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US Supreme Court lets Border Patrol remove Texas razor-wire fencing – for now

REUTERS

The United States Supreme Court on Monday agreed to temporarily let US Border Patrol agents cut or remove razor-wire fencing that Texas officials placed along part of the Republican-governed state’s border with Mexico to deter illegal border crossings.

The justices, in a 5-4 decision, granted a request by President Joe Biden’s administration to pause a lower court’s ruling that temporarily blocked federal agents from disturbing the fencing while litigation over the issue proceeds.

Two conservative members of the court – Chief Justice John Roberts and Justice Amy Coney Barrett – joined the three liberal justices in the majority, with conservative Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Brett Kavanaugh dissenting.

The New Orleans-based 5th US Circuit Court of Appeals, which issued the disputed interim ruling, is set to hear arguments on Feb. 7 over whether Border Patrol agents violated Texas law by cutting the razor-wire barrier.

The fencing at issue in the dispute was installed on private property along the Rio Grande river by the Texas National Guard as part of what was called Operation Lone Star, launched by Republican Texas Governor Greg Abbott in 2021 to deter illegal border crossings.

Texas sued the administration in October 2023 over what it said was an intensified practice by US Customs and Border Protection agents of cutting, destroying or otherwise damaging fencing that the state had strategically placed on private land with the permission of landowners.

US District Judge Alia Moses, while criticizing the Biden administration for its “utter failure” to prevent unlawful entries into the United States, ruled in November that the legal claims made by Texas could not overcome the federal government’s sovereign immunity in the case. Such immunity protects the federal government from civil lawsuits and criminal prosecution.

After Texas appealed, the 5th Circuit on Dec. 19 granted the state’s request to temporarily block federal agents from “damaging, destroying or otherwise interfering with” the razor-wire fencing while the case played out, except “if necessary to address any medical emergency.”

The 5th Circuit in its ruling said Moses misinterpreted a law granting the US government immunity from some legal claims by states, and that Texas was likely to prevail in its lawsuit.

The Biden administration, in a Jan. 2 court filing, urged the justices to halt the 5th Circuit’s ruling, saying there was no indication that the wire had deterred migrants from crossing into the United States.

In a subsequent Jan. 12 filing, the administration said Texas had set up new barriers along part of the state’s border with Mexico that impeded the ability of Border Patrol agents to monitor and respond to emergencies.

On Monday, the White House welcomed the Supreme Court’s decision.

“Ultimately, we need adequate resources and policy changes to address our broken immigration system…. That is why he (Biden) is working to find a bipartisan agreement with Congress that includes additional resources and meaningful policy reforms,” a spokesperson said in a statement.

Republicans have sharply criticized Biden’s immigration policies and the flow of illegal entries across the US border with Mexico – an issue certain to heat up ahead of the Nov. 5 election in which the Democratic president is seeking another four years in office. — Reuters

DoF chief joins BSP’s Monetary Board

FINANCE SECRETARY RALPH G. RECTO — DEPARTMENT OF FINANCE

By Keisha B. Ta-asan, Reporter

NEWLY APPOINTED Finance Secretary Ralph G. Recto took his oath as a member of the Monetary Board on Monday, the Philippine central bank said, taking the last seat in the seven-member policy-making body.

Mr. Recto is expected to prioritize inflation while pushing stable economic growth, analysts said.

“He is responsible for National Government debt and taxes,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said in a Viber message. “He ensures that growth continues by providing inputs to the Monetary Board to help support and stabilize growth.”

Mr. Recto, a former lawmaker who was appointed Finance chief last week, will represent President Ferdinand R. Marcos, Jr.’s Cabinet at the Bangko Sentral ng Pilipinas’ (BSP) highest policy-making body.

The Monetary Board is headed by Governor Eli M. Remolona, Jr., who led Mr. Recto’s oath-taking at the central bank office in Manila, the BSP said in a statement.

The board also has five full-time members from the private sector, namely Benjamin E. Diokno, V. Bruce J. Tolentino, Anita Linda R. Aquino, Romeo L. Bernardo and Rosalia V. de Leon.

Mr. Diokno is Mr. Recto’s predecessor at the Finance department and Ms. De Leon used to be the national treasurer.

Ms. Aquino held key positions at Standard Chartered Bank Manila, Rizal Commercial Banking Corp., Citicorp Investment Bank in Singapore and Citibank N.A. Manila.

Mr. Tolentino was the deputy director-general of the International Rice Research Institute, served as chief economist and country representative at The Asia Foundation and was senior economic policy adviser at the Asian Development Bank (ADB).

Meanwhile, Mr. Bernardo was an analyst for the Philippines at GlobalSource Partners. He used to be a Finance undersecretary and an alternate executive director at the ADB.

Mr. Recto would give the Monetary Board a clear perspective on how monetary policy and banking regulation can support economic growth, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“Immediate priorities should include forming a view on when to cut the policy rate and taking the necessary steps to remove the Philippines from the Financial Action Task Force’s (FATF) ‘gray list,’” he added.

Before his appointment to the Finance department on Jan. 15, Mr. Recto served as Batangas representative and was a deputy speaker of the House of Representatives.

He was a senator for three terms and held key positions including as a minority leader. He pushed higher value-added taxes (VAT) in the Senate in the early 2000.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., said the central bank is already doing a good job in keeping prices stable.

“It will depend on current economic conditions but generally, Mr. Recto should try to help the economy get back to a lower inflationary environment with tools at his disposal,” he said in a Viber message.

The Monetary Board raised borrowing costs by 450 basis points from May 2022 to October 2023. This brought the key interest rate to 6.5%, the highest in 16 years.

Despite the high interest rate environment, the Philippine economy expanded by 5.9% in the third quarter, faster than 4.3% in the second quarter.

For the nine months ended September, economic growth averaged 5.5%, below the government’s 6-7% full-year goal.

Mr. Remolona earlier said it is unlikely for the BSP to start easing policy rates in the first half given risks to inflation.

The central bank sees inflation easing to 3.7% this year and to 3.2% in 2025. Inflation in 2023 was 6%, breaching the 2-4% target for the second straight year.

The BSP will hold its first policy meeting this year on Feb. 15.

The FATF has kept the Philippines under a “gray list” of countries under increased monitoring for money laundering and terrorism financing risks since June 2021.

Government officials expect the Philippines to get out of the gray list in October after failing to meet the January deadline.

Philippines should fix broadband ‘duopoly’ — WB

STOCK PHOTO | Image from Freepik

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT should address barriers to efficient broadband infrastructure to help bridge the widening digital divide in the Philippines, where the market remains a duopoly, according to the World Bank (WB).

“The broadband market in the Philippines is an effective duopoly with two large telcos,” it said in a policy note discussing reforms to promote competition and increase investment in broadband infrastructure. “Globe and PLDT Inc./Smart [Communications, Inc.] are vertically integrated.”

“They own international connectivity, backbone, middle- and last-mile networks and have the majority subscriber share,” it pointed out. “Over 500 providers acting as retailers rely on wholesale infrastructure, either from the duopoly or market challengers.”

PLDT had P205 billion in revenue in 2022, while Globe had P175 billion, the multilateral lender said in its report. Converge ICT Solutions, Inc., a late third player, only had P34 billion.

PLDT and Globe said they were both working on a response to the World Bank study when sought for comment in separate Viber and Facebook Messenger chats.

“Laws on connectivity have remained unchanged despite vast technological advancements, evolving business models and widening access gap,” the World Bank said.

Among Association of Southeast Asian Nations (ASEAN), the Philippines is the least favorable on policy environment for affordable broadband, and among the slowest in the world in promoting reforms to make it more affordable, it added.

The World Bank cited data showing household penetration for fixed broadband in the Philippines at 33% in 2022. The cost of fixed broadband was more than four times more expensive than Malaysia and Vietnam and more than double the ASEAN average, it said.

For mobile broadband — considered the driver of consumer adoption of e-commerce, financial inclusion, disaster response and agriculture practices — active subscribers in 2022 were 70 per 100 inhabitants, the lowest among large ASEAN economies, it added.

Poor internet access and lack of digital infrastructure also affect crucial industries such as the service sector.

For example, the information technology and business process outsourcing industry, which creates jobs and drives the growth in service exports, remained constrained in a few locations, the World Bank said.

Unfortunately, the Philippines has been the last investment destination among major ASEAN economies for “hyper-scaler cloud service providers” such as Amazon and Google, it added.

“The cost of inaction — loss of growth opportunity, people remaining unequipped for future jobs and widening of the digital divide — is too high for the Philippines,” the lender said.

“Unaddressed, weak internet might derail the country’s achieving upper middle-income status in the coming years and its aspiration for a prosperous middle-class society by 2040,” it added.

The World Bank said the country’s internet connectivity lags its ASEAN peers in terms of affordability, speed and access, creating an “uneven landscape for digital participation.”

“Access to broadband is fundamental to participating in a country’s digital transformation,” it said. “However, the digital divide in the Philippines is rapidly expanding. In the least populated areas and remote islands, progress in household internet penetration over the last 10 years has only been a third of progress made in populated urban centers.”

‘BINDING CONSTRAINTS’
In 2022, the Philippines invested 0.44% of its gross domestic product (GDP) in broadband infrastructure, compared with the majority of developing countries that have invested at least 1% of their GDP in telecommunication infrastructure for at least a year.

The bank also estimated that the investment gap in the Philippines is about $2 billion (P112.8 billion) yearly.

“Binding constraints to competition and investment in the Philippine broadband infrastructure are interrelated, with cumulative effects of policy actions (or inactions) reinforcing the market structure and operators’ conduct,” it said.

“Recent economic reforms such as the removal of foreign ownership restrictions in 2022 and the introduction of the competition law in 2015 have not significantly altered the market dynamics in the broadband sector under the prevailing legal system,” it added.

The World Bank cited barriers to market entry and investment, an unlevel playing field and the lack of an infrastructure sharing policy framework, among other things.

It called for reforms in broadband infrastructure policies to encourage investment and competition.

“Interrelated policy and regulatory barriers underlying poor internet in the Philippines require a comprehensive package of reforms,” the lender said. “An outdated franchising and licensing regime and rigid and nontransparent spectrum management have discouraged connectivity infrastructure deployment and efficient resource reallocation.”

The World Bank said there is rich literature citing global evidence on the impact of reforms on broadband infrastructure investment and performance, including through the liberalization of foreign investments.

The government also plays a crucial role in bridging the digital divide by channeling its resources to the poor, the multilateral lender said.

“The government can complement pro-competition policy reforms with direct public investments in justifiable, efficient and sustainable ways,” it said.

“As the government prioritizes digitalization with a view toward benefiting all Filipinos, updating policy to promote competition, encourage investment and upgrade broadband infrastructure is urgent and necessary,” it added.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Finance secretary eyes free trade deal with US

BERND DITTRICH-UNSPLASH

By Luisa Maria Jacinta C. Jocson, Reporter

FINANCE SECRETARY Ralph G. Recto is eyeing a free trade agreement (FTA) with the United States after meeting with US officials on Monday to discuss efforts to boost ties, according to his office.

They discussed efforts to “boost economic and investment cooperation between the Philippines and the US,” the agency said in a statement. “He also broached the potential of having an FTA with the US and further enhancing security and military ties between the two nations.”

The government of President Ferdinand R. Marcos, Jr. would seek to address investor concerns by improving the ease of doing business, Mr. Recto said in the statement, citing a push for lower corporate income tax under changes to the Corporate Recovery and Tax Incentives for Enterprises Act.

A House of Representatives committee last week endorsed to members the substitute bill that will also streamline the tax refund system for corporations.

“In response, US officials welcomed these developments and expressed optimism about further deepening partnership with the Philippines, pointing out that the country’s young, English-speaking population and strong macroeconomic fundamentals underscore its attractiveness as a viable investment destination,” the Finance department said.

“The US likewise expressed interest in helping the Philippines establish an investment mechanism to help the country screen foreign direct investments (FDI) for national security purposes,” it added.

Meanwhile, Trade Undersecretary Allan B. Gepty said negotiations for a free trade deal are welcome.

“The Philippines has been advocating an FTA with the US, which is one of our major trading and investment partners,” he said in a Viber message. “However, the US is not yet keen or open to the arrangement. We welcome any move that will lead to an eventual FTA.”

In April, US Trade Representative Katherine Tai said the US is not seeking any free trade agreements with the Philippines or any of its trading partners.

The Philippines has been pushing readmission into the US Generalized System of Preference program, which expired in 2020. Participation in the trade program requires the approval of the US Congress.

Calixto V. Chikiamco, Foundation for Economic Freedom president, said Mr. Recto’s proposal is a positive development but is not realistic.

“The US has been moving away from free trade agreements due to political pressure from US labor,” he said in a Viber message. “In fact, even the limited agreements under the Indo-Pacific Economic Cooperation haven’t gotten approval from the US Senate.”

“It would be better if the Philippines joined the Comprehensive and Progressive Agreement for Transpacific Partnership led by Japan,” he added.

Signed in 2018, the free trade deal includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The Philippines should also forge free trade agreements with the EU and Canada, Mr. Chikiamco said. “The Philippines, however, should also develop its defense industries to take advantage of the increased defense spending of allies like the US, Japan, Australia and the EU.”

The Finance department said the US officials present at the meeting included Robert Kaproth, Treasury Department deputy assistant secretary for Asia; Treasury Financial Attaché to Southeast Asia Daniel Hall; and US Embassy Chargé d’affaires and Deputy Chief of Mission Robert Ewing.

It said a “high-level delegation” from the US would visit the Philippines in March to strengthen bilateral ties.

IMF: AI may boost Philippine labor productivity

FREEPIK

By Keisha B. Ta-asan, Reporter

THE SHIFT to artificial intelligence (AI) technologies could increase labor productivity in the Philippine service sector, the International Monetary Fund (IMF) said. 

“Because of the Philippine economy’s early structural transformation to a service-based economy, raising the level of service sector labor productivity through digital skills and portability will be essential,” IMF Resident Representative to the Philippines Ragnar Gudmundsson said in an e-mail. 

“This will require upskilling of the labor force to leverage artificial intelligence tools and continue to move up value chains, as well as efforts to develop the country’s digital infrastructure especially outside urban centers,” he added.

Mr. Gudmundsson said the IMF is working on a study on how AI technologies could affect the Philippines.

Last week, the IMF said AI could affect nearly 40% of global employment. While it is seen to complement human work, it might replace other jobs and would likely worsen economic inequality. 

It said about 60% of jobs in advanced economies are exposed to AI. About half of these jobs will benefit from AI integration by boosting labor productivity.

But the other half showed that AI could perform tasks done by humans, effectively lowering labor demand and leading to lower wages and reduced hiring, the IMF said.

In emerging markets and low-income countries, AI exposure is expected at 4% and 26%, respectively.

“These findings suggest emerging market and developing economies face fewer immediate disruptions from AI,” IMF Managing Director Kristalina Georgieva earlier said.

“At the same time, many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” she added. 

Senti AI Founder and Chief Executive Officer Ralph Vincent J. Regalado cited risks in jobs that can be automated with technology.

“Given the rise of generative AI technologies, we’ve seen that adoption has increased and most observed that it aids productivity,” he said in an e-mail. “It’s important that we invest in the education of our people, teaching them how to use these technologies to boost their work and be competitive in the job market.”

Mr. Regalado noted that companies and organizations should support affected employees by helping them acquire new skills.

AI would likely affect several industries including the technology, banking and the pharmaceutical and medical product sector, he said.

STATE SUPPORT
“The sectors identified by the IMF in high-income countries would also be the same here in the Philippines,” he said. “Mid- and high-level positions can definitely increase their productivity by using AI tools to offload some of their tasks.”

AI can enhance public services, modernize finance and boost the agriculture and healthcare sectors, according to the IMF report.

Regardless of the industry, any job that requires menial, low-level tasks that can be digitalized will be affected the most by AI, Mr. Regalado said. These include sales, customer service and data encoding jobs.

“This is not to say that all workers in these lines of work will be removed,” he said. “Companies that use conversational AI to handle inbound calls or customer chats may employ fewer workers to just monitor the logs and intervene if the customer requests a human agent.”

“Finance and accounting departments can spend less on staff manually encoding paperwork and just have them double-check the accuracy of data extracted through Document AI,” he added.

However, the Philippines is behind advanced economies due to the lack of infrastructure and manpower, Mr. Regalado said.

Businesses might also find it more expensive to invest in a new system versus relying on human labor, he added.

The Philippines fell 11 places to 65th out of 193 countries in the 2023 Government AI Readiness Index by Oxford Insights. It scored 51.98 out of 100, higher than the 44.94 global average.

Mr. Regalado said the government should lead in advocating AI adoption.

“Investing more in AI companies and research is one way,” he said. “The public sector shouldn’t shy away from collaborating with the private sector to look into ways the Philippines can benefit from increased AI adoption.”

The government should improve infrastructure to accommodate AI, including stable energy and internet connections.

“Mandating and even providing incentives to encourage businesses and government agencies to adopt and use tools that can improve productivity is another good idea,” Mr. Regalado said.

PCC clears sale of ABS-CBN’s Sky Cable to PLDT

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Revin Mikhael D. Ochave, Reporter

THE Philippine Competition Commission (PCC) has approved the sale of Sky Cable, a subsidiary of media company ABS-CBN Corp., to telecommunications giant PLDT Inc.

Competition watchdog PCC gave the go-signal for Sky Cable to be sold to Pangilinan-led PLDT, ABS-CBN said in a disclosure to the stock exchange on Monday. Sky Cable provides broadband, enterprise cable broadband, pay television, and cable services.

The Lopez-led media company said the deal involves the sale of 100% of Sky Cable’s total issued and outstanding capital stock to PLDT, “subject to a number of closing conditions.”

“ABS-CBN will disclose material information to update the disclosure made to the exchange on March 16, 2023 once they become available,” it said.

In a separate stock exchange disclosure, PLDT said that the proposed transaction will not be implemented until all closing conditions are fulfilled.

In March of last year, PLDT announced its plan to acquire Sky Cable for P6.75 billion, aiming to expand its coverage and services.

The transaction involves the sale of about 1.38 billion common shares at P4.90 apiece, with the purchase price based on the agreed equity valuation of Sky Cable’s shares as of Dec. 31, 2022.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet welcomed the news, saying it is positive for ABS-CBN investors.

“This deal is particularly important to ABS-CBN as the proceeds will be used to reduce the company’s debt load, and the divestment will free up management’s time and resources to focus on content creation and explore new business opportunities,” he said in a Viber message.

He also said the move will not result in competition issues, adding that Sky Cable is not expected to have a material impact on PLDT’s financial performance in the near term.

“The remaining major players in the industry are already highly competitive as it is,” he said.

April Lynn Lee-Tan, chief equity strategist at COL Financial Group, Inc., said in a separate phone message that the acquisition will “expand PLDT’s market share.”

China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said the acquisition will provide growth opportunities for PLDT’s home business.

“PLDT will also have the opportunity to migrate Sky Cable’s broadband customers into their higher value products -— which should help prop up top line growth prospects,” he said in an e-mail interview.

“We note such inorganic growth opportunities are a welcome development for telcos, especially as the postpaid broadband market is believed to be nearing saturation and the overall legacy telco sector is already considered a mature industry (i.e., limited growth prospects),” he added.  

On Monday, PLDT shares rose by P26 or 2.05% to P1,296 apiece while ABS-CBN stocks fell by one centavo or 0.2% to P4.99 each.  

 Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. 

DILG to push for 3-year tax holiday for local films

THE DEPARTMENT of the Interior and Local Government (DILG) has backed local film producers in their plea to reduce what they say is the excessive tax burden that makes it difficult to produce more movies.

At a meeting with representatives from the local entertainment industry, DILG secretary Benjamin “Benhur” Abalos, Jr. assured that he would speak with various local government units (LGUs) to present a solution — a three-year holiday on the collection of amusement taxes.

This will allow the local film industry to bounce back from losses due to the pandemic and due to the ongoing issue of piracy, he said at a press conference held after the meeting on Jan. 18 at Camp Crame.

Mr. Abalos noted that movie producers must worry about the 10% amusement tax in addition to the 12% value-added tax (VAT) and paying for the multiple permits needed to shoot in various cities.

“I will talk personally with all the mayors of Metro Manila, give them the numbers to start everything right. Later on, through different leagues, we will give them a full presentation,” he said.

According to film producer and lawyer Josabeth V. Alonso, a film that earns P100 million at the box office will generate a net revenue of P35 million to P37 million after all the tax deductions and distribution fees.

She said that only few locally produced films released in 2023 hit P100 million, with most grossing “an average of P2 [million] to P12 million only.” The additional income from an amusement tax holiday would be a big help to producers, cinema operators, and other industry stakeholders, she said.

In 2019, the Supreme Court rejected the Film Development Council of the Philippines’ (FDCP) motion to grant films amusement tax privileges, saying this violated “the principle of local fiscal autonomy,” with the removal of amusement taxes detrimental to LGUs.

“This autonomy is given by law, so we will just have to ask LGUs to waive taxation,” Mr. Abalos said. He revealed that his father, Mandaluyong Mayor Benjamin Abalos, Sr., was receptive to this and has informally agreed to it.

“If more [LGUs] do it, it will be a very good gesture to keep the ball rolling,” he added.

FDCP chair and veteran actor Tirso Cruz III brought up the need for LGUs to streamline the procedure of securing permits for production, which will encourage both local and foreign producers to make films in the Philippines.

“For foreign producers who are interested in shooting films here, there are over 7,000 islands to choose from… We can entice them to go here,” he said.

In addition, Mr. Abalos emphasized that law enforcement agencies like the Philippine National Police (PNP), National Telecommunications Commission (NTC), and National Bureau of Investigation (NBI) must boost their campaign against piracy.

“It greatly hurts the film industry. We need to give them a healthy environment to help them recover,” Mr. Abalos said.

Currently, only the city governments of Las Piñas and Quezon City do not charge amusement taxes, while Pasay reduced its rate to 5%. Other LGUs still collect 10% amusement tax. — Brontë H. Lacsamana

Five companies keen on Meralco power supply needs

PHILIPPINE STAR/MICHAEL VARCAS

THREE companies are looking to vie for Manila Electric Co.’s (Meralco) 400-megawatt (MW) baseload requirement, while two have expressed interest in the 260-MW peak requirement.

Masinloc Power Partners Co. Ltd. (MPPCL), Limay Power, Inc. (LPI), and First NatGas Power Corp. (FNPC) expressed interest and participated in the pre-bid conference on Monday for Meralco’s 400-MW baseload requirement.

MPPCL and LPI are under San Miguel Global Power Holdings Corp. (SMGPH), the power arm of listed conglomerate San Miguel Corp. 

FNPC, led by the Lopez Group, operates the 420-MW San Gabriel natural gas-fired power plant in Batangas.

Meanwhile, 1590 Energy Corporation (1590 EC) and San Roque Hydropower, Inc. (SRHI) participated in a separate pre-bid conference for the 260-MW peak requirement.

1590 EC owns and operates the 225-MW diesel power plant in Bauang, La Union. It is owned by Vivant Energy Corp., a wholly owned subsidiary of listed Vivant Corp.

SRHI, formerly known as Strategic Power Development Corp., is another subsidiary of SMGPH, serving as the administrator of the 345-MW San Roque hydroelectric power plant through an independent power producer administrator agreement.

The competitive selection process, a government-mandated transparent bidding process, aims to select the least-cost electricity supply.

Under the terms of reference for the interim power supply agreements, bidders must offer a minimum contract capacity of at least 50 MW.

Meralco said that the conduct of bidding for the 260-MW peak requirement and 400-MW baseload requirement are in preparation for the expected increase in demand during the dry months.

The deadlines to submit bids are set for Feb. 26 and 27, respectively.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Wilcon Depot targets to open 100th store before yearend

LISTED construction supplies retailer Wilcon Depot, Inc. is aiming to reach 100 stores before the end of the year, a company official said.

The company opened its 91st store on Jan. 12 in Morong, Rizal, Wilcon’s Chief Operating Officer and Senior Executive Vice-President Rosemarie B. Ong said at the inaugural meeting of the Management Association of the Philippines last week.

“Barring any unforeseen events [we reach 100 stores before yearend]; we are trying to fast-track it,” she said.

“We are targeting to open eight to ten stores a year,” she added.

She also discussed Wilcon’s move to include farming and agricultural products in its offerings, supporting the company’s expansion beyond Metro Manila.

“We’re going outside Metro Manila, and then we have to address that market for them to make it accessible, especially the agricultural tools that they will use,” she said.

“It’s really more on construction for homes. But then we have to get into the market because most of the areas that we go to are agricultural areas. So to make it accessible for the farmers, especially for those in agriculture, we’re trying to expand our category into that also,” she added.  

On Jan. 17, Wilcon’s board approved the amendment to its articles of incorporation to include agricultural tools and equipment, pesticides, and fertilizers to its primary purpose. It will add farming and agricultural products to the company’s product line.  

The amendment is set to be presented to the company’s stockholders for approval during the annual stockholders meeting, with no scheduled date yet.

Wilcon Depot’s shares rose by five centavos or 0.23% to P22 apiece on Monday. — Revin Mikhael D. Ochave 

Rewind breaks PHL domestic box-office record

REWIND is now the highest-grossing Filipino film of all time, nearly a month since its premiere at the Metro Manila Film Festival (MMFF) on Dec. 25, 2023.

The romance-drama has grossed P815 million in the domestic box-office, said Star Cinema on Jan. 17.

It took the top spot held by the 2019 film Hello, Love, Goodbye, starring Kathryn Bernardo and Alden Richards and directed by Cathy Garcia-Molina, which earned P691 million in domestic sales.

The announcement was made on the social media posts of Star Cinema, which produced both films.

Although the MMFF has ended its run, Rewind is still showing in many cinemas nationwide. It will also be screened at the inaugural Manila International Film Festival (MIFF) from Jan. 29 to Feb. 2 in Los Angeles, California, USA.

Rewind tells the story of a married couple, John and Mary. After Mary dies in a car accident, John gets a chance to “rewind” to the day before the accident.

The film is directed by Mae Cruz-Alviar and stars real-life celebrity couple Marian Rivera and Dingdong Dantes in their long-awaited comeback reunion on the big screen.

However, counting its worldwide gross, Hello, Love, Goodbye remains the country’s highest-grossing film. It took P880 million in global ticket sales in 2019, while Rewind only has a total of P845 million — so far.

Given its upcoming MIFF run in Los Angeles and its ongoing run in the US and Canada, it may yet overtake the 2019 film.

During the Rewind thanksgiving party, Mr. Dantes said that the film made such an impact on him and his wife that they felt fulfilled when it was completed.

“We prayed that, hopefully, through this film and also through the nine other beautiful films [in the MMFF lineup], our industry can come alive again,” Mr. Dantes said in the vernacular during his speech at the party, which was uploaded on the Star Cinema YouTube page on Jan. 17. — Brontë H. Lacsamana

Phoenix Petroleum halts importation of diesel, gasoline

PHOENIXFUELS.PH

PHOENIX Petroleum, Inc. has temporarily halted the importation of diesel and gasoline since March last year, the listed oil company said on Monday.

In a clarification, the company told the stock exchange that it prefers buying domestic fuels over imported ones.

“This way, it allows the company to manage its resources as well as reduce and manage risks due to inventory losses. Nonetheless, should trading conditions change, the company will evaluate its supply approach and strategy,” Phoenix said.

The company incurred a net loss of P3.68 billion in the first nine months of 2023, a wider figure compared to the P1.07-billion net loss in 2022.

Revenues declined by 57.2% to P42.8 billion from the previous P99.92 billion.

The company attributed the decline to a 46.8% decrease in the total volume sold, which amounted to 1,156 million liters, compared to the 2,177 million liters in the previous year.

The company is considering entering into a sale-and-leaseback agreement with BDO Unibank, Inc. to restructure its debts, it said during its annual stockholders meeting in October.

The proposed deal involves some of the company’s assets such as terminals, depots, and retail stations, which the company could repurchase within three to five years from the time of sale.

Shares of the company declined by 20 centavos or 4.17% to close at P4.60 apiece. — Sheldeen Joy Talavera

Relevant leadership for a progressive Philippines

FREEPIK

(This was lifted from the Inaugural Address delivered on Jan. 18 by the author as the 2024 President of the Management Association of the Philippines or MAP.)

A few years ago, I was invited by the big blue school in Katipunan to speak at the honors ceremony where the best and the brightest were being recognized. I decided to ask the honorees if success was their ultimate objective. The young, energetic, and idealistic minds naturally responded positively.

I then ventured to suggest to them, wouldn’t being significant be a better objective? Many years since then, being more aware of the challenges of the times, I realized that being significant meant being relevant. I reasoned to them, one can be successful but not relevant, but one who is relevant is always successful. I explained to the young minds that everyone aspires to leave behind a mark of one’s lifetime, a legacy of one’s relevance takes center stage in depth and meaning.

The dictionary meaning of “relevant” is: connected or appropriate to the situation, the period, the activity, or the aspiration. “Relevant” comes from the Latin word “relevare,” which means “raising up.” By being relevant, we not only raise up ourselves, but more importantly, we raise others up. I believe the present call for all of us, our organizations, our businesses is to be relevant to the times, to the community, to the nation, and to the environment.

In navigating the complexities of an ever-evolving domestic and global landscape, embracing relevant leadership in business and government is not just an option but now a necessity and a continuous journey towards a progressive future.

As in the past, our activities this year will be guided by a theme. For 2024, the MAP Board of Governors has chosen the theme “Relevant Leadership for a Progressive Philippines.”

In line with this theme, MAP will pursue five thrusts:

1. Member Engagement,

2. Country Competitiveness,

3. ESG and Shared Prosperity,

4. Innovation, Technology and Digitalization, and,

5. Investing in the Youth.

MEMBER ENGAGEMENT
We will ensure the relevance of the topics and issues to be taken on in the MAP general membership meetings (GMMs) and other activities. The objective is to engage the membership in a more meaningful way. The programs will be executed to be interactive and engaging, discussing relevant topics and developments so as to benefit the members, their companies and the economy.

We will endeavor to have topics and resource persons who can stimulate and engage with our members.

We will expand outside Metro Manila to the key cities where we can engage new members and, through technology, enable their virtual participation in our various activities. This will be our way of helping expand business and economic development benefits to the rest of the country.

COUNTRY COMPETITIVENESS
Recent economic realities, together with globalization, highlight the need to enhance our country’s competitiveness, as all the other economies are doing.

To help improve the global competitiveness of the Philippines, we will push for vital policy reforms, through executive or legislative action, that will eliminate corruption, improve the ease of doing business, ensure food security through agricultural productivity, and sustain an enabling business environment for local and foreign investors. The aspiration is to attract greater and more diverse job-creating investments for more Filipinos to be gainfully employed.

ESG AND SHARED PROSPERITY
We need to respond to the reality of heightened economic inequality and the adverse long-term effects thereof. For our thrust on ESG and Shared Prosperity, we will push for the discourse and actions to encourage our members’ companies towards shared economic prosperity for all, environment and climate action, and principled business practices and governance.

INNOVATION, TECHNOLOGY, AND DIGITIZATION
With the recent technological developments that threaten jobs and the present workforce, we encourage action to prepare for the transitions. It is important that we encourage proper technology adoption, innovation, and digitalization to address these evolutionary challenges.

We also see digitalization as the key to improving the quality of service for the Filipinos and addressing corruption, both in the private and the public sectors.

INVESTING IN THE YOUTH
With increased global competitive realities, the development of competencies and well-being of the Filipino, especially the youth, is now more critical.

We will continue the Campaign against Malnutrition and Child Stunting or CAMACS and we will advocate for government and the private sector to pursue relevant education, health and wellness programs, particularly for the youth. The objective is for them to become productive members of society, with competitive skills and capacity that will ensure a progressive economy of the future.

MAP MEMBERS’ TOP SEVEN CONCERNS FOR 2024
We will certainly address the following Top 7 concerns of MAP members for 2024 which were generated through a survey in the 4th quarter of last year:

1. Corruption,

2. Ease of Doing Business,

3. Economy,

4. Agriculture,

5. Cybersecurity,

6. Education, and,

7. Climate Change.

Please note that all these top 7 concerns will be directly addressed by the five thrusts that we have explained.

WORKING WITH MAP COMMITTEES UNDER 5 GROUPS
In general, we will build on MAP’s current activities that benefit our members and other stakeholders.

While focusing on the five main thrusts, we will continue to pursue other advocacies and programs to adapt to dynamic changes in the domestic and global landscape.

Your 2024 Board will work with the 21 MAP committees which shall be grouped according to our five main thrusts for 2024.

1. The Member Engagement group will be headed by Noel Bonoan and myself.

2. The Country Competitiveness group will be headed by Corrie Purisima and myself.

3. The ESG and Shared Prosperity group will be led by Rex Drilon II and Marts Sazon.

4. The Innovation, Technology and Digitalization group will be handled by Marts Sazon and Al Panlilio.

5. The group on Investing in the Youth will be handled by Karen Batungbacal, Corrie Purisima and Al Panlilio.

We have listened and considered your input in our planning and identification of the five main thrusts and activities. We would appreciate your continued input and suggestions, please let me or the MAP Secretariat know.

We will be relying on the valuable support and active participation of every MAP member, particularly the MAP Governors and all the Committee Chairs and Vice-Chairs.

Years ago in that Katipunan event, the Jesuits and Faculty liked what I said as they told me so. I wondered though, how many of the best and the brightest listening agreed with me? I would have been very happy if some were even open to the consideration that it’s not all about personal success.

Today, here we have a roomful of very successful and significant individuals. It is a privilege, but much more a challenge, to be serving this prestigious group of women and men, full of talent, skill, and capability, but more so committed to do good, to do what is right for a better nation.

In addition to all the successes and significance here present, may we invite all of you to join us. Let us all share in the aspiration to be relevant leaders that are committed to a better future for the generations to come.

Your support will be very crucial to achieving our aspirations.

Thank you! Mabuhay ang MAP at mabuhay kayong lahat!!

 

Rene D. Almendras is the president and CEO of AC Logistic Holding Corp.

map@map.org.ph

almendras.rd@ayala.com

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