance of these agencies in granting these perks.

“It should improve business confidence in the Philippines, particularly as the bill sees to compete with neighboring countries in imposing corporate income tax rates for both domestic and foreign corporations,” Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said in a Facebook Messenger chat.

The Senate’s version of CREATE MORE also exempts international carriers from paying VAT on imported fuel, goods and supplies used for international shipping or air transport operations.

RICE RESERVES
Meanwhile, senators unanimously approved Senate Bill No. 2779, which amends the Agricultural Tariffication Act or Republic Act No. 11203.

The measure allows the Department of Agriculture to sell the National Food Authority’s rice reserves in areas suffering shortages or “extraordinary” high prices of rice, replenish the inventory with domestic rice, and import grain of no domestic option is available.

Under the bill, the RCEF allocation will be raised to P30 billion, which will be used for equipment to allow farmers to grow high-quality inbred rice seeds, as well as provide cash aid for farmers.

The Rice Tariffication Law had deregulated rice imports, allowing private parties to import while paying a 35% tariff on the product brought in from Southeast Asia, which generates funds for RCEF. — J.V.D.Ordoñez

Her Locket  is the big winner at 2024 Sinag Maynila

WINNING ACTRESSES Rebecca Chuaunsu and Elora Españo in a scene from Her Locket.

THE 6th Sinag Maynila film festival, also the first edition since the pandemic, saw J.E. Tiglao’s family drama Her Locket emerged as the night’s big winner, bagging a total of seven awards including Best Film.

The film — which follows an aging Filipino-Chinese woman Jewel Ouyang (played by Rebecca Chuaunsu), who recalls memories from her past amid the throes of dementia, with her caregiver Teresa (played by Elora Españo) at her side — participated in the Marche Du Film section of the 2023 Cannes Film Festival.

Aside from being named as the Best Film in Sinag Maynila, Her Locket’s other awards that night were Best Director for J.E. Tiglao, Best Actress for Ms. Chuaunsu, Best Supporting Actress for Ms. Españo, Best Screenplay for J.E. Tiglao and Maze Miranda, Best Cinematography for Jag Concepcion, and Best Production Design for James Rosendal.

The awarding ceremony was held at the Manila Metropolitan Theater in Ermita, Manila, on Sept. 8.

The Gospel of the Beast, which opened the 2024 Cinemalaya Independent Film Festival last month, picked up two awards at Sinag Maynila: Best Actor for Ronnie Lazaro and Best Supporting Actor for Jansen Magpusao.

The film tells the tale of impoverished teenager Mateo (played by Mr. Magpusao) succumbing to a life of violence with the help of his uncle Berto (played by Mr. Lazaro).

Alvin Yapan’s horror film Talahib was given the People’s Choice Award.

Bagging the Best Editing award was the action thriller Banjo, Sarangani Province-based writer, director, and editor Bryan Wong’s first foray in a major film festival.

The shorts category saw As the Moth Flies by Gayle Oblea prevail over nine other entries while the winning documentary was INO by Ranniel Semana. — Brontë H. Lacsamana

 

And the winner is…

HERE is the full list of winners at the 2024 Sinag Maynila Film Festival awards night which was held on Sept. 8.

Best Film: Her Locket

People’s Choie Award: Talahib

Best Director: J.E. Tiglao (Her Locket)

Best Actor: Ronnie Lazaro (The Gospel of the Beast)

Best Actress: Rebecca Chuaunsu (Her Locket)

Best Supporting Actor: Jansen Magpusao (The Gospel of the Beast)

Best Supporting Actress: Elora Españo (Her Locket)

Best Screenplay: J.E. Tiglao and Maze Miranda (Her Locket)

Best Cinematography: Jag Concepcion (Her Locket)

Best Editing: Bryan Wong (Banjo)

Best Production Design: James Rosendal (Her Locket)

Best Ensemble Acting: Her Locket

Best Short Film: Gayle Oblea’s As the Moth Flies

2nd Best Short Film: Kyd Torato’s Bisan Abo Mabilin

3rd Best Short Film: Franky Arrocena’s Ang Maniniyot ni Papa Jesus

Best Documentary: Ranniel Semana’s INO

Documentary Jury Prize: Jeninah Denise A. Domingo’s Pag-ibig ang Mananaig; Chuck Escasa’s Ghosts of Kalantiaw

Easier Korean visa application for Filipinos this winter

CHILGAPSAN ICE FOUNTAIN FESTIVAL — ENGLISH.VISITKOREA.OR.KR

WHEN the Korea Travel Fiesta 2024 kicked off in Makati City last weekend, the Korea Tourism Organization (KTO) officially began carrying out its goal of promoting their country’s culture, cuisine, and climate to Filipinos.

Now that the Philippines is familiar with parts of Korean culture through K-Pop and K-Dramas, the KTO’s goal is to “promote winter tourism and family travel in anticipation for the peak winter-tourist visitation in Korea,” said its acting president, Seo Young-choong, in a media interview.

Most importantly, a partnership between the KTO and Philippine banking institutions will allow a more streamlined visa application process.

“As of July this year, 280,000 Filipino tourists have visited Korea, and 930,000 Koreans have visited the Philippines, nearly recovering to the levels seen in 2019,” Mr. Seo said.

He added that they have been working continuously to make visa application more convenient for Filipinos.

“With the opening of the Korean Visa Application Center in Manila at the end of August last year, and the expansion of group e-visa agencies to 23 locations in October, the conditions for visa applications have greatly improved,” he added.

Following those initiatives, eligible credit card holders of the Bank of the Philippine Islands, BDO Unibank, Metropolitan Bank & Trust Co., and Rizal Commercial Banking Corp. will no longer be required to submit bank certificates, bank statements, and income tax returns in applying for a Korean visa.

The only requirements will be an original copy of their certificate of employment, a copy of their credit card, and the last three months of billing statements.

This simplified visa application, which the KTO formalized on Sept. 6, is now available until the end of the year.

TRAVEL FAIR
The Korea Travel Fiesta, held in the first week of the “ber” months of the Philippines, aimed to attract families and travelers to key winter locations in South Korea.

It was held at the Glorietta Activity Center, with interactive booths showcasing Korean culture. A K-Beauty booth offered free hair and make-up sessions and color analysis while the Korean Cultural Center booth let visitors write in Hangeul and wear the traditional Korean Hanbok.

The travel fair was also held this year to celebrate the 75th anniversary of diplomatic ties between Korea and the Philippines.

There were booths offering exclusive flight deals and travel packages to regional locations like Daegu, Nami Island, Jeollanamdo, and Busan.

While speaking to the press, Mr. Seo recommended the cities of Gangneung, Jeonju, and Mokpo as cultural or culinary hotspots outside of Seoul that more Filipinos should explore.

“According to a recent survey conducted by the KTO, the top activities that Filipino tourists wish to experience in Korea are, in order, enjoying natural scenery, indulging in culinary experiences, and visiting historical and cultural sites,” he said.

The locations he mentioned provide all these activities outside of the usual comfort of Seoul.

For more information on ongoing travel deals beyond the two-day fair last weekend, e-mail ktomanila@gmail.com. — Brontë H. Lacsamana

ABS-CBN licenses slate of movies from Sony Pictures Entertainment

Films to stream on Cinemo, iWantTFC, and ABS-CBN Entertainment’s YouTube channels

ABS-CBN is expanding its digital content offerings through a new licensing agreement with Sony Pictures Entertainment (SPE). The agreement will see premium movies from Sony’s library streaming on ABS-CBN’s YouTube channels — Cinemo, iWantTFC, and ABS-CBN Entertainment.

“ABS-CBN is thrilled to offer Sony Pictures Entertainment’s premium selection of classic award-winning movies for our Filipino audiences to enjoy,” ABS-CBN head of Digital Jamie Lopez was quoted as saying in a statement. “SPE is known for their years of expertise in producing hit and timeless movies that connect with viewers all over the world. This deal marks an exciting opportunity for us to provide new content and stories that our viewers will love.”

“ABS-CBN has long been recognized as a leader in the entertainment industry in the Philippines and we’re thrilled to be collaborating with them to bring our hit, classic films to Filipino audiences,” said VP of Southeast Asia Distribution for Sony Pictures Television, Eugene Lin, in the same statement.

Among the movies available to watch are comedy films About Last Night and Cops and Robbersons, horror films 13 Ghosts and The Evil Dead, and Academy Award winner Shampoo. Other films on the slate include Cadillac Records, Excess Baggage, Jane Austen Book Club, and Funny Lady.

These movies are available in the Philippines only and can be accessed on the YouTube channels of ABS-CBN Entertainment, Cinemo, and iWantTFC.

Entertainment News (09/10/24)

FEU Drum and Bugle concert set for September

AFTER YEARS of performing primarily in outdoor settings, the Far Eastern University (FEU) Drum and Bugle Corps will be making a return to the historic Auditorium of FEU Manila in their upcoming concert entitled From the Field to the Concert Hall on Sept. 28, 6 p.m. The concert will showcase their talents in playing brass and percussion instruments together with the artistic color guard dance drills in a classical and modern repertoire, led by their artistic director Kevin Castelo. Tickets are priced at P100 for the FEU Community, P200 for guests, and P300 for VIP seating.

Paolo Sandejas releases alt-pop single

FILIPINO singer-songwriter Paolo Sandejas has dropped his new single “all the time,” out now via Sony Music Entertainment. Stepping up his craft with a more subdued but sophisticated sonic direction, Mr. Sandejas’ guitar-pop track tackles adolescent love and drama. “I was in a writing flow the day I penned the track and let it pretty much write itself,” he said in a statement. Written and produced by Mr. Sandejas with constant collaborator Xergio Ramos, “all the time” will be just one track in a full-length debut album to be released this year. It is out now on all digital music streaming platforms.

Puregold CinePanalo’s 8 full-length film entries

THE eight finalists of the Puregold CinePanalo Film Festival 2025 have been revealed. Each earned a P3-million production grant. They are: Co-love by Jill Singson Urdaneta; Fleeting by Catsi Catalan; Food Delivery by Baby Ruth Villarama; Journeyman by Christian Paolo Lat and Dominic Lat; Olsen’s Day by JP Habac; Perlas sa Silangan by TM Malones; Sepak Takraw by Mes De Guzman; and Tagsibol by Tara Illenberger. The festival’s second edition is set for March next year.

Chinese global superstar Xin Liu releases new EP

AWARD-WINNING Chinese pop sensation and fashion icon Xin Liu has dropped a new EP, O, Vol. 1, on all digital streaming platforms. It features five tracks, including previously released singles “Reality” and “Walls,” which she premiered live at Coachella during the 88RISING FUTURES showcase in April. The EP blends genres like electro-pop, hip-hop, R&B, and pop ballads. It is out now on all digital music streaming platforms.

K Brosas, Freddie Webb star in new TV5 series

ON SEPT. 30, the prequel to the hit show Niña and Niño, titled Ang Himala ni Niño, will premiere on TV5. The story of siblings Niña and Niño will take viewers back to Niño’s past as he recalls his first encounters with miracles in the quaint rural town of Bukang Liwayway. The cast includes Zion Cruz portraying the young Niño, while veteran actors Freddie Webb and K Brosas will be starring as Lolo Mars and Ate Gege, respectively. Ang Himala ni Niño is set to air Mondays to Fridays starting Sept. 30, at 11:15 a.m., on TV5.

SB19’s Josh Cullen releases debut solo album

JOSH CULLEN, a member of SB19, has released his debut solo album Lost & Found, under Sony Music Entertainment. The nine-track release is pulled from the P-Pop singer-songwriter’s past traumas in life and how he recovers in resilience and hope. “This album explores themes of pain and suffering, redemption, and the strength of human resilience, inspired by my inner truth,” Mr. Cullen said in a statement. It is streaming now on all digital music platforms.

Orange & Lemons marks 25 years with concert

FILIPINO pop-rock band Orange & Lemons are staging a one-night concert to commemorate the 25 years of their musical journey. The hitmakers behind the generation-defining anthems “Hanggang Kailan,” “Heaven Knows (This Angel Has Flown)” and “Just A Splendid Love Song” will perform their greatest hits in a three-hour concert at the Metrotent Convention Center in Pasig City on Oct. 18, from 7 p.m. onwards. Dubbed Now & Then: Orange & Lemons 25th Anniversary Concert, the special show will be their longest set yet. Clem Castro, the lead vocalist and guitarist, said in a statement: “For this concert, we want to bring to the big stage and perform live, if not all, a majority of songs from our past four albums. The albums that defined different eras of our career in the music industry from the beginnings — the shot to commercial success, the psychedelic, and the cultural eras. Expect us to perform and tell our story for over three hours!” The concert is produced by Orange & Lemons and Lilystars Records, in cooperation with GNN Entertainment Productions. Tickets, priced from P2,000 to P3,500, are available at https://orangeandlemons.helixpay.ph.

NAIA overhaul about to start

BW FILE PHOTO

SAN MIGUEL-LED New NAIA Infrastructure Corp. (NNIC) will take over the operations and maintenance of the Philippines’ main airport starting Sept. 14, kicking off modernization efforts that include road improvements, terminal expansion, and new parking facilities to improve passenger experience and airport capacity.

“In a few days, NAIA (Ninoy Aquino International Airport) operations will be turned over to us to manage. We can begin the work of modernizing our airport. We know this is a big responsibility and there will be challenges, but we are committed to delivering on our promise,” SMC President and Chief Executive Officer Ramon S. Ang said at the Economic Journalists Association of the Philippines Aviation forum on Monday.

The NNIC is composed of San Miguel Corp. (SMC), one of the Philippines’ largest and most diversified conglomerates; RMM Asian Logistics, Inc., a logistics company involved in infrastructure projects; RLW Aviation Development, Inc., a Filipino firm specializing in aviation development; and Incheon International Airport Corp., the operator of South Korea’s main international airport.

The Manila International Airport Authority (MIAA) will continue to serve as the airport’s regulator.

Upon takeover, the group will begin the rehabilitation, upgrade, and expansion of the airport, according to NNIC General Manager Angelito A. Alvarez.

The upgrade and expansion of NAIA will take time, Mr. Ang said, adding that the company is committed to delivering improvements within the first six months.

Mr. Alvarez outlined the group’s plan for NAIA which is divided into three main aspects: the initial work which will happen in a four-year period; mandatory works which will take place within five years; and Civil Aviation Authority of the Philippines (CAAP) works taking place within six years.

The initial work for NAIA includes rehabilitating and enhancing existing facilities, with projects such as road improvements, terminal expansion, and new parking facilities.

SMC previously said that it would be spending between P3 billion and P5 billion on the construction of a new off-ramp from the NAIA Expressway to Terminal 3, while also considering the implementation of curb pricing at the airport.

The mandatory works for NAIA, as outlined in its concession agreement, also include safety and security upgrades and the installation of new systems like pre-departure sequencing and a lightning warning system.

“In terms of CAAP work, over the next six years, we will upgrade CAAP systems,” Mr. Alvarez said.

The planned CAAP upgrade aims to enhance air traffic control facilities, communication, navigation surveillance, and air traffic management systems.

“We will also be investing in training and documentation support for the traffic controllers. This is one of the problems that the government is facing because our air traffic controllers are being pirated in other countries,” Mr. Alvarez said.

“We are eager to engage with NNIC and the government to address the potential adverse effects on travel demand and to ensure that the interests of both airlines and passengers are represented,” Air Carriers Association of the Philippines and Board of Airline Representatives said in a statement.

“I believe SMC has the competence and the capability to modernize NAIA and make it at par with other modern airports worldwide.  But that’s not easy and requires considerable investment over the medium and long term, which is a decision they have to make in time,” said Nigel Paul C. Villarete, senior adviser on public-private partnership (PPP) at the technical advisory group Libra Konsult, Inc.

For Rene S. Santiago, former president of the Transportation Science Society of the Philippines, SMC and its partners are expected to deliver on their commitments under the agreement with the government.

“However, I anticipate slow progress,” he added.

TRANSFERS, HIGHER FEES
SMC is also working on airline reassignment, which aims to improve passenger queues.

“We have engaged several consultants already for terminal reassignments. This is something that will surely happen,” Mr. Alvarez said.

He said the plan is to designate Terminal 1 for Philippine Airlines, Terminal 2 for domestic flights, Terminal 3 for all foreign airlines including Cebu Pacific and AirAsia Philippines’ international flights, and Terminal 4 for AirAsia Philippines’ domestic operations.

“We’re now currently in Terminal 3, that’s international. We will keep it. And then we are now currently in Terminal 2 for domestic, which we are moving to Terminal 4,” AirAsia Philippines President and Chief Executive Officer Ricardo P. Isla said.

Mr. Alvarez said the administrative order mandating the increase in passenger service change has been signed and will take a year to be fully effective.

He said the passenger service charge will be important to NNIC, as its 82.16% gross revenue share to the government excludes passenger service charge.

“These adjustments were determined by the government together with the Asian Development Bank and benchmarked against global standards. Long before the bidding for the NAIA PPP project even began, whoever won the bidding would have to implement this,” SMC’s Mr. Ang said.

To recall, the Department of Transportation said that the planned rate hike is within the approved parameters, terms, and conditions specified in the tender documents for the NAIA rehabilitation project.

Passenger service charges, also known as terminal fees, are imposed on departing passengers.

Currently, domestic travelers pay a passenger service charge of P200, while foreign travelers pay P550. These fees are expected to rise to P390 and P950, respectively.

Further, Transportation Secretary Jaime J. Bautista said previously that other planned increases will happen before yearend.

This means that landing and take-off fees levied on airlines will also increase by the end of the year.

Landing and take-off fees, on the other hand, are charges levied for airport facilities and services during aircraft landings and takeoffs. Both fees contribute to the total cost of airfares paid by passengers.

The upgrade of NAIA is expected to boost its capacity from the current 35 million passengers per annum to about 62 million passengers per annum.

For this year, Mr. Alvarez said the total passenger volume for NAIA is expected to be around 51 million for this year.

Data from CAB showed that air passenger volume increased by 25.6% to 29.52 million in the first semester from 23.5 million a year ago. Of this, 15.77 million were domestic passengers, while 13.75 were international passengers.

“Well, in terms of the 7.7 million tourist arrivals, as you know at the moment, there are quite a number of headwinds that we are experiencing,” Tourism Undersecretary Verna C. Buensuceso said.

She said the government is still hoping to achieve 7.7 million international visitors within the year despite headwinds like geopolitical tensions between countries through the modernization of the country’s main airport.

The government anticipates earning P900 billion from the NAIA landmark project, equating to P36 billion per year. This figure is 20 times larger than the P1.17 billion annually remitted by the MIAA over the 13 years through 2023, according to the Transportation department. — Ashley Erika O. Jose

TIFF 2024: Harbin brings out fans of Korean stars in Toronto

IMDB
IMDB

TORONTO — Scores of movie fans waited for hours outside the Toronto premier of Harbin on Sunday, hoping to catch a glimpse of Lee Dong-Wook and Hyun Bin, the Korean stars paired for the first time in this historical drama.

Their patience was rewarded with red carpet appearances by both actors, who are identified with the surge in popularity of Korean culture around the world.

“It is my first time here, and I am so thankful and so happy to see my fans here,” Mr. Lee said. It is also the first TIFF screening of a movie featuring the actor, who is perhaps best known for his breakout drama hit My Girl.

Harbin is about the small but courageous resistance army which fought to free Korea from Japanese oppressive rule in the early 20th century. The struggle brings the freedom fighters to the city of Harbin in China’s frozen northeast, where they carry out a plan to assassinate Japan’s first prime minister.

Harbin is directed by Woo Min-ho, whose credits include The Man Standing Next, South Korea’s entry for Best International Feature Film at the 2021 Academy Awards. — Reuters

Meralco seeks to proceed with Atimonan power project

BW FILE PHOTO

MERALCO PowerGen Corp. (MGen) is seeking certification from the Department of Energy (DoE) to confirm that its Atimonan power project is exempt from the 2020 coal moratorium, allowing it to proceed with its proposed 1,200-megawatt (MW) coal-fired power plant.

“[The] project is on the committed list, so it’s outside of the moratorium. We’re trying to get a DoE certification to confirm… [and] to start discussions on the SIS (system impact study) and to look for an engineering study,” MGen President and Chief Executive Officer Emmanuel V. Rubio told reporters last week.

Atimonan One Energy, Inc. (A1E), a subsidiary of MGen, initially proposed to develop a 1,200-MW ultra-supercritical coal-fired power plant for the project site under the environmental compliance certificate issued in 2015.

The company previously dropped its plan and decided to repurpose the coal-fired power project to one that runs on gas.

Based on a project description document submitted to the Department of Environment and Natural Resources, A1E proposed to develop instead a 2,400-MW natural gas-fired combined cycle gas turbine and a liquefied natural gas terminal with floating storage unit.

Manila Electric Co. (Meralco) Chairman and Chief Executive Officer Manuel V. Pang-ilinan said that the project is currently “licensed, permitted, authorized to do a coal plant.”

“We don’t know yet whether we stay with coal or we switch it to natural gas,” Mr. Pangilinan said. “The inclination is to stay with coal. Because if it’s gas, we have to put up the terminal, the re-gas facility.”

In 2020, the DoE issued a moratorium on the development of new coal-fired power plants.

The government agency earlier clarified that the moratorium does not cover existing and operational coal-fired power generation facilities as well as any coal-fired power projects considered committed power projects.

Following a thorough review and verification by the Power Bureau, the DoE issues at the request of a project proponent a certification that a project is not covered by the moratorium.

Several proponents of coal-fired power projects have requested the DoE’s confirmation on non-coverage, and these were “ministerially issued” after verification, the DoE said.

“We believe that the project is part of the active project list as a coal plant. We just want to make sure that since there have been revisions in the past,” Mr. Rubio said in a Viber message.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

TIFF 2024: The Wild Robot depicts technology and nature coexisting

TORONTO — The Wild Robot, an animated science fiction story by DreamWorks, explores both the good and the bad sides of technology, its star Lupita Nyong’o said on Sunday at the feature’s world premiere in Toronto.

Adapted from Peter Brown’s series of books by the same name, the movie follows a shipwrecked robot that must adapt to survive after being stranded on a remote, uninhabited island.

“This movie explores both the sinister side of technology and the potential for technology to be on our side,” Ms. Nyong’o, the voice of the protagonist Roz, said on the red carpet at the Toronto International Film Festival screening.

Director Chris Sanders, who also wrote the screenplay, said that portraying technology was a key creative challenge, especially considering Brown’s books were written long before artificial intelligence became a dominant conversation.

“We’ll find a balance. I think any kind of new, emerging technology is at first very exciting. It can be a little bit frightening, but we will eventually figure it out,” said Mr. Sanders, whose directorial credits include Lilo & Stitch and How to Train Your Dragon in 2010.

An ensemble cast, including Pedro Pascal, Catherine O’Hara, Bill Nighy, and Kit Connor, give voice to the animals that Roz encounters on the island.

Ms. Nyong’o’s robot character learns to communicate with the animals and uses kindness as a tool for survival.

“The message at the heart of the story is that kindness is a superpower,” said Ms. Nyong’o, who this year also starred in A Quiet Place: Day One, an apocalyptic horror movie.

“Roz is a robot that never loses sight of her essence, which is to be of help to anybody. She’s still able to adapt and become more than what she was programmed to be.”

Mr. Sanders also mentioned that Brown’s focus on kindness wasn’t explicitly stated in the book but became a crucial element he wanted to “memorialize” on screen.

The film lands in theaters on Sept. 27. It will open on Oct. 9 in the Philippines. — Reuters

Del Monte Pacific sees US gains by 2026

LISTED Del Monte Pacific Ltd. (DMPL) expects its United States operations to improve in the next two years, its chief financial officer said.

The improvements and profitability of the company’s US operations, led by Del Monte Foods, Inc. (DMFI), are anticipated by fiscal year 2026, DMPL Chief Financial Officer Parag Sachdeva said during the company’s annual general meeting in Singapore on Aug. 30. The minutes of the meeting were disclosed to the local bourse on Monday.

He said the local unit, Del Monte Philippines, Inc. (DMPI), is expected to achieve double-digit growth for fiscal year 2025.

Despite the positive outlook, Mr. Sachdeva said that DMPL is expecting a net loss for fiscal year 2025 due to “high inventory levels and wastage-related costs.”

He also said that the company is already addressing these costs to improve profitability.

In July, DMPL said that it was focusing on selectively selling assets, injecting equity through partnerships, rightsizing its workforce, and reducing fixed costs to achieve a “reduced” net loss in 2025.

The company formed a task force to improve gross margins and cut costs, particularly in the US and across DMPL, starting in the second half of fiscal year 2025.

Some of DMPL’s cost-cutting initiatives include lowering inventory, minimizing waste and write-offs, cutting warehousing and distribution costs, consolidating manufacturing operations, enhancing planning through digitization, ensuring clear organizational accountability, and improving productivity for processed pineapple variety C74 over the next 12 to 24 months.

For the fiscal year ending April 2024, DMPL saw a $127.3-million net loss from a $16.9-million net income the previous year.

The company recorded a 30.4% decline in gross profit to $422.2 million due to inventory-related costs in its US operations and reduced pineapple supply in Asia.

DMPL has business interests in growing, processing, and selling packaged fruits, vegetables, and tomatoes, fresh pineapples, sauces, condiments, pasta, broth, and juices.

On Monday, DMPL stocks rose by 0.49% or two centavos to P4.12 per share. — Revin Mikhael D. Ochave

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