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[B-Side Podcast] The case for growing vegetables in one’s backyard

https://open.spotify.com/episode/5wfFE34KqaFjyMXcXunizv?si=NOr4Pw6LTke5Cxf6ylAglg&nd=1&dlsi=d14f8840e0e74d52

Home gardening has benefits beyond the purpose of serving as a diversion from the pandemic. In this B-Side episode, multimedia producer Patricia Mirasol speaks with Ma. Elena P. van Tooren, executive director of East-West Seed Foundation, about home gardening, the types of vegetables to grow in tropical countries, and tips for budding urban gardeners.

East-West Seed Foundation is the corporate social responsibility arm of East-West Seed Philippines, which breeds tropical vegetable seed varieties.

Takeaways

Food security is one of the benefits of growing one’s own vegetables.

Availability, accessibility, and affordability are some of the benefits of growing your own vegetables, said Ms. van Tooren.

Around 10%, or an estimated 2.6 million Filipino families, experienced involuntary hunger in the past three months “before the survey period,” according to a Sept. 30 to Oct. 4 survey by OCTA.

“If grown naturally, you’re also assuring your family of quality, healthy food,” Ms. van Tooren said. “Gardening is [likewise] a healthy exercise – both physically and mentally.”

“So many plantitos [plant dads] and plantitas [plantitas] started during the pandemic, and I believe that once you get started, you will continue…because you will have enjoyed it so much,” she added.

The non-negotiables for growing vegetables are sun, soil, and water.

The three non-negotiables for vegetable growing are sun, soil, and water.

For sunlight, it’s at least four hours’ exposure for leafy vegetables and 6-8 hours for fruiting ones, Ms. van Tooren said. Don’t water later than 4 p.m., she also told BusinessWorld.

“If you water later than 4 p.m., the soil will be very moist overnight, and that will encourage diseases – especially fungus,” she said.

The soil quality in the Philippines, meanwhile, is “mostly clay.”

“Soil has to be loose but firm, so it’s best if you add amendments to it to loosen it up,” Ms. van Tooren said, noting popular amendments such as river sand and compost (or decayed organic material used as plant fertilizer).

There are workarounds for urban gardeners with small spaces.

Vegetables can be grown in small containers, Ms. van Tooren said, although “fruiting vegetables need larger containers – around five gallons, like ones used in water dispensers.”

Container gardening, like balcony gardening, is a form of urban agriculture, which refers to the “growing, processing and distribution of food crops and animal products, by and for the local community, within an urban environment.”

Ms. van Tooren, who resides in a condominium, said that she has been able to successfully plant arugula from her unit’s balcony.

“Herbs are very good if you live in a condominium and have a window that gets sunlight,” she added, “because herbs need less sunlight.”

Figure out a garden tending routine that works for you.

Parents with growing children may opt to nurture green leafy vegetables such as pechay (Chinese cabbage) and kangkong (water spinach).

“These are very nutritious vis-a-vis the space they need,” according to Ms. Van Tooren. “I would go for what the children like to eat,” she said, as she also noted the benefit of having children observe how vegetables grow.

The National Nutrition Council moreover suggests vegetables such as sitaw (string beans), malunggay (moringa), and tomatoes as sustainable produce for backyard gardens.

“I really want to encourage everyone to plant even one pot,” Ms. Van Tooren said. The Internet, including East-West Foundation’s social media pages, is rife with helpful information, she added.

Caring for a small garden plot is doable, Ms. van Tooren told BusinessWorld.

“You can do the watering in the morning before you start work…the extra care can be done on weekends. You have to find what’s workable for you.”

PHL launches Sukuk bond offering

REUTERS

THE BUREAU of the Treasury (BTr) on Monday launched its first-ever offering of Sukuk bonds as it mandated banks for the sale of “benchmark-sized” 5.5-year papers, a document showed.

The Sukuk bonds will be dollar-denominated and will be a “benchmark-sized” issue of at least $500 million with a tenor of 5.5 years.

The government named Citigroup, Inc., Deutsche Bank, Dubai Islamic Bank, HSBC, MUFG, and Standard Chartered Bank as joint bookrunners and joint lead managers. The banks were also mandated to arrange a series of fixed-income investor calls in Asia, Europe, Middle East and the United States starting Monday.

“This will potentially be the Republic’s maiden Sukuk issue after conducting a Philippine economic briefing in Dubai last September, with a target of diversifying the investor base towards Middle Eastern and Islamic countries,” the document read.

In July, Finance Secretary Benjamin E. Diokno said the government was eyeing to raise $1 billion from the sale of Sukuk bonds.

The BTr said the certificates will be issued by Republic of the Philippines (ROP) Sukuk Trust, a special purpose trust formed under Philippine law and administered by the Land Bank of the Philippines – Trust Banking Group.

“The certificates are expected to be rated ‘Baa2’ by Moody’s, ‘BBB+’ by S&P, and ‘BBB’ by Fitch,” it said.

Sukuk or Islamic bonds are certificates that represent a proportional undivided ownership right in tangible assets, or pool of tangible assets and other types of assets. These assets could be in a specific project or investment activity that is Shari’ah-compliant.

Unlike usual bonds, Sukuk bond issuances must adhere to Shari’ah principles and must be structured to prohibit elements like interest (riba), uncertainty (gharar), and investments in businesses that deal with prohibited goods or services (haram).

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the returns for the Sukuk bonds could match the rate for the benchmark US dollar-denominated bonds in the secondary market.

“Since this is new/debut issuance there could be some market excitement that would lead to higher bids/demand,” he said in a Viber message.

“Investor returns should be similar or better to be higher than comparable benchmark bonds and other alternative investments in the financial markets to attract more investor interest/demand,” he added.

A 2023 report from the Islamic Financial Services Board showed Sukuk dominated the Islamic capital market segment in 2022, accounting for 25.6% ($829.7 billion) of the $3.2-trillion global Islamic financial services industry last year.

This year, the Philippine government’s borrowing plan is set at P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign sources. — A.M.C. Sy

S&P hikes 2023 GDP outlook for Philippines

Holiday spending is expected to lift fourth quarter growth. — PHILIPPINE STAR/EDD GUMBAN

S&P GLOBAL RATINGS raised its gross domestic product (GDP) growth forecast for the Philippines to 5.4% this year but lowered its projection for next year to 5.9%.

At the same time, it expects the Bangko Sentral ng Pilipinas (BSP) to deliver one more rate hike this year, before cutting borrowing costs by 75 basis points (bps) in 2024 and by 175 bps in 2025.   

In its economic outlook report for Asia-Pacific Q1 2024, the debt watcher revised upwards its GDP forecast for the Philippines to 5.4% from 5.2% it gave in September. Still, this is below the 6-7% government target.   

Meanwhile, S&P lowered its 2024 projection to 5.9% from 6.1% previously. The credit rater also sees Philippine GDP to hit 6.2% in 2025 and 6.4% in 2026.   

The forecasts from 2024 to 2026 are all below the government’s 6.5-8% growth target over the medium term.   

“Asia-Pacific economies outside of China remain resilient. Growth this year and in 2024 should be the strongest in emerging market economies with solid domestic demand: India, Indonesia, Malaysia, and the Philippines,” it said.

The Philippine economy grew by 5.9% in the third quarter, faster than the 4.3% growth in the second quarter. For the first nine months of the year, economic growth averaged 5.5%, still below the government’s 6-7% full-year target.   

According to S&P, the purchasing managers’ indices (PMIs) in the Asia-Pacific region showed manufacturing activity continued to expand in October.   

“In Southeast Asia, the manufacturing PMI mostly exceeded 50 in October, including in the Philippines, where it has jumped since September,” the credit rater said.   

The S&P Global Philippines Manufacturing PMI climbed to 52.4 in October from 50.6 in September. This was the second straight month of improvement in operating conditions and its fastest upturn in seven months.

A PMI reading above the 50 mark denotes improvement in operating conditions, while a reading below 50 signals deterioration.

Inflation has also continued to ease in the region despite recent spikes in energy and food prices, S&P Global Ratings said.    

“There are some food price risks on the horizon in Asia due to the prolonged El Niño event. However, the impact of recent increases in international prices of oil and food has so far generally remained modest,” it said.

In the report, S&P sees Philippine inflation averaging 5.9% this year, lower than the BSP’s 6% baseline forecast. Inflation is seen to ease to 3.4% in 2024, 3.2% in 2025, and 3% for 2026.   

It noted that lingering inflation risks may still keep central banks in the region occupied, including the BSP.   

The debt watcher said the BSP’s key interest rate may stand at 6.75% by end-2023, indicating that the Monetary Board may deliver one more 25-bp rate hike at its December meeting.    

S&P noted the BSP may slash rates by 75 bps to 6% in 2024, before cutting further by 175 bps to 4.25% in 2025. The central bank is also expected to trim rates by 25 bps to 4% by end-2026.   

“With core inflation continuing to ease, the region’s central banks are unlikely to have to tighten monetary policy again. Still, given the pressure from higher-for-longer US interest rates, we expect no meaningful falls in policy rates for the next six months,” S&P said.   

Earlier this month, the BSP kept the key policy rate steady at a 16-year high of 6.5%. Including its off-cycle move in October, the BSP has hiked borrowing costs by 450 basis points since May 2022. 

Meanwhile, the US Federal Reserve kept the target Fed fund rate unchanged at 5.25-5.5% at its meeting this month. The US central bank has raised 525 bps from March 2022 to June 2023.   

The Monetary Board will meet on Dec. 14 to discuss policy, its last meeting for the year. — Keisha B. Ta-asan

AMRO cuts growth forecasts amid global headwinds

The Philippine economy is expected to grow below the government’s 6-7% target this year. — PHILIPPINE STAR/WALTER BOLLOZOS

THE ASEAN+3 Macroeconomic Research Office (AMRO) cut its Philippine gross domestic product (GDP) growth outlook for this year and for 2024 due to weak external demand and global headwinds.

In its Annual Consultation Report, the think tank said it expects the Philippine economy to expand by 5.6% this year, lower than the 5.9% forecast it gave in its Regional Economic Outlook Update in October.

“The Philippine economic outlook is clouded by various risk factors and challenges. In the short term, high inflation, economic slowdown in major trading partners, and volatility in global financial markets along with tighter financial conditions could pose risks,” AMRO said.

It also cited risks to long-term growth, such as scarring effects from the pandemic, slow infrastructure development, impact from climate change and natural disasters, and geopolitical tensions.

AMRO’s latest 5.6% growth projection would still be below the government’s full-year 6-7% target and slower than the 7.6% GDP expansion in 2022.

The Philippine economy expanded by 5.9% in the third quarter, bringing the nine-month average to 5.5%. Economic growth would have to reach at least 7.2% in the fourth quarter to hit the lower end of the government’s target.

“However, domestic demand is anticipated to remain robust, supported by continued improvement in labor market conditions, lower inflation, robust overseas remittances, and higher government infrastructure spending,” AMRO said.

For 2024, AMRO expects the Philippine economy to bounce back based on an “expected recovery in external demand.”

However, it slightly lowered its GDP growth forecast to 6.3% in 2024 from 6.5% it gave in October. This would fall short of the government’s 6.5-8% target for next year.

“In addition, the external services sector, particularly tourism, which will benefit from the improving local tourism industry, ongoing marketing campaign, and China’s reopening, coupled with merchandise exports, which will rebound from 2024 onwards, are expected to boost the economy,” it added.

HIGH INFLATION
Meanwhile, AMRO sees inflation averaging 6% this year, higher than the 5.5% forecast it gave earlier.

“Inflationary pressure will likely remain elevated as reflected in high core inflation. This is due to a positive output gap and second-round effects induced by increases in minimum wages and expectations of persistently high inflation,” it said.

Headline inflation eased to a three-month low of 4.9% in October from 6.1% in September. However, inflation breached the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target for the 19th straight month. For the 10-month period, inflation averaged 6.4%, still above the BSP’s 6% full-year forecast.

Core inflation, which excludes food and fuel volatile prices, further slowed to 5.3% in October from 5.9% in September. Year to date, core inflation stood at 7%

Meanwhile, AMRO cut its inflation forecast for 2024 to 3.6% from 3.8% previously. This is below the BSP’s 3.7% projection for next year.

“Headline inflation is expected to gradually ease in the fourth quarter of 2023 and 2024, primarily due to the high base effect and lower energy prices. In addition, a normalization in global supply-chain disruptions caused by pandemic lockdowns and heightened geopolitical tensions, and the recent stabilization of the exchange rate could provide some relief from inflationary pressures,” it added.

However, AMRO still cautioned that inflationary pressures may remain elevated due to the “positive output gap and second-round effects, especially from increases in minimum wages and expectations of persistently high inflation.” — Luisa Maria Jacinta C. Jocson

Brands embrace social media influencers as modern-day advertisers

PIXABAY

By Justine Irish D. Tabile, Reporter

VANEZZA GAIL V. HERNANDEZ, 24, bought a Squad Cosmetics eyeshadow palette from Shopee after it was recommended by a Filipino fashion influencer with 1.6 million followers on YouTube.

“Watching YouTube became a pastime for me during the pandemic, and I thought I should practice makeup,” she said in a Facebook Messenger chat. “I came across Rei Germar’s YouTube channel and got instantly hooked.”

Influencer marketing was limited to celebrities a decade ago, and you had to watch them on TV. These days, social media influencers from YouTube and Facebook to Instagram and TikTok have risen and enjoy a strong following from their tight-knit communities.

Influencers have revolutionized marketing strategies, with brands now embracing them as a major advertising tactic, consumer research and data analytics company Milieu Insight said.

The global market for influencer marketing was valued at $16.5 billion in 2022 and is expected to multiply 12 times to $199.6 billion by 2032, growing at a compound annual growth rate of 28.6%, according to Allied Market Research.

In the Philippines, 68% of Filipinos follow influencers for all sorts of advice, Milieu Insight said in a study in July. YouTube drew the most interest in the Philippines.

Beauty products were the top-selling category driven by influencer content, which is skewed toward females (56%) and Generation Zs or those aged 16 to 26 (46%).

“Many of [the influencers] subtly leverage their influence, seamlessly incorporating product placements into everyday content, such as makeup tutorials, get-ready-with-me videos or travel vlogs,” Milieu Insight said.

Carl Drexler D. Mendeja, a 24-year-old engineer from Manila, bought an umbrella and earphones endorsed by separate TikTok influencers.

“Influencer Jomar Yee said it’s durable. The way he advertised the umbrella was too much, swinging it back and forth like that. I couldn’t help but be enticed to buy it,” he said via Messenger chat.

Mr. Mendeja said he also buys products based on comments from other consumers on social media. Influencers also offer promotional codes that buyers can use while shopping online.

Milieu Insight’s study showed that Filipino women mostly buy beauty (41%), fashion (38%) and food and beverage (37%) products. Men buy tech gadgets (41%), food and beverages (36%) and fashion (30%).

“There are a ton of influencers now out there that are helping brands, especially the smaller ones, get exposure to a larger, more mainstream market,” Erik Paolo S. Capistrano, who teaches business at the University of the Philippines, said via Messenger chat.

Many of these smaller brands that can’t afford big celebrities rely on these social media influencers with loyal followers to help them sell their products, he said.

Granted, there could be trust issues with some influencers.

“Key reasons for lack of trust could be due to lack of knowledge and expertise about the products they endorse,” Sonia Elicia D, associate marketing director at Milieu Insight, said in an e-mailed reply to questions.

TRUST ISSUES
Some consumers also question the authenticity of a review, deceptive practices and inconsistent opinion on the part of some social media influencers.

“Many influencers are perceived as promoting products solely for monetary gain, leading to skepticism about their true feelings and experiences with the product,” Ms. D said.

Some influencers also fail to disclose whether some content is sponsored, blurring the line between genuine recommendations and pair promotions, she said.

There’s also a concern about oversaturation of sharing and the final return on investment from influencer marketing.

“This leads to audience fatigue, and many brands are still concerned about the final return on investment, which is not so easily measured,” she added.

To counter this, brands and influencers should practice effective audience targeting, stick to relevant content, diversify and use data.

Mr. Capistrano said legitimacy and credibility are the biggest issues with influencers, unlike well-known celebrities.

“It’s hard to say who is legit or not across different spectrums,” he said. “Celebrities have some degree of established credibility because they need to be good in their craft first before brands consider them for endorsements. Influencers, not so much. Anybody can be an influencer with enough content.”

“It’s much easier to lose credibility as an influencer especially in this era of ‘Cancel Culture,’” he said. “One incident, one bad PR, and you’re done or at least it’s very hard to bounce back.”

Since celebrities have established their reputations spanning years of hard work, it’s easier for them to bounce back, or it’s easier to brush aside controversies that hound them, Mr. Capistrano said.

“Influencers do gigs and stuff, but they’re still freelancers and project-based workers, working in environments that are so fragmented it’s hard to establish for sure who are the industry leaders,” he said. “With celebrities, you know who the A-listers are.”

The effectiveness of influencer marketing in driving direct sales is not significant, despite the rising number of influencers and 56% of survey participants following them, Milieu Insight said, based on a survey of 2,500 people in Southeast Asia.

Still, influencers’ sponsored content aids brand awareness and plays a pivotal role in the buyer’s journey, it added.

“Influencers have become trusted sources of information and recommendations for consumers across various niches,” the market research firm said. “When influencers authentically promote a product or service, they create a bridge of trust between brands and potential buyers.”

Ms. D said brands should pick influencers who have strong trust relationships with their audience.

“Use of data to monitor campaign effectiveness is also key, and adaptability to switch strategies quickly will also be important factors for success,” she added.

Mr. Capistrano thinks influencer marketing could boost short-term sales, but doubts it helps in the long term.

“Here’s the thing: For every good, legitimate and credible influencer, there are a hundred bad ones,” he said. “That alone is more than enough to make people pause about what brands and products to purchase.”

Some celebrities have learned to use vlogs and are very active on social media platforms.

Brands should hire influencers who are borderline celebrities — influencers who have established credentials. “Why? Because it’s a major sign of trustworthiness,” Mr. Capistrano said.

“The influencer market honestly needs a hard look in the mirror. My biggest beef with influencers is that a ton of them pretend that they are experts in life and that the entire world revolves around what they’ve experienced,” he said.

“Consumers also need to wake up and stop blindly following influencer suggestions and be more scrutinizing. Their bubbles and corners of the world are different from the majority,” he added.

Tight power supply expected to persist next year

EVENING_TAO-FREEPIK

TWO of the country’s largest electricity distributors expect the tightness in power supply to continue next year, although some relief may be provided by the completion and return to operation of some power plants.

“It’s still gonna be tight kasi wala naman bagong planta (because there is no new plant) except maybe the Excellent plant of San Miguel. It’s scheduled to be completed by the end of next year so ang pasok nun (it will come online by) 2025 pa,” Manila Electric Co. (Meralco) Chairman and Chief Executive Officer (CEO) Manuel V. Pangilinan told reporters last week.

Excellent Energy Resources, Inc. — a subsidiary of San Miguel Global Power Holdings Corp. (SMGPH), the power arm of conglomerate San Miguel Corp. — is putting up a 1,750-megawatt (MW) power facility in Batangas City.

Asked if the plant will be able to keep pace with the expected growth of the economy, Mr. Pangilinan said: “It’s always good to have surplus power.”

“If you don’t have a surplus capacity, you will face bouts of tightness which we don’t want to see,” he said about putting “permanent pressure on prices downward.”

“As a distributor, we want to see good margins of supply to demand,” he said.

Currently, Meralco is rebidding the procurement of its 1,800-MW power requirement, which was supposed to be supplied by Excellent and another SMGPH subsidiary, Masinloc Power Partners Co. Ltd.

The San Miguel units’ contracts with Meralco were terminated earlier this year. The Energy Regulatory Commission had approved the withdrawal of the application for the power supply deal as the agreed time frame to complete the required conditions had lapsed.

Aboitiz Power Corp. (AboitizPower) President and CEO Emmanuel V. Rubio said the country’s electricity supply next year might still be enough to cater to the growing demand amid the return to operations of the Ilijan natural gas-fired power plant.

“I think [supply will be] just like this year, although there’s going to be growth in demand, maybe 600 to 700 MW. Ilijan is offering so I think there would be ample supply,” Mr. Rubio separately told reporters last week.

The 1,200-MW Ilijan power plant of SMGPH has resumed operations and has been reintegrated into the grid in June after the fuel supply from the Malampaya gas field stopped.

The Batangas power plant went offline on June 5 last year following the ceasing of gas supply deliveries from the depleting Malampaya natural gas facility under the Service Contract 38 consortium.

“Although the forecast is El Niño, it’s still going to be tight, especially during summer, but I think we will have ample supply,” Mr. Rubio said.

“Maybe there will be times when diesel plants will be dispatched but it’s good that Ilijan is now running unlike in early 2022,” he said, adding that the “variable” would be hydroelectric plants also running to ease the situation.

Meralco is the main power distributor for Metro Manila and nearby areas. AboitizPower owns more than eight power distribution companies, including the country’s second and third largest.

AboitizPower has allotted P50 billion for its capital expenditure budget next year, which is mostly for the expansion and construction of its renewable energy projects. — Sheldeen Joy Talavera

Telcos seen to report better results in 2024 amid growing demand

PHILSTAR FILE PHOTO

By Ashley Erika O. Jose, Reporter

LISTED telecommunications and information and communications technology (ICT) companies are expected to post better results in 2024, driven by the strong demand for digital services and as firms roll out their expansion plans.

“The telco stocks — their earnings are up. Telcos will always do better. They continue to invest in their expansion. They will not invest billions in their expansion if they do not expect more subscribers,” Philippine Stock Exchange, Inc. (PSE) President and Chief Executive Officer Ramon S. Monzon said in an interview on the sidelines of the BusinessWorld Forecast 2024 economic forum last week

For the third quarter, all listed telecommunications and ICT companies recorded lower attributable net income despite recording higher revenues for the period. Still, almost all of them recorded better profits for the cumulative nine-month period.

“The Philippine ICT/telco industry is expected to continue to grow in [the fourth quarter] of 2023, driven by strong demand for digital services from both consumers and businesses,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Pangilinan-led PLDT Inc. reported P9.43 billion in attributable net income for the third quarter, down 12% from P10.71 billion a year earlier, citing a challenging economic environment.

In the third quarter, the company’s combined revenues rose by 1.9% to P52.32 billion from P51.35 billion in the same period last year.

Year to date, the company saw its attributable net income climb by 1.4% to P27.88 billion from P27.5 billion a year ago.

For the nine months to September, the company recorded combined revenues of P156.36 billion, up 2.8% from P152.13 billion in the same period last year, its financial report showed.

Globe Telecom, Inc. also recorded lower earnings for the third quarter, with its attributable net income declining by 27% to P4.97 billion from P6.81 billion a year ago.

It recorded consolidated revenues of P44.27 billion for the quarter, a 3.2% increase from P42.88 billion a year ago, amid strong service revenues.

The listed telecommunications and ICT companies’ growth will hinge on their expansion plans, Mr. Monzon said.

PLDT together with its wireless subsidiary Smart Communications, Inc. has committed to explore emerging technologies for its network enhancement.

In early November, Globe announced that it had secured a total of P12 billion loan which it will use to fund its capital expenditures as it also works to ramp up its 5G deployment.

For the third quarter, Converge ICT Solutions, Inc. logged an attributable net income of P2.08 billion, 3.7% lower than P2.16 billion last year. Its consolidated revenues increased to P8.89 billion, up by 5.5% from P8.43 billion last year.

Meanwhile, DITO CME Holdings Corp. trimmed its net loss to P4.29 billion from a loss of P5.9 billion. Its total revenues climbed to P3.11 billion, expanding by 54% from the P2.02 billion last year.

Next year, telecommunications and ICT companies are projected to deliver higher profits, Mr. Arce said, thanks to the expected growth in the industry.

“However, profitability will also be affected by a number of factors, including, but not limited to, the level of competition in the industry, the cost of network upgrades, and the regulatory environment,” he added.

Some catalysts that could drive growth in the industry will be the continued expansion of the country’s digital economy and the accelerated rollout of 5G technology, Mr. Arce said.

However, cybersecurity attacks may derail this projected growth as cyberattacks may persist and are also expected to increase in the coming years.

“Increased digitization efforts by the many businesses and industries, government, and other institutions would also benefit the industry,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The need to boost telco connectivity in many underserved areas is seen to help benefit the sector, Mr. Ricafort said, adding that these efforts would eventually increase firms’ consumer base as they work towards their digitization initiatives.

PSE chief says raising P200B at local stock market next year will depend on REIT listing

CAPITAL raising at the Philippine Stock Exchange (PSE) may not reach P200 billion next year, the bourse operator’s top official said.

Hindi natin kaya ang P200 billion (We cannot hit P200 billion),” PSE President and Chief Executive Officer Ramon S. Monzon told reporters when asked about capital raising next year.

“It would depend if the planned SM Prime Holdings, Inc.’s real estate investment trust (REIT) will push through because that could be big,” he said on the sidelines of a forum in Makati City last week.

“I expect that to be about $1 billion. We hope that it happens. We’ll see,” he added. 

Sy-led SM Investments Corp. (SMIC) said in August that it had deferred the record $1-billion REIT initial public offering (IPO) of its real estate unit SM Prime after assessing market conditions such as interest rates, inflation, and foreign exchange rates.   

Meanwhile, Mr. Monzon said that capital raising this year is expected to reach up to P110 billion. 

“We’ll end this year [with] about P105 to P110 billion,” he said.

The PSE recently disclosed that the total capital raised as of September this year was at P91.88 billion. More than half or 58.4% of the capital came from follow-on offerings, followed by private placements at 21.9%, stock rights offerings at 15%, and IPOs at 4.7%.

However, Mr. Monzon’s year-end projection is far from the expected P160 billion announced by the market operator in January.

The local stock market logged P110.29 billion in capital raised from primary and secondary shares last year, down 53% from the P234.48 billion raised in 2021.

Mr. Monzon previously said that the local bourse expects at least four IPOs next year from SM’s planned REIT and other companies engaged in sectors such as mining, industrial, and food. 

The PSE recorded a 19% jump in its nine-month net income to P575.65 million from P480.07 million last year led by a 210.7% climb in its investment income to P128.76 million. — Revin Mikhael D. Ochave

QCinema presents the best of Southeast Asia

THE QCINEMA International Film Festival ended this week, with its most elevated lineup since its eleven years of existence (and not just because this year’s theme was “elevated”).

What BusinessWorld took note of for this edition was the success that has befallen many of its Southeast Asian selections.

“This year, we welcomed over three times more foreign guests and international filmmakers compared to last year because of our programs,” Quezon City mayor Joy Belmonte said in a speech on closing night on Nov. 26.

Acclaimed films from the Philippines, Vietnam, Malaysia, Indonesia, Singapore, Myanmar, and many more graced big screens around Metro Manila from Nov. 17 to 26.

Asian Next Wave, QCinema’s main competition program, has long highlighted the work of emergent Asian auteurs. This year, eight films were selected to compete, three of which this writer was able to catch.

TIGER STRIPES
Amanda Nell Eu and her film Tiger Stripes won the Pylon for Best Picture at the QCinema awards night, adding to its accolades that include the Cannes Film Festival Grand Prix. Ms. Eu also took home the prize for Best Director.

It is also no wonder the film is celebrated — it provides a unique Malaysian voice for the coming-of-age body horror genre. Twelve-year-old Zaffan, who starts getting her period, finds that the transition from girlhood to womanhood is horrific, or at least becomes so since it is treated as such by society.

While the film is Malaysia’s official entry to the Oscars 2024 International Film category, it sadly faces censorship issues in its home country. A shame, be cause for teenage girls in a conservative setting, Zaffan’s story could be cathartic, from her innocent playfulness to her feral frustrations about people.

GITLING
Jopy Arnaldo took home the best screenplay prize for Gitling, which started its journey in Cinemalaya earlier this year and now rightfully takes its place among regional gems.

For using subtitles in a very unique, rewarding way, it deserves the screenplay nods it has gotten. Set in Bacolod, Gitling follows Jamie who is hired to be a translator for filmmaker Makoto. Mainly, Makoto speaks in Japanese while Jamie speaks in English, although she often uses her mother tongue Ilonggo and sometimes the national language Filipino.

Makoto and Jamie partake in this mishmash of language, coming from relationships that suffered from communication breakdowns. The two speak a lot and find themselves in romantic situations, and yet so much is left unsaid between them. And the subtitles fill the gaps!

INSIDE THE YELLOW COCOON SHELL
Finally, Pham Thien An’s Inside the Yellow Cocoon Shell, which won in QCinema’s cinematography category, injected the festival with a dose of calming, dreamlike meditation.

It places the (futile? confusing? meandering?) search for faith in its appropriate home in the slow cinema genre as a man travels from Saigon back home to a rural part of Vietnam where unanswered questions await.

While it is easy to get turned off by the religious talk, it does make sense in the context of the character trying to understand it all. Dinh Duy Hung’s cinematography has beautiful framing choices with lush landscapes and sources of light, letting viewers be both sleepy yet also transfixed.

Notably, the film will be added to Netflix on Dec. 11. — Brontë H. Lacsamana

Century Properties ‘cautiously optimistic’ for next year

LISTED property developer Century Properties Group, Inc. (CPG) expects to perform better in 2024, said its top official who remains cautious despite his optimism for the year ahead.

“Our outlook [for next year] is actually cautiously optimistic. There are many reasons why we believe it’s going to be a good year. Our affordable housing business is growing very rapidly. As you are probably aware, we’ve launched many projects,” CPG President and Chief Executive Officer Marco R. Antonio said in a media briefing last week.

“I think overall, 2024 should be a banner year for the company,” he said, describing the coming year as “better than this year.” 

From January to September, CPG logged a 13% increase in its net income to P1.3 billion while its revenues climbed by 10% to P9.7 billion.

“2023 is proving to be a very strong year for the company… We’re already reaching our pre-pandemic levels,” Mr. Antonio said. 

According to Mr. Antonio, the company’s commercial leasing business has been performing “above market” in terms of occupancy rates. 

“For commercial leasing, it is kind of a mixed bag,” he said, citing the challenges faced by the office sector such as the pandemic, the contraction of the Philippine offshore gaming operators or POGO market, and work-from-home arrangements. 

“With that said, I think our properties are performing above market in terms of both occupancies,” Mr. Antonio said.

“We don’t plan any new speculative office developments in the near future. We’re focusing our efforts into really filling up all of our current office and retail spaces,” he added.

On CPG’s retail business, Mr. Antonio said the company is looking at driving occupancy in retail spaces.

“I think there’s a lot to be excited about in retail. But specifically for Century City Mall, we’ve seen already the positive inflection point where we’ve been able to drive up the occupancy for the mall significantly this year, which we plan to continue next year,” Mr. Antonio said.

Based on its website, CPG’s office and retail spaces include Century City Mall, Century Diamond Tower, Century Spire Offices, and Asian Century Center BGC.

The company is also engaged in residential projects, hospitality projects, mid-income and affordable housing, and property management.

Shares of CPG at the local bourse were last traded on Nov. 24 at 30 centavos apiece. — Revin Mikhael D. Ochave

Federal Land bullish on year-end showing

PROPERTY developer Federal Land, Inc. is bullish about its year-end performance led by its residential portfolio, its top official said.

“We’re doing great. 2019 was our best year ever. And as of end-October, we’ve already exceeded 2019 numbers. We’re very optimistic about the year-end numbers,” Federal Land, Inc. President William Thomas F. Mirasol said on the sidelines of BusinessWorld’s economic forum in Taguig City last week.

“Our growth drivers continue to be what it was always been — it’s residential, particularly in the mid- and high-end [segments],” he added.

For next year, Mr. Mirasol disclosed that Federal Land is eyeing to launch developments in areas such as Mandaluyong City, Bonifacio Global City (BGC), Cebu, Pasay City, and Cavite.

“These [projects] are mixed-use. There is always a residential component and there will always be a bit of retail and commercial components,” Mr. Mirasol said. 

According to Mr. Mirasol, Federal Land launched 10 projects this year. Some of these projects are the second tower of The Grand Midori Ortigas residential project in Pasig City launched in July, the Federal Land Communities that offer multi-use developments, and the first Mitsukoshi mall in BGC.

Federal Land is the wholly owned property unit of Ty-led conglomerate GT Capital Holdings, Inc.

For the nine months through September, it logged a 176% increase in core net income to P1.9 billion while its total revenues rose 6% to P13.2 billion.

Shares of GT Capital were last traded on Nov. 24 at P560 per share. — Revin Mikhael D. Ochave

He will always kick a**

By Brontë H. Lacsamana Reporter

Movie Review
Enter the Dragon
Directed by Robert Clouse
QCinema International Film Festival —Restored Classics

BOTH martial artists and lovers of kickass combat in movies were hooked on Bruce Lee in the 1970s (and even beyond) for his legendary skill and charisma as a fighter and as an actor. This writer, having been raised by a father who practices martial arts and adores movies himself, was well aware of Mr. Lee’s enormous presence on screen and in the lives of many.

When the QCinema International Film Festival announced that Robert Clouse’s Enter the Dragon would be part of its Restored Classics section, getting tickets for it was a no-brainer.

An unprecedented collaboration between Hollywood and Hong Kong, the 1973 film places Mr. Lee in a fighting tournament organized by the crime lord Han (played by an entertainingly stereotypically villainous Shih Kien). With the help of fellow competitors Roper (John Saxon) and Williams (Jim Kelly), he sets out to bust Han’s operation.

For sure, much has already been said about one of the most influential action films of all time. It set the standard for many kung fu films, spy movies, and revenge tales to come.

A few things struck this writer while watching the restored version on the big screen. One was that the remarkable bodily presence of Bruce Lee just doesn’t get old, whether he is acting or fighting (damn, those well-defined muscles and those intense eyes!). It is clear that his movies are a product of an ardent love for martial arts, reaching fans even today every time his character engages in a fight sequence or firmly reiterates his philosophies.

Another striking thing is the image of Hong Kong that this film captures. The floating slums and boats on Aberdeen Harbour, for example, paint a vivid picture of a place that no longer looks like that. On the big screen it conveys the awesome sense of the characters coming together to face the unknown.

However, there’s no doubt that younger people reliving this classic will mainly be viewing it given its revered placement in cinema history. It exists now as the bedrock for many more forms of media that followed, ones that today’s audiences grew up on, from Kill Bill to John Wick (and yes, now you understand why every fighting game MUST have a Bruce Lee type character).

Not all of its elements stand the test of time either — the martial artists having their pick from a lineup of women? The cross-dissolve to transition between scenes recalling the past? That slick, funky score by Lalo Schifrin? It’s stuff you definitely don’t get from movies today.

In a recent trip to Hong Kong, this writer made a few stops to prepare for the big-screen rewatch of the classic. These include Bruce Lee’s statue in the Avenue of Stars, which many tourists visit to this day, and a pop-up exhibit on the legendary martial artist at the Hong Kong Heritage Museum in Sha Tin.

While Enter the Dragon exists now as some cultural artefact to draw inspiration and quote from, its allure as a kickass piece of entertainment still rings true. It is a timeless showcase of jaw-dropping fight choreography, silly plot points, and inspired set pieces like the mirror room towards the end.

This writer imagines her father in 1973, then in his late teens sitting on the stairs of a packed movie theater staring up at the screen in awe. She thinks back to the many teenagers at the Bruce Lee exhibit making TikToks of each other imitating his fighting poses next to vintage posters and action figures.

Mr. Lee’s most iconic movie, sometimes looking like a parody of itself, still succeeds at freezing him in time at his pinnacle, never to grow old or forgotten.