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Nonmonetary measures needed to address rice inflation as prices may continue to climb

PHILIPPINE STAR/ MICHAEL VARCAS

THE AGGRESSIVE rate hikes of the Bangko Sentral ng Pilipinas (BSP) over the past two years have helped stabilize inflation, but nonmonetary measures are still needed, especially as rice prices remain high.

Rice prices continue to be a “serious concern” as this could cause headline inflation to breach the 2-4% target anew in the second quarter, Monetary Board member V. Bruce J. Tolentino said.

“The Philippines produced a record level of rice in the past season. But work on pushing productivity must continue, because there is significant unmet demand for rice, and many are hungry,” he told BusinessWorld in a text message.

Rice production and agricultural productivity must grow faster and surpass the expansion in the population and per capita consumption, he said.

“Increasing productivity is a medium- to long-term effort that requires consistent and faithful effort,” Mr. Tolentino said, adding that the government should invest in scientific research and development for the long term.

Latest data from the Philippine Statistics Authority showed headline inflation eased to 2.8% in January from 3.9% in December and 8.7% in the same month in 2023.

This was the slowest inflation point since the 2.3% seen in October 2020 and was below the 3.1% median estimate in a BusinessWorld poll.

January also marked the second straight month that the consumer price index (CPI) was within the BSP’s 2-4% annual goal following 20 consecutive months of above-target inflation.

The central bank sees headline inflation averaging 3.7% this year, slower than the 6% print in 2023, and easing further to 3.2% in 2025.

Meanwhile, the central bank’s risk-adjusted forecasts show that inflation could settle at 4.2% this year, above the 2-4% target, and could slow to 3.4% in 2025.

The BSP has kept its policy rate unchanged at a 16-year high of 6.5% for two straight meetings since November. This was after it hiked benchmark borrowing costs by a cumulative 450 basis points (bps) from May 2022 to October 2023 to help bring down the CPI.

“I am happy that the monetary policy decisions made over the last year have helped to manage and bring down inflation,” Mr. Tolentino said.

“(But) rice prices continue to be high due to the dynamics of reduced global supplies due to India’s ban on rice exports, plus the emerging impact of fertilizer supply constraints arising from the war in Ukraine,” he added.

In January, rice inflation quickened to 22.6% in January from 19.6% in December. This is the highest rice inflation in nearly 15 years or since 22.9% in March 2009.

Rice was also the biggest contributor to January inflation, adding 1.3 percentage points to the 2.8% headline print. The commodity has the biggest weight in the overall CPI basket at 8.87%.

National Statistician Claire Dennis S. Mapa earlier said the higher rice inflation was due to an increase in prices in the global market and a low base, noting that annual rice inflation may hover at around 20% or even higher until July.

“A key factor in the continuing increases in rice prices is tight domestic stocks, which were not fully replenished because import permits were drastically constrained in 2022 up to mid-2023,” Mr. Tolentino said.

China Banking Corp. Chief Economist Domini S. Velasquez also noted that a large part of January inflation was driven by favorable base effects from last year’s peak.

“Persistent double-digit rice inflation has pushed up our inflation forecast for the year from 3.5% to 3.8%. Rice prices remain on an uptrend and will likely continue to drive inflation in the coming months,” she said.

“Looking ahead, El Niño, which is expected to persist until the second quarter of 2024, could drive up prices. Inward-looking policies of rice exporter nations have also exacerbated global rice prices,” Ms. Velasquez added.

She noted that the government’s rice supply deal with Vietnam could help ensure stable supply of rice. Under a memorandum of understanding signed during President Ferdinand R. Marcos, Jr.’s two-day state visit to Vietnam in January, Hanoi committed to supply 1.5 million to 2 million metric tons of white rice to the Philippines “at a competitive and affordable price” for five years.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said average inflation may hit 4.1% this year amid high food prices, before easing to 3.8% in 2025.

“As fading base effects meet the impact of the drought in the second quarter, headline inflation is expected to peak in the range of 5% year on year in June-July before tapering off to a low of 3.5% in September,” he said in an e-mail.

Mr. Asuncion said food inflation may spike to above 6% starting in April due to the impact of drought on food supply. It will likely start to go down in August, reaching an annual average of 4.7% for 2024.

Food inflation alone eased to 3.3% in January from 5.5% in the previous month and 11.2% a year ago. It was the slowest since the 2.8% in March 2022. — Keisha B. Ta-asan

PDEx expects bond issuances to exceed P400B this year

CORPORATE BOND issuances this year may surpass the Philippine Dealing & Exchange Corp.’s (PDEx) initial target of P400 billion amid expectations of increased offerings by the banking sector, its top official said.

“(The outlook) is a more robust year compared to last year… I think (we will surpass),” PDEx President and Chief Executive Officer Antonino A. Nakpil said on the sidelines of a listing ceremony last week when asked if they can hit the P400-billion target for 2024.

The full-year goal is almost double the P209 billion in issuances seen in 2023, but below the P508 billion raised in 2022.

“We started with [around] P70 billion just within February. We’ll be at P82 billion after this week. It is a very good start for the first quarter,” Mr. Nakpil added.

Big companies and the banking sector will drive the increase in fundraising as they expect interest rates to begin going down later this year, he said.

“There’s a lot of maturities that are going to occur. The banks in particular usually have an incentive to reissue their bonds again. That will be driving the growth. We believe the banks are coming back,” Mr. Nakpil said.

“The corporates who are coming early — and where interest rates haven’t fulfilled the downward trend yet — we’ll probably see. The banks, definitely, have always been very tactical on that. They are very astute when it comes to timing,” he added.

The Bangko Sentral ng Pilipinas (BSP) raised borrowing costs by 450 basis points from May 2022 to October 2023 to bring down elevated inflation, bringing the policy rate to a 16-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. earlier ruled out a rate cut in the first semester amid risks to the inflation outlook but said the central bank may start considering policy easing in the second half.

PDEx also aims to encourage smaller firms such as micro, small, and medium enterprises (MSMEs) to raise capital from bonds, adding that it is “an extremely large market,” Mr. Nakpil added.

“Focus on the MSMEs is one — focus on getting more people access to capital and going back to the basics of getting capital moving within the economy. That’s why you want the capital market developed so that capital will be accessible to not just family-owned firms or conglomerates, but to new firms,” he said.

“The mission of the capital market infrastructure is to have more issuers have access to capital… Capital should move around to all issuers,” he added. — Revin Mikhael D. Ochave

Instructure report reveals PHL vocational institutions’ current engagement with edtech, generative AI

Instructure’s study shows that vocational education institutions are turning to technology as a key tool to positively influence instructors, administrators, and students. Among the technologies adopted, LMS emerged as the most commonly used technology, followed by digital assessment solutions and video/audio conferencing.

Learning technology ecosystem Instructure Holdings, Inc. (Instructure) has recently commissioned Hanover Research to conduct a study highlighting the evolving focus of vocational education institutions in the Philippines on enhancing student employability. The State of Vocational Education in the Philippines survey, carried out last September and encompassing 115 institutions, indicates a significant shift towards integrating educational technology (edtech) solutions such as a Learning Management System (LMS) to broaden students’ career opportunities post-graduation.

According to the report, 89% of vocational education institutions place great importance on the employment rates of recent graduates, and 81% value their students’ practical application of knowledge and skills. When assessing their programs, 100% believe they effectively prepare students for the workplace. However, more than half of the institutions (53%) admit that they struggle with recent graduate employment rates.

In response to the increasingly competitive job market, vocational education institutions are turning to technology as a key tool to positively influence instructors, administrators, and students. A significant 97% of these institutions believe that their use of technology has played a crucial role in enhancing student success.

Among the technologies adopted, LMS emerged as the most commonly used technology, with 77% of institutions utilizing them. Digital assessment solutions (62%) and video/audio conferencing (59%) were also widely adopted. Further emphasizing the value of technology in education, 88% of institutions report that their students place great importance on integrating technological tools like LMS, recognizing their role in enriching the learning experience.

“The widespread adoption of LMS and other digital learning tools speaks to a deeper understanding that integrating technology is crucial for preparing vocational students for the complexities of the modern workforce,” said Harrison Kelly, managing director at Instructure Asia Pacific.

Addressing competition and challenges

Another key factor driving technology adoption in vocational education institutions is the heightened competition from universities. According to the report, 65% of institutions said they are seeing a high increase in competition from universities offering nontraditional courses for students, such as short courses or micro-credentials.

The current inflationary environment has also had a mixed impact on these institutions. While 88% of institutions have experienced increased enrollments, cost pressures related to home life (81%), household income (74%), and access to technology (74%) remain concerns.

Moreover, the institutions expressed the need for assistance complying with standards (45%) and increased funding (37%). These findings emphasize the sector’s need for additional support to equip students with the required workplace readiness.

The AI dilemma

With the rising integration of technology in education, the emergence of generative artificial intelligence (AI) tools like ChatGPT has presented a complex mix of challenges and opportunities for vocational institutions in the Philippines, reshaping their approach to teaching and learning.

While 32% of vocational institutions have incorporated AI tools into their operations, 38% have opted to ban them entirely. Additionally, 23% are familiar with these tools but choose not to use them, and a small fraction (6%) lack knowledge about them.

According to the report, administrative staff are more likely to utilize AI tools (34%) compared to trainers (30%), and they are slightly less inclined to support bans on these tools (38% admins versus 39% trainers). Admins mainly use AI tools for research and writing (59%), lesson plan creation (49%), and administrative tasks like email drafting (46%). Meanwhile, students utilize AI for research and writing (76%), language translation (46%), and test preparation (45%).

The report also highlights that vocational institutions are less concerned with plagiarism (31%) and more concerned with issues such as the loss of creativity and critical thinking (52%), and data privacy (49%).

Despite some apprehensions and outright bans, most institutions (91%) have established guidelines for using generative AI, with 56% implementing light guidelines and 35% enforcing stricter ones.

To keep pace with the prevalence of AI tools, 75% of vocational education institutions in the Philippines actively offer AI training, showcasing their commitment to embracing and adapting to AI’s technological disruptions.

“It’s vital that institutions continue to provide strong support to students as they complete their courses and advance in their lifelong learning journey. This involves not only equipping them with the latest technological tools and skills but also overcoming inherent challenges in this rapidly changing educational landscape,” Mr. Kelly said.

New York Fashion Week menswear showcases age-defying designs

NEW YORK — New York Fashion Week: The Shows officially kicked off on Friday, with four menswear designers showcasing their new collections.

Y.Chroma, which launched less than a year ago, is on a mission to target the often-ignored middle-aged bracket.

“My customers … look in line at Starbucks and realize they’re wearing the same clothes as every other guy, and they want to change that. That’s actually not an easy transition to make,” said founder Max Israel.

Mr. Israel said the brand taps into Generation X’s heritage, infusing the laid-back essence of skate and surf culture with luxurious textiles and refined aesthetics.

“This matters because you’re talking about 100 million men between the US and Europe. They’re most of GDP, and they’re totally locked out of fashion… We’re going to change that,” said Mr. Israel.

TERRY SINGH
Designer Terry Singh, himself aged 57, returned with a collection that seeks to give each man he dresses a sharp identity. (See the show here: http://tinyurl.com/4uub2vue)

“When you see him coming down the street, he has that look,” he said.

Mr. Singh continued his tradition of using unconventional models. Brian St. John, for instance, is a record label vice-president who Mr. Singh found having his photo taken on the street in New York.

“Terry was directing my friend how to take the pictures better and angling it better. And then we exchanged Instagrams … and he hit me up and asked me to be in the show,” said St. Joahn.

Fashion brand Landeros also showed during the morning session of the biannual Men’s Day event, while designer Jack Sivan’s brand made its fashion week debut, focusing on soft and playful tailoring.

Nearly 50 brands including Carolina Herrera, Tommy Hilfiger and Brandon Maxwell will showcase their collections during New York Fashion Week, which runs until Feb. 14. — Reuters

PSE: Short selling progress hinges on market recovery

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE Stock Exchange, Inc. (PSE) is not bothered by the slow progress of its short selling product, its top official said.

“I’m not worried. As long as the short selling capability is there, that is the most important thing,” PSE President and Chief Executive Officer Ramon S. Monzon told BusinessWorld on the sidelines of a launch event in Makati City last week when asked about the development of the market product.

The PSE launched short selling in November last year, five years after issuing the revised guidelines on the trading strategy. However, the latest daily short selling report posted on the PSE’s website showed that there have been no developments on the new trading product.

Mr. Monzon said the short selling product was introduced to entice more foreign investors to consider the local exchange.

“Everybody is saying that this short selling doesn’t seem to have worked. We’ve worked on short selling and it is really to target the foreign investors so that when the emerging market or the Philippine economy loses favor, instead of selling out, they can hedge. That will create liquidity,” Mr. Monzon said.

He added that short selling has not taken off because of the market’s current performance.

“I don’t expect short selling to take off in a big way right away because the market is down. Brokers have also to adopt their back office. That’s all happening now,” Mr. Monzon said.

“Hopefully, when the market is up, everything is in place,” he added.

On Thursday, the 30-member Philippine Stock Exchange Index (PSEi) rose by 0.29% or 20.12 points to 6,850.16, while the broader all shares climbed by 0.2% or 7.45 points to 3,574.21.

The market had a shortened trading week due to the Chinese New Year holiday.

Compared to the previous week, the PSEi rose by 2.13%, or 142.91 points, from the close of 6,707.25 on Feb. 2.

Short selling is a “trading strategy that involves the selling of a borrowed security with the intention of buying it back later at a lower price,” which allows investors to hedge against the downside risk of an investment.

Eligible securities for short selling include all PSE index, PSE MidCap, and PSE Dividend Yield constituent companies and exchange traded funds.

Benilde’s first diplomacy and governance program batches graduate

The De La Salle-College of Saint Benilde (DLS-CSB) has sent off its first batch of Diplomacy and International Affairs (DIA), and Governance and Public Affairs (GPA) graduates.

The programs were first offered during the height of the COVID-19 pandemic, under the Benilde School of Diplomacy and Governance (SDG).

During the completion rites at the Philippine International Convention Center (PICC), summa cum laude Gabrielle Elijah Villareal shared how embracing the newly offered GPA allowed her to discover “not just an academic pursuit, but a transformative journey.”

“It became my crucible for understanding the intricate tapestry of society — the delicate balance of power and the profound responsibilities that come with it,” she explained.

The young achiever also stressed how the resilience of the Filipinos became a learning ground for the youth on the significance of good governance and the impact of accountability.

“It resounds with the empowering truth that our voices are not just heard but wield the potential to make a profound difference,” she stated.

“Our country needs a new generation of leaders, diplomats, lawyers, businessmen, and even artists who will implement a strong sense of duty to promote the interests and human rights of the disadvantaged in society,” she added. “It is our turn to be architects of positive change, stewards of justice, and extraordinary world changers.”

Benilde SDG Dean Gary Ador Dionisio, DPA noted how navigating the pandemic highlighted the importance of diplomacy and governance.

“We took notice that various governments made different responses to address the pandemic,” he explained. “Some were successful in mitigating the effects, while others failed to provide adequate services and responses.”

The educator expounded that understanding the intricacies and dynamism of the discipline is one of the important pillars in addressing current issues.

“Governance and diplomacy are also frontline programs to whatever disruptions or challenges our country is facing,” Mr. Dionisio stated.

In light of the “unfolding flashpoints in the current global order,” he also underlined the need for further reexamination of the current paradigm.

DIA provides a more comprehensive understanding of the concepts, theories, and practices involved in the global dynamics of international relations.

Designed for aspiring diplomats, global affairs specialists, and development practitioners, it equips students with competencies in research, policy development, protocols, diplomatic works, and negotiation.

Meanwhile, GPA recognizes the dynamics and importance of regional, international and nongovernment organizations, and the United Nations’ system in policy-making and formulations.

It is the only public administration and governance program in the Philippines that combines the philosophy of liberal arts education, social sciences, and practical aspects of public affairs management to prepare enrollees for a career in government and international agencies.

As a Lasallian Governance course, it equips students with high ethical values, accountability, and a sense of duty to promote human rights for all and protect the interests of minorities in society.

Tadashi Shoji looks to the natural world, Christian Siriano nods to Dune in New York Fashion Week

CHRISTIAN SIRIANO

VETERAN designer Tadashi Shoji nodded to the natural world for his latest collection at New York Fashion Week on Friday, presenting an array of cocktail dresses and evening gowns in dark greens and bronzes. (See the show here: http://tinyurl.com/345t49ff)

Instead of a catwalk show, Japanese-born Mr. Shoji, who is based in Los Angeles, chose to present the Fall/Winter 2024 line digitally via video, which showed models walking through an enchanted forest set to present the frocks. Many dresses bore leaf or floral motifs and embroidery. Some were adorned with large floral decorations.

“(There) is so much tragedy and so much chaos (in the world), so mostly, psychologically, I think … people want to escape from this mess,” Mr. Shoji told Reuters.

“So (I thought) maybe a green forest, the fantasy of a forest (was) a good idea.”

Silhouettes varied from sleek off-the-shoulder necklines and tiered skirts to floaty chiffon gowns in the collection, which also featured dresses in red, purple and blue and is priced between $300 and $700.

CHRISTIAN SIRIANO
US designer Christian Siriano looked to the sweeping landscapes from science fiction epic Dune at his Fall/Winter fashion show, presenting a collection deeply rooted in the tones of the desert.

Models wore draped coats and jackets in earthy browns and reds, while frocks came in shiny metallics at the catwalk presentation on Thursday at The Plaza Hotel, held ahead of Friday’s official start of New York Fashion Week: The Shows.

Dresses were often slit at the thigh while male models wore cropped jackets with wide-leg trousers. Iridescent materials and lamé provided a futuristic look.

“What would you wear if you were going to a cocktail party or a gala? … I think they’ve got the futurism covered, but what would you wear if you wanted to be glamorous?” Mr. Siriano told Reuters backstage.

“That’s what I want to give to that world if we had to live there.”

Dune, Frank Herbert’s 1965 novel set in the future where noble families rule planetary fiefs, has been adapted for the screen several times, including David Lynch’s 1984 version and Denis Villeneuve’s 2021 movie, starring Timothee Chalamet and Zendaya. Its sequel is due for release this month.

Mr. Siriano said he wanted to offer a mix of silhouettes at his show, whose celebrity guests included actors Alicia Silverstone and J. Smith-Cameron.

“We start the show actually (with) a lot of really beautiful, tailored pieces, great trousers, gorgeous cut jackets and then it kind of builds into a really beautiful, more romantic, glamorous evening world,” Mr. Siriano said.

“I wanted people to see the range of dressing, and I think that that’s really what my customer is looking for.”

Nearly 50 brands including Carolina Herrera, Tommy Hilfiger and Brandon Maxwell will showcase their collections during New York Fashion Week, which runs until Feb. 14. — Reuters

Aboitiz plans bulk water supply project in Tarlac

BW FILE PHOTO

ABOITIZ Equity Ventures, Inc. (AEV) is planning to develop a bulk water project within its economic estate in Tarlac City, the company’s president said.

“Yes, we would [replicate the Davao City bulk water project]. We would like to be there where they welcome us. [We are targeting some] in the eco zone, in Tarlac for example, this was a big project. We were focusing on doing this,” Sabin M. Aboitiz, president and chief executive officer of AEV, told reporters last week.

Last week, AEV’s Aboitiz InfraCapital, Inc. inaugurated the Davao City bulk water supply project, which has a capacity of 300 million liters per day.

The P12-billion bulk water supply project, which started operating in December 2023, is a public-private partnership between Apo Agua Infrastructura, Inc., the water unit of Aboitiz Infracapital, and Davao City Water District (DCWD).

For now, Mr. Aboitiz said the company will focus on expanding Davao City’s bulk water supply project to other areas and within the concession area of DCWD.

DCWD is the water service provider of Davao City. It supplies water to around 240,000 customers in 116 barangays within its concession area.

In October 2023, Aboitiz InfraCapital said that it would target to start the construction works for its fourth economic estate in the first semester of 2024.

Its 200-hectare Tarlac City estate is expected to attract more manufacturing companies, the company said.

Currently, Aboitiz InfraCapital has three economic estates which are the 826-hectare LIMA Estate in Batangas, the 63-hectare MEZ2 Estate in Mactan Cebu International Airport, and the 540-hectare West Cebu Estate in Balamban. — Ashley Erika O. Jose

NIA considering crop calendar adjustment

Farmers are seen in a rice field in Bustos, Bulacan, Oct. 17, 2023. — PHILIPPINE STAR/KJ ROSALES

THE National Irrigation Administration (NIA) said on Sunday that it may adjust the timetable for providing water to reduce potential crop losses, especially for rice.

“With the goal of ensuring sufficient farm yield and minimizing rice imports, NIA is considering adjusting the cropping calendar,” it said in a statement posted on Facebook.

The Philippines imported 3.58 million metric tons (MT) of rice in 2023, according to the Bureau of Plant Industry.

The NIA said it will work around a schedule of two cropping periods during the dry season, one from October to January, and the other from February to May.

According to NIA, doing so would minimize the impact of typhoon damage to standing crops.

NIA Administrator Eduardo G. Guillen has also accelerated the timetables of irrigation projects.

The use of high-yielding hybrid seed could potentially increase yields in NIA-irrigated sites to 8 million MT of palay or unmilled rice.

The Department of Agriculture (DA) is targeting palay output of 20 million MT this year, roughly unchanged in light of the prevailing El Niño.

Mr. Guillen has said that 20% of agricultural production may be affected by El Niño.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), said El Niño is projected to last until the second quarter, bringing dry spells or droughts to 63 provinces.

NIA said that it is seeking to partner with the DA, the Department of Public Works and Highways, and other national and local government agencies as well as the private sector in irrigation development. — Adrian H. Halili

Meralco switches on new substations in Taguig City

MANILA Electric Co. (Meralco) has energized two new smart substations in Taguig City to cater to the growing demand in the business center, the power distributor said on Sunday.

Meralco has invested P413.98 million for the Fort Bonifacio Global City-2 gas insulated switchgear (GIS) substation to improve the power quality in Bonifacio Global City and nearby areas, the company said in a statement.

It involves the construction of a new 0.3-kilometer, 115-kilovolt (kV) line, and a new 34.5-kV distribution feeder.

Meanwhile, a total amount of P440.06 million was allocated to the McKinley Hill GIS substation. This includes the construction of underground 115 kV lines and two new 34.5 kV distribution feeders.

“As we energize these new substations, we also strengthen our commitment to continue delivering quality electricity service by strategically investing in projects to further improve our distribution system,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said.

The company stated that among the communities and establishments that will benefit from the new substations are St. Luke’s Medical Center, Shangri-La The Fort, Arthaland, Uptown Mall, One Residences, Venice Grand Canal Mall, Enderun Colleges, Inc., Commerce & Industry Plaza, Science Hub, One Le Grand Tower, 8 Upper McKinley Towers, and One World Square.

In September last year, Meralco energized a 115-kV–34.5-kV GIS substation worth P597 million to provide power supply to Ayala Land, Inc.’s South estate and nearby communities in Taguig City.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Rustan’s Zenaida ‘Nedy’ Tantoco, 77

NEDY TANTOCO (L) with designer Josie Natori at the Ayala Museum.

RUSTAN Commercial Corp., SSI Group, Inc., and Rustan Marketing Corporation Chair Zenaida Tantoco (“ZRT” to Rustan’s and SSI staffers; “Nedy” to friends, family, and the society pages) passed away on Feb. 8, 2024. The death was confirmed through a statement sent out by the Tantoco family through Viber.

“It is with profound sadness that we announce the passing of Zenaida ‘Nedy’ R. Tantoco. The retailer, philanthropist, patroness of the arts, loving mother, and grandmother passed away last night, Feb. 8, 2024, at 11:42 p.m. She was 77 years old,” said the statement.

Ms. Tantoco would have been about five years old when her parents founded their retail empire in 1952 from their house in San Marcelino, Manila. Her parents were entrepreneurs Bienvenido Tantoco, Sr. (who would be appointed Ambassador to the Vatican in 1983) and Gliceria Rustia Tantoco, a close associate of former First Lady Imelda Marcos. While her father passed away in 2021 at the age of 100, her mother had died much earlier in 1994.

The senior Tantoco couple changed the face of Philippine retail by bringing in some of the world’s most prestigious brands to the country through their department store chain, Rustan’s. Their operations in franchising, licensing, and distribution expanded through sister company, Stores Specialists Inc. (SSI), founded in the 1980s. While some brands may have changed distribution channels in the Philippines through the years, the brands brought in by the Tantoco family have included Salvatore Ferragamo, Cartier, Bottega Veneta, Charriol, Oleg Cassini, Dior, Balenciaga, Givenchy, Loewe, Prada, Burberry, Montblanc, Tiffany & Co., and Hermès; among others.

Nedy Tantoco, even as a young woman, was already known for her style, dressed by the best designers here and abroad. With a reputation as an arbiter of taste, it seemed natural for Ms. Tantoco to ascend to her parents’ place to head the Rustan Group. Well into her 70s, Ms. Tantoco still cut a striking figure at Rustan’s events, usually in Ferragamo pumps.

Aside from her work as chair and chief executive officer (CEO) of the family business, Ms. Tantoco participated in society and patronized the arts, with a special interest in opera.

“The CCP (Cultural Center of the Philippines) and the art community in general grieves the loss of a strong ally in pursuing cultural endeavors and promoting artistic excellence. May her soul rest in peace and rise in glory,” said the CCP in a statement honoring its former long-time trustee. Ms. Tantoco had been part of the CCP Board of Trustees from 2002 until her resignation in 2021.

“During her 19 years as CCP Trustee, her accomplishments were defined by her integrity and reliability, as well as her unwavering love and inspiring passion for arts and culture,” said the statement, which highlighted her fundraising efforts for the cultural center. She raised funds for new musical instruments and repairs for the Philippine Philharmonic Orchestra (PPO), she underwrote several CCP opera productions including Gaetano Donizetti’s L’Elisir d’Amore in 2017 and Lucia di Lammermoor in 2020, and Giacomo Puccini’s Turandot in 2022.

Former PPO Musical Director Olivier Ochanine wrote in a Facebook post: “Up until her last messages to me days ago, she was always positive and inspiring. She helped me to organize the PPO reunion just a couple of weeks ago… Incredibly hard to think now that just days later, this superb, generous and kind woman — bigger than life, as they say — would leave this world.

“No words can adequately describe how important you are to me and to so many others.”

Opera singer Rachelle Gerodias wrote on Facebook, “Despite her social stature and power she was so humble, kind, and generous to everyone, especially to her family and friends. She sincerely loved the arts and generously supported classical music and opera in our country. She is a great loss to all of us.”

Fashion designer Puey Quiñones wrote “Thank you Tita Nedy Tantoco for the focus, the opportunity to be in Rustan’s. My heart is broken. We love you, Tita. Rest in paradise.”

She is survived by her partner Patrick Jacinto; her three children: Anton Huang (who sits as president at SSI) with wife Nina and daughters Nikki and Isabelle; Michael Huang (Rustan’s Senior Vice-President for Development and Support) with wife Kathy and children Kenzie and Kameron; and Catherine with husband David Endriga. She is also survived by siblings Rico and wife Nena Tantoco, Menchu and husband Jun Lopez, Marilou and husband Eddie Pineda, Marlien Tantoco, and Maritess and husband Renato Enriquez.

“Nedy uncompromisingly upheld the sacred values taught by their parents in running a family enterprise. Although known in the industry for her astute professionalism, Nedy will always be better remembered as a nurturing force in fostering family empowerment and unity. These, she believed, were key for their family’s future generations to thrive,” said the statement from the Tantoco family.

The wake will be held at 25B Tamarind Avenue, Forbes Park, Makati City, from 11 a.m. to 10 p.m. on Feb. 10-12. Ms. Tantoco’s remains will be transferred to the Heritage Park in Taguig on Feb. 13 to 15, from 9 a.m. to 9 p.m, with masses held at 5 p.m. The funeral mass will be held on Feb. 16 at 10 a.m. in the Santuario de San Antonio Parish in Forbes Park, Makati.
— JLG

T-bill, bond rates may rise ahead of BSP meeting

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

THE RATES of Treasury bills (T-bills) and retail Treasury bonds (RTBs) are expected to go up this week ahead of the Philippine central bank’s policy meeting.

The government securities could track the slight increase in secondary market yields as the Bangko Sentral ng Pilipinas (BSP) is expected to mirror the US Federal Reserve and keep its key rate steady on Feb. 15, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday — P5 billion each in 91-, 182- and 364-day debt. On Tuesday, it will hold its rate-setting auction for five-year RTBs due in 2029.

The Treasury will cancel the auction for seven-year Treasury bonds on Tuesday due to the retail bond sale.

At the secondary market on Thursday, the rate of 91-day T-bills went up by 1.88 basis points (bps) week on week to 5.4610%, based on PHP Bloomberg Valuation Service Reference Rates data posted on the Philippine Dealing System’s website.

The 364-day T-bill rose by 1.37 bps to 6.0577%, while the 182-day debt fell by 0.31 bp to 5.8095%. The five-year bond rose by 4.49 bps to 6.1313%.

“The next local policy rate-setting meeting on Feb. 15 could match the Fed rate pause on Jan. 31 to maintain healthy interest rate differentials,” Mr. Ricafort said.

Fifteen of 17 analysts in a BusinessWorld poll last week expected the Monetary Board to keep the target reverse repurchase (RRP) rate at 6.5% on Thursday.

The Monetary Board raised borrowing costs by 450 bps from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

The Fed held its target rate steady at 5.25-5.5% for a fourth straight time at its Jan. 30-31 meeting. It raised borrowing costs by 525 bps from March 2022 to July 2023.

Last week, the Treasury bureau raised P15 billion as planned from its T-bills auctions as total bids reached P47.415 billion, more than thrice the amount on the auction block.

The Treasury fully awarded P5 billion of the 91-day T-bills as tenders hit P12.985 billion. The average rate of the three-month debt rose by 6.3 bps to 5.461% from a week earlier. Accepted rates were 5.425% to 5.495%.

The government also raised P5 billion from the 182-day debt as bids hit P13.94 billion. The average rate of the six-month debt rose by 5.1 bps to 5.861%, with accepted rates at 5.84% to 5.873%.

The Treasury also borrowed the programmed P5 billion via the 364-day debt as demand reached P20.58 billion. The average rate of the one-year T-bill shed 0.1 bp to 6.075%. Accepted yields were 6.05% to 6.098%.

The bureau plans to raise P210 billion from the domestic market this month — P60 billion in T-bills and P150 billion in T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year or P1.39 trillion.

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