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Air travel demand at risk from inflation-driven spending cuts

UNSPLASH

RISING INFLATION in the Philippines, which reached 4.4% in July, is likely to reduce consumer spending on leisure travel and could weaken overall demand for air travel, according to analysts.

“Persistent inflation reduces purchasing power, so it can affect demand for leisure air travel,” Enrico P. Villanueva, a senior lecturer at the University of the Philippines Los Baños Economics department, said in a Viber message to BusinessWorld.

He also said that airlines may face pressures to manage expenses and keep fares competitive.

In July, inflation rose to 4.4%, mainly due to higher electricity and food costs, according to the Philippine Statistics Authority. Household spending, which makes up over 70% of the economy, rose by 4.6% year on year in the second quarter, slowing from 5.5% in the same period last year. Despite this, the economy expanded by an annual 6.3% in the April-to-June period.

Mr. Villanueva noted that continued upward adjustments in inflation also affect input costs like fuel surcharges, leading to higher airfare costs.

“I think airline companies will try to hold off airfare increases as long as they can to support demand,” he said. “The industry is still in the recovery phase after the pandemic.”

The Civil Aeronautics Board has raised the fuel surcharge airlines may impose to Level 6 in August, up from Level 5 in July.

At  Level 6, the domestic passenger surcharge ranges from P185 to P665, while the international surcharge ranges from P610.37 to P4,538.40.

The International Air Transport Association reported that jet fuel prices remained volatile despite a 2.6% decrease to $93.20 per barrel as of August 9.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said some consumers may still spend on travel if it is a “priority.”

“It may not necessarily reduce their travel spending due to ‘purchase priorities,’ wherein consumers are willing to reduce spending on items that are not priorities,” he said in a Viber message.

According to the Manila International Airport Authority, passenger volume at the Ninoy Aquino International Airport reached 29.54 million as of the end of July, marking an 11.8% increase from 26.42 million in the same period last year.

“As a pioneer in low-cost air travel, AirAsia Philippines [recognizes] that economic pressures like the recent inflation rate may influence travel behavior and could lead to adjustments in airfare pricing,” Steve F. Dailisan, head of communications and public affairs at AirAsia Philippines, said in a Viber message.

The airline said it will continue implementing its monthly price drop to ensure air travel remains accessible and competitive for passengers.

Budget carrier Cebu Pacific, operated by Cebu Air, Inc. (CEB), said it is addressing cost increases by lowering expenses through high-frequency flights and optimal aircraft utilization.

“While we have seen specific cost increases as we deal with supply chain issues, CEB’s business model focuses on maintaining affordable fares to achieve high load factors and reach more passengers,” Cebu Pacific said in a statement.

“Inflation is a challenge faced by all businesses, and we address this proactively by implementing strategies to control costs,” Cebu Pacific said.

The budget airline added that its transition to Airbus’ new engine option (NEO) aircraft, known for its enhanced fuel efficiency, has allowed the company to lower costs.

BusinessWorld has sought comments from flag carrier Philippine Airlines, but it has yet to reply by the deadline.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said both listed airline companies will likely see lower income for the third quarter, mainly driven by rising fuel costs and accelerated inflation.

This may lead to cost-cutting measures such as reducing flight frequencies to maintain profitability.

“Volatile fuel prices remain a critical factor. If fuel costs decrease or stabilize, it could relieve pressure on operational expenses,” Mr. Arce said.

He added that high competition in the region may limit pricing power, making it harder for airlines to pass increased costs to consumers.

“A recovery in travel demand, especially in international markets, could boost revenues. However, plans for fleet expansion or new route introductions could be delayed or scaled down if financial performance does not meet expectations,” Mr. Arce said. — Ashley Erika O. Jose

DigiPlus seeks gaming license in Brazil

LISTED DigiPlus Interactive Corp. is targeting an expansion into Brazil’s digital gaming sector, citing the recent legalization of betting activities in the country.  

The company’s subsidiary, DigiPlus Brazil Interactive Ltda., expects the result of its license application filed in Brazil to be issued on or before the end of November, DigiPlus said in a regulatory filing on Monday.

On Aug. 18, DigiPlus Brazil applied for a Licença Para Loterias De Apostas De Quota Fixa, a federal license that allows the operation of land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in Brazil.  

“DigiPlus is exploring opportunities in Brazil’s iGaming market following the recent legalization of gaming and betting activities in the country,” the company said.

“Currently in its preliminary stages, DigiPlus is looking to diversify its portfolio into new markets with an enabling regulatory environment for iGaming,” it added.

Last year, Brazil passed legislation that formed a regulatory framework for its online betting market, which included a condition that operators should have a Brazilian partner with at least a 20% stake in the business.

“DigiPlus recognizes Brazil’s strong potential as one of the fastest-growing gaming markets in Latin America. The country has a population of over 200 million, with internet penetration at 87%,” the company said.  

Despite the planned expansion, DigiPlus said it envisions the Philippines to remain its “core market.”

For the first half, Digi-Plus saw a 377% increase in its net income to P5.2 billion from P1.1 billion last year as revenues surged by 263% to P32.5 billion from P8.9 billion a year ago.  

The listed gaming group attributed the growth to higher user traffic and fresh contributions from new game offerings.

Some of the company’s platforms include BingoPlus, ArenaPlus, Perya Game, and BingoPlus Poker.

On Monday, DigiPlus shares dropped by 4.69% or 95 centavos to P19.30 per share. — Revin Mikhael D. Ochave  

Sinag Maynila film fest returns

BACK after a four-year hiatus following the pandemic, the sixth edition of the Sinag Maynila Film Festival is presenting seven full-length features, 10 short films, and seven documentaries that may have been presented in other film festivals but have yet to be premiered in cinemas.

“Because of the long hiatus, we thought that only a few would submit, but we actually received an overwhelming number of entries,” festival director Brillante Ma. Mendoza said during the launch on Aug. 8 at Gateway Mall 2, Quezon City.

Sinag Maynila was founded in 2015 by Mr. Mendoza and Solar Entertainment president Wilson Y. Tieng to mark the celebration of Manila’s Tourism Month and the Philippine Film Industry Month every September.

This year, the festival received a total of 190 entries. “Our screening committee had a difficult time making their choices because all had compelling reasons to be included,” Mr. Mendoza said.

Mr. Tieng added that their goal, to highlight “the creativity of the Filipino,” is made easier with the sheer breadth of talent that can be found today.

“It just goes to show that there are so many talented Filipino filmmakers that are raring to show their works and are looking for avenues to present their stories,” he said.

He cited alumni of previous editions of Sinag Maynila — Zig Dulay and Lawrence Fajardo — as examples of success stories. The two filmmakers remain active in the industry, directing primetime shows for big television networks.

Included in this year’s festival, which runs from Sept. 4 to 8, is the social drama The Gospel of the Beast by Sheron Dayoc starring Janssen Magpusao and Ronnie Lazaro. It premiered overseas at the Tokyo International Film Festival and was the opening film at the recently concluded Cinemalaya Independent Film Festival.

The Filipino-Chinese family drama Her Locket by J.E. Tiglao stars producer-lead actress Rebecca Chuaunsu in her own autobiographical tale. Meanwhile, the action film Banjo written, directed, and starring Bryan Wong aims to represent the passion of filmmakers from Sarangani Province.

Maple Leaf Dreams, an OFW- themed (overseas Filipino worker) romance shot in Canada, is directed by Benedict Mique and stars Kira Balinger and LA Santos. Its story, inspired by real-life stories of OFWs in Canada, seeks to give a voice to so-called modern-day Filipino heroes.

The psychological thriller What You Did by Joan Lopez Flores features a strong cast in Tony Labrusca, Mary Joy Apostol, Epy Quizon, Mercedes Cabral, and Ana Abad Santos. The drama Salome by Gutierrez “Teng” Mangansakan II has Perry Dizon, Tommy Alejandrino, and Dolly de Leon in a story loosely based on the eponymous minor character in Jose Rizal’s Noli Me Tangere.

Completing the Sinag Maynila lineup of full-length films is Alvin Yapan’s Talahib, a slasher horror flick set amid landscapes of tall grass at night, starring Joem Bascon, Gillian Vicencio, and Kristoff Garcia.

Six short films that will be screened are: 14 Days by Nars Santos, Ang Maniniyot ni Papa Jisos by Franky Arrocena, As the Moth Flies by Gayle Oblea, Bisan Abo Wala Bilin by Kyd Torato, Kiyaw by Jericho Jeriel, ILO by Serafin Emmanuel P. Catangay, Mananguete by Mery Grace Rama-Mission, Ina Bulan by Melver Ritz L. Gomez, Sa Paglupad Ka Banong by Elvert Bañares, and Suka and Toyo Can Make Adobo by Jude Matanguihan.

This year’s festival will have seven documentaries: Ghosts of Kalantiaw by Chuck Escasa, Ino by Ranniel Semana, Natatanging Palayok by Ein Gil Randall S. Camuñas, Pag-Ibig Ang Mananaig by Jenina Denise A. Domingo, Panatag by Allan Lazaro, Untitled/ Unfinished by Matthew Victor Pastor, and Way of the Balisong by Paul Factora.

Sinag Maynila will run from Sept. 4 to 8 in select cinemas (to be announced). For updates, follow Sinag Maynila’s social media pages. — B.H. Lacsamana

The high social cost of gambling proliferation

RAWPIXEL.COM

When I penned a column in 2013 expressing concerns about the Philippine government’s aggressive push to establish the country as a gambling hub, I feared the social consequences that could follow.*

I feared the damage to families, the rise of prostitution, and the increase in money laundering that the proliferation of gambling operations would likely cause. Since then, my worries have not only been confirmed but also compounded by a series of troubling developments that underline the steep costs of gambling in our society.

In June 2017, a horrific incident unfolded at Resorts World Manila where a lone gunman, a former government employee with a gambling addiction, wreaked havoc in a desperate attempt to steal casino chips. This attack led to 38 tragic deaths due to a stampede and smoke inhalation. The episode laid bare the potential for gambling venues to become focal points for desperate, destructive behavior and exposed serious security gaps.

Moreover, the establishment and expansion of Philippine Offshore Gaming Operators (POGOs) introduced new dimensions of risk. POGOs, pushed by the Duterte Administration in 2016, have been associated with a rise in crime, including money laundering activities connected to the infamous Bangladesh heist, and a disturbing influx of prostitution rings catering primarily to foreign nationals employed by these operations. Senator Risa Hontiveros’s 2020 investigation into these dens revealed a grim picture of human exploitation, likening the commodification of trafficked women to ordering from a menu. 

The government’s decision not only to permit but to encourage such ventures speaks to a troubling prioritization of revenue over social welfare. Gambling establishments, when not properly regulated, are linked not just to financial crimes but to deep-seated social issues, like gambling addiction, human trafficking, prostitution, money laundering and the erosion of community values.

The raids of multi-billion peso POGO facilities in Bamban, Tarlac and Porac, Pampanga further illustrate the dark underbelly of these gambling operations. In the case of the Bamban facility, police said they rescued 383 Filipinos, 202 Chinese, and 73 other foreign nationals. The ensuing arrest and deportation of 167 Chinese nationals working illegally at the Bamban POGO “scam hub” showcases the intertwined nature of gambling with organized crime and fraud.

Despite the Chinese government’s prohibition of gambling and related activities, the proliferation of these enterprises on Philippine soil continues to invite criminal elements, exposing our communities to substantial harm. The Bamban chief of police and nearly 50 police officers assigned to the Bamban Municipal Police Station have been relieved from their posts amid the investigation into illegal POGOs in the town.

POGO operations also now appear to pose a serious national security threat. Senator Hontiveros, who has led the investigation into the citizenship and possible connection of Bamban mayor Alice Guo with the POGO operations, has stated that the Senate investigation into Mayor Guo is about national security. She cited the proliferation of fake identification documents — from PhilHealth IDs to passports — adding that it was proof that Chinese POGO syndicates “have managed to obtain fraudulent Filipino identities through corrupt individuals in our government agencies.” Hontiveros also pointed to alleged hacking and surveillance activities related to POGOs in Bamban. She noted that “considering China’s aggressive influence operations around the world, it would be remiss of the Senate not to look into this angle.” 

The stark contrast between the envisioned government windfall from POGOs and the grim realities should serve as a wake-up call for our gambling regulators. To think that we could harbor POGOs in our country to serve online Chinese customers when gambling is illegal in China itself was the height of folly. POGOs must go and the SONA announcement of President Ferdinand Marcos, Jr. banning them is long overdue. The regulation of mainstream gambling facilities also needs serious review. Singapore’s model of imposing restrictions, like banning ATMs in casinos and charging entry fees, is a testament to the importance of protective measures to shield citizens from gambling’s harms. 

As we move forward, our leaders must reconsider the expansion of gambling in the Philippines. The evidence is clear: the social and national security costs far outweigh the promised economic benefits. Let us champion policies that protect and uplift our sovereignty, families, and communities, rather than exposing our people to greater risks. 

It’s time for a concerted effort to advocate for a reevaluation of our national stance on gambling. In the spirit of the Constitution and the Family Code, we must prioritize the well-being and moral fiber of our families and communities in a growing economy marked by shared prosperity. We owe it to the next generation to foster an environment that promotes their welfare, not one that gambles it away.

*https://tinyurl.com/7frrs3m9

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines. 

 

Dr. Benito L. Teehankee is chairman of the MAP Shared Prosperity Committee and a full professor of management and organization at De La Salle University.

map@map.org.ph

benito.teehankee@dlsu.edu.ph

Alain Delon, 88

ALAIN DELON — COMMONS.WIKIMEDIA.ORG

FRENCH actor Alain Delon, who melted the hearts of millions of film fans whether playing a murderer, hoodlum or hitman in his postwar heyday, has died, French media reported on Sunday. He was 88.

Mr. Delon had been in poor health since suffering a stroke in 2019, rarely leaving his estate in Douchy, in France’s Val de Loire region.

With striking blue eyes, Mr. Delon was sometimes referred to as the “French Frank Sinatra” for his very handsome looks, a comparison Mr. Delon disliked. Unlike Mr. Sinatra, who always denied connections with the Mafia, Mr. Delon openly acknowledged his shady pals in the underworld.

In a 1970 interview with the New York Times, Mr. Delon was asked about such acquaintances, one of whom was among the last “Godfathers” of the underworld in the Mediterranean port of Marseille.

“Most of them, the gangsters I know … were my friends before I became an actor,” he said. “I don’t worry about what a friend does. Each is responsible for his own act. It doesn’t matter what he does.”

Mr. Delon shot to fame in two films by Italian director Luchino Visconti, Rocco and His Brothers in 1960 and The Leopard in 1963.

He starred alongside venerable French elder Jean Gabin in Henri Verneuil’s 1963 film Melodie en Sous-Sol (Any Number Can Win) and was a major hit in Jean-Pierre Melville’s 1967 Le Samourai (The Godson). The role of a philosophical contract killer involved minimal dialogue and frequent solo scenes, and Mr. Delon shone.

Mr. Delon became a star in France and was idolized by men and women in Japan, but never made it as big in Hollywood despite performing with American cinema giants, including Burt Lancaster when the Frenchman played apprentice-hitman Scorpio in the eponymous 1973 film.

In the 1970 film Borsalino, he starred with fellow French actor Jean-Paul Belmondo, playing gangsters who come to blows in an unforgettable, stylized fight over a woman.

Crowning moments also included 1969 erotic thriller La Piscine (The Swimming Pool), where Alain Delon paired up with real-life lover Romy Schneider, in a sultry French Riviera saga of jealously and seduction.

TROUBLED MAN
Born just outside Paris on November 8, 1935, Mr. Delon started life on the back foot: he was put in foster care aged four after his parents divorced.

He ran away from home at least once and was expelled several times from boarding schools before joining the Marines at 17 and serving in then French-ruled Indochina. There too he got into trouble over a stolen jeep.

Back in France in the mid-50s, he worked as a porter at Paris wholesale food market, Les Halles, and spent time in the red-light Pigalle district before migrating to the cafes of the bohemian St. Germain des Pres area.

There he met French actor Jean-Claude Brialy, who took him to the Cannes Film Festival, where he attracted the attention of an American talent scout who arranged a screen test.

He made his film debut in 1957 in Quand la femme s’en mele (Send a Woman When the Devil Fails).

SULPHUROUS FRIENDS
Mr. Delon was a businessman as well as an actor, leveraging his looks to sell branded cosmetics and dabbling in racehorses with old underworld friends. He invested in a racehorse stable with Jacky “Le Mat” Imbert, a notorious figure in a thriving Marseille crime scene.

Mr. Delon’s more louche friendships exploded to the surface when a former bodyguard-cum-confidant, a young Yugoslav called Stefan Markovic, was found dead in a bag, with a bullet in his head, discarded in a rubbish dump near Paris.

The actor was interrogated and cleared by police but the “Markovic Affair” snowballed into a national scandal.

The man police charged with the Markovic murder — he was later acquitted — was Francois Marcantoni, a Corsican cafe owner and friend of Mr. Delon who thrived in the hustle and bustle of the Pigalle district in the aftermath of World War II.

OUTSPOKEN
Mr. Delon was outspoken off-stage and courted controversy when he did so — notably when he said he regretted the abolition of the death penalty and spoke disparagingly of gay marriage, which was legalized in France in 2013.

He publicly defended the far-right National Front and telephoned its founder Jean-Marie Le Pen, an old friend, to congratulate him when the party did well in local elections in 2014.

Mr. Delon’s lovers included Schneider and German model-turned-singer Nico, with whom he had a son. In 1964, he married Nathalie Barthelemy and fathered a second son before ending the marriage and embarking on a 15-year relationship with Mireille Darc. He had two more children with Dutch model Rosalie van Breemen.

In a January 2018 interview, Mr. Delon told Paris Match he was fed up with modern life and had a chapel and tomb ready for him on the grounds of his home near Geneva, and for his Belgian shepherd dog, called Loubo.

“If I die before him I’ll ask the vet to let us go together. He will give the dog an injection so he can die in my arms.”

Mr. Delon’s last major public appearance was to receive an honorary Palme d’or at the Cannes film festival in May 2019.

In his last years, Mr. Delon was the center of a family feud over his care, which made headlines in French media.

In April 2024 a judge placed Mr. Delon under “reinforced curatorship,” meaning he no longer had full freedom to manage his assets. He was already under legal protection over concerns over his health and well-being. — Reuters

SMC-led NAIA consortium eyes P5-B off-ramp, curb pricing at airport

PHILSTAR FILE PHOTO

SAN MIGUEL-LED consortium New NAIA Infrastructure Corp. is on track to take over the operations of Ninoy Aquino International Airport (NAIA), with plans to spend between P3 billion and P5 billion on the construction of a new off-ramp from the NAIA Expressway to Terminal 3, while also considering the implementation of curb pricing at the airport.

“We have a better understanding of aviation. You will see a lot of improvements… All these issues can be fixed; it will be done,” San Miguel Corp. (SMC) President and Chief Executive Officer Ramon S. Ang told reporters on Monday.

In March, New NAIA Infrastructure (formerly SMC SAP & Co. Consortium) signed a P170.6-billion contract to operate, maintain, and upgrade the country’s primary gateway for 25 years.

The group is expected to take over the operations of the Philippines’ main gateway by Sept. 14.

The permit for the construction of the planned off-ramp from the NAIA Expressway to Terminal 3 has already been secured and will be constructed within one year, Mr. Ang said, adding that an underground option is also being considered to further ease traffic congestion in the area.

“If an underground option is not necessary, then it will be much cheaper. We are assessing if an underground (for the off-ramp) is still needed; then we will build it,” he said.

SMC is also working on airline reassignment, which aims to improve passenger queues and enhance the overall passenger experience.

“It will be fine-tuned. We have not finalized it; there is no one silver-bullet solution. We can reassign some airlines by November… The realignment will immediately relieve,” Mr. Ang said.

Aside from this, SMC is considering implementing curb pricing at the airport — a fee charged to vehicles using specific areas, such as curbsides, to manage traffic congestion and improve space efficiency — though Mr. Ang did not disclose the exact amount to be collected.

“In other countries, there’s a curbside fee. In short, you are free to drop off your passenger for a while, but if you stay beyond [the allotted time], you will be charged. We are fine-tuning it; we are studying it,” Mr. Ang said.

The New NAIA Infrastructure plans to construct a new passenger terminal building with a capacity of 35 million passengers annually as part of efforts to alleviate airport congestion.

“It has to be within the concession agreement; if it’s over or under the agreement, they can sue us. We will follow the agreement up to the dot,” Mr. Ang said.

Further, Mr. Ang said the anticipated increase in passenger service fees and the landing and take-off fees at NAIA are all included in the terms of reference of the NAIA project.

“We will not change anything; these are already included in the terms of reference provided by the government before the public bidding,” he said.

In June, the Department of Transportation announced that the proposed increase in passenger service fees at NAIA is intended to enhance operational efficiency.

The department said that the planned rate hike is within the approved parameters, terms, and conditions specified in the tender documents for the NAIA rehabilitation project.

Passenger service charges, also known as terminal fees, are imposed on departing passengers. Landing and take-off fees, on the other hand, are charges levied for the use of airport facilities and services during aircraft landings and takeoffs. Both fees contribute to the total cost of airfares paid by passengers.

The government anticipates earning P900 billion from the project, equating to P36 billion per year. This figure is 20 times larger than the P1.17 billion annually remitted by the Manila International Airport Authority over the 13 years through 2023, according to the Department of Transportation. — Ashley Erika O. Jose

Gordon Ramsay Bar & Grill coming to Philippines

INTERNATIONALLY RENOWNED and multi-Michelin-starred British chef Gordon Ramsay will open a restaurant at Newport World Resorts in Pasay City this month, the integrated resort announced on Monday.

The restaurant, called Gordon Ramsay Bar & Grill Philippines, will be located on the second floor of the Newport Grand Wing, Newport World Resorts said in an e-mailed statement.

The 400-square-meter restaurant, set to be one of the largest restaurants in Newport World Resorts, can accommodate up to 100 guests. It will be Mr. Ramsay’s inaugural offering in the Philippines, following other restaurant concepts in major cities across the globe.

The restaurant is expected to attract diners from all over the region, as it is located across from Ninoy Aquino International Airport Terminal 3.

“Having personally met Chef Ramsay at The Londoner in Macao, his larger-than-life personality and our shared enthusiasm in opening one of the most sought-after restaurants in the culinary world, strengthens our position as the most multifaceted integrated resort in the country, leading the way in elevated dining experiences for all our guests,” Newport World Resorts Chairman Kevin Andrew L. Tan said.

Newport World Resorts said the restaurant’s menu will feature British cuisine, including Gordon Ramsay’s Beef Wellington, steaks, fresh market seafood, and an array of sides and desserts.

The restaurant will also offer high-end wines from around the world, spirits, and handcrafted cocktails.

Bookings for Gordon Ramsay Bar & Grill Philippines will open on Aug. 20.

Newport World Resorts is home to five international hotel brands, comprising Marriott Hotel Manila, Sheraton Manila Hotel, Hotel Okura Manila, Hilton Hotel Manila, and Holiday Inn Express Manila-Newport City. — Revin Mikhael D. Ochave

Alibaba, Tencent, JD.com must win back Chinese consumers

JCOMP-FREEPIK

EARNINGS REPORTS from Chinese tech companies last week should be a wake-up call for Beijing.

Alibaba Group Holding Ltd. and JD.com, Inc. pulled out all the stops to attract customers to spend during their 618 shopping festival, a Black Friday-like extravaganza that took place during the quarter ending in June. They offered steeper-than-ever discounts on everything from iPhones to loungewear, enlisted A-list celebrities like Rihanna to promote products, and even experimented with a digital avatar of an executive to hawk goods over livestream. But Alibaba’s revenue from its core e-commerce platforms fell by some 1.4%, and retail revenue at JD.com, which offered some of the most cut-throat markdowns, ticked up by 1.5%.

Despite slashing prices and launching some of their most aggressive campaigns, it wasn’t enough to get Chinese consumers to dig into their pocketbooks. This may not come as a total surprise as the nation is still dealing with a struggling economic environment marked by a prolonged housing slump, and high youth unemployment.

Tencent Holdings Ltd., meanwhile, reported strong profit growth that beat analysts’ expectations. But this was driven by the release of its smash-hit game Dungeons & Fighter Mobile in May. The fact that China’s most valuable tech company’s revenue was buoyed by its gaming unit is another red flag for the broader economy. Spending on digital entertainment has historically been counter-cyclical, meaning consumers will continue to shell out on this even while paring back on bigger purchases. Unemployed workers may also spend more time gaming. And it’s unclear if Tencent will be able to translate the one-time release of DnF Mobile into sustainable business growth.

There may only be so much these companies can do to lure the wary consumer in this environment. As e-commerce struggles and macroeconomic headwinds loom large, they should start focusing more on innovation and alternative ways to earn revenues.

Chinese tech firms may look to invest heavily in artificial intelligence (AI), despite unique challenges. Tencent and Alibaba have made significant bets in AI, but it’s not clear that these are paying off yet. Tencent executives noticeably spoke very little about AI during their post-earnings call with analysts, saying the company would leverage this technology where it sees “tangible commercial results.” One area where AI is showing promise for Tencent is in helping with content recommendations, which keeps users engaged on its video and social platforms. It is also using the technology to improve targeted advertising. Tencent seems to be playing the long game when it comes to AI, and is wise to focus on how to use it to drive profits instead of trying to follow the hype.

Alibaba’s AI-related product sales growth was in the triple-digits, and revenue from its Cloud division grew about 6%. But this was in part boosted by Olympics contracts. Cloud growth “might not be sustainable, given rising corporate uncertainty and the ongoing price wars” in China’s cloud and AI sectors, Bloomberg Intelligence analysts noted. But Alibaba executives said during the analyst call that they don’t expect enterprise demand for AI products to be hampered by macroeconomic conditions, and any business that relies on digitalization “has to be investing in AI.”

Chinese tech firms are already facing an uphill battle when it comes to AI because of Washington-imposed curbs on advanced chips and equipment. And investors globally are beginning to question how the massive investments in AI will eventually pay off. Put together: It doesn’t seem like AI will turn into an immediate lifeline for China’s beleaguered tech firms, but these investments are at least a step in the right direction as they rely mostly on enterprise clients and not just the spending of individual consumers.

Another option in the face of domestic struggles is for Chinese e-commerce companies to pursue more revenue streams overseas. This has played out well for Alibaba and JD.com’s rival PDD Holdings, Inc., the parent company of Temu. PDD’s expansion recently helped founder Colin Huang become the richest man in China. At the same time, competition is becoming increasingly crowded, with even US giant Amazon.com, Inc. planning to launch a discount web store with goods shipping directly from China. It will be very challenging for Alibaba and JD.com to compete here, and there is only so much price-slashing they can continue doing.

Ultimately, it will be very hard for these marquee tech companies to grow without domestic conditions that restore consumer confidence. The Chinese government has made great strides in recent years in reducing regulatory uncertainty with the thawing of its crackdown on the tech sector. But if Beijing wants to support a real recovery for its pioneering e-commerce firms, and the broader economy, it needs to start implementing policies that boost consumer spending.

BLOOMBERG OPINION

Entertainment (08/20/24)

Ayala Malls Cinemas presents Thrill Fest this Ghost Month

IN some Asian cultures, the observance of Ghost Month every August is a time-honored tradition. It is said that during this time, the spirits of the dead come to visit the living. In celebration of this tradition, Ayala Malls Cinemas’ “Thrill Fest: The Ghost Month Classic Film Series” will present a lineup of four classic thriller movies from Aug. 21 to Sept. 3. The films are celebrating their anniversaries this year: Interview with the Vampire’s 30th anniversary, Gremlins’ 40th anniversary, A Nightmare on Elm Street’s 40th anniversary, and The Towering Inferno’s 50th anniversary. They are all not currently available on popular streaming platforms and can be watched at the following Ayala Malls Cinemas: Glorietta, Greenbelt, Circuit, Market! Market!, Fairview Terraces, Feliz, Trinoma, UP Town Center, Manila Bay, Harbor Point, Solenad, Ayala Center Cebu, Centrio, and Capitol Central. Thrill Fest movie tickets will have a special price — only P200 to P250.

Toy Kingdom Toy Expo to be held at SMX Convention Center

KIDS will be pleased to return to the much-awaited Toy Expo from Aug. 22 to 25. At the SMX Convention Center Manila, they can join in the four days of pure fun at the immersive event that showcases a world of toys. Trending brands like Bluey, Funko Pop, Mario Bros, Pop Mart, Pokemon, Squishmallows, Sunrisepop, Yolopark, and Zuru will be there, along with nostalgic favorites such as Care Bears, Sanrio, Sesame Street, and Voltes V. Beloved classics include Barbie, Crayola, Disney, DC, Gundam, Hot Wheels, Lego, Marvel, Minions, Star Wars, and many more. There will be a series of meet-and-greets featuring popular characters, exclusive toy launches, limited edition toys, surprise bundles, and daily raffle for all guests. For more details, visit Toy KingdomPH on social media.

Araneta City salutes heroes through art

TO commemorate Ninoy Aquino Day and National Heroes’ Day, Araneta City, in partnership with Upsilon Sigma Phi and Sigma Delta Phi will be presenting a special public forum. Esteemed artists who have made significant contributions to culture and the arts will be guesting at the event. They are Kidlat Tahimik, National Artist for Film; Gemino H. Abad, National Artist for Literature; Alfred Vargas, FAMAS Best Actor; and Gabriel Malvar, award-winning documentary filmmaker. The public forum is free and open to all on Aug. 21, 5 p.m., at the Quantum Skyview of Gateway Mall 2, Quezon City.

SB19 drops The First Take versions of ‘Gento’ and ‘Mapa’

P-POP boy group SB19 has released “Gento” and “Mapa” from The First Take sessions on all digital music platforms via Sony Music Entertainment. The new versions feature the award-winning group’s performance at The First Take, a popular YouTube channel with nearly 10 million subscribers. The show’s format features Japanese and international music guests performing a song in one take, filmed with shots of the artists and a microphone against a minimalist and usually white backdrop. To date, The First Take renditions of “Gento” and “Mapa” have amassed more than 4.5 million views on YouTube. SB19 was the first Southeast Asian group and the first Filipino artist to be invited on the globally renowned platform.

NewJeans to headline Coke Studio Philippines concert

FOR Season 8 of Coke Studio Philippines, the Ultimate Fandom Concert on Sept. 5 at the SM Mall of Asia Arena will have a star-studded lineup for its fans. K-pop girl group NewJeans was announced as one of its main artists. Locally, its featured artists include P-Pop powerhouse Alamat, Gen Z performer and actor Kyle Echarri, hip-hop hitmaker Nik Makino, and rising rebel rapper Illest Morena. They’ll be performing their collaboration songs for this season for the first time at the concert, along with “Hugot King” and first-ever Filipino Coke Studio global artist Zack Tabudlo.

Thai tearjerker How to Make Millions Before Grandma Dies to stream on Netflix

THE THAI drama How to Make Millions Before Grandma Dies is bringing a tender plot on Netflix across Southeast Asia starting Sept. 12. The highest-grossing Thai film in numerous countries, including Indonesia, Singapore, Philippines, Malaysia, and Myanmar, stars Putthipong “Billkin” Assaratanakul as game caster M, who is driven by the desire for a multimillion-dollar inheritance to care for his terminally ill grandmother played by Usha Seamkhum. Produced by GDH 559, How to Make Millions Before Grandma Dies was written by Thodsapon Thiptinnakorn, who drew inspiration from personal experiences, and Pat Boonnitipat, known for the hit Thai film Bad Genius. It streams on Netflix starting Sept. 12.

Kai Del Rio announces first headline show in nearly a decade

FILIPINO indie artist Kai Del Rio (formerly known as Kai Honasan) will be having a headline show in September, alongside the launch of back-to-back singles “Ang Nag-iisa” and “Storm Like Me.” Her first solo headline show in nearly a decade, the Sept. 13 intimate concert will also mark her first time to perform the upcoming dual singles. It will take place at Sari Sari Bar in Makati City. “Ang Nag-iisa,” to be released that same day, will be a gritty blues and alt-rock track while “Storm Like Me,” to be released on Sept. 20, will take listeners back to her acoustic, stripped-down roots. The show and the singles serve as a reintroduction of the indie singer-songwriter, complete with a new moniker, a new record label, and a new management team. Ms. Del Rio is co-producing the official launch alongside GNN Entertainment Productions and Locked Down Entertainment, with backing from Lightfirst and Underdog Music. Tickets are now available on bit.ly/kaidrlaunch.

Cinemalaya announces entries for 2025 edition

FOLLOWING the recently-concluded Cinemalaya Bente: Loob Lalim Lakas, the Cultural Center of the Philippines and the Cinemalaya Foundation, Inc. have already announced the 10 new full-length finalists who will be competing next year. They are: Abanse by Chad Vidanes, Bloom Where You Are Planted by Noni Abao, Child No. 82 by Tim Rone Villanueva, Cinemartyrs by Sari Dalena, Habang Nilalamon ng Hydra ang Kasaysayan by Dustin Celestino, Open Endings by Nigel Santos and Keavy Eunice Vicente, Padamlagan by Jenn Romano, Paglilitis by Raymund Barcelon and Cheska Marfori, Republika ng Pipolipinas by Renei Dimla, and Warla by Kevin Alambra and Arah Badayos.

Ely Buendia releases single ahead of solo concert at Newport

FORMER Eraserheads frontman Ely Buendia remains active with his latest single as proof. His new, fuzzy, alt-rock track “Bulaklak sa Buwan” serves as the first single off his upcoming sophomore album, Method Adaptor, which will be out in November. The track’s release coincides with the prevalence of fabricated stories and propaganda-driven atrocities in online spaces, challenging listeners to raise awareness for factual truth and combat misinformation. Meanwhile, this September, fans will have the rare chance to witness the rock icon perform his greatest hits live at the Newport Performing Arts Theater. The one-night solo concert on Sept. 14, directed by Jamie Wilson, will feature tracks from Mr. Buendia’s Eraserheads days as well as more recent hits. Tickets are now available at all TicketWorld outlets, with prices ranging from P1,500 to P8,800.

Gloc-9 releases new heart-wrenching single

PROLIFIC rapper-songwriter Gloc-9 has a new song out called “Ala.” The fresh single is deeply emotional, with themes of love, family, and the fragility of memory. The title, a wordplay of the Filipino word “alaala,” (memories), hints at a journey of a man who reflects on his cherished love story slowly fading away in his mind due to Alzheimer’s. The rap song is part of the latest New Music Friday Philippines and Bago sa Kalye playlists on Spotify. “Ala” is now available on all digital music streaming platforms.

Wi Ha Jun’s fan meet in Manila announces upgraded perks

FANS of Wi Ha Jun will have jam-packed benefits at the upcoming “WI HA JUN 2024 Fan Meeting Tour <A Wively Day> in Manila” on Sept. 15 at the New Frontier Theater, Quezon City. All ticket holders are entitled to a group photo session, a hi-touch session, and photocards. Meanwhile, VIP ticket holders can avail of the on-site fan signing event and a one-on-one photoshoot for VIP ticket holders. The Manila show is presented by Ovation Productions and Applewood. Tickets are available at ticketnet.com, with prices ranging from P4,500 to P10,500.

The Itchyworms announce first-ever Canada tour

ONE of the Philippines’ most familiar bands, The Itchyworms, are hitting the road for their first-ever Canadian tour this November. “Akin Ka Na Lang Canada” will traverse four cities: Vancouver, Calgary, Winnipeg, and Toronto. The tour marks a special reunion with the band’s original guitarist, Chino Singson, who is now based in Vancouver, and who last toured with the Itchyworms in the United States in March 2023. It also serves as a heartfelt farewell to the band’s newest member, Mikey Amistoso, who joined in recent years but is now migrating to Toronto. The dates are Nov. 1 in Vancouver, Nov. 3 in Calgary, Nov. 8 in Winnipeg, and Nov. 10, in Toronto, with tickets available via Simpletix and Ticketmaster.

RLC bets on premium demand to drive Le Pont Tower 2 sales

BW FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

REAL ESTATE developer RLC Residences is banking on increased demand in the premium market segment to drive sales of the second tower of its Le Pont Residences high-rise development in Pasig City.

“Tower 1 is almost 90% sold. We expect Tower 2 to have roughly the same sales velocity — that’s about 18 months. It speaks really well of the continued strength of the premium market,” RLC Residences Senior Vice-President Chad Sotelo said during a media event in Pasig City on Wednesday last week.

The second tower will have 644 units across 51 floors, with sizes ranging from a one-bedroom unit (45-46 square meters (sq.m.)), an executive one-bedroom unit (63 sq.m.), a two-bedroom unit (82.5-115 sq.m.), a three-bedroom unit (151 sq.m.), a four-bedroom unit (220 sq.m.), and a penthouse (269.5-431 sq.m.).

In January last year, RLC launched the first tower of Le Pont Residences, which offers one- to three-bedroom units and bi-level penthouse options.

Mr. Sotelo said the first tower of Le Pont Residences is outpacing the government’s ten-year tenor of 6.5%.

“In just 1 year and 6 months since launching the first tower, the net value has already appreciated by 8%, with current unit prices at P310,000 per sq.m. compared with the initial launch price of P286,000 per sq.m.,” Mr. Sotelo said.

“We are also proud to share that Le Pont Residences is actually the fastest-selling property in the area since we launched the first building last year,” he added.

All units feature smart home deliverables for additional safety and convenience, along with appliances such as an air conditioning unit, refrigerator, range hood, cooktop, and washer and dryer. The penthouse units will also have a dishwasher.

Le Pont Residences will have facilities that are exclusively available to residents. These include a clubhouse, infinity and wading pools, a fitness center, a pet park, a game simulator, and work lounges.

On the top floor, the property will have Altitude 51, which will offer exclusive function villas and a sky lounge for private events and celebrations.

Le Pont Residences is located within the 31-hectare Bridgetowne Estate in Pasig City. It recently secured its preliminary EDGE certification from the International Finance Corp., making it the first and only EDGE-certified sustainable condominium within the estate.

The building has water- and energy-saving features such as a rainwater harvesting system and eco-friendly fixtures in units and common areas to reduce its ecological footprint and provide cost savings to homeowners. It will also offer e-parking spaces for electric vehicles in select parking slots.

“We are truly proud of how Le Pont Residences can bridge our future homeowners to the best life that they envision for themselves and their families. We can’t wait for them to experience what it’s like to live in a home and community where they can achieve their life goals while making great memories with their loved ones,” Mr. Sotelo said.

POGO BAN
RLC Residences does not see any impact on its business following the recent government ban on Philippine Offshore Gaming Operators (POGOs), according to Mr. Sotelo.

“If I speak of total RLC Residences, we have very minimal Chinese buyers. Starting this year, we don’t have any Chinese buyers,” he said.

“We don’t anticipate any impact from the decision of the government,” he added.

President Ferdinand R. Marcos, Jr. previously announced a total ban on all POGOs, citing their ties to illicit activities such as financial scams, money laundering, prostitution, and human trafficking.

According to Mr. Sotelo, RLC does not have inventory in Manila Bay Area, where POGO employees and residents are mostly concentrated.

RLC has a presence in Manila Bay Area through its two-tower residential project called The Radiance Manila Bay.

“We also don’t have any inventory in the Manila Bay Area. We only have one project there, Radiance. It’s almost sold out and we hardly have any Chinese buyers as well,” he said.

He also said that upcoming project launches for RLC Residences in the remaining months of the year would depend on market conditions.

“We’ll assess how the market responds in the next couple of months. If market conditions continue to be good or continue to strengthen, we may choose to launch something else,” Mr. Sotelo said.

“If not, then we’ll move it to next year. We’re always in an assessment,” he added.

RLC Residences had four launches this year so far. These include the two towers of the MIRA condo complex in Quezon City, the second tower of the Le Pont Residences condo project in Pasig, and the fifth building of the Sierra Valley Gardens condo development in Cainta, Rizal.

Mr. Sotelo said that RLC Residences does not see any new risks to its operations aside from high inflation, interest rates, and geopolitical tensions.

“If things change, hopefully the market responds in a way that we consider to be positive. We don’t see any new or major risks beyond what we already have,” he said.

Netenergy introduces SolarEdge battery tech in PHL

FREEPIK

SOLAR EQUIPMENT distributor Netenergy Renewable Group (NRG) is targeting a sales volume of up to 30 megawatts (MW) this year following its launch of a residential battery technology aimed at advancing safety and efficiency in solar energy systems.

“For everything, we are looking at 30 megawatts,” Netsolar, Inc. Vice-President for Operations Lance Elison L. Dy said on the sidelines of the launch in Quezon City on Monday.

The residential battery technology, designed by international smart energy technology company SolarEdge, is available for single-phase applications and can provide 9.7 kilowatt-hours (kWh) of capacity, equivalent to running a 1.5-horsepower air-conditioner for eight hours, the company said in a statement.

It said that three batteries per inverter can deliver up to 29.1 kWh of backup capacity.

At the launch, NRG unveiled its “SolarEdge Home ecosystem,” which features the new “Home Hub Inverter,” “Home Battery,” and “Home Backup Interface.”

“SolarEdge Home is designed to harvest more energy from the sun with DC-coupled technology, storing more energy in the battery to power the home or provide longer critical backup during potential grid outages,” the company said.

Mr. Dy said that the goal of the initiative is “for people to realize [that] there are better options for solar installation with batteries for the house.”

NRG said that the launch of its residential battery is crucial at a time when more solar capacity is expected to come online in the Philippines.

However, with the expansion, the company noted concerns regarding system safety, including fire risks and electrical faults, thus the need for enhanced safety measures.

Citing data from the Fire Protection Bureau, NRG said that fire incidents nationwide increased by 34.4% during the first six months of the year, mostly in residential areas due to open flames.

“The positive response to our new battery technology addresses critical safety concerns in the solar industry,” Mr. Dy said.

“With the Philippine solar market expanding rapidly, ensuring that our systems adhere to the highest safety standards is essential. This launch is a significant step in providing Filipino homes with advanced, reliable, and safe solar solutions,” he added.

NRG said that SolarEdge has complied with “various safety regulations” through its Sense Connect technology and Arc Fault Circuit Interrupter capabilities. These features monitor potential electrical faults, automatically stop power flow, and activate safety measures to prevent fires. — Sheldeen Joy Talavera

How does the Philippines compare in the region in terms of military expenditure as share of GDP?

The Philippines’ military expenditure as share of gross domestic product (GDP) reached 1.4% in 2023, the ninth highest in the region, according to the Contemporary Trends in Militarization report by nonprofit think tank Institute for Economics & Peace. The Philippines also reported the lowest armed forces rate among its neighbors with only 125.7 military personnel per 100,000 people.

How does the Philippines compare in the region in terms of military expenditure as share of GDP?

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