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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?

MUP pension reform and ‘A’ credit ratings

One important fiscal news last week was the move by the Department of Finance (DoF) to review the pension system of military and uniformed personnel (MUP).

The MUP is composed of eight agencies — the Armed Forces of the Philippines, Philippine National Police, Philippine Coast Guard, Bureau of Fire Protection, Bureau of Jail Management and Penology, Bureau of Corrections, National Mapping and Resource Information Authority and Philippine Veterans Affairs Office.

The MUP pension system is unique for two reasons. One, while government doctors and nurses, government teachers and professors, government engineers and agriculturists, and so on contribute to their own pension via monthly deductions for GSIS, MUPs contribute zero, and so taxpayers pay for their pension. No. 2, the MUP pension is indexed to the salaries of active personnel, so a soldier or policeman who retired a few years ago with P75,000/month will get a pension equivalent to the salary of same-rank active personnel at P150,000/month. The amount rises yearly, is tax free and can be passed on to the spouse upon death.

I checked again the figures for MUP spending. They have basic pay, compensation common to all (longevity pay, subsistence allowance, clothing allowance, bonuses, etc.), compensation for specific groups (hazard pay, combat duty pay, combat incentive pay, etc.) and other benefits (retirement gratuity, terminal leave, PhilHealth contribution, etc.).

These are for compensations alone. Capex and operation and maintenance costs are excluded. When soldiers are sent to fight rebels, they are provided with tanks, trucks, helicopters, boats and other hardware so that their chances of beating the rebels are high, while their chances of dying in combat are low.

Look at Table 1 based on the Budget of Expenditures and Sources of Financing (BESF) from various years. Since the government is in perennial deficit and the MUP pension fund is nonproductive spending (no new roads, no new healthcare or education provided, etc.), the money to finance it is borrowed funds plus interest payments. So the computed total taxpayers’ burden (pension plus interest) ranged from P110 billion in 2020 to P129 billion in 2021, P136 billion this year and P150 billion next year.

To sustain the “patriotism” call in the country, the proposed bills at the House of Representatives and Senate should require active MUPs to contribute to their own pension. And pension indexing to current salary of the same rank personnel should be discontinued or at least be adjusted downward.

While spending on roads, bridges and education has social benefits, pensions are for personal benefits, and contributions should be personal, not social.

PHILIPPINES GETTING ‘A’ CREDIT RATINGS
Also last week, R&I rating agency upgraded the country’s ratings from BBB+, Positive (Oct. 7, 2023) to A-, Stable on Aug. 14. It was reported also in BusinessWorld, “R&I upgrades PHL credit rating to ‘A-’” (Aug. 15). So the Philippines has left the B league and is now at par with Thailand, and soon be at par with Malaysia (Table 2).

Finance Secretary Ralph G. Recto celebrated it in their press statement as a “milestone achievement.” He said this was the first credit rating upgrade under President Ferdinand R. Marcos, Jr. and is proof that investors and creditors trust his way of running the economy. “Our refined medium-term fiscal program is our blueprint for our road to A rating,” Recto said. “This ensures that we can reduce our deficit and debt gradually in a realistic manner, while creating more jobs, increasing our people’s incomes, growing the economy further and decreasing poverty in the process.”

Budget Secretary Amenah F. Pangandaman in a separate statement said: “Let’s get all A’s. I am confident we can achieve an “A” rating for all credit rating agencies.” She could be referring to Fitch, Moody’s and S&P.

The economic team is on the right path at macroeconomic stabilization that can lead to more rating upgrades in the coming months. We need to sustain it and do more in fiscal consolidation, control some spending, reduce deficit and borrowings so that the public debt stock, the principal amortization and interest payment can be reduced also.

Significant reforms in the MUP pension will help achieve this. I believe that our MUP personnel have a high degree of patriotism and they will understand that they need to help the country by contributing to their personal pension someday and not further burden taxpayers.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of  the Tholos Foundation.

minimalgovernment@gmail.com

LIMA Tower 1 seen to help boost Batangas business potential

LIMA TOWER 1, Batangas’ first office building, is set to transform the region into a thriving business hub. — Aboitiz InfraCapital, Inc.

ABOITIZ INFRACAPITAL, INC. (AIC) Economic Estates recently launched the first building of LIMA Office Park, LIMA Tower 1, aiming to help transform Batangas province into a premier business hub.

It is the first of seven office buildings in LIMA Office Park, located within the 70-hectare Biz Hub at LIMA Estate in the province.

“LIMA Tower 1 embodies our commitment to creating spaces where businesses can thrive, where people can work in environments that foster innovation and collaboration, and where the future of Batangas as a premier business destination begins,” Monica L. Trajano, AIC vice-president for Business Development, Leasing, and Sales, said in a statement on Aug. 16.

The 11-story building offers 32 office spaces and nine retail spaces, covering a total gross leasable area of 25,243 square meters. It also hosts 187 companies and employs 71,000 workers.

The property holds a Building for Ecologically Responsive Design Excellence certification for environmental sustainability, has pre-certification from the WELL Building Standard, which assesses features promoting health and well-being, and is registered with the Philippine Economic Zone Authority, offering benefits for operating within an economic zone.

Aboitiz said the Biz Hub at LIMA Estate will soon feature additional office towers to complement existing attractions such as the Outlets at Lipa and LIMA Exchange.

“The estate also offers expansive green spaces for recreation, with The Aboitiz Pitch serving as a lively center of activity. An efficient transport network, operated by electric buses, further enhances the interconnectedness of this ecosystem,” the firm said.

In addition, the 136-room Holiday Inn & Suites Batangas LimaPark provides accommodations, enhancing the estate’s appeal as a comprehensive business and lifestyle destination.

“The strategic location of LIMA Tower 1 within this ecosystem offers unparalleled access to resources, talent, and markets, positioning Batangas as a competitive player in the national and regional business landscape,” the company said.

Aboitiz said that by teaming up with LPPA Design Group and Figari Solutions, Inc., the company has created a workspace that not only meets the demands of modern businesses but also anticipates the future of work.

It added that the design reflects an understanding of the needs of today’s workforce, highlighting functionality, aesthetics, and well-being. — Aubrey Rose A. Inosante

TV series based on Yakuza video game keeps Japanese culture at center

JAPANESE actor Ryoma Takeuchi believes that video game fans will find a special connection to the new television series Like a Dragon: Yakuza.

The series, based on the popular video game Yakuza: Like a Dragon, begins streaming on Amazon Prime Video on Oct. 24. It was unveiled at San Diego Comic-Con last month.

The Sega video game and the show immerse people in a crime drama inspired by the Yakuza genre in Japanese film, which follows the Japanese mafia.

“I think deep down what matters is the emotional core of the drama and that’s something that can definitely be related to and resonate with the core fans of the game,” said Mr. Takeuchi, who plays main character Kazuma Kiryu, part of a secretive political organization.

“There’s going to be a connection with the original source material as well so that’s something you can expect as a surprise,” he added.

The series begins with a group of children in an orphanage who conspire to steal money from the local mob. When they are caught, the mob finds different roles for them as retribution for their crimes.

There is a decades-long time jump that picks up with the orphans grown up, now former friends, and living deep within the world of crime.

The series, like the globally popular video game, is steeped in Japanese culture and the dialogue is all in Japanese.

“The global audience loves the game because it is distinctly Japanese and it takes place in a very specific location and the characters and the way that business transactions happen,” executive producer Erik Barmack told Reuters.

“The way the mob runs within the game is specific to a particular place, and so, to do this show well, you want to be authentic to the culture of the game and what that game represents,” he added.

For James Farrell, head of international programming at Amazon Studios, it is important to note that audiences are now tuned in to foreign-language shows, unlike years ago when people had less interest in reading subtitles.

“The pie keeps expanding,” he said.

“Our biggest show ever from outside the US was Maxton Hall from Germany. If you had said a German drama would be the No. 1 show, you’d be like, ‘No way, it’s going to be a Spanish one, it’s going to be one of the other ones we listed,’” he added.

The goal, said Mr. Farrell, is to strike the perfect balance between what is “grounded and local” but also “accessible and familiar.” — Reuters

Gov’t hikes T-bill award as rates go down

RJ JOQUICO-UNSPLASH

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday as the papers fetched strong demand and mostly lower rates after the Bangko Sentral ng Pilipinas (BSP) began its easing cycle last week.

The Bureau of the Treasury (BTr) raised P22.6 billion from the T-bills it auctioned off on Monday, higher than the planned P20 billion, as total bids reached P61.297 billion or more than thrice the amount on offer. This was higher than the P52.535 billion in tenders recorded at the Aug. 12 T-bill auction.

Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P15.003 billion. The three-month papers were quoted at an average rate of 5.94%, 4 basis points (bps) higher than the 5.9% recorded last week. Accepted rates ranged from 5.875% to 5.975%.

Meanwhile, the government upsized the award for the 182-day securities to P9.1 billion versus the P6.5-billion plan as bids reached P21.874 billion. The average rate for the six-month T-bill stood at 5.989%, down by 10.4 bps from the 6.093% fetched last week, with accepted rates at 5.95% to 6.035%.

Lastly, the Treasury raised P7 billion as planned via the 364-day debt papers as demand for the tenor totaled P24.42 billion. The average rate of the one-year debt inched down by 3.9 bps to 6.023% from the 6.062% quoted last week, with accepted rates at 6% to 6.04%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.9503%, 6.1152%, and 6.1489%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The government increased its T-bill award on Monday as all tenors fetched average yields that were lower than secondary market benchmark rates, the BTr said in a statement on Monday.

“The auction was 3.1 times oversubscribed…, prompting the committee to increase the accepted noncompetitive bids for the 182-day securities,” it added.

“The lower awarded T-bill rates reflected the recent BSP policy rate cut. The increased volume offering can be attributed to increased investor demand for relatively higher-yielding short-term notes amid market expectations of further policy rate reductions in the coming months,” a trader said in an e-mail.

Longer T-bill tenors fetched lower rates week on week, while the three-month paper saw its average yield inch up from the previous award as the market consolidated, a second trader said in a phone interview.

“The market is just correcting itself,” the second trader said.

The Monetary Board on Thursday cut its policy rate for the first time in nearly four years amid an improving inflation and economic outlook, with the BSP chief signaling at least one more reduction before the end of the year.

The BSP slashed its target reverse repurchase rate by 25 bps to 6.25%, as expected by nine out of 16 analysts in a BusinessWorld poll. Rates on its overnight deposit and lending facilities were also lowered to 5.75% and 6.75%, respectively.

This was the first time that the Monetary Board cut rates since November 2020, when it delivered a 25-bp cut amid the coronavirus pandemic.

Prior to last week’s move, 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.

“With inflation on a target-consistent path, the current macroeconomic outlook supports a calibrated shift to a less restrictive monetary policy stance,” BSP Governor Eli M. Remolona, Jr. said at a briefing.

Mr. Remolona said they could cut rates by another 25 bps before yearend. The Monetary Board’s remaining policy-setting meetings this year are scheduled for Oct. 17 and Dec. 19.

On Tuesday, the BTr will offer P25 billion in 20-year Treasury bonds (T-bonds) with a remaining life of 14 years and five months.

The Treasury wants to raise P220 billion from the domestic market this month, or P80 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy

Isuzu eyes EV launches in Philippines

FREEPIK

ISUZU Philippines Corp. is exploring the expansion of its product lineup to incorporate electric vehicles (EVs) due to the increasing demand for carbon-neutral transportation options in the country, the company said on Monday.

During a press conference for the 9th Philippine International Motor Show (PIMS) on Monday, Isuzu Executive Vice-President Shojiro Sakoda said the company is assessing its strategy for launching EVs in the Philippine market.

“We are indeed very excited about the developments in our EV lineup, as seen in Japan and Thailand,” he said.

“For the Philippine market, we recognize the increasing interest in electric vehicles, and we are carefully assessing the best strategy to introduce our EV models here.”

Regarding the potential introduction of hybrid variants in the Philippines, Mr. Sakoda said that Isuzu is open to adapting its lineup to meet the evolving needs of Filipino consumers, particularly for trucks.

“Introducing hybrid vehicles is something we are actively exploring, especially as we consider the unique challenges and opportunities in the Philippine market,” he said.

“Hybrids could serve as a practical bridge towards full electrification, offering better fuel efficiency and lower emissions while utilizing existing infrastructure.”

Despite the industry’s growth and resilience post-pandemic, Mr. Sakoda acknowledged that limited manufacturing support, high taxation, and regulatory constraints present challenges to achieving further growth.

“Our primary focus is on ensuring that the infrastructure, support systems, and consumer readiness are in place to deliver the best customer experience,” he added.

Isuzu will unveil its new offerings at PIMS, scheduled for Oct. 24-27.

“We invite the public to visit the 9th PIMS in October to see what Isuzu has to offer in terms of EVs,” Mr. Sakoda said.

“While no definitive timeline has been announced, Isuzu’s ongoing commitment to innovation and sustainability indicates that exciting developments are on the horizon,” the company added. — Justine Irish D. Tabile

The iron ore commodity boom is over

RAWPIXEL.COM

OIL, copper, soybeans and a handful of others monopolized the attention — but of all commodities, the humble lump of iron ore benefited the most from the Chinese economic boom of the last 25 years.

It was an astonishing bonanza: From the late 1990s to earlier this year, iron ore prices jumped nearly tenfold, more than any other major commodity; traded volume tripled; Australian commodity tycoons become billionaires; mining companies turned, even briefly, into Wall Street darlings; and mighty legal battles broke for control of the last untapped mineral deposits.

And now, it’s over: The greatest commodity boom thus far of the 21st century has ended. China inflated it — and China, too, is bringing it down.

The cost of the reddish dirt, which turns into steel inside blast furnaces, has fallen already below $100 a metric ton, down 55% from its all-time high of almost $220 a ton set in 2021. Beyond, the outlook looks somber as Chinese steel demand reaches a zenith. Pinpointing the exact date is foolhardy, but now it’s becoming clear that China hit peak steel demand somewhere between 2020 and earlier this year. The reason? The shift in its economic model to services and away from heavy investment and housing construction.

During previous downturns, Beijing rescued its economy — and thus the iron ore and steel sectors — by indulging in a debt-fueled binge of construction. It’s unlikely that China will do so this time. Don’t take my word for it. Listen to Hu Wangming, chairman of China Baowu Steel Group Corp., the world’s largest steelmaker, who last week predicted a “severe winter” for the sector.

The downturn, he said, would be “longer, colder and more difficult to endure” than he had previously expected. Because China nowadays produces more than half the world’s steel, what happens there matters enormously. Other nations may take over as engines of steel demand. India is the most obvious candidate. Unfortunately for the global seaborne iron ore market, India has enormous domestic ore resources and is likely to do it without imports for years to come.

On its own, China’s peak steel demand would mark a setback, but it wouldn’t signal a disaster for iron ore. After all, Chinese steel consumption will remain at a high plateau for years to come, rather fall sharply. Beijing may not be building as many houses as in the past, therefore reducing demand for so-called “long steel” — beams, rods and similar stuff. But the country still needs lots of steel to make stuff its consumers want. That’s the so-called “flat steel” used for new cars, fridges and the lot.

The slowdown in China comes, crucially, as a new generation of large, low-cost mines in Australia and Africa start production. That mix is the problem because it means the iron ore market, already oversupplied in the first half of this year, would remain in surplus in 2025, 2026, 2027 and probably 2028, too. Macquarie Bank Ltd., an Australian lender, says that the current surplus is “one of the worst” ever.

Thus, over the medium-term, iron ore prices must drop to rebalance the market, pushing out high-cost miners. How low? It would depend a lot on whether the new mines come on stream on time, and whether the Chinese real estate sector recovers a bit. If production hits the market as planned, potentially as much as 200 million tons — about 12.5% of the seaborne iron ore market — need to be displaced. That’s a lot. Similar oversupply, last seen in 2015 and 2016, required a drop toward $50 a ton, nearly half the current prices.

For now, however, the market isn’t crashing. Despite the recent drop, iron ore prices remain close to $100 a metric ton — that’s 700% above the 1980-2000 average price of $12.5 a ton. The rally in previous years had been so large that it would require a massive retreat to bring prices anywhere close to where they were in 2000.

At current prices, the top miners would still make plenty of money. Consider that Rio Tinto Plc., the world’s largest iron ore miner, digs the mineral out of the Pilbara region of Western Australia at a cost of about $21 a ton. Even at the current lower price, the company is likely to make a return on the capital invested in its iron ore operations north of 40%, and perhaps as high as 50%.

But if prices drop toward $50, the fortunes of Rio — alongside other big producers like Vale SA, BHP Group Ltd., Fortescue Ltd., and Anglo American Plc. — would suffer. That in turn could open the door for mergers and acquisitions, probably in the second half of the decade.

Two new entrants, a mine in Guinea, in West Africa, called Simandou, and another one in Australia called Onslow, would still make money even if prices drop because of their low production costs. By 2028, both mines could add about 150 million to the seaborne market, equal to about 10% of the market’s current size.  On top of that, the current major miners also plan to expand other mines.

So who would cut output? Look to second-tier and third-tier miners in Brazil, India, Ukraine, South Africa, Iran and Kazakhstan. With higher production costs — anywhere from $50 to $100 a ton — they would be pushed out as prices decline, rebalancing the market. Chinese domestic miners would be squeezed too. The more tonnage needs to be displaced, the lower prices would need to fall — and vice versa.

The big companies argue that many third-tier miners have costs close to $80 to $100 a ton, meaning that if prices plunge beyond the above $90-a-ton level currently, some high-cost producers would be underwater, and output would drop, rebalancing the market. Only if the oversupply were significant — requiring second-tier miners with costs of $60 to $80 a ton to stop digging — would prices approach $50 a ton, they argue. Historical experience suggests they’re right.

What I don’t anticipate is a return to the pre-2000 market of ultra-low prices, when iron ore typically changed hands at less than $15 a ton. Back then, ore was a backwater of the global commodity market. It was profitable — but just.

The market was so primitive that calling it a market would be a misnomer. From 1960 until well into the 21st century, iron ore prices weren’t set each day amid cutthroat trading, but rather just once-a-year in secretive annual negotiations between the miners and the Japanese steelmakers. While discussions continued, everyone waited until a steelmaker and a miner agreed on the price; then, in a quasi-cartel fashion, everyone else in the industry accepted the price as a benchmark, with the same price agreed by all miners and steelmakers. It wasn’t until the early 2000s when a daily spot market for iron ore emerged and not until 2010, well into the Chinese economic boom, when the annual system of price negotiations broke apart, replaced by the prevailing system of long-term contracts linked to daily prices.

The 1960 to 2000 period won’t come back. But miners need to forget about a return of more than $200-a-ton prices. Even the $90-a-ton average price of the last two decades is in danger. True, some unexpected events can still buoy the market. In 2015 and 2019, the collapse of two tailing dams — Mariana and Brumadinho in Brazil — suddenly reduced supply, driving up prices. But barring a disaster, the boom is over.

The miners, in many ways, are telegraphing it. Ignore what they say in public. Focus instead on what they’re doing. When BHP, one of the world’s top iron ore miners, launched a nearly $50 billion takeover attempt over rival Anglo American, indicated its lack of interest in Anglo’s ore mines in South Africa, which have somewhat higher costs. That says it all.

BLOOMBERG OPINION

Insurers book higher premiums as of June

PCH.VECTOR-FREEPIK

THE INSURANCE INDUSTRY saw its premium income grow by 14.48% at end-June, driven by the life insurance sector, latest data from the regulator showed.

The industry’s combined premium income stood at P214.94 billion in the first half, up from P187.76 billion in the same period last year, data posted on the Insurance Commission’s (IC) website showed.

The data were from submissions made by 126 out of 131 licensed life and nonlife insurers and mutual benefit associations (MBAs).

As a result, the insurance sector’s combined net income rose by 24.07% to P27.78 billion in the first semester from P22.39 billion a year ago.

The industry’s assets grew by 6.02% year on year to P2.38 trillion at end-June from P2.23 trillion, with total invested assets rising by 3.21% to P2.04 trillion from P1.98 trillion.

Total liabilities rose by 7.42% to P1.91 trillion from P1.78 trillion.

The industry’s net worth inched up by 0.48% to P454.24 billion from P452.05 billion.

Meanwhile, its combined paid-up capital and guaranty fund declined by 3.12% to P80.21 billion at end-June from P82.79 billion a year ago.

Benefits paid out by the industry increased by 24.12% year on year to P76.67 billion in the first half from P61.77 billion.

Insurance density, or the amount of premium per capita or average spending of each individual on insurance, rose by 14.37% to P1,907.19 in the first half from P1,667.50.

Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, went up to 1.71% from 1.63% previously.

LIFE INSURERS
Broken down, the life insurance sector’s premium income rose by 16.5% year on year to P164.14 billion in the first half from P149.45 billion, IC data based on submissions of 31 out of 32 licensed companies showed.

The growth was driven mainly by variable life premiums, which rose by 14.75% year on year to P113.19 billion. Traditional life premiums also went up by 19.9% to P60.94 billion in the period.

New business annual premium equivalent climbed by 12.74% to P33.25 billion.

The sector also saw higher premiums across all lines of business, the data showed.

Life insurers’ combined net income rose by 21.62% to P33.25 billion in the first semester from P29.495 billion a year ago.

Total assets increased by 6.86% to P1.85 trillion as of June, while liabilities rose by 8.58% to P1.59 trillion.

Invested assets inched up by 2.47% to P1.8 trillion from P1.73 trillion.

Meanwhile, the sector’s total net worth went down by 2.4% to P264.53 billion from P271.05 billion.

Total paid-up capital with available cash assets also declined by 2.25% to P32.46 billion.

Life benefit payouts rose by 30.09% year on year to P61.11 billion at end-June.

NONLIFE INSURERS
On the other hand, total net premiums written by nonlife insurance companies rose by 7.14% to P32.89 billion in the first semester from P30.7 billion a year ago, based on data submitted by 52 out of 56 licensed firms.

The motor sector was the biggest contributor in terms of line of business with P13.82 billion in net premiums written in the period, rising by 8.42% year on year. Fire followed with P4.79 billion, although this inched down by 0.11% from a year prior.

Total premiums earned by the sector likewise went up by 7.11% year on year to P30.74 billion, while gross premiums written climbed by 9.03% to P59.68 billion.

The nonlife insurance sector’s combined net profit jumped by 36.78% year on year to P4.98 billion at end-June from P3.64 billion.

Its total assets inched up by 0.32% to P356.8 billion at end-June, while total liabilities decreased by 0.82% to P230.2 billion.

Losses incurred by the sector went up by 4.62% to P11.83 billion from P11.3 billion. 

Nonlife insurers’ overall net worth went up by 2.46% to P126.599 billion.

Total invested assets increased by 4.01% to P174.83 billion from P168.09 billion.

Meanwhile, the sector’s total paid-up capital slipped by 3.92% year on year to P46.47 billion from P48.36 billion.

MBA
Lastly, MBAs recorded total contributions or premiums worth P7.91 billion as of June, up by 4.27% year on year, IC data based on submissions from all 43 licensed companies showed.

The sector’s total assets grew by 9.99% to P155.13 billion, with invested assets rising by 12.05% to P143.16 billion.

Total fund balance climbed by 9.86% to P63.11 billion. MBAs’ combined guaranty fund likewise increased by 4.89% to P1.28 billion.

The sector recorded an aggregate net surplus of P2.89 billion, up by 21.6% from the year-ago level.

Combined benefit payments or expenses increased by 6.79% year on year to P3.73 billion as of June. — A.M.C. Sy

D.M. Wenceslao’s P4-B Parqal in Aseana City focuses on work-life balance

By Aubrey Rose A. Inosante, Reporter

D.M. WENCESLAO and Associates, Inc. (DMW) said it had invested P4 billion in Parqal, its latest mixed-use development located in Parañaque City’s Aseana City.

The project focuses on creating a “third space” designed to enhance work-life balance for individuals working in Aseana City. Third spaces are environments intended for social interaction and public relaxation, distinct from home and office settings.

Parqal spans five hectares and has a gross floor area of 70,000 square meters (sq.m.). It has reached a 90% occupancy rate for retail spaces and 40% for commercial spaces, DMW Chief Executive Officer Delfin Angelo C. Wenceslao told BusinessWorld via an e-mailed statement on Aug. 16.

“Parqal created an ecosystem where office workers can access not just retail and commercial services but amenities that support the community and contribute to enhancing social connections through its world-class public spaces,” Mr. Wenceslao said.

The property has nine four-story buildings with retail and commercial spaces occupying the first and second floors, and offices located on the third and fourth floors.

“With the increasing demand for office spaces in Metro Manila, Parqal aims to offer not just a place to work but a chance to feel at home away from home,” Mr. Wenceslao said.

He said Parqal is changing the work experience of the office population by providing access to public spaces and amenities that promote relaxation and social connections.

Office workers have proximity to wellness facilities, sports amenities, and outdoor spaces and plazas such as the courtyard and amphitheater.

The firm also said the “floating canopy,” which serves as a flagship component of Aseana City’s sidewalk master plan, covers about 5,000 sq.m. of the development’s linear greenway spine.

“The company is currently in the late planning stages of additional office, residential, hospitality, and medical clinic/office projects for its five-year development pipeline,” Mr. Wenceslao said.

He added that Parqal’s foot traffic is increasing, with daily visitors rising from 10,000 to 20,000 weekly. Footfall even doubles during events, showcasing the destination’s growing popularity.

Since opening in September 2023, Parqal has hosted the Big Bad Wolf Booksale, Toycon Launch, Nikon Day 2024, and the Aurora MLBB event.

It has also hosted the weekly community run of Aseana City, or Run Aseana, in partnership with the Recreational Outdoor Exchange and Run With Pat.

Mr. Wenceslao said Parqal highlights the company’s vision of a “15-minute city,” aiming to provide essential uses, amenities, services, and experiences to all Aseana City residents within a 15-minute distance.

Parqal also aims to curb carbon emissions by reducing car usage through pedestrian and cycling infrastructure.

“While DMW has the option to expand its land bank on its frontage, the company is currently focused on developing its existing portfolio. Approximately 50% of Aseana City is currently occupied with existing developments,” DMW said.

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