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Deceitful. And murderous

STOCK PHOTO | Image by Uitbundig from Unsplash

Taking up the cudgels for big tobacco, Japan Tobacco International (JTI) wants to lower tobacco tax rates. So goes the news story titled “JTI lobbying for tweak in cigarette tax policy” (BusinessMirror, Aug. 12).

JTI claims that “high taxation does not necessarily translate into better health outcomes.” JTI’s corporate affairs and communications director, Shaiful Bahari Mahpar, said that high taxation caused the decline in consumption of legal tobacco brands but increased the illicit tobacco trade in the Philippines.

The JTI argument, which is likewise the argument of the whole tobacco industry, is most deceitful.

What the tobacco industry wants to “reform” is the annualized indexation of tax rates, equivalent to 5%. It claims that the 5% yearly tax increase is too high and is lobbying for its removal, going as far as pushing for House Bill 11360, a bill railroaded in the 19th Congress. But such a rate is in fact inadequate to reduce the affordability of cigarettes. It merely protects the value of the tax rate from being eroded by inflation.

The evidence is likewise clear. Making tobacco prices steeper through higher taxes will result in a fall in demand. This is most welcome because we want people to stop smoking, or at least reduce consumption. Contrary to JTI’s absurd claim that there is “no change in the overall total consumption in the Philippines,” a series of tobacco excise tax laws increasing taxes significantly in 2012, 2017, and 2019, led to adult smoking prevalence falling from 29.7% in 2009 to 19.5% in 2021 (Global Adult Tobacco Survey).

The substantial decline in smoking prevalence was accompanied by a significant rise in tobacco tax revenues. Price inelasticity of cigarettes explains the inverse relationship. In simple terms, the rise in taxes or prices does not have a proportionate decrease in smoking. After a tax hike, the predicted decrease in the rate of smoking will be smaller than the rate of tax increase, which will yield considerably more government revenues.

Yet, a disturbing pattern recently emerged. Smoking prevalence recently increased between 2021 and 2023, as reported by the Department of Science and Technology-Food and Nutrition Research Institute’s (DoST-FNRI) Expanded National Nutrition Survey. And revenue collection from tobacco excise taxes declined from 2022 to 2024, although data for the first half of 2025 show a rebound in tobacco tax revenues.

But contrary to what the tobacco industry suggests, the increase in smoking prevalence and the decline in government revenues cannot be attributed to high prices or high taxes.

The cause for the rise in consumption and drop in revenue collections: affordable vape and heated tobacco products (which are taxed lower than cigarettes) and cheap tobacco products in the illicit market.

Deterring illicit trade is mainly a function of governance and enforcement, not of tax or price. This is well illustrated by a survey and price audit of sari-sari stores done by Action for Economic Reforms conducted in 2024, which showed that illicit tobacco trade is very low in major cities in Luzon and the Visayas, but extreme in parts of Mindanao. Given the acutely contrasting results between Mindanao and the rest of the Philippines with regard to the magnitude of illicit trade, we can conclude that the cause is not the tobacco tax, which is applied nationally. In Luzon and Visayas, the Bureau of Internal Revenue (BIR) and cooperating local government units have strong and consistent enforcement. In major parts of Mindanao, particularly those where historical open trade with neighboring countries thrives, bad institutions, particularly control by warlords or high-level authorities, abet illicit trade.

We must combat illicit trade. But the key clearly is tougher enforcement of rules — not only through heavy penalties but, more importantly, through a credible commitment and a real threat that violators have a high probability of being caught, prosecuted and punished with the full weight of the law.

Tobacco control advocates have proposed a menu of proven policies to fight illicit trade. These include: a digital track and trace system independent from the tobacco industry that can monitor the movement of tobacco products across the supply chain in real time; stronger coordination among national agencies and local government units; granting power to the BIR to revoke licenses of businesses involved in illicit trade; forging inter-regional cooperation to stop the movement of illegal cigarettes at the point of origin; and enabling citizens to take action against illicit trade by using ubiquitous, user-friendly technology.

Both economic theory and experiences of dozens of countries worldwide show that the tobacco industry’s lobby to lower tobacco taxes would result in much lower tax revenues. Yet the industry professes concern over the decline in government revenues. Health outcomes would worsen as demand for lower-taxed — hence cheapened — cigarettes would rise. Our sin tax laws require that tobacco excise tax revenues be allocated towards public healthcare; therefore, a decrease in tobacco tax rates would jeopardize our public healthcare system. Yet ironically, the industry’s propaganda expresses concern over health.

In short, the so-called concern of the tobacco industry is hypocritical, even nonsensical, and undoubtedly, a huge deception. To achieve better health outcomes and to raise tax revenues, the government should not roll back taxes; in fact, the evidence shows it must legislate higher taxes.

The industry’s disinformation is that higher prices because of higher taxes cause the decline in government revenues and cause the rise in illicit trade. But the disinformation conveniently avoids the stark fact that the tobacco companies themselves are boosting their retail prices much higher than the increase in tax rates.

The evidence is clear. In 2023, the tobacco excise tax rate increased by P5 per pack. The same year, the increase in the net-of-tax retail price of the most popular brands of registered tobacco companies increased by almost double the increase in the tax rate. In 2023, JTI’s best-selling brand, Mighty, had an increase in net-of-tax retail price of P7.55, and Philip Morris increased the net-of-tax retail price of Marlboro, the best-selling brand in the market, by P9.11. Obviously, the tobacco industry could afford to raise their prices higher than the P5 per pack increase in 2023.

In 2024, when the tobacco tax rate indexation transitioned from the specific P5 annual increase to 5% of the previous year’s excise tax rate, which translates to P3, the net-of-tax price of JTI’s Mighty was hiked to P10.96, more than triple the increase in excise tax rate in 2024.

These facts suggest that the government can and must further increase tobacco taxes. Why shouldn’t the government raise taxes at a higher rate when tobacco companies are boosting their prices at rates higher than the existing incremental tax rates that barely keep pace with inflation?

And while revenues from tobacco excise taxes have declined, financial statements obtained from the Securities and Exchange Commission (SEC) show that the revenues of JTI, especially, and Philip Morris have increased. The financial statements show that the bottom lines for both companies are in the black. They have solid profits.

Moreover, an Economics for Health policy paper published in June 2025 (Economics for Health, https://tinyurl.com/2xlo67nm/) noted that the tobacco industry’s profits could easily be manipulated by moving profits to associated distributors and other entities in the supply chain. This would require further investigation by the government.

For the first half of 2025, Fortune Tobacco registered a 12% growth in net income, resulting from a 10% increase in equity earning from Philip Morris Fortune Tobacco Corp. (Bilyonaryo, Aug. 13).

Ultimately, the lobby of the tobacco industry is all about greed and profit maximization. In defense of greed, the industry uses nonsensical and deceitful arguments.

Tragically, the nonsense the industry is peddling causes immeasurable harm. Lower tobacco prices because of lower taxes translate to more smokers and more tobacco-related diseases and deaths.

Horribly, the industry’s lobby to lower tax rates is murderous. At least half of smokers will die prematurely from a tobacco-attributable disease. Tobacco kills.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms. Pia Rodrigo is strategic communications officer at Action for Economic Reforms.

PSA: Real GDP per person employed in the Philippines in Q2 2025

The country’s labor productivity — as measured by gross domestic product (GDP) per person employed — eased by 4.1% year on year to P117,289 in the second quarter. This was slower than the 4.8% in the April-June period last year and the 4.2% in the first quarter this year.

PSA: Real GDP per person employed in the Philippines in Q2 2025

Startup helps rice farmers navigate information asymmetries

RCEF.PHILMECH.GOV.PH

AN AGRICULTURE startup is offering a digital platform that helps rice farmers connect directly to millers and traders to ensure they know which are offering the best price for their palay (unmilled grain).

Anehan Information Technology Solutions said its B2B mobile agri-trading platform model represents a pivot from its original business of offering supply-chain management software.

Founded in Nueva Ecija in 2024, Anehan had initially sought to win contracts from the National Food Authority to improve the transparency of the rice supply chain using blockchain technology.

Following the pivot, “our goal is to help 2,000 farmers to sell their produce at better prices and directly link 250 rice retailers to our 25 rice miller partners,” Anehan Chief Executive Officer Aldrin Abenojah told BusinessWorld.

Its app links rice farmers in Nueva Ecija and nearby provinces, rice millers in Central Luzon, and retailers in Metro Manila.

“Palay farmers want a fair price for their produce, rice retailers want alternative suppliers, and rice millers need help in procuring palay and distributing rice,” he said.

The app helps farmers directly sell their produce to millers, and retailers buy rice from millers in its network.

It also has a platform for renting trucks, machinery, and other farm equipment, helping equipment owners maximize the use of their assets.

Anehan also links farmers to its financial institution partners. — Kyle Aristophere T. Atienza

Central bank updates operating procedures for holidays, work suspensions

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) has updated its guidelines on standard operating procedures (SOP) during holidays and work suspensions to ensure the continuity of financial service delivery and market stability.

The memorandum dated Aug. 12 and signed by BSP Governor Eli M. Remolona, Jr. said the revised rules are in line with the regulator’s “continuing commitment to uphold the efficient functioning of the country’s large-value payment system, to ensure the reliability of currency operations, and to promote the stability of the Philippine financial markets.”

“The SOP has been revised and simplified to reflect the BSP’s enhanced capability to perform essential central bank operations under different scenarios where several work arrangements can be applied,” the BSP said.

“Accordingly, such operations shall continue to be undertaken except during nationwide regular and special non-working holidays for both the public and private sectors as declared by Malacañang, or when the BSP Governor/Officer-in-Charge suspends operations due to safety concerns, or non-availability of critical utilities, services, and infrastructure, among other reasons.”

In the case of the latter, the BSP shall issue a public advisory, while its concerned departments or offices must send out advisories to supervised institutions “as much as possible on the day before but no later than 8 a.m. of the same day.”

“For suspensions taking effect after 8 a.m., announcement shall be made at least one hour prior to effectivity.”

Essential central bank operations are monetary and US dollar-peso foreign exchange (FX) operations, preparation of the daily reference exchange rate bulletin, peso real-time gross settlement via PhilPaSS Plus, and cash services, which include currency deposits and withdrawals, Cash Service Alliance, currency management support services, and check-clearing tellering transactions.

A holiday will be considered a reserve day when all essential central bank operations are done for the entire business day.

When the BSP performs these essential operations, relevant financial market infrastructures and industry associations shall also conduct their respective operations, namely: National Registry of Scripless Securities settlement for government security (GS) transactions (Bureau of the Treasury); FX, interest rate swaps and other derivatives trading (Bankers Association of the Philippines; fixed-income trading (Philippine Dealing & Exchange Corp.); interbank and interprofessional GS repo trading (Money Market Association of the Philippines); equities depository and fixed-income depository delivery versus payment (Philippine Depository & Trust Corp.); check image clearing system, PESONet clearing, US dollar-peso payment versus payment (PvP), and Philippine domestic dollar transfer service (Philippine Clearing House Corp.); and automated teller machine and InstaPay clearing (BancNet). — K. K. Chan

JG Summit shares climb on strong Q2 earnings

URC.COM.PH

JG SUMMIT (JGS) shares gained last week after the company reported a sharp rise in second-quarter (Q2) earnings on the back of growth in its core subsidiaries, analysts said.

Data from the Philippine Stock Exchange (PSE) showed that JG Summit was the 12th most traded stock of the week, with 39.52 million shares worth P974.95 million changing hands by Friday.

JG Summit’s share price closed at P24.80 at the end of the trading week, up 7.8% from P23 the previous Friday. The uptick outperformed the 1.1% increase of the holding firm index and the 0.4% decline of the PSE index week on week.

Since the start of the year, JG Summit’s stock price has risen by 20.7% from P20.55 at the last trading day of 2024.

Jasper Timoteo A. Ondap, equity analyst at Regina Capital Development Corp., said in a Viber message that the company’s earnings announcement fueled the stock’s movement for the week.

In an Aug. 12 disclosure, JG Summit reported second-quarter attributable net income of P10.65 billion, up 175.3% from P3.87 billion a year earlier.

Consolidated revenues also increased by 5% to P95.85 billion from P91.26 billion in the same period.

“This was something [that], at least the market, accepted very positively reflected on its [almost] 6% increase,” he said.

Mr. Ondap added that growth in the conglomerate’s core units — Cebu Pacific (CEB), Universal Robina Corp. (URC), and Robinsons Land Corp. (RLC) — drove its quarterly earnings.

For the first half, CEB reported net income of P8.5 billion, higher than the P1.31 billion in 2024, boosted by strong passenger revenues from more flights and increased seating capacity.

URC and RLC also posted higher sales for the period at P85.89 billion (from P80.75 billion) and P11.02 billion (from P10.75 billion), respectively, due to growth in key business segments.

“The company has been streamlining its portfolio by closing underperforming businesses, such as its petrochemical unit, and is now focusing on its core strengths while pursuing expansion in those areas,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in an e-mail.

On May 16, the company announced the two-year shutdown of its petrochemical arm, JG Summit Olefins Corp., due to industry and market challenges.

The move was aimed at accelerating growth for the conglomerate in the coming quarters.

“JGS is showing good fundamentals and performance for the period, quite reflected on its stock price this week,” Mr. Ondap said.

Mr. See added that investors expect the company’s momentum to continue through the rest of the year and possibly surpass last year’s earnings.

For the next trading sessions, Mr. Ondap said the stock is “due for a correction” after reaching overbought levels last week.

“There might be profit taking to ensue after reaching these high levels, but still quite difficult to see where it goes especially with a liquidity event, like rebalancing, to happen,” he added.

Mr. See added that the stock “might pull back and visit its support levels in the short term,” but the overall trend remains bullish.

For this week, Mr. Ondap placed support levels at the P24-P23.50 range and resistance levels at P25-26.

Mr. See pegged support at P23 and P21.40 and resistance at P25.40 and P28.40. — Matthew Miguel L. Castillo

First AAP-sanctioned inter-island rally kicks off in Lubang

From left are Automobile Association Philippines (AAP) Head of Motorsport Rikky Dy-Liacco, Lubang Mayor Michael Orayani, AAP CEO Mark Desales, and Philippine National Rally Championship and Philippine Rallycross Series Organizer Olson Camacho. — PHOTO FROM PHILIPPINE NATIONAL RALLY CHAMPIONSHIP

THE AUTOMOBILE Association Philippines (AAP) and the local government of Lubang, led by Mayor Michael Orayani, recently held the first-ever AAP-sanctioned inter-island rally. The two-day event opened with a challenging night rally on Friday, followed by a faster-paced day rally on Saturday — both series consisting of six special stages across Lubang’s paved roads.

The race used a blind rally format; no reconnaissance or pace notes were allowed, meaning drivers and co-drivers had to rely solely on a basic road map provided by the organizers. The result was a grueling yet exhilarating test of navigation, trust, and raw driving skill.

Organizers noted “overwhelming support from Lubang’s residents, who lined the streets and cheered for every passing competitor. It was the first time the entire island united behind a motorsport event, transforming Lubang into a living, breathing racetrack full of energy and pride.”

The AAP is the country’s sole FIA-recognized national auto club and official governing body for four-wheel motorsports. The event was led by AAP President Joe Ferreria, Motorsport Chairman Mandy Eduque, AAP CEO Mark Desales, and AAP Head of Motorsport Rikky Dy-Liacco. Organizing duties were handled by seasoned rally veterans from the Philippine National Rally Championship and Philippine Rallycross Series headed by Olson Camacho and Ronnie Trinidad.

In Group 1, the consistent tandem of Rikky Dy-Liacco and Vince Miguel Benedicto dominated both the night and day rallies, clocking 27:31 in Round 2 and improving to 22:14 in Round 3. Mark Desales and Ricxie Dela Cruz were close behind in both legs, securing back-to-back second-place finishes. Group 2 saw Paul Santos and DJ De Guzman take the win in Round 2 (27:49), while Louie Camacho and John Rey San Diego surged ahead in Round 3 with a time of 20:35. Ran Ramento and Carlo Castillo delivered steady performances with two third-place finishes. In Group 3, Adrian De Leon and Devor Andres ran a near-flawless weekend, winning both rounds with 26:44 and 21:48, respectively. Group 4 saw Ricky Montelibano and Alex Gonzales top both legs with fast and consistent times of 24:35 and 20:55. EZ Ligaya and Stephen Alunan held onto second place in both stages.

The Open Class featured some of the closest action. Ralph Ramento and George Reboldila claimed Round 2 with 25:09, while Aeron Jarman Rumohr and Pierro Garcia bounced back with 20:33 to win Round 3. Anjo Perez and Randy Peregrino finished third in both rounds, while Bryan Duarte and Raymond Mendoza wrapped up the classification.

The event was sponsored by Isuzu and Clean Fuel, with additional support from Okada Manila Motorsports Carnivale 2025. Other partners included AC Delco, Aguila Glass, Ravenol, Method Race Wheels, Impenetra, Autoplus, Motoring Today, Turbo Zone, Autocar PH, Wheels PH, and CW Home Depot.

Carrying good vibes

GOPI - REEF BAG — CARRYOM.COM.PH

THE SANSKRIT symbol and sound Om represents the universe — so how would you feel holding that in your hands?

ArteFino, the artisanal fair, ended this year’s run on Aug. 3, and before they did, they awarded Best Product for Fashion Accessories to Carry Om, a brand centered around upcycled bags. The brand was created earlier this year by couple Viktoria Salazar and Dhanvan Saulo. They are also behind the vegan restaurant Cosmic and its non-alcoholic bar, Gnostic (both located in Poblacion, Makati). Combined, their businesses begin to create an urban lifestyle centered on caring for the environment through personal choice.

In an interview with BusinessWorld on the last day of ArteFino, Ms. Salazar said, “When you’re carrying Om, it’s carrying vibrations.”

The bags are made by senior citizen-seamstresses employed by Mr. Saulo’s family. That family was behind a bag brand in the 1980s, transitioning to a similar sustainable model in the early 2000s. The 2000s bag brand made new bags out of bags found in thrift stores: the Carry Om model uses deadstock and fabric scraps from mass-producing factories, and these materials have to make up at least 90% of the bags. 

Mr. Saulo said, “Everything that I’ve done, I always focus on sustainability.” According to Ms. Salazar, he was raised in a home that practiced Hinduism. “Just the way I grew up,” said Mr. Saulo. “I’ve been vegetarian since I was born. Sustainability has been ingrained in me since I was a kid, from the food on the plate that I eat.”

Cosmic is popular for its iterations of Filipino food made vegan-style: think kare-kare (peanut stew) but eliminating all the animal elements (it’s normally made with tripe and oxtails, and seasoned with shrimp paste), and a vegan version of bagnet (usually made with cured, salted, dried, then deep-fried pork). “We have this notion with vegan restaurants that it doesn’t taste good and it’s expensive. They wanted to crush that, showing people that it can be affordable, and it can taste good. It’s more of accessibility to people,” said Ms. Salazar.

A look at Carry Om’s items shows they’re cleverly designed with pockets and compartments concealed on the inside, with loops here and there to hang charms from (the couple makes a pun about being funky and functional). They’re also awash with colors. “I wanted people to feel how it is with colors. When you see colors, the first thing you feel is happiness. Dopamine. I wanted to share that with other people,” said Ms. Salazar. “How happy I am creating it, is how I want people to wear it.

“You carry Om, you carry happiness, essentially,” she said.

Here’s the thing: anyone can make something vegan or sustainable, without having to think of aesthetics or appeal. The couple does make things sustainable, but they want to do it well. Mr. Saulo says, “People generally buy not for a cause. When people buy, it’s really for something valuable to them.”

The bags are going mainstream: they’re already in Opus Mall’s Spatio and Purveyr, and this month, they’ll be sold in Bratpack stores.

“We know the trajectory of where the world is (going). We’re depleting a lot of natural resources. There’s really a lack of people trying to build a business about sustainability,” said Mr. Saulo. “And consciousness,” added Ms. Salazar.

“When you eat something from Cosmic, even if it’s just one meal, it’s already a big difference in the chain,” she said. “With our bags, just purchasing something is helping trash not be trash.”

Find Carry Om at https://carryom.com.ph/ and on Instagram @carryom.ph. — Joseph L. Garcia

Fugitive memory

STOCK PHOTO | Image by Yu from Unsplash

On Aug. 17, in Indonesia, the government of President Prabowo Subianto postponed the release of a 10-volume “official history.” A good number of historians and activists pushed back against this history-writing project which they think will gloss over the memory of atrocities and further historical amnesia.

To several generations of activists, Indonesia has not acknowledged the 1965 murder of an estimated million-plus alleged Leftists when General Suharto took over from President Sukarno. Yet the numbers are staggering: some estimates go as high 3 million killed in cold blood. The anti-communist purge was widely known to have been supported by the United States and the United Kingdom, and halted Indonesia’s momentum towards non-aligned status during the Cold War.

Historical amnesia — a collective forgetting by deliberate means or simple human neurological inclination — is the shadow side of identity. But it’s complicated.

MEDIATED REALITY
In the film Hiroshima mon amour (1959), the French New Wave director Alain Resnais worked with a script by the esteemed Margueritte Duras about a 24-hour love affair. The story is told in flashbacks, as though those sudden recollections fired up during intense experiences.

The woman, an unnamed French actress, recalls the immediate aftermath of the hydrogen bomb detonation over Hiroshima. The man, a Japanese architect, actually lost family during that doomsday. But, fighting with the Japanese Army, he was not witness to the horror.

He tells the woman she knows nothing of the day. Her flashbacks are from film footage, newsreels stories, and broadsheets. She was in Hiroshima to film an aftermath documentary.

He, too, knows nothing of the bomb blast. His flashbacks also draw from mediated reality, fixating as he does on the name of woman’s birthplace, Nevers. He knows nothing of Nevers except for the alluring name. She does not wish to ever go back there.

Both have 2nd, 3rd, nth hand memory of the day. The reality of doomsday filters through film, newsprint, oral accounts, and delirious meanderings of the mind.

LITTLE BOY AND THE CRANE
Seventy years ago, on Aug. 6, 1945, the United States dropped the bomb named Little Boy on Hiroshima, Japan, from the B-29 aircraft named after the pilot’s mother, Enola Gay. Some 70,000 to 100,000 people died immediately in the apocalyptic light. Except for 10% of this number, the dead were all civilians. The toll increased to 135,000 to 237,000 in the ensuing months.

Only 14 years after the city’s destruction, Hiroshima mon amour already understood the malleability and media-layered qualities of memory. Today, at a remove of seven decades, recollection of this doomsday for most people alive today is necessarily splintered. Except for the handful of survivors — who continue to talk about the event and appeal for an end to nuclear proliferation — the raw experience is inaccessible.

Inaccessible and hence forgettable. Hardly anyone in the world right now remembers, or can imagine, the scale and cruelty of the destruction. Perhaps the movie Oppenheimer will take over the memory for the English-speaking world. The 21st Century narration of the Manhattan Project that created Little Boy and Fat Man (dropped in Nagasaki) is filtered through an angst-ridden American lens.

Japanese recollection communicates through small origami cranes made by children to evoke a child victim whose death by blast-triggered leukemia came after she made 1,000 of these poignant paper birds. The memory of doom filters through a deliberately peaceful state of mind.

This remembrance-as-a-crane is pervaded by a will to peace for humanity. The Manhattan Project recollection is pervaded by the heroic figure of a singular tormented genius.

Seems memory can hardly be the same.

ANOTHER 100,000
By Aug. 6, 1945, it had been five months since the end of the Battle of Manila. The event is institutionally recalled with capitals “B” and “M” because the magnitude of devastation needs, up to the present, exclamation. About as many civilians died in Manila as in Hiroshima: 100,000 people. It is a figure unremarked in world history.

The survivors of the Battle of Manila do not recall “Japanese time” (1942 to 1945) through a veil of peace. In the Philippines, largely oral accounts pass on details of torture conducted house to house in the Manila districts of Ermita and Malate, by the trapped Japanese soldiers. Curiously, few Filipinos recall deaths by American bombardment.

Selective memory operates on widely accepted narratives in given populations. To Filipinos generally, the Japanese were occupiers and the Americans were liberators. The former, unwanted and cruel; the latter, dearly awaited. This dualism framed the passage of war stories to the next generations of Filipinos, until it dissipated in recent decades among kids who took to Japanese anime big time. In time, therefore, war and Japan conflated into beautifully choreographed spectacles of carnage. Extremely alluring.

Whatever recollection of the last days of the Second World War remains — mainly held by Boomers born within a decade of Manila’s destruction — now seems impossible to sustain. Memory becomes fugitive wherever lived experience is sheathed in powerful new stories.

And as for the American dimensions of the Battle of Manila, the old comic books and the recent films, Avengers and the Justice League of America, have made slick work of dissolving possibilities of auditing the aerial attacks, including carpet bombing, that reduced one of Asia’s most beautiful cities into bloodied, concrete chaos in 1945.

Filipino National Artist for Literature Nick Joaquin wrote the lines for a plaque, called Memorare, to voice his generation’s prayer. “Let this monument be the gravestone for each and every one of the over 100,000 men, women, children, and infants killed in Manila during its battle of liberation, 3 February — 3 March 1945. We have not forgotten them, nor shall we ever forget.” And yet they are forgotten, the plaque known to very few, mostly descendants of victims.

ABOUT THE 6,000,000
By Aug. 6, 1945, Berlin was at the tail end of the Potsdam Conference, which at this point was finalizing dividing Germany and jointly supervising the destroyed Berlin by a council of the Allied powers: the Soviet Union, the United States, France, and the United Kingdom. The main actors at Potsdam were talking about the detonation of the H-bomb over Hiroshima. They detonated their own, so to speak, by the complete legal annihilation of Nazi Germany.

In the case of the postwar Federal Republic of Germany, forgetting the Nazi past and the Holocaust was entirely out of the question. West Germany institutionalized a never-forget-never-again agenda that literally pounded contrition for Nazi debauchery — the systematic killing of 6 million Jews — into Germany’s collective conscience for several generations, through the educational, political, and cultural systems of the postwar FRG, the Bundesrepublik Deutschland, and East Germany before reunification, which condemned Nazi organizations and whose state doctrine often brought their crimes to public discussion. But for both East and West Germany, and reunified Germany, it was not to take more than a few decades after 1945 for Neo-Nazis to emerge from the cracks of the Cold War political surfaces.

The question that is begged is actually more complicated than: What does it really take to ensure that the raw stories of horrific events do not slip under all kinds of screens and veils and spins? The answer — raw stories are only survivors’, no one else’s — takes two seconds to become self-evident.

But here’s the truly thorny issue: if one retelling is as truthful as another retelling, given the good faith of the teller (however misguided), and if indeed the mediation of raw experience is inevitable, then how is Never Again possible?

COHERENCE AND DOOM
A shared moral compass is first to come to mind as necessary in absolute terms. With it, commonly held stories and beliefs stabilize the adherents; more importantly, allow different versions of stories to cohere anyway by pointing to a single true north. In this the 21st Century, the compass may not have to be a Christian nor Islamic nor Taoist nor Hindu nor Humanist compass, but a compass nonetheless that is under construction in response to the arrival of machine intelligence.

Whatever shape it might take, lessons from the last 70 years oblige human beings to allow for narrative differences, no matter how wildly disparate — as Hiroshima mon amour described in the mid-20th Century — so long as coherence is possible against total annihilation.

 

Marian Pastor Roces is an independent curator and critic of institutions. Her body of work addresses the intersection of culture and politics.

Which regions cornered the most foreign investment pledges in Q2 2025?

FOREIGN INVESTMENT pledges plunged by 64.4% in the second quarter as investor sentiment turned cautious amid heightened global uncertainty driven by flip-flopping US tariff policies. Read the full story.

Which regions cornered the most foreign investment pledges in Q2 2025?

Indonesia signals continuing crackdown on palm plantations

REUTERS

JAKARTA —  Indonesia will launch a broader crackdown on the illegal exploitation of natural resources after a survey found that palm plantations on 3.7 million hectares (14,300 square miles) were operating in violation of the law, President Prabowo Subianto said.

The area is almost the size of Switzerland.

Mr. Prabowo added that a total of 5 million hectares of plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors.

He made the comments in his first state of the nation speech, delivered as the country — the world’s largest producer and exporter of palm oil — celebrates 80 years of independence this weekend. Mr. Prabowo won a presidential election last year, and took power in October.

“We will ensure that the Indonesian people will not fall victim to greedy economics,” Mr. Prabowo, speaking in parliament, said, adding that the government had already seized 3.1 million hectares of illegal palm plantations with the help of the military.

“We have used the military to accompany the teams that took over the plantations because there often is resistance,” he said. Critics have expressed concern about the growing role of the military in civilian life under Mr. Prabowo.

In his speech, Mr. Prabowo, a former special forces commander known for his aggressive operational tactics, also warned that the state could confiscate assets of companies that “manipulate and violate” Indonesia’s laws.

He said his government was also planning a crackdown on mining, adding that authorities had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago.

He did not specify what type of mines or the commodities they were extracting.

Indonesian Palm Oil Association  chief Eddy Martono questioned the source of Mr. Prabowo’s figures and said his organization had not been consulted on the 5 million hectares number.

On the 3.7 million hectares of plantations found to be operating unlawfully, he said companies and cooperatives running them had been asked to clarify their status and some had permits such as land-use concessions and ownership certificates.

“It will create a negative image internationally, suggesting that Indonesian palm oil is encroaching on forests,” he said.

There was no immediate response from the national association of miners to a Reuters request for comment on the president’s assertions.

Indonesia is also the world’s biggest producer of nickel and a major producer of thermal coal, tin, and copper.

Mr. Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia.

Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said.

The main stock index touched its all-time high, rising 1.1%, as Mr. Prabowo started his speech, but then retreated to trade 0.4% down by the close.

The rupiah, which had strengthened in recent days, also slipped 0.3%. — Reuters

Yields on BSP bills end mixed

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities ended mixed on Friday as the one-month tenor went undersubscribed for a third straight week despite the lower volume offered.

The BSP bills fetched bids amounting to P115.207 billion on Friday, below the P120-billion placed on the auction block and the P163.236 billion in demand for the P200-billion offer a week prior. However, the central bank awarded only P103.231 billion in securities.

Broken down, bids for the 28-day papers amounted to only P44.231 billion, lower than the P60 billion auctioned off by the BSP and the P78.41 billion in bids seen last week for the P100 billion on offer. The central bank only accepted P43.231 billion in tenders.

Accepted yields were from 5.295% to 5.43%, wider than the 5.325% to 5.43% from a week prior. This caused the weighted average accepted rate for the 28-day securities to inch up by 0.76 basis point (bp) to 5.3928% from 5.3852% previously.

Meanwhile, tenders for the 56-day bills reached P70.976 billion, higher than the P60-billion offer but below the P84.826 billion in tenders for the P100 billion auctioned off a week prior. The BSP fully awarded the two-month securities.

Banks asked for rates ranging from 5.35% to 5.4%, narrower and lower than the 5.368% to 5.42% band seen in the previous auction. With this, the average rate of the 56-day securities slipped by 0.69 bp to 5.3902% on Friday from the 5.3971% recorded a week prior.

Rates for the BSP bills (BSPB) were mostly steady even as the central bank lowered the offer volume, it said in a statement.

“The BSP reduced the total BSPB volume offering from P200 billion to P120 billion, with an equal mix of P60 billion from P100 billion for each tenor. Total tenders received amounted to P115.207 billion, lower than P163.236 billion in the previous week,” the BSP said. “The 28-day tenor had a bid-to-cover ratio of 0.74x, while the 56-day tenor was 1.18x oversubscribed.”

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide short-term market rates towards its policy rate.

The BSP bills also contribute to improved price discovery for debt instruments while supporting monetary policy transmission, the central bank said.

The central bank securities were calibrated to not overlap with the Treasury bill and term deposit tenors also being offered weekly.

Data from the central bank showed that around 50% of its market operations are done through its short-term securities.

The BSP bills are considered high-quality liquid assets for the computation of banks’ liquidity coverage ratio, net stable funding ratio, and minimum liquidity ratio. They can also be traded on the secondary market. — Katherine K. Chan

Debt yields drop on rate cut bets

YIELDS on government securities ended lower across all tenors last week after the Bangko Sentral ng Pilipinas (BSP) signaled that it could cut rates for a third straight time later this month.

GS yields, which move opposite to prices, declined by an average of 4.55 basis points (bps) week on week at the secondary market, based on the PHP Bloomberg Valuation Service Reference Rates as of Aug. 15 published on the Philippine Dealing System’s website.

At the short end, yields on the 91-, 182-, and 364-day Treasury bills (T‑bills) fell by 7.83 bps (to 5.2921%), 5.09 bps (5.5066%), and 0.65 bp (to 5.6592%), respectively.

At the belly of the curve, rates of the two, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 2.61 bps (to 5.6597%), 4.67 bps (5.7361%), 5.26 bps (5.7959%), 4.82 bps (5.8469%), and 3.88 bps (5.9254%), respectively.

Lastly, at the long end, yields on the 10-, 20-, and 25-year bonds dropped by 5.91 bps (to 6.0657%), 4.78 bps (6.4165%), and 4.52 bps (6.4170%), respectively.

GS volume traded fell to P61.1 billion on Friday from P90.84 billion on Aug 8.

“With the BSP underscoring the possibility of an August rate cut following the below-target inflation and GDP (gross domestic product) growth, market participants have been slowly driving short-term yields in anticipation of this eventuality from the local central bank,” the first bond trader said in an e-mail on Friday.

The second bond trader said in a Viber message that GS yields continued to go down as the market continued to reposition in anticipation of a BSP cut at the Monetary Board’s Aug. 28 meeting.

Philippine headline inflation sharply eased to a near six-year low of 0.9% in July, marking the fifth straight month that inflation settled below the central bank’s 2-4% annual goal.

For the first seven months of the year, inflation averaged 1.7%.

Meanwhile, the economy grew by an annual 5.5% in the second quarter, supported by a rebound in agriculture production and faster household consumption.

For the first half, GDP growth averaged 5.4%, slower than the 6.2% a year ago. The government is targeting 5.5-6.5% GDP growth this year.

BSP Governor Eli M. Remolona, Jr. said last week that a rate cut is “quite likely” at the Monetary Board’s next meeting on Aug. 28. The BSP chief also said that they are expecting to deliver only two more rate cuts this year, including the one they could implement this month

After this month’s review, the Monetary Board’s remaining meetings for this year are scheduled for Oct. 9 and Dec. 11.

Both traders said that the release of July US consumer price index data also bolstered expectations of a September reduction by the Federal Reserve, which caused GS yields to rally.

“However, after the US PPI (producer price index) reports came in stronger than anticipated, traders have tempered their expectations that the US central bank could cut more aggressively this year, returning to previous expectations of a total 50-bp cut from the Fed,” the first trader said.

A Federal Reserve interest rate cut in September, the first this year, followed perhaps by another before yearend remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world’s biggest economy, Reuters reported.

US inflation is rising again, with more upward pressure expected from President Donald J. Trump’s tariffs, and there have been big downward revisions to hiring figures over recent months that suggest the job market is weakening.

Mr. Trump has berated Fed Chair Jerome H. Powell over his reluctance to cut rates. And at the July meeting there was clear divergence from the steady rates position among a minority of Federal Open Market Committee members.

Alongside simmering doubts over the Fed’s independence from political interference and declining reliability of economic data, it has become more difficult for economists to make predictions with great conviction.

Economists are broadly sticking to a more cautious outlook than interest rate futures traders, whose pricing suggests a near-certainty of a September cut and strong likelihood of another, and the possibility of a third by year-end.

A 61% majority, 67 of 110, predicted the Fed would lower its benchmark interest rate by 25 bps to 4%-4.25% on Sept. 17 for the first time this year, up from 53% in July’s survey. One forecast a 50-bp move.

The remaining 42 said the Fed would hold rates again.

Over 60% of respondents, 68 of 110, predicted there would be either one or two rate cuts this year, broadly unchanged from last month. But there was no consensus on where the federal funds rate would be at end-2025.

“The other main driver this week was likely the BTr’s (Bureau of the Treasury) management of the RTB (retail Treasury bond) offer period as it encountered a strong enough demand to have to actively manage the offering by closing the offer to institutions last Friday (Aug. 8) and restricting it further to sponsored accounts last Wednesday (Aug. 13),” the second trader added.

For this week, the first trader said the market may adopt a more cautious stance due to the shortened trading week and as they wait for possible policy signals from the Fed.

The second trader said there could be some volatility early in the week as the market could react to the US data released over the weekend.

“We’ll also see the new RTBs become free to trade on the 20th and it will be interesting to see where it trades considering that the comparable five-year bond currently trading in the market was traded to a low of 5.75% [on Friday], or 25 bps lower than the 6% coupon of the new RTBs,” the trader said. — Heather Caitlin P. Mañago with Reuters