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S&P Global trims PHL growth outlook

People watch the sunset along Manila Bay in Manila, Philippines, April 4, 2024. — REUTERS

S&P GLOBAL RATINGS trimmed its gross domestic product (GDP) forecast for the Philippines for this year and 2025 amid expectations that high interest rates will continue to crimp domestic demand.

In a report, the credit rater cut its growth forecast for 2024 to 5.8% from 5.9% previously. It also lowered its GDP estimate for 2025 to 6.1% from 6.2% earlier.

S&P’s latest projections are below the government’s 6-7% growth goal for this year, and 6.5-7.5% for 2025.

“Domestic demand started out the year on a disappointing note, at least in part due to the high level of interest rates,” S&P Global Ratings Senior Economist Vincent Conti said in an e-mail.

In the first quarter, the Philippine economy grew by a weaker-than-expected 5.7%.

Household consumption, which accounts for about three-fourths of growth, grew by 4.6%. This was its slowest pace since the 4.8% drop in the first quarter of 2021.

“With the Fed staying higher for longer than initially expected, so will the Bangko Sentral ng Pilipinas (BSP),” Mr. Conti said.

US Federal Reserve officials are now projecting just one rate cut this year and delaying any policy easing moves to as late as December.

A BusinessWorld poll conducted last week showed that all 15 analysts surveyed expect the BSP to keep rates unchanged at its policy meeting on Thursday.

The Monetary Board has kept its key rate at a 17-year high of 6.5% since October 2023 to tame inflation.

BSP Governor Eli M. Remolona, Jr. had said that the earliest the central bank can begin cutting rates is by August for a total of 25-50 bps for the year.

S&P said it expects the benchmark rate to stand at 6.25% by end-2024, which implies a 25-bp cut this year.

“This (high interest rates) will continue to pose headwinds for a full recovery in domestic demand. Nonetheless, there are favorable base effects in exports that, combined with relatively slower imports due to domestic demand, will provide growth support in the interim,” Mr. Conti added.

Despite the cut, S&P Global still expects the Philippines to post the second-fastest growth in the Asia-Pacific  region this year, the same as Vietnam (5.8%) and just behind India (6.8%).

For 2025, the 6.1% growth projection for the Philippines would make it the third-fastest growing economy, after India (6.9%) and Vietnam (6.7%).

“Better export growth will lead to higher GDP growth this year in Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Other economies should also benefit from stronger exports this year,” it added.

Meanwhile, the debt watcher said that inflation is projected to average 3.4% this year. This would be slightly below the BSP’s 3.5% full-year forecast.

It sees inflation further easing to 3.1% in 2025, also below the BSP’s projection of 3.3% for next year.

“Inflation pressure has eased in the region. But the prospect of delayed US policy rate cuts is leading Asian central banks to do the same and take other measures to protect domestic currencies. Emerging markets could be tested if US rates were to rise further and capital outflows intensified,” S&P said.

Headline inflation picked up to 3.9% in May, marking the sixth straight month inflation settled within the BSP’s 2-4% target band. — Luisa Maria Jacinta C. Jocson

NEDA open to adjusting rice tariffs before 2028

RICE GRAINS are displayed with a miniature farmer in this illustration picture taken on June 20, 2023. — REUTERS

By Kenneth Christiane L. Basilio

THE GOVERNMENT is open to adjusting tariff rates on rice imports if global prices show a steady decline, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said on Monday.

“If world prices are going down, then you have to do what you can to adjust the tariff, that’s what many countries do,” he told reporters on the sidelines of a forum on Monday.

President Ferdinand R. Marcos, Jr. last week issued Executive Order (EO) No. 62, cutting tariffs for different agricultural imports like rice, pork, poultry and corn to 15% from 35% until 2028.

“If the situation changes, the government must have that flexibility to re-examine its tools,” Mr. Balisacan said.

Under the order, the in-quota and out-quota tariff rates for rice will be reviewed every four months. The NEDA is tasked to submit its recommendations to the President through the Office of the Executive Secretary.

Meanwhile, retail prices of rice are expected to drop to as low as P40 per kilo as early as July once EO 62 takes effect, an industry executive said.

“We expect that the prices for well-milled rice… to drop to P45 to P46 [per kilo], for regular-milled rice, it will range between P40 and P42, and P43 [per kilo]. For premium rice, it would range around P47 to P48 [per kilo],” Orly Manuntag, spokesperson of the Grain Retailers Confederation of the Philippines, said in Filipino during a press conference with leaders of the House of Representatives.

EO 62 is set to take effect on July 6 or 15 days after it was published, Department of Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said on Saturday.

House Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said the lower tariffs will likely bring down average rice prices to P45 per kilo in Metro Manila.

The tariff cut on imported rice is expected to tame inflation as the staple product is a “significant contributor” to the consumer price index, Security Bank Corp. Chief Economist Robert Dan J. Roces told BusinessWorld in a Viber message.

“While estimates predict a reduction of 0.4 to 1.8 percentage points, the actual impact depends on how much domestic rice prices adjust and how fast it adapts,” he said. “The fast-tracked approval could lead to quicker relief, but long-term effects on farmers and the need for complementary measures require further National government action.”

Mr. Roces noted the implementation of EO 62 is “necessary and timely” amid the persistent rice inflation.

Inflation accelerated to a six-month high of 3.9% in May. In particular, rice inflation remained elevated although slightly easing to 23% in May from 23.9% in April.

The lower rice tariffs would benefit low-income households who bear the brunt of spiraling rice prices, Mr. Roces added.

However, lowering tariffs on imported rice could be detrimental to the domestic rice industry if left unchecked, Eleanor L. Roque, tax principal of P&A Grant Thornton, said.

“Lowering the cost of imported rice without looking at how the local farmers can compete may be detrimental in the long term,” she told BusinessWorld in a Viber message. “The government should evaluate both short-term and long-term solutions for food sufficiency without neglecting the needs of our local farmers.”

Enrico P. Villanueva, a senior lecturer at the University of the Philippines Los Baños Economics Department, said only 20% of the country’s rice supply is sourced from imports.

“The substantial tariff cut will help ease rice prices, but its impact will be muted by the fact that imports comprise just roughly about 20% of rice supply in the Philippines,” he told BusinessWorld in an X message.

Reducing the rice prices to as low as P40 is not realistic unless the government would only import low-quality rice, Raul Q. Montemayor, national manager of Federation of Free Farmers, told BusinessWorld in a Viber message.

“At current cost, insurance and freight rate of $600 per ton… the exit pier costs would be at P40.71 per kilo,” he said. “Add in profit margins, freight, and handling costs, the retail price will be approximately P50 per kilo.”

“I don’t see how they can sell rice at only P40 per kilo. The only way this can happen is if the cost, insurance, and freight costs go down to $500 or they bring in cheap and low-quality rice,” he added. — with Beatriz Marie D. Cruz

Philippines has 25-year window to reap benefits of young population — WB

Students walk inside the campus of a high school in Quezon City, April 18, 2024. — REUTERS

THE PHILIPPINES has to take advantage of the changing population structure in the next 25 years, when the working-age population will outnumber dependents, according to the World Bank (WB).

“The country has a 25-year window to harness the benefits of a changing population structure. So, the country will have a larger working-age population relative to dependents,” Toni Joe Lebbos, World Bank economist for human development, East Asia and the Pacific, said at a forum on Monday.

“If we invest today wisely in education, health, and jobs, this demographic shift can boost economic growth. This is a chance to stress that this opportunity won’t last forever and not taking action now would mean missing out on a lot of benefits,” he added.

The Philippines’ latest Human Capital Index (HCI) stood at 0.52, which means that a child born in 2020 can only achieve about 52% of their productive potential by the age of 18. This is lower than the average HCI of upper middle-income economies at 0.56.

The HCI measures the health, education, and training of individuals — indicators deemed crucial to a country’s economic growth.

“In our aging region, the Philippines’ human capital provides an important lifeline of services that are needed for growth. Yet the Philippines is only utilizing only half of its human capital investment,” Mr. Lebbos said.

According to the World Bank, key challenges affecting the Philippines’ human capital include high fertility, limited and unequal access to education and healthcare, poor learning outcomes, low-quality jobs and skills, persistent poverty and inequality, and vulnerability to global headwinds like climate change and pandemics. 

For the Philippines to realize its human capital potential, it must invest in the development of children below 10 years old, the World Bank said in its latest report.

“To ensure optimal start in life for every child as a foundation for boosting human capital, holistic services in the early years including maternal and child health, nutrition, early education and stimulation, development of foundational skills, and social protection in the first 10 years are paramount,” it said.

The World Bank said the Philippine government must also improve the delivery of social protection services.

Local government units (LGUs) have a key role in ensuring on-the-ground investments for human capital, it said. Disadvantaged LGUs, especially those farther from the capital region, are at risk of losing about 26 percentage points of human capital potential, it added.

“The LGUs that have lower indicators seem to be hindered by capacity and governance challenges that often lead to inequitable access to services, and unequal access to services,” Mr. Lebbos said.

Asked which policies can support the development of human capital, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan suggested a possible expansion of the government’s conditional cash transfer program to support out-of-school children.

During the forum, Mr. Balisacan called on lawmakers to approve the Academic Recovery & Accessible Learning Program, which mandates students to take refresher courses in the summer break and address the learning gap. It also backed the passage of the Enterprise-Based Education and Training Framework Act to fit workers’ skills to industry demands.

Meanwhile, the World Bank also expects the country to reach upper middle-income status by 2026, but its key human capital indicators remain below the average of such an income class.

“Whether the Philippines will reach a high-income economy and developed status will really depend on investment in human capital today,” Ndiamé Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand said during the forum.

The multilateral lender classifies the Philippines as a low middle-income economy, but the government is hoping it can gain upper middle-income status by next year. 

Upper middle-income economies have a gross national income per capita of $4,466 to $13,845, according to the World Bank. — Beatriz Marie D. Cruz

Tourist arrivals in PHL seen returning to pre-pandemic level only in 2025

Tourists pose for souvenir photos in Boracay, Aklan in this file photo taken on April 6, 2023. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

TOURIST ARRIVALS in the Philippines are expected to jump by 33% this year, but will only return to the pre-pandemic level by 2025, Fitch Solutions’ unit BMI said.

In a report, BMI said it maintains a “positive outlook” for Philippine tourist arrivals through 2028, driven by tourists from key markets in the Asia-Pacific, North America and Europe.

“We forecast Philippines’ tourist arrivals to grow by 32.6% year on year in 2024 to reach 6.6 million, up from the 5 million arrivals in 2023. The 2024 arrivals will be at 81% of the pre-pandemic level in 2019 (8.2 million arrivals),” it said.

BMI’s projection is lower than the Department of Tourism’s (DoT) target to attract 7.7 million international visitors this year.

As of April 24, the DoT reported that the Philippines has logged in over 2 million international visitors, up by 15.11% from a year ago.

So far this year, South Korea is the biggest source of tourist arrivals (27.19%), followed by the United States (15.71%), China (6.49%), Japan (6.13%) and Australia (4.38%), according to the DoT.

BMI said the Philippine tourism market’s post-pandemic recovery “remains underway.” Tourist arrivals to the Philippines plunged by 82.9% to 1.4 million in 2020 as the borders were shut due to the coronavirus disease 2019 (COVID-19) pandemic.

“We forecast the Philippines’ arrivals to continue to increase over the remainder of our medium-term forecast period fully recovering in 2025 as they reach 8.3 million, rising above the pre-pandemic level in 2019,” BMI said.

BMI projects tourist arrivals to the Philippines to grow by an average of 14% annually from 2024 to 2028. Tourist arrivals are expected to reach 9.4 million by 2028.

However, BMI said the tourism outlook faces risks as elevated inflation in key markets may dampen appetite for travel.

“While we have a positive outlook for Philippines’ arrivals, there are short-term risks stemming from high living costs in many markets globally and tighter credit conditions which will weigh on consumer spending, particularly on nonessential categories such as travel,” it said. — LMJCJ

Emperador sets P6.5-B capex to boost whiskey business

EMPERADOR, Inc. said it allocated P6.5 billion for its capital expenditure (capex) budget this year to strengthen its whiskey business.

Bulk of the capex was allotted for the expansion of the Dalmore distillery, slated for completion in the second half of the year, Emperador said in a statement to the stock exchange on Monday.

Emperador allocated a reduced capex this year compared to the P7-billion budget allotted last year.

“The expansion will double the capacity of the current Dalmore distillery,” the company said.

“The company has also started expanding the maturation complex in Invergordon, building more warehouses for whiskey aging to house the additional liquid to be produced by the larger Dalmore distillery,” it added.

Emperador also intends to use its capex to finance distillery upgrades in alignment with Whyte & Mackay’s objective to achieve carbon neutrality by 2030.

“Distillery upgrades will be made to make operations more efficient and sustainable. Among Whyte & Mackay’s sustainability projects are an anaerobic digestion bioenergy center, and a biomass boiler system,” the company said.

A small portion of the capex will be used to upgrade the machinery and equipment of the brandy business for more efficient operations, it added.

Meanwhile, Emperador President Winston S. Co said during the virtual annual stockholders’ meeting on Monday that the company is “built for long-term growth.”

“We believe that this year, we will continue to perform hopefully better than last year. When you look at the horizon for the next five years, we are excited of the prospects because we believe that there will be a rebound in consumer spending, particularly on the super luxury category,” Mr. Co said.

“We are in the process of expanding the Dalmore facility. The Dalmore expansion will be fully completed by the end of the year. We will be able to double our capacity so we will be able to meet future requirements,” he added.

Emperador Investor Relations Officer Kenneth V. Nerecina said the company expects an even split between its brandy and whiskey revenues by next year.

“Moving forward, we remain very much optimistic about the long-term potential of Emperador. We both have diversified product and market portfolios that support our contemporize, premiumize, and internationalize strategy,” he said.

Emperador’s brand portfolio includes Emperador Brandy, Fundador brandy, The Dalmore, Fettercairn, Jura, and Tamnavulin Single Malt Scotch whiskeys. The products are available in more than 100 countries across the globe.

For the first quarter, the company logged a 25% drop in its attributable net income to P1.8 billion as consolidated revenue and other income fell by 16% to P13.1 billion due to the slowdown of the global spirits markets.

Emperador shares fell by 1.9% or 36 centavos to P18.54 apiece on Monday. — Revin Mikhael D. Ochave

PhilTower closes acquisition of 1,148 towers from Globe, progresses towards full purchase

GLOBE.COM.PH

GLOBE Telecom, Inc. said it is close to finalizing its tower sales to Phil-Tower Consortium, Inc. (PhilTower) after selling another 48 towers for P710 million.

This brings PhilTower’s total acquisitions to 1,148 towers, or 85% of the planned 1,350 towers, Globe said in a statement on Monday.

Globe said proceeds from this transaction will yield additional funds for its future capital expenditure, debt repayments and will improve the company’s balance sheet.

In 2022, Globe signed an agreement with PhilTower for the sale of its 1,350 telecommunication towers and related passive infrastructure for about P20 billion. 

In the same year, Globe also signed an agreement with Miescor Infrastructure Development Corp. (MIDC) and  Tower Associates Philippines, Inc. for the sale of 5,709 telecommunication towers and related passive infrastructure for about P71 billion.

Frontier is set to acquire a total of 3,529 towers for P45 billion, while MIDC will acquire 2,180 towers for P26 billion.

PhilTower is a local tower company. It builds shared telecommunication infrastructure for mobile operators.

For this year, Globe is allocating $1 billion for its capital expenditures funded by internally generated funds, debts, and proceeds from its tower sales. 

At the local bourse on Monday, shares in the company closed P47 or 2.43% higher at P1,975 each. — Ashley Erika O. Jose

Gloc-9 sharpens storytelling skills in new album

GLOC-9 and Raymund Marasigan

FILIPINO rap icon Gloc-9 explores distinctly Filipino stories through hard-hitting verses in his latest album, Sari-Sari Story.

The renowned rapper, whose real name is Aristotle Pollisco, has been making music for over 25 years. For the new album, he has collaborated with original Pilipino music (OPM) artist Raymund Marasigan who produced all 10 songs, each diving into a vivid story rife with twists and turns.

Tinda ni Linda,” the album’s focus track, is one such narrative song. It is written from the perspective of a man admiring Linda, who runs an eatery, and later uncovers dark secrets about her true motives linked to the dishes she serves. The track featured on Spotify’s New Music Friday Philippines and Apple Music’s new OPM releases.

The album’s release strategy allowed fans to savor each song, with three dropping during the first week of June and another three following in the subsequent week. The album was fully released on June 21.

Lyric videos that come with each track are now posted on Universal Records Philippines’ YouTube channel.

TELLING NEW STORIES
At a press launch in Quezon City on June 20, Mr. Polistico said that the stories in each track were explorations he had wanted to do for a long time.

“I identified the title after finishing two songs, “Utang Clan” and “Gatas at Asukal.” Napag-tanto kong mas madali magsulat sa ilalim ng (I realized I found it easier to write under the) umbrella that is Sari-Sari Story,” he said.

The title is a play on sari-sari store, literally translating to variety store, which refers to a small neighborhood store selling all sorts of goods. In this case, Gloc-9 is peddling unique Filipino stories.

Mr. Marasigan, known for his work with rock bands Sandwich and Eraserheads, this time stepped into the studio as producer. He told the press that he never expected to work on the full album, which took six weeks to make.

Akala ko noong una isang kanta lang gagawin namin (I thought at first that we would only do one song together). Suddenly every week he was sending me around two songs,” he said of the process.

“Gloc-9 a brilliant lyricist. Hindi ko namalayan na naka-anim na linggo kaming gumagawa (I didn’t even notice as we worked that six weeks had already passed).”

STAND OUT TRACKS
For the two musicians, the stand-out tracks of the album are the playful and surprisingly dark “Tinda ni Linda,” “Sagip,” which is a track dedicated to the suicidal, and the final song, “Idol,” about obsession that ends with a bang.

He said his gift is “to rap and to interpret people’s lives.”

“To begin with, tsismoso talaga ako (I’m really a gossip),” Mr. Polistico said of the colorful stories behind each track. “I just inject artistry into the gossip. The lyrics are based on things I hear, things I see, and things I experience.”

While “Sagip” was an opportunity to take on the topic of mental health that most people would rather avoid, “Idol” was a chance to work with younger peers. It features rappers G Clown, Ramdiss, and Hero, whose verses take on the perspective of obsessed fans of a famous rapper (Gloc-9 himself).

Sinabi ko sa kanila na maganda kung iyong characters nila ay sila rin. Na-pressure tuloy sila magsulat dahil sa conscious na direksiyon ko (I told them it would be great if they write characters based off of themselves. I pressured them to write under this conscious direction),” said Mr. Polistico.

What came out was a dynamic, masterfully told story that builds anticipation and culminates with the young rappers’ extremely fast and revelatory verses.

STABILITY
On how the Gloc-9 pen continues to churn out good songs, he explained that it helps being older and more stable in his career.

“Now, the goal is to write songs that we love. Mahirap maglako ng bibingka na ‘di mo rin kakainin (It’s hard to sell rice cakes that you yourself won’t eat).”

Sari-Sari Story is now available on various digital music platforms. — Brontë H. Lacsamana

Jollibee reports data breach affecting 11 million customers — NPC

THE National Privacy Commission (NPC) announced on Monday that it had been notified by the Jollibee group of a data breach affecting approximately 11 million data subjects.

According to the NPC, Jollibee reported at 11:38 a.m. on June 22 about a potential unauthorized access to its data lake, which contains data for all companies within the group.

The data breach is reported to have compromised sensitive personal information, including dates of birth and senior citizen identification card numbers.

“Approximately 11 million data subjects are affected, the majority of whom are Jollibee customers. Other impacted brands include Mang Inasal, Red Ribbon, Chowking, Greenwich, Burger King, Yoshinoya, and Panda Express,” the NPC said.

 “Jollibee Foods Corp. (JFC) has requested an additional 20 days to complete its internal investigation,” it added.

In a disclosure to the Philippine Stock Exchange, JFC said: “The company is addressing the incident and has implemented its response protocols and deployed enhanced security measures to further protect the company’s and its subsidiaries’ data against threats.”

“The company has also launched its investigation on the matter to understand the scope of this incident, and is currently working with the relevant authorities and experts in its investigation,” it added.

According to JFC, while the breach impacted several subsidiaries, its own and its subsidiaries’ e-commerce platforms remain unaffected and operational.

“JFC recognizes the value and importance of the confidentiality of the personal information of its stakeholders,” the company said. 

“The company assures the public of its commitment to prioritize the protection and confidentiality of such personal information, including customer data, by continuously fortifying its defenses against future threats,” it added.

The data breach at JFC marks the fifth incident reported by NPC this month alone. — Justine Irish D. Tabile

Panasonic Manufacturing Philippines Corp. to hold virtual Annual Stockholders’ Meeting on July 19

 

 


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Indonesian Muslim metal group braces for biggest stage yet

REUTERS

JAKARTA — With their Islamic headscarves and high-octane metal music, the women of the Indonesian band Voice of Baceprot have played stages from the United States to France. But they are nervous about this week.

In England on Friday, the trio will be the first Indonesians to play at the Glastonbury Festival, one of the world’s biggest, sharing space with the likes of Coldplay and Shania Twain.

This is the biggest stage yet for the young women, far from their home village of Garut in West Java province of the sprawling Southeast Asian nation.

“Not only do we carry the Voice of Baceprot, but also our country,” bassist Widi Rahmawati, 23, told Reuters.

With the brash strums of their guitars and intricate drumming, the Voice of Baceprot — a word meaning “noise” — has made the cover of Britain’s New Musical Express magazine and earned plaudits from former Rage Against the Machine guitarist Tom Morello.

Beyond the music, the three have set out to challenge the stereotypes that Muslim women are demure and weak, or that Muslims in general are violent militants, said vocalist and guitarist Firda Marsya Kurnia, 24.

Indonesia is the world’s largest Muslim-majority nation, with Muslims comprising 90% of its 270 million people. The nation is secular and the vast majority practice a moderate form of Islam, although there are some conservative strongholds.

The band sings of female empowerment — lamenting a fixation on looks instead of the music — and the environment, Marsya said.

Widi, Marsya, and drummer Euis Siti Aisyah, 24, met at an Islamic school, forming the band in 2014. They were immersed in Indonesian pop and Islamic music as kids, said Widi.

Their love for metal came after they heard the album Toxicity by the American band System of a Down. They listened to it on the computer of their school guidance counsellor, who they said was their biggest supporter.

It filled them with an adrenaline rush, Marsya said, so they started playing music of their own.

Marsya said the most difficult challenge for Voice of Baceprot was dealing with stigmas, at home as well as overseas.

“In our village, metal is considered satanic — not suitable for women, let alone women in hijabs,” Widi said, referring to their headscarves.

Marsya said her family once suggested she seek an Islamic healing ritual, hoping to expel her love for metal.

“In the beginning, we felt like we did not have a home to go back to,” she said.

People in a US audience once called them militants, she said. “It was as if we were criminals.”

After Glastonbury, Marsya said the three would work on a new album and a song “Mighty Island,” which she said was about corruption in Indonesia. They also want to build a community with aspiring musicians back home, she said.

“We’d like to empower the community there,” Marsya said. — Reuters

NGCP says Hermosa-San Jose transmission line now at full 8,000-MW capacity

BW FILE PHOTO

THE National Grid Corp. of the Philippines (NGCP) said it has fully energized the Hermosa-San Jose (HSJ) 500-kilovolt (kV) transmission line with a capacity of 8,000 megawatts (MW).

“NGCP completes this landmark energy project under the leadership and guidance of President Ferdinand R. Marcos, Jr.,” the grid operator said in a statement on Monday.

“This marks the full completion and energization at full capacity of this critical facility, strengthening and expanding the grid under NGCP,” it added.

The P17.3-billion HSJ transmission line was initially energized in May 2023 to facilitate power generation in Bataan, with a transfer capacity of 2,000 MW.

It spans across the provinces of Bulacan, Pampanga, and Bataan.

Initially, only a quarter of the full 8,000-MW capacity of Lines 1 and 2 was transferred, pending completion of the then unfinished section of the line.

In July 2023, a portion of the line owned by Phirst Park Homes, Inc. was the subject of a temporary restraining order (TRO) issued by the Supreme Court.

Upon receiving the TRO, NGCP halted activities along Towers 170-178 of the line, thereby halting the ongoing stringing of the remaining circuit.

“With the completion of this critical project, NGCP is optimistic that the ERC (Energy Regulatory Commission) will act on the overdue recoveries applied for by NGCP,” the company said.

The grid operator reported that the ERC has authorized NGCP to recover only P19 million, which constitutes 0.1% of the total project cost.

The HSJ transmission line forms part of the P20.94-billion Mariveles-Hermosa-San Jose 500-kV line. It consists of 395 transmission towers, 275.6 circuit kilometers of transmission lines, two new substations, and 2,000 megavolt-amperes in substation capacity. — Sheldeen Joy Talavera

Turning the teenage psyche inside out

By Brontë H. Lacsamana, Reporter

Movie Review
Inside Out 2
Directed By Kelsey Mann

THE HEADQUARTERS of human emotions once again undergoes a major renovation for all to see in Inside Out 2, as protagonist Riley enters puberty and grapples with new feelings like anxiety, envy, embarrassment, and ennui. Director Kelsey Mann’s debut animated film stands on the shoulders of its mega-hit predecessor from 2015, keeping its footing and expanding the world just enough to bring deeply cutting yet kid-friendly revelations to the forefront.

The key emotions — Joy, Sadness, Anger, Fear, and Disgust — retain lively personifications, with four more ingeniously crafted feelings to contend with. The film explains concepts like panic attacks, a sense of self, and suppressed emotions in colorful ways, allowing young teenage audience members to recognize their own struggles.

But Inside Out 2 plays it safe. Understandably so, since Pixar’s last few films (Luca, Turning Red, Elementals) weren’t received too well despite being cathartic creative endeavors for their respective filmmakers. This sequel involves a similar adventure-style journey as the first, with the lead emotion, Joy, once again traversing the landscape of the mind and later finding out the truths of helping Riley grow.

Moments of crisis and inner turmoil are represented well, though the structure of the feelings trying to work things out in the headquarters (Riley’s brain) and beyond can get old. Complex experiences can come off as flat and didactic, but at the same time still sweet, funny, and sometimes inspiring, which is perhaps enough for a film that hopes to mirror and make sense of the struggles of today’s overwhelmed youth.

The new emotions are portrayed with as much personality as the initial five. Adele Exarchopoulos turns in an appropriately nonchalant performance as Ennui while Maya Hawke embodies the never-ending nervous energy of Anxiety (truly a voice you wouldn’t want in your head, rattling off all the worst-case scenarios). Paul Walter Hauser barely spoke, which makes sense but reflects the movie underutilizing Embarrassment, the key driver behind people toning down their true selves as they grow up. Maybe in part due to personal preference, it was Ayo Edebiri who provided the most fitting new voice as Envy by subtly playing up points of pronunciation to sound cartoonishly jealous.

Something to ponder when it comes to Inside Out 2 is how it is fast becoming the biggest blockbuster of the year, surpassing the likes of Dune: Part Two, The Fall Guy, and Godzilla x Kong: A New Empire. According to a report from the Philippine Star, its opening day amassed P88.8 million locally, the third biggest of all time opening behind the two Avengers movies released in 2018 and 2019.

There are a few likely reasons behind this: the film hit theaters on a midweek holiday — June 12, Independence Day — and enjoyed further success that weekend which celebrated Father’s Day. Students are also currently on their summer break. Beyond the logistics, however, Inside Out 2 is a representation of mental health awareness that resonates with the youth now more than ever. Of all generations, Gen Z is remarkably in tune with their inner conflicts (for better or for worse), exacerbated by their isolation during the pandemic.

While this sequel is merely a safe retreading of the familiar ground built by the 2015 film, its new additions form a relatable scenario of how clashing, suppressed emotions and memories can affect a developing mind. Anxiety is an effective villain of the puberty stage, perhaps even hitting too close to home for some, while the forming of the sense of self may bring tears to adults who remember how their own journey may have been as difficult as Riley’s.

Of course, many of the thoughtful associations with real-life processes are played as jokes, some working better than others. The sar-chasm is born out of the teenager’s new weapon — the sarcastic voice — while literal brainstorms bring forth a smattering of ideas both good and bad. The secret vault filled with dark secrets is hilarious to those who’ve had an annoyingly endearing former childhood cartoon or embarrassingly attractive animé character stuck in their heads.

One gag that felt cheap was the premature introduction of another emotion, Nostalgia, taking the form of an old woman reminiscing about the past before the others push her out for arriving “too early.” Her existence undermines the revelation from the first film that memories marked by Joy and Sadness make up a bittersweet melancholy. Nostalgia isn’t an emotion per se, but a result of reliving that mix of the joyful and sad, a poignant take on the feeling that is now just played for laughs.

Inside Out 2 is full of such gimmicks, though it must be said that at its heart is a core structure that allows Riley’s growing up to be seen as a painful yet essential journey. While it speedruns puberty within three days (a very limiting choice that flattens what should be more complex, lived-in conflicts), the personification of Anxiety and the formation of the sense of self are what make this film. Ultimately, it’s a sincere and crucial film for young people to see; despite its flaws, that should count for something.