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Gov’t fully awards bonds at slightly higher rates

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued 10-year Treasury bonds (T-bonds) it offered on Tuesday as the offer was met with ample demand, with rates broadly in line with comparable secondary market levels.

The Bureau of the Treasury (BTr) raised P30 billion as planned via its offering of reissued 10-year bonds as total bids reached P57.732 billion, or nearly twice the amount placed on the auction block.

This brought the total outstanding volume for the series to P425.6 billion, the Treasury said in a statement.

The bonds, which have a remaining life of seven years and three months, were awarded at an average rate of 6.124%. Accepted bid yields ranged from 6.075% to 6.14%.

The average rate for the reissued papers rose by 4.3 basis points (bps) from the 6.081% fetched for the series’ last award on May 6 but was 62.6 bps lower than the 6.75% coupon for the original issuance.

This was also 5.17 bps above the 6.0723% quoted for the seven-year bond — the benchmark tenor closest to the remaining life of the papers on offer — and 3.2 bps higher than the 6.092% 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 BTr.

A trader said the government fully awarded its offering of reissued 10-year bonds as the auction was met with “decent demand,” with rates fetched “well within market expectations.”

“The seven-year T-bond’s average auction yield was slightly higher after reduced odds of future Federal Reserve rate cuts recently amid some progress on US-China trade negotiations, better-than-expected US non-farm jobs created recently, and as global crude oil prices corrected to new two-month highs,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Federal Reserve policymakers have already signaled they are in no rush to cut interest rates, and a government report on Friday showing the labor market is far from crumbling amid big trade policy changes only cements that stance, Reuters reported.

The Labor department’s monthly employment report showed the unemployment rate held steady at 4.2% last month. Employers added 139,000 jobs, which combined with downward revisions to prior months’ estimates showed a cooling in labor demand but nothing abrupt; by comparison, job gains averaged 160,000 last year.

US President Donald J. Trump ratcheted up his calls for rate cuts.

“Go for a full point, Rocket Fuel,” Mr. Trump said in a post on Truth Social that urged the Fed to lower rates by 100 bps. The president added that the Fed could simply increase rates again if inflation reignited.

But the latest job growth reading is already giving Fed policymakers more comfort about holding the US central bank’s policy rate steady as they watch to see how higher import tariffs affect the economy.

It “was a solid report and I was pleased with it,” Philadelphia Fed President Patrick Harker told CNBC, adding that now was the time for the Fed to hold policy steady.

Fed officials have telegraphed that they intend to do just that at their June 17-18 policy meeting.

Financial markets have been betting the Fed will wait until September to cut rates and will deliver a second reduction in borrowing costs by December; after the jobs report, they trimmed their bets on a possible third rate cut by the end of this year.

Fed officials are in a blackout period ahead of the June 18 policy decision.

Meanwhile, trade talks between the United States and China were set to extend to a second day, with tentative signs that tensions between the world’s two largest economies could be easing.

Mr. Trump put a positive spin on the talks, which wrapped up for the night on Monday and were set to resume on Tuesday.

Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts.

Any progress in the negotiations is likely to provide relief to markets given that Mr. Trump’s often shifting tariff announcements and swings in Sino-US ties have undermined the world’s two biggest economies, disrupted supply chains and threaten to hobble global growth.

The BTr wants to raise P150 billion from the domestic market this month, or P60 billion via Treasury bills and P90 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — Luisa Maria Jacinta C. Jocson with Reuters

Allied Care Experts (ACE) Medical Center – Tacloban, Inc. to hold 2025 Annual Stockholders’ Meeting on July 3

NOTICE OF ANNUAL STOCKHOLDERS’ MEETING

DEAR STOCKHOLDERS:

Please be informed that the Annual Stockholders’ Meeting of Allied Care Experts (ACE) Medical Center – Tacloban, Inc. (“ACEMC-Tacloban”) will be held on July 3, 2025 (Thursday) at 8:00 o’clock in the morning, via Zoom Webinar, in light of the COVID pandemic.

For the conduct of the Webinar, please register on or before June 16, 2024, through the following link:

https://us06web.zoom.us/meeting/register/8q1X6IyZRQ67Ew7da08cCQ

Once you have successfully registered, you will receive a confirmation email containing information about the webinar meeting.

The link will provide you the process for the registration. You will receive a confirmation email once you have successfully registered in the platform, including the details and procedures in the conduct of the meeting. Voting will be done via the online tool which you can access once you have logged in to the Webinar; voting in the election of directors may also be done in absentia through the above link.

The meeting shall be recorded (visual and audio) for future reference. The Agenda:

  1. Call to Order
  2. Invocation
  3. Determination of Quorum
  4. Welcome Message
  5. Reading and Approval of the Minutes of the Y2024 Annual Stockholders’ Meeting
  6. Presentation and Approval of the Y2024 Audited Financial Statements
  7. President’s Report
  8. Ratification of the Acts and Proceedings of the Board of Directors, Officers, and Management of the Corporation for the period June 20, 2024 to July 2, 2025
  9. Election of the Board of Directors for the year 2025-2026
  10. Appointment of External Auditor for the year 2025
  11. Other Matters
  12. Adjournment

Only stockholders of record at the close of business on June 13, 2025, Friday, shall be entitled to notice of and to vote at the meeting. If you cannot personally attend the meeting, you may opt to send your proxy to attend in your behalf. Kindly submit your duly executed proxy form with the undersigned, via email, at acemctacloban2015@gmail.com not later than 5:00 p.m. on July 2, 2025, but preferably, on June 27,2025, to enable your proxy to register in the Zoom Webinar. Attached is a sample proxy form for your reference. [NOTE: Management is not soliciting proxies.]

The Information Statement and Management Report and SEC Form 17-A are available at the Corporation’s website at https://acemctacloban.com

You may contact the undersigned via email at acemctacloban2015@gmail.com through mobile number 09670124954 if you have inquiries/concerns regarding the meeting.

Very truly yours,

(Original signed)
Ma. Lourdes Opinion, MD
Corporate Secretary

 


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PSALM sets minimum bid price for CBK hydro plants but withholds amount

CBKPOWER.COM

STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has set the minimum bid price for the sale of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex but opted not to disclose the amount.

“This development is part of PSALM’s continuing efforts to implement its privatization program in accordance with the government’s policy to encourage private sector participation and optimize asset value,” PSALM said in a statement on Tuesday.

The company said the minimum bid price, which will serve as the benchmark for evaluating offers, was determined through “a comprehensive financial valuation process and consultation with relevant government agencies,” ensuring alignment with prevailing market conditions.

“We are not disclosing the minimum bid price,” PSALM President and Chief Executive Officer Edward A. Dela Serna told BusinessWorld.

Mr. Dela Serna said that protecting the integrity of the bidding process is among the reasons for withholding the amount.

The 796.64-megawatt (MW) hydroelectric power complex is currently under a 25-year build-rehabilitate-operate-transfer agreement between independent power producer CBK Power Co. Ltd. and the National Power Corp., which will expire in 2026.

The complex consists of the 39.37-MW Caliraya hydroelectric power plant (HEPP) in Lumban, the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants in Laguna.

In its latest invitation, PSALM said the asset will be privatized on an “as is, where is” basis. The deadline for proposal submission is set for June 30.

Among the firms seeking to participate in the bidding are Thunder Consortium (composed of Aboitiz Renewables, Inc., J-POWER, and Sumitomo Corp.); Giga ACE 11, Inc. of Ayala-led ACEN Corp.; First Gen Prime Energy Corp. of Lopez-led First Gen Corp.; Marubeni Corp. of Japan; and Semirara Mining and Power Corp. of the Consunji Group.

Other interested parties include Hexa Philippines, the local renewable energy platform of global infrastructure manager I Squared Capital; Razon-led Prime Infrastructure Capital, Inc.; San Miguel Global Power Holdings Corp.; and Korea Water Resources Corp. — Sheldeen Joy Talavera

Day of the Jackal author Frederick Forsyth, 86

AMAZON.COM

LONDON — British novelist Frederick Forsyth, who authored best-selling thrillers such as The Day of the Jackal and The Dogs of War, has died aged 86, his publisher said.

A former correspondent for Reuters and the BBC, and an informant for Britain’s MI6 foreign spy agency, Mr. Forsyth made his name by using his experiences as a reporter in Paris to pen the story of a failed assassination plot on Charles de Gaulle.

The Day of the Jackal, in which an English assassin, played in the film by Edward Fox, is hired by French paramilitaries angry at Mr. De Gaulle’s withdrawal from Algeria, was published in 1971 after Mr. Forsyth found himself penniless in London.

Written in just 35 days, the book was rejected by a host of publishers who worried that the story was flawed and would not sell as Mr. De Gaulle had not been assassinated. Mr. De Gaulle died in 1970 from a ruptured aorta while playing Solitaire.

But Mr. Forsyth’s hurricane-paced thriller complete with journalistic-style detail and brutal sub-plots of lust, betrayal, and murder was an instant hit. The once poor journalist became a wealthy writer of fiction.

“I never intended to be a writer at all,” Mr. Forsyth later wrote in his memoir, The Outsider – My Life in Intrigue. “After all, writers are odd creatures, and if they try to make a living at it, even more so.”

So influential was the novel that Venezuelan militant revolutionary Illich Ramirez Sanchez, was dubbed “Carlos the Jackal.”

Mr. Forsyth presented himself as a cross between Ernest Hemingway and John le Carre — both action man and Cold War spy — but delighted in turning around the insult that he was a literary lightweight.

“I am lightweight but popular. My books sell,” he once said.

His books, fantastical plots that almost rejoiced in the cynicism of an underworld of spies, criminals, hackers, and killers, sold more than 75 million copies.

Behind the swashbuckling bravado, though, there were hints of sadness. He later spoke of turning inwards to his imagination as a lonely only child during and after World War Two.

The isolated Mr. Forsyth discovered a talent for languages: he claimed to be a native French speaker by the age of 12 and a native German speaker by the age of 16, largely due to exchanges.

He went to Tonbridge School, one of England’s ancient fee-paying schools, and learned Russian from two emigre Georgian princesses in Paris. He added Spanish by the age of 18.

He also learned to fly and did his national service in the Royal Air Force where he flew fighters such as a single seater version of the De Havilland Vampire.

THE REPORTER
Impressing Reuters’ editors with his languages and knowledge that Bujumbura was a city in Burundi, he was offered a job at the news agency in 1961 and sent to Paris and then East Berlin where the Stasi secret police kept close tabs on him.

He left Reuters for the BBC but soon became disillusioned by its bureaucracy and what he saw as the corporation’s failure to cover Nigeria properly due to the government’s incompetent post-colonial views on Africa.

It was in 1968 that Mr. Forsyth was approached by the Secret Intelligence Service, known as MI6, and asked by an officer named “Ronnie” to inform on what was really going on in Biafra.

By his own account, he would keep contacts with the MI6, which he called “the Firm,” for many years. His novels showed extensive knowledge of the world of spies and he even edited out bits of The Fourth Protocol (1984), he said, so that militants would not know how to detonate an atomic bomb.

His writing was sometimes cruel, such as when the Jackal kills his lover after she discovers he is an assassin.

“He looked down at her, and for the first time she noticed that the grey flecks in his eyes had spread and clouded over the whole expression, which had become dead and lifeless like a machine staring down at her.”

THE WRITER
After finally finding a publisher for The Day of the Jackal, he was offered a three-novel contract by Harold Harris of Hutchinson.

Next came The Odessa File in 1972, the story of a young German freelance journalist who tries to track down SS man Eduard Roschmann, or “The Butcher of Riga.”

After that, The Dogs of War in 1974 is about a group of white mercenaries hired by a British mining magnate to kill the mad dictator of an African republic — based on Equatorial Guinea’s Francisco Macias Nguema — and replace him with a puppet.

The New York Times said at the time that the novel was “pitched at the level of a suburban Saturday night movie audience” and that it was “informed with a kind of post-imperial condescension toward the black man.”

Divorced from Carole Cunningham in 1988, he married Sandy Molloy in 1994. But he lost a fortune in an investment scam and had to write more novels to support himself. He had two sons — Stuart and Shane — with his first wife.

His later novels variously cast hackers, Russians, al Qaeda militants, and cocaine smugglers against the forces of good — broadly Britain and the West. But the novels never quite reached the level of the Jackal.

A supporter of the United Kingdom’s exit from the European Union, Mr. Forsyth scolded Britain’s elites for what he cast as their treachery and naivety.

In columns for The Daily Express, he gave a host of withering assessments of the modern world from an intellectual right-wing perspective.

The world, he said, worried too much about “the oriental pandemic” (known to most as COVID-19), Donald Trump was “deranged,” Vladimir Putin “a tyrant,” and “liberal luvvies of the West” were wrong on most things.

He was, to the end, a reporter who wrote novels.

“In a world that increasingly obsesses over the gods of power, money and fame, a journalist and a writer must remain detached,” he wrote. “It is our job to hold power to account.” — Reuters

BPI raises P40 billion via SINAG Bonds offer

BPI/BW FILE PHOTO

BANK of the Philippine Islands (BPI) has raised P40 billion from its latest offering of sustainable bonds, it said on Tuesday.

The final issue size for the landmark BPI Supporting Inclusion, Nature, and Growth (SINAG) Bonds was well above the initial P5-billion plan, making it the bank’s largest peso bond issuance to date, the listed lender said in a disclosure to the stock exchange.

This also marked the first tranche of the bank’s P200-billion bond and commercial paper program approved by its board of directors in October last year.

The bonds, which the Securities and Exchange Commission on March 17 confirmed to be qualified as ASEAN Sustainability Bonds, were listed on the Philippine Dealing & Exchange Corp. on Tuesday.

The papers have a tenor of 1.5 years and carry an interest rate of 5.85% per annum to be paid quarterly.

The bond offer period ran from May 20-26, closing ahead of the original May 30 end date amid strong demand. BPI Capital Corp. and Standard Chartered Bank were the joint lead arrangers and selling agents for the transaction.

Proceeds will exclusively finance or refinance eligible green and social projects in accordance with BPI’s Sustainable Funding Framework, the bank said, adding that the issuance is in line with its environmental, social, and governance strategy to integrate sustainability across its business lines.

“The enthusiastic response to the BPI SINAG Bonds reflects a growing alignment between capital markets and sustainability. We are honored by the trust placed in us and excited to channel these funds into projects that directly benefit communities and the environment… We remain committed to developing innovative instruments that support the country’s sustainable development goals while delivering solid value to our investors,” BPI Treasurer and Global Markets head Dino R. Gasmen said in his speech at the bond listing ceremony.

Mr. Gasmen told reporters on the sidelines of the event that client demand for the bond offer was “really huge.”

“We could have issued at least P20 billion more, but we also had to weigh it against what we can promise to you because we don’t want to borrow for sustainability purposes then we can’t deploy [the funds],” he said.

Asked if BPI will conduct more bond offerings this year, Mr. Gasmen said it would depend on market conditions, with the bank’s latest issuances enough to refinance their maturing debt, including syndicated loans.

“Dollars, we’re very confident that we have enough. We had an issuance early this year. I don’t think any bank has returned [to the offshore debt markets] apart from us,” he said.

In March, the bank raised a record $800 million from its offering of dual-tenor dollar-denominated bonds, which marked its return to the international capital markets after a year. Broken down, it issued $500 million in five-year and $300 million in 10-year Reg S senior unsecured fixed-rate notes.

The five-year tenor fetched a coupon of 5%, while the 10-year tranche was priced at 5.625%.

Mr. Gasmen added that they could refinance the P33.7-billion Sustainable, Environmental, and Equitable Development or SEED bonds, which were issued in August last year and are set to mature in February 2026.

BPI may consider issuing bonds with longer tenors to cater to investors looking for higher yields, he said.

“Let’s look at what the opportunities in the market are because one of the reasons why we’re keeping it (bond tenors) short is, first of all, there’s a lot of uncertainty in the market,” he said. “The other factor which will determine the tenor is the current monetary policy cycle of the BSP (Bangko Sentral ng Pilipinas) because right now, they’re (interest rates) going down.”

BPI Chief Sustainability Officer and Chief Financial Officer Eric M. Luchangco told reporters at the same event that the bank is working on a blue bond framework that they expect to complete within the year.

The bank’s net income increased by 9% year on year to P16.6 billion in the first quarter.

BPI’s shares went down by P1.70 or 1.22% to close at P137.90 apiece on Tuesday. — A.R.A. Inosante

Empire East sets P25-B five-year spending plan

EMPIRE-EAST.COM

LISTED real estate developer Empire East Land Holdings, Inc. has earmarked P25 billion in capital expenditures (capex) over the next five years, supported by its 426-hectare land bank to drive sustained growth.

“With a P25-billion capex pipeline over the next five years and a 426-hectare land bank, we are well positioned to lead sustainable growth while offering high-value products in strategic locations,” Empire East President and Chief Executive Officer Anthony Charlemagne C. Yu said during the company’s annual stockholders’ meeting on Tuesday.

Mr. Yu said Empire East, the mid-cost housing arm of Megaworld Corp., remains cautiously optimistic about its growth trajectory amid stable macroeconomic indicators.

“Our view is cautiously optimistic. Macro indicators show stability and the 2025 midterm elections for higher spending and infrastructure momentum, while interest rates remain elevated in the short term, the demand for housing, especially the mid-market segment, remains very strong,” he said.

Mr. Yu said Empire East is not affected by the ongoing condominium oversupply that has impacted the mid-income segment.

“The oversupply perception doesn’t fully apply to end-user-driven developers like Empire East. Our focus is not on speculative, high-turnover units, but on essential housing for working Filipinos and young families, a segment with sustained demand,” he said.

“While some pockets of oversupply exist, especially in investor-heavy and investor-dependent areas, the broader housing backlog and urban migration trends continue to drive strong need for well-located, affordable homes,” he added.

Mr. Yu also said the company sees opportunities amid tariff-related uncertainties.

“The Philippines remains an attractive alternative for supply chain diversification in Southeast Asia, which could spur more BPO (business process outsourcing) expansion and local demand for housing,” he said.

To support affordability and flexibility for homebuyers, Mr. Yu said Empire East is offering new downpayment and extended payment term schemes.

“We also optimize unit layouts and construction timelines to keep pricing competitive without compromising quality, by working closely with banks and offering promo terms during key campaigns,” he said.

For the first quarter, Empire East posted a 7.7% increase in net income to P254.21 million from P236 million a year earlier.

Revenue rose by 11.6% to P1.55 billion, driven by a 0.2% increase in real estate sales to P1.21 billion, led by projects such as Kasara Urban Resort Residences, Pioneer Woodlands, Covent Garden, The Paddington Place, and The Rochester Garden.

Empire East shares rose by 1.94% or P0.002 to close at P0.105 apiece on Tuesday. — Revin Mikhael D. Ochave

K-pop megastars RM, V released from army, promise BTS reunion

SEOUL — K-pop supergroup BTS members RM and V were discharged from the South Korean military on Tuesday after mandatory service, as fans were counting down to the band’s comeback with more members finishing their national duty later this month.

Cheered by dozens of fans near the military base, the two members in their army uniforms saluted the crowd and said they will soon be returning to perform.

“To all the ARMYs who have waited for us in the military, I want to say I am truly, truly grateful. Please wait just a little longer and we will return with a really cool performance,” V said in front of fans and media. Known as ARMY, BTS has a global fan club with millions of loyal followers.

Two other bandmates, Jin and J-Hope, were discharged from the military earlier and have been performing solo and appearing on variety shows.

Jimin, Jungkook, and Suga are set to wrap their military service as late as June 21, media reports say.

The globally recognized K-pop icon BTS has not released a group project since 2022 and its members are hoping for the reunion.

“After pursuing our own little ventures, we are now coming back together, and I love that for us,” J-Hope told a magazine in December.

Entertainment group HYBE, which manages BTS, is planning a huge event called BTS FESTA this week for fans to celebrate the band’s 12th anniversary. It is not clear whether the members will show up, but Jin attended last year.

Shares in HYBE rose 2.3% as of 0211 GMT, hitting their highest point in more than three years.

Holding a flower bouquet for their discharge from the army, RM said he wanted to perform the most.

“(Members) would feel the same, but stage performance, I want to perform the most. I’ll work hard to make an album soon and come back to the stage,” RM said, after playing the sax for the crowd.

Groupies from around the world flew into South Korea to celebrate the return of their “life-changing” stars.

“It is just absolutely joyful. That is now four out, two again tomorrow and then Suga. Then we have OT7, we have seven kings back with us,” said Philip Darbyshire, a 72-year-old Australian fan, referring to the band’s seven members. “It is just wonderful.” — Reuters

PHL banks to ramp up investments in cybersecurity, collaborate with gov’t

THE PHILIPPINE banking industry, in cooperation with the government and private sector, is set to boost its cybersecurity-related technology spending to improve the delivery of financial services, the Bankers Association of the Philippines (BAP) said.

“Banks throughout the Philippines are set to ramp up their technology-related investments, seeing it as a way to boost their operational efficiencies and enhance the quality of their services to consumers,” it said in a statement.

The BAP is the lead organization of Philippine universal and commercial banks. It has 43 members, made up of 19 local banks and 24 foreign bank branches.

The industry group said Philippine banks will employ a “whole-of-ecosystem approach” to cybersecurity and work with the Bangko Sentral ng Pilipinas (BSP) and other government agencies such as the Department of Information and Communications Technology and National Privacy Commission.

“This approach would include other private-sector entities such as fintech (financial technology) firms, e-commerce companies, and telcos,” it said.

Coordinated initiatives would include joint public advisories on cyber hygiene, the creation of a national scam or fraud database, and the launch of consumer education campaigns, real-time coordination protocols between the private sector and government agencies, and the standardization of scam typologies, the group added.

“This would boost the banking industry’s existing initiatives — which include ramping up spending on cybersecurity infrastructure, awareness campaigns, and introducing innovative cybersecurity measures to replace existing mechanisms, such as one-time passwords,” the BAP said.

“The industry’s future initiatives come at a critical juncture for the Marcos administration, with public policy likely to have a significant impact on Philippine banks,” it added.

BSP-supervised financial institutions lost P5.82 billion due to cyberattacks in 2024, up 2.6% from the previous year, the central bank earlier said.

An estimated 84.5% of Philippine organizations experienced an average of three cybersecurity breaches last year due to gaps in cyber risk management, according to a survey by cyber defense company BlueVoyant. — Luisa Maria Jacinta C. Jocson

SM Hotels targets to finish 7 projects by 2029

SMHOTELS.COM.PH

SM HOTELS and Convention Corp. (SMHCC), the hospitality arm of listed real estate developer SM Prime Holdings, Inc., is expanding its portfolio with seven new hotel projects scheduled for completion by end-2029.

The new developments will add more than 1,300 rooms to SMHCC’s inventory, increasing its total room count to 3,923 from the current 2,602, SM Prime said in an e-mail statement on Tuesday.

The company expects 969 rooms to be delivered by 2028, bringing the SM property group’s hotel count to 17 from 10.

Six of the upcoming hotels will operate under the Park Inn by Radisson brand, while one will be developed under the Radisson brand, reinforcing SMHCC’s presence in the midscale and high-end segments.

The hotels will be located in Metro Manila, Calabarzon (two), Central Luzon, Cebu (two), and Laoag. The sites were selected based on tourism potential and integration with existing SM Prime assets.

“This rollout reflects our belief in the long-term potential of the Philippine domestic travel and tourism market,” SMHCC Executive Vice-President Peggy E. Angeles said.

“We are building on the strength of regional tourism while delivering quality accommodations that enhance the value of our ecosystem of malls, events spaces and mixed-use developments,” she added.

SMHCC’s five-year expansion is backed by a P10-billion capital expenditure program, fully funded through internally generated cash flows.

“Our hotels serve as catalysts for local economic activity. We are focused on creating long-term value — through jobs, tourism flows and sustained growth that enhances SM Prime’s diversified revenue base,” Ms. Angeles said.

SMHCC’s current portfolio includes luxury hotels (Conrad Manila, Radisson Blu Hotel Cebu), leisure properties (Taal Vista, Pico Sands), and business hotels (Park Inn by Radisson, Lanson Place Mall of Asia).

SM Prime shares declined by 1.96% or P0.45 to close at P22.50 apiece on Tuesday. — Revin Mikhael D. Ochave

ASEAN cooperation for food security

STOCK PHOTO | Image by Sandy Zebua from Unsplash

(For reasons of timeliness, two columns on ASEAN food security will preempt the scheduled second part of Mr. Villegas’ AI series which will resume on June 25. — Ed.)

A recent poll indicated that the Filipino public would like the Marcos Jr. Administration to assign the highest priority to food security, together with healthcare and infrastructure.  Considering that a major reason for the high cost of food in the Philippines can be attributed to poor infrastructure such as farm-to-market roads, irrigation, and post-harvest facilities, one can conclude that addressing the shortage and poor state of physical infrastructures in the countryside can contribute directly to food security.

It is, therefore, worth celebrating that on May 26 to 27, the ASEAN Business Advisory Council (ASEAN BAC), through its chairperson Joey Concepcion, presented to the 10 ASEAN leaders (plus Timor-Leste) a plan for stronger collaboration in food and agriculture. We should rejoice that while there are parts of the developed world that are repudiating closer economic ties among countries by raising very high tariffs, we in the ASEAN are ever looking for ways to foster closer economic ties.

Mr. Concepcion highlighted the importance of the ASEAN Food Security Alliance (AFSA), which will serve as a platform for regional cooperation in agriculture and food systems. The most important objective of this alliance is the combatting of mass poverty and the enhancement of food resilience by harnessing the strengths of the leading agribusiness enterprises of the ASEAN.

It is notable that through the efforts of private businesspeople and entrepreneurs like Joey Concepcion and other members of the ASEAN BAC, it is the private sector that is taking the lead in driving collaborative and scalable solutions that build resilience, reduce hunger, and promote inclusive growth across the ASEAN region. Especially in the field of agribusiness, it is desirable that the private business sector assume the role of the engine of growth, with the Government providing the indispensable public infrastructure and regulatory framework.

Among its agribusiness peers in the ASEAN (namely Indonesia, Malaysia, Thailand, and Vietnam), the Philippines is the most in need of assistance because it has the highest rate of poverty (22% of the population and 16% of households) compared to Malaysia which has 0.1%, Thailand’s 0.6%, and Vietnam’s 4.2%.

Our claim that the Philippines has one of the highest GDP growth rates in the Indo-Pacific region, though accurate, sounds hollow when we consider our scandalously high rate of mass poverty. Given our population of more than 110 million people, we should be ashamed of the fact that close to 20 million Filipinos are going to bed hungry every day, especially children whose brains are consequently being damaged permanently because of undernourishment. Mass poverty in the Philippines is principally due to the underdevelopment of the agricultural sector, the Achilles’ heel of the economy.

It is also not a coincidence that the three ASEAN countries cited above with very low poverty incidences have been very successful in developing their respective agricultural sectors.

Next to improving the lot of the millions of small farmers in the Philippines, the second most effective way of reducing poverty is to improve the viability and profitability of the micro, small and medium-scale enterprises (MSMEs). That is why it is laudable that there are parallel efforts of the ASEAN BAC to support MSMEs to revitalize a digital platform for the Philippines’ previous legacy project, the ASEAN Mentorship for Entrepreneurs Network. The enhanced platform will strengthen mentor-to-mentor engagement while also advancing the two other critical pillars for MSMEs: access to money and markets.

Since 2024, the ASEAN BAC has begun organizing a coalition of agribusiness companies to explore regional partnerships, with several collaborations already underway with Malaysian counterparts. Engagements are also ongoing with stakeholders through the embassies of Indonesia, Malaysia, Brunei, and Thailand, while discussions with a Cambodian farm association and an agricultural company are in progress.

One of the key outcomes from the summit in Malaysia is the partnership between ASEAN BAC Philippines and Malaysia Digital Economy Corp. (MDEC). Facilitated by Go Negosyo, the entrepreneurship advocacy group founded by Joey Concepcion, the collaboration will promote the adoption of digital agricultural technologies across ASEAN. The goal is to empower farmers and “agripreneurs” with innovative tools, support sustainable practices, and drive digital transformation in the agribusiness sector which encompasses the whole value chain from farming to post-harvest, cold storage, logistics and transport, food processing and all the way to retailing.

In the Philippines, for example, farming accounts only for 10% of GDP while agribusiness represents 30% of GDP. This initiative of ASEAN BAC should make it clear that progress in any sector, especially in agribusiness, should be driven primarily by the private sector, with the State playing the important support role of building the necessary public infrastructure (farm to market roads, etc.) and providing the regulatory framework (monetary, fiscal, and trade policies).

Replicating the initiatives of Go Negosyo at a more modest level, a private think tank called the Center for Food and Agribusiness, which is linked to the University of Asia and the Pacific in Manila, is organizing an Agribusiness Roadshow bringing some 45 Philippine “agripreneurs,” large and medium-scale, to Ho Chi Minh, Vietnam on June 24 to 27 to meet their counterpart Vietnamese agribusiness executives.

The purpose of the road show is for the Philippine delegation to learn business practices at the various levels of the agribusiness value chain — from farming to post-harvest, cold chain, logistics, manufacturing, and retailing — which Vietnam has developed more advanced technology and business knowhow than their counterpart in the Philippines.

Just as an indication of how far advanced the Vietnamese are in the field of agribusiness, the total annual agribusiness exports of Vietnam to the world, especially China, amounts to $62.4 billion compared to the measly $7.75 billion of the Philippines. An even more impressive accomplishment of Vietnam (which explains why it surpassed the Philippines in GDP per capita four years ago) is that its total exports to the world amounted to $424 billion in 2024 compared to our $73 billion.

Already legendary is the way Vietnam became, in record time, the second largest coffee exporter in the world, displacing Colombia in less than two decades. It did this by having a most effective program in which the State played a major role in helping coffee farmers significantly improve their productivity.

It is no surprise then that the UA&P’s Center for Food and Agribusiness, in a more modest bilateral effort, decided to bring an important Philippine business delegation to Ho Chi Minh to foster closer cooperation between the two ASEAN countries in trade, investment, technology transfer, and research collaboration in the field of agribusiness.

(To be continued.)

 

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

bernardo.villegas@uap.asia

Sly Stone, leader of 1960s funk band, 82

Sly Stone, the driving force behind Sly and the Family Stone, a multiracial American band whose boiling mix of rock, soul and psychedelia embodied 1960s idealism and helped popularize funk music, has died at the age of 82, his family said on Monday.

Mr. Stone died after a battle with chronic obstructive pulmonary disease and other health issues, a statement from his family said.

“While we mourn his absence, we take solace in knowing that his extraordinary musical legacy will continue to resonate and inspire for generations to come,” the statement said.

Mr. Stone was perhaps best known for his performance in 1969 at the historic Woodstock music festival, the hippie culture’s coming-out party.

His group was a regular on the US music charts in the late 1960s and 1970s, with hits such as “Dance to the Music,” “I Want to Take You Higher,” “Family Affair,” “Everyday People,” “If You Want Me to Stay,” and “Hot Fun in the Summertime.”

But he later fell on hard times and became addicted to cocaine, never staging a successful comeback.

The confident and mercurial Mr. Stone played a leading role in introducing funk, an Afrocentric style of music driven by grooves and syncopated rhythms, to a broader audience.

James Brown had forged the elements of funk before Mr. Stone founded his band in 1966, but Mr. Stone’s brand of funk drew new listeners. It was celebratory, eclectic, psychedelic, and rooted in the counterculture of the late 1960s.

“They had the clarity of Motown but the volume of Jimi Hendrix or The Who,” Parliament-Funkadelic frontman George Clinton, a contemporary of Mr. Stone and another pioneering figure in funk, once wrote.

When Sly and the Family Stone performed, it felt like the band was “speaking to you personally,” Mr. Clinton said.

Mr. Stone made his California-based band, which included his brother Freddie and sister Rose, a symbol of integration. It included Black and white musicians, while women, including the late trumpeter Cynthia Robinson, had prominent roles.

That was rare in a music industry often segregated along racial and gender lines.

Mr. Stone, with his orb-like Afro hairstyle and wardrobe of vests, fringes, and skin-tight leather, lived the life of a superstar. At the same time, he allowed bandmates to shine by fostering a collaborative, free-flowing approach that epitomized the 1960s hippie ethic.

“I wanted to be able for everyone to get a chance to sweat,” he told Rolling Stone magazine in 1970.

DISC JOCKEY TO SINGER
Born Sylvester Stewart in Denton, Texas, he moved as a child with his family to Northern California, where his father ran a janitorial business.

He took the show business name Sly Stone and worked for a time as a radio disc jockey and a record producer for a small label before forming the band.

The band’s breakthrough came in 1968, when the title track to their second album, “Dance to the Music,” cracked the Top 10.

A year later, Sly and the Family Stone performed at Woodstock before dawn. Mr. Stone woke up a crowd of 400,000 people at the music festival, leading them in call-and-response style singing.

Mr. Stone’s music became less joyous after the idealistic 1960s, reflecting the polarization of the country after opposition to the Vietnam War and racial tensions triggered unrest on college campuses and in African American neighborhoods in big US cities.

In 1971, Sly and the Family Stone released There’s a Riot Goin’ On, which became the band’s only No. 1 album.

Critics said the album’s bleak tone and slurred vocals denoted the increasing hold of cocaine on Mr. Stone. But some called the record a masterpiece, a eulogy to the 1960s.

In the early 1970s, Mr. Stone became erratic and missed shows. Some members left the band.

But the singer was still a big enough star in 1974 to attract a crowd of 21,000 for his wedding to actress and model Kathy Silva at Madison Square Garden in New York. Silva filed for divorce less than a year later.

Sly and the Family Stone’s album releases in the late 1970s and early 1980s flopped, as Mr. Stone racked up drug possession arrests. But the music helped shape disco and, years later, hip-hop artists kept the band’s legacy alive by frequently sampling its musical hooks.

The band was inducted into the Rock & Roll Hall of Fame in 1993 and Mr. Stone was celebrated in an all-star tribute at the Grammy Awards in 2006. He sauntered on stage with a blond Mohawk but bewildered the audience by leaving mid-song.

In 2011, after launching what would become a years-long legal battle to claim royalties he said were stolen, Mr. Stone was arrested for cocaine possession. That year, media reported Mr. Stone was living in a recreational vehicle parked on a street in South Los Angeles.

Mr. Stone had a son, Sylvester, with Silva. He had two daughters, Novena Carmel, and Sylvette “Phunne” Stone, whose mother was bandmate Cynthia Robinson. — Reuters

Consumer lending seen to sustain momentum

PHILSTAR FILE PHOTO

CONSUMER LENDING in the Philippines is expected to sustain its growth momentum as easing inflation continues to boost economic activity, according to global information and insights company TransUnion.

“Lower inflation is creating a more supportive environment for consumer credit growth. We expect to see stronger repayment capacity among existing borrowers and higher demand among new-to-credit consumers, particularly in the small-ticket and revolving credit segments,” TransUnion Philippines President and Chief Executive Officer Peter Faulhaber said.

Philippine headline inflation cooled to an over five-year low of 1.3% in May from 1.4% in April and 3.9% in the same month a year ago, the government reported last week.

This brought the five-month average to 1.9%, a tad below the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target band. The central bank expects inflation to average 2.3% this year.

Meanwhile, outstanding loans of universal and commercial banks grew by 11.12% year on year to P13.25 trillion at end-April, the slowest growth in five months, according to the latest BSP data.

Still, consumer loans jumped by 24% to P1.67 trillion as of April, a tad faster than the 23.9% increase recorded a month prior.

TransUnion said both lenders and borrowers, especially credit unserved and underserved consumers, will benefit from the rise in credit activity driven by robust household consumption.

It said that according to its Q1 2025 Consumer Pulse Study, 37% of the Filipinos it surveyed plan to increase their retail purchases — including clothing, electronics, and durable goods — over the next three months, while 29% expect to boost their discretionary spending, or expenses related to dining out, travel, and entertainment.

Increased retail activity will translate to more transactions using credit cards, buy now, pay later (BNPL) services, and small installment loans for these purchases, it added.

“Close to two-thirds (65%) of surveyed Filipinos in the TransUnion Q1 2025 Consumer Pulse Study said that they have used BNPL, citing it was easy to apply as the primary reason for availing the service,” TransUnion said.

Alongside boosting consumers’ purchasing power, easing inflation is also expected to boost household incomes, which could improve their ability to repay their debt, it added.

“TransUnion predicts that lenders with strong risk management strategies may see marginal improvements in early-stage delinquency ratios over the next two quarters.”

It said lenders should use data-driven strategies to help manage credit risks while growing their portfolios.

“At TransUnion, we’re deeply committed to fostering a more inclusive and resilient credit ecosystem. By equipping lenders with advanced analytics and empowering consumers — especially those that are new to credit — we help ensure that more Filipinos can access the financial tools they need to thrive and participate confidently in the economy,” Mr. Faulhaber said.

TransUnion also operates as a comprehensive private credit reference agency in the Philippines, helping clients in various sectors manage their finances. — BVR