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Arts & Culture (08/14/24)


MSO takes on Brahms, Tchaikovsky, Puccini

THE MANILA Symphony Orchestra (MSO), under the baton of Marlon Chen, will perform at the Ayala Museum in Makati on Aug. 24. The upcoming concert will feature their takes on Tchaikovsky’s emotive Pathétique Symphony (Symphony No. 6), Puccini’s dramatic interlude Preludio Sinfonico, and the Brahms Violin Concerto. Playing with the orchestra are award-winning young violinist and Juilliard Scholar Jeanne Rafaella Marquez as guest violinist and violinist Justin Texon as guest concertmaster. Brahms Violin Concerto and Tchaikovsky 6 is part of the In Pursuit of Excellence 2024-2025: MSO Concert Series presented by the MSO Foundation and Standard Insurance. The concert will start at 7:30 p.m. on Aug. 24 at the Ayala Museum, Makati City. General Admission tickets are priced at P2,000. Seating will be on a first-come first-served basis. Tickets are now available at Ticket2Me.


Ateneo launches Bicol language book

THE ATENEO Modern Languages Department, in collaboration with the Ateneo de Naga University Press, the Ateneo de Manila University Press, and the Ateneo School of Humanities, will be launching a book on the vocabulary of the Bicol language. Translated from Spanish to English by Evelyn Caldera Soriano, Vocabularia de la Lengua Bicol will have its launch on Aug. 15 at 2 p.m. The event is open to all and will take place at Faber Hall 101 in Ateneo de Manila University, Loyola Heights, Quezon City.


UP alumni artists to hold exhibit

“DIVERSITY: The Second Exhibit” will be the second major art exhibit of the University of the Philippines (UP) College of Fine Arts Alumni Association, Inc. Its launch is set for Aug. 14 at 4:30 p.m. at the Bahay ng Alumni, UP Diliman Campus, Quezon City. There will be 39 UP alumni artists contributing their works to the show, including Jun Yee, Toym Imao, Gigi Javier Alfonso, Gig de Pio, Mitzi Reyes, Benjie Cabangis, Rico Lascano, Paul Quiaño, and Jingjing Villanueva Romero. The art exhibit will be open to the public until Aug. 31. Proceeds from the event will help fund educational programs and projects of the UP College of Fine Arts’ alumni association.


Kiddie show marks PHL-Korean friendship

TO celebrate 75 years of friendship between Korea and the Philippines in August, the Forest Music Band, Dung Dda Koong, will present a children’s play at the Tanghalang Ignacio Gimenez at the Cultural Center of the Philippines (CCP) Complex in Pasay City. This interactive performance on Aug. 18 features four traditional Korean musical instruments: the haegeum, gayageum, geomungo, and ajaeng. The story revolves around six animal friends preparing for Tiger’s birthday party. The show is meant for children ages three and up. Seats are free but limited, with guidelines for ticket reservations to be announced soon.


Cloverleaf Estate introduces public art program

THE CLOVERLEAF Colorfest, a community mural painting event held on Aug. 10, served as the launch of a series of art initiatives by the Cloverleaf Estate. Titled “Splashing Stories Together,” the activity welcomed the artists of Bando Arts, in partnership with Dutch Boy, to create a community mural painting. Residents and the neighboring community got a chance to contribute to the shared art piece.


3rd installment of ‘Appassionata’ opens at Leon Gallery

A CONTINUATION of a series of art exhibitions, the third installment of “Appassionata” presents the works of five artists, showcasing the diversity of their art without constraining their creativity. These are Rosario Bitanga, Imelda Capije Endaya, Lenore RS Lim, Susan Fetalvero Roces, and Maria Victoria Rufino. Titled “Appassionata 3,” the exhibition will be held from Sept. 4 to 15 at Leon Gallery International, on the ground floor of the Corinthian Plaza, Paseo de Roxas cor. Gamboa St., Legaspi Village, Makati City.


Comic cover celebrates jeepney-inspired Autobot

FOR this year’s SuperManila Comic Con, happening Sept. 7 to 8, Transformers fans can expect the exclusive release of the Transformers #140th Anniversary Edition featuring a limited edition Philippine variant cover. Illustrated by up-and-coming Filipino comic artist Von Randal with color by Ellery Santos and Rex Espino, the cover art depicts Optimus Prime and Hound in the process of transforming. Optimus Prime can be seen converting into his iconic red truck form while Hound transforms into a green Pinoy jeepney, complete with chrome stallions as hood ornaments, a prominent Manila label, and route signage for Cubao and Welcome Rotonda. The comic cover pays homage to the enduring popularity of Transformers in the Philippines and the jeepney’s unique place in the country’s history and culture. With only 1,000 copies available, the collector’s piece will be available only at SuperManila Comic Con, with tickets now available at http://www.supermanila.ph/

Cebu Landmasters’ income hits P1.7B on project progress, hotel and leasing gains

LISTED property developer Cebu Landmasters, Inc. (CLI) saw a 24% increase in its first-half attributable net income to P1.7 billion from P1.37 billion last year, following developments across the company’s business segments. 

First-half revenue increased by 24% to P11.31 billion from P9.15 billion a year ago, led by “progress across all segments,” CLI said in a stock exchange disclosure on Tuesday. 

“This is driven by ongoing construction progress, a substantial rise in hotel and leasing revenues, an increase in new units qualifying for revenue recognition, and a one-off lot sale,” CLI said. 

CLI said its hotel revenue received a boost from the opening of lyf Cebu City, which has 159 rooms, and The Pad Co-Living, which has 156 rooms. The company expects additional revenue with the opening of the 200-room Citadines Bacolod City. 

The company’s leasing business grew by 42%, led by a higher gross leasable area, now at 40,575 square meters. The growth followed the turnover of new retail areas such as the new wing of Base Line Center, 38 Park Avenue Retail, and Banilad High Street. 

CLI launched four new residential projects worth P8.3 billion, consisting of Tower 6 of The East Village in Davao, Tower 5 of Casa Mira Towers Palawan, Casa Mira Homes Butuan, and Velmiro Heights Davao.

Reservation sales rose by 10% to P11.6 billion, with 48% coming from Davao projects.

“There has been steady demand for our residential projects, as shown by the fast market absorption of our newly launched developments,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said. 

“Demand continues to outweigh supply in the Visayas and Mindanao regions, with our projects selling out within days after market introduction, such as Velmiro Heights Davao, which fully sold out in practically less than two days after market introduction. This is a clear indicator that we are offering a compelling product priced competitively for the right market,” he added. 

To date, CLI has invested P6.76 billion in capital expenditures, with 67% allocated to project development and 19% to land acquisition. The company is currently finalizing negotiations for land acquisitions to support its strategic expansions into established and new markets.

CLI shares were unchanged at P2.60 apiece on Tuesday. — Revin Mikhael D. Ochave 

LANDBANK honors outstanding partners in countryside, national development

Finance Secretary and LANDBANK Chairman Ralph G. Recto (2nd from left), Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. (leftmost), and LANDBANK President and CEO Lynette V. Ortiz (center) confer the Ulirang Magsasaka Award to Deodany L. Cara (3rd from left) with his wife, Ma. Cecilia Cara (4th from left) during the LANDBANK 2024 MERIT Awards on Aug. 8, 2024 in Malate, Manila. Joining them are LANDBANK Directors Virginia N. Orogo (6th from left) and Nancy D. Irlanda (7th from left), together with Executive Vice President Ma. Celeste A. Burgos (8th from left) and Vice-President Rolando G. Santos (rightmost).

Celebrating 61 years of serving the nation

Land Bank of the Philippines (LANDBANK) celebrated its 61st anniversary by recognizing its exceptional development partners in the delivery of essential financial and support services in local communities nationwide.

During an appreciation event held on Aug. 8, 2024 at LANDBANK Plaza in Manila, the Bank honored outstanding clients and partners across various sectors through the Models of Excellence Recognition Initiative for Top Bank Clients (MERIT) Awards.

“The success stories of our awardees mirror the potential of our nation. It illustrates how far we can progress when we commit to being each other’s steadfast partners in development,” said Finance Secretary and LANDBANK Chairman Ralph G. Recto in addressing the MERIT awardees.

Finance Secretary and LANDBANK Chairman Ralph G. Recto congratulates the MERIT awardees for their achievements and contributions to building a more resilient, inclusive, and sustainable economy.

“Your work and contributions send a powerful message — that we can put an end to poverty not by looking out only for ourselves, but by working hand in hand together,” he added.

The LANDBANK MERIT Awards recognized the Bank’s high-performing clients who have become models of operational excellence, which include cooperatives, micro, small and medium enterprises (MSMEs), corporations and large enterprises, countryside financial institutions (CFIs), microfinance institutions (MFIs), and individual farmers.

LANDBANK President and CEO Lynette V. Ortiz expressed appreciation to the MERIT awardees for their contributions to advancing agriculture, entrepreneurship, and financial inclusion, and reaffirmed the Bank’s commitment to helping them achieve their full potential.

“When our clients thrive, we thrive. Every achievement represents our shared success; each milestone is a reflection of the strength of our partnership. That’s why it is only fitting that we pay tribute to you — our dear clients and partners — for your steadfast support and invaluable contributions on this meaningful journey,” said LANDBANK President and CEO Ortiz.

LANDBANK President and CEO Lynette V. Ortiz expresses her gratitude to clients and partners for their continued trust and support for the Bank.

Finance Secretary Recto and LANDBANK President and CEO Ortiz were joined by Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr., LANDBANK Directors Virginia N. Orogo, Nancy D. Irlanda, and David D. Erro, and LANDBANK Executive Vice-President Ma. Celeste A. Burgos and Vice-President Rolando G. Santos in presenting the awards to 14 MERIT awardees.

Department of Finance (DoF) Undersecretary Maria Luwalhati C. Dorotan-Tiuseco, Department of Agriculture (DA) Undersecretary Atty. Asis G. Perez, Department of Labor and Employment (DoLE) Assistant Secretary Lennard Constantine C. Serrano, Cooperative Development Authority (CDA) Assistant Secretary Santiago S. Lim, Securities and Exchange Commission (SEC) Assistant Director Daisy B. Pabuaya, and Philippine Guarantee Corp. (PGC) Senior Vice-President Emmanuel R. Torres also graced the event.

Under the Gawad sa Pinakatanging Kooperatiba (Gawad PITAK), the Alicia Neighborhood Multi-Purpose Cooperative and Sorosoro Ibaba Development Cooperative were hailed as outstanding agri-based cooperatives in the medium and large categories, respectively. The Ating Ani Nueva Ecija Multipurpose Cooperative and Ligas Kooperatiba ng Bayan sa Pagpapaunlad were likewise honored for their outstanding contributions under the non-agricultural category.

The Gawad MSME was awarded to Fralyn B. Cruz and Sandig Medical Clinic and Hospital under the agri-based and non-agri-based sectors, respectively.

The Gawad Kaagapay was given to DoubleDragon Corp., Asialink Finance Corp., and Soliman E.C. Septic Tank Disposal for their contributions as corporations and large enterprises to growing the local economy.

ProFarmers Rural Banking Corp., Producers Savings Bank Corp., and ASA Philippines Foundation, Inc. were recognized with the Gawad PFI for their exceptional performance under the rural bank, thrift bank, and microfinance categories, respectively.

The Ulirang Magsasaka award was awarded to Deodany L. Cara, while Roderick G. Capalongan received a special citation for his innovative approach to integrated farming.

LANDBANK is celebrating its 61st anniversary this month, representing more than six decades of advancing development, inclusion, and sustainability in serving the nation.

LANDBANK is the largest development financial institution in the country promoting financial inclusion, digital transformation, and sustainable national development. Present in all 82 provinces in the country, the Bank is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.

 


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Ancient Pompeii reveals two more victims of eruption, with coins and jewelry

POMPEIISITES.ORG

ROME — Archaeologists in the ancient Roman city of Pompeii have discovered the remains of two more victims of the volcanic eruption almost 2,000 years ago, the site said on Monday.

The skeleton of a man and a woman were found in a small, makeshift bedroom in a villa which was being restructured when the eruption struck, the Pompeii archeological site said in a statement.

The woman was lying on a bed with gold, silver, and bronze coins around her, along with jewelry including gold and pearl earrings. The man lay at the foot of the bed.

The once-thriving city of Pompeii, near Naples, and the surrounding countryside was submerged by volcanic ash when Mount Vesuvius exploded in AD 79.

The eruption killed thousands of Romans who had no idea they were living beneath one of Europe’s biggest volcanoes which buried the city in a thick layer of ash, preserving many of its residents and buildings.

The latest victims discovered had chosen the small room as a refuge, waiting for the end of the rain of rock fragments which had blocked the door and prevented them from escaping.

They were eventually buried under the flow of lava and other boiling hot material from the volcano, the statement said.

“The opportunity to analyze the invaluable anthropological data on the two victims … allows us to recover a considerable amount of data on the daily life of ancient Pompeians,” site director Gabriel Zuchtriegel said.

Ancient Pompeii, rediscovered only in the 16th century, has in recent years seen a burst of archaeological activity aimed at halting decades of decay and neglect. — Reuters

PLDT Q2 profit down 9%, exits NTT Japan talks for data center sale

PHOTO FROM JGSUMMIT.COM.PH

PANGILINAN-LED PLDT Inc. saw a 9% decrease in its attributable net income for the second quarter (Q2), falling to P8.59 billion from last year’s P9.44 billion due to higher expenses for the period.

For the April-to-June period, the company registered a combined revenue of P53.36 billion, marking a 3.3% increase from P51.68 billion a year ago.

PLDT’s expenses for the second quarter climbed by 4.5% to P20.47 billion from P19.58 billion in the comparable period last year.

For the first half, the telecommunications company registered an attributable net income of P18.41 billion, lower by 0.21% from P18.45 billion previously despite posting higher revenues for the first six months of the year.

PLDT’s telco core income, which excludes the impact of asset sales and Maya Innovations Holdings, formerly Voyager Innovations Holdings, reached P18.01 billion, higher by 2.6% from P17.56 billion a year ago.

The company saw its gross revenue climb to P107.58 billion, higher by 3.4% compared with P104.04 billion previously.

Service revenues accounted for P103.44 billion of the company’s total revenues, marking an increase of 4.1% from last year’s P99.3 billion.

Broken down, its service revenues were driven by its individual wireless segment, which posted revenue of P41.9 billion, followed by home business revenues at P30 billion, and enterprise revenues at P24 billion.

To date, active data users stood at 40.5 million, PLDT said, adding that its mobile data traffic increased by 11% year on year to 2,641 petabytes.

“With the all-time highs delivered in recent periods behind us, we turn to the future that we are tasked to build for PLDT with careful optimism. As we continue our pursuit of higher shareholder values, our focus on exceptional service to our customers remains intense. We continue to be confident that, as before, we will make it through with the perseverance, dedication, and innovation of our people,” PLDT Chairman Manuel V. Pangilinan said.

Despite posting lower attributable net income, PLDT Senior Vice-President and Chief Financial Officer and Chief Risk Management Officer Danny Y. Yu said the company is still optimistic about hitting its target of mid-single-digit service revenue growth for the year.

DATA CENTER SALE
Further, PLDT hopes to conclude the sale of its data center business, ePLDT, Inc., to a new foreign entity by next year, Mr. Pangilinan said, adding that the offer of this new investor is more than $1 billion.

“I think if we were to proceed [with the sale] it is likely that we are going to sign with the new investor within a year or before the end. But this is likely to be subject to [review]. It is probably next year,” Mr. Pangilinan said.

“Well, I think the best way to describe this is that we are still in discussion with one particular potential investor for the data center,” he said.

Earlier, PLDT was in talks to sell up to 49% of its data center business to Japan’s Nippon Telegraph and Telephone (NTT); however, Mr. Pangilinan said PLDT is dropping its negotiation with NTT Japan because it wants a majority of ePLDT’s stake.

“[NTT Japan] wanted a majority. [ePLDT] is making money and the growth potential is there, there are interested parties,” he said.

To date, PLDT, through its subsidiary ePLDT, has 11 data centers, including the 50-megawatt hyperscale data center in Sta. Rosa, Laguna.

At the local bourse on Tuesday, shares in the company gained P7 or 0.44% to end at P1,601 apiece.

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. — Ashley Erika O. Jose

T-bond yields drop as market awaits BSP move

THE GOVERNMENT made a full award of the reissued 20-year Treasury bonds (T-bonds) it offered on Tuesday at a lower average rate amid strong demand and despite some uncertainty regarding the Bangko Sentral ng Pilipinas’ (BSP) policy decision on Thursday.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 20-year bonds it auctioned off on Tuesday as total bids reached P73.348 billion, or more than double the amount on offer. This brought the outstanding volume for the series to P383.3 billion, the Treasury said in a statement.

The bonds, which have a remaining life of six years and 11 months, were awarded at an average rate of 6.128%. Accepted yields ranged from 6.05% to 6.14%.

The average rate of the reissued papers dropped by 29.9 basis points (bps) from the 6.286% fetched for the series’ last award on July 9, and was also 39.3 bps lower than the 8% coupon for the issue.

However, this was 0.8 bp higher than the 6.115% seen for the same bond series and 5.4 bps above the 6.117% quoted for the seven-year bond, the tenor closest to the remaining life of the papers on offer, at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

The BTr fully awarded its T-bond offer as rates declined versus the previous reissuance of the series, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This, even as the average rate fetched for the papers was slightly higher than secondary market levels ahead of the BSP’s policy meeting, Mr. Ricafort said.

“The higher rate was due to some investors being uncertain of BSP’s move on Thursday. Still, this auction result is good if you compare it to the one-year bills,” a trader said in a text message.

On Monday, Treasury raised the planned P7 billion via the 364-day Treasury bills (T-bills) as demand totaled P19.985 billion. The average rate of the one-year debt inched down by 1.2 bps to 6.062% from the 6.074% quoted for the tenor last week.

Analysts are divided on the Monetary Board’s rate decision this week as faster inflation in July caused BSP Governor Eli M. Remolona, Jr. to take a less dovish policy stance.

The BSP is now “a little bit less likely” to cut rates at Thursday’s policy meeting following the elevated July inflation print, Mr. Remolona said last week, adding that they remain open to off-cycle moves.

A BusinessWorld poll showed that nine out of 16 analysts surveyed expect the central bank to deliver a 25-bp rate cut at Thursday’s review.

This would bring the target reverse repurchase rate to 6.25% and would be the first reduction in benchmark borrowing costs since November 2020, or during the height of the coronavirus pandemic.

Meanwhile, the seven other analysts polled expect the BSP to keep rates steady this week amid lingering risks to the inflation outlook and with the US Federal Reserve seen to deliver a jumbo rate cut next month.

The Monetary Board has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative increases worth 450 bps.

Headline inflation picked up to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported last week. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast for the month.

However, this was the fastest print in nine months or since the 4.9% clip in October 2023. It also marked the first time since November that inflation exceeded the central bank’s 2-4% annual target.

Meanwhile, the Fed is expected to begin its monetary easing cycle by September, with markets seeing more than 50 bps in cuts following recent data pointing at a potential slowdown in the world’s largest economy.

The Fed has kept its benchmark overnight interest rate at the current 5.25%-5.5% range since July 2023 after increases worth 525 bps.

The Treasury is looking to raise P220 billion from the domestic market in August, or P80 billion from T-bills and P140 billion via T-bonds.

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

Food banking to alleviate hunger

DRAZEN ZIGIC-FREEPIK

(Part 1)

All over the world, levels of hunger are expected to remain “shamefully” high according to United Nations (UN) officials in a recent report that predicts that almost 600 million people will be undernourished by 2030.

The report was issued by UN officials asking donor governments to rethink prioritizing national interests over foreign aid.  Despite the very high level of hunger, especially in Africa, UN estimates also show that official development assistance (ODA) is going down. Only about a quarter of that assistance ($77 billion) went to improving food security and nutrition in 2021, the most recent year for which there is data.

Unfortunately, in some of the donor countries, national interests are being prioritized over foreign aid (e.g., America First) leading to a cutback on foreign aid. Alvaro Lario, president of the UN’s International Fund for Agricultural Development (IFAD), told the Financial Times that there is a clear danger that there will be less resources available for tackling the global issue of food insecurity.

Worldwide, rates of hunger rose during the COVID-19 pandemic and the full-scale invasion of Ukraine by Russia. In 2023, between 712 million and 757 million people were facing hunger, according to the UN Report. While the number of people without enough to eat has declined in Latin America and the Caribbean and is relatively unchanged in Asia, it is continuing to rise in Africa. Overall, a higher portion of people are undernourished today than 10 years ago.

If the trend is not reversed, there will be 582 million people chronically undernourished by 2030. UN officials believe that the goal of zero hunger by 2030 could have been achieved with more funding from donor governments and better coordination. Often foreign aid is focused on emergency assistance, but more funds should have been channeled to help farmers improve their productivity.

According to the same UN study, food insecurity in the Philippines was among the worst within the Southeast Asian region during the period 2021 to 2023, with some 51 million Filipinos experiencing moderate or severe hunger or severe “food insecurity.” According to the UN, a person is considered food insecure if he or she lacks regular access to safe and nutritious food for normal growth and for an active and healthy life. The UN defines food security as a situation where all people, at all times, have physical, social, and economic access to sufficient, safe and nutritious food that meets their dietary and food preferences.

The rate of moderate or severe food insecurity in the total population was 44.1% in the Philippines, the third highest in the region, after Timor-Leste (53.7%) and Cambodia (50.5%). The average cost of a healthy diet in the Philippines increased to $4.10 per person daily in 2022, higher than the $3.84 the year before. At this level, it became more expensive than the world average of $3.95 per person. All in all, the number of Filipinos who were not able to afford a healthy diet stood at 55.6 million in 2022 among a total population of some 115 million.

It was admirable for President Ferdinand Marcos, Jr. not to gloat over the many reports from international agencies — like the World Bank and the Asian Development Bank as well as multinational banks and think tanks — that the Philippines is now, together with Vietnam and India, the fastest growing country GDP-wise, not only in the Indo-Pacific region but all over the world at about 6% per annum. He was quick to point out in his third State of the Nation Address (SONA) that such a high GDP growth is pointless because a large portion of the Philippine population continue to wallow in poverty and hunger. Indeed, on the Saturday after he delivered his SONA, prominent economist Mahar Mangahas reported in his regular column entitled “Social Climate” in a leading daily that the rate of hunger in the Philippine population is not only so high but is also rising quickly.

According to his Social Weather Station (SWS) — which was started in July 1998 — despite so much general economic growth, in terms of GDP per person, there has been no long-term decline in hunger, in contrast with self-rated poverty, which has declined slightly over the past four decades.

What is even more worrisome is that hunger happens to both the poor and the non-poor.

According to the SWS survey it is expectedly higher among the poor at any point of time. In June 2024, for instance, the hungry were 21.3% among the poor versus only 12.7% among the non-poor. Among the non-poor, the hunger rate fell momentarily, from 10.4% in September to 5.9% in December 2023. But then it rose to 9.8% in March 2024 and most recently to 12.7% in June 2024.

The surge of hunger among the non-poor is more recent and may be partly attributed to the high food inflation in the first semester of 2024, resulting from the drop in agricultural output that the extremely hot weather of El Niño brought with it.  Surveying hunger and poverty together has enabled the fluctuations of hunger among the poor and non-poor to be seen.  The relation of hunger to food poverty is even stronger.

Another correlation now universally recognized is that between hunger and malnutrition among children and education quality.

Educators, economists, and medical practitioners have repeatedly pointed out that it is impossible to address the educational outcomes in our public schools without the government addressing the problem of malnutrition affecting some 30% of early learners, as was pointed out by former Secretary of Education Edilberto de Jesus in a column of a prominent daily. In his words: “This is the silent, ticking time bomb serially crippling every generation that suffers through it.  Past a certain point, the malady permanently limits the children’s capacity to learn, aggravating the problem and raising its cumulative burden and costs. Investments in additional classrooms, curricular reform, and additional training and incentives for teachers are necessary, but they will not achieve the level of learning expected from children who go to school hungry.  Even the Divine Teacher had to perform the miraculous multiplication of loaves and fishes to make sure the people were properly fed before He began teaching them the Gospel values.”

We should appreciate the fact, therefore, that President Marcos Jr. spent the first 10 minutes or so of his SONA on the most serious economic problem of the Philippines today, i.e., food security and related issues of the high prices of food and hunger. As Alex Escucha, a fellow columnist in this paper and President of the Institute for Development and Econometric Analysis, Inc., pointed out in a recent column, the President however fell short of setting measurable goals. It is hoped that in his next SONA, he will heed the advice of Alex to come out, for example, with the following metrics as regards the serious problem of the stunting of children because of undernourishment and malnutrition: “Accelerate the target to cut the rate of stunting (of children) from 26.7% in 2021 to 5% by 2030, instead of 17.9% in the 2023-2028 Philippine Development Plan (page 87).”

This setting of measurable goals will also help concerned citizens in the business sector and civil society to identify their respective roles in fighting hunger in the Philippines, especially among children. It is clear that the Government cannot attain the goal of Zero Hunger alone.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Spanish techno festival introduces tests to detect spiked drinks

MEDUSASUNBEACH.COM

CULLERA, Spain — An electronic music festival on a beach in eastern Spain has set up tents where revelers can drug-test their drinks to ensure they do not contain psychoactive substances slipped into the beverages without their consent.

At the so-called “violet point” of the Medusa Sunbeach Festival, social workers also respond to possible cases of gender-based violence or sexual abuse.

The testing kits, a first for Spain, detect GHB, also known as liquid ecstasy, a color- and odorless party drug that acts as a central nervous system depressant. In recent years, it has gained notoriety as a “date-rape” drug.

The violet points rolling out at public gatherings such as fairs and concerts are an initiative of the Spanish Equality Ministry, in collaboration with local governments, to aid victims and witnesses of sexual harassment and gender-based violence. Their name derives from the purple color associated with the feminist movement.

Rosana Galvez, a social worker for the Valencia region’s women’s network, said the tests were a way to prevent sexual assaults.

Samples are taken with droppers from attendees’ drinks and inserted into a test tube with a chemical reagent. If the liquid contains GHB, it turns bright red. The protocol mandates alerting emergency services and law enforcement whenever there is a positive reaction.

“I think the violet point is very important. At a festival, you’re surrounded by a lot of people and it’s very normal for somebody to slip something into your drink without you noticing,” 18-year-old Adriana Barros told Reuters.

Raquel, 23, who declined to give her last name, said it was reassuring to “have a place where, if something happens to you, you know that you can go for help or advice.”

Medusa, Spain’s largest electronic music festival, celebrated its 10th anniversary with more than 56,000 people attending Saturday’s performances, according to organizers.

In 2022, it made headlines when strong winds caused the collapse of a metal structure, killing a 22-year-old man and injuring nearly 40 people. — Reuters

LT Group’s earnings hit P12.8B amid tobacco decline

LUCIO C. TAN-led conglomerate LT Group, Inc. said its first-half attributable net income reached P12.8 billion, down by 2% from P13 billion last year, amid a decline in its tobacco business.

First-half revenue increased by 13.2% to P61.13 billion from P54 billion a year ago, LT Group said in a regulatory filing on Tuesday.

Among business segments, Philippine National Bank (PNB) contributed P5.77 billion, or 45% of the total net income, followed by the tobacco business at P4.87 billion, or 38%.

Tanduay Distillers, Inc. and Asia Brewery, Inc. (ABI) added P712 million and P508 million, respectively, or 6% and 4% each.

Eton Properties Philippines, Inc. and Victorias Milling Co., Inc. accounted for 2% each, at P326 million and P277 million, respectively. Other income was at P336 million, or 3%.

LT Group’s tobacco business recorded a 16% drop in net profit to P4.89 billion from P5.85 billion a year ago.

Most of the tobacco business’s income comes from its share of profits from the 49.6% stake in PMFTC, Inc., which totaled P4.43 billion. This is a 22% decrease from P5.68 billion last year.

PMFTC’s volume for the first half dropped by 14% to 10.6 billion sticks. The industry’s volume, excluding illicit trade, was 8% lower at 20 billion sticks from 21.7 billion sticks last year due to affordability challenges among consumers, increasing illicit incidence, and the proliferation of vaping products.

For the banking business, PNB’s net profit under the pooling method rose by 5% to P10.29 billion. Loans and receivables rose by 7% to P632 billion, while net interest income climbed to P24.03 billion.

Net service fee and commission income fell by 27% to P2.27 billion.

In the beverage business, ABI grew its net profit by 49% to P509 million from P340 million a year ago.

Revenues increased by 12% to P9.4 billion from P8.41 billion on higher sales volume across product lines. The Cobra energy drink maintained its leadership at a 56% market share, while bottled water brands Absolute and Summit had the third-largest share at 18%.

Meanwhile, Eton Properties grew its net income by 59% to P327 million from P206 million. Leasing revenues increased by 5% to P1.01 billion on higher occupancy rates and lease rates.

The property developer recorded P105 million in residential sales as the company resumed selling the remaining inventory of projects 68 Roces in Quezon City and Eton City in Laguna.

Eton Properties currently has a leasing portfolio of 288,000 square meters (sq.m.), of which close to 192,000 sq.m. is for office space.

On Tuesday, LT Group shares fell by 0.2% or two centavos to P9.90 apiece. — Revin Mikhael D. Ochave

DBP says capital hike to boost financing for its priority sectors

COURTESY OF DBP FACEBOOK PAGE

THE PROPOSED HIKE in Development Bank of the Philippines’ (DBP) capital stock to P300 billion from P35 billion will help it fund more state projects to boost the economy, its top official said.

“Other banks in our country have much more capital than we do,” DBP President and Chief Executive Officer Michael O. de Jesus said during a Senate banks committee hearing on a bill that seeks to amend its charter. “The more capital we have, the more we can finance, do business, and promote development in the country.”

“As a general rule, when there is more capital in the bank, it has more resources to lend out money to be able to comply more with its mandate to finance development projects,” Mr. De Jesus added.

End-2023 data from the DBP discussed during the hearing showed 55% of the bank’s loan portfolio went to the infrastructure and logistics sectors, with 21% being allocated for social projects such as social services, public education and healthcare.

Under Senate Bill No. 2761, which Senate President Francis “Chiz” G. Escudero filed this month, the National Government shall own 70% of the total outstanding capital stock of DBP at all times. Meanwhile, P32 billion or 10.67% of the authorized capital stock of the bank, shall be subscribed to and fully paid by the National Government.

“The Board, upon the recommendation of the Secretary of Finance and with the approval of the President of the Philippines, may increase the capitalization of the bank up to such an amount as may be necessary to attain the objectives of this Charter, and may allocate part or all of the bank’s unrestricted retained earnings towards paying for the increase in capital,” it said.

The amended DBP Charter will also let the bank conduct an initial public offering to expand its resources to increase financing for its mandated sectors.

The bill also expands DBP’s mandate to include the development of infrastructure; expansion of businesses, particularly micro, small, and medium enterprises; and education, healthcare, housing, and the environment.

It seeks to grant the state-run lender a “perpetual” corporate existence and give two seats in its board to ex officio members from the Department of Finance and the National Economic and Development Authority, with the President appointing the seven other board members.

Senator Mark A. Villar, who heads the committee, backed the proposal to raise DBP’s capital stock.

“It is crucial that our institutions are equipped with proper funding that will enable them to pursue growth initiatives which in turn will help expand local capital markets and create more opportunities for the public and private sectors to access development financing,” he said at the same hearing.

“Amending the DBP Charter will lead to an increase in funds to assist the government in pursuing economic growth and development, promoting economic empowerment and inclusivity…”

Mr. Villar referred the measure to a technical working group to refine it before it is sponsored before the Senate plenary. — J.V.D. Ordoñez

Tapping into strengths, maximizing opportunities

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The Stratbase team went to Cebu and Cagayan de Oro last week to hold our Stratbase Business Roundtable Discussions with business leaders and chambers of commerce in the Visayas and Mindanao. We believe it is important to know the sentiments of businesses in other parts of the country. It is they who know best what is happening in their respective spheres.

What we gathered was this: local businesses believe that the Philippines has distinct strengths and competencies, that there are specific opportunities available to us that we can maximize, that challenges remain, but that we could act on and address these challenges. They share the belief that the Philippines can be a premiere destination for both local and foreign investors.

The strengths are many, but it is these three that emerge: we have a young and dynamic population, we are rich in natural resources, and we have a strategic location at the heart of the Indo-Pacific region.

Our population of 118 million has a median age of 25 — this is a huge pool of actual and potential talent, eager to learn and participate in the economy. This makes for a booming and large consumer market, as well as a dynamic workforce. According to the think tank ASEAN+3 Macroeconomic Research Office (AMRO), the Philippine population is expected to be among the youngest in the region, with the number of working-age individuals seen to peak by 2051 — the latest among Southeast Asian economies.

The Philippines is also rich in natural resources. There is a huge potential to grow our blue economy, an industry identified by business leaders to be “untapped” especially since we are first and foremost, a maritime nation. We also have huge reserves of critical minerals such as copper and nickel which are essential components as we transition into clean energy.

The Philippines’ strategic location makes it a vital gateway for over 600 million people in the ASEAN market and a natural entry point to East Asian economies. It is positioned at a key junction for international shipping and airlines. For example, business leaders from Cebu talked about how the city is the gateway between Visayas and Mindanao. Their international airport also provides easy access to different parts of Asia. Hence, Cebu leaders are confident that the province and the region has huge potential to make the area very competitive, not just in the Philippines, but in Southeast Asia.

This location of the Philippines at the heart of the Indo-Pacific region also offers boundless opportunities. The region is said to be a key growth driver for the global economy in the coming years. In light of the recent geopolitical tensions, major global economies have been looking to derisk and decouple to shift investments to countries that share the same values that they hold.

Notwithstanding this, there are roadblocks in making the Philippines a premier investment destination, both for foreign and domestic businesses. According to the Visayas and Mindanao business leaders, while there has been interest by foreign investors to enter their region, they are having difficulty doing so due to inadequate infrastructure, the high cost of electricity, and bureaucratic concerns in starting a business. There are also misconceptions that foreigners have on the security risks in the Mindanao region — even though certain cities of the region are peaceful and have thriving business environments.

The business leaders also said that given new technologies and the world’s entry into Industry 4.0, investing in the education of the Filipino youth to upskill and reskill them is a must. They are concerned that manpower in the country is decreasing — many Filipinos are seeking jobs abroad and many also lack the skills necessary to do certain jobs.

We need to strengthen the technical and vocational education and training (TVET) program of the government and equip and train the young population to be industry ready.

Business leaders also said they need greater support to boost competencies in the following sectors: trading, agriculture, manufacturing (furniture, food, steel, light materials such as food packaging and garments), arts, the creative industry, and Information and Communication Technologies (business process outsourcing or BPO and knowledge process outsourcing or KPO), among others.

To address these concerns, business leaders from Cagayan de Oro and Cebu urge the government to listen to the concerns of the business sector and work closely with them. They also propose developing more renewable energy sources and constructing physical infrastructure, modernizing the agriculture sector, investing in connectivity, and increasing exports, since the country is importing more than we are exporting.

The business leaders affirmed the private sectors’ commitment and willingness to work with the government to develop a more attractive business environment in the region for both domestic and foreign corporations.

Our macroeconomic fundamentals are sound, with GDP growing by 6.3% in the second quarter of 2024. The Philippines remains on track to be the fastest-growing economy in the Southeast Asian region. We build on our innate strengths and on the dynamic consumption patterns of our population. But this is not enough. The economy can grow further if investments come into the country, which would create more quality, secure, green jobs for the people.

Local businesses, with their exposure to the economic realities of our country and their respective regions, have shared their grounded, realistic, and more importantly actionable insights.

We hope the administration is listening.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Edamama targets underserved parenting market

EDAMAMA.PH

By Patricia B. Mirasol, Multimedia Producer

MANILA-BASED parenting platform Edamama wants to capitalize on the country’s underserved market as it continues to build an online-to-offline retail experience for its target market.

“We really want to be where the customer is, and 90% of retail in the Philippines today is still offline, so our goal is really to build the leading omnichannel in the country,” Bela Gupta D’Souza, one of Edamama’s founders, said in an interview on Aug. 1.

The company started in May 2020 as an online platform selling third-party childcare and mother care products. It now also sells 95,000 wares including in-house brands in its four brick-and-mortar stores in Manila, with another one set to open this month.

Edamama sells online only through its app and its website to give parents a curated shopping experience, according to co-founder Nish D’Souza.

“When you go to a horizontal marketplace, you have millions of products,” he told BusinessWorld. “When you come to Edamama, that experience is curated… You can find what you need very easily, even curated down to the age and gender of your baby.”

The company, which was No. 1 out of nine Filipino startups that landed on the Forbes Asia 100 to Watch list of 2023, also has its own in-house fleet for deliveries within the capital “to have more input on the delivery experience of the customer,” he said.

The children’s apparel market in the Philippines is projected to experience grow by 1.94% from 2024-2028, according to Statista.

The Hamburg-based web portal in a separate study in April said the size of the global parenting app market is expected to surpass $900 million (P51.4 billion) by 2030.

In June, Edamama partnered with KonsultaMD to open a pilot clinic at its Ayala Malls Feliz outlet.

Mr. and Ms. D’Souza, who are parents to three children, said it could sometimes take an hour to see a pediatrician.

“Healthcare is a friction point for some parents,” Ms. D’Souza told BusinessWorld. “The parent is seeking out not just products, but also solutions and services to help simplify their parenting journey.”

“Can we help reduce the friction in accessing healthcare by integrating a healthcare clinic in our stores?”

The reality of setting up at the height of the coronavirus pandemic brought in a lot of agility, she said.

“Everybody saw that shift to online very quickly once the lockdown came into effect,” she said. “It was very easy to work with seller-partners to onboard them quickly onto the platform, given that a lot of them knew that online was the future.”

Edamama has raised $35 million from its Series A funding round, according to Mr. D’Souza.

“The Philippines is one of the biggest markets in Southeast Asia, with high fertility rates, and one of the largest under-10 and under-14 populations globally, yet the parents here are underserved in terms of affordable quality options,” he said.

“At the end of the day, when you have a market size that big, that attracts the attention of investors,” he added.