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Alternergy gets P8B in loans for wind project

ALTERNERGY.COM

ALTERNERGY Holdings Corp. through its unit has obtained an P8-billion loan from two local banks for the development of its 112-megawatt (MW) wind project in Rizal province.

Alternergy Tanay Wind Corp. got loans from Bank of the Philippine Islands (BPI) and Security Bank Corp., the publicly listed local renewable energy developer said.

The company said the two banks lent P4 billion each, acting as co-lenders for the transaction, while BPI Capital Corp. and SB Capital Investment Corp. acted as joint lead arrangers.

“Their support comes at a critical time as we push forward with accelerated construction to bring our Tanay Wind Power Project into commercial operations by end 2025,” Gerry P. Magbanua, president of Alternergy, said in a statement.

The development of the Tanay wind power project would start in June, Alternergy said, adding that the turbine supply contract had been awarded to Envision Energy. The engineering, procurement, and construction contracts were awarded to China Energy Engineering Group Guangdong Electric Power Design Institute Co. Ltd.

The energy company seeks to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar and run-of-river hydropower projects.

For the next three years, the company aims to develop up to 474 MW of additional wind, solar and run-of-river hydropower projects.

Alternergy shares closed unchanged at 69 centavos each. — Ashley Erika O. Jose

PT&T announces leadership changes

PHILIPPINE Telegraph and Telephone Corp. (PT&T) on Tuesday announced leadership  changes, including the resignation of its chief operating officer.

In a stock exchange filing, the company said Chief Operating Officer Miguel Marco A.  Bitanga and Chief Information Officer Alberto P. Ambuyo were stepping down effective immediately.

Both are moving to its parent company, Menlo Capital group and listed MRC Allied, Inc., the telecommunication company said. Mr. Bitanga had also resigned as PT&T director, it added.

“This transition presents a significant opportunity for both PT&T and Menlo Capital as the entire group embarks on its strategic initiatives for the next 10 years,” PT&T said.

It had yet to name their replacements.

“We have a robust succession plan in place and are confident that our strong management team will continue to lead the company toward achieving our goals,” the company said. “PT&T is well-prepared for this transition and remains focused on our mission.”

In April, MRC Allied further diversified its business after its board approved the purchase of a 31.2% stake in Rappler Holdings Corp, becoming its biggest stockholder.

Listed property developer MRC Allied also has shares in PT&T.

PT&T seeks to resume trading on the Philippine Stock Exchange after its suspension in 2004 due to issues with the bourse’s reportorial requirements. — Ashley Erika O. Jose

Benilde Open Design and Art lets the curious mind run free

UNRAVELING BAGUIO’S INNER TAPESTRY: A Psychogeographical Exploration Through Sensory Encounters by Gabe Mercado

VIBRANT in color and reminiscent of scenes from the everyday, Nice Buenaventura and Constantino Zicarelli’s Tropikalye took shape from an online index of photographs to a public display of items and visual excerpts as part of the first Benilde Open Design and Art grants. The collection of examples of contemporary Filipino aesthetics combines that which is tropical and that which is found on the street, referred to in the title by the Tagalized Spanish word kalye.

The installation at Benilde, Polymer and Palm, takes from the index to showcase prints of peculiarities like mint green-painted cement houses and plastic tablecloths wrapped around coconut trees (a rat dissuader). They’re complemented by actual objects, from pieces of commonly used floral bedsheets to striped poles topped with leaves (a street parking deterrent).

“Once you set out on the streets and look for these aesthetics, you’ll find that there is a lot. These are strange, humorous, and clever ways in which Filipinos adapt to tropical and postcolonial life and conditions,” Nice Buenaventura told the media at the launch of the Benilde Open on May 22.

“The images tend to seem abstract, but if you scan the QR code, you can read the text that explains why these images are interesting. They are also accessible via the @tropikalye Instagram,” she added.

The duo is one of 27 grantees chosen to receive P300,000 to realize design and art projects encompassing various fields. The two hope to use a chunk of the grant money to publish a Tropikalye book.

Meanwhile, Michael Vea puts a spotlight on the lively landscape of Filipino Sign Language (FSL) literature with CURIOUS, a video exhibition of literary works as performed by five deaf fellows. Displayed on screens are short stories told with expressive and creative hand signs, translated with subtitles, a blending of introductory FSL with innovative storytelling.

“Those who can hear have their own art forms. For us who are deaf, we have our hands and expressions,” said Mr. Vea in FSL. He indicated one of the screens, where the narrator signs a story by going through the ABCs, each letter representing an action that furthers the narrative.

“Visual vernacular uses deaf signs in a creative way. This project shows our literary tradition because it emphasizes how we tell stories and deepen our own culture,” he added.

GIVING MORE OPPORTUNITIES TO ARTISTS
The Benilde Open Design and Art is a grant-giving body organized by De La Salle College of Saint Benilde (CSB) and the Embassy of Switzerland. For its first edition, the showcase is installed across multiple floors of the CSB campus, where students and visitors can browse through the works.

It invited creatives from all fields of design and art, like video, textiles, puppetry, visual art, apps, augmented reality, sculpture, photography, and software. Out of 324 proposals, 10 from professionals and 17 from students each received the P300,000 grant to fulfill their projects.

Rita Nazareno, one of the Benilde Open convenors, told BusinessWorld that there is a “big need for grants for artists and designers.”

“The existence of grant-giving bodies is important because they enrich the practice and the process of those in need of funds. Residencies are great, but this provides more help, and it allows budding works to be seen by so many more people,” she said at the launch.

PUPPETRY
Developing Puppetry in the Philippines by Mikayla Teodoro, a selection of intricate puppets that made Benilde Open’s final cut, greets visitors with a life-sized hyena that the puppet master can operate to lift a paw or open a jaw. Advanced 3D-printed mechanisms allow for functional anatomical joints in the head, the tail, and the legs, a wonder to behold for casual passersby.

Ms. Teodoro, who finished her master’s degree in puppetry in the United Kingdom, hopes to use the grant to bring all that she’s learned to establish advanced puppetry in the Philippines. In the West End in London, her works have been part of theater productions like My Neighbor Totoro, Spirited Away, Life of Pi, Doctor Who, 101 Dalmatians, and Lion King (hence the hyena).

“It’s really baby steps, but it’s exciting because it’s so small,” she said in a statement. “And because the Philippines is so rich in indigenous materials and craftsmen, you can get everyone involved when it comes to telling stories through puppetry.”

EXPLORING UNFAMILIAR CONCEPTS
For Gabe Mercado, whose project Unraveling Baguio’s Inner Tapestry: A Psychogeographical Exploration Through Sensory Encounters entails literal exploring, Benilde Open has the potential to become an important part of the country’s creative landscape.

“I love how they’re pushing the envelope in art and design and being open to new ideas. For example, my work is something you can’t place squarely in art or design,” he told BusinessWorld.

The project is a collaborative intervention that deconstructs dominant tourist narratives. Using an online guide to create an unscripted walk, it encourages participants to explore a city’s (in this case, Baguio’s) multifaceted identity. The guide was put together with the help of literary, sound, and performance artists, photographers, designers, and architects.

“We curate the starting point, but we veer away from specific areas and tourist spots. There are prompts that help one get lost further and also a record of past journeys of others,” Mr. Mercado explained.

Psychogeography, meant for urban settings, is more or less the practice of getting lost without an agenda. “It’s a thing people can naturally do. It’s not a curated experience and has no involvement with LGUs or local establishments, because there’s no motivation to show the good parts. The steps are to find a starting point, get lost, and make something of it,” he said.

EXPLORING The GRANTEES
Walking through CSB’s floors of unique concepts presented by grantees is a fulfilling exploration of creativity in itself, as emphasized by Mr. Mercado.

There’s RJ Fernandez’s Nightingales, a short film that centers on the daily life of three Filipino nurses working in the United Kingdom’s National Health Service.

There’s Rambie Lim’s Exploring the Use of Philippine Silk in Tausug Pisyabit Weaving that bridges the gap between suppliers and Sulu weavers to continue producing traditional Tausug textiles, even as imported silk thread is now being replaced by more accessible acrylic and polyester.

Lala Monserrat’s Maria, Maria, in collaboration with Russ Ligtas, Geric Cruz, and Jazel Kristin, puts the spotlight on collaborative performance, photography, film, and sculpture work among LGBTQ+ (lesbian, gay, bisexual, trans, queer plus) locals of the coastal town of San Antonio, Zambales.

“There’s so much creativity and culture to explore all over the Philippines, and even beyond, and I’m sure efforts like ours have barely even scratched the surface,” convenor Ms. Nazareno said of the variety of works and sheer talent on display at the Benilde Open.

The “Benilde Open Design and Art 2024” exhibition is on view until June 30 on several floors of the CSB’s School of Design and Arts campus in Pablo Ocampo St., Malate, Manila. Free tours for the public and a lineup of talks and activities on the works will be held throughout the run. — Brontë H. Lacsamana

PH1 to finish P2-B housing project in Imus in two years

PH1 World Developers, Inc. seeks to finish a P2-billion mid-rise residential housing project in Imus, Cavite by 2026, according to its top official.

The project will cater to government employees, policemen and teachers, PH1 Chairman and Chief Executive Officer Edgar B. Saavedra said on the sidelines of the project’s groundbreaking ceremony on Tuesday.

“This is a tripartite agreement involving the Imus City local government, Department of Human Settlements and Urban Development and the developer,” PH1 General Manager Eric Gregor G. Tan said in a separate interview.

On Tuesday, PH1, the Imus City local government and Human Settlements department launched the Imus-PH1 Pambansang Pabahay Para sa Pilipino (4PH) housing project.

Situated on a 1.3-hectare lot, the project will have 1,100 units across five buildings.

Each unit, spanning 27 square meters, will cost P1.8 million to more than P2 million. The project will have amenities such as a clubhouse and a basketball court.

The 4PH project is an initiative of the Human Settlements department that seeks to address the country’s 6.5-million housing backlog by building a million housing units yearly until 2028.

Under the project, the Human Settlements department lowered the preferential interest rate on loans to 1% from 6% to address the housing shortage.

PH1 is the real estate unit of listed Megawide Construction Corp. — Revin Mikhael D. Ochave

‘And pull yesterday into today’: Heidi Bucher exhibition at MCAD Manila

HEIDI BUCHER'S BODYSHELLS and Bodywrappings on display at MCAD — BRONTË H. LACSAMANA

IN HER writings, Swiss artist Heidi Bucher would talk about looking at the interiors of a room, touching the items and observing them and wrapping them in gauze, all an act of “listening carefully.”

Human interiority as seen in fabric, clothing, and physical space is the crux of “And pull yesterday into today,” a selection of Ms. Bucher’s oeuvre on display at the Museum of Contemporary Art and Design (MCAD) in Manila. In collaboration with the Estate of Heidi Bucher, her textiles, “skinnings,” sketches, and wearable body sculptures were either flown in or reproduced by MCAD for the exhibition.

“She was trained as a dressmaker and went to an arts and crafts school in Zurich that was much like Benilde, where she learned textile design and fashion. She worked with fabric and the human body at a point when minimalism and conceptualism were at their height, so she was a late discovery because her work was so female and so outside of what was happening at that moment that she was never looked at properly,” said Joselina Cruz, director and curator of MCAD.

Ms. Bucher’s practice, spanning the 1960s to the ’80s, encompassed drawings, sculptures, installations, architecture, and collaborative performances, resisting the categorization of artistic disciplines. “It’s a perfect anchor for the Benilde Open Design and Art (grants exhibit), which thematically explores the curious mindset in celebration of the college’s 35th anniversary,” Ms. Cruz said.

“There’s liquid latex, silk collages, repurposing of her own clothes. It’s astonishing for Heidi to have this body of work for that time and important for students of an arts school to see,” she added.

INTERPLAY OF ART, CLOTHING, PERFORMANCE
Heidi Bucher’s many artistic intersections range from textiles used as architecture, to interiors displayed in the air, to sculptures be coming performances — all now in Manila for the last stop of the Asian tour of her oeuvre before going back to Zurich.

One of the most notable are the genderless body sculptures Bodyshells and Bodywrappings, which emerged in California in the early 1970s.

Both on display and free to touch — and even wear — by the public, they come to life thanks to students from the Benilde Dance Program, who occasionally put on the peculiar objects in a performance. As pale as the moon and as overwhelming to wear as they are to look at, they appear like bells or even vases, with the people inside tentatively and slowly stepping to balance and express themselves through movement.

Indigo and Mayo Bucher, Heidi Bucher’s sons who were in Manila to give a talk on their mother’s work, explained that her experience and experimentation with textiles and art naturally led her to these designs.

“People ask us how she must have thought of these things. She didn’t think of it; she just did it,” Indigo Bucher told BusinessWorld. “These figures she designed came about because she was a tailor [who was] also passionate about art, so it was a natural development for her.”

Perhaps the most fascinating example of Ms. Bucher’s exploration of the human body’s tension with its surrounding space are her “skinnings,” made from the mid-1970s to the early 1990s. The ceiling of MCAD’s spacious gallery is now home to one such cast of a room’s interior, namely the office of Dr. Binswanger at the Bellevue Sanatorium in Kreuzlingen, “skinned” in 1988.

Ms. Cruz explained Ms. Bucher’s elaborate process: “She put gauze on the walls, applied liquid latex, then pulled them out, which would then be documented on video. It’s fantastic to think of how she achieved materiality, performance, and video documentation in one fell swoop.”

The result, now hanging from the museum’s ceiling like a decayed ghost, is a display of how fleeting physical architecture can be, while also preserving the architecture of the memory of the space. The video projected on the wall shows how Ms. Bucher struggled to figure out the great fabric skinned from the room, akin to her own struggle against the artistic movements of the time.

“It’s an interesting piece because it’s the room where the first psychotherapy session happened, a space hidden from the public. Often her ‘skinnings’ are of domestic rooms, prisons, her father’s ‘gentleman’s study’ where women were not allowed. It’s a body of work emblematic of the human interiority Heidi sought to capture,” Ms. Cruz said.

She added that bringing the work to a school of art and design is a great way to show how one can experiment and cut across disciplines. Indigo Bucher said the same thing, of how the estate bringing the works all over the world is an act of “passing information and giving opportunities to students of today.”

The title of Ms. Bucher’s exhibition says it all, taken from her writings about how looking at the surface of rooms and covering them, coating them, can reveal so much: “What has been lived, what has passed, gets caught in the cloth and remains hanging. We slowly loosen the layers of rubber, the skin, and pull yesterday into today.”

“And pull yesterday into today” is on view at MCAD Manila, at the ground floor of the Benilde Design + Arts Campus, until Aug. 18. It is free and available to the public. — Brontë H. Lacsamana

AllHome Corp. to hold online annual meeting of stockholders on June 28

 

 


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Gov’t fully awards reissued three-year T-bonds

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as the average rate rose from the previous auction amid dovish signals from the central bank and the peso’s recent weakness.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued three-year bonds it auctioned off on Tuesday as total bids reached P71.399 billion, or more than twice the amount on the auction block.

The bonds, which have a remaining life of two years and seven months, were awarded at an average rate of 6.347%. Accepted yields were 6.3% to 6.375%.

The average rate of the reissued bonds rose by 34 basis points (bps) from the 6.007% fetched for the series’ last award on Jan. 30. This was also 34.7 bps above the 6% coupon for the series.

Still, this was 3.8 bps lower than 6.385% quoted for the three-year bond and 2.6 bps below 6.373% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The BTr made a full award of its T-bond offer as the average rate was “lower than the prevailing secondary market rates,” it said in a statement.

“With its decision, the committee raised the full program of P30 billion, bringing the total outstanding volume for the series to P90 billion,” the Treasury said.

The T-bonds fetched rates lower than secondary market levels amid dovish signals from the Bangko Sentral ng Pilipinas (BSP), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Eli M. Remolona, Jr. this month said the Monetary Board may kick off its easing cycle by the second semester, with a 25-bp cut possible as early as their Aug. 15 meeting and one or two rate cuts expected this year.

This would mean that they could ease ahead of the US Federal Reserve, which they expect to begin cutting rates by September, Mr. Remolona said.

The Monetary Board this month kept its policy rate at a 17-year high of 6.5% for a fifth straight meeting following cumulative hikes worth 450 bps from May 2022 to October 2023 to help bring down elevated inflation.

Meanwhile, Finance Secretary and Monetary Board member Ralph G. Recto on Monday said they may cut benchmark interest rates by 150 bps in the next two years.

“The awarded rate today reflected investors’ demand for higher fixed returns emanating from the recent weakness of the local currency,” a trader added in an e-mail on Tuesday.

The peso closed at the P58-per-dollar level for the first time in over 18 months last week amid the greenback’s strength as US Federal Reserve kept their “higher for longer” policy stance following recent data showing that inflation remained sticky and a robust economy.

On Monday, the local unit ended at P58.11 versus the greenback, strengthening by eight centavos from its P58.19 finish on Friday. This was down by P2.74 from the peso’s end-2023 close of P55.37.

Tuesday’s T-bond auction was the last for the month. The BTr raised P121.721 billion via T-bonds out of the P150-billion program for May as made partial awards of three out of its five offerings this month.

Overall, the Treasury raised a total of P183.721 billion out of its P210-billion domestic borrowing program for May.

For June, the BTr is looking to borrow a total of P180 billion from the domestic market, or P60 billion from Treasury bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for 2024. — A.M.C. Sy

Meralco about to complete feasibility study on micro-modular reactors

By Sheldeen Joy Talavera, Reporter

MANILA Electric Co. (Meralco) on Tuesday said its full feasibility study with a United States company is about to be completed as it targets to build micro-modular nuclear power plants.

“We are already wrapping up the feasibility study for the development of a micro-modular reactor with the US-based Ultra Safe Nuclear Corp.,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said at the company’s annual stockholder’s meeting.

Meralco plans to build micro-nuclear power plants to energize remote areas in the Philippines in the next four years.

“As we deep dive into this safety, financial and selection parameters, our goal is to build a micro-modular reactor with a capacity of 5-15 megawatts (MW) and have some sort of proof of concept that will help us convince the Filipino people that nuclear energy is safe, reliable, cheap and a clean source of baseload power which our country badly needs,” Mr. Aperocho said.

The power distributor has said it has completed the pre-feasibility study. It is now studying the safety, financial, and selection parameters of deploying the technology.

In November, Meralco and Ultra Safe signed a deal to study the potential deployment of one or more micro-modular reactor energy systems in the country.

The nuclear initiative is part of the power distributor’s commitment to adopt next-generation clean technologies. It is also in line with the goal of the Department of Energy of incorporating at least 1,200 MW of nuclear energy in the energy mix by 2032.

Mr. Aperocho said the company would send five to seven scholars overseas this year as part of its nuclear engineering program.

“It’s important… that we are able to prepare nuclear engineers by the time that we start building or operating these micro-modular nuclear plants,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said at the meeting.

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

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

Kairos by Jenny Erpenbeck wins the International Booker prize — a chaotic love at the end of times

AMAZON.COM

(Kairos by Jenny Erpenbeck, translated by Michael Hofmann, has been named the winner of the International Booker Prize 2024. The winner was announced at a ceremony held at London’s Tate Modern on May 21. The £50,000 prize is split equally between the author and translator Michael Hofmann, giving each equal recognition.)

GERMAN writer Jenny Erpenbeck and translator Michael Hofmann have won the International Booker prize for the novel Kairos.

In relentless, unflinching present tense sentences, punched on to the page, it explores the extent to which human hearts might rise above history. The book finds only fleeting and quickly crushed spaces for love to transcend all, however, as it plunges into the depths of interpersonal and social alienation and despair.

The book begins with a death. Katharina, in the present, learns of the long-expected (but no less shattering) demise of her one-time lover Hans. On receiving the news, she delves into an archive of records — letters, diaries, clippings — which memorialize their affair.

We then enter into the affair as it was lived. They fall in love in the last years of the German Democratic Republic (1945-1990). The socialist ideals of a better world that it was founded on had long since faded into a suffocating and doctrinaire bureaucratic conformism.

All around them are signs of the end times, as capitalism rises, wraith-like, over the Berlin Wall. From the start, Katharina and Hans dwell beneath the shadow of the ending of the experiment in European communism. It is from this context that the title comes.

The ancient Greeks had two words for time. One was chronos: this was ordinary, normal time. It is characterized by boring, successive, monotone, undistinguished, seconds, minutes, hours, and days passing without much occurring. The other, kairos, was enchanted, the time when things happen, when things conclude, when history becomes substantial, even apocalyptic.

The late 1980s was kairos time for the German Democratic Republic and our protagonists.

Katharina was young, not yet out of her teens, when they met on a bus. She had dreams of working in the theater. Hans was old, married — not particularly unhappily — a writer working in the radio, well established in the intelligentsia of communist Berlin, with as many mistresses as publications.

They are drawn together with such a power that they suspect fate must be involved. Even as they enact the mundane betrayals of infidelity — walks, films, listening to music, dinners, café rendezvous, secret holidays, illicit sex sessions — they feel impelled by a power beyond them that dwarfs their love, even as it gives body to it. This force is History with a capital H, the zeitgeist, that uncapturable urge of time which only cares for its own realization.

History, being history, crushes them. The dying gasps of the German Democratic Republic offered the conditions for their impossible relationship to operate briefly. History then — ironically and indifferently — provides the constrictions that makes its end inevitable.

As the German Democratic Republic collapses, their relationship becomes like the one between the dying state and its subjects: paranoid, accusatory, peremptory, and mournful over its evident finiteness. The novel plunges towards its tragic ending with an inevitability that is not any less powerful for, well, being inevitable.

The extent to which someone will enjoy this novel undoubtedly depends on the extent to which they agree (and empathize) with its account of history, the links between the personal and the political, and the style and form that such concerns ought to take.

The book is densely introspective and realistic in its sensibility. The style is weighty, suffocating, pressing. History is a nightmare from which everyone wishes to awake but cannot. Form, mode and tone do not allow any escape. As Erpenbeck puts it in a characteristically dense passage, fusing emotion and ideas, “the future” (and we might add, given the novel’s interests, the past) “trails its loose ends into the present until it becomes the present, settles on one or other human flesh, and its flourishing or brazen regime abruptly begins.”

Even as it depicts a rich world of feeling — layered, ambivalent, fractious, at times even beautiful, replete with hope — it nonetheless frames this world through the lens of a tragic view of time. By the end, the characters are subjected to such degradations and humiliations that it becomes almost too much.

A FRESH ADDITION TO THE PANTHEON
Its winning of the International Booker Prize means it joins a list of classics of the German Democratic Republic.

It bears a strong relation to Christa Wolf’s (who is mentioned briefly) The Quest for Christa T. (1968), which follows two childhood friends from the second world war in East Germany. The book’s emphasis on documentary evidence and personal decline of the self, body, and the world can be seen in Kairos.

Kairos’ dislocated sense of alienated and exiled East German personal worlds bears some resemblance to Uwe Johnson’s Anniversaries. This nearly 1,700-page epic, published between 1970 and 1983, juxtaposes 1960s America with life in Nazi Germany and the German Democratic Republic through Gesine Cresspahl, who flees postwar East Germany to raise her young daughter, Marie, in New York.

We can also add it to the list of those important contemporary books that continue to grapple with the shattering effects of 20th-century European history on human bodies and minds. It reminded me of Daša Drndić’s Trieste, a similar documentary history of the haunting of the European soul by the violence of its past and, of course, the unparalleled work of German writer W.G. Sebald.

Its concerns are weighty and monumental. It believes in the capacity of the novel to offer the lived history of the individual against the official narratives of state history. It possesses a rare seriousness in suggesting the simple, but often unacknowledged, literary truism that difficult times are difficult to confront, to voice and to read about.

 

Edward Sugden is a senior lecturer in American Studies, King’s College London.

Skills Development in IT-BPM Sector: On the need for calculus

WIRESTOCK-FREEPIK

(Part 5)

With the advent of more advanced technologies such as Artificial Intelligence, the Internet-of-Things (IoT), robotics, and Big Data, it is imperative that more and more of the products of our basic education schools (K to 12) should attain global competitive levels in their reading, mathematics and science (STEM) capabilities. This would require a significant improvement in the amount the public sector invests in public education. The target should be for the resources invested by the Government in public education to match the average spent by our ASEAN peers, about 6% of GDP. There should be a special effort to improve the K to 12 curricula to include the teaching of differential and integral calculus at the senior high school level. The new technologies would require mathematical knowledge at those higher levels. The earlier the cream of the crop among our youth are exposed to higher math subjects, the more they will be attracted to the college or university programs that will prepare them for the advanced technologies.

At the college level, there should be a special effort to increase enrollment in the engineering and sciences specializations because that would automatically guarantee that these students would be taking courses in those higher branches of mathematics. There should also be a special effort to require university students majoring in business, accounting, and management to take at least two semesters combining analytic geometry and calculus. Today, anyone who purports to be a businessman or manager should be considered ill-equipped if he or she does not have at least an elementary understanding of the calculus. Gone are the days when the only quantitative skill that accountants needed was how to add and subtract, multiply and divide. This was actually my case when I majored in Accounting to be able to take the CPA exam. I didn’t have a clue what calculus was all about. That vacuum in my math education gave me a serious handicap when I started my doctoral studies at Harvard. I had to take a crash course in analytic geometry and calculus. As any student in a graduate program in economics knows, he has to learn more higher mathematics than some engineering students, some of whom need not take courses on differential equations, linear programming, and matrix algebra.

Today, those studying to be accountants, together with their other colleagues in business administration or management courses, must have a minimum knowledge of the uses of linear programming and operation re-search, for example. That is the only way they can more easily understand the implications of artificial intelligence, algorithms, blockchains, input-out analysis and other terms becoming commonplace in business parlance. In this regard, I always looked up to those who studied Management Engineering at the Ateneo during the last three decades of the last century. They were actually majoring neither in management nor engineering but in high-level math. The products of this course are some of the CEOs and top managers of the large corporations today. They, like former Secretary of Trade and Industry Greg Domingo, are now the gurus of Big Data and Artificial Intelligence.

Having said all this, however, let me once again remind everyone that the vast majority of those who will be working in the information technology and business process management (IT-BPM) sector in the next 10 years or so need not pursue a degree program in college.

As the Roadmap 2022 concluded rightly, the IT-BPM sector is unique in the sense that for entry-level positions, educational background is not a key factor in the selection process. In this context, the IT-BPM sector offers many employment opportunities to those interested in working in the sector and who can meet entry requirements. For example, contact center positions are open to anyone with basic skills; the game development and animation subsector is open to those with an interest (not necessarily possessing a digital arts degree). I distinctly remember the owner of an animation enterprise that supplies some Japanese companies with the anime drawings they needed proudly proclaiming in a workshop on creative industries that none of his 100 workers have a college degree.

In formulating skills development programs for the IT-BPM sector for the immediate future, i.e., the next five years, we must keep in mind that of the 2.5 million workers projected to be employed by 2028, the vast majority do not need college degrees. Most of them will be taken from the existing 1.7 million workers who will be upskilled, reskilled, and retooled by the IT-BPO enterprises through in-house training programs or through partnerships with academic institutions (both universities and Technical Education and Skills Development Authority (TESDA)-type technical schools). For the additional 800,000, they can be recruited from some of the millions of workers who are either underemployed or unemployed (there are more than 10 million of them in the existing labor force) and provided with short courses that reskill them in the old technologies that have been around for the last two decades.

Key services that have been offered for some time and will not be completely made obsolete by the new technologies are:

  1.  Contact center and Business Process Outsourcing (BPO). In this sub-sector, the mature areas and are the easiest to replace with AI and robots are customer care and helpdesk. Still growing are Engineering Service Out-sourcing or ESO, Data Analytics, Performance Management, and Legal Process Outsourcing;
  2.  IT Services. The mature areas are application development and infrastructure support. The growth areas are System Integration, Automation Enablement, IoT Enablement, Languages, and Application Development Management (ADM);
  3. Health Information Management Services: mature services are the payer services while the growth ones are preventive health, remote healthcare management, and provider services;
  4. Animation and Game Development services: the mature areas are 2D Animation and Game Development while still growing are 3D Animation, augmented and virtual reality or AR/VR, and Gamification;
  5. Global In-House Centers: the mature services are Finance and Accounting while the growth services are industry-specific services for telecom, healthcare, insurance, and pharmaceutical.

For those who are already in the workforce or about to finish their studies in a wide range of educational or training programs, the opportunities are still in the traditional sectors. For the rest of this decade, the country will continue to be a key offshore player for customer care services and support, competing mainly with India. Application development and maintenance (ADM) will continue to be provided by both large service providers, as well as mid-size to small companies. There will continue to exist opportunities for mid-tier service providers to obtain smaller and less-complex contracts from both foreign and local small- to medium-size enterprises.

As Finance and Accounting (F&A) faces a shrinking market, Human Resources (HR) services have begun to expand on the back of an increasing focus from large service providers. There is also a steady growth in the maturity and value of knowledge process outsourcing or KPO, ESO, and legal and analytics services being offered.

As regards healthcare, the Philippines has been focusing more on higher value services on both the provider and payer side. The payer market is much larger in terms of revenue because of the former being large, multi-year contracts serviced by large BPO customers. As regards animation and game development, the Philippines needs to leverage new platforms such as the mobile and web to grow at a faster rate compared to the other service sectors of the market.

 

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

bernardo.villegas@uap.asia

EastWest Bank looking to sustain double-digit growth in net income

PHILSTAR FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) hopes to achieve double-digit net profit growth this year as it expects its net interest margin to widen once the Bangko Sentral ng Pilipinas (BSP) begins its easing cycle, driven by its consumer-heavy loan portfolio, its top official said.

The bank is hoping to sustain the double-digit income growth it posted last year, EastWest Bank Chief Executive Officer Jerry G. Ngo told reporters on the sidelines of the BusinessWorld Economic Forum last week.

The bank saw its net profit rise by 32% year on year to P6.1 billion in 2023.

In the first quarter, EastWest Bank’s attributable net income grew by 7.74% to P1.7 billion, driven by the expansion of its consumer lending business and its digital initiatives.

“I think that (consumer business) will still be the main driver of the business. We’re basically focusing on the consumer lending side. It’s not just a tagline. For us, it’s really important and it’s really very critical. It’s also what sets us apart. Our portfolio is really different. The profile is very different from the rest of the market. So, we want to continue with that,” Mr. Ngo told reporters on the sidelines of the BusinessWorld Economic Forum held last week.

“What we do is we have loans that are fixed. As interest rates go up, our margins are increasing. But as interest rates go down because of the rate cut, that creates liquidity. So, our margins will open. So, interestingly, it’s going to be positive for us,” he said.

He added that the BSP’s easing cycle will likely be dependent on the US Federal Reserve’s actions.

“I think what’s more important is whether they will continue to cut or they will keep it persistently high,” he said, adding that borrowing costs will likely still be elevated despite the expected cuts.

Mr. Ngo said they remain bullish on credit growth in general as the country’s employment has been robust, supported by the online businesses born during the pandemic.

“We don’t see it because it’s not properly captured in national statistics, but the reality is it’s creating an informal economy. So, we want to be able to look at this whole thing holistically. So far, so good. We’re growing both on the secured side as well as on the unsecured side,” he said.

He added that the bank will adjust its products in line with consumers’ shift in preferences, specifically the growing interest in travel.

“I think what’s happening is that the traditional banks like ourselves really need to invest more. You’ve seen it happen in other markets… It’s probably because of interest rates. It’s hard to get expensive deposits. And then in order to make money, you have to lend it at a much higher credit cost. In which case, you’re taking so much risk. And if you don’t have an ability to collect, then it’s hard. So, that’s why we think that there’s an opportunity for a what they call a traditional bank that is digitally enabled that supports and embraces all of those capabilities, to really level up, as they say,” Mr. Ngo said.

“Obviously, we’re going to have to invest more in order to have a higher growth trajectory. So, that’s the balance that we need to keep. We need to keep our investors happy. As I mentioned earlier, there’s a lot of people, particularly in the investment community, that are looking for profitability. They need returns,” he added.

EastWest Bank is looking to make its digital wallet app Komo available to more types of clients by integrating it into EasyWay, its digital banking app, Mr. Ngo said.

“What you want to be able to do is to get people to use the e-wallet like what you have in your pockets day to day — small amounts, more transactional as a wallet. The ones that you want to do — investments, insurance, and other longer-term transactions — you do it in the bank… That allows for protection. You do not carry your entire wealth every day in a wallet, because otherwise, you will have a problem,” he said.

To boost its profits, the bank is also tapping the affluent market and the micro, small, and medium enterprises market, he added.

EastWest Bank will also expand its services and branches to areas outside of Metro Manila, he said.

“We will let our customers lead. We will work with our customers, but we will focus on a very defined strategy,” Mr. Ngo said.

EastWest Bank’s shares closed at P9.24 apiece on Tuesday, up by four centavos or 0.43% from the previous day’s finish. — AMCS

Arts & Culture (05/29/24)


CCP Main Building lights up for Independence Day

TO HERALD the upcoming Philippine Independence Day celebrations, the Cultural Center of the Philippines (CCP) has lit up its Main Building with the colors of the national flag. Using conventional ellipsoidal lighting fixtures with gobos patterned after islands and geographical features of the Philippines, it marks the 126th anniversary of the nation’s independence. The façade lighting runs every night, from 6 to 9 p.m., until June 16.


Aliwan Fiesta returns

ALIWAN FIESTA, the celebration of Filipino festivals and heritage, returns to the Cultural Center of the Philippines (CCP) Complex in Pasay City from June 27 to 29. Aliwan Fiesta 2024 kicks off on June 27 with the Tugtog ng Aliwan Competition at 5 p.m., followed by the Pasakalye Concert at 7 pm. The concert will feature a star-studded line-up of Filipino artists, setting the tone for the festival experience. On June 28, the Reyna ng Aliwan pageant will see beauty queens from across the Philippines vie to showcase the unique charm of their respective regions. Aliwan Fiesta 2024 culminates on June 29, 5 p.m., with the Grand Parade, featuring the Streetdance and Float Competitions. The parade will start at the intersection of Jalandoni St. and V. Sotto St., proceed along P. Bukaneg St. in front of the CCP, turn onto Roxas Blvd., and culminate in front of the Aliw Theater, where contingents will perform six-minute routines. The best of the best will be selected in an award ceremony at 9 p.m.


Karla Sajona holds 3rd solo exhibit

IN her third solo exhibit, “Flights of Fancy,” Karla Sajona transitions from her usual realistic works to rather abstract and ethereal renditions of birds. Inspired by her fascination for Asian kite toys and celestial themes, the exhibit includes prismatic colored patterns in works like Iridescence and Plumage, which depict sunbirds, hornbills, kingfishers, and roosters. “Flights of Fancy” runs until May 31 at the Gateway Gallery Small Room in Gateway Mall, Araneta City, Quezon City.


CCP Met: Live in HD brings Malcolm X biopic opera

HAILED as groundbreaking for its all-Black production team, Anthony Davis’ X: The Life and Times of Malcolm X depicts the controversial figure in the civil rights movement and the fight for Black empowerment in the 1960s. This opera shows Malcolm’s transformation from a victim of poverty to leader to martyr. Now part of the Cultural Center of the Philippines’ The Met: LIVE in HD series, the biopic of the civil rights icon was put together by jazz composer Anthony Davis. With a runtime of three hours and 42 minutes, it presents vignettes from the life of Malcolm X, played by Will Liverman. It will be shown on June 4, 5:30 p.m., at the cinema in Greenbelt 3, Makati City.


Uy, Madlangsakay Jr. show at MO_Space

THIS June, two artists will be showcased at MO_Space. One is Miguel Lorenzo Uy, whose exhibition “TBD” presents a new iteration of his ongoing project photo-documenting and manipulating the architecture of different commercial and high-rise buildings. For this body of work, the images are from the surrounding area where the exhibition takes place, manipulated to look like parts of a massive spaceship. Meanwhile, Efren Madlangsakay, Jr.’s “Printed in Water | Drawn in Trees” centers on flattened and abstracted landscapes that portray bodies of water, dense foliage, scattered liquid and vegetation, and negative space. Both shows are open for public viewing from June 1 to 30 at the third floor of MOs Design, Bonifacio High Street cor. 9th Ave., Bonifacio Global City, Taguig City.


Two Olazos exhibit at BenCab Museum

FOR June, two artists will be displaying their works at the BenCab Museum in Baguio. Jonathan Olazo’s “There was nowhere to go but everywhere, so just keep on rolling under the stars” shall take up the space of Gallery Indigo. Meanwhile, Romulo Olazo’s “Nudes: The Secret Body of Abstraction” is set to occupy the Sepia Gallery. The exhibit centers on his depictions of the female figure, shown in different angles, with different mediums, and different qualities of rendering. The two exhibits run from June 8 to July 7 at the BenCab Museum, Km 6 Asin Road, Tuba, Baguio City.


La Union produces inventory of cultural elements

THE PROVINCIAL government of La Union recently produced its own inventory of cultural elements that are found in the province, as part of its objectives to promote heritage preservation. This was the result of the province’s Cultural Mapping Program in April, done with the technical assistance of the National Commission for Culture and the Arts. La Union is the first province in Region 1 to complete the program, resulting in a total of 359 cultural elements that are now part of the inventory. Of these, 111 are in the natural heritage domain, 104 are intangible cultural heritage, 71 are tangible movable objects, 46 are immovable heritage, 17 are cultural institutions, and 10 are significant personalities. The program culminates with the printing and reproduction of the inventory, which is set for June to July this year.


Pacquing, Gadia shows at Silverlens Manila

IN MID-JUNE, two artists’ works will take the spotlight at Silverlens Manila. For Bernardo Pacquing, it will be his 5th solo exhibition at the gallery since Silverlens started representing him in 2014. “Causal Loops” is an experiment with abstraction as a building activity where materials are rid of their original meaning and transformed, resulting in a total of 25 works. Meanwhile, Dina Gadia paints from her own photographs in “Land Poetics,” offering an intimate perspective that diverges from her typical sources of books and magazines. The exhibition features seven new paintings on canvas, all rendered in acrylic. Both exhibits will be on view from June 11 to July 13 at Silverlens Manila, 2263 Chino Roces Ave. Ext., Makati City, with an opening reception on June 11 at 4 p.m.


Animated short film Sulayman garners acclaim

FILIPINO animated short film Sulayman, based on a Maguindanao folktale, has bagged awards at two international short film festivals. Created by Tuldok Animation Studios, the eight-minute film won Best Animated Film at the PENSACON Short Film Festival 2024 and Best Animation: Traditional award at the FantaSci Short Film Festival, both held in Florida in the United States. Written and directed by Nelson “Blog” Caliguia, Jr., Sulayman revolves around the sacrifices the heroes make to save the lives of others and is based on the folktale “Indarapatra and Sulayman.”


Magdalena Gamayo birth centennial launch

THE NATIONAL Commission for Culture and the Arts (NCCA) unveiled the Birth Centennial Logo of Manlilikha ng Bayan Magdalena Gamayo, marking the beginning of a 100-day countdown to her birth cetennial. The logo was revealed in her hometown of Pinili, Ilocos Norte, at the GAMABA Cultural Center. The celebration will begin with an online campaign by weavers of the GAMABA Cultural Center and students from the Inabel Weaving Training Program in May. Ms. Gamayo’s inabel works will be turned over to the National Museum of the Philippines – Ilocos on June 24 and there will be an online lecture, “The Inabel Textile Tradition of the Ilocos Region and the Legacy of MB Magdalena Gamayo,” on July 19. The birth centennial celebration will be on Aug. 13, followed by a traveling exhibition of her works across the Philippines next year.