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Universal healthcare is zero balance billing

X.COM/WHOPHILIPPINES

During his fourth State of the Nation Address on July 28, President Ferdinand Marcos, Jr. announced the implementation of the zero balance billing policy or what he calls the “Bayad Na Bill Mo” program (“Your bill has been paid” program).” According to Health Secretary Teodoro Herbosa, the program requires no additional documents or interviews, and all costs, including medicines and professional fees, are fully covered.

However, The “Bayad Na Bill Mo” program only applies to basic or ward accommodation in the 87 Department of Health (DoH) hospitals nationwide. A patient who opts to be transferred to a private room in a DoH hospital is not entitled to zero balance billing. Neither is a patient confined in the ward of a private hospital.

That is what universal healthcare is supposed to be: zero balance billing. To me, a clearer description of universal healthcare is “no medical billing program.” That is what universal healthcare is in the United Kingdom, and in many European countries. Healthcare is provided by government-owned hospitals and by doctors and other healthcare professionals employed by the government.

But as I had written here before, universal healthcare in the Philippines is still years away. That is because there are only about 27,019 beds in the 87 DoH hospitals. And that number includes beds in semi-private and private rooms, although they account for a fraction of the total.

Per World Health Organization (WHO) recommendation, there should be 20 hospital beds per 10,000 population. The country’s population in 2019 when universal healthcare was implemented was 110 million. That means there should have been 220,000 hospital beds in 2019. The DoH’s Philippine Health Facility Development Plan places the number of beds in 2020 at approximately 105,000, half of what the WHO says is the ideal ratio.

The WHO had advised our legislators to institute universal healthcare fully in 2030 when the country’s health delivery system — hospitals and primary care clinics — would be capable of servicing it. But the members of the 17th Congress, many of whom were running for re-election, rushed the enactment of a law adopting universal healthcare, RA 11223, so that they could present it in the elections of 2019 as their gift to the Filipino people.

The law mandated that all Filipino citizens be enrolled in the Philippine Health Insurance Corp., better known as PhilHealth. That was the monumental flaw of the law. PhilHealth is not a healthcare provider. It is a health financing agency. And it is not managed and staffed by health financing professionals. Ironically, Senator JV Ejercito, the principal author of the law, failed to be re-elected.

As the WHO feared, the country’s health system was far from being capable of servicing universal healthcare in 2019. The United Kingdom owns the hospitals and employs the healthcare workers that service all its citizens. While the Philippine government also owns hospitals and employs healthcare workers, their number falls way short of those required to provide the health services needed by the 110 million Filipinos.

The insufficiency of public hospital beds is unspeakable. In many parts of the country, farm workers, market vendors, food stall operators, tricycle/jeepney drivers, and retail store attendants who fall ill do not get the proper medical attention due mainly to the inaccessibility of a healthcare facility, not even a primary care clinic.

The problem with our universal healthcare or zero balance billing program is the acute shortage of beds in wards of DoH hospitals. The accompanying table shows the pathetic situation with regard to DoH managed hospitals.

A 108% occupancy rate means there are more inpatients in the hospital than there are beds available. That is in the National Capital Region or Metro Manila where there are several DoH-administered hospitals. In the Bicol, Central Visayas, Eastern Visayas, and Northern Mindanao regions, the occupancy rates are almost double. That means two inpatients share a bed or many inpatients are made to lie on benches in waiting areas, some are treated on visitors’ chairs.

While the President announced the zero balance billing policy will eventually be implemented in the four specialty hospitals — the National Kidney and Transplant Institute, the Philippine Heart Center, the Lung Center of the Philippines, and the Philippine Children’s Medical Center — and the Philippine General Hospital (PGH), which is administered and operated by the University of the Philippines (UP) as the training hospital for the students of its College of Medicine, it is high time the government provided the folks in the countryside healthcare by building more hospitals that provide a range of medical services, from basic to specialized, in underserved regions.

JV Ejercito, who was elected to the Senate again in 2022, recently called for the passage of a measure seeking to provide an additional P74.4-billion subsidy for PhilHealth in order to sustain the zero-balance billing program of the Universal Health Care (UHC) law. He just doesn’t get what universal healthcare means.

President Marcos did say that five DoH hospitals will soon be operational. He did not indicate where the five new hospitals are. Other than the University of the Philippines, two state universities with medical schools have their own teaching hospitals — the West Visayas State University and Bicol University. As in UP’s PGH, the zero balance billing policy should also be implemented in these two teaching hospitals in acutely underserved regions.

There are four other state universities offering a doctor of medicine program — Mariano Marcos State University, Cagayan State University, the University of Northern Philippines, and the Mindanao State University. They do not have their own dedicated teaching hospitals but have plans to build their own. The President should press for the erection of those hospitals so that they can be venues for the zero balance billing program or universal healthcare.

There are about 630 hospitals owned and administered by local government units. President Marcos should recommend or mandate the implementation of the zero balance billing program in these hospitals.

Last week the President said the program is “proceeding well.” At least 14,000 patients in two DoH hospitals have benefited so far from the program since its launch on May 14. Among the beneficiaries of the program was a 48-year-old who was admitted at the Eastern Visayas Medical Center after his lungs, diaphragm, and colon were punctured in a stabbing incident. His hospital bill, professional fees, and cost of medicines, and supplies reached P447,923.93, PhilHealth paid the bill. There was no balance because he stayed in the ward of the hospital.

What the total bill was for each of the 14,000 patients who benefited from the “Bayad Na Bill Mo” program should be the basis of PhilHealth’s packages of benefits for similar diagnoses and treatment of patients confined in private hospitals.

At present, PhilHealth’s packages of benefits are expanded without regard to inflation by the executive vice-president and chief operating officer, a lawyer. In January this year, PhilHealth implemented arbitrarily a 50% increase in case rates for nearly 9,000 medical and surgical cases, effectively doubling older rates that had been stagnant since 2014

 

Oscar P. Lagman, Jr. is a retired corporate executive, management professor, and business consultant. He had extensive exposure to the healthcare field in each of those three capacities.

ERC directs Meralco, First Gen to justify proposed supply deal extension

A Meralco worker examines a transformer in Navotas City. — PHILIPPINE STAR/RYAN BALDEMOR

THE Energy Regulatory Commission (ERC) has asked First Gen Corp. and Manila Electric Co. (Meralco) to justify their proposed extension of a power purchase agreement (PPA) for supply from a Batangas gas-fired power plant.

In an order dated Aug. 22, the ERC directed the companies to submit an explanation on “whether the extension of contract will not result in an excess contracted capacity as well as a simulation on the impact thereof on the generation charge.”

The order was issued in response to the joint motion filed by First Gas Power Corp. (FGPC), a subsidiary of First Gen, and Meralco on Aug. 22 seeking approval of an interim PPA extension.

The companies are also asking the regulator to allow the recovery from customers and Meralco’s payment to FGPC of “attendant costs during implementation of the interim extension.”

The ERC further directed FGPC and Meralco to explain how they intend to utilize or dispatch their existing contracted plants.

Previously, FGPC submitted a letter to the ERC seeking a PPA extension to continue supplying electricity to Meralco from the 1,100-megawatt (MW) Sta. Rita gas plant in Batangas for up to 15 years.

The contract for the facility is set to expire at the end of the month. The plant, which began full commercial operations on Aug. 17, 2000, has been supplying electricity to Meralco under a 25-year PPA.

First Gen President and Chief Operating Officer Francis Giles B. Puno said the company might need to consider ways to reduce operational costs, including “potentially temporary mothballing or shutting down the facility for a prolonged period,” if the contract is not extended.

“Can the grid live without 1,100 MW of reliable, efficient gas-fired capacity in the future? My position is it cannot,” Mr. Puno said in an earlier interview.

First Gen owns and operates four gas-fired power plants with a combined capacity of 2,017 MW.

At present, its total capacity across geothermal, wind, hydro, solar, and natural gas-fired plants stands at 3,668 MW. — Sheldeen Joy Talavera

Hollywood’s biggest AI debut? Las Vegas Sphere’s Wizard of Oz

THESPHERE.COM

LAS VEGAS — When The Wizard of Oz at Sphere opens off the Las Vegas Strip on Aug. 28, audiences will experience the 1939 film classic in a way its creators probably never thought possible.

Thousands of people will find themselves in the eye of the swirling tornado that rips Dorothy’s Kansas farmhouse off its moorings and hurtles it onto Munchkinland. The film has been enhanced to fill a 160,000-square-foot wall of LED panels that spans three football fields, encircling the audience and reaching 22 stories high, as 750-horsepower fans kick up wind and debris to simulate the twister.

The $104 or more per seat spectacle is more than meets the eye. The Wizard of Oz marks one of the most significant partnerships between a studio and technology company to use artificial intelligence (AI) to forge a new media experience.

Reuters spoke with nine people, including principals directly involved in the project and senior entertainment industry experts, who told the story behind a project that some industry veterans see as a potential watershed moment in Hollywood’s use of AI tools.

“It definitely represents a really meaningful milestone in AI-human creative collaboration,” said Thao Nguyen, immersive arts and emerging technologies agent at CAA. “I think it will set a precedent on how we reimagine culturally significant media.”

Bringing Dorothy and the Wicked Witch to the massive Sphere, a globe-shaped entertainment venue featuring advanced technology, took two years and brought together its creative team, Warner Bros. Discovery executives, Google’s DeepMind researchers, academics, visual effects artists — more than 2,000 people, in all.

The development occurred during intense apprehension over AI’s impact on jobs in Hollywood and the desire to preserve human creativity. Some visual effects companies initially contacted to work on the project declined because they were not permitted to work with AI at the time.

‘YOU’RE TOAST!’
Getting here took the blessing of Warner Bros. Discovery Chief Executive Officer (CEO) David Zaslav, his studio chiefs and lawyers who established guidelines for using AI. The Wizard of Oz at Sphere drew upon archival materials from the film — including set blueprints, shot lists, publicity stills, and film artifacts — as well as some 60 research papers to help deliver the movie in resolution representing a ten-fold improvement over previous work.

“We had to reimagine the cinematography, we had to reimagine the editing, and we had to do all of this without changing the experience,” said Oscar-winner Ben Grossmann, who oversaw the project’s visual effects. “Because if you touch anything about this sacred piece of cinema, you’re toast!”

Rather than exploiting AI to cut jobs, they sought to use it to breathe fresh life into a classic story and create new experiences with existing intellectual property.

“Hollywood embraces new technology, and everyone can’t wait to be the second one to use it,” said Buzz Hays, a veteran film producer who leads Google Cloud’s entertainment industry solutions group. “What The Wizard of Oz is doing for us is giving that first opportunity where people go, ‘Oh my god, this is not at all what I thought AI was going to be.’”

The project began in 2023 with Sphere executives discussing which project would push the technological boundaries of the venue that had already hosted U2 and Darren Aronofsky’s Postcard from Earth.

The Wizard of Oz quickly topped the list as a familiar, beloved film well-suited for the Sphere’s enormous canvas, said Carolyn Blackwood, head of Sphere Studios. It presented an opportunity to re-introduce the classic to a new generation in a way that would place them inside L. Frank Baum’s world.

Symbolically, the team chose a classic film that was a technical marvel of its time. While not the first movie to use Technicolor, The Wizard of Oz’s dramatic transition from sepia tones to hyper-saturated color marked a cinematic milestone.

Sphere Entertainment’s CEO James Dolan and creative collaborator Jane Rosenthal, Tribeca Film Festival co-founder and noted film producer, envisioned a more ambitious project than a mere digital remastering of a classic. Ms. Rosenthal tapped Mr. Hays to bring in Google as a technical partner.

AI ‘QUARANTINE ZONE’
Mr. Dolan approached Warner Bros. Discovery CEO Zaslav, a friend and business partner from the early days of cable TV, to propose bringing Oz to the Sphere. “I had just been to the Sphere with a friend and was really blown away,” said Mr. Zaslav, adding that Mr. Dolan and Ms. Rosenthal also won over his studio chiefs, “who loved the idea. It’s an example of the great IP we own at Warner Bros.”

Before turning over one of the world’s most important entertainment properties, Warner Bros. set strict ground rules. Google could train its generative AI models on each major actor to reproduce their performances, but the data would remain the studio’s property. None of the Oz training data would be incorporated into Google’s public AI models.

“One of the things critical to getting this project started was creating a safe place for experimentation,” said Mr. Grossmann. “Warner Brothers and Google and the Sphere created an environment where they said, ‘We don’t necessarily know how it’s going to end, but we’re going to create a little quarantine zone here.’”

The visual effects team initially tried enlarging images using CGI, which would have created photorealistic animated versions of the characters. That approach was rejected because it would violate the integrity of the original performances.

“AI was effectively a last resort, because we couldn’t really do it any other way,” said Mr. Grossmann, whose Los Angeles studio, Magnopus, worked on such photo-realistic computer animated films as Disney’s The Lion King.

AI enhanced the resolution of tiny celluloid frames from 1939 to ultra-high-definition images. It restored details — like freckles on Dorothy’s face or burlap texture on Scarecrow’s face — obscured by Technicolor’s process. AI also helped “outpaint” on-screen images to fill gaps created by camera cuts or framing, as when it took a close-up of the Tin Man chopping a door of the Witch’s castle with an axe to free Dorothy and completed the image of the woodman.

It took months of repeated fine-tuning and Google’s DeepMind braintrust to elevate consumer-grade AI tools to deliver crisp images with the Sphere’s 16K “super” resolution.

Musicians re-recorded the entire film score on the original sound stage to take advantage of the venue’s 167,000 speakers. The vocal performances of Judy Garland and other actors remain unaltered.

FLYING MONKEYS
Despite attention to authenticity, the project has attracted criticism from some cinephiles who object to altering the cherished film. Entertainment writer Joshua Rivera called it “an affront to art and nature.”

“None of these people criticizing this have seen the film or understand what we are doing,” said Ms. Rosenthal.

In a private midnight screening for Reuters, Mr. Grossmann offered a glimpse of what’s to come.

Some changes are subtle, as when Uncle Henry stands by the front door while neighbor Almira Gulch demands Toto. AI places the performer, who spends much of his time out of view, back into frame, stitching together a wider view to fill the Sphere’s expansive viewing plane.

Other changes aim to realize the filmmakers’ vision in ways that weren’t technically feasible 86 years ago. As Dorothy and friends encounter the Wizard in the Emerald Throne Room, a 200-foot-high green head looms over the audience, eyes bulging and voice booming, creating a more imposing depiction than the original image of an actor in green makeup projected on smoke.

“Whenever we made a change, it was because we wanted the audience to experience what Dorothy was experiencing directly,” said Mr. Grossmann. “We completed something filmmakers were intending to do but were limited by 1939’s tools.”

Coordinated physical effects add another dimension. Flying monkeys will swoop into the Sphere as 16-foot-long helium-filled simians steered by drone operators, one of many Four-D effects.

The result is an amalgam of cinema, live production, and experiential VR. “I think that’s going to change the way people think about entertainment and experience,” Mr. Grossmann said. — Reuters

Luxury hospitality seen as growth niche for Philippine developers

STOCK PHOTO | Image by Brian Zajac from Unsplash

By Beatriz Marie D. Cruz, Reporter

PROPERTY CONSULTANTS said residential oversupply could push more Philippine developers to pursue luxury hospitality projects.

“With over 7,000 islands, it has all the ingredients, but it seems that Philippine hotel developers are conservative,” Bill Barnett, founder and managing director of Thailand-based hospitality consulting group C9 Hotelworks, said in an interview with BusinessWorld.

Mr. Barnett, who has served as a consultant for various hotel and residential developments across the Asia-Pacific, said many of the Philippines’ hotels and resorts are “family-run, so they tend to look at the industry and do what their friends do.”

“If somebody does one thing, they all do it,” he added.

Mr. Barnett also noted that some hospitality developers tend to be “commodity minded.”

“Meaning, they think more is better. More rooms, more things… You can’t commoditize luxury because somebody else can come in and lower their prices,” he added.

He also noted the oversupply of condominium units in Metro Manila would prompt developers to shift to the luxury segment.

“I think, now with real estate being overbuilt, Philippine developers will have to find a niche,” he said. “The real estate situation in the country triggers more luxury…because of the oversupply.”

For a luxury hospitality development to be attractive, Mr. Barnett said it is important to have easy access to its location.

“You can’t stay there if you can’t get there,” he said. “There should be enough flights which make it attractive, not only for guests, but to transport staff, and even goods and services.”

He also noted that luxury hospitality properties must have a unique selling point, with many travelers seeking localized experiences. Mr. Barnett also cited the importance of unique food & beverage concepts, strong internet connectivity, and exclusivity of location.

Alfred Lay, director for hotels, tourism, and leisure at Leechiu Property Consultants, said there are over 35 luxury hotel projects ongoing in the Philippines, accounting for over 7,500 hotel rooms over the next four years.

“If you include projects which have yet to be announced, then the number climbs to 50 luxury hotels and adding over 10,000 high end room keys,” he said in a Viber message.

However, air access remains a key roadblock in making the Philippines a fully realized luxury destination, Mr. Lay said.

“If you’re a high-spend international traveler, you don’t want connecting flights just to get to your resort — you want to land straight into places like El Nido or Siargao. Where we’ve got international airports near tourist hubs, you’ll notice the luxury hotels follow, such as Mactan, Panglao Island, Boracay,” he added.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said luxury hotels are expected to perform well amid high occupancy rates and the entry of foreign hospitality brands into the country.

“Even if foreign arrivals to the Philippines dropped marginally in the first five months of 2025, there’s still a healthy level of occupancy, especially in Metro Manila hotels,” he said via telephone.

In the first half of the year, five-star hotel occupancies remained steady at 67% from the same period in 2024. This comes as foreign arrivals in the Philippines remain below pre-pandemic levels at 2.54 million as of end-May.

However, Colliers noted that the Philippines has a 4% penetration rate of branded hotels, way behind Singapore (45%), Indonesia (10%), and Thailand (8%).

“I think it will take a few more years for the Philippines to be at par with Thailand, Singapore, of course, Indonesia, especially if you look at our recovery rate pre-pandemic,” he said.

Energy transition leading to higher inflation and lower growth

The other week, on Aug. 14, I attended the AmCham 8th Energy Forum held at Marriott Hotel Manila and energy transition dominated the discussion. Last week, on Aug. 21, I was one of session speakers in the Philippine Chamber of Commerce and Industry-Indonesian Chamber of Commerce and Industry (PCCI-KADIN) Business Forum, held at the PCCI HQ in Taguig City, I and my co-speaker, Iman Arif, talked about the beauty of coal energy.

These terms — energy transition (from fossil fuels to intermittent renewables), net zero, and decarbonization — are for me economically irrational. The real energy transition we should work for is from unstable, blackout-friendly, and expensive energy to abundant, stable, cheap energy in order to achieve lower inflation and higher growth. Below are the numbers.

First, I added the total generation of wind plus solar (W+S) in 2014 and 2024, then computed the share of W+S over total generation, the (W+S)/T ratio. Then I got the average inflation rate and average GDP growth that touched those periods, 2009-2018 and 2019-2024.

The results are clear: countries with a (W+S)/T ratio of 20% and up have all seen rising inflation over those two periods, especially the Netherlands, Germany, the United Kingdom, Belgium, Poland, Sweden, Austria, Australia, and Chile. Even countries with medium (W+S)/T ratio of 9-16% also experienced rising inflation, like Canada and the USA.

Many of these countries also experienced low or declining GDP growth, especially Germany, the UK, Austria, Argentina, and Mexico. And two countries have had an ugly trend of declining total power generation as they add more W+S in their grid — Germany and the UK (see Table 1).

In contrast, in many Asian nations that have low (W+S)/T ratios of between 0.4% to 18%, their inflation rate is declining, especially China, India, Vietnam, Malaysia, and Indonesia. And their average GDP growth is high, 3% and above, except Japan and Thailand.

Even Russia, with its continuing war in Ukraine, has experienced declining inflation and rising growth (see Table 2).

The Philippines is lucky to have a (W+S)/T ratio of only 3.9% and we should not aspire to raise it to 5% or higher. Rather, we should aspire to expand our total power generation. We generated only 130 terawatt-hours (TWh) in 2024, less than Malaysia and Thailand, less than half of Vietnam and Indonesia. Many big manufacturing companies will be scared to come and invest here because of the perennial yellow-red alerts and insufficient power supply.

Our electricity prices are higher than those of many of our ASEAN neighbors because they subsidize their energy while the Philippines taxes energy; and their power supply per capita is higher than ours, especially Malaysia, Singapore, Thailand, and Vietnam.

Currently, on-grid customers subsidize the customers in off-grid islands and provinces via a universal charge for missionary electrification (UC-ME) of P0.195 per kilowatt-hour (kWh). Then, all consumers subsidize intermittent renewables like W+S via the Feed-in Tariff Allowance (FIT-All) at P0.119/kWh.

At the AmCham energy forum, many speakers from the energy players talked about energy transition, net zero, and Green Energy Auction (GEA). As shown in the tables above, the actual and non-hypothetical numbers show that inflation rises as more renewables are added. It seems that some private energy players are praying for expensive electricity and higher inflation, so long as their businesses have assured high profits.

This will come in the form of a future GEA Allowance (GEA-All) tacked onto our monthly electricity bill, on top of FIT-All and UC-ME. This future GEA-All will be large — twice or four times the FIT-All — because of the huge solar and wind capacities that have been granted or will soon be granted with assured high prices.

The economic team, concerned with high inflation and its dampening effect on consumer spending and overall GDP growth, should warn the energy sector of the future economic sabotage of these ongoing moves.

We should have an agnostic energy policy that focuses on developing an abundant energy supply. I applaud the three energy players which have a large number of thermal plants that balance their renewables portfolio — Aboitiz Power, Meralco Power Gen (MGEN), and San Miguel Global Power. As MGEN President and CEO Manny Rubio often argued in various energy fora that I attended: “Energy Transition means people should benefit from the energy shift, reliability must remain the foundation — power has to be consistent and affordable.”

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Villar-led retail firms report weaker second quarter

BW FILE PHOTO

VILLAR-LED retail firms posted weaker second-quarter results due to slower sales amid a subdued property market and heightened competition.

Home improvement retailer AllHome Corp. saw a 49.5% drop in April-to-June net profit to P71.76 million from P142.08 million a year earlier, the company said in a regulatory filing.

Sales fell by 22.1% to P2.23 billion from P2.86 billion the previous year, while the cost of merchandise sold also decreased by 22.2% to P1.38 billion.

First-half net income declined by 59.7% to P113.9 million from P282.43 million in the same period last year.

Sales for the January-to-June period dropped by 28.9% to P4 billion, while the cost of merchandise sold fell by 29% to P2.48 billion due to lower sales.

“The decline was chiefly attributable to a subdued property market, which has historically been a significant driver of construction and furnishing-related expenditure,” AllHome said.

Meanwhile, AllDay Marts, Inc., operator of AllDay Supermarkets, posted an 80% decline in second-quarter net profit to P18.01 million from P88.13 million a year earlier, the company said in a separate stock exchange disclosure.

Net sales fell by 40.3% to P1.4 billion from P2.47 billion last year, while the cost of merchandise sold likewise dropped by 40.3% to P1.17 billion.

For the first half, AllDay recorded an 83.2% decrease in net income to P31.1 million from P185.13 million in the same period last year.

Net sales declined by 41.7% to P2.88 billion, while the cost of merchandise sold fell by 41.7% to P2.28 billion due to weaker sales.

“Sales decline due to heightened competition, shifting consumer preferences, and the continued rise in e-commerce, resulting in reduced in-store traffic,” AllDay said.

On Friday, AllHome shares rose by 3.26% or P0.015 to P0.475 apiece, while AllDay shares slipped by 1.15% or P0.001 to P0.086 each. — Revin Mikhael D. Ochave

Spotify flags price rises as it introduces new services, FT reports

SPOTIFY will raise prices as it invests in new features and targets 1 billion users, the Financial Times (FT) reported on Sunday, citing the music streaming provider’s Co-President and Chief Business Officer Alex Norstrom.

The increases would be accompanied by planned new services and features, the FT cited Norstrom as saying in an interview.

Spotify did not immediately respond to a Reuters request for comment.

Earlier in August, the Swedish firm said it would increase the monthly price of its premium individual subscription in some markets from September, as it looks to improve profit margins.

It said the price will rise to €11.99 ($14.05) from €10.99 in markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norstrom told the newspaper.

Price increases combined with cost-cutting efforts in recent years helped Spotify achieve its first annual profit last year. — Reuters

T-bill, bond yields may decline with BSP expected to cut rates

BW FILE PHOTO

YIELDS on the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be offered this week could mostly go down ahead of an expected rate cut by the Bangko Sentral ng Pilipinas (BSP) on Thursday.

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Tuesday, or P8 billion in 91-day and 182-day securities and P9 billion in 364-day papers.

On Wednesday, the government is looking to borrow a combined P35 billion via a dual-tranche offering of reissued T-bonds — P10 billion from seven-year papers with a remaining life of two years and seven months, and P25 billion through 25-year notes with a remaining life of 24 years and five months.

This week’s auctions were moved from the usual Monday and Tuesday schedules due to a holiday.

The T-bills and T-bonds on offer could fetch rates in line with comparable secondary market levels, which mostly declined week on week on expectations that the Monetary Board will cut benchmark borrowing costs at its Aug. 28 review, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A trader said in an e-mail that the reissued seven-year bonds could fetch rates ranging from 5.75% to 5.8%, while the 25-year bonds could be quoted between 6.45% and 6.55%, with the auction expected to attract “decent demand.”

“We expect two-way interest in the next few days heading to the Monetary Board meeting, where a cut is already priced in,” the trader said.

At the secondary market on Friday, yields on the 91-, 182-, and 364- day T-bills dropped by 3.43 basis points (bps), 2.36 bps, and 6.07 bps week on week at 5.2578%, 5.483%, and 5.5985%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Aug. 22 published on the Philippine Dealing System’s website.

The rate of the 25-year bond likewise eased by 6.61 bps week on week to end at 6.3509% on Friday and the seven-year bond inched down by 0.33 bp to yield 5.9221%.

Meanwhile, the three-year paper, the tenor closest to the remaining life of the reissued seven-year T-bonds on offer on Wednesday, edged up by 0.58 bp to fetch 5.7419%.

All 20 analysts in a BusinessWorld poll expect the Monetary Board to reduce the target reverse repurchase rate by 25 bps to 5% at its meeting on Thursday from the current 5.25%.

This would mark the BSP’s third consecutive 25-bp cut since April.

The central bank has lowered benchmark interest rates by a total of 125 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. earlier said a cut is “quite likely” at this week’s meeting and another reduction is also on the table for the remainder of the year.

Last week, the BTr raised P25 billion as planned from the T-bills it auctioned off as the offer was more than four times oversubscribed, with total bids reaching P113.751 billion.

Broken down, the Treasury borrowed P8 billion as planned via the 91-day T-bills as total tenders for the tenor reached P36.58 billion. The three-month paper was quoted at an average rate of 5.234%, down by 5.3 bps from the rate seen in the previous auction. Yields accepted ranged from 5.21% to 5.26%.

The government likewise raised P8 billion as programmed from the 182-day securities as tenders amounted to P40.662 billion. The average rate of the six-month T-bill was at 5.435%, declining by 7.1 bps from the previous week, with accepted yields ranging from 5.433% to 5.438%.

Lastly, the Treasury sold the planned P9 billion in 364-day debt as demand for the tenor totaled P36.509 billion. The average rate of the one-year T-bill dropped by 4.8 bps to 5.564%. Tenders accepted carried rates ranging from 5.55% to 5.572%.

Meanwhile, the BTr last offered the reissued seven-year bonds to be auctioned off this week on July 22, raising P20 billion as planned at an average rate of 5.817%.

On the other hand, the 25-year notes were last sold on June 25, where the government raised just P15.076 billion via the papers, below the P20-billion offer. The bonds fetched an average rate of 6.649%.

The BTr is looking to raise P185 billion from the domestic market this month, or P125 billion through T-bills and P60 billion via T-bonds. This week’s auctions are the last ones for August.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.56 trillion or 5.5% of gross domestic product this year. — A.M.C. Sy

Avida says 93% of Serin East Tagaytay units sold

SERIN EAST TAGAYTAY Ground Amenity Area — AVIDALAND.COM

AVIDA LAND Corp., the mid-income residential brand of property giant Ayala Land, Inc. (ALI), said it has sold 93% of the units in Serin East Tagaytay.

Located at Silang Junction North in Tagaytay City, Serin East Tagaytay is a townhouse development that offers countryside living with amenities designed for a vacation-like lifestyle. Its fourth tower is slated for completion in the first quarter of 2026.

“Designed as an ideal second home, Serin Terraces Tagaytay offers the perfect blend of serene countryside living and intuitive amenity features tailored for a relaxing, vacation-like lifestyle,” Avida Land said in a statement.

“The community provides residents with easy connectivity to essential commercial hubs, educational institutions, and popular tourist destinations, making it a home for those seeking both tranquility and convenience, while capitalizing on Tagaytay’s investment potential as a premier leisure and residential destination,” it added.

The development is near Ayala Malls Serin, People’s Park in the Sky, Our Lady of Lourdes Church, and Tagaytay Medical Center. It is also a few minutes from the Tagaytay-Nasugbu Highway.

For Tower 4, Serin East Tagaytay offers a 23-square-meter (sq.m.) studio unit and a 31-sq.m. exclusive studio unit.

A one-bedroom unit with a balcony measures 47 sq.m., while two-bedroom units with a balcony measure 68 sq.m.

Key amenities include a ground-level amenity area, a podium amenity area, a game room, a clubhouse with function rooms, and an indoor gym.

Avida Land earlier said it plans to build more residential developments outside Metro Manila amid stronger take-ups.

For the first half, ALI posted an 8% increase in net income to P14.2 billion. Its property development revenues improved by 1% to P52.3 billion on the back of strong commercial and industrial lot sales and resilient bookings in the premium residential segment. — Beatriz Marie D. Cruz

Why the Russia-India-China reboot won’t last

By Karishma Vaswani

THE Russia-India-China alliance, floated in the 1990s as a counterweight to the US, is being revived today as a way for the three countries to ride out the storm of President Donald Trump’s trade war. But old suspicions mean the union is unlikely to endure. Despite their shared grievances with Washington, the partnership is more a marriage of convenience.

That reality will be on display this week when the three nuclear powers converge in Tianjin for the Shanghai Cooperation Organization summit. The Kremlin is pressing for a long-awaited trilateral meeting. If the troika did find new life, it would send a powerful signal that the geopolitical heavyweights are aligning in the face of US pressure. But the inherent tensions between India and China, and economic differences between the three, make that outcome unlikely.

That pressure is most acute for India. Until recently a key American partner, it has borne the brunt of Trump’s tariffs. He doubled duties on exports to 50% — due to go into effect on Aug. 27 — as punishment for its purchases of Russian oil.

Beijing, originally Washington’s primary target, is enjoying a temporary reprieve, but is stuck in a long-term strategic competition. And Russia, battered by sanctions and bogged down in Ukraine, is on the hunt for friends to blunt its isolation.

Moscow first dreamed up the idea of RIC, as it was dubbed, in the 1990s. Then-Prime Minister Yevgeny Primakov proposed the formation of the group to challenge the US’s global influence. The coalition looked formidable on paper — three nations with huge economies and populations. In practice, it’s always been undermined by mistrust, above all between rivals India and China.

Among the biggest sticking points is their long-running border dispute. They’ve been at loggerheads over an ill-defined 3,488-kilometer frontier in the Himalayan region. Those hostilities erupted into a war in 1962, and continue to simmer today. In 2020, the two clashed violently in Ladakh’s Galwan Valley, leaving soldiers dead on both sides in the bloodiest fighting in decades. Diplomatic ties froze, with New Delhi suspending tourist visas for Chinese nationals, and imposing restrictions on tech imports.

Trump’s tariffs are nudging them closer. Last week, they agreed to explore demarcating their disputed border, a key move toward resolving the territorial dispute. Strains around visas have eased and China has expressed solidarity with India on exports.

But the risk of future standoffs can’t be discounted. The fundamental contradictions in the dynamic are unlikely to disappear soon, Happymon Jacob, founder and director of the Council for Strategic and Defense Research, notes for the Hindustan Times. While serious violence may have been averted for now, a lasting rapprochement is unlikely. It’s hard for New Delhi to be fully confident of Beijing’s intentions, especially in light of its military assertiveness in areas like the South China Sea and Taiwan.

China is also far too close to Pakistan for India’s comfort. Beijing has become Islamabad’s most important defense partner since the end of the Cold War. During a clash with India in May, Pakistan claimed Chinese-made J-10C jets were used to shoot down five Indian fighter jets during the conflict. New Delhi said the PRC also provided its rival with air defense and satellite support. This alignment deepens India’s security anxieties and reinforces the sense that China can’t be trusted.

Setting security aside, the economic logic doesn’t work in New Delhi’s favor. India depends on US technology, capital, and supply chains — which neither Russia nor China can replace. America is also the most important market for Indian goods, by a wide margin. In 2024, consumers bought $77.5 billion worth of Indian goods, according to a Bank of Baroda report. In comparison, Chinese and Russian purchases were only a fraction of that.

In contrast, Moscow is much closer to Beijing. Since Western sanctions were imposed in 2014 after Russia’s annexation of Crimea, bilateral trade between the two has surged to record highs, surpassing $200 billion last year. Businesses are increasingly connected to the Chinese financial system through the use of the yuan, and services like UnionPay cards. For New Delhi, joining such a bloc would mean being the junior partner — hardly an appealing prospect.

That hasn’t stopped Moscow from trying to rejuvenate it. In May, Foreign Minister Sergei Lavrov said “the time has come for the revival” of the troika. Beijing has also backed the initiative, saying it could uphold peace, security, and stability in the world.

Resurrecting the bloc could pose a challenge to the US if it resulted in more coordinated action. But what binds these nations is necessity, not trust. The gathering in Tianjin will offer the opportunity for the optics of warmer ties, but it will be more symbolism than substance. This is an inherently fragile partnership, one that could unravel if American pressure diminishes.

BLOOMBERG OPINION

DALI operator widens net loss on higher costs, mounting liabilities

DALI EVERYDAY GROCERY FACEBOOK PAGE

HARD DISCOUNT Philippines, Inc. (HDPI), the operator of DALI Everyday Grocery, widened its net loss by 5% to P1.97 billion in 2024 from P1.88 billion in 2023 as mounting liabilities and higher expenses weighed on its operations.

Revenue rose by 52.1% to P33.93 billion in 2024 from P22.31 billion in 2023 due to higher sales, DALI said in its audited financial statement for the year. Gross income also increased by 124% to P3.33 billion.

Cost of sales grew by 46.9% to P30.59 billion, while operating expenses climbed by 60% to P4.81 billion.

HDPI said its total assets rose by 70% to P20.97 billion. However, total liabilities also surged by 110.8% to P20.25 billion.

Current liabilities, which reached P5.96 billion, exceeded current assets of P5.82 billion.

Total equity fell by 73% to P728.76 million after the company’s deficit widened by 60% to P5.24 billion.

HDPI’s independent auditor SyCip Gorres Velayo & Co. (SGV) noted that the P5.24-billion deficit and higher current liabilities might cast doubt on the company’s viability.

“These conditions indicate that material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern and, therefore, the company may be unable to realize its assets and discharge its liabilities in the normal course of business,” SGV said in its independent auditor’s report attached to the audited financial statement.

However, HDPI said it expects profit margins to improve over the next five years with the implementation of cost-efficiency measures.

“Management believes that with the projected improvement in net profit margin, the company will be able to generate sufficient cash flows from its operations to meet its obligations as and when they fall due,” it said.

The company also noted that stockholders had infused P7.56 billion in additional capital as of end-2024, recorded as deposits for future stock subscriptions, to support its operations.

HDPI is a subsidiary of Singapore-incorporated HDPM Sin Pte. Ltd., which focuses on the Southeast Asian market. The ultimate parent of HDPI is Switzerland-based Dali Discount AG. — Revin Mikhael D. Ochave

Entertainment News (08/26/25)

ONErpm expands into the Philippines

RECORD LABEL ONErpm marked its 15th anniversary with the announcement of its expansion into the Philippines. With this milestone, it aims to deliver “transformative solutions and sustainable opportunities for artists to thrive in an increasingly dynamic and competitive music market,” it said in a statement. As part of the expansion, ONErpm has announced that it has a dedicated team in the Philippines, composed of Project Manager Louie Tamon, A&R Representative Presh Ong, Marketing Manager Alyssa “Pebs” Pe Benito, and Senior Business Development Manager Clark Cunanan.

Lola Amour releases album, readies concert

FILIPINO band Lola Amour has released their sophomore album, Love On Loop, now available on all major streaming platforms. Across eight tracks, the album explores love in all its phases, from first crush to heartbreak to inevitable romance relapses. It features collaborations with New Zealand artist RIIKI REID and Japanese collective KOKORO of Psychic Fever from EXILE TRIBE, produced in collaboration with international hitmakers Hyuk Shin and Cuurley. The album will be supported by Love On Loop: The Album Concert, set for Sept. 12 at One Ayala, Makati City, which, aside from the songs in the album, will feature Lola Amour’s biggest hits. Concert tickets are available via https://lolaamour.helixpay.ph/https://lolaamour.helixpay.ph/.

Tadhana marks 8th year with special episode

GMA PUBLIC AFFAIRS’ award-winning drama anthology Tadhana, hosted by Marian Rivera, is celebrating its 8th year on air and online through a special three-part episode. Titled “Banta ng Kahapon,” the episode stars veteran actress Cherry Pie Picache and GMA Sparkle Artist Althea Ablan. It offers another story of Filipinos who triumph over great challenges. It will air on Aug. 30, and Sept. 6, 3:15 p.m. on GMA Network, and also stream on GMA Public Affairs’ social media accounts.

Rich Brian releases first album in 6 years

RICH BRIAN has dropped his most personal and self-directed album, WHERE IS MY HEAD?, out now via 88rising. It marks his first full-length album since 2019 and offers a raw, introspective coming-of-age journey that captures the singer’s evolution. The album explores themes of heartbreak and healing, ambition and alienation, memory, and self-reinvention across 15 tracks, which include features collaborations with artists such as Toro y Moi on “Body High,” Charlotte Day Wilson and DAISY WORLD on “Is It?,” and redveil on “Bumpy Road.”

FX’s Alien: Earth now on Disney+

THE hit series from creator Noah Hawley, FX’s Alien: Earth, has released its first three episodes on the Disney+ platform. The story kicks off when the mysterious deep space research vessel, USCSS Maginot, crash-lands on Earth, and Wendy (played by Sydney Chandler) and a ragtag group of tactical soldiers come face-to-face with the planet’s greatest threat. Set in the year 2120, it dials in on the sci-fi world of the popular Alien movie franchise. It is written by Mr. Hawley and Bob DeLaurentis and directed by Dana Gonzales. Future episodes of the eight-episode season will premiere every Wednesday.

Wolf Alice’s new album out now

BRITISH band Wolf Alice has released their fourth studio album, The Clearing, via Sony Music. Highlighting the focus track “Just Two Girls,” the album was written in Seven Sisters and recorded in Los Angeles with Grammy-winning producer Greg Kurstin. It is a classic pop/rock album that nods to the 1970s while remaining rooted firmly in the present, going for the sensibilities of “what if Fleetwood Mac wrote an album today in North London?”

Genie, Make a Wish on Netflix in October

THE K-drama Genie, Make a Wish, starring Kim Woo-bin and Suzy, is coming to Netflix in October. Written by Kim Eun-sook, it tells the story of Jinn (Mr. Kim), a genie who awakens after a thousand years, and Ka-young (Suzy), his new impassive master. The show blends a romantic comedy around their conflicts over three wishes, which sets the stage for a magical twist of destiny, desire, and love. The series will launch exclusively on Netflix on Oct. 3.

Laufey drops new album

THE new album by Los Angeles-based Icelandic-Chinese artist Laufey has been released. Titled A Matter of Time, the album strips back Laufey’s polished veneer of elegance to present her at her most vulnerable and unguarded. It is accompanied by the new focus track, “Mr. Eclectic,” featuring backing vocals from Clairo. The album is now available worldwide via Vingolf Recordings and AWAL.

Jeremy Zucker returns to Asia for world tour

MULTI-PLATINUM singer, songwriter, and producer Jeremy Zucker is set to return to Asia this year for his 2025 World Tour. Kicking off this November, the tour will bring Mr. Zucker to Seoul, Singapore, Kuala Lumpur, Manila, Taipei, and Tokyo. Jeremy Zucker – World Tour 2025 in Manila will take place on Nov. 29 at the New Frontier Theater in Cubao, Quezon City. Tickets are priced starting at P2,500 and will be available via Ticketnet.

Prime Video announces Fallout season 2

THE global hit series Fallout will premiere its second season on Dec. 17, according to Prime Video, with new episodes dropping weekly until the finale on Feb. 4, 2026. The teaser trailer has unveiled key details: a new cast member, Justin Theroux as Robert House, and the appearance of the highly anticipated Deathclaw, one of the Fallout universe’s most iconic creatures. This season takes the story to the post-apocalyptic city of New Vegas, picking up where the first season’s finale left off.

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