A fresh coat of hope: FPJ Panday Bayanihan donates essential supplies to Pres. Corazon Aquino High School

September 11, 2024 | 10:35 am

1-OL — FPJ Panday Bayanihan Chairman Brian Poe Llamanzares during the turnover of supplies

FPJ Panday Bayanihan, a foundation committed to fostering community development and uplifting Filipino lives, recently made a donation to Pres. Corazon C. Aquino High School. The donation, consisting of various painting materials and lighting supplies, aims to enhance the learning environment for students and ensure a brighter, more inspiring space for education.

The turnover of these essential supplies was led by Brian Poe Llamanzares, Chairman of FPJ Panday Bayanihan, underscoring the foundation’s dedication to supporting the youth and their education. The donation to Pres. Corazon Aquino High School is part of FPJ Panday Bayanihan’s ongoing efforts to support education and community development.

“We believe that a conducive learning environment plays a crucial role in shaping the future of our children,” said Brian Poe Llamanzares. “By providing these essential materials, we hope to help create a more vibrant and welcoming space where students can grow and thrive. FPJ Panday Bayanihan remains eager to continue supporting initiatives that promote a better future for the youth.”

FPJ Panday Bayanihan has always believed in the power of collective action and community spirit. Through various initiatives, the foundation strives to address pressing needs in communities across the Philippines. The recent donation is a testament to the foundation’s unwavering commitment to serving the Filipino people, particularly the younger generation, by providing them with the resources necessary for a better learning environment.

The donation to Pres. Corazon Aquino High School is part of FPJ Panday Bayanihan’s ongoing efforts to support education and community development.

The school community warmly welcomed the donation, recognizing its impact on improving their facilities. Reyora Victorio Laurenciano, Principal IV of Pres. Corazon Aquino High School, expressed her gratitude for the support, stating, “We extend our deepest thanks to FPJ Panday Bayanihan. Your support will greatly enhance our classrooms, creating a more conducive environment for learning. We are truly grateful for your unwavering commitment to the youth and their education.”

The donation to Pres. Corazon Aquino High School is one of many initiatives by FPJ Panday Bayanihan to foster a better educational environment for young Filipinos. By investing in school improvements and providing essential supplies, the foundation aims to create lasting, positive impacts in the lives of students, empowering them to pursue their dreams and aspirations with confidence.

For more information about FPJ Panday Bayanihan and its initiatives, please visit www.fpjpandaybayanihan.org or follow FPJ Panday Bayanihan on Facebook.

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Padday na Lima Regional Trade Fair 2024: Immerse yourself in Cagayan Valley’s exquisite blend of beauty and bounty

September 11, 2024 | 10:10 am

Padday na Lima is back in Manila! Cagayan Valley’s product showcase is again in the spotlight as the trade fair officially kicks off on Sept. 10, 2024, at the Festival Mall Alabang in Muntinlupa.

This year’s trade fair comes with the theme, “Unveiling the Richness of Cagayan Valley’s Lands and Seas, A Fusion of Beauty and Bounty.” In the opening ceremony, Department of Trade and Industry R2 Regional Director Ma. Sofia G. Narag welcomed visitors to the fair, promising that they are going to be treated to a smorgasbord of the region’s freshest and finest products from the valley’s diverse agricultural and aquatic resources.

In a heartfelt display of support, the Acting Secretary of the Department of Trade and Industry, Sec. Ma. Cristina Aldeguer-Roque, and Hon. Senator Loren B. Legarda conveyed their messages of support during the opening for Padday na Lima, emphasizing the vital role of MSMEs in strengthening the region’s economy.

Padday na Lima, an Ybanag vernacular for “made by hands,” aims to promote Cagayan Valley’s rich heritage and create fruitful unions with Manila-based advocates. In this week-long event, guests and Region 2 MSMEs alike are given exciting opportunities and unforgettable experiences like never before! This year’s fair will take visitors through a guided tour of the booths of Cagayan Valley MSMEs with a B2B matching activity for prospective endeavors between producers and consumers in Cagayan Valley and Manila. There are a wide array of other exciting activities at the fair including food and wine tasting, fun games, and a creative crafts demonstration. Another highlight of the trade fair is a fashion show named Hibla’t Having Rehiyon Dos: Padday na Lima Collections featuring Cagayan Valley’s unique weaves.

With a hundred exhibiting MSMEs and farmers boasting their wide array of products and services — from farm produce to processed foods, aquatic and fishery products, native delicacies, garden plants, to fashion and wearables, furniture, handicrafts, and tourism opportunities — visitors at the opening day were introduced to the wonders that Cagayan Valley has to offer to the Philippines and to the world. Pavillions highlighting each province in the region — Batanes, Cagayan, Isabela, Quirino, and Nueva Vizcaya — gave visitors a feel for not just their products but avenues for tourism and other potential investment projects as well.

We invite everyone, from the average consumer to institutional buyers, to come visit and experience the richness of the valley through the 18^th Padday na Lima. The Trade Fair will run from Sept. 10 to Sept. 16 at the Upper Ground Floor, Carousel Court, Festival Mall Alabang in Quezon City.

But don’t you worry, the fun doesn’t stop at Alabang! You may purchase the finest products of Cagayan Valley with just a few clicks. Shoppers may treat themselves with Padday na Lima’s products through these sites: Mayani.ph — Farm-fresh produce delivered to your doorstep and PaddayNaLima.com (through Deliver-E).

For more information, please visit their social media accounts: Facebook DTI.Region02; Instagram, X, and Tiktok.

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BingoPlus Foundation empowers 60 scholars with the launch of P.L.U.S. Factor Leadership Program

September 11, 2024 | 9:30 am

Bingo1-OL — Eusebio Tanco, Chairman of DigiPlus Interactive, and leaders across the company and BingoPlus Foundation welcome 60 scholars during the FutureSmart Leaders Assembly.

The BingoPlus Foundation, the philanthropic arm of DigiPlus launched its P.L.U.S. (Pioneering Leadership and Uplifting Service) Factor Program — an initiative designed to transform the lives of scholars from across the Philippines. More than just a scholarship, the P.L.U.S. Factor Program is a comprehensive four-year journey that empowers scholars with essential leadership skills, resilience, and a commitment to service, equipping them to be the next generation of changemakers.

The P.L.U.S. Factor Program represents the Foundation’s deep commitment to nurturing young talents by providing not only financial support but also the tools to thrive beyond the classroom. The launch of the P.L.U.S. Factor Program took place at the FutureSmart Leadership Assembly at iAcademy Nexus on Sept. 7, 2024.

The event brought together all 60 scholars from different parts of the Philippines, some traveling from as far as Camarines Sur, Cebu, Davao, and other cities in Luzon, Visayas and Mindanao. This gathering was a powerful testament to the Foundation’s commitment to inclusivity and its dedication to shaping a future where every young person has the opportunity to lead and succeed.

“We believe education is more than just a stepping stone — it is a launchpad for future leaders who can pioneer change and uplift their communities,” says Angela Camins-Wieneke, Executive Director of the BingoPlus Foundation. “Our P.L.U.S. Factor Program is designed to nurture Pioneering Leadership and Uplifting Service among our scholars. It is our way of investing in their potential, empowering them to lead purposeful lives and make a difference.”

An empowering start: FutureSmart Leadership Assembly

DigiPlus Interactive executives, such as Interactive Director and AB Leisure Exponent President Jasper Vicencio, become mentors in cultivating a Growth Mindset in the youth.

Through quarterly workshops, scholars will engage in immersive learning experiences focusing on personal growth, effective communication, career preparation, and professional development. This initiative aims to cultivate well-rounded individuals who are ready to excel in their careers and contribute meaningfully to society.

“This program isn’t just about financing your education; it’s about building your future,” said Miss Universe Philippines, Chelsea Manalo, in her talk about the power of cultivating a mindset for the youth. “Education is the great equalizer. By investing in your growth, the BingoPlus Foundation is helping you build the right skills and confidence to overcome obstacles and chase your dreams. We believe in your potential to become the leaders who will take on the world.”

DigiPlus Chairman Eusebio Tanco also addressed the scholars with a powerful message: “Schools teach us many things, but they rarely prepare us to face life head-on. Through the P.L.U.S. Factor Program, we aim to instill in you the mindset to be resilient, make bold decisions, and lead with purpose. Our support for your education goes beyond financial assistance; we are committed to your holistic growth.”

A vision for meaningful impact

DigiPlus Interactive Vice-President and BingoPlus Foundation COO Celeste Jovenir

The P.L.U.S. Factor Program is part of a broader mission by DigiPlus, through the BingoPlus Foundation, to drive social development and foster a digitally-advanced and resilient future for all. DigiPlus has consistently demonstrated its commitment to positive social impact, evidenced by its increase in the Foundation’s outreach budget by 500% to over P100 million. The company’s efforts are not just limited to digital innovation and responsible gaming but extend to creating meaningful opportunities for the youth and underprivileged communities.

Celeste Jovenir, DigiPlus Vice-President for Investor Relations and BingoPlus Foundation COO, highlighted the transformative nature of the initiative: “DigiPlus is proof that transformation isn’t just a buzzword; it’s a necessity for growth and survival. We’ve embraced digital, disrupted the status quo, and built something truly extraordinary. Now, with the P.L.U.S. Factor Program, we are excited to share that journey of transformation with all of you.”

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June FDI net inflows at four-year low

September 11, 2024 | 12:34 am

US dollars-currency — JOHN GUCCIONE-PEXELS

By Aaron Michael C. Sy, Reporter

PHILIPPINE foreign direct investment (FDI) net inflows sank to an over four-year low in June amid lower placements across all instruments, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday.

The inflows fell by 29% to $394 million from $555 million a year ago, preliminary data from the BSP showed.

Month on month, net inflows dropped by 27.55% from $510 million in May.

June’s net inflow was the lowest level since the $314 million recorded in April 2020.

“The decline resulted from lower net inflows across all major FDI components,” the BSP said.

Nonresidents’ net investments in debt instruments declined by 30% year on year to $213 million in June from $304 million, central bank data showed. These consist mainly of intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines.

Net investments in equity capital other than the reinvestment of earnings likewise went down by 33.2% to $74 million from $111 million a year ago.

Equity capital placements slid by 34.09% year on year to $87 million, while withdrawals dropped by 38.1% to $13 million.

Reinvestment of earnings also decreased by 23.4% to $107 million from $140 million a year ago, while investments in equity and investment fund shares dropped by 27.89% to $181 million.

By source, equity capital placements were mainly from Japan (47%), followed by the United States (15%), Sweden (14%) and Singapore (14%).

These were invested mainly in the manufacturing (48%), real estate (18%), wholesale and retail trade (16%) and financial and insurance (11%) sectors.

NET INFLOWS RISE IN FIRST HALF
Meanwhile, in the first semester, FDI net inflows increased by 7.9% to $4.4 billion from $4.1 billion a year earlier, BSP data showed.

Investments in equity and investment fund shares rose by 32.7% year on year to $1.71 billion in the January-to-June period.

Net foreign investments in equity capital surged by 62% to $1.197 billion in the six-month period. Placements went up by 57.9% to $1.158 billion and withdrawals rose by 41.5% to $261 million.

These placements mostly came from the United Kingdom (52%), followed by Japan (30%) and the United States (7%), and were mostly invested in the manufacturing (77%) and real estate (10%) industries.

Meanwhile, net investments in debt instruments went down by 3.4% to $2.725 billion in the first semester from $2.821 billion a year ago.

Reinvestment of earnings also dropped by 6.7% to $514 million.

FDI net inflows slumped in June due to elevated interest rates, as the market at that time was still uncertain about the start of the monetary easing cycles of both the BSP and US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board on Aug. 15 reduced its policy rate by 25 basis points (bps) to 6.25%, its first easing move in nearly four years. Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to rein in inflation.

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

Meanwhile, the Fed is widely expected to begin its easing cycle at its Sept. 17-18 policy meeting, with markets pricing in a 25-bp cut at the review and 100 bps in reductions for this year. The US central bank has kept the federal fund target rate at 5.25%-5.5% range following increases worth 525 bps from March 2022 to July 2023.

Still, FDI inflows grew year on year in the six months ending June as the Philippines posted robust economic growth last quarter compared with other countries in the region, Mr. Ricafort said.

Philippine gross domestic product (GDP) expanded by 6.3% in the second quarter, bringing first-half growth to 6% and meeting the low end of the government’s 6-7% target for the year.

At 6.3%, the Philippines’ GDP growth was the second-fastest in the April-to-June period, only behind Vietnam (6.9%). It was ahead of Malaysia (5.8%), Indonesia (5%) and China (4.7%).

“For the coming months, further cuts in BSP and Fed rates amid the easing inflation trend would further reduce borrowing costs that would help spur greater global investments, business, and other economic activities worldwide, which would thereby help boost FDIs,” Mr. Ricafort said.

“We expect [FDIs] to get better as we have seen so far this July-August, particularly, as BSP did a rate cut within the period mentioned,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

The central bank expects to end 2024 with $9.5 billion in FDI net inflows. In 2023, net inflows fell by 6.6% year on year to $8.9 billion.

July trade gap widest in 16 months

September 11, 2024 | 12:33 am

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES in July posted its widest trade deficit since March 2023 as imports grew at their fastest clip in three months, outpacing the uptick in exports, the Philippine Statistics Authority (PSA) reported on Tuesday.

Preliminary data from the PSA showed that the country’s trade-in-goods balance — the difference between exports and imports — stood at a $4.87-billion deficit in July, 18.05% bigger than the $4.12-billion gap a year ago.

Month on month, the July trade gap also widened by 12.73% from the $4.32-billion deficit in June.

The July trade deficit was the widest monthly gap since $5.02 billion in March 2023.

Meanwhile, for the first seven months, the Philippines’ trade deficit narrowed by 5.78% to $29.91 billion from $31.75 billion a year ago.

The country’s balance of trade in goods has been in the red for 110 straight months (nine years) or since the $64.95-million surplus in May 2015.

In July, the value of imports increased by 7.2% year on year to $11.12 billion from $10.37 billion, which was the fastest rise since April’s 13%. This was also the highest import value since the $11.63 billion recorded in March 2023.

Month on month, imports jumped by 12.4%.

For the first seven months, imports declined by 1.04% annually to $72.57 billion.

Lower commodity prices in the global market made imports more attractive to local buyers, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The seasonal increase in importation activities in the third quarter, a consistent pattern seen for many years, could lead to a further pickup in imports,” he said, adding that the peso’s recent appreciation versus the dollar would make imports cheaper and exports more expensive.

After trading at the P58 level against the dollar and hitting 18-month lows in May due to uncertainty over the timing of interest rate cuts here and abroad, the peso has since recovered, closing at the P56 level at end-August and even returning to the P55 mark earlier this month.

Meanwhile, July exports inched up by 0.1% to $6.249 billion from $6.246 billion a year ago, marking the first annual growth since April’s 27.9%. Month on month, exports went up by 12.24%.

Year to date, exports have risen by an annual 2.59% to $42.66 billion.

Exports are unlikely to post “significant gains” for the rest of the year, Union Bank of the Philippines, Inc., Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“The sober export outlook in the second half of 2024 is against a backdrop of lackluster China growth and risk of slower prospects for developed markets that already prompted key central banks, led by the European Central Bank, Bank of England and Bank of Canada, to start dismantling their high interest rate structures to prioritize growth moving forward, likely to be followed by the US Federal Reserve,” Mr. Asuncion said.

The Development Budget Coordination Committee expects 5% and 2% growth in exports and imports, respectively, this year.

IMPORTS
In July, imports of raw materials and intermediate goods picked up by 13.31% to $4.22 billion, accounting for 38% of total imports for the month.

Imported capital goods rose by 9.52% to $3.29 billion making up 29.6% of the total. Imports of consumer goods increased by 3.11% to $2.13 billion for a 19% share.

By value, imports of electronic products were the highest at $2.53 billion in July, up by 11.84% from last year. They accounted for 22.8% of total imports.

These were followed by mineral fuels, lubricants and related materials at $1.44 billion (12.9%) and transport equipment at $1.03 billion (9.2%)

China was the biggest source of imports in July with a value of $3.08 billion, making up 27.7% of the total import bill.

It was followed by Indonesia with imports valued at $947.55 million (8.5%), Japan with $893.54 million (8%), South Korea with $810.32 million (7.3%) and the United States with $675.58 million (6.1%).

EXPORTS
Meanwhile, among major types of goods, exports of manufactured goods went down by 3.1% year on year to $4.98 billion in July, but still made up the bulk or 79.6% of the total.

On the other hand, exports of mineral products rose by 11.4% to $583.6 million.

By commodity group, exports of electronic goods dropped by 11.9% to $3.25 billion from $3.69 billion a year ago. Still, electronic products were the country’s top export in terms of value, accounting for 52.1% of the total.

Among electronic products, semiconductor exports dropped by 22.63% to $2.37 billion.

Electronic goods remained the Philippines’ top export amid the positive outlook for artificial intelligence and technology sector, Mr. Asuncion said.

“We have yet to see how demand for electronics will recover in the next coming months. The tech sector in the region and in other advanced countries would still need to do better,” he added.

Overall, the United States remained the top destination for Philippine-made goods in July, with exports valued at $1.06 million, making up 16.9% of the total for the month.

Japan was the second-biggest market for Philippine exports with a value of $872.43 million (14% share), followed by China with $791.29 million (12.7%), Hong Kong with $744.82 million (11.9%) and South Korea with $305.17 million (4.9%).

Other top export destinations for the month were Taiwan, Germany, Thailand and the Netherlands.

Philippines may miss out on demographic dividend as job creation stays weak

September 11, 2024 | 12:32 am

Job fair-applicant — PHILIPPINE STAR/JOHN RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES’ one-year high unemployment rate in July highlights the economy’s inability to absorb workers into the labor force, which may result in the country missing out on the benefits of its demographic “sweet spot,” analysts said.

“The high unemployment rate especially among the new entrants shows the weakness of the economy in absorbing greater numbers of workers into the labor market,” Economics professor at the Ateneo de Manila University Leonardo A. Lanzona, Jr. told BusinessWorld in a Facebook Messenger chat.

“As the country is about to complete its demographic transition, more and more people will be in their working ages,” he added. “If the country is able to handle this phase well, it would reap demographic dividends. However, the country seems to be at a loss in generating the beneficial effects of this development.”

The country’s unemployment rate rose to a one-year high of 4.7% in July as fresh graduates entered the workforce, the Philippine Statistics Authority (PSA) said on Friday.

Preliminary data from the PSA’s Labor Force Survey (LFS) showed the jobless rate picked up from a two-decade low of 3.1% in June and was the highest since the 4.9% recorded a year ago.

This translated to 2.38 million unemployed Filipinos in July, up by 755,000 from 1.62 million in June. Year on year, this went up by 86,000 from 2.29 million in July 2023.

PSA Undersecretary and National Statistician Claire Dennis S. Mapa on Friday said these new graduates could not find jobs in the market, with youth unemployment, or Filipinos aged 15 to 24 in the workforce, reaching 1.02 million, contributing 43% to the jobless rate.

The demographic dividend refers to “the accelerated economic growth that can result from a rapid decline in a country’s fertility and the subsequent change in the population age structure,” according to the World Bank.

“Demographic dividend corresponds to a 20–30-year period in a country’s demographic transition when the proportion of working age population compared to the number of dependents increases rapidly,” it said.

In November 2023, National Economic and Development Authority Secretary Arsenio M. Balisacan said the “demographic sweet spot” could contribute at least a percentage point increase to the country’s growth potential or prospects for the next two to three decades.

This “window of opportunity” has started for the Philippines, he said, as its working age population is now growing faster than the overall population.

“At this period, savings rise and growth is felt, hence demographic dividends are earned. If we reach this phase, but if people are out of work, we will lose these dividends,” Mr. Lanzona said.

“One has to remember that this phase in our demographic transition happens only once, and if we fail to take advantage of this, we will miss our chance to escape the lower middle-income trap that we have been in for the last 40 years,” he added.

Federation of Free Workers President Jose Sonny G. Matula told BusinessWorld in a Viber message that the rise of joblessness is concerning, especially for those new to the workforce as “it reflects the challenges our economy continues to face despite recovery efforts.”

“The increase in joblessness is a signal that more needs to be done to create sustainable and decent jobs,” Mr. Matula said. “Structural issues in our economy, such as mismatched skills, limited job opportunities in certain sectors, and ongoing inflationary pressures, are contributing factors.”

Rising joblessness shows the need for immediate relief measures and long-term reforms to address the root causes of unemployment, he added.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco added that the country’s low labor force participation rate (LFPR) also shows that the government needs to do its part in providing more jobs for its working-age population.

The LFPR declined to 63.5% in July from 66% in June.

“With the private sector unable to provide quality jobs, the government has to step in, possibly through a jobs guarantee program, where it provides meaningful, quality jobs in sectors that the private sector does not find profitable. One is climate mitigation, like reforestation or river cleanup,” Mr. Velasco said in a Facebook Messenger chat.

JOB-SKILLS MISMATCH
For his part, Technical Education and Skills Development Authority (TESDA) Director-General Jose Francisco B. Benitez said addressing the education crisis is key to reaping the potential benefits of the country’s demographic transition,

“We should bridge them (workforce entrants) to a better pathway. The demographic dividend is real, but with the ongoing education crisis, it’s concerning. We really need to address it,” Mr. Benitez told BusinessWorld in mixed English and Filipino on the sidelines of an event on Tuesday.

“Compared to the Commission on Higher Education or even the Department of Education, TESDA has a faster response time because our courses are shorter. So, TESDA should also quickly provide the right kind of programs and assistance, particularly in empowering the youth,” he added.

TESDA is working to ensure that senior high school students who choose technical-vocation tracks have an apprenticeship pathway, Mr. Benitez said.

“If we can generate proper labor intelligence on a local level, then we can help those looking for a job or who might have a mismatch to have opportunities to gain the skills necessary to bridge that gap,” he added. “The kind of jobs required must come from the industry itself, including the specific skills they are seeking in order to provide employment to our fellow citizens.”

GREEN JOBS
Mr. Matula said he hopes the full implementation of the government’s Trabaho Para sa Bayan plan, which is a 10-year employment roadmap, and the Green Jobs Act would help boost job creation in the country.

“The landscape of green jobs in the Philippines is expanding, driven by national policies and international cooperation aimed at promoting sustainable development,” he said.

Mr. Matula cited a study by TESDA, which said the green job market is expected to generate about 5.10 million positions by next year, spanning sectors such as renewable energy, agriculture, waste management, and construction.

The Department of Labor and Employment (DoLE), he added, is actively conducting consultations and mapping projects to identify and promote green jobs in key sectors, such as energy, manufacturing, and tourism.

“DoLE needs to focus on programs that upskill and reskill workers to match the demands of growing industries, enhance labor market programs, and strengthen support for small and medium enterprises, which are the backbone of our job market,” Mr. Matula added.

Gov’t spending, domestic demand to drive economy

September 11, 2024 | 12:31 am

vegetable-public market — PHILIPPINE STAR/ WALTER BOLLOZOS

THE PHILIPPINE ECONOMY may grow above 6% this year and next, fueled by government spending, private consumption and strong external demand, although inflation risks and a potential slowdown in major trading partners like the US and China pose risks to the outlook, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Tuesday.

It added that while the country’s fiscal-monetary policy mix is “appropriate,” it can be tweaked “to support economic growth while rebuilding policy buffers.”

“The Philippine economy is expected to grow by 6.1% in 2024 and 6.3% in 2025, driven by higher government spending, as well as an upturn in external demand, and strengthening domestic demand,” AMRO Principal Economist Runchana Pongsaparn said in a statement following their annual consultation visit to the Philippines from Aug. 27 to Sept. 6.

“Private consumption is anticipated to grow faster for the rest of the year, supported by strong labor market conditions, lower inflation, and robust overseas remittances. With the start of the monetary policy easing cycle, we expect private investment sentiments to improve,” Ms. Pongsaparn said.

If realized, AMRO’s 2024 forecast would be within the government’s 6-7% target, while the 2025 outlook would fall below the 6.5-7.5% goal for that year.

Philippine gross domestic product (GDP) expanded by 6.3% in the second quarter, bringing first-half growth to 6%. To meet the lower end of the government’s target this year, the economy must expand by at least 6% in the second half.

Government spending rose by 10.7% in the second quarter, faster than 1.7% in the previous quarter and a reversal of the 7.1% contraction a year earlier. This was the fastest growth since the second quarter of 2022.

Meanwhile, growth in household consumption, which accounts for more than two-thirds of the economy, slowed to 4.6% in the second quarter from 5.5% a year ago.

“In the near term, the growth prospects of the Philippines could be subject to several risks. Higher inflation, especially from food prices, could dampen consumption,” AMRO said.

The think tank expects inflation to average 3.3% in 2024 and 3.1% in 2025, well within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target.

“While upside risks such as wage increases and local food supply shocks remain, the slowdown of headline inflation is expected to continue in the second half of 2024 due to lower international prices of fuel and food, and tariff cuts on imported rice,” it said.

In June, President Ferdinand R. Marcos, Jr. reduced the tariff on rice imports to 15% from 35% until 2028 to help bring down prices of the staple.

“At the same time, the economy could be challenged by a potentially sharp slowdown in major trading partners, such as the US, euro area, and China. Heightened geopolitical risks could increase the likelihood of global supply disruptions and further global economic fragmentation,” AMRO added.

“The country’s long-term potential growth could be constrained by insufficient infrastructure investment, vulnerabilities to climate change, and the prolonged scarring effects caused by the COVID-19 (coronavirus disease 2019) pandemic.”

POLICY ADJUSTMENTS
Amid an improving inflation outlook, the BSP has the leeway to ease benchmark interest rates further to help support economic growth, AMRO said.

“There is room to adopt a less restrictive monetary policy stance if current macroeconomic trends continue. However, if supply-side risks emerge, the whole-of-government approach should be taken to address inflationary pressures,” it added.

The Monetary Board on Aug. 15 cut the policy rate by 25 basis points (bps) to 6.25%, marking its first easing move in almost four years.

Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to rein in elevated inflation.

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

“With regard to the financial system, the authorities should consider a more active use of macroprudential toolkits, strengthen the institutional framework to safeguard financial stability, and deepen the bond and repo markets,” AMRO added.

On the fiscal side, the think tank said the government’s stance for this year and next is expected to remain “neutral” as it expects a gradual improvement in its budget deficit.

“The government is likely to continue its medium-term fiscal consolidation plan at a slower pace to better support economic growth. However, it will be prudent to accelerate the pace of fiscal consolidation if conditions allow,” it said. “In the medium term, restoring fiscal space remains critical to build greater resilience to external shocks amid elevated uncertainty.”

Under the government’s updated medium-term fiscal program, it has capped its budget deficit at 5.6% of GDP this year and at 5.3% next year. It targets to gradually narrow the gap annually to 4.7% in 2026, 4.1% in 2027, and 3.7% of GDP by 2028 as it wants to have fiscal space to invest in the economy.

The government must also focus on upskilling and reskilling to boost labor productivity, according to AMRO, and bolster efforts to attract foreign direct investments and encourage technology transfer.

“Furthermore, a comprehensive strategy for enhancing the country’s competitiveness, including raising infrastructure investment, continuing digitalization and developing a sustainable economy, is crucial to bolster the Philippines’ economic growth potential,” it said. — B.M.D. Cruz

Airlines call for smooth NAIA terminal transition; NNIC assures gradual shift

September 11, 2024 | 12:07 am

IMPLEMENTING terminal reassignments at Ninoy Aquino International Airport (NAIA) will need adequate time to ensure a smooth transition and minimal disruption to passengers, local airlines said on Tuesday.

“To ensure a seamless transition with minimal disruption to passengers, a thorough consultative process and sufficient preparation time are essential for every terminal transfer,” Cebu Pacific said in a statement.

The Gokongwei-led budget carrier said discussions and coordination to transfer its flights from the Terminal 1 of Singapore’s Changi Airport to Terminal 4 took a year.

“This illustrates the critical need for comprehensive planning and cooperation in such transitions,” Cebu Pacific said.

According to the New NAIA Infrastructure Corp. (NNIC), the terminal reassignment is included in its “quick fixes” plan for NAIA, which will be implemented within three months to a year following its takeover on Sept. 14.

“Ultimately, what matters most is ensuring minimal disruption for passengers, especially during peak travel periods like Christmas, which is the busiest time of year for us,” Cebu Pacific said.

Under the terminal reassignment plan of NNIC, Terminal 1 will be designated for Philippine Airlines, Terminal 2 for domestic flights, Terminal 3 for all foreign airlines including Cebu Pacific and AirAsia Philippines’ international flights, and Terminal 4 for AirAsia Philippines’ domestic operations.

“Such terminal reassignment requires careful planning, including time and motion studies, consideration of environmental factors, and adequate time for implementation to minimize disruptions, especially as we are also nearing the peak season,” AirAsia Philippines said.

For flag carrier Philippine Airlines, the terminal reassignment should be further studied.

“We just need to identify the pros and cons of transferring to a terminal. And then if there will be cons that can be addressed, we can work it out together. I think that’s the most reasonable timeline to transfer,” PAL President and Chief Operating Officer Stanley K. Ng said.

GRADUAL IMPLEMENTATION
“Any future changes or improvements, including terminal reassignments, will be implemented gradually and strategically,” NNIC said in a statement.

NNIC General Manager Angelito A. Alvarez said these changes are part of a broader plan to modernize the airport and elevate the overall passenger experience.

“The standard objective for assignment in multi-terminal airports is to ensure, as much as possible, for each airline to be in one terminal to make flight connections easy,” said Nigel Paul C. Villarete, senior adviser on public-private partnership at the technical advisory group Libra Konsult, Inc.

He said bigger airlines or those with higher daily frequencies must be assigned first followed by smaller carriers or those with lesser daily number of flights.

“Of course, you need to consider the international and domestic flights because these need customs and immigration facilities,” Mr. Villarete said. — Ashley Erika O. Jose

DMCI Power pushes SPUG exclusion from coal ban

September 11, 2024 | 12:06 am

DMCI Power Corp., a subsidiary of DMCI Holdings, Inc., is pushing for the exclusion of Small Power Utilities Group (SPUG) power plants, operated by the National Power Corp. (NPC) for off-grid areas, from the coal moratorium.

“I think the moratorium should exclude SPUG because, in SPUG, you are replacing diesel — the most expensive fuel,” DMCI Power Chairman and Chief Executive Officer Isidro A. Consunji told reporters in mixed English and Filipino late Monday.

DMCI Power operates in areas served by SPUG.

SPUG power plants provide electricity to remote and off-grid areas not connected to the main power grids. DMCI Power is involved in generating power for these areas, often through coal-fired power plants.

To date, NPC operates 272 SPUG power plants in 222 areas.

In 2020, the Department of Energy issued a moratorium on the development of new coal-fired power plants.

Mr. Consunji said that the company’s coal-fired power plant in the off-grid area of Masbate supplies electricity at a rate of P9 to P10 per kilowatt-hour (kWh), which is lower than the P19 to P23 per kWh cost of diesel-generated electricity.

DMCI Power has an existing 15-year power supply agreement with Masbate Electric Cooperative through a competitive selection process.

The company executive said that consumers in SPUG areas “do not have the money to pay for their electricity bills, but unfortunately, they are currently the ones paying for expensive electricity.”

He also said that the company’s proposed coal-fired power plant in Palawan will proceed as it was “pre-approved” even before the coal moratorium took effect.

DMCI Power focuses on providing energy to off-grid small and remote islands.

It operates and maintains bunker-fired power plants, diesel generating sets, and thermal power plants in Masbate, Palawan, and Oriental Mindoro.

MINING
Meanwhile, DMCI Holdings said that it could not comment on the Consunji family’s plans to inject its 10% stake in the Tampakan copper-gold project in South Cotabato to the listed firm.

In a regulatory filing, DMCI said that the transaction was “private transaction contemplated above the listed company.”

“No definitive agreement has been executed concerning this matter at this time,” the company added.

It said that DMCI’s potential 10% acquisition of the Tampakan mine site has not yet been discussed by its board of directors.

“Its infusion in DMCI’s portfolio will require the customary board approval requirement,” it added.

The Tampakan project is said to be among the largest untapped minefields in Southeast Asia. The site is estimated to contain 15 million tons of copper and 17.6 million tons of gold.

On the other hand, its mining unit DMCI Mining Corp. said it is still keen on starting the commercial operations of its new Zambales and Palawan nickel mine sites within the year.

“(Zambales) would be within the year; (for Palawan), our internal targets are also within the year,” DMCI Mining President Tulsi Das C. Reyes said.

Last year, Mr. Reyes said the company was targeting to begin operations at the Zambales nickel site by the first quarter of 2024, while the other site was targeted for the second quarter.

The company had said that it was securing permits for new mines in Zambales and Palawan to boost production and shipments.

He added that both mine sites expect to produce one million metric tons (MT) of nickel ore annually, based on its Environmental Compliance Certificate (ECC).

“Our ECC for Palawan is one million MT, and our ECC for Zambales is (also) one million MT,” Mr. Reyes said.

DMCI Mining’s new nickel mine would be operated by its subsidiary Zambales Chromite Metals Corp., with estimated ore of about 20 million MT.

“For Zambales Chromite, we hope to have good news in the near future… We have fully submitted all the documentation for Zambales,” he added.

The Zambales site would be in an existing area owned by the company’s unit Zambales Diversified Metals Corp. Additionally, Mr. Reyes said that the company is still planning to break ground for the Palawan mine site this 2024. The new mine site has an estimated 70 million MT of ore.

“It would be within the year, backhoes on the ground,” he added. The exact location of the Palawan site has yet to be disclosed.

DMCI Mining reported a net loss of P43 million for the second quarter, a reversal of the P250 million net income reported a year earlier. The company attributed this to weak market prices, reduced shipments, and costs incurred at its Palawan mine.

For the first half of the year, the company spent about P200 million on fleet expansion, exploration, and site development activities at pipelined mining areas.

The company operates open-pit mines in Palawan and Zambales through its subsidiaries Berong Nickel Corp. and ZDMC. It extracts nickel ore, chromite, and iron laterite. — Sheldeen Joy Talavera and Adrian H. Halili

Works by Philippine masters, pillars of contemporary art up for auction

September 11, 2024 | 12:06 am

THIS SEPTEMBER, rare creations by 19^thcentury masters and contemporary artists of the 1950s up to the ’80s can be acquired through Salcedo Auctions.

Some notable works in the catalogue are Fernando Amorsolo’s 45.7 x 61-centimeter oil-on-canvas painting Harvesting Perales, a romantic landscape depicting rural life, signed and dated 1949 in the lower right corner and estimated between P8.5 million to P9.5 million; and two vibrant Sabel paintings by Benedicto “BenCab” Cabrera from 2000 and 2008, the latter one sized 152 x 91 centimeters and fetching an estimate of P20 million to P22 million.

Of the cultural artifacts, an antique hagabi bench from the Northern Uplands, made from a single narra trunk, has been catching collectors’ attention. The traditional symbol of wealth and power among rich Ifugao families is estimated to fetch between P3.3 million to P3.5 million at the upcoming auction.

For those more interested in religious artifacts, a prized catch would be the solid ivory Santo Niño Dormido from Paoay, Ilocos, adorned in rose gold, with its estimate ranging from P1 million to P1.2 million.

These are just some of the 286 paintings, sculptures, pieces of furniture, fine jewelry, bags, and artifacts in Salcedo Auctions’ “The Well-Appointed Life” series, which will go under the hammer at the NEX Tower in Makati City on Sept. 14.

Salcedo Auctions director Richie Lerma told BusinessWorld that fine arts and collectibles auctions continue to draw interest. “Each season, the offerings change, which means if you miss the last one, there will always be excitement and joy to see what else is out there.”

He added that auction houses are in a “nice position now” because of Filipinos’ natural curiosity to discover more.

For example, the auction’s two paintings by Ang Kiukok highlight a lesser-known contrast in his work — Yellow Fish Skeleton from 1979, with an estimate of P3.3 million to P3.5 million, reflects his more intense earlier style; whereas Horse from 1988, estimated at between P15 million to P16 million, is known to be one of his most dynamic interpretations of any animal.

Unique works by stalwarts in the contemporary art scene are also brought to light to renew collectors’ interest. Jose John Santos’ 2006 oil-on-canvas painting The Handyman is estimated to fetch P5.5 million to P7 million for its distinct harmonious, muted take on figurative storytelling. Meanwhile, Rodel Tapaya’s 2014 acrylic-on-canvas depiction of the Bathala creation myth titled The Caretaker has an estimate of P3.8 million to P4.3 million.

“The interest in art is constantly renewing. It’s really up to us to foster growth in the art market, to keep people active, interested, engaged,” Mr. Lerma said.

Works by abstractionists are also anticipated to garner attention at the auction, namely those by Jose Joya, Cesar Legaspi, and Arturo Luz.

The public preview for “The Well-Appointed Life” runs until Sept. 13 at the podium level of the NEX Tower on 6786 Ayala Ave., Makati City. The auction itself will be held at the same venue on Sept. 14 at 2 p.m., with an online element for those who cannot attend the auction in person.

For more information, visit salcedoauctions.com. — Brontë H. Lacsamana

The many colors of love and death in Once on This Island

September 11, 2024 | 12:05 am

By Brontë H. Lacsamana, Reporter

Theater Review
Once on This Island
By Lynn Ahrens
Directed by Robbie Guevara
Presented by 9 Works Theatrical

ON A TROPICAL French Antilles island in the 1920s, young peasant girl Ti Moune falls in love with a wealthy boy, Daniel Beauxhomme. Having survived a deadly storm in her early childhood, she is convinced that her mysterious destiny lies with this alluring stranger she has crossing paths with.

The catch is that they are from two different worlds — she is from a cheerful village of dark-skinned descendants of African slaves, and he lives in a luxurious hotel owned by his light-skinned, French-descended family. A deal among four gods watching over them leads to a car accident, then Ti Moune finds Daniel and nurses him back to health.

As this unfolds, the realities of a society marked by a class divide elevate the story from a Caribbean retelling of The Little Mermaid to a moving tale with its own unique allure and magic.

In this latest version of the musical by 9 Works Theatrical (it has been presented numerous times in the last 30 years), a contemporary feel brings the source material closer to Filipino audiences. The preview night of the company’s staging of Once on This Island highlights how they’ve filled the production with effective design and fun, electric choreography.

Relatively unfamiliar to people who are not immersed in the theater world (unlike, say, Les Mis or Wicked), the musical is beloved among its fans. Many turned up to the preview on an evening of thunderstorms — the weather outside the theater matching that of the show inside which opened with a similar storm, with sounds of gusts of wind greeting the audience.

Mio Infante’s set is entrancing, cloth hanging from the ceiling reminiscent of rain and waves over a boardwalk circling the stage, where characters move and dance as if on an island.

Once on This Island boasts of a large cast of characters, each in period-accurate clothing and further bringing the distinct milieu to life with their every quirk and line.

On preview night, Thea Astley played Ti Moune, Sam Concepcion played Daniel, Raul Montessa took on the role of Tonton Julian and Lani Ligot that of Mama Euralie, Ti Moune’s adoptive parents, while the gods were played by Shiela Valderrama-Martinez (Erzulie, Goddess of Love), Garrett Bolden (Agwe, God of Water), Lorenz Martinez (Papa Ge, the Demon of Death), and Radha (Asaka, Mother of the Earth). Reese Iso played little Ti Moune. Shanaia Gomez took on the role of Daniel’s fiancée Andrea, PJ Rebullida was Daniel’s father Armand, and Jordan Andrews, Fay Castro, Samantha Libao, and Jonjon Martin played various storytellers.

Ms. Astley was truly the star of the show as she embodied Ti Moune — complete with the islander accent — and the full journey from naive and lively village girl to steadfast, loving woman. Her delivery was impeccable, her facial expressions and body language conveying the character’s inner thoughts.

The striking narrative takes on themes of family, humanity, and community, danced to the ensemble piece with JM Cabling’s infectious choreography. Tremendous, village-set dance pieces fully draw the audience in, with Ms. Valderrama-Martinez, Mr. Martinez, Radha, and Mr. Bolden being highlights as they portray with a mix of power and theatrics the quintessential gods and goddesses of the story.

Though Once on This Island was written in 1985, its themes resonate with audiences today, especially as Philippine culture has some similarities with the Caribbean.

Mr. Guevara’s direction puts a premium on the issues of race and class prevalent in the story, ensuring that it is both entertaining and educational.

Beyond being colorful and lively, Once on This Island will make audience members curious to learn more about the Broadway musical (the supposed live-action movie adaptation is stuck in production limbo). Ultimately, they will be moved by the universal tale of love surviving death.

Once on This Island runs until Sept. 29 at the Carlos P. Romulo Auditorium, RCBC Plaza, Ayala corner Gil Puyat Aves., Makati City. Tickets are available via ticket2me.net.

Angkas founder eyes expansion of four-wheel service Angcars

September 11, 2024 | 12:05 am

DBDOYC, Inc., operator of the Angkas ride-hailing app, is eyeing an expansion of its four-wheel service Angcars beyond Metro Manila, its founder said.

“There will definitely be expansions outside of Metro Manila as well,” Angkas Founder Angeline Xiwen Tham told reporters on the sidelines of the Management Association of the Philippines 22^nd International CEO Conference in Taguig City on Tuesday.

“It’s basically any area where there’s a need. This is something that we’re closely working with the local government units on,” she added.

Currently in beta phase, Angcars is serving areas such as Mandaluyong, Makati, Pasig, and Bonifacio Global City in Taguig. The service also only caters up to four passengers.

Angcars also seeks to introduce options like Angcars Economy and Angcars Plus, which would allow a passenger to request four-seater or six-seater vehicles.

Ms. Tham said that Angkas is also looking to expand the coverage of its motorcycle taxi service.

“There’s a lot of plans to launch the service outside of other locations. We have a lot of interest from local government units to bring this service to help them to professionalize the transportation systems in their cities,” she said.

The company’s two-wheel service is currently available in Metro Manila, Bulacan, Rizal, Laguna, Cavite, Cebu, and Cagayan de Oro.

When asked about the company’s public listing plans, Ms. Tham said that Angkas is currently prioritizing business growth.

“I think we’re focused on building the business right now and making sure to bring the right service to our customers. That’s really our focus at this point,” she said. — Revin Mikhael D. Ochave

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