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Fitch eyes better asset quality for PHL lenders

BW FILE PHOTO

THE ASSET QUALITY of Philippine banks is expected to improve in 2025, supported by strong economic expansion, loan growth and lower interest rates, Fitch Ratings said in a note on Thursday.

“We expect nonperforming loan (NPL) ratio improvements across five out of 14 larger Asia-Pacific markets in 2025 before rising to nine in 2026,” the credit rater said. “The largest near-term improvements are likely to be in India, Vietnam and the Philippines, mostly driven by robust economic expansion and loan growth, with the Philippines also benefiting from lower interest rates.”

Data from the Philippine central bank showed that the banking industry’s bad loan ratio rose to 3.6% in October from 3.47% in September and 3.44% a year ago. This was the highest bad loan ratio since May 2022, matching the June 2022 level.

Soured loans rose by 1.3% to P524.31 billion in October from P517.45 billion a month earlier. Year on year, bad loans jumped 16.7%.

“We expect stable or declining credit costs in most Asia-Pacific banking systems due to gross domestic product growth and steady unemployment,” Fitch Ratings said.

The Development Budget Coordination Committee last week narrowed its growth target to 6-6.5% this year from 6-7% after slower-than-expected third-quarter growth.

Banks in emerging markets including the Philippines could also benefit from a potential increase in US tariffs due to a stronger dollar, which could prompt central banks to increase their borrowing costs.

“This would result in a positive impact on banking sector revenue,” the credit rater said. “Indonesia stands out as an exception, where banks generally benefit from lower rates due to their specific asset/liability configuration. Higher interest rates can lead to increased bank revenue, but they are also likely to inhibit loan demand and elevate asset-quality risks.”

The debt watcher also expects double-digit loan growth for Philippine lenders amid a higher risk appetite in the next two years due to robust economic growth, competition and expanding financial inclusion. These have motivated banks to tap riskier segments to boost their loan growth.

Fitch Ratings cited Philippine banks’ stronger appetite for higher-risk, unsecured retail loans and loans to small and medium enterprises.

However, the credit rater said they could face asset quality risks if the business environment becomes more volatile.

“Philippine banks have historically demonstrated greater vulnerability in a less benign environment, although mainly to segments other than the bigger banks’ exposure to large conglomerates,” it said. — Aaron Michael C. Sy

ACEN acquires 49% stake in Bangladesh solar project

IBV ACEN Renewables Asia is a joint venture between ACEN Renewables International Pte. Ltd., a unit of ACEN, and ib vogt (Singapore) Pte. Ltd. — ACENRENEWABLES.COM

ACEN Corp.’s joint venture, IBV ACEN Renewables Asia Pte. Ltd., has finalized the acquisition of a 49% stake in a 70-megawatt solar project in Bangladesh, the Ayala-led company announced on Thursday.

IBV ACEN has met all conditions under the sale and purchase agreements with Bangladesh holding firm Sonagazi Sun Holdings Pte. Ltd., ACEN said in a regulatory filing on Thursday.

While the company has not provided specific financial details, it said that the acquisition price is “less than 10% of the book value of ACEN as of 30 September 2024.”

IBV ACEN Renewables Asia is a joint venture between ACEN Renewables International Pte. Ltd., a unit of ACEN, and ib vogt (Singapore) Pte. Ltd.

Ib vogt Singapore is an affiliate of ib vogt GmbH, a German company that specializes in developing and delivering large-scale turn-key photovoltaic plants.

The company has built or has projects under construction worth 4.3 gigawatts (GW), with a project pipeline of 55 GW.

In its previous disclosure, ACEN said that ACEN Renewables International was planning to invest as much as $18 million (approximately P1.04 billion) for the construction of the solar project.

The investment aligns with ACEN’s expected contribution of as much as $200 million in equity investment to accelerate the deployment of renewable energy in Asia.

The joint venture will focus on shovel-ready projects in Bangladesh, Laos, Cambodia, Vietnam, Indonesia, Malaysia, and other countries in the Asia-Pacific region, with a minimum target operational capacity of 1,000 MW.

ACEN, the listed energy platform of Ayala Corp., boasts a portfolio of about 6.8 GW of attributable renewable capacity in operation, under construction, and committed projects.

“ACEN’s renewable capacity has grown to almost 7 GW, in line with the strong momentum behind the energy transition in the region. The company continues to focus on execution, especially for projects in construction and under development,” ACEN President Eric T. Francia said.

For the nine months ending in September, the energy company’s attributable net income increased by 23.9% to P8.14 billion from P6.57 billion a year ago.

Gross revenues went down by 2.4% to P27.96 billion from P28.65 billion last year.

On Thursday, shares in the company declined by 5.96% to close at P3.47 each. — Sheldeen Joy Talavera

State-of-the-art yoga studio in Alabang

PHOTO FROM JAL YOGA PHILIPPINES

SELF-CARE and holistic wellness have risen in Filipinos’ priorities, manifesting in an increase in running clubs and biking activities. Yoga studios are no exception, reflecting how conscious people now are of their wellbeing.

“When you breathe deeply and move mindfully, you can experience true calm,” said yoga instructor Rajan Singh, who has been teaching yoga for over a decade.

Aside from maintaining a fit physique, it allows practitioners to “destress and have a fresh start.”

Mr. Singh is just one of the many instructors teaching at the Jal Yoga studio in Alabang, Muntinlupa, which offers yoga, barre, and pilates all in one place.

BusinessWorld was able to try out one of his sessions to see what a yoga class in a state-of-the-art facility is like. The particular session was titled Yin & Yang, which the studio recommended given this writer’s mild scoliosis.

Its description reads that “the cooling Yin and warming Yang aspects of yoga” will allow one to find balance. This is done by working on the connective tissues (considered the Yin) in conjunction with the muscles (considered the Yang), to “build strength, stamina and flexibility.”

The class was small, with only three attendees that Sunday afternoon, which allowed Mr. Singh to focus on each one. Before teaching in the Philippines, he worked as an instructor all over the world — in India, Singapore, Dubai, and Hong Kong, to name a few places — and it shows. Those nervous about not being able to do the poses well can expect the instructor to be a helpful guide, showing patience if support is needed.

Afterwards, the effect of the Yin & Yang being activated resulted in a good pain (especially the next day!) and a feeling of increased flexibility. While it makes for a positive, novel one-off experience, it’s better if you can allot time and resources to practice yoga long-term, to get more of the benefits.

FIRST IN THE COUNTRY
Established in 2018, Jal Yoga opened at two locations in Singapore with the aim of providing practitioners with expansive offerings of yoga, Pilates, and barre. It then expanded to Malaysia, Indonesia, and Dubai, only setting up shop in the Philippines in August this year.

“It is remarkable how so many Filipinos now recognize the importance of wellness, pursuing more physical activities like running and biking which have been proven to have a positive impact on mental wellness,” said Jasmine Loh, one of Jal Yoga’s founders.

She pointed out that the studio in Alabang has state-of-the-art infrared heat panels “for the perfect and comfortable temperature.”

BusinessWorld found this an interesting aspect of the class. At first, it makes one wonder if they had forgotten to turn on the air conditioning, but it turns out that is the point. The gentle warmth of the room adds to the experience of holding tough positions and feeling the joints and muscles tighten and relax.

“The infrared panels radiate therapeutic infrared rays which help weight loss, blood circulation, improve skin and hair, and reduce fine lines and wrinkles,” Ms. Loh explained.

For Jal Yoga founder Pardeep Fogat, also an accredited yogi, the studio is state-of-the-art because of its bespoke classes — including Infra Hatha, Vinyasa, Ashtanga, Kinetic Yoga, and even Aerial Yoga — taught by expert instructors, combined with the infrared panels.

“Our infrared technology makes it easier for newcomers to be more comfortable in doing the exercises. After a session or two, you’ll immediately feel the difference,” he said.

Their goal can also be found in their name, Jal, which means “water” in Hindi. “Like the water that adapts to any form, flows to the deepest depths, and traverses the greatest of heights, we aim to guide anyone who walks through our doors in their journey towards wellness,” he added.

Aside from yoga, the barre classes help participants achieve “a lean and toned physique using their own body weight,” while the Pilates classes focus on “improving overall strength, balance, mobility, and well-being.”

The studio is at the ground floor of the One Trium Tower in Alabang, Muntinlupa City. Their prices range from P422 to P504 per class, while their unlimited class membership costs P5,000 a month. Jal Yoga Philippines’ full list of classes and amenities can be found on its website, jalyoga.com.ph, and its Facebook and Instagram pages. — Brontë H. Lacsamana

Cebu Pacific to boost seat capacity by up to 26% in 2025

CEBUPACIFICAIR.COM

CEBU PACIFIC is set to increase its monthly seat capacity to 2.9 million by January next year from 2.3 million currently, an airline official said.

“We are starting to reach higher and go more global in promoting the Philippines — not just for domestic travel, but for international inbound travel as well,” Cebu Pacific Chief Marketing and Customer Experience Officer Candice A. Iyog told reporters on Wednesday.

“By January next year, we will have grown the network by 130% year on year, while seats will increase from 2.3 million a month to 2.9 million,” she added.

“January 2025 is a snapshot; we intend to grow our seats by around 24%-26% next year,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said.

The company plans to increase its current 104 routes to 116 routes and aims to boost its monthly flights from 12,000 to 15,000-16,000, according to Ms. Iyog.

Cebu Pacific also plans to further expand its Manila hub, while also strengthening its hubs in Cebu and Clark and open new bases in Davao and Iloilo.

According to the budget carrier, its Cebu hub seats have expanded by 67% to 790,000 in December from 473,000 in January, while flight count has grown by 54% to 6,000 per month from 4,000 in January.

For its Clark hub, seats more than doubled to 161,000 in December from 79,000 in January, while flight count jumped by 97% to 872 from 441 in January.

Meanwhile, its Davao and Iloilo hubs also saw improvement, data from the company showed.

Seats in the Davao hub increased by 81% to 289,000 in December from 160,000 in January, while flight count went up by 57% to 1,345 from 852 in January.

The Iloilo hub has also expanded, with seats increasing by 67% to 178,000 in December from 106,000 in January, while flight count rose by 54% to 851 in December from 552 in January.

For the year, Cebu Pacific is expecting a total of 18 new aircraft deliveries, further expanding its fleet network to a total of 95. Of the projected fleet deliveries, 15 aircraft have arrived to date, and three more are expected to be delivered by yearend, Ms. Iyog said.

To recall, the company finalized its aircraft order in October with Airbus SE, making it the largest aircraft order in Philippine history.

Cebu Pacific, operated by Cebu Air, Inc., committed to purchasing up to 152 aircraft from Airbus, valued at P1.4 trillion ($24 billion).

The company’s agreement with Airbus covers 102 A321 new engine option (NEO) and 50 A320neo family aircraft.

The airline currently serves 35 domestic and 26 international destinations across Asia, Australia, and the Middle East. — Ashley Erika O. Jose

Transmission rates down in November

PHILIPPINE STAR/MICHAEL VARCAS

TRANSMISSION CHARGES for the November billing period, which will be reflected in December’s bills, decreased due to a slight decrease in ancillary service (AS) costs, according to the National Grid Corp. of the Philippines (NGCP).

The overall transmission rates decreased by 7.44% to P1.1966 per kilowatt-hour (kWh) in the November supply month, based on NGCP’s presentation at a briefing on Thursday.

Transmission charge refers to the cost of delivery of electricity from power generation facilities to power distribution systems.

Julius Ryan D. Datingaling, head of business and regulatory development at NGCP, said that transmission wheeling rates, or what NGCP charges for its primary service of delivering power, declined by 0.96% to P0.4957 per kWh in November from P0.5005 per kWh a month earlier.

AS charges, on the other hand, decreased by 12.84% to P0.5699 per kWh from P0.6539 per kWh a month ago.

AS charges pertain to the cost for the power sourced from the reserve market and those from providers with bilateral contracts with NGCP. It provides support services used to balance and stabilize the grid during power supply-demand imbalances, according to the company.

The grid operator earlier noted that it does not earn from AS and did not benefit from the increase in prices as it is a pass-through cost given to generating companies.

Transmission charges account for 3% of a consumer’s monthly electricity bill, according to NGCP Spokesperson Cynthia P. Alabanza.

Generation charges, on the other hand, share the bulk of the total electricity rate or more than 50%. — Sheldeen Joy Talavera

Entertainment News (12/13/24)

Ben&Ben featured on Times Square billboard

AWARD-WINNING Filipino band Ben&Ben has achieved a new milestone, appearing on a Times Square billboard for Spotify. This high-profile feature is part of a campaign to promote their third studio album, The Traveller Across Dimensions. The band’s new album, released on Nov. 29, has garnered widespread traction for its expansive concept and sonic experiments. The campaign in Times Square marks a significant step in expanding Ben&Ben’s global presence, bringing their unique sound to new audiences worldwide. Ben&Ben is set to bring the album to life with their first arena concert on Dec. 14 at the Mall of Asia Arena in Pasay City. The concert will be a blend of live music with state-of-the-art multimedia elements. The Traveller Across Dimensions is now available for streaming on all digital platforms via Sony Music Entertainment.

Apl.de.Ap Foundation backs students’ Christmas song

THE Apl.de.Ap Foundation International and One Down Media have joined forces to release “It’s That Time of Year,” a new Christmas song performed by over 3,000 students from the Sisters of Mary Schools in Cavite, Philippines. Each stream of the song helps fund housing, meals, and education for children in need. This track is designed to become an annual tradition, and the masters of the song have been donated to the school, ensuring a sustainable, recurring gift every holiday season. The students aren’t just performing; they’re learning about the art of making music. Apl.de.Ap, founder of the foundation, said: “This song not only captures the spirit of Filipino Christmas but also gives these students a chance to see their creativity recognized on a global stage.” The music video, produced by One Down and filmed on location in Oxnard, California, will premiere on One Down’s YouTube channel on Dec. 12. Featuring young local dancers, families, and real people, it tells the story of a lonely grandmother rediscovering holiday joy. The song itself was produced by Grammy-winning artists Apl.de.Ap and Keith Harris, alongside multi-platinum songwriter and producer David “DQ” Quinones, songwriter Johnny Black, and recording engineer Edgar “Artek” Sinio, and is a seamless collaboration between world-class talent and aspiring young voices. For over 30 years, the Sisters of Mary Schools have provided free, high-quality education, housing, and meals to children from impoverished families. Having supported over 60,000 children since their founding, the schools boast an 86% success rate in helping graduates break the cycle of poverty. “It’s That Time of Year” is now streaming on Spotify and other platforms. Donations can be made at https://www.zeffy.com/donation-form/aplfi-x-som-x-one-down.

Iconic FPJ films to premiere on GMA in 2025

GMA NETWORK and FPJ Productions, Inc. have announced a partnership to broadcast Fernando Poe, Jr.’s (FPJ) iconic films in the FPJ sa GMA program set for 2025. The new program will feature a selection of FPJ’s box-office hits, offering a nostalgic experience for longtime fans and introducing his legendary works to a new generation. The partnership was sealed in a contract signing on Dec. 3, attended by GMA Network President and Chief Executive Officer Gilberto R. Duavit, Jr., along with key executives. Representing FPJ Productions were Senator Grace Poe and FPJ Productions President Jeffrey Stevens G. Sonora, among others. This partnership also celebrates the 20th anniversary of FPJ’s passing.

Knock2 teams up with RL Grime, announces global tour

ELECTRONIC MUSIC star Knock2 has collaborated with trap producer RL Grime on the new single, “come aliv3,” featuring vocalist Abi Flynn. This track is the third single from Knock2’s debut album, nolimit. To celebrate the album release, Knock2 will embark on the Knock2: nolimit TOUR, starting in Vancouver, British Columbia, in February 2025. The tour will visit major cities including New York, Sydney, Chicago, Toronto, Denver, Austin, Vancouver, and Perth, showcasing his new stage production, The Stack. For tickets, visit https://nolimitmuzik.net/.

Party Favor bids farewell with final EP

DANCE MUSIC artist Party Favor is saying goodbye to the scene with his final EP, The Party Never Dies, released on Dec. 6 through Ultra Records. This final project wraps up his journey in the electronic music industry. To celebrate the release and his career that spans over a decade, an “honorary funeral” music video has been created, featuring appearances by over 20 industry artists such as Valentino Khan, Bijou, and Rossy Kate. Party Favor, known for his innovative blend of trap, bass, and house music, has helped shape the dance music landscape. For more updates check, partyfavorfuneral.com.

Anger at CEOs goes beyond the healthcare industry

FREEPIK

THE PHONES at corporate security firms are ringing off the hook. Security chiefs at major organizations are convening calls to trade notes. Company websites are being scrubbed of photos of their executives.

This is only the beginning of what’s likely to be a major ramping up of corporate security protocols across the country. The shooting of UnitedHealthcare CEO Brian Thompson in the middle of midtown Manhattan has boardrooms and C-suites rightly spooked. But it’s really the level of outrage that’s being directed at the company, not the killer, that has executives on edge. The public has seized on this moment to air its long list of grievances against what it views as a broken healthcare system. (For more on this, read my colleague Lisa Jarvis’s excellent column.*)

But if corporate America’s directors and top executives are only talking about and investing in security practices, they’re treating the symptom rather than the underlying disease. The issue goes deeper than just the healthcare industry, encompassing a broader business world that the public increasingly says it distrusts. “Companies need to acknowledge that the root cause of this [anger] is not treating humans with dignity and respect,” says Alison Taylor, New York University business school professor and author of Higher Ground: How Business Can Do the Right Thing in a Turbulent World.

I spent some time this year trying to make sense of why Americans’ faith in big business has seriously eroded over the last few decades. As I reported then, the percentage of Americans who say they have “a great deal” or “quite a lot” of confidence in major companies is today only 16%, about half the rate of 25 years ago, according to Gallup. We need only look at a few key numbers to understand where this sentiment originates:

The top 1% now hold a greater percentage of wealth than the entire middle 40%; 30 years ago, the reverse was true. To get to this point, the wealth of the very richest had to grow exponentially faster than that of the poorest.

Corporate profits now make up a larger share of GDP, while worker compensation has lost ground. In the 1980s, after-tax corporate profits accounted for 5.5% of GDP, according to David Kelly, chief global strategist with JPMorgan Asset Management; by 2023, they had reached nearly 10%. Over the same time period, worker compensation declined from 55.8% to 52.1% of GDP.

In 1965, the CEO-to-worker pay ratio was 21-to-one, meaning it would take 21 years for a typical employee to match what their CEO made in a year. In 2022, the ratio was 344-to-one, according to the Economic Policy Institute, with a projected average compensation of CEOs at the 350 largest publicly owned US companies at $25.2 million.

The average American probably can’t rattle off these stats — but they may feel their implications in their day-to-day life. As I wrote earlier this year, for many ordinary people, it seems like the US economy and the companies they work for are breaking the covenant to provide “a society where a job and hard work would let you pay your bills, maybe buy a house, and where, regardless of background, each generation could advance by building on the achievements of the last.”

There will be the temptation to button up security and call the problem solved, to blame social media for eroding the discourse and giving people a platform to be their worst selves. Understandable impulses, but ones that miss an opportunity.

The alternative is for companies to look squarely at this anger and it take seriously. Outbursts of anti-corporate sentiment have happened before: the Occupy Wall Street movement, for one. And they’re likely to keep happening more frequently and — unfortunately, violently — unless the business world does something to address the ways it has exacerbated the income gap and the feeling that fatter corporate profits come at the expense of everything and everyone else.

Bloomberg News has reported that security is already up, with median spending by S&P 500 companies that disclosed security costs doubling from 2021 to 2023 to almost $100,000, according to Equilar. Among those at the top end is Meta Platforms, Inc. CEO Mark Zuckerberg, who received $23.4 million last year from the company for his and his family’s personal security. He is also one of the super-rich to reportedly have built a luxury survivalist bunker.

These fortresses might save the wealthiest Americans from doomsday, but it’s only putting them further out of reach — literally and figuratively — of the workers and consumers who power their companies.

BLOOMBERG OPINION

*Read the column here: https://tinyurl.com/29427m6q.

AboitizPower energizes its Negros Occidental solar farm

ABOITIZ Renewables, Inc. (ARI), the renewable energy arm of Aboitiz Power Corp. (AboitizPower), has energized its 173-megawatt-peak (MWp) Calatrava Solar Project in Negros Occidental.

“Calatrava is our fifth energized solar facility and the largest capacity thus far in AboitizPower’s growing solar generation portfolio,” ARI President James Arnold Villaroman said in a statement on Thursday.

Since the start of the year, AboitizPower has energized a total of 512 megawatts (MW) of energy projects. This includes the 159-MWp Laoag Solar and 94-MWp Cayanga-Bugallon Solar power plants in Pangasinan.

It also activated the 17-MW Tiwi Binary Geothermal Power Plant in Albay, and SN Aboitiz Power’s 24-MW Magat battery energy storage system in Isabela.

The company recently switched on the 45-MWp Armenia Solar Project in Tarlac.

“This project (Calatrava Solar Project) would not be possible without the help of the National Grid of Corp. of the Philippines. They have helped us energize the facility to deliver power through the Calatrava substation,” the company said.

At present, AboitizPower has over 1,000 MW of disclosed projects from various indigenous energy sources, while constantly pursuing opportunities to grow its portfolio for solar, hydro, geothermal, wind, and energy storage systems.

The company has set a target of expanding its renewable energy capacity to 4,600 MW by 2030.

At the local bourse on Thursday, shares in the company dropped 0.67% to close at P37.25 each. — Sheldeen Joy Talavera

Philippine banks’ assets expand to P26.41 trillion

BW FILE PHOTO

THE PHILIPPINE banking industry’s total assets rose by 9.8% year on year as of end-October, Bangko Sentral ng Pilipinas (BSP) data showed.

Preliminary data showed banks’ combined assets increased to P26.41 trillion as of end-October from P24.04 trillion a year prior.

Month on month, however, total assets inched down by 1.2% from P26.74 trillion as of end-September.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses.

The banking sector’s total loan portfolio inclusive of IBL and RRP jumped by 11.5% to P14.06 trillion as of October from P12.61 trillion a year ago.

Net investments, or financial assets and equity investments in subsidiaries, climbed by 12.1% to P7.84 trillion from P6.99 trillion a year earlier.

On the other hand, cash and due from banks stood at P2.43 trillion as of end-October, down by 10.7% from P2.72 trillion a year prior.

Net real and other properties acquired went up by 7.3% to P112.74 billion from P105.1 billion.

Banks’ other assets jumped by 21.8% to P1.96 trillion at end-October from P1.61 trillion a year earlier.

Meanwhile, the total liabilities of the banking system rose by 9.5% to P23.1 trillion from P21.1 trillion in the year-ago period.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher asset level as of end-October came on the back of higher loans as the recent reserve requirement ratio (RRR) cut allowed banks to ramp up their lending activities.

“This also reflects the continued growth in banks’ earnings in recent months that also helped in increasing capital and also loanable funds,” he added.

Bank lending grew by 10.6% to P12.5 trillion in October, separate BSP data showed, while the Philippine banking system’s net profit rose by 6.4% to P290 billion in the first nine months of the year.

The central bank slashed the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% from 9.5% effective Oct. 25.

On the other hand, Mr. Ricafort said the month-on-month decline in assets may have been due to disruptions caused by the series of typhoons that struck the country during the month.

BSP data showed that the month-on-month drop in banks’ assets was largely due to a decline in the sector’s total loan portfolio to P14.062 trillion as of October from P14.42 trillion as of September.

“The decline in the total loan portfolio came mostly from a 62% drop in RRPs with the BSP, likely due to banks pulling out their funds following the interest rate cuts,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said..

The BSP has cut borrowing costs by 50 bps since it began its easing cycle in August, bringing the policy rate to 6%. — Luisa Maria Jacinta C. Jocson

Kraven The Hunter tells villain’s origin story with gangsters and gore

LONDON — Kraven The Hunter will not be your typical Marvel Comics adaptation, with an R rating that allowed filmmakers to include more gore and construct it like a gangster film, its director says.

In the Philippines, the Movie and Television Review and Classification Board has given the film an R-16 rating.

British actor Aaron Taylor-Johnson takes on the lead role in the origin story, which looks at how Kraven’s difficult relationship with his gangster father Nikolai Kravinoff, played by Oscar winner Russell Crowe, sets him on a dangerous path to becoming one of the world’s most feared hunters.

“We’ve structured it as a gangster film… but it is also… using this canon of Marvel characters that brings… another level of storytelling to it,” director J.C. Chandor told Reuters.

“The superhero genre is structured around violence and… what the R rating allowed us to do is be a little bit more honest with that violence… So in this film, you’re going to see some blood. It’s a little stylized, but it’s also more realistic, quite frankly.”

Mr. Taylor-Johnson trained to put on size to play the bulky Kraven, whose first lines in the movie are in Russian.

“We were taking that Marvel comic book character but taking him to a world that felt grounded in reality and… focusing in on… his back story,” he told Reuters. “I do believe you feel empathetic towards him, and yet he is killing (umpteen) different people… My character wants to be nothing like his father and ultimately becomes far, far worse.”

The 34-year-old has previously been cited by British media as a potential contender to play suave spy James Bond.

Asked what it was like to play a villain, he said: “It’s definitely interesting when it comes with multiple layers… There’s a darkness that he has to try and harbor with and come to terms with.”

The film, which also stars Ariana DeBose and Fred Hechinger, is now showing in Philippine theaters. — Reuters

Untapped job-creation potential seen in sciences, biotechnology

UNSPLASH

PHILIPPINE sciences are being held back by shortcomings in infrastructure and the dearth of incentives, limiting the sector’s capacity to unlock jobs and investment, industry representatives said.

“The limited career opportunities in the biopharmaceutical sector hinder the development of future scientists and experts, preventing them from gaining experience in good clinical and manufacturing practices,” Diana M. Edralin, president of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), said in an e-mail.

“This not only undermines the potential for high-quality job creation within the country, but also represents a missed opportunity to position the nation as a clinical trial hub in Southeast Asia.”

Raul V. Destura, founder and chief executive officer of biotech startup Manila HealthTek, Inc., said the Philippines does not lack graduates and experts needed to expand its science and biotechnology sector.

“Actually, there are a lot of scientists who are really well-trained,” Mr. Destura told BusinessWorld on the sidelines of an event last month.

“It’s not really a shortage (that’s the problem,) but the lack of additional slots for them.”

Mr. Destura, who is also a medical doctor, said science graduates typically venture into the medical field or work as a research assistants or professors.

“But there is a subset of people who want to become researchers, scientists, inventors, biotechnologists. The current landscape is not enough to absorb all of these people,” he said.

Manila HealthTek, Inc. develops, manufactures, and tests portable diagnostic kits for selected infectious diseases affecting both human and animal health.

“The more we expand, the better-positioned we are to provide opportunities for our great Filipino scientists who can actually find careers in science… and not leave the country,” Mr. Destura said.

Meanwhile, Ms. Edralin, who also serves as the vice-president of the European Chamber of Commerce of the Philippines, cited the need for government support for innovation to attract more biopharmaceutical investment.

“Our country has the needed expertise, hospital facilities, and desirable demographics to support clinical trials for various conditions. However, despite these advantages, we acknowledge a concerning decline in our regional standings for clinical trials,” according to Ms. Edralin.

According to the PHAP, the Philippines used to rank second in the region in the conduct of clinical trials. It currently ranks fourth, behind Singapore, Thailand and Malaysia.

The competitiveness of Philippine-based clinical trials are also hampered by challenges in review timelines, limited infrastructure and support mechanisms, and the lack of publicly available disease registries, Ms. Edralin said.

There is also a need to harmonize regulatory pathways to streamline the approval process for clinical trials, especially for drugs for public health emergencies and rare or neglected diseases, she added.

“For competition to be vibrant, government spending must increase, pooled procurement must be implemented, and coverage to outpatient medicines must be expanded.” — Beatriz Marie D. Cruz

Unpacking the Filipino Dream: Optimism meets reality

FREEPIK

The Boston Consulting Group (BCG)’s latest research, “The Filipino Dream,” paints an inspiring picture of what gets Filipinos going: the aspirational dream of financial security in health emergencies and entrepreneurial passion. These dreams manifest the long-enduring strength and creativity of Filipinos, especially when it involves systemic and economic challenges that require the people to creatively overcome them. As we review this study, we can praise BCG for a brilliant analysis yet critically examine some conclusions that might differ from on ground realities in the Philippines.

Indeed, as we celebrate the findings of this study, it is very important to temper this optimism with a critical look at realities that may not exactly agree with the report’s conclusions.

CELEBRATING FILIPINO RESILIENCE
The report’s findings that 58% of Filipinos prioritize financial security for healthcare emergencies and 56% aspire to start their own businesses resonate deeply within the national psyche. Filipinos have long been known for their ingenuity and resourcefulness, often rising above challenges with a smile and an entrepreneurial spirit. The segmentation of dreamers into Providers, Trailblazers, Guardians, and Rebuilders offers a nuanced understanding of the diverse motivations across demographics.

BCG’s methodology, combining clustering and sentiment analysis, deserves praise for its rigor. It captures insights from over 1,400 respondents and gives a voice to the rural sector, which speaks of shared optimism and unique struggles that define the Filipino experience. The finding that 68% of Filipinos are optimistic about the coming year, despite significant challenges, underscores a remarkable spirit of hope.

It is quite striking that 58% of Filipinos dream about financial security in case health emergencies arise. It reflects growing consciousness of the risks brought about by unexpected medical costs, thereby being a critical step to advocating for better healthcare access. Programs like Universal Health Care (UHC) and initiatives such as expanded coverage under PhilHealth have shown good promise to ease burden. However, for many Filipinos, these benefits are unattainable. Long waiting times, insufficient hospital capacity, and the high cost of specialty care often leave patients relying on personal savings or informal systems, such as paluwagan (an informal group savings/lending system).

Moreover, rural areas, where access to healthcare facilities is limited, face even steeper challenges. This reality stands in contrast to the optimism reflected in the study. While progress has been made, the persistent gap in healthcare access raises the question: Are Filipinos truly empowered to tackle health emergencies, or are they simply becoming more adept at navigating an inadequate system?

It may also be argued that while financial security ranks as a top aspiration, the study’s optimism about institutional collaboration appears somewhat detached from realities on the ground.

For example, the reliance on informal savings mechanisms such as paluwagan is a reflection of distrust in formal financial systems. This is not a minor systemic hurdle but a systemic issue, compounded by inconsistent service delivery, lack of accessible financial products, and gaps in financial literacy.

However, starting a business is a worthwhile dream, and the question is whether the ecosystem for entrepreneurship is capable enough to foster such dreams. The reality is that credit access is limited, taxes have high compliance costs, and government support is usually lacking. These realities will temper the optimism about micro-entrepreneurship, and there is a growing need to focus on some of the structural challenges in more depth.

THE ENTREPRENEURIAL SPIRIT: A DOUBLE-EDGED SWORD
The dream of entrepreneurship, shared by 56% of respondents, reflects the Filipino people’s inherent creativity and drive for independence. This finding aligns with the visible rise of small businesses across the country, particularly during the pandemic, when Filipinos turned to micro-enterprises as a lifeline. From online sellers to food stalls, entrepreneurship has undeniably fueled economic activity.

Yet, this optimism calls for a reality check. Starting a business in the Philippines is not without significant barriers. The country’s ranking in the Ease of Doing Business Index, though improved in recent years, still points to challenges such as bureaucratic red tape, high startup costs, and limited access to financing.

Moreover, most entrepreneurs are informal entrepreneurs. They lack legal protection or financial security. Digital platforms such as GCash and Shopee have enabled small businesses, but many Filipinos do not possess the digital tools or the literacy to succeed in that ecosystem. In celebrating entrepreneurship, we must also talk about the systemic barriers which make it difficult for so many Filipinos to scale up their ventures sustainably.

RURAL OPTIMISM: A MISALIGNMENT?
BCG’s study notes that rural respondents express higher levels of optimism about the future compared to their urban counterparts. This finding is heartening, as it reflects the resilience of rural communities despite limited resources. However, it also raises questions about whether this optimism is rooted in tangible progress or simply in the enduring Filipino ability to find hope in adversity.

In fact, rural Filipinos face tremendous challenges, including limited access to healthcare, education, and economic opportunities. Infrastructure gaps, such as poor internet connectivity, further isolate these communities from the benefits of digital transformation. While optimism is a powerful force, policymakers and businesses must make sure that it translates into concrete improvements in quality of life. Otherwise, this positivity risks being overshadowed by systemic inequities.

INSTITUTIONAL TRUST: A LONG-STANDING CHALLENGE
The study points out a critical gap between Filipinos’ trusting nature in themselves versus that with institutions, wherein more persons turn to self-reliance because of failure attributed to institutions. It’s probably the most realistic result of the report. Institutional mistrust has deep roots because of previous issues such as graft, inefficiency, and varying policy implementation in the country.

This skepticism manifests itself in various ways: from continuing to rely on informal financial systems to being hesitant to approach formal healthcare providers. This is identified as a barrier by the study, yet it also points to an opportunity for institutions to rebuild trust through transparency and accountability. Programs that deliver tangible, reliable benefits — be it in healthcare, education, or financial services — are crucial to bridging the trust gap.

OPTIMISM AND REALISM
Most impressive, perhaps, is that this study shows the Filipino spirit in its most resilient form. The fact that 68% of respondents are optimistic about the coming year really says a lot about how much people want to go beyond their problems. While this optimism should be savored, it should not be taken without an acknowledgment of the problems that do not go away.

To make health security an actuality, we need systemic reforms to enable UHC. To sustain entrepreneurship, we need a facilitative environment that nourishes small businesses at various stages from seed to growth. For the optimism expressed in rural settings to see the light of day into progress, infrastructure, and educational investments are very important.

DREAMS TURNED INTO REALITY
The Filipino Dream offers an important look into the hopes and dreams of Filipinos. However, dreams alone do not create change; this requires collective action to confront barriers and create opportunities involving individuals, institutions, and policymakers.

Filipinos have always been resilient and resourceful. It is time for the systems meant to serve them to reflect the same strength and reliability. Only then can we ensure that the optimism and dreams highlighted in this study become the foundation for a more equitable and prosperous Philippines.

POLICY DEVELOPMENT: FILLING THE GAPS
Targeted policy interventions are needed to bridge the gap between aspiration and reality. The first priority should be reforms to make healthcare more accessible and affordable, as indicated by the top concern identified in the study: investing in preventive care, streamlining public health services, and encouraging private sector innovation in health insurance.

The financial sector needs to re-evaluate regulatory frameworks toward trust and accessibility. In fact, simplification of microfinance and small business loans procedures can encourage savings and borrowing. Furthermore, a national campaign to enhance financial literacy will empower more Filipinos to make informed decisions.

The study’s segmentation of dreamers can be very useful for policymakers. One-size-fits-all programs may not work as well as programs that are targeted to the needs of Providers, Trailblazers, Guardians, and Rebuilders. For example, retirement planning programs might be best suited for rural Guardians, while urban Trailblazers might need skill-building programs to support their entrepreneurial ventures.

RETHINKING BUSINESS STRATEGIES
More important is for businesses themselves to step up. Aligning with this call, in fact, is BCG’s impetus on the empowerment of Filipinos towards more inclusive business practices. Financial houses could consider producing products in response to savings for health and emergency funds, a package that satisfies short-term requirements and guarantees long-term security.

Corporations can play a vital role in helping aspiring entrepreneurs by providing mentorship, market access, and startup capital. Public-private partnerships could be used to help micro-entrepreneurs, especially in underserved regions. For example, e-commerce platforms could partner with local governments to train small business owners in digital marketing, thereby scaling up their operations.

THE NEED FOR FOLLOW-THROUGH RESEARCH
While “The Filipino Dream” provides informative material, it should not be taken as an overarching narrative but rather a jump off point for further scrutiny. Follow-up studies would take a closer look at areas such as understanding more distinctly the barriers women face, or the rural-urban divide in financial preparedness.

Moreover, a longitudinal study that follows the progress of Filipino dreamers over time would provide policymakers and businesses with actionable data. Are Trailblazers achieving financial independence? Have Rebuilders regained stability post-pandemic? These questions demand answers that can only come from sustained research efforts.

A CALL FOR COLLECTIVE ACTION
BCG’s Managing Director, Julian Cua, rightly emphasizes that the Filipino Dream is a collective vision. Realizing this vision will require collaboration across sectors. Policymakers, private corporations, and civil society must align their efforts to create an environment where dreams can flourish.

As we appreciate BCG for shining a light on the aspirations of Filipinos, we should also challenge ourselves to solve the barriers that hold many of us back. We can make these dreams become realities if we invest in policies, frameworks, and initiatives that empower every Filipino.

The resilience and optimism of Filipinos deserve not just recognition but tangible support. Let this study be the starting point for a movement, so financial security, entrepreneurial success, and progress may be in reach for everyone. In fulfilling the Filipino Dream, we uplift not just the individual but the nation itself.

You may download the BCG report here: https://tinyurl.com/26ydvkmf.

 

Dr. Ron F. Jabal, APR, is the CEO of the PAGEONE Group (www.pageonegroup.ph) and the founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

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