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Philippines tempers GDP targets

ECONOMIC MANAGERS are targeting 6-7% gross domestic product (GDP) growth this year. — PHILIPPINE STAR/ WALTER BOLLOZOS

THE GOVERNMENT of President Ferdinand R. Marcos, Jr. cut economic growth targets this year and in 2025 as elevated prices and high interest rates crimp household spending.

The economy is now expected to grow by 6-7% this year from the 6.5-7.5% estimate given in December, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan told a news briefing at the Presidential Palace on Thursday.

The gross domestic product (GDP) growth target range for next year was narrowed to 6.5-7.5% from 6.5-8%.

Despite the revisions, Mr. Balisacan said the Philippines would still be among the fastest-growing economies in the region, as the government tries to sustain infrastructure spending at 5-6% of economic output until the end of Mr. Marcos’ six-year term in 2028.

“The revised targets for our headline indicators considered the country’s recent economic performance in 2023 and reflect the latest developments and expectations on external factors such as global demand and trade growth, oil price movements, and expected exchange rate and inflation trends,” Mr. Balisacan said.

The statistics agency on Thursday lowered last year’s GDP growth to 5.5% from 5.6% initially reported. This was below the government’s 6-7% target and slower than the 7.1% growth in 2022.

The Development Budget Coordination Committee (DBCC) maintained the 6.5%-8% growth targets for 2026 to 2028.

“At this pace of growth, we are still on track to reducing poverty incidence from 18.1 % in 2021 to single-digit level in 2028,” the NEDA chief said.

However, Mr. Balisacan said rising food prices, as well as possible hikes in wages, transport fares and utility costs may dampen consumer spending.

“On the external front, the global economic slowdown may weaken external demand, while increasing geopolitical and trade tensions could disrupt supply chains,” he said.

General elections in major economies could lead to political shifts that may disrupt trade and investment, Mr. Balisacan added.

‘REALISTIC’
The revised growth targets are “realistic” given the current inflationary environment, weak export prospects, and “uncertain external conditions,” Cid L. Terosa, former dean of the University of Asia and the Pacific’s School of Economics, said in an e-mail.

“Countries in the region are faced with similar economic issues, and many are even projected to perform worse than the Philippines,” Mr. Terosa said.

The revised GDP targets were “expected” and “remain within reach” as the economic managers took into account the high interest rates and muted global trade, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message.

To make the target doable, the central bank should maintain a hawkish stance towards the second half of the year, Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“Downgrading growth by 0.5 percentage point may seem reasonable given some factors that may be outside the control of the government, particularly slowdown in global growth and weather challenges,” said former BSP Deputy Governor Diwa C. Guinigundo, who is now a Philippine analyst at the GlobalSource Partners.

“However, it is also important for the government to show determined leadership and sustained efforts to mitigate the risks and aim for the original target,” he said in a Viber message.

Mr. Guinigundo said it is important for the government “to show something is being done to neutralize all these destabilizing shocks.”

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said the diminished growth expectations could indicate failure on the part of the government to do more.

“The government has run out of ideas on how to grow the economy,” he said in a Facebook Messenger chat. “While many countries like Germany are facing difficulties, other countries like the US are experiencing substantial growth.”

INFLATION OUTLOOK
Meanwhile, the DBCC kept inflation targets at 2% to 4% until 2028.

Mr. Balisacan said the BSP is unlikely to keep its policy rate higher for a longer period.

“We don’t see that BSP will keep its policy rates. It will eventually go down as the (inflation) numbers become more firm,” he said.

The BSP has raised borrowing costs by 450 basis points (bps) from May 2022 to October 2023, bringing the benchmark rate to a near 17-year high of 6.5%.

Mr. Balisacan said the government is also closely monitoring global prices of staples including rice, which has driven inflation in recent months.

“With the weakening of El Niño by the middle of this year, we expect global rice prices to start declining and so looking at the rest of the year, we should be seeing those price pressures to moderate,” he said.

The DBCC also narrowed its foreign exchange assumptions for 2025 to 2028 to P55-P57 against the dollar this year, due partly to the expected reduction in Philippine exports. Foreign exchange assumptions were maintained at P55-P58 against the dollar from 2025 to 2028.

For this year, goods exports are expected to grow by 3%, lower than the previous assumption of 5%. Goods imports are also seen to increase by 4%, slower than the previous 7% growth assumption.

The Dubai crude oil price has been picking up and may increase by as much as 80% but is expected to go down to a lower range, Mr. Balisacan noted.

Assumptions for Dubai crude oil were also adjusted to $70-$90 per barrel this year and kept at $65-$85 per barrel from 2025 to 2028.

“Despite the anticipated risks, we remain optimistic about the country’s sustained growth momentum as we strive for better development outcomes,” Mr. Balisacan said.

DEFICIT
The DBCC also raised the budget deficit ceiling for the next five years as the government seeks to expand its infrastructure program to boost economic growth.

“We need to continue borrowing. It’s not in our interest to drastically reduce that deficit because that then will impact on growth,” Mr. Balisacan said.

Infrastructure projects funded by loans will boost the economy’s potential and enhance productivity, he noted.

The DBCC set a P1.48-trillion deficit ceiling for this year, slightly wider than the previous P1.39-trillion ceiling. It expects the deficit as a share of gross domestic product (GDP) to settle at -5.6% this year, from -5.1% previously.

The deficit ceiling for 2025 was also revised to P1.49 trillion from P1.23 trillion previously. The target for the deficit-to-GDP ratio was raised to -5.2% for 2025 from -4.1% previously.

“Based on the revenue and spending outlook, the deficit program will gradually decline from 6.2% in 2023 to 3.7% in 2028,” the DBCC said.

The DBCC said the new deficit path is now “projected to gradually decrease in a practical, sustainable, and strategically paced manner.

“Borrowings will be complemented by an upsurge in revenue collections over the medium term as a result of improved tax administration and recalibrated revenue measures,” the DBCC said.

The government is proposing a P6.2-trillion national budget for 2025, equivalent to 21.4% of GDP. This is 7.5% higher than this year’s budget.

“How does one justify the request to increase the budget while targeting a lower growth rate? Recall that last year was handicapped by the ‘intentional restraint’ of public spending,” Mr. Guinigundo said.

“One does not restrain public spending when we need to grow more because poverty and weak public health and education remain a big issue in our country,” he added. — K.A.T.Atienza

Bad loan ratio steady in Feb.

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE banking industry’s nonperforming loan (NPL) ratio remained steady in February, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Data from the central bank showed that the banking sector’s NPL ratio stood at 3.44% as of end-February, unchanged from end-January.

However, it was higher than the 3.31% ratio in the same period a year ago.

The February ratio was also the highest in nine months or since the 3.46% recorded in May 2023.

The amount of bad loans increased by 13.4% to P466.114 billion as of February from P411.186 billion in the same period a year ago. It also inched up by 1.2% from the P460.76 billion seen as of end-January.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. They are deemed as risk assets given borrowers are unlikely to settle such loans.

Meanwhile, banks’ total loan portfolio increased by 9.1% to P13.54 trillion in February from P12.41 trillion a year ago. Month on month, it inched up by 1.2% from P13.38 trillion in the previous month.

“The existing high interest rate and elevated inflation environment may have contributed to the rise of bad loans year on year,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in a Viber message.

“The higher cost of borrowing does put pressure on existing loans and may expose newer loans to higher probability of default due to the prevailing interest rate conditions,” he added.

The BSP has raised borrowing costs by 450 basis points (bps) from May 2022 to October 2023, bringing the benchmark rate to a near 17-year high of 6.5%.

The Monetary Board will hold its next policy review on April 8.

BSP data showed past due loans held by banks stood at P584.227 billion in February, up by 16.4% from P502.112 billion a year ago. This brought the past due ratio to 4.31% from 4.04% a year earlier.

Meanwhile, restructured loans declined by 8.9% to P292.085 billion in February from P320.542 billion a year ago. This was equivalent to 2.16% of total loans, lower than 2.58% a year earlier.

Banks’ loan loss reserves went up by 8.1% to P466.393 billion in February from P431.524 billion in the same period last year.  These borrowings made up 3.44% of banks’ portfolios, slipping from 3.48% at end-February 2023.

“For the coming months, possible Fed and local policy rate cuts in the coming months could help reduce borrowing costs,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“(This) could all somewhat improve the ability to pay of some borrowers, thereby could lead to some improvement in banks’ NPL ratio, going forward,” he added.

BSP Governor Eli M. Remolona, Jr. has said that the central bank may begin cutting rates in its next few meetings.

The BSP is widely expected to begin policy easing when the US Federal Reserve delivers its first rate cut, which is projected to be by midyear.

PSA lowers economy’s growth to 5.5% in 2023

The Philippine economy grew by 5.5% in 2023, a tad slower than initially reported. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Abigail Marie P. Yraola, Deputy Research Head

THE PHILIPPINE ECONOMY expanded by 5.5% in 2023, a tad slower than initially reported, the Philippine Statistics Authority (PSA) said on Thursday.

PSA data showed gross domestic product (GDP) — the value of all finished goods and services produced in the country at a given period — grew by 5.5% last year, slightly lower than the 5.6% initially reported on Jan. 31.

Philippine GDP growth in 2023 was slower than the 7.6% expansion in 2022. It was the weakest growth since 2020 when GDP contracted by 9.5% amid the strict lockdown.

Economic growth for the fourth quarter was also downwardly revised to 5.5%, a tad slower than the 5.6% preliminary figure. This was still lower than the 6% GDP growth in the third quarter last year and the 7.1% expansion in the fourth quarter of 2022.

On the other hand, the PSA kept the gross national income — the sum of the nation’s GDP and net primary income from the rest of the world — unchanged at 10.5% and 9.9% in 2023 and 2022, respectively.

In 2023, there were no changes to the growth in agriculture (1.2%) and the industry sector (3.6%), but the services sector’s expansion was lowered to 7.1% from 7.2% it initially reported.

For the fourth quarter, the agriculture sector grew by 1.3%, slightly slower than the 1.4% preliminary figure.

The industry sector’s growth was also revised downward to 3.1% from 3.2% initially reported.

The growth of the services sector, on the other hand, was unchanged at 7.4%.

Likewise, the PSA also downwardly revised the growth rates of the following industry subsectors: manufacturing (0.5% from 0.6%); electricity, steam, water and waste management (5.5% from 6.4%); and construction (8.4% from 8.5%).

Meanwhile, the following services subsectors grew faster than previously reported: real estate and ownership of dwellings (5.5% from 3.9%), information and communication (5% from 3.6%), financial and insurance activities (12% from 11.8%), education (8.1% from 7.9%) and professional and business services (6.1% from 6%).

On the expenditure side, government spending grew by 0.6% in 2023, slightly quicker than the 0.4% preliminary figure. In the fourth quarter, state spending contracted by 1%, less than the 1.8% decline that was initially reported.

Household consumption growth was unchanged at 5.6% for 2023, and 5.3% for the fourth quarter.

For trade in goods and services, the PSA revised the imports growth in the fourth quarter to 2% from 2.9% previously. Exports shrank by 2.5% in the October-to-December period from the 2.6% decline previously reported.

On an annual basis, exports growth was upgraded to 1.4% from 1.3% previously, while import growth was revised downwards to 1% from 1.6% previously.

Gross capital formation, the investment component of the economy was raised to 5.9% in 2023 from 5.4% previously.

For the fourth quarter, gross capital formation growth was upwardly revised to 11.6% from the preliminary estimate of 11.2%.

National account revisions are based on approved revision policy, which is consistent with international standard practices, the PSA said.

Proposed tax exemptions on local films seen to boost the industry

DENISE JANS-UNSPLASH

EXEMPTING local movie producers from amusement and value-added taxes would improve the competitiveness of Filipino cinema, an industry official said.

Filed last month, House Bill No. 10167, or the Philippine Movie Industry Promotions Act, also seeks to provide customs exemption on the importation of materials and equipment needed for local movie production, a move seen to increase the production budget of movies which could improve the quality of locally produced films.

“This groundbreaking initiative… represents a significant stride forward in recognizing cinema not only as a form of entertainment but as a powerful medium that shapes Filipino culture and empowers the creative workforce,” Directors’ Guild of the Philippines President Mark A. Meily told BusinessWorld in an e-mail.

Explaining the need for the bill, Party-list Rep. Marissa P. Magsino said that movie producers need to spend P10 million to P50 million to produce “quality” movies. “Producing a local film is a very risky investment, with producers needing to invest huge capital with little chance of getting a fair return on their investment.”

Mr. Meily said the tax breaks under the bill will help in “alleviating financial burdens and reducing operational costs for producers.”

Film director and writer Jose Javier Reyes said in a meeting with the Metro Manila Council (MMC) in February that the local film industry is “heavily taxed” as movie producers need to pay “three types of taxes for each film, including 10% amusement taxes, together with other taxes such as value-added tax and income tax.”

“With these tax incentives, local movie producers will be able to increase the movie’s budget and improve the quality of filmmaking in the Philippines,” Ms. Magsino said in the bill’s introductory note. “With the exemption from amusement tax in exhibiting local films in their cinemas and theaters, venue proprietors and operators will be encouraged to exhibit more Filipino movies.”

It would also encourage greater investment in the local film industry, Mr. Meily said. “This crucial measure not only streamlines the importation process but also makes the Philippines an attractive destination for co-productions with other countries.”

The proposed measure also strengthens the local film industry by “nurturing collaborations” between filmmakers.

“The House bill underscores the government’s commitment to fostering an environment conducive to the growth and development of the local film industry,” he added.

In February, the Metro Manila Council passed a resolution suspending the collection of amusement tax from film screenings of local movies for the next three years.

Metro Manila Development Authority Chairman Romando S. Artes said in a statement that local government units will amend their local revenue codes to “waive the amusement tax for Filipino movies exhibited in Metro Manila from Jan. 8 to Dec. 24 of every year for the next three years.”

Local chief executives supported the resolution following a meeting with Mr. Reyes, who told the MMC that the local film industry has “declined significantly” and suffered a dismal performance since the pandemic happened. — Kenneth Christiane L. Basilio

TV5 adapts ’80s revenge tale into a teleserye

ORIGINALLY penned by legendary comic book writer (and film director) Carlo J. Caparas, then brought to life by actor Rudy Fernandez as a 1980s action film adaptation, Lumuhod Ka Sa Lupa has found its way back into the limelight via a new TV series.

“This new [potential] blockbuster series is exciting, especially for people like me who are big fans of Rudy Fernandez. It is a modern retelling of the movie adaptation of the Carlo J. Caparas comics, extended into a teleserye format,” Dino Laurena, chief operating officer of TV5, said at its press launch on April 2.

“It is part of TV5’s summer campaign ‘Wow na wow sa panahon ng tag-araw,’ which brings in a new lineup of afternoon teleseryes,” he added.

Lumuhod Ka Sa Lupa follows Norman Dela Cruz (played by Kiko Estrada), a working student aspiring to become a lawyer. His life takes an unexpected turn when his mother Tacing (played by Ana Abad Santos), engages in a land dispute with her estranged non-biological brother Benito Balmores (Gardo Versoza) that results in tragedy.

After several years, Norman returns as the successful lawyer Abra Espiritu, with plans to avenge his mother. However, he finds himself torn as he falls in love with Benito’s daughter, Mercy Balmores (Sarah Lahbati).

Mr. Estrada told the press that he feels the immense pressure of taking on a role penned and played by iconic personalities.

“It’s very emotional for me because, two years ago, I didn’t know if I would continue acting,” he said. “I gave years to the industry and thought it might be time to give up. [Then] this came along, and binigay ko ang lahat sa serye na ‘to (I gave everything to this series).”

For Albert Langitan, one of the series’ directors, there was no one better to play the lead.

“Ten years ago, sinabi ko kay Kiko na dapat maging action star siya (I told Kiko that he should become an action star). Years passed and here we are,” he said.

As an adaptation, Lumuhod Ka Sa Lupa has big shoes to fill — and the entire production is aware of it. Ms. Lahbati said that she also felt the heavy weight of being the leading lady, since it had been eight years since she last had a major role in a teleserye.

Mr. Langitan said that there may be high expectations, continuing both the comic book legacy and the 1980s action film legacy, but the goal is to match their impact.

“For now, this show is slated to run for 13 weeks. We don’t know how much longer it will be, but we made sure there are no throwaway characters, that all of them have a role to play to push the narrative forward,” he said in Filipino.

The TV5 show is made in cooperation with Studio Viva and Sari-Sari.

Also in the cast are Sid Lucero, Rhen Escaño, Mark Anthony Fernandez, Andrew Muhlach, Phoebe Walker, Andre Yllana, Ashley Diaz, Annika Co, Rose Van Ginkel, Jeffrey Hidalgo, and Jeric Raval.

Lumuhod Ka Sa Lupa premieres on April 8 at 2:30 p.m., with same-day catch-ups on the Sari-Sari Channel at 8 p.m. It will air Mondays to Fridays after noontime show Eat Bulaga. — Brontë H. Lacsamana

Bitanga family moves Rappler stake to publicly listed MRC Allied

REUTERS

THE Bitanga family, known for its diversified investment portfolio, is moving its 31.2% stake in Rappler Holdings Corp., the company behind news site Rappler, from privately held Dolphin Fire Group, Inc. to publicly listed MRC Allied, Inc., both owned by the family.

“We would like to inform the exchange that on (April 4), the board of directors approved that MRC Allied will purchase significant ownership interest in Rappler Holdings Corp., the principal owner of an internationally recognized digital online platform,” the listed holding company told the stock exchange on Thursday.

MRC Allied, engaged in property development, mining exploration, and renewable power generation, plans to acquire Dolphin Fire’s ownership stake in Rappler Holdings through a share swap. This means MRC will exchange its own stocks for Dolphin Fire’s shares.

Dolphin Fire is a holding company with media and entertainment investments across Southeast Asia.

In a Viber message, Alfred Benjamin R. Garcia, a senior research analyst at AP Securities, Inc., said that this move might be linked to MRC’s expansion into the information and communications technology sector, following its earlier investment in Philippine Telegraph & Telephone Corp. (PT&T).

“It could potentially tie in with their plan to revitalize PT&T as a major player in the telco game, but so far the rationale for the investment is unclear,” he said. “MRC could be planning to set up Rappler as a platform to help promote its future business ventures, including the relaunch of PT&T.”

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the announcement led to a spike in trading of MRC stock.

“But that seems more speculative than fundamental at this stage,” he added.

Mr. Colet suggested that investors should wait for Rappler’s latest financial statements to be released to better understand its business performance and future prospects.

“It is important to find out the share swap valuation and terms, and whether the deal is fair to minority shareholders given that this is a related party transaction,” he said.

“While Rappler is a popular news platform, the digital media landscape is competitive and challenging, so we have to see if this investment can generate significant returns for MRC shareholders,” he added.

Following the announcement, MRC shares improved by 28.04% or 30 centavos to P1.37 apiece on Thursday. — R.M. D. Ochave

French movie The Second Act to open the 77th Cannes Film Festival

A SCENE from The Second Act. — FESTIVAL-CANNES.COM/CHI-FOU-MI PRODUCTIONS

PARIS — French comedy The Second Act will open this year’s 77th Cannes Film Festival, the organizers said on Wednesday.

The movie, whose original French title is Le Deuxieme Acte, is a comedy road-trip movie directed by Quentin Dupieux. It features Lea Seydoux, Vincent Lindon, and Louis Garrel among its star actors.

This year’s Cannes Film Festival runs from May 14 to May 25. — Reuters

Rockwell Land board OK’s P5-B loan facility with BDO to fund capex projects

THE BOARD of Rockwell Land Corp. has approved a P5-billion term loan facility with BDO Unibank, Inc. to fund its projects, the listed property developer announced on Thursday.

The loan will have a term of up to ten years, Rockwell Land said in a disclosure.

“The proceeds of the loan will be used to fund capital expenditures, land acquisitions, and other investments,” the company said.

The latest loan funding of Rockwell Land with BDO comes after the company’s board approved a P5-billion loan facility with Metropolitan Bank & Trust Co. in January.

The loan has a term of up to seven years and will be also used to fund capital expenditures, land acquisitions, and other investments.

Rockwell Land is the real estate unit of Lopez-led First Philippine Holdings Corp. The company has properties in the residential, office, retail, and leisure segments.

Some of the Rockwell Land’s properties include Rockwell Center and Power Plant Mall in Makati, as well as Rockwell Business Centers in Ortigas and Mandaluyong.

On Thursday, Rockwell Land shares were unchanged at P1.48 per share. — Revin Mikhael D. Ochave

Spotify is changing the way it charges customers, with new plans and prices

SPOTIFY Technology SA plans to raise the price of its popular audio service in several key markets for the second time in a year, a crucial step toward reaching long-term profitability.

The streaming giant will increase prices by about $1 to $2 a month in five markets by the end of April, including the UK, Australia, and Pakistan, according to people familiar with the matter. It will raise prices in the US, its largest territory, later this year, said the people, who asked not to be identified discussing confidential plans.

Spotify shares jumped 4.6% to $281.92 at 9:35 a.m. in New York.

The higher prices will help cover the cost of audiobooks, a popular service introduced late last year. Spotify offers customers up to 15 hours of audiobook listening a month as part of their paid plan. While the company pays publishers for books, it has so far only collected additional revenue from listeners who exceed the limit.

The Swedish audio company is also going to introduce a new basic tier that will offer music and podcasts — but not audiobooks — for the current $11 monthly price of an individual premium plan, said the people. Users of that plan will need to pay for audiobooks.

The new basic tier is the first of what will be several new pricing options from Spotify. The company has also been working on a “supremium” plan, which would charge customers a higher price for access to high-fidelity audio, among other features, as Bloomberg reported last year.

For years, Spotify offered most customers two options — a free, advertising-supported music service with limited functionality and a paid listening product with unlimited access.

But the company has lost money every year since it went public in 2018, largely because it pays out about 70% of its sales in royalties to the music industry. Spotify paid record labels, artists, and others more than $9 billion last year — from $13.2 billion in revenue.

Management has attempted to reduce Spotify’s reliance on the music industry by offering other types of entertainment.

The company dabbled in video before deciding to focus on offering many different kinds of audio. It began by pouring billions of dollars into podcasts, an emerging field of on-demand audio. While management has said podcasts will turn a profit this year, Spotify also fired thousands of employees and curtailed its investment in original audio programming.

Last year, the company announced big plans in audiobooks, a field dominated by Amazon.com, Inc.’s Audible. While Audible customers must pay to listen to almost any book, Spotify offered its customers free, limited access. The results so far have been strong, at least in terms of consumption.

Spotify’s move into other kinds of programming has alarmed its partners in the music industry, who fret the company will try to reduce their royalties. As a result, major music companies have been pushing Spotify and its competitors to raise prices.

While Netflix, Inc. has doubled the price of its most popular plan in recent years, Spotify only raised prices in major markets last year for the first time since introducing its premium audio service to the US in 2011. Despite concerns that some subscribers would cancel, the company posted its best year of user growth ever, with 113 million new sign-ups to its free and paid services.

Spotify had 602 million users at the end of 2023, including 236 million paying customers.

The success of the price increase has given management confidence to seek even more. Under the new pricing, individual plans will go up by about $1 a month, while family plans and so-called duo plans for couples will rise by $2.

Spotify’s biggest competitors, Apple, Inc. and Amazon.com, Inc. have also raised prices for their music services.

Music companies and audio services are also discussing ways to generate additional money from the most ardent fans. Currently, all listeners pay the same rate for access to a musician’s catalog. But there are fans willing to pay far more to support an artist they love, as evidenced by the rising price of concert tickets, merchandise, and even vinyl for Korean artists.

Among the various options, streaming services have discussed charging people more for early access to new music. Yet the companies are reluctant to significantly alter the main paid product – such as Spotify’s $11-a-month, all-you-can-listen plan. Whether or not management figures out how to capitalize on the more-loyal fans, the cost of that main service is only going up. — Bloomberg

Metro Retail Stores opens new distribution hub in Santa Rosa, Laguna

LISTED Metro Retail Stores Group, Inc. has opened a new distribution center in Santa Rosa, Laguna, as part of its expansion strategy in Luzon.

“The significance of this new and modern warehouse transcends more than just logistics; it is the keystone of our ambitious plan to expand our Metro Store presence in Luzon,” Metro Retail Chief Operating Officer Manuel C. Alberto said in a statement on Thursday.

The new distribution center aims to ensure more communities have access to the company’s services and products while contributing to economic growth and job creation in the region, he added.

The three-hectare distribution center can handle up to 25,000 cases daily for both inbound and outbound processes, bringing its maximum throughput to 1.5 million cases monthly, the company said.

For future growth, the distribution center has a designated expansion area within a 10-hectare property to accommodate internal requirements and possible external partners.

“The distribution center is dedicated to strengthening Metro Retail’s supply chain and servicing its current network of stores, laying the groundwork for the company’s ambitious expansion plans in Luzon over the next five years,” the company said.

“This notable capacity effectively supports Metro Retail’s extensive network of stores across Luzon and the Visayas,” it added.

According to the company, the distribution center has a selective racking system capable of accommodating pallets up to five and seven high, with a total capacity of up to 20,000 pallet positions, 20 inbound and outbound docking areas equipped with dock levelers, and over 130 closed-circuit television cameras and several laser beam smoke detectors.

It is also equipped with solar-ready infrastructure as part of reducing the company’s carbon footprint.

Metro Retail has 64 branches across Luzon and Visayas. Its store formats include Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.

On Thursday, Metro Retail shares rose by 0.69% or one centavo to P1.45 apiece. — Revin Mikhael D. Ochave

House & Garden

IMDB

Movie Review
Zone of Interest
Directed by Jonathan Glazer

JONATHAN GLAZER’s Zone of Interest begins with an image of solid black held for an interminable time, Mica Levi’s sound collages growling from the big screen, then cut to a German family picnicking in a lakeside meadow. They pack up, go home, arrive after sunset, fall asleep (mother and father in separate beds). Next morning father is hurriedly dressing but the children are playing a little game, blindfolding him and leading him carefully to the front courtyard where they surprise him with a new canoe, and of course if you know anything about the film’s premise you’re waiting — but even if you don’t know anything you can’t help tense up a little, wondering why is the camera so claustrophobically locked in the direction of the house, why are we seeing the canoe only from one side and not the other? Finally, father has to leave, stepping away from the canoe, and we cut to that long-anticipated reverse shot — father climbing onto his horse, a guard tower looming over him as he rides to work.

It’s the perfect domestic situation: freshly constructed two-story house with black iron railings and tiled roof, a vast garden carpeted with immaculately manicured grass and straight limbed young trees, with bright bunches of phlox, roses, azaleas, dahlias — oddly enough flowers common to North America (you might think the film had been sponsored by House & Garden), not to mention vegetables (beetroot, fennel, kohlrabi, cabbage, even a hive for honey). Best of all, the father’s commute is a mere minute away, out past the lawn and into the gates of Auschwitz.

A brilliant conceit though Glazer can’t be credited for the idea: the title comes from Martin Amis’ novel of the same name, inspired by the life of one Rudolf Hoss, Auschwitz’s longest-lasting commandant. Glazer found Hoss more interesting and dispensed with Amis’ melodrama of a love triangle between the commandant’s wife and a German officer: the director shot much of the film not in Hoss’ real house but in a nearby building also adjacent to the camp, restored to look like Hoss’ house; he installed multiple cameras throughout to allow the actors to move freely without worrying about camera angles and blocking (basically Big Brother in Auschwitz, or a three-dimensional ant farm).

Glazer made the decision not to let us see Auschwitz but hear it. Sound designer and longtime collaborator Johnnie Burn spent a year building a library of sound effects — collecting testimonies and events, studying a map of the camp to determine distance and possible reverberations. Burn’s magic culminates with the moment where Hoss’ mother-in-law looks at the glow from the windows and listens to the muted roar of crematorium flames; she leaves the next day with only a scribbled note as explanation.

Oh, there are weaknesses. Glazer, possibly to contrast with the implied grimness, inserts the story of a Polish girl planting apples along the way for camp workers to find and eat; he surrounds this note of hope with Levi’s rumbling collages. The note feels oddly out of place; Glazer’s grip on the film is so remarkably tight any loosening feels like a compromise of the director’s uncompromising approach.

A more serious flaw I couldn’t quite articulate till Glazer introduced his most audacious conceit (skip this paragraph if you haven’t seen the film): Hoss experiences a kind of time-slip and senses — perhaps even hears — the camps’ ultimate fate: to become museums dedicated to the memory of the victims, attendants conscientiously putting out stanchions, sweeping the floor, polishing display glass exhibiting thousands of abandoned shoes.

Maybe that’s my problem. Glazer likely intended his film to be a way of tearing off the scar tissue we’ve formed over the memories — approach from an angle we haven’t quite seen before, the everyday point of view of those either responsible or complicit — but the unintended result at least for me is of sanitizing the memory, keeping it at arm’s length so we can regard it from a position of safety, behind display glass. There’s intelligence and care and perhaps sincerity in Glazer’s approach, but I submit he doesn’t transform his material so much as render it appetizing for the arthouse circuit, maybe horticulture enthusiasts (Are those dwarf banana trees and Majesty palms in the greenhouse?).

Can’t believe Hoss is merely the super-bureaucrat depicted in this film either — he was a virulent anti-Semite who rose to the position of commandant through the force of his enthusiasm, an innovator who streamlined the killing process and suggested Zyklon B as the most efficient way to eradicate thousands. I’d say Hoss had more to do on his office phone than dictate a memo promising punishment to any officer damaging the camp’s beloved lilac bushes.

And it isn’t as if this hasn’t been done before: Alain Resnais’ Night and Fog — working from a script by camp survivor Jean Cayrol — is an impassioned plea to learn from previous lessons and beware of upcoming fascists, but also a levelheaded unflinching look at the work put into the camps, from the government contractors (hired with a bribe or two) to the medical experiments (usually without anesthesia) to the matter-of-fact bulldozing of bodies into mass graves — and instead of silence or experimental music, Resnais deploys shockingly cheerful compositions from Hanns Eisler, almost the kind of tune you’d hear playing in a grade school science documentary. All done in 30 minutes, and no less forceful for being so brief.

ICTSI unit added to Ocean Network’s China-Thailand-Philippines service

THE operations of Subic Bay International Terminal Corp. (SBITC), a unit of Razon-led International Container Terminal Services, Inc., will now be part of Ocean Network Express’ China-Thailand-Philippines (CTP) service.

“The service links the Port of Subic to East Asia, complementing the existing route between the Philippines and Singapore by further enhancing convenience for customers,” SBITC said in a media release on Thursday.

The service will link the port of Subic to East Asia while also complementing existing routes from the Philippines to Singapore.

The CTP service is a  2,741 twenty-foot equivalent unit (TEU) boxship, which uses four 2,400 to 2,700 TEU vessels.

As the unit of ICTSI joins Ocean Network’s regional services, it will also provide a direct link between Thailand and Subic through the  Laem Chabang port.

The company said the service will move around the Laem Chabang (Thailand), Cai Mep (Vietnam), Manila (Philippines), Subic (Philippines), Qingdao (China), Pusan (South Korea), Shanghai (China), Laem Chabang with a turnaround time of 28 days. 

SBITC is the subsidiary of ICTSI that manages New Container Terminals 1 and 2 at the Subic Bay Freeport Zone.

At the local bourse on Thursday, shares in the company shed P8.20 or 2.49% to end at P321 apiece. — A.E. O. Jose

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