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Macklemore cancels Dubai show to protest UAE role in Sudan war

AMERICAN rapper Macklemore said he has canceled his October show in Dubai in protest over the United Arab Emirates’ (UAE) support for Sudan’s paramilitary Rapid Support Forces (RSF), a warring party in the country’s civil war.

“The current situation in Sudan is urgent, horrific and it’s going largely unnoticed globally. I’m following the lead of Sudanese organizers and activists who are trying to be heard,” he wrote in an Instagram post on Saturday explaining his decision to cancel the Oct. 4 concert.

“Until the UAE stops arming and funding the RSF I will not perform there.”

As the UAE’s glitzy political and tourism hub, Dubai frequently hosts international artists and sporting events. Macklemore’s decision to cancel an engagement because of the country’s politics is extremely rare.

Neither the UAE’s foreign ministry nor its global media office immediately responded to Reuters’ request for a response to Macklemore’s decision to cancel.

Sudan’s army has publicly criticized the UAE over its alleged support for the RSF, its rival in the war.

The UAE denies the allegations, though United Nations (UN) experts have said they are credible. The allegations surfaced in a fiery back and forth at the UN security council in June.

The war in Sudan began in April 2023 when competition between the army and the RSF, who had previously shared power after staging a coup, flared into open warfare.

Efforts in pursuit of a ceasefire, including talks ongoing in Switzerland, have not eased the fighting, and half of Sudan’s 50 million population lack food.

Macklemore, a Grammy-winning artist, said in his post that the war between Israel and Hamas in Gaza prompted him to reconsider how he earns money and his ability to use his artistic platform for activism.

“If I take the money, while knowing it doesn’t sit right with my spirit, how am I any different than the politicians I’ve been actively protesting against?” he wrote, urging other artists scheduled to play in Dubai to reconsider.

Macklemore in May released “Hind’s Hall,” a high-profile protest anthem in solidarity with pro-Palestinian activists occupying university campuses in response to the war in Gaza. — Reuters

The Philippine justice system is malfunctioning

ORIGINAL PHOTOS FROM FREEPIK

President Ferdinand Marcos, Jr. remains firm in his stand that he will not allow the International Criminal Court (ICC) to investigate the “war on drugs” of former president Rodrigo Duterte. He maintains that the Philippines can resolve the issue under its “well-functioning justice system.” The episodes below glaringly show the Philippine justice system is malfunctioning badly.

THE ALICE GUO EPISODE
On Aug. 19, Senator Risa Hontiveros disclosed that, based on information provided to her by the National Bureau of investigation (NBI), Bamban, Tarlac Mayor Alice Guo is out of the country. She was able to leave despite being the subject of an immigration lookout bulletin order (ILBO) due to a high-profile Senate investigation into her alleged involvement in illegal activities traced to a Philippine offshore gaming operator hub and questions about her citizenship and eligibility as municipal mayor.

Miss Guo, said to have faked Philippine citizenship to run for mayor of Bamban, left the country on July 18 reportedly for Denpasar, Indonesia, then proceeded to Kuala Lumpur, Malaysia and subsequently flew to Singapore with her siblings, Sheila Guo and Wesley Guo, on July 21. She returned by ferry to Indonesia on Aug. 18.

She has been since July 18 the subject of an arrest warrant issued by the Senate due to her refusal to face the Senate committee on women, children, family relations and gender equality. The committee is investigating her supposed involvement in the illegal POGO hub that was raided in Bamban where she is the mayor. The NBI having established that Guo’s fingerprints matched those of Chinese citizen Guo Hua Ping, Solicitor General Menardo Guevarra filed on July 29 a quo warranto petition before a Manila court seeking to nullify Alice Guo’s election as mayor of Bamban for her being a Chinese citizen.

On Aug. 12, Ombudsman Samuel Martires ordered the dismissal of Mayor Guo from service for her violation of Philippine laws. The Ombudsman had firmly established that Guo owns a 7.9-hectare property hosting two POGOs — Hongsheng Gaming Technology, Inc. and Zun Yuan Technology, both of which were found to be engaged in human trafficking, torture, and cyber scams including that involving cryptocurrency.

On Aug. 14, Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr. filed a criminal case for tax evasion against Alice Guo and others. The criminal case stemmed from Guo’s not paying capital gains tax and documentary stamp tax.

THE PASTOR APOLLO QUIBOLOY EPISODE
At around 5:27 a.m. last Saturday morning, Philippine National Police (PNP) Region XI personnel under the command of Police Brigadier General Nicolas Torre III entered the Kingdom of Jesus Christ (KOJC) compound in Buhangin District in Davao City to serve an arrest warrant on KOJC leader Pastor Apollo Quiboloy.

According to the live report by DWPM/TeleRadyo Serbisyo, as many as 2,000 policemen were deployed at KOJC. That is equivalent to two Army battalions or one regiment. Video clips of the operation showed the policemen equipped with basic law enforcement tools — short firearms, batons, radios, body armor, and helmets.

Just the same, Pastor Quiboloy was able to evade arrest. Hundreds of Quiboloy’s followers formed a barricade outside the compound, making it difficult for the policemen to enter. Policemen had to use ladders to get inside. Still, they failed to find their prey.

This is the second time the PNP failed to arrest Quiboloy. On June 11, heavily armed units of the PNP Special Action Force (SAF) and Criminal Investigation and Detection Group (CIDG) operatives barged into several compounds owned by Quiboloy to serve arrest warrants for him and his accomplices, Ingrid Canada, Pauline Canada, Inteng Canada and Jackie Roy. They failed to catch their quarries.

Quiboloy has three standing arrest warrants for child and sexual abuse issued by the Davao City Regional Trial Court and human trafficking issued by a Pasig City court. The cases are non-bailable. The Supreme Court transferred the cases from Davao City, the pastor’s hometown, to Quezon City so that witnesses can testify freely. The arrest warrants are different from the pending arrest warrant issued by the Senate in connection to Quiboloy’s refusal to attend Senate hearings on the sexual abuse allegations that hound him and his church leaders.

THE GERARD BANTAG EPISODE
A manhunt for Gerald Bantag, former director-general of the Bureau of Corrections has been underway since July 2023 but the PNP has yet to catch the fugitive. Bantag is implicated in the brazen murder of radio broadcaster and journalist Percival Mabasa. Mabasa, who went by the name Percy Lapid on his radio show Lapid Fire, had aired allegations of corruption against Bantag on his late-night radio program.

The law enforcement authorities claim to have tracked down Bantag’s whereabouts, but they are taking precautions in arresting the man as he had vowed not to be captured alive. Department of Justice spokesman Mico Clavano said, “We hope to do this in the most peaceful manner.”

Specially trained and heavily armed men were sent to arrest Pastor Quiboloy. When that operation failed, 2,000 men were deployed to catch the elusive religious sect leader. That too failed. To capture an alleged cold-blooded killer, peaceful ploys will be employed.

THE ANDRES BAUTISTA EPISODE
Former Commission on Elections chairman Andres “Andy” Bautista and three executives of the voting machine company Smartmatic were indicted by a US federal grand jury in Florida on Aug. 8 for allegedly taking bribes from Smartmatic, which provided the voting machines for the country’s 2016 elections. The indictment alleges that between 2015 and 2018, the Smartmatic executives caused at least $1 million in bribes to be paid to Bautista.

The alleged crime is related to the 2016 Philippine elections and involved the chairman of the Commission on Elections, yet the charges were filed by the Justice department of a foreign government in that country’s court of law. Our own Justice department saw nothing wrong in the business relations between Bautista and Smartmatic.

OTHER EPISODES
I cited in a previous column other episodes that show the broken down condition of country’s justice system.

There is the case of the four policemen who were found guilty of homicide for the killing of Luis Saldana Bonifacio and his son Gabriel during an alleged illegal drug operation.

Kristina Conti of the National Union of Peoples’ Lawyers (NUPL) said no public prosecutor participated actively in the prosecution of the case. NUPL asked for and was granted authority as private prosecutors, trying this case on their own. They built this case without any material assistance from the Justice department, police, or government agencies.

There is also the case of the Internal Affairs Services (IAS) of the Philippine National Police (PNP). The House of Representatives Committee on Human Rights grilled the IAS for not filing criminal charges against policemen involved in “tokhang” operations that resulted in deaths during President Rodrigo Duterte’s “war on drugs.” Republic Act No. 8551 mandates the IAS to investigate and adjudicate administrative cases against erring PNP personnel. IAS Director General Brigido Dulay admitted that the IAS had not filed any charges.

THE CONCLUSION
I can only conclude that President Marcos does not want to throw Rodrigo Duterte under the ICC bus because Tatay Digong might get back at Bongbong by spilling the beans. Philippine politics is replete with stories of political ally falling from grace and hitting back at ungrateful friend.

When Defense Secretary Juan Ponce Enrile fell from grace, he revealed that his ambush was faked to justify President Ferdinand Marcos, Sr. imposing martial law. When Chavit Singson was cast out of the jueteng pot, he identified President Joseph Estrada as the jueteng king himself. When Makati mayoralty aspirant Ernesto Mercado was eased out of the Jejomar Binay political camp, he exposed the sins of the Binays. When Patricia Cruz became estranged from husband Andy Bautista, she bared husband’s hidden wealth.

BBM has many secrets that RRD knows.

 

Oscar P. Lagman, Jr. has been a keen observer of Philippine politics since the early 1950s.

EVs to make up less than 10% of total vehicle sales this year — CAMPI

REUTERS

THE Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) expects that electric vehicles (EVs) will not reach 10% of total vehicle sales in the Philippines this year despite increasing demand, its president said.

EVs have so far captured 4% of the total industry’s sales, CAMPI President Rommel R. Gutierrez said on the sidelines of a press conference last week.

“I think [this will increase], but I don’t think it can reach 10% because sales of internal combustion engine vehicles are really going up,” Mr. Gutierrez told reporters on Aug. 19 in a mix of English and Filipino.

“So I think percentage-wise, not so much, but volume-wise, [the sale of EVs] is really picking up,” he added.

For the first seven months of the year, automotive sales increased by 10.9% to 265,610 units from 239,501 units a year ago.

Meanwhile, CAMPI revised its 2024 target to a record 500,000 units, reflecting a 16.3% increase from the 429,807 units sold in 2023.

Mr. Gutierrez said that the increase in both sales and the launch of EVs can be partly attributed to the expansion of Executive Order (EO) No. 12 to include hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) in the tariff exemption.

“Initially, it covered only pure EVs, but now it includes HEVs, whose sales are actually much higher compared to pure EVs,” he said.

“But we are, of course, cautious because there is a yearly review of the performance, so we really need to match the expectations. So, everybody is pushing, even other brands, led by Toyota, are really bringing in EVs because they see the potential,” he added.

On June 20, President Ferdinand R. Marcos, Jr. signed EO 62, which modified the rates of import duty on various products.

The EO covered the expansion of the reduced Most Favored Nation tariff rates of the products covered under EO No. 12 to other battery EVs, HEVs, PHEVs, and certain parts and components.

The National Economic and Development Board approved in May the expansion of the coverage of EO 12, which temporarily reduces tariffs on EVs to zero until 2028.

Aside from the 34 lines of EVs covered by EO 12, it will now also cover e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles, HEVs, and PHEV jeepneys or buses. — Justine Irish D. Tabile

Dissecting the popularity of leisure-oriented developments

THE PANDEMIC has highlighted the need for greener, more open spaces. This is a major reason why property firms now offer bigger spaces, whether for condominium or horizontal developments. These projects are classified as upscale and luxury developments based on total contract prices but are among the best-selling projects in the market post-COVID. We expect developers to continue launching similar projects, but the first movers definitely have an advantage.

Colliers Philippines believes that it is imperative for property firms to take advantage of the rising demand for resort-themed projects across the country. For one, these projects are banking on the revival of the Philippine tourism market, which the Marcos administration continues to aggressively promote. The tourism sector remains one of the major job-generating economic sectors of the Philippines, and the government’s emphasis on the sector will substantially benefit developers catering to local and foreign markets.

Leisure-themed developments also benefit from improving connectivity. Major projects in the Cavite-Laguna-Batangas (Calaba) corridor, for instance, are taking advantage of improving access from Metro Manila to Southern Luzon. Hordes of people visit their favorite destinations in the south during weekends and holidays, and the ease of travel has been facilitated by the completion of major public projects, including those connecting cities from north to south Luzon.

IMPROVING CONNECTIVITY AND LEISURE-ORIENTED PROJECTS
The leisure sector stands to benefit from the new and upcoming infrastructure projects. From the modernization and expansion of airports to the upgrading of roads, particularly those that lead to new and exciting tourism spots, Colliers believes that these joint infrastructure implementation efforts between the government and private sector players should help the government accommodate more international tourists and entice long-haul and high-spending ones, especially now that the Philippines intends to attract 7.7 million foreign visitors this year and 12 million in 2028.

The foreign visitors should eventually be enticed to invest in the country, adding a layer of demand to the already strong upscale and luxury markets.

RISING DEMAND POST-COVID
Developers have been taking advantage of the rising demand for resort or leisure-oriented properties outside Metro Manila. These projects were already popular pre-COVID, but the pandemic only highlighted the need for these leisure-themed residential enclaves. Among the developers with leisure-centric properties outside Metro Manila are Brittany Corp., DMCI Homes, Inc., Rockwell Land, Inc., Megaworld Corp., Ayala Land, Inc., Robinsons Land Corp., Cebu Landmasters, Inc., Torre Lorenzo Development Corp., AboitizLand, Inc., Costa del Hamilo, Inc., Landco, Inc., and Damosa Land, Inc., with projects located in Cebu, Davao, Bohol, Palawan, Cavite, and Batangas. These projects remain popular, and Colliers encourages developers to further assess launching similar projects.

COLLIERS SURVEY RESULTS POINT TO THRIVING POPULARITY
A recent Colliers webinar poll showed that Palawan was the most preferred destination of our respondents (45%), followed by Boracay (17%) and Cebu (16%). Both Palawan and Boracay have been awarded as the third and fourth best islands to travel to, according to the Travel + Leisure Luxury Awards Asia Pacific 2024.

Colliers believes that hotel operators should remain active in capturing demand from domestic tourists who are enticed by impulse travel, as well as foreign visitors. Property firms should explore building either hotels or leisure-centric residential enclaves in popular destinations across the Philippines. Among the developers with leisure presence in Palawan are Brittany Corp., Megaworld Corp., Ayala Land, and Sta. Lucia Land.

Meanwhile, among the developers with resort-themed developments in Boracay, Cebu, and Davao are Brittany Corp., Robinsons Land Corp., Rockwell Land, Torre Lorenzo Development Corp., AppleOne Properties, Inc., Ayala Land, Damosa Land, Inc., and Cebu Landmasters.

Colliers believes that the leisure sector will also likely benefit from the new and upcoming public infrastructure projects of the government. The modernization and expansion of airports such as Panglao, Laguindingan, Zamboanga, Ninoy Aquino International Airport (NAIA), and the New Manila International Airport, as well as the development of new roads to emerging tourist destinations, will likely entice more long-haul and high-spending tourists. This should also support the Department of Tourism’s goal of attaining 7.7 million foreign arrivals in 2024 and 12 million in 2028.

Results of our Q2 2024 Residential Survey showed that about 28% of our respondents chose beachfront properties as their next residential investment. Developers have been taking advantage of the rising demand for resort or leisure-oriented properties outside Metro Manila. In our view, these projects will likely remain popular, especially among investors looking for greener and more open spaces. Colliers data showed that these projects have take-up rates of between 40% and 100%, with average prices per square meter ranging from P214,000 to as much as P590,000 ($3,800 to $10,500) as of end-2023.

Among the developers offering resort-themed developments are Brittany Corp., Ayala Land, Rockwell Land, Robinsons Land, Torre Lorenzo Development Corp., Sta. Lucia Land, and DMCI Homes, dispersed across Batangas, Cavite, and Cebu. In our view, the recovery of the country’s travel and tourism sector will also likely lift the demand for these projects.

PHL HOSPITALITY AND FOSTERING INCLUSIVE GROWTH
Colliers believes that public-private partnerships should not just focus on infrastructure development. Greater emphasis should also be provided in propping up the tourism sector and in making sure that it benefits all stakeholders — from hotel owners and operators to retailers of souvenir items. Over the past few years, we have seen the expansion and modernization of airports in Clark and Cebu, and there will be more in the pipeline — New Manila International Airport in Bulacan and the rehabilitation and expansion of the existing NAIA. With tourism as one of the major job-generating sectors of the Philippine economy, there’s so much on the line. That’s why greater public and private participation is needed in buoying the sector, ensuring that public projects are completed as scheduled, and promoting sustainable and inclusive economic growth across the Philippines.

Further growth of Philippine tourism is a win-win for developers and property investors.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

CitySavings sees better margins on lower rates

CITY SAVINGS BANK, Inc. (CitySavings), the thrift banking subsidiary of listed Union Bank of the Philippines, Inc. (UnionBank), expects its margins to improve this year as borrowing costs are expected to come down.

“What we’re also looking forward to is the gradual reduction in interest rates and cost of funds, because that will allow us to also improve our margins,” CitySavings Chief Executive Officer Lorenzo T. Ocampo told BusinessWorld earlier this month.

“As a bank, we also rely on borrowings to fund our loan growth. So, as interest rates come down, we expect that the borrowing rates will also come down,” he added.

The lender also targets steady loan growth for the rest of the year, the official said.

Mr. Ocampo said the bank’s core lending business of salary loans for teachers posted about 5% growth as of July, while its other businesses expanded by around 20% to 30%.

“I think that’s sustainable for the balance of the year. If you look at our growth rates year to date, that should be sustainable until the end of year,” he said.

Meanwhile, CitySavings could issue a second social bond early next year, Mr. Ocampo said.

This, after it issued its first social bond in June, with the International Finance Corp. (IFC) investing $100 million. The issuance made CitySavings the first thrift bank in the Philippines to issue a social bond.

Proceeds from the social bond will be used for loans to women in low and lower middle-income groups, the IFC earlier said. The social bond follows The International Capital Market Association’s Social Bond Principles and the ASEAN Social Bond Standard.

“The need for it is something that we can use right away. But what we’ve noticed is that the IFCs of this world and the other international institutions that want to do the bond with us have a longer due diligence. But I think, maybe because we’ve gone through the process already, it should go faster. So, early next year at the latest,” Mr. Ocampo said.

CitySavings could also raise a higher amount from its second social bond issue, depending on market conditions, he added.

“$100 million is not a big number in terms of our loan growth so certainly, we’re open to doing this again,” Mr. Ocampo said. “The other thing is we want it to be variable because as you see, the next three to four years, the rates will continue to come down.”

He added that other institutions have expressed interest in investing in their planned social bond issue.

The Bangko Sentral ng Pilipinas (BSP) this month cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board reduced its target reverse repurchase rate by 25 basis points (bps) to 6.25%, as expected by nine out of 16 analysts in a BusinessWorld poll. Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to rein in elevated inflation.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

Meanwhile, the US Federal Reserve is widely expected to begin its own easing cycle by next month. It has kept the fed fund rates steady at the 5.25%-5.5% range since July 2023.

CitySavings, which provides salary loans to public school teachers, government workers, and pensioners, was the third biggest thrift bank in the country in asset terms as of end-March with P160.79 billion, latest Bangko Sentral ng Pilipinas data showed.

Meanwhile, its listed parent UnionBank’s attributable net income went up to P3.02 billion in the second quarter from P2.52 billion a year ago. — Aaron Michael C. Sy

Entertainment News (08/27/24)

‘B★VERSE Manila’ exhibition extended

THE IMMERSIVE exhibition “B★VERSE Manila” has been extended until Sept. 1 to accommodate more ARMYs, K-pop fans, and curious individuals who want a glimpse of the BTS experience. The exhibition was extended in time for the birthday of one of its members, Jung Kook. The B★VERSE Pass can also be used as a cinema ticket or availed with a meal at Gateway Mall 1 or 2. For more details on these promos and the extension until Sept. 1, visit this link: https://bit.ly/3AuedA5.

Ace Banzuelo releases new single

FILIPINO singer-songwriter and producer Ace Banzuelo is marking the beginning of a new era with the release of “minsan” (translation: “sometimes,”) a melancholic ballad that merges R&B with dream pop influences. Inspired by personal and common experiences with friends, the song expresses his bouts with betrayal and heartbreak. “Talking about it with friends really helped me heal from what I went through. I think the music can speak for itself,” Mr. Banzuelo said in a statement. “minsan” serves as his first single since 2023’s “Pag-ibig (Meron Ba).” The release of the track highlights a new pivot in Ace’s musical direction to the dream pop genre with non-conventional experimental soundscapes. It is now out on all digital music platforms via Sony Music Entertainment.

Blumhouse thriller Speak No Evil to screen in Philippine cinemas

PRODUCER Jason Blum got a call from an executive who saw a thriller that got under his skin — the 2022 Danish film, Gaesterne. The screenplay went on to be the inspiration for the latest Blumhouse thriller Speak No Evil. The film follows an American family who befriends a British family, and subsequently gets invited to a vacation on their idyllic British farmhouse, a dream getaway that quickly turns into a nightmare. Helmed by horror writer-director James Watkins, Speak No Evil will arrive in Philippine cinemas on Sept. 11 via Universal Pictures International.

Beetlejuice Beetlejuice in Philippine cinemas in September

AS A sequel to the 1988 horror-comedy classic Beetlejuice by Tim Burton, the upcoming Beetlejuice Beetlejuice is set to continue the story of Lydia Deetz, a role reprised by Winona Ryder. This time, the lead is Astrid, her daughter, played by Jenna Ortega, supported by her grandmother Delia, played again by Catherine O’Hara. The three generations of Deetzes must face the return of the franchise’s eponymous creature, brought to life once again by Michael Keaton. “It was such a privilege, and I don’t know what I did to be in this position or be on this project, but it felt like I was thanking my lucky stars for it every day, because it was like a dream come true,” said Ms. Ortega in a statement on joining the Beetlejuice franchise. The sequel will be out in Philippine cinemas on Sept. 4.

Barbie Almalbis drops new single

FOLLOWING the critically acclaimed comeback single “Desperate Hours” last month, singer-songwriter Barbie Almalbis makes her return to the music scene by releasing a second single, “homeostasis.” The title is derived from a biological term that illustrates the body’s way of regulating and adjusting to changing external conditions. The song was born from a challenging phase in Ms. Almalbis’ life, which she channeled into music. “Homeostasis gives me hope that everyday my body is going to adapt and I’d feel less and less terrible in time, because it has that built-in function,” she explained. Nick Lazaro of Eclectic Kiss arranged and produced the song, with Ms. Almalbis penning the material on guitarlele and brother/bandmate Karel Honasan writing the instrumental parts. “homeostasis” is out now on all digital music platforms nationwide.

Transformers One set to arrive in Philippine cinemas

ON Sept. 18, Transformers One will hit cinema screens all over the Philippines. The film is the untold origin story of Optimus Prime and Megatron, better known as sworn enemies, but once-friends, bonded like brothers, and changed the fate of Cybertron forever. It is the first-ever fully CG-animated Transformers movie, directed by Josh Cooley. The star-studded voice cast includes Chris Hemsworth, Brian Tyree Henry, Scarlett Johansson, Keegan-Michael Key, Steve Buscemi, Laurence Fishburne, and Jon Hamm.

Tina Turner tribute comes to Newport World Resorts

THE GROWLING pop sensation Tina Turner will be honored in a tribute concert featuring Chicago-native singer Redd. The cover artist’s ‘rock soul’ energy and live performances echoes Turner’s original signature. She first rose to popularity in the American reality talent competition, The Voice, in 2011, and immediately became a fan favorite for her viral four-chair turn audition. Since then, her talents have taken her all over the world, opening for hip-hop and R&B artists including Miquel, 50 Cent, and Chaka Khan. Her upcoming concert at Newport World Resorts will see her recreate Turner’s hits such as “Simply the Best,” “What’s Love Got to Do With It,” “River Deep Mountain High,” and “Proud Mary.” The two-night concert will be on Sept. 20 and 21 at 8 p.m. Tickets, priced from P1,200 to P9,000, are available via TicketWorld.

Korean series The Judge From Hell to debut on Disney+

THE 14-episode romantic Korean crime drama The Judge From Hell, starring Park Shinhye as a possessed judge sent to earth to bring criminals back to hell, will be debuting on Sept. 21 on Disney+. Ms. Park plays Bitna, a problematic judge known for dishing out light sentences to defendants; now possessed by a demon. Things take a turn when she begins to develop feelings for detective Daon, played by Kim Jaeyeong. Written by Jo Isu and directed by Park Jinpyo, the series beings streaming on Disney+ starting Sept. 21.

Ena Mori to celebrate birthday with Ena Matsuri show

LAST year saw the inaugural edition of Japanese-Filipino indie pop soloist Ena Mori’s birthday show, Ena Matsuri. This year, the second rendition promises a more club-leaning, endorphin-inducing experience at Justin Bella Alonte Photography Studio in Makati City on Sept. 21, 6 p.m. There will be an all-electro/rave/hyper-pop/dance/rhythmic lineup, with dance, art, and interactive elements creating an immersive environment that celebrates modern pop, youth, and online culture. “I wanted to focus on more electronic and rave-y elements, which correlate to what I’ve been listening to lately,” Ms. Mori said in a statement. She herself is co-producing, curating, and conceptualizing Ena Matsuri, with assistance from Offshore Music and GNN Entertainment Productions. Early bird tickets are available at P500 until Aug. 31 only, via https://enamatsuritwo.helixpay.ph/.

J-pop singer-songwriter Fujii Kaze in Manila for Asia tour

THE JAPANESE musician Fujii Kaze has announced that he will be taking the Best of Fujii Kaze 2020-2024 Asia Tour to Asian cities by the end of this year. Compared to his previous tour, it will be scaled up to arena venues and expanded to hit eight cities in the region. The Manila leg of the tour is set for Dec. 10, 8 p.m., at the Mall of Asia arena. Promoted by Ovation Productions and AEG Presents Asia, tickets for the concert are priced from P3,800 to P8,800, on-sale starting Aug. 30 via smtickets.com.

PhilHealth’s idle funds and health spending in Asia

The arguments against the transfer of idle funds of PhilHealth to finance some unprogrammed appropriations are becoming more predictable, repetitive and unconvincing. I summarize below those major arguments.

No. 1, if those unprogrammed appropriations are indeed important, they should have been included in the regular programmed appropriations so they can get regular and not standby funding.

No. 2, much of the congressional “pork” budget was inserted in programmed appropriations, bumping off certain unprogrammed fund projects so that unprogrammed allocations increased to P731 billion from P282 billion in 2024.

No. 3, PhilHealth is a social health insurance fund and not a bank, and people’s premiums cannot be tapped for other government spending, and PhilHealth should not call the unused fund “savings.”

No. 4, high out-of-pocket expenditures (OOPE) in the Philippines, 46% of which are health expenditures, are the third highest in Southeast Asia and only lower than Cambodia and Myanmar.

Since those arguments are repetitive and bordering on being emotional, they are easy to rebut. In this column last month, “On unprogrammed appropriations and Secretary Ralph Recto” (July 30), I already provided some answers to the above claims. I wrote the following:

On No. 1, “The programmed appropriations, our expenditures, are so many that current and future revenues will not be able to catch up resulting in a huge budget deficit… huge interest payments that add more pressure on expenditures, in the first half of 2024 our interest payment was already P377 billion, likely to reach P750 billion in the full year 2024… The budget deficit for 2024 and 2025 would be at the 2023 level of P1.5 trillion.”

On No. 2, “out of the P731 billion in unprogrammed appropriations for 2024, the potential congressional pork barrel fund would be P225 billion on “strengthening assistance for government infrastructure and social programs.” The rest, or P506 billion, is earmarked for foreign-assisted projects (FAP), the Philippines’ counterpart funds, social programs for health and education, etc.”

On No. 3, people’s premium payment will not be used. Members’ contributions from 2021 to 2023 ranged from P106 billion to P158 billion. And the members get benefit claims from P85 billion to P153 billion over the same period. It is not members’ money that will be tapped by the Department of Finance (DoF) for unprogrammed appropriations, but money from gamblers and bettors (PAGCOR and PCSO), money from drinkers and smokers of legal products (alcohol and tobacco tax revenues), the average P80 billion/year over the same period (see Table 1).

On No. 4, out-of-pocket expenditures per capita in the Philippines of $91 per person in 2021 was actually higher than those in Vietnam, Cambodia, Myanmar, Indonesia, India and Thailand. Valued in purchasing power parity (PPP) also in 2021, the OOPE per capita in the Philippines of $219 is again higher than those six countries.

I think those numbers on OOPE per capita refer only to National Government health spending (DoH, PhilHealth, UP-PGH, hospitals for AFP, PNP, Veterans, etc.). It’s possible that health spending by local government units is not included yet in the World Bank data. I refer to big hospitals owned and funded by cities and big municipalities.

Consider also this fact: Manila City has the greatest number of public hospitals per square kilometer of land. There are four big DoH hospitals (Jose Fabella, Jose R. Reyes, San Lazaro, Tondo Medical), the lone UP-Philippine General Hospital (PGH) and five or six city-owned hospitals.

Following the hypothesis or narrative that “more public health spending equals better health outcome,” can we argue and state with strong confidence that Manila City residents have the best health outcome, possibly the healthiest people in the Philippines? I doubt it.

The DoF is correct in tapping those idle funds of PhilHealth, especially money from gamblers, drinkers and smokers, to fund some unprogrammed fund projects. It is correct in avoiding to borrow another P90 billion, which when contracted at 6.4% interest rate (average for 10-year government bonds) would mean P5.76 billion in yearly interest payments alone, plus yearly principal amortization.

The detractors have spoken repeatedly, and they have presented no new arguments that will help the country reduce the deficit, reduce borrowings or reduce interest payments.

Onwards, the DoF should not stop tapping the idle funds of government corporations to reduce the deficit. In the long term, it should privatize some or many government assets, lands and corporations. Big-ticket items like NAIA land itself of 636 hectares and New Bilibid Prison land of 447 hectares since the DoJ is building big regional jails and abandoning the national penitentiary.

Privatization revenues should be used entirely to reduce the public debt stock, not earmarked for any department or public programs and projects.

 

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

P350-M Wave Residences in Nasugbu to finish by 2027

THE WAVE RESIDENCES, a 2.6-hectare development in Nasugbu, Batangas is expected to be completed by 2027, housing developer Pocket Communities Corp. said.

The company broke ground on the P350-million project, which will include 122 housing units, on Aug. 2.

“The construction of The Wave Residences is currently underway. The target completion date for the model house is December 2024, and the overall development is expected to be completed within the next three years,” Red J. Rosales, chief operating officer of Pocket Communities, told BusinessWorld via an e-mail on Aug. 13.

“Pocket Communities primarily targets starting families, returning residents or rural migrants, retirees, or simply individuals seeking an upgraded living experience,” he added.

Amenities at The Wave Residences include parks and playgrounds for outdoor recreation, a clubhouse with gazebos, and a swimming pool.

Additionally, the project offers spaces such as a zen garden and a meditation park.

Sustainability is also a key feature, with solar-powered infrastructure and a radio-frequency identification entrance system ensuring security and eco-friendly living, he said.

Mr. Rosales said the location of The Wave Residences is the only remaining residential lot within Nasugbu that offers residents proximity to essential amenities, business centers, and beach access.

He added that the project benefits from infrastructure developments such as the Nasugbu-Bauan and Cavite-Tagaytay-Batangas expressways and is set to become a prime residential hub.

“The community is designed with a focus on exclusivity and privacy. This combination of accessibility, sustainability, and thoughtful design gives it a significant edge over other developments in the affordable housing market,” he said.

Mr. Rosales said that over the coming years, The Wave Residences will likely see substantial appreciation in value, establishing itself as a “high-value property investment and a sought-after community” for those looking to upgrade their living experience in a coastal setting. — Aubrey Rose A. Inosante

SM group hotel arm invests in food waste conversion technology

BW FILE PHOTO

SM HOTELS and Conventions Corp. (SMHCC), the hotel arm of the SM group, recently introduced technology that converts food waste into filtered wastewater under 24 hours.

This technology is called the organic refuse conversion alternative (ORCA) biodigester, which is currently used at Taal Vista Hotel in Pasay City.

In a media release, SMHCC said that since the installation of the ORCA at Taal Vista, it has diverted over 40,013 kilograms of food waste, which is equivalent to 20,406.63 tons of carbon dioxide emissions saved.

“With the adoption of the ORCA biodigester, we have transformed our food waste management process from a weeks-long process to a streamlined, green-friendly one-day cycle, significantly enhancing operational efficiency and our environmental impact,” Leah Magallanes, SMHCC vice-president for Quality and Sustainability, said on Aug. 22.

Citing a recent report by the United Nations Environment Programme, SM Hotels said household food waste amounts to 2.95 million tons annually in the Philippines.

The hotel industry often faces significant waste issues due to the challenge of managing inventory and excess food, particularly with the large number of customers served daily, the company said.

SMHCC said similar food waste reduction initiatives, such as bokashi composting, are underway across its hotel portfolio.

Bokashi composting uses specialized kits where food waste is layered with activators, or biological additives, to produce compost, which allows it to ferment for 10 to 15 days. The resulting liquid can be collected as natural fertilizer, while the solid residue can be composted or buried.

SMHCC said that since introducing bokashi composting techniques across five properties — Taal Vista Hotel, Pico Sands Hotel, Park Inn Bacolod, Park Inn Iloilo, and SMX Manila — it has diverted over 198,640 kilograms of food waste, equivalent to 101,306 tons of carbon dioxide emissions saved.

“Our combined efforts support our gardens and foster community-driven, eco-friendly practices through partnerships with local farmers and producers,” Ms. Magallanes added. — Aubrey Rose A. Inosante

AI giants can learn a thing or two from Mark Zuckerberg

ANTHROPIC

MARK ZUCKERBERG may have a history of copying others’ ideas, but when it comes to navigating the generative artificial intelligence (AI) hype cycle, he’s the one forging a smarter path.

In the year to date, Meta Platforms, Inc.’s shares have significantly outperformed its tech giant peers, rising 54% while the likes of Alphabet, Inc.’s Google and Microsoft Corp. have gone up 18.5% and 12% respectively. Why? Investors have become more skeptical in recent months about how quickly new AI models will economically benefit the customers of cloud giants, and their enthusiasm for Microsoft, Google and Amazon.com, Inc. has waned.

Zuckerberg’s company is different. Instead of merely pitching artificial intelligence as an economic boon, it has actually demonstrated how AI has made Meta’s own ad systems more effective and ultimately profitable. Zuckerberg’s clarity on those details in earnings calls has won him praise from analysts, and likely contributed to the stock bump. The lesson he’s offering his peers on AI is an oldie but a goodie: Show, don’t tell.

Zuckerberg, of course, is in a different position to Amazon, Microsoft and Google, in that he doesn’t sell AI tools as part of a market-dominating cloud service like they do. But that doesn’t mean the so-called hyperscalers can’t learn from his approach. One of the biggest factors currently weighing on sentiment about artificial intelligence is around utility. Cutting-edge AI models from OpenAI, Anthropic and Google can conjure humanlike prose, computer code and photorealistic images — but figuring out how to plug that into business processes is taking longer than many in the market would like.

Anthropic, a leading maker of generative AI models, told me that the three most popular use cases for its technology were chatbots, text summarization and coding. But it and other companies selling AI services haven’t been able to articulate more concrete examples of their technology’s return on investment.

Zuckerberg has, particularly in Meta’s last quarterly earnings call. “It was his best earnings call as a public CEO,” according to Gene Munster, managing partner of Deepwater Asset Management. “He explained the near-term benefits of AI, the long-term benefits and the timing of how all this is going to play out. And he did it in a compelling way.”

According to Meta’s latest earnings report, the company’s artificial intelligence tools and large-language-model technology boosted content personalization on Instagram and Reels, driving daily active users up by 6%, the most in the past eight quarters. Daily watch time across all videos including Reels went up 25%, and the short-videos feature is now expected to bring in $10 billion in revenue for 2024, which would be more than three times what it was three quarters ago, something analysts are attributing to the AI systems powering its recommendation feeds. Zuckerberg also said that Meta’s AI technology helped increase time spent on Instagram by 24% and led to more effective ad targeting.

All of this gives Zuckerberg the permission he needs to build out highly expensive AI technology, according to JPMorgan Chase & Co. equity analyst Doug Anmuth. Meta “continues to earn the right to spend big on genAI,” he said.

Spending on AI is a touchy subject for Big Tech at the moment. In the quarter ending in June 2024, Apple, Inc., Microsoft, Alphabet, Amazon and Meta spent a combined $55 billion, a capex figure that’s 55% than the previous year, according to data compiled by Bloomberg, numbers that have rattled investors.

Google’s explanation for why it should keep spending on AI hasn’t helped by being vague: “The risk of under-investing is dramatically greater than the risk of over-investing,” Alphabet CEO Sundar Pichai has said.

In his latest earnings call for the second quarter, Pichai highlighted how Google’s revenue for search and YouTube had grown by 14% and 13% year over year, respectively, but he didn’t explicitly attribute that growth to the use of AI to improve their financial performance, for instance, by enhancing recommendation feeds or making ad targeting more effective. Pichai should consider offering more concrete examples of how Google is eating its own dog food, and demonstrate with specifics from his own business about how AI can improve a company’s financial performance.

Zuckerberg learned all this the hard way, thanks to his disastrously expensive bet on the metaverse — Meta’s Reality Labs division lost $16 billion in 2023 — a business that shows little sign of paying off any time soon. He knows that to get backing for his latest gamble on generative AI, he needs to articulate how it is benefiting his own business. So far, he seems to be doing a better job at that than his peers.

BLOOMBERG OPINION

Pakistani singles defy tradition, search for spouses in person

DOZENS of young singles gathered this week to meet potential marriage partners in Pakistan’s eastern city of Lahore, the first attempt by a United Kingdom-based matrimonial app to help people find spouses in person in the conservative Islamic country.

Typically, marriages in Pakistan are arranged by parents who look for suitable matches for their children from within their communities or the extended family. Dating apps are generally stigmatized and gender segregation socially and at work remains common in the country of 240 million people.

The Lahore event was organized by Muzz, formerly Muzzmatch, which says its app is based on Islamic etiquette. The app is restricted to Muslim users, and, in a nod to traditional values, gives the option of blurring pictures except for specific matches and allows for chaperones to oversee meetings.

Other smaller events are also emerging in the country to challenge traditional matchmaking norms.

Despite criticism online in the past for the app, the Muzz event was attended by about 100 people.

Aimen, a 31-year-old woman who did not want to be further identified, said she used the app on the recommendation of her US-based brother.

“I used the app for two weeks, but then I saw an ad for this event and thought, why not meet people in person?” she told Reuters.

She said that her mother would have accompanied her as a chaperone but couldn’t attend because of ill-health.

Muzz, launched in 2015 in the Britain, which also has a sizeable Muslim population, has over 1.5 million users in Pakistan, its second-largest market after Morocco.

Moaz, a 27-year-old man, said he has been using Muzz for a year and that he was hopeful of finding a wife through the app.

“I do get matches, but they have different priorities,” he said adding that girls on the app expect him to involve his parents from the beginning.

“That is not (immediately) possible,” he said, stressing the need of getting to know someone before taking the next big step.

Annie’s Matchmaking Party, another Lahore event last week, used an algorithm to match 20 young professionals after a selection process and invited them to the meet.

Noor ul Ain Choudhary, the 30-year-old organizer, faced criticism online that her event promoted a “hookup culture.” She countered that it aimed to provide a safe space for singles to meet and connect.

“In Pakistan, we’ve had two options: biased arranged marriages or time-consuming dating apps with no guarantees. Safety during meetings is also a concern,” she said.

Abdullah Ahmed, 22, was bullish about in person events and said he was convinced he may have found his perfect match at the Muzz gathering.

“The highlight was meeting an amazing girl,” he said, beaming with excitement, adding that they instantly clicked and swapped social media handles.

“We’re both Marvel fans! We’re already planning to catch the new Deadpool & Wolverine together,” he said. — Reuters

Bank of Japan shows how action matters more than hawkish signs

THE JAPANESE national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan Sept. 20, 2023. — REUTERS

JACKSON HOLE, Wyoming — For academics and policy makers gathered at the US Federal Reserve’s annual Jackson Hole economic conference to debate how central banks can affect market perceptions on the course of monetary policy, the Bank of Japan (BoJ) might appear to have gotten it right in July when it raised rates for a second time.

In March the BoJ managed at last to end eight years of negative interest rates. The next month it began dropping hints it would kick off steady interest rate hikes if inflation remained on track to meet its forecasts.

The message went ignored by markets, until last month. That’s when the BoJ backed hawkish signaling with action: It lifted short-term rates to 0.25% from 0-0.1% in a surprise move that triggered a global unwinding of carry trades that for the better part of a decade had been funded with ultra-cheap Japanese yen.

The subsequent market rout forced the BoJ to backtrack and offer reassurance it won’t hike again until markets stabilize. And yet, it showed how central bank communication has maximum impact when words are matched with action.

The BoJ’s experience dovetails with findings in a new research presented at this year’s Jackson Hole conference, where global central bank policy makers discussed ways to enhance their communication with markets.

The paper — “Changing Perceptions and Post-Pandemic Monetary Policy” — showed how it took substantial rate hikes by the Fed for the public and markets to fully grasp how committed policy makers were to ensuring inflation returned to the US central bank’s 2% target.

“Policy rate actions contribute to, and may even be necessary for, the effectiveness of communication, particularly when uncertainty about the monetary policy framework is high,” the authors wrote. “As our evidence shows, a timely policy rate response to inflation matters not only for influencing immediate financial conditions, but also for signaling that policy makers are serious about responding to future inflation news.”

To be sure, the highest Japan’s inflation rose was to 4.2% in January 2023, well below the 7.1% peak US rate that pushed the Fed into rate hike overdrive in June 2022. Japanese inflation in July was 2.7% and has held above the BoJ’s 2% target for more than two years, with broadening wage hikes starting to push up services prices.

In current projections made in July, the BoJ expects core consumer inflation to stay around its target through the year ending in March 2027. It has also warned that yen depreciation could fan inflationary risks that warrant steady rate hikes.

“We’re expecting that as inflation expectations remain stable at their new level close to 2%, the BoJ will start normalizing policy rates,” IMF Chief Economist Pierre-Olivier Gourinchas told Reuters on Friday.

“Certainly in our assessment, there is scope for further normalization of monetary policy going forward, and policy rates to increase gradually for some time,” he said.

CLEARER GUIDANCE NEEDED
The BoJ has said it was clear on what would trigger rate hikes and that its policy decisions were more data-driven.

But the fact it took an actual rate hike to get its hawkish message across highlights the communication challenge facing BoJ officials, including BoJ Governor Kazuo Ueda.

The key complaint among analysts was that despite stressing it would be “data-dependent” in deciding when to raise rates, the BoJ pulled the trigger before there were clearer signs that consumption would emerge from the doldrums.

That led them to believe the BoJ’s July hike was driven by a desire to support a nose-diving yen rather than by strong economic data.

“The fundamental problem with the BoJ’s communication is that it needed to offer hawkish guidance to stem yen falls, even though many measurements of the economy were weak,” said Shigeto Nagai, head of Japan economics at Oxford Economics.

In an about-face from the hawkish July communication, BoJ Deputy Governor Shinichi Uchida reassured jittery markets this month that it won’t hike rates while markets remained unstable.

With a measure of calm now restored, though, Mr. Ueda returned again to hawkish jawboning, telling parliament on Friday the BoJ will keep hiking rates to levels seen as neutral — neither stimulating nor restricting the economy.

To avoid confusing markets, the BoJ needs a medium-term framework with clearer guidance on its long-term rate hike path, some analysts say.

While the BoJ issues quarterly long-term growth and inflation forecasts, it does not have a Fed-style dot plot of policy maker rate projections nor an estimate of the neutral rate.

Mr. Ueda said on Friday there was not enough data to come up with a credible estimate on Japan’s neutral rate, though he added the BoJ would keep trying.

“The primary task for the BoJ is to pull the market’s focus away from the next meeting or the next hike, and guide it more toward where rates will go over the medium term,” said Jeffrey Young, chief executive officer of US research firm DeepMacro.

“That’s something that we don’t really have a lot of guidance on.” — Reuters

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