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Jennifer Lopez files for divorce from Ben Affleck, media reports say

JENNIFER LOPEZ and Ben Affleck. — REUTERS/YARA NARDI

 – Jennifer Lopez and Ben Affleck, the Hollywood stars who rekindled their romance and married two decades after a high-profile split, are getting a divorce, TMZ and other media outlets reported on Tuesday.

Ms. Lopez, singer of “Love Don’t Cost a Thing,” submitted divorce papers in Los Angeles County Superior Court on Tuesday, TMZ said.

The filing came two years to the day after the pair held a lavish wedding celebration in Georgia. They had initially exchanged vows in July 2022 at a Las Vegas wedding chapel.

Spokespeople for Ms. Lopez and Mr. Affleck did not immediately respond to requests for comment.

In the early 2000s, the pair dubbed “Bennifer” were the most talked about couple in the celebrity world in a relationship marked by his-and-her luxury cars and a large 6.1-carat pink diamond engagement ring. They abruptly called off their wedding in 2003 and split up a few months later.

Ms. Lopez married Latin singer Marc Anthony, her third husband, just five months after her 2004 split with Affleck.

Mr. Affleck, director and star of Oscar-winning film “Argo,” went on to marry, and later divorce, actress Jennifer Garner.

Ms. Lopez and Mr. Affleck started dating again in 2021, months after she and baseball star Alex Rodriguez called off their engagement and ended a four-year relationship.

Ms. Lopez said later that the initial breakup with Mr. Affleck “was the biggest heartbreak of my life.”

“I honestly felt like I was going to die,” she said in an interview with Apple Music in November 2022. “But now, 20 years later, it does have a happy ending.” – Reuters

Blinken wraps up Mideast trip with Gaza deal still elusive

US Secretary of State Antony Blinken. Official White House — CAMERON SMITH VIA FLICKR

 – US Secretary of State Antony Blinken sought during a whirlwind trip to the Middle East to inject urgency into efforts to broker a Gaza ceasefire deal, but departed the region on Tuesday with an agreement between Israel and Hamas still elusive.

Mr. Blinken and mediators from Egypt and Qatar have pinned their hopes on a US “bridging proposal” aimed at narrowing the gaps between the two sides in the 10-month-old war, after negotiations last week paused without a breakthrough.

The deal “needs to get done, and it needs to get done in the days ahead, and we will do everything possible to get it across the finish line,” Mr. Blinken told reporters in Doha before departing for Washington.

A senior Biden administration official travelling with Mr. Blinken said the US expects the ceasefire talks to continue this week.

Mr. Blinken travelled to Egypt for talks on Tuesday with President Abdel-Fattah El-Sisi and then to Qatar.

After meeting with Prime Minister Benjamin Netanyahu on Monday, Mr. Blinken said Israel had accepted the proposal and urged Hamas to do the same. The Palestinian group has not explicitly rejected it, but says it overturns previously agreed terms.

Mr. Blinken was asked in Qatar about Israeli troop withdrawal terms within the ceasefire framework and about an Axios report that quoted Netanyahu as saying he may have convinced Blinken that Israel should keep troops in the Philadelphi Corridor between Egypt and Gaza.

“The United States does not accept any long-term occupation of Gaza by Israel,” Mr. Blinken said. “More specifically, the agreement is very clear on the schedule and the locations of (Israel Defense Forces) withdrawals from Gaza, and Israel has agreed to that. So that’s as much as I know. That’s what I’m very clear about.”

Mr. Blinken did not comment directly on the Axios reporta post on social media site XNetanyahu’s office did not respond to a request for comment.

Both Hamas and Egypt oppose Israel keeping troops in the Philadelphi Corridor, but Netanyahu has insisted they are needed to stop weapons being smuggled into Gaza. A senior US official disputed the Axios report earlier on Tuesday.

Egyptian security sources said the US has proposed an international presence in the Philadelphi Corridor area, a suggestion the sources said could be acceptable to Cairo if limited to a maximum of six months.

“The ceasefire in Gaza must be the beginning of broader international recognition of the Palestinian state and the implementation of the two-state solution, as this is the basic guarantor of stability in the region,” Mr. Sisi said after meeting Mr. Blinken.

 

‘LAST OPPORTUNITY’

At stake in the talks is the fate of tiny, crowded Gaza, where Israel’s military campaign has killed more than 40,000 people since October according to Palestinian health authorities, and of the remaining hostages being held there.

The war in Gaza began on Oct. 7, when Hamas gunmen stormed into Israeli communities and military bases, killing around 1,200 people and abducting about 250 hostages, according to Israeli tallies.

Mr. Blinken has called the latest push for a deal “probably the best, possibly the last opportunity”, and said his meeting with Mr. Netanyahu was constructive. He said it was incumbent on Hamas to accept the bridging proposal.

Asked about Mr. Blinken’s comment, senior Hamas official Sami Abu Zuhri told Reuters: “Blinken is insisting on not quitting the sphere of lies, and that is one of the reasons for the failure of efforts to reach an agreement.”

Qatar’s foreign minister told Mr. Blinken his country is committed to its role as a mediator in the ceasefire talks, along with Egypt and the US

In a phone call, Sheikh Mohammed bin Abdulrahman Al Thani stressed to Mr. Blinken the importance of consolidating regional and international efforts to reach a Gaza ceasefire and a hostage-prisoner swap deal, Qatar’s foreign ministry said.

Both men underscored that the bridging proposal presented by negotiators addressed the remaining gaps in a manner that allows for swift implementation of the deal, US State Department deputy spokesperson Vedant Patel in a statement.

Officials from the US, Hamas, Israel, Egypt and Qatar have not spelled out what is in the proposal or how it differs from previous versions.

Hamas accuses Israel of obstructing an agreement with new demands and says the group remains committed to terms it agreed with mediators in July based on a proposal made by the US in May. Netanyahu denies obstructing a deal.

Months of on-off talks have circled the same issues, with Israel saying the war can only end with the destruction of Hamas as a military and political force and Hamas saying it will only accept a permanent, not temporary, ceasefire.

The US official said even if Hamas were to agree on the bridging proposal immediately, there would have to be additional conversations to iron out details on implementation of the deal.

 

HOSTAGES RECOVERED

On Tuesday, Israel’s military said it had recovered the bodies of six hostages from southern Gaza. According to Israeli authorities, 109 hostages now remain in the Palestinian territory, around a third of them believed to be dead.

In Gaza, Israeli forces battled Hamas-led militants in central and southern areas on Tuesday, and Palestinian health authorities said at least 39 people had been killed in Israeli strikes, including on a school housing displaced people.

Israel’s military said it had struck Hamas militants embedded in the school. – Reuters

Australia approves $13.5 bln project to export solar power to Singapore

FREEPIK

 – Australia said on Wednesday it had given the go-ahead for a A$20 billion ($13.5 billion) solar project that plans to ship energy from a giant solar farm in the country’s north to Singapore through a 4,300 km (2,672 miles) undersea cable.

Environment Minister Tanya Plibersek said SunCable’s flagship Australia-Asia power link project would help meet growing demand for renewable energy at home and abroad.

A final investment decision is expected in 2027 with electricity supply to begin in the early 2030s, according to SunCable.

The approval comes with strict conditions to protect nature and the project must avoid the habitat of greater bilby, which are small rabbit-like marsupials with long floppy ears, Plibersek said.

Over two stages of development, the project aims to deliver up to 6 gigawatts of green electricity to large-scale industrial customers in Darwin, the capital city of Australia’s Northern Territory, and in Singapore.

The approval comes as the center-left government ramps up renewable energy projects even as the opposition coalition proposes building nuclear plants to replace coal-fired power by 2050, in a country where nuclear power is currently banned.

SunCable, owned by billionaire Mike Cannon-Brookes, said the approval was “a vote of confidence” in the project.

Cannon-Brookes, the co-founder of tech firm Atlassian TEAM.O turned environmental activist, last year said the project was viable and that outside investors would be drawn to the project.

“SunCable will now focus its efforts on the next stage of planning to advance the project towards a final investment decision targeted by 2027,” SunCable Australia Managing Director Cameron Garnsworthy said in a statement, which did not provide details of its financing plans.

SunCable said it was in talks with Singapore’s energy regulator on the conditional approval for the project’s cable inter-connector component and with the Indonesian government on building the cable in its waters.

The project received clearance from the Northern Territory government and the territory’s environment watchdog last month. – Reuters

Philippines says probing escape of ex-mayor accused of Chinese crime links

PHILIPPINE STAR/JESSE BUSTOS

 – Philippine President Ferdinand Marcos Jr said on Wednesday his government was investigating how Alice Guo, a former town mayor accused of ties with Chinese criminal syndicates, managed to flee the country.

Mr. Marcos warned that “heads will roll” a day after he ordered Guo’s Philippine passport cancelled following her escape which was confirmed based on foreign immigration records.

“We will expose the culprits who have betrayed the people’s trust and aided in her flight,” Mr. Marcos said in a statement. “Those responsible will be suspended and will be held accountable to the fullest extent of the law.”

Ms. Guo, wanted by the Senate for refusing to attend hearings on her alleged criminal ties, denies the accusations, insisting she is a natural-born Philippine citizen facing “malicious accusations.”

The Senate investigation began in May after authorities raided a casino in Guo’s sleepy farming town of Bamban in March, uncovering what authorities said were scams perpetrated from a facility built on land partially owned by the former mayor.

Ms. Guo was recently removed from office by the Ombudsman for grave misconduct.

A spokesperson for the Presidential Anti-Organized Crime Commission said Ms. Guo travelled to Malaysia, Singapore last month and in Indonesia this month using her Philippine passport.

An Indonesian immigration official who declined to be named because he is not authorized to speak to the media confirmed that Ms. Guo entered the country on Aug. 18 at 1:13 pm [0513 GMT]. The official did not immediately respond when asked if Ms. Guo was still in Indonesia.

However, her lawyer Stephen David said Ms. Guo remains in the Philippines, without providing further details.

Ms. Guo’s case comes at a time of growing Philippine suspicion about China’s activities following an increasingly tense dispute over reefs and shoals in the busy waterway of the South China Sea, where both nations have overlapping claims. – Reuters

Philippines says recent mpox case is mild Clade 2 variant

AN ILLUSTRATION of mpox virus particles. — FRED HUTCH CANCER CENTER/HANDOUT VIA REUTERS

 – The Philippines‘ health minister said on Wednesday a recently detected mpox case in the Southeast Asian nation is of the mild Clade 2 variant and not the newer variant that has spread rapidly in Africa.

“The mpox we found was the original variety and probably it could have been circulating in our community,” Health Secretary Teodoro Herbosa told ANC news channel.

The Southeast Asian nation on Monday announced its first mpox case this year. The Philippines has now had 10 laboratory-confirmed case since July 2022.

The patient, a 33-year-old Filipino male who had no travel history outside the Philippines, is recovering in hospital, Mr. Herbosa said, adding that all nine previously infected Filipinos had also recovered.

The World Health Organization last week declared mpox a global public health emergency, its highest form of alert, for the second time in two years, because of an outbreak in the Democratic Republic of Congo that had spread to neighboring countries.

The disease, caused by the monkeypox virus, leads to flu-like symptoms and pus-filled lesions. It is usually mild but can kill, with children, pregnant women and people with weakened immune systems, such as those with HIV, all at higher risk of complications. – Reuters

Salmon redefines banking with Rural Bank of Sta. Rosa (Laguna)’s digitalization

Photo shows Salmon Co-Founder and Rural Bank of Sta. Rosa (Laguna) Chairperson Raffy Montemayor sharing democratizing access to credit and financial products and services, and its start-up strategy for rural banking in the Philippines during Salmon’s 2nd anniversary.

Salmon is redefining rural banking by spearheading the digital transformation of Rural Bank of Sta. Rosa (Laguna) to elevate the customer experience.

Salmon Co-Founder and Rural Bank of Sta. Rosa (Laguna) Chairperson Raffy Montemayor stated that the bank’s digital transformation is a cornerstone of its disruptive startup strategy, designed to enhance customer experience and solidify brand trust within the banking sector.

“Digitalization is essential for developing innovative bank products and services that enhance customer experience and expand our reach beyond traditional branches,” Mr. Montemayor said.

Mr. Montemayor also revealed that the Rural Bank of Sta. Rosa (Laguna) is currently developing a mobile banking app, which it hopes to launch this year subject to BSP approval.

“We aim to simplify banking for our depositors by incorporating the AI-powered features of the Salmon app, creating a seamless and convenient user experience,” he said. 

He reiterated that the digitalization of the Rural Bank of Sta. Rosa (Laguna) will reinforce Salmon’s commitment to creating a robust, market-leading consumer fintech ecosystem within the Philippines.

Salmon injected fresh capital to make the Rural Bank of Sta. Rosa (Laguna) a stable financial institution that attracts notable investors such as the International Finance Corp. (IFC), Singapore-based venture capital fund manager NorthStar Group, and Abu Dhabi’s sovereign wealth fund ADQ. The latest investment Salmon received was $7 million from IFC last May.

The investment of Salmon into the Rural Bank of Sta. Rosa (Laguna) and the enhancements made led to the bank’s total deposits soaring by 439% to PHP440 million from PHP82 million, and its loans increasing by 648% to PHP400 million from PHP54 million as of the end of May 2024. 

Rural Bank of Sta. Rosa (Laguna) Offers High-Yield Time Deposits 

Rural Bank of Sta. Rosa (Laguna) is enticing depositors with competitive interest rates. For time deposits above PHP500,000, the bank offers a generous 8.88% interest rate, particularly beneficial for residents of Laguna and nearby provinces. Those with deposits ranging from PHP50,000 to PHP500,000 can enjoy a 6% interest rate for a 12-month term.

To open a time deposit account or inquire about the offer, customers can visit or contact the following branches:

Head Office: F. Gomez St., Poblacion, Barangay Malusak, City of Sta. Rosa, Laguna; contact Edward Dela Cruz at (049) 534-1126 or 0997-952-7783.

Bacoor Branch: Evangelista Street, Barangay Daang Bukid, Bacoor, Cavite; contact Arthur Castor at (046) 434-6197 or 0955-861-7848.

 


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‘BSP has room for 2 more rate cuts’

The Philippine economy grew by 6.3% in the second quarter, faster than 5.8% in the previous quarter and 4.3% a year ago. — PHILIPPINE STAR/RUSSEL PALMA

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) may have room for two more rate cuts this year, Metropolitan Bank & Trust Co. (Metrobank) said.

“For now, we are holding on to our ‘2+1’ rate cut call (two cuts with a possibility of a third cut) for 2024, with up to 75 basis points (bps) worth of easing slated for early 2025,” Metrobank Chief Economist Nicholas Antonio T. Mapa said in a report.

“The main argument for rates to slip to 5% by mid-2025 lies in the outlook for growth and inflation,” he added.

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%.  This was the first time that the central bank cut rates in nearly four years. 

BSP Governor Eli M. Remolona, Jr. had also signaled the possibility of a 25-bp cut in the fourth quarter. The Monetary Board’s remaining meetings this year are on Oct. 17 and Dec. 19.

Metrobank expects the central bank to implement a “modest” easing cycle.

“Given the BSP’s forecasts pointing to inflation remaining within target all the way through to 2026, we believe that BSP has the price stability objective in hand for the moment,” Mr. Mapa said.

The BSP expects inflation to average 3.4% this year, 3.1% in 2025, and 3.2% in 2026. This would put full-year inflation settling within the central bank’s 2-4% target until 2026.

For his part, GlobalSource Partners country analyst and former BSP Deputy Governor Diwa C. Guinigundo said that the BSP’s inflation outlook supports further easing.

“This gives the BSP room to maneuver into a less restrictive monetary stance, lower cost of borrowing and stimulate credit and business activities,” he said in a Viber message.

“If between now and the next two meetings of the BSP for the rest of the year nothing changes in the balance of risks, there could be space for another rate cut and more in 2025.”

Mr. Mapa noted that the Monetary Board’s decision to cut rates also took economic growth into account.

“The move suggests that rates are not at ‘normal’ levels and that the restrictive stance would impose a toll on economic growth if kept at elevated levels for much longer,” he said.

Mr. Remolona had earlier said that the previous 6.5% key rate was “tight.”

“Tight policy rates may have been imperative when inflation was well-above the target, but with inflation on the downtrend, it appeared that tight policy was no longer the right prescription for a growing economy,” Mr. Mapa said.

The Philippine economy expanded by 6.3% in the second quarter, faster than 5.8% in the previous quarter and 4.3% a year ago. On a seasonally adjusted quarter-on-quarter basis, gross domestic product (GDP) expanded by 0.5%, slowing from 1.1% in the first quarter.

“Barring any supply-side shocks, the BSP appears to have more than enough room to engineer a ‘soft takeoff’ for the Philippine investment sector, which for the most part has been operating at a very measured pace,” Mr. Mapa said.

“The latest GDP growth numbers plus the BSP’s own forecasts pointing to growth staying below 6% this year and the next suggest that the BSP does have scope to ease off the brake pedal and shift to the accelerator at a ‘measured pace.’”

Meanwhile, Mr. Mapa said the BSP may continue its easing cycle once the Fed begins cutting rates.

“If inflation remains well-behaved, the Fed proceeds with three rate cuts and growth remains constrained, we could see BSP cutting rates by another 50 bps before the end of the year.”

However, Mr. Guinigundo said that the BSP must still be wary of the Fed’s moves.

“I would rather have the BSP shift to a less restrictive monetary policy after the US Fed’s expected easing,” he said.

“This would help mitigate the risk of capital outflow should the interest rate differential moves in favor of dollar-denominated assets. Additional price pressures might be triggered by a weak peso.”

The focus this week will be on Federal Reserve Chair Jerome H. Powell’s speech in Jackson Hole as investors look for cues on whether the Fed will start with a 25-bp or 50-bp cut in September.

“I do maintain that patience continues to be relevant in future monetary policy discussion because the real sector remains robust and the labor market generally firm,” Mr. Guinigundo said.

“The tight monetary policy has succeeded in stabilizing inflation without dislodging the anchors of economic growth,” he added.

PHL stock market seen to get much-needed lift from BSP easing cycle

BW FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

FURTHER RATE CUTS by the Bangko Sentral ng Pilipinas (BSP) are expected to give the Philippine stock market a much-needed boost, analysts said.

The Philippine Stock Exchange index (PSEi) has been flirting with the 7,000 level since the BSP began its easing cycle with a 25-basis-point (bp) rate cut on Aug. 15.

“The dovish shift in monetary policy should bode well for the stock market. Lower interest rates mean lower borrowing costs and improved equity valuations,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet told BusinessWorld in a Viber message.

“Better market performance, a stable exchange rate, and sustained economic growth due to well-calibrated rate cuts would also help attract foreign fund flows that can significantly lift trading volumes,” he added.

First Metro Investment Corp. Head of Research Cristina S. Ulang said the PSEi is “already within striking distance” of the 7,000 level following the BSP rate cut.

The PSEi on Tuesday closed higher for a third day in a row, ending the day up by 0.79% or 54.89 points to 6,944.76. It reached as high as 7,005.27 during the session.

The Monetary Board last Thursday delivered a 25-bp rate cut, bringing the benchmark rate to 6.25% from the over 17-year high of 6.5%. This was the first time the BSP reduced rates since November 2020.

BSP Governor Eli M. Remolona, Jr. has said there is room for another rate cut, possibly by 25 bps, in the fourth quarter.

Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message that he expects the PSEi rising above the 7,000 level before yearend, “reflecting growing investor confidence and market strength.”

“The Philippine market is likely to see a generally positive trend in the remaining months of 2024, driven by the expected rate cuts from the BSP and Federal Reserve. These cuts should enhance liquidity and lower borrowing costs, which could stimulate economic growth and boost corporate earnings,” he said.

Mr. Santarina said there may be increased market volatility following the rate cuts. 

“Volatility may increase in response to the rate cuts as markets adjust to the new monetary policy environment,” he said. “Initially, we might see a spike in trading volumes as investors react to the news and reposition their portfolios, seeking higher returns in equities over fixed income.”

SECTORS TO BENEFIT
Property firms and real estate investment trusts (REITs), as well as consumer goods companies, are among those that will benefit from the central bank’s rate cuts, analysts said.

“The rate cuts will bode well for REITs, banks, and consumer-related stocks,” Ms. Ulang said in a Viber message.

Mr. Santarina said that consumer-related stocks may also get a lift as household spending is likely to pick up ahead of the holiday season.

“Specific sectors that are likely to benefit from the rate cuts include consumer discretionary, real estate, and financials. Consumer discretionary sectors could see a boost from increased consumer spending, as lower interest rates make financing more accessible,” he said.

Meanwhile, COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said she maintains a cautiously optimistic stock market outlook for the rest of the year as high inflation may further dampen consumer spending.

“Lower rates are good, but a bigger factor would be earnings. If corporate earnings continue to be affected by consumers that are still recovering from high prices, then it will be difficult to expect a continuous increase in share prices,” she said in a Viber message.

Household consumption, which accounts for about three-fourths of the economy, slowed to 4.6% in the second quarter from 5.5% a year ago, reflecting the impact of elevated inflation and high interest rates.

Ms. Tan said there is also the risk of a possible recession in the United States.

“Also, at this point there is still a risk that the US will suffer from a recession and a bear market. Historically, we always suffered from a contagion when this happens,” she added.

Mr. Colet flagged other risks such as geopolitical tensions, a potential economic slowdown, and natural calamities.

Women representation on boards of listed companies should be mandatory — PBCWE

REGULATORS should make it mandatory for publicly listed companies in the country to have women representation on their boards, according to the Philippine Business Coalition for Women Empowerment (PBCWE). 

“In my view, make it mandatory but not penalize them (listed firms) immediately. Give them time to comply,” PBCWE Governing Council Chairperson Ma. Aurora D. Geotina-Garcia said on the sidelines of the launch of the “Census on Women in Leadership Roles in Philippine Publicly Listed Companies” report in Makati City on Tuesday.   

“Eventually, it becomes part of the DNA that they will consciously and intentionally say that when we start looking for board members, we should also deliberately have a goal of women’s representation,” she added.   

The new report showed female chief executive officers (CEOs) accounted for 13% of Philippine listed companies in 2022 from 12% in 2021 and 10% in 2020.

Majority of the female CEOs are from the services sector, followed by the industrial sector and the property sector.

The percentage of females on the boards of directors of listed firms reached 21% in 2022 from 19% in 2021 and 18% in 2020.   

Ms. Garcia said the ideal representation of women across the boards of listed companies should be around 30%.

“We have countries who’ve actually imposed quotas including Malaysia, France, and many of the Scandinavian countries. If you impose quotas, there’s more compelling reason for companies to deliberately and intentionally recruit females,” she said.

Ms. Garcia said the Securities and Exchange Commission (SEC) should spearhead the proposal on mandatory women representation, with support from the Philippine Stock Exchange (PSE).

“It should be the SEC because this is regulatory. Although, it should work together with the PSE because the PSE also is part of the decision process of who is going to be listed. I would be happy to see if one of their considerations for the company applying for listing is its diversity and inclusion policies,” she said.

The report also showed that women comprise 40% of executive leadership teams in Philippine listed companies in 2022.

“While there has been progress, many women in executive leadership teams continue to occupy functional or support roles. However, the data indicate an improvement in the representation of women in line or operational roles, which are critical for career advancement to top leadership positions,” the report said.

The report also noted only 2% of large companies and none of the small- and medium-sized firms have set specific gender diversity targets.

“Most (publicly listed companies) have broad diversity policies; however, these need to be complemented by concrete targets in order to be measured and ultimately achieved,” the report said.

The study was done by the PBCWE in partnership with WR Numero Research and supported by Investing in Women and the SEC. The data collection period was from Aug. 15 to Sept. 15 last year.

Meanwhile, SEC Commissioner Javey Paul D. Francisco said sustainability reporting is a tool that can be used by listed firms to disclose women representation in boards, establish inclusivity benchmarks, and track progress on their development.

“It’s evident that women remain under-represented in executive leadership teams and boards and we still have a long way to go,” he said in his keynote speech at the launch event.

Mr. Francisco added that the SEC has introduced guidelines on the issuance of social bonds under the ASEAN Social Bond Standards in the Philippines.

“This allows investors to direct their capital to eligible social projects, including gender bonds, which expand financial opportunities for women, support women-led businesses, and enhance women’s financial inclusion,” he said.

“It’s clear that our journey towards gender equality is far from over. Our vision is a future where gender equality is a given; where it is not just a matter of social justice but rather a strategic necessity and a smart business move leading to greater employee retention, enhanced creativity, and overall better business outcomes,” he added. — Revin Mikhael D. Ochave

Inclusive growth key to lower poverty incidence — Balisacan

Informal settlers go about their daily routine in Binondo, Manila, April 23, 2024 — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINE GOVERNMENT is banking on increased investments in the manufacturing and services sectors to make growth more inclusive and lift more Filipinos out of poverty by 2028, the National Economic and Development Authority (NEDA) said.

“Inequality of opportunities is what we want to reduce — whether that inequality is in the form of access to education, health, wealth, credit, technology,” NEDA Secretary Arsenio M. Balisacan told BusinessWorld last week.

The country’s poverty rate fell to 15.5% in 2023 from 18.1% in 2021, the Philippine Statistics Authority (PSA) said. The number of poor Filipinos declined by 12.26% to 17.54 million in 2023 from 19.99 million in 2021.

The government is aiming to reduce poverty incidence to 9% by 2028 or the end of the Marcos administration.

To be able to achieve this target, a total of seven million Filipinos must be lifted out of poverty in the next four years, or 1.75 million annually, NEDA said.

This would be possible if economic growth in the next few years is sustained and inclusive, Mr. Balisacan said.

The Philippine economy is expected to grow by 6-7% this year and 6.5-7.5% next year. It also expects gross domestic product (GDP) growth at 6.5-8% from 2026 to 2028.

“When we say more inclusive, technically, it means the Gini (coefficient) ratio will fall or will at least remain the same… If it will increase, it weakens the impact of economic growth,” Mr. Balisacan said.

The Gini coefficient, which measures how unevenly distributed a country’s annual income is, fell to 0.3909 in 2023 from 0.4063 in 2021. A Gini coefficient reading of “0” suggests perfect equality, while “1” denotes perfect inequality.

Mr. Balisacan also highlighted the need for the “structural transformation of the economy” by increasing the value of high productivity sectors such as manufacturing, services, and tourism.

“If you can infuse even more dynamism into the services sector, this is where the people will go,” he said.

As an example, integrating the medical technology sector with the business process outsourcing (BPO) industry could also help create more job opportunities, Mr. Balisacan said.

“Since we’re a global supplier of nurses and doctors, and if we can get the medtech (medical technology) industry here in conjunction with a strong BPO, you can have a very strong pillar of poverty reduction and economic growth,” he said.

‘UNREALISTIC’ THRESHOLD
Meanwhile, IBON Foundation Executive Director Jose Enrique A. Africa said the improved poverty rate is not the result of the creation of more productive and high-paying jobs.

“It is for instance striking that job creation accompanying recent supposedly rapid economic growth is mostly in low-paying and low-productivity sectors that are notorious for informality,” he said in a Viber message.

Mr. Africa also noted that the poverty threshold used by the PSA remains “low and unrealistic,” and was likely offset by the expansion of social protection or ayuda programs.

The poverty threshold or the minimum income needed to meet the basic food and nonfood requirements of a family of five is currently at P13,873 per month, PSA data showed.

The food threshold or the minimum income needed by a family of five to meet their monthly basic food needs was at P9,581 or about P64 per person per day.

Ateneo de Manila University economics professor Leonardo A. Lanzona said that people who are considered above the poverty threshold but receive government subsidies are still vulnerable to economic shocks.

“We have this huge category of nonpoor people hovering just above the threshold. Because of this, any economic shock such as high inflation or COVID-19 (coronavirus disease 2019) can result in substantial increases again in poverty, making it very difficult to reduce poverty permanently to single-digit levels,” he said in a Facebook Messenger chat.

The government must focus on developing the domestic agriculture and industry sectors to ensure “truly sustainable and inclusive” growth, Mr. Africa said.

Last week, Mr. Balisacan defended the use of these poverty and food thresholds, saying these are metrics used to determine the inclusiveness of economic growth and effectiveness of policies.

“They are not, and were never intended to be, prescribed budgets for a decent standard of living. They do not dictate how much a family should spend on food, nor do they provide an idea of a desirable household budget,” he said in a statement.

Energy projects set for boost from rate cut — analysts

FREEPIK

By Sheldeen Joy Talavera, Reporter

THE RECENT interest rate cut is expected to boost both existing and new energy projects, especially renewable energy projects that require substantial funding, analysts said.

“The rate cut reduces borrowing costs, making it cheaper for companies to finance large projects like energy projects,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

He said that cheaper credit should encourage more investment in the energy sector and that developers may be more likely to pursue new projects or expand existing ones as the lower cost of capital improves the return on investment.

Reduced interest rates could also accelerate the country’s energy transition goal by encouraging the development of new renewable energy capacities, Seedbox Securities, Inc. Equity Trader Jayniel Carl S. Manuel said.

“The rate cut is a step in the right direction, providing a more conducive environment for sustainable energy development,” he said.

The Philippine government has set an ambitious goal of increasing the share of renewable energy in the country’s power generation mix to 35% by 2030 and 50% by 2040.

“This is especially true for renewable energy like wind, solar, or hydropower, as these require substantial upfront investments. Lower interest rates make these projects more financially viable,” Mr. Vistan said.

The Bangko Sentral ng Pilipinas (BSP) cut policy rates last week for the first time since November 2020, driven by the improving inflation outlook. The Monetary Board implemented a 25-bp rate cut, lowering the benchmark rate to 6.25% from the over 17-year high of 6.5%.

Despite the accelerated inflation, BSP Governor Eli M. Remolona, Jr. said that inflation is expected to trend downward to within the government’s target range of 2% to 4%.

Juan Paolo E. Colet, managing director at Chinabank Capital Corp., said that lower financing costs should improve “the economics of renewable energy projects and encourage expansion in the sector.”

“For operating energy companies, lower borrowing costs will improve their profit margins (assuming other costs remain constant). The hope is that the interest rate savings are passed on to the consumers via lower power rates,” he said in a Viber message.

April Lynn C. Lee-Tan, chief equity strategist at COL Financial Group, said in a Viber message that lower rates will make it cheaper for companies to borrow over the longer term.

“If it encourages more power projects, then we can enjoy lower power costs,” she said.

The Department of Energy (DoE) is expecting at least 4,164.92 megawatts (MW) of conventional and renewable energy projects to come online this year. As of April, 161.20 MW of the committed projects are in full commercial operation, while 835.89 MW are under the testing and commissioning stage.

“These additional capacities will strengthen the reliability and stability of the grid, providing much-needed capacity to meet the growing energy demand in the country,” the DoE said in a statement in April.

“The anticipated increase in capacity will prevent supply deficiencies and potential power interruptions, particularly during peak demand periods,” it added.

Meralco proceeding with 1,000-MW bid

MANILA Electric Co. (Meralco) will proceed with the bidding process for its 1,000-megawatt (MW) power supply requirement after the dismissal of an injunction petition, the power distributor said on Tuesday.

The Taguig Regional Trial Court (RTC) dismissed the petition and deemed the 20-day temporary restraining order (TRO) as “without force and effect,” Meralco said in a statement.

“This allows us to continue our efforts to secure our power supply requirements in the least-cost manner, consistent with our mandate,” the power distributor said.

“We will now resume the bidding procedures for both 600 MW and 400 MW…, for which new bid bulletins will be issued, particularly with respect to the timelines,” it added.

Last month, the Taguig RTC issued a TRO stopping Meralco from proceeding with its bidding processes for additional power supply of 600 MW and 400 MW.

Members of the Malampaya consortium — Prime Energy Resources Development B.V., Prime Oil & Gas, Inc., UC38 LLC, and PNOC Exploration Corp. — sought the restraining order, saying the bid terms violate the preference given to indigenous natural gas under the law.

“There exists an extreme urgent necessity for the writ as to warrant the issuance of a temporary restraining order to prevent further damages to the plaintiffs’ interests, the government, and the environment,” according to an order promulgated on July 31.

The TRO was extended to 20 days from three days.

“The court finds merit in the urgent motion to dismiss the complaint for injunction of plaintiffs,” the order dated Aug. 17 read.

“Relative thereto, the temporary restraining order the court issued on August 2, 2024, is hereby rendered without force and effect,” it added.

Meralco said that all competitive selection processes (CSPs) for its supply requirements “are strictly conducted in accordance with existing rules of the Department of Energy and the Energy Regulatory Commission, which have the primary jurisdiction over the CSPs.”

In June, Meralco invited bids for contract capacities of 600-MW baseload and 400-MW mid-merit supply, which are set to take effect in August 2025.

Eight companies expressed interest and participated in the pre-bid conference last month for Meralco’s 600-MW supply.

These are First Gas Power Corp. and First NatGas Power Corp. of First Gen Corp.; Mariveles Power Generation Corp. and Masinloc Power Co. Ltd. of San Miguel Global Power Holdings Corp.; GNPower Dinginin Ltd. Co. and Therma Luzon, Inc. of Aboitiz Power Corp.; Southwest Luzon Power Generation Corp. of Semirara Mining and Power Corp.; and Quezon Power (Philippines) Ltd Co.

The distribution utility moved the bid submission deadline from Aug. 2 to Aug. 27. It has yet to issue the updated schedule for the bidding process for the 400-MW capacity.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera