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Monde Nissin sees strong sales growth

MONDE Nissin Corp. said on Monday that it anticipates a high single-digit year-on-year sales growth for the full year of 2023.

The gross margin is expected to be in line with the 2022 margin, the listed food and beverage manufacturer said in a regulatory filing.  

“The gross margin expansion in Asia-Pacific Branded Food and Beverage (APAC BFB) was offset by the decline in meat alternative gross margin in 2023,” the company noted.

“We expect core net income to grow by mid-teens for the full year 2023,” it added.  

Monde Nissin said that the projection is based on “certain preliminary unaudited financial results for the fourth quarter of fiscal year 2023,” adding that all figures are “approximate due to the preliminary nature of the announcement.”

“I am pleased to share that our preliminary fourth quarter results reflect the continued strength that we saw during the third quarter driven by our APAC BFB business,” Monde Nissin Chief Executive Officer (CEO) Henry Soesanto said.   

“This led to another all-time high revenue for the quarter and for the year,” he added.

According to the company, its APAC BFB business saw a “strong top line growth” both year over year and sequentially during the fourth quarter, which was supported by better performances of the noodles and beverages segments.  

“Our noodles market share improved by 140 basis points (bps) to 67.3% and 380 bps to 67.5% for the past 52-week and 12-week periods as of December 2023, respectively,” it said.

“The fourth quarter sales growth in the domestic business was backed by all-time high volumes, which grew by more than 5% year on year and 2% sequentially,” it added.

“We saw continued margin expansion of over 400 bps year over year in the fourth quarter. Our commodity lock ins for wheat and palm oil until the second quarter and third quarter of 2024, respectively, are lower by a low double-digit percentage compared to the same period last year.”

Monde Nissin also said its meat alternative business is expected to have a single-digit decline for the fourth quarter as it continues to “navigate in a challenging environment.”

“While the United Kingdom retail market has remained weak and continues to affect the top line, we anticipate being at least earnings before interest, taxes, depreciation, and amortization (EBITDA) neutral in the fourth quarter,” it said.

“The annual impairment test in our meat alternative business is ongoing; however, we also believe the family’s financial support will largely cover any potential impairment at the parent level,” the company added.

On Monday, shares of Monde Nissin rose by 15 centavos or 1.84% to P8.30 apiece. — Revin Mikhael D. Ochave

YouTube and Spotify won’t launch Apple Vision Pro apps, joining Netflix

APPLE.COM

GOOGLE’S YouTube and Spotify Technology SA, the world’s most popular video and music services, are joining Netflix, Inc. in steering clear of Apple Inc.’s upcoming mixed-reality headset.

YouTube said in a statement Thursday that it isn’t planning to launch a new app for the Apple Vision Pro, nor will it allow its longstanding iPad application to work on the device — at least, for now. YouTube, like Netflix, is recommending that customers use a web browser if they want to see its content: “YouTube users will be able to use YouTube in Safari on the Vision Pro at launch.”

Spotify also isn’t currently planning a new app for visionOS — the Vision Pro’s operating system — and doesn’t expect to enable its iPad app to run on the device when it launches, according to a person familiar with matter. But the music service will still likely work from a web browser. Bloomberg News reported on Netflix’s decision Wednesday.

The Vision Pro will include access to Apple’s apps for music and podcasts, which compete with Spotify’s offerings. But getting snubbed by Netflix, Spotify, and YouTube means that the most popular streaming apps won’t be available when the headset launches on Feb. 2. Apple has largely marketed the device as a platform for video, games, and other entertainment.

YouTube is a particularly large omission for the product. When Apple’s original iPad launched in 2010, YouTube was one of a handful of apps preinstalled on the tablet. The company didn’t rule out eventually supporting the Vision Pro but said it had “no further plans to share at this time.”

YouTube and Spotify continue to offer popular apps for the iPhone and iPad. And that, theoretically, gave them an easy path toward supporting the Vision Pro. Developers with iPad software in the regular App Store will see those apps appear in the Vision Pro store by default. That means developers have to opt out if they don’t want to participate.

Several other entertainment apps are still participating, including Disney+, Max, Peacock, ESPN, and Amazon Prime Video. Altogether, Apple says the device will support more than 1 million titles in the headset’s App Store. The company began taking preorders for the Vision Pro on Friday.

Apple has touted its $3,499 Vision Pro headset as an entertainment device.

YouTube and Spotify declined to say why they bowed out of supporting the $3,499 device. Spotify doesn’t offer an app on competing headsets, such as Meta Platforms, Inc.’s Quest, though YouTube does. Spotify also has been embroiled in a fight with Apple over App Store policies, but the decision on the Vision Pro isn’t related to that, according to the person familiar, who asked not to be identified because the deliberations are private.

Searches conducted by MacStories on Thursday indicated that other key iPhone and iPad apps, including Meta’s Facebook, Instagram, and WhatsApp, aren’t currently set to work on the Vision Pro either. But that could change by the device’s launch, or those developers could be planning new dedicated versions for visionOS. Meta didn’t immediately respond to a request for comment.

Apple’s executive in charge of the Vision Pro told employees last week that he expects health care, technician training and education to eventually become key areas for the product. The company also is studying corporate applications, Bloomberg News reported Thursday.

The Vision Pro represents Apple’s first major new product category since it began selling smartwatches in 2015. —Bloomberg

Declining births, rising deaths, and economic damage

Last Friday, Jan. 19, the Philippine Statistics Authority (PSA) released the “Birth, Marriage and Death Statistics for 2023.” I downloaded the Excel file and compared it with my monthly database for these subjects from 2019. To make a comparison for 2023, I got only the first six months of each preceding year.

The results:

1. Births are declining — from 133,400 in January to June 2019, to 102,000 in the same period in 2021, and 110,400 in 2023.

2. Deaths are rising — from 51,500 in January to June 2019, to 64,500 in 2021, and 56,500 in 2023.

3. The net population increase is also falling — from 81,900 in January to June 2019, to 37,500 in 2021, and 54,000 in 2023 (see Table 1).

This is not yet a “depopulation” trend because the net increase (births minus deaths) is still positive, not negative — but the number is declining and so if this trend continues, we should be in a depopulation situation several years from now. That is not good.

Also last week, supersally.substack.com released similar reports about Hong Kong and Thailand. “Hong Kong… Births are Dropping & Deaths are Rising with Deaths nearly Double Births” and “Thailand’s MSM Finally Picks Up Vaccine Harm!” citing the report, “Long COVID, vaccines may cause disease and death: Chula, Rangsit” (Bangkok Post, Jan. 14). The report refers to studies from Chulalongkorn University and Rangsit University.

Since I just came from Hong Kong last week and I saw many old people still working (the HK Jollibee branches, for instance, have local staff who look like they are 60+ years old) or resting in public parks, I pursued the statistics for HK. Also those of Thailand, and Australia. I summarized the numbers below.

Hong Kong births are declining fast, from 52,900 in 2019 to only 32,500 in 2022, while their deaths are rising from 49,000 in 2019 to 63,700 in 2022.

Thailand births also declining, from 596,740 in 2019 to 485,000 in 2022, while deaths are rising from 509,100 in 2019 to 536,700 in 2022.

Australia’s births declined slightly, from 305,800 in 2019 to 300,700 in 2022, while deaths are rising fast, from 164,800 in 2019 to 190,800 in 2022 (see Table 2).

China has a terrible trend: the National Bureau of Statistics reported that in 2023, there were only 9.02 million births (only half as many as in 2017), while there were 11.1 million deaths (up 500,000 on 2022). China’s population shrank by 0.85 million in 2022 and by 2.08 million in 2023, a loss of 3 million people in two years (“China’s falling population could halve by 2100” by Xiujian Peng, AsiaTimes, Jan. 20).

In Europe, these reports somehow summarize the situation: “The decline in birth rates is a widespread trend across Europe” (by Solène Cordier, Le Monde, Jan. 18), “Declining birth rates: A challenge for France’s social model” (Editorial, Le Monde, Jan. 18).

About the decline in births in the Philippines, I hypothesize that there are three reasons why this happened:

1.) State-sponsored population control via the Reproductive Health (RH) law of 2012 (RA 10354);

2.) State-sponsored population control via the COVID-19 lockdown dictatorship plus the implicit mandatory vaccination in 2021-2022; and,

3.) Couples’ voluntary limiting of childbearing.

The reasoning behind No. 1 is wrong because a bigger population is a virtue, not a burden. A bigger population means more entrepreneurs and workers, more producers and consumers. All rich countries take in more (legal) migrant workers and professionals, plus use more robots and machines to sustain their production. But while machines are producers, they are not consumers like people. Robots do not drink and eat in bars and hence do not contribute to growth in the restaurants, hotels and service sector.

Among developing Asian countries with populations of at least 100 million in 2023, one sees that as their population expanded their per capita income also expanded at a much higher rate. Their per capita GDP at purchasing power parity (PPP) values from 2002 to 2022, respectively, were: China, from $4,001 to $18,128; India, from $2,476 to $7,112; Indonesia, from $6,048 to $12,439; Vietnam, from $4,012 to $11,250; the Philippines, from $4,625 to $8,889; Bangladesh, from $2,543 to $6,751; Pakistan, from $3,766 to $5,670. So, the narrative that “more people = more poverty” is false and dishonest.

No. 2 is bad because the lockdown dictatorship unless vax-vax-vaxed caused the Philippines to have the worst GDP contraction in Asia at -9.5% in 2020. The 5.7% growth in 2021 was insufficient to recover the economic damage in 2020. I believe that there is something about the COVID vaccines that contributed to a trend of declining births and rising deaths in many countries around the world.

Reason number 3 is voluntary, couples (married or not) decide what is best for them and their households given their specific needs and aspirations.

Declining births plus rising deaths are terrible trends, economically damaging trends. We should reverse this early via a reversal in public policies now that official data are confirming this trend.

The government procurement of experimental, emergency-use COVID vaccines must stop for public health and economic-fiscal sustainability reasons. Kudos to the Concerned Doctors and Citizens of the Philippines (CDC PH), Juan Dakila Movement, and allied organizations for continuing the campaign on health and individual freedom.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

MyTown offers affordable accommodations for young professionals

MYTOWN PROPERTIES continue to offer affordable co-living spaces for young professionals who prefer staying near key central business districts (CBDs), transportation hubs and commercial centers.

“MyTown’s target demographic typically includes young professionals, expats, students, and individuals seeking convenient, community-focused living arrangements in Metro Manila. Our offerings cater to individuals who value a hassle-free living experience with the added benefits of a supportive and engaging community,” Jogee Arellano, chief executive officer of MyTown Co-living, said in a press release.

MyTown properties are developed by Philippines Urban Living Solutions, a part of the SM Group. It has 14 strategically located properties in Metro Manila, including in Bonifacio Global City and Makati CBD.

“Our strategic locations in key areas of Metro Manila underscore our commitment to ensuring hassle-free daily commutes and easy access to essential services,” Mr. Arellano said.

MyTown properties offer more affordable cost of living versus staying at a dorm, and more amenities such as roof decks, a basketball half-court, a boxing gym, and fitness gyms to KTV rooms, a music room, indoor cinemas, lounges, and worklabs.

“What truly sets us apart is our steadfast commitment to fostering a robust sense of community through social gatherings, networking avenues, and communal zones. Through regular events such as movie nights, game nights, wellness sessions, workshops, and more, we create opportunities for our residents to bond, connect, and enjoy together,” Mr. Arellano said.

Electric aircraft may have more potential than we thought

PROJECT HEAVISIDE BY KITTY HAWK

BATTERIES are doing such a great job replacing petroleum in car engines that it’s natural to think they might do the same in the skies. Efforts to make a working airplane prototype, however, perennially come up short.

Kitty Hawk, the startup backed by Google co-founder Larry Page that hoped to make an electric flying car, quietly abandoned the project after five years in 2020. Last year, two separate proposed battery planes being developed by ventures including Rolls-Royce Holdings Plc and NASA were dropped within a month of each other.

That’s led most people (including me) to be dubious that electric planes will ever take off. The reasons are pretty fundamental: batteries are heavy, and aircraft need to be light. Kerosene stores more than 40 times as much energy per kilogram as lithium-ion cells. To carry as much power as its fossil-fuel equivalent, a seven-seater business jet would need to be carrying a battery as heavy as an Airbus SE A320 fully laden with fuel, 180 passengers, and cargo. That’s obviously not going to work.

There’s an unexamined assumption in that scenario that’s worth looking at more closely, however. Designing an electric plane isn’t a simple matter of plugging a battery into the back of a jet engine: You need instead to return to first principles and sketch things from the ground up. Start with a blank sheet of paper, and you might find innovative designs you’d not previously thought of.

That’s the pitch of Elysian Aircraft BV, a startup working in partnership with Delft University of Technology, one of the world’s leading institutes for aerospace design. In two separate papers published this month, the company’s founders and Delft academics argued that previous studies of electric planes were neglecting an opportunity to take a significant bite out of the industry’s carbon footprint. They have proposed a design for a 90-seater that would depend on batteries alone for normal flight.

“Planes as they are made now are very efficiently designed for kerosene,” Reynard de Vries, Elysian’s director of design and engineering, said in an interview. “The mistake that some of us may have made is assuming that the optimal battery airplane looks the same.”

The details of the argument would be abstruse to most people, involving assessments of such technical parameters as lift-to-drag ratio and empty mass fractions. But their concept aircraft is more comprehensible: a narrow fuselage with four seats in each row; large wings fitted with four turboprop engines apiece, wide enough that their tips would have to fold up on the ground; plus a reserve power system using low-emission fuel that could be switched on for emergencies.

Such a plane, they argue, could fly for up to 800 kilometers (497 miles) on battery power. That would allow it to compete on many of the world’s busiest air routes, such as Seoul-Jeju, Hong Kong-Taipei, Sydney-Melbourne, and Atlanta-Orlando. It’s a market that accounts for about a fifth of aviation’s CO2 emissions.*

The price of aviation fuel would still need to double to make costs competitive with conventional jets — but that’s what you’d expect if airlines and regulators keep their promises to blend in a rising volume of sustainable aviation fuel, a low-carbon replacement for kerosene, not to mention plans to start levying carriers for their greenhouse impacts. Even charging should be possible in an average 30 minutes and maximum 45 minutes, which would be in line with most airlines’ targets to turn their planes around quickly.

It’s still uncertain whether it will be able to compete with conventional jets head-on. For instance, while Elysian’s passenger numbers and range are far closer to those of conventional commercial jets than anyone previously realized, they’re not close enough to strike a decisive blow, either. Airbus’s A321neo, the most popular narrow-body jet, can carry twice as many passengers eight times the distance, giving carriers a lot more flexibility on how to use them.

The aircraft also flies at Mach 0.6, notably slower than the Mach 0.8 you’d get on an A320 or Boeing Co. 737. Incorporating time in non-cruising flight, that would probably mean journeys took 15% to 20% longer, according to Dan Raymer, a Los Angeles-based aircraft designer and president of Conceptual Research Corp.

“Will the passengers accept this?” Raymer wrote by e-mail. “Perhaps they won’t have a choice, if regular jets are forbidden from making short flights as some have proposed.”

Elysian deserves credit for kicking the tires on some widely held views about electric aviation. The duopoly of Airbus and Boeing — the only institutions with the market influence and expertise to convene airlines, airports, regulators, and politicians in a joint effort to tackle electrification — have made only fitful attempts to develop such vehicles. That complacency has been fueled by the conclusion that large battery planes wouldn’t be viable over any distance, combined with the industry’s ability to obfuscate aviation’s rising carbon footprint by making dubious claims about the potential of sustainable aviation fuel.

This foot-dragging approach isn’t good enough. The development cycle for innovative aircraft is decades long, so if manufacturers and airlines are vaguely serious about their promise to reduce carbon pollution to net zero by 2050, work needs to be well underway already. Despite what airlines will tell you, there is no viable route map to guide us away from a future where flying accounts for 22% of emissions in 2050, compared to about 2% right now. In providing the first few waypoints toward that more sustainable destination, Elysian should be applauded.

BLOOMBERG OPINION

*It would likely be a larger share of the industry’s total greenhouse footprint, since the biggest factor inducing warming from aviation is not the carbon dioxide in aircraft exhaust but the contrails that form around it. This would be absent in an electric plane that doesn’t produce exhaust gases.

Origami-inspired medical facility wins grand prize at EDV competition

THE PROPOSED origami-inspired design concept for a medical facility by Donna Angelique Bihasa won the grand prize at the 20th Estilo De Vida competition. — PHOTO COURTESY OF DONNA ANGELIQUE BIHASA

AN ORIGAMI-INFLUENCED design proposal for a medical facility for abused women and children recently nabbed the grand prize at the prestigious 20th Estilo De Vida (EDV) competition.

Folding Spaces is the title of the proposed design concept for the medical facility by Donna Angelique Bihasa, a De La Salle-College of Saint Benilde Interior Design student. It was inspired by the Japanese art of traditional paper folding.

“Similarly, in rehabilitation, every small step, every moment of progress, contributes to the transformation of the individual’s well-being. It is not a procedure that can be rushed, just as you cannot fast-track the creation of a beautiful piece,” Ms. Bihasa said.

Ms. Bihasa used soft and warm neutral colors for the facility to impart a calm atmosphere.

EDV is an annual interschool competition established by businessman Jorge Consunji, and serves as a platform for college students to showcase their talents to industry professionals, contractors, and practitioners.

It challenged students to create multifunctional and efficient environments for a 28.8-square-meter (sq.m.) container van clinic and 24.5-sq.m. healthcare infirmary, which will be used as protection units for abuse survivors on their path to recovery.

Ms. Bihasa received a P150,000 cash prize for submitting the winning entry.

Carl Valdez from the University of the Philippines was named the first runner-up, while Clarisse Abrera from the Eulogio “Amang” Rodriguez Institute of Science and Technology  was the second runner-up.

The top 3 winning works will be donated to Amang Rodriguez Memorial Medical Center, National Children’s Hospital, and Ospital ng Makati for their renovation projects.

Dire Straits frontman Mark Knopfler’s guitar collection up for auction

The Mark Knopfler Guitar Collection —CHRISTIES.COM

LONDON — British musician and former Dire Straits frontman Mark Knopfler is selling off a large part of his extensive guitar collection at a London auction with part of the proceeds going to charity.

The collection, which includes some of the most significant guitars from Mr. Knopfler’s 50-year career, is on show at Christie’s auction house ahead of the Jan. 31 sale.

“It’s a wonderful collection of 122 items from Mark Knopfler spanning all of his career and it …represents physically his career as a musician and an instigator and supplier of our communal soundtrack,” Kerry Keane, Christie’s specialist consultant for musical instruments, told Reuters.

A 1983 red Schecter Telecaster-style guitar used to record Dire Straits’ hit “Walk of Life” and which featured in its accompanying music video is estimated at £4,000 – £6,000 pounds ($5,072 – $7,609).

A 1983 Gibson Les Paul Standard ’59 reissue used for the track “Money for Nothing,” which contains one of Knopfler’s most iconic guitar riffs, has an estimate of £6,000 – £8,000.

Christie’s said an original version of the 1959 Gibson Les Paul used by Mr. Knopfler for performances in the 2000s was likely to fetch the sale’s highest price, with an estimate of £300,000 to £500,000.

“It is a really special vintage instrument that in its own right without the Mark Knopfler connection is very valuable,” said Christie’s specialist head of private and iconic collections, Amelia Walker, who is leading the sale.

For Dire Straits fans with less cash to hand, the sale is also offering lots, including a balalaika, valued at £300-£500. — Reuters

Xiaomi eyes entry into Philippine EV market

CHINESE technology giant Xiaomi is considering introducing its recently launched electric vehicle (EV) into the Philippines, pending a market feasibility study.

“We have to study a lot of market trends and data if EVs will be a hit in the Philippines before we actually sell it,” Xiaomi Philippines Head of Marketing Tomi Adrias told reporters last week.

“We have to make sure our processes are basically cleared before we launch in the Philippines,” he added.

Xiaomi unveiled its EV, the Speed Ultra (SU) 7 sedan, in China in late December, with Chief Executive Officer Lei Jun expressing aspirations for Xiaomi to be among the world’s top five automakers in the next 15-20 years.

While Xiaomi has not specified the exact timeline for introducing the SU7 in the Philippine EV market, Mr. Adrias indicated that the launch would likely coincide with other global markets.

Highlighting Xiaomi’s diversified business portfolio beyond smartphones, Mr. Adrias underscored the company’s commitment to various sectors, including smart home appliances, smart manufacturing, EVs, and robotics.

“We always say Xiaomi is more than just a smartphone company, we have other devices such as smart home appliances, smart manufacturing, EVs, even robotics…but no exact timeline when that will be available globally, outside China, and more so for the Philippines,” he said.  

“But if that’s the direction of the global team, to sell the product in the Philippines or in other markets, then definitely we’ll launch Xiaomi EVs in the Philippines.”

Xiaomi International Southeast Asia General Manager Alex Tang expressed optimism about Xiaomi becoming a global player in the EV market.

“As we look at the whole business, we are very optimistic that one day we may enter into the international market because we want to be a global player for EVs. But in terms of the timeline, whether it be in Southeast Asia or the Philippines, it has not been determined yet.”

In response to evolving EV trends, the Philippine government implemented the Electric Vehicle Incentives Scheme in October, aiming to foster local EV development with a target of four million locally manufactured EVs in the next decade.

Additionally, Executive Order 12, issued in January, temporarily removed tariffs on imported EVs and reduced import duty rates for parts and components, creating a favorable environment for the EV market. — Aaron Michael C. Sy

Anti-financial account scamming bill to help address threats — BSP

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) is hoping the Senate can pass the Anti-Financial Account Scamming Act (AFASA) before Congress’ session ends in May, as this could help address the increase in crime involving banks, e-wallets, and other financial institutions.

During an information session for the media over the weekend, BSP Senior Assistant Governor Elmore O. Capule said Senator Mark A. Villar, who heads the Senate committee on banks, has said they target to pass the AFASA bill in May. 

“As a matter of fact, last week, we had another committee hearing in the Senate. And it’s favorable. Even the industry is supporting it,” Mr. Capule said.

“According to Senator Mark Villar, his committee will fast-track this because they realized that it is a law whose time has already come,” he added.

The proposed AFASA aims to prevent and penalize financial cybercrimes, imposing harsher penalties for illegal acts committed under the Revised Penal Code, such as online selling and investment scams, phishing, and other schemes of fraud. 

The bill has passed the House and is currently being discussed in the Senate, and a technical working group (TWG) composed of the BSP, the police, and communication officials was formed to finalize the substitute bill for AFASA.

Last week, Mr. Villar said the bill is expected to reach the plenary for debates once they resume session. He also ordered members of the TWG to come up with recommendations.

Mr. Capule said the bill authorizes the BSP to investigate cases involving the violation of the proposed law, apply for cybercrime warrants and orders, and request the assistance of law enforcers in the investigation of cases.

“The bill likewise includes a limited authority of BSP to examine and investigate financial accounts, e-wallets, and other financial accounts,” he said.

The BSP will also be exempted from existing laws on bank secrecy and data privacy to gather sufficient information in relation to the commission of the prohibited acts under the bill, he said.

“BSP really welcomes all the support that we can get to pass that bill,” Mr. Capule said. “We are almost at the finish line. We need more boost. And when that is passed, we help our consumers, the public.”

The AFASA bill and a measure seeking to ease the Bank Secrecy Law have been included in the Legislative-Executive Development Advisory Council’s list of 20 priority measures, which was approved by Congress last month.

Proposed amendments to the Bank Secrecy Law were also endorsed by the BSP, which are also being discussed by the Senate Committee on Banks.

“Essentially, that bill will give the authority to the BSP to look into bank deposits if there are insider abuse within the bank itself. It is important because we are the only country where we do not allow the banking regulator to look into bank deposits when there are issues against the owners,” Mr. Capule added.

Central bank officials have said amendments to the country’s Bank Secrecy Law will help the Philippines exit the Financial Action Task Force’s “gray list” of countries under increased monitoring for money laundering and terrorism financing risks.

The FATF, an intergovernmental organization combating money laundering and terrorism financing, added the Philippines to the list in June 2021 for several reasons, including risk of money laundering from casino junkets and lack of prosecution for terrorism funding cases.

The BSP is hoping the Philippines will be removed from the gray list by October 2024.

Meanwhile, BSP Managing Director for Financial Inclusion and Consumer Empowerment Sub-Sector Charina De Vera-Yap said the central bank received around 31,000 consumer complaints as of end-September 2023.

“Majority of the complaints are regarding e-money, but it’s mostly on account management. (Complainants) cannot access their accounts, they forget their passwords, and (they need guidance on) how to access their accounts,” she said.

The BSP processed 22,142 consumer complaints in 2022, data from the Consumer Assistance Mechanism (CAM) program showed.  Around 75% of these complaints were processed through its BSP Online Buddy (BOB), which went live in 2020.

BOB and the CAM program are part of the BSP’s efforts to use technology as an accessible and efficient platform for escalating complaints against supervised financial institutions of the central bank. — Keisha B. Ta-asan

Insurance sector targets growth despite cloudy outlook

OJ SERRANO-UNSPLASH

INSURERS will continue to target growth this year as they aim to help increase the insurance penetration rate in the Philippines, even as companies could face rising costs from claims amid expectations of elevated inflation.

“Elevated interest rates may not have that big an impact. However, heightened inflation will have a negative effect as it drives claims costs higher,” Philippine Insurers and Reinsurers Association, Inc. (PIRA) Executive Director and Fortune General Insurance Company President & Chief Operating Officer Michael F. Rellosa said in an e-mail. “High inflation affects our claims costs negatively. We have to watch our claims costs and keep them manageable.”

“A heightened sense of vulnerability would hopefully spur more people to insure themselves. However, if the economy is bad, then there would be less disposable income and insurance becomes less of a priority,” he added.

The Philippines’ insurance penetration rate, or the premium volume as a share of gross domestic product or contribution of the insurance sector to the national economy, stood at 1.68% at end-September 2023, Insurance Commission (IC) data showed, lower than the 1.81% in the same period last year.

Meanwhile, data released by the Philippine Statistics Authority on Friday showed headline inflation slowed to 3.9% in December from 4.1% in November and 8.1% a year ago.

This is the first time the consumer price index was within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target in nearly two years and was the slowest reading in 22 months or since 3% in February 2022.

However, the 2023 inflation average stood at a 14-year high of 6%. This was above the 5.8% in 2022 and marked the second straight year that average inflation breached the BSP’s 2-4% target.

Amid expectations of continued elevated inflation this year, the insurance sector should adopt new technologies to keep up with changing times, Mr. Rellosa said.

“As the insurance industry faces various challenges that require innovative solutions, insurance companies should invest in digital transformation, compliance tools, cybersecurity measures, talent management programs, and customer-centric strategies to overcome these challenges,” he said.

The industry’s required shift to International Financial Reporting Standard (IFRS) 17 in 2025 will also mean changes to operating and computer systems, he said, which could cost companies millions.

“On top of that, IFRS 17 basically requires the industry to realize a loss on the business it writes, and over time, this turns into profit if no claims are made. This may have tax implications, which we are currently looking into,” Mr. Rellosa said.

Singlife Philippines, Inc. Co-Founder and Executive Director Sherie Ng said insurers should look into tapping technologies such as artificial intelligence (AI) and blockchain to distribute policies.

“I think the pandemic has shown us that technology will be in every facet of every industry. I’m a firm believer that technology is the way for us to transform the way we work, live and play,” she said.

Ms. Ng said Singlife is currently the only life insurance company that uses AI to automate the customization of policies to clients and blockchain to boost security.

“To do this without technology is the traditional way of talking to an advisor, and that’s costly and time-consuming. AI enables us to tailor-make and customize the features of a policy for an individual. You can only do that cost effectively through technology. Blockchain also allows us to manage our policy and administration in a very cost effective and safe way,” she said.

Ms. Ng also noted that the insurance market needs a new way to distribute policies as the current insurance penetration rate was achieved through “traditional means.”

For his part, Philippine Life Insurance Association, Inc. (PLIA) President and Etiqa Philippines President and Chief Executive Officer Rico T. Bautista said raising the country’s insurance penetration rate will depend on the country’s economic growth.

“I am positive that the insurance industry as a whole, and specifically the life insurance industry penetration rate, will continue to maintain its current rate for [this] year as we are hoping to see improved GDP (gross domestic product) growth in the country,” Mr. Bautista said in an e-mail.

The Development Budget Coordination Committee on Dec. 15 revised its growth target for 2024 to 6.5-7.5%, narrower than the previous 6.5-8% goal.

Still, this is slightly faster than the 6-7% GDP growth goal for 2023.

Latest data from the Philippine Statistics Authority showed GDP growth averaged 5.5% in the first nine months of 2023. To meet the lower end of the government’s target for last year, the economy should have expanded by 7.2% in the fourth quarter.

Mr. Rellosa said the industry also wants to further promote microinsurance to help bridge the protection gap in the country.

As for the reinsurance sector, the official said he is hopeful that the sector can stabilize this year.

“Barring any major claims arising out of catastrophic events, and with hopefully a softening of the reinsurance market the growth and profit trajectory may remain,” Mr. Rellosa said.

“However, it is a slippery slope as the Philippines is the most vulnerable country to catastrophic events and indications are that the reinsurance market will remain hard,” he added.

The El Niño weather event, natural disasters, compliance issues, cybercrime, and a shortage of talent will continue to challenge nonlife insurers in 2024, Mr. Rellosa said.

The insurance sector saw its overall net income grow by 9.38% to P38.28 billion at end-September 2023, up from P35 billion in the same period in 2022, IC data showed.

This came as the life and nonlife insurance sectors saw higher premiums and as mutual benefit associations (MBAs) posted increased contributions in the period.

The premium income of life insurance companies grew by 13.93% to P229.89 billion in the first nine months of 2023, with P46.57 billion coming from new business. The sector posted a net income of P28.79 billion in the period, up by 10.32% from P26.10 billion a year prior.

Meanwhile, the nonlife insurance sector’s total net premiums written rose by 15.56% to P48.21 billion at end-September. The segment’s net profit increased by 14.99% to P5.48 billion from P4.76 billion a year prior.

Lastly, MBAs saw contributions rise by 7.43% to P11.494.4 billion in the first nine months of 2023. However, net earnings of MBAs declined by 3.05% to P4.01 billion from P4.14 billion a year prior due to a 32.72% rise in total underwriting expenses amounting to P9.64 billion. — A.M.C. Sy

Oppenheimer leads BAFTA Film Awards nominations

CILLIAN MURPHY in a scene from Oppenheimer. —IMDB.COM

LONDON — Historical drama Oppenheimer, one of last year’s highest-earning movies, led nominations for the BAFTAs with 13 nods on Thursday, but the omission of some favorites from Britain’s top movie honors surprised fans.

Oppenheimer, about the making of the atomic bomb, was followed by sex-charged gothic comedy Poor Things, with 11 nominations for the BAFTA Film Awards, which will be handed out at a ceremony next month.

Martin Scorsese’s Killers of the Flower Moon, about the murders of members of the Osage Nation in the 1920s, and The Zone of Interest, which tells the story of a family living next to Auschwitz, both received nine nods.

Oppenheimer, Poor Things, and Killers of the Flower Moon will compete for the top prize, best film, alongside courtroom drama Anatomy of a Fall and The Holdovers, a comedy set in a boys’ boarding school.

Pink-themed phenomenon Barbie, the highest grossing film of 2023, missed out in that category but got five nominations overall.

“It has been an outstanding year for filmmaking as represented by the 38 films nominated today,” Anna Higgs, chair of BAFTA Film Committee, said in a statement.

“They showcase ambitious, creative and hugely impressive voices from independent British debuts to global blockbusters, from complex moral issues through to joyful journeys of self-discovery. They all ultimately explore human connection.”

Based on the 2005 biography American Prometheus by Kai Bird and Martin J. Sherwin, Oppenheimer focuses on J. Robert Oppenheimer, taking audiences back to when the American theoretical physicist oversaw the creation of the atomic bomb during World War II.

An awards season favorite, it has picked several prizes already, including five Golden Globes.

Cillian Murphy was recognized in the BAFTA leading actor category for his portrayal of Oppenheimer. Fellow cast mates Robert Downey, Jr. and Emily Blunt were also nominated in the supporting acting categories. Christopher Nolan was recognized for best director and adapted screenplay.

“I couldn’t be happier that the British Academy recognized so many of my collaborators on Oppenheimer, especially Chris Nolan,” Mr. Murphy said. “Working on the film was an experience I’ll never forget.”

‘SHOCK’
Poor Things received a leading actress nod for Emma Stone, who has already pick up awards for her performance, as well as recognition in the outstanding British film and adapted screenplay categories.

Other leading actress contenders include Margot Robbie for Barbie, Carey Mulligan for Maestro, Fantasia Barrino for The Color Purple, Vivian Oparah for Rye Lane, and Anatomy of a Fall’s Sandra Hüller, who was also nominated in the supporting actress category for The Zone of Interest.

Golden Globe winner Lily Gladstone, considered a strong contender for the best actress Oscar, was not nominated for Killers of the Flower Moon, neither was Mr. Scorsese as director.

Various media outlets described Ms. Gladstone’s omission as a “shock.”

Alongside Mr. Murphy, Bradley Cooper of Maestro, Barry Keoghan for Saltburn, Colman Domingo for Rustin, Paul Giamatti of The Holdovers and Teo Yoo for Past Lives make up the leading actor nominees.

None of the best director contenders has previously won the award, and four out of the six were first-time director nominees: Jonathan Glazer for The Zone of Interest, Alexander Payne for The Holdovers, Andrew Haigh for mystery drama All of Us Strangers, and Justine Triet for Anatomy of a Fall.

Ms. Triet is the only woman on the list, with the omission of Barbie director Greta Gerwig raising some eyebrows.

“Barbie’s done incredibly well. It’s brilliant to see Greta nominated for (original) screenplay, for Margot and for Ryan to be nominated,” Sarah Putt, chair of BAFTA, told Reuters, referring to Ryan Gosling’s supporting actor nomination.

“It’s a very, very competitive year.”

Known as the BAFTAs (British Academy of Film and Television Arts), the awards ceremony takes place in London on Feb. 18. — Reuters

Philippines falls in Social Progress Index ranking

The Philippines fell by six places to rank 87th out of 170 countries and scored 66.16 out of 100 in the latest edition of the annual Social Progress Index by American nonprofit organization Social Progress Imperative. This was the country’s lowest rank since it was included in 2011.

 

Philippines falls in Social Progress Index ranking

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