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NG’s use of GOCCs’ excess funds flagged

PNA/JOAN BONDOC

By Kyle Aristophere T. Atienza, Reporter

BUDGET ANALYSTS on Monday flagged the National Government (NG) for diverting excess funds from state-owned companies, noting that the move may compromise their services while the funds may likely be used by politicians as the 2025 polls near.

The move is a populist approach to addressing the fiscal situation, with the government refusing to push for new taxes despite implementing new programs and projects, they added.

However, the Department of Finance (DoF) in a statement defended the move, saying that tapping “unused and idle” funds of GOCCs is a “more prudent fiscal option than borrowing more or imposing taxes.”

Data from the Bureau of the Treasury (BTr) showed that the Philippine Health Insurance Corp. (PhilHealth) and the Philippine Deposit Insurance Corp. (PDIC) in May remitted P20 billion and 30 billion, respectively, to the NG — thanks to an overlooked provision in the 2024 national budget law authorizing a cash sweep from government-owned and -controlled corporations (GOCCs).

Zy-za Nadine M. Suzara, a public budget analyst and former executive director of policy think tank Institute for Leadership, Empowerment, and Democracy, said the move should be a cause for public concern since it “compromises their ability” to deliver their mandated services.

Initially, the Executive branch requested only P281.91 billion in unprogrammed funds in the then-proposed 2024 national budget.

But in the 2024 General Appropriations Act (GAA) or the final version of the national budget that President Ferdinand R. Marcos, Jr. signed in December 2023, unprogrammed funds ballooned to P731.45 billion, prompting several legislators to file a case before the Supreme Court. The case is still ongoing.

From the usual three sources of unprogrammed funds such as excess revenue collections, new revenues from tax or nontax sources, and approved loans for foreign-assisted projects, the 2024 GAA also included fund balance of GOCCs with consideration of their disbursement in previous years.

“Those funds were appropriated for a reason. The solution to poor spending is not to keep taking out the funds but to improve the capacity of institutions to efficiently deliver their respective mandates,” Ms. Suzara said.

She noted tapping into the funds of the GOCCs is very similar to what legislators initially wanted to do in the original version of the Maharlika Investment Fund, which received seed funding from the Land Bank of the Philippines and the Development Bank of the Philippines.

“This is in fact worse than the earlier version of Maharlika because it gives blanket authority to the National Government to do a cash sweep of just about any GOCC that’s unable to disburse funds,” she explained “At least in Maharlika, the GOCCs were identified in the bill.”

Ms. Suzara said if GOCCs continue to underspend, then it is very likely that they will remit more funds to the Treasury to finance the long list of items under unprogrammed appropriations in the 2024 budget.

“It is ironic that budget items in the unprogrammed appropriations appear to be more of a priority as election nears when in reality, the unprogrammed appropriations is supposed to be just a standby fund for things that aren’t funded in the programmed appropriations,” she added.

“If this is left unchallenged, then we can expect this to continue as the national budget grows annually.”

Economic managers are proposing a P6.352-trillion national budget for 2025, a 10% increase from this year’s P5.768-trillion budget.

Cielo D. Magno, a professor at the University of the Philippines School of Economics who had served as Finance undersecretary under the Marcos Jr. administration, said what the Congress did at the bicameral conference for the 2024 national budget was “unconstitutional” because it was in effect “trying to amend existing laws and charters of GOCCs by inserting a provision in the GAA to finance the unappropriated portion of the GAA.”

“Congress expanded the budget significantly through the unappropriated portion and tried to find the money to finance it by getting the GOCCs’ reserved fund,” she said in an e-mail. “This happened during the bicameral meeting, not during the actual deliberation/consultation of the proposed 2024 budget.”

The move shows the “opaqueness” of the budget process, the opportunities for abuse, and the lack of accountability, she noted.

In line with this year’s GAA, the DoF last February issued Circular 003-2024 which set the guidelines for financing unprogrammed appropriations sourced from the fund balance of GOCCs.

Citing the circular and the GAA, the DoF asked the PhilHealth to remit its unutilized funds worth P89.9 billion to the Treasury.

The landmark Universal Health Care (UHC) Act mandates the state insurer to use its excess funds to boost the benefits of its members and reduce the amount of their annual contributions.

“No portion of the reserve fund or income thereof shall accrue to the general fund of the national government or to any of its agencies or instrumentalities, including government-owned or controlled corporations,” according to Section 11 of the UHC law.

‘DOES NOT AFFECT VIABILITY’
The DoF defended the move to transfer funds from PhilHealth and PDIC to finance unprogrammed appropriations.

“The move does not affect the viability of participating corporations. It does not impair their delivery of services,” it said.

The DoF said PhilHealth and PDIC’s respective boards “approved” the return of excess and unused funds. “The result promotes the common good, based on the list of recipients identified in the national budget.”

It also noted that in the case of PhilHealth, “unused government subsidies are not part of its reserve funds, nor income that is being restricted by the UHC Act to be used by the National Government as a general fund.”

Former Department of Health advisor Antonio J. Leachon said in a statement that excess PhilHealth funds that will be returned to the unprogrammed fund of the national budget are revenues from taxes on tobacco, vapes, alcohol, and sugar-sweetened beverages, “which are specifically earmarked for health programs.”

“It is alarming that despite having excess funds, PhilHealth has yet to comply with the provisions in Section 11 of RA 11223,” he said.

PhilHealth’s reserve fund hit P463.7 billion in 2023.

Ms. Suzara said that in the case of PhilHealth, private hospitals as well as direct and indirect contributors are affected by the NG’s use of its excess funds.

Most vulnerable are indirect contributors such as indigents, beneficiaries of the government’s conditional cash transfer program or the Pantawid Pamilyang Pilipino Program, senior citizens, persons with disabilities, those sponsored by local governments and other Filipinos aged 21 years old and above without capacity to pay premiums, Ms. Magno noted.

Ms. Magno said PhilHealth beneficiaries are supposed to be getting expanded services from the state insurer but it’s not happening “because instead of pressuring and reforming PhilHealth, we are defunding it.”

Lawmakers who were able to insert their pet projects for funding under unprogrammed appropriations are the gainers, she added.

Ms. Magno described the NG’s act of depriving GOCCs of their excess funds as “populist,” saying it has refused to look for other sources of revenues while “reducing the budget for important programs like PhilHealth.”

“But [it has] continuously increased programs and projects that shouldn’t have been prioritized like the confidential and intelligence funds, and the insertions of congressmen and senators,” she said.

“Misplaced priorities, definitely not for the benefit of the Filipino people.”

Finance Secretary Ralph G. Recto has reiterated there will be no new taxes under the Marcos administration.

“It is difficult for civil society and the media to monitor how the National Government is using funds from the GOCCs because there is no real-time reporting of this,” Ms. Suzara said, adding that while the Department of Budget and Management and the Treasury bureau consistently upload reports, they only contain aggregate figures.

“How do we know where the funds are funneled? Which localities or districts benefit? What projects are funded?” she asked. “We will find out about these things only after the Commission on Audit does its audit.”

She urged the Marcos administration to proactively report how the funds from GOCCs are used through a dashboard.

Ms. Magno said she and her colleagues are planning to question the validity and constitutionality of the insertions in the GAA and the DoF Circular 003-2024.

“We are going to file a petition before the Supreme Court,” she said.

PHL likely to grow by 5-6% this year — House think tank

People shop for school uniforms and supplies at a the Commonwealth Market in Quezon City, July 14, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio

THE GOVERNMENT of President Ferdinand R. Marcos, Jr. might have done enough pump-priming and should let the private sector take on a bigger role in boosting the economy, according to a congressional think tank.

“The resilience and ingenuity demonstrated by Filipinos, particularly in crises, should serve as a reminder that the government can trust the private sector to do its part in growing the economy. To realize this potential, policy makers must prioritize providing a favorable environment for businesses to thrive,” the Congressional Policy and Budget Research Department (CPBRD) said in a report on Monday.

“This includes lowering regulatory burdens, improving infrastructure, investing in education and skills development in areas that offer the highest economic returns, and fostering competition,” it added.

The Philippine economy would probably grow by 5.02% to 6.17% this year, compared with the government target of 6-7%, the CPBRD said, noting that heightened inflationary pressures, tightening fiscal constraints, weak capital formation and anemic growth in critical productive sectors could further hamper growth.

The think tank said inflation is still a “large and growing threat to economic growth and stability.”

“If prevailing inflationary pressure remains unabated, the likelihood of an economic slowdown is heightened,” it added.

For the first six months of 2024, headline inflation averaged 3.5%, slightly higher than the central bank’s 3.3% full-year forecast.

“Anticipated shifts in regional and global value chains, tightening fiscal constraints, growing geopolitical instability, and the Philippines’ vulnerability to climatic shocks (i.e., a single typhoon that hits Central Luzon has the outsized potential to severely aggravate existing agricultural productivity issues) are other potential threats on the horizon,” the think tank said.

The CPBRD expects growth momentum to continue in the second and third quarters, before decelerating in the fourth quarter.

In a low-growth trajectory, the think tank sees gross domestic product (GDP) expanding by 5.05% in the second quarter, 5.7% in the third quarter and 3.56% in the fourth quarter.

“The low-growth trajectory can be viewed as the expected scenario if inflation accelerates and begins eroding productivity — sooner rather than later,” it said.

On the other hand, the CPBRD’s high-growth scenario sees GDP expanding by 6.3% in the second quarter, 7.04% in the third quarter and 5.35% in the fourth quarter.

“While the Philippine economy faces significant headwinds, it also has the potential for robust and inclusive growth. The path forward necessitates a balanced approach that addresses immediate challenges while laying the foundation for long-term sustainable development,” the CPBRD said.

The think tank said a strong partnership between the government and the private sector can help the Philippines realize its full economic potential.

The Philippine economy faces both challenges and opportunities in the current global economic landscape, it said.

“Exploiting its strengths in services, manufacturing, and agriculture, the country can position itself as a competitive player in emerging regional markets — and eventually the global market,” it said.

“This, however, requires a collaborative effort from both the public and private sectors to build robust markets, foster innovation, and leverage emerging technologies.”

Meanwhile, Security Bank Corp. Chief Economist Robert Dan J. Roces said the government’s 6-7% GDP growth target is not out of reach despite elevated interest rates and high inflation.

“Rising remittances and a potential infrastructure spending boost offer promising signs,” he said in a Viber message.

“Streamlining regulations, investing in vital infrastructure, and nurturing a skilled workforce can unlock private sector potential beyond restrictive requirements,” Mr. Roces said adding that the Marcos administration’s focus on infrastructure and public-private partnerships is a step in the right direction.

The government should also limit its intervention in the economy to allow the private sector to stimulate the local economy, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila, said in a Facebook Messenger chat.

“The economy is so dependent on government expenditures that any underspending causes a negative effect on growth,” he told BusinessWorld. “With private consumption and investment declining, the government in turn has crowded out the private sector and hence not been able to meet its targets.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said Philippine GDP growth could normalize to around 5.5-6.5% annually in the coming years.

In a Viber message, he said it would be possible for the Philippines to achieve 6% GDP growth in the following quarters due to the continued recovery of businesses and increases in government spending in preparation for the 2025 midterm elections.

A one-stop shop for sneakers, LEGO, Funko Pop, and NBA cards

TOKIASIA.COM

Toki’s founders left their jobs at GCash to start the safest, most trustworthy online marketplace for collectibles in the Philippines.

THE THRILL of finding and obtaining rare, coveted shoes is what bonds the sneakerhead community. Sleek running shoes, chunky and colorful Japanese-style shoes, and classic Air Force Ones worn by many a basketball player are just a few of the many types of sneakers a collector might want.

Frederic Levy, Zoe Ocampo, and Jules Jurado, co-founders of Toki, the largest online sneaker marketplace in the Philippines, found that the average collector doesn’t only collect one kind of thing. In the country, epic constructions like Star Wars spacecraft and sports cars, all made of LEGO blocks, are the second biggest collectible category after sneakers. This is followed by the vast array of cute action figures depicting pop culture characters known as Funko Pops.

The fourth is trading cards, particularly NBA cards, reflecting “a very Filipino-specific situation,” according to Mr. Levy, who is also Toki’s chief executive officer. The Philippines is known to be the most basketball-crazy country in Southeast Asia.

Toki, a new e-commerce platform that started in 2023, has thus far focused on these four categories. The three founders recently toured the media around their headquarters in mySTAY BGC East, Bonifacio Global City, Taguig.

The start-up received around P105 million in seed funding from venture capital firms Kaya Founders and Foxmont Capital Partners. Notable investors from the tech space are Anthony Oundjian from the Boston Consulting Group, Brian Cu from SariSuki, Ernest Cu from Globe Telecom, and Bigboy Cheng of Uratex who is a renowned sneaker collector.

With more than 100,000 users, around 200 sellers, and at least 500 livestream auctions so far — revolving around over 100,000 different products (about 35,000 of which are sneakers) — Toki aims to “bring a more seamless experience to the collectors’ journey, from discovery to purchase.”

Chief executive officer Mr. Levy described to BusinessWorld what a collector had to go through before Toki.  “You have to find your item and your seller on Facebook, negotiate with him on Viber, pay through GCash, handle your delivery or your logistics through Lalamove or Grab. And at the end of all of that, accidents can happen, including fake items.

“Every collector is scammed regularly, even seasoned collectors. It always happens,” he said.

And that’s why he, Ms. Ocampo, and Mr. Jurado decided to leave their jobs at GCash to start the safest, most trustworthy online marketplace for collectibles in the Philippines.

CURATED SELLERS
Toki’s main value proposition is its strict verification process that ensures every seller on the platform is authorized to sell collectibles. Unlike other online marketplaces of the world that are basically open to anyone, Toki has a scoring system for verifying sellers.

According to Ms. Ocampo, the chief product officer, this entails ocular visits to view the seller’s stocks before onboarding them, as well as checking the items before sending them out for delivery.

“We want to make sure that when collectors buy an item from Toki, they will have zero doubt that this item is authentic,” she told the press during the tour.

While the Filipino market for collectibles is a large one — comprising 37% of the population — Toki prides itself in building around the warm, tightknit community that surrounds collecting toys and sneakers.

It’s a platform that encourages livestream auctions, said chief strategy and data officer Mr. Jurado. “The sellers build a connection with the collectors, and it becomes a more enjoyable experience,” he said.

GOING PHYSICAL
What’s next for Toki is a physical extension of these offerings, something the platform already started working on by joining Toycon 2024 in June.

“An online-to-offline experience would provide services like authentication or grading of an item,” said Mr. Levy. “We also envision this kind of physical extension as a destination venue, kind of like a concept store. When you arrive, you can buy some collectibles, maybe see some art pieces, or enjoy the community and trade with them.”

In the meantime, the three founders teased that the next product they’re planning to launch this year is fashion. This means designer clothes, streetwear brands, and vintage pieces.

“We see that there is a lot of overlap of this category with others. We have a lot more in store for Filipino collectors,” he added. — Brontë H. Lacsamana

To be wrapped in warmth

By Brontë H. Lacsamana, Reporter

Album Review
Where the Butterflies Go in the Rain
Raveena
Moonstone Recordings LLC/Empire Distribution

THE BLEND of dance-friendly, Western R&B with Indian instrumentation may be what sets Indian-American musician Raveena apart from the other indie pop singers that arose in the mid-2010s. But with her latest outing released just a month ago, Where the Butterflies Go in the Rain, she proves that it is also the unyielding light and warmth she fills her music with, despite all the harshness going on in the world right now, that is unique to her.

Known to be a more experimental, oftentimes gritty, and more “authentic” genre as compared to mainstream pop, the psychedelic indie, soul, and R&B sounds that Raveena plays with have never felt lighter.

Like her two previous albums, Where the Butterflies Go in the Rain showcases dance-able tracks and heartwarming ballads, but dives deep into themes of love, maturity, comfort.

Raveena’s vocals are airy and sweet, accompanied by the electric sitar, as she likens her partner to a butterfly and tells of love that may soon disappear. “Watching smoke turn into clouds from the backseat / I pray this good thing don’t run away from me,” she sings in the album’s first track, “Pluto.”

The next one is just as soothing and coated with her warm, honeyed voice. “Lucky” once again dwells on a deep, feminine love. Though not as engaging as the first song, the beautiful, almost Indian-style guitar plucking paired with the vocals makes for a relaxing background song.

“Rise” is the third track and a welcome shift in instrumentation, with steady drum beats and lush layers of piano and saxophone melodies. Striking, calming, and smooth like a good cocktail, it’s a poignant tune that blends gospel and jazz influences as Raveena soulfully sings of peace for children caught amid the terrors of war.

The fourth track, “Every Color,” is a short yet cute and well-layered one that evokes South American guitar and drums, sounding slightly tropical. “Give me sound of lovers, give me end of winter, give me every color,” the lyrics go.

“Baby Mama” follows with a sensual, playful mood, as Raveena sings “Come on over and kiss me / Come on over and love me / Come on over and make love.” It’s a fun transition track that leans into R&B’s often sexual undertones.

The sixth song, “Junebug,” is a collaboration with rapper JPEGMAFIA (known by fans as Peggy), whose verse mixes surprisingly well with the softness of Raveena’s style. They dwell on a summer love that may be a scam, with Peggy’s verse going “Think I’m only present for the summer, that’s pretending me / I’m not above it, we smother each other’s energy.”

An easy favorite is “Lose My Focus,” a repeatable track that begins with a harp-filled hook and a strong bridge. This is Raveena taking R&B to the most soothing, sweetest heights.

Raveena then delivers a simple ballad, “Kid,” that has a classical sitar open and leads into a standard acoustic guitar. “Can’t complain, but the hard times had good times that can’t compare / It’s different, but that kid is always here,” she sings as a dreamy ode to childhood.

The 10th track, “16 Candles,” is a collaboration with Ganavya, who provides airy backup vocals. It comes off as a country song with sparse instrumentation, a slightly weaker track but with its own charms as the two singers revisit teenage nostalgia.

“Smile For Me” is a cute, upbeat pop song that has Raveena sing that “seasons change; we still remain.” Closing the album are “Little Bird” and “Water,” an acoustic pairing with unique electronic production.

Raveena’s gentle strength truly flies high as she traverses genres, evoking the timeless talents of Stevie Wonder, Fleetwood Mac, and Corinne Bailey Rae.

In a Reddit thread, she reveals to her fans that she set out in making this album “with the intention to create a body of work that sounded like sunlight and pure love.” There is no doubt she has succeeded, with her latest offerings a perfect playlist for calming, mundane morning or evening routines, and proof of the transcendent power of music.

Where the Butterflies Go in the Rain is out now on all digital streaming platforms.

Entertainment News (07/16/24)

GMG Productions reveals cast of SIX the Musical

THE CAST in the upcoming SIX the Musical International Tour has been announced by its producers — Kenny Wax, Wendy and Andy Barnes, and George Stiles, in association with GMG Productions. SIX tells the extraordinary story of the six wives of King Henry VIII, who step out of the shadow of their infamous husband and reclaim their own narratives in this musical. The company of queens include Billie Kerr as Catherine of Aragon, Yna Tresvalles as Anne Boleyn, Liberty Stottor as Jane Seymour, Hannah Victoria as Anna of Cleves, Lizzie Emery as Katherine Howard, and Eloise Lord as Catherine Parr. They are joined by alternates Izzy Formby-Jackson, Lorren Santo-Quinn, Erin Summerhayes, and Milly Willows. Written by Toby Marlow and Lucy Moss, the modern pop-inspired musical brings these historical figures to life. It will run in Manila for a strictly limited season from Oct. 4 to 20 at The Theatre at Solaire, with tickets on sale exclusively through TicketWorld.

GMA unveils its YouTube channel

GMA Network’s film production arm, GMA Pictures, has launched its own YouTube channel this July. The channel, accessible at www.youtube.com/@GMAPictures, offers many of its popular films such as The Road, Mulawin the Movie, Just One Summer, My Kontrabida Girl, and I Will Always Love You, among others. Also to premiere on the YouTube channel are Ang Panday, Dance of The Steel Bars, I.T.A.L.Y., In Your Eyes, My Lady Boss, The Promise, When I Met U, Tween Academy, You To Me Are Everything, Boy Pick-Up The Movie, Patient X, and Temptation Island. Over 300 movies are expected to be available on the GMA Pictures channel, spanning genres such as action, drama, comedy, romance, adventure, suspense, and historical films.

Paolo Sandejas signs with Sony, releases 1st single

RISING original Pilipino music (OPM) star Paolo Sandejas is the newest addition to Sony Music Entertainment. One of the performers at the recently concluded Wanderland Music and Arts Festival 2024, Mr. Sandejas continues his musical journey with “sirens,” the first single off his upcoming solo album and his first under the new label. He penned the moody alt-pop track based on the idea of “finding home in a person.” It is also a reunion project with Xergio Ramos, who was responsible for producing a previous track called “Someone New.” The new single is out now on all digital music streaming platforms.

Wi Ha Jun fan meet tour to include Manila

SOUTH Korean actor Wi Ha Jun has announced that he will be holding a fan meet in Manila. Called A Wively Day, it will be held on Sept. 15 at the New Frontier Theater in Cubao, Quezon City. Presented by Ovation Productions and Applewood, it will give Filipino fans access to the actor, known for his roles in Squid Game, Gonjiam: Haunted Asylum, Something in the Rain, Romance Is a Bonus Book, and the ongoing series The Midnight Romance in Hagwon. He first visited the Philippines in May of 2023. His fan meeting tour in 2024, A Wively Day, will also be held in Seoul, Tokyo, Osaka, Bangkok, and Jakarta. Tickets for the Manila leg will be available at ticketnet.com.ph. Ticket prices have yet to be announced.

The Knobs releases new single

FILIPINO band The Knobs has released their latest single, “Oh Giliw Ko,” a love song about the joy of commitment in marriage. The pop-rock track was written by the band’s vocalist and bassist, Jayr Corre, who penned it for his own wedding. The single is also the band’s first release in 2024, currently featured on the New Music Friday playlist on Spotify. “Oh Giliw Ko” is out now on all digital music streaming platforms.

Analysts: Potential foreign takeover to boost DITO CME’s operations, financial position

By Ashley Erika O. Jose, Reporter

THE POTENTIAL acquisition of a majority stake in DITO CME Holdings, Inc. by a foreign group will likely bolster the company’s financial health and operational capabilities, according to some analysts.

“Additional equity is very important because DITO’s telecommunications business is capital intensive and its operating cash flow remains negative,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message on Sunday.

In a regulatory filing, DITO CME said there have been no definitive agreements yet regarding the majority takeover of DITO CME. 

“The company will make the necessary disclosures and seek the appropriate regulatory approvals if such a transaction is executed, as required by the rules of the Securities and Exchange Commission and the Philippine Stock Exchange,” the company said in a regulatory filing last week. 

DITO CME is the operator of DITO Telecommunity Corp.

In 2023, DITO CME said it had entered into a subscription agreement with Summit Telco Holdings Corp. for P3.3 billion, allowing the issuance of 3.3 billion common shares to the company priced at P1 each. 

Summit Telco Holdings is a wholly owned unit of Singapore-based Summit Telco Corp. Pte. Ltd., which is an existing shareholder of DITO CME.

Summit Telco Holdings is a newly formed holding company, incorporated in October 2023.

According to DITO CME’s regulatory filing in December, Summit Telco Holding’s subscription to DITO CME’s shares is its first business venture since its incorporation. 

Last year, another unrelated third-party company, Xterra Ventures Pte. Ltd., subscribed to DITO CME shares.

Xterra Ventures makes up 3.76%, or 610 million, of the firm’s 16.235 billion issued and outstanding common shares, which were placed via private placement out of the company’s unissued authorized capital stock.

Summit Telco Corp. now accounts for around 8.14% of DITO CME’s outstanding shares, while its unit, Summit Telco Holdings, holds 16.89%, with Udenna Corp. remaining the biggest shareholder with a 54.77% stake but lower than its previous 65.9% stake before the entry of the new investors.

“DITO needs deep-pocketed major shareholders that can provide significant financial support to the company. If it is able to find new investors who can commit the necessary equity funding, then that should be positive for the company in the immediate term,” Mr. Colet said. 

Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel said a change in majority shareholders might boost confidence, citing the financial struggles of its current majority shareholders.

“While DITO CME has stated that no definitive agreements have been made, the substantial interest shown by Summit Telco suggests potential significant developments,” he said in an e-mail on Monday.

He said additional capital from foreign investors would help ensure sustained financial support for DITO CME, allowing it to achieve long-term growth and competitive advantages in the market. 

“Additional equity from a major shareholder like Summit Telco [Holdings] is crucial for DITO CME. The telecommunications sector requires substantial capital investments for network expansion, technology upgrades, and service enhancements,” Mr. Manuel said. 

For his part, BDO Capital & Investment Corp. President Eduardo V. Francisco does not anticipate a major buyout of DITO’s stake. 

“[I] don’t think it (the majority takeover) will happen. They bought less than three billion shares, and I think the total is almost 20 billion,” Mr. Francisco said in a Viber message.

Earlier this year, the company said it was setting aside up to P30 billion for capital expenditures this year, mainly for the network rollout of its unit, DITO Telecommunity. 

For the first quarter, DITO CME saw its attributable net loss widen to P4.11 billion from P336.67 million in the comparable period a year ago, despite posting higher gross revenues for the period. 

According to the company’s financial statement, the company recorded a gross revenue of P3.78 billion, 61.5% higher than P2.34 billion previously.

This comes after its gross expenses ballooned to P7.04 billion, up 31.1% from P5.37 billion in the same period last year.

On Monday, shares in the company closed one centavo or 0.49% lower to end at P2.04 apiece.

Shannen Doherty, 90210 and Charmed actress, 53

Shannen Doherty and Luke Perry in a publicity still from Beverly Hills 90210. — IMDB

LOS ANGELES — American actress Shannen Doherty, best known for her role as high school student Brenda Walsh on hit 1990s television drama Beverly Hills, 90210, has died at age 53 following a years-long battle with cancer.

Ms. Doherty, who had been public about her treatment for breast cancer, died on Saturday, publicist Leslie Sloane said in a statement on Sunday.

“The devoted daughter, sister, aunt and friend was surrounded by her loved ones as well as her dog, Bowie,” Ms. Sloane said in the statement. “The family asks for their privacy at this time so they can grieve in peace.”

Ms. Doherty disclosed in 2015 that she was undergoing treatment for the disease. In 2023, she had a brain tumor removed and revealed that the cancer had spread to her bones.

The actress, who had previously starred in the movie Heathers, gained widespread popularity on 90210 for her portrayal of Brenda, an honor roll student from Minnesota who struggled to fit in with her classmates in the wealthy zip code.

Her character on the show became entwined in a love triangle with Dylan McKay (Luke Perry) and Kelly Taylor (Jennie Garth). In real life, Ms. Doherty clashed with Ms. Garth and other castmates and left 90210 during its fourth season in 1994. The show continued through 2000 without her.

In 1998, 90210 producer Aaron Spelling cast Ms. Doherty in the supernatural series Charmed as Prue Halliwell, the oldest of three sisters with magical abilities. The show was a hit but also subject to reports of behind-the-scenes turmoil.

People magazine called Ms. Doherty “the iconic ‘bad girl’ of the nineties,” citing her reputation for partying, turning up late on sets and feuding with actors — and her bosses.

In 2023, on a podcast called Let’s Be Clear with Shannen Doherty, the actress said she took “full responsibility for her actions” and acknowledged her behavior “would get a little carried away” when she was frequenting nightclubs in her early 20s.

She also said she spoke up more than other women working in television at the time, telling Mr. Spelling and others when she thought a script needed improvement.

“I was raised to have an opinion, and that my opinion should be valued, so I just kept on pressing up against that machine, up against men who didn’t really want to hear my opinion,” she said on the podcast.

Later, “I learned the simple art of diplomacy. I learned that there might be a nicer way to say some things,” she said.

The actress reprised the role of Brenda for 90210 reboots in 2008 and 2019 and said she and Ms. Garth had reconciled after the two became adults and left their teenage conflicts behind.

Ms. Doherty’s co-stars paid tribute to her on Sunday.

“She was a force of nature and I will miss her,” Jason Priestley, who played Ms. Doherty’s brother on 90210, said on Instagram. “Sending love and light to her family in this dark time.”

Charmed actor Rose McGowan said Ms. Doherty “had the heart of a lion.”

“My head bows to this warrior on her journey home,” Ms. McGowan wrote on X.

Ms. Doherty was born in Memphis, Tennessee, on April 12, 1971, and began acting as a child. At age 11, she played Jenny Wilder in the final season of TV classic Little House on the Prairie.

In 1988, Ms. Doherty was cast in the dark comedy film Heathers, which became a cult classic.

Ms. Doherty was married three times, most recently to photographer Kurt Iswarienko. She filed for divorce from him in 2023. — Reuters

PHL semiconductor exports outlook grim for 2024 — SEIPI

REUTERS

PHILIPPINE exports of semiconductors and electronics are expected to decline this year amid soft demand, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said on Monday.

SEIPI President Danilo C. Lachica said that while there are positive indicators, projections suggest that the industry’s exports may still decrease compared to last year’s figures.

“We’re still on a 10% contraction projection, although there are signs of improvement… because if you project it throughout the year, if you linearize it, it’s at $45 billion, which is still lower than $46 billion in 2023,” he said at a forum.

He said that although some industry groups project double-digit growth, it will not be the same case for the Philippines due to its product mix.

“Because of our product mix in the Philippines compounded by the inventory correction, we’re even hoping we can just reach our 2023 levels, but conservatively, when we talk to our board members, the big multinationals, the projection is a 10% contraction,” he said.

Preliminary data from the Philippine Statistics Authority showed that electronics exports totaled $3.56 billion in May, representing a 5.1% decrease from the $3.75 billion seen in the same month last year.

This brought exports of electronic products in the first five months to $17.64 billion, up 12.7% from the $15.65 billion seen a year prior.

However, Mr. Lachica said that SEIPI’s board is due to revisit its industry projection by the fourth quarter.

“We will let you know if we see an upsurge, as we usually adjust (our projections) by the fourth quarter after the orders for the Christmas season come in. But right now, the demand is still soft,” he said.

According to Mr. Lachica, the demand for Philippine electronic products is still soft due to inventory correction and product mix.

“One of the major reasons is inventory correction, and we haven’t really completely dissipated the excess inventory last year,” he said.

“Next is the product mix; if you are supplying to Nvidia and Broadcom, you can expect double-digit growth, but because of what we have here, which resulted from the previous administration’s initiative to do incentives rationalization, we lost a lot of opportunities in terms of investment in new products,” he added.

Mr. Lachica said that the Philippines was not able to secure investments in new products, which is why the country was stuck with legacy products.

He added that the demand for the country’s electronic products could also be impacted by the Trump assassination attempt, but noted that the US is still a top electronics export destination.

“I don’t really see it having a major impact right now unless it worsens or escalates because the US is still a major export destination, accounting for around 10%,” he said.

“The problem is that we still do not have a trade agreement with them. And because there’s this trade agreement compliance, some of the products being made here have restrictions in the US. So, we’ve even actually lost some customers because we don’t have that,” he added.

However, besides the volatility in US elections, he said that the Philippines should be more concerned with what it is doing within its shores.

In particular, he said that SEIPI welcomes the government revisiting the Corporate Recovery and Tax Incentives for Enterprises Act to remove the value-added tax on constructive exports and restore the 5% gross income earnings and the autonomy of the Philippine Economic Zone Authority (PEZA).

Mr. Lachica said that restoring the autonomy of PEZA will help in investment promotions as it will not be “impeded” by the Fiscal Incentives Review Board. — Justine Irish D. Tabile

Deadpool & Wolverine celebrates friendship, Ryan Reynolds says

IMDB
IMDB

LONDON — The global promotional tour for Deadpool & Wolverine touched down in London on Thursday, with stars Ryan Reynolds and Hugh Jackman bringing their bromance to the movie’s United Kingdom sneak peek event.

The two have entertained fans with their humorous, high-energy appearances at previous stops in Shanghai, Seoul, and Berlin.

The third installment in the Deadpool movie franchise sees Mr. Jackman’s Wolverine return from retirement to help wise-cracking Deadpool (Mr. Reynolds) save his world.

“It’s about friendship, and friendship is another version of a love story,” said Mr. Reynolds, who also co-wrote and produced the film.

“There’s so many moments in the movie where it’s hard to tell if Deadpool’s talking to Wolverine, Wolverine talking to Deadpool, or it’s Hugh and Ryan talking to each other. And I’m really proud of those moments.”

Mr. Jackman had not planned to reprise the role of the gruff, clawed X-Man Wolverine. But the Australian actor said his mind started changing after he watched the first Deadpool film.

“It was something in here,” he said, pointing at his heart. “I really thought I was done. And then, five or six years later, I was driving and I just knew in my bones I wanted to do that.

“I knew for fans it would be the thing they’d waited for, I knew it’d be a kind of dynamic that we’ve never seen before. I had no idea how hard it would be physically at age 55 to do it but it’s absolutely worth it. I have loved every second.”

Secrecy surrounds the film’s plot details. Respecting the characters and their legacy was at the heart of the writing process, said director and co-writer Shawn Levy.

“But then we pushed them into areas that other movies haven’t,” he said. “I think you’re going to see some aspects to both their performances that are quite different than what we’ve seen in their prior films.”

The only Marvel-Disney movie released this year, Deadpool & Wolverine is expected to be a box office hit when it begins its global cinematic rollout on July 24.

“There is a lot riding on it but we’ve worked really hard to deliver the goods,” said Mr. Levy.

“I focus on the opportunity, not the expectation. The creative opportunity to connect with a huge global audience in a new way, in a surprising and fresh way, that was delicious,” he said.

For Mr. Reynolds, 47, releasing the film to the world comes with other concerns.

“I feel like I’ve waited my entire life to do this one movie. The only problem that poses is I don’t know what the hell we’re supposed to do next.” — Reuters

K-pop stars Stray Kids prepare for comeback with upbeat London show

STRAYKIDS.JYPE.COM

LONDON — “This is a career highlight,” popular K-pop group Stray Kids said as they headlined the British Summer Time (BST) Hyde Park Festival on Sunday.

The eight-man group from South Korea debuted in 2018 after being formed by JYP Entertainment through a reality show. They have won over fans around the world with their genre-mixing sound and hit songs such as “God’s Menu,” “S-Class,” and “Maniac.”

Made up of members Changbin, Felix, Hyunjin, Lee Know, Han, Seungmin, Bang Chan and I.N, Stray Kids returned to London after nearly five years to make their United Kingdom festival debut.

“It’s a really big festival and it’s a really big space. It’ll be really interesting to see how much the energy we bring to it will change that,” said Han shortly before the group took to the stage to perform a high-energy one-hour-40-minute-long set in front of a crowd of thousands.

Named by Time magazine as one of the Next Generation Leaders, Stray Kids placed third on recorded music industry body IFPI’s top 10 list of global recording artists last year. Their third Korean-language studio album 5-Star was last year’s second biggest-selling album globally, IFPI said.

All eight members also walked the famed MET Gala red carpet this May, wearing custom Tommy Hilfiger suits.

Bang Chan said the group were grateful for their strong streaming numbers and successes but added that the onus was on bringing meaningful music to their fans, known as STAYs.

“Lots of STAYs and a lot of people are giving us a lot of attention, so I don’t think we should sit still and do nothing about it. That’s why all the members are working hard in their parts,” added Seungmin.

Part of that is the group’s “comeback,” their new EP, titled ATE, which will be released on July 19.

ATE represents the eight members who have “eaten up” their comeback, said Felix, adding that fans could expect new concepts and styles.

“It really means a lot to us. It’s been a while since our last album. With this album we really want to emphasize our eight members, how genuine we are with music and we’ve also put in a lot of styles of music for everyone out there to enjoy,” said Bang Chan.

“We’re bringing out all we can at this time and that makes us confident,” added Changbin. — Reuters

AirAsia PHL logs 3.86 million passengers driven by millennial, Gen Z demand

NEWSROOM.AIRASIA.COM

LOW-COST carrier AirAsia Philippines said it has recorded 3.86 million passengers as of July, with strong demand from millennials and Generation Z driving its passenger seat sales.

“AirAsia MOVE app was able to market the airline’s monthly promos and reach millions worldwide,” AirAsia Philippines said in a statement on Monday. 

In the Philippines alone, AirAsia booked a total of 1.1 million seats under its promo seat sales from January to July, of which almost the majority, or a total of 820,000, are Gen Zs and millennials. 

Millennials were born from the early 1980s to the late 1990s, while Gen Zs include those born from 1995 to 2004.

“Millennials and Gen Zs are tech-savvy… Technology always plays an important role in their decision-making, 70% of online and over-the-app bookings for the first half of 2024 came from millennials and Gen Z’s,” AirAsia Philippines Communications head Steve F. Dailisan said in a statement on Monday. 

For six months to early July, AirAsia Philippines has flown a total of 3.86 million passengers, compared to 3.87 million in the first semester of 2023.

Last year, AirAsia Philippines logged a total of 6.6 million passengers.

In April, AirAsia Philippines said that it was planning to expand its domestic routes by adding more direct flights to popular destinations like Boracay. 

The airline also aims to capitalize on the increased weekly seating capacity between the Philippines and South Korea by introducing new routes to South Korea and possibly increasing its existing capacity. — Ashley Erika O. Jose

Demand for T-bills surges on rate cut bets

BW FILE PHOTO

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday even as rates mostly inched up as it saw strong demand for the short-term papers amid growing expectations of rate cuts by both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve within the year.

The Bureau of the Treasury (BTr) raised P22.6 billion from the T-bills it offered on Monday, higher than the P20-billion program, as total bids reached P46.736 billion, or more than twice the amount placed on the auction block.

Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P15.51 billion. The three-month paper was quoted at an average rate of 5.717%, 1.9 basis points (bps) above the 5.698% seen last week. Accepted rates ranged from 5.702% to 5.74%.

Meanwhile, the government awarded P9.1 billion in 182-day securities, higher than the P6.5-billion plan, as bids for the tenor reached P17.525 billion. The average rate for the six-month T-bill stood at 5.978%, inching up by 1 bp from the 5.968% fetched last week, with accepted rates at 5.95% to 5.998%.

The BTr doubled the accepted volume of noncompetitive bids for the 182-day T-bills to P5.2 billion as the paper fetched strong demand, it said in a statement.

Lastly, the Treasury raised the planned P7 billion via the 364-day debt papers as demand totaled P13.701 billion. The average rate of the one-year debt decreased by 0.1 bp to 6.072% from the 6.073% quoted last week. Accepted yields were from 6% to 6.09%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.6845%, 5.9839%, and 6.0480%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The Treasury made a full award of its T-bill offer as it saw “overwhelming” demand, with the six-month tenor almost thrice oversubscribed, a trader said in a text message.

Investors swamped the offering as they priced in potential cuts in benchmark interest rates here and abroad, the trader said.

“Although higher week on week, the yields in the T-bill space remain lower compared to BSP facilities and the BSP policy rate,” the trader added.

Expectations of a BSP rate cut as early as next month led to good demand for the T-bills as investors want to lock in high yields ahead of the start of the central bank’s easing cycle, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Increased odds of the Fed kicking off its own rate cut cycle by September and dovish signals from the US central bank chief also affected T-bill yield movements, Mr. Ricafort added.

BSP Governor Eli M. Remolona, Jr. last month said the Monetary Board may deliver its first rate cut in over three years at its Aug. 15 review as they expect inflation to continue easing this semester.

The BSP last month kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting.

Meanwhile, the “last mile” of the Federal Reserve’s battle against inflation may have shortened to a last lap after US consumer prices unexpectedly fell in June, shoring up policy makers’ confidence that they are winning the fight and paving the way to interest rate cuts in the coming months, Reuters reported.

At the Fed’s July 30-31 meeting, the policy makers are expected to maintain the policy rate at 5.25%-5.5%, but they may set the table to lower rates in light of renewed progress on easing price pressures.

After July, the Fed’s next policy meeting is in mid-September.

In two days of testimony before Congress last week, Fed Chair Jerome H. Powell appeared to edge the door open to a September rate cut, saying that the US economy was “no longer overheated” and that “more good data” on inflation would lay the groundwork to reduce the benchmark policy interest rate.

On Tuesday, the BTr will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and six months.

The Treasury wants to raise P215 billion from the domestic market this month, or P100 billion from T-bills and P115 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — AMCS with Reuters

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