Cemex shares surge amid DMCI acquisition speculation

February 12, 2024 | 12:03 am

THE stock price of Cemex Holdings Philippines, Inc. doubled last week following an investor rally amid speculation regarding DMCI Holdings’ planned acquisition of the cement producer.

Data from the Philippine Stock Exchange (PSE) showed that Cemex’s shares reached 214.98 million, valued at P334.34 million, from Feb. 5 to 9.

The price per share of Cemex closed at P1.80 on Friday, more than double the closing price of P0.89 the week before. Its stock price has surged from its P0.94 finish on Dec. 29, 2023.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said the increase in Cemex stock prices was due to news circulating about DMCI’s negotiations to acquire Cemex Holdings Philippines, the local unit of Mexico’s Cemex S.A.B. de C.V.

“This news has ignited a flurry of market activity, with investors closely monitoring developments and assessing the potential impact on both companies involved,” Mr. Arce said in a Viber message.

According to a Reuters report, a source said that the Consunji Group’s DMCI Holdings was seeking to acquire Cemex for as much as $714.16 million or P40 billion. This exceeded the company’s current valuation of P21 billion ($374.93 million).

If the acquisition materializes, Mr. Arce said that it would provide a competitive advantage for the two holdings.

“Investors may interpret DMCI’s interest in diversification positively, seeing it as a strategic move to expand its business portfolio and potentially tap into new revenue streams. This could lead to increased confidence in the company’s long-term growth prospects, potentially driving up its stock price,” he said.

Similarly, Aniceto K. Pangan, an equity trader at Diversified Securities, Inc., said in a Viber message that due to the speculation, “[Cemex] moved up as book value at P3.19 per share, higher than the current price.”

With this trend, Mr. Pangan saw that the acquisition price might exceed the current price.

Last week’s closing price of P1.81 was the highest in 38 months, or since it reached P1.83 on Nov. 23, 2020.

According to Mr. Arce, Cemex’s downturn in 2023 was due to oversupply in the industry, resulting in a downward spiral in prices.

“However, amidst these adversities, the potential acquisition presents an opportunity for synergy between Cemex and DMCI Holdings,” he added.

Despite this, both analysts said that the issue remained subject to validation.

“With no definitive stance, the acquisition issue remains speculative and thus bound to correct,” Mr. Pangan said.

In separate disclosures on the stock exchange, the two parties clarified that there was still no definitive transaction.

The building materials company also emphasized that they had not authorized nor issued any of the circulating information.

“While Cemex continues to explore any divestment opportunities as disclosed in the 2023 Tender Offer Report of Cemex Asian Southeast Corporation (the principal shareholder of the Corporation), the Corporation is not privy to any discussions by its shareholders and is not aware that there is any definitive transaction at this time,” the disclosure said.

Although speculations increased investor interest for the week, without any definitive transaction nor assurances, volatility was to be expected, said Mr. Arce.

He added that “some investors may have adopted a wait-and-see approach, preferring to observe further developments before making significant investment decisions.”

Mr. Pangan projected Cemex’s fourth-quarter income to be at a loss similar to the third quarter. For the full year, he foresaw a P2 billion net income, higher than in 2022.

The company’s net loss totaled P582.58 million for the third quarter of 2023, exceeding the loss of P552.07 million incurred from July to September 2022.

For the first nine months of 2023, the net loss totaled P1.24 billion, compared to the P818.77 million loss recorded in the corresponding period of 2022.

Mr. Pangan projected Cemex’s fourth-quarter income to be at a loss like the third quarter. For the full year, he foresaw a P2 billion net loss, higher than in 2022. — Andrea C. Abestano

Note: This article has been updated to correct figures.

Mitsubishi brass bullish on PHL

February 12, 2024 | 12:03 am

VELO_PAGE1_image4 — The Mitsubishi Xforce SUV, which debuted globally in Indonesia last year, will enter the Philippine market this June. -- PHOTO BY KAP MACEDA AGUILA

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New releases to underpin growth this year

By Kap Maceda Aguila

MITSUBISHI MOTORS Philippines Corp. (MMPC) had a banner year in 2023, selling 78,371 units to retain second place among auto marques here. That figure allowed it to corner 18.23% of the market, paced only by perennial leader Toyota.

Buoyed by that performance and, perhaps, a handful of exciting models in key segments just around the corner, MMPC is looking toward outdoing itself this year — to the tune of 19% to 20% market share. This, of course, helps to underscore the importance of our market — as does the recent visit of Mitsubishi Motors Corp. (MMC) Executive Vice-President for Sales Tatsuo Nakamura.

The official, along with MMC ASEAN (Association of Southeast Asian Nations) B Division General Manager Minoru Kinoshita, recently met with some members of the media and content creators to convey their gratitude for the support, as well as to provide some insight into what’s in store.

MMPC President and CEO Takeshi Hara led off by reporting that the recently launched Mitsubishi Triton pickup was performing “great,” and that the company has been getting a lot of reservations for the model. “We’ll try to get more (vehicles), but there’s no problem with supply,” he stated. Mitsubishi reports that the Triton already has mustered a booking total of 3,000 units here, which stretches back to last year since people first got wind of the model’s arrival.

The bullishness of Mitsubishi’s business is apparently being centered in this region. Mr. Nakamura revealed, “In our relentless pursuit of excellence, we have strategically aligned our business overseeing the dynamic ASEAN market… We are concentrating our resources in ASEAN, of course including the Philippines, and keep preparing the introduction of new models year by year.”

He stressed that the Philippines is one of the most important and strategic countries in the region, and the business momentum is expected to be kept or even accelerated by the debut of the Mitsubishi Xforce in June.

The five-seater crossover has been specifically developed for the ASEAN market — as well as customers in Latin America, the Middle East, and Africa — and will come from the production line of Mitsubishi’s Krama Yudha Indonesia plant. Fittingly, it debuted globally in that country — specifically at the 30^th GAIKINDO Indonesia International Auto Show in August of last year, which “Velocity” had attended as a guest of Hyundai Motor Philippines to witness the debut of the Stargazer X MPV.

“The all-new Xforce is a five-passenger compact SUV that was developed with a focus on the way compact SUVs are used in the ASEAN region,” said MMPC in a release shortly after the global launch. Based on the concept “best-suited buddy for an exciting life,” the all-new model is said to feature “stylish yet robust, authentic SUV styling as well as comfort and practicality including a spacious cabin and versatile storage spaces well-balanced in a maneuverable, compact body size, and road handling that allows safe, secure ride in a variety of weather or road conditions.” In addition, the model boasts a Yamaha premium audio system developed with Yamaha Corp. in Japan.

The Xforce most recently debuted in Vietnam last January, and is said to have been getting a lot of interest. “In both countries, the Xforce has obtained high praise from the public,” revealed Mr. Nakamura.

Replying to a question from “Velocity,” MMPC EVP for Sales and Marketing Takanobu Suzuki said that the company is projecting annual sales of 7,000 units (or around 583 a month) for the model.

Concluded Mr. Nakamura, “We have full trust that the Xforce will be one of the pillars in the Philippine market… after the success of the new Triton.”

The Facebook I knew should not have left Harvard

February 12, 2024 | 12:03 am

When last week Meta Platforms, Inc. CEO Mark Zuckerberg shared a photograph of his Facebook page from 20 years ago — back when it was “thefacebook” — it was, for me, a little like the sponge cake that cast Proust back in time. The bare-bones profile page felt achingly familiar because I was one of thefacebook’s first few dozen users.

In those first weeks, with just 1,000 or so Harvard students registered, the website that would become Facebook was spartan in design and limited in what it promised. It hadn’t yet added all the compelling bells-and-whistles that have transformed the platform into the election-warping, government-shaking, memory-making behemoth it is today. In retrospect, though, some of its fatal flaws should perhaps have been obvious from the start.

Us early Facebookers used the site for three things. First, and most important, we could choose our own profile picture. This was vital, as our photos in the official school directory were often taken during our first days on campus, mostly with regrettable hometown haircuts. It also meant that the performative aspect of Facebook was its most distinctive feature from the get-go.

Second, we could create various groups of dubious utility (“people who think Harvard Square needs a greasy spoon diner”). While only half-serious, these communities helped us figure out what shared identities caught on and could become popular.

Finally, we could check up on who knew whom, and whether either of them was single. In the pre-smartphone era, getting such information when you needed it wasn’t easy. Some students I knew left parties midway to run to the computer lab, log on, check up on all the guests, and return armed with crucial intelligence.

What we never had to question was whether the other people on thefacebook.com were who they said they were, or whether they were telling the truth. We took that part for granted.

That’s because of where we were: Facebook was designed for people who already owed something to each other, simply by being part of the same campus community. The university was the real social network; Facebook was just a website that helped you navigate it. It was an addition to real life, not a replacement for it.

Regardless of its vast size and unparalleled reach, today’s 20-year-old Facebook seems as unprepared for the real world as us early adopters were when we were in our late teens and early 20s. In the real world, people do not have the mutual responsibilities that are taken for granted on a college campus. A university-centric model of networking isn’t designed for people who lie about who they are and what they want. Such users can create entirely false personas and narratives, and those can slowly take over the site.

Zuckerberg recognized the threat fairly early on; he famously insisted in 2010 that people have “one identity,” and that showing more than one face to the world was “an example of a lack of integrity.” But the 14 years since have proven that web-based social networks can’t impose integrity on their users. Only social networks in the real world can.

The links between Facebook and the real world were finally severed when what was once a “mini-feed,” showing you what the people you knew were doing, turned into a real “news feed,” in which over time you could share with people the news stories you were reading. This intersected neatly with the performative and identity-forming bits of Facebook’s DNA.

It also made the company and Zuckerberg himself a lot of money. Unfortunately, it was also deeply dangerous. It transformed the site into something more addictive but less functional, and much less grounded in real relationships. Early Facebook groups were designed to be, at worst, mean about professors. Now, in already divided societies such as India, they often spread religious and ethnic hatred, with harsh consequences.

One can only wonder what the world would have been like if another social network, one which did not assume mutual trust and responsibility from the start, had sprung up instead of Facebook. Another recent post from Zuckerberg — this time on Instagram — featured a clip from a very early interview where he pointed out, “When we first launched, we were hoping for 400, maybe 500 people; now we’re at 100,000 people, so who knows where we’re going next.” As one of those 400, maybe 500 people, I can’t say I am eager to find out.

BLOOMBERG OPINION

Philippine lenders’ earnings up 14% on lending, trading gains

February 12, 2024 | 12:02 am

By Keisha B. Ta-asan and Aaron Michael C. Sy, Reporters

THE NET INCOME of the Philippine banking industry rose by 14.4% last year amid higher interest income and trading gains, according to central bank data.

Banks’ net income rose to P354.93 billion from P310.12 billion in 2022, spurred by a 20% year-on-year increase in net interest income to P906.872 billion. Noninterest income fell by 15.8% to P218.93 billion from P259.89 billion in 2022.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., attributed improved profits to demand for loans despite high borrowing costs. The sector also had fewer bad loans, he said in a Viber message.

Outstanding loans issued by big banks rose by 7% to P11.701 trillion at end-December. It went up by 2.6% month on month. The December growth rate was unchanged from November, the slowest in three months.

Loan growth slowed for the most part last year amid the central bank’s aggressive rate increases.

The banking industry’s bad loan ratio fell 3.23% in December from 3.41% a month earlier, the lowest in a year, central bank data showed.

Lenders’ gross bad loans stood at P446.99 billion, 12% higher than a year earlier and 1.6% lower than the end-November level. A bank loan is classified as nonperforming when debt payments have not been made for 90 days.

“The higher income of banks was also due to higher trading gains and other investment income in view of the hefty gains in the global and local financial markets since November to December 2023,” Mr. Ricafort said.

Banks’ earnings from fees and commissions went up 12.4% to P138.637 billion from a year ago, while trading income climbed by 38.6% to P22.845 billion. Noninterest expenses rose by 13% year on year to P636.15 billion.

Noninterest expenses include compensation and fringe benefits, taxes and licenses, fees and commissions, and administrative expenses.

The operating income of Philippine banks grew by 11.9% to P1.13 trillion last year. Interest earnings rose by 39.7% to P1.27 trillion, while interest expense more than doubled to P366.254 billion.

The industry’s losses from financial assets slid by 5.8% to P83.465 billion. Provisions for credit losses fell by 12.8% to P91.83 billion, while bad debts written off plunged by 71.9% to P671.083 million.

The local banking industry’s assets increased by 9.1% to P25.147 trillion.

Possible policy rate cuts by the US Federal Reserve this year could lead to more trading gains and investment income for local lenders in the coming months, Mr. Ricafort said. Elevated interest rates in the Philippines and wider profit margins could also lead to higher earnings, he added.

The Fed raised rates by 525 basis points (bps) from March 2022 to July 2023, bringing its key interest rate to 5.25%-5.5%.

Back home, the Bangko Sentral ng Pilipinas raised interest rates by 450 bps from May 2022 to October 2023. It has kept the key rate at a 16-year high of 6.5% since November last year.

Meanwhile, banks’ bad loans could steady this year due to the delayed impact of BSP’s rate increases in the past year and the expected policy easing by the central bank, analysts said.

“These factors — the lagged impact of restrictive monetary policy and the anticipated easing of interest rates by the second half — may provide a cushion to nonperforming loans (NPLs) and cause levels to remain the same,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in a Viber message.

BSP earlier said the full impact of the Monetary Board’s aggressive tightening might be felt this year, but authorities could still adjust borrowing costs if needed.

“The pause in policy interest rate adjustments has allowed the BSP to further observe and assess how firms and households continue to respond to tighter monetary policy conditions, as lagged effects of prior policy interest rate adjustments are expected to manifest fully in 2024,” BSP Governor Eli M. Remolona, Jr. said in his open letter to the President on Jan. 23.

“Rate cuts would help further ease the NPL ratio alongside improvements in business and overall economic conditions that would further improve borrowers’ ability to pay their debts as these become more affordable with lower interest rates,” Mr. Ricafort said.

Monetary policy easing could help contain debt pressures on companies and households, Mr. Asuncion said.

The central bank will hold its first policy meeting of the year on Feb. 15.

Uniqlo keeps things light for summer

February 12, 2024 | 12:02 am

UNIQLO takes summer lightly with the theme of its Spring/Summer Lifewear collection. It also is endeavoring to be light on the environment, with a repair studio to help lengthen the life of garments.

On Feb. 7, guests trooped to the Palacio de Memoria in Parañaque to see the new collection in the mansion’s garden, accompanied by celebrity couple, actor Matteo Guidecelli and singer Sarah Geronimo.

The items on display exhibited a cool and soft palette with soft greens, mauves, pinks, and ecru. Materials used include supima cotton and natural linen, allowing breathability in the coming hot months. Other factors considered meant pushing the Miracle Air, AIRism, UV Protection, DRY-EX and Blocktech lines, some of which have properties like waterproofing, water repelling, breathability, and quick-drying ability. Even layering has some room here: we spotted light olive-green knits and light, billowy jackets.

The new LifeWear collection was inspired by the call to “ease into lightness,” according to a company release. “The collection circles back to LifeWear’s central ideas of comfort and versatility and updated for the season with new fits featuring a clean and casual style for work and play.”

This season’s collaborations include one with their regular design partner model Ines de la Fressange, and also mid-century inspired pieces from J.W. Anderson, and a second collaboration with British designer Clare Waight Keller inspired by London artistic community Lavender Hill (available at the brand’s Manila flagship at Glorietta 5 on Feb. 23). Uniqlo T-shirts are also getting the animation treatment with prints from Naruto, Disney, and video game Metal Gear.

UNIQLO’s Manila Global Flagship Store will have a Color and Style Corner to help customers figure out their Spring/Summer looks. It is open until Feb. 15.

On a more serious note, Goergette Jalasco, Uniqlo Philippines’ Vice-President for Marketing, talked to BusinessWorld about their sustainability programs. These include a repair studio to mend or patch damaged Uniqlo clothes at the flagship store. “In the event that the items are beyond repair, we can also gather the clothes… and put them in our ReUniqlo box, which is located in all our stores. We will find ways so that we can reuse them,” she said. “What we do currently is just to fix clothes that are torn and give it a new life.”

They also have a partnership with the Haribon Foundation, where the two-peso charge that comes with the paper bag goes to the foundation’s conservation efforts. “We are trying to make things more sustainable in our stores. For every purchase of a Uniqlo paper bag, we are now donating two pesos to the Haribon Foundation,” she said.

Onstage during the fashion show, Ms. Geronimo wore the Uniqlo UV Protection Pocketable Parka and AIRIsm Cotton Bra Tube Top. While she praises the parka for blocking out 90% of the harmful UV rays in the environment, about the top, she says, “This is actually a personal favorite.” Her husband said, “You always wear it.”

“When I’m reaching out for my bra, ay, hindi na pala ako magba-bra (it turns out I do not need to wear a bra). It’s already innerwear and a top in one. I wear this for my dance rehearsals, my recordings,” she said. Mr. Guidecelli, wearing the Miracle Air Jacket, said that he can take it from a casual morning to a more sophisticated evening. “The sophistication is very quiet,” he said, his wife agreeing, saying, “Understated.”

“When it comes to style, I always choose the classics,” said Ms. Geronimo, saying that she likes to pair Uniqlo dresses with either sandals or sneakers on trips abroad. — JLG

Polish farmers’ protests crank up pressure on EU agriculture head

February 12, 2024 | 12:02 am

WARSAW — Polish politicians called on the European Union (EU) Commissioner for Agriculture to quit as farmers blocked roads across his home country Poland and at border crossings with Ukraine, kicking off a month-long general strike to protest against EU policies.

Farmers in France, Belgium, Portugal, Greece, Spain and Germany have also been protesting against constraints placed on them by EU measures to tackle climate change, as well as rising costs and what they say is unfair competition from abroad.

Polish farmers are angry about the impact of cheap food imports from neighboring Ukraine and what they say is the “passivity” of their government.

EU Agriculture Commissioner Janusz Wojciechowski came under fire from all sides. “There is a man in Europe who united all European and Polish farmers against the reform he proposed. This is Janusz Wojciechowski. Resign!” said Deputy Prime Minister Władysław Kosiniak-Kamysz.

Mr. Wojciechowski was also criticized by the leader of the former ruling Law and Justice (PiS) party that proposed him for the position. Jaroslaw Kaczynski said he would call the commissioner to ask him to quit.

Mr. Wojciechowski told private broadcaster Polsat News that he had not answered or looked at his telephone, adding that he would make a statement on his future in a few days.

He defended his record, saying that he was the only commissioner to have opposed imports from Ukraine. About 100 farmers and 50 cars blocked the approach to Medyka border crossing, blocking traffic for all vehicles, Ukrainian border service spokesman Andriy Demchenko said on television.

The Ukrainian border service also said that traffic flow had been disrupted at two other crossings.

Elsewhere in central Europe, a farmers’ protest was taking place at the Zahony crossing on the border between Hungary and Ukraine.

In a comment to the Ukrainska Pravda outlet, Mr. Demchenko said there was no disruption for trucks during the day.

Polish media said there were over 250 blockades across the country. Images showed convoys of tractors clogging roads and banners such as “Without us, you will be hungry, naked and sober.”

“Today the whole of Europe is on fire. The Green Deal has arrived, which has destroyed our thinking about agriculture,” one of the protesters, Wieslaw Gryn, told private broadcaster TVN24 at the Hrubieszow border crossing.

“We are not against pro-ecological solutions, but they must be agreed with farmers.”

Poland’s agriculture minister said he understood the challenges farmers were facing but he hoped the protests could be organized in a way to be “the least burdensome for citizens.”

“Farmers have legitimate concerns, expectations and demands to limit the excessive inflow of goods from Ukraine, as well as from other non-European markets to the EU, especially to Poland,” Czeslaw Siekierski told public radio. — Reuters

The Israeli-Palestinian Conflict: What’s in it for us?

February 12, 2024 | 12:02 am

Images of displacement, deaths and destruction leave no doubt that Israel’s war on Gaza is the deadliest and most destructive in recent history. A large part of the city lays in rubble, over 40,000 dead, a quarter of a million at risk of dying due to hunger, homelessness and disease, and the dead excavated from graveyards in search for Hamas tunnels. Civility in war is gone, and the boundary between the right to defense and offensive warfare is being erased.

But what’s in it for Filipinos? Little is publicly heard of official policy other than caution against humanitarian impacts and specific concern for welfare of overseas Filipino workers (OFWs) in Israel. Unlike the west, the Philippines is not burdened with pro-Palestinian versus pro-Jewish lobbies, hate speech, and street protests. Lately, there is talk of opportunities for Filipino overseas work owing to Israel’s pronouncement that it is no longer eager to employ Palestinian Arabs in Israel and from those in the West Bank and Gaza.

Thinking of employment opportunities in Israel is one thing. Let us not forget that we have in our backyard a peace transition in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) where the foundations of public expectations are drilled down by fear and insecurity of how the peace transition will end. We do not know what will happen in the 2025 elections.

Borrowing from Horst Rittel and Melvin Webber (1973), one may describe Israel’s war on Gaza as a “wicked problem” that lacks inherent logic and signals when they are solved. Now on its third month, the war has not yet seen an end in sight. Neither does Israel nor Hamas know how to end this war, notwithstanding the fact that they are both aware of how it began. The backstory is longer than what broke out on Oct. 7, 2023.

If there is something that we can learn from Israel’s war on Gaza, it is about understanding the broader picture and the story behind it. In particular, how a non-problem has become a problem and how solutions have complicated the previous problem. Most importantly, how solutions tend to ignore the basics of property, rule, and revenues. It is here that wickedness comes into play — the lack of signals when a problem is solved.

Palestine did not become a problem because of interpretations of biblical text or the Q’uran. Similarly, the Moro rebellion in Mindanao is not about religion. Palestine became a problem because what was originally conceived as the State of Palestine with Jews inside it was not born. Instead, the State of Israel was midwifed without Palestine and Palestinians in the birthplace.

The problem began in World War I when Allied Powers aimed to rally the Jews against the Ottomans and the Central Powers. In exchange, the British offered a Jewish home in Palestine without serious consideration of the longer-term consequence. After World War I, the text of the 1922 British Mandate under the League of Nations sought to modify the promised homeland for the Jews. In Article 6, Annex V of the Mandate, the Administration of Palestine was supposed to ensure that the rights of other sections of the population were not prejudiced while facilitating Jewish immigration. In Article 7, the Administration of Palestine was supposed to enact a nationality law, including acquisition of Palestinian citizenship of Jews who take up permanent residence in Palestine. Yes, Palestinian citizenship for Jewish immigrants. Yet, the United Nations abandoned the promise of its predecessor.

Then came the new Arab states created after World War I. Like a big brother, they took up the cudgels for Palestine and wrapped Palestinian aspirations under the banner of Pan-Arabism. They rejected a partition plan (United Nations Resolution No. 181) to divide Palestine into a Jewish and Arab state. Instead, they chose to demolish Israel. The wars they launched in 1948-1949, 1967, and 1973 all ended in failure, with the perverse effect of Israel occupying the West Bank, Gaza, and a portion of the Golan Heights.

Fast forward to 1993. The 1993 Oslo Accords sought to provide a solution to a problem that had already become more complex since the conclusion of World War I. This time, Palestinians were at the front seat, represented by the Palestine Liberation Organization (PLO). Veering away from the 1948 UN Partition Plan, the new accord roadmapped a two-state solution. In the roadmap, Israel keeps its sovereign territory while Palestinians look towards Gaza and the West Bank as the would-be State of Palestine. The Fatah-controlled Palestinian National Authority was supposed to usher the transition for a period of five years after which the final status of the state would be established.

The formation of modern states is founded on rule, revenue, and property — on private and public property that is consolidated as the sovereign territory of the state. Israel had it since 1948, for the state and for its citizens. It also expanded the property regime by expanding Jewish settlements in Gaza and the West Bank, former territories of Egypt and Jordan that it occupied in the aftermath of the 1967 war.

Palestine did not have it. The Palestinian Authority focused on international diplomacy more than local governance. Without a property map, it could not collect revenues. It relied on the United Nations to provide welfare to Palestinian citizens. There was no effort to formalize property rights in the would-be Palestinian state and neither was there an effort to quantify, even to map out, Palestinian properties inside Israel. By 2006, the Palestinian Authority lost Gaza to Hamas.

Palestinian properties appropriated by Israel are objects of contention that feed into extremist programs: on the one hand, the abolition of Israel and on the other hand, the Zionist agenda to eliminate enemies that threatened the promised land for the Jews.

The two-state solution is being re-offered to conflict parties. However, this will only matter if the political solution includes not only negotiations on metes and bounds of sovereign territory of the two states but also property of citizens. There is no way for a Palestinian State to form without recognition of private property rights, including compensation for Palestinian properties appropriated by Israel for its citizens. Otherwise, Gazans will remain in refugee camps subsidized by the United Nations.

Property is also a crucial topic in the BARMM. While the Bangsamoro Organic Law (BOL) established the parameters of the BARMM territory and functions of the BARMM Transition Authority (BTA), the latter and the Regional Legislative Assembly (RLA) have not yet formulated a land policy. With the pendency of land policy, the implementation of the Indigenous Peoples Rights Act (IPRA) of 1997 for non-Muslim indigenous peoples is in limbo. So, too, is the resolution of competing land claims that often lead to violent clan feuds.

In the BARMM, the transition to peace will be difficult to conclude if both the BTA and the RLA ignore the problem of property. Political legitimacy of the BARMM government through elections alone will not strengthen autonomy.

Ed Quitoriano is a Chevening fellow on Conflict Resolution and specializes in peace and conflict studies. He works as senior advisor of the Council for Climate and Conflict Action Asia and principal consultant of Visus Consulting.

Making sustainable attainable

February 12, 2024 | 12:02 am

VELO_PAGE1_image8 — BPI Retail Lending and Bancassurance Head Dexter Lloyd Cuajotor — PHOTO BY ANGEL RIVERO

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BPI wants green choices to be more accessible

IT’S 2024, and the global climate crisis continues to escalate. As nations grapple with the more-than-ever urgent need to transition toward more sustainable living, the Philippines (despite not being a first-world nation) is no exception to this quest.

In fact, in a country where rapid urbanization and population growth place immense pressure on its natural resources and energy consumption, the adoption of sustainable homes and electric vehicles is a crucial step in mitigating the ill effects of our degrading environment.

The transition to electric mobility promises to revolutionize transportation infrastructure, alongside curbing pollution and urban noise. In a nation whose capital is ranked as the worst in traffic congestion as per recent surveys, we can infer that the resulting air pollution from internal combustion engines also poses significant public health concerns. Therefore, it is reasonable to say that the widespread adoption of EVs represents a transformative opportunity to alleviate environmental and public health strain, while promoting economic growth and energy independence. Likewise, harnessing renewable energy sources like solar power, to employing innovative building materials that enhance energy efficiency, all offer a promising ingredients for developing sustainable homes.

And while there is a demand for sustainable solutions, the major challenge here is really about financing. And that’s where BPI — the Bank of the Philippine Islands — comes into play.

BPI recently launched its “Green Solutions” offer — which makes it the first Philippine bank to offer a suite of financing options for sustainable solutions. Simply put, the company is now offering attractive loans for retail EV financing and green home improvements. Included in the latter are solar mortgages, which enable current clients to use their existing home collateral to install solar panels in their residence. They also now offer “eco-build” financing, for people who want to explore building more sustainable spaces.

“BPI Green Solutions represents a pioneering step in sustainable financing, providing customized solutions for Housing and Auto Loans to make sustainable homes and e-vehicles more accessible and affordable to the market,” shared BPI Retail Lending and Bancassurance Head Dexter Lloyd Cuajotor at a press conference held at the Ayala Museum last week.

The executive furthered that as it is the initial investment cost that seems to be the most common challenge for Filipinos looking to adopt a greener way of living, BPI aims to provide Filipinos with better access to such sustainable products and services through offering its flexible payment options, which will be enhanced with further discounts during BPI’s “All Out Promo” period, which will run until March 31.

Furthermore, BPI proudly showcases its commitment to sustainability beyond this latest Green Solutions initiative. In fact, it already has a bank-wide sustainability mandate — a first of its kind in the local banking scene.

Even before the pandemic, BPI already expanded its Green Financing programs and rebranded it as its Sustainable Development Finance (SDF) program. Included here are the likes of sustainable agriculture, renewable energy and energy-efficiency implementation, climate resilience, etc. These were initiated as per the bank’s commitment to the United Nations Sustainable Development Goals (UN SDGs).

At the end of the day, embracing sustainability in the realms of transportation and housing isn’t just an option but rather, a strategic imperative for the country — offering a pathway leading to a greener and more climate-resilient future.

Nuclear energy push in PHL seen ‘too late’ amid climate crisis

February 12, 2024 | 12:02 am

By Sheldeen Joy Talavera, Reporter

DEVELOPING nuclear energy in the Philippines could be too late due to the climate crisis, an analyst said, suggesting a focus on building renewable energy capacities instead.

“If we’re waiting for 10 years for something to all come together and miraculously work together and agree on that, it’s too late,” Paolo Pagaduan, renewable energy lead at Asian Peoples’ Movement on Debt and Development, said on the sidelines of a forum last week.

“Why wait if we can do it with solar and wind?,” he said.

In a report published by the Intergovernmental Panel on Climate Change of the United Nations (UN) in 2018, it said there is a need to limit global warming from rising more than 1.5 degrees Celsius, which means cutting carbon dioxide emissions by 45% by 2030.

During the 2019 UN meeting about climate and sustainable development, it was said that there were just 11 years left to prevent the “irreversible damage” caused by climate change.

“I was hoping that the plan would be a bit faster because if there’s one thing that’s not being highlighted now is that the reason why we have to do all of these — why we have to shift to renewables [and] why they have to consider nuclear energy — is because of the climate crisis in the first place,” Mr. Pagaduan said.

With a current share of 22%, the government aims to increase the proportion of renewables in the country’s power mix to 35% by 2040 and 50% by 2050.

Under the proposed new energy roadmap, the government aims to introduce nuclear energy, with a targeted capacity of 1,200 megawatts (MW) by 2032, Energy Undersecretary Sharon S. Garin said during the forum.

“It is not an easy task to start a nuclear energy program. That is why it is slow because we have to make sure that everything is safe, secure, has safeguards and compliant with all the international requirements,” she said.

“Because nobody will sell any technology or teach you about any technology if you do not comply with all these requirements of the IAEA (International Atomic Energy Agency),” she added.

The Department of Energy (DoE) is aiming to work with the Phase 2 which is the preparatory work for the contracting and construction of a nuclear power plant after a policy decision has been taken.

Ms. Garin said that the DoE is ramping up the nuclear energy roadmap which is eyed to be published within the month.

“We will still follow these phases, but we believe, and we are confident that we can be faster because we are ready. We have been preparing for Phase 2 in the last two years and even the years before that,” she said.

Froilan J. Savet, first vice-president and head of network at Manila Electric Co., said that nuclear energy will not replace renewables but rather complement it.

“You’ll need a baseload plant with a high-capacity factor and high-energy density. Imagine, a one gram of uranium is equivalent to many tons of coal and 1,800 liters of oil,” Mr. Savet said.

Carlo A. Arcilla, director of the Philippine Nuclear Research Institute, said that “the fastest way to go nuclear” is to rehabilitate the mothballed Bataan Nuclear Power Plant (BNPP).

The 620-MW BNPP will require a jeepney-sized fuel which could last for 18 months, he said, with an estimated cost of $30 million.

“If that were a coal plant running for 18 months, 620 megawatts… [it will require] $800 million,” Mr. Arcilla said.

Secondary market debt yields go up after RTB plan

February 12, 2024 | 12:01 am

By Abigail Marie P. Yraola, Researcher

YIELDS on government securities traded on the secondary market increased last week after the state said it would issue five-year retail Treasury bonds (RTBs), as well as news of easing inflation in January.

Bond yields, which move opposite prices, rose by 2.8 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates data posted on the Philippine Dealing System’s website.

Financial markets were closed on Feb.9 for the Chinese New Year.

Last week, rates were mixed across all tenors, with yields on the 91- and 364- day Treasury bills (T-bills) rising by 1.88 bps and 1.37 bps to 5.4610% and 6.0577%, respectively. Meanwhile, 182-day T-bills fell by 0.31 bp to 5.8095%.

Debt volume traded fell to P11.34 billion on Thursday from P20.91 billion a week earlier.

“Despite a lower-than-expected inflation figure year on year, trading volume in the local bond market remained subdued, reflecting minimal demand from investors given upcoming bond supply risks,” Lodevico M. Ulpo, Jr., vice-president and head of Fixed Income Strategies at ATRAM Trust Corp., said in an e-mail.

A local bond trader said the week might have started with some volatility after surprisingly positive nonfarm payroll figures from the US.

The market appears to have settled down amid easing inflation and after the Bureau of the Treasury (BTr) rejected all bids for its bond auction and announced a plan to sell a five-year retail Treasury bonds, the trader said.

“Additionally, the BTr’s cancellation of the seven-year auction has ensured that bonds in that part of the curve would have some support, with supply in that tenor effectively halted for at least a month,” the trader said in a Viber message.

January inflation eased to 2.8%, slower than 3.9% in December and 8.7% a year earlier, the slowest since October 2020. It was the second straight month that it settled within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target.

Core inflation, which excludes the volatile prices of food and fuel, eased to 3.8% from 4.4% in December, the first time it settled within the target after 17 months.

Last week, despite total demand reaching P53.426 billion, the Treasury rejected tenders for its offer of P30 billion in reissued five-year bonds.

The bonds, which have a remaining term of four years and 11 months, would have been sold at an average of 6.219%, with tendered yields ranging from 6.09% to 6.27%.

The Treasury is planning to sell P30 billion of five-year RTBs due in 2029, which will allow existing holders to exchange their debt due this year for the new debt.

The public offer will be from Feb.13 to 23, with the issue and settlement date set for Feb. 28.

“The BTr’s rejection of the five-year auction was a bit unexpected although this probably only counterbalanced the surprisingly good job data from the US,” the bond trader said.

Mr. Ulpo said market players had taken a defensive approach in response to the recent global rate instability and the announcement of material bond supply during the week.

“Bid-offer spreads in the local bond space widened by 5 to 10 basis points across the curve, signaling cautiousness among investors as they await further developments and guidance due [this] week,” he said.

Mr. Ulpo expects yields to rise as the market adjusts to the retail Treasury bond rate. Trading activity would depend on initial bids and final yield pricing, he added.

“After the auction, we expect a curve repricing, with a flattening yield curve due to anticipated long-term bond issuance cancellations for the RTB period,” he said.

He said investors are likely to remain cautious and wait for further policy direction from central banks.

The unnamed bond trader expects the market to focus on the pricing of the RTBs to determine the shape of the yield curve.

“The demand for the issue will also be of importance although we do expect healthy demand considering the P700 billion of liquidity coming in from the maturities of two RTBs in March,” the trader said.

Bossjob’s new features to connect users with global and remote job markets

February 12, 2024 | 12:01 am

Chat-first career platform Bossjob is making career opportunities even more within reach for talents as it introduces new features to enable them to access jobs from abroad and remote work opportunities easily.

The hiring platform has officially launched a new feature that allows recruiters from around the world to connect with talent across parts of Asia, including the Philippines. Employers can now post their job openings globally on the Bossjob website by selecting the ‘International’ option and targeting specific countries where they seek top talent.

This feature not only facilitates outsourcing and remote team setups but also helps establish employer presence in previously unsupported regions. With the new feature, Bossjob aims to help companies reduce recruitment costs and streamline their cross-border hiring processes.

Moreover, Bossjob particularly sees the importance of making these job opportunities more accessible to Filipinos. “The Philippines Freelance Market 2022 Report” suggested many Filipinos thrive as freelancers, benefitting from overseas freelancing opportunities.

The platform has also launched the remote jobs section, making it easier for talents to scroll around the opportunities that best suit them. Jobseekers can easily go to the “Remote Jobs” section of the Bossjob website and check hundreds of remote job positions across various industries, including information technology, customer service, human resources, sales, finance, manufacturing, banking, and healthcare.

Bossjob CEO Anthony Garcia says the company hopes to bring opportunities not only closer but more accessible to more Filipinos.

“With our new international feature and dedicated remote jobs section, we’re not just expanding horizons, but we’re actively dismantling barriers to global employment and fostering a more inclusive, accessible job market. At Bossjob, we believe that a great career should be accessible to everyone, everywhere, and our latest features are a significant step towards making that belief a reality,” Mr. Garcia said.

With a growing presence in Asia, including the Philippines, Singapore, Japan, Indonesia, and Hong Kong, Bossjob aims to reach over 30 million users in SEA by 2026. As part of its efforts to expand its global market, it has started offering free services this year.

More jobseekers preferring remote work

Starting in third quarter of 2023, Bossjob began supporting hybrid and remote job opportunities, leading to a significant increase in such listings. The number of jobs posted in these categories has since doubled, underscoring a growing trend in the employment market.

Key industries embracing this trend include information technology (IT), sales, and emerging web3 sectors. Remote roles in high demand range from sales representatives and accountants to administrative assistants and business development managers.

The introduction of these flexible work options has led to a substantial increase in jobseeker interest. Bossjob reports a sevenfold rise in the number of candidates seeking remote or hybrid work arrangements, with about 32% of its over 3 million active jobseekers exploring these options.

The preference for remote work extends across various job categories, with customer service representatives (CSR), entry-level jobs, and IT roles being particularly sought after.

In addition to increased demand, Bossjob’s data shows salaries for hybrid work arrangements are equally attractive to those opportunities that require people to work on-site. For instance, remote CSR roles offer an average salary of P29,000, compared to the P27,000 average pay for on-site positions.

Bossjob’s expansion to supporting remote and hybrid work opportunities reflects a broader global trend and demonstrates the platform’s commitment to evolving with the changing job market dynamics.

“In a rapidly evolving job market, Bossjob is at the forefront of the shift towards a project-based economy in the Philippines. Our data shows not just a trend but a reflection of a deeper change in work preferences. As we continue to champion this shift, Bossjob remains committed to connecting talent with forward-thinking employers, reshaping the workforce for a more dynamic and adaptable future,” Mr. Garcia said.

Gifts for Valentine’s Day

February 12, 2024 | 12:01 am

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WHETHER for gifting or for stepping out on the town together, we’ve got a few suggestions for things you can pick up for Valentine’s Day.

Marks & Spencer

Who says you have to go out on Valentine’s Day? Marks & Spencer (M&S) just dropped the ultimate stay-at-home package. Live a dream in the Dream Satin pajama sets adorned with pink and red love hearts. Dream Satin combines Cool Comfort technology for a fresh and dry feel with a Cling Resist finish to prevent static. While wearing those, pop open a wine bottle from M&S and pair it with their Swiss and Belgian chocolates. In the Philippines, Marks & Spencer has 20 stores around the country.

COS

COS introduces a stackable Valentine’s jewelry collection inspired by the tactile relationship between an object and the wearer. The capsule collection features versatile unisex styles including eclectic rings, earrings, bracelets, and charms, combining semi-precious stones and recycled materials. Each piece is crafted in recycled brass and plated in silver or gold. Embellished with cut glass and semi-precious stones, an emphasis on surface texture and intricate detailing creates a bold yet relaxed look. The stones include clear quartz (for clarity and healing), smoky quartz (to ground and protect), blue eye tiger (to calm), and pink jade (to purify). Statement rings are complemented by several understated styles in organic silhouettes and sculpted irregular shapes. The Valentine’s jewelry capsule can be found at the COS Store at SM Aura Premier.

Montblanc

THE MEISTERSTÜCK Document Case is an ideal gift for those looking to make their mark in the world. Named after Montblanc’s iconic writing instrument, the piece draws inspiration from the fountain pen’s distinctive features. The stitching, zip pullers, and handles are thoughtfully designed to echo the nib’s recognizable shape. It comes in a timeless ink blue shade or a warm burgundy shade featuring a hand-applied sfumato effect. Other ready-to-gift leather items include the Soft Pochette, which can be carried by a wrist handle or under the arm for versatile styling. For the adventurers with style, the Montblanc 1858 Iced Sea Automatic Grey watch features a grey glacier pattern dial inspired by the Mer de Glace, which has been crafted with a special technique called gratté-boisé to evoke the depths of the glacier. Montblanc’s first diving watch, the timepiece conforms to the ISO 6425 norm for diving and comes with a water resistance of up to approx. 300 meters (approx. 30 bar). For those with a penchant for blending luxury with technology, the Montblanc Summit 3 Smartwatch features multiple health monitoring sensors for an enhanced fitness experience, various apps, and customizable watch faces. Other heartfelt gifts include the reversible Montblanc Horseshoe Leather Belt in black and brown which can be embossed for a personal touch, the stainless steel Montblanc Meisterstück Around the World in 80 Days Ace of Club & Ace of Diamond Cufflinks, and the Meisterstück Around the World in 80 Days Ace of Club Bracelet in woven leather. Ladies aren’t left behind in Montblanc either: the Soft Mini Bag can be worn hands-free with the shoulder strap or attached to belt loops. For those who want a slightly bigger yet effortless day-to-day bag, the Meisterstück Messenger offers a contemporary take on a classic shape in a burgundy color, adorned with a hand-applied sfumato effect. She might also like the Montblanc Bohème Day & Night 30mm watch, which features mother-of-pearl clouds and a day and night disc that indicates the day utilizing different gradients of blue sky and rays of light. The watch is completed with rose gold-coated floral and diamond indexes, a sapphire case back, and interchangeable leather straps. The Montblanc Meisterstück Around the World in 80 Days Doué Classique Fountain Pen is the ideal gift for those who cherish literature and the art of writing. Featuring a gold-coated metal cap, degraded anthracite lacquered barrel, and a handcrafted 18K gold nib, the writing instrument depicts details from the main character’s travels. Montblanc is available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, Greenbelt 5, and Solaire Resort Entertainment City.

Hydra Skin Clinic

THE SKIN clinic in SM Aura is offering several packages to pamper both you and your lover, with deductible reservation fees if booked from Feb. 9 to 15. The Sweet Indulgence Package includes the Cleopatra Bath and a 45-minute Swedish massage, and a glass of champagne, for a P2,000 non-refundable fee (a deductible from the total bill). The Sweetheart Lips promo comes with lip fillers and a complimentary Perk Lip Gydrafacial for a P1,000 non-refundable fee. The Intimate Glow promo offers Gyne Whitening and Tightening, plus a Gyne facial, with a non-refundable P1,000 reservation fee for bookings until Feb. 29. The Perfect Together Promo (these are all for slots until Feb. 29), offers a reflexology and foot spa treatment (with a P500 reservation fee), while the Me and You promo offers a 20% discount on any facial treatment for a companion (if you get a facial treatment yourself; available for a P500 reservation fee). The Hydra Skin Clinic is in SM Aura, Taguig City.