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Fitch Solutions sees fiscal deficit falling below ceiling programmed for this year

THE PHILIPPINES will likely fall short of its budget deficit ceiling for 2019, Fitch Solutions said, explaining that it expects the government “to underspend” this year.
“We forecast the Philippines’ budget deficit as a share of GDP (gross domestic product) to come in at 2.9% in 2019, unchanged from our 2018 estimate. The shortfall would mark a share increase from 2.2% of GDP in 2017,” Fitch Solutions said in a report published on Tuesday.
The 2019 national budget assumes a wider fiscal gap at P624.4 billion equivalent to 3.2% of GDP, with authorities expecting a sustained rise in government spending as the “Build, Build, Build” infrastructure drive is expected to accelerate further.
The fiscal gap stood at P477.2 billion as of end-November, shy of the P523.7-billion ceiling programmed for 2018. State revenues were up by 16% year-on-year at P2.618 trillion, versus a 24% surge in disbursements worth P3.095 trillion, according to the Bureau of the Treasury.
The Department of Budget and Management has put together a P3.575-trillion spending plan for the year, but this awaits ratification by Congress. Secretary Benjamin E. Diokno warned in November that failure to pass the budget on time will mean a delay in the rollout of new projects, as operating on a re-enacted budget will leave them unfunded.
“The government is likely to underspend its budget in 2019 but slower-than-expected revenue growth means that the deficit will still come in at close to three percent,” the research unit of the Fitch Group said in the report.
The economic think tank believes that the fiscal gap will steady due to “slower-than-expected” revenue growth.
Succeeding tax reform packages remain pending in the legislative mill, even as most of them are projected to be revenue-neutral, compared to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act that took effect in January 2018 and is expected to bring in additional revenues.
Fitch Solutions also flagged “rising” risks, saying: “We believe that there is no imminent threat to macroeconomic stability from the government’s wider fiscal shortfall in the near-term, but note that the Philippine economy appears to be overheating and downside risks are increasing.”
Sister firm Fitch Ratings raised concern in December last year that the Philippine economy has been showing signs of overheating, as reflected by double-digit rates of increase in bank lending as well as a ballooning external trade gap. Still, the credit rater kept the Philippines at “BBB” — notch above minimum investment grade status — with a stable outlook.
The government is setting sights on 7-8% growth GDP this year, following a downward-revised 6.5-6.9% projection for 2018. A sustained pickup in infrastructure investment is expected to fuel growth, at a time when consumer spending is softening as prices are on the rise. — Melissa Luz T. Lopez

Money supply picks up in November even as loan growth eases

MORE MONEY circulated in the economy in November last year, even as loan growth continued to ease in the wake of a fifth increase in benchmark interest rates by the Bangko Sentral ng Pilipinas (BSP) that month.
Domestic liquidity or M3 — the broadest measure of money in an economy — increased by 8.4% that month, slightly up from 8.3% in October. This translates to P11.251 trillion, according to latest data the central bank released on Tuesday.
Month-on-month, liquidity edged up by 0.5%.
Strong credit demand fueled the sustained increase in liquidity at the fastest pace in two months.
Domestic claims saw a softer rise of 14.6% in November, versus the preceding month’s 15.2% increase.
Meanwhile, net claims on the national government went up by a faster 12.1% compared to October’s 11.2%.
Net foreign assets in peso terms contracted anew in November, with a 3.2% year-on-year decline compared a five percent reduction previously.
Foreign assets maintained by the BSP grew in November as dollar reserves increased at a time of a stronger peso. However, those held by banks posted a slower increase due to a softer pickup in loans and investments in debt papers, the central bank added.
Easing liquidity growth came after the BSP fired off a 25 basis point (bp) increase in policy rates at its Nov. 15 meeting, which followed back-to-back rate increases worth 50 bp each in August and September to rein in inflation expectations as consumer prices rose the fastest in nearly a decade.
Some market players have said that money supply had been “tight” late last year, as global and local yields have been on the rise.
Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said the latest liquidity data boost chances of a cut in banks’ required reserves.
“In line with this development and given that inflation slowed in December 2018 and is now forecasted to slide back within target as early as 1Q 2019, the probability that the BSP unloads its much-anticipated 2019 reserve requirement ratio cut by 1Q has increased…” Mr. Mapa said, referring to BSP Governor Nestor A. Espenilla, Jr.’s plan to eventually bring minimum reserves down to single-digit levels from 18% currently.
A one percentage point cut in bank reserves unlocks roughly P100 billion in cash which banks can deploy for loans and investments.
LOAN GROWTH SOFTENS
Credit extended by banks increased by the slowest rate in over two years given slowdown in both business and consumer segments, the central bank said.
Outstanding loans grew by 16.8% in November, slipping from October’s 18.1% climb and marking the mildest hike since April 2016. Month on month, loans rose by 0.3%.
Computed to include reverse repurchase agreements, bank lending growth eased to 15.4% from 17.9%.
Loans for production continued to account for the bulk of credit, up 17.2% in November from 18.7% the preceding month. Loans for construction posted the biggest rise at 38.1%, followed by financial and insurance activities (29.4%); wholesale and retail trade, repair of motor vehicles and motorcycles (19.7%); manufacturing (16%); and real estate (12.5%), among other sectors, the BSP reported.
Consumer loan growth decelerated to 13.8% from October’s 14.6%. — Melissa Luz T. Lopez

What could go wrong in 2019? Eurasia Group outlines the risks

HONG KONG — The global geopolitical environment is at its most dangerous in decades, according to Eurasia Group, the consultancy founded by Ian Bremmer.
Here is a look at Eurasia’s top predictions for risks that could impact the world in 2019.
BAD SEEDS
Global decision-makers are so consumed with addressing — or failing to address — the daily crises that arise from a world without leadership that they’re allowing a broad array of future risks to germinate, with serious consequences. The outlook for institutions like the European Union (EU) and the World Trade Organization, as well as the US-China relationship and that between Russia and its neighbors, is negative.
US-CHINA RIVALRY
There’s been a long-held view in Washington and Beijing that the best way to manage their rivalry was to try to keep the relationship as amicable as possible, for as long as possible. That’s changed, especially in the United States, which is embracing an openly confrontational approach under President Donald Trump amid a months-long trade war between the world’s two largest economies. Expect more discord in the arenas of technology, economics and security.
CYBER GLOVES OFF
This year is likely to be a turning point in cyber competition. For the first time, the United States will be undertaking a serious effort to establish real deterrence by projecting its cyber power in much more assertive ways. This show of strength is not only unlikely to create an effective system of global deterrence, but it could well backfire.
EUROPEAN POPULISM
When the EU holds parliamentary elections in May, euro-skeptics from both the left and right will win more seats that ever before. In the past, fringe parties gained support by blaming Brussels for domestic problems. Now they’re winning by promising to ignore EU rules. The unprecedented influence of these new parties will undermine Europe’s ability to function.
US HOME FRONT
This will be a chaotic year for US domestic politics. While the odds of Mr. Trump being impeached and removed from office remain low, political volatility will be exceptionally high.
INNOVATION’S WINTER
Eurasia predicts a reduction in the financial and human capital available to drive technological development. It blames three factors: security concerns leading states to reduce their exposure to foreign suppliers; privacy concerns causing governments to more tightly regulate how their citizens’ data can be used; and economic concerns leading countries to put up barriers protecting their emerging tech champions.
COALITION OF THE UNWILLING
Mr. Trump’s election was a blow to the decades-long commitment by Washington to protect a US-led global order. Since then, Mr. Trump has collected some fellow travelers — a coalition of world leaders unwilling to uphold the those principles, with some even bent on bringing the system down. These leaders will have an increasingly disruptive effect on the international order.
MEXICO
The country’s new president, Andres Manuel Lopez Obrador (AMLO), begins his term with a degree of power and control over the political system not seen in Mexico since the early 1990s. For AMLO, making Mexico great again means taking it back to the 1960s and 1970s — with more spending, more interventionist and lower quality policies. Until now, Mexico had been in a different political and economic cycle than the rest of Latin America, with a lower category of political risk. This year, it will look much more like its southern neighbors.
UKRAINE
President Vladimir Putin sees Ukraine as vital to Russia’s sphere of influence. Their shared historic, political and cultural links have undergirded Russia’s actions since long before the Ukraine’s 2013-2014 Maidan revolution. Mr. Putin believes Russia should have a big say in Kiev’s future. But that will pose a problem in the March presidential elections and ensuing parliamentary ballot, in which Russian interference — whether to support or undermine particular candidates — is a certainty.
NIGERIA
Nigeria faces its most fiercely contested election since the country’s transition to democracy in 1999. One candidate is President Muhammadu Buhari, an elderly and infirm leader who lacks the energy, creativity, or political savvy to significantly move the needle on Nigeria’s most intractable problems. The other is former Vice-President Atiku Abubakar, long dogged by allegations of corruption, which he’s denied.
BREXIT
UK Prime Minister Theresa May has almost no chance of passing her unpopular withdrawal agreement when she puts it to a vote later this month. That promises a very messy 2019 in Europe. For Eurasia Group, Brexit was an asterisk because three years after the vote, almost any Brexit outcome remains possible. — Bloomberg

Aboitiz unit hopes to start operating two airports by end-2019

THE infrastructure unit of Aboitiz Equity Ventures, Inc. (AEV) hopes to start operating two regional airports by the end of 2019, including the P42.7-billion Laguindingan Airport in Misamis Oriental.
Aboitiz InfraCapital, Inc. (AIC) said in a statement on Tuesday that it has clarified some of the Department of Transportation (DoTr)’s questions on its original unsolicited proposal for the upgrade, operations, maintenance, and expansion of the Laguindingan Airport last December.
“It is not a revised offer but a response to DoTr’s requests [for additional info],” AIC Chief Operating Officer Cosette V. Canilao was quoted as saying in a statement.
The company also said it has identified engineering firm Arup as consultant for the technical studies and master plan for the Laguindingan proposal. Arup has experience in designing international airports, including Terminal 5 at John F. Kennedy Airport in New York and the Beijing Capital International Airport Terminal 3.
AIC is also upbeat on its proposal for upgrade, operations, maintenance, and expansion of the Bohol-Panglao International Airport. The company was granted original proponent status (OPS) for the project last September.
After getting OPS, the proposal will now go through the National Economic Development Authority for evaluation. It will then be subjected to a Swiss challenge where other firms submit competing bids that the original proponent AIC will have the right to match.
“We are hopeful that the government will allow us to operate these two regional gateways this year,” said Ms. Canilao, who was the head of the government’s Public-Private Partnership Center for five years until March 2016.
Both airports are part of AIC’s bundled proposal worth P148 billion in April last year to modernize four regional airports, the other two being the Iloilo International Airport and Bacolod-Silay Airport. The company envisioned to transform the facilities into world-class airports that “every Filipino deserves and can be proud of.”
The bundled proposal, however, was rejected, as the DoTr favored the submission of separate proposals for each project. The Aboitiz-led firm’s bullish stance on regional airport projects is in line with the government’s infrastructure program, as well as its decision to align its priority projects with that of the requirements of the country, namely water and transport projects.
AIC is also part of the group of seven conglomerates forming the Ninoy Aquino International Airport (NAIA) consortium, which proposed to rehabilitate, operate, and expand the country’s premier gateway.
The consortium was granted OPS by the Manila International Airport Authority last September.
“We are hopeful that the government will grant the consortium the notice to proceed this 2019 so that we can commence the expansion of NAIA to accommodate 65 million passengers per year,” NAIA Consortium Spokesperson Jose Emmanuel P. Reverente earlier said in a statement. — Arra B. Francia

PAL eyes deal with strategic investor within 1st half

By Arra B. Francia, Reporter
PHILIPPINE Airlines, Inc. (PAL) looks to complete a deal with a strategic investor within the first half of the year, which could help boost its operations as the flag carrier adds new routes to both Asian and North American destinations.
PAL President and Chief Operating Officer Jaime J. Bautista said the airline is hopeful the deal will be closed soon, without disclosing further details on how the investor will enter the firm.
“We’re targeting first half of this year… Up to 40% stake, that’s the maximum that we can offer. As per the law, foreigners can own only up to 40%,” Mr. Bautista told reporters after a press conference announcing the airline’s new routes in Manila on Tuesday.
PAL unveiled on Tuesday new non-stop routes from Manila to Hanoi in Vietnam, Phnom Penh in Cambodia, and New Delhi in India within the first half of the year, in a bid to increase its passenger volume to 19 million in 2019. This is about 12% higher than the 17 million passengers the airline said it ferried in 2018.
The direct flight to Hanoi will start on March 31, operating four times weekly using the 156-seater Airbus A320.
The route between Manila and Phnom Penh will commence on April 1, utilizing the Airbus 321 Classic five times a week with a capacity of up to 199 seats.
PAL will also revive its direct flights to New Delhi, India, after the route was canceled in 2011 due to the small market at the time. The company is still talking with Indian authorities regarding its final slot and operational clearances, but targets to begin the service by April.
Manila-New Delhi flights will use the 168-seater Airbus A321neo, offering full-flat business class seats with Wi-Fi connectivity.
“Our goal is to strengthen PAL’s network and establish the Philippines as a true gateway hub to Southeast Asia and South Asia for the North American market,” Mr. Bautista said during the press conference for the new routes.
Mr. Bautista said the Philippines’ strategic location between the Pacific Ocean and Asian continent makes it the logical gateway for Americans and Canadians who want to visit India and other Asian capitals.
PAL is planning to launch two more new routes from secondary hubs such as Clark and Cebu to Northeast Asian destinations. At the same time, the company is also ramping up flights to several destinations, including routes from Cebu to Nagoya that will now service daily flights instead of four times a week.
Nonstop flights from Manila to Osaka will now increase to 11 from seven; and Manila to Bangkok will have 25 from 21 flights.
There will be now 11 weekly flights from Manila to Kuala Lumpur, from seven flights at present. Manila to Jakarta flights will increase to 10 a week from seven, while Manila to Los Angeles will now have 17 weekly flights from 14. With the expanded flight frequencies, PAL said it will now have 31 weekly flights to California alone, and daily flights to New York and Toronto.
PAL’s Manila-New York nonstop flight is the longest commercial route operated by any airline to New York’s John F. Kennedy Airport.
To support the increased number of flights, PAL expects to receive six more aircraft within the year, including two Airbus 350s, two Airbus A321neos, and two next generation Q400 Turboprops.
Mr. Bautista said they are also working with the Israeli government to launch a direct flight to the country.

Toyota Motor PHL orders recall of 31 Lexus LS 500 units

TOYOTA Motor Philippines Corp. (TMP) said Lexus Manila, Inc., one of its local dealers, ordered a recall of certain units of LS 500 models due to an improper programming of their start-stop systems.
In a letter to the Department of Trade and Industry’s (DTI) Consumer Protection Group Undersecretary Ruth B. Castelo, TMP First Vice-President Lawyer Rommel R. Gutierrez said some 31 units of the luxury sedan produced from Dec. 19, 2017 to June 28, 2018 will be reprogrammed.
The LS 500, which was introduced into the Philippine market in August 2017, cost as much as P9.268 million.
The vehicle is equipped with a 3.5-liter V6 twin-turbo engine and a start-stop system that automatically stops and restarts the system when the vehicle is stationary so as to cut fuel use and emissions.
“Due to improper programming of the engine control computer, there is a possibility that when the engine restarts within a specific time range after the engine stops, an incorrect intake air volume could be calculated, potentially causing the engine to stall during acceleration from the stationary position,” Mr. Gutierrez said in the letter posted on the DTI’s website.
The re-programming will be done at no cost to affected customers.
TMP said it will notify customers through a letter to invite them to bring the subject units to the company’s Lexus dealer based in Taguig City for the service. — JCL

Where is art headed in 2019?

BUSINESSWORLD asked some of the country’s artists, and art champions about their outlook for Philippine culture and arts for this year (and beyond). The answers were as varied as their practices.
“I look forward that we continue to grow and become diverse and to focus more on our cultural identity and how to cultivate its content and history. We should not only focus on form and physical beauty of an artwork and its commercial value.” — Jojo Austria, a visual artist based in the USA
“The direction of art is more collective, collaborative, and communal. This direction is more sustainable, developmental, and progressive.” — Renato Habulan, artist, curator, and educator
Naniniwala ako na ang artist ay mayroong malaking responsibilidad sa kanyang kapaligiran, maging ito ay sa politikal, ekonomiya o mga social problems. Bukod sa pagbibigay ng aliw, gaya ng isang pinta o disenyo ng mga bagay at inspirasyon, ang mga artists ay dapat maging kritikal at sensitibo sa bawat bagay at malasakit upang buhayin ang diwa ng mamayan para sa pagsusulong ng bawat bansa sa pamamagitan ng sining. Bagamat sa panahon ngayon ng kalakaran sa art scene sa Pilipinas nakikita natin na maganda ang responde ng mga kolektor maging ang appreciation [nang] mga tao sa mga art exhibit, lalo na sa mga art fairs, malaki man o maliit, pero sana wag laging itrato na ang art ay for investment. Ang 2019 ay napakahalagang taon upang tayo ay magbuklod magkaisa at magtulungan upang baguhin ang sistema sa pamamagitan ng pagpapahayag ng ating saloobin lalo na sa politika at pagpapahalaga sa likas yaman ng bansa. (I believe that the artist has a big responsibility to his surroundings, be it political, economic, or social problems. Aside from giving comfort, like a painting or design of an object, and inspiration, artists should be critical and sensitive to each thing and be compassionate in order to raise the spirit of the people for the promotion of every country through art. Although today’s trend in the Philippine art scene we can see that the collectors respond well and even appreciation [of] people in art exhibits, especially in art fairs, big or small, but hopefully they will not always treat art as for investment. 2019 is a very important year for us to unite and work together to change the system by expressing our attitude especially in politics and appreciation of the country’s natural resources.)” — Thomas Daquioag, artist and art educator
“Philippine Art will evolve and expand all over the world no matter what the political situation is. Actually, it has been [at] a time of great repression that the artist has worked freely without having to think of the commercial benefit as an allure. We have particularly gone all over Southeast Asia and some artists even venture in Europe, America and Australia. Our artists have been asked to exhibit in Biennales and other major exhibitions. At present, the Internet plays such a huge part in the exchange of dialogue and the dissemination of information and with that, I believe that Philippine Art will progress in the years to come.” — Silvana Diaz, art enthusiast, collector, and gallery owner
“[Tanghalang Pilipino] will forever be committed to doing Theater, in the form of productions and training programs, that highlight the immense artistry, historical and contemporary sociocultural and educational value of the diverse Philippine Theater genres, even as we continue to acknowledge the timeless value of world theater arts… TP is not digressing from its original vision-mission of using theater as an instrument for developing a humanistic Philippine arts and culture program by proudly promoting the artistic excellence of our Filipino artists-playwrights, directors, actors, designer, musicians, dancers; using theater for cultural education and promoting the richness of our cultural heritage and therefore enhancing our sense of national identity; promoting the viability of theater as a creative industry; and promoting theater arts as a cultural form that has a universal humanistic value.” — Fernando “Tata Nanding” Josef, Tanghalang Pilipino artistic director
“For 2019, we are expecting an avalanche of creative expressions from the seven fields of art. In theater, there will be the newbie one-time producer, indie groups, school-based, to the tried and tested companies with many decades of experiences all vying for an audience for their own brand of genre which would supposedly transpose into sales. Revenues generated by various theater groups are not made available to the general public — that is why no one really knows if they a profit or simply lose [money] and vanish. Be it a straight play or a musical aimed for children and adults, there is an array of choices for the picking — but this will really all boil down with a theater buff’s pocket if it can hold till the next paycheck and the next and the next. In a month, like come February, there is an expected 10-12 productions that will open. Economics will rationalize one’s decision if he could and can opt to spend his extra pesos on a theater treat. But for how many can it translate to affordability if more equally exciting shows are due to be unveiled in March, April, and up until December?”
“Theater has to survive. With funds, of course. The art of selling a specific production always pose as a challenge for the marketing and sales team… It’s a dog-eat-dog world out there because financial resources are simply fewer in terms of corporate support. It’s the least of their priorities. The unnamed philanthropists will or should come in and help the industry to keep going…”
“In dance, with it’s very restricted audience, the challenges are even much harder to cope [with] relative to budget. Productions have been cut — from the usual average of six and reduced to three at the very least.”
“For the visual arts community, the scope is much larger… because of the various modes of expression each artist churns [out] for their buyer or a collector… Over the past decade, many new artists came to fore and a new generation of buyers also made the scenario buzz as to who would be the best to invest their money with [an eye to] future payback. That’s commercialism vs. art.”
“In film, there is a renaissance of more thought-out and well-crafted genres that either spell millions in ticket sales or the other side of the pendulum.”
“For sociopolitical reasons in the seven fields of art — specially with this year’s elections — there will be bolder, [more] up front, in-your-face satires, parodies, or socio-realism that will bring added color to the norm. Expect this to happen from the artists who painstakingly translate their ideals into their work of art: theater, dance, song or poetry, literature, visual or sculpture, film or photography. Philippine arts and culture this year is going to be so alive, noisy, empowering, and conscious of the specific market they shall serve. And here’s hoping that corporations can extend at least financial support to the artists whose love, passion and dedication is unquestionably the best. Yes, it’s going to be an entertainment, but it will spell relevance.” — Joselito “Toots” Tolentino, art enthusiast and publicist
Maki-Improv, Huwag Matakot! is just a small and young group, and we are not yet that influential in the scene, so I don’t know if we can talk on behalf of the improv community. But Maki is committed to creating art that is fun but at the same time has politically charged commentary. Many artists right now are becoming more political, and that has always been the role of artists. It is a very important role, especially with the upcoming elections. When we speak our truth, we will inevitably encourage others to voice out theirs, and that chorus of voices can become a game changer, [especially] in the [upcoming] elections. At the Manila Improv Festival on March 27 to 31, Maki is one of the many improv groups from all over the world who will perform at the PETA Theater Center. Our show’s theme is ‘elections.’…. We hope our show sparks discussion, and we hope that it will inspire people to go out and vote.” — Jasmine Cruz, president and co-founder of Maki-Improv

Honestbee provides injury policy for workers

HONESTBEE, an online concierge and delivery service provider, said it now provides personal injury insurance coverage for its employees while they are fulfilling or delivering orders.
In a statement, Honestbee said its has enrolled thousands of its shoppers and delivery personnel in a group personal injury policy.
“The policy covers a range of situations while on the job, such as medical expenses, hospitalization, temporary incapacity, permanent disablement and even death. The policy is effective immediately,” the company said.
The Singapore-based company said the policy is being implemented in the 16 cities in eight countries where it operates, namely the Philippines, Singapore, Japan, Thailand, Taiwan, Malaysia, Indonesia, and Hong Kong. In the Philippines, Honestbee is available in Metro Manila and some parts of Cebu.
Crystal Gonzalez, managing director of Honestbee Philippines, said the company believes in providing safety and security to its employees.
“We currently have hundreds out on the field who continue to work hard in giving convenience and high quality service for our customers,” she was quoted as saying in a statement.
In Asia, Honestbee works with 10,900 stores and restaurants. It has been operating in Philippines since 2017, partnering with small and medium-sized restaurants, supermarkets, and businesses such as Robinsons Supermarket, Robinsons Selections, and Ministop.
Customers can shop for groceries or order food from restaurants on the Honestbee app or website, and have it delivered.

Art tilt hopes to tap youth’s passion

BECAUSE THE future belongs to the dreamers and the youth, this year’s theme for the Visual Arts Competition (VAC), a partnership between PLDT and Directories Philippines Corp. (DPC), is “Creating the Legacy, Creating the Future.”
With the theme in mind, the DPC-PLDT Visual Arts Competition is encouraging young Filipino artists all over the country to imagine what tomorrow could be like and then transfer their vision onto canvas.
Emily Abrera, secretariat head of the 33rd DPC-PLDT Visual Arts Competition and the former chairwoman of the Cultural Center of the Philippines, said that the committee had to think of a theme that had not been used before. As VAC has been around for more than three decades, this makes it hard to think of a novel theme.
Ms. Abrera said that the theme is asking the youth this vital question: “Ano ang mahalaga sa iyo?” (What is important to you?)
“One is never too young to think of their legacy,” said Ms. Abrera during a press conference held at New World Makati last month.
She added during her speech: “In a rapidly changing world that is increasingly being driven by younger generations, we need to be more aware of the impact that our day-to-day life decisions and the values we hold dear will have on the future shape of our society and the sustainability of our planet.”
But around the same time as the competition’s launch, a study on Filipino youth and dreams came out that said seven out of 10 of today’s teenagers don’t have dreams anymore. Poverty and the lacks of self-esteem, passion, and opportunity were mentioned as among the top factors leading to Filipino teenagers’ lack of dreams and personal goals, said The Dream Project PH Founder Prim Paypon of the study which covered 614 Filipino teenagers from different socioeconomic classes across the country.
All this leads one to ask: Can art ignite passion? How can art competitions like VAC be reconciled with the survey’s results?
Reacting to the survey, VAC project head Ruben Tangco could only say, smiling, “Well, that’s unfortunate,” but he still looked hopeful.
The organizers are still hopeful about the competition’s goals. The VAC head said this year’s theme might improve Filipino youth’s self-esteem and ignite their passion, which the study said they are lacking.
Art competitions can not only inspires dreamers and artists, but also open opportunities for anyone. Discovered talents do not necessarily come from Metro Manila, said Mr. Tangco.
When the DPC-PLDT VAC started 33 years ago, it was a competition controlled by entries from Manila’s schools, said Mr. Tangco, but not anymore.
While the majority of the winners were from Far Eastern University (with nine out of 32 winners), the University of Santo Tomas (two out of 32), and University of the East (three out of 32), Mr. Tangco said students from the province are starting to gain recognition.
The DPC-PLDT VAC aims to help the young to create, imagine, and work on the future and create their own legacy, big or small.
To join this year’s competition, Filipino students aged 18 to 24 must be enrolled in any accredited tertiary school with a Fine Arts program.
The submission of paintings is from Feb. 25 to March 1, however, students’ art must be submitted through their schools.
Fine Arts colleges, departments, and schools nationwide are encouraged to choose as many as five oil or acrylic paintings by their students as official entries.
Besides the cash prize of P100,000, the winning works will become covers of the Yellow and White Pages.
In 2012, the DPC-PLDT VAC was also open to photography, but this was shortlived said Mr. Tangco, because of incidents of fraud including the use of Photoshopped images and recycled entries.
“It’s hard to police,” said Mr. Tangco.
For the full competition mechanics, visit www.visualarts.ph. — Nickky Faustine P. de Guzman

Globe improves network coverage in Cebu

GLOBE TELECOM, Inc. on Tuesday said it has boosted mobile network coverage in two barangays in Cebu City.
In a statement, Globe said it had established two additional cell sites in Barangay Bonbon and Guba, addressing “dead spots” in the hilly areas of Cebu especially during calamities and disasters.
The telecommunications company said it plans to build more cell towers in Barangay Tabunan, Sirao, and Babag.
“This is part of our vision to provide each and every Filipino access to critical telecommunications services, especially those who live in underserved, sparsely-populated areas, as they need connectivity the most,” Globe General Counsel Froilan M. Castelo was quoted as saying.
Globe has been undergoing a massive network modernization program, spending about 32% of revenues a year on this effort.
As of end-September 2018, the company said it has ”deployed close to 12,000 LTE sites by fully utilizing 700 MHz, 2600 MHz, and other spectrum assets.”
In August, Globe gained approval from the Securities and Exchange Commission (SEC) for the establishment of a separate tower company expected to “help speed up the building and deployment of cellular towers in the country.”
For the first nine months of 2018, Globe’s net income jumped 17% to P15.15 billion, from the P12.99 billion recorded a year ago. Consolidated service revenues rose 9% to P103.3 billion during the January to September period, “fueled by the surging data revenue growth across all segments.”

Art criticism essay contest announces gallery shows to be reviewed

PORTRAIT of Purita Kalaw-Ledesma by Carlos “Botong” Francisco — KLFI.PH

THE ANNUAL Ateneo Art Awards-Purita Kalaw Ledesma Prizes, which recognizes art criticism in the country, is now open for submission of entries.
The articles, which should be no longer than 1,000 words, must be submitted on or before May 31, 5 p.m.
Interested participants write about any of the following exhibitions:
Bakas Bagtas Bukas by the Anino Shadowplay Collective, ongoing at the Cultural Center of the Philippines (CCP) until Feb. 3;
CONTINUUM: The Art of Alan Rivera A Reconstruction of Memory, ongoing at the CCP’s Bulwagang Fernando Amorsolo (Small Gallery), Pasilyo Victorio Edades (4F Hallway Gallery) and 4th floor Atrium until Feb. 3;
Graphic Design Exhibition which will be on view at the CCP’s Bulwagang Juan Luna (Main Gallery) and Pasilyo Guillermo Tolentino (3F Hallway Gallery) from March 19 to May 26;
Transpersonal, an exhibit featuring artists and artist collectives from the UK and Philippines done in collaboration with the University of the Arts London, on view until Feb. 1 at the 1F and 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
Rendering 2017-2018, an exhibit by Gerardo Tan in collaboration with Felicidad Prudente and Sammy Buhle, which is run from Feb. 9 to March 7 at the 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Allison Wong David solo show, which will run from March 26 to May 31 at the 1F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Jason Dy solo show, which will run from March 16 to April 16 at the 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
Sa Dagat at Bundok: Wynn-Wynn Ong, until March 2, at the Basement Galleries of the Metropolitan Museum of Manila;
Hau Chiok: Sixty Years of Creativity, until Jan. 15, at the Tall Galleries of the Metropolitan Museum of Manila;
Gendered Bodies in Southeast Asia: Works by Women Artists, from Jan. 29 to March 9 at the Galeriya Bangko Sentral ng Pilipinas of the Metropolitan Museum of Manila;
100 Years of Deutscher Werkbund, March 28 to June 1, at the Ground Floor Galleries of the Metropolitan Museum of Manila;
Locsin and Santos: Structures of Social Engagement, April 25 to May 25, at the White Cube Gallery of the Metropolitan Museum of Manila;
Arte Povera Exhibition, Feb. 7 to May 12, at the Museum of Contemporary Art and Design (MCAD), College of St. Benilde;
Images of Nation: F. V. Coching, Komiks at Kultura, until Feb. 3 at the Ayala Museum;
Territory: Gus Albor, Works from 1969 — 2018, until Feb. 10 at the Ayala Museum, and;
Gold in our Veins: Mark Lewis Lim Higgins, Feb. 18 to April 14 at the Ayala Museum
The writers, of any age, must be based in the Philippines. To avoid conflict of interests, writers and columnist from any broadsheets and local/international magazine cannot participate, but contributors, defined as any person whose written works is published with a byline but not identified as a columnist may join.
The Purita Kalaw-Ledesma Prizes in Art Criticism honors the memory of Purita Kalaw-Ledesma, art patron and founder of the Art Association of the Philippines (AAP). Ms. Ledesma was instrumental in the development of Philippine art of the post war period through the establishment of the AAP and her patronage of both established and emerging artists.
For inquiries, send an e-mail to aag@ateneo.edu or call the Ateneo Art Gallery at 426-6488 or 426-6001 loc. 4163.

Gov’t fully awards bonds as demand soars

THE GOVERNMENT fully awarded the 10-year Treasury bonds (T-bond) it placed on the auction block on Tuesday amid overwhelming demand as investors sought to park their funds in longer-dated instruments.
The Bureau of the Treasury (BTr) raised P20 billion as planned through the fresh 10-year debt papers on Tuesday. It received tenders totalling P52.989 billion, more than twice the amount the government intended to borrow.
The 10-year T-bonds fetched a coupon of 6.875% with an average rate of 6.829%, 14.6 basis points lower than the 6.975% fetched during the previous auction.
To take advantage of yesterday’s strong demand, after the auction, the Treasury decided to open a tap facility to raise another P20 billion in 10-year papers carrying the same rate.
The facility will be limited to the 10 firms who have been named as market makers by the Treasury, who are given privileges like this in exchange for obligations like submitting rate bids within a prescribed range.
Based on the PHP Bloomberg Valuation Service Reference Rates, the 10-year debt notes were quoted at 6.976% yesterday.
Following the auction, National Treasurer Rosalia V. De Leon said the Treasury was pleased with the result of the bond offering.
“We now see that the appetite is really toward the long end — on the 10 years this time,” Ms. De Leon told reporters yesterday. “It came out again [from] the significant downtrend of inflation. Even in terms of the path, it is expected that it will continue to go down…”
Inflation continued to ease last month, registering a 5.1% print in December. This was slower than market expectations as well as the 5.2-6% estimate range of the Bangko Sentral ng Pilipinas.
For 2018, headline inflation averaged 5.2% — faster than the central bank’s 2-4% target range and the highest since 2008’s 8.2%.
The central bank is expecting inflation to return “to below four percent by around the end of Q1 2019,” well within the 2-4% target band of the government.
“We also see that there’s a liquidity onshore as well… Hopefully for the next auctions it will be replicating this kind of auction outcome,” Ms. De Leon added.
Sought for comment, bond traders said the auction result was “well within expectations” of the market given the improved inflation outlook.
“As expected, it was a pretty good auction since CPI (consumer price index) outlook is better,” a trader said in a text message.
The government plans to raise P360 billion this quarter through domestic means. Some P240 billion will be borrowed through 12 weekly T-bill auctions during the three-month period, while P120-billion worth of T-bonds will also be issued through six fortnightly auctions.
The state wants to borrow P1.189 trillion in 2019 to fund its spending plans. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors.
However, the 2019 national budget has yet to be passed by Congress and signed into law, leaving the fiscal program hanging so far. — Karl Angelo N. Vidal

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