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JG Summit Holdings net income surges to P20.2 billion

GOKONGWEI-LED conglomerate JG Summit Holdings, Inc. said its net income reached P20.2 billion in 2023, up by 30 times from the P700 million net income the prior year, led by higher revenues from its airline and real estate businesses.

“Incorporating more favorable foreign exchange and mark-to-market adjustments, net income leapt to P20.2 billion, 30x the P0.7 billion reported in the same period last year,” JG Summit said in a stock exchange disclosure on Tuesday.

JG Summit saw a 14% increase in 2023 revenues to P343.8 billion led by the first full year of unrestricted travel demand coupled with the broad-based growth in its real estate unit and the steady improvement in its food and petrochemical sales.

The conglomerate’s core net income surged to P19.6 billion in 2023 from P6.2 billion in 2022.

“In 2023, we saw our airline and property businesses benefiting from fully lifted mobility restrictions while we carefully navigated the tough inflationary environment that affected demand and margins, especially for our food business,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said. 

“Our petrochemical unit, however, still suffered from weaker overall demand but we are encouraged by the internal progress of our transformation program that ensures it remains competitive when the cycle turns,” he added.

For the air transportation business, Cebu Air, Inc. (CEB) recorded a P7.9-billion net income in 2023, a reversal of the P14-billion net loss in 2022 due to more efficient operations and lower fuel costs.

The airline’s revenues rose 60% to P90.6 billion as it served 20.8 million passengers and increased flights by 30% year on year.

 As of end-2023, CEB’s fleet consisted of 85 aircraft. It operates in 60 destinations across 108 routes with over 2,700 weekly flights.

 “CEB’s efforts to recover capacity and efficiently serve the strong travel demand bore fruit as it reclaimed its first full-year profitability since the pandemic,” JG Summit said.

 For the real estate and hotels business, Robinsons Land Corp. (RLC) recorded a 24% jump in its net income to P12.1 billion. Its top line reached P39 billion led by its malls, hotels, and residential businesses.

 RLC Residences posted a 26% increase in net sales take-up to P21.3 billion while joint ventures net sales take-up improved 117%.

 For the food business, Universal Robina Corp. (URC) saw a 13% decline in its 2023 net income to P12.2 billion. Its revenues rose by 6% to P158.4 billion following the expansion of its agro-industrial division, the post-price correction recovery of its international business, and the growth in most of its domestic categories.

To support its expansion efforts, URC is investing in a 31-hectare production plant in Malvar, Batangas where many of the company’s products that would be introduced in the coming years would be manufactured.

 For its petrochemicals business, JG Summit Olefins Corp. (JGSOC) narrowed its net loss to P12.9 billion in 2023 as it began to recognize as expenses the interest on project-related debt and depreciation on the newly completed plants.

 The company’s revenues expanded by 6% to P38 billion amid lower petrochemical selling prices.

 “As the industry remained strained during the prolonged petrochemical cycle trough, JGSOC made the strategic decision to shut down the plant in early 2023 and began to resume operations in June,” JG Summit said.

For the core investments, JG Summit’s share in the earnings of Manila Electric Co. improved 26% to P9.8 billion in 2023 due to higher contributions from its power generation and retail electricity businesses, as well as the continued growth of its distribution business.

 The equity income from Singapore Land Group fell by 16.7% to P2.5 billion from P3 billion following the decrease in the contribution from its residential projects. The decline was offset by the recovery of the hospitality industry that led to better hotel operations.

 JG Summit had 8% lower dividends from PLDT, Inc. totaling P2.6 billion as the telecommunications company halved its special dividends from tower sales to P14 per share. Its regular dividends increased by P5 to P94 per share.

 Meanwhile, Mr. Gokongwei said that JG Summit is eyeing to bring its 2024 core profits closer to pre-pandemic levels

 “As we look forward, easing inflation and the potential rate cuts would bode well for consumer demand and lower input prices. We hope to recover lost volume and market shares in our food business, sustain portfolio expansion in our real estate arm, increase capacity and short-haul recovery for our airline, and crystallize the financial gains from our petrochemical transformation program,” Mr. Gokongwei said.

 On Tuesday, JG Summit shares rose by 1.41% or 50 centavos to P35.95 apiece. RLC stocks improved by 0.72% or 12 centavos to P16.68 per share. URC shares gained by 0.68% or 70 centavos to P103.80 each. CEB stocks were unchanged at P31 per share. — Revin Mikhael D. Ochave

Cebu Air says 2023 results signal ‘stronger’ performance this year

CEBUPACIFICAIR

CEBU AIR, Inc. (CEB), operator of budget carrier Cebu Pacific, expects higher earnings this year after returning to profitability in 2023, driven by strong passenger demand. 

“Moving forward, we are optimistic that Cebu Pacific’s solid 2023 financial results will set the foundation for a stronger financial performance in 2024,” Mark Julius V. Cezar, Cebu Air chief financial officer, told the stock exchange on Tuesday. 

Without disclosing comparative figures, Cebu Air registered a net income of P7.9 billion for 2023, reversing its losses in 2022.

Based on the company’s financial statement, as previously disclosed at the stock exchange, Cebu Air registered a net loss of P13.98 billion in 2022.

For 2023, the company recorded an operating income of P8.6 billion; while its EBITDA or earnings before interest, taxes, depreciation, and amortization reached P21.8 billion, marking a significant increase from the P664 million in 2022.

Its revenue climbed by 60% to P90.6 billion fueled by robust travel demand, the company said.

Passenger business posted a 78% increase, posting a total revenue of P62.5 billion.

Last year, Cebu Pacific flew over 20 million passengers and more than 140,000 flights, this translated to about 41% and 30% increase, respectively from the year earlier.

Seat load factor, which is used to measure the percentage of available seating capacity filled, has also improved to 84%.

Further, its total operating expenses also expanded by 20% to P82 billion which it attributed to higher fuel costs and fleet-related expenses.

“CEB took 18 aircraft deliveries throughout 2023, increasing its fleet to improve its operational resiliency while sustaining capacity growth. Also embedded in its expenses are digitalization and other efforts to support its customer first initiatives,” the company said.

For the three months to December, Cebu Air’s has also returned to profitability by recording an earnings of P2.9 billion from a loss of P1.9 billion in 2022.

Its fourth quarter revenues, which expanded by 23%, has also pushed the company’s growth. In the last quarter of 2023, Cebu Air’s top line reached P23.7 billion, its strongest in terms of revenue for the year.

The company logged a P2.4 billion operating net income for the fourth quarter, reversing its net loss of P232 million in the same period a year earlier.

At the local bourse on Tuesday, shares in the company closed unchanged at P31 apiece. — Ashley Erika O. Jose

Filinvest Land completes turnover of factory for battery production of StB GIGA

LISTED property developer Filinvest Land, Inc. (FLI) has turned over a ready-built factory to StB GIGA for the production of lithium iron phosphate (LFP) batteries in Filinvest New Clark City.

 The factory, spanning 5,000 square meters of industrial space in Filinvest Innovation Park, was turned over to StB GIGA on Feb. 28, FLI said in a statement on Tuesday.

 “The handover… signifies the commencement of StB GIGA’s move-in process, paving the way for their LFP battery manufacturing facility within the innovative industrial park,” FLI said.

 StB GIGA is a Philippine subsidiary of StBattalion Pte. Ltd., which is jointly owned with the St Baker Energy Innovation Fund. The fund is managed by StB Capital Partners, an Australian investment manager that incubates and invests in companies in the energy and e-mobility sectors.

 “With the official handover of the ready-built factory unit, we are one step closer to realizing our vision of establishing a world-class LFP battery manufacturing facility in the Philippines. This facility will not only cater to the growing demand for electric vehicles but also contribute to a greener, digital, and more sustainable future for the nation,”StB GIGA Chief Executive Officer Dennis Chan Ibarra said.

 The Filinvest Innovation Park is an industrial park within the Filinvest New Clark City mixed-use township, which is part of the 9,450-hectare New Clark City development in Capas, Tarlac.

 The ready-built factory compound of Filinvest Innovation Park will feature 10 units to be built on a 40,000-square meter lot. Each of the units is designed for logistics, e-commerce, and light manufacturing locators.

 The units come with a two-bay loading dock with dock levelers, roll-up doors, an eight-meter ceiling clearance, a floor load capacity of three tons per square meter, and a fire suppression system. They also have rainwater harvesting and recycling system as well as solar panel-ready roofs.

 “We are very pleased to welcome StB GIGA to Filinvest Innovation Park. This partnership not only strengthens our commitment to attracting leading sustainable businesses but also generates substantial employment opportunities for the region, contributing to the overall economic growth of the Philippines,” FLI Senior Vice-President and Industrial Business Unit Head Francis V. Ceballos said.

 On Tuesday, FLI shares were unchanged at 68 centavos apiece. — Revin Mikhael D. Ochave

The pianist’s body

Cecile Licad on Nedy Tantoco, practice, and reaching her peak

WHEN we watch a classical music performance, what we see is a union between human and instrument. Few people do that better than piano prodigy Cecile Licad, who passed audition at the Curtis Institute of Music at 12 and had been one of the youngest recipients of the Leventritt Gold Medal in 1981. Now in her 60s, Ms. Licad talked to BusinessWorld about how the pianist’s body performs, in light of her March 19 concert, Cecile Licad at the Met: A Women’s Month Concert, held at The Metropolitan Theater in Manila.

Asked what a piano demands from its player, she said, “From my feet, to my hands, to my head, to my heart.”

But first, the concert: conducted by Gregorz Nowak, Ms. Licad performed with the Philippine Philharmonic Orchestra, who opened the concert with Brahms’ Symphony No. 2, Op. 73 in D major. The program said, “The D-Major Symphony seems to reflect the composer’s relaxed state of mind during the happy summer of 1877.” After an intermission, Ms. Licad appeared on stage, playing, in concert with the orchestra, Piano Concerto No. 1, Op. 23 in B-flat minor on a Fazioli. After that, Ms. Licad appeared on stage for three encores: she dedicated a piece to late Rustan’s matriarch Zenaida “Nedy” Tantoco (namely, Schumann’s Widmung), a piece by her great-uncle, composer Francisco Buencamino, and Chopin’s Minute Waltz.

During a group interview at Ms. Tantoco’s home in Forbes Park two days after the concert, Ms. Licad discussed why those pieces were chosen. She played the piece by her great-uncle because it had been used in movies shown at the Metropolitan Theater during its heyday; she picked the Minute Waltz because the conductor that evening was Polish. As for the dedication to Ms. Tantoco, she said, “In any room, I always have the most beautiful flowers, and it’s always from Tita Nedy.” In fact, asked about the floral-appliqued black dress she wore and where she got it, she said, “Rustan’s! Rustan’s is the best. What can I say?”

As for the Tchaikovsky piece she selected to play, she said, “I feel like I’m ready to tackle it again. I feel like — sometimes you just feel like, ‘I want to eat this.’ I want to build some kind of muscle again.”

THE PIANO AND HER BODY
“It requires a lot. It requires physical strength. It requires sharp reflexes, and it requires a soul of a… a hot soul!,” she said with laughter, describing what that particular Tchaikovsky piece requires of her.

She recalled teaching a masterclass once, and hearing a student perform, she said, “Can you put, like a mainit na ano (something hot) in your ass?” Then she laughed. “I’m so sorry, but that’s really the way I talk. People don’t know what’s in my head when I’m playing. They think it’s like something so intellectual, whatever. But sometimes I have to make kurot (pinch) myself; since my mother’s not there. I would do anything — I would eat a hot pepper if I’m nervous. And then I would be like, ‘Ay, ang anghang (that’s hot)!’ Then I’d be like, ‘Yes!’

“You have to feel a burn in your butt!”

Ms. Licad talked about how her body works with a piano. “I talk to it. It’s like a pet. ‘You better deliver,’” she said. “I don’t care about any piano that I will play, but it has to work. It’s a machine. It’s usually the player who will make it alive. But it helps to have a piano technician.”

Then she talks about practicing and rehearsals, for which her fingers and feet come to play. “I have to talk to my fingers,” she said. “I would change my fingering to what I feel at that moment. That’s why I practice. So that all my fingers are independent.”

“When I’m playing — you’re like an actor. I have to feel the teleserye (TV soap opera). I call it like a novel, inside, so that I can convey it to the public. If I don’t feel anything — but not only feel — it goes to the fingers. It’s like channeling, really.”

And her feet! “People don’t know that, but the pedaling of the piano is the most important.”

MAINTAINING HER BODY
As with any person who uses their body to work, it is toned and perfected by practice.

Ms. Licad talks about how she practices, and how she always begins from scratch. Here, she isn’t the child prodigy traveling the world as a teen, or given awards by presidents: she has a Presidential Medal of Merit from the late President Corazon Aquino, a Pamana sa Pilipino Award from Mrs. Aquino’s son, President Benigno “Noynoy” Aquino, and former First Lady Imelda Marcos held the phone for her so the pianist Van Cliburn could hear her play when she had turned 12 (a story she recounted to Mrs. Marcos’ son, now-President Ferdinand Marcos, Jr.). When practicing, she is always a student.

“The practicing is the hardest. Performing for me — it’s also hard. I’m not going to pretend that… but it’s more the process, the practicing process. What fingerings I should use, maybe I use this, but at the concert — it’s hard to explain,” she said. “I’m learning it totally from scratch. That’s how I learn. I don’t listen to recordings. I’m not an ear, like I can play whatever I hear. I relearn from scratch. I will look at the notes very, very slowly, carefully, and then I hear.

“Nobody can recognize me practicing sometimes. That’s why I like to be private when I’m practicing,” she said, saying that when she’s practicing very slowly, she’s sometimes mistaken as a beginner — even by herself. “In fact, I always tell myself that: ‘beginner ka lang. Umpisa ka (you’re just a beginner. You’re just at the start).’ I would tell myself I don’t know how to play piano.”

But all bodies are mortal, and they weaken and, well, stop working at some point. She counts that her career is now 50 years old, but then she pointed out: “One of my teachers debuted in Carnegie Hall, he was already 97.”

“All my teachers — their best playing is at 80-something,” she said. “It’s just different — if you have a good foundation, you can always reinvent. Maybe if ever I lost my hands, I can still play with my elbow,” she said, laughing.

How then, does she maintain all the working parts of her body so when it meets a piano, it constitutes a perfect union? Surprisingly, the answer is just doing everything else. “You know what I do? I just do other things. I go to the grocery. I organize my things.”

“I’m not particular with my hands at all. Except with knives; cutting onions. That’s very scary. Especially if it’s slippery. There’s an angle. I watch the YouTube stuff, the cooks. You have to have a sharp knife, because if you don’t have a sharp knife, the more you will cut yourself.”

She even gave us a recipe for her clothes’ cleaning spray: Everclear, a grain alcohol bottled at up to 95% (“Whenever I buy it at the liquor store, they would be like, ‘You’re not going to drink this, are you? You’re going to die.’”), mixed with either eucalyptus, peppermint, or tea tree oil. ‘Especially, [since] I smoke. In America, everybody’s smelling you,” she said, sniffing. “‘She’s a smoker. Let’s get out of here.’”

REACHING A PEAK
If her teachers played their best at 80, Ms. Licad in her 60s still has many years to go. Asked if she’s already reached her peak, she said, “I don’t think we’ll ever reach a peak. We will always be in our peak. The last concert has to be your peak. For me, every concert is a peak.

“You can never be confident. You can’t rest on your laurels. I still keep going, and learn a new horizon of another composer, or something I haven’t even tried.

“Maybe I’ll become an actor.” — Joseph L. Garcia

Government makes full award of reissued seven-year T-bonds

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) on Tuesday at an average rate higher than secondary market levels amid hawkish comments from a Bangko Sentral ng Pilipinas (BSP) policy maker.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued seven-year bonds it offered on Tuesday as total bids reached P46.501 billion, well above the amount on the auction block.

This brought the total outstanding volume for the series to P124.7 billion, the BTr said in a statement after the auction.

The bonds, which have a remaining life of six years and nine months, were awarded at an average rate of 6.237%, with accepted yields ranging from 6.15% to 6.274%.

The average rate of the reissued bonds went down by 57 basis points (bps) from the 6.807% quoted for the papers when they were last offered on Nov. 7, 2023, but 11.2 bps above the 6.125% coupon for the issue.

This was also 3.9 bps higher than the 6.198% seen for both the same bond series and for the six-year tenor at the secondary market on Tuesday before the auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

“The awarded T-bond rates went higher as market participants digested the latest hawkish remark from Finance Secretary [Ralph G.] Recto of potentially two rate cuts from the BSP this year,” a trader said in an e-mail.

The BSP may cut rates by 50 bps this year, according to Mr. Recto, who is a member of the central bank’s policy-setting Monetary Board.

This will be less than the initial plan of four adjustments, the Finance chief said.

However, he does not expect the easing cycle to begin at the Monetary Board’s next meeting on April 8.

The central bank may also end up reducing borrowing costs by up to 200 bps over the span of two and a half years, he added.

The Monetary Board kept its policy rate steady at a near 17-year high of 6.5% at its February meeting.

The BSP had hiked borrowing costs by 450 bps from May 2022 to October 2023 to help tame elevated inflation.

Rising US Treasury yields also pushed T-bond rates up, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Tuesday’s T-bond auction was the last offering for the first quarter. The government was able to raise P512.3 billion out of its P525-billion borrowing plan for the period following partial awards in previous months.

In March alone, the BTr raised P180 as planned as it made full awards at all its Treasury bill (T-bill) and T-bond auctions amid strong demand and favorable rates.

For the second quarter, the Treasury is looking to borrow P585 billion from the domestic market, or P195 billion via T-bills and P390 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year. — A.M.C. Sy

Globe completes sale of 33 towers to Unity Digital

GLOBE Telecom, Inc. has completed the sale of 33 towers to Unity Digital Infrastructure, Inc  for P396 million, the telecommunications company said on Tuesday.

In total, Globe has closed the sale of 282 towers out of 447 towers to be acquired by Unity Digital. 

Proceeds from the transaction will fund Globe’s capital expenditures, debt repayments and improve the company’s overall balance sheet.

In 2023, Globe signed a sale and leaseback agreement with Unity Digital Infrastructure for the sale of 447 towers valued at a total of P5.4 billion.

The telecommunications company said it anticipates a pre-tax gain of P1.8 billion from the transaction.

Unity Infrastructure is a joint venture telecommunications infrastructure platform of Aboitiz Infracapital, Inc. and global private markets firm Partner Group.

This year, Globe is allocating a total of $1 billion for its capital expenditures which will be funded by internally generated funds, debts, and proceeds from its tower sales.

At the local bourse on Tuesday, shares in the company climbed 0.74% or P13 to end at P1,768 each. — Ashley Erika O. Jose

Workforce development in the Philippines: Legislation is needed

DUALTECH TRAINING INSTITUTE

(Part 2)

The Philippine Congress should replicate its outstanding performance in passing laws that will accelerate the employability and competitiveness of the Filipino workforce in such other critical areas as health, agribusiness (especially in abolishing the many obstacles to the consolidation of farms that resulted from the failed agrarian reform program), the ease of doing business, etc. This is one reason why a good number of us who appeared in hearings of both the House of Representatives and the Senate on the charter change bill opined that the amendment of the Constitution is not an urgent matter. We felt that such an unnecessary effort at this time (advertising, media and educational institutions will not bring large sums in FDIs) will only distract our lawmakers from more pressing issues that require legislative acts.

More examples of recent bills proposed for the benefit of the Filipino workers are the Enterprise-Based Education and Training to Employment Act (Senate Bill No. 363 and House Bill No. 7400) which aims to establish a national enterprise-based education and training (EBET) system that is competency-based and supports work-based training. Similarly, Senate Bill No. 2491 of the National Apprenticeship Program Act of 2023 aims to clarify the articulation of apprenticeships currently based on the Labor Code. Multiple interpretations of the different types of work-based training modalities have led to difficulties in passing laws that support industry-led training programs. For example, the Dual Training Act of 1994 (especially championed by former President Fidel Ramos himself), the Labor Code of the Philippines, and the upcoming bills involving work-based training programs must thoroughly define the different modalities. Industry investment and involvement are crucial in the implementation of work-based training modalities. It is important that the overall framework is aligned with industry needs. The roles of the government, industry, and the academe must be clearly delineated.

To highlight even more the desirability of enlightened legislation on this matter of access by the Filipino workers — both present and future — to skills development opportunities, it is important that these training programs be integrated into a comprehensive lifelong learning framework that maps out all available workforce development pathways. This would require the harmonization of existing frameworks such as the Philippine Qualifications Framework, Philippine Skills Framework, and the Philippine Credit Transfer System.

To cite a very specific example of the need for a lifelong learning framework, a few graduates of the dual training system from the leading example of this modality — the Dualtech Training Institute located at the Carmelray Industrial Estate in Canlubang, Laguna — have been able to use the ladderized system to pursue a college degree in engineering, then to a masteral degree in an allied field, and ultimately all the way to a Ph.D. I cite this example to illustrate that having a comprehensive lifelong learning framework will democratize our educational system even more by enabling the highly qualified graduates of our Technical Education and Skills Development Authority (TESDA)-type schools to still aspire to obtain the highest academic degrees that are usually accessible to only the children of the well-to-do. We will give opportunity to Filipino youth who start out as electricians, for example, in their first occupation to eventually acquire a BS in Electrical Engineering through the ladderized program and all the way to a Ph.D. in electrical engineering, or, should they go up the management ladder, work for an MBA. The reverse case would be the possibility of a graduate of a college degree (such as accounting or law) to train to be a mechanic if that is what would enable him to get a better job in the future. Already there are many college degree holders who later take TESDA-related courses to improve their chances of employment.

In all of these, industry participation is absolutely necessary. While some industry associations and business consortia are already established, the lack of clarity over which government agencies to engage with for workforce development initiatives is crippling their effectiveness. Multiple government agencies — such as the Commission on Higher Education (CHED), TESDA, Department of Agriculture (DA), Department of Tourism, the Department of Information and Communications Technology (DICT), Department of Trade and Industry, and Department of Labor and Employment (DoLE) — are individually implementing their own industry engagement initiatives.

This is a perfect example of what I hear from prospective foreign direct investors who complain that “the right hand of the Government often does not know what the left hand is doing.” Each government agency produces valuable information for workforce development initiatives, but these seem to have caused confusion, with overlapping functions, and additional red tape that discourages industry participation.

Up until very recently, few industry sectors had a clear direction as regards the development of skills and competencies in their respective industries. Theoretically, industry boards were tasked to provide TESDA and the private sector a proper mechanism and venue to collaborate on setting training standards, co-developing training curricula, and crafting policies that strengthen the ability of industries to invest in workforce development. Lamentably, there have been only 40 Registered Industry Boards (RIB) across eight sectors operating at the national, regional, and provincial level. TESDA has not been able to maximize these RIBs. This has led to weak industry engagement resulting in the failure to fully mobilize and harness the 1,109,64 recorded business enterprises in the country.

Today, there is a great clamor for accurate data in formulating any solution to an economic or management problem. As the recently appointed Agriculture Secretary Francisco Tiu Laurel, Jr. realized, the appropriate policies and programs in his department could hardly be formulated without accurate data. That is why he started his term by making sure he would benefit from the new science of data analytics before trying to look for solutions to the many problems related to food security.

In the same way, in the labor sector, organizing RIBs would serve as the primary point of contact for efficient information sharing in the setting of standards for the mastery of targeted skills, learning outcomes, and needs assessment for in-demand skills across all government agencies. Moreover, it would unlock the ability of industry sectors to develop the accurate market information, lobby for policies to minimize government red tape, co-develop policies to maximize economic returns on investment in workforce development, to negotiate for incentives, and identify more effective training and upskilling pathways for labor market needs.

Industries would also benefit from increasing their engagement with their local Public Employment Service Offices (PESOs), especially since these offices, in varying capacities, gather data on the employment status of local residents and provide direct information on labor market trends. Jobs-skills mismatch has already become a widespread issue, and it would benefit industries to take the lead in determining how the LGUs can support them in addressing this problem at the local level.

(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

Resurrecting long-forgotten histories through fiction

FOR FILIPINA fictionist Linda Ty-Casper, preserving part of history in the form of historical novels is a kind of advocacy. It defends the Philippines from false depictions and ensures that “we do not forget who we are.”

This is why her book, The Three-Cornered Sun, first published by New Day Publishers in 1979 and now re-published by local press Exploding Galaxies, treats history as more than just a backdrop. Set in the 1896 revolution against Spain, the story is based on recollections of the author’s own grandmother, Gabriela Paez Viardo de Velasquez.

It follows the lives of the members of the Viardo family as they go through that tumultuous moment in history, sometimes on opposing sides. National Artist for Literature Francisco Arcellana, in a review of the first edition, called it “a remarkable work that must rank with the finest fiction in English Filipinos have ever produced.”

But many Filipino readers nowadays barely know Ms. Ty-Casper and her work. Enter Exploding Galaxies, a relatively new publishing house that focuses on republishing out-of-print contemporary Philippine literature, with the goal of reviving lost classics.

“From the moment I read the first lines, the novel felt like it was history breathing and I think that’s what really drew me in,” Exploding Galaxies publisher Mara Coson told BusinessWorld shortly after the book launch on March 16, held at Everything’s Fine bookstore in Makati City.

The novel has the ability to make you feel like 1896 is about to happen right in front of you, Ms. Coson said, simply because of the extensive research.

“It knew exactly where in time it wanted to take its readers back to. I never saw Philippine history quite in that way before,” she added.

Ms. Ty-Casper, now 90 years old and living in Massachusetts, writes in the preface of the new edition, “I didn’t think there were any new readers for it. I’ve never been widely read, for some reason, but I persisted in writing about us, to fill the absence of our side.”

In the year 2024, the Filipino side of history that she talks about is in danger of being forgotten back home, hence Exploding Galaxies’ existence.

“Before we consider our lack of presence everywhere else, I think it starts with discovering these on our own shelves,” Ms. Coson said via e-mail. “So, yes to filling the absence, but here most of all — in bookshops, more libraries, and our conversations.”

For National Artist for Literature Gemino H. Abad, the ground of language shaped by Ms. Ty-Casper is “a people’s culture through their history.”

“She forges her own path through a given language’s lexical wilderness and makes her own clearing there,” he writes in praise of her work.

As for the role of presses like Exploding Galaxies, Ateneo Press, and Anvil Publishing House, to name a few that partake in the revival of overlooked literary works, the need for their advocacy is as urgent as ever.

“Any country is only as good as its system of education, as the knowledge held by its people,” he told BusinessWorld at the book launch. “It’s all about reading, thinking. We human beings, it is our human nature to know the truth.”

Ms. Coson added that there is a long way to go for this new edition of The Three-Cornered Sun, as well as for the first ever book that they re-published last year, Wilfrido D. Nolledo’s 1970 postmodern war novel But for the Lovers.

“I’ve been thankful for the reception that it’s received, but there’s more that needs to be done to open the book up,” she said.

Meanwhile, she teased that next two books in Exploding Galaxies’ lineup will be short story collections. “The series will not always be time traveling back to key moments in history. We will also publish books whose authors were writing about their contemporary times, even if that’s 20, 30, 40 years ago.”

The Three-Cornered Sun is available in Fully Booked, National Bookstore, and select bookstores including Everything’s Fine in Makati and Mt. Cloud Bookshop in Baguio, as well as in online marketplaces Shopee and Lazada. — Brontë H. Lacsamana

Gov’t finalizing proposed changes in charters of DBP, LANDBANK

BILLS seeking to amend the charters of the Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP) to allow for their public listing will be filed as soon as Congress resumes session, the Finance chief said.

“There’s a bill (for) LANDBANK, so we’re finalizing the DBP version also. There’s no session right now. When Congress resumes session, we’ll be done with it. We’ll file it,” Finance Secretary Ralph G. Recto told reporters last week.

The Finance department earlier said it wants to amend the charters of both state banks to increase their authorized capital stock. The banks will also be mandated to conduct an initial public offering (IPO).

Mr. Recto did not indicate the amount for the increase in capitalization.

“I don’t remember right now. I filed a bill for DBP to make it P100 billion, but now they’re talking about P300 billion. I don’t know (about) LANDBANK,” he said.

“I can’t remember exactly right now. But yes, we will increase their capitalization. Now, it doesn’t mean that we will fund it with taxpayers’ money immediately. What we can do is we allow them to keep the dividends, which will be part of their capital,” he added.

Earlier this month, DBP said it is seeking to increase its authorized capital stock to P300 billion from P35 billion to expand its products and services.

Mr. Recto added that he is not worried about the lenders’ financial stability.

This, after both banks sought regulatory relief from the central bank last year amid the impact of their contributions to the country’s first sovereign wealth fund on their capital positions.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said the proposal to amend the two banks’ charters indicates a “willingness to adapt to changing financial landscapes and regulatory environments.”

“Such amendments could potentially allow for greater flexibility in their operations, including their ability to access capital markets for funding and investment,” he said in a Viber message.

The public listing of the state lenders will help increase transparency, accountability, and potential efficiency in the banks’ operations, Mr. Arce added.

“By opening up to public markets, these banks could attract more investors, diversify their funding sources, and potentially unlock greater value for stakeholders,” he said.

If the listing is successfully executed, this would help inject fresh capital into both banks and strengthen their financial positions, Mr. Arce said.

“This, in turn, could enhance their capacities for lending, supporting economic growth, and development initiatives. Additionally, increased scrutiny and market discipline associated with public listing could encourage greater efficiency and risk management within these institutions,” he said.

“It’s important to note that pursuing an IPO for government-run companies like LANDBANK and DBP would require legislative changes. This could pose challenges and may take time to materialize due to the need for political consensus and legal processes,” Mr. Arce added.

April Lynn Lee-Tan, COL Financial Group, Inc. chief equity strategist, said the proposed increase in the banks’ capitalization is a welcome move.

“Increasing a bank’s capital is always good and will improve its capacity to lend,” she said in a Viber message.

Ms. Tan also noted that it is crucial to assess “whether or not it is attractive for the two banks to list given the unattractive valuations of most banks.”

“An IPO is proven to be an effective financial mechanism to raise funds provided all the required parameters are set in place,” Antonio A. Ligon, a law and business professor at De La Salle University in Manila, added in a Viber message. — Luisa Maria Jacinta C. Jocson

STI Education Systems Holdings unit redeems P2.18B worth of bonds

LISTED STI Education Systems Holdings, Inc. (STI Holdings) said its education unit has fully redeemed Series 7Y bonds worth P2.18 billion.

 The bond offering of STI Holdings’ education unit, STI Education Services Group, Inc. (STI-ESG), had a maturity date on March 23, the listed company said in a regulatory filing on Tuesday.

 “Since the maturity date of the bonds was a nonbusiness day, the redemption payment was made on March 25, the next business day, in accordance with the terms of the bonds,” STI said.

 The Series 7Y bonds is part of the first tranche worth P3 billion under the STI-ESG’s shelf registration of up to P5 billion filed in 2017.

 The net proceeds from the offering were used to finance the company’s campus expansion projects, refinancing of short-term loans incurred for land acquisition, and other general corporate requirements.

 Based on its website, STI-ESG has a school network of 63 schools comprising of 60 colleges and three education centers.

 STI-ESG offers various associate and baccalaureate degrees and technical-vocational programs in information and communications technology, arts and sciences, business and management, education, engineering, hospitality management, tourism management, engineering, education, psychology, and criminology.

In the first half of its fiscal year ending June, STI Holdings saw a 132% increase in its net income to P517.8 million from P223.19 million the prior year.

 The company’s revenues surged by 36% to P2 billion from P1.4 billion in 2023.

 On Tuesday, STI Holdings shares fell by 1.3% or one centavo to 76 centavos per share. — Revin Mikhael D. Ochave

Right of way woes unsolved will hurt Build Better More

CHUTTERSNAP-FREEPIK

Infrastructure is the way to go. This is evident in the emphasis given to infrastructure building by the administration of President Ferdinand Marcos, Jr. saying it is a cornerstone and a priority of his term.

The Build Better More program, for instance, is composed of 197 projects ranging from physical connectivity, water resources, agriculture, health, digital connectivity, power and energy, and other infrastructure.

The aggressive pursuit of infrastructure is backed by action in terms of budget allocation. From the years 2017 to 2021, annual public infrastructure spending ranged between 4.2% to 5.8% of Gross Domestic Product (GDP). During this administration, until 2028, spending will grow to 5% to 6% of GDP.

Supporting this articulated priority of the government is the Philippine Development Plan (PDP), which covers the years 2023 to 2028. The PDP acknowledges the need not just for infrastructure but for sustainable infrastructure. It lays down the path for promoting the inclusivity and seamless connectivity of road, maritime, air, and railway transportation facilities.

In ensuring the long-term resilience and sustainability of structures, the PDP acknowledges the crucial role played by the private sector in infrastructure development. After all, such projects cannot be delivered to the people solely by the government — it is simply not the core competence of government to build and operate infrastructure projects. Its human and financial resources, no matter how carefully planned, will also always be insufficient for undertaking these capital-intensive projects.

Thus, it needs to team up with private corporations for the financing, design, and construction of infrastructure projects. This is only possible through meaningful public-private partnerships (PPP). The private sector, for its part, has thus been invited to participate more fully in revitalizing the economy through increased partnerships.

Unfortunately, while partnerships between the government and the private sector are ideal in principle, there remain operational and practical hurdles like right of way (ROW) issues that need to be overcome as these, for many administrations, have caused delays in the completion of the projects, and hence in the people’s enjoyment of the benefits of these projects. These ROW issues could sometimes drag on for years, casting uncertainty in the future of what was once thought to be a viable and necessary undertaking. Costs increase, much to the dismay of the private partners that invested huge resources at the invitation of the government.

As a result of such roadblocks, not only will the project not be completed, but the national reputation of the country is also damaged, becoming viewed as an investment risk. The investors we need will instead go to where they are confident their investments will prosper.

Thus, if ROW and other similar hurdles are not properly addressed, all the lofty pronouncements extolling the partnership between the public and private sectors will amount to nothing.

STREAMLINING
A recent forum held in Makati attempted to shed light on the matter. During the event, it was highlighted that streamlining the acquisition process for ROW can reduce, significantly, project delays. If ROW issues are addressed and resolved right away, then the private sector will meet their project timelines on time and avoid costly disruptions. The right policies and institutional frameworks and regulations are needed for this. Specifically, the objectives of Republic Act 10752 or the Right of Way Act must be defined clearly and unequivocally.

The Public-Private Partnership Code of the Philippines, passed just in December 2023, focuses on establishing a transparent, rules-based, and efficient PPP framework aiming to address the Philippines’ P23-trillion investment gap. The Code also underscores the need to address ROW issues to fast-track the implementation of PPP projects.

The government must do all it can to help solve the ROW problem. Specifically, the government should take the initiative to expropriate for ROW before project implementation. There should be a clear separation between building infrastructure and ROW matters. Introducing a separate contract for ROW before project identification should be done.

ROW issues can frustrate the vision that our nation has set especially in terms of economic advancement. To prevent ROW from causing delays, additional costs, frustration to affected property owners and inhabitants, and disenfranchisement among private investors, the government must ensure that these operational details are taken care of for the expeditious implementation of all national infrastructure projects.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Breaking the glass canvas

LARA LATOSA knew that women artists deserved to have a platform to tell their stories, even now when representation has improved.

In 2023, she submitted a proposal to Conrad Manila hotel for a show that mixed the perspectives of female veteran and upcoming artists. It would allow these women to express their thoughts, experiences, and wisdoms.

“I wanted to create a special show that highlights the beauty, creativity, and talent of female artists in a male-dominated industry,” Ms. Latosa told BusinessWorld.

As both co-curator and featured artist in the latest installment of Conrad Manila’s “Of Art and Wine” series, Ms. Latosa found it more pressing to put up the exhibit when she realized most of the artists she knew were men.

“Over the years, every time it’s International Women’s Month, there are definitely more women-led shows all over, and just more women overall who are becoming known in the arts scene. But I still find it important to provide a platform for individual female voices to be heard,” she added.

“Breaking the Glass Canvas,” an aptly titled collection of 28 works, was launched at Conrad Manila’s Gallery C on March 19.

Co-curated by Nestor Jardin, it features works by painter Lydia Velasco, mother-of-pearl sculptor Anita Del Rosario, painter Addie Cukingnan, comic surrealist Flor Baradi, abstract artist Meneline Wong, realist painter Celeste Lecaroz, jewelry artist Helena, surrealist Irish Galon, and environmental artist Lara Latosa.

Each of the nine artists were told to choose works that depict their “message to the younger generation, namely women who will see their works.”

“Others offer their perspectives as mothers or as women pursuing their passions,” Ms. Latosa told members of press during the launch. “My three works are each dedicated to myself, to my mom, and to my sister.”

She shows this through the use of abstract waves, each with their own character. They are also a tribute to the natural state of water, tying into her advocacy as an environmentalist.

For mother-of-pearl sculptor Anita Del Rosario, inspiration can be found everywhere. “Everything I create is from the heart,” she said. Her Inang Perlas sculpture, for example, summons feminine strength and grace in each curve.

Flor Baradi takes a different approach. The surrealist’s work Jupiter’s Muse Io in the Celestial Future and Audrey depicts renowned figures of beauty in a whimsical, playful manner.

“My ‘grotesque’ series is about women empowerment, being true to yourself and embracing your uniqueness. They’re a bit ugly for some but they just show that you are your own self, your own beauty,” she said.

The exhibit is on view until May at Conrad Manila’s Gallery C.

For inquiries about the paintings and exhibit, contact (8833-9999) or visit conradmanila.com. — Brontë H. Lacsamana

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