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Inflation could further ease in Q4

Various dishes are on display at a food stall along Kalaw Extension in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

PHILIPPINE headline inflation could ease to less than 2% in the fourth quarter of this year, Nomura Global Markets Research said in a report.

Nomura said it is “penciling in a trajectory in which headline inflation drops to less than 2% by fourth quarter 2024, a substantial decline from 4.4% in July, and thereafter hovering within a similar range for most of the first half of 2025.”

Nomura said it sees inflation settling at 2.8% this year and further easing to 2.3% in 2025.

These forecasts are lower than the Bangko Sentral ng Pilipinas’ (BSP) own projections. The central bank expects inflation to average 3.4% in 2024 and 3.1% next year.

Nomura said its inflation outlook is mainly driven by the recent cut in tariffs on rice imports.

In June, President Ferdinand R. Marcos, Jr. issued an executive order reducing the tariff on rice imports to 15% from 35%, until 2028 to tame rice prices.

Rice inflation, which accounts for nearly half of overall inflation, eased to 20.9% in July from 22.5% a month ago. This marked the fourth straight month of slower rice inflation.

Nomura said it sees the BSP further cutting rates for the rest of this year.

“Overall, we reiterate our forecasts that BSP will cut by 25 basis points (bps) each in the last two meetings of the year, i.e. in October and December,” it said.

The Monetary Board last week reduced the target reverse repurchase (RRP) rate by 25 bps to 6.25% from the over 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. said that the central bank could deliver one more 25-bp cut in the fourth quarter.

“Beyond that, we also expect BSP to cut in the first three meetings in 2025 before pausing from there. This would bring the RRP rate to 5% by May 2025, i.e. a total of 150-bp cuts in this cycle,” it added.

Nomura said the BSP’s next policy decisions will largely be driven by the inflation path in the coming months.

“If inflation continues on a downward path, BSP can look to further remove the restrictiveness in the monetary stance to support a recovery in domestic demand and overall growth.”

“Moreover, we continue to think the Fed turning dovish will play a role, and its easing cycle underway from September, as our US team expects, should support further BSP’s consecutive rate cuts in the coming months,” it added.

The US Federal Reserve appears to be very much on track for an interest rate cut in September after a “vast majority” of officials said such an action was likely, according to the minutes of the US central bank’s July 30-31 meeting, Reuters reported.

The minutes, which were released on Wednesday, even showed some policy makers would have been willing to reduce borrowing costs at last month’s gathering.

The policy-setting Federal Open Market Committee left its benchmark interest rate unchanged in the 5.25%-5.5% range on July 31 but opened the door to a cut at the Sept. 17-18 meeting.

Financial markets have been expecting the September meeting to kick off the Fed’s policy easing, with as much as a full percentage point worth of rate cuts expected by the end of this year.

PESO IMPACT
Meanwhile, Bank of America (BofA) Global Research in a separate report noted the recent impact of the BSP’s policy easing on the peso.

“The Philippine peso has strengthened versus the US dollar, but less so compared to peers in the region, taking cues from the BSP’s rate cut in the last meeting and dovish guidance for another possible cut this year,” it said.

BofA now expects the peso to average P56 against the greenback by yearend from its earlier forecast of P57 per dollar.

“With the Fed cutting cycle likely commencing soon, Philippine peso could still appreciate versus the US dollar over time, which would keep BSP relatively comfortable on FX (foreign exchange) moves,” it said.

However, BofA also noted that the peso may be sensitive to the Fed’s moves.

“Lower rates in the Philippines have raised the likelihood of even a narrower interest rate buffer against US dollar rates. That may gain importance as a factor for corporate hedging behavior once the US dollar stabilizes,” it said.

“This pressure could increase if the US dollar strength picks up or US yields move higher again, increasing Philippine peso sensitivity to the US policy outlook.”

The peso closed at P56.333 against the dollar on Thursday, strengthening by 16.7 centavos from its P56.50 finish on Wednesday. This was its strongest finish in more than four months or since its P56.315 close on April 2.

The local currency has been trading at the P57- or P58-a-dollar level in the past months.

“The Philippine peso has weakened against most Asian peers this year, partly as a result of BSP’s dovish bias. With the next policy meeting some time away, US dollar direction could be the key factor driving the peso in the near term,” it added.

InstaPay, PESONet transactions jump by 34.6%

DAVID DVORACEK-UNSPLASH

THE VALUE of transactions done through InstaPay and PESONet climbed by 34.6% in the first seven months, according to data from the Bangko Sentral ng Pilipinas (BSP).

Central bank data showed that transactions coursed through the automated clearing houses jumped to P9.45 trillion as of end-July from P7.02 trillion in the same period a year ago.

The combined volume of transactions done via InstaPay and PESONet surged by 64.6% to 786.2 million from 477.5 million year on year.

Broken down, the value of PESONet transactions rose by 28.4% to P5.56 trillion as of July from P4.33 trillion a year ago.

The volume of transactions that went through the payment gateway likewise went up by 8.4% to 56.84 million as of end-July from 52.43 million a year ago.

Meanwhile, the value of transactions done through InstaPay stood at P3.9 trillion at end-July, higher by 45% from P2.69 trillion in the same period in 2023.

The volume of transactions coursed through the clearing house soared by 71.6% to 729.3 million from 425.08 million a year ago.

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks, while InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

The share of online payments in the total volume of monthly retail transactions rose to 52.8% in 2023 from 42.1% a year earlier, latest data from the BSP showed.

This surpassed the central bank’s target of digitalizing 50% of the volume of retail payments by end-2023.

The volume of digital payments stood at 2.62 billion in 2023, higher than the 2.35 billion non-digital transactions. Meanwhile, the value of online payments amounted to $110.5 billion in 2023, also higher than the $89.3-billion non-digital transactions.

The BSP said that the top contributor to the rise in digital payments was merchant payments, which accounted for the bulk or 64.9% of monthly digital payments volume.

The central bank is targeting to achieve a 60-70% share of digital payments over total retail payments volume by 2028, in line with the Philippine Development Plan. — Luisa Maria Jacinta C. Jocson

Quezon City plans to amend Incentives Code

The Quezon Memorial Shrine in Quezon City, Aug. 18, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

THE QUEZON CITY government is looking to boost tax incentives for businesses that will invest in key priority sectors.

“Quezon City is enhancing its business environment through strategic policy reforms and infrastructure development aimed at medium and large businesses,” said Quezon City Mayor Maria Josefina “Joy” G. Belmonte-Alimurung at the Metro Manila Business Conference on Thursday.

“We are in the process of amending the Quezon City Incentives Code to align with the Board of Investments’ (BoI) Strategic Investment Priority Plan (SIPP),” she added.

The updated code, which is also aligned with the United Nations’ sustainable development goals and the National Economic and Development Authority’s Ambisyon Natin 2040 objectives, “aims to reduce business costs, streamline processes, and foster partnerships.”

“It will provide newly constructed buildings with a two-year exemption on business tax, amusement tax, franchise tax, and real property tax,” Ms. Belmonte-Alimurung said.

“Meanwhile, businesses participating in our city’s investment priorities plan will receive a three-year exemption on all of these taxes,” she added.

Margie S. Mejia, head of the Quezon City Business Permits and Licensing Department, said that the amendments to the QC Incentives Code aim to reflect the current business environment.

“The old Incentives Code was passed between 10 and 15 years ago, so we need it to be attuned to the times,” Ms. Mejia said in a panel discussion.

“The target of the updated code is medium and large enterprises with the hopes of inviting them to establish themselves in Quezon City,” she added.

Ms. Mejia said businesses in Quezon City could tap its big population, which is estimated by the Philippine Statistics Authority at around 2.96 million as of May 1, 2020.

According to the World Population Review, Quezon City’s population may have gone up to 3.28 million in 2024.

BoI Investment Assistance Service and One-Stop Action Center for Strategic Investments Director Ernie Delos Reyes said that the Quezon City Local Economic Investment Promotions Office (LEIPO) is already reviewing the amendments to the Incentives Code.

“The focus is on strategic investments, but in relation to business and real property tax, we provided inputs on how they can be competitive with other local government units,” Mr. Delos Reyes said in a Viber message.

“We also told them about non-fiscal incentives like effective and efficient investment facilitation and alignment of its policies with national policies, especially the latest economic reforms,” he added.

Mr. Delos Reyes said that national incentives are already a standard under the Corporate Recovery and Tax Incentives for Enterprises law.

On April 18, the Quezon City LEIPO conducted a public consultation for the new Quezon City Incentives Code, which is meant “to cultivate a conducive business environment, stimulate investment inflow, and foster sustainable economic growth.”

Under the Quezon City Economic Development Incentives Code of 2013, qualified medium and large enterprises are entitled to a tax holiday on real property and exemption from franchise tax and amusement taxes for four years, among others.

Data from the Department of Trade and Industry showed that there are 129,477 business name registrations in the National Capital Region.

Most of these were wholesale and retail trade, food and beverage service activities, transportation and storage, real estate activities, and other service activities.

16M Filipinos facing medium-to-high risk of water stress — ADB

Residents wade through the flood caused by Typhoon Carina and the southwest monsoon on July 24, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

POOR FILIPINOS face a higher risk of experiencing floods and dry spells, the Asian Development Bank (ADB) said.

The ADB’s latest Key Indicators for Asia and the Pacific report showed that 16.1 million Filipinos experienced medium-to-high risk of water stress or experienced frequent droughts or intense flooding.

In comparison, 2.2 million people in Thailand experience the same level of water stress.

The report compared the Philippines and Thailand to show how countries with high poverty levels experience varying climate impacts depending on its geographical location. The data were measured using the Philippines’ 16.6% poverty incidence rate in 2018 and Thailand’s 7.8% poverty incidence rate in 2017.

“Poor communities are often disproportionately affected by climate change due to their limited financial resources to adapt or recover,” ADB Statistician Arturo M. Martinez, Jr. said in a virtual briefing on Thursday.

The report showed that all major parts of the Philippines faced medium-to-high risk of water stress.

The entire Metro Manila was exposed to this risk, followed by the rest of Luzon (76%), Mindanao (75%) and the Visayas (71%.) Meanwhile, all regions in Thailand experienced at least 76% of medium-to-high risk of water stress.

Geographic mapping showed that nearly two-thirds of the Philippines’ poor communities, which are spread out around the country, are exposed to medium-to-high risk of water stress

On the other hand, less than a fifth of Thailand’s land area was home to poor communities with high water risk, mostly in the northern region.

The report also showed that 12.7 million poor Filipinos lived in areas with medium-to-high flood risk, covering 59.6% and 51% of total land area susceptible to riverline and coastal flooding, respectively.

This compares to 400,000 poor Thai people in areas facing medium-to-high flood risk, where 33% of the land area is vulnerable to riverline flooding and 3.7% to coastal flooding.

Metro Manila and the Visayas showed 100% vulnerability to coastal and riverline flooding. In Thailand, poor people were susceptible to riverline flooding.

The data were shown using “geographically granular” data, which uses satellite-based maps and computer algorithms to help identify priority climate risk strategies.

“Granular data on vulnerability to climate change may reveal the unique environmental, economic, social, and political challenges faced by diverse places and populations. These data are crucial for targeting regions that require immediate intervention and assistance especially under budget constraints,” Mr. Martinez said.

However, 66% of statistics agencies from the Asia-Pacific reported constraints in the availability, timeliness, and granularity of climate-related data, ADB said.

The ADB noted that poorer countries have a higher level of climate risk. Low-income economies face the highest exposure to climate-related disasters but less coping capacity, while high-income economies are exposed less but have stronger coping strategies.

“Such disparities between income levels and capacity to cope are often mirrored within economies, where impoverished communities typically bear the brunt of climate risks and possess fewer resources to manage them,” according to the report.

The ADB said Asia-Pacific countries are now giving higher priority on environmental protection than economic growth.

“This preference tends to become more prevalent as an economy’s income level rises. In wealthier economies, a larger proportion of respondents favor environmental protection, even if it incurs potential economic costs,” it said.

According to the report, 56.5% of lower middle-income economies in the region said that protecting the environment is a priority even if it causes slower economic growth and some loss of jobs. This is also seen in 59.5% of upper middle-income economies and 61.8% high-income economies.

ADB Chief Economist Albert F. Park said there is a need for more partnerships to make sure vulnerable countries are ready for climate-related disasters.

“To address climate change, we’re going to have a hard time to be effective if we don’t have good data,” he told the webinar.

“I would really emphasize the need to harmonize how we define things because if everyone’s collecting data in a different way, it does become difficult to link our understanding and to learn lessons across countries.”

POOR FLOOD MANAGEMENT
The Philippine government should focus on science-based long-term solutions and risk avoidance strategies like flood forecasting to address the flooding problem, GlobalSource Partners country analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said in a brief.

In late July, massive floods caused by Typhoon Carina and enhanced southwest monsoon exposed the government’s ineffective flood management strategies over the past decade, they said.

“Careful studies show that the root of the perennial flooding problem is continuity, or specifically, the lack of it,” GlobalSource said. 

In 2013, then-Public Works Secretary Rogelio L. Singson proposed a P351-billion flood control masterplan for 11 target areas in the country. However, the plan has not even reached 30% completion a decade since its conception, the Department of Public Works and Highways (DPWH) told senators recently.

“Records show that disbursements for flood control and management projects have decreased even as the budget allocation for these projects has been constantly increasing in the last five years,” GlobalSource said, citing Senate findings.

Citing a Senate press release, GlobalSource said 20% of the DPWH budget between 2020 to 2023 was allocated to flood management. This was increased to 25% in the 2024 budget.

However, the DPWH disbursed only 68.26% of its budget in 2021, 73% in 2022, and 58% in 2023, it said. — B.M.D.Cruz

Real Life Fiction and the blurring of boundaries

Piolo Pascual and Jasmine Curtis-Smith worked on a psychological drama during the pandemic

REFLECTING the internal conflicts in an actor’s mind, conveying the sense of isolation felt during the pandemic, and opening doors for challenging psychological dramas in the Philippines all describe the film Real Life Fiction.

The film follows Paco, a renowned actor (played by real-life celebrity Piolo Pascual) who loses his sense of self after years of being one of the most famous personalities in his time. When he decides to write, direct, and act in his most personal project yet, his on-and-off-screen muse Paula (played by Jasmine Curtis-Smith) becomes his crutch in navigating both real and fictional worlds.

Speaking at a Quezon City press conference on Aug. 21, Mr. Pascual said that this role is a huge responsibility as it is something he hasn’t played before — but also a relatable one that faces an actor’s life and existence head-on.

The R-rated drama thriller, directed by Paul Soriano and shot during the height of the pandemic, also stars Epy Quizon as Paco’s stern yet considerate manager, and filmmaker Lav Diaz in a small role as the truth-speaking owner of an eclectic pawnshop.

Made at a time where no one knew what would happen the next day, director Mr. Soriano’s pitch to the two actors easily struck a chord. Mr. Pascual in particular saw himself in the character of Paco.

However, the main difference between the actor and the character is that Mr. Pascual has learned to be in tune with himself. “It’s hard to kind of distinguish who you are in front of a cam or off-cam. It happens all the time because, of course, sometimes you’re too tired and your defenses are down. There are a lot of blurry moments, but you have to live with it and deal with it as much as you can because you don’t have any choice but to be the person that people expect you to be,” he said.

For Ms. Curtis-Smith, who has been consistently active in film and television for over a decade, the intriguing script and the chance to act alongside Mr. Pascual made the project easy to take on. She described the challenge of Paula’s role as learning to “say no to your reality but, at the same time, give life to it as if it’s not you.”

“I learned from Paula’s journey. When it came to Paco and addressing her problems and boundaries with him, there are things that apply to me as an actor that I can also use,” she said.

A PANDEMIC PROJECT
The film makes a case for what can be achieved with limited resources, with much of it taking place in the interiors of a hotel where the characters are staying.

“We shot this for a couple of weeks during the pandemic. The whole hotel was locked up so we weren’t allowed to leave. It was actually so much fun because everything was limited, so we really had to focus on our characters,” said Mr. Pascual.

He added that, despite the small team, everyone was fueled by the excitement of having work in the midst of the pandemic.

Meanwhile, Ms. Curtis-Smith took the unique conditions they were working under as a chance to use method acting, something she hasn’t really done before.

“Previously, I’ve been able to use other techniques or not really have to believe that I am the character. But with this, it was so easy for me to allow myself to become Paula because it was so close to reality and the proximity allowed us to work so closely with the material,” she said.

With that said, neither of the actors found the job difficult, with the main challenge being “getting used to shooting everything indoors only.”

TAPPING DIFFERENT MARKETS
The film is but one of many in the current phase of Mr. Pascual’s career, where he now has more freedom to do a variety of challenging roles. Like his character in the film, method acting is his style but also something to be wary of.

“The best work takes us to a different place. I wake up wearing a different hat every day, so there’s no other way but to move on,” he said at the press conference. “After I did Mallari [a time-bending horror film revolving around a serial killer] my director kept telling me that you have to shake this off, do something, go on vacation. The next day, I was ready to rehearse for a concert.”

On Ms. Curtis-Smith’s part, jumping from Real Life Fiction to the local K-drama adaptation of Descendants of the Sun was a welcome change. “I was really forced to cut off from playing this intense role of an actress and girlfriend caught up in a man’s emotions and existential problems,” she said.

Right now, she is starring in the teleserye Asawa ng Asawa Ko, which has been taping and airing for almost a year, allowing her to “easily separate from that role already.”

“The investment that you do as a character, sometimes it’s hard to shake off because your body doesn’t know that it’s not real. You have to consciously stop, put yourself into a mini therapy session, and say, ‘you know what, this is not you’,” she explained.

Both actors come from playing antagonists in horror movies — Mr. Pascual as the titular occult priest in Mallari and Ms. Curtis-Smith as the deceiving diwata in In My Mother’s Skin. Now taking on a psychological drama, they expressed their appreciation for “less mainstream roles.”

“The pandemic made me hungry for new roles and, with the emergence of streaming platforms, you have different markets you can tap,” Mr. Pascual said. “Some of the global access to content nowadays makes it easier for us to choose the right project. You’re not stuck anymore to one genre so we’re able to explore different genres.”

Produced by TEN17P, Viva Films, and Spring Films and distributed by Black Cap Pictures, the R-16-rated Real Life Fiction will open exclusively in SM Cinemas on Aug. 28. — Brontë H. Lacsamana

RFID system reliability needed before fines — senators

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Ashley Erika O. Jose, Reporter

THE radio frequency identification (RFID) system, which uses electronic tags to manage toll payments without physical contact, should be improved and made reliable before fines are imposed on motorists, two senators said on Thursday.

“Before imposing a penalty on our motorists, the RFID system must first pass the test of reliability, efficiency, and interoperability,” Senator Mary Grace Poe-Llamanzares said in a statement.

“As it is, motorists still complain — and we have personally experienced this — of devices that cannot read the RFID stickers,” she added.

The Toll Regulatory Board (TRB) has announced that starting Aug. 31, motorists without RFID tags will face fines of up to P5,000, while those with insufficient balances will be fined up to P2,500.

According to the TRB, motorists entering an access highway without an electronic toll collection (ETC) device will incur a fine of P1,000 for the first offense, P2,000 for the second offense, and P5,000 for subsequent offenses.

Motorists exiting toll expressways with insufficient account balances will be fined P500 for the first offense, P1,000 for the second offense, and P2,500 for subsequent offenses.

“The move to impose fines on motorists who do not have RFID or have insufficient load on tollways is anti-consumer and raises several important issues that must be addressed,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement.

Kahit pwedeng irehistro ang Autosweep gamit ang Easytrip system at vice versa, walang full interoperability dahil kailangan pa rin na parehong may maintaining balance (Although it is possible to register Autosweep using the Easytrip system and vice versa, there is no full interoperability because both systems still require maintaining a balance),” she said.

Iilan lang din ang loading stations at madalas, kailangan talagang puntahan sa expressways bago makapagpa-install o makapagpaload (There are also only a few loading stations, and often, one must physically visit expressways to install or reload),” she added.

Nigel Paul C. Villarete, senior adviser on public-private partnership at Libra Konsult, Inc., said that the public should be given sufficient time to comply with the new directive.

He said that the deadline for compliance could be extended to Sept. 15 or even Sept. 30.

Mr. Villarete also suggested retaining cash lanes for infrequent users of expressways.

“There will always be vehicle owners who wouldn’t want to acquire RFID devices because they are not regular users of tollways and may just need to pass through once,” he said.

He also proposed a system to remind users about their account balance to prevent fines and inconvenience.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said while imposing fines for motorists with insufficient funds is unnecessary, the penalty for non-RFID users is not surprising.

“That rule has always been there, since RFID was made mandatory for all toll users. Lopsided in favor of tollway operators, as it grants them free equity in hundreds of millions of pesos,” Mr. Santiago said.

“Also, the penalty is unnecessary because insufficiency can be recouped next time users reload,” he said.

Ms. Poe-Llamanzares noted that the congestion of vehicles at the expressway toll booths “manifests the unreliability of the system.”

“The regulator and the private entities running it must fix the current RFID woes and prove the technology of cashless payment will give our motorists a better travel experience than inconvenience,” she added.

From clothing to food: DTI trade fair offers original Filipino products

CELEBRITY HOST Issa Litton, DTI MSME Development Group Undersecretary Maria Cristina Roque, Special Guest Mrs. Winnie Chua-Go, and DTI Bureau of Market Development, Promotion and OTOP Director Marievic Bonoan.

HOME decor, food, jewelry, clothing: all Filipino, all under one roof. That’s what one can find at the Department of Trade and Industry’s (DTI) Bagong Pilipinas National Trade Fair (NTF).

The fair runs for four days from Aug. 21 to 25, at the Megatrade Halls 1 through 3 of SM Megamall in Mandaluyong.

During the opening ceremony on Ninoy Aquino Day, Aug. 21, DTI-Bureau of Marketing Development, Promotions, and OTOP Director Marievic Bonoan discussed this year’s theme: Go Green! Go Local! “This year’s theme… is more than just a tagline. It is a call to action, for all of us to support our local MSMEs (micro, small, and medium enterprises) who are committed to eco-friendly practices, and promote the use of sustainable materials,” she said in a speech.

Ms. Bonoan told BusinessWorld: “That’s the call of the times. We have to use our indigenous materials.”

There are 271 exhibitors offering items ranging from indigenous textiles from Abra through Namarabar Ethnic Products Shop, trophies and plaques made as you wait from Antipolo, woven handicrafts (and a giant sunhat) from Quezon, and bags encrusted with pearls from Batangas (and a set of shell-shaped minaudières crafted with capiz shells from Cebu). Other products we saw included hand-painted baro’t saya, clothes made from flour sacks, various bee-related products, Ifugao woodcraft, jewelry from Camarines Norte, and shoes from Marikina.

The fair also features halal products, coconut-based innovations for medical use and personal care, novelty items, holiday decor, and home furnishings.

They’re also quite affordable: only one of the items we bought cost over P1,000 (a bracelet); a packet of cacao tea cost P195, while a flour-sack kimono jacket cost P850.

“They were endorsed by the regional and provincial offices, and then there’s a screening committee represented by the private (sector) and the government,” said Ms. Bonoan about the selection of exhibitors.

The NTF will facilitate business matching and networking activities between MSMEs and institutional buyers, providing opportunities for collaboration and growth. The event will include the Philippine Sustainability Pavilion, the Coconut Philippines Pavilion, the KAPEtirya Coffee Pavilion, the RAPID Growth Project, and the Innovation and Services Cluster for government and private sector partners.

According to a statement, last year’s Hybrid National Trade Fair generated P42.06 million in sales. Last month’s National Food Fair brought in P61.3 million in cash sales, booked sales, and orders under negotiation, according to an announcement by the event’s host, Issa Litton.

DTI Acting Secretary Cristina Roque, the founder of the Kamiseta clothing brand, said in a speech, “Every product we support and every partnership we forge contributes to a larger movement: one that uplifts and builds a more vibrant economy. We will be opening nooks and areas in all Philippines embassies around the world to showcase and promote Philippine products for retail and wholesale buyers.

“For our MSMEs, remember: you are not alone in this journey,” she said. “The government, the private sector, and the entire nation stand with you.”

The NTF is open to the public and admission is free. Aspiring entrepreneurs can join future DTI-BMDPO fairs through their local DTI Office. They may also reach out to the Bureau of Market Development, Promotions, and OTOP by sending an e-mail to Ms. Bonoan at BDTP@dti.gov.ph. — Joseph L. Garcia

Malampaya group awards $180-M contract to support new well drilling

BW FILE PHOTO

THE MALAMPAYA consortium, led by Prime Energy Resources Development B.V., has awarded a contract worth approximately $180 million (about P10 billion) to a Netherlands-based offshore energy contractor.

The contract aims to support the execution of the planned drilling of new wells, Prime Energy said in a statement on Thursday.

Allseas Nederland (Brasil) B.V., a subsidiary of Allseas Group specializing in offshore pipeline installation, will be installing the pipeline and umbilicals to connect two new wells in the Camago and Malampaya East fields to the Malampaya Shallow Water Platform.

Prime Energy said that Project Sinagtala, an initiative to advance Phase 4 of the Malampaya deep-water gas-to-power project, aims to extend the life of the Malampaya gas field, which is expected to be depleted by 2027. 

“Project Sinagtala is expected to increase domestic gas supply and ensure consumers benefit from stable and reliable energy that is accessible to existing and new gas power plants, in line with the Philippine Energy Plan,” the company said.

The Malampaya consortium is composed of Prime Energy Resources Development B.V., which leads the project; UC38 LLC, an energy investment firm; Prime Oil & Gas, Inc., which focuses on upstream oil and gas operations; and the state-owned PNOC – Exploration Corp., a government entity responsible for the exploration and development of oil, gas, and coal resources in the Philippines.

It has secured a 15-year renewal of Service Contract No. 38 through 2039, paving the way for the exploration and development of additional gas reserves.

“As a service contractor to the government, we are committed to maintaining high standards of production and exploration that have defined the Malampaya project since its inception in 2001,” Prime Energy President and Chief Executive Officer Donnabel Kuizon Cruz said.

“By increasing our gas supply, we extend Malampaya’s life and sustain our own ‘sariling atin’ Filipino gas, always available and at a stable and predictable price,” she added.

In March, Prime Energy announced that it had awarded a $69.9-million contract to London-based Noble for the use of its deepwater drillship. The contract covers the drilling of two wells and a third exploration well, Bagong Pagasa. — Sheldeen Joy Talavera

UP honors Eraserheads with Gawad Oblation

FILIPINO rock band Eraserheads, composed of Ely Buendia, Raymund Marasigan, Buddy Zabala, and Marcus Adoro, received the Gawad Oblation from their alma mater, the University of the Philippines (UP), on Tuesday.

The four were awarded medals representing the university’s highest honor, a “symbol of deep gratitude for the extraordinary service rendered with or in the name of UP.”

“It is not an exaggeration to say that the Eraserheads are a pivotal force in the history of Original Pilipino Music (OPM). Even now, decades after they first burst into the local music scene, they remain a household name, a cultural icon for the ages,” said UP president Angelo Jimenez at the Gawad Oblation awarding ceremony held on Aug. 20 in Diliman, Quezon City.

The OPM act has “indelibly shaped the scope and sound of our culture,” according to the citation read by UP Secretary Roberto M.J. Lara.

He added that the Eraserheads is known as “one of the greatest [bands] that the country produced, that influenced even far-reaching generations with a prolific discography of albums and hits.”

Formed in 1989, the band has a plethora of hit songs like “Ang Huling El Bimbo,” “With A Smile,” “Ligaya,” “Pare Ko,” and “Alapaap,” among others.

LIKE A GRADUATION
In their acceptance speeches, the Eraserheads members recounted the nights they spent writing and rehearsing songs to perform at university festivals. At the Diliman campus, they “discovered the power of creativity and freedom of expression,” said Mr. Buendia.

“Above all, UP taught us something more valuable: how to question, challenge, stand up, and speak out,” he added.

The frontman also recalled how music got him through many challenges as a student and in life. One example was how he passed a difficult Spanish class by giving his professor a demo of his music, which fueled him to continue his passion.

Mr. Adoro recalled the group’s time spent at various landmarks in the university, like the Main Library and the Sunken Garden. The guitarist concluded that, as individuals, they will continue uplifting the Filipino spirit.

Mabuhay ang Noypi! (Long live the Pinoy!)” he exclaimed.

The bassist, Mr. Zabala, thanked the university for the “unforgettable experiences, academic and otherwise,” that informed and found a home in the band’s many songs. “My world expanded. No, exploded,” he said.

Mr. Marasigan paid tribute to their families for their patience and support in the their journey — at the expense of finishing their college education. “Salamat sa karangalan at parang grumadweyt na rin kami ngayon (Thank you for the honor and for making us feel like we’ve finally graduated),” said the drummer.

In lieu of the diplomas they never got, the band dedicated the award to their parents.

Designed by the late artist and UP professor Leo Abaya, the Gawad Oblation medal echoes early Philippine flags, UP’s signature colors, and the iconic Oblation statue for which the award is named. First launched in 2017, the award has been bestowed on outstanding UP alumni who have represented the school’s values of “honor, excellence, and service.”

The ceremony was marked by an “Eraserheads Medley” arranged by Jose Carlo Tuazon and performed by the UP Symphony Orchestra String Quartet.

As for the Eraserheads themselves, they continue the Huling El Bimbo world tour, with the next stops in Dubai and Singapore. — Brontë H. Lacsamana

Premiere Island Power REIT profit slips 4% on higher costs

VILLAR-led Premiere Island Power REIT Corp. (PREIT) saw a 4% decline in its second-quarter net profit to P127.74 million from P133.12 million last year due to higher rental costs.

Revenue for the second quarter was flat at P152.21 million, while rental costs surged by 19.7% to P20.88 million from P17.44 million last year, PREIT said in a regulatory filing.

For the first half, PREIT saw a 4.6% drop in net profit to P255.27 million from P267.44 million a year ago.

January-to-June revenue was unchanged at P304.42 million, while rental costs increased by 20% to P41.76 million from P34.89 million in 2023. 

“(Higher rental costs) were mainly attributable to depreciation of generation assets amounting to P29.1 million and real property taxes amounting to P3.6 million. Depreciation in 2024 increased by P2.8 million due to the increase in the valuation of properties for the year 2023,” PREIT said. 

PREIT is the real estate investment trust platform of the power and infrastructure groups of Villar-led Prime Asset Ventures, Inc. The company’s sponsors are S.I. Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR). 

SIPCOR operates bunker-fired generation units in Siquijor Island, while CAMPCOR operates two power plants in Camotes Island, Cebu.

On Thursday, PREIT shares rose by 1.05% or two centavos to P1.92 apiece. — Revin Mikhael D. Ochave 

Stuff To Do (08/23/24)


Advance screening for Look Back open to fans

THE creator of popular animé Chainsaw Man, Tatsuki Fujimoto, is back to take fans on a heartwarming journey with his new animé film Look Back. The audience at the advanced screening of the film on Aug. 24 will have access to exclusive Look Back official merchandise. The screening comes four days ahead of the coming-of-age anime film’s official Philippine release. There will be two fan screenings: at SM Megamall Cinema 1 and SM North EDSA Cinema 2, both at 7 p.m. Look Back tells the tale of the shy shut-in Kyomoto and the confident Fujino, and how their mutual love for manga draws them together. The advance screening tickets are priced at P1,200, along with a premium souvenir set that will include a poster, a copy of the original manga draft, and a collectible manga bookmark. Visit the Encore Films social media pages for more details.


NHCP, Araneta City present histoEx

AT the Quantum Skyview of Gateway Mall 2, a three-day expo celebrating the Philippines’ historic and cultural treasures will take place for free. From Aug. 23 to 25, the National Historical Commission of the Philippines (NHCP) in partnership with Araneta City, J. Amado Araneta Foundation, and the Gateway Gallery have organized histoEx: Where History and Experience Converge. It will have exhibitors from all over the country, special performances, talks, and lectures. Guests and speakers include historian and author Ambeth Ocampo, writer and musician Lourd de Veyra, filmmakers Pepe Diokno and Zig Dulay, political science lecturer Richard Heydarian, and broadcast journalist Gretchen Ho. For the full schedule, check out the social media pages of Gateway Mall and NHCP.


OPM balladeer Ariel Rivera to perform at CenterPlay

CITY of Dreams Manila will see actor and singer-songwriter Ariel Rivera at the 11th edition of the Centerplay Concert Series. The one-night-only performance will be on Aug. 28 at 9 p.m. It will celebrate Mr. Rivera’s career, from his discovery in 1989 and rise to fame in the 1990s as the “Kilabot ng Kolehiyala.” He was behind chart-topping R&B and pop hits including his first single “Sana Kahit Minsan,” “Simple Lang,” “Minsan Lang Kitang Iibigin,” and “A Smile In Your Heart.” The concert also features alternating performances from DJs, and bands including Highschool Playlist and the Swerve Band from 7 p.m. to 2 a.m. Guests can reserve a seat or a table starting at P3,000 (consumable). VIP couch seats for a party of eight at P24,000 and VIP Small Tables for a group of four at P12,000 are also available, consumable.

Pangilinan-led Smart targets broader 5G adoption with launch of low-cost 5G phone

SMART Communications, Inc. is working to reduce cost barriers and increase fifth-generation (5G) adoption in the Philippines by introducing a low-cost 5G-capable phone, the Manuel V. Pangilinan-led telecommunications company said on Thursday.

The initiative aims to broaden access to 5G technology across the country, Alex O. Caeg, head of consumer wireless business at Smart, said during a press briefing.

“We are making it more available to more Filipinos. Most of our customers are still on the LTE (long-term evolution) networks, if not the legacy networks and devices,” he said.

The company has partnered with ZTE Corp., a Chinese telecommunications equipment manufacturer known for its 5G technology, to offer the Smart ZTE Blade A75 5G, a smartphone designed to provide 5G capabilities at a lower cost.

The Smart ZTE Blade A75 5G phone retails at P5,450, lower than the available 5G devices priced around P8,000 to P9,000 in the market.

“We have more 5G sites than any of our competitors. But unless the phones become affordable, many Filipinos will not be able to access the [5G] network,” Kristine A. Go, senior vice-president for consumer wireless individual at Smart, told BusinessWorld.

She added that, of approximately 130 million devices in the country, only 10% are capable of accessing a 5G network, which offers improved speed, coverage, and ultra-low latency.

The Smart ZTE Blade A75 5G is currently available in China, Australia, Japan, and the Philippines.

The smartphone features a 50-megapixel dual artificial intelligence camera with a bokeh lens and RAW Super Night Mode. It also includes a 6.6-inch display with a 120-hertz refresh rate and digital theater systems audio technology.

For storage, it provides up to eight gigabytes of random access memory and 128 gigabytes of read-only memory UFS 3.1, and is equipped with a 5,000 milliampere-hour battery.

Users can purchase the Smart ZTE Blade A75 5G with a Smart Prepaid Bundle that includes five gigabytes of open access data and 300 all-network texts and 30 minutes all net calls for three days.

This also includes eight gigabytes of unlimited TikTok, unlimited network text valid for seven days, once a month for three months.

The company also hinted at the possibility of releasing similar devices in partnership with ZTE or other brands in the future.

“Hopefully it’s not going to be the last, because we expect also other device companies to be rolling out more affordable 5G for the market to get populated with 5G devices, and our network is ready.

Smart is the wireless unit of PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — A.R.A. Inosante