Home Blog Page 2909

BSP sees within-target inflation by Q1

Inflation unexpectedly accelerated for the first time in seven months in August, as food and transport costs rose. — PHILIPPINE STAR/EDD GUMBAN

INFLATION is now likely to land within the Bangko Sentral ng Pilipinas’ (BSP) target by the first quarter of 2024, not the fourth quarter of this year, BSP Governor Eli M. Remolona, Jr. said.

“We’re not quite clear about the fourth quarter (of 2023) yet. We’re still looking at the way our tightening measures have been working their way through the economy on the demand side. We’re not sure about the fourth quarter because if there are further supply shocks, then the numbers will be different,” Mr. Remolona said in an interview with BusinessWorld Editor-in-Chief Wilfredo G. Reyes on Sept. 4, a day before the government reported a faster-than-expected 5.3% inflation for August.

BusinessWorld’s one-on-one interview with Mr. Remolona will be streamed on BusinessWorld and The Philippine Star’s Facebook pages, as well as the BusinessWorldTV YouTube page, at 11 a.m. today (Sept. 8).

“My best guess is it will be the first quarter of 2024, before we get into the (2-4%) target range,” Mr. Remolona said.

The BSP will likely upwardly revise its full-year forecast of 5.6% for 2023 at the next policy meeting on Sept. 21, he said.

Inflation unexpectedly accelerated for the first time in seven months in August, as food and transport costs rose. The consumer price index (CPI) quickened to 5.3% in August from 4.7% in July, above the 4.9% median estimate in a BusinessWorld poll conducted last week.

August marked the 17th consecutive month that inflation surpassed the central bank’s 2-4% target range. 

For the first eight months of 2023, inflation averaged 6.6%.

Mr. Remolona said the central bank still has space for further tightening.

“If inflation continues to be an issue, then we could raise policy rate from 6.25% to a higher policy rate. If we think the tightening is already very effective, then we wouldn’t need to increase further,” he said.

The BSP has kept its key policy rate at a near 16-year high of 6.25% for the last three meetings. It has hiked benchmark interest rates by 425 basis points (bps) from May 2022 to March 2023 to curb inflation.

Aside from inflation, Mr. Remolona said the Monetary Board will also be taking into account recent economic output data at its next policy-setting meeting on Sept. 21.

“That (output data) for us is an indicator of how much we’ve done on the demand side to compensate for the pressures from the supply side,” he said.

“We could still hike. We have a sense of how high we can hike before growth becomes an issue, we compute what we call the natural rate and we’re still below the natural rate. We have room to hike because of our calculations.”

Mr. Remolona said the Philippine economy can still grow by 6% this year, the lower end of the 6-7% growth target for 2023, if the government ramps up spending.

Gross domestic product grew by a slower-than-expected 4.3% in the second quarter, partly due to government underspending. This brought the six-month average to 5.3%, still below the government’s 6-7% target this year.

Meanwhile, Mr. Remolona said the US Federal Reserve is still hawkish, but the Jackson Hole speech by Chairman Jerome H. Powell in August had more uncertainty compared with the previous Federal Open Market Committee (FOMC) statement.

“But I think, in my opinion, they’re slightly behind the curve in terms of tightening. I think we’re closer to being on track in terms of tightening,” he added. 

The US Federal Reserve hiked borrowing costs by 25 bps at its meeting in July. This brought the Fed funds rate to 5.25-5.5%, its highest level in 22 years.

The next meeting of the FOMC is scheduled for Sept. 19-20.

Mr. Remolona, however, noted that several financial crises occurred after the Fed raised its policy rate “very sharply.”

“In November 1994 for example, for the first time the FOMC raised its policy rate by 75 bps, within a few months we saw the Tequila crisis. And within the two years we saw the Asian (financial) crisis,” he said.

“This time, the FOMC has been even more aggressive than it was in 1994, so this makes me worried about what might happen down the road,” he said.

Earlier this year, markets around the world were rattled by the back-to-back collapse of Silicon Valley Bank (SVB) and New York’s Signature Bank. A crisis of confidence also hit Credit Suisse, which resulted in a state-led rescue by its Swiss rival UBS Group. 

“We already saw SVB, we already saw Credit Suisse, I’m concerned that there may be further financial accidents in the future. I think what high levels of interest rates do is they make the floor more slippery for banks and so they make accidents, or slips, more likely to happen,” Mr. Remolona added. — Keisha B. Ta-asan

Dollar reserves slip to $99.8B as of end-Aug.

United States one-dollar bills are seen in this Nov. 14, 2014 file photo — REUTERS

THE PHILIPPINES’ dollar reserves dipped as of end-August, as the National Government (NG) paid some of its foreign debt obligations and the value of the central bank’s gold holdings fell.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed gross international reserves (GIR) slipped by 0.14% to $99.81 billion as of end-August from $99.95 billion as of end-July.

This was the lowest dollar reserve level since the $99.39 billion seen in June.

However, the GIR was 2.4% higher than $97.44 billion as of end-August 2022.

“The month-on-month decrease in the GIR level reflected mainly the NG’s payments of its foreign currency debt obligations and the downward adjustments in the value of BSP’s gold holdings due to the decrease in the price of gold in the international market,” the central bank said. 

As of end-August, the dollar reserves were enough to cover 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity.

It is also equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

Ample foreign exchange buffers protect the country from market volatility and serve as a guarantee for the economy’s ability to pay its debts in the event of an economic downturn.

“The slight decrease in the GIR in August 2023 was due to a number of factors, including the payment of maturing foreign currency obligations, some ‘hot money’ outflows, and the decline in the value of the Philippine peso against the US dollar, among others,” Security Bank Corp. Chief Economist Robert Dan J. Roces said.   

Based on BSP data, foreign currency deposits fell by 52.5% to $648 million at end-August from $1.367 billion a month earlier and by 63.5% from $1.777 billion a year ago.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the decrease in foreign currency holdings “partly due to some foreign exchange operations (possible foreign exchange intervention activities, as an option signaled by local monetary authorities during the month).”

The peso closed at P56.595 on Aug. 31, depreciating by 3% or P1.715 from the P54.88 finish on July 31.

Meanwhile, buffers in the form of gold were valued at $10.23 billion as of end-August, slipping by 0.7% from $10.3 billion as of end-July. However, it was up by 19.9% from $8.53 billion a year earlier.

The decline in foreign currency deposits and gold buffers were offset by an increase in foreign investments, Mr. Ricafort said.

The BSP’s foreign investments rose by 0.7% to $84.33 billion as of end-August from $83.68 billion a month earlier. This was also 1.9% higher than $82.73 billion a year earlier.

According to the BSP, net international reserves slipped by 0.1% to $99.8 billion as of end-August from $99.9 billion from end-July.

Net international reserves are the difference between the BSP’s reserve assets (GIR) and reserve liabilities such as short-term foreign debt, and credit and loans from the International Monetary Fund (IMF).

The Philippines’ reserve position in the IMF also declined by 1.4% to $790.4 million from $801.9 million in July but rose by 6.7% from $740.8 million as of end-August 2022.

Special drawing rights (SDRs) — the amount the country can tap from the IMF — inched up by 0.5% to $3.81 billion as of end-August from $3.79 billion in the month prior. This was 4% higher than $3.66 billion a year earlier.

China Banking Corp. Chief Economist Domini S. Velasquez said the country’s GIR as of end-August remains sufficient in terms of its imports and external debt cover.

“We think there is a risk that the GIR will fall in September due to the depreciation pressure on the peso. Moreover, we will likely see higher imports as oil prices continue to climb. This will squeeze the import cover ratio of the GIR,” she said.

The local currency closed at P56.79 versus the dollar on Thursday, strengthening by 15 centavos from its previous finish of P56.94, data from the Bankers Association of the Philippines’ website showed.

Year to date, the peso depreciated by 1.8% or P1.035 from its P55.755 finish on Dec. 29, 2022.

Meanwhile, Mr. Roces said the slight decrease in August GIR is not a “cause for alarm.”

“The outlook for the country’s dollar reserves in the coming months is positive with remittances from BPOs (business process outsourcing) and OFWs (overseas Filipino workers) incoming,” Mr. Roces said.

The BSP is expecting to end the year with $100 billion in dollar reserves and $102 billion by end-2024. — Keisha B. Ta-asan

PHL to ramp up prosecution of money laundering cases

BANGKO SENTRAL ng Pilipinas Governor Eli M. Remolona, Jr. — COURTESY OF BANGKO SENTRAL NG PILIPINAS

THE PHILIPPINES is looking to ramp up the prosecution of money laundering and terrorist financing cases, as it aims to exit the Financial Action Task Force’s (FATF) “gray list” by January 2024.

“We are moving heaven and earth… to get out of the gray list,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said in a Sept. 4 interview with BusinessWorld Editor-in-Chief Wilfredo G. Reyes.

Global financial crime watchdog FATF added the Philippines in its gray list of jurisdictions under increased monitoring for “dirty money” risks in June 2021.

As part of its efforts to exit the gray list, Mr. Remolona said the government needs to prosecute more cases of money laundering and terrorist financing.

“Basically, we need more prosecutions. We’ve done a lot of investigations. We’ve identified the potential respondents for prosecutions. I think that’s key for getting out of the gray list,” he added.   

In its last assessment in June, the FATF said the Philippines should continue to work on implementing action plans to address strategic deficiencies in its fight against money laundering. 

This includes demonstration of effective risk-based supervision of Designated Non-Financial Business and Professions and ensuring that supervisors use anti-money laundering/counter-terrorism financing (AML/CTF) tools to mitigate risks. 

The FATF said the Philippines should also streamline the access of law enforcement agencies to information related to beneficial ownership as well as demonstrate an increase in money laundering and terrorist financing investigations.     

“There are periodic discussions with the FATF. They don’t tell us exactly what we need to do. They kind of hint as to what we need to do,” he said.   

The country was included in the FATF’s black list in June 2000, but was removed in February 2005 after the passage of Republic Act No. 9180 or the Anti-Money Laundering Act in 2001 and the establishment of the Anti-Money Laundering Council in 2003. 

BusinessWorld’s one-on-one interview with Mr. Remolona will be streamed on the Facebook pages of BusinessWorld and The Philippine Star as well as the BusinessWorldTV YouTube page, at 11 a.m. today (Sept. 8). — K.B.Ta-asan

Manufacturing output climbs to 2-month high

Manufacturing output rose to a two-month high in July. — PHILIPPINE STAR/KRIZ JOHN ROSALES

MANUFACTURING OUTPUT climbed to a two-month high in July, propelled by higher production of beverages, petroleum, and food products, the Philippine Statistics Authority reported on Thursday.

Preliminary results of the Monthly Integrated Survey of Selected Industries showed factory output, as measured by the volume of production index (VoPI), rose by 5.7% year on year in July. This was higher than the revised 3.4% in June and 3.6% in July last year.

July marked the 13th month of annual VoPI growth.

The 5.7% expansion was the fastest in two months or since 7.1% in May.

On a monthly basis, July’s VoPI grew by 3.8% from June’s revised 2.9% contraction. Adjusting for seasonality factors, manufacturing output increased month on month by 3%, a turnaround from the 2.1% decline in June.

Year to date, factory output rose by 5.2% in the January-to-July period, lower than the 23.9% growth a year ago.

In a statement, the PSA attributed the July uptick in VoPI to faster growth in three industry divisions: beverages (up by 12.6% from -11.4% in June), coke and refined petroleum products (up by 36.2% from 15.9%), and food products (up by 1.2% from -3.1%).

The VoPI growth mirrors the improvement seen in the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) in July. The Philippines’ PMI reading rose to 51.9 in July from the 11-month low of 50.9 in June. A PMI score above 50 signals an expansion in factory activity.

PSA data showed the capacity utilization rate in July slightly improved to 73.5% from 73.3% in June and the 71.4% rate for July 2022. All 22 sectors averaged higher than the minimum 50% capacity utilization rate for July.

The increase in factory output in July may have been driven by the continued economic growth.

“The increase in economic activity is developing demand for power and transportation. Hence the increased production of coal and fuel… As for beverages, I would attribute it to the economy being a consumer-driven economy,” Peter Lee U, dean of the University of Asia and the Pacific’s School of Economics, said in a phone interview.

He said the manufacturing sector may still grow this year, although a global economic slowdown and elevated inflation may weigh on overall demand. — A.C.Abestano

Rolling Stones launches new album Hackney Diamonds

LONDON — The Rolling Stones announced Hackney Diamonds, their first album of original music for 18 years and first since the death of drummer Charlie Watts, who played on two of the tracks, at the Hackney Empire on Wednesday.

Mick Jagger, Keith Richards and Ronnie Wood — the surviving core of the 61-year-old band — appeared on stage at the London theater to discuss the recording, before the premiere of the video of single “Angry,” which features actress Sydney Sweeney. (View the video here: (277) The Rolling Stones – “Angry” (Official Video) – https://www.youtube.com/watch?v=_mEC54eTuGw)

Frontman Mr. Jagger, 80, said the band were “pretty fired up” to record new music. “Every day was kind of like banging through two or three songs, so you keep the excitement,” he told Reuters after the launch, which was streamed live.

The album had a contemporary sound, with a mixture of rock, ballads, dance, and a “country-ish kind of thing,” he said.

Mr. Richards, whose song-writing partnership with Mr. Jagger is one of the most enduring and successful in rock, said Charlie Watts’ 2021 death had spurred the band to record new music.

“I think because of Charlie passing, we felt that we are still going and that we should still retain an identity and still say ‘Hey, it’s only rock and roll. But you know here we are’,” the 79-year-old said.

Former Stones bass player Bill Wyman, new drummer Steve Jordan, ex-Beatle Paul McCartney, and Stevie Wonder were all involved in the album, the band told broadcasters.

Ronnie Wood said Mr. McCartney, who played bass on one track, was “blown away” to record with the band, which rivaled the Beatles in its impact on rock music in the 1960s.

“You know, he was loving it,” he said.

Award-winning producer Andrew Watt helmed the 12-track album Hackney Diamonds, which was recorded in locations including London, Los Angeles, and Nassau.

The recording, whose title refers to broken glass after a robbery, will be released on Oct. 20.

The three Stones — all dressed in black — arrived in a London taxi decorated with the band’s tongue and lips logo. Mr. Jagger paid the fare in cash.

“I don’t want to be big-headed, but we wouldn’t have put this album out if we hadn’t really liked it,” he told US talk show host Jimmy Fallon on stage.

Fans have been awaiting the announcement since a cryptic advertisement appeared in a local newspaper last month, with references to some of the Stones’ biggest tracks and the name of the new album. — Reuters

Lady of the lake

Movie Review
Essential Truths Of The Lake
Directed by Lav Diaz

CALL Lav Diaz’s latest film Essential Truths of the Lake a prequel to his When the Waves are Gone (Kung Wala Nang Mga Alon 2022); call the film a deeper dive into Diaz’s returning character Hermes Papauran, the oft-described “greatest Filipino investigator ever.”

Peter Debruge, in his faintly sarcastic review in Variety, chided the film’s failure “to show what makes (Hermes) the ‘greatest’” — I submit that when put in context the assertion makes more sense. As I noted in Diaz’s earlier Norte the End of History, genius police officers aren’t really a thing in the Philippines, if anything their investigations are notorious for being unreliable and slow, that they often play the key role in any government cover-up to follow. Crime is rarely an intricate, much less rational, enterprise in this country; more often than not the killings are committed by casual contractors given money with tacit approval of law enforcers, done through a chain of middlemen — the higher the rank, the longer the chain (good luck trying to trace anything to former president Duterte, who is likely most guilty of the same crime as former president Trump: he pushed people to do their worst, and they more than did his bidding). Criminal methods are erratic, investigative procedures even more so, and results are dependent not on the brilliance of the criminal or his pursuer but on incompetence (from both sides) and sheer happenstance.

Hermes does confront the apparent power behind the scenes, Bart Guingona’s Jack Barquero. Sparring verbally over cups of rice coffee, with the waters of Taal Lake as background, Hermes sketches Barquero’s background for him. “Very good,” Barquero admits, but asks the million-peso question: “Can you solve the case (unspoken: can you catch me?)?” Hermes’ answer is as elliptical as anything Diaz has put out: the question, he asserts, is too broad, as broad as the lake behind Barquero.

Debruge is more on target guessing “what really matters isn’t solving cases but refusing to abandon them.” Call Diaz a practitioner of the Sisyphean School of Suffering: you pick your stone, you exert endless effort rolling it up a hill; you may never achieve your goal but you don’t give up and perhaps the strain is good for your soul (alternate title: School of Extreme Spiritual Aerobics).

No extra points for guessing that Hermes Papauran (the surname simply meaning “mythological,” the given name taken from the herald of Greek gods, and a psychopomp — a conductor of souls to the afterlife [you might say Hermes is obsessed because he’s lost track of this particular soul and can’t rest till he’s guided it to its correct destination]) is Diaz’s avatar — unlike Hermes, however, Diaz has had the luck to actually finish his works and put them out there, for us in turn to persevere watching.

Actually, Diaz doesn’t seem to create characters so much as he fashions statues, marble figures with names appended to their respective pedestals (“integrity,” “malice,” “chaos”), and he relies on or works with the actors to humanize them. Hence Hermes, as allegorically loaded as he is, is rendered all too human flesh by John Lloyd Cruz with understated intensity: in Hermes’ conversation with his colonel (a tremendous Agot Isidro) he admits to his superior the distress of watching innocents gunned down. His memories — staged by Diaz with surreal flair — are indistinguishable from nightmares, his confessions skittering so close to hysterical rambling the colonel is forced to shut him down. All this in medium shot, at a picnic table over bowls of egg noodles, framed by a row of trees and a view of the sea — Diaz loves underplaying the melodrama, and in passages like this (and a later moment when the colonel, with her back to Hermes, attempts to hide her true feelings from him) the combination works well.

Later we hear Hermes on the phone talking to his son Nick and glean from details and snatches of dialogue that Hermes’ domestic situation is not much more tranquil than his workplace (or rather tranquil in the way a frozen lake is tranquil; after affectionately exchanging words with his son he asks to speak with his wife, who hangs up). Later we see Hermes sit down with Melchora (Susan Africa, also very good) and admit to her that, grateful as he is for the food she cooks for him, he’s on a restrictive diet due to skin asthma — the somatic manifestation of his guilt that would grow immensely worse in the next film.

Diaz’ and cinematographer Larry Manda’s work in black and white only grows more impressive with every feature: the outdoor dance sequence glows an unearthly white, nighttime shadows have a velvety depth. Diaz lets a shot run on for minutes, with lightly off-balanced framing; part of the fascination of his images, despite the leisurely pace, is that you’re teased into trying to figure out how it’s off-balanced, to the point that you can’t take your eyes off the screen (once you do figure it out, you’re then teased into trying to figure out why).

He’s also been working on sound design, and here the twisted cries and whispers coming from his track during the nightmare sequences are an effective low-cost way of suggesting Hermes’ torment.

As Esmeralda Stuart, the woman in the center of Hermes’ Philippine Eagle cold case, Shaina Magdayo is the prized porcelain figurine in Diaz’ collection. Impossibly beautiful, she works against that beauty to suggest the sad lost soul trying to make her voice heard, in dance, in theater, in film — she’s suffered abuse but it’s suggested she’s also slept her way to fame; she’s by turns whore, activist, scandal, madonna. What’s the truth? We’re not even sure about the details of her career — is she a dancer, an actress, a celebrity environmental advocate being interviewed for a profile, maybe all three? Diaz through Hermes through documentary filmmaker Jane Liway (played, again excellently, by Hazel Orencio) approach her from many angles and invites her again and again to pour her heart out to the camera and still she remains an enigma, a stubborn unknown. Diaz seems to follow Dumas’ dictum and noir’s axiom to “cherchez la femme,” and Shaina’s Esmeralda gives these people, including you, few answers but keeps you watching anyway.

Which may be pushing Hermes over the edge.

At one point he pulls on Esmeralda’s formfitting eagle costume and runs about, spreading wide-fingered wings and frightening the occasional innocent bystander — possibly Diaz poking fun at the superhero genre (Hermes — The Legend Who Would Not Give Up) but you feel there’s more to this relatively brief aside. Diaz earlier showed us folks who might appreciate Hermes’ cross dressing, possibly under the influence of one illegal substance or another, but the man pointedly avoids that crowd — mostly he’s by himself against the vast surrounding landscape, a wild figure against sun-scorched wilderness.

You feel the film is most alive in these moments — that here is where it reveals its freest truest self. There’s the persistent image of the loner and wanderer in Diaz’ films, and you feel as if there’s nothing more he’d like to do than a really, really long film of someone just being out in the world (he almost did that film too — see Heremias Book One: The Legend of the Lizard Princess, sequel [Book Two] still forthcoming). The loneliness Diaz suggests here is both terrifying and exhilarating, and I suspect those who respond to his films feel that pull too, like standing at the edge of a high cliff savoring the urge to jump.

At this point the colonel pulls the plug on the case and Hermes is led away with little protest; then Taal erupts (the center of the lake is a giant caldero) and a more hirsute, more casually dressed Hermes returns, working against all hope to uncover still more clues to Esmeralda’s death (now likely covered by tons of volcanic ash turned by rain into concrete). Hermes is questioned — what’s the point? “That’s the way it goes,” the detective shrugs. “Everything starts from nothing.”

Which makes me question Debruge’s closing assertion in his review (my last reference to the piece, promise) that Diaz “hasn’t lost faith in the (justice) system.” We see Hermes back onsite with mystery buried deeper than before, clearly in violation of his colonel’s orders — gone rogue, or at least surrendered his badge, and he simply can’t let the issue go, so he’s continued as a private citizen.

Later Hermes encounters Diaz’ version of Duterte’s extrajudicial killings (EJKs) where a luckless man is accused of stealing, and a contrast is made between the case that obsesses Hermes and this latest death before him: the former inhabits his mind rent free as the saying goes, and in many ways is the more haunting — the way Marcos’ crimes still obsess us because they remain unpunished, much less unresolved — but we live in the here and now, life goes on, and newer monsters are in our midst. At some point we face our limitations and must make a choice: keep hold, or let go? We know what happens to Hermes — or at least we have a clue, if we’ve seen When the Waves are Gone — but for the end of this chapter in the story at least, Diaz leaves matters for us to decide.

Hotel occupancy to rise ahead of holidays, says tourism group

VISUALSOFDANA-UNSPLASH

By Revin Mikhael D. Ochave, Reporter

THE occupancy rates in hotels are expected to surge as consumer spending increases ahead of the holiday season, according to a local industry association.   

“We’re very confident about the fourth quarter… People love to spend during Christmas. Even if they don’t have all the money in the world to spend, they will definitely stay in a hotel even for one night,” said Loleth G. So, president of the Hotel Sales and Marketing Association (HSMA) for the Philippines, in a press conference on Thursday.

“Last year, we did 82% average occupancy. We’re confident that we will even be better this year because the country is now open,” she added.   

Ms. So, also Megaworld Hotels and Resorts area director of sales and marketing, said the current hotel occupancy rate has improved compared with pre-pandemic levels.   

She added that domestic tourists account for 80% of hotel occupants, while foreigners make up the remaining 20%.   

“Pre-pandemic, occupancy was running at about 65% to 75%. Right now, our average occupancy year to date, we are already running at 72-78% occupancy. The good thing is, as compared to 2019, average rate is higher. The higher the average occupancy, the higher the revenues,” Ms. So said.   

“Because the average [hotel] rate is about 8-10% higher, automatically the impact of that revenue-wise is far larger,” she added.   

For 2023, the Tourism department is aiming to log 4.8 million international arrivals, higher than the 2.65 million foreign visitor arrivals last year.    

Ms. So said the length of stay in hotels has been prolonged, signaling the recovery of the industry.   

“The length of stay from January to March was one to two days. Now, it has actually increased to 3.2 to 3.5 days. It is now longer,” Ms. So said.    

In the same event, HSMA announced that it will have its first Hospital Summit on Oct. 12 at the Manila Marriott Hotel in Pasay City. The event will be open to HSMA members and nonmembers.   

The summit will feature topics such as recovery in the hospitality industry, developing globally competitive Filipino hoteliers, and consumer behavior and brand management in the digital age.

“We look forward to hosting this exciting summit to equip our sales and marketing leaders with the skills required to manage the demands of our constantly changing [hotel] industry,” Ms. So said.   

“As we continue on our road to recovery, it is through these kinds of events that we can gain critical insights to improve our travel, tourism, and hospitality as a whole and make it more competitive,” she added.   

HSMA, established in 1979, is an organization representing hotel sales and marketing leaders.

Entertainment News (09/08/23)


Pinoy comedy films to be screened for free

THE FILM Development Council of the Philippines’ (FDCP) is now screening 17 iconic Pinoy comedy films in Cinematheque Centers in Manila, Iloilo, Davao, Negros, and Nabunturan. Titled “Sine Halakhak,” it aims to bring laughter to Filipino audiences from Sept. 6 to 28. The titles include Ang Babae sa Septic Tank by Marlon Rivera, Ang Mga Kidnapper ni Ronnie Lazaro by Sigfreid Barros Sanchez, Ang Pangarap Kong Holdap by Marius Talampas, Booba by Joyce Bernal, Daddy O, Baby O! by Eric Quizon, Die Beautiful by Jun Robles Lana, Here Comes the Bride by Chris Martinez, Kimmy Dora: Kambal sa Kiyeme by Joyce Bernal, Ma’am, May We Go Out? by Mike Relon Makiling, and Praybeyt Benjamin by Wenn Deramas, among others. According to the FDCP, these films, ranging from Filipino classics to indie comedies and blockbusters from the 2000s, have “elevated Philippine comedy beyond its entertainment value by combining aspects of social and political commentary to their stories.” For more news and updates, stay tuned to FDCP’s Facebook, Twitter, and Instagram pages.


Performances, bazaars, workshops at Shang in Sept.

SHANGRI-LA PLAZA will hold numerous events this month, kicking things off with Korean specialty grocer No Brand’ No Brand Grand Sale which is currently ongoing until Sept. 8 at the Grand Atrium Level 2. Singer-songwriter-actor Janno Gibbs will perform at the Grand Atrium for a nostalgic Grandparents Day celebration on Sept. 9, 6:30 p.m. A Pouring Art Workshop by All About Art PH will be held at the East Atrium on Sept. 9 and 10, 1 p.m., where participants can paint their own ceramic figures and purchase pouring art kits. Catch the Sarap Pilipinas community from Sept. 14 to 17 at the Grand Atrium as it collaborates with the Department of Tourism to highlight the best in Filipino gastronomy. Award-winning creations of the Philippine Hot Sauce Club are among the featured flavors. The Urban Pod Bazaar will be held from Sept. 14 to 17 at the East Atrium, with one-of-a-kind food finds and gifting items for early Christmas shoppers. The European Higher Education Fair will be held from Sept. 30 to Oct. 1 at the Grand Atrium and East Atrium. The fair will showcase graduate programs offered by top universities in France, Germany, The Netherlands, Poland, Spain, and other European countries. Register at ehefphilippines.com.


Tugtugan Sitenta 2 concert celebrates OPM legends

AS A TRIBUTE to the golden age of original Pilipino music (OPM), the concert Back for More! Tugtugan Sitenta 2 will feature legendary musicians from the 1970s performing their biggest hits on Sept. 15. The show is headlined by stars like Leah Navarro, Marco Sison, Mike Hanopol, Sampaguita, Joey Abando of Boyfriends, Male Rigor and Monet Gaskell of VST & Co., Mon Espia of Labuyo, Pete Gatela, Carlos Parsons and Yujin Baydal of Hagibis, and Nonoy Tan and Rey Magtoto of WADAB. Presented by the Zonta Club of Makati-Ayala and the Rotary Club of Makati San Lorenzo, the concert will be held on Sept. 15 at 8 p.m., at the Newport Performing Arts Theater in Newport World Resorts. Tickets, ranging in price from P1,990 to P6,880, are available at all Ticketworld outlets and online at www.ticketworld.com.ph.


FDCP screens films for P50

SINE Singkwenta, a lineup of award-winning films from the Philippines, South Korea, and Japan, will be screened from Sept. 11 to 17, by the Film Development Council of the Philippines (FDCP). In line with the celebration of the 3rd Philippine Film Industry Month this September, Sine Singkwenta is the FDCP’s initiative to encourage Filipino viewers to go back to cinemas and enjoy the communal experience of watching a film on the silver screen, for a very affordable price of P50. For its initial offering, it’s bringing the titles Honor Thy Father, John Denver Trending, On The Job, Respeto, Train to Busan, and Your Name to SM Southmall, TriNoma, and Robinsons Galleria.


Air Supply set for three-night concert in December

FOLLOWING their two-night sold-out show in the same venue last year, Australian soft rock duo Air Supply is scheduled to perform live in Manila on Dec. 11, 12, and 13 at the Newport Performing Arts Theater. Romantic rockers Graham Russell and Russell Hitchcock are known for their classic songs like “All Out of Love,” “Making Love Out of Nothing At All,” “The One that You Love,” and “Even the Nights are Better.” They will perform these hits from the 1980s and more. Tickets to the Lost in Love Experience concert, ranging in price from P2,500 (bronze) to P11,000 (platinum), are available at all TicketWorld and SM Tickets outlets.


Korean Film Fest features Korean landscapes

THE 2023 KOREAN Film Festival (KFF), “Ka-ja! Korean Through Films,” will run from Sep. 22 to 26 at Cinematheque Centre Davao and various SM Malls nationwide. Serving as the grand finale of the Korea Tourism Promotion month hosted by the Korean Cultural Center in the Philippines (KCC), this year’s KFF supports the “Visit Korea 2023-2024” tourism campaign led by the Korean government, and thus the seven films scheduled to be shown feature the country’s picturesque landscapes. To be shown are the musical Life is Beautiful, the black and white film The Book of Fish, an independent film Bori, along with Director’s Intention, Everglow, Gyeongju, and Jukdo Surfing Diary. Each of these feature locations across Korea, such as Gangneung, Busan, Jeju, Gyeongju, Yangyang, Paju, and Sinan. Admission to KFF is free-of-charge, on a first-come, first-served basis. Prior to the festival’s kickoff, the KCC will hold the “Meet the Mentor” series, alongside K-movie producers in partnership with De La Salle – College of Saint Benilde (DLS-CSB). The series will feature the people behind the 2022 box-office sensation Life is Beautiful: The Lamp CEO, Park Eunkyung, and film production director Lee Yeonhwa. The event is open to all, and registration is required through https://bit.ly/RSVPMeetTheMentorKMovie until Sept. 15, 12 p.m. This annual event is presented by the Embassy of the Republic of Korea and the KCC, in collaboration with the Korean Film Council, the Film Development Council of the Philippines, SM Cinema, and the Korea Tourism Organization Manila Office.

SEC amends rules to support crowdfunding portals

THE Securities and Exchange Commission (SEC) has added registered funding portals as authorized registrars of qualified buyers of securities under the rules governing crowdfunding.

SEC Memorandum Circular No. 12, posted on the agency’s website on Sept. 6, has amended Section 39.1.4.1 of the implementing rules and regulations of the Securities Regulation Code (SRC) to include funding portals registered under the SEC Crowdfunding Rules in the list of authorized registrars of qualified institutional buyers and individual buyers of securities.

SEC Commissioner Kelvin Lester K. Lee said the amendment is part of the corporate regulator’s efforts to give more options to stakeholders.   

“The SEC wanted to expand such functions to crowdfunding portals thus allowing more options to stakeholders. It is also part of the commission’s overall direction to boost the capital markets,” Mr. Lee told BusinessWorld via mobile phone.   

“By supporting crowdfunding portals, among others, the commission ensures that there are viable alternative means to raise capital available to the public,” he added.

Authorized registrars are entities that have been granted the appropriate secondary license by the commission. They may be authorized to act as a registrar upon proper application and compliance with registration requirements.   

Aside from funding portals registered under the SEC crowdfunding rules, the SEC said other authorized registrars are banks (with respect to their registration as broker-dealer), government securities eligible dealer, government securities brokers, and/or underwriters of securities.

Other authorized registrars are brokers, dealers, investment houses, investment company advisers, and issuer companies (with respect to offerings of their own securities).

On Aug. 18, the SEC issued the proposed amendments to the SRC and sought the comment of interested parties until Aug. 24.   

Meanwhile, the SEC said in a separate statement that it secured the conviction of six individuals involved in an investment scam operated by GDM Finance SARL, making it the 22nd conviction for violations of the Philippine securities law.

In a joint decision dated April 17, the Pasig City Regional Trial Court (RTC) Branch 158 deemed Anita E. Armada, Milany P. Cabrera, Josephine D. Maranan, Nanette D. Tongco, Gerald L. Samson, and Jacinto Lucio P. De Catalina guilty beyond reasonable doubt of violating Sections 8 and 26 of the SRC. The individuals were sentenced to pay a P100,000 fine each, with subsidiary imprisonment. 

The individuals were arrested following an entrapment operation of the SEC’s Enforcement and Investor Protection Department (EIPD) with the Philippine National Police Anti-Cybercrime Group in November 2018.

“The case stemmed from an information received by the SEC EIPD in July 2018, alleging that GDM had conducted a seminar in a mall where speakers enticed the audience to invest in GDM for a weekly return of at least 2.5%,” the corporate regulator said.

“After conducting an on-site field investigation, the EIPD confirmed that GDM indeed engaged in investment-taking activities. The investigation also uncovered that GDM had a Facebook account where it advertised that it could pay dividends to shareholders and provide a steady return on investment received,” it added. 

Under Section 8 of the SRC, the sale or distribution of securities without first being registered with the SEC is prohibited. Section 26 of the law also forbids individuals from employing fraud, deceit, and omission to garner investments from the public. 

“GDM had not registered any securities with the commission as required under the SRC. Neither had it secured a license to issue mutual funds, exchange-traded funds and proprietary or non-proprietary shares or membership certificates and timeshares,” the SEC said.

The SEC has secured the conviction of 33 individuals in 22 cases meted by the courts with a total imprisonment of 712 years and an aggregate fine of P28.4 million, as of writing.

As of September, 355 individuals are being actively prosecuted before the RTCs in 145 cases for violations of the SRC and two cases for violations of Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act.

The SEC has filed criminal complaints against 31 corporations and 239 individuals before the Department of Justice as of June 30, all of which are currently pending resolution. — Revin Mikhael D. Ochave

Universal Music aims to boost artist royalties in new streaming model

UNIVERSAL Music Group NV and French company Deezer SA said they have developed a new music-streaming model that better compensates artists and the songs that fans actively engage with.

The deal is part of a broader strategy by the music industry to get more money from streaming platforms that have been flooded by white noise tracks and artificial intelligence (AI)-generated songs.

Artists who have at least 1,000 streams per month by a minimum of 500 unique listeners will see their royalties increase to reward their contribution to the streaming platform. The model will also better reward music that fans actively seek out on the platform, according to a statement from the two companies on Wednesday.

Deezer plans to introduce the model in France in the fourth quarter, before rolling it out to other markets.

Universal Music’s Chief Executive Officer Lucian Grainge has previously said that there is a “pressing need” to reassess the streaming model after an increase in uploads of low-quality content designed to “game the system and divert royalties.” The record label for artists such as Taylor Swift and Drake this year began partnering with streaming services including Tidal to explore an “artist-centric model” that rewards musicians with passionate fan bases. The company has also been in discussions with Spotify about addressing these issues, Grainge said during an earnings call in July.

Deezer will also take steps to limit non-artist noise content. “It should be obvious to everyone that the sound of rain or a washing machine is not as valuable as a song from your favorite artist streamed in HiFi,” Deezer’s Chief Executive Officer Jeronimo Folgueira said in the statement.

“It will be interesting to see whether this deal can become a template for other streaming services to follow,” Citi analyst Thomas Singlehurst said in a note to clients. “There has always been a sense that Deezer has been quicker to move as a smaller player because it is less likely to destabilize the broader artist ecosystem.” — Bloomberg

Del Monte Pacific trims loss, expects net profit  

Del-Monte

DEL MONTE Pacific Ltd. (DMPL) trimmed its net loss in the past quarter on the back of higher sales, turning the listed company bullish about generating profit in the second half of its fiscal year that started in May. 

In a stock exchange disclosure on Thursday, DMPL said it incurred a net loss of $13.1 million in its first quarter that ended in July, an improvement from the $30.5-million net loss a year ago.

“Last year’s net loss had included (US-subsidiary) Del Monte Foods Inc.’s (DMFI) one-off refinancing cost of $71.9 million gross or $50.2 million net of tax and non-controlling interest,” DMPL said.

DMPL’s sales rose 13% to $516.7 million during the period from $456.6 million previously on the back of higher sales in the US and of fresh pineapple, which increased 18% and 23%, respectively. 

The company’s US unit, DMFI, generated sales of $356.4 million during the period, accounting for 69% of group turnover. It saw improved market share positions across the packaged vegetables, fruits, tomatoes, and fruit cup snacks segments.

“DMFI’s volume grew by 5% while sales improved by 18% driven by pricing actions and strong growth and development of the company’s branded product portfolio in both traditional and emerging channels,” the company said. 

On the other hand, the Philippine market posted $75.9 million in sales, up 5% in peso terms but flat in dollar terms due to currency depreciation.

The Philippine market saw improvements across its five core categories of packaged pineapple, mixed fruit, beverage, tomato, and spaghetti sauces. Food service and convenience store channels also saw higher sales, up 25% and 16%, respectively. 

“Sales of packaged fruit, beverage and culinary were higher, supported by compelling communication campaigns including Saucy Weekends campaign promoting tomato sauce, and value-for-money offers amidst the inflationary environment,” the company said.

For its international markets, the company said its fresh sales also rose 23% following higher sales of S&W Deluxe fresh pineapples and better pricing.

DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said the company’s margins were “under pressure with inflation while interest rates rose” which affected the overall bottom line.

“We are determined to bring margins up in the second half of our fiscal year through a combination of price adjustment and cost reduction, including minimizing waste further by continuously improving processes, and leveraging technology to enhance efficiency and lower expenses,” Mr. Campos said.   

“Reducing leverage and interest expense is a key imperative and we are exploring all options to strengthen our capital structure,” he added.

Meanwhile, DMPL said it expects higher net profit in fiscal year 2024, particularly in the second half, barring unforeseen circumstances.

The company added that it is planning to increase the production of its MD2 fresh pineapple to support higher exports.

“In the US, there will be increased penetration into channels such as club, e-commerce, dollar, convenience, natural and foodservice, while accelerating innovation and its contribution to spur sales growth. New market development initiatives in Mexico, South America, and Canada driven by resources dedicated to expanding distribution of DMFI’s branded portfolio in those markets including Kitchen Basics are expected to contribute to sales growth,” the company said.

“The price increase implemented in the US on July 31 will also allow DMFI to offset inflation and improve gross margins in the second to fourth quarters of fiscal year 2024,” it added.

On Thursday, shares of DMPL at the local bourse rose 16 centavos or 2.18% to finish at P7.50 apiece. — Revin Mikhael D. Ochave

Maynilad sees ‘optimal’ service after maintenance plan

MAYNILAD Water Services, Inc. is expecting optimal water supply to its customers in Metro Manila after the maintenance activities in its treatment plants.

“After the maintenance program, we can ensure sustained optimal performance from our treatment plants,” Maynilad Corporate Communications Head Jennifer C. Rufo said in a Viber message.

According to Ms. Rufo, the first phase of the maintenance program in its treatment plants in Putatan, Muntinlupa City went well last month.

In August, the west zone water concessionaire implemented a plant shutdown from Aug. 21-22 as part of the first phase of the maintenance activities. This involves the repair of the leakage in the inlet pipe, which carries water to the reservoir.

“We completed all of the planned repair and maintenance works early, so the water service to affected customers actually resumed earlier than the scheduled interruption,” she said.

Maynilad is now in the process of planning for the second phase of the maintenance program, which is set for this month. The major activities include the replacement of several valves and electrical cables, Ms. Rufo said.

Maynilad has two treatment plants in Muntinlupa that provide 300 million liters per day (MLD) of water supply for around 1.7 million customers in the south.

Last month, the company announced that the construction of its new water treatment plant in the city was 80% complete.

The new treatment plant will be the third facility to tap Laguna Lake as an alternative source of water to the Angat Dam. It is expected to produce 50 MLD of additional water by the end of the year.

Asked to comment on the increasing water level of Angat Dam, Ms. Rufo said that Maynilad keeps track of its water level. 

“We’re also closely monitoring Angat Dam water levels, especially since it is still our primary raw water source. We want it to be at ideal levels so that we will have enough supply for sharing among the dam’s various users,” she said.

As of 6:00 a.m. on Thursday, the water level of Angat Dam was at 203.84 meters, higher than the 203.56 meters seen on Wednesday.

The Metropolitan Waterworks and Sewerage System earlier said that the National Water Resources Board approved its proposed water allocation of 50 cubic meters per second.

Maynilad serves Manila, except for portions of San Andres and Sta. Ana, and 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.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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