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DMPI reports gains in key markets

Bugo cannery workers in Cagayan de Oro — DELMONTEPACIFIC.COM

DEL MONTE Philippines, Inc. (DMPI), a subsidiary of Philippine- and Singapore-listed food and beverage producer Del Monte Pacific Ltd. (DMPL), saw its earnings climb for fiscal year 2025 (May 2024-April 2025), led by its international business.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 40% to P8.6 billion, DMPI said in a statement on Tuesday. The company did not provide specific net income figures.

Total sales increased by 14% to P44.2 billion, driven by international sales, which grew by 22% to P19.5 billion on the back of strong exports of fresh pineapples and packaged products.

DMPI attributed the growth to performance in key markets such as China, South Korea, and Japan, driven by a better product mix.

The company said it grew its market share in North Asia to 53%. It also reported higher packaged exports to Europe and the Americas.

On the other hand, domestic sales increased by 6% to P21.4 billion on solid demand across key product categories, including beverages, packaged fruits, and culinary essentials.

DMPI said its beverages gained market share due to revitalized campaigns and new products. The fruits segment also saw increased relevance beyond the holiday season and re-established its role in year-round celebrations and family desserts.

“Our strong fiscal year 2025 results reflect the deep commitment and hard work of our team, and our relentless focus on consumer engagement, innovation and cost efficiency,” DMPI President and Chief Operating Officer Luis F. Alejandro said.

“With an EBITDA growth of 40%, we are truly proud of what we have achieved, both in DMPI’s domestic and international markets. Our promise is to continue delivering value to our stakeholders,” he added.

DMPL recently disclosed that its United States business, led by Del Monte Foods Holdings Ltd. (DMFHL) and certain subsidiaries, initiated voluntary Chapter 11 proceedings in the bankruptcy court for the District of New Jersey on July 1.

The filing provided access to $912.5 million in financing as the company restructures its finances and operations. The US subsidiary will also pursue an asset sale.

Despite this, DMPL said its business remains financially stable, led by DMPI’s operations.

DMPL shares dropped by 7.22%, or 21 centavos, to P2.70 per share on Tuesday. — Revin Mikhael D. Ochave

Meralco says power rates may rise in July

PHILIPPINE STAR/RYAN BALDEMOR

THE OVERALL electricity rate may increase in July due to anticipated increases in generation and transmission charges, Manila Electric Co. (Meralco) said on Tuesday.

“While we have yet to receive all the final billings from our suppliers, indication point to a possibility of an increase in the generation charge this month,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a statement.

Mr. Zaldarriaga attributed the potential upward adjustment in the cost of purchased power to the depreciation of the peso, which will affect the dollar-denominated costs of the power distributor’s suppliers.

“We hope that the expected increase will be mitigated by lower WESM (Wholesale Electricity Spot Market) charges,” he said.

The Independent Electricity Market Operator of the Philippines earlier reported a 3.9% decline in the average WESM rate to P3.86 per kilowatt-hour (kWh) for the June supply period amid a stable supply margin.

For Luzon alone, the WESM rate decreased by 0.32% to P3.91 per kWh from P4.23 per kWh a month earlier.

The WESM is a centralized venue where energy companies can buy power when their long-term contracted supply is insufficient for customer demand.

“We also see possibility of higher transmission charge due to the pressure in reserve market prices for the June supply month compared with the previous month,” Mr. Zaldarriaga said.

The generation charge typically accounts for more than 50% of the monthly electricity bill, while the transmission charge accounts for nearly 3%.

Last month, Meralco’s electricity rate decreased by P0.1099 per kWh to P7.3552 per kWh, primarily due to lower generation charges.

Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, and delivering power to around eight million customers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in Business-World through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Philippine labor force situation

THE PHILIPPINES’ unemployment rate went down to 3.9% in May from 4.1% in April, with the number of individuals in the labor force hitting an all-time high, the government reported on Tuesday. Read the full story.

Haus Talk, Inc. announces Annual Stockholders’ Meeting on July 30 via remote communication

 


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Side Show is back with a more allegorical treatment

THE 1997 Broadway musical Side Show, written by Bill Russell with music by Henry Krieger, tells the true story of conjoined twins Daisy and Violet Hilton, who went from being a sideshow attraction to vaudeville.

Its original staging was nominated for four Tony Awards, including Best Musical, in 1998. The same script will be used for an upcoming staging by The Sandbox Collective which is opening on July 26.

Side Show was most recently staged in Manila in 2018 by Atlantis Productions, though that version was based on the 2014 Broadway revival.

This original staging offers an opportunity to do a politically relevant take on the story, according to director Toff de Venecia, who is also the managing artistic director of The Sandbox Collective.

“This is my favorite version of the show. It’s the one I grew up with, and it’s also the version I got to direct for Ateneo blueREP back in 2010,” he said at a June 25 press preview of the musical.

Sandbox has been known to take on “advocacy-driven work,” which motivated their choice to do something “grayer and more political.”

“We like to platform advocacies and we want to talk about social issues, and I think this was the perfect version of the show to be able to do just that,” said Mr. De Venecia.

THE CAST
This staging features Tanya Manalang-Atadero and Molly Langley alternating as Violet Hilton, while Marynor Madamesila and Krystal Kane will be alternating as Daisy Hilton. Reb Atadero and CJ Navato alternate as Daisy’s love interest Terry Connor, and Tim Pavino and Vien King take on Violet’s love interest Buddy Foster.

Jon Santos plays the role of Boss, while Marvin Ong and Joshua Cabiladas alternate in the role of Jake.

“When we were studying the material, it was always clear to us that this was a show about freaks, and if you really dig deep, a freak is an ‘other,’” Mr. De Venecia said.

“If you start looking into the politics of the ‘other,’ it’s really the marginalized, the underrepresented, the voiceless, the oppressed.”

For Ms. Manalang-Atadero, the experience of having to play a twin — a conjoined one at that — was meaningful for her as an only child.

“It’s made me a more generous and considerate co-actor, because every time I make a choice, I have to consider her [the actress playing Daisy], which makes it more special,” she explained. “For the first time in my life, I’m starting to know what it feels like to have a biological sister.”

The same goes for Ms. Kane, who learned the value of good chemistry onstage, especially for a role like conjoined twins.

“Do you know how you just feel like you’re connected to someone? I felt that way when I was singing with Molly, and I knew that if we got the roles, I would really be able to do this with her,” she said.

EXPERIENTIAL
The staging is more contemporary, with an alley-style setup in the middle and seating on both sides of the stage, according to Mr. De Venecia.

“I don’t want to say it’s immersive, but it’s very experiential. It’s almost like you’re there with them,” he said, citing Himala as another musical which had a similar, experiential feel.

Side Show, known for its vintage circus atmosphere filled with an eccentric cast of characters and grand performances, will ultimately explore deeper themes.

Mr. Pavino hinted that the script is “juicy,” with songs that weren’t in the latest Manila staging in 2018.

“Hopefully, when you watch it, you feel seen. Even if there’s a part of you that you hide from everybody, we want you to feel validated when you watch,” added Mr. Atadero.

Ivan the Selfie Magician is a consultant for this production. Specializing in illusions and magic performance, he has been teaching the cast both close-up magic and sleight-of-hand tricks.

Side Show runs from July 26 to Aug. 16 at the Power Mac Center Spotlight Black Box Theater in Circuit Makati. Tickets, priced from P2,500 to P2,900, are available via Ticket2Me. — Brontë H. Lacsamana

Cloud migration, strong security needed for safe GenAI use

STOCK PHOTO | Image by pressfoto from Freepik

Philippine companies should prioritize cloud adoption and implement robust data security controls to maximize the benefits of generative artificial intelligence (GenAI), according to Amazon Web Services (AWS).

“For most organizations, the easiest way for them to be able to take advantage of GenAI is going to be through cloud services,” Bryce Boland, Amazon Web Services head of security solution architecture for the Asia-Pacific re-gion and Japan, told a virtual news briefing on Tuesday.

GenAI applications, like any other software, require a secure architecture, he pointed out.

“Whenever you’re building a generative AI application… there’s going to be web services, there’s going to be databases and so on,” he said. “They will need to be designed and architected to have the right security controls in place.”

Only 6% of organizations in the Philippines have “mature” cybersecurity systems that could handle external threats, according to Cisco Systems, Inc.

To address vulnerabilities, Amazon Web Services offers Amazon Inspector, which was recently expanded to include code security features.

“Customers can use Amazon Inspector Code Security to implement checks on their code to make sure that it doesn’t have vulnerabilities that could be exploited to then deploy ransomware to their company or their customers,” he said.

He also cited IAM Identity Center, which allows organizations to manage and restrict access to sensitive resources, as well as AWS Shield’s Network Security Director, a tool that enhances visibility on cloud networks and recom-mends remediation steps for missed security measures.

Amazon Web Services offers more than 200 on-demand cloud services globally, including computing, storage, databases, AI, machine learning and internet of things (IoT) infrastructure. The platform operates across key markets in the Asia-Pacific region, Americas, Europe and South Africa.

“We recognize that the AWS infrastructure is critical to many countries’ commercial and public sector operations,” Mr. Boland said, adding that the company is built to comply with 143 security standards globally.

He also noted that the company regularly undergoes security audits to ensure compliance and maintain infrastructure resiliency.

“[Customers] want to be able to manage their security to be able to respond faster, and so we are using generative AI in our internal tooling to help us respond more rapidly to changes in the security landscape,” he added.

As of 2024, Amazon Web Services held about 30% of the global cloud infrastructure market, according to software firm HP Insights. — Beatriz Marie D. Cruz

Blending ballet, drama, and the orchestra in a twin bill

BALLET meets drama meets orchestral music as Ballet Philippines (BP), Repertory Philippines (REP), and the Manila Symphony Orchestra (MSO) collaborate for a kid-friendly season opener: Peter and the Wolf and Little Red Riding Hood.

It will be the first time in Philippine performing arts history that these three cultural institutions are joining forces. They are bringing to life a twin bill made up of Peter and the Wolf, a symphonic tale for children, and Little Red Riding Hood, a full-length ballet.

Throughout the performance, live orchestral music will be provided by the MSO, with the full orchestra remaining onstage for the entire show.

The dream of this kind of joint effort has been a long time coming. “This is what I call ‘ambitious.’ Back in 2021, we were targeting to present a bigger play, but it never happened. But it never stopped us from dreaming,” said BP President Kathleen Liechtenstein at the press conference on July 1.

PETER AND THE WOLF

Written by Russian composer Sergei Prokofiev, each character of Peter and the Wolf is represented by a corresponding instrument in the orchestra: the bird by a flute, the duck by an oboe, the cat by a clarinet, the grandfather by a bassoon, the wolf by horns, and Peter by the strings.

“It’s like an introduction to symphonic music for children,” said REP Artistic Director Jeremy Domingo. “We’re bringing in a musical theater element with movement, with narration, and bringing you something unique and exciting that you’ve never quite seen before.”

The cast is made up of theater actors and ballet dancers, with Raja Miclat-Janssen making his stage debut as Peter.

Ms. Liechtenstein said that REP will provide acting training for the ballerinas. “They are actually going to undergo workshops to know how to act. That’s the challenge for BP,” she said.

LITTLE RED RIDING HOOD

Meanwhile, the works of French composer Camille Saint-Saens and Norwegian composer Edvard Grieg are used for Little Red Riding Hood the ballet, which is a playful reimagination of the classic fairy tale by Charles Perrault.

For BP Artistic Director Misha Martynyuk, choosing which iteration of the tale to stage was important. “Around the world, there are hundreds of versions. We’ll be reimagining our version to be more playful,” he explained.

“We can’t have the wolf eat the grandmother on stage,” he pointed out as an example, noting that the twin bill is meant to be family friendly.

REP’s Mr. Domingo said that the whole production is more or less “musical theater with movement and narration,” which is something unique that the Filipino audience has not seen before.

As part of BP and MSO’s outreach programs, 1,000 tickets to the performance will be given for free to indigenous children and men in uniform.

“This initiative is about more than just performance — it’s about access, education, and inspiring the next generation,” said REP President Mindy Perez-Rubio, Ms. Liechtenstein, and MSO Executive Director Jeffrey Solares in a joint statement.

“By opening our doors to families from across the community, we hope to spark a lifelong love for the arts.”

Peter and the Wolf and Little Red Riding Hood will run for five performances from Aug. 1 to 3 at The Theatre at Solaire in Parañaque City. Tickets are available via TicketWorld and at the Solaire Box Office. — Brontë H. Lacsamana

PAL revives Manila-Sapporo flights

PHILIPPINE STAR/EDD GUMBAN

FLAG CARRIER Philippine Airlines (PAL) is set to revive its direct flights between Manila and Sapporo as part of its plan to strengthen connections between the Philippines and Japan.

In a media release on Tuesday, the flag carrier said it will start operating its nonstop Manila-Sapporo flights from Nov. 24 until March 27, 2026, three times a week.

PAL will offer these seasonal flights every Monday, Wednesday, and Friday, operating the service with an Airbus A321neo, which can accommodate up to 168 passengers.

It added that the airline will operate this route every succeeding winter season from November to March.

“We are thrilled to announce the reopening of our direct flights from Manila to Sapporo, which will help us strengthen both bilateral relations and cultural ties with our Japanese counterparts,” PAL President Richard Nuttall said.

The revival of this direct route expands PAL’s destination points and routes in Japan. At present, the flag carrier operates nonstop services to Osaka (Kansai), Nagoya, Fukuoka, Tokyo (Haneda), and Tokyo (Narita) from Manila, including direct flights from Cebu to both Osaka (Kansai) and Tokyo (Narita).

PAL previously operated the Manila-Sapporo route from December 2018 to March 2020.

In April, PAL said it was expecting passenger volume to climb by 20% this year from 15 million passengers in 2024, boosted by the launch of new routes and the expansion of existing services.

The flag carrier, operated by PAL Holdings, Inc., had earlier announced its plan to expand its nonstop route network and explore more partnerships with other airlines to support its growth.

PAL Holdings reported a 20.28% year-on-year increase in attributable net income to P4.33 billion for the first quarter, driven by revenue growth.

Consolidated revenue rose by 2.51% to P46.95 billion from P45.8 billion in the same period last year.

Passenger traffic increased by 5% to 4.1 million in the first quarter. Its cargo segment handled 52.6 million kilograms across more than 28,000 flights in international and domestic networks.

At the local bourse, shares in PAL Holdings closed unchanged at P4.17 apiece. — Ashley Erika O. Jose

What did ancient Rome smell like? Honestly, often pretty rank

PEOPLE walk past the Colosseum in Rome, Italy, July 31, 2020. — REUTERS

The roar of the arena crowd, the bustle of the Roman forum, the grand temples, the Roman army in red with glistening shields and armor — when people imagine ancient Rome, they often think of its sights and sounds. We know less, however, about the scents of ancient Rome.

We cannot, of course, go back and sniff to find out. But the literary texts, physical remains of structures, objects, and environmental evidence (such as plants and animals) can offer clues.

So what might ancient Rome have smelled like?

HONESTLY, OFTEN PRETTY RANK

In describing the smells of plants, author and naturalist Pliny the Elder uses words such as iucundus (agreeable), acutus (pungent), vis (strong), or dilutus (weak).

None of that language is particularly evocative in its power to transport us back in time, unfortunately.

But we can probably safely assume that, in many areas, Rome was likely pretty dirty and rank-smelling. Property owners did not commonly connect their toilets to the sewers in large Roman towns and cities — perhaps fearing rodent incursions or odors.

Roman sewers were more like storm drains, and served to take standing water away from public areas.

Professionals collected feces for fertilizer and urine for cloth processing from domestic and public latrines and cesspits. Chamber pots were also used, which could later be dumped in cesspits.

This waste disposal process was just for those who could afford to live in houses; many lived in small, non-domestic spaces, barely furnished apartments, or on the streets.

A common whiff in the Roman city would have come from the animals and the waste they created. Roman bakeries frequently used large lava stone mills (or “querns”) turned by mules or donkeys. Then there was the smell of pack animals and livestock being brought into town for slaughter or sale.

The large “stepping-stones” still seen in the streets of Pompeii were likely so people could cross streets and avoid the assorted feculence that covered the paving stones.

Disposal of corpses (animals and human) was not formulaic. Depending on the class of the person who had died, people might well have been left out in the open without cremation or burial.

Bodies, potentially decaying, were a more common sight in ancient Rome than now.

Suetonius, writing in the first century CE, famously wrote of a dog carrying a severed human hand to the dining table of the Emperor Vespasian.

DEODORANTS AND TOOTHPASTES

In a world devoid of today’s modern scented products — and daily bathing by most of the population — ancient Roman settlements would have smelled of body odor.

Classical literature has some recipes for toothpaste and even deodorants.

However, many of the deodorants were to be used orally (chewed or swallowed) to stop one’s armpits smelling.

One was made by boiling golden thistle root in fine wine to induce urination (which was thought to flush out odor).

The Roman baths would likely not have been as hygienic as they may appear to tourists visiting today. A small tub in a public bath could hold between eight and 12 bathers.

The Romans had soap, but it wasn’t commonly used for personal hygiene. Olive oil (including scented oil) was preferred. It was scraped off the skin with a strigil (a bronze curved tool).

This oil and skin combination was then discarded (maybe even slung at a wall). Baths had drains — but as oil and water don’t mix, it was likely pretty grimy.

SCENTED PERFUMES

The Romans did have perfumes and incense.

The invention of glassblowing in the late first century BCE (likely in Roman-controlled Jerusalem) made glass readily available, and glass perfume bottles are a common archaeological find.

Animal and plant fats were infused with scents — such as rose, cinnamon, iris, frankincense and saffron — and were mixed with medicinal ingredients and pigments.

The roses of Paestum in Campania (southern Italy) were particularly prized, and a perfume shop has even been excavated in the city’s Roman forum.

The trading power of the vast Roman Empire meant spices could be sourced from India and the surrounding regions.

There were warehouses for storing spices such as pepper, cinnamon, and myrrh in the centre of Rome.

In a recent Oxford Journal of Archaeology article, researcher Cecilie Brøns writes that even ancient statues could be perfumed with scented oils.

Sources frequently do not describe the smell of perfumes used to anoint the statues, but a predominantly rose-based perfume is specifically mentioned for this purpose in inscriptions from the Greek city of Delos (at which archaeologists have also identified perfume workshops). Beeswax was likely added to perfumes as a stabilizer.

Enhancing the scent of statues (particularly those of gods and goddesses) with perfumes and garlands was important in their veneration and worship.

AN OLFACTORY ONSLAUGHT

The ancient city would have smelled like human waste, wood smoke, rotting and decay, cremating flesh, cooking food, perfumes and incense, and many other things.

It sounds awful to a modern person, but it seems the Romans did not complain about the smell of the ancient city that much.

Perhaps, as historian Neville Morley has suggested, to them these were the smells of home or even of the height of civilization.

 

Thomas J. Derrick is a Gale Research Fellow in Ancient Glass and Material Culture at Macquarie University.

Arts & Culture (07/09/25)


SM Book Nook launches nationwide book drive

SM Supermalls, in partnership with the National Library of the Philippines, has launched the SM Book Nook Book Donation Drive. It has been rolled out across all SM malls to promote literacy and expand access to books. The campaign targets collecting 40,000 pre-loved books, which will benefit local communities, children, and affiliate libraries nationwide.


Bagets the Musical holding auditions

AUDITIONS are now open for the upcoming stage adaptation of the hit 1984 coming-of-age Filipino film Bagets. The iconic barkada from the 1980s is making a comeback onstage with a fresh generation of talented young performers. Auditions will be held on July 14 from 1 to 6 p.m., and on July 15 from 1 to 4 p.m. at the PETA Theater Center Studios, Quezon City. Those interested must fill up the official form on or before July 10 at https://forms.gle/rw1ZytRdzuQ1F2k99. They must also submit their latest CV, a headshot, and a full-body photo. Casting is open to males and females aged 15 to 50 years who can sing, act, and dance. Bagets the Musical is scheduled to run from Jan. 23 to March 2026 at the Newport Performing Arts Theater in Pasay City.


Play tackles toxic Filipino masculinity

ANG Balyena, a play which dives into the experience of a male survivor trying to navigate life after sexual assault, will be staged at the De La Salle-College of Saint Benilde beginning July 19. The two-hour production follows the journey of Jonah who, at the peak of his career, is suddenly faced with unresolved tensions and unspoken history. It is produced by Aninag Theater, a student-led theater company. It will have performances on July 19, 1 p.m., and from July 21 to 25, at 6 p.m. The theater is at the 5th floor of the Benilde Design + Arts Campus, Pablo Ocampo St., Malate, Manila. Tickets are priced at P400, with special discounted tickets at P320 for PWDs and senior citizens. Registrations can be made at tinyurl.com/AngBalyena.
Imahica Art Gallery to hold group show

The Imahica Art Gallery will open the latest edition of BRAINSTORM 3: An Abstract Art Group Show on July 19. This installment brings together over 40 artists exploring the possibilities of abstraction, from gestural strokes to structured minimalism. Artist Janddie Castillo curates the show, which is a celebration of artistic diversity, showcasing a wide range of works by members of the OBRAVO Artists Society. They include Nelson Castillo, Juno Galang, Jun Rocha, Manuel Gamboa, Isab Angeles, Nancy Lee, Manelle Huang, Maricris Salazar-Castillo, Nancy Palma-Cruz, Debra Bernales, Cris Fragata, YMY, Sam Penaso, Mico Escorpeso, and JC Castillo, among many others.


Dance showcase by BPAD at Benilde

STUDENT dance majors are set to perform in an intimate show titled Borders: BPAD in Motion, which spotlights the expressive range and physical nuance of solos, duos, and trios. The 90-minute public performance is set to highlight the term-end works of aspiring young artists from the De La Salle-College of Saint Benilde under the Bachelor of Performing Arts Major in Dance (BPAD). It is directed and choreographed by Dance Program Chairperson and former Ballet Philippines soloist Nina Anonas. It will be staged at the 6F Black Box Theater of the Benilde Design + Arts Campus, Pablo Ocampo St., Malate, Manila on July 29, 6 p.m. It is open to the general public. Tickets cost P200. Register via tinyurl.com/BORDERS-BPADInMotion.


Competition launched for Linggo ng Musikang Pilipino

IN celebration of Linggo ng Musikang Pilipino, the National Commission for Culture and the Arts (NCCA) has launched the inaugural Koro: Linggo ng Musikang Pilipino Chorale Competition. It will take place on Aug. 2 at the Metropolitan Theater in Manila. This year’s competition is envisioned to highlight Original Pilipino Music (OPM). Divided into two categories, namely the Children’s Choir and Adult Choir, each participating group is expected to embody harmony, teamwork, and a passion for Philippine music founded in various living music cultures of the Philippines. For more details, visit NCCA’s social media pages.


CCP Kabataang Gitarista now accepting applications

THE Cultural Center of the Philippines (CCP), through its Artist Training Division under the CCP Arts Education Department, is now accepting applications for Batch 13 of the CCP Kabataang Gitarista Program. Interested applicants must be bona fide Grade 7, 8, or 9 students in a public high school within the National Capital Region. They may apply by filling out and submitting the application form (downloadable through https://linktr.ee/CCPKGProgramAuditions2025) on or before Sept. 5, 12 p.m., via e-mail at artist.training@culturalcenter.gov.ph. Auditions will then be held on Sept. 6, 7 a.m., at the Tanghalang Ignacio B. Gimenez, CCP Complex, Pasay.


Shrek The Musical’s lead stars announced

THE producers of the upcoming Shrek The Musical have announced the stage musical’s principal cast, led by Jamie Wilson as Shrek. Krystal Kane will play Princess Fiona, Topper Fabregas will play Donkey, and Alfredo “Bibo” Reyes will take on the role of Lord Farquaad. Shrek The Musical is based on the DreamWorks Animation motion picture and the book is by William Steig. It will open on Oct. 31 at the Newport Performing Arts Theater, Pasay City. Tickets, priced from P1,500 to P4,500, are available at Ticketworld, Newport World Resorts Box Office, and Helixpay.


Karla Puno Garcia to direct A Chorus Line

THEATRE Group Asia (TGA) has announced that New York-based Emmy Award-winning choreographer, director, and performer Karla Puno Garcia will direct and choreograph its local production of A Chorus Line, opening March 2026 at the Samsung Performing Arts Theater in Circuit Makati. Ms. Puno Garcia is known for being the first Filipino cast member and dance captain in Hamilton.

Gov’t fully awards T-bonds despite rate uptick

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

The Bureau of the Treasury (BTr) fully awarded P30 billion in reissued 10-year Treasury bonds (T-bonds) on Tuesday, despite slightly higher yields, as inflation in June remained below target.

Total bids reached P64.04 billion, more than double the amount on offer, bringing the total outstanding volume for the bond series to P455.6 billion, the BTr said in a statement.

The bonds, which have a remaining life of seven years and two months, were awarded at an average of 6.128%, with accepted yields ranging from 6.1% to 6.135%.

The average rate rose by 0.2 basis point (bp) from the auction on June 10, though still 62.4 bps below the 6.75% coupon when it was first issued.

The awarded yield was also 5.1 bps above the 6.075% quoted for the seven-year benchmark and 3.1 bps higher than the 6.095% for the same bond series in the secondary market ahead of the auction, according to PHP Bloomberg Valuation service data.

“The T-bond average rate was within expectations but slightly higher than the market’s bid before the auction,” a bond trader said in a text message. “It seems investors are comfortable at this level for this specific tenor.”

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the uptick in yields to recent inflation.

“The T-bonds fetched a higher average rate compared with secondary market yields, as well as its previous issuance, after the slight pickup in June inflation,” he said in a Viber message.

Inflation accelerated to 1.4% in June from 1.3% in May but eased from 3.7% in June 2024. It remained within the Bangko Sentral ng Pilipinas’ (BSP) 1.1% to 1.9% forecast and below the 1.5% median forecast in a BusinessWorld poll of 17 analysts.

June was the fourth straight month that inflation stayed below the BSP’s 2-4% target. Inflation averaged 1.8% in the first half, slightly above the BSP’s 1.6% baseline forecast.

For July, the BTr aims to raise P250 billion from the domestic market — P125 billion in T-bills and another P125 billion in T-bonds.

The government relies on both local and foreign borrowings to help finance its budget deficit, which is capped at P1.56 trillion or 5.5% of gross domestic product this year.

OFW Remittances: Foolproof engine of growth

STOCK PHOTO | Image by from Freepik

(Part 1)

Last year, total personal remittances from overseas Filipino workers (OFWs) to the Philippines reached $38.34 billion, representing a 3% increase from the $37.21 billion recorded in 2023. Cash remittances (sent through banks) totaled $34.49 billion, up 3% from $33.49 billion in 2023. These remittances constituted some 8.3% of GDP and 7.4% of GNI in 2024. There are unofficial estimates that the total remittances annually can reach $40 billion or more if we include what the returning workers do not channel through banks but actually carry them in actual currencies or goods (pasalubong).

The sources by country of these remittances in 2024 were the United States (40.6%), Singapore (7.2%), Saudi Arabia (6.4%), Japan (4.9%), the United Kingdom (4.7%), Canada (3.6%), Qatar (2.8%) Taiwan (2.7%), and South Korea (2.5%). The large amounts coming from the US can be partly explained by the practice of OFWs, especially those from the Middle East, of routing their remittances through US-based correspondent banks. Over the last 20 years, the annual increase of OFW remittances has averaged 3% to 5% despite global crises. In fact, during the pandemic, when hundreds of thousands of Filipino workers were sent home from the Middle East, the decline in OFW remittances was less than 1%, demonstrating how resilient this source of GDP growth for the Philippines is.

Once again, this year, there are threats to OFW remittances as a result of the expected slowdown in the global economy emanating mainly from the anti-trade policies being implemented by the Trump Administration of the US. As mentioned above, the mere slowdown of the global economy in the past hardly affected the flow of OFW remittances to the Philippines. Growth every year averaged at least 3%, with a high of 6% during some years. One explanation given for the resilience of this sector is the positive response of the OFWs to the financial difficulties their relatives face during challenging times. The OFWs become more generous and dip into their savings when times get more difficult for their relatives, increasing their remittances.

What about the Trump Administration’s inclusion of a remittance tax in the so-called “One Big Beautiful Bill Act (OBBBA)” which President Donald Trump signed into law on July 4? The House version, which was passed on May 22, included a 3.5% excise tax on remittances after Dec. 31, 2025, targeting transfers sent by non-US citizens. On July 1, the Senate version reduced the tax to 1%, applying only to cash remittances (not bank/credit/debt transfers). The tax will apply to any sender, including US citizens, but exempts transfers from US bank accounts or debit/credit cards under the Bank Secrecy Act. Remittances from overseas Filipino workers would not be exempt. OFWs sending cash, money orders, or cashier’s checks — and not via US bank or debit/credit cards — would incur the 1% excise tax under the Senate version. If they use US-based bank or card transfers, those would not be taxed.

There is consensus among economists that the negative impact on Philippine GDP will be minimal. To illustrate, a 1% surcharge automatically withheld at the counter would mean that $500 cash sent would cost an extra $5. If the Senate version was retained in the reconciled bill which President Trump signed, remittances of OFWs will be generally exempt because they already use Zelle-to-bank or remittance apps from US accounts. Filipinos are digitally advanced and would be expected to migrate to these channels. Also, exempt fintechs (e.g., Remitly, Wise, etc.) would likely highlight their advantages to customers. Surveys by the Bangko Sentral ng Pilipinas (BSP) and the Philippine Institute for Development Studies (PIDS) show cost-sensitive OFWs trim transfer fees when all-in fees break 5%. An extra 1% on cash would push the average US-PH corridor cost from 4.4% to 5.4%. Finally, as Secretary of Finance Ralph Recto observed, Filipinos are generally clever enough to avoid taxes by just carrying cash with them without being detected. Given all these considerations, the so-called OBBBA will pose no significant threat to OFW remittances this year and in the coming years.

The OFW phenomenon is part and parcel of the long history of the Filipino people as a nation. Here, I will borrow extensively from a Magisterial Lecture given by Dr. Veronica Ramirez, Full Professor of the University of Asia and the Pacific (UA&P), who is one of the foremost scholars on this very important topic. For many years she occupied the Professorial and Research Chair on OFWs that was endowed by the Bank of the Philippine Islands to the UA&P. In a lecture based on both her personal experiences interacting with OFWs all over the world and her scholarly research, she wrote a paper which is to be delivered as a Magisterial Lecture at the UA&P some time in August. For the benefit of all who are trying to understand the enduring role of the OFWs in Philippine society, I will summarize below some of her findings culled from her multidisciplinary research involving history, economics, the arts and politics.

“The OFW phenomenon started with the Galleon Trade between the Philippines and Mexico in the 16th Century. In 1790, the Philippines opened its doors to world trade. Filipino men were recruited to work in the galleon ships that traveled to Acapulco, Mexico. Hundreds of islanders from the Philippine Archipelago joined the ships. Similar to what is still happening in both North America and Europe today, the islanders, upon reaching the areas of Mexico that were under US jurisdiction, decided to jump ship to migrate to North America. It can be said that these were the first overseas ‘Filipinos.’

“In the 1900s, when the Philippines was a colony of the United States, sugar farmworkers from the Philippine Archipelago, called sakadas in the local dialect, traveled to Hawaii in order to work in the sugar plantations. There were also the knowledge workers, scholars in different disciplines, who went to the US to study under scholarship programs of the US Government. In fact, as late as the 1960s, I was able to study at Harvard University as a Fullbright scholar. Since Fullbright and other scholars had to find some part-time jobs to make both ends meet, they could also be considered as overseas workers.

“In the Filipino migration that followed through the centuries, three categories emerged: Permanent migrants, i.e., those immigrants who are legal permanent residents, and naturalized citizens of their host country; Temporary migrants, those documented land-based and sea-based workers and others who stayed under contract, or those with accompanying dependents (these are the ones who are called overseas Filipino workers); and the last group are Irregular workers without valid work permits but were recruited by unscrupulous recruitment agencies or who may be overstaying workers or tourists.” n

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

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