Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1757

Real property valuation reform bill seen to enhance transparency

JC GELLIDON-UNSPLASH

AFTER the Tax Reform for Acceleration and Inclusion (TRAIN) Law and Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act comes Real Property Valuation and Assessment Reform Act (RPVARA) which forms “Package 3” of the Department of Finance’s (DoF) “Comprehensive Tax Reform Program,” (CTRP). The measure has been approved by both chambers of Congress and is awaiting President Marcos’ signature.

RPVARA is envisioned to promote the development of “a just, equitable, and efficient real property valuation system.” According to the Finance department, this reform measure will help improve tax collections without increasing tax rates while broadening the tax base used for property and related taxes. Among the measure’s key provisions is the development of a comprehensive and up-to-date electronic database of all real property transactions, the law will address the current opacity of the real estate market.

The DoF’s Bureau of Local Government Finance (BLGF) stated the following issues the RPVARA intends to address:

• Multiple, overlapping valuations resulting in wide disparities in values from various valuing agencies.

• Outdated valuations used for governmental purposes, especially for national (BIR’s Zonal Value and local taxation (Schedule of Market Value)

• Outdated valuations result in costs, foregone revenues: relatively disproportionately higher valuation when government pays compared to when it collects taxes.

• No single agency responsible for ensuring that property valuations are compliant with international valuation standards.

• Absence of a comprehensive real property electronic database to support regular property valuations

• Impacts of the possible increase and expected regular updating of the “single valuation base”

• Developers – Higher acquisition costs and annual taxes on land banking activities

• Property Owners – Higher real property taxes if the local government decides not to manage the assessment levels

• Investors – Investors will be affected from acquisition, operations to disposal with the higher transaction costs and updated real property taxes

During consultations in 2021, BLGF found out that nearly 40% of schedule of zonal values (BIR) and 60% of schedule of market values (LGU) are outdated with 46/120 revenue district offices (RDO) and 137/227 Local Government Units (LGUs) not revising their values in the last three years.

Due to the wide gap between the actual transaction price the zonal value of the BIR and the assessed value of the LGU, the practice of declaring a lower transaction price, closer to zonal value, has not been an uncommon practice in the Philippines.

PRIORITY BILL
A priority legislation of President Ferdinand R. Marcos, Jr., senators unanimously approved Senate Bill No. 2386 or the RPVARA, sponsored by Senator Gatchalian.

Once signed into law, this would address the government’s outdated valuations and would unify the varied valuation systems and methodologies of different agencies conducting or requiring valuations such as Bureau of Internal Revenue (BIR), LGU through its Assessor’s Office, Department of Environment and Natural Resources (DENR) and government financial institutions.

This measure will try to address several issues, but here are the top provisions that will have the most impact:

• Unify Government Valuation – all government values for taxation will be through the LGU’s schedule of market values (SMV). The BIR’s zonal value will be retired once, the new SMV is fully implemented within two years.

• The SMV will then be updated every 3 years. With the regular updating of values, transaction costs will be higher. For real property taxes, the LGU has the prerogative to lower the tax rate and assessment level to minimize impact to their constituents.

• Transparency of Transactions – the registry of deeds is tasked to share all registered transactions. Furthermore, BIR, notaries public, officials issuing building permits, and the geodetic engineers conducting surveys within a locality should also share relevant real property transactions data regularly. The measure includes creation of Real Property Information System which will maintain an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declaration in the country.

The new and updated values will take effect within two years after the law’s enactment and will be updated every 3 years.

While there may be early jitters with the proposed law, in the long run, RPVARA will have a positive impact on the real estate industry. Once enacted into law, this will ensure consistency in government valuation across the country, increase transparency in how property values are determined with the implementation of the national transaction registry, and promote efficiency with the streamlining of the valuation process as well as equity by ensuring fair property taxation.

The law will also elevate overall market confidence that is essential for a healthy real estate market which encourages investment and economic growth.

RPVARA AND A REBOUNDING PROPERTY MARKET
As Colliers Philippines previously highlighted, the property market is starting to rebound. Property values will most likely follow the trajectory of the sustained and projected growth of the Philippine economy.  Once enacted, the measure would ensure that the government’s new unified schedule of market values will be updated to be more reflective of the market.

While less residential projects were launched in Metro Manila for the entire 2023 and Q1 2024, we emphasize that developers have tweaked their expansion strategies and are now looking at major urban areas outside the confines of Metro Manila, Cebu, and Davao. Over the past two years, significant residential launches and completion in thriving business hubs such as Iloilo, Bacolod, Cagayan de Oro, Pampanga, Bulacan, and Tarlac, were also tracked.

While the enactment of the bill will likely raise the acquisition and disposal costs and real property taxes of all property players across the spectrum, from developers to investors and end-users, the implementation of the measure is expected to infuse much needed transparency to the current opacity of the Philippine real estate market and provide developers with a solid benchmark as they initiate their land banking efforts post-pandemic.

As the real estate market awaits with cautious optimism the president’s signature to finally enact the bill, the game-changing details will be in the law’s yet-to-be-proposed implementing rules and regulations (IRR) which all property players need to prudently scrutinize.

 

Paul Vincent Ramirez is senior director and head of Valuation Services at Colliers Philippines.

PHL deficit across 7 administrations

Last week, the Development Budget Coordination Committee (DBCC) launched a legacy book, 50 Years in Harmony: A Historical Review of the Development Budget Coordination Committee commemorating the 50th anniversary of DBCC, which spanned from 1970 to 2020. It was held at the Department of Budget and Management (DBM) offices.

I downloaded the online copy — 321 pages — and among the contributors are DBM Undersecretary and Chief Economist Joselito R. Basilio, former DBM Ministers Jaime Laya and Alberto Romulo, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, former Finance Secretary Benjamin Diokno, Supreme Court Chief Justice Alexander Gesmundo, Bangko Sentral Governor Eli Remolona, and DBM Secretary Amenah Pangandaman.

Among the chapters that caught my attention was that by Mr. Diokno, “The Lifeblood of the Nation: Tax Structure, Policy and Performance in the Past 50 Years.” I like it because he summarized the fiscal performance by administration, from the old Marcos to Mr. Duterte. I include data from his two tables with this column, plus I added data from the year 2023 under President Ferdinand “Bongbong” Marcos, Jr.

Among the interesting pieces of data gleaned from these tables are the following.

One, the Ramos administration had the highest revenues/GDP ratio at 16.4%, followed by Duterte at 15.7%.

Two, when it comes to disbursements and spending, the Duterte administration had the highest at 21% of GDP followed by Estrada at 17.6%. The current Marcos Jr. administration’s is actually the highest at 22% but this covers only one year and may decline in succeeding years.

Three, when it comes to the budget deficit, again Mr. Duterte had the deepest at -5.4% followed by Estrada at -3.5%. The current BBM administration actually had a deeper deficit in 2023 at -6.2%.

I also computed the average GDP growth by administration. The Benigno Aquino, Jr. administration had the fastest growth at 6.2%. One may infer that the optimal ratio would be revenues/GDP at 14-14.5%, disbursements at 15-16% of GDP, and a budget deficit at -1.5% of GDP, as conducive to faster economic growth (see Table 1).

 

Controlling spending, the deficit, and borrowings while inducing more economic growth and higher revenues are the important hallmarks of fiscal discipline and responsibility. Low borrowings lead to low interest rates and low interest payment, freeing up more public resources to fund more soft and hard infrastructure. The household and corporate sectors also benefit from low interest rates that will encourage more savings and investments.

DBM Secretary Pangandaman mentioned in her chapter in the book that “In his 2022 SONA, PBBM [President Ferdinand “Bongbong” Marcos, Jr.] cited the National Government Rightsizing Program (NGRP) as a priority legislation… to streamline the operations of different agencies of the Executive branch, rightsize their organizational structure and workforce complement, improve interoperability in government agencies, and eliminate functions, programs, and projects that are already redundant, overlapping, or no longer necessary.”

I like this. It is consistent with the pursuit of fiscal discipline and responsibility.

Meanwhile, the current DBCC is focused on attaining GDP growth targets of 6-7% in 2024, 6.5 to 7.5% in 2025, then 6.5 to 8% in 2026-2028. The deficit level remains deep at -6.2% last year, with targets of -5.6% this year, -5.2% next year, -4.7%, -4.1%, and -3.7% in 2026, 2027, and 2028 respectively.

The biggest threat to controlling the deficit and borrowings is the continuing noise about war preparations vs China over rocks that are 700-800 kms away from the shores of Metro Manila. I think we should put more trust in the Department of Foreign Affairs in resolving maritime use over disputed territories with China, Vietnam, other Asian claimants. Spending P2 trillion for the Armed Forces’ procurement alone (of submarines, battleships, and missiles) when we do not even have the funds to build more flyovers in many traffic-choke cities and municipalities in the country, is a very wasteful, and is irrational use of borrowed money.

GOLD RESERVES
Meanwhile, as the US Dollar as reserve currency is being weaponized against countries and economies that do not obey the political and military agenda of the US, more countries are slowly building up their gold reserves instead. Member countries of BRICS (Brazil, Russia, India, China, South Africa) and some aspiring members like those from the Middle East and Africa are showing slow but consistent building of their gold reserves.

The G7 member-countries except Canada have high but static levels of gold reserves: the US has 8,130 tons; Germany 3,350 tons; Italy 2,450 tons; France 2,440 tons; the UK 310 tons; Japan 765 in 2019, to 846 in 2021-2024; and Canada, none.

Thailand and Singapore are also taking this path while the Philippines reduced then recently started building up its gold reserves (see Table 2).

Last Friday saw gold prices reaching a new all-time high of $2,400+ per ounce. This is an indicator that demand is rising faster than supply, and the trend will continue so long as the US Dollar continues to be a weaponized currency to prop up its political agenda instead of promoting more trade and commerce in the world.

 

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

minimalgovernment@gmail.com

Insurers book higher premium income

BW FILE PHOTO

THE INSURANCE INDUSTRY saw its premium income rise by 10.86% in the first quarter, driven mainly by the life sector, data from the regulator showed.

The industry booked combined premiums of P108.529 billion in the January-to-March period, higher than P97.901 billion in the same period last year, according to data posted on the Insurance Commission’s (IC) website on Monday.

The reports were based on submissions made by 129 out of 132 licensed life and nonlife insurers and mutual benefit associations (MBAs).

As a result, the insurance sector’s combined net income surged by 44.98% to P14.29 billion in the first quarter from P9.86 billion a year prior.

The industry’s assets grew by 7.09% to P2.38 trillion from P2.22 trillion, with total invested assets rising by 10.87% to P2.12 trillion.

Meanwhile, its total net worth declined by 2.95% year on year to P457.85 billion from P471.77 billion.

Their combined paid-up capital and guaranty fund grew by 5.77% to P86.18 billion last quarter from the revised P81.38 billion in the same period in 2023.

Total liabilities rose by 9.8% to P1.92 trillion from P1.75 trillion.

Benefits paid out by the industry increased by 12.06% year on year to P39.25 billion in the first quarter from P35.03 billion.

The IC said insurance density, or the amount of premium per capita or average spending of each individual on insurance, rose by 10.66% to P965.56 in the first quarter from P872.56.

Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, inched up to 1.78% from 1.75%.

LIFE INSURERS
Broken down, the life insurance sector’s total premium income rose by 12.04% year on year to P87.66 billion in the first quarter from P78.24 billion, data based on submissions from 33 out of 34 licensed companies showed.

The growth was driven mainly by variable life premiums, which grew by 6.8% to P55.06 billion. Traditional life premiums also rose by 22.17% to P32.6 billion.

New business annual premium equivalent went up by 7.99% to P16.71 billion.

The life insurance sector’s consolidated net income surged by 48.52% to P9.65 billion in the first quarter from P6.495 billion a year prior.

Total assets went up by 8.91% to P1.86 trillion as of March, while liabilities rose by 12.07% to P1.6 trillion.

Invested assets increased by 10.15% to P1.8 trillion from P1.64 trillion.

Meanwhile, the sector’s total net worth went down by 7.01% to P263.67 billion from P283.55 billion.

Total paid-up capital, which includes licensed servicing companies, grew by 11.16% to P34.905 billion.

Benefit payouts rose by 20.18% year on year to P31.21 billion last quarter.

NONLIFE INSURERS, MBA
On the other hand, total net premiums written by nonlife insurance companies rose by 6.98% to P16.99 billion in the first quarter from P15.88 billion in the same period last year, based on data submitted by 55 out of 57 licensed firms.

The motor sector was the biggest contributor in terms of line of business with P7.17 billion in net premiums written in the period, rising by 10.87% year on year. Fire followed with P3.12 billion, up by 9.13% from a year prior.

Meanwhile, total premiums earned dropped by 1.34% to P15.78 billion from P15.99 billion, while gross premiums written climbed by 7.76% to P28.2 billion.

The nonlife insurance sector’s combined net profit declined by 4.08% year on year to P6.23 billion from P6.55 billion.

Its total assets dropped by 2.48% to P363.89 billion at end-March and total liabilities decreased by 3.57% to P232.31 billion.

Nonlife insurers’ overall net worth slipped by 0.5% to P131.58 billion.

Meanwhile, the sector’s total paid-up capital grew 2.42% year on year to P50.03 billion from P48.85 billion.

Total invested assets increased by 18.49% to P178.46 billion, while losses incurred by the sector declined by 4.83% to P6.23 billion.

Lastly, MBAs recorded total contributions or premiums worth P3.88 billion at end-March, up by 2.62% year on year, based on submissions from all 41 licensed companies, IC data showed.

The sector’s total assets grew by 10.53% to P152.58 billion, with invested assets rising by 11.12% to P139.27 billion.

Total fund balance climbed by 11.82% to P62.596 billion. MBAs’ combined guaranty fund likewise inched up by 0.83% to P1.24 billion.

The sector recorded an aggregate net surplus of P2.12 billion, surging by 189.8% from the year-ago level.

Meanwhile, the sector’s benefit payments and expenses declined by 27.99% to P1.81 billion.

HEALTH MAINTENANCE ORGANIZATIONS
Meanwhile, the health maintenance organization (HMO) industry turned a profit in the first quarter on the back of higher revenues, even amid a rise in benefit payouts, separate IC data released on Monday showed.

“Despite the big increase in the payout of healthcare benefits, which is considered as expenses in the accounting records of HMOs, HMOs returned to profitability in the first quarter due to higher revenues,” the IC said in a statement on Monday.

The sector booked a net income of P6.8 million in the January-to-March period versus the P319-million net loss incurred in the same period last year, based on data from the interim financial statements submitted by all 24 licensed HMOs to the IC. This was also better than the P2.12-billion net loss recorded by the sector in 2023.

Total revenues grew by 20.09% year on year to P18.68 billion in the first quarter from P15.55 billion.

The IC said this was driven by a 17.44% increase in membership fee collections to P17.77 billion.

Meanwhile, healthcare benefits and claims paid out by HMOs rose by 17.3% to P15.05 billion at end-March from P12.83 billion a year prior.

The HMO industry saw its total assets rise by 10.07% to P71.31 billion at end-March from P64.79 billion a year prior, with total invested assets increasing by 4.47% to P18.49 billion.

Total liabilities likewise grew by 16.11% year on year to P61.49 billion.

Meanwhile, the sector’s total equity decreased by 16.96% to P9.82 billion as of March.

Its total capital stock grew by 43.9% year on year to P8.14 billion from P5.66 billion. — A.M.C. Sy

Phinma Properties to launch luxury development reflecting traditional Filipino heritage

PHINMA PROPERTIES said it will launch on June 1 its Likha Residences Davao, a luxury townhouse project that will showcase traditional Filipino heritage.

The townhouse project is being developed on a 1.7-hectare property along Hizon Road in Doña Asuncion, Barangay Pampanga, and it will be the first of its kind to feature elevators in some of its units, said Alicia de la Peña-Villanueva, sales and marketing head of Likha Residences Davao, during P.E.P Talks at SM Lanang Premier last week.

She said the project will comprise 94 townhomes with modern architecture showcasing traditional Filipino heritage, designed by the Mañosa and Co. architectural firm, which was founded by the late Francisco “Bobby” Mañosa, a Philippine National Artist for Architecture and Allied Arts.

The townhouses will be made from indigenous materials with traditional Filipino motifs.

“The reason why we decided to partner with them for the design is because we as a company value our Filipino identity. We want to create a development that essentially will be the next modern heritage house in Davao. We want to be able to champion Filipino architecture, and climate-conscious features and we wanted to craft something very meticulous and something that will last for generations to come here in Davao,” Ms. Villanueva said.

Likha Residences Davao is an exclusive, low-density community with each townhome standing three floors high. The ground floor has a foyer, one bedroom with a toilet and bath, a private garden, staff quarters, an outdoor utility and drying yard, and a carport with a two-car capacity.

The second floor includes the living room, dining room, kitchen, powder room, and balcony. The master bedroom with a toilet and bath and the second bedroom with a toilet and bath are located on the third floor.

“You have the option of getting an elevator for your townhouse especially if you have a relative who needs an elevator,” Ms. Villanueva said.

According to Ms. Villanueva, the project is masterplanned to ensure that occupants can get maximum airflow and sunlight in the house without getting too much heat.

“All of the units will have the same architectural design but in terms of the layout, it depends on the module that you will choose,” Ms. Villanueva said.

The amenities include a clubhouse, a multifunction hall, pool, and a property management office.

Ms. Villanueva said the company is targeting businessmen and families who want just the right size for their homes as their market.

“Lanang area is an upcoming premier address and we are targeting families who want the right size of their home, essentially you don’t want to maintain such a big house anymore. Also businessmen, and families who want to have an investment for their kids,” she said.

Phinma is eyeing to turn over approximately 55 units in 2027.

The whole project is expected to be completed in 2030.

The Launch will be highlighted with a series of events that showcase the intersection of art lifestyle and modern living by collaborating with Emilia’s jewelry for the event “Art You Can Wear.”

“Likha means to create and that is why we want these art series. It is essentially a different way of creating a lot of different things that represent you, represent the Filipino culture,” Ms. Villanueva said. — Maya M. Padillo

MPIC’s mWell expands digital healthcare product line

MWELL CHAIRMAN and MPIC Chairman and CEO Manuel V. Pangilinan

MWELL, the digital healthcare arm of Metro Pacific Investments Corp. (MPIC), announced on Monday its expanded line of digital healthcare products.

This includes the Mind Health Score feature and the new generation of mWell watches and rings.

“The number of hospitals in aggregate in this country is about 2,000 hospitals. We represent only about 1.2% in number… but that’s still not enough to adequately cover the healthcare requirements of our people,” mWell Chairman and MPIC Chairman and Chief Executive Officer Manuel V. Pangilinan said during the launch event.

Mr. Pangilinan said that this is why the company deploys technology to expand the reach of Metro Pacific hospitals and services.

“People’s health actually determines the country’s economic progress. We think that health is the basic right for all, equal to clothing, shelter, food, because health enables all of those things to be enjoyed,” said mWell CEO and President and MPIC Chief Finance, Risk, and Sustainability Officer June Cheryl Cabal-Revilla.

The mWell application is an integrated platform that allows online consultation, daily health tracker, financial wellness, laboratory, pharmacy, home care and emergency quick response.

According to the company, the Mind Health Score feature serves as a “personal compass as you go on a self-guided journey towards enhancing emotional, social, and cognitive well-being.”

The user can evaluate their thoughts, emotions, decisions, and goals with full awareness.

It also helps to understand the person’s triggers to help reduce stress and even offers a playlist featuring guided meditations for stress relief, relaxation, and better sleep.

The mWellness Score can also pull in data from both Apple Health and Google Fit.

Meanwhile, the mWell watches let users track their workouts, physical activities and overall wellness. The watch includes 100 exercise modes, heart rate, and blood oxygen.

“Paired with the mWell app, it allows app users to view daily mWellness Score based on exercise, light activity, sedentary time, and step count,” the company said.

mWell also introduced its light and smart mWell ring that tracks sleep and important health metrics, including heart rate, heart rate variability, resting heart rate, and average oxygen saturation.

“Using the mWell Ring paired with the mWell app, one will be able to view Total sleep report, light sleep, deep sleep, rapid eye movement (REM) sleep — all in one tracker,” mWell said.

The ring is built with Titanium and comes with a seven-day battery life. It is also water resistant, lightweight and scratch free.

In terms of prices, the Power Smart Watch and Prestige Smart Watch retail for P2,499 and P2,999, respectively.

The rings have a special introductory price of P8,999 with free shipping. The available colors are silver, black, and bronze, in sizes 6-13 inches.

Metro Pacific Health Tech Corporation (MPHTC) is a wholly owned subsidiary of MPIC.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Aubrey Rose A. Inosante

Sean ‘Diddy’ Combs apologizes after video depicting attack on ex-girlfriend

SEAN ‘DIDDY’ COMBS apologizes on an Instagram video after the release of hotel surveillance video that appeared to show him attacking his ex-girlfriend. — INSTAGRAM.COM/DIDDY

MUSIC mogul Sean “Diddy” Combs posted an apology to social media on Sunday, two days after the release of hotel surveillance video that appeared to show him attacking his ex-girlfriend.

“I’m truly sorry,” Mr. Combs said in a video post on his Instagram page. “My behavior on that video is inexcusable. I take full responsibility for my actions in that video. I’m disgusted. I was disgusted then when I did it. I’m disgusted now.”

Addressing the camera directly, Mr. Combs said he had sought therapy and gone into rehab.

In the surveillance video from 2016, which was released by CNN on Friday, the rapper appears to grab R&B vocalist Casandra Ventura as she waits by an elevator in a California hotel. Clad only in a towel, he throws her to the floor, kicking her repeatedly before dragging her toward a hallway, the video shows.

A representative for Mr. Combs could not be immediately reached for further comment.

Ms. Ventura, who performs under the stage name Cassie, sued Mr. Combs in 2023, accusing him of serial physical abuse, sexual slavery, and rape during a 10-year professional and romantic relationship in which he controlled her through intimidation, drugs, and alcohol. The parties settled the matter the following day for undisclosed terms. Representatives for Mr. Combs said at the time the settlement was “in no way an admission of wrongdoing.”

Ms. Ventura’s lawsuit was one of at least four civil complaints that recently leveled sexual assault allegations against Mr. Combs.

Attorney Meredith Firetog, who represented Ms. Ventura, said Mr. Combs’ apology on Sunday does not vindicate him.

“Combs’ most recent statement is more about himself than the many people he has hurt. When Cassie and multiple other women came forward, he denied everything and suggested that his victims were looking for a payday. That he was only compelled to ‘apologize’ once his repeated denials were proven false shows his pathetic desperation, and no one will be swayed by his disingenuous words,” Ms. Firetog said in a statement.

The US Department of Homeland Security said in March it had opened an investigation into the hip-hop star and searched his homes in the Miami area and in Los Angeles; it provided no details of the nature of the investigation.

Local television images of the search showed an armored vehicle and officers carrying rifles outside Mr. Combs’ Los Angeles home. Authorities detained some people at the property with their hands bound by zip ties. — Reuters

America is joining its frenemies back in the Fossil Fuel Club

GEOGRAPHY, it’s often said, is destiny.

The paths nations follow though history are written like a script on the patterns of their rocks, rivers, plains and coasts, in ways that often confound the views of the people who inhabit them. It’s rare for a country to escape that geological fate.

Over the past two weeks, we’ve seen dramatic examples of this happening in five countries covering more than a third of the planet’s land mass.

Most notable has been President Joe Biden’s brutal round of tariffs against Chinese clean technology imports. At a time when core inflation in the US is at its highest level in nearly 30 years and disposable income growth is sputtering, pushing up the cost of consumer goods such as solar panels and electric vehicles seems perverse.* It makes more sense when you look at the other side of the energy picture. In December, US crude oil output reached 13.3 million daily barrels, the highest level of any country in history. Natural gas hit a similar global record of 106.5 billion cubic feet per day.

Biden’s justification for the tariffs is that they’re a pro-climate initiative, which will buy the US time to scale up and compete with China’s formidable clean-technology industry. You should take that with a pinch of salt, given how Washington’s wavering commitment to clean technology has seen it squander early leads in solar panels and EVs. It’s America’s strength as a fossil fuel producer that allows it to be so lackadaisical about cleaning up its act — and so will-ing, now, to suppress alternative technologies.

For most nations, the energy transition isn’t just sought for climate reasons: It’s also a strategic and economic necessity, reducing dependence on foreign exporters and the burden of imported fuel spending on the budget and balance of payments. The US, as by far the world’s biggest fossil-fuel producer, sees things differently.

The same dynamic explains why China has been so much quicker to exploit the energy transition. Switching to battery-powered vehicles makes a lot more sense when you have to import some 90% of your petroleum. Max-imizing your output of cheap renewable power seems an obvious move when domestic gas reserves are minimal, and coal resources appear to be declining in both quality and affordability. Would-be exporters see China’s shortage of indigenous energy supplies as an opportunity. In Canada, the C$34 billion ($25 billion) Trans Mountain Expansion crude oil pipeline was scheduled to load its first cargo, bound for China, on Sat-urday. The federally funded project, the most expensive in Canadian history, might seem an odd investment for the government that introduced one of the world’s most stringent carbon taxes. And yet Canada is the world’s largest oil ex-porter after Saudi Arabia, the US, and Russia.

If you believe geography (rather than the popular will) is destiny, it shouldn’t surprise you that North America’s two liberal democracies are now making common cause with authoritarian petrostates. In Australia, meanwhile, the government laid out a natural gas strategy that envisions a role for the hydrocarbon “through to 2050 and beyond.” Canberra bills its plans as consistent with a path toward net zero, but that’s a triumph of wishful thinking over reality. Such a world will see demand for gas that lacks carbon capture and storage fall nearly 90%. Australia’s LNG — a premium product that costs more to produce than about 95% of all the gas produced globally — is unlikely to survive such a shift.

Piped gas is usually cheaper than LNG, and Russia’s President Vladimir Putin was in Beijing touting Power of Siberia 2, a proposed line that would feed China from the same fields that were destined for Europe until the Ukraine war cut that route. President Xi Jinping, however, seems reluctant — in no small measure because China’s domestic renewables and green hydrogen potential, combined with its aggressive contracting of LNG supplies and piped gas from smaller, more easily manipulated Turkmenistan, means it now has little need of Russian methane.

That sounds like a world where fossil fuels are on the march — but it’s not quite as simple as that. Demand for such products is peaking, or has already.

Petroleum was the cheapest, most useful form of power in the 20th century, and the countries best-equipped to access it became the preeminent nations of that era. Most of the world, however, is fundamentally short of en-ergy. Alongside China, that’s true of the 10 developing nations who’ll account for about half the world’s population growth between now and 2050, including most of Asia and Africa. They have far more to gain from cheap, locally produced clean power than from fossil fuels that damage the health of their citizens and put them at the mercy of wealthy exporters, who seem more keen than ever to throw their weight around.

Beneath Washington’s fear of Beijing’s clean-technology success, that’s the deeper worry. Just as Britain’s early lead in coal made it the indefatigable power of the 19th century, and US dominance in oil made it a hegemon for the 20th century, China’s advances in green energy give it a formidable position in the 21st. Oil-rich America has found itself strangely entangled with crude-exporting frenemies in the Middle East through their common interest in petroleum. In the decades ahead, a decarbonizing China will find many allies whose interests are just as well-aligned with its own.

BLOOMBERG OPINION

 

*The tariffs won’t directly affect the price of EVs in the short term, since the Chinese cars being targeted are barely exported to the US. Still, they’ll make it much less likely that prices are driven lower by the threat of cheaper imported vehicles coming onto the market.

Discovery World’s Elize Point targets completion by 2026

LUXURY HOTEL and resort operator Discovery World Corp. (DWC) said its inaugural residential development Elize Point in Davao is expected to be completed by the end of 2026.

The 11-hectare Elize Point luxury subdivision is situated in the Matina district with views of the Davao Gulf and Mt. Apo.

“Per technical team, completion of site dev end of 2026,” DWC Vice-President Mary Jean D. Codiñera told BusinessWorld in an e-mailed statement last week.

Ms. Codiñera added that amenities are set to be completed by the end of 2027, with turnover expected in the same year.

It has 61 designed lots, with sizes ranging from 600 to 1,000 square meters plotted on an elevated area. This provides residents with lush surroundings and a balance between urban living and countryside calm.

The development is a legacy project, one that sets out to honor the landscape while elevating the standards of high-end living, Ms. Codiñera said.

The company also noted that 43% of the 11-hectare expanse is dedicated to open spaces and amenities.

Ms. Codiñera said that open spaces can also be in the form of a landscaped garden, wellness zones with walking or cycling tracks, and playgrounds.

Among the features of the project include underground cabling, a clubhouse, mini theater, and an air-conditioned basketball court.

“Having amenities in the development allows residents a chance to de-stress. From a swimming pool to multi-purpose courts to a gymnasium, to a theatre, and more,” Ms. Codiñera said.

According to DWC President Jose C. Parreño, Elize Point prioritizes sustainability through the utilization of rainwater catchment areas, solar panels, and water treatment facilities.

Elize Point’s Sales Pavilion broke ground at a ceremony held on March 21, attended by Ms. Codiñera, Executive Director Chris Tiu, Sterling Structures Manuel Ching, and the In-House Sales Team Head Ed Sonoy.

Elize Point is the flagship residential venture of Discovery World Corp., owned by its subsidiary, One Davao Townships Corp. — Aubrey Rose A. Inosante

PLDT says ready to negotiate with union ‘at the right time’

WIKIMEDIA COMMONS/PATRICKROQUE01

TELECOMMUNUCATIONS GIANT PLDT Inc. said it is willing to start collective bargaining negotiations with Manggagawa sa Komunikasyon ng Pilipinas (MKP), the exclusive representative of the company’s rank-and-file employees, “at the right time.”

“The time to sit down and start collective bargaining with Manggagawa sa Komunikasyon ng Pilipinas is in September 2024, not today,” PLDT said in a statement to the stock exchange on Monday.

“This is the position of PLDT Management, referring to the demand of MKP…, with which PLDT has an existing collective bargaining agreement (CBA), to commence negotiations now,” it added.

The company said the CBA will expire on Nov. 8 this year.

PLDT said the union sent PLDT Management on Feb. 20 its “Notice to Negotiate & Submission of Statement of Proposals.”

“This was followed by MKP’s filing of a notice of strike on April 5, 2024 on the ground of PLDT’s alleged refusal to bargain. The members of MKP reportedly conducted a strike vote on May 14 and 15, 2024, with a majority voting in favor of the strike,” the company noted.

PLDT cited the Labor Code, saying that both parties must meet and negotiate the renewal or modification of the CBA terms at least 60 days before it expires.

“The so-called freedom period… will begin in the first week of September, or more than three months from now and almost seven months from the time they first sent the notice to negotiate,” it said.

“Until then, the Labor Code obligates both PLDT and MKP to respect the current CBA to preserve industrial peace,” it added.

PLDT said it is “willing and able to negotiate with MKP at the right time…, (and) that is during the freedom period.”

“It is PLDT’s position that a strike conducted on this ground has no valid basis. This is supported by law and the parties’ rich bargaining history over the past 30 years.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Credit growth in PHL to post ‘declining trend’

REUTERS

CREDIT GROWTH in the Philippines could see a declining trend in the coming months, Bank of America (BofA) Global Research said on Monday.

BofA Global Research said in a report that while the Philippines has seen “faster recovery” in credit growth, it still shows a declining trend due to external factors.

Based on its Association of Southeast Asian Nations (ASEAN) Credit Growth Indicators, the Philippines was the only one to show a declining trend among five countries.

The indicators aim to “identify directional trends and key turning points for credit growth across each of the ASEAN-5 countries.” It also helps “gauge how banks’ loan growth is likely to shape up over the next one to two quarters.”

“Directional trend remains on a declining trend, unchanged due to decrease in import growth, auto sales and number of visitors. But actual credit growth has been recovering led by the return of capex (capital expenditures) spending,” it said.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed outstanding loans issued by big banks jumped by 9.4% in March from 8.6% in February.

Loans released by big banks rose to P11.8 trillion as of end-March from P10.8 trillion in the same period a year ago.

Meanwhile, the report showed that Singapore, Malaysia, Indonesia and Thailand all posted flat trends.

“This suggests that credit growth in these countries is likely to remain stable around current levels after seeing some recovery post-COVID,” it added.

BofA Global Research said it expects “tepid” credit growth in the region amid a weak economic environment.

“Our economists expect a bumpy road ahead in 2024: ASEAN-6 is forecast to grow its GDP (gross domestic product) at a below trend pace in 2024 on account of a patchy near-term exports outlook and uneven recovery in tourism,” it said.

The Philippine government is targeting 6-7% GDP growth this year. In the first quarter, the economy grew by 5.7%, better than the 5.5% a quarter prior but slower than the 6.4% in the year earlier.

BofA Global Research also noted upside risks to inflation in the region, such as high food and energy costs, imported inflation and subsidy removals.

In the Philippines, headline inflation accelerated for a third straight month to 3.8% in April.

The BSP expects inflation to settle at 3.5% this year. — Luisa Maria Jacinta C. Jocson

Actor Dabney Coleman, villainous boss in 9 to 5, 92

Dabney Coleman in a publicity still for the 1980 film 9 to 5, along with (L-R) Jane Fonda, Lilly Tomlin, and Dolly Parton. — IMDB

DABNEY COLEMAN, a character actor who brought a glorious touch of smarm to the screen in playing comedic villains, mean-spirited bosses and outright jerks in films such as 9 to 5 and Tootsie, has died at age 92.

Mr. Coleman “took his last earthly breath peacefully and exquisitely” in his Santa Monica, California home on Thursday, his daughter Quincy Coleman said in a statement on Friday on behalf of the family.

While best remembered for his arrogant, unctuous, and uncaring characters, Mr. Coleman said it was all an act.

“It’s me kidding around,” Mr. Coleman once told the New York Times.

“That’s just a guy that I’m playing, just to fool around, you know,” he said.

Not all of Mr. Coleman’s characters were cads. He won an Emmy playing a lawyer in the 1987 television movie Sworn to Silence and played Jane Fonda’s decent dentist boyfriend in the 1981 film On Golden Pond and a federal security official in 1983’s War Games.

His final screen credit was playing John Dutton, Sr. in the TV series Yellowstone in 2019.

Mr. Coleman was born on Jan. 3, 1932, in Austin, Texas. He studied law and served in the US Army before trying acting.

His early work in the 1960s and 1970s included one-off roles in a variety of television shows, as well as a semi-regular part as Marlo Thomas’ neighbor in That Girl.

His first movie job was 1965’s The Slender Thread, directed by his acting teacher and friend, Sydney Pollack, who would later hire him for Tootsie.

Mr. Coleman’s breakout role — and the one he said was his favorite — came in 1976 on producer Norman Lear’s TV series Mary Hartman, Mary Hartman. He played Merle Jeeter, the creepy mayor who has an affair with the title character, in that soap-opera spoof and in spinoffs Fernwood Tonight and Forever Fernwood.

His first big movie role — and the one that established his acting persona — was in 1980 as Franklin Hart, the sexist, egotistical business executive who harasses underlings played by Ms. Fonda, Dolly Parton, and Lily Tomlin until they take him hostage and boost corporate productivity in 9 to 5.

Mr. Coleman was no more likeable two years later in Tootsie as a soap opera director who runs afoul of Dustin Hoffman’s dressed-in-drag title character.

In 1983, he took the comic villain role even further in his first starring television role. In the short-lived sitcom Buffalo Bill, he played a radio talk show host whose idea of a tender marriage proposal was: “You’re better than 90% of those bimbos out there.”

“It is fun to play those characters because they are so well-defined,” Mr. Coleman told People magazine in 1983.

In the 1980s and 1990s, he also starred in the sitcoms The Slap Maxwell Story as a sportswriter, Drexell’s Class as a corporate raider turned teacher, and Madman of the People as a magazine columnist working for his daughter. None of the shows lasted more than two seasons.

More recent roles included HBO’s Boardwalk Empire in 2010-11 as the man who once controlled Atlantic City, New Jersey. His part had to be rewritten when Mr. Coleman was diagnosed with throat cancer, which left him unable to speak at times.

A devoted tennis player, Mr. Coleman was twice married and divorced. He had four children with his second wife, actress Jean Hale.

“My father crafted his time here on earth with a curious mind, a generous heart, and a soul on fire with passion, desire and humor that tickled the funny bone of humanity,” the statement from his daughter said. — Reuters

How well does the Philippines balance energy needs with environmental sustainability?

The Philippines fell by two notches to 72nd spot out of 126 countries* in the 2023 World Energy Trilemma Index by the World Energy Council. The report takes a look on the countries’ energy systems in terms of their performance in balancing the “trilemma” of ensuring energy security, providing access to affordable energy, and achieving environmental sustainability. The country scored 56.9 out of 100 and placed the fourth lowest in the East and Southeast Asia region.

How well does the Philippines balance energy needs with environmental sustainability?

1...1,7561,7571,758...12,775Page 1,757 of 12,775
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube