Higher tax on SSBs to offset inflation, fund “First 1000 Days Grant” – AER

August 16, 2024 | 11:05 am

soft-drink-4280835_1280 — STOCK PHOTO | Image by Ernesto Rodriguez from Pixabay

The government should consider a higher tax on sugar-sweetened beverages (SSBs) to offset the impact of inflation on the fixed tax rate, and to fund the “First 1000 Days Grant,” which supports the nutritional needs of Pantawid Pamilyang Pilipino Program (4Ps) members, including lactating mothers and children under age of two, according to one of the co-founders of Action for Economic Reforms (AER).

“The inflation rate has been quite high in the past few years but the tax rate for the sweetened beverage tax is fixed, P6 per volume a liter. So, the real value of the six pesos since the imposition of the tax has gone down,” Filomeno S. Sta. Ana III, coordinator of AER said in an interview during the 2nd day of the Department of Health (DOH) media conference in Baguio City on Wednesday.

The bill of Party-list Representative Reyes on increasing sweetened beverage tax can ensure the effectiveness of tax rates and increase revenue, according to Mr. Sta. Ana.

“So, a rate of higher than P9, perhaps even P12 will be good, a tax structure that will include the feature that will automatically index the tax to inflation is also most welcome, that’s very similar to the design of the tax on tobacco and alcohol,” he said.

“We need new revenues in light of the narrow fiscal space we have, in light of the need to finance nutrition.”

The revenue from a higher SSB tax could be the ideal funding source for the “First 1000 Days Grant” model, Mr. Sta. Ana said, which requires a budget of P2.6 billion to P2.7 billion as it rolls out in 2025, according to the Department of Social Welfare and Development (DSWD).

“Where do we get the resources (funds), and it is most sensible that such new resources be obtained from a tax like the sweetened beverage tax, (as it) is related somehow to the issue of nutrition,” Mr. Sta. Ana said.

He also emphasized that the government should not hesitate to impose pro-health taxes, such as an increased tax on sugar-sweetened beverages (SSBs), as these have been proven to reduce obesity concerns and generate revenue for health initiatives and economic growth.

“Let’s do it, let’s push for the sweetened beverage tax, let’s push for good taxes… not all tax will be harmful to the economy at this time, increasing revenues at this time will be contributing to GDP growth, will be contributing to expansions of investment and growth,” Mr. Sta. Ana said. – Edg Adrian A. Eva

Chinabank marks 104 years of dedication to consumers

August 16, 2024 | 11:00 am

China Banking Corp., more known to many as Chinabank or CBC, celebrates its 104th anniversary this year by reiterating its commitment to stand by its customers “through every endeavor, challenge, and trimuph.”

Now the country’s 4th largest private universal bank, CBC stays true to its core values and heritage while modernizing its image with a new brand and its first brand ambassador.

Learn more about CBC’s recent strides, as well as its tailored products and services, in their recent publication on The Philippine STAR. Click the images below to view the pages.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Philippine central bank sees room for one more rate cut this year

August 16, 2024 | 10:54 am

MANILA – The Philippine central bank sees room for one more interest rate cut this year, its governor said on Friday.

“We will always be assessing the situation, but given our current assessment, I think we have room for one more cut this year,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said in an interview with CNBC.

Mr. Remolona also said the monetary authority does not worry too much about the peso’s depreciation.

The peso slipped against the dollar on Thursday after the central bank cut its benchmark borrowing rate by 25 basis points to 6.25%, its first rate cut since November 2020. The peso further slipped to 57.15 pesos against the dollar when markets opened on Friday.

Prior to the rate cut on Thursday, BSP had held its policy settings steady for six straight meetings since November. Previously, it had raised rates by a total 450 basis points between May 2022 and October 2023 to rein in inflation.

Thursday’s rate cut followed data last week showing the economy grew 6.3% in the second quarter from a year earlier, boosted by government spending and investments growth. – Reuters

BSP cuts rate for 1^st time since 2020

August 16, 2024 | 12:33 am

Divisoria-shoppers-wc — The Bangko Sentral ng Pilipinas (BSP) cut interest rates by 25 basis points, after second-quarter economic data showed a slowdown in private consumption. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday cut policy rates for the first time in nearly four years amid an improving inflation outlook.

The Monetary Board on Thursday reduced the target reverse repurchase (RRP) rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.5%. This was in line with the expectations of nine out of 16 analysts surveyed in a BusinessWorld poll last week.

Rates on the overnight deposit and lending facilities were also lowered to 5.75% and 6.75%, respectively.

This was the first time that the BSP reduced rates in close to four years or since November 2020, when it last delivered a 25-bp cut amid the coronavirus disease 2019 (COVID-19) pandemic.

“With inflation on a target-consistent path, the current macroeconomic outlook supports a calibrated shift to a less restrictive monetary policy stance,” BSP Governor Eli M. Remolona, Jr. said at a briefing.

He said the BSP remains “mindful of lingering upside risks to prices.”

“The balance of risks to the inflation outlook continues to lean toward the downside for 2024 and 2025 with a modest tilt to the upside for 2026,” Mr. Remolona said.

The BSP adjusted its baseline forecasts to 3.4% for 2024 (from 3.3% previously), 3.1% for 2025 (from 3.2% previously), and 3.2% for 2026 (from 3.3% previously).

It also revised its risk-adjusted inflation forecasts for 2024 to 3.3% (from 3.1% previously), and 2.9% for 2025 (from 3.1%). The risk-adjusted forecast for 2026 was set at 3.3%.

Despite inflation accelerating to 4.4% in July, Mr. Remolona said inflation is expected to trend downward to within the government’s 2-4% target range.

“The downside risks are linked mainly to lower import tariffs on rice, while upside risks could come from higher electricity rates and external factors,” he added.

In June, President Ferdinand R. Marcos, Jr. ordered that tariff on rice imports be lowered to 15% until 2028 from 35% previously.

Rice inflation, which accounts for nearly half of overall inflation, eased to 20.9% in July from 22.5% a month prior. This marks the fourth straight month of slower rice inflation.

Mr. Remolona also noted the impact of the latest economic growth figures on the decision to begin easing rates. The economy expanded by 6.3% in the second quarter, faster than 5.8% in the previous quarter and 4.3% a year ago.

“We’re somewhat more confident in the inflation numbers coming down than in the gross domestic product (GDP) numbers going up,” he said.

“Consumption was relatively weak. So, it doesn’t look like something that could easily be sustained. And so we went for a cut, partly because of that.”

Household consumption, which accounts for about three-fourths of the economy, slowed to 4.6% in the second quarter from 5.5% a year ago.

“Despite tight financial conditions, second-quarter GDP growth has been solid, and the unemployment rate has declined. Public investment alongside easing price pressures and robust employment conditions are expected to support economic activity,” Mr. Remolona added.

OUTLOOK
Meanwhile, the BSP chief signaled another 25-bp cut for the remainder of the year.

“My views have been consistent with a 25-bp cut today and another 25 bps sometime during the year, either in October or December. And we’ll see what happens in 2025,” Mr. Remolona said.

“By the way, the most relevant policy horizon for us is actually 2025 when looking at inflation, because there are long lags in the transmission mechanism of monetary policy. The decision we made today (Thursday) will mainly affect 2025,” he added.

The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

Mr. Remolona said he also expects the US Federal Reserve to begin cutting rates next month.

“Possibly, 50 bps in September and then 100 bps until the end of 2024. And then maybe another 125 bps in 2025,” he said.

Mr. Remolona noted the impact of the interest rate differential once the Fed begins cutting rates.

“That would mean a wider differential. You know, the (US) policy rate is below our policy rate. But if they cut by more than we do, then the differential will be even wider. That may exert pressure on the peso a little bit. But given that the peso has been appreciating already, it’s not a big deal.”

Mild US inflation readings this week have cemented hopes that the Federal Reserve will lower borrowing costs in September for the first time in four and a half years, Reuters reported.

Mr. Remolona said the central bank is trying to avoid any off-cycle moves. “Off-cycle decisions are either you think you fell behind the curve or you think you’re facing a hard landing. Otherwise, we avoid off-cycle decisions.”

BIGGER CUTS?
Meanwhile, Gareth Leather, senior Asia economist at Capital Economics, said he expects 25-bp cuts each at the Monetary Board’s last two meetings for the year.

“With inflation set to drop back further and growth likely to struggle, we expect another 50 bps of cuts before the end of the year,” he said in a note.

Easing price pressures will help reinforce the BSP’s decision to reduce rates further, Mr. Leather said.

“We expect inflation to drop back to target in August on the back of beneficial base effects and remain low throughout the rest of the year. If we are right, this should give the central bank the confidence it needs to loosen policy further over the coming months,” he said.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said that with the Fed expected to also begin its easing cycle, this may give the BSP room to deliver bigger rate cuts.

“We now see the Board cutting by a further 25 bps each in October and December, though the chances of much larger 50-bp moves, particularly in December, likely will rise if we’re right about the Fed pursuing more aggressive easing in the fourth quarter,” he said in a note.

The BSP can also continue cutting rates through next year, he added.

“All told, the BSP will have much more room for more rate cuts next year; our inflation forecasts see the annual average dropping further to 2.5% in 2025 from an estimated 3.5% this year, down from 6% in 2023,” Mr. Chanco said.

“The urgency and onus on the BSP to start providing the economy with some support is clear, especially with fiscal policy still constrained by the lagging consolidation efforts from the pandemic-era budget blowout.”

Approved foreign investments surge in Q2

August 16, 2024 | 12:32 am

PHL Flag — A Philippine flag is seen along Aguinaldo Highway in Imus City, May 28, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Lourdes O. Pilar, Researcher

APPROVED foreign investment pledges surged in the second quarter, driven by improved investor confidence, preliminary data from the Philippine Statistics Authority (PSA) showed on Thursday.

Foreign investment commitments jumped by 220.7% year on year to P189.5 billion in the April-to-June period, a turnaround from the revised 64% contraction in the first quarter.

It was the fastest year-on-year increase since the 4,445.6% surge seen in the first quarter of 2023.

The amount of foreign investment pledges in the second quarter was the biggest since the P394.46 billion approved in the fourth quarter of 2023.

“The quarter-on-quarter expansion of the Philippine economy was apparently taken as indication of market growth, at least in the short and medium term, prompting an increase in investment pledges and approved investments,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail interview.

The Philippine economy grew by 6.3% year on year in the second quarter, faster than the revised 5.8% in the first quarter and 4.3% in the April-to-June period in 2023.

In the second quarter, Switzerland was the top source of foreign investment pledges with P172.04 billion. This accounted for 90.8% of the total.

The PSA compiles the investment pledges from the government’s six investment promotion agencies: Board of Investments (BoI), BoI-Bangsamoro Autonomous Region in Muslim Mindanao (BoI-BARMM), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), and Zamboanga City Special Economic Zone Authority (ZCSEZA).

The BoI approved P175.08 billion in foreign investment pledges, accounting for 92.4% of this quarter’s total.

PEZA came in second with P14.03 billion in foreign investment pledges which accounted for 7.4% of the total. This was followed by SBMA with P124.09 million, BoI-BARMM with P110.06 million, CDC with P107.81 million and ZCSEZA with P49.65 million.

Negros Island Region cornered nearly half (45.6%) of the foreign investment commitments with P86.46 billion. This was followed by Calabarzon and Central Visayas with P6.93 billion and P4.35 billion, respectively.

Meanwhile, investment pledges from Filipino nationals rose annually by 103.6% to P525.51 billion in the second quarter. It accounted for 73.5% of the combined pledges worth P715.01 billion.

Foreign and local investments pledged during the second quarter are expected to generate 26,915 jobs once the projects are realized.

Electricity, gas, steam, and air-conditioning supply industry received the largest amount of approved commitments at P172.74 billion or 91.2% of the total. This was followed by manufacturing with P12.39 billion and administrative and support service activities with P2.84 billion.

“Pledges are pledges. Until we see the approved and actual investment happening, we will have to wait-and-see. This is not to rain on the parade of the great investment pledges performance so far, particularly this [second quarter]. But reality has to set in and approved and actual investments are still the best thing,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in an e-mail interview.

Mr. Asuncion said the higher investment pledges are a direct result of President Ferdinand R. Marcos, Jr.’s foreign trips, where he promoted the country as an investment destination.

“Hopefully, this bump in investment pledges will be sustained,” he said.

Mr. Terosa said the weaker peso in the second quarter made investments in certain sectors in the Philippines more attractive.

For the rest of the year, he said a possible recession in some developed countries, the continued weakness of China’s economy and geopolitical tensions may affect investment flows in developing countries like the Philippines.

“I expect investments to be restrained by these conditions in the second half of the year,” Mr. Terosa said.

Foreign investment pledges, which may materialize in the future, differ from the actual foreign direct investments data tracked by the Bangko Sentral ng Pilipinas (BSP). Aside from the projects, the BSP’s monitoring includes other items such as reinvested earnings and lending to Philippine units via their debt instruments.

Filipino households’ average annual income up 15% in 2023

August 16, 2024 | 12:31 am

Luneta Park-crowd-wc — The average annual income of Filipino families rose by 15% to P353,230 in 2023 from P307,190 in 2021, data from the statistics agency showed. — PHILIPPINE STAR /WALTER BOLLOZOS

THE AVERAGE annual income of Filipino families increased by 15% in 2023, as wages and quality of jobs improved, the Philippine Statistics Authority (PSA) said.

Preliminary data from the PSA showed that the average annual income of Filipino households rose to P353,230 in 2023 from P307,190 in 2021.

In 2023, the average annual spending of Filipino families went up by 12.8% to P258,050 from P228,800 in 2021.

The increase in income was attributed to the uptick in wages, salaries and entrepreneurial activities for the period, Undersecretary and National Statistician Claire Dennis S. Mapa told a news briefing.

By region, the National Capital Region (NCR) had the highest average annual family income in 2023 at P513,520, up by 22.9% from P417,850 in 2021.

Calabarzon followed in second place with P426,530 in 2023, up by 18.1% from P361,030 in 2021. This was followed by Central Luzon at P375,240 in 2023, 14.2% higher than P328,540 in 2021.

On the other hand, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posted the lowest average annual family income at P206,880 in 2023, followed by Zamboanga Peninsula at P257,140 and Negros Island Region at P266,290.

In terms of expenditure, NCR also had the biggest annual average family spending at P385,050 in 2023, followed by Calabarzon at P310,320 and Central Luzon at P298,700.

BARMM also had the smallest average family expenditure at P168,910, followed by Mimaropa Region at P189,770 and Eastern Visayas at P199,910.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan told BusinessWorld that the government is looking to improve the quality of jobs to increase Filipinos’ household incomes in the next few years,

“Quality of employment is the foremost priority of this administration because… we have historically low unemployment rate already. You can’t do any better than that now you know because that’s the kind of rate that you see in very mature economies,” he said.

In 2023, the jobless rate fell to a record low 4.3%. The underemployment rate — or the proportion of employed Filipinos looking for more work or longer working hours — declined to 12.3% in 2023 from 14.2% in 2022.

“The three-legged sources of economic growth, such as BPOs (business process outsourcing), OFW remittances, and tourism should be supplemented by growth in the manufacturing sector,” Union Bank of the Philippines, Inc., Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Mr. Asuncion also said the government must build the necessary digital infrastructure to help bolster growth.

PSA data also showed the Gini coefficient, which measures income inequality, slipped to 0.3909 in 2023 from 0.4063 in 2021, PSA data showed. A Gini coefficient reading of “0” would mean perfect equality, while “1” suggests perfect inequality.

POVERTY
Data from the PSA also showed the poverty rate dropped to 15.5% in 2023 from 18.1% in 2021 amid elevated inflation.

The number of poor Filipinos declined by 12.26% to 17.54 million in 2023 from 19.99 million in 2021.

“It’s good that the income increases faster than the food inflation. But, if food inflation will be lower, of course, the reduction in poverty could be much, much bigger,” Mr. Mapa said.

Inflation averaged 6% for 2023, the highest in 14 years. It also marked the second straight year that inflation breached the BSP’s 2-4% target band.

The PSA said a family with five members needed to have at least P13,873 a month to meet their minimum basic food and nonfood needs in 2023.

Among the regions, nine had poverty thresholds higher than the national average, led by Central Luzon with P16,046, followed by NCR with P15,713, and Calabarzon with P15,457.

On the other hand, the Soccsksargen Region posted the lowest poverty threshold with P12,241.

By region, the NCR recorded the lowest poverty incidence among the population at 1.8%, while the BARMM had the highest rate at 32.4%.

Meanwhile, the national poverty incidence among families with five members improved to 10.9% in 2023 from 13.2% in 2021. This is equivalent to 2.99 million Filipino families that do not have enough income to meet their basic food and nonfood needs.

Among the regions, NCR had the lowest poverty incidence at 1.1%, while the Zamboanga Peninsula had the highest at 24.2%.

The Caraga Administrative Region showed the biggest improvement as its poverty incidence declined by 11 percentage points to 14.9% in 2023 from 25.9% in 2021.

FOOD THRESHOLD
According to the PSA, the food threshold for a family of five rose by 14.7% to P9,581 in 2023 from P8,353 in 2021, mainly due to high food inflation. This would mean the food threshold per person in a day is at P64.

Food threshold refers the minimum income an individual or a family needs to meet their basic food needs, “which satisfies the nutritional requirements for economically necessary and socially desirable physical activities.”

Mr. Mapa said the food threshold is based on a sample food bundle with three meals and snacks.

Based on the national food bundle, breakfast is composed of scrambled egg, coffee and boiled rice or rice-corn mix, while lunch is boiled monggo with malunggay and dried dilis, banana and boiled rice. Dinner is composed of fried fish or boiled pork, vegetables and boiled rice, while snacks include bread and boiled root crops.

“This is really basic,” Mr. Mapa said. “Most probably, a lot of people will not be happy about it. But that’s how the bundle was arrived at. And of course, there’s science to it.”

Mr. Mapa said the PSA is reviewing the methodology used for the food poverty threshold.

“There is a review process that we’re doing and as I said we have already initiated to the technical staff ng PSA to review our methodology, the menu,” Mr. Mapa said in mixed English and Filipino. — BMDC

A historic Olympic journey for the Philippines’ golden generation of athletes

August 16, 2024 | 12:10 am

ONLINE_OLYMPICS main photo — From left: Aira Villegas, Carlos Edriel Yulo and Nesthy Petecio — Photos from Philippine Sports Commission Facebook page | Medal photos from olympics.com

Rooted in the ancient games held in Olympia, Greece, the modern Olympic Games are the world’s foremost competition with 206 teams representing sovereign states and territories from around the globe vying for the coveted gold medal in any sport. Only the best of the best athletes get to compete in the international sporting games, which is why winners of any of the 329 medal events become a great source of pride, honor, and excellence for their home country.

Prior to the recently-held Olympic Games in Paris, France, the Philippines has won a total of one gold medal, five silvers, and eight bronze medals since its debut in the 1924 Paris Olympics. The previous Olympic Games in Tokyo, Japan last 2022 witnessed Hidilyn F. Diaz securing hers and the country’s lone gold medal in the women’s 55-kilogram (kg) category in weightlifting.

This year’s edition of the Olympics saw the Philippines send 22 total athletes across nine different disciplines including rowing, boxing, weightlifting, gymnastics, athletics, fencing, golf, swimming, and judo, with Tokyo 2020 silver medalists Nesthy A. Petecio and Carlo Paalam as flag bearers.

Aiming to match — or even surpass — the country’s performance in the prior games, this year’s team won two golds and two bronze medals and has landed 37^th in the Olympic medal chart. With this historic Olympic run, the Philippines earned its highest Olympic ranking since the 1964 Tokyo Games, where the country finished 30^th with a single silver medal.

After a somewhat disappointing performance in the 2020 Games, Filipino gymnast Carlos P. Yulo bounced back in spectacular fashion reaching the finals of three artistic gymnastic events namely: the individual all-around, floor exercise, and vault competitions.

To start his campaign for a gold medal, Mr. Yulo stumbled as he dismounted during the pommel horse portion of the individual all-around final and scored a measly 11.900. Making up for the disheartening first rotation, the Filipino gymnast followed up with a score of 13.933 in the rings, a solid 14.766 in the vault, 14.500 in the parallel bars, 13.600 in the horizontal bar, and a 14.333 in the floor exercise. Overall, Mr. Yulo overcame a slow start and finished in 12^th place.

For his second finals event, the Filipino gymnast had to face Tokyo gold medalist Artem Dolgopyat of Israel and qualification stage first-placer Jake Jarman of Great Britain in the men’s floor exercise.

In a historic moment that secured the country’s second Olympic gold medal ever, Mr. Yulo stuck his three-and-a-half twist dismount, capped by his signature double fist pump towards the judges and a salute to fans in Paris. His performance gave him a score of 15.000, narrowly beating out Mr. Dolgopyat (14.966) and Mr. Jarman (14.933) who won silver and bronze, respectively.

Going for back-to-back gold medals, the Filipino gymnast headed to the vault competition brimming with confidence, as seen in his performance at the event. For his first vault, Mr. Yulo attempted and landed one of only two 6.0-difficulty valued vaults in the competition. His piked Dragulescu, two front flips with a half twist at the end of the move in a pike position, earned him a score of 15.433.

Mr. Yulo then executed a triple twist for his second vault with enough precision to give him a score of 14.800. This brought his total score to 15.116 to give him the lead in the event, which he never relinquished en route to his second gold medal in less than 24 hours and the country’s third all-time.

Meanwhile, in the boxing ring, the Philippines’ biggest boxing delegation since the 1996 Atlanta Games was out in a quest to finally capture the country’s first boxing gold medal. Alongside Ms. Petecio and Mr. Paalam were Tokyo 2020 bronze medalist Eumir DS. Marcial and two debutants, Hergy Bacyadan and Aira Villegas.

Hoping to improve upon his performance from the prior games, Mr. Marcial suffered a devastating defeat in points at the hands of Uzbekistan’s Turabek Khabibullaev in the round of 16 of the men’s 80 kg division.

Meanwhile, Mr. Paalam bid farewell to his Olympic gold medal dreams after losing in the quarterfinals to Australia’s Charlie Senior via split decision in the men’s 57 kg division. Additionally, Ms. Bacyadan failed to pull off the upset against Li Qian of China in a unanimous decision loss in the round of 16 of the women’s 75 kg.

However, not all was lost for the boxing team, as Ms. Villegas and Ms. Petecio each won their round of 16 and quarterfinal matches to advance to the semifinals of their respective divisions.

During her semifinal match at the women’s 50 kg division, Ms. Villegas settled for bronze after a spirited fight against the more experienced Buse Naz Cakiroglu of Turkiye who dominated in the ring and the scorecards winning via unanimous decision with three judges scoring the match 30-27 while the remaining two with 30-26.

In another heart-stopping match, Ms. Petecio fell short against Poland’s Julia Szeremeta, losing via a split decision in their women’s 57 kg boxing semifinal bout. Despite the upset defeat, her valiant effort earned her a well-deserved bronze medal as she became one of only four Filipinos with at least two medals in the quadrennial games.

Ernest John Obiena — Philippine Sports Commission Facebook Page

Aside from these three medalists, several Filipino athletes also came agonizingly close to securing podium finishes. World No. 2 pole vaulter Ernest John U. Obiena faulted on his third attempt to clear 5.95 meters as he lost the bronze to Greece’s Emmanouil Karalis.

Additionally, Filipino golfers Bianca Pagdanganan and Dottie Ardina showed out in their competition. Ms. Pagdanganan, in particular, ranked third after finishing the final round six-under 282 with only a few golfers remaining. This moment, however, will be short-lived as China’s Xiyu Lin birdied in her final hole to close with seven-under 281 and snatch the bronze medal. Meanwhile, Ms. Ardina carded a three-under 285 to respectably place 13^th in her Olympic debut.

With heavy expectations after Ms. Diaz’s triumph in the prior games, Filipina weightlifter Eireen Q. Ando placed sixth in the women’s weightlifting 59-kg division after lifting a total of 230 kgs, just five shy of a medal finish. Fellow weightlifters Vanessa Sarno and John Ceniza bowed out early after failing to lift in the snatch portion of the women’s 71 kg and men’s 61 kg weightlifting event, respectively.

Other Filipino athletes who also competed in this year’s Olympics include: Lauren Hoffman and John Cabang Tolentino in athletics; Aleah Finnegan, Emma Malabuyo, and Levi Jung-Ruivvar in women’s artistic gymnastics; Kayla Sanchez and Jarod Hatch in swimming; Joannie Delgaco in rowing; Samantha Catantan in fencing; and Kiyomi Watanabe in judo.

As the 2024 Paris Olympics concludes and the world sets its sights for the 2028 Los Angeles Olympics in the United States, the Philippines can take immense pride in its golden generation of athletes who, for two consecutive Olympics, have showcased to the world what Filipinos can do. With two golds and two bronze medals, this year’s Olympic journey, in a precise twist of fate, has been nothing short of historic. — Jomarc Angelo M. Corpuz

PSE says up to P48.36-B fundraising set for rest of 2024

August 16, 2024 | 12:09 am

THE local bourse could see up to P48.36 billion in fundraising activities for the remainder of the year, which could help boost market activity, according to the top official of the Philippine Stock Exchange (PSE).

“In terms of listing, our fund-raising pipeline at this time includes five follow-on offerings (FOOs), one stock rights offering (SRO), and one initial public offering (IPO), which will generate up to P48.36 billion in capital,” PSE President and Chief Executive Officer Ramon S. Monzon said in an e-mailed statement on Thursday.

According to the PSE, three of the five FOOs are expected to proceed in September, while the IPO, SRO, and the remaining two FOOs are tentatively scheduled for the fourth quarter.

“We hope to see more active trading for the rest of the year on expectations of a rate cut and the record first-half earnings of banks and other listed firms,” Mr. Monzon said.

As of now, the PSE has completed three IPOs, reaching halfway to its target of six IPOs for the year. The completed IPOs include OceanaGold Philippines, Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.

For the second quarter, the PSE saw a 28% decline in its attributable net income to P155.74 million from P215.06 million last year.

Second-quarter revenue surged by 3.2% to P369.4 million compared with P357.8 million in 2023.

For the first half, the PSE saw a 4.8% drop in its attributable net income to P398.53 million from P418.7 million in 2023.

Revenue fell by 2.3% to P722.75 million due to a 10.7% drop in average trading value during the semester, which reduced income from service fees by P6.2 million and transaction fees by P9.07 million.

Listing-related revenues grew by 0.2% as listing fees surged by 0.2% to P290.98 million. Other income rose by 20% to P161.98 million due to interest income and foreign exchange translation gains.

Total expenses increased by 9.4% to P416.13 million from P380.5 million.

During the first half, the PSE saw two IPOs, three FOOs, one SRO, and three private placements.

“Persistent high interest rates and geopolitical concerns contributed to tepid trading in the first half,” Mr. Monzon said.

“PSE continues to pursue projects that will sustain the company’s growth over the years. This includes the planned acquisition of the Philippine Dealing System Holdings Corp., which we target to complete in the next few months,” he added.

On Thursday, PSE shares rose by 2.27% or P4 to P180 apiece. — Revin Mikhael D. Ochave

Supporting the making of champions

August 16, 2024 | 12:08 am

PHL-delegates-at-Malacanang-OL — Photo from pco.gov.ph

Considering the prestige and symbolic significance of the Olympics as a global sporting event, it is no wonder that every country representative is celebrated as national heroes.

President Ferdinand R. Marcos, Jr. himself, in recognition of the role the athletes play towards nation-building, moved to give the Philippine Sports Commission (PSC) additional funding to support the preparation and participation of Filipino athletes in the 2024 Paris Olympics.

Last June, President Marcos led the send-off ceremony for the nine out of 15 Filipino athletes representing the Philippines in the Paris Olympics.

“To our athletes: You carry our hopes and dreams to Paris, you also carry with you the banner of our nation that believes in you, stands proudly beside you, and celebrates your every triumph, and is with you through any obstacle,” he said.

“All of these demonstrate this commitment that we have to the advancement of Filipino athletes by equipping them with the tools and encouragement to realize their full potential,” he added.

The additional support is on top of the administration’s ongoing investments on sports development, such as a grant of P52 million for the preparation, training, and participation of Filipino athletes in the Paris Games. According to reports, this year alone, the government has invested P1.156 billion in sports through the PSC to fund the “advancement of Filipino athletes by equipping them with the tools and encouragement to realize their full potential.”

“We continue to rehabilitate our major sports facilities, such as the Rizal Memorial Sports Complex [and] the PhilSports Complex, to give our youth a fitting stage to improve and to showcase their talents,” said President Marcos.

“And, presently, we are finishing the National Academy of Sports System in Tarlac and the Philippine Sports Training Center in Bataan to train, to hone, and to develop present and aspiring athletes for future competitions,” he stated.

Naturally, there are also bountiful rewards for those who come home victorious. Alongside the personal prestige of their achievements, the inspiration they bring to countless of their countrymen, and the honor they bring the country on the global stage, winning athletes receive substantial incentives from both the government and private sector, equivalent to the significance of their success.

A prime example is weightlifting icon Hidilyn Diaz, who won the Philippines’ first-ever Olympic gold at the Tokyo Games in 2021. Her victory earned her over P50 million in cash incentives, along with additional rewards such as houses, condominiums, and lifetime free flights from the country’s airlines. Leading business tycoons like Ramon Ang of San Miguel and Dennis Uy, as well as various public officials, have contributed millions to her reward package.

The trend continues as Filipino athletes prepared for the Paris Olympic Games. Gymnast Carlos Yulo, who secured the country’s first double gold medals, and bronze-winning boxers Aira Villegas and Nesthy Petecio, have already been promised significant rewards.

Under Republic Act 10699, which outlines the benefits for national athletes and coaches, Mr. Yulo is entitled to P20 million for his double-gold feat, while silver and bronze medalists receive P5 million and P2 million, respectively.

Mr. Marcos further announced during a Heroes’ Welcome at the Malacañan Palace that Mr. Yulo would receive an additional P20 million, with P2 million each for Misses Villegas and Petecio, and P1 million for each Filipino Olympian in Paris. The athletes’ coaches will also be awarded P500,000.

The House of Representatives has also pledged its support, promising Mr. Yulo P6 million for his Olympic win, along with an additional P8.010 million from contributions by House members. The bronze medalists received P4 million each, including contributions and prior rewards. Other Filipino Olympians were granted P1 million each.

Local governments and private companies have also joined in. The City of Manila will reward Mr. Yulo, a Malate native, with P2 million; while EJ Obiena, born and raised in Tondo and finishing fourth in pole vault in Paris 2024, will receive P500,000. The Philippine Olympic Committee is offering houses and lots to gold medalists; while Megaworld is gifting Yulo a fully furnished three-bedroom unit in McKinley Hill, valued at P32 million, along with a P3-million cash prize.

Further incentives for Mr. Yulo include P5 million from ArenaPlus, a house and lot in Nasugbu, Batangas worth P6 million from Century Properties Group, and P3 million from Bounty Fresh Group Holdings Inc. Philippine Airlines has awarded him 150,000 Mabuhay Miles per year for life, while Cebu Pacific is offering each Filipino Olympian 28 local and international flights for free.

Other notable rewards include a Toyota Land Cruiser Prado from Toyota Motors Philippines, lifetime free buffets from Vikings, lifetime free food and drinks from Tipsy Pig, and a range of other benefits from various companies, such as free furniture, engineering design services, and even free gastrointestinal consultations. Mr. Yulo will also receive a digital steel security vault from Honeywell Safes Philippines and Tupperware products worth P1 million. — Bjorn Biel M. Beltran

CEB pushes for more flights to Australia, India, Hong Kong

August 16, 2024 | 12:08 am

CEBU PACIFIC, operated by Cebu Air, Inc. (CEB), is seeking an expansion of air service agreements between the Philippines and Australia, India, and Hong Kong amid increasing travel demand, the budget carrier’s president said.

“We have made our wish list… Korea was one of them. Hong Kong is actually another. Part of our wish list, by the way, was India. The other one where we said there is a need to increase bilateral is Australia,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao told reporters at a recent event.

This is part of the company’s expansion plans, he said.

“Currently, the seat entitlements to Australia are fully allocated among the Philippine carriers. So, if we wanted to expand to the key cities, Sydney, Melbourne, Perth, and Brisbane, we cannot. There has to be a change in bilateral,” he added.

According to the website of the Australian Embassy in the Philippines, the arrangement between Australia and the Philippines allows airlines to offer up to 4,000 seats each way, which can be increased to 6,000 per week depending on the demand between Australia’s four major destinations — Brisbane, Melbourne, Perth, and Sydney — and Manila and Clark.

Mr. Lao noted that the seat entitlement between the country and Australia is only fully used up on the Philippine side.

“Clearly, that is something we had asked the Philippine government to see if we could request air talks. In fact, requests have been made,” he said.

Mr. Lao said that even though Cebu Pacific has no immediate plans to increase its frequencies in India, the airline wants increased seat entitlements for future plans.

In July, the Department of Transportation announced that the Philippines and South Korea signed a bilateral air services agreement allowing an increase in seat entitlements for flights between the two countries.

Under the new agreement, the Philippines and South Korea will have an additional 10,000 seats per week, bringing the total to 30,000 from the existing capacity of 20,000.

Earlier, Cebu Pacific said it would capitalize on the increased weekly seat capacity between the country and South Korea.

“One of the ways we can actually increase our presence in Korea is by upgrading aircraft, whether it’s [Airbus] 321 to 330; that is one way. We are looking at some destinations in Korea, but it is at the feasibility study stage,” Mr. Lao said.

“I think the expansion of bilateral agreements is important. It gives airlines the opportunity to expand; without that, we would not have been able to. So, clearly, it is a really good deal between the Philippines and Korea,” he added.

Cebu Pacific also said it is launching flights to Hong Kong from Davao while also reviving its direct flights from Iloilo to Singapore, the company said in a separate media release.

The airline said it will begin operating flights between Davao and Hong Kong on Oct. 27, four times a week — every Monday, Wednesday, Friday, and Sunday.

It will also operate flights to Singapore from Iloilo starting Nov. 25, three times a week — every Monday, Wednesday, and Friday. — Ashley Erika O. Jose

Globe secures P22 billion in loans from major banks

August 16, 2024 | 12:07 am

AYALA-LED Globe Telecom, Inc. said it has secured a total of P22 billion in loan agreements from China Banking Corp. (Chinabank), Land Bank of the Philippines (LANDBANK), and Metropolitan Bank & Trust Co. (Metrobank).

“The loans (will) be used to finance the company’s capital expenditures (capex), debt refinancing, and/or general corporate requirements,” Globe said in a regulatory filing on Thursday.

The company signed term loan facilities with Chinabank, LANDBANK, and Metrobank for P10 billion, P5 billion, and P7 billion, respectively.

For the first semester, Globe allocated P28.3 billion for capex, primarily for data infrastructure to support the company’s strategy of enhancing network coverage.

Globe said it aims to provide customers with continuous access to essential digital services and entertainment, regardless of the time or location.

For 2024, Globe has allocated $1 billion for capex, which is less than the $1.3 billion allocated in 2023.

“Globe continues to spearhead efforts to bridge the digital divide by bringing connectivity to remote areas across the country… By helping improve the country’s digital infrastructure, Globe connects remote communities, enabling residents to access vital online services, educational resources, and economic opportunities,” it said.

For the second quarter, Globe reported an attributable net income of P7.74 billion, climbing by 9.5% from the same period last year.

Its revenues reached P44.32 billion, lower by 0.38% compared with P44.49 billion a year ago, the company’s financial report showed.

At the stock exchange, shares in the company shed P58 or 2.48% to end at P2,280 per share. — Ashley Erika O. Jose

Committing to education for all

August 16, 2024 | 12:07 am

Documentary on John Gokongwei, Jr.’s advocacy for learning just the first of a 3-part tribute to the late tycoon

WHEN the Gokongwei family decided to honor their patriarch in a three-part multimedia tribute, they knew they had to start by focusing on what fueled John Gokongwei, Jr.’s philanthropic side.

As a teenager during the Second World War, he supported his family, which had lost their fortune, by peddling items along the streets of Cebu on his bicycle.

The documentary A Boy, a Bicycle, and a Legacy: Remembering John Gokongwei Jr. traces his dedication to help Filipinos further their education through the Gokongwei Brothers Foundation (GBF) to the man’s humble beginnings.

The film is available to watch on YouTube.

Business journalist Lala Rimando produced the documentary, the first of three tributes lined up.

The other two are a book and a podcast, both of which will center on Mr. Gokongwei’s colorful, business-savvy journey to the top.

For Troy Bernardo, who directed the film, there was not much drama behind its making. The Gokongwei family and scholarship program recipients were all happy to talk about “Mr. John,” as he was affectionately called.

Mr. Gokongwei passed away in 2019 at the age of 93.

“The material on him that is already out there is usually technical, all business. For this documentary, we wanted to focus on the heart,” said the director at the documentary’s Aug. 15 premiere in the recently opened Opus Mall in Bridgetowne, Quezon City.

The GBF’s Iskolar ni Juan tech-voc program is a fully subsidized Science, Technology, Engineering, and Mathematics (STEM) scholarship done in partnership with Universal Robina Corp. It provides industry-standard training, work immersion, and eventual job opportunities to underprivileged high school graduates.

Interviews with family members and proponents of this program, plus snippets from a 2011 interview with Mr. Gokongwei himself, paint a picture of the conglomerate’s thrust towards nation-building.

Ms. Rimando said that the documentary was chosen to represent this side of Mr. Gokongwei because it would have “the widest reach.”

“Meanwhile, book readers are very few. It’s a very niche market, so we’re making that for students, businessmen, and people who want to learn from the man through a more detailed account of his work,” she explained. “The podcast will do that as well, but it will be more emotional and motivational.”

Both the book and the podcast are scheduled for release next year.

Lisa Gokongwei-Cheng, the general manager of GBF and Mr. Gokongwei’s third child, told the press: “Most know about Mr. John’s business legacy, but few knew how important the foundation and its purpose were to him. I think we were very lucky to have grown up and lived with him.”

The documentary can be viewed for free on YouTube at https://tinyurl.com/49z5jbdr. — Brontë H. Lacsamana

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