Home Blog Page 1350

Spot market prices rise in March on lower supply, higher demand

ANDREY METELEV-UNSPLASH

THE AVERAGE price of electricity at the Wholesale Electricity Spot Market (WESM) increased in March, as demand rose while supply decreased due to forced outages, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

Data from IEMOP showed that the WESM price increased by 95.5% to P5.34 per kilowatt-hour (kWh) in March, from P2.73 per kWh in February.

From February 26 to March 25, the available supply declined by 4.4% to 19,611 megawatts (MW), attributed to forced outages and deration of some power plants.

Demand, on the other hand, rose by 5.9% to 13,670 MW, driven by extreme heat during the first week of March.

For Luzon, prices surged by 102.7% to P5.50 per kWh from P2.71 per kWh.

Supply decreased by 6.5% to 13,530 MW, while demand grew by 7.1% to 9,713 MW.

The WESM rate in the Visayas increased by 95.5% to P5.48 per kWh from P2.81 per kWh.

Supply in the grid decreased by 1.3% to 2,365 MW, while demand rose by 2% to 1,913 MW.

The Mindanao average price last month climbed by 61.3% to P4.39 per kWh from P2.72 per kWh.

While supply improved by 2.1% to 3,716 MW, demand also increased by 4.5% to 2,044 MW.

IEMOP operates the WESM, where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs.

In February, the market operator anticipated an increase in spot prices during the dry season due to the expected higher demand. — Sheldeen Joy Talavera

Sony reveals cast for 4 ‘bingeable’ Beatles movies

AMAZON

LOS ANGELES — Sony Pictures said its big-screen story about The Beatles will be told through four films released in April 2028, each from the perspective of one of the Fab Four.

Director Sam Mendes also revealed the cast for the films on Monday at the CinemaCon industry convention in Las Vegas.

Paul Mescal will play Paul McCartney, Harris Dickinson will play John Lennon, Barry Keoghan will play Ringo Starr and Joseph Quinn will play George Harrison.

While the groundbreaking British band’s rise to fame has been well-chronicled, “I can assure you there is still plenty left to explore,” Mr. Mendes said on stage to an audience of theater owners.

The four films will be released “in proximity” to each other in April 2028, Mr. Mendes said, adding that Sony executive Tom Rothman described it as “the first bingeable theatrical experience.”

“Frankly, we need big cinematic events to get people out of the house,” said Mr. Mendes, who won an Oscar for directing American Beauty.

Mr. Mescal starred in Gladiator II and All of Us Strangers and was nominated for an Oscar for Aftersun. Mr. Keoghan received an Oscar nomination for The Banshees of Inisherin.

Mr. Dickinson starred in Babygirl, and Mr. Quinn appeared in Gladiator II and Netflix hit Stranger Things.

The four actors appeared briefly on stage dressed in all black and bowed in unison, a hallmark of Beatles performances.

Sony titled the movies The Beatles: A Four-Film Cinematic Event.

“We are going to dominate the culture that month,” said Mr. Rothman, the chief executive officer and chairman of Sony Pictures Entertainment’s Motion Picture Group. — Reuters

US President Donald J. Trump’s Reciprocal Tariffs

US PRESIDENT Donald J. Trump is imposing a bigger-than-expected tariff on Philippine exports to the United States, as part of a broader reciprocal tariff plan that will apply to all its trading partners. Read the full story.

US President Donald J. Trump’s Reciprocal Tariffs

Dealing with ‘suspicious’ commendation letters

Two of our valuable customers sent separate letters to our chief executive officer commending the work of our sales representative. The person being commended is a headache for us, having failed to achieve his monthly quota for the past three months. In fact, we’ve just started placing him on a Performance Improvement Plan (PIP). We suspect that the letter may have been solicited from the sales agent’s friendly customers. How do we manage the situation? — Boiling Point.

​It’s not easy. Your challenge is reconciling the worker’s performance with the commendation letters. If they can’t be reconciled, tackle them separately with the following questions: How truthful are these commendation letters? Unfortunately, only the letter sender can affirm that.

On the other hand, how does the commendation translate to actual sales performance? The evidence must be weighed against the sales agent’s failure to achieve his quota. Also a consideration is maintaining your company’s relationship with customers.

​Indeed, it’s difficult to verify the authenticity and validity of the commendation letters. They’re valid because they depend solely on the “testimony” of the letter-writers, who may have experienced a positive experience with the worker being commended. Take the letters at face value.

​One thing to consider is whether the letter-senders hold a low-ranking position. This is not to belittle their job or anything, but only to assign a value to their letters. Look into whether the letters were written by a team leader, supervisor, or even a manager from those companies, who may not have the authority to represent their organization.

If the letters were indeed worth writing, the best thing that they could have done was to have those letters co-signed by their department heads. This gives credibility to the process, especially if the letters contain detailed accomplishments of the sales agent. In addition, the letters must contain specific statements on how the worker’s actions greatly benefited their respective organizations.

If their commendation letters are bereft of details other than plain recognition or words of appreciation, then you may be right to suspect that they were solicited by your sales agent to protect him from the adverse effects of his poor work performance.

APPROACHES
Act like a professional manager in managing this issue. Be objective. Make it appear that everything is in order when dealing with the customers who sent the commendation letters. Do your best to get by with their bare facts. It should help you make a better decision. Besides, mere suspicion is worthless.

Now, here are approaches that you can explore to manage the situation.

One, acknowledge the letter-senders. Do it right away. Make your reply short and simple. There’s no need to challenge the customers’ intent by bringing up the worker’s actual poor performance. Use objective language. Express your sincere gratitude for their kind words.

Two, acknowledge the letters right away. Any delay may telegraph your suspicions, especially if they know that their “commendation” was solicited by your sales agent. If the commendation letter was done the old-fashioned way, meaning through a formal letter, then follow the same route.

Three, give your sales agent the benefit of the doubt. Inform him that you’ve received the customers’ letters. Don’t talk to him about your doubts. Treat it as a separate issue from his actual poor performance. Stick to the facts. Proceed with the PIP. Closely monitor the salesperson’s progress and give advice as soon as cracks become evident.

Four, correlate the commendation with actual performance. It will be tempting to find a connection between the commendation letters and the sales agent’s performance. Whatever the result of your investigation, don’t bother raising the issue with the sales agent to avoid unnecessary conflict.

PERFORMANCE MANAGEMENT
Organizations seeking to maintain and improve their competitive advantage must be able to manage the behavior of their employees. At times, you must consider other extraneous factors such as customer behavior when the sales agent performs the requirements of their job.

​You may be distracted by external factors that may have or may not have anything to do with the workers’ performance. That’s why organizations, regardless of their size and nature of business, must link their mission, vision, and value statements to work performance standards.

​Your sales agent is a key ingredient in the success and growth of the company. Therefore, managing his performance should be the central focus of your control. It’s the systematic process by which an organization requires the active involvement of its employees, as individuals and as members of a group.

 

Bring Rey Elbo’s 15-hour (three half-days) leadership program called “Superior Subordinate Supervision” to your management team. Learn from an effective training methodology designed to keep the lessons stuck to its core. E-mail elbonomics@gmail.com or via https://reyelbo.com.

EastWest Bank, Puregold launch co-branded credit card

EAST WEST Banking Corp. (EastWest Bank) has launched a new credit card co-branded with Puregold Price Club, Inc., which offers rewards points that can be converted into shopping credits.

The bank on Thursday launched the EastWest Puregold Always Panalo Visa credit card, which offers a conversion rate of one reward point for every P30 spent at Puregold. For other purchases, every P100 spent is equivalent to one reward point.

Cardholders can also accumulate up to P3,000 in their Puregold P-wallet monthly when they convert their rewards points.

“This card is a collaboration between EastWest and Puregold that delivers practical, real-world benefits. It turns regular grocery runs into opportunities to earn cash rebates, which can then be converted into Puregold P-Wallet credits. This helps cardholders stretch their budget while enjoying the ease of cashless payments,” EastWest Bank Chief Executive Officer Jerry G. Ngo said at the event.

The new offering is meant to attract new customers to boost its credit card business, he said. EastWest Bank’s credit cards in force reached 1.4 million last year.

“At the same time, we want to welcome our new EastWest customers who may be applying for their very first credit card. There’s a lot of new-to-card customers in the Philippines. I’m very excited to expand that penetration rate to provide that flexibility to everyone. This collaboration with Puregold builds on that strong momentum that we’ve seen in our credit card business at EastWest Bank,” he said.

“This partnership is rooted in the shared goal… of serving the Filipino household, something that Puregold has done for years by being a dependable part of their everyday lives,” Mr. Ngo said.

EastWest Bank’s net income rose by 25% to an all-time high of P7.6 billion in 2024.

Its shares closed unchanged at P10.10 apiece on Thursday. — A.M.C. Sy

Who, exactly, is Trump liberating with tariffs?

FREEPIC

DONALD TRUMP has offered varying justifications for tariffs, depending on his audience and what’s expedient at any moment. When the president chooses to mount an economic case for levies, it usually comes with the contention that trading partners are ripping off Americans. Factories need to come home — to the extent they ever left — and duties will do the trick. He professes to not care much about the crockery broken in the process, and has dubbed Wednesday “Liberation Day” in honor of his protectionist broadsides. Yet the global system he sees as a prison was anything but. 

Barely mentioned is that for decades, American companies were buoyed by making products abroad. The practice brought benefits for the domestic economy, helped put a lid on inflation, and delivered influence for Washington. US partners prospered and, as their living standards climbed, they in turn bought goods and services from firms headquartered stateside. It would be too easy to call this arrangement a win-win; unions complained about outsourcing and wealth wasn’t always spread evenly in host nations. There was, however, a circle of self-interest. It worked for a long time, and still can, if Trump’s team recognizes the pluses that accrued and not just the drawbacks.

What is clear is that corporations pursued manufacturing in far-flung destinations as a deliberate strategy. The approach had its roots in the postwar world of US industrial dominance, but it was turbocharged in the 1990s. This often meant that to land big deals, it was best to offer the home patch something. A classic method was to make components in the jurisdiction you sought business from. This helped local employment and provided the technological sweeteners that governments were keen on. Who, if anyone, was being ripped off? If there was advantage being taken, there was a lot to go around. The US trade deficit with Southeast Asia has widened over the years, but opportunities were also plentiful.

The contours of the model were laid out for me in Malaysia, where I reported for Bloomberg News in the mid-to-late 1990s. Before a financial crisis derailed a lot of plans, Asia was seen as a gold mine for aircraft makers. Boeing Co. and Airbus SE competed vigorously. In 1996, Boeing landed a huge contract with Malaysian Airline System Bhd. for 777s and 747-400s, beating out its European rival. I recall Tajudin Ramli, the Malaysian tycoon who helmed MAS, lauding then-Boeing CEO Phil Condit as his good friend. Local content was all the rage. The Arlington, Virginia-based plane maker joined with local companies to make parts, such as wing components. It didn’t escape attention that the venture would set up a facility in the northern state of Kedah, home to both Mahathir Mohamad, the prime minister at the time, and Tajudin.

The nearby Malaysian state of Penang offers an example of how a slightly earlier version of this approach took root. In the early 1970s, US computer chipmakers were looking for places to invest that were not only cheaper, but offered little prospect of labor strife. For nations like Malaysia and neighboring Singapore, wooing firms also offered the tantalizing prospect of industrial development. At a time when diplomatic experts at august think tanks bemoaned the loss of influence that accompanied withdrawal from Vietnam, semiconductors kept ties with the US pivotal. “Rather than dominoes falling to Communism, America’s allies were even more deeply integrated with the US,” Chris Miller wrote in his book Chip War: The Fight for the World’s Most Critical Technology.

Attracting foreign capital was a core economic objective of Singaporean officials. For Philip Yeo, the former head of the Economic Development Board, this mission meant more than just traveling a lot and working the corridors of corporate behemoths. He saw his role as akin to a concierge. Singapore would provide the infrastructure, an educated workforce — and tax incentives. The benefits to the city-state were real: Jobs, money spent in the local economy, a healthy property market, and income. Yeo pressured the principal of the Singapore American School to find a place for the child of the Western Digital Corp. executive appointed to run its local operation. The kids of Levi Strauss & Co.’s top person were distraught at the quarantine endured by the family dog, and Yeo took it upon himself to find a solution. “Even a dog became my problem,” he recounted in an interview for a biography, Neither Civil Nor Servant, by Peh Shing Huei. “We needed the investment, so it’s okay. I would do anything to get the deal over the line.”

Were Americans being exploited, as Trump insists? Hardly. Would it have been better if Airbus triumphed at the expense of Boeing, or would shareholders prefer less-friendly locations than Singapore, a country that enjoys close economic and strategic ties with the US. Of course, not. These are just a couple of examples of where the connective tissues of trade and capital, for all their imperfection, brought tangible advantages.

If Trump sets in train responses that diminish the effectiveness of this model, there will be many losers. It’s doubtful anyone will truly earn the right to be called a victor.

BLOOMBERG OPINION

FAST Logistics introduces startup accelerator program

FAST LOGISTICS GROUP said it plans to launch four startups under its newly established venture studio aimed at enhancing the country’s logistics and supply chain.

The Revv-EVODINE Venture Studio, unveiled in Cabuyao, Laguna, on Thursday, aims to support startups focused on improving operational efficiency and reducing logistics costs for businesses nationwide.

The venture studio will focus on leveraging artificial intelligence for forecasting, automation, and digital freight matching, among other innovations, FAST Logistics said in a statement.

“Through Revv-EVODINE, we are creating a platform where promising ideas evolve into real-world solutions and scalable ventures, guided by an evidence-based, outcome-driven approach,” Manuel L. Onrejas, Jr., chief executive officer (CEO) for logistics at FAST, said during the launch.

Under the program, early-stage startups will undergo a 16-week incubation, where founders will receive personalized mentorship, critical resources, and real-world testing environments from a pool of executives and venture builders.

The studio will also leverage the company’s warehouse network, transport capabilities, and best-in-class technology infrastructure to foster innovation in the country’s logistics sector.

This will allow startups to validate their technology, refine their business models, and accelerate their market readiness.

The Revv-EVODINE Studio will also incubate ideas from FAST’s internal teams, as well as those recognized during last year’s Philippine Startup Week.

The program will be led by Mark Philip Comandante, Exoasia Innovation Hub CEO and Revv-EVODINE Venture Studio president and chief operating officer.

“Revv-EVODINE ensures that startups not only develop innovative solutions but also align them with industry needs and market demands, ensuring they are market-ready and capable of driving measurable impact in the logistics sector,” Mr. Comandante said.

The Philippine startup ecosystem raised $1.12 billion in 2024, a 16% increase from the previous year, according to the latest Philippine Venture Capital Report by the Boston Consulting Group and venture capital fund Foxmont Capital Partners. — Beatriz Marie D. Cruz

How PSEi member stocks performed — April 3, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, April 3, 2025.


MBC proposes BOT model be applied to power grids

PHILSTAR FILE PHOTO

THE Makati Business Club (MBC) urged the government to apply the build-operate-transfer (BOT) model to the power grid industry to prepare the grid for the entry of renewables.

In a statement on Thursday, the MBC called for the issue of an executive order allowing BOT grid projects.

“This would allow third-party investors, whether private sector, or government-owned and -controlled corporations, to build needed transmission infrastructure, and accelerate grid development, both of which are critical to achieving reliable, affordable, renewable energy (RE),” it said.

A BOT scheme allows a project proponent to finance, construct, and operate a project for a fixed term, for later transfer to the government at the end of the period.

The MBC said that grid infrastructure is one of the main issues in achieving “reliable, affordable and renewable power.”

Under the Philippine Energy Plan, the government aims to increase the share of RE in the power generation mix to 35% by 2030 and 50% by 2040.

According to the 2024 Climatescope report by BloombergNEF, the Philippines ranked as the second-most attractive emerging market for RE investment.

However, investment remains a challenge, with the funding gap in RE estimated at $328 billion as of 2023, the MBC said, citing a study by BMI.

“Increased investments in grid infrastructure improve the development of renewable energy, and reduce long-term cost, by improving transmission efficiency. These improvements need to happen at a faster pace given the growing interest of investors in the Philippine renewable energy industry,” the MBC said.

It also called for increased public-private partnerships in off-grid solutions to help achieve 100% electrification, which is the government is targeting for 2028.

Asked to comment, Undersecretary Rowena Cristina L. Guevara said that the DoE has proposed a BOT scheme before.

Under such a setup, the grid operator, the National Grid Corp. of the Philippines (NGCP), remains the system operator and transmission network operator, she said.

Ms. Guevara said the best application of executive orders is “advancing the construction of transmission assets by RE developers or third party to assist NGCP.”

These assets will be turned over to NGCP to operate, she said.

“Timely construction of transmission assets is necessary for RE projects to connect and inject to the grid,” she told BusinessWorld.

Renewables topped the list of energy projects set to go online this year, with total capacity of over 4,800 megawatts (MW), the DoE reported as of Jan. 31.

The NGCP reported available transmission capacity at 10,260 MW, sufficient to allow the integration of new power generation assets.

Upcoming power plants can supply electricity of up to 6,573 MW to the Luzon grid, 2,281 MW to the Visayas grid, and 1,406 MW to Mindanao grid.

The NGCP had yet to reply to BusinessWorld’s request to comment at the deadline. — Sheldeen Joy Talavera

Luzon grid red alerts seen possible in June

BW FILE PHOTO

THE Luzon grid may experience yellow alerts in May and red alerts in June, with power supply margins tightening in the event of forced outages at baseload power plants, according to the Institute for Climate and Sustainable Cities (ICSC).

The ICSC said in a power outlook report that while power reserves are normal this month, supply margins on the Luzon and Visayas grids are expected to thin by June.

In its projections, the ICSC assessed the operating margins in the three main island grids based on the 2025 weekly demand, supply, and operating margin profile issued by the National Grid Corp. of the Philippines and the Department of Energy (DoE) in December.

The Luzon grid is projected to export power to the Visayas grid between March 31 and June 1, the group said. However, exports may be restricted starting early June to maintain adequate operating reserves in Luzon, when reduced generation from coal-fired plants is expected.

“This scenario is particularly relevant in June, when reduced coal generation of around 842 MW (megawatts) is unavailable could lead to potential red alerts,” said ICSC.

Because of the projected restriction in exports during the period, the Visayas grid could possibly experience yellow alerts in June due to inadequate power supply.

Among the key factors cited to maintain sufficient reserves is ensuring that committed energy projects go online as planned and to prevent unplanned outages of existing plants.

Meanwhile, the ICSC said that Mindanao can maintain sufficient reserve levels between April and June even while exporting power to Visayas.

On March 5, the first yellow alert this year was declared over the Luzon grid amid higher than expected demand combined with power plants going on forced outage.

Citing its previous analyses, ICSC said that even without the increase in demand, planned and unplanned outages of large power plants play a significant part in grid instability.

“Although elevated electricity demand during summer contributes to power supply issues experienced in these months, forced outages of baseload power plants have constantly exacerbated the situation,” said Jephraim Manansala, the ICSC’s chief data scientist and co-author of the report.

The ICSC said that the DoE should review power demand and supply outlooks “to ensure preparedness for the anticipated surge in demand.”

“Addressing these challenges is critical to ensuring a stable and resilient power system capable of supporting sustainable economic growth and development,” the group said.

Asked to comment, Assistant Secretary Mario C. Marasigan said that the DoE does not discount the possibility of yellow and red alerts during the dry season.

“As such, the DoE is closely monitoring the overall situation, not only in terms of power supply but also the condition of our transmission and distribution facilities,” he said via Viber.

He said that the department “ensures mitigating and contingency measures are in place and ready to implement, once needed by the system.”

Such measures include the timely commissioning of committed power projects and availability of interconnection facilities, as well as the readiness of Interruptible Load Program participants, he said.

Last year, the Philippines’ main grids were placed under 16 red alerts and 62 yellow alerts.

A yellow alert is declared when available supply falls below a designated safety margin, while a red alert will trigger power outages as the authorities ration power. — Sheldeen Joy Talavera

PHL 2024 GDP growth revised upwards to 5.7%

PHILIPPINE STAR/WALTER BOLLOZOS

THE economy grew by a revised 5.7% in 2024, against 5.6% as initially reported, the Philippine Statistics Authority (PSA) said on Thursday.

It said the new estimate is more in line with international reporting practices.

GDP growth in 2024 outpaced the 5.5% expansion in 2023 and had been the strongest reading since the 7.6% expansion in 2022.

The PSA also revised gross national income (GNI) growth to 7.7% in 2024 after the preliminary reading of 7.6%.

The PSA lowered the GNI for 2023 to 10.4% from the 10.5% initial estimate.

Growth in net primary income from the rest of the world was revised upwards to 26.6% in 2024 from the preliminary figure of 26.1%.

The 2023 reading was revised to 96.6% from the 97% initially reported.

There were no changes to growth in the industry sector (5.6%) and the services sector (6.7%) but the agriculture sector’s contraction in 2024 was put at -1.5%, against the -1.6% preliminary estimate.

In the fourth quarter, agriculture declined 1.6%, against the 1.8% contraction previously reported.

The industry sector’s growth, on the other hand, was upwardly revised to 4.5% from the 4.4%.

Growth of the services sector was unchanged at 6.7%.

Mining and quarrying growth was revised downwards (-4.1% from -3.4%), as were electricity, steam, water and waste management (5.7% from 6.1%) and construction (7.7% from 7.8%).

On the other hand, manufacturing growth was raised to 3.3% from 3.1%.

The following services subsectors posted stronger growth than initially reported: education (6.8% from 6.2%), other services (10.9% from 10.5%), public administration and defense (7.2% from 7%), and accommodation and food service activities (6.3% from 6.1%).

On the expenditure side, government spending grew 7.3% against the 7.2% previously reported. On the other hand, in the three months to December, growth in state spending was lowered to 9% from the 9.7% preliminary estimate.

In 2024, household spending growth was unchanged at 4.8%, and 4.7% in the fourth quarter.

In trade in goods and services, the PSA kept export and import growth unchanged at 3.4% and 4.3% respectively in 2024.

Meanwhile, the PSA lowered import growth in the fourth quarter to 2.7%, from 3.2% previously. Export growth was unchanged at 3.2% in the quarter.

Gross capital formation, the investment component of the economy was unchanged at 7.5%.

In the fourth quarter, gross capital formation growth was 5.5%, against the 4.1% preliminary estimate. — Abigail Marie P. Yraola

Digital economy growth cited as DICT priority

PHILSTAR FILE PHOTO

THE Department of Information and Communications Technology (DICT) said it sees as its priority the growth of the digital economy, while also improving the SIM (subscriber identity module) registration process.

“We’ll just continue the good work that the department’s been doing,” the department’s newly appointed Secretary, Henry R. Aguda, told reporters on the sidelines of an event on Thursday.

“Personally, I want to direct (the department) towards creating a stronger digital economy,” he said. “I have an industry development function for the digital space together with the DTI (Department of Trade and Industry and the Department of Labor (and Employment), to prepare the jobs that will be ready when those in school graduate.”

Mr. Aguda’s appointment took effect on March 20.

The DICT will also review the implementation of Republic Act No. 11934 or the SIM Registration Act, focusing particularly on registration and data privacy concerns, Mr. Aguda said.

“Like most laws that have been implemented, there are areas for improvement. So, that’s what I’m going to be working on together with our telco partners,” he noted.

Scam calls in the Philippines increased 74% to 351,699 in the first quarter of 2025, according to anti-scam application Whoscall.

The department will come up with a full lineup of key officials by the end of the month, according to Mr. Aguda.

In a March 31 memorandum, all undersecretaries, assistant secretaries, and directors were ordered to submit courtesy resignations to give the new Secretary a “free hand to perform his duties and functions.”

Mr. Aguda said this is “normal in any transition of any agency.”

“This is to allow the incoming head of agency to assess the team, where are the gaps, and how (the department can) improve its performance.”

“Give me, maybe, towards the end of the month to figure out the final (makeup) of the organization.”

He also noted that the transition will not hamper the DICT’s duties ahead of the 2025 midterm polls. — Beatriz Marie D. Cruz