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Bangko Sentral may cut rates again next month as inflation slows

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METROPOLITAN Bank & Trust Co. (Metrobank) expects the Bangko Sentral ng Pilipinas (BSP) to cut benchmark interest rates again next month, with inflation is seen to remain within target in the next two years.

“The market is currently pricing in four rate cuts from the US Federal Reserve and we believe we could see the BSP going ahead of the Fed and reducing policy rates at its October meeting. This would cement Remolona’s reputation as a front runner as BSP remains focused on supporting growth now that the inflation outlook remains favorable,” Metrobank Chief Economist Nicholas Antonio T. Mapa said in a note on Monday.

“We retain our 2+1 rate call (two cuts with a possibility of a third cut) for up to 75 bps (basis points) worth of rate cuts by the central bank,” he added.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25% from a 17-year high of 6.5%, marking its first easing move in nearly four years.

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. has said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19.

Meanwhile, the Federal Open Market Committee’s remaining reviews for the year are scheduled for Sept. 17-18, Nov. 6-7, and Dec. 17-18.

The US central bank is widely expected to begin its easing cycle at this month’s policy meeting, with markets pricing in a 25-bp cut at the review and 100 bps in reductions for this year. It has kept the federal funds target rate at the 5.25%-5.5% range following increases worth 525 bps from March 2022 to July 2023.

“Governor Remolona displayed central bank independence by forging ahead of the Fed last August given his expectations for domestic inflation amid a landscape of moderating Philippine growth,” Mr. Mapa said. “The central bank expects inflation to stay within target this year, next year, and the year after that, suggesting that the primary objective of price stability remains well in-hand.”

The BSP expects inflation to average 3.4% in 2024, 3.1% in 2025, and 3.2% in 2026 under its baseline scenario, within its 2-4% annual target.

Headline inflation slowed to a seven-month low of 3.3% in August from 4.4% in July and 5.3% in the same month last year. In the first eight months, the consumer price index stood at 3.6%.

“This indicates that the BSP is probably the central bank in the region with the most runway to reduce policy rates to more normal levels to help chase growth objectives. A healthy 150 bps of cumulative reduction over the next couple of months could help generate a takeoff for private investment and ensure a more sustainable course for growth,” he added.

Philippine gross domestic product expanded by 6.3% in the second quarter, bringing first-half growth to 6%.

To meet the lower end of the government’s 6-7% target for this year, the economy must expand by at least an average of 6% in the second half. — AMCS

Secure in Uncle Sam’s protection

FREEPIK

In defense of the proposed P256.1-billion budget of the Department of Defense for 2025, Defense Secretary Gilbert Teodoro, Jr. told the House appropriations panel on Aug. 29 that the country acted too late to upgrade its naval and air force capabilities and establish forward posts in the South China Sea. “The lesson is we procrastinated in putting aside a threat,” Mr. Teodoro said. The Philippines is now scrambling “double time” to correct this mistake.

Procrastinate means to “keep delaying” something that must be done. We did not procrastinate, or delay, the upgrading of our naval and air force capabilities. We simply did not act because we felt secure in the iron-clad protection of Big Brother America, which emerged after World War II as the dominant economic and military power and still is.

BACKGROUND
The sinking of the United States Navy ship USS Maine in Havana, Cuba, a colony of Spain, in February 1898 caused tension between the United States and Spain, eventually leading to the outbreak of all-out war between Spain and the United States in late April that year. Commodore George Dewey, commander of the Asiatic Squadron in Hong Kong, was ordered to destroy the Spanish fleet in Manila Bay. That he did decisively on May 1.

Emilio Aguinaldo, who, while in exile in Singapore, had made arrangements with representatives of the American consulate and Commodore Dewey to return to the Philippines to assist the United States in the war against Spain, returned on May 19. By then, the Filipino revolutionists had gained control of much of the country and had surrounded Manila.

However, Governor-General Fermin Jaudenes chose to surrender to white people rather than to what he considered inferior people, the dark Filipinos. To save Spain’s honor, a mock battle between Spanish soldiers and American forces was staged in Manila on Aug. 13. On Dec. 10, the Treaty of Paris, by which Spain ceded the Philippines to the United States for $20 million, was signed, officially ending the Spanish-American war.

Advocates of American expansionism insisted that the United States annex the Philippines as a base for expanding trade and influence in the Pacific. Vice-President Theodore Roosevelt, a promoter of American naval and military power, argued that if the United States did not keep the islands, Japan or Germany, which at that time was in search of colonies, would take them instead. Senator Henry Cabot Lodge of Massachusetts maintained that the United States needed to have a strong navy and be more involved in foreign affairs.

Addressing the US Congress in 1899, President William McKinley declared, “The Philippines are ours, not to exploit but to develop, to civilize, to educate, and to train in the science of government.” What he did not say was to project America as a world power, to use the Philippines as a military and naval base, and to establish a re-fueling station for American vessels sailing to and from China, a growing market for American manufactured products.

On Jan. 23, 1899, the Malolos Constitution was proclaimed and Aguinaldo was elected president. That made relations between Americans and Filipinos hostile. On Feb. 4, 1899, fighting broke out between the American forces and Filipino nationalists led by Aguinaldo.

President McKinley was re-elected president in 1900. He justified the annexation of the Philippines with his policy of benevolent assimilation, citing the intentions of the United States not as a conqueror but as a nation that will help uplift the Filipino people. After three years of bloody fighting, the Philippine-American War was brought to an end when Aguinaldo was captured on March 4, 1901.

ESTABLISHMENT OF US MILITARY, NAVAL BASES
Vice-President Roosevelt became president in September 1901 after President McKinley died from a shot by an assassin. A war monger against Spain, and a military hero during the Spanish-American war, President Roosevelt issued soon after he became president an executive order establishing the first American military bases in the Philippines.

The 2,800 hectares in Subic Bay, where the Spanish colonial government had developed a naval station because it was typhoon-free and the bay deep, was converted into a reservation for the US navy.

The old Spanish naval base at Sangley Point, outside Cavite City, that was captured by Commodore Dewey was converted into a US naval base to function as a fueling station, and subsequently as a communication and hospital facility.

During the Philippine-American War, the land owned by Captain Juan Gonzales in Taguig, Rizal, was expropriated without compensation and declared a US military reservation. It was named Fort William McKinley.

In 1903, 3,420 hectares of the ancestral land of the Aetas of Pampanga, where the grass was suitable for the horses because it was sweet, were developed into a reservation for the US Cavalry and named Fort Stotsenberg. The fort was enlarged to accommodate Clark Airfield in 1918. In 1919, Nichols Airfield, south of Manila, was built for the US Army Air Forces in the Southwest Pacific Theater.

In July 1941, the Mariveles Naval Base in Bataan was built for the use of the US Navy’s Asiatic Fleet. In November of that year, the development of Del Carmen Field in Floridablanca, Pampanga, intended to be a major aerodrome with multiple runways designed to serve heavy bombers, was started. But the engineers were not able to complete the field, and only P-38 aircraft flew from there.

Subic Naval Base, headquarters of the US 7th Fleet, and Clark Air Base, home of the US Air Force’s 13th Squadron, were the largest and the two most important US military installations outside the mainland USA.

All these military and naval facilities were destroyed by the same Imperial Japanese Naval Air Services that bombed the US Naval Base in Pearl Harbor, Honolulu on Dec. 7, 1941. The sneak attacks on Pearl Harbor and on US military and naval facilities in the Philippines brought World War II to the Pacific Theater. The Philippines fell under the brutal control of the Japanese Imperial Army beginning May 6, 1942.

THE PHILIPPINES REGAINS ITS INDEPENDENCE
The guerilla resistance and the American forces liberated the Philippines from Japanese control when General Tomoyuki Yamashita, Commander of the Japanese 14th Army in the Philippines, surrendered on Sept. 2, 1945. On July 4, 1946, the United States recognized the Philippines as an independent, sovereign country and withdrew its authority over the bases.

World War II demonstrated to the US military establishment the importance of establishing an elaborate network of military bases worldwide. Thus, officials in Washington easily convinced the profoundly grateful leaders of the Republic of the Philippines to enter into an agreement regarding the military bases the US had built in the Philippines when it was its colony.

The Military Bases Agreement, signed on March 14, 1947, allowed the United States to establish military facilities in the country for a term of 99 years. It placed no restriction on the use to which the US could put the bases nor the type of weapons that it could deploy or store there. It also prohibited the Philippines from granting base rights to any other country. The agreement practically allowed the bases named above, plus those built during World War II like the Leyte-Samar Naval Base, to remain under the authority and full operational control of the US Defense Department.

Just a week after the bases agreement was signed, another agreement was entered into by the two countries. The Military Assistance Agreement commits the US to provide the Armed Forces of the Philippines with military aid, military advice, and, for Filipino military officers, training in the US. The agreement was not intended for defense against foreign aggression but against the internal Communist insurgents.

The US Defense Department lost control of the bases specified in the Military Base Agreement — Clark Air Base in 1991 and Subic in 1992 — after the Philippine Senate rejected the extension of the agreement by another 10 years, but Philippine officials were still firm in their belief that the country was secure because there was the Mutual Defense Treaty to bank on.

The treaty dictates that both nations would support each other if either the Philippines or the United States were to be attacked by an external party. Philippine officialdom firmly believes that America’s military might is superior to any force on earth.

US President Joe Biden, State Department Secretary Antony Blinken, and Defense Secretary Lloyd Austin III have assured President Ferdinand Marcos, Jr. that the Mutual Defense Treaty will immediately take effect the moment a Philippine metropolitan territory or the island territories under its jurisdiction in the Pacific, or its armed forces, public vessels, or aircraft in the Pacific are attacked.

So, why upgrade our defenses when mighty Uncle Sam has got our back, ask our top officials rhetorically.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He is an avid reader of Philippine history.

Condo sale boosts AREIT’s Seda Lio acquisition fund

SEDAHOTELS.COM

LISTED AREIT, Inc. has generated P42.69 million from the sale of three office condominium units in Muntinlupa City, which will be used to fund the company’s acquisition of the Seda Lio resort hotel in El Nido, Palawan.

The condo units, located at Ayala-Life FGU Center Alabang, were sold to real estate developer Next Asia-Land, Inc. on Sept. 5, AREIT said in a regulatory filing on Monday.

ARET said the three condo units have an aggregate gross floor area of 339 square meters.

“The proceeds received from the sale of the three office condo units will be used in the acquisition of Seda Lio,” AREIT said.

In January, AREIT finalized the acquisition of Seda Lio resort hotel in El Nido, Palawan from Ayala Land, Inc. (ALI) unit Econorth Resort Ventures, Inc. for P1.19 billion.

AREIT is the real estate investment trust of ALI.

Seda Lio is a 153-room resort hotel that caters primarily to leisure tourists, families, social, and corporate events, and other visitors.

The acquisition is part of AREIT’s plan to increase its footprint and asset diversification.

For the first half, AREIT reported a 44% increase in net income to P2.9 billion, with revenues climbing by 43% to P4.2 billion.

AREIT is expected to grow its assets under management to P117 billion for 2024 upon regulatory approval of the asset-for-share swap with its sponsor, ALI, and its subsidiaries and related companies for P28.6 billion worth of prime assets.

These properties include the Ayala Triangle Gardens Tower Two Office building, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati, Seda Ayala Center Cebu, and a 276-hectare land in Zambales for solar power plant operations.

On Monday, AREIT shares fell by 1.39% or 50 centavos to P35.45 per share. — Revin Mikhael D. Ochave

TIFF 2024: Anderson .Paak’s K-Pops draws on an identity rooted in two cultures

TIFF.NET

TORONTO — Eight-time Grammy award winner Anderson .Paak hopes he “got it right” with his directorial debut K-Pops, saying he did his best to reflect the two cultures that make up his identity as the son of a Korean mother and African American father.

K-Pops, which premiered at the Toronto International Film Festival, is a coming-of-age film that tells the tale of BJ, a washed-up musician played by  .Paak who takes a drumming gig on a South Korean reality show.

BJ soon discovers he is the father of one of the contestants on the show, an aspiring musician played by 13-year-old Soul Rasheed, .Paak’s son in real life.

“I hope we got it right. We did our best making sure both cultures are proud,” .Paak said, walking the red carpet with his teenaged co-star on Saturday.

“I think it is a unique story that I got to tell it with my son and with my family. And it’s coming from the heart. It’s coming from a place of truth.”

While helping his on-screen son in his musical career, BJ is tempted to use the teen to help revive his own reawakened quest for stardom. But in the end, he chooses parenthood as his top priority, and the bonds deepen between the long-lost father and son.

.Paak, who is also one half of the musical duo Silk Sonic along with Bruno Mars, said his movie, which was shot on location in South Korea, grew out of YouTube sketches he created with his son during the pandemic.

“It was an awesome experience and I want to do more,” .Paak said, referring to their YouTube experiments. “I can’t think of any better way to just hang out with my son, get some quality time and bonding.”

.Paak co-wrote the screenplay with Khaila Amazan. The film also stars Yvette Nicole Brown, Jonathan “Dumbfoundead” Park, Jee Young Han, and Kevin Woo. — Reuters

CIMB Bank PH disburses more loans in 1st half

CIMB BANK Philippines, Inc. (CIMB Bank PH) recorded a 19% growth in loan disbursements in the first semester amid an increase in its customers.

The digital-only commercial bank’s loans stood at P31.9 billion in the first half of the year, up from P28.6 billion last year, it said in a statement on Monday.

CIMB Bank PH Chief Executive Officer Vijay Manoharan previously said they aim to disburse P75 billion in loans this year, which would mark a 23% growth from the end-2023 level.

On the funding side, CIMB Bank PH saw its deposit cash-ins surge by 69% year on year to P167 billion in the first half from P99.3 billion.

The bank is targeting a total deposit cash-in level of P500 billion by end-2024, which would be up by 200% from the 2023 level.

Meanwhile, the lender’s customer base expanded by 14% to 8.1 million from 7.1 million.

Loan customers also increased to 3.5 million from 2.6 million.

CIMB Bank PH aims to reach 8.5 million customers this year and grow its customers by a million annually.

It expects to log “significant,” above single-digit net income growth this year, it earlier said. — Aaron Michael C. Sy

PhilHealth’s dependence on the alcohol-tobacco tax, the Philippines Phillips curve

The use of the excess and idle funds of the Philippine Health Insurance Corp. or PhilHealth continue to be discussed in the country.

See these five recent reports in BusinessWorld: “DoF: Tapping GOCC funds keeps inflation from new taxes in check” (Sept. 5); “PhilHealth urged to increase benefits, suspend rate hike” (Sept. 8, a call by the Philippine Chamber of Commerce and Industry or PCCI); “Junk PhilHealth petition, SC told” (Sept. 8, a call by the Office of the Solicitor General); “PHL government urged to impose new taxes to fund health programs for poor” (Sept. 8, a call by the Action for Economic Reforms or AER); and “Patronage politics has caused the loss of health insurance coverage for millions of Filipinos” (Sept. 9, a “Yellow Pad” column by Juan Antonio Perez III).

Last week, in this column (“Sectoral parochialism vs fiscal realism, the case of the PhilHealth idle funds,” Sept. 5), I wrote that “the health sector has shown itself as being addicted to the gambling fund, the alcohol and tobacco tax fund, while at the same time lambasting alcohol and tobacco products. This is double talk and lacking intellectual honesty.”

Let us look at PhilHealth’s dependence on “sin tax” revenues. In 2021, total excise tax collection was P317.67 billion, of which 84% came from alcohol and tobacco taxes alone. In 2023, the total excise tax collection was P293 billion, of which 83% came from alcohol and tobacco taxes. A big portion of this goes to PhilHealth as the government’s subsidy for non-paying PhilHealth members like indigents and senior citizens.

Recently, tobacco tax revenues declined significantly, from P176 billion in 2021, to P160 billion in 2022, and only P135 billion in 2023. This is a direct result of higher tobacco tax rates, from P50/pack in 2021, to P55/pack in 2022, P60/pack in 2023, and P63/pack in 2024. Legal tobacco has become more expensive and illicit or smuggled tobacco has become more attractive with its retail price only around P45/pack vs legal tobacco’s cheapest at around P110/pack.

Alcohol tax revenue shows a consistent increase, mainly because it is more difficult, as it is bulkier, to produce and sell illicit or smuggled beer, gin, or brandy, than illicit tobacco.  I think actual tobacco tax revenues in 2024 will decline further to only around P120 billion. Why?

The actual excise tax collections (there is no breakdown by products) from January-July this year was only P167.48 billion, which is lower than the P174.68 billion collected in January-July 2023, which was in turn lower than the P180.46 billion collected in January-July 2022.

So, with the significant decline in tobacco tax and overall excise tax revenues in 2023, the projected budget for PhilHealth would decline from P100 billion in 2023 to P61 billion in 2024, and P74 billion in 2025 (see table).

Again, the Department of Finance (DoF) is correct in tapping the excess PhilHealth funds to finance certain projects under the unfunded appropriations. Not only because it avoids having to borrow anew and pay high interest payments, but also because it means the health sector from high dependence on alcohol and tobacco taxes while labeling the same as “sin, harmful, unhealthy” products.

The NGOs that double down on their lobbying for even higher tobacco tax rates are wrong and they seem to be the unintended big allies of the smugglers, terror organizations, and criminal gangs that are in the business of illicit tobacco. Because as legal tobacco becomes more expensive with higher taxes, cheap illegal tobacco becomes more attractive and more profitable for these criminal gangs and their protectors in government. The DoF’s tax revenue for each pack of illicit products sold on the market is zero.

Mr. Perez made several allegations against the DBM in his column, like “For 2025, DBM (the Department of Budget and Management) must explain why it has recommended a reduction of indirect contributors from 25,229,037 to 14,157,910.”

In a Facebook post by the DBM on Sept. 7, they said that the “DBM recommended the coverage of 21.1 million beneficiaries and it was Congress (that) reduced the recommended budget of [PhilHealth] in the FY 2024 GAA [General Appropriations Act] to P61.5 billion… The revised number of target beneficiaries of 10,626,874 (exclusive of PAMANA) came from the [PhilHealth] itself, not from DBM, given their reduced budget level in the FY 2024 GAA.”

So the claim that the DBM recommended 14.2 million beneficiaries was an error since the DBM actually recommended 21.1 million beneficiaries. See also this report in Philippine Star, “DBM debunks ‘fake news’ claiming 30 million Filipinos to lose PhilHealth coverage” (Sept. 8).

THE PHILIPPINES’ PHILLIPS CURVE
The Philippine Statistics Authority (PSA) last week released the inflation rate for August, and it was low at only 3.3%. Meanwhile, the unemployment rate for July increased to 4.7%.

One concept in Economics that relates to the jobs market and consumer prices is the Phillips Curve, developed by New Zealand economist William Phillips. It states that inflation and unemployment have an inverse relationship, that higher inflation is associated with lower unemployment and vice versa.

The curve itself is downward sloping. I plotted the Philippines’ inflation rate and unemployment rate from 1990-2023, or over 34 years. It seems that the inverse relationship between the two is confirmed in 24 out of the 34 years. The 10 years that were exceptions were 1991, 1998, and 2000 when both inflation and unemployment were going up, and 1992, 1993, 1999, 2006, 2007, 2015, and 2024 when both inflation and unemployment were going down (see the chart).

In cases where policies to produce low unemployment can lead to higher inflation, I would prefer to see this. So long as people have jobs, or they can shift from low-paying to higher-paying jobs, they can adjust to higher consumer prices.

 

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

World Risk Index 2024: Philippines still the most at-risk country for 16th straight year

The Philippines is the most at-risk country globally for 16 straight years, the latest edition of the World Risk Index (WRI) by the Institute for International Law of Peace and Armed Conflict and Bündnis Entwicklung Hilft (Alliance Development Works) showed. The report covers 193 United Nations member states based on 100 primary indicators and new methodology procedures that link to a country’s exposure to natural disasters and societal capacity to respond. On a scale of 0 (very low risk) to 100 (very high risk), the Philippines’ score worsened to 46.91 from 46.86 a year earlier, the highest among 193 countries in the report. Based on the longitudinal dataset (updated annually), the country has held the most at-risk spot since 2009.

World Risk Index 2024: Philippines still the most at-risk country for 16<sup>th</sup> straight year

PAL relaunches Clark-Siargao flights

PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE AIRLINES (PAL) is set to relaunch the operations of flights between Clark and Siargao as part of the company’s plan to expand its Clark hub, the flag carrier said.

“We are excited to be able to fly and welcome leisure travelers back to Siargao via Clark once again,” PAL Express President Rabbi Vincent L. Ang said in a statement on Monday.

PAL said it will start mounting its Clark-Siargao flights on Dec. 3, three times a week via the 86-seater De Havilland Dash 8-400 Next Generation aircraft to provide a direct service for passengers in Central Luzon, and Northern Luzon to Siargao.

“We are excited to be able to fly and welcome leisure travelers back to Siargao via Clark once again,” he said.

Luzon International Premiere Airport Development (LIPAD) Corp. said the launch of PAL’s new service from Clark to Siargao will enhance connectivity.

“Siargao enthusiasts can anticipate beginning their island getaway immediately upon arrival at Clark International Airport, where we practice stringent performance measures and monitoring to ensure fast airport processes and a seamless experience for all passengers,” LIPAD President and Chief Executive Officer Noel F. Manankil said.

LIPAD is the company that manages and operates Clark International Airport.

Currently, PAL offers flights from Clark to Cebu; Basco and Busuanga (Coron); and Caticlan (Boracay); while the airline offers flights to Siargao from Manila and Cebu. — Ashley Erika O. Jose

FNG’s Yume at Riverpark in Cavite seen completed by May 2026

YUME CLUBHOUSE LOUNGE

FEDERAL Land NRE Global, Inc. (FNG), a joint venture between local real estate developer Federal Land, Inc. and Japanese real estate firm Nomura Real Estate Development Co., said it has started construction on its residential project Yume at Riverpark in Cavite.

Yume is an 18-hectare horizontal residential project located within the 600-hectare Riverpark township in General Trias, Cavite.

FNG began construction after breaking ground on Aug. 27 and expects to complete the project by May 2026, William Thomas F. Mirasol, president and chief operating officer of Federal Land, the property arm of GT Capital Holdings, Inc., told BusinessWorld in an e-mail last week.

The price for a unit in Yume ranges from P15.9 million to P32 million, depending on the specific features and size of the unit.

It will have 296 lots spanning from 300 to 527 square meters (sq.m.).

“This landmark project marks FNG’s first venture into horizontal residential developments, combining the innovative design philosophies of Filipino and Japanese architects,” FNG said.

The company said Yume aims to be a Japanese-inspired neighborhood designed for families to start, grow, and thrive.

Its amenities include a clubhouse, lounge, function room, multipurpose hall, and wellness spa, which has a jacuzzi and sauna.

For outdoor amenities, residents will have access to a swimming pool, six pocket parks, kids’ central, outdoor fitness area that has jogging paths and a fitness station, multi-purpose court, open lawn, and a Japanese garden.

Mr. Mirasol said Riverpark is poised to be the “Next Gen City of the South” and is strategically located, ensuring convenience and ease for future residents and visitors alike.

“Not only is Yume at Riverpark a residential community that will have retail options, parks, sports areas, and even a school within the next-gen city, but it is also well-connected to Metro Manila thanks to major infrastructure projects such as the Daang-Hari Extension and Cavite-Laguna Expressway,” he said.

Residents will also have access to Muntinlupa-Cavite Expressway, Manila-Cavite Expressway, and Parañaque Integrated Terminal Exchange.

Central business districts such as Makati are 36 kilometers (about 22.37 miles [mi]) away from the property, Bonifacio Global City is 38 kilometers (about 23.61 mi), while Ortigas is 40 kilometers (about 24.85 mi).

Yume also has proximity to some essential facilities such as the Divine Grace Medical Center, The District Mall, SM Rosario, Vermosa Sports Hub, St. Francis of Assisi Parish, St. Edward School, and De La Salle Santiago Zobel Vermosa. — Aubrey Rose A. Inosante

TIFF 2024: Orlando Bloom pays the price for a shot at glory in The Cut

TIFF.NET

TORONTO — The Cut, which premiered at the Toronto International Film Festival last week, stars Orlando Bloom as an over-the-hill boxer with a dark past looking to make a comeback, but it is more a psychological thriller than a traditional sports story.

Made on a shoestring budget, The Cut focuses on the boxer’s inner battles. It is a deep dive into the tenacity of the human mind and its effect on the physical self.

Mr. Bloom plays a character named Boxer who must make some painful sacrifices to prepare for one last shot at fame and fortune in the ring. His foil is the maniac coach played by John Turturro who drives Boxer without pity, seeing the athlete as a pawn in his own quest for glory. The movie is punctuated by flashbacks to Boxer’s abusive childhood.

For Mr. Bloom, getting under the skin of his character was an obvious physical challenge, making him starve himself in order to achieve the drastic weight loss that the role demanded.

“It was a crazy regime to get down to that,” Mr. Bloom said on Friday, referring to his weight loss.

“I had underestimated how hard it is to make boxing work. There is a lot that goes into it, but I was grateful that I got to do it,” Mr. Bloom told the audience after the film’s screening.

The film also features Outlander star Caitriona Balfe as the Bloom character’s partner in a boxing gym.

Most of the film takes place in a hotel room, presenting a challenge to director Sean Ellis, whose credits include the crime drama Metro Manila (2013) and war movie Antropoid (2019).

“That was horrifying to me as I was thinking how can I make this look good,” he told the TIFF audience. “I had a zoom lens, and I had control over it all the time. And once we started shooting, I wanted to keep going at it.”

Mr. Turturro, whose extensive resume includes the 2023 television series Severance, said his character reminded him of his own experiences with overambitious and manipulative film directors who would go to any length to get what they wanted.

“I’ve worked with psychopathic directors in the ’80s, who were like possessive and they put you in dangerous situations,” he said. “This is a human thing that happens in life, and there is a bonding that happens.” — Reuters

BPI Wealth books P1 billion in AUMs for digital accounts

REUTERS

BANK of the Philippine Islands’ (BPI) wealth management arm BPI Wealth reached P1 billion in assets under management (AUM) for its digital accounts as of June, it said on Monday.

“Reaching P1 billion in AUM through digitally opened accounts is a strong validation that our digital initiatives are on the right path. It also signifies Filipinos’ readiness to adapt to technologies that allow them to take control of their financial futures through investments. Our commitment to sustainability through embracing digital solutions is resonating with our clients and driving growth for the business,” BPI Wealth President and Chief Executive Officer Maria Theresa D. Marcial said in a statement.

The accounts included are investments in unit investment trust funds and mutual funds, custody, and segregated portfolios opened and transacted online through e-Invest, BPI Wealth’s digital investment account opening platform.

BPI Wealth also recently launched a purely online end-to-end account opening process for its portfolio management accounts (PMA) as part of its digitalization push, it said.

Clients can open an investment portfolio and invest in various tenors of Treasury bills starting at P500,000. They only need one PMA to be able to invest in other available securities, such as preferred shares and corporate bonds.

“This new digital initiative exemplifies BPI’s commitment to providing clients with innovative and accessible financial solutions. We have a growing list of sophisticated investors who want a consolidated view of their assets in one account, which is the primary benefit of a PMA. Going fully digital now gives them the benefit of accessing this specialized investment vehicle at the comfort of their home, and at their fingertips,” Ms. Marcial said.

PMAs can be opened through e-Invest using Android and Apple devices or laptops and desktops.

Clients who open a PMA will also have a dedicated investment advisor who can provide personalized investment strategies suited for each client’s needs. — Aaron Michael C. Sy

20 years of celebrating peace

FREEPIK

September is National Peace Consciousness month in the Philippines, or simply, “Peace Month.” The goal is to make Filipinos aware on the importance of the peace process, and to make them commit to it.  This year marks the 20th year since this tradition started. What have we achieved thus far?

In peacemaking, we have signed a decent number of political settlements with armed rebel groups. The peace pact between the Philippine government and the Cordillera People’s Liberation Army (CPLA), a breakaway group of the Communist Party of the Philippines-New People’s Army (CPP-NPA)  was signed on Sept. 13, 1986 under the administration of President Corazon Aquino, and the closure agreement with the group (or the agreement that concludes the process) was signed on July 4, 2011 under the administration of President Benigno Aquino III.  The peace agreement with the Rebolusyonaryong Partido ng Manggagawa-Revolutionary Proletariat Army-Alex Boncayao Brigade (RPM-RPA-ABB), another break-away group of CPP-NPA, was signed on Dec. 6, 2000 under the administration of President Joseph Estrada.

The Tripoli Agreement between the Philippine Government, led by President Ferdinand Marcos, Sr. and the Moro National Liberation Front (MNLF) was signed in 1976, and the Final Peace Agreement, the closure pact with the same group, in 1996 under President Fidel Ramos. The Comprehensive Agreement on the Bangsamoro (CAB) between the Philippine government and the Moro Islamic Liberation Front (MILF) was signed in 2014, again under President Benigno Aquino III.

In peacekeeping, we have created several mechanisms, mostly under the umbrella of peace agreements, to manage and control the armed hostilities between state forces and armed rebel groups. The International Monitoring Team (IMT) led by military forces from Malaysia, Brunei, and Libya (joined later by Norway and Indonesia), was operationalized in October 2004. Working parallel with the IMT, the Coordinating Committee on the Cessation of Hostilities (CCCH) was created in 2016, and the Ad-Hoc Joint Action Group (AHJAG) in 2002. Both bodies are peopled by representatives of the Philippine government and the MILF. These three mechanisms were created to monitor the ceasefire between parties, and to manage the security, peace, and order of the communities affected by the armed hostilities between the state and non-state actors.

For both peacemaking and peace keeping, the main actors are state and non-state armed groups. The main agenda is to forge a political settlement and put an end to the armed hostilities, with the long-term goal of permanently removing the use of force and violence in politics. Peacebuilding, the third pillar of the peace process, is focused more on communities and key leaders.

Peacebuilding includes all the efforts of various groups — state and non-state actors — to create the conducive condition for peacemaking to move forward, and for peacekeeping to effectively manage the security situation. Peacebuilding is broader in scope and substance and targets the transformation of norms and values of people. And peacebuilding work requires time to build confidence and trust. Many small victories have been achieved because of the combined peacebuilding work, mostly under the radar efforts of various groups.

Some products of peacebuilding engagements are the following. In 2009, an armed group leader in Sulu decided to lay down his arms and help his community to improve its condition. He was able to convince the heads of families in his community to stop bringing out their firearms in public. A peace manifesto signing ceremony was held to show everyone in the community that they would abide by the agreement. In 2013, a commander in Lanao del Sur decided not to join the Zamboanga siege (fighting between government forces and MNLF forces) despite the prodding of his higher-ups in the organization; his group would voluntary turn-in their weapons two years later, in 2015, as a sign of commitment that they no longer wished to fight the government. The Cordillera People’s Liberation Front transformed itself into a civilian organization called the Cordillera Forum for Peace and Development (CFPD), totally shedding the “liberation army” nature of the group.

Indeed, the Philippines has achieved many milestones in the peace process. Many of the achievements are closely watched and even emulated in other settings with similar contexts. Despite the differences in politics, the thread that binds all the Philippine administrations is their unwavering commitment to the peace process. But there is still much more that needs to be done.

The way ahead is the question. Currently, the peace process is managed by the Office of the Presidential Adviser on Peace, Reconciliation, and Unity (OPAPRU), an office created by an Executive Order and which reports directly to the Office of the President. The office is meant to be a temporary creation and will cease to exist once all peace agreements are forged, all political commitments are delivered, all conflict-affected communities have improved their quality of life, and all ex-combatants have been re-civilianized. All these, obviously, are tall orders.

The peace process, to be deemed concluded, requires deep commitment from political leaders to carry on and sustain the gains of past administrations. It requires more resources to allow conflict-affected communities to catch-up with other communities in terms of development. It requires an effective strategy to secure the safety of ex-combatants against liquidation attempts by their former comrades for betraying the “revolution.” It requires a more nuanced approach to ensure that human rights are protected and promoted, especially in a highly politicized, ideologically fueled environment. It requires a delicate but deliberate approach to manage transitional justice, healing, and reconciliation of families and communities divided by armed conflict. It requires a comprehensive peace education program for the next generations — so that they learn from the past and avoid making the same mistakes again.

Instead of closing the peace process office in the future, the opposite is what is actually needed. We need to make the peace office a permanent fixture in the bureaucracy. We need a Department of Peace — a department that is created by legislation, with broader authority, resources, and mandate.

As we welcome the Peace Month, and as we celebrate the 20th anniversary of Proclamation 675, s. 2004, we must collectively reflect — how can we strengthen our peace? In my view, creating the Department of Peace is the first step. It is an investment for the future, and it is our contribution and solidarity to international peace.

 

Jennifer S. Oreta is an associate professor of the Department of Political Science, and the director of the Ricardo Leong Institute for Global and Area Studies of the Ateneo de Manila University.

joreta@ateneo.edu