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Tax on online sellers eyed before Dec.

The Bureau of Internal Revenue is looking to start implementing a creditable withholding tax on partner-merchants of online platforms before December. — REUTERS

THE BUREAU of Internal Revenue (BIR) is hoping to start imposing a creditable withholding tax on partner-merchants of online platforms before the start of December, an official said.

“The process could be shorter, and we might just come up with it before the start of December. It will not be unreasonable to expect it before the start of December,” BIR Assistant Commissioner Jethro M. Sabariaga told reporters on the sidelines of the SGV Tax Symposium last week.

“The longer you withhold this release, you’re hobbling a significant portion of today’s economic transactions,” he added.

The BIR last week released the final draft of the amendments to Revenue Regulation No. 2-98 which currently does not cover income payments by online platform providers.

Under the final draft, the BIR would impose a withholding tax of 1% on one half of the gross remittances by domestic e-marketplace operators to the online merchants for the goods or services sold through their facility.

However, the withholding tax will not apply if annual total gross remittances to an online merchant for the past taxable year has not exceeded P250,000, or if the cumulative gross remittances to an online merchant in a taxable year has not yet exceeded P250,000.

Also exempted are online merchants who are part of a cooperative duly registered with the BIR with a valid Certificate of Tax Exemption.

Mr. Sabariaga said the BIR took note of the suggestions and objections to the draft rules raised by affected sectors. The BIR’s deadline for comments from stakeholders on the final draft ended on Oct. 27.

“This will all be taken into consideration and then be studied and then the final draft will be released and exposed,” he said.

Under the final draft, the BIR defined an electronic marketplace  as a digital platform whose business is “to connect online consumers with online merchants, facilitate and conclude the sales, process the payment of the products, goods or services through platform, or facilitate the shipment of goods or provide logistics services and post-purchase support within such platforms, and otherwise retains oversight over the consummation of the transaction.”

These would cover marketplaces for online shopping; food delivery platforms; platforms for booking accommodations at a resort, hotel, motel and inn; and other service or product marketplaces.

The BIR had first introduced its proposal to implement a withholding tax on online sellers in April.

Since then, Mr. Sabariaga said the agency consulted with various industries to come up with the latest version of the draft.

“It’s the first exposition of the draft, you have to consider the various industries, the applicability of the withholding (tax) on the various industries, the rates, the economic provisions of it,” he added

The BIR has been seeking ways to tax the digital economy, particularly as e-commerce surged during the pandemic.

In 2022, the digital economy contributed P2.08 trillion, equivalent to 9.4% of gross domestic product. Of this, e-commerce had the highest growth at 26.5%, with its share to the economy reaching 20% or P416.12 billion.

Aside from the withholding tax on online sellers, the Marcos administration has also proposed a value-added tax on digital services.

In November 2022, the House of Representatives approved the measure seeking to impose the 12% value-added tax (VAT) on nonresident digital service providers. A similar measure is still pending before a Senate committee.

If passed into law, a 12% VAT will be imposed on the digital sale of services like online advertising, video-on-demand subscriptions, and the supply of other services which are delivered through online marketplaces, webcasts and mobile applications, among others. — Luisa Maria Jacinta C. Jocson

Slower Oct. inflation likely to ease pressure on BSP to tighten policy

PHILIPPINE STAR/EDD GUMBAN

By Keisha B. Ta-asan, Reporter

HEADLINE INFLATION may ease to 5.3% in October, which would put less pressure for the Bangko Sentral ng Pilipinas (BSP) to further tighten monetary policy, according to Pantheon Macroeconomics.   

However, Bank of the Philippine Islands (BPI) said another rate hike cannot be ruled out at the Monetary Board’s Nov. 16 meeting if the October print was faster than expected and the peso further depreciates against the US dollar.

In a note dated Oct. 30, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco and Senior Asia Economist Moorthy Krshnan said Philippine inflation may still return to the 2-4% target band by the end of the year.

“Indeed, we expect inflation for October to fall to 5.3%, from September’s four-month high of 6.1%, as the reversal of the August surge in rice prices finally filters through; it should have in the last report,” the UK-based think tank said.

With easing October inflation, Pantheon Macroeconomics sees no rate action from the BSP at its last two meetings for this year.

“We are maintaining our end-2024 rate forecast of 5.5% too, implying a more pronounced unwinding of one of the region’s most aggressive rate-hiking cycles, which could start as early as February, if our relatively benign outlook for inflation and downbeat view on growth prove accurate,” it said.   

The BSP last week hiked its key policy interest rate by 25 basis points (bps) to a fresh 16-year high of 6.5% in an off-cycle move. This has brought the cumulative rate hikes to 450 bps since May 2022.   

Meanwhile, BPI Lead Economist Emilio S. Neri, Jr. said another rate increase is still possible on Nov. 16 since it would be based on the upcoming inflation data as well as the peso-dollar exchange rate.

“An inflation print significantly higher than 6.1% might trigger another rate hike in that meeting. Aside from this, the central bank may also consider a rate hike if the exchange rate breaches the P57 level and moves closer to P58,” he said.

The Philippine central bank is scheduled to release its October inflation forecast today (Tuesday) while the local statistics agency will release the inflation data on Nov. 7.   

Inflation quickened for a second straight month to 6.1% in September. It also marked the 18th consecutive month inflation was above the BSP’s 2-4% target range. This brought the nine-month average inflation to 6.6%.

DBS Bank Senior Economist Radhika Rao said the off-cycle rate hike was a preemptive move ahead of the release of October inflation, “which is expected to show another jump on the back of high food and fuel prices.”   

“The door remains open for a follow-up hike this quarter if conditions warrant. We pencil in another increase this quarter, followed by a prolonged pause into the first half of 2024,” she said in a note.   

BSP Governor Eli M. Remolona, Jr. on Friday said there is a “good chance” the BSP will not hike at its meeting on Nov. 16, as he expects October inflation to ease.

The central bank currently sees full-year inflation at 5.8% for 2023, before declining to 3.5% in 2024 and 3.4% in 2025. But officials said the BSP will be revising its inflation forecasts on Nov. 16.    

BPI’s Mr. Neri said market players should not downplay the effectiveness of a rate hike in taming inflation.   

“Monetary policy continues to have a role in managing inflation even if the cause is mostly on the supply side. Inflation driven by supply may eventually lead to second-round effects, which the BSP aims to counter with its rate hikes,” he said.   

The BSP’s credibility as an inflation-targeting central bank is another reason why a rate hike was necessary, despite high consumer prices being mostly driven by supply-side issues.   

“The rate hike is a statement from the BSP that it is determined to bring inflation back to its target. Inflation expectations may shoot up further if the market doesn’t see any action from the BSP. It might hurt the BSP’s credibility and make it more difficult to bring down inflation,” Mr. Neri said.   

He noted the peso may continue to depreciate against the US dollar even after the rate increase, as market players consider substantial imports, global financial market developments, and the central banks’ future policy moves.

He noted that remittances during the holiday season may offset some of the pressure, but the movements of the local currency for the rest of 2023 would largely depend on what the US Federal Reserve does.   

“Once the Fed is done hiking, the peso may strengthen as markets will likely assess the possibility of rate cuts. If a recession in the US happens, the Fed may cut its rates and the BSP will likely follow,” he said.

The US Federal Reserve kept its own policy rates at 5.25-5.5% last month — its highest level in 22 years. From March 2022 to July 2023, the Fed has raised a total of 525 bps.   

The local unit closed at P56.955 per dollar on Friday, gaining half a centavo from its P56.96 finish on Thursday, based on Bankers Association of the Philippines data.   

“But in this situation, the appreciation of the local currency will likely be smaller compared to other currencies given the still substantial current account deficit of the Philippines this year and in 2024,” Mr. Neri added.   

In the second quarter, the current account deficit reached $3.6 billion, equivalent to -3.4% of gross domestic product (GDP). This brought the current account deficit at $8.2 billion (-4% of GDP) in the first semester.   

The BSP projects the current account deficit to reach $11.1 billion this year (-2.5% of GDP).

Gov’t may miss spending targets this year — analysts

Laborers work at a construction site in Manila, Philippines, Nov. 17, 2016. — REUTERS/CZAR DANCEL

By Luisa Maria Jacinta C. Jocson, Reporter

THE NATIONAL Government (NG) may likely miss its spending targets this year, which could potentially weigh on economic growth, analysts said.

“We expect the National Government to miss their spending targets for the year given the gap between program and actual (expenditures),” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

The budget deficit narrowed by 2.89% to P983.5 billion in the first nine months, but it was 11% lower than its program for the period, data from the Bureau of the Treasury (BTr) showed.

Government revenues rose by 6.79% to P2.84 trillion, surpassing its target by 2.98%. However, state spending went up by 4.12% to P3.82 trillion but missed its target for the period by 1.06%.

The government has set a budget deficit ceiling of P1.499 trillion this year, equivalent to 6.1% of the gross domestic product (GDP). The program consists of P3.729 trillion in revenues and P5.228 trillion in expenditures.

“Although we do note a pickup in spending in the third quarter, we believe that challenges related to the devolution of certain expenditure to the local government units (LGU) level may be hampering the ability for spending to pick up in a considerable and sustained manner,” Mr. Mapa said.

Ateneo de Manila University economics professor Leonardo A. Lanzona said the year-to-date fiscal deficit is only over 60% of the full-year deficit program, noting that revenues have also lagged behind spending.

“The government spending was indeed pretty low for the whole year, but after raising spending to spur growth in the last six months of the year, the revenues have not kept pace with the programmed expenditures for the year,” Mr. Lanzona said in an e-mail.

“The problem apparently is the failure to spend because of limited funding apart from revenues.  In order to engage in deficit spending, resources other than tax revenues need to be available. However, it seems that the government has not been able to obtain these nontax generated resources in order to support its deficit spending,” he added.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said that the government has so far “underperformed” in both generating revenues and ramping up spending.

“The government’s actual conduct to narrow the deficit is to underspend. (It’s) bad for growth,” he said via Facebook Messenger.

Mr. Mapa also noted the potential impact of slow government spending on gross domestic product (GDP) growth this year.

“We have already witnessed the negative impact on underspending with second-quarter GDP sliding to 4.3% after the -7.1% performance of the National Government,” he said.

The economy grew by a weaker-than-expected 4.3% GDP growth in the second quarter, slower than the 6.4% growth in the first quarter and 7.5% a year ago. It was also well below the government’s 6-7% target this year. The Philippine Statistics Authority (PSA) is set to release third-quarter GDP data on Nov. 9.

After the 7.1% contraction in government expenditures in the second quarter, the Finance department has ordered agencies to come up with catch-up plans for spending.

Mr. Lanzona said that the government will need to focus on strengthening the domestic economy to support growth.

“In effect, the government economic programs have been limping instead of sprinting despite the higher tax revenues, it is crucial to focus more on preparing the local economy to adapt to current economic and technological trends, instead of spending time abroad looking for foreign investments, in order to avail of loans and added borrowings to pursue their programs,” he said.

“With the recent hike in interest rates, the problem seems to have worsened, and the government is stuck to this lower budget deficit as it becomes more and more difficult to avail of outside funds,” he added.

PSE index seen to close at 6,500 level by end of 2023

REUTERS

THE BENCHMARK Philippine Stock Exchange index (PSEi) could close the year at 6,500, if economic activity improves, a market expert said.

“If the market could reach the 6,300 to 6,500 level. I would be happy,” BDO Capital and Investment Corp. President Eduardo V. Francisco said during a BusinessWorld roundtable discussion last week.

This would be around 1-4% lower than the PSEi’s 6,566.39 close on the last trading day of 2022.

The PSEi closed at 5,961.99 on Oct. 27, 0.94% lower than the previous day. The benchmark index has declined by 9% since the beginning of 2023.

Mr. Francisco said investors could turn positive on stocks if the gross domestic product (GDP) growth picks up in the third quarter and inflation eases.

“If we have 6% growth for the gross domestic product in the third quarter, plus inflation goes down and we can control that, then (market) optimism will increase,” he said.

The third-quarter GDP data is scheduled to be released on Nov. 9.

The Philippine economy grew by 4.3% in the second quarter, the slowest in two years. In the first half, GDP growth averaged 5.3%.

Economic managers have said GDP has to expand by at least 6.6% in the second half to reach the 6-7% target for this year.

Headline inflation accelerated for a second straight month to 6.1% in September, which also marked the 18th consecutive month inflation was above the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target range. This brought nine-month average inflation to 6.6%, still above the BSP’s 5.8% forecast for 2023.

Last week the BSP resumed monetary tightening in an off-cycle move, amid increasing inflation risks. It cited the need for “urgent monetary action to prevent supply-side price pressures from inducing additional second-round effects and further dislodging inflation expectations.”

Meanwhile, Mr. Francisco said that it would be difficult for the local market to hit the 7,000 level before the year ends.

“The 7,000 level is very hard to attain… The volumes are very low. The foreigners are not here. They have been selling. The locals, in fairness to them, they have been the ones supporting the market. But there is not much good news and there is not much movement,” he said.    

Mr. Francisco said he does not see any major movements in the stock market towards the end of the year.

As of end-September, PSE data showed that the average daily value traded declined by 9.6% to P6.6 billion, while total market capitalization rose by 0.9% to P16.7 trillion.

Foreign investors have sold a net P43.8 billion worth of Philippine stocks as of end-September. The rise in US interest rates over the past year has made emerging market equities less attractive to foreign investors.

“I think even without the foreigners, the (local) stock market will be stronger,” he said. — R.M.D.Ochave

Lufthansa Technik plans P15-B expansion to Clark

LUFTHANSA TECHNIK Philippines, Inc. (LTP) is looking at expanding its operations to Clark, its president said, as he outlined the company’s plan to build two large hangar bases for P15 billion.

“We are maxed out here in NAIA (Ninoy Aquino International Airport) so we cannot build anything anymore. New hangars have to be built somewhere else. We are looking at Clark because its airport is ready, it fits our operations,” LTP President and Chief Executive Officer Elmar Lutter told reporters last week.

He said the company is targeting to build hangars that can accommodate large aircraft like Airbus A380.

“A380s are large aircraft, which is also a problem in NAIA, but in Clark, the space is much better for us and it is much better for the airport,” Mr. Lutter said.

The first phase of the planned expansion would roughly cost about P5 billion, he said, adding that the second phase is estimated to cost as much as P10 billion.

“Probably P10 billion to make it a full complement for the whole wide-body portfolio which we have: 777, A330. That will be built either in Clark or in one of the new airports,” Mr. Lutter added.

Aircraft maintenance, repair, and overhaul provider LTP said however that this plan is still pending necessary approvals.

“Yes, subject to the necessary approvals. We are a joint venture, so we have to get approvals from both of our shareholders,” he said.

LTP is a joint venture between MacroAsia Corp. and Germany’s Lufthansa Technik AG. It provides aircraft MRO services at various airports in the country, including NAIA, Mactan-Cebu International Airport, Kalibo International Airport, and Puerto Princesa Airport, among others.

“Our logical step to move forward and in the long term, we have to build an alternative to NAIA. As you all know, there are new airports that might also shift our priorities toward NAIA,” Mr. Lutter said.

To recall, LTP earlier said that it was planning to expand outside the National Capital Region amid the new airports to be built in Cavite and Bulacan as potential locations for its aircraft maintenance, repair and overhaul services hubs. — Ashley Erika O. Jose

Angat hydropower plant to shut down for major repair — MWSS

Angat Hydropower Corp. (AHC) will undertake a major repair and rehabilitation of its existing penstock to modernize its hydro-electric power plant in Bulacan, said the Metropolitan Waterworks and Sewerage System (MWSS), which assured of uninterrupted water supply.

“The primary objective of the undertaking is to prolong the lifespan of the plant to ensure a stable water supply for the domestic and irrigation water supply,” MWSS said in a joint release with Maynilad Water Services, Inc. and Manila Water Co., Inc.

The agency said the move requires a total plant shutdown for 61 days from Nov. 6, 2023 to Jan. 6, 2024.

Angat Hydropower, a joint-venture asset of San Miguel Global Power Holdings Corp. and Korea Water Resources Corp., is the operator of the Angat Hydro-Electric Power Plant (AHEPP).

AHEPP has a generating capacity of 218 megawatts and is comprised of four main units and three auxiliary units.

MWSS said it had spearheaded the creation of comprehensive guidelines on the operation of the Angat Dam spillway and low-level outlet together with the two concessionaires. This is to ensure water supply for domestic and irrigation water supply during the plant shutdown.

According to the agency, the guidelines have been unanimously agreed upon by members of the interagency technical working group (TWG) on Angat Dam operations and management, including the National Water Resources Board, the National Power Corp., the National Irrigation Administration, the MWSS as well as other key stakeholders such as Maynilad, Manila Water, and AHC.

Patrick James B. Dizon, head of the MWSS Angat/Ipo operations management division, said that since AHC will be doing rehabilitation works, raw water releases from auxiliary turbines — where MWSS usually gets its allocation — are not possible.

In a Viber message, he said the Angat TWG had agreed that during the 61-day shutdown, water releases to MWSS would be through the spillway and low-level outlet.

Angat Dam is the main source of water for Metro Manila, accounting for about 90% of the capital’s potable water.

MWSS said the current water level Angat Dam at 209.48 meters or near the normal high water level of 210 meters assures a continuous supply of raw water for its service areas throughout the entire shutdown period.

Manila Water serves Manila’s east zone network, which comprises Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns of nearby Rizal province.

Maynilad serves the cities of Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province. — Sheldeen Joy Talavera

PHL short films join 34th Singapore International Film Festival

STILL from All This Wasted Space by Cris Bringas

THE SINGAPORE International Film Festival (SGIFF), which has been held annually since 1987, will take place from Nov. 30 to Dec. 10 this year. This 34th edition boasts 101 films from all over the world, four of which are short films by Filipino filmmakers.

Competing in SGIFF’s Southeast Asian Short Film Competition are All This Wasted Space by Cris Bringas, Primetime Mother by Sonny Calvento, Cross My Heart Hope to Die by Sam Manacsa, and The River That Never Ends by JT Trinidad.

Emily J. Hoe, SGIFF executive director, said at the online media launch that the theme for the year is “tapestry.”

“It’s textured, intertwined, reflecting the diversity of perspectives through film, through threads that come together to show stories. Film connects us all, to each other and to the world,” said Ms. Hoe.

FILIPINO NARRATIVES
Cris Bringas’ All This Wasted Space is an experimental documentary that follows Nica, who returns to her mother’s home to retrieve an item to place in her mother’s coffin. The film aims to trace her invisible personal traumas as a queer woman and the hidden historical traumas present in the physical space where she returns.

“Going back means confronting a buried past, remembering a history of abuses,” the film’s director told BusinessWorld via Zoom. “It’s a contemplation of the meaning of home,” said Mr. Bringas.

JT Trinidad’s fictional short The River That Never Ends, which premiered in QCinema last year, is also a reflection on space. It centers on transwoman Baby who struggles to keep up when the rest of her life is so easily swept away, much like how the Pasig River she lives next to being overwhelmed by the construction of an expressway.

Sonny Calvento, whose short film Primetime Mother starring Meryll Soriano is also in the competition, felt honored to share that his work told “in a very Filipino way” finds itself in the international film scene, starting with the Toronto International Film Festival earlier this year.

It is a film about a Filipino gameshow “complete with dance showdowns and melodramatic contestant life stories,” he said in a Facebook post. The fictional story follows how their fortitude, tenacity, and devotion to the maternal role are tested in an exploitative gameshow audition.

Meanwhile, Sam Manacsa’s Cross My Heart Hope to Die tackles worker exploitation and love through the character of Mila, who struggles with unpaid work and finds comfort in constant phone calls with a love interest. Her film debuted at the Venice Short Film Competition earlier this year.

Mr. Bringas, who is proud of his and his fellow Filipino filmmakers’ ability to showcase Filipino narratives on the world stage, believes that cinema exists as a form of keeping records.

“As a documentarist, my perspective is that filmmaking is about taking up space; reclaiming space. The role of keeping records is important,” he said. — Brontë H. Lacsamana

Marcos admin urged to develop a roadmap for steel industry

WORKERS are seen installing steel at a construction site in Santa Cruz, Manila, Oct. 26, 2023. — PHILIPPINE STAR/EDD GUMBAN

THE Philippine government should push for a development roadmap for the country’s steel industry if it wants to prioritize local construction materials over imports for its infrastructure program, according to a think tank.

President Ferdinand R. Marcos, Jr. recently ordered government agencies to craft guidelines to make domestic building materials preferred for use in the infrastructure program.

Terry L. Ridon, convenor of think tank InfraWatch PH, said the government needs to boost local production of cement and steel, which have struggled to compete with imports.

“The more important question is how can the government further develop these sectors, particularly steel production, which remain dominated by imports,” he said.

The President should provide a roadmap towards developing the country’s steel industry, and this includes expediting the growth of the energy sector as the steel industry is very energy-intensive,” he added.

Mr. Marcos’ office announced the buy-local policy on Sunday following a meeting with the Private Sector Advisory Council (PSAC). He ordered the Trade department to prepare a list of specific construction materials that can be used for government infrastructure projects.

The Department of Budget and Management, through the Government Procurement Policy Board, has also been ordered to complement the “policy of giving preference to local materials” through relevant guidelines.

The construction industry accounted for about 7% of the Philippine economic output last year, according to Statista.

Construction prices in the capital region Metro Manila at the wholesale and retails levels hit their slowest growth in more than a year in September, according to the state statistics  agency. It said the wholesale price and retail price of construction materials declined by 2.2% and 1.1%, respectively, year on year.

The government plans to spend 5.3% of the gross domestic product or about P1. 29 trillion on infrastructure this year.

Mr. Ridon said the Philippines’ “overreliance” on imports has a significant impact on its foreign currency reserves and exchange rate.

“Continuous importing of goods, particularly materials needed for our infrastructure program, uses foreign currency, which particularly depletes our dollar reserves,” he noted. “As a function of supply and demand, the more foreign currency used for our import requirements, the greater its price impact on the price of the dollar against the peso.”

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said via Messenger that the government’s buy-local policy on building materials would help narrow the country’s trade deficit.
He said local players need to offer “competitive prices” and ensure “quality standards” to sustain the buy-local policy.

For the first eight months, the trade deficit narrowed to $36.31 billion from the $41.86-billion gap during the same period a year ago.  Imports dropped by 9.6% to $84.12 billion, while exports fell by 6.6% to $47.81 billion in the period ending August.

The PSAC meeting was participated in by its chair Aboitiz Group Chief Executive Officer (CEO) Sabin M. Aboitiz, along with members Joanne de Asis, founder of Globe Capital Partners LLC; Manuel V. Pangilinan, CEO of PLDT Inc.; Eric Ramon O. Recto, chairman of Philippine Bank of Communications, Inc.; Enrique K. Razon, president of International Container Terminal Services, Inc.; Ramoncito S. Fernandez, CEO of Maynilad Water Services, Inc.; and  Reinier H. Dizon, president of the Cement Manufacturers Association of the Philippines. — Kyle Aristophere T. Atienza

Success redefined: Bridging generational gaps

SAMMIE CHAFFIN-UNSPLASH

In the hallowed halls of my alma mater, a singular principle was instilled in us from an early age: become servant leaders. We were encouraged to dream big, aspire for success and reach for the stars. But our alma mater’s unwavering emphasis was on one crucial idea — success is most meaningful when shared.

Reflecting on it now, the values instilled in Millennials and Gen Z seem necessary and reflective of our time. Our formative years coincided with seismic shifts in the global landscape — 9/11 and the Iraq War, climate change, the internet’s rapid ascent and myriad other transformative events. The advent of social media intensified the significance of these events, thrusting them into the forefront of our generation’s consciousness.

Fast-forward to today, and discussions surrounding the supposed chasms separating different generations are rife. Labels or titles of laziness, entitlement, and the infamous “Ok, Boomer” retorts are flung around with reckless abandon. Yet, beneath these apparent divisions, a common thread weaves its way through all generations — a shared definition of success, albeit expressed in unique forms.

GENERATIONAL DISTINCTIONS
The Baby Boomer generation embodied the adage “The World is Our Oyster.” Their optimism, competitiveness and work ethics were exceptional. They subscribed to the belief that success will follow, if one is willing to give the time and pay their dues. While significant events during their era included the Cold War and the Vietnam War, this generation seems to embody an overall positive outlook, buoyed by rapid technological progress. Consequently, success for them meant accumulating wealth, home ownership and building a family.

Dubbed the “Middle Child of America” by CNBC, Gen X exhibited communication styles and success definitions akin to their predecessors, with a hint of adaptability and inclusivity. While they believe in putting in the 9-5 time, they are also open to leveraging technology. In fact, there was a certain point that they actually used their mobile phones more than any other generation in the workplace, acknowledging that there may be a shift in how people will work.

Millennials broadened the definition of success to include wealth generation and work-life balance. They laid the groundwork for remote work’s rise, valuing experiences over traditional career trajectories. A proliferation of social impact businesses emerged, with companies like Toms and Rags to Riches leading the way yet, so did technology businesses, especially those in the shared economy such as Uber and Airbnb.

Gen Z follows the Millennials’ blueprint but accentuates the importance of mental health and climate change. Companies such as Patagonia and Rare Beauty exemplify their commitment to social and environmental causes. The COVID-19 pandemic amplified the demand for flexible work arrangements. While valuing experiences over material wealth align with the Millennial ethos, Gen Z’s emphasis on community departs from the Instagram-worthy experiences popularized by their predecessors. As digital natives, they embrace technology-driven side hustles, while grappling with the implications of artificial intelligence (AI) on the future of work and information dissemination looms large.

SHARED, YET REDEFINED
Today’s workforce comprises four generations, necessitating harmonious coexistence and communication. At first glance, value systems appear in contrast, but dig deeper, and they all share common roots. Wealth generation, financial security and recognition remain as aspirations. These generations share a yearning for home ownership and career progression. Community stands as a pillar of their happiness, though defined differently — via nuclear families, deep friendships or support networks, as seen by how older generations still value traditional marriage and marriage routes, while younger generations are redefining what families look like. The imperative issues of mental health, climate change and community engagement have evolved from older generations’ community service activities, driven by the democratization of information through social media and online news.

CALL FOR DIALOGUE
Although the terminology varies, the core values underpinning success are universally shared. Yet, in an age marked by the rise of AI and algorithms shaping our social feeds, divisive politics, and global uncertainty, an urgent need emerges — open dialogue is now more critical than ever. After two years of the pandemic’s isolation, many of us have fallen into echo chambers, hindering genuine collaboration toward shared prosperity.

The 4th Management Association of the Philippines (MAP) NextGen CEO Conference, set for Nov. 9, 2023, from 2 p.m. to 9 p.m. at the Sheraton Manila Hotel in Pasay City, aims to initiate this crucial dialogue. Fireside chats with experts will delve into the delicate balance between AI and well-being. At the same time, discussions with the heirs and executives of established corporations will illuminate the evolution of modern workplaces. A speed-networking activity promises to foster cross-generational learning and challenge long-standing stereotypes.

In an era when common values unite us more than ever before, it’s time for all generations to come together, learn from one another and collectively shape a prosperous future.

 

Maria Georgianna E. Carlos is a member of the MAP NextGen Committee and the founder and pack leader of Fetch! Naturals.

map@map.org.ph

georgiecarlos@gmail.com

Figaro banks on holiday demand to boost sales

LISTED food and beverage retailer Figaro Coffee Group, Inc. (FCG) is banking on an expected surge in consumer demand in the coming holiday season to boost its business performance.

FCG Chief Executive Officer Divine G. Cabuloy said that the group’s Angel’s Pizza brand had, in the past, registered a surge in sales by as much as 80%, especially in December.

“Holiday season, normally in Angel’s Pizza, like now that it is a long holiday, there is about 50% to 60% increase in sales,” Ms. Cabuloy said at the sidelines of a recent media briefing in Mandaluyong City.   

“During December, that’s about 80% increase in sales, meaning that our average daily sales, normally during holidays, increase by 80%. Sometimes, it is doubled,” Ms. Cabuloy said.

FCG currently has 192 stores nationwide across its various food brands. The stores consist of 116 Angel’s Pizza outlets, 60 Figaro Coffee stores, 10 Tien Ma’s Taiwanese Cuisine stores, and six Café Portofino establishments.   

Meanwhile, Ms. Cabuloy disclosed that some FCG’s brands had implemented price increases for some products, with Tien Ma’s brand set to impose higher prices by Nov. 1.

She said the implemented price increases are from 5% to 10%. 

“We’ve done several price increases, but not all products in Angel’s Pizza. We’re planning a [price increase] for Figaro Coffee, and by Nov. 1 for Tien Ma’s. That’s around 5% to 10% increase. Not across the board. We did not touch the prices of other products,” Ms. Cabuloy said. 

“We will not have sharp price increases since we are also consumers and we don’t want to sell products that are too expensive. We are giving good quality and value for money products to our customers,” Ms. Cabuloy said.

FCG previously disclosed that it posted a 133% jump in net income to P462.6 million for its fiscal year ending June 30 versus the P198.2 million net income in the previous fiscal year.    

The company’s revenues also increased 75% to P4.28 billion from P2.44 billion, while same-store sales climbed 6%.   

Shares of FCG at the local bourse were last traded on Oct. 27 at 63 centavos each. — Revin Mikhael D. Ochave

JBL drops reimagined home speakers and new turntable

JBL Authentics 500

AUDIO EQUIPMENT manufacturer JBL has released its latest line of iconic ‘70s audio designs, merging retro aesthetics with the latest modern technology for the Gen Z market.

The three reimagined home speakers and the brand-new turntable model promise to take nostalgic audio experiences to new heights with immersive sound, wireless connectivity, and sleek finishes. The latest Authentics speaker range is now available in the Philippines, breathing new life into its iconic JBL L100 speaker from the 1970s. Meanwhile, the spinner turntable caters to a market of Pinoy audiophiles who continue to clamor for a timeless listening experience.

“We have a long history as a solid brand. People now want great sound quality along with retro looks, so that is what JBL is doing,” Harman Asia-Pacific Vice President and General Manager Grace Koh said at the launch on Oct. 24 in Okada Manila.

Larry Secreto, Harman Philippines’ country head, said that the current generation of Filipino customers really love nostalgia, no matter their age.

“When we brought JBL to the Philippines six or seven years ago, we were trying to attract millennials. Now, they’re getting older and they already love JBL, so we are trying to attract Gen Z,” he told the media at the launch.

JBL Spinner BT Turntable

MODERN TWIST ON CLASSIC DESIGN
The three models of the Authentics range have Wi-Fi, Bluetooth, and voice assistants while carrying JBL’s unique 70s design elements. These include Quadrex grille patterns, aluminum frames, and custom leather-like enclosures. Even little details like making volume adjustments by turning knobs rather than by pressing buttons give a more vintage experience.

The JBL Authentics 500 (P39,999), the most feature-packed in the series, offers Dolby Atmos music performance for an immersive room-filling sound. Its three one-inch tweeters and three 2.75-inch midrange woofers provide clarity of detail while its 6.5-inch down-firing subwoofer and patented SlipStream bass port guarantee incredible deep bass.

Meanwhile, the JBL Authentics 300 (P26,999) is a more portable smart home speaker, thanks to its convenient metal handle and built-in 8-hour battery. With top-grade room-adjusting components like a pair of one-inch tweeters and a full-range 5.25-inch woofer and down-firing 6.5-inch passive radiator, it is able to prioritize audio balance in any environment.

The JBL Authentics 200 (P20,999) can also fill any space with big sound, amazing clarity, and deep bass. As a compact smart home speaker, it has a pair of 25mm tweeters and a full-range 5-inch woofer and down-firing six-inch passive radiator. The Authentics series is compatible with streaming services via built-in Wi-Fi in stunning high definition. Music can be streamed through AirPlay, Alexa Multi-Room Music, Chromecast built-in, or Spotify Connect for smart listening.

For lovers of the classic sound of an actual record, the JBL Spinner BT Turntable boasts an elegant finish, consisting of an aluminum platter and tonearm, black plinth with JBL orange or gold accents, a contemporary front panel, and a hinged dust cover.

Its sound is even more uncompromising, with a belt drive and motor with an optical sensor underneath ensuring that it is smooth and distortion-free. The die cast aluminum platter plays records perfectly in time, at 33⅓ rpm for albums or 45 rpm for EPs and singles.

All the new models are now available in all JBL stores, authorized dealers, and online stores. Visit JBL Philippines’ official website (www.jbl.com.ph) and social media accounts for more information. — BHL

Why Tokyo’s Shibuya does not want Halloween revelers

PEOPLE walk on Shibuya crossing in Tokyo, Japan on April 23, 2021, in this photo taken by Kyodo. — KYODO/VIA REUTERS

TOKYO’S Shibuya was once the center of raucous Halloween celebrations. But revelers are about as welcome this year as a box of healthy raisins in an elementary schooler’s trick-or-treat candy haul.

For the past decade, Tokyo’s youth had flocked to the district’s streets to drink, party and gawk at costumed zombies, Marios, and Pikachus. But Shibuya no longer wants any part of it: This year, it’s spending hundreds of thousands of dollars on an information campaign aimed at dissuading people from coming at all. “No events for Halloween on Shibuya streets,” proclaim posters plastered across the railway station; Mayor Ken Hasebe has taken to speaking to the foreign press to get his message across.

It’s quite the contrast from years past. In 2019, those same posters read “Let’s make Halloween a part of Shibuya to be proud of,” encouraging good manners while having fun. Lurking in the background, of course, is the specter of Itaewon, a similarly hip Seoul neighborhood where nearly 160 people were tragically killed in a crush during Halloween weekend in 2022. Tokyo has had its own brushes with Halloween disaster; two years ago, a man dressed as the Joker stabbed another on a train and attempted to kill others by starting a blaze. It’s a miracle no one died. 

Halloween is a recent invention in this part of the world. When I first came to Japan more than 20 years ago, few had even heard of it; pumpkins were for eating, not for decorating. A parade at Tokyo Disneyland, started in 1997, is often credited with popularizing the celebration, giving partiers a reason to dress up.

Around 2011, young people in costumes began to assemble in Shibuya in the hundreds, and then the thousands, as Halloween approached. While overseas it might be considered more of an event for kids, in Japan it became something for university students and other young people, who drank in the streets while stumbling from bar to bar. Why it took off when it did is a matter of debate. Some cite the rise of Facebook and Twitter, which grew in popularity in the aftermath of the earthquake, tsunami and nuclear disaster of 2011, and the release of the movie The Social Network that same year. Others cite the Harajuku icon Kyary Pamyu Pamyu’s song Fashion Monster, released in 2012, whose music video features a Halloween party. 

Regardless, Shibuya was at the center. And initially, authorities were on board: For several years in the mid-2010s, the city blocked off the main thoroughfare of Dogenzaka on multiple nights, freeing up the city center to cosplaying pedestrians. As a long-term resident of the area, there was something quite heartwarming about watching the event grow organically. Tokyoites don’t tend to interact much with strangers compared with, say, locals in Osaka; to see the one night a year when a group of costumed Super Marios could encounter a completely unfamiliar group of Luigis — and instantly become friends — was faintly magical.

But as the number of attendees peaked pre-pandemic, Shibuya began to lose patience. Bad press circulated when a small truck was overturned in 2018; the media highlighted reports of sexual harassment and other assaults, though serious incidents were limited.

Hasebe, the mayor, says the quality of the event has declined, even as the number of people increased to some 40,000 in 2019, with fewer attendees dressing up in costume, and more coming to gawk at (or ogle) those who did. That year, in an attempt to limit rambunctiousness, the city began asking stores to stop selling alcohol; drinking in the streets is perfectly legal in Japan, though Shibuya has passed a rather powerless local ordinance that limits it around Halloween and New Year’s Eve.

Although COVID-19 kept the event low-key over the last few years, things have now changed — and foreign tourists are back, with some 25% more in the capital than in 2019. Hasebe is worried that around 60,000 people could gather in the area this year.

To some extent, one sympathizes: It’s not like the local economy is being boosted much by the costumes and canned drinks, and any tax surplus is probably canceled out by the cleanup on Nov. 1. Local residents complain about the noise and inability to access nearby businesses. Certainly, no one wants to risk another Itaewon.

But it’s hard to think this isn’t another heavy-handed decision more likely to backfire. Shibuya’s reputation is built on being a haven for the young people who transformed it into a worldwide music and fashion sanctuary. That reputation is why so many congregate there, Halloween or not. Its bars and restaurants are what make the area famous — the reason tourists flock to Shibuya rather than, say, a business district such as Shiodome. 

Hasebe says he wants to make Shibuya into a global icon like Paris or New York. Some would argue the area is already, in many ways, far ahead. But those cities didn’t make their names by turning people away: Hasebe should perhaps observe how New York handles events such as the Times Square ball drop on New Year’s Eve, when up to one million revelers attend.

Young people will come anyway. It would be better for authorities to lean into the event, and in doing so, manage it. Itaewon ultimately occurred not because of Halloween itself but because of insufficient planning, policing and crowd control. Those are easier to do when you know when people will congregate. Next year, let’s give the capital’s young people a spooky season — without the uncompromising shocks. — Bloomberg Opinion

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