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Angara named DepEd chief amid education crisis

SENATOR Juan Edgardo M. Angara is set to take over the Department of Education amid a learning crisis in the Philippines. — PHILIPPINE STAR/WALTER BOLLOZOS

By Kyle Aristophere T. Atienza, Reporter

MALACAÑANG on Tuesday named Senator Juan Edgardo M. Angara as the new secretary of the Department of Education (DepEd) as the Philippines faces a learning crisis spurred by the pandemic and decades-old bureaucratic inefficiencies.

Mr. Angara will take over the DepEd after Vice-President Sara Duterte-Carpio’s resignation from the post takes effect on July 19, the Presidential Palace said in a press release.

The Palace recognized Mr. Angara for pushing “significant educational reforms” since joining the Senate in 2013, including a law that added two more years to secondary education in a bid to make Filipino students “globally competitive.”

“With a Master of Laws from Harvard University, a Bachelor of Laws from the University of the Philippines, and a Bachelor of Science in Economics from the London School of Economics, his background positions him well to lead DepEd,” the Palace said, quoting President Ferdinand R. Marcos, Jr.

Mr. Angara was endorsed by the Coordinating Council of Private Educational Associations and the Philippine Association of Colleges and Universities. He was also included in the Philippine Business for Education’s (PBEd) short list of candidates for the position.

PBED said his experience as commissioner of the Second Congressional Commission on Education (EDCOMM2) “will bolster our chances of addressing the learning crisis effectively.”

Mr. Angara, who was among the legislators who pushed for the creation of EDCOMM2, said he’s committed to working with “all sectors of society, including my predecessor, Vice-President Sara Duterte, to ensure that every Filipino child has access to quality education.”

“I look forward to building upon her accomplishments,” he said in a statement.

Ms. Duterte-Carpio left the education in a poor state, with Filipino students faring poorly in global education assessments.

Filipino students were still among the world’s weakest in math, reading and science, according to the 2022 Program for International Student Assessment (PISA), with the Philippines ranking 77th out of 81 countries and performing worse than the global average in all categories.

In a recent report on PISA 2022 earlier this month, the Organization for Economic Cooperation and Development said 15-year-old Filipino students also ranked 63rd out of 64 countries in terms of creative thinking.

Nine in 10 Filipino students aged 10 can’t read basic text, according to a 2022 World Bank report.

“These results highlight the urgent need for an experienced leader who will be able to transform and revive the Philippine education system,” the Makati Business Club (MBC) said in a statement as it welcomed Mr. Angara’s appointment.

“A well-educated population is key to creating a competitive workforce that will be able to keep up with rapid technological developments given the acceleration of artificial intelligence,” it added.

MBC said the new Education chief should ensure that elementary and high school principals and teachers are equipped with literacy, technical, and character skills needed to make Filipino children responsive to emerging challenges.

Ms. Duterte-Carpio had launched efforts to review the K-12 program that Mr. Angara championed in 2013, citing its “congested curriculum” and its failure to produce job-ready graduates.

The review was still unfinished when Ms. Duterte resigned from her post on June 19 amid the growing political divide between her family and the Marcos administration.

As EDCOMM 2 commissioner, Mr. Angara had promised a comprehensive review of the program amid public pressure to either revise or scrap it.

REFORMS NEEDED
Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said appointing a politician to the Education department could “lead to neglect of long-term educational reforms that require sustained effort and do not provide immediate political benefits.”

“Politicians often operate within short election cycles and may prioritize policies that yield immediate, visible results,” he said in a Facebook Messenger chat. “The question is: Will Angara give up his political ambitions upon acceptance of this position?”

David Michael M. San Juan, a professor at De La Salle University and convener of Professionals for a Progressive Economy, urged Mr. Angara to apply a “more bottom-up approach” to the education sector and veer away from the “usual top-down imposition of policies.”

“He’s an advocate of upgrading teachers’ salaries. Teachers’ organizations have known him to be receptive to dialogue on education sector issues,” he said via Messenger chat. “I hope that his experience and network as a legislator help DepEd secure the necessary resources to help resolve our education crisis.”

Some groups critical of the Marcos administration have welcomed Mr. Angara’s appointment but said he should address key issues overlooked by the previous DepEd leadership.

ACT Teacher Party-List Rep. France L. Castro said the incoming DepEd chief should tackle education issues head-on including a comprehensive reform of the K-12 program and “long-standing” demands of teachers and education support personnel.

“He must prioritize the improvement of working conditions, salaries, and benefits of our teachers and education support personnel,” she said in a statement. “These frontliners in education have long been calling for just compensation and better support systems.”

Gabriela Women’s Party-list Rep. Arlene D. Brosas said Mr. Angara should reconsider his support for a bill seeking mandatory military training for college students and should put focus on the shortage of classrooms and learning materials.

The classroom shortage stood at 91,000 when Ms. Duterte assumed office in July 2022, but a year later, it rose to 159,000.

“The change in leadership at DepEd must not be mere musical chairs,” Ms. Brosas said.

The Liberal Party called on Mr. Angara to ensure a comprehensive review of the K-12 program and “uphold the integrity of our educational institutions.”

Philippines’ move to upper middle-income level unlikely by 2025

People cross the street in Caloocan City, April 29, 2024. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINES is unlikely to achieve the government’s goal of becoming an upper middle-income country by 2025, analysts said.

Analysts said Philippine gross domestic product (GDP) needs to expand by at least 6% annually in the near term to ensure a significant growth in Filipino incomes.

“The Philippines can still become an upper middle-income country if it grows by 6-6.5% every year for the next two to three years,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.

The Marcos administration is aiming to achieve upper-middle income status for the country by 2025, but this may take longer as the World Bank raised the income classification levels again.

To become an upper middle-income country, the Philippines now needs to have an estimated gross national income (GNI) per capita of $4,516 to $14,005. This is higher than the previous range of $4,466 to $13,845.

According to the World Bank’s latest income classification data, the Philippines remained a lower middle-income country with a GNI per capita of $4,230 in 2023, higher than $3,950 in 2022.

The World Bank now classifies a country as lower middle-income if the GNI per capita level is at $1,146 to $4,515. This is higher than the $1,136 to $4,465 level set last year.

The World Bank computes a country’s GNI through the Atlas method, which serves as the basis of its income classifications — low, lower-middle, upper-middle and high. GNI refers to the total amount of money earned by its residents both inside and outside its borders.

“Upper middle-income status is just a number but there are strong reasons to doubt if the Philippines will achieve even that in 2025,” IBON Foundation Executive Director Jose Enrique A. Africa said citing the economy’s slowing growth over the past year.

“This continues a general slowdown that actually started in 2017 and was momentarily camouflaged by the pandemic lockdowns, contraction and rebound,” he said in a Viber chat message.

Last week, National Economic and Development Authority Secretary Arsenio M. Balisacan said the country can reach the upper middle-income status by late 2025 or early 2026.

The Philippines has been classified as a lower middle-income country since 1987.

“In a way, the administration has implicitly recognized that it won’t reach upper middle-income as scheduled when it lowered the growth target in April,” Filomeno S. Sta. Ana III, executive director and co-founder of Action for Economic Reforms, said in a Viber chat message.

Economic managers are targeting 6-7% GDP growth this year.

Earlier, the World Bank has said that it may take up to three years before the Philippines can reach the upper middle-income level.

“To do this, the government should raise productivity and increase the number and quality of jobs. In this regard, the country should prioritize infrastructure, institutional integrity and efficiency, education, and technology,” Mr. Terosa said.

Mr. Sta. Ana said the government should focus on addressing constraints to economic growth, such as elevated inflation, tight fiscal space, and high power rates.

“(The) administration’s time is eaten up by too much politicking, which has also distorted economic policy making,” he said.

For Mr. Africa, reaching upper middle-income status does not guarantee the country’s situation will improve.

“The Philippines cannot but eventually reach upper middle-income status — population growth alone will ensure that this will happen sooner or later. But this is just an aggregate number and won’t mean that chronic poverty for the poorest, bloating disguised joblessness or worsening inequity have been resolved. That aggregate number of GNI or GDP per capita will hide all sorts of development sins,” he said.

Other lower middle-income economies in Southeast Asia include Cambodia, Laos, Myanmar and Vietnam.

Indonesia, Malaysia and Thailand are classified as upper middle-income countries, while Singapore is considered a high-income economy. — Beatriz Marie D. Cruz

Philippines to post huge twin deficits this year

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES will continue to post large deficits for the current account and budget this year due to an expected increase in rice imports and infrastructure spending, Nomura Global Markets Research said.

“We expect the current account deficit (CAD) to remain large and fiscal consolidation targets to be challenging this year,” it said in a report.

“In our view, prioritization of infrastructure projects under the ‘Build Better More’ program and a substantial reduction of rice import tariffs will result in the current account deficit remaining large, make fiscal consolidation more challenging and could imply persistence in currency weakness.”

The government is aiming to spend 5-6% of gross domestic product (GDP) on infrastructure annually. The Marcos administration has approved 185 infrastructure flagship projects valued at P9.55 trillion.

“The upshot is a still-large CAD, which we forecast at 2.7% of GDP in 2024, well above the pre-pandemic (2016-2019) average of 1.1% and reflecting, in part, rising capital goods and raw materials imports due to infrastructure implementation,” Nomura said.

The central bank projects a $4.7-billion current account deficit for 2024, equivalent to 1% of GDP.

The current account deficit stood at $1.7 billion in the first quarter, equivalent to 1.6% of GDP.

Meanwhile, Nomura also sees the National Government’s (NG) fiscal deficit reaching 5.9% of GDP this year. This is slightly higher than the government’s deficit ceiling of 5.6% of GDP, equivalent to P1.48 trillion.

Nomura said its higher deficit-to-GDP forecast is due to the Philippine government’s “challenging” fiscal targets.

“Our recent discussions with officials suggest the risk of a repeat of last year’s underspending is low, thanks to catch-up plans and recent budget reforms,” it added.

Latest data from the Treasury showed that the NG’s budget deficit in the January-May period widened by 24.06% to P404.8 billion.

The Budget department last month tasked underspending government agencies to submit “catch-up plans” to address low budget utilization.

Meanwhile, Nomura said that the recent reduction in rice import tariffs will also contribute to the twin deficits.

“Food importation will remain a recourse of the government to increase domestic supply amid continued weather-related risks and now likely higher rice import demand due to lower tariffs,” it said.

President Ferdinand R. Marcos, Jr. last month signed Executive Order No. 62, which slashed tariffs on rice imports to 15% from 35% previously, until 2028.

The Department of Agriculture expects rice imports to hit 3.9 million metric tons (MMT) this year, while the US Department of Agriculture expects imports to reach 4.6 MMT.

“The tariff cut also implies some forgone fiscal revenues of about 0.05% of GDP, by our estimates,” Nomura said.

The Finance department earlier estimated that foregone revenues from the tariff cut could reach up to P22 billion.

Due to the tariff cut, Nomura also cut its inflation forecast to 2.8% this year from 3.7% previously. The BSP expects full-year inflation to settle at 3.3%.

The government’s efforts to ramp up infrastructure spending as well as the recent tariff cut may also lead to “persistent foreign exchange (FX) weakness.”

“Relatively large twin deficits under BSP’s flexible market-determined FX regime could imply persistence in currency weakness,” it added.

The peso closed at P58.795 against the dollar on Tuesday, weakening by 14.5 centavos from its P58.65 finish on Monday.

The peso has been trading at the P58-per-dollar level since May. — Luisa Maria Jacinta C. Jocson

BSP @ 31: Shaping the financial landscape towards sustainable growth

Photo from the Bangko Sentral ng Pilipinas Annual Report 2023

A central bank needs to accomplish a few things in its service to the nation: among which are monetary policy, which involves controlling the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, managing employment levels, maintaining economic stability; the regulation and supervision of banks and other financial institutions; and acting as the banker, financial advisor, and fiscal agent for the government.

Additionally, central banks manage foreign currency reserves to stabilize the national currency and ensure liquidity, and they often serve as lenders of last resort during financial crises to maintain confidence in the financial system.

In celebrating the 31st anniversary of the Bangko Sentral ng Pilipinas (BSP), reflecting on its history is essential to appreciating its contributions to the country. From navigating economic crises to implementing forward-thinking monetary policies, the BSP has played a crucial role in shaping the financial landscape of the Philippines and promoting sustainable economic growth, serving as a true bulwark to economic progress.

When the Filipinos first conceptualized the BSP, it came as part of the processing of the Hare-Hawes Cutting bill, the Philippine independence bill approved by the US Congress. But it was not until after the Japanese occupation did the country first see the concept come to life. Until then, the country’s monetary system was administered by the Department of Finance and the National Treasury.

In 1946, after the Philippines fully gained its independence, President Manuel Roxas tasked Finance Secretary Miguel Cuaderno, Sr. to draft a central bank charter. The task became an imperative a year later as a result of the findings of the Joint Philippine-American Finance Commission, which studied Philippine financial, monetary and fiscal problems in 1947, recommending a shift from the dollar exchange standard to a managed currency system.

Republic Act No. 265 officially established the Central Bank of the Philippines (CBP) on Jan. 3, 1949. This action was crucial in the changeover to a controlled currency system from the old dollar exchange standard.

The CBP underwent several transformations to better address the country’s economic needs. In 1972, then President Ferdinand E. Marcos issued Presidential Decree No. 72, which expanded the bank’s authority to regulate the entire financial system. Further amendments in 1981 strengthened the financial system, increasing the CBP’s capitalization from ₱10 million to ₱10 billion.

The modern BSP, as Filipinos know it today, was established on July 3, 1993. A month before, then President Fidel V. Ramos signed Republic Act No. 7653, the New Central Bank Act, into law in compliance with a 1987 Constitutional mandate.

(Front row, from left) Asian Development Bank Senior Financial Sector Specialist Kelly Hattel, Philippine Space Agency Deputy Director-General Denis F. Villorente, BSP Deputy Governor Mamerto E. Tangonan, Monetary Board Member Rosalia V. De Leon, Deputy Governor Chuchi F. Fonacier, Assistant Governor Lyn I. Javier, Department of Information and Communications Technology’s National Broadband Program Project Director Antonio Edward E. Padre, BSP Managing Director Eugene C. Teves, Deputy Director Alona H. Isidro, Bank Officer Ma. Ciefrel T. Desquitado, (second row, second from left) BDO Network Bank, Inc. First Vice-President Norman Vic C. Aycocho and the participants of the Rural Bank Strengthening Program Technology and Innovation Forum at the BSP Head Office in Manila last May 31 — Photo from bsp.gov.ph

The fundamental goal of the BSP, an autonomous monetary institution that will be established in accordance with the law, is to maintain price stability as the previous Central Bank charter simply made reference to this goal in passing. Additionally, the Bangko Sentral now has fiscal and administrative autonomy granted by law, which the previous Central Bank did not.

Now, the BSP maintains its duty to promote and maintain price stability, while creating a strong financial system, and a safe and efficient payments and settlements system conducive to a sustainable and inclusive growth of the economy. All this under a vision of becoming recognized globally as the Philippines’ central monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos.

And throughout its history, the BSP has been successfully recognized as such for its regulatory excellence and initiatives in financial literacy and inclusion. For instance, in 2013, it was named the Best Macroeconomic Regulator in the Asia-Pacific Region by The Asian Banker. It got this recognition once more in 2017​​.

Most notably, the BSP was acknowledged at the Asian Banker Leadership Achievement Award Virtual Ceremony 2020 as the Best Systemic and Prudential Regulator in Asia-Pacific, as part of The Asian Banker Regulation & Supervision Awards. This comes as an achievement, proving the central bank’s undeniable service as a guardian of financial stability during the COVID-19 crisis.

“BSP has focused on prudent oversight of financial institutions to ensure financial stability amid increased uncertainty. The prudential measures aim to enable the financial system to assist micro, small and medium enterprises (MSMEs) and large enterprises to carry on businesses during the COVID-19 crisis and hasten recovery and sustainability of their operations,” The Asian Banker wrote.

Bangko Sentral ng Pilipinas (BSP) Research Academy and the Department of Agriculture’s (DA) Agricultural Credit Policy Council (ACPC) launched the regional public information campaign on the “2022 Countryside Bank Survey” report in Naga City on June 4. Photo shows Agricultural Credit Policy Council Director Magdalena Casuga, BSP Principal Researcher Dr. Veronica Bayangos, Regional Director Tomas Cariño, and Researchers Ferdinand Co (front row, seventh to tenth from left) and Jade Eric Redoblado (third from right). — Photo from bsp.gov.ph

“It has served as a guardian of financial stability during the COVID-19 crisis and implemented prudential relief measures to assist BSP supervised financial institutions (BSFIs), and support households and business enterprises. The measures serve to complement the BSP’s existing regulatory relief policies and set a uniform and systematic approach in granting regulatory relief for banks.”

Furthermore, the BSP has been recognized for implementing appropriate strategies to address the increasing demand for digital channels in its efforts for digitizing the Philippine economy.

During the pandemic, the BSP established regulations to guarantee retail clients’ access to official financing channels and to encourage and heavily utilize information technology for financial operations. The BSP also loosened know-your-customer (KYC) regulations in order to make official funding channels more accessible. Meanwhile, to effectively control the rising number of financial crimes and cyberattacks due to digitization, it advised BSFIs to remove fees and charges for using online banking or e-money and to implement adequate strategies to accommodate the growing demand for digital channels.

BSP Governor and Financial Stability Coordination Council (FSCC) Chairman Eli M. Remolona, Jr. (third from left) led the launch of the 2023 Financial Stability Report (FSR) at the BSP head office in Manila last Feb. 13. Also in photo are members of the FSCC Executive Committee, namely (from left) SEC Commissioner Kelvin Lester K. Lee, PDIC President Roberto B. Tan, SEC Chairman Emilio B. Aquino, PDIC Senior Vice-President Sandra A. Diaz, and FSCC Technical Secretariat Head and BSP Senior Assistant Governor Johnny Noe E. Ravalo. — Photo from bsp.gov.ph

Benjamin E. Diokno, who served as BSP Governor at the time, in his acceptance speech said: “The BSP continues to be front and center of the Philippines’ COVID-19 economic response by ensuring ample liquidity in the financial system, providing regulatory relief to banks and implementing policies to assist Filipino businesses and households weather and recover from the crisis.”

Towards a shared prosperity

In a speech in March, BSP Governor Eli M. Remolona, Jr. noted three challenges the BSP is facing this year: the challenge of monetary policy, digitization, and deepening the country’s capital markets.

The central bank head addressed the complexities of managing monetary policy in an economy increasingly affected by supply shocks. Unlike the past, today’s economy faces frequent disruptions from oil, food, and fertilizer price surges. These shocks have driven inflation to peak at 8.7% in January 2023, the highest in 14 years, although it has since been reduced to 3.4% due to effective monetary measures. Mr. Remolona emphasized the challenge of managing second-round effects, where initial price hikes lead to broader inflation that is much slower to recede. He hopes that by targeting inflation within a 2%-4% range, the central bank has anchored expectations, making these persistent second-round effects easier to handle.

Monetary Board Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. (fourth from left) leads the ceremonial toast of the annual reception for the banking community hosted by the BSP at the Fort San Antonio Abad in Manila last January. — Photo from bsp.gov.ph

In addition to stabilizing inflation, Mr. Remolona outlined ambitious plans to further the BSP’s plans to digitalize the country’s banking and payment systems, with key initiatives like the Open Finance Framework, which enables banks to use APIs (application programming interfaces) for better service integration, and the promotion of digital banking despite cultural hurdles in loan collection.

“Open finance means working with application programming interfaces (APIs). These platforms connect you to other financial services and connect your customers to other financial services. Then, you have to figure out how to integrate that platform into your system,” he said.

“But banks now are working with 50 [to] 100 APIs doing many different things,” he continued. “Our role here is to make sure that when you use your customers’ data, you use it with their permission. They still own the data; you do not own that data. Your customers own their data and want to ensure that when you use that data with APIs or other platforms, you get their permission first, and then you can do whatever you like.”

BSP Assistant Governor Arifa Ala (center), one of WOMANi’s “Most Influential Women in Islamic Business and Finance,” receives award from (from left) Professor Humayon Dar, chairperson of the WOMANi Programme and director-general of the Cambridge Institute of Islamic Finance, and Pakistan’s Finance Minister Dr. Shamshad Akhtar. — Photo from bsp.gov.ph

He also noted that a regulatory sandbox will allow innovators to test new concepts with regulatory guidance, minimizing uncertainties. He also acknowledged the growing influence of generative AI, advocating for human oversight to prevent errors.

“The regulator is there to help you and tell you what the regulatory implications might be if you succeed. We are not there to judge whether you will succeed or not. We are just there to help you. If you grow, you know what you are getting into regarding regulations. It is about minimizing regulatory uncertainty. If you have a new idea, enter a sandbox. We will assign you a regulator. We will scold you, ‘Bawal ’yan’ (‘That’s not allowed’); but that is for your own good.”

Mr. Remolona highlighted efforts to extend digital payments to the unbanked through e-wallets and simplified accounts, aiming to integrate more people into the formal financial system. He also introduced Project Nexus, an ASEAN initiative to connect fast payment systems across member countries by 2026, facilitating efficient cross-border remittances.

Turning to capital markets, he stressed the need for a reliable benchmark yield curve to enhance liquidity and stability. He proposed adopting a swaps curve, which has proven effective in Europe, to address existing market issues.

For another measure, he called for a more inclusive corporate bond market, urging for a range of credit ratings beyond predominantly triple-A issues. Furthermore, the central bank governor discussed the importance of attracting passive investment flows by resolving barriers such as withholding taxes and improving the country’s inclusion in major global indices.

Mr. Remolona’s vision is clear: adapt monetary policy to manage supply shocks effectively, digitalize the financial system to enhance inclusion and efficiency, and deepen capital markets to attract diverse investments. His strategic approach aims to fortify the Philippine economy against future challenges while fostering sustainable growth and financial innovation. — Bjorn Biel M. Beltran

Supporting local farmers through art: New exhibit at airport hotel showcases coffee artists

Pinang by Esang B. Ocampo and Ifugao Dance II by Rens E. Tuzon

“HOW can we propagate Philippine culture and arts?” was the question posed by Rens E. Tuzon, the pioneer of coffee art in the Philippines, when he first began making paintings from coffee grounds in 2005.

“Kahit sobrang yaman natin sa pamana ng lahi, sobrang nawawala na ito ngayon (Even if we have an abundance of cultural heritage, it has been disappearing over time),” he said.

This realization drove Mr. Tuzon to start the Sining, Kape, at Kultura, an organization of artists whose coffee-based paintings and various artworks about pop culture and Philippine heritage go viral online and get sold all over the country — with proceeds going to local coffee farmers.

The group’s latest exhibit is “HIRAYA: Kape, Sining, Kultura,” launched on June 24 at the Megaworld property Belmont Hotel Manila.

“Coming from two successful shows in our “HIRAYA” exhibition series so far, we thought something different to showcase was coffee art,” Socrates “Sonny” Alvaro, the general manager of Belmont Hotel Manila, said at the exhibit opening.

The exhibit features two of the country’s best known coffee artists and the founders of Sining, Kape, at Kultura: Mr. Tuzon and Esang Ocampo. Their works are on view in the lobby of the hotel.

Because the hotel is strategically connected to Terminal 3 of the Ninoy Aquino International Airport through the Runway Manila footbridge, the exhibit will be seen by both local and foreign travelers.

“These coffee artists’ advocacy is aligned with our vision as a homegrown brand centered on local culture,” said Mr. Alvaro.

According to Ms. Ocampo, an upcycling artist, much joy lies in creating and seeing beautiful works come from things that were meant to be thrown away — old jewelry, scraps of cloth, any broken material at home.

“I started during the pandemic when we were all locked up at home. I began reusing items at home to paint my artworks,” she told BusinessWorld. This then led her to go to a coffee shop to obtain some coffee grounds that they were about to throw away. “Pinatuyo ko at nilagay ko sa mga obra ko (I dried them and added them to my works).”

Mr. Tuzon and Ms. Ocampo established their organization of Filipino coffee artists in the Philippines in 2020. It now boasts of 800 members. By raising awareness of coffee art and upcycling, they also promote Filipino culture and support coffee farmers.

Their art often centers on distinctly Filipino images — women in Filipiniana dress, scenes of Igorots by their huts, children playing palo sebo, images of the Virgin Mary.

Proceeds from the sale of the artworks will help farmers in Negros, Laguna, and Cavite purchase coffee seedlings. — Brontë H. Lacsamana

Senior cardinal asks Vatican to stop displaying art by priest accused of abuse

ONE of the mosaics created by Father Marko Ivan Rupnik in Lourdes. — GUIDE-TOULOUSE-PYRENEES.COM

VATICAN CITY — A prominent cardinal has asked Vatican authorities to stop displaying the artwork of a Jesuit priest accused of abusing nuns and other women, to avoid a suggestion of indifference to the victims’ suffering.

Father Marko Ivan Rupnik, whose mosaics adorn about 200 churches and chapels around world as well as the Vatican, was expelled from the Jesuit order last year.

About 20 people, mostly former nuns, have accused him of various types of abuse, either when he was a spiritual director of a community of nuns in Slovenia about 30 years ago or after he moved to Rome to pursue his career as an artist.

He has not commented on the allegations, which the Jesuit Order said last year were “very highly” credible.

Five women who accused Mr. Rupnik of sexual and psychological violence had asked bishops around the world to remove his mosaics from churches to avoid offending the feelings of the faithful.

“Pastoral prudence would prevent displaying artwork in a way that could imply either exoneration or a subtle defense” of alleged perpetrators of abuse, the president of the Pontifical Commission for the Protection of Minors, Cardinal Sean O’Malley, said in a letter to Vatican officials.

“We must avoid sending a message that the Holy See is oblivious to the psychological distress that so many are suffering.”

The letter dates from last Wednesday but was published on Friday after the lawyer of some of Mr. Rupnik’s alleged victims questioned the appropriateness of keeping his artworks in places of worship, causing possible disturbance to the faithful.

The lawyer said in a letter addressed to more than 80 bishops from various dioceses that some women were abused during the creation of the mosaics, when posing as models or participating in the installation of the artworks.

The head of the Vatican’s Dicastery for Communication, Paolo Ruffini, opposed the removal of the artist’s works, considering that was not the right way to help the victims.

“I don’t think we have to throw stones, thinking it is the way of healing someone,” Mr. Ruffini said last week at a Catholic media conference, whose video footage was obtained by The Pillar. “The Christian faith is saying other things.”

Still, some dioceses are considering the possible removal of the Jesuit priest’s paintings, including Lourdes, where a mosaic by Father Rupnik adorns the façade of the Basilica of Our Lady of the Rosary. A decision is expected shortly. — Reuters

Overcoming economic challenges under a proactive leadership

The Bangko Sentral ng Pilipinas (BSP) and the Deutsche Bundesbank formalized their partnership on capacity-building for BSP personnel through a Memorandum of Understanding (MoU) signed last January. BSP Governor Eli. M. Remolona, Jr. (second from right) and Deutsche Bundesbank Executive Board Member Burkhard Balz (second from left) led the signing of the Memorandum of Understanding on Technical Cooperation between the two central banks, and they were joined by BSP Capacity Development Department Director Iñigo L. Regalado III (rightmost) and Deutsche Bundesbank Director for International Central Bank Dialogue Martin Dinkelborg (leftmost). — Photo from bsp.gov.ph

The Bangko Sentral ng Pilipinas (BSP) persists in aiming to promote and maintain a strong financial system while supporting sustainable and inclusive economic growth.

Since assuming office in July 2023, the leadership of Bangko Sentral ng Pilipinas (BSP) under Governor Eli Remolona, Jr. has brought about significant policy developments and achievements to this regard, shaping the financial and economic landscape of the Philippines.

Particularly, the governor has steered the BSP towards digitalization, financial stability, and sustainability in the financial sector.

Path towards economic recovery and resilience

BSP Governor Eli M. Remolona, Jr. (right) welcomes Her Majesty Queen Máxima of the Netherlands, in her capacity as the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development during her arrival at the Ninoy Aquino International Airport last May 20. Queen Máxima was in the Philippines for a three-day visit to promote financial inclusion and financial health. — Photo from bsp.gov.ph

During the meeting of the Monetary Board on the Monetary Policy Stance on December 2023, Mr. Remolona and the Monetary Board decided to maintain the current policy interest rate at 6.50% for the target reverse repurchase (RRP) rate, as well as the current interest rates on the overnight deposit facility at 6.00% and overnight lending facility at 7.00%.

The decision was driven by the need to keep monetary policy settings sufficiently tight to allow inflation expectations to settle more firmly within the government’s target range. Through the BSP’s inflation-targeting framework, headline inflation has been brought down to 3.9% as of December 2023, from a high of 8.7% in January 2023.

Furthermore, the balance of risks to the inflation outlook remained significantly skewed to the upside from 2023 through 2025, with the latest risk-adjusted inflation forecast for 2024 had declined to 4.2% from 4.4% in the previous meeting.

In April 2024, inflation increased slightly from 3.7% in March to 3.8%, primarily due to a higher year-on-year rise in the prices of food and non-alcoholic beverages. The increase in food inflation was driven by higher prices for vegetables and fish, which had shown negative inflation readings in March.

At the same time, non-food inflation remained relatively stable, as higher gasoline and diesel prices, reflecting the rise in international crude oil prices in April, were balanced out by lower inflation in important categories such as housing, water, electricity, gas, and other fuels, as well as restaurants and accommodation services.

On a month-on-month seasonally adjusted basis, headline inflation slowed down to 0.2% in April from 0.3% in March.

According to the BSP, inflation is likely to remain elevated in the coming months due to the continued impact of supply shocks on food prices and the rise in global oil prices.

As a result, Mr. Remolona emphasized the importance of maintaining adequately tight monetary policy settings until inflation expectations were firmly anchored and inflation had reverted to the target range.

Despite the challenges posed by global economic headwinds and tighter financial conditions, the BSP has remained committed to steering the Philippine economy towards sustained growth and stability.

In the first quarter of 2024, the gross domestic product (GDP) posted a year-on-year growth of 5.7%, although slightly below the government’s target range of 6%-7%. Demand indicators, such as the manufacturing sector’s capacity utilization and the composite purchasing managers’ index, suggest that the economy is still expanding.

On the other hand, preliminary data showed that outstanding loans of universal and commercial banks, net of reverse repurchase placements with the BSP, increased by 7.2% year on year, slightly lower from the 7.7% in July. On a month-on-month seasonally adjusted basis, outstanding universal and commercial bank loans, net of RRPs, grew by 0.6%.

Consumer loans to residents remained relatively steady at 22.7% in August compared to 22.6% in July, driven by growth in credit card and motor vehicle loans, while outstanding loans to non-residents increased by 7.8% in August, up from 6.2% in the previous month.

Meanwhile, the BSP, through the Financial Stability Coordination Council (FSCC), has approved a comprehensive set of measures to bolster the resilience of the Philippine financial system. These initiatives are designed to enhance communication, strengthen capital and contingent markets, and improve risk assessment tools and data management to proactively mitigate potential systemic risks.

The FSCC believes that current market behavior in 2024 is aligned with a “risk on” stance which will nurture more economic activity. Mr. Remolona expects an increase in the funding requirements of corporations during this “risk on” phase.

In a statement, the FSCC chairman and BSP governor stated that “an active corporate bond market will benefit financial market stakeholders by widening access to funding for all credit categories of borrowers, expand opportunities for investors of different risk appetite, and better manage risks for all.”

The Philippines’ gross international reserves (GIR) have remained at healthy levels throughout 2024, providing a strong buffer against external shocks. According to data from the BSP, the GIR settled at $102.7 billion as of the end of February 2024. This figure increased to $104 billion by the end of March 2024.

The GIR level represents over 7.7 months’ worth of imports of goods and payments of services and primary income, which is well above the conventional adequacy threshold of three months. The reserves are also about 6.1 times the country’s short-term external debt based on original maturity, and 3.7 times based on residual maturity.

The rise in the GIR level was due to various factors, including the National Government’s net foreign currency deposits with the BSP, as well as the upward valuation adjustments in the value of the BSP’s gold holdings because of the increase in international gold prices. The central bank’s net income from its overseas investments also contributed to the growth in reserves.

BSP Governor Eli M. Remolona, Jr. and BAIPHIL President Racquel B. Mañago shake hands after signing a Memorandum of Understanding (MoU), covering collaboration on productivity enhancements for banks through research, information, and education. Also present at the MoU signing were BSP Senior Assistant Governor and General Counsel Elmore O. Capule and BAIPHIL Second Vice-President Shirley G. Felix. — Photo from bsp.gov.ph

With healthy GIR levels, the country is better positioned to address potential external vulnerabilities and maintain confidence in the management of the country’s external obligations.

Strengthening the financial system

Mr. Remolona emphasized the need to ensure the Philippine banking system remains healthy, with strong balance sheets, profitable operations, and sound performance indicators. With the support of the banking community and other stakeholders, the central bank aims to build on its legacy as a source of stability for the economy.

The Financial Sector Forum (FSF), composed of the BSP, Securities and Exchange Commission (SEC), Insurance Commission (IC) and Philippine Deposit Insurance Corp. (PDIC), continues to coordinate and exchange information for effective financial sector regulation while respecting each agency’s mandate.

As the new chairman of the FSF, the key areas under his leadership will include financial conglomerate supervision, sustainable finance, information exchange, financial technology, and consumer protection and education. Furthermore, the introduction of a local sustainable finance taxonomy for climate change mitigation and adaptation further highlight the BSP’s commitment to sustainability and green finance.

Meanwhile, Mr. Remolona has also highlighted the BSP’s sustainability initiative, emphasizing the need to infuse it with an inclusion perspective. The goal is to ensure the entire financial system supports an inclusive adaptation program, so the burden of transition does not fall on the most vulnerable segments of society.

The BSP governor also expressed his support in micro, small, and medium enterprises (MSMEs). With MSMEs accounting for 99.6% of business establishments, 36% of gross value-added, and 65% of total employment in the country, the BSP targets to encourage inclusive growth and financial resilience for the sector through the National Strategy for Financial Inclusion 2022-2028.

Digitalization and financial inclusion

Photos (from left) show BSP Governor Eli M. Remolona, Jr. at the World Economic Forum sessions on “Technology and Innovation in Financial Services: Balancing Promises and Risks;” “Financial Health: Key to Empowerment and Sustainable Development” with Queen Máxima of the Netherlands, the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development; “Building ASEAN’s Regional Integration through the Digital Economy” with Indonesian Finance Minister Sri Mulyani; and “Insights over Lunch: Forecasting the Economy in 2024.” — Photo from bsp.gov.ph

Parallel to the BSP’s financial inclusion mandate, the central bank is harnessing digital technology to empower traditionally underbanked sectors.

During the Philippine Economic Briefing (PEB) on Dec. 11, 2023, Mr. Remolona highlighted key initiatives the BSP is pursuing to digitalize the financial sector, such as open finance, digital banking, and regulatory sandbox.

Open Finance Framework enables established banks to work with application programming interfaces (APIs) to connect with other financial services and integrate them into their systems.

Part of the BSP’s three-year Open Finance Roadmap 2021-2024, which emphasizes capacity-building, industry-accepted standards and a robust regulatory framework, the framework can help reduce transaction costs and enable the customization of products to meet evolving customer needs.

The BSP has also recently introduced a framework for “digital banks” as a separate classification of banks. The aim is to improve the efficiency of delivering financial products and services and expand their reach to unserved and underserved market segments.

However, the BSP governor has acknowledged that digital banks are encountering challenges with their online lending activities. According to him, it seems “very hard to make loans online” and “very hard to collect on loans online” in the Philippine context.

In response, the BSP is currently limiting the number of digital banking licenses to six, enabling the central bank to closely monitor the industry and consider whether to open up the market to more players with different business models.

Meanwhile, the BSP has established Regulatory Sandbox Framework to foster responsible innovation and promote the development of an inclusive digital financial ecosystem.

Mr. Remolona said, “We want to make sure that this digitalization will result in better and more products that respond to the needs of clients, help them manage their finances, and enable them to seize economic opportunities.”

The BSP also pushes for greater financial inclusivity, including advocating for more banks to remove fees on small-value digital transfers under P1,000. In fact, the central bank considers digital payments as the “gateway to financial inclusion” as online platforms can ease more Filipinos into the financial system.

In a statement, Mr. Remolona emphasized the importance of a proactive and collaborative approach to economic stewardship through innovation and resilience to ensuring sustainable economic growth and financial stability in the Philippines.

“I hope that through the initiatives which we will put into play in collaboration with the banking industry, the BSP will be able to contribute to a brighter and better future for our countrymen,” he added. — Mhicole A. Moral

Budget airline Cebu Pacific commits to P1.4-trillion Airbus purchase

CEBUPACIFICAIR.COM

By Ashley Erika O. Jose, Reporter

BUDGET CARRIER Cebu Pacific (CEB) has agreed to buy up to 152 A321 new engine option (NEO) aircraft from European planemaker Airbus, valued at P1.4 trillion or $24 billion, marking the largest aircraft order in the Philippines.

“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Cebu Air Chief Executive Officer Michael B. Szucs told the stock exchange on Tuesday. 

The airline, operated by Cebu Air, Inc., did not specify a timeline for the arrival of its aircraft order, as the agreement with Airbus is expected to be finalized in the third quarter.

The budget carrier said that it has selected Pratt & Whitney GTF engines to power the aircraft, despite previously reported issues with the engine manufacturer. The agreement will include orders for up to 102 A321neo and 50 A320neo aircraft.

According to Airbus’ website, the A321neo is the aerospace company’s longest-fuselage aircraft, capable of seating up to 244 passengers.

Meanwhile, the A320neo is touted as Airbus’ “most comfortable” short-to-medium-haul aircraft, accommodating a maximum of 194 passengers.

Airbus’ NEO aircraft is known for its enhanced fuel efficiency, representing the latest generation of Airbus planes designed to be highly compatible with sustainable aviation fuel (SAF).

Currently, all Airbus aircraft are certified to operate with up to a 50% SAF blend, aligning with Cebu Pacific’s goal of integrating green fuel across its network.

“When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story,” Mr. Szucs said. 

With the purchase, Cebu Pacific will more than double its current fleet. Currently, the budget carrier operates a fleet of 73 Airbus and ATR aircraft.

The airline currently serves 35 domestic and 24 international destinations across Asia, Australia, and the Middle East.

Cebu Air reported a P2.24 billion attributable net income for the first quarter, more than doubling last year’s P1.08 billion.

First-quarter revenues surged to P25.3 billion, representing a 21.2% increase from P20.88 billion previously.

The airline previously said that its aircraft order would enable it to increase capacity and passenger volume.

For the first quarter, Cebu Pacific’s passenger revenues increased to P17.83 billion, up by 24.8% from the P14.29 billion a year ago, due to the overall increase in travel demand.

The company saw a significant increase in its passenger volume to a total of 5.5 million in the first three months of the year from only 4.8 million previously.

“Good that CEB is expanding. It will improve revenues and in line with increased tourism also,” BDO Capital & Investment Corp. President Eduardo V. Francisco said in a Viber message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said Cebu Pacific’s move is a strategic decision to cater to its service and route expansion plans. 

“This entails substantial capital expenditure and potential financing hurdles, still it can be viewed to offer long-term benefits such as improved operational efficiency, reduced costs, and enhanced market position,” Mr. Limlingan said.

He said the move, though requires significant capital expenditure and “potential financing hurdles,” could offer long-term benefits as it is set to enhance the company’s operational efficiency. 

“This move is likely to boost investor confidence by signaling growth potential, though its impact on profitability will depend on successful execution and broader macroeconomic backdrop,” he added.

For her part, First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message: “Definitely positive for long-term P&L (profit and loss) and growth  outcome.”

Aside from the recently signed aircraft order, Cebu Pacific is also expecting to receive 17 aircraft in 2024.

Last month, Cebu Pacific said it had received its turboprop aircraft, marking its sixth aircraft delivery for the year.

At the local bourse on Tuesday, shares in the company gained 10 centavos or 0.37% to end at P27.20 each.

Arts & Culture (07/03/24)

Fil-Am sisters hold talk on writing and migration

FILIPINO-American sisters Grace and Mary Talusan, born in the Philippines, and Liza, born in the USA, grew up in America and seldom returned “home,” a word their migrant parents used interchangeably to mean Manila, where their clans lived. Despite the physical and temporal distances from their extended families and their ancestral lands, the sisters became scholars, professors, and authors whose work engages with the histories, cultures, and lived experiences of the Filipino diaspora. In a book talk and facilitated discussion, they will introduce their research and books — love letters to the home they moved from, but never truly left. The talk is presented by the Filipinas Heritage Library (FHL). It will be held on July 6, 2 p.m., in Function Room 1 of the Ayala Museum, Greenbelt, Makati. Tickets — P300 for regular tickets, P240 for Ayala employees, P210 for senior/PWD, and P150 for students — are available at bit.ly/fhl-lovelettershome. Proceeds will support FHL’s educational programs.

Philippine Ballet Theatre presents Sarimanok

THE BEAUTY of Philippine heritage takes center stage with Sarimanok, a legend that comes alive through dance. The Philippine Ballet Theater presents this original full-length Filipino ballet which narrates the tale of a mythical bird that saves the day, fostering love’s bloom. There will be performances on July 6, at 3 and 8 p.m., and July 7, at 3 p.m., at the Samsung Performing Arts Theater at Circuit Makati. Tickets, priced from P350 to P2,500, are now available through Philippine Ballet Theatre at secretariat@pbt.org.ph or 0968-870-8887.

Arturo Luz exhibit at Megamall

“STREAMLINED: The National Artist ARTURO LUZ Exhibition” is ongoing at the Art Center of SM Megamall Bldg. A until July 13. The Renaissance Art Gallery presents the exhibition of the National Artist’s works which demonstrate the primary virtues that distinguished Arturo Luz from the rest of his contemporaries: linear and geometric, minimalist in conception, and executed with technical skill and finesse.  All the works are authentic and original, supplied with written and visual documentation.

ARTablado at Robinsons Galleria showcases sisters

SISTERS Bettina Marie and Maita Hagad are the focus of a dual display of creativity at the ARTablado in Robinsons Galleria. Hailing from Bacolod City, the two multi-disciplinary artists’ combined skills include painting, sketching, sculpture, fashion design, fashion styling, photography, videography, print making, textiles, and installation art. Bettina Hagad works as a freelance artist and fashion designer while Maita Hagad is a designer, artist, and dancer. Their duo exhibit, “These Objects Walk, Not Run,” runs until July 15 at ARTablado in Robinsons Galleria in Ortigas, Quezon City.

Ateneo Art Gallery launches outdoor installation

THE ATENEO Art Gallery presents the interactive, ephemeral, and experimental outdoor installation Portals by artists Ged Merino and Aze Ong. Part of the GedAze Project, it features a fabric canopy composed of varied fiber and fabric textures, with holes and openings incorporated in its design, all reflecting and symbolizing interconnectedness, hope, and transformation through shared human experience. The artists aim to challenge the boundaries of textile through atypical approaches. The installation is open to contributions from the public. Crochet enthusiasts are encouraged to place their contributions in the designated drop box or to approach museum staff. The installation can be found at the Wong Chu King Foundation Cove, Ateneo College Batch 1980 cove, and Eli and Elizabeth Hubahib Cove at the Ignacio B Gimenez Amphitheater, Areté, Ateneo de Manila University, Quezon City. The installation is open to the public.

Leslie de Chavez exhibition opening at MO_Space

TWO galleries at MO_Space will be exhibiting art by Leslie de Chavez. These are “As Judas receives the bread from Christ, a small black devil is shown entering his mouth” at the Main Gallery, and “Placebo Paintings” at Gallery 2. The artist presents a tableau that re-examines the (dys)functionality of our image/object-inundated world in the instigation of pertinent yet elusive everyday socio-political narratives. It is open for public viewing from July 6 to Aug. 4 at MO_Space, at the 3rd level of MOs Design, B2 Bonifacio High Street, 9th Avenue, BGC, Taguig.

New book focuses on 1990s music scene

THE BOOK Tugtugan Pamorningan: The Philippine Music Scene (1990-1999) by Susan Claire Agbayani has been published by the University of the Philippines Press. It chronicles the reinvention of Pinoy rock, the ethnic music movement, and the rise of Philippine theater all in the 1990s. It is a love letter to a music-loving culture full of gigs and concerts, and can be ordered directly from the UP Press, or via Shopee or Lazada.

2024 Good Design Award PHL gives 32 awards

THE DEPARTMENT of Trade and Industry-Design Center of the Philippines has awarded outstanding designs at the recently held 2024 Good Design Award Philippines. The Malasakit Gran Prix Award winner was the First United Building in Escolta, Manila, which “embodies the power of restoration and adaptive reuse in driving urban regeneration.” Originally the Perez-Samanillo Bldg., the Art Deco landmark designed by Andres P. Luna (son of the painter Juan Luna) was Manila’s tallest building in 1928. It has now transformed into a vibrant hub for creative communities. The Philippine Textile Table Swatchbook of ANTHILL Fabric Factory also received the Gold Award for “showing indigenous Philippine fabrics through storytelling narratives and interactive features.” Among those recognized for design that creates social impact was Lakat Sustainable Sneakers which was given the Red Award under the Object Making category. It also received the Green Award, a special accolade given to projects, products, and services that represent the highest level of sustainable design. This year, a total of 32 awards were given out across five categories.

Okada scraps plan to buy Dennis Uy’s Cebu casino

By Revin Mikhael D. Ochave, Reporter

OKADA MANILA operator Tiger Resort Leisure & Entertainment, Inc. (TRLEI) has ended talks to acquire a majority stake in Dennis A. Uy’s Emerald Bay integrated resort project in Mactan, Cebu.

Uy-led listed company PH Resorts Group Holdings, Inc. announced in a stock exchange disclosure on Tuesday that its subsidiary PH Travel and Leisure Holdings Corp. received a letter from TRLEI on July 1, terminating the term sheet for the deal entered into in December last year.

TRLEI is the third group that withdrew its investment plan in the Emerald Bay project, following Razon-led integrated resort operator Bloomberry Resorts Corp. and Cebu-based property developer AppleOne Properties, Inc.

The term sheet contained the basis for TRLEI to acquire a “significant majority ownership” in PH Travel subsidiaries Lapulapu Leisure, Inc. and Lapulapu Land Corp., which are the entities that operate the Emerald Bay Project.

The parties were originally scheduled to execute the agreements under the term sheet in July.

TRLEI is the Philippine unit of Japanese gaming firm Universal Entertainment Corp., while PH Resorts is the gaming and tourism holding company of Mr. Uy’s Udenna Group.

PH Resorts President Raymundo Martin M. Escalona said the company would meet with other parties that have shown interest in the Emerald Bay project.

“We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition. Nevertheless, this development shall give PH Resorts the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay Project, but have been unable to formalize due to the restrictions under the TRLEI deal,” he said.

“We assure our shareholders and stakeholders, however, that the company’s management is already working towards another transaction, be it an acquisition, joint venture, or otherwise, that will ensure the completion of the Emerald Bay Project,” he added.

Emerald Bay is a planned integrated resort with a five-star hotel adjacent to 300 meters of beachfront, with two 15-storey towers offering 642 rooms, four pools, 18 food and beverage outlets, retail spaces, conference and exhibition facilities, and a large-scale gaming floor with over 700 electronic gaming machines and over 140 tables.

Sought for comment, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message: “Clearly there is something undesirable in PH Resort’s books, as this is the third bail-out attempt to fall through.”

“I think at this point, it’s doubtful that PH Resorts can secure a partner unless it lowers its asking price,” he added.

BusinessWorld sought comments from TRLEI and Okada Manila but had not received a response as of the deadline.

For the first quarter, PH Resorts widened its net loss to P246.92 million from the P212.31-million net loss in the same period last year due to a P10.2-million foreign exchange loss. 

The company recorded an 87.2% increase in its first quarter revenue to P11.9 million from P6.35 million in 2023. Operating expenses fell by 4% to P34.6 million due to lower salaries and wages.

“Pursuant to the provisions of the term sheet, LapuLapu Leisure received partial nonrefundable payments from TRLEI totaling P327.6 million and P300.1 million as of March 31, 2024 and Dec. 31, 2023, respectively. These are presented as part of advances for future stock subscription under Liabilities in the consolidated statement of financial position as of March 31, 2024,” PH Resorts said in the regulatory filing. 

On Tuesday, PH Resorts shares fell by 19.44% or 14 centavos, ending at 58 centavos per share. 

Britain’s Ian McKellen will not return to role after stage fall

IAN MCKELLEN in a scene from Player Kings. — PLAYERKINGSTHEPLAY.CO.UK

LONDON — British actor Ian McKellen, 85, will not return to the role of John Falstaff in a tour after he fell off a London stage mid-performance last month, the play’s producers said on Monday.

Mr. McKellen was starring in Player Kings, a production of William Shakespeare’s Henry IV, Parts One and Two, in the capital’s West End theater district, on June 17 when he lost his footing and fell off the front of the stage during a fight scene.

The actor, who is best known for playing Gandalf in the film versions of Lord of the Rings and The Hobbit and was also Magneto in the X-Men movies, was taken to hospital.

“Two weeks after my accident onstage, my injuries improve day by day,” he said in a statement.

“It’s with the greatest reluctance that I have accepted the medical advice to protect my full recovery by not working in the meantime.”

David Semark, Mr. McKellen’s understudy who completed the run in London, will play the role in Bristol, Birmingham, Norwich, and Newcastle, producers said.

Mr. McKellen’s stage career stretches back to 1961, where his credits include playing Richard III, King Lear, and Macbeth. — Reuters

Tracking BSP’s efforts of digitalizing the Philippine economy

BSP South Luzon Regional Director Tomas D. Cariño, Jr. (fourth from left) and Legazpi City Mayor Carmen Geraldine B. Rosal (fifth from left) led the launching of Paleng-QR Ph Plus at the City of Legazpi’s public market on June 13. Also in photo are (from left) Councilor Alexander U. Jao, BSP Area Director Alvin L. Bermido, Vice-Mayor Oscar Robert H. Cristobal, market-goer Gloria Baynado, and DILG Regional Director Arnaldo E. Escober, Jr. — Photo from bsp.gov.ph

Leveraging emerging and innovative technologies is driving the Philippines towards a more digitalized economy, beginning with the banking and financing sectors.

Everything comes easy with digital banking; financial services are made more accessible, convenient, and perhaps most importantly, financially inclusive. The country’s successful digitalization has brought many benefits and a sizeable impact in consumer’s lives.

So much that the Bangko Sentral ng Pilipinas (BSP) is pushing the banking sector to the forefront of digitalization, promoting banks and financial institutions as crucial enablers for digital transformation and financial inclusion.

“We want to make sure that this digitalization will result in better and more products that respond to the needs of clients, help them manage their finances, and enable them to seize economic opportunities,” Eli M. Remolona, Jr., BSP Governor said last year.

To better facilitate the digitalization of the banking system, the BSP introduced various initiatives on digital banking, such as open financing, a regulatory sandbox, and some measures on generative artificial intelligence (AI).

Open finance

(From left) Department of the Interior and Local Government Regional Director Leocadio T. Trovela, City of Mandaue Mayor Jonas C. Cortes, BSP Officer-in-Charge for Financial Inclusion and Consumer Empowerment Sub-Sector Atty. Charina B. De Vera-Yap, and market vendor Cristina Mosqueda at the Mandaue City Public Market — Photo from bsp.gov.ph

In a speech he made in March, Governor Remolona Jr. recently outlined the central bank’s strategy to digitalize the financial system, emphasizing four key initiatives. The first initiative, the Open Finance Framework, encourages established banks such as BPI, BDO, and Metrobank to participate in an open finance ecosystem, which will utilize application programming interfaces (APIs) to connect various financial services, ensuring that customer data is used with explicit permission, thereby respecting data ownership.

“We are advocating open finance, particularly in the area of financial health. Open finance facilitates consent-driven sharing of customer data among financial institutions and third-party providers. It also gives customers more access and more choices when it comes to financial services,” he said in a separate speech in June.

“We believe that open finance holds significant potential to extend the reach of financial inclusion. It will do by fostering innovations in financial services. At the center of open finance is the customer who must be served and protected at all times. This is why we, at the BSP, are implementing our financial consumer protection framework. This would ensure that the rights and needs of consumers always comes first and that their trust and confidence in the financial system is preserved.”

The second initiative focuses on digital banking, aiming to facilitate online deposit raising and loan issuance. While raising deposits online is relatively straightforward, the collection of loans presents challenges due to cultural preferences for personal interaction. Currently, the BSP has limited digital banking licenses to six but may consider expanding this to diversify business models and stimulate industry excitement.

Regulatory sandbox and digital payments

The BSP and the Department of Trade and Industry (DTI) formally sealed their partnership for the conduct of the country’s first Cashless Expo. BSP Deputy Governor Mamerto E. Tangonan (left) signed the Memorandum of Agreement on the Cashless Expo with DTI Assistant Secretary Mary Jean T. Pacheco (right) last October. The Cashless Expo was held from Nov. 17 to 19 at the World Trade Center in Pasay City. — Photo from bsp.gov.ph

The central bank governor also highlighted the BSP’s regulatory sandbox, a controlled environment where fintech innovations can be tested with regulatory oversight. This sandbox aims to minimize regulatory uncertainty, providing innovators with guidance on potential regulatory implications. The BSP supports these innovators by helping them understand the regulatory landscape they will face if their innovations succeed.

Finally, the BSP is actively promoting digital payment systems to serve the unbanked population. Initiatives like e-wallets and simplified deposit accounts aim to integrate more people into the formal financial system, providing access to credit, financial services, and investment opportunities.

The BSP addressed the integration of generative AI, such as ChatGPT, into the financial system. While he acknowledges AI’s potential, Governor Remolona stressed the importance of human oversight to prevent issues like hallucinations and herding. He emphasized that AI should be used responsibly to ensure accurate and useful outputs.

“If you have used ChatGPT, you know how irresistible it is. So, we do not even have to encourage it. You guys will do it without any encouragement, but of course, we have to think of guard rails for generative AI,” he said, speaking to financial executives.

“As you know, generative AI leads to what we call hallucinations; it imagines things that never happened. It leads to herding; it gives the same answer to different questions. So, we think that, for now, at least, when using generative AI, a human being should work with it and look at the answers before you decide. Apparently, it is not so hard to tell whether the answers are wrong.”

Governor Remolona also discussed Project Nexus, a collaborative effort by ASEAN central banks to enable fast and cost-effective cross-border retail payments. Expected to be operational by 2026, Project Nexus aims to facilitate remittances at low costs, enhancing financial connectivity across the region.

“Empowered by a shared vision of efficient and reliable cross-border payments, the collaboration between the BIS and ASEAN central banks has been rather effective, and I’d like this to continue. Central banks have always played a role in payments as a public good. With Nexus, this role will be extended to cross-border payments, maximizing the network effects. Thus, the Bangko Sentral ng Pilipinas (BSP) will continue to work with the Philippine payments industry, BIS and other interested countries towards its live implementation. We look forward to Nexus providing overseas Filipinos with a cheaper and faster means to send money to family back home, and facilitating the globalisation of Filipino small and medium scale enterprises,” Mr. Remolona said.

Through these initiatives, the BSP seeks to leverage technology to improve financial inclusion, ensure data privacy, foster innovation, and prepare for AI integration while maintaining regulatory oversight. The central bank’s comprehensive approach aims to create a more inclusive and efficient financial ecosystem, benefiting both consumers and financial institutions.

Prior to these initiatives, the BSP has developed innovations to promote a digital payment system that serves the unbanked, such as Paleng-QR PH Plus Program and Bills Pay PH.

Paleng-QR Ph Plus Program is a program that promotes the adoption of digital payments in public markets and other business establishments, particularly of small and medium enterprises.

Moreover, this program strives to facilitate smooth, convenient, and more accessible payment transactions between vendors and customers using digital devices. This initiative, which was done in partnership with the Department of the Interior and Local Government (DILG), aligns with its goal of promoting QR code technology, providing a secure and efficient way for payment transactions.

Bills Pay PH, meanwhile, is a payment system that allows their customers to pay their bills, giving users the option to pay their bills with or without an account of different payment service providers. Transactions can be made through QR code or non-QR code payment.

“We hope these will lead to people joining the formal financial system. They will have access to bank credit, other financial services, and eventually the whole financial ecosystem-access to investment instruments, access to the right kind of insurance, and so on,” Mr. Remolona said in a previous speech at the General Membership Meeting of the Financial Executives Institutes of the Philippines.

Digital literacy

Officials and staff from the BSP Visayas Regional Office replacing the public’s unfit banknotes from circulation by exchanging it with fresh bills or digital cash during the conduct of its Piso Caravan last year in SM Consolacion, Cebu and Robinsons Place, Tacloban City, Leyte — Photo from bsp.gov.ph

Committed to driving digital growth, BSP will continue its Digital Literacy program (DLP), which aims to promote financial education, increase adoption of financial services, and build more trust in the digital financial ecosystem. It further informs and educates consumers of digital banking and financing, protecting consumer welfare, and tips on avoiding frauds, scams, and minimizing risks.

BSP’s digital efforts is poised to shape the Philippines and its banking sector into a more digitalized economy. These initiatives are aligned with the central bank’s Digital Payments Transformation Roadmap, that aims to convert 50% of the country’s payment transactions to digital. This shows that the increasing demand and popularity of digital financial services and innovative solutions has created numerous market and economic opportunities that will continue to grow in the coming years.

“As the BSP continues to champion financial digitalization initiatives, everyone is called to join this journey of transformation. Let us work together in building an economy that is characterized by a robust, secure, and resilient digital financial infrastructure, with tech-savvy consumers and an innovation-embracing public sector,” BSP said in another statement.

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