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PHL to grow 6.4% this year — Fitch

REUTERS

THE PHILIPPINES is expected to be the fastest-growing economy in Southeast Asia this year, according to Fitch Ratings.

Data from Fitch Ratings’ Asia-Pacific Sovereigns Credit Outlook for February showed that the Philippines’ gross domestic product (GDP) is projected to expand by 6.4% this year.

This will be the fastest growth in Southeast Asia, ahead of Vietnam (6.3%), Indonesia (5%), Malaysia (4.2%), Thailand (3.8%) and Singapore (2.3%).

Krisjanis Krustins, Fitch Ratings’ primary sovereign analyst for the Philippines, said Philippine GDP growth would likely remain above 6% in the next few years.

“We forecast real GDP growth of above 6% over the medium term, considerably stronger than the ‘BBB’ median of 3%, supported by large investments in infrastructure and reforms to foster trade and investment, including through public-private partnerships (PPPs),” he said in an earlier commentary.

Fitch Ratings’ forecast is slightly below the government’s 6.5-7.5% target this year.

The Philippine economy grew by 5.6% in 2023, slower than 7.6% in 2022 and fell short of the government’s 6-7% full-year target.

Economic managers have said they might revise growth assumptions and targets to be more “realistic” and account for global economic conditions.

The Philippine Statistics Authority (PSA) is set to release first-quarter GDP data on May 9.

For 2025, Fitch expects Philippine economic output to expand by 6.5%. This also makes it the fastest-growing economy in the region next year, alongside Vietnam.

It will be ahead of Indonesia (5.2%), Malaysia (4.5%), Thailand (3.4%) and Singapore (3%).

In November, Fitch Ratings affirmed the Philippines’ “BBB” investment grade rating and kept its “stable” outlook.

A “BBB” rating indicates low default risk and reflects the economy’s adequate capacity to pay debt. A “stable” outlook on the rating also means it is likely to be maintained over the next 18-24 months.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said Philippine GDP growth could settle at 6% this year and potentially in the next 10 years.

“Before the pandemic, Philippine GDP consistently grew by at least 6% from 2012-2019 due to the demographic sweet spot and other important economic bright spots,” he said in a Viber message.

He cited strong remittances, low unemployment, improved government spending and the uptick in tourism as growth drivers.

Meanwhile, Fitch sees inflation averaging 4% this year, within the central bank’s 2-4% target. However, it is above the Bangko Sentral ng Pilipinas’ (BSP) average forecast of 3.6% for the full year.

It also expects inflation to ease further to 3.5% next year, above the BSP’s forecast of 3.2%.

The BSP earlier said it expects inflation to accelerate above the 2-4% target in the second quarter due to the El Niño weather event, as well as positive base effects.

Meanwhile, Fitch Ratings raised its global GDP growth projection by 0.3 percentage point to 2.4%, as it expects faster US growth.

In its latest Global Economic Outlook, the debt watcher said it also raised its US growth forecast to 2.1% from 1.2%.

It trimmed its China growth forecast to 4.5% for this year from 4.6%.

“An unprecedented pro-cyclical widening in the US fiscal deficit in 2023 boosted domestic demand and helped explain the surprising resilience of GDP growth,” Fitch said. “But we expect the fiscal impulse to fade this year and household income growth to slow.”

For 2025, Fitch expects global economy to grow by 2.5% as “the eurozone finally recovers on a pickup in real wages and consumption — but US growth slows.” — Luisa Maria Jacinta C. Jocson

Philippines slightly improves in Human Development Index

Students are seen walking to school in Manila, Feb. 24, 2024. — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES jumped five spots in the latest Human Development Index, but remained one of the laggards in Southeast Asia, the United Nations Development Program (UNDP) said.

The Philippines ranked 113th out of 193 countries in the UNDP’s index, which measures a country’s health, education and standard of living.

The Philippines’ score improved to 0.71 in 2022 from 0.692 in 2021. This also marked the country’s highest score since 0.714 in 2019.

Philippines moves up in Human Development IndexThe Philippines’ score was below East Asia and the Pacific’s average of 0.766 and the global average of 0.739.

In Southeast Asia, human development levels were “very high” in Hong Kong (fourth), Singapore (ninth), Brunei Darussalam (55th), Malaysia (63rd), and Thailand (66th).

The Philippines had a “high” human development level, along with Vietnam (107th) and Indonesia (112th).

On the other hand, human development was considered “medium” in Laos (139th), Myanmar (144th), Cambodia (148th) and Timor-Leste (155th).

“The world has achieved a new record in human development. After steep losses in 2020 and 2021, the Human Development Index… has climbed to its highest level ever recorded at the global level,” the UNDP said in a report.

While the index value is greater than in 2019, the UNDP said it does not mean the world has fully recovered from the impact of the coronavirus pandemic and other crises.

“Essentially, we have not reached the level of human development that could have been expected had the pandemic not happened,” it said.

Life expectancy at birth is at 72.2 years in the Philippines,” according to the Human Development Index. The expected years of schooling for Filipinos is 12.8, while the mean years of school is nine.

Life expectancy in Singapore is 84.1, with 16.9 expected years of schooling and 11.9 mean years of school.

The Philippines’ gross national income per capita is about $9,059, a far cry from Singapore’s $88,761.

The Philippines also ranked 92nd in the gender inequality index with a score of 0.388, while its gender development score stood at 0.966.

Jose Enrique A. Africa, executive director of think tank IBON Foundation, said the Philippines’ human development ranking does not reflect an improvement in the poverty situation.

“The appearance of improvement is unwarranted though, because the country’s economic growth has long been grossly inequitable and manifests disproportionately as income, profit and wealth gains for the richest rather than a generalized improvement in the conditions of the majority,” he said in a Viber message.

Almost half of Filipino families, equivalent to 13 million households, consider themselves poor, according to a survey by the Social Weather Stations in late 2023.

Mr. Africa said the index’s measure of education does not even capture the poor quality of education in the country.

“Amid low family incomes, the government has so much more to do to improve the reach and quality of the public school system,” he said.

The Philippines had one of the longest and strictest lockdowns in the world, with schools closed between April 2020 and March 2022. — B.M.D.Cruz

FSCC keeps eye on potential spillovers from global uncertainties

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

THE FINANCIAL STABILITY Coordination Council (FSCC) is keeping a close eye on the possible spillover effects from global developments, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said.

In a statement, Mr. Remolona, who is also FSCC chairman, said uncertainties in advanced economies were “likely to affect the Philippines in different ways.”

“While global markets have been very fluid, the Philippines has shown its resilience by expanding at a pace that exceeds that of most other economies in the world,” he said. “The FSCC recognizes that expectations at the end of 2023 of early rate cuts by the US Federal Reserve have been tempered by recent US data.”

“That said, the council weighs the potential spillovers coming from abroad versus the resilience that the local market continues to exhibit,” he added.

In February, the US Federal Open Market Committee kept interest rates steady for the fourth straight meeting. From March 2022 to July 2023, the Fed raised borrowing costs by 525 basis points (bps) to bring the target Fed fund rate to 5.25-5.5%.

In its Financial Stability Report released last month, the FSCC said the US central bank was unlikely to cut key rates soon and would likely keep policy rates elevated for longer than expected.

Markets widely expect the BSP to only begin policy easing after the Fed starts to cut rates.

The Monetary Board kept its benchmark rate steady at a near 17-year high of 6.5% for a third straight meeting in February.

From May 2022 to October 2023, the BSP raised rates by 450 bps. The Monetary Board is set to hold its next policy meeting on April 4.

Meanwhile, the FSCC said estimates show that a “sizable” portion of corporate bonds and loans would mature this year.

“Given the nature of these debts, the FSCC expects a significant amount to be refinanced,” it said.

“The council recognizes that the banking sector has been able to provide much of the corporate funding through the years. However, the FSCC also looks to a stronger capital market to complement the banking sector and to better manage various risks,” it added.

The report showed that while outstanding corporate bonds have grown “significantly” over the past 15 years. They have remained flat over the past five years.

At end-2023, outstanding corporate bonds stood at P1.55 trillion, lower than P1.6 trillion at end-2022. This was also reflective of the P259.3 billion in maturing bonds.

The FSCC is also seeking to expand the access of Philippine corporations to the bond market.

“Enhancing the capital market is an issue that is shared by all members of the FSCC. We recognize that regulators must take a more proactive role in market development and encourage deliberate collaboration among stakeholders,” Mr. Remolona said.

The FSCC is an interagency council composed of officials of the BSP, Department of Finance, Securities and Exchange Commission, Insurance Commission and Philippine Deposit Insurance Corp. — Luisa Maria Jacinta C. Jocson

Gov’t faces challenges in bringing down fiscal deficit

MARI GIMENEZ-UNSPLASH

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT might find it challenging to meet its targets in bringing down its fiscal deficit in the near term if it does not ramp up fiscal consolidation plans, analysts said.

“By and large, although the country has narrowed down its budget deficit… it is still theoretically high considering that the ideal deficit has fallen short of the target,” Colegio de San Juan de Letran Graduate School Associate Professor Emmanuel J. Lopez said in an e-mail.

“If this will be a trend for the rest of the year till 2028, it is doubtful the government can achieve the deficit target cap of 5.1% of the gross domestic product (GDP),” he added.

The National Government’s (NG) budget gap narrowed by 6.32% to P1.51 trillion in 2023 from P1.61 trillion in 2022. However, it was 0.85% above the P1.499-trillion deficit ceiling.

Government revenues rose by 7.86% year on year to P3.82 trillion and exceeded its program by 2.55%. On the other hand, state spending went up by 3.42% to P5.34 trillion, surpassing its program by 2.06%.

The NG’s deficit as a share of GDP stood at 6.2% as of end-2023, a tad higher than its 6.1% target but lower than 7.3% at end-2022.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the year-on-year improvement of the deficit-to-GDP ratio signaled “fiscal prudence” despite high inflation and interest rates.

“In this fiscal trade-off, fiscal consolidation won out (lower deficit ratio with a slight breach of the program deficit target) over the fiscal objective to support growth and offer some relief to higher interest rates and inflation,” he said in an e-mail.

“We think that this ongoing fiscal trade-off and other dynamics will not change materially in 2024 and expect a fiscal deficit outlook of P1.58 trillion that corresponds to a lower ratio of 5.5% of our projected 2024 GDP,” he added.

This year, the NG’s deficit ceiling is capped at P1.39 trillion or 5.1% of GDP. The government seeks to bring this further down to 3% by 2028.

Finance Secretary Ralph G. Recto earlier said the government’s fiscal performance remains “robust” and is on track with its consolidation plan.

Meanwhile, Ateneo de Manila University economics professor Leonardo A. Lanzona said the government’s fiscal consolidation efforts have been “uncertain and disappointing.”

In an e-mail, he noted that the targets were deliberately downgraded as the government recognized “the limits on fiscal space and growth expected during the year and the need to stabilize its fiscal position.”

“However, the government has exceeded its targets as the economic performance dipped and the social problems due to inflation grew. Thus, the budget deficit naturally narrowed, but is still higher than the government target,” he added.

Mr. Lanzona said the government does not have enough fiscal resources to both “grow the economy and meet its social responsibilities.”

Mr. Lopez said the government should manage its fiscal spending in the near term.

“Practically the government is spending more than its earnings, therefore increasing its borrowing from outside sources to achieve the desired fiscal spending,” he added.

The Philippines’ efforts to bring the deficit down would depend on economic growth, Mr. Asuncion said.

If GDP expands at a better-than-expected pace, Mr. Asuncion said it may be possible to meet the 3% deficit target “sooner than later.”

“We think this is within the realm of possibility if the easing of monetary policy interest rate settings comes sooner than later,” he added.

The economy grew by 5.6% last year, much slower than the 7.6% expansion in 2022. It also fell short of its 6-7% growth target.

This year, the government is targeting 6.5-7.5% GDP growth.

To further bring down the deficit, Mr. Lanzona said there must be an “effective and massive” tax reform.

“A truly progressive income tax reform that focuses on wealth will be needed. Since these taxes are not based on consumption, these will have no impact on inflation as this will only entail a redistribution of incomes from the rich to the poor,” he added.

Mr. Recto earlier said he does not plan to introduce new taxes, for this year at least.

Instead, the Finance department has been tweaking and fine-tuning ongoing tax proposals, such as the rationalization of the mining fiscal regime and the Passive Income and Financial Intermediary Taxation Act.

SMC profit surges 67% to P45 billion

ANG-led conglomerate San Miguel Corp. (SMC) recorded a 67% jump in its net income for 2023, reaching P44.7 billion, driven by growth across its business segments.

The conglomerate’s earnings before interest, taxes, depreciation, and amortization (EBITDA) last year rose by 24% to P205.3 billion, while consolidated operating income improved by 34% to P144.5 billion, SMC said in a statement on Thursday.

SMC attributed the results to volume growth across its key businesses, including San Miguel Brewery, Inc., Ginebra San Miguel, Inc., Petron, and SMC Infrastructure, along with the integration of Eagle Cement Corp.’s financial results.

“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA, thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda,” SMC President and Chief Executive Officer Ramon S. Ang said.

“Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects,” he added.

SMC’s food and beverage business led by San Miguel Food and Beverage, Inc. (SMFB) saw a 10% jump in net income to P38.1 billion as revenues improved by 6% to P379.8 billion. The growth was due to better volumes and pricing strategies, the company said.

San Miguel Brewery, Inc. recorded a 16% increase in its 2023 net income to P25.3 billion as consolidated sales climbed by 8% to P147.3 billion.

Net income of Ginebra San Miguel, Inc. increased by 55% to P7 billion in 2023, while its EBITDA surged by 41% to P9.4 billion. Its revenues rose by 13% to P53.6 billion.

The conglomerate’s food group recorded a 2% jump in revenues to P178.8 billion due to “strategic pricing across segments, complemented by aggressive marketing to stimulate demand.”

“Strong fourth-quarter operating income growth of 89% cushioned a full-year decline at 23%, to end at P10.2 billion,” SMC said.

Net income of San Miguel Global Power tripled to P9.9 billion in 2023 from P3.1 billion in 2022 due to better operating margins and foreign exchange gains. Revenues fell 23% to P169.6 billion on lower contracted volumes and prices due to reduced fuel tariffs.

“Newcastle coal indices averaged $172.79 per metric tons (MT) in 2023, compared to $360.19/MT in 2022,” SMC said.

“Notably, the fourth quarter saw a 32% increase in volumes from the year-earlier period — a turnaround from the declines in the first three quarters of the year, partly due to higher sales volume from the San Roque hydropower plant, and increased contributions from its battery energy storage system network,” it added.

Petron Corp. saw a 10% jump in its 2023 net income to P10.1 billion. Its sales volume increased by 13% to 126.9 million barrels led by wide presence and effective volume-generation strategies both in the Philippines and Malaysia.

However, Petron’s revenues dropped by 7% to P801 billion as prices continued to correct from record-high levels in 2022.

SMC Infrastructure recorded a 33% improvement in its 2023 net income to P11.4 billion. Consolidated revenues grew by 17% to P34 billion due to sustained growth across all operating toll roads.

“Combined average daily traffic volume reached 1 million vehicles, an 8% increase from 2022 level, buoyed by continued increase in travel activities,” SMC said.

SMC’s cement business consisting of Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc. saw a fourfold growth in consolidated revenues to P37.2 billion in 2023 due to the full-year consolidation of Eagle Cement in 2023, and the start of commercial operations of a new facility in Davao del Sur.

SMC is confident that it would “efficiently manage its business and continue to deliver sustainable value” amid market uncertainties.

The conglomerate is expecting its food and beverage business to see sustained growth led by positive consumer demand backdrop, favorable inflationary environment, and strong brand following.

SMC’s Infrastructure business is forecasted to sustain its growth trajectory with continued traffic growth across its network, as well as increased travel nationwide.

With its increased capacity, the conglomerate said its cement business is seen to benefit from both private and public sectors’ push for economic and infrastructure development.

“SMC is optimistic that the country’s robust macroeconomic fundamentals and its strategy, anchored on our sustainability agenda, will sustain growth momentum throughout 2024,” it said.

On Thursday, SMC shares dropped by 0.39% or 40 centavos to P101.10 apiece. — Revin Mikhael D. Ochave

Filipina celebrities define the female struggle

BRONTË H. LACSAMANA

HUMILITY, humor, and humanity are three qualities that a “shero” or female hero must have, said Filipina celebrities at a discussion held to commemorate International Women’s Month.

Insurance company InLife organized the event gathering five different women to talk about their perspectives on modern feminism, albeit from different backgrounds. The session, titled “The Spot: Sheroes in the Limelight,” took place on March 12 at The Peninsula Manila in Makati City.

The panel was composed of singer-actress Sharon Cuneta-Pangilinan, comedienne Kaladkaren, actress- comedienne Mitch Valdez, radio DJ Nicki Morena, and content creator Aryn Cristobal.

Kaladkaren, a transwoman comedienne and advocate for LGBTQ+ (lesbian, gay, bisexual, trans, queer) and women’s rights, observed that they all had to contend with the pressures of society.

She quoted the iconic monologue delivered by America Ferrera in the 2023 film Barbie: “You have to be thin, but not too thin … You have to have money, but you can’t ask for money because that’s crass. You have to be a boss, but you can’t be mean. You have to lead, but you can’t squash other people’s ideas. You’re supposed to love being a mother, but don’t talk about your kids all the time. You have to be a career woman, but also always be looking out for other people.”

To conclude, Kaladkaren pointed out that it could be summarized in Bea Alonzo’s famous line in the 2013 blockbuster Filipino film Four Sisters and a Wedding. “Bakit parang kasalanan ko (Why is it always my fault)?!” she said as she imitated the character.

A reaction to these unfair standards, the panel discussion was held in time for the 5th anniversary of InLife’s “Sheroes” program.

Filipino multi-hyphenate megastar Sharon Cuneta-Pangilinan, said there are many ways to empower women: through financial education, health and wellness, women-specific solutions, and access to business and social networks.

“We, as public figures, have a responsibility. What we advertise and promote should be true, authentic, sincere,” she told the press after the event.

With InLife, she has been able to give financial advice to Filipinos, like doing ample research before investing in anything and diversifying one’s assets. “People listen, so we can’t just say anything,” Ms. Cuneta said.

Influencer and content creator Aryn Cristobal’s struggle was with expectations put on her by society, in the form of titas (aunts) who judged her life choices.

Not only was she single after an engagement that was broken off, and working freelance, but she also swore off having children. “I decided I wanted to focus on giving back and taking care of my mother instead of starting a family as is expected of many women my age,” Ms. Cristobal said.

The decision allowed her to break free from outside forces, to finally “take ownership of her life.” Women can get fulfillment from many things — whether it’s starting families, building a career, or being independent, she added.

Renowned actress-comedian-singer Mitch Valdez said she resonated with Ms. Cristobal’s lifestyle as well. “I was really a hubadera when I was younger,” she said, using a term that means a woman who wears revealing clothes. However, one instance where she had to prove that women could do many things was when she filled in for an absent male vocalist in her band.

“Imagine; I had to sing both the male and female parts!” said Ms. Valdez. She then performed a hilarious set where she impressively did just that.

As a woman who grew up in typhoon-prone Samar and moved to Metro Manila to be a breadwinner for her family, radio DJ and TV host Nicki Morena said, “I had to find confidence in myself, as a probinsyana (provincial), as a Bisaya.”

Her perseverance helped her stay on track and she has “never looked back since.” For her, it is important that women be free to do such. — Brontë H. Lacsamana

PLDT inks clean energy supply deal with ACEN unit 

PLDT INC. announced on Thursday an agreement with ACEN Renewable Energy Solutions (ACEN RES) to power the telecommunications company’s facilities.

“This supply agreement with ACEN RES expands and diversifies renewables in the energy mix of our key facilities. Our continuous transition to [renewable energy] supports the direction to make our PLDT facilities eco-efficient and future-ready,” PLDT Vice-President and Sector Head for property and facilities Leo Gonzales said in a statement.

ACEN RES is the retail electricity supply business of Ayala-led energy company ACEN Corp.

Under the agreement, ACEN RES will energize the 33 facilities of PLDT in the National Capital Region, PLDT said. Among those facilities is the company’s 24/7 command center in Makati City.

ACEN RES will source its power from solar power and geothermal energy.

The collaboration is expected to result in a reduction of at least 21,000 tons of carbon emissions per year, PLDT said.

“We are keen on supporting PLDT as it continues to transition to RE (renewable energy) and use more renewable energy to power its operations that are vital to our country’s connectivity and digital infrastructure. ACEN is looking forward to this venture that will help foster an energy-secure future for our telecommunications industry,” said Jose Antonio T. Valdez, ACEN senior vice-president for market transformation.

Just last week, PLDT announced that it had secured a P1 billion green loan to fund its ongoing expansion and upgrade of its fiber network, which it said would allow the company to reduce its carbon footprint.

At the local bourse on Thursday, shares in the company gained P10 or 0.72% to end at P1,400 each; while shares in ACEN closed unchanged at P3.80 apiece.

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

Eternity and a day

Movie Review
Gaano Kita Kamahal
Directed by Mario O’Hara

COMING OFF the commercial and critical success of Kastilyong Buhangin (Castle of Sand, 1980), Nora Aunor, Lito Lapid, and Mario O’Hara put their heads together once more to present Gaano Kita Kamahal (How Much I Love You, 1981), a more ambitious, more lavish production.

Mely Tagasa and Mario O’Hara’s script for Kastilyong Buhangin told their story in fairy-tale terms — Nora and Lito’s Laura and Oscar growing up as childhood playmates, Laura tormented by her ogre foster-father, brave Oscar defending her and paying a heavy price. The die was cast long before they knew anything: Oscar was Laura’s friend — brother, almost — before falling in love; Oscar grew up not under his mother’s care but in the prison system — when released he walks about with a convict’s mentality (strike back when struck; stick to your friends no matter what; fight hard, play rough, die young). Laura, blessed by Oscar’s sacrifice, knew better — she had the talent and drive to succeed in a singing career. They were fated to follow their respective trajectories, she an uninterrupted ascent, him a downward spiral.

In Gaano Kita Kamahal (script by Daniel Martin, Greg Tadeo, Jerry O’Hara, Mario O’Hara) the tone is set by the film’s opening image, of a man in ballerina drag dancing a clumsy pas de duh while Melissa Manchester croons “Through the Eyes of Love” on the soundtrack — the dissonance between romantic ballad and graceless slapstick at once funny, ugly, and somehow poignant. We meet the lovers as strong independent-minded adults pursuing separate if parallel careers: Lito as sword master Hector, Nora as songstress Pilar. Presumably they met in a show and fell in love; presumably Hector with his strong, rugged physique felt the need to expend surplus energy not just on Pilar but on any statuesque beauty who happens to walk past — in this case singer Lucy Alba (Geraldine), daughter of veteran director Bernardo Alba (Mario Escudero), who happens to be Hector’s mentor. When Lucy gets pregnant, Hector is stuck.

Obvious why Kastilyong was such a box office smash — nothing hits harder than a pair of star-crossed lovers (ask Shakespeare), especially when you’ve followed them from childhood. Asked to repeat Kastilyong’s winning recipe O’Hara fiddles with the formula, and the result is more complicated with a hidden agenda — to pay tribute to Filipino vaudeville.

You see that agenda everywhere: the ballads, the dance numbers, the comedy skits. Señor Alba has big plans for Hector to star in his latest film production (vaudeville is dying, has been dying for years, and the jackpot is an offer to make a movie of what you’ve been performing all this time onstage). Alba playfully challenges Hector to a duel wherein the former easily disarms the latter, the director reminding Hector that he taught him everything he knows. When Hector defies Lucy’s demands to marry her, he should have known better — or does when Señor Alba sets the record straight (I can make or break you). The result is grotesque comedy with O’Hara planting the camera before the chapel altar, turning it into an impromptu stage where priest blesses the couple’s union, well-wishers shake hands, and the camera, once in a while, freezes on Hector’s face to show what he thinks of the farce.

Offered a bit of sugar and you can take or leave it depending on how you feel at the moment; prohibited from ever having sugar for the rest of your life and you develop a craving, as if to crystal meth — now Hector can’t stay away from Pilar, who doesn’t for a moment encourage him but can’t help being responsive. Early on O’Hara showed us the lovers’ normal interaction (long takes of the two bickering); once the rampart of matrimony rises between them the interactions suddenly become wordless, bitterly exchanged glances and gestures, and what starts out as a funny sketch darkens into a deeply felt passion play.

Nora is best known for her roles as dusky provinciana either being threatened by a tyrannical employer or abusive husband or drunken Japanese officer; not as well-known but should be are her films as reluctant adulterer, who falls into a love affair not entirely of her own volition, pulled into it by feelings she can’t express in words (but can, eloquently, with her eyes). One remembers that moment in Kastilyong Buhangin when Oscar pulls at Laura’s hand and the audience swoons; there’s a similar moment in Gaano where Hector seizes Pilar — Nora looks surprised, not just by Hector’s gesture but by her own feelings on the matter. O’Hara does capture lightning in a bottle a second time, at least in this moment, a gift if you like to Nora’s fans.

And sometimes it’s not the script, sometimes it’s the details enhancing the drama. O’Hara began with a sarcastic interpretation of “Through the Eyes of Love” (we meet a pair of not exactly graceful lovers), along the way quotes lines from Alan Jay Lerner’s “I’ve Grown Accustomed to (His) Face” (which Pilar sings with rueful affection while O’Hara inserts shots of Hector in bed with Lucy), and so on. O’Hara is operating in full-on musical mode, the numbers commenting, sometimes cynically, on the story. When we reach the eponymous song’s onscreen performance we’re primed to soar as Nora negotiates the ladder of consonants and vowels (Mag. Pa. Kai. Lan. Man!) that is the song’s key term (roughly put: forevermore).

Or not. Nora and Lito as adulterers? Lito as an unrepentant asshole? Where’s the mix of action and song numbers? And what’s this vaudeville shit? Audience and critics alike expected a Kastilyong 2 and got a more adult, more clear-eyed melodrama where both lovers do wrong and know they’re doing wrong (in Kastilyong you get the sense it’s the alcohol and anxiety of living in the world outside prison) but can’t help themselves anyway (the film recalls the startling conclusion to Mike Nichols’ The Graduate only here Dustin Hoffman can kick ass and Katherine Ross can actually act and sing). Most of the film is wall to wall song numbers with a sprinkling of action (the play-fencing between Hector and Señor Abla; an outdoor braw — shot handheld with only one cut mid-sequence — where Hector defends his father) — a dry slog for Lito Lapid fight fans until the closing minutes. The film was savaged by critics and bombed at the box office.

Which is a pity; thanks to the success of Kastilyong, O’Hara managed to put together a dream team of talents: production designer Benjie de Guzman, who conceived the massively elaborate kitschy sets evoking the age of vaudeville (the musical numbers coming across as George Cukor with a trace — just a trace — of deadpan Ken Russell); cinematographer Conrado Baltazar, who gave the film a brooding melancholic grandeur; and Efren Jarlego — of the Jarlego family of film editors — who did the understated but precise cutting.

Flaws? O’Hara inserts one too many melodramatic incidents (a jar of flung acid, an improbably timed car accident) while trying to maneuver his chess pieces to their inevitable conclusion, a confrontation between Hector and his mentor, Señor Alba.

I remember in an interview O’Hara citing Michael Curtiz’ The Adventures of Robin Hood as a formative childhood experience and I can see that wide-eyed child at work here, shooting the intricate swordplay in long takes, taking care to show the footwork (almost always a neglected aspect in action sequences) and how balance is always a swordsman’s concern. I wondered at the choreography — how did Lito Lapid manage to teach his adversary fencing, and how did the older Mario Escudero keep up? Turns out Escudero was the fencing master — he taught Fernando Poe, Jr. how to use the sword — and Lito Lapid the pupil, having an infernal time keeping up. Art imitates life, and so on.

Critics flinched at the prospect of a cheesy swordfight and Lapid fans were presumably disappointed he didn’t get to use his fists, but this is O’Hara again and without shame expressing his love for a dying art — the fight takes place on a stage littered with stage props, loose curtains, fallen light fixtures, continues backstage and up (of course) to the balcony, with a finale straight out of Hitchcock. Critics may have flinched and audiences failed to follow, but I had the time of my life, fashion trends in action and filmmaking be damned. Highly recommended.

(Thanks to Jojo De Vera for support and valuable information)

DoubleDragon: Hotel101-Madrid finished by Q4 2025

SIA-LED DoubleDragon Corp. (DD) on Thursday said its hotel project in Madrid is expected to be finished by the fourth quarter (Q4) of 2025.

The Hotel101-Madrid project, which is being implemented by DoubleDragon’s subsidiary Hotel101 Global, will begin construction in April, the listed company said in a regulatory filing.

Hotel101 Global broke ground for the project on March 13.

The 680-room hotel project is located in a 6,593 square-meter property along Avenida Fuerzas Armadas, Valdebebas, Madrid, Spain.

The hotel’s construction will be done by Ferrovial Construction Group, one of the largest construction companies in Spain.

“[The] opening is just in time for the start of the Madrid F1 Grand Prix, which happens to be located right beside Hotel101-Madrid,” DD said.

“[The hotel] is surrounded by major landmark buildings and is about three minutes walk to the Valdebebas Train Station, four minutes walk to IFEMA convention complex, five minutes walk to Real Madrid Sports Complex, and around seven minutes to the new Madrid Barajas International Airport,” it added.

Hotel101 is seeking to have presence in 25 countries by 2026. These include the Philippines, Japan, Spain, USA, United Kingdom, United Arab Emirates, India, Thailand, Malaysia, Vietnam, Indonesia, Saudi Arabia, Singapore, Cambodia, Bangladesh, Mexico, South Korea, Australia, Canada, Switzerland, Turkey, Italy, Germany, France, and China.

On Thursday, DoubleDragon shares fell by 0.61% or five centavos to P8.13 apiece. — Revin Mikhael D. Ochave

As Oppenheimer triumphs at the Oscars, we should ask how historical films frame our shared future

CILLIAN MURPHY IN OPPENHEIMER (2023) — IMDB

BOX office receipts for Christopher Nolan’s Oppenheimer had already approached the billion-dollar mark worldwide before the 2024 Oscars ceremony.

To this financial success, along with film awards for Best Director, Cinematography, Editing, Sound, Best Actor, and Best Supporting Actor, Oppenheimer garnered Mr. Nolan his first Academy Award for Best Picture.

In larger Academy Award history, this raises the tally for historical film wins to 52 over 96 competitions, according to research by film scholar Jonathan Stubbs and records at the Oscars website. There is a reason why people call big-budget historical films “Oscar bait.”

The glossy spectacle of this genre often brings attention to its makers. And yet, as I argue in my new book, Making History Move: Five Principles of the Historical Film, because the genre has such an outsized effect on spectators and their sense of historical reality, it’s important to think about and understand how historical films are constructed.

With Oppenheimer having received so much commercial, critical and Academy success, we have an opportunity to think about critical criteria for viewing historical film — and what we are owed by historical filmmakers.

HIGHLY INFLUENTIAL MEDIUM
This genre of film represents much more than a bold quest to win the most sought-after prize at the most celebrated labor union awards in history. These films look to the past to offer us a story and argument in an effort to see ourselves in the present — and to make decisions toward the future.

The genre combines a bookish status, conveying data and the sense of learning about the real world. Facts are served up with a wallop of emotion, excitement, adventure, terror and tears, to large and diverse audiences.

Although far from the most trusted medium for history, a recent large-scale survey of Americans published by the American Historical Association found that historical documentaries and films are the top two sources for information about the past for the public.

Unlike with pure fiction, when we watch a historical film (such as other 2024 Best Picture nominees, The Zone of Interest and Killers of the Flower Moon) we have the sense that we are seeing and hearing the past as we learn details about historical people and events.

These films speak to shared intergenerational and foundational experiences and legacies. We interpret historical films in ways that feel personal.

PARTISAN CULTURAL BUBBLES
We are well into the experiment of the internet age when social media platforms sort people into tribes.

In the words of Renée DiResta, a researcher at the Stanford Internet Observatory, people are living in discrete spheres operating with distinct media, norms and frameworks of facts — their own “bespoke realities.”

These information silos spawn political convictions and perspectives that reinforce separate interpretations of present and past.

The result creates multiverses of meaning. We exist in partisan cultural bubbles, abandoning the tussle over an objective sense of the past in favor of ever-expanding and contradictory subjective narratives.

As this happens, mass media platforms, like feature films, gain precedence. They cross boundaries impermeable to history books, museums, university lectures, and social networks, speaking to a shared sense of identity at vast communal scales.

JUST A MOVIE?
Our ability to keep what we are watching at a critical distance is less robust than we may assume. Neuroscience illuminates a central aspect of film’s power to captivate, enchant, and convince.

As professor of psychological and brain science Jeffrey Zacks writes in his book Flicker: Your Brain on the Movies, our brains operate by building neural models to understand our direct experience:

“[W]hether we experience events in real life, watch them in a movie or hear about them in a story, we build perceptual and memory representations in the same format [in our brains].”

He further explains that “it does not take extra work to put together experiences from a film with experiences from our lives to draw inferences. On the contrary, what takes extra work is to keep these different event representations separate.”

Now consider what happens when we make models of the past that we code as historical and non-fiction.

5 PRINCIPLES OF HISTORICAL FILMS
For these reasons it is critical that we engage these films as more than mere diversion and amusement. Drawing on philosophy of history, literary and film theory, I have isolated five key principles to grasp and understand their construction, including:

Narration, the stories they choose to tell and how they tell them;

Evidence, the sources and use of data that represents the past;

Reflexivity, the use of rupture techniques that pull the audience out of their immersion in the story, reminding them of the structuring process of history;

Foreignness, the extent to which a film shows the richness of differences in ideas, beliefs, and material realities of the past, rather than creating a pantomime of contemporary people in fancy dress;

Plurality, whether a film presents us a range or new perspectives on the meaning of events through their selection of people as characters.

These principles help us consider the creation, role, and impact of historical films.

ABOUT ENVISIONING FUTURES
What makes historical films so compelling and so difficult is they have to fictionalize and imagine narratives around real people and events.

Filmmakers working with realities of the past are charged with making an interpretation of historical data — and a judgment about what it means to us today, in a way that engages and entertains us as spectators.

To be true to that contract, such films should not simply make things up. They need to strive for accuracy and objectivity, while performing a deft sleight of hand to enthrall and captivate.

On top of box office success and critical success, Oppenheimer does an impressive job of translating biographical source material into an engaging and thought-provoking feature film. As such, this functions as a clarion call in the present, sparking real questions about the meaning of the nuclear age today.

 

Kim Nelson is an associate professor of Cinema Arts at the School of Creative Arts, University of Windsor. Mr. Nelson receives funding from the Social Sciences and Humanities Research Council and Canadian Heritage under their Initiative for Digital Citizen Research.

Transforming financial services in the age of innovation and inclusion

Photo from Freepik / pch.vector

The advent of the digital era has transformed the delivery and consumption of financial services, and the COVID-19 pandemic has further accelerated this process. Digital transformation has redefined customer expectations in banking, making convenience, efficiency, and seamless experiences crucial.

However, a report from financial software-as-a-service (SaaS) provider 10x Banking said that banks globally are losing up to 20% of their customers to competitors due to poor customer experience. 64% of banks have openly admitted that their slow progress in adapting to digital transformation has resulted in missed opportunities to gain new customers.

As a result, it has become crucial for financial service providers to swiftly adjust to this new reality in order to stay competitive and relevant. In fact, 10x Banking reported that 74% of banks globally are currently seeking to expedite their digital initiatives this year, realizing the importance of staying ahead in an ever-changing landscape.

Furthermore, the integration of digital technologies has brought a revolution in how financial institutions function and how individuals manage their finances. With the advent of online banking to electronic payments, individuals now have access to a wide range of financial products and services at their fingertips. These efforts have made it easy for them to conduct transactions, manage investments, and access credit with ease.

According to Ernst & Young (EY), the adoption of new technologies, such as artificial intelligence (AI), blockchain, data analytics, the internet of things (IoT), and robotic process automation (RPA) has enabled banks, insurers, and other financial institutions to overhaul their operations, identify new ways of doing business, and create opportunities for challenger businesses like payment services providers.

On the other hand, a report from the Bank for International Settlements has emphasized the impact of fintech companies and big tech players in bringing digital transformation. This transformation has brought about new challenges for traditional business models to remain competitive.

In the Philippines, the market has a young and mobile-savvy population, making it a promising target for financial institutions due to factors like high internet penetration and demand for financial services.

Promoting financial inclusivity

According to a report published by World Bank, efforts are being made to educate small entrepreneurs on financial planning, sustainability, technical know-how, risks involved in loans, and the benefits of formal lending channels for economic independence. Furthermore, digitization makes finance accessible, lowers costs, boosts economic activity, enhances credit access through data analysis, and contributes to financial development and stability.

Regulators in the Philippines are actively supporting the growth of digitalization in the financial sector by introducing new digital banking licenses, real-time payments systems, and standardized QR networks. According to McKinsey & Company, efforts are being made in the country to foster financial innovation and improve financial inclusion through digital-first business models.

The government has also been promoting digital transformation through initiatives like digitalizing essential public services and encouraging individuals and businesses to embrace digitalization.

For instance, the Pag-IBIG Fund has embarked on a major digitalization initiative to address the country’s housing backlog, aiming to provide at least 708,000 houses by 2028.

In December 2022, Pag-IBIG, in partnership with the PropTech Consortium of the Philippines and the Subdivision and Housing Developers Association (SHDA), launched Phase 1 of digitalizing its takeout process. This approach marks as the first housing fund to digitalize its takeout for affordable housing in Asia, aligning with the vision to set new industry standards and revolutionize the Philippine real estate industry.

Additionally, Pag-IBIG recently launched the Virtual Pag-IBIG mobile app, a digital platform for its members to access services and perform transactions anytime. Members can view their savings, dividends, payment history, and loan balances through the app. This digital transformation is expected to significantly increase home loan applications and savings transactions, while simplifying the process for both members and partner developers.

A call for better financial service

Although digitalization presents various opportunities for financial institutions to enhance their operations, reach new markets, and engage with customers innovatively, it also poses several challenges that must be addressed.

One of the primary challenges in digitalization for financial institutions is ensuring the security of their systems. As financial institutions increasingly rely on digital channels to conduct transactions and store sensitive customer data, it makes them vulnerable to cyber threats. Cyberattacks can also result in financial losses, reputational damage, and legal liabilities.

Because of this threat, EY reported that financial services companies are facing the challenge of building trust with their customers. As a result, they are making significant investments in upgrading their legacy systems, adopting an agile way of working, and focusing on customer demands. They are doing so by investing in innovative online banking, digital platforms, and improving the accuracy of their reporting through better data quality.

The digital divide also presents a significant challenge in achieving widespread digitalization on the financial sector. Brookings Institution has mentioned that the global digital divide encompasses various aspects beyond mere access, including digital skills, use, infrastructure quality, and content accessibility. In Southeast Asia, around 150 million adults are digitally excluded due to factors like illiteracy, low income, and lack of access to capital. This exclusion leads to higher fees, limited access to credit, and a reliance on cash, perpetuating poverty cycles.

According to the Institute of Electrical and Electronics Engineers (IEEE), addressing digital divide requires a multi-faceted approach that combines infrastructure development, digital literacy programs, and innovative solutions, focusing on universal and meaningful connectivity. Furthermore, bridging the digital gap is crucial for boosting financial inclusion, especially for marginalized groups like those with lower incomes, the less educated, and people in rural areas.

Meanwhile, the rapid pace of technological advancement is posing a significant challenge to financial institutions as new technologies emerge and existing ones evolve. As a result, institutions are urged to continuously adapt to stay relevant and competitive.

A report by McKinsey revealed that financial institutions need to invest significantly in research and development, as well as provide ongoing training to their employees to equip them with the necessary skills to leverage emerging technologies effectively. Failure to keep pace with technological advancements risks falling behind competitors and losing ground in an increasingly digital marketplace.

Looking ahead, the digital revolution is expected to continue shaping the future of financial services. The International Monetary Fund said that emerging technologies, such as machine learning, IoT, and decentralized finance are geared to further disrupt traditional business models and drive innovation in the financial industry. — Mhicole A. Moral

NAC sees temporary increase in global nickel prices

NICKELASIA.COM

By Sheldeen Joy Talavera, Reporter

LISTED mining company Nickel Asia Corp. (NAC) said it expects global nickel prices to temporarily increase in the short term due to the presidential election in Indonesia, the world’s largest nickel producer.

“Right now, due to oversupply, there is some pressure on overall nickel prices. However, because of the presidential elections in Indonesia, there has been a slowdown in the awarding of their mining quota permits. So, in the very near term, there is some price upside for nickel,” said Andre Mikael Lu Dy, NAC’s vice-president for treasury and investor relations and sales, in a recent briefing.

“In the very near term, there is some upside potential for nickel prices,” he added.

Mr. Dy said, however, that he expects global nickel prices to eventually “normalize” after the leadership changes conclude.

“As the government gets settled into the roles and mining quotas are released, prices will normalize because the physical production of nickel and nickel pig iron in Indonesia is still a lot,” he said.

Indonesia produced an estimated 40.2% of the world’s nickel last year, according to S&P Global Market Intelligence data.

As demand continues to grow at a pace of 3-5% in the stainless-steel market, Mr. Dy said that “some tightness in the supply” could be experienced by 2028.

For production, he expects it to remain at the same level with “not a lot of growth” but can “still be growing by low single digits.”

NAC saw a decline of 53% in its attributable net income to P7.9 billion for 2023, driven by lower nickel prices. Revenues from the sale of ore declined by 16% to P21.4 billion.

During the period, the weighted nickel ore sales price dropped by 20% to $23.30 per wet metric ton (WMT). The company’s five operating mines sold a combined 16.5 million WMT, up 3%.

Analysts said that the anticipated temporary increase in global nickel prices offers short-term income opportunities.

“In the short term, the anticipated increase in nickel prices due to the Indonesian presidential election could positively affect NAC’s income for 2024,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.

“The eventual normalization of prices as production resumes may mitigate this impact,” he added.

For his part,  Luis A. Limlingan, head of sales at Regina Capital Development Corp., said: “To achieve higher net income, NIKL could focus on cost reduction, diversification, market expansion, strategic partnerships, technology adoption, and hedging against price volatility.”

Mr. Arce said that attaining higher income can be realized through diversifying its product portfolio to reduce dependence on nickel prices.

He added that the company may implement strategies such as “enhancing operational efficiency to reduce production costs” and “expanding into markets with higher demand for nickel or value-added nickel products.”

Mr. Dy did not specify the exact amount of capital expenditure (capex) allocated for 2024, but he said that it is “half or less than half” of last year’s. The company set a capex of P4.5 billion in 2023.

“The capex for Nickel Asia this year is much less than what we spent for last year. Last year was an outlier because we had to do a lot of equipment replacement,” he said.

NAC is currently developing three mine projects, namely Dinapigue, Bulanjao, and Manicani, that are scheduled to either ramp up or kick off this year — a development it said could drive its sales volume growth in the coming years.

Shares in the company went down by P0.18 or 4.17% to close at P4.14 each.

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