GT Capital names Uy-Tioco, Jr. as new CFO

July 2, 2024 | 12:02 am

GT CAPITAL Holdings, Inc. has named George S. Uy-Tioco, Jr. as its new chief financial officer (CFO), effective Monday (July 1).

Mr. Uy-Tioco, Jr. assumes the CFO position following the retirement of Franciso H. Suarez, Jr., GT Capital said in a filing to the stock exchange on Monday.

Before joining GT Capital, Mr. Uy-Tioco, Jr. served as the corporate finance head of ING Bank N.V. Manila Branch from June 2021 to March 2024.

Prior to that, he held the position of head of mergers and acquisitions at BPI Capital Corp. from 2013 to 2021.

“Mr. Uy-Tioco, Jr. has a proven, robust finance and investment background with over 25 years of experience in investment banking, asset management, business development, and general management,” GT Capital said.

“He has handled key transactions on mergers and acquisitions, and possesses invaluable financial advisory experience across various sectors, including banking, energy, and telecommunications, among others,” it added.

GT Capital has interests in banking, automotive assembly, importation, dealership, and financing, property development, life and general insurance, and infrastructure.

On Monday, GT Capital shares dropped by 6.77% or P42, closing at P578 apiece. — Revin Mikhael D. Ochave

Bohol resort sees stricter approvals after Chocolate Hills public outcry

July 2, 2024 | 12:02 am

Chocolate-Hills-BOHOL.GOV — THE CHOCOLATE Hills in Bohol. — BOHOL.GOV.PH

THE local government of Bohol is enforcing stricter approval processes for new developments following the Chocolate Hills resort controversy, a resort owner said.

“They have been very strict… The Protected Area Management Board is very cautious, and I don’t think they have approved anything in terms of development in those areas,” Amarela Resort Corp. President Lucas M. Nunag told BusinessWorld on the sidelines of a Philippine Hotel Owners Association event on June 21.

According to the latest Philippine Hotel Investment Outlook Survey by Leechiu Property Consultants and the Philippine Hotel Owners Association, Bohol led with 41% of respondents showing interest in exploring hotel development.

The report attributed this to the province’s popularity, bolstered by its UNESCO (United Nations Educational, Scientific and Cultural Organization) Global Geopark status, proximity to Panglao airport, beaches, and high tourist volumes.

Additionally, Panglao ranked third among domestic destinations with 1,798 keys in development. Other notable locations include Metro Manila (39%), Cebu City (36%), Siargao (36%), and El Nido (34%).

In contrast to the famed resort, Amarela Resorts said it has received the ASEAN Green Hotel Award three times and holds the highest certification level in the Anahau Greenleaf Certification System.

Among Amarela’s green practices is an installed waste management system, addressing a common issue in island destinations: pollution, it said.

“We installed a biological wastewater treatment facility using the roots of plants in weeds but then, later on, we found out that the Department of Environment and Natural Resources is requiring more stringent measures,” Mr. Nunag said.

The resort, he also said, employs rainwater collection for landscape irrigation and uses a solar system to heat bathrooms and kitchens.

“The cost of solar panels has decreased. When calculating the return on investment, it’s approximately 3.5 years,” said Mr. Nunag, adding that their solar panels help reduce electricity expenses. — Aubrey Rose A. Inosante

TikTok spotlights LGBTQIA+ content creators’ personal journeys

July 2, 2024 | 12:02 am

THROUGH the influential short-form video platform TikTok, perspectives of lesbian, gay, bisexual, trans, queer, intersex, asexual plus (LGBTQIA+) Filipinos are now more visible in public. As a fitting end to Pride Month, five TikTok content creators laid out their life stories for more members of the community to hear and learn from.

Chrishanna Austria, known for her viral phrase “Forda Ferson” (for the person), is one of these social media personalities. It is the judgment of others that keeps one from living their true self, she said at the TikTok Pride Monologues, held on June 27 at The Fort Strip in Bonifacio Global City, Taguig.

“Marihap kapag hindi tanggap ng magulang (It’s difficult when your parents can’t accept it),” she explained, which happened after they discovered her early trauma with men and her first same-sex relationship in high school.

With acceptance being a process, Ms. Austria pointed out the gradual approval of her family of the six-year relationship she has had with her current girlfriend. They have a large community supporting them.

For Dan Laudit, a gay content creator known as “Mentor” for his entertaining and satirical videos, it took a long time to shed the Filipino belief that gays were weak.

“Dati kapag sinasabihan ka ng bakla, mahina ka. Tumatak sa akin iyon kaya tinatanggi ko pa (Back then, if people called you gay, it meant you’re weak. It left an impact on me so I would deny it),” he said.

He added that sexual orientation and gender identity and expression (SOGIE) is something to discover and “not something that should burden you.” Mr. Laudit found that it takes self-confidence and a strong support system to work through it.

Licensed psychologist Riyan Portuguez, who champions mental health awareness on TikTok under the moniker “Your Millennial Psychologist,” is another pillar of the online lesbian community. She recently partnered with the government’s ongoing “Rise Up” mental health program.

Suppression and denial are common coping mechanisms for young LGBTQ+ people who feel they need to excel at school or their talents to compensate for “being different,” she said at the forum.

“There are ‘conditions of worth’ that we use to prove that we deserve respect despite being who we are,” said Ms. Portuguez. “It’s a type of internalized homophobia. But we should know that we are enough, without having to compensate or prove ourselves.”

Sharing a similar view was Tots Carlos, a lesbian volleyball player who suffered the judgment of her family back in high school. It was in college that she finally felt that her value was “not diminished because of sexuality.”

“A support system is a major part of it, so I always try to surround myself with the right people,” Ms. Carlos explained.

Meanwhile, for those who are LGBTQ+ but have a more straight-passing gender expression, being true to oneself is a continuous process, said TikTok content creator Warren Daniel Osinago, known online as “Poca.”

“You don’t have to find who you are right now. You can work at your own pace, even if you’re surrounded by friends who are out. Be comfortable and celebrate while in the closet, still discovering yourself,” he said.

In agreement with Ms. Portuguez’s insights on shedding “suppression and denial,” the panel ended with a message of solidarity. “We can embrace being LGBTQIA+ together,” said Mr. Osinaga.

The five TikTok Pride representatives can be found at these handles: @chrishannaustria, @danlaudit, @yourmillennialpsych, and @totscarlos_, @warrendanielosinaga. — Brontë H. Lacsamana

Manufacturing Purchasing Managers’ Index (PMI) of select ASEAN economies, June 2024

July 2, 2024 | 12:02 am

PHILIPPINE MANUFACTURING activity in June expanded at its slowest pace in three months amid cooling demand, S&P Global said. Read the full story.

PHL net external liability position wider at end-March

July 2, 2024 | 12:02 am

THE PHILIPPINES’ net external liability position widened as of end-March, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The country’s international investment position (IIP) stood a net external liability of $59.3 billion at the end of March, 15.5% bigger than the net liability of $51.3 billion at the end of December 2023, the BSP said in a statement over the weekend.

“This development was driven by the 3.8% expansion in the country’s external financial liabilities, outpacing the 1.3% growth in external financial assets,” the central bank said.

The IIP is an indicator of the value and composition of a country’s financial assets and liabilities. It gauges an economy’s external exposure.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the wider net external liability position came amid increased lending and foreign investment flows into the country.

“This is also an inevitable part of a growing economy with more foreign investments and loans or credit, especially to finance various major infrastructure projects that have a bigger return to the country on an investment and developmental perspective,” he added.

Total outstanding external financial assets inched up by 1.3% to $244.5 billion from $241.4 billion in the previous quarter, central bank data showed.

“The country’s total stock of external financial assets rose due to the increase in the residents’ net portfolio investments, particularly in debt securities to $33.5 billion and direct investments in equity capital to $29.8 billion as of end-March 2024,” the BSP said.

Some 44% of the external financial assets are reserve assets held by the BSP, equivalent to $108.6 billion. Other sectors held $100.9 billion (41.2%) during the same period while banks kept $35.1 billion (14.3%).

Meanwhile, total external financial liabilities rose by 3.8% to $303.8 billion as of end-March from $292.8 billion in the quarter ago.

The BSP said the stock of external financial liabilities rose amid an increase in all components except for financial derivatives.

Net foreign portfolio investments (FPI) went up by 5.3% to $90.3 billion in the period, while net foreign direct investments (FDI) edged higher by 3.3% to $126.6 billion.

“The expansion in net FDI and FPI reflects investor confidence in the Philippine economy on the back of the country’s growth and improved domestic inflation dynamics,” the BSP said.

“Further, other investments, in the form of loans, rose by 3% to $74.7 billion from $72.5 billion, contributing to the rise in the total external financial liabilities of the country,” it added.

Other sectors accounted for 60.3% or $183.2 billion of the country’s total external financial liabilities at the end of March.

The rest were held by the National Government and banks, with financial liabilities worth $77.4 billion (25.5%) and $39.4 billion (13%), respectively.

The BSP held 1.3% of all external financial liabilities at $3.8 billion, which were mostly in the form of special drawing rights. — Luisa Maria Jacinta C. Jocson

De Lima’s acquittal does not show the PHL justice system works, it proves the PHL justice system was weaponized

July 2, 2024 | 12:02 am

President Ferdinand “Bongbong” Marcos, Jr. told reporters last Thursday that former Senator Leila de Lima’s acquittal in her last drug trafficking case showed that the country’s justice system is working. He said, “Maybe this is something we should show the ICC (International Criminal Court). The Judiciary is working properly. Our investigative services are working properly, and former Senator De Lima has been acquitted.”

The President said, “We still stay with our position that the ICC had no jurisdiction in the Philippines. We have a working police force, we have a working judiciary and do not require any assistance in that regard.”

Contrary to his gratuitous statements, the justice system is not working, our investigative services are not working properly as shown only recently.

On June 18, Caloocan City Regional Trial Court Judge Ma. Rowena Violago Alejandria handed down a decision that found four policemen guilty of homicide for the killing of Luis Saldana Bonifacio and his son Gabriel on Sept. 15, 2016 during an alleged illegal drug operation. Department of Justice (DoJ) Secretary Jesus Crispin Remulla lauded the conviction of the four policemen as “a testament to the government’s unwavering efforts.”

Kristina Conti, a lawyer with the National Union of Peoples’ Lawyers-National Capital Region (NUPL-NCR) said, “No, the public prosecutor did not actively participate in the prosecution of the case. He even testified for the accused. You cannot make me say that the justice system is working. NUPL-NCR asked for and was granted authority as private prosecutors, trying this case on our own. We built this case from Day 1 without any material assistance from the DoJ, police, or government agencies.”

Also the other week, the House of Representatives Committee on Human Rights grilled the Internal Affairs Services (IAS) of the Philippine National Police (PNP) for not filing criminal charges against policemen involved in “tokhang” operations that resulted in deaths during President Rodrigo Duterte’s “war on drugs.” Republic Act No. 8551 mandates the IAS to investigate and adjudicate administrative cases against erring PNP personnel. IAS Director General Brigido Dulay admitted that the IAS has not filed any charges so far.

Former Senator De Lima was acquitted not because the country’s justice system works but because her accusers one by one recanted their testimonies, claiming that they had been threatened or coerced to implicate her. Her case proves our justice system was weaponized against her.

As chair of the Commission on Human Rights, then as Secretary of Justice, and eventually as chair of the Justice Committee of the Senate, Ms. De Lima relentlessly and assiduously investigated human rights violations in Davao City during Rodrigo Duterte’s reign as mayor of the city and in many parts of the country during his incumbency as president. That drew the ire of President Duterte. He turned the justice system into a weapon and used it to destroy Ms. De Lima.

Senator De Lima’s persecution began on Aug. 19, 2016 when President Duterte’s allies in the House of Representatives filed a resolution seeking an investigation into the proliferation of drug use at the New Bilibid Prison (NBP) during the time Ms. De Lima was Secretary of Justice. Speaker Pantaleon Alvarez led the filing of the resolution. The others were: Raneo Abu, Romeo Acop, Michael John Duavit, Rudy Fariñas, Paulino Salvador Leachon, Karlo Nograles, Eric Martinez, Danilo Suarez, Abraham Tolentino, and Jerry Treñas.

The House opened its investigation on Sept. 20 with Rep. Reynaldo Umali, chairman of the Committee on Justice, presiding. But he practically gave up his chairmanship of the committee in favor of a non-member of the House, Secretary of Justice Vitaliano Aguirre, who led the interpellation of witnesses against Ms. De Lima. Many of the witnesses were convicted felons, most of whom were serving life sentences.

Sitting right beside Mr. Aguirre was Persida Acosta, the head of the Public Attorney’s Office. She said she was there as the legal counsel to the convicts who had been summoned as witnesses. Strange that the chief public attorney was acting as counsel for witnesses who were convicts serving life sentences.

When Mr. Aguirre said on Sept. 26 that he was set to file criminal charges against Ms. De Lima based on the testimonies of the witnesses, Mr. Duterte told a gathering of journalists covering Malacañang, “Sen. Leila De Lima is sure to go to prison for her involvement in the Bilibid drug trade because of the testimonial evidence.”

Five months after the House investigation of Ms. De Lima’s alleged transactions with NBP detainees, Mr. Aguirre filed three criminal complaints against her, accusing her of violating Section 5 of the Dangerous Drugs Act, which penalizes the “sale, trading, administration, dispensation, delivery, distribution and transportation of illegal drugs.”

On Feb. 23, 2017, Judge Juanita Guerrero of the Muntinlupa City Regional Trial Court (RTC) ordered the arrest of Ms. De Lima on drug charges. The arrest warrant was issued less than a week after the Department of Justice filed charges against Ms. De Lima. The senator’s lawyer, Alex Padilla, found the issuance of the warrant “funny and sad” as Ms. De Lima’s camp had filed a motion to quash with the court which had yet to be heard. “I cannot but think it’s pre-judgment on the part of the judge,” Mr. Padilla said.

In the evening of that day, PNP Chief Ronald “Bato” dela Rosa, eager to make President Duterte’s prediction that Ms. De Lima would go to prison come true, led a convoy of police vehicles to serve the arrest warrant to Ms. De Lima who had gone home to pack up the personal effects she would need in detention. But the Senate sergeant-at-arms contacted him to tell him that the Senate would surrender Ms. De Lima the following morning. Police chief Dela Rosa was catapulted from chief-of-police of Davao City to chief-of-police of the Philippines by President Duterte.

On Feb. 27, 2017, Ms. De Lima filed a petition for certiorari and prohibition before the Supreme Court, calling for the immediate issuance of a temporary restraining order against the proceedings and arrest. Then Solicitor General Jose Calida filed a manifestation before the Supreme Court seeking the dismissal of her petition, arguing that she falsified the notarizations on her affidavits. Her lawyers said the issue was “legal nitpicking and hair splitting.”

On Oct. 10, the Supreme Court en banc junked Ms. De Lima’s petition to nullify the arrest warrant, giving the Muntinlupa City RTC the go-signal to hear the drug cases. The ruling was penned by Associate Justice Noel Tijam. Associate Justices Presbitero J. Velasco, Jr., Teresita J. Leonardo-De Castro, Diosdado M. Peralta, Lucas P. Bersamin, Mariano C. Del Castillo, Estela M. Perlas Bernabe, Samuel R. Martires, Andres B. Reyes, Jr., and Alexander G. Gesmundo concurred.

Court proceedings against her were marked by undue delays, including the repeated failure of prosecution witnesses to appear in court, and the many changes in judges handling the cases against her. In 2018, the UN Working Group on Arbitrary Detention concluded that her arrest was arbitrary because of the lack of legal basis and the non-observance of international norms relating to the right to a fair trial. Amnesty International, as well as many other domestic and international organizations, repeatedly said that the charges against her were fabricated and that the testimonies by witnesses against her were manufactured.

In April 2018, Menardo Guevarra was appointed as ad interim Justice Secretary, replacing the much-criticized Vitaliano Aguirre. Addressing the employees of the Department of Justice on his first day as Justice Secretary, Mr. Guevarra said it was his personal mission to “restore the dignified and respectable image” of the department as his predecessor had badly damaged its image with his many questionable decisions and pronouncements.

But in June 2022, Ms. De Lima blasted Mr. Guevarra for his decision to continue her prosecution despite three key witnesses retracting their statements that led to her detention. “Up to the end of his term, Sec. Guevarra is minded to stand by the lies and manufactured evidence of the Duterte government, not wanting to displease his principal. He is, after all, Duterte’s alter ego. Never mind justice. Never mind fair play. Never mind that an innocent person was kept in jail for the past five years, and counting, without real evidence except the lies of mostly convicted felons,” Ms. De Lima decried.

Civil society and human rights groups called for her release from detention. The call was joined by the Parliament of the European Union, the United States Congress, the Australian Parliament, the ASEAN Parliamentarians for Human Rights, the Inter-Parliamentary Union, Amnesty International, Human Rights Watch, and Liberal International. In the view of the lawmakers of the Western world, where many of our own laws had their origin, Ms. De Lima’s continued detention was the consequence of President Duterte’s revenge.

Amid calls for newly elected President Marcos Jr. to order prosecutors to drop the drug charges against former senator De Lima, he stood firm on not interfering with the case. “I think urging prosecutors to do one thing or another is interfering,” he told reporters on Oct. 14, 2022.

But a number of prominent lawyers were of the opinion that President Marcos Jr. could intervene in the case without interfering with the court’s hearing of the case. They said the prosecution of criminal charges is a function of the Department of Justice which belongs to the executive branch of government, unlike the adjudication of cases, which belongs to the judiciary, a separate and independent branch of government.

I therefore concluded that President Marcos Jr. refrained not from interfering in the prosecution of the case against Leila de Lima but from interfering in Rodrigo Duterte’s persecution of her.

The Philippine justice system remains flawed as shown in the court case of the four policemen who killed the Bonifacios and in the failure of the IAS of the PNP to perform its mandate, because President Marcos Jr. appointed remnants of the President Duterte’s notoriously compliant justice system to key positions in the present justice system. Maybe he did that because he wants a compliant justice system so that it can be used as a weapon.

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor.

Globe raises P4.06B from tower sale to MIDC, Frontier

July 2, 2024 | 12:01 am

GLOBE Telecom, Inc. on Monday said it raised P4.06 billion through the sale of telecommunications towers to Miescor Infrastructure Development Corp. (MIDC) and Frontier Tower Associates Philippines, Inc.

The transaction included the sale of 140 towers to MIDC for approximately P1.68 billion, representing MIDC’s acquisition of 1,669 towers, or 76.6% of the total 2,180 towers to be acquired, Globe said in a regulatory filing.

MIDC, a subsidiary of Manila Electric Co., specializes in the development, ownership, and management of communication infrastructure.

Additionally, Globe closed the sale of 187 towers to Frontier for P2.38 billion, advancing Frontier’s acquisition to 2,492 towers, or 70.6% of the 3,529 towers agreed upon.

Globe has agreed to sell a total of 5,709 telecommunication towers and associated passive infrastructure to MIDC and Frontier for P71 billion.

MIDC is set to acquire 2,180 towers for P26 billion, while Frontier will acquire 3,529 towers for P45 billion.

Proceeds from these transactions will be used for capital investment, debt repayment, and to strengthen its balance sheet, Globe said.

The company anticipates a post-tax gain of approximately P13.5 billion from these transactions.

Last week, Globe announced progress in its tower sales to PhilTower Consortium, with 1,148 towers, or 85% of the planned 1,350 towers, already acquired.

The telecommunications company signed an agreement with PhilTower for the sale of its towers and related passive infrastructure for approximately P20 billion.

For the first quarter, Globe reported revenue of P45.31 billion, a marginal increase of 0.6% from P45.03 billion in the same period last year.

Meanwhile, its attributable net income declined by 6.1% year on year to P6.81 billion, compared to P7.25 billion in the corresponding period of the previous year.

At the local bourse on Monday, shares in the company closed P12 or 0.57% lower at P2,088 apiece. — A.E.O. Jose

Banyan Tree Group bullish on PHL luxury real estate

July 2, 2024 | 12:01 am

HOSPITALITY COMPANY Banyan Tree Group is bullish on the luxury real estate market in the Philippines, having recently unveiled Banyan Tree Manila Bay, featuring three towers of premium hotel and residential units.

“We’re excited because it is the first Banyan Tree Residence in the Philippines,” Banyan Tree Manila Bay Chief Operating Officer Martin D. Taylor said in an interview on June 25.

He added that the first phase of the project, which is targeted for completion in the first quarter of 2028, consists of hotels and condominiums.

“We have around about 199 two- and three-bedroom units, they range from 140 to 260 square meters (sq.m.). We also have two penthouses, 900 sq.m. each,” Banyan Tree Manila Bay Technical Director Anthony R. James said, adding that one penthouse is already reserved.

He said that the bi-level units measure approximately 700 sq.m. each, alongside 39 prime units spanning 400 sq.m.

Banyan Tree Manila Bay has teamed up with Nest Seekers International to promote its residential towers globally.

“The luxury real estate market in the Philippines is undergoing a rather remarkable transformation,” Nest Seekers International Chief Marketing Officer Andy Regalado said.

“Manila is ready to take center stage as a prime investment destination, where the potential for growth is outstanding and boundless.”

He added that Manila has been on the company’s radar for development opportunities, noting the city’s real estate growth driven by “a thriving economy and increasing demand for luxury properties.”

Banyan Tree Manila Bay’s amenities encompass a 24-hour concierge service, a rooftop garden, infinity pools, a spa, a fitness center, children’s play areas, a business center, and meeting rooms. — Aubrey Rose A. Inosante

Entertainment News (07/02/24)

July 2, 2024 | 12:01 am

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Short docu wins in Paris festival

THE SHORT documentary Between The Lines, directed by Elvin Jay Macanlalay, won the Best MegaCity-ShortDocs Award at the MegaCities-ShortDocs Festival held in Paris on May 23. The film was also screened during the 9^th Semaine du Cinéma Positif Week at the Festival de Cannes 2024 from May 22 to 25. Between The Lines delves into the transformative impact of a community library initiative in Bagong Silang, Caloocan. In a digital era dominated by social media and individualism, the documentary highlights the crucial role of community libraries in empowering children to engage with societal issues through relatable stories. The documentary demonstrated how nurturing the initiative can instill a love for reading among children, given the appropriate space. The community library gained significant recognition last year, and was featured on major TV stations such as CNN, TV5 Frontline Tonight, ABS-CBN’s Bayan Mo Ipatrol Mo, Tao Po A2Z, Net25 Responde Mata Ng Mamamayan, and One PH Balita. It was also prominently covered by online news outlets including The Philippine Star and Manila Bulletin, as well as on Teleradyo 630. MegaCities-ShortDocs is a Citizen short documentary-films Festival highlighting initiatives and/or sharing unacceptable situations seeking to bring effective solutions to Megacities’ challenges in order to improve the life of citizens. Semaine du Cinéma Positif Week is an annual event held during the Cannes International Film Festival.

CCP shows Ganito Na Kami Noon, Paano Na Ngayon

THE CULTURAL Center of the Philippines’ (CCP) Out-of-The-Box Series is back with a devises production adapting the 1976 classic Ganito Kami Noon, Paano Kayo Ngayon?, a Filipino epic set in the late 1950s. The production features the work of three National Artists celebrating their centennials this year: Alejandro Roces, F. Sionil Jose, and Eddie Romero. Written by Jose Victor Torres and directed by Dennis Marasigan, Ganito Na Kami Noon, Paano Na Ngayon? follows Kulas, an old farmer suspected of leading the Hukbalahap. It has performances on July 5, at 7 p.m., and July 6 and 7, at 3 p.m. at the Tanghalang Ignacio Gimenez (CCP Black Box Theater) at the CCP Complex, Pasay City. Tickets, priced at P1,500, are available via TicketWorld.

Newport to host John Lennon tribute concert

NEWPORT World Resorts brings Beatlemania back to Manila with a concert by renowned John Lennon tribute artist Javier Parisi on July 19 at the Newport Performing Arts Theater. The legendary rock icon may be gone, but his spirit and sound comes alive through Parisi’s pitch-perfect recreations of Lennon’s solo hits and The Beatles classics. Tickets, which range in price from P6,800 to P1,000, are now available at all TicketWorld outlets.

Puregold to hold thanksgiving concert

PUREGOLD’S Nasa Atin Ang Panalo, Thanksgiving Concert will be held on July 12, 6 p.m., at the Smart-Araneta Coliseum, Cubao, Quezon City. It will be headlined by BINI, SB19, Flow G, as well as have a special performance by SunKissed Lola. Joining them are special guests Gloc-9, Skusta Clee, Esay Belanio, Letters from June, and Kahel.

Hip-Hop star Hev Abi to tour Australia, New Zealand

MAS Presents and TMP Industries have announced the first concert tour of Australia and New Zealand by Philippine hip-hop music star Hev Abi, taking place Sept.10-24. Hev Abi is the first major Filipino artist to hit one billion streams on Spotify. He sold out his first solo concert at the Frontier Theater in Quezon City last April. His unique and wonderful music fuses traditional Filipino sounds with contemporary hip-hop.

House prices continue to ease in Q1 2024

July 2, 2024 | 12:01 am

House prices in the Philippines eased to 6.1% in the ﬁrst three months of 2024, the central bank’s latest Residential Real Estate Price Index (RREPI) data showed. In the ﬁrst quarter, RREPI at the national level for all housing units was the lowest in seven quarters since the 2.6% recorded in the second quarter of 2022.

Padua takes helm as president of Metrobank unit

July 2, 2024 | 12:01 am

THE FINANCING ARM of Metropolitan Bank & Trust Co. (Metrobank) has appointed a new president, it said on Monday.

Angelo Z. Padua on Monday took the helm as ORIX METRO Leasing and Finance Corp. president, the company said in a statement.

He replaced Antonio R. Ocampo, Jr., who is set to become president at one of the Metrobank Group’s subsidiaries, it said. Mr. Ocampo will also remain as a member of ORIX METRO’s board of directors and executive committee.

As part of his new role, Mr. Padua was also elected as a member of several of ORIX METRO’s committees, including the executive committee.

Mr. Padua joined ORIX METRO more than 28 years ago and had several leadership roles within the company. His most recent role was executive vice-president and Marketing Sector head, the firm said. He also had key roles in leading ORIX METRO’s Operations Group and was once Center Head of Northern Luzon and the Countryside Branches Group.

“ORIX METRO is a trailblazing company in the leasing and finance industry and plays an important role in the local MSME (micro, small and medium enterprises) sector. Throughout my career, I have supported small and medium businesses and entrepreneurs,” Mr. Padua was quoted as saying. “I am proud to take the baton from Mr. Ocampo and excited to have the opportunity to continue working with ORIX METRO’s talented and committed team… to deliver groundbreaking and sustainable leasing and financial products and services to serve the best interests of our clients.”

“With his depth of experience in leasing, dealer management, and operational strategy, his passion for serving customers and his commitment to empowering micro, small and medium enterprises, and his track record of developing and inspiring his team, Mr. Padua is the right choice to continue and build on what Antonio R. Ocampo, Jr. and senior management have done in leading ORIX METRO towards a more sustainable growth,” ORIX METRO Board of Directors Chairman Anthony Paul C. Yap added.

ORIX METRO is a joint venture between Metrobank and Japan’s ORIX Corp. It provides leasing and financing services for movable equipment. — AMCS

Marcos Jr.’s economic performance in his first 2 years

July 2, 2024 | 12:01 am

June 30 marked end of the second year of President Ferdinand R. Marcos, Jr.’s administration. How did the Philippine economy perform, and are Filipinos better or worse off after two years?

This piece will try to answer those questions as objectively as possible, avoiding making subjective conjectures. The assessment will be limited to three key economic indicators: overall economic/GDP growth, the unemployment rate, and the inflation rate including food inflation.

The baseline year is 2021 and although Mr. Marcos came into office only in the second half of 2022, the performance for the whole year can be considered as an achievement or non-achievement of the new administration. This is because business and political stability was settled after the May elections, so there are seven months that can be credited to the incoming administration.

To add more context to the economic assessment, neighboring countries in the ASEAN are included to provide a regional comparison, and the large Asian economies are also included as proxies for the global economy. After all, China, India, and Japan are among the four largest economies in the world.

A total of 11 Asian economies are covered in this assessment. The country comparisons over nearly two years show the following trends.

1. When it comes to GDP performance, the Philippines was among the fastest growing countries in Asia — and the whole world actually — in 2022, 2023, and up to the first quarter (Q1) of 2024. Our neighbors Vietnam, Indonesia, and Malaysia, and also India performed well.

2. The Philippines was able to consistently bring the unemployment rate down, from 7.8% in 2021 (baseline) to only 3.9% in Q1 2024. We had the highest unemployment rate of nearly 8% in 2021, thanks to the economic damage caused by the lockdown dictatorship in 2020-2021 (see Table 1).

Budget Secretary Amenah F. Pangandaman, as member of the economic team, expressed her continued optimism in the country’s growth prospects. She said that “our medium-term economic plan, our public spending focused on hard infrastructure and social services like education, our budget innovation via digitalization, and our open government transparency including procurement reforms are bearing fruit in terms of strengthening investor and business confidence in the country, which creates more jobs for our people.”

3. When it comes to price stabilization, the Philippines had the fourth highest inflation rate in 2022 and the highest in 2023 of the 11 economies considered. But by Q1 this year, it is back to 2021’s level of 3.9%. There is no full year average for food inflation in particular, so I picked food inflation in the month of May for each of the four years. The Philippines had the second highest food inflation in 2023 and the third highest in 2024 (see Table 2).

So, looking at these three important metrics — GDP growth, the unemployment rate, and the inflation rate — one sees that the Marcos Jr. administration did well in the first two but poorly in the third. One may argue that higher income growth and higher employment will allow the people to somehow deal with higher prices. But it is possible to have higher income and higher employment with lower inflation so we should pursue this path.

For the ASEAN-5 (the Philippines, Thailand, Vietnam, Indonesia, and Malaysia) in particular, I reviewed their overall inflation (OI) and food inflation (FI) monthly data over the past five years, from May 2019 to May 2024. Here is what I discovered:

The Philippines’ and Thailand’s FI are about 2% higher than their OI. Indonesia’s and Malaysia’s FI are about 2.5% higher than their OI. And Vietnam’s FI is only about 1.5% higher than its OI. So, among the ASEAN-5, Vietnam is in the best situation — having little difference between OI and FI.

I see that Vietnam has four policies that are more conducive to agriculture modernization than the Philippines.

One, they have no more forced land redistribution via endless, no time-table agrarian reform.

Two, they have a corporate farming scheme for more crops while our corporate farming is limited mainly to bananas and pineapple.

Three, they have a low tax on diesel (used by agricultural machinery like tractors, harvesters, trucks, irrigation pumps, etc.), with their import tax for gasoline reduced from 10% to 5.62% in July 2023, and diesel taxed by only 0.58%. Meanwhile, the Philippines raised the diesel excise tax from zero in 2017 to P6/liter by 2020 under the TRAIN law.

And, four, they have good trade relations with China and are able to have more agricultural exports to China. They are not warmongering, unlike the current saber-rattling in the Philippines against China over the West Philippine Sea.

Plus, Vietnam has good geography. It has a contiguous mainland and a good, extensive irrigation system thanks to the Mekong River and Tonle Sap.

The economic team may work with other departments to address the above issues. Like working with the Department of Agrarian Reform on how to end agribusiness’ uncertainty over the endless land redistribution schemes, working with the Department of Trade and Industry on corporate farming, and with the Departments of National Defense and Foreign Affairs on diplomacy and trade with China.

Finally, President Marcos Jr. and Finance Secretary Ralph G. Recto should consider reversing the policy of “expensive diesel to save the planet” engineered by former Finance Secretary Carlos Dominguez. As I have argued in this column since 2015, I never supported that policy. We should focus on saving our farmers and the hungry partly via cheap diesel; not “saving the planet” via a high diesel tax.

Sure, there will be revenue declines if this is done, but this can be compensated for via spending cuts somewhere, plus revenues from the privatization of some big government assets and land. Higher food production and lower food inflation are goals of higher importance than saving the planet and saving certain bureaucracies and freebies.

Entering the third to sixth years of the Marcos administration, keeping consumer prices low should remain an important goal. Then the administration will be remembered for its high growth, high employment, and low inflation economic policies.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com