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Salceda says House won’t adopt Senate’s CREATE MORE bill

PHILIPPINE STAR/WALTER BOLLOZOS

By Justine Irish D. Tabile, Reporter

THE HOUSE of Representatives would not adopt the Senate’s version of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill because it is “too flawed,” Ways and Means Committee Chairman and Albay Rep. Jose Maria Clemente “Joey” S. Salceda said.

“The House contingent will seek to resolve differences in principle between the Senate and House versions of the CREATE MORE bill in a Bicameral Conference Committee,” Mr. Salceda told BusinessWorld in a Viber message.

This comes after Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) chief Frederick D. Go said that he hopes the House would adopt or at least be amendable to the Senate version of CREATE MORE.

The Senate is expected to approve the CREATE MORE bill on second and third reading next week.

“I will closely work with Malacañang, as we have in the past. We always treat comments from the OSAPIEA with the highest consideration and priority. But, on these key issues, the House contingent will be steadfast,” Mr. Salceda said.

The CREATE MORE bill is among the priority legislative measures identified by the Legislative-Executive Development Advisory Council for passage before the 19th Congress ends in June 2025.

Mr. Go said the Senate has so far approved five bills since Congress opened its third and final regular session in July.

“They are actually working very hard to give us our priority bills. And so, the next bill to come out of the Senate, I hope, is the CREATE MORE bill,” he said.

“I can assure you that I’ve been working with them up to late nights for the last many days to try to pass this. They say they will try to pass it on Tuesday next week,” he added.

If the Senate approves the bill by Tuesday, the bicameral conference committee could begin discussions as early as Wednesday, Mr. Go said.

“We are hoping that the House will adopt it or will at least be agreeable to it if they go into a bicameral conference committee,” he said on the sidelines of the National Retail Conference and Expo on Thursday.

However, Mr. Salceda said one of the reasons the House would not adopt the Senate version is it does not resolve issues on the cross-border doctrine.

“Initially, the Senate aimed to do away with separate Customs territories altogether, repealing them from the special ecozone laws that established them and deleting the House’s definition of separate Customs territories,” he said.

“However, the Senate eventually just removed the repeal of such special laws without adopting the House position of setting a primary and overarching doctrine on the question. If we adopt the Senate version as is, we’re back to the confusing status quo,” he added.

Mr. Salceda said the House also objects to the Senate version, which allows tariff- and value-added tax-free importation of petroleum for international carriers.

“We vehemently object to this. Such products will not be fuel-marked when imported, so the Senate proposal will confuse law enforcement as to the provenance of unmarked fuel,” he said.

Lastly, he said the manufacturing sector has asked for the bill to clarify the registered business enterprise (RBE) local tax.

“Specifically, they wish for current rates already set by local government units to apply, in case they are lower than the proposed 2% in CREATE MORE,” he said.

“We see the merit in this, since the RBE local tax aims to streamline tax collection, not increase rates. Manufacturing tends to be sensitive to taxes based on gross receipts because they have very low, single-digit margins,” he added.

Apart from the three reasons, he said the House would also study other inconsistencies or ambiguities in the bill that cannot be left to the implementing rules and regulations.

“Usually, when we pass tax reforms, they tend to be towards December of the year. Hence, there is pressure to complete the reform before the new fiscal year starts,” Mr. Salceda said.

“We still have a full month of session, not to mention, four months before this fiscal year ends. CREATE MORE is supposed to remedy ambiguities in CREATE. The cure will not be rushed,” he added.

New digital bank applicants must hurdle ‘stricter’ criteria — BSP

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By Luisa Maria Jacinta C. Jocson, Reporter

NEW DIGITAL BANKS applying for a license must adhere to tighter standards on financial inclusion, a Bangko Sentral ng Pilipinas (BSP) official said, adding that there is a possibility that not all four new licenses would be granted immediately.

“Since digital bank applicants will be assessed against stricter criteria and parameters against our financial inclusion goals, it is possible that the number of digital bank players in the financial system will not reach the maximum limit of 10,” BSP Deputy Governor Chuchi G. Fonacier told BusinessWorld.

“We are optimistic that the new players are going to offer financial products and services that have not been widely offered to the market,” she added.

Earlier this month, the Monetary Board approved the lifting of the moratorium on new digital banking licenses starting Jan. 1, 2025. It will allow four more digital banks to operate in the country, which would bring the maximum number to 10. These can either be new applicants or banks that seek to convert their existing license to a digital one.

“There are some entities that have shown interest, but we have yet to really see the bigger picture when the application window opens in January 2025,” Ms. Fonacier said.

“With our continuous market surveillance, we are also looking at a limited number of players who might be interested in converting their license to a digital banking license.”

Ms. Fonacier said limiting the number of digital lenders to 10 allows the central bank to “strike a balance between being open to seeing the potential of new players yet remaining cautious and sensitive to the possible risks that the new digital bank licensees may bring.”

Earlier this year, the BSP said only two of the six digital banks were profitable.

Ms. Fonacier also noted that most jurisdictions with licensed digital banks have kept their industry players to a “handful” or even fewer than 10.

“Since we are still currently further understanding this bank category, we want to be cautious. Hence, keeping the additional players few is more prudent compared with opening up to a bigger or unlimited number, which may potentially expose the financial system to a wider set of unknown and novel risks,” she added.

In 2021, the BSP capped the number of digital banking licenses at six as it sought to boost regulatory capacity and supervision of the sector.

The six online lenders in the country are Tonik Digital Bank, Inc.; GoTyme Bank of the Gokongwei group and Singapore-based Tyme; Maya Bank of Voyager Innovations, Inc.; Overseas Filipino Bank, a subsidiary of Land Bank of the Philippines; UNObank of DigibankASIA Pte. Ltd.; and UnionDigital Bank of Union Bank of the Philippines, Inc. (UnionBank).

BSP Governor Eli M. Remolona, Jr. earlier said applicants must “bring something new to the table.”

“We want to see digital banks offer innovative products that will reach the undertapped and unserved markets to contribute to greater financial inclusion,” Ms. Fonacier said.

Applicants must also have potential to reach untapped or underserved markets.

“For example, they must show that they have access to a large pool of data/ecosystem that will support the delivery of innovative and game-changing financial products and services, specifically lending solutions,” she added.

The central bank is also eyeing applicants that can offer credit products to more Filipinos.

“As we push for greater credit inclusion, we are hoping for the players to be able to grant credit facilities to those customers who have not been granted such loans by incumbent financial institutions due to lack of formal documentation,” she said.

“Now, we see that alternative data points are being utilized to generate credit scores for individuals, and we want to see digital banks maximize the capabilities of these technologies, of course, within appropriate safeguards/safety nets,” she added.

The BSP wants to onboard at least 70% of adult Filipinos into the formal financial system.

The central bank earlier said applicants would also undergo a “rigorous” licensing process that will evaluate their value proposition, business models and resource capabilities. Applicants must also be compliant with the standard licensing criteria, which cover capital adequacy and corporate governance and risk management, among others.

DA won’t recommend hike on rice tariffs yet

A worker unloads a sack of rice from a truck in Manila, May 30, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

By Adrian H. Halili, Reporter

THE DEPARTMENT of Agriculture said that it would not yet recommend raising tariffs on imported rice since retail prices have not gone down.

“Before 400,000 metric tons (MT) were shipped per month, since June, July, and August, almost 150,000 MT of rice have entered… So, it’s not enough stock for us to recommend the raising of tariffs,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters on the sidelines of a poultry and livestock event on Wednesday.

Between the months of June and August, rice imports at a 15% tariff averaged to about 150,000 MT per month, he said.

As of Aug. 22, Philippine rice imports amounted to 2.72 million MT, data from the Bureau of Plant Industry showed.

“The price of rice in the market has not yet decreased. Besides, the problem is, konti pa lang ang pumasok na bigas at 15% (few shipments came in at 15%),” Mr. Tiu Laurel said.

President Ferdinand R. Marcos, Jr. signed Executive Order No. (EO) 62, which reduced tariffs on imported rice to 15% from 35% until 2028, in an effort to lower the price of the staple.

EO 62, which took effect in July, mandated a review of the tariff policy every four months to reflect changes in global prices and supply. A review will be conducted by November.

Earlier, Mr. Tiu Laurel said the DA would propose to raise rice import tariffs once local prices fall to about P42-P45 per kilo.

Imported well-milled rice in Metro Manila markets was sold at P45-P55 per kilo, while local well-milled rice was sold at P48-P50 per kilo, according to DA’s price monitor as of Aug. 28

On the other hand, imported regular milled rice was sold at P46-P50 per kilo, while local rice was sold at P45-P50.

“I’ve always said that once you lower tariffs… it does not mean that the price will drop immediately because from January to June, a lot of rice was imported, almost 450,000 MT a month,” he added.

Mr. Tiu Laurel said that in the first half of the year, imports were in excess of the country’s 320,000 MT monthly requirement for rice.

“So, may excess talaga na nabili at nabayaran ng buwis nang mahal... Aabot ng mga mid-October or end of October para maubos ’yung old stocks (So, there is indeed an excess supply of rice that was purchased and taxed at higher prices. The old stocks could only be depleted by the middle or end of October),” he added.

The Agriculture chief said world rice prices remain elevated amid the ban on rice exports by the Indian government.

India last year banned on non-basmati white rice exports, citing the need to safeguard domestic supply.

“Plus, Indonesia and Malaysia are again buying rice for their buffer stocks, that is why international prices are not declining,” he added.

The Philippines remains to be the world’s top importer for rice, according to the US Department of Agriculture (USDA).

Asked to comment, Roehlano M. Briones, a senior research fellow at the Philippine Institute for Development Studies said traders are hesitant to import rice as various agricultural groups filed a petition asking the Supreme Court to nullify EO 62.

“There is no guarantee that the tariff valid on the date of making a purchase order will be the same tariff upon unloading at Customs,” he said in a Viber message.

Earlier, industry and farmer groups have questioned the validity of the EO 62, claiming lack of public consultation and the threat it poses to local rice producers.

“In the market, they are saying that the price of rice will drop by P6 to P7 a kilo, but that would not happen because the traders have already imported the rice at a higher tariff,” Teodoro C. Mendoza, an agronomist and a retired professor at the University of the Philippines Los Baños, said in a phone call.

Foundation for Economic Freedom (FEF) President Calixto V. Chikiamco said the government should permanently lower rice import tariffs to 15% or adopt a variable tariff rate.

“(There should be) lower tariffs during lean season and higher tariffs during harvest season,” Mr. Chikiamco said in a Viber message.

Strengthening business success through corporate governance

Pixabay / Mohamed_hassan

Trust, accountability, and leadership — these principles are essential foundations that can make or break a company. A well-governed company is not only profitable but also responsible and transparent to all its stakeholders.

Corporate governance is essential for aligning the interests of a company’s management with those of its shareholders and other stakeholders. It ensures that decisions are made to promote transparency, fairness, and accountability, thereby fostering trust and confidence among investors, employees, customers, and the public.

According to the Organisation for Economic Co-operation and Development (OECD) Principles of Corporate Governance, corporate governance involves a set of relationships between a company’s management, its board, its shareholders, and other stakeholders. Corporate governance also provides the “structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.”

According to McKinsey & Company, 84% of global institutional investors are willing to pay a premium for companies with robust corporate governance practices. Similarly, the Harvard Law School Forum on Corporate Governance found that 64% of investors consider corporate governance a critical factor in their investment decisions. These figures indicate that well-governed companies are more likely to attract investment, reduce the cost of capital, and enhance overall corporate performance, which is crucial for long-term sustainability and strategic growth.

Adopting ESG and boosting CSR in businesses

Environmental, social, and governance (ESG) criteria have become integral to corporate governance practices. Companies are increasingly evaluated on their ESG performance, influencing investment decisions and corporate strategies. This additional factor mirrors a broader understanding that a company’s success is not solely determined by financial performance but also by its impact on society and the environment.

According to a report by ESG Reporting Hub, businesses are now actively incorporating ESG goals into the company’s purpose, ensuring that these considerations are not treated as separate initiatives but are integrated into the core business model.

A study published in the peer-reviewed journal Environment, Development, and Sustainability stated that businesses that integrate ESG factors into their operations often experience improved value creation and sustainability, which can lead to better financial outcomes over time. In fact, firms with robust governance structures also tend to perform better, with good governance practices correlating with increased shareholder value and reduced risks.

On the other hand, consumers are increasingly choosing to spend their money on products and services with ESG-related claims. According to a report by McKinsey, products with ESG-related claims had a 1.7 percentage-point advantage over those without.

Meanwhile, corporate social responsibility (CSR) and sustainability have become increasingly intertwined with effective corporate governance as these strategies require considering the interests of all stakeholders, including shareholders, employees, customers, suppliers, and the community, in decision-making processes. For instance, a report by the Corporate Finance Institute found that CSR can add value to firms by establishing and maintaining a good corporate reputation, reducing operational costs through efficiency improvements, and attracting and retaining committed employees.

Going beyond profit

According to Institute of Business Ethics, many businesses today are not viewed as highly trustworthy, which emphasizes the need for ethical governance practices that are rooted in integrity, honesty, and openness.

Central to the corporate governance framework is the concept of ethics, which refers to the moral principles guiding the decision-making processes within an organization. Ethical corporate governance ensures that companies not only comply with the law but also adhere to a higher standard of integrity and responsibility toward all stakeholders.

Meanwhile, businesses are now creating a more productive, engaged, and innovative workforce by promoting equality, diversity, and inclusion in the workplace. Fair employment practices secure that all employees are treated equitably, regardless of gender, race, age, disability, or other characteristics. This strategy not only fosters a positive work environment but also mitigates the risks associated with discriminatory practices.

In addition, a study on the diversity and effectiveness in FTSE 350 companies, commissioned by the United Kingdom’s Financial Reporting Council (FRC) and conducted by research firm SQW in collaboration with the London Business School Leadership Institute in 2021, revealed that boards with well-managed gender diversity tend to have higher stock returns and are less prone to experiencing shareholder dissent.

However, Gartner’s 2021 ReimagineHR Employee Survey revealed only 18% of survey respondents indicated that they work in a highly fair environment. These findings have significant implications for employers, as perceptions of a fair employee experience can improve employee performance by up to 26% and increase employee retention by up to 27%.

In the Philippines, women face notable challenges in the labor market as labor force participation rate (LFPR) for women is significantly lower than that of men.

The Education Development Center, Inc. reported that women are often engaged in lower-paying, informal jobs, which limits their economic empowerment. They are often overrepresented in sectors like education and health, while underrepresented in higher-paying fields such as technology and engineering.

Global variability in corporate governance

Corporate governance practices vary widely across different regions, influenced by cultural, legal, and economic factors. While some convergence towards a more globalized approach has occurred, alternative models are still observable, especially in Europe and Asia.

According to Investopedia, the Anglo-US model, prevalent in the United States and United Kingdom, is oriented towards the stock market and is characterized by a dispersed ownership structure.

The German model, also known as the continental or European model, features a two-tier board structure with a supervisory council and an executive board.

On the other hand, corporate governance in Asia and the Pacific region is influenced by factors such as family ownership, business groups, and state ownership. Many Asian countries have a high prevalence of state-owned enterprises (SOEs), which account for a significant portion of their economies. Challenges in the region include improving board structure and diversity, enhancing transparency, and dealing with corporate scandals.

In the Philippines, the Securities and Exchange Commission (SEC) required all publicly listed companies (PLCs) to issue an annual corporate governance report consolidating their governance policies and practices since 2013. This report is mandatory and due by June of every fiscal year.

The country also introduced the Philippine Corporate Governance Blueprint, spearheaded by the SEC in 2015. The blueprint encouraged PLCs to adopt best practices in governance, which included the timely disclosure of significant information, the right of shareholders to nominate board candidates, and the requirement for a formal board nomination process. These practices were aligned with the ASEAN Corporate Governance Scorecard (ACGS) to facilitate performance assessment across the region.

Currently, the Philippines has kept the 11th ranking among 12 Asia-Pacific countries in terms of their performance in corporate governance (CG) and environmental, social, and corporate governance (ESG). However, the country came out with a score of 49.3 in the 2023 CLSA CG ranking, lower than the 50.5 score in 2020.

This year, PricewaterhouseCoopers (PwC) predicted that Filipino companies will become more exposed to global capital markets, and shareholder activism will likely increase. Investors, particularly foreign institutional investors, are expected to place greater emphasis on corporate governance and are more willing to challenge management decisions that they perceive as detrimental to shareholder value. — Mhicole A. Moral

Six firms eye Meralco’s 400-MW contract

BW FILE PHOTO

THE SUBSIDIARIES of First Gen Corp., San Miguel Global Power Holdings Corp. (SMGP), Aboitiz Power Corp. (AboitizPower), and Filinvest Development Corp. have expressed interest in competing for Manila Electric Co.’s (Meralco) 400-megawatt (MW) power supply contract, the power distributor said on Thursday.

“Following the success of our recent CSP (competitive selection process) for 600 MW of baseload supply where Meralco received very competitive offers, we welcome the continued interest of the country’s major energy players to join this CSP round that will help us ensure availability of least-cost supply for our customers starting next year,” Meralco Bids and Awards Committee Chairman Lawrence S. Fernandez said in a statement.

Six companies participated in the pre-bid conference for the power supply contract on Thursday, according to Meralco.

The participants include First Gas Power Corp. and First Natgas Power Corp., both subsidiaries of Lopez-led First Gen Corp. Masinloc Power Co. Ltd. and Sual Power, Inc., part of SMGP, the power arm of San Miguel Corp., also took part.

GNPower Dinginin Ltd. Co., representing a private limited partnership that includes AboitizPower’s Therma Power, Inc., AC Energy & Infrastructure Corp., and Power Partners Ltd. Co., joined the conference. Additionally, FDC Misamis Power Corp., a subsidiary of FDC Utilities, Inc., which is under Filinvest Development, also participated.

“We look forward to the participation of these prospective bidders during the bid submission deadline and bid opening scheduled on Oct. 1,” Mr. Fernandez said.

The resulting 15-year power supply agreements for Meralco’s 400-MW mid-merit requirement are targeted to commence by Aug. 26, 2025. These agreements will undergo the review and approval process of the Energy Regulatory Commission (ERC) before implementation.

The power distributor recently announced that it had secured the lowest offers for its 600-MW supply requirement from power generation companies under SMGP and AboitizPower.

“We are happy that the main objective of the CSP, which is to secure the least cost supply for our customers, has been achieved. We hope that there will be no further delays as we work towards immediate signing of the PSAs resulting from the 600-MW CSP,”  Meralco Senior Vice-President and Head of Regulatory Management Jose Ronald V. Valles said.

“We trust that ERC evaluation and approval will also be swift so customers can enjoy these very low rates upon scheduled delivery date in August 2025,” he added.

Meralco’s majority owner, 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 BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Future of cinema clouded by uncertainty, Venice jury chief Huppert says

ACTRESS Sigourney Weaver poses on the red carpet after receiving the Golden Lion for Lifetime Achievement during the opening ceremony at the 81st Venice International Film Festival on Aug. 28 in Venice, Italy. — REUTERS

VENICE — Cinema has been weakened in recent years and its survival cannot be taken for granted, French actress Isabelle Huppert said on Wednesday as she took charge of the main jury at the Venice Film Festival.

The 11-day event draws together filmmakers from around the world, giving them an invaluable opportunity to promote work that might otherwise not gain global prominence.

But beyond the Venice Lido’s glamorous red carpet, movie veterans worry about the future of the industry: box office sales have not yet recovered from the COVID pandemic, raising questions about the long-term financial viability of movies.

“What concerns us all is that cinema continues to live on as much as possible. We know that it has been weakened in recent times,” Ms. Huppert said at the traditional news conference to mark the start of the world’s oldest film festival.

“I am not a director, I am only an actress, but we know what it represents in terms of courage, endurance, solitude, determination, to … make a film,” she added, saying her goal was to help cinema keep going “for as long as possible.”

“But that’s why a festival like Venice exists, it’s like an ecosystem that is more necessary than ever to proclaim these values. So I’m really happy to be here,” Ms. Huppert said.

Ms. Huppert, 71, has appeared in over 120 films and has won the best actress award twice at Venice, in 1988 and 1995. She and her family also run two small art house cinemas in Paris.

Global cinema box office takings are estimated to have hit almost $34 billion in 2023, according to data from Gower Street Analytics, an increase of 30.5% on 2022, but still 15% below average annual returns from 2017-2019, before COVID hit.

However, sales have declined again this year in the United States — the biggest movie market in the world, setting alarm bells ringing.

US director Debra Granik, who is the head of the jury for Venice’s more experimental Horizons section this year, thanked Ms. Huppert for addressing the “elephant in the room.”

“That’s why we all showed up here because we want to see this art form thrive,” Ms. Granik said.

The Venice festival opened on Wednesday night with the world premiere of Tim Burton’s Beetlejuice Beetlejuice, which is being shown out of competition. The event ends on Sept. 7 when Ms. Huppert will announce who has won the top Golden Lion award. — Reuters

A rose by any other name

RONNIE LAZARO in a scene from Phantosmia.

Movie Review
Phantosmia
Directed by Lav Diaz

LAV DIAZ’S Phantosmia — which will premiere at the 2024 Venice Film Festival — turns on the simple conceit that a man who has experienced trauma will carry a trace of that trauma for the rest of his life, sometimes in the form of a smell. Doesn’t have to be a real smell — people have searched his surroundings at his behest looking for a dead rat or snake, find nothing; the stink is in his mind, a manifestation of guilt for committed sins.

In this case one Master Sergeant Hilarion Zabala of the First Scout Ranger Regiment of the Philippines (played by Ronnie Lazaro); recruited in March of 1953, presumably active during the Martial Law years (1972-1981), since retired. Zabala can’t eat, can’t drink, can’t keep his gorge down (at one point he’s bent over in an alley, retching and heaving at the stench that fills his nose).

Guilt is a central theme in Diaz’s films, in particular guilt manifested physically, as a somatic symptom, an active malady.

In his first released film Kriminal ng Baryo Concepcion (Criminal of Barrio Concepcion, 1998) Serafin Geronimo must endure a toothache so intense it swells the side of his face; in arguably the picture’s most disturbing moment he’s driven to punch his face till the abscess bursts, the pus spurting out the side of his mouth. Then there’s Hermes Papauran, legendary Filipino police investigator (Complains Peter Debruge in Variety: we’re never shown “what makes (Hermes) the ‘greatest.’” My reply: in the Filipino context “greatest” simply means someone who doesn’t give up) with his acute psoriasis as seen in Kung Wala Nang Mga Alon (When the Waves are Gone, 2022) and its prequel Essential Truths of the Lake (2023), a horrifying skin condition that suggests Hermes is rotting before our eyes.

Serafin Geronimo could do little about his condition except perform penance; Hermes in his early years asked his sister to treat the dermal eruptions. Zabala seeks help but his therapist Dr. Corazon Valle (Lhorvie Nuevo) suggests psychotherapy — a callback to Diaz’s Melancholia, where former rebels attempt to exorcise psychological demons in the form of role-playing. Dr. Valle’s is a less radical suggestion: a return to active duty which, in Zabala’s case, means assignment to the remote Pulo Penal Colony, hopefully to jog his memory into revealing the inciting trauma.

Maybe the therapy is even less radical than that. On Pulo Island, Zabala meets all kinds of types: simple Setong (Amado Arjay Babon), who cooks well but can’t think beyond following his adapted mother Narda’s (Hazel Orencio) orders; Nika and Brando (Heart Puyong and Mitzi Comia) who come to the island to pitch tents and participate in the annual hunting season; Marlo (Dong Abay), a poet who literally sets up a soapbox where he can stand and deliver on-the-spot verses; Reyna (Janine Gutierrez) — beautiful and young and slowly going blind; Narda, Setong and Reyna’s adoptive mother, who pimps Reyna out to the men on the island; and Major Ramon Lukas (Paul Jake Paule), the colony’s garrulous commanding officer, who nurses an obsession for guns and power.

As Reyna, Janine Gutierrez plays an updated version of Hazel Orencio’s memorable Florentina Hubaldo in the film of the same name, and gives us what may be the most accurate depiction of psychological and sexual abuse — and its grievous aftereffects — in recent memory. As Major Lukas, Paule gives us yet another fleshed-out parody of Diaz’s bete noir, the late president Ferdinand E. Marcos — not just his charisma but his eloquence, his massively self-righteous hypocrisy, his relentlessly cheerful early-morning (and late evening) propaganda greetings. Unlike Rodrigo Duterte, who was an unimaginative brute, Marcos didn’t just want to exercise de facto control over your physical self, he wanted to win over your mind — to possess you body and soul.

Zabala represents yet another Diaz archetype, the anti-hero seeking redemption. Diaz seems to gravitate to sullen loners, some more silent than others (Hook Torollo in Ang Hupa (The Halt); Hugo Haniway in Panahon ng Halimaw (Season of the Devil; the eponymous hero in Hesus Rebolusyonaryo), but these quiet protagonists also divide into two types: the dissolute poet-warriors seeking meaning in their lives (Hugo, Hook), the former military men seeking forgiveness for their sins (Hermes, Juan Mijares in Batang West Side (West Side Avenue)) — Zabala falls into the latter type: an expert marksman, a by-the-books soldier who survived Scout Ranger training when barely out of his teens, a boy forged by his father to be stone, to follow orders without flinching, to kill without hesitation.

Zabala may be the capstone to Ronnie Lazaro’s career — hard to tell, as he’s done so much tremendous work, so much of it under Diaz (one only has to remember his out-there performance as former mentor turned demented killer Primo Macabantay in Kapag Wala Nang Mga Alon). Here Zabala stands self-contained in his suffering; gradually the others on Pulo Island draw him out — Marlo with his poetry, Nika and Brando with their cigarettes and enthusiasm, Setong with his kindly innocence, Reyna with her great need. Even Narda and Major Lukas are an influence, negative reminders of what Zabala’s military discipline can become, if he’s not careful.

A pause to note that Diaz not just writes and directs but fully shoots and edits his films now, and the results couldn’t be finer — the black and white cinematography adds character to the locations (the wooden shacks and spaghettified power lines of cities, the leafy canopies, endless rain, and limitless skies of the countryside), lingers long enough to capture dramatic changes in sunlight, the soft glow of capiz windows; the action when it happens can be sudden and vicious yet pitiless, viewed through unflinching lenses.

Throughout Diaz sprinkles references to Filipino foods and dishes from all over — sweetened budin or cassava cake from Quezon; pinais (shrimp and grated coconut wrapped in banana leaves, slow-cooked in coconut milk, then grilled over coals for a smoky char) also from Quezon; bulalo (classic Batangueño dish of bone marrow and beef shank in broth); adobong bayawak (another Batangas classic, monitor lizard stewed in soy, vinegar, garlic, peppercorns); and a few enigmas (What’s fried gram? A local fish, apparently. Ar-aro? Stewed in vinegar and ginger (paksiw), but a Google search reveals only one picture, labeled in Ilocano. And ginulat na dalag — dalag is mudfish, but how do you startle said fish?). It’s as if Diaz wanted to celebrate Filipino cooking, didn’t have the budget to properly light and plate such delicacies, was forced to mention them only in passing, as incantations to evoke a mysterious magical culinary landscape — one Zabala can’t share or delight in thanks to his condition.

As for the closing sequences — a rare bit of suspense on Diaz’s part, reminding us that early in his career he was a prolific komiks writer and wrote for action directors like Manuel “Fyke” Cinco and Augusto Salvador — Zabala’s most heroic act may be in suppressing all the abilities and instincts (unwavering support of authority, unflinching response to crisis) he’s cultivated since young. After a lifetime of betrayal he attempts the ultimate betrayal, comes full circle to what he was looking for all along.

Best film of the year? Hard to say, we still have four months left. Easily one of the better works, definitely one of the most uncompromising, and — for me at least — one of the most substantial, most exciting to date.

(Lav Diaz’s film will premiere in the 2024 Venice Film Festival on the following days: public screenings — Sept. 2, 2:30 p.m. at the Sala Casino; Sept. 3, 9 a.m. at the Astra 2 and at 8 p.m. at the Astra 1; passholder screenings — Sept. 2, 9 a.m. and 2:30 p.m. at the Sala Casino, Sept. 3, 9 a.m. at Astra 2 and 8 p.m. at Astra 1.)

Energy storage systems may raise GEA offers by P5-P6/kWh — DoE official

FREEPIK

THE INTEGRATION of renewable energy plants with energy storage systems under the green energy auction (GEA) could increase price offers by P5 to P6 per kilowatt-hour (kWh), according to an Energy department official.

“We know that adding the energy storage system is going to increase the price; it can go for as high as an addition of about P5 to P6 per kWh,” Energy Undersecretary Rowena Cristina L. Guevara said at an energy forum on Wednesday.

Ms. Guevara said that the reserve price for integrated renewable energy and energy storage systems (IRESS) might be higher compared to the prices offered in previous rounds of GEA.

She said the Department of Energy (DoE) is working on strategies to lower the price for renewable energy capacities paired with energy storage systems.

One strategy the DoE is considering involves transition credits, which monetize emission reductions from projects through the early retirement of coal plants.

“The transition credits, that will take up a little bit of the price of the plant that they will build as renewables,” she told reporters.

Ms. Guevara also said that the Energy department is trying to control the potential cost of IRESS in the renewable energy capacities that the agency will offer.

“We’re still talking with our simulators, then we will do public consultations to gauge what would be feasible for the generators,” she said.

In July, the DoE announced that it would conduct the fourth round of GEA in the fourth quarter this year, which is designed to cover IRESS.

As described by the DoE, IRESS is “a comprehensive energy solution that combines renewable energy technology with energy storage systems.”

Energy storage systems include batteries, flywheel, or pumped storage hydropower systems.

“By combining renewable energy and energy storage, IRESS enhances the stability and reliability of the energy system, enabling a more consistent and efficient supply of power,” the DoE has said.

The government agency said it will release the indicative timeline of GEA-4 activities in the coming months, when it expects to issue a notice of auction.

The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection. Renewable energy developers compete for incentivized fixed power rates by offering their lowest price for a certain capacity.

GEA was first conducted in 2022 and attracted 1,996.93 megawatts (MW) worth of bids for renewables, while GEA-2 was held in 2023 and awarded 3,440.756 MW. — Sheldeen Joy Talavera

Stuff to Do (08/30/24)

PAMANA exhibit moves to Alliance Francaise

THE exhibit PAMANA: Trajectories & Movements of Filipino People will be opening its second run on Aug. 31, 4:30 p.m. From Fort Santiago, Intramuros where it was on view for three months, it now moves to the Alliance Francaise de Manille Gallery in Makati City. The exhibit explores Filipino cultures and migrations, from ancient to modern times, through archaeological discoveries, studies of ethnic and cultural diversity, and records of modern diaspora and contemporary Filipino culture. It is a project of Pamana: Voices of Philippine Heritage, a joint initiative founded by the European Marie Curie BeBamb project conducted by the Spanish Research Council (Consejo Superior de Investigaciones Cientificas), and the Oyayi Association, with the support of the NGO Heritage for Peace.

SB19 documentary PAGTATAG! now out in cinemas

P-POP boy group SB19’s anticipated film, PAGTATAG! The Documentary has made its nationwide theatrical debut. It provides a look into the group’s collective and individual experiences on tour, while trying to navigate their ascension to global pop stardom. Most recently, SB19 emerged triumphant in Billboard’s Fan Army Face-off, winning for the second consecutive year against some of the biggest international music stars. The five-member act garnered 56.3% of the votes during the final round, beating Barbadian mega-star Rihanna. PAGTATAG! The Documentary is out now in cinemas nationwide.

Filipino-made artisanal crafts at MaArte Fair 2024

ONGOING at The Peninsula Manila this weekend is the MaArte Fair 2024, a bazaar focusing on Filipino-made artisanal crafts and products. Now on its 15th year, the MaArte Fair is spread out through the hotel’s 9th and 5th floors, the Rigodon Ballroom, the Garcia Villa and Balagtas function rooms, The Conservatory, and the Upper Lobby at the second floor. The fair is open from 10 a.m. to 8 p.m., from Aug. 29 to Sept. 1. There are 147 exhibitors who will offer an array of Filipino artisanal products and brands that are Filipino-made and world-class, ranging from fashion accessories and jewelry to personal care products, home decor, toys and games, books, food and beverages, and more. The fair is a fundraiser for the Museum Foundation, a volunteer organization that supports the development programs of the National Museum of the Philippines and various museum communities across the country. The fair’s profits also support the Museum Foundation’s research and project grants for their chosen grantees, and other programs and workshops of the organization. MaArte at The Pen Fab Finds is co-presented by Bank of the Philippine Islands.

The Watchers begins streaming on HBO GO

WARNER Bros. Pictures and New Line Cinema’s The Watchers makes its streaming debut on Aug. 30 on HBO GO. From producer M. Night Shyamalan comes a film written for the screen and directed by his daughter, Ishana Night Shyamalan, and based on the novel by A.M. Shine. The film follows Mina, a young artist who gets stranded in an untouched forest in Ireland. When Mina finds shelter, she unknowingly becomes trapped alongside three strangers who are watched and stalked by mysterious creatures each night. The film stars Dakota Fanning, Georgina Campbell, Oliver Finnegan, and Olwen Fouéré. The Watchers is out now on HBO GO.

Fun Fan Nights celebrates BTS TV series

AYALA Malls Manila Bay’s Fan Nights’ latest installment on Aug. 31 is the launch of Are You Sure?!, a new mini-TV series on Disney+ featuring BTS members Jimin and Jung Kook. The series follows the duo as they explore New York, Jeju Island, and Sapporo. The Fan Nights program will start at 2 p.m. and will include interactive games and booths with limited-edition Fan Nights merchandise. Since the campaign’s inception in March of 2023, it has organized fan gatherings and performances for fans of music, movies, TV shows, and more.

Thrill Fest horror movies until Sept. 3 only

AYALA Malls Cinemas’ annual Thrill Fest is now on its second week, and features two Hollywood classics celebrating milestone anniversaries this year. A Nightmare on Elm Street, directed by horror-slasher master Wes Craven, is celebrating its 40th anniversary, while  the 1974 disaster movie The Towering Inferno turns 50. Moviegoers can watch remastered versions of these classics on the big screen for P200 to P250. The Thrill Fest will run until Sept. 3, in Ayala Malls cinemas nationwide.

Stephanie Syjuco book signing at Silverlens

SILVERLENS Manila will be hosting The Unruly Archive, a conversation between artist Stephanie Syjuco and historian Isa Nazareno at the launch of Ms. Syjuco’s first monograph and her first solo exhibition in the Philippines, both titled Inherent Vice. Held at the gallery in Makati City on Aug. 31, 2:30 p.m., both speakers will discuss the role and relevance of archives in relation to one’s critical-creative practice. Ms. Syjuco will also hold a book signing after the conversation. Published by Radius Books, the monograph weaves together her research-based practice with a substantial array of visual source material. Bound in a unique format with different types of paper, the pages are cut and layered to simulate the process of physically excavating folders in an archive. To attend the event, register at rsvpmanila@silverlensgalleries.com.

Philippines hosts World Travel Awards in September

TO develop its status as a MICE (Meetings, Incentives, Conferences, and Exhibitions) destination, the Philippines is hosting the World Travel Awards (WTA) Asia & Oceania Gala Ceremony on Sept. 3. Organized by the Department of Tourism at the City of Dreams, Manila, the gala will be an avenue to network with various tourism stakeholders in the region. This year, the Philippines is vying for seven awards: Asia’s Leading Beach Destination, Dive Destination, and Island Destination, with Intramuros vying as Asia’s Leading Tourist Attraction, Boracay as Asia’s Leading Luxury Island Destination, Cebu as Asia’s Leading Wedding Destination, and the Department of Tourism as Asia’s Leading Tourist Board.

HMPH celebrates 75th anniversary of Philippine-South Korean ties through Hyundai Stargazer promo

Hyundai Motor Philippines, Inc. (HMPH) continues to celebrate the 75th anniversary of ties between the Philippines and South Korea with a special promo for the Hyundai Stargazer. The brand has previously commemorated this milestone through showcases of Korean-Filipino fusions of food, fashion, and music. Starting with a fashion showcase of works by Leeroy New and various local designers, a camping food trip video by Jessica Lee and Chef JP Anglo featuring the IONIQ 5, and a concert headlined by Hyundai Brand Ambassador Sarah Geronimo and other local artists.

HMPH now offers several payment options and discounts for the Hyundai Stargazer when customers make a purchase through any of the brand’s bank partners, namely BDO, BPI, and EastWest. On top of that, a new Ph-Kor anniversary treat of free 2-Year Periodic Maintenance Service (PMS) is offered to all customers who purchase any variant of the Hyundai Stargazer from any authorized Hyundai dealership nationwide. All Hyundai Stargazer units purchased until Dec. 31, 2024 will get free PMS for 2 years or 30,000 km., whichever comes first. Customers will be given a Free 2-Year PMS Certificate upon purchasing a Stargazer, which can be presented at any authorized Hyundai dealership.

“Hyundai Motor Philippines is happy to be commemorating this historical milestone alongside our customers. After our momentous celebrations at the Hyundai Mobility Experience in Megamall and TriNoma, we are proud to now be offering this special promo for the Hyundai Stargazer just for you. This not only highlights the prevailing ties between South Korea and the Philippines, but also reflects our commitment to be your partner in every journey and milestone. We look forward to sharing many more years of growth and innovation with all our customers,” says HMPH Managing Director Cecil Capacete.

For the full terms and conditions, visit https://www.hyundai.com/ph/en/build-a-car/promotion/run-the-next-mile-with-hyundai. To get other news and updates, follow @HyundaiMotorPhilippines on Facebook and Instagram.

*The free PMS Package is non-convertible to cash, nor can be used in conjunction with any other PMS Promotions which involve discounts for PMS parts, labor, and materials.

 

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Yields on term deposits mixed

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits were mixed on Thursday after the Bureau of the Treasury launched its second dollar bond offer for this year.

The central bank’s term deposit facility (TDF) attracted bids amounting to P231.77 billion on Thursday, above the P200 billion on the auction block and the P164.441 billion seen a week ago for a P160-billion offer.

Broken down, tenders for the six-day papers reached P133.79 billion on Thursday, higher than the P100 billion auctioned off by the central bank. This was also more than the P85.501 billion in bids for the P80-billion offer seen the previous week.

Banks asked for yields ranging from 6.2595% to 6.35%, a narrower band compared with the 6.24% to 6.5% recorded a week ago. This caused the average rate of the deposits to go down by 0.9 basis point (bp) to 6.3033% from 6.3123% previously.

Meanwhile, bids for the 13-day term deposits amounted to P97.98 billion on Wednesday, lower than the P100-billion offering but above the P78.94 billion in tenders for the P80 billion placed on the auction block last week.

Accepted rates for the tenor were at 6.285% to 6.535%, slightly narrower than the 6.25% to 6.55% margin recorded a week ago. With this, the average rate for the deposits inched up by 1.95 bps to 6.3672% from the 6.3477% logged in the prior auction.

This week’s TDF auction date and tenors were adjusted due to the suspension of work in government agencies on Aug. 28 amid inclement weather.​

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields’ week-on-week movements were mixed amid the government’s latest global bond issuance, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Ricafort said the dollar bond offer “siphoned off some of the excess liquidity in the financial system, though this would help reduce the need for the National Government to borrow locally.”

The National Government raised $2.5 billion from its offering of triple-tranche US dollar-denominated bonds, fixed-income news provider IFR reported on Thursday.

Broken down, it generated $500 million via 5.5-year notes, $1.1 billion from 10.5-year bonds, and $900 million from the 25-year sustainability tranche.

This was in line with Finance Secretary Ralph G. Recto’s expectation of raising $2 billion to $2.5 billion from the issue.

Proceeds from the bonds will be used for general purposes, including budgetary support. Funds raised from the sustainability bond tranche will go to eligible projects under the government’s Sustainable Finance Framework.

“TDF average auction yields also mixed, as some investors tend to lock in interest rates for longer-term tenors amid widely expected US Federal Reserve and BSP rate cuts for the coming months, as affirmed recently by Fed Chair Jerome H. Powell and most Fed officials during the Jackson’s Hole Economic Symposium over the weekend,” Mr. Ricafort added.

Markets have fully priced in a 25-bp rate cut from the Fed next month, with a 34.5% chance of an outsized 50-bp reduction, according to the CME FedWatch tool, Reuters reported.

Investor bets for imminent US rate cuts were further cemented by Mr. Powell’s remarks at Jackson Hole last week that the “time has come” to cut rates, joining a chorus of Fed policy makers who have signaled the same in recent times.

Meanwhile, the BSP’s policy-setting Monetary Board this month reduced its target reverse repurchase rate by 25 bps to 6.25% from a near 17-year high of 6.5%, marking its first easing move in nearly four years.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19. — Luisa Maria Jacinta C. Jocson with Reuters

Converge to open two data centers by 2025

CONVERGE ICT Solutions, Inc. plans to open two data centers with a combined capacity of 13 megawatts (MW) by next year, the listed company announced on Thursday.

Converge’s Pampanga data center has a capacity of 10 MW and offers up to 1,200 racks, while its Caloocan data center has a capacity of three MW and provides up to 290 racks, the company said in a statement on Thursday.

Last month, Converge announced a partnership with US-based Super Micro Computer, Inc. (Supermicro) to develop energy-efficient data centers designed to help reduce costs.

“This future-proofing investment is in anticipation of the massive demand in the coming years for more data-intensive applications in gaming, fintech, public services, and more,” said Converge Chief Executive Officer Dennis Anthony H. Uy.

The company is working to secure the Uptime Institute Tier III certification as it would allow the company to configure its capacity component without impacting operations, Converge said.

“With a Tier III data center, each and every capacity component and distribution path in a site can be removed on a planned basis for concurrent maintenance or replacement without impacting operations,” said Converge Chief Network Transformation Officer Paulo Martin G. Santos.

Converge announced in January its plan to allocate up to P5 billion over the next three years to build data centers that will host its planned digital platforms and store applications and information. The company intends to construct data centers in Pampanga, Laguna, and Caloocan.

At the stock exchange on Thursday, shares in the company shed 66 centavos or 4.29% to end at P14.72 apiece. — Ashley Erika O. Jose

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