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Treasury bond yields decline as soft US data boost Fed cut bets

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday at a lower average yield as soft US data boosted expectations of a US Federal Reserve rate cut soon.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 20-year bonds it auctioned off on Tuesday as total bids reached P57.087 billion, higher than the amount on the auction block.

The bonds, which have a remaining life of seven years and one month, were awarded at an average rate of 6.624%. Accepted yields were 6.515% to 6.649%.

The average rate of the reissued bonds went down by 43.4 basis points (bps) from the 7.058% fetched for the series’ last award on April 30. This was also 137.6 bps below the 8% coupon for the issue.

Still, this was 0.8 bp higher than 6.616% quoted for the seven-year bond, but 2 bps below 6.644% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

Tuesday’s full award brought the outstanding volume for the series to P313.3 billion, the BTr said in a statement.

“The lower T-bond rate reflected the softer-than-expected US Institute for Supply Management (ISM) manufacturing purchasing managers’ index report for May 2024. This report has trimmed some hawkish expectations of a prolonged delay in US policy rate cuts,” a trader said in an e-mail.

US manufacturing activity slowed for a second straight month in May as new goods orders dropped by the most in nearly two years, and spending on construction projects slipped unexpectedly the month before, the latest indications that a gradual slowdown in the economy is taking hold, Reuters reported.

The ISM’s manufacturing purchasing managers index for May fell to 48.7 from 49.2 in April, the research group said on Monday, noting an increase in references to “softening” among survey respondents. It was both the second straight decline and the second month below the 50 level that separates growth from contraction. Economists polled by Reuters had a median estimate for 49.6.

Meanwhile, construction spending fell unexpectedly for a second month in April on declines in non-residential activity, although there was an improvement in single-family home building.

The softer tone of the recent data has begun to buttress the case in investors’ minds for the Fed to start lowering interest rates about three months from now. Following the ISM data, interest rate futures pointed to about a 60% probability that the Fed will lower its benchmark rate in September from the current 5.25-to-5.5% range it has been held at since last July.

Fed officials, who next meet on June 11-12, have said their primary focus is on returning inflation to their 2% target after price pressures reaccelerated in the first quarter.

The T-bonds fetched a lower average rate after the Bangko Sentral ng Pilipinas (BSP) chief said they could cut rates earlier than the Fed, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Eli M. Remolona, Jr. on Tuesday reiterated that the benchmark rate could be cut ahead of the Federal Reserve, keeping pressure on the peso against the dollar amid expectations US rates will stay higher for longer, Reuters reported.

Mr. Remolona said the BSP is ready to take action when the peso is under stress, but added that the central bank does not intervene in the foreign exchange market on a daily basis.

The central bank chief said the benchmark policy rate — currently sitting at a 17-year high of 6.5% — could be cut before the Fed starts its easing cycle, repeating previous comments as policy makers gain more confidence about reining in inflation pressure.

Mr. Remolona said the BSP is already less hawkish than before as inflation could settle within its 2-4% comfort range sometime this year after staying above the top end of that target for two consecutive years.

The BSP raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to rein in inflation.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion from Treasury bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

VISTAREIT, Inc. to conduct annual stockholders’ meeting online on July 5

 

 


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The best shows to see in New York City this summer

STEREOPHONICPLAY.COM

A TIDAL wave of new productions flooded Broadway this spring — some captivating, some confounding, some that have already folded. As we head into summer, here’s a guide to those that rose to the top of the crowded theatrical marketplace. Added to the list are exciting arrivals making the leap from off-Broadway to Times Square, and a crop of inventive shows found around town.

STEREOPHONIC

Where: Golden Theater
When: Through Aug. 18

The must-see off-Broadway hit of the fall became the most Tony-nominated play in history. Set in a recording studio over the course of a year, David Adjmi’s play with songs follows the artistic and interpersonal roller-coaster of a Fleetwood Mac-like band laying down an era-defining album in 1970s California. (The convincing original songs are by Will Butler, formerly of Arcade Fire.) A humorous, painful meditation on the creative process, this captivating mini-marathon of a show largely justifies its three-hour running time.

THE OUTSIDERS

Where: Bernard B. Jacobs Theater
When: Ongoing

The musical-adapted-from-a-film has become a bemoaned feature of modern Broadway. This season brought a quartet of fresh attempts, including The Notebook and Water for Elephants. But The Outsiders, based on S.E. Hinton’s proto-YA novel of teenage malaise, emerged as the most popular and fully realized. It has a sweet and soaring score by the folk duo Jamestown Revival, explosive and inventive choreography by brothers Rick and Jeff Kuperman, and a big, attractive ensemble of young emerging talent.

ILLINOISE

Where: St. James Theater
When: Through Aug. 10

Justin Peck is best known for making ballets, but Broadway has always been in his DNA. He won a Tony Award for his work on a Carousel revival in 2018, then reimagined Jerome Robbins’ moves for Steven Spielberg’s West Side Story remake in 2021. Now he’s adding director to his résumé with Illinoise, the season’s most unconventional new musical. A dance fantasia set to Sufjan Stevens’ seminal 2005 album Illinois, Mr. Peck’s moving meditation on grief, community, and the catharsis of storytelling is visually and sonically beautiful.

MARY JANE

Where: Samuel J. Friedman Theater
When: Through June 30

A highlight of last season was an austere revival of Henrik Ibsen’s A Doll’s House, which drew power in part from Amy Herzog’s sharp translation. She repeated the feat this season with a bold tinkering of Ibsen’s An Enemy of the People. But she’s also an accomplished dramatist in her own right. Her tender 2017 play Mary Jane is currently breaking hearts on Broadway with a nuanced and dignified central performance by Rachel McAdams, who plays the unfailingly spirited mother of a tragically ill young son.

LITTLE ISLAND

Where: Little Island, Pier 55, Hudson River Park
When: Through Sept. 22

This gorgeous waterside park boasts perhaps the city’s most picturesque amphitheater. This summer it will be populated with an impressive roster of artists, beginning with the renowned choreographer Twyla Tharp and revered musicians T Bone Burnett and David Mansfield, all of whom collaborated on the new musical How Long Blues (through June 23). Other intriguing events include a dance by Pam Tanowitz (July 17-21), a live radio hour (July 31-Aug. 4), and performances by opera stars Davóne Tines (Robeson, June 26-29) and Anthony Roth Costanzo (The Marriage of Figaro, Aug. 30–Sept. 22).

THE COMEDY OF ERRORS

Where: Various locations
When: Through June 30

With Central Park’s open-air Delacorte Theater out of commission for renovations, the Public Theater decided to take its popular Free Shakespeare program on the road. It will send its so-called Mobile Unit around town for pop-up performances of the Bard’s farce of mistaken identity throughout June. This 90-minute bilingual musical adaptation will visit parks and plazas in all five boroughs. It features actor-musicians and an original score drawing on Latin American musical styles.

TITANIC AND ONCE UPON A MATTRESS

Where: New York City Center / Hudson Theater
When: June 11-23 / Previews begin July 31

City Center’s long-running Encores! series, which presents edited, minimally staged productions of adored but often under-appreciated musicals, has emerged as one of the most exciting pipelines to Broadway. The latest to take the leap is Once Upon a Mattress, an audience favorite starring a delightfully bawdy Sutton Foster as the uncouth Princess Winnifred; it’ll play the Hudson Theater after its short run this winter at City Center. The next big Encores! project is a remount of 1997’s Tony-winning Titanic, anchored by the charismatic belter Bonnie Milligan and Here Lies Love star Jose Llana, which begins performances on June 11.

CATS: THE JELLICLE BALL

Where: Perelman Performing Arts Center
When: June 13–July 14

Andrew Lloyd Webber’s beloved, bewildering musical about a pageant of dancing felines gets an inspired makeover at New York’s newest arts venue. This intimate production transposes the prancing kitties from junkyard to the catwalk, drawing on the vibrant underground ballroom culture (hence the subtitle) that developed in Harlem in the 1980s by queer people of color. Both that scene and this musical celebrate artful self-presentation, physical prowess and a healthy dose of fantasy.

OH, MARY!

Where: Lyceum Theater
When: Previews being June 26

Despite all the new shows arriving on Broadway this spring, all that New Yorkers could talk about was Cole Escola’s wacky 80-minute romp about a whiny, delusional Mary Todd Lincoln, her bumbling, repressed husband, and his dashing would-be assassin. After consistently selling out a small theater in the West Village, this irreverent piece of revisionist history moves uptown, bringing a refreshing dose of shrewd indecency to Broadway.

Job

Where: Hayes Theater
When: Begins July 15

There’s a particular thrill in watching a “two-hander,” a play with only two actors. And an extra special thrill when that play is, well, thrilling. That’s the case with Job (as in work you get paid for, not the prophet) by Max Wolf Friedlich, which arrives on Broadway after a pair of well-received off-Broadway runs. In this chilling portrait of millennial angst with a shocking twist, Peter Friedman (familiar to Succession fans) is a psychologist, and Sydney Lemmon (doing Grandpa Jack proud) is his disturbed patient. — Bloomberg

Wilcon Depot builds big ideas at Villamonte, Bacolod

Wilcon's #FlyingHighTo100 campaign marks a milestone with its 94th store in Bacolod, setting new standards in quality, innovation, and sustainability. In photo are (from left) Wilcon Depot VP for merchandising Ruel Godino, Matimco Modern Trade Sales Director Jeffrey Go, Limson Marketing CEO Carl Lim, Wilcon Depot President and CEO Lorraine Belo-Cincochan, Negros Occidental Provincial Vice-Governor Jeffrey Ferrer, Bacolod City Lone District Congressman Greg Gasataya, Wilcon Depot SEVP-COO Rosemarie Bosch-Ong, Island Living Channel Chairman Radjie Caram, Jr., Wilcon Depot SVP for Human Resources Grace Tiong, VP for Global Sourcing Michael Tiong, and AVP for Sales and Operations Ramiro Mesa.

The leading retail giant in home improvement and building needs brought their household name to Villamonte, Bacolod on May 31. Providing excellent product lines and premium building services, Wilcon celebrates the 94th store opening, nearing the 100th store mark.

Once a vital settlement during the Spanish colonial era, sugarcane plantation is a typical scene along the highways of Bacolod, earning the title of “Sugar Bowl of the Philippines.” The northwestern city on the island of Negros is known for its illustrious people, glorious heritage, culture, and tradition. Known as the City of Smiles, Bacolod is a highly urbanized communication, trade, and service center of the Province of Negros Occidental. It is one of the most progressive and elite cities in the country.

Wilcon strategically set up its new branch in the emerging powerhouse of the province, aiming to support its continuous progress by offering job opportunities and stimulating local employment. After the first arrival of Wilcon in Talisay City, Negros Occidental, Wilcon strives to expand its presence with a second store in the province, providing local residents with convenient access to quality home improvement and construction products, thereby reducing the need to spend travel outside the area.

As part of its #FlyingHighTo100 expansion campaign, Wilcon is transforming the construction industry landscape round the clock to raise the standards of nation-building. This power move distinguished Wilcon in terms of quality, innovation, and sustainability. The 94th store grand opening is a step forward in Bacolod’s growth and development which was graced by Wilcon Depot executives, headed by President & CEO, local government officials, media friends, and industry partners.

Rosemarie Bosch-Ong, SEVP & COO of Wilcon Depot, welcomes the esteemed guests and underscores Wilcon’s continuous commitment to Bacoleños. “This 94th Wilcon store will serve the needs of Filipino homeowners, builders, and contractors, not just here, but also in the nearby areas. We promise that we will continue to uphold our commitment to providing high-quality products, excellent customer service, and innovative solutions to meet the evolving needs of every Bacoleño home enthusiast.”

Lorraine Belo-Cincochan, President & CEO of Wilcon Depot, concluded the program by celebrating the support and trust that have driven Wilcon Depot’s success: ‘We are a few stores away from our 100th. This achievement of reaching our 100th store milestone wouldn’t have been possible without the unwavering support and trust of everyone. To all Bacoleños, know that Wilcon is here to help you fulfill your dreams for your homes and spaces.”

With a focus on accessibility, ultimate convenience, exceptional customer service, innovation, sustainability, and high-quality product lines, the nearly 47-year-old retail company aims to deliver even more value to its loyal customers, stakeholders, suppliers, and industry partners. Wilcon’s resilient efforts to expand its network hope to serve more communities and become the top-of-mind destination nationwide for construction and home improvement needs.

Its product line is beyond impressive. Its exclusive and in-house products include Pozzi for trusted bathroom solutions; Hamden Kitchen Appliances, an ideal partner for your kitchen needs; Alphalux, an energy-efficient lighting solutions brand; Kaze, an appliance brand that will help you live a healthy space; Hills, a trusted brand for construction and electrical power tools; P.Tech, your partner for reliable building materials; Cifre, Emigres, STN Ceramica, Stylish Spanish Tiles with a contemporary interpretation of a classic style; Arte Ceramiche, Verona Tiles, and Huanqui, Asian tiles for a more sophisticated home; Energie Ker, Gardenia Orchide, and Novabell, Sophisticated Italian Tiles; Grohe and Kohler for bathroom and plumbing solutions; Franke, convenient kitchen solutions; and Rubi, a partner when it comes to tile-cutting necessities; and among many other brands, are made accessible in the new Wilcon Depot-Villamonte, Bacolod.

Start building big ideas with Wilcon Depot and shop daily at its newest store from 8:00 a.m. to 7:00 p.m. Visit Wilcon Depot Villamonte, Bacolod, located at Lot 3-A, NGC Circumferential Road, Brgy. Villamonte, Bacolod City, Negros Occidental. Valued customers can also shop online at Wilcon by visiting shop.wilcon.com.ph/.

 


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CLI still working on track record for REIT — CFO

CEBU Landmasters, Inc. (CLI) may enter the real estate investment trust (REIT) market within the next two to three years, the company’s chief finance officer (CFO) said.

“The timeline we’re looking at (is) probably the next two to three years,” CLI CFO Beauregard Grant L. Cheng said during the company’s annual stockholders meeting on Tuesday.

“The reason for this is because you need to establish a proper track record. You need to establish an operating history because a REIT is a recurring income play,” he added.

“We’ve been very transparent and open about our intentions to use the REIT vehicle to recycle capital back to CLI,” he also said.

CLI will integrate its various hospitality assets, as well as commercial and retail spaces, into the REIT.

“Because we are at an inflection point where the majority of these capital investments are starting to show operations from late last year, this year, and next year, this will be a crucial time when we essentially prove to ourselves in the market that we can deliver these steady reliable recurring income streams,” Mr. Cheng said.

“In order to deliver maximum shareholder value to CLI as the parent who will sponsor the REIT, we want to make sure that the assets that we will infuse into the REIT will have that operating track record in order to maximize the value from the market,” he added.

Meanwhile, CLI Chairman and Chief Executive Officer Jose R. Soberano III said the company is working to strengthen its presence in the high-end residential market led by the 38 Park Avenue residential condominium project in Cebu IT Park.

 The company aims to launch a high-end residential development beside the 38 Park Avenue development this year or early next year.

It is also eyeing to launch its Pristina North development by the third quarter.

The company has earmarked P27.65 billion in 2024 for pipeline projects in areas such as Butuan, General Santos City, and its maiden project in Luzon.

On Tuesday, CLI shares fell by 6.03% or 17 centavos to P2.65 each. — Revin Mikhael D. Ochave

AllDay Marts, Inc. to hold virtual Annual Stockholders’ Meeting on July 1

 

 


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Arts and Culture (06/05/24)


Chino Yulo holds solo show at IMAHICA Gallery

THE 5th SOLO exhibition of Chino Yulo, titled “Be Water,” will be held at the Imahica Art Gallery from June 9 to 23. In it, Mr. Yulo showcases water’s physical properties and aesthetics and delves into the more profound philosophical message of the “be like water” ethos. His art encourages viewers to find strength in flexibility, beauty in adaptability, and harmony in life’s inevitable changes. The opening reception will be on June 9, 4 p.m., at Imahica Art Gallery, 2A Lee Gardens, Shaw Blvd., Mandaluyong.


Roldan, Enriquez in Silverlens conversations

PEOPLE around the world can now have an educational glimpse into Silverlens New York’s ongoing exhibits. In a video available on the Silverlens website, Norberto Roldan discusses his solo exhibition, “How Not to Win a Revolution,” from the socio-cultural and historical contexts that guided his textile assemblages, to its intertwining Christian symbols, folk religious rituals, secondhand fabric, and liturgical vestments. Meanwhile, Filipino American artist Keka Enriquez discusses her highly anticipated return to the art world after a 20-year hiatus in her ongoing solo exhibitionOdds and Ends.” She narrates her artistic journey, from her past works in which she experimented with materials like lard and plaster casts, to her current paintings showcasing an evolved style. Both exhibits are on view at Silverlens New York until June 15.


BenCab talk with Ambeth Ocampo at The Pen

AT THE Conservatory of The Peninsula Manila on June 23, the hotel hosts “Art in Resonance TALKS: BenCab in Conversation with Ambeth Ocampo.” An eminent historian, popular newspaper columnist, and friend of the artist, Mr. Ocampo will join National Artist Benedicto “BenCab” Cabrera to discuss his search for a Filipino identity and the social and cultural context behind his work. Seats to the talk are priced at P3,888, inclusive of a BenCab Art in Resonance Afternoon Tea Buffet at The Upper Lobby. The talk will start at 3 p.m., followed by the afternoon tea buffet at 4 p.m. Pre-registration and pre-payment are required.


Aliwan Fiesta returns to the CCP Complex this year

THE FESTIVAL of Filipino festivals, Aliwan Fiesta, is making its return to the Cultural Center of the Philippines  (CCP) Complex in Pasay City from June 27 to 29. Led by the MBC Media Group, the festival will bring together communities from different regions of the Philippines to showcase their vibrant festivals and share them with the public outside their locales. The fiesta kicks off on June 27 with the Tugtog ng Aliwan Competition at 5 p.m., followed by the Pasakalye Concert at 7 p.m. The concert will feature a star-studded line-up of Filipino artists. On June 28, the Reyna ng Aliwan pageant will feature beauty queens from across the Philippines. On June 29, 5 p.m., the Grand Parade will showcase the Streetdance and Float Competitions, starting at the intersection of Jalandoni St. and V. Sotto St. and culminating in front of the Aliw Theater. The best of the best dance groups and floats will be announced in an award ceremony at 9 p.m.


9 Works Theatrical to stage Once on This Island

UPON closing its production of Rent, 9 Works Theatrical has announced that it is set to stage the Broadway musical Once on This Island in September. The Broadway musical, with a book and lyrics by Lynn Ahrens and music by Stephen Flaherty, was first staged in 1990. The musical is set in the French Antilles in the Caribbean and tells the story of Ti Moune, a peasant girl who falls in love with Daniel, a wealthy boy from the other side of the island, and how the gods of the island react to this development. The upcoming 9 Works Theatrical production will be directed by the company’s Artistic Director, Robbie Guevara.


FEU restores its heritage sites

THE FAR Eastern University (FEU) is preserving Filipino cultural heritage and memory with the meticulous restoration of its Administration Building, a 75-year-old Art Deco structure designed by National Artist Pablo Antonio, Sr. A total of P1.2 million was allocated for the restoration project, with a focus on jet grouting to maintain the structural integrity of the heritage building. The Administration Building is one of FEU’s most lauded buildings, which recently granted the distinction of National Cultural Treasure by the National Commission for Culture and the Arts.


VLF writing fellowship names 8 writers

THE VIRGIN Labfest (VLF) Writing Fellowship Program has announced the eight fellows who will be joining the two-week training workshop slated on June 18 to 30. The budding playwrights are: Andrei Michaela Corre, Lance Romulus Dayrit, Jeremi Flores, Ivan Jon Gentolizo, Chris Joseph Junio, Roel Rocky Pepito, Athina Melinette Tirones, and Philomena Yap. Award-winning playwright Glenn Mas will once again guide the fellows in their dramatic writing journey. For two weeks, the participants will learn the fundamentals of playwriting, as well as the different aspects of theater production. They will have opportunities to interact and converse with the featured playwrights of this year’s VLF 19: Pintog, and industry leaders. The fellowship program will culminate with Fellowship Showcase, to be directed by the artistic director of the Cultural Center of the Philippines (CCP) Dennis N. Marasigan, on June 30, 5 p.m., at the Bulwagang Roberto Chabet, 3/F Tanghalang Ignacio Gimenez, CCP Complex. The showcase will feature staged readings of the writing fellows’ final outputs.

PHL insurance premiums to grow to €16.7B by 2034, Allianz says

ALLIANZ expects insurance premiums in the Philippines to expand to €16.7 billion by 2034, with a compounded annual growth rate (CAGR) of 8.1% over the next 10 years, it said in a report.

The expected CAGR for the next 10 years is faster than the 7.2% year-on-year expansion seen in 2023 to €7.1 billion in premiums, the Allianz 2024 Global Insurance Report released last month showed.

“For the next decade, we expect the Philippine market to continue its robust development,” it said.

The report showed the expected CAGR of Philippine premiums over the next 10 years will outpace Asia ex-Japan’s 7.5% (to €2.816 trillion by 2034), China’s 7.7% (€1.472 trillion), and the 5.5% forecasted globally (€11.173 trillion), although the local market’s size will remain small in comparison.

Allianz’s Philippine bancassurance arm Allianz PNB Life said in a statement on Tuesday that the country’s population growth and young demographic presents long-term growth opportunities.

Allianz PNB Life President and Chief Executive Officer Joseph Gross said the Philippine insurance market’s performance in 2023 was driven by increased penetration, product customization, digital transformation, and improved financial literacy.

“Our performance aligns with these trends, showcasing our commitment to advancing the insurance landscape. Since our founding, we have released more than P1.8 billion worth of life-saving claims and continue to protect customers,” Mr. Gross said. “Our continued growth is anchored on our commitment to value creation across key aspects of the business: customers, distribution partners, and stakeholders.”

“We will pursue progress by achieving topline-to-customer value growth driven by regular pay protection, health, and long-term savings, streamlined offerings that are simpler, differentiated propositions, digital by default in service and policy management combined with human touch to sales and customers, and best-in-class sales performance, quality and productivity of our distribution network,” he added.

Allianz PNB Life said its premium income stood at P26.11 billion in 2023, while its net income was at P609.3 million, up 28% year on year.

It added that it placed seventh in the industry in terms of annualized net premiums at P1.1 billion.

The insurer ended 2023 with 1,684 sales agents servicing 169,001 customers in 17 business centers nationwide, it said.

The company focused on enhancing its core systems in 2023, allowing it to improve customer experience and operational efficiency through improved digital tools and platforms.

Allianz PNB Life Chief Distribution Christopher A. Cabognazon said the company is expanding by “accelerating transformation and value creation, maximizing channel growth, and driving the growth of our customer base through expansion and professionalization of our distribution network” to serve more market segments. — AMCS

Church’s teachings on sustainable mining

FREEPIK

(Part 1)

On April 26, I participated in the Palawan Stakeholders’ Congress on Mining and the Environment (PSC-ME) held in Puerto Princesa. Among the more than 100 participants were provincial officials and heads of LGUs, top officials from the Department of the Environment and Natural Resources (DENR) and Mines and Geosciences Bureau, executives from some of the nine existing mining operators in the Province of Palawan, members of the aca-deme, heads of NGOs, representatives from the indigenous tribes, people from media, and high officials of the Catholic Church in the Province such as Bishop Broderick Pabillo of the Apostolic Vicarate of Taytay and Bishop Socrates Mesiona of the Apostolic Vicarate of Puerto Princesa who were joined by some members of both the secular and religious clergy. After hearing some of the representatives from the NGOs committed to protecting the physical environment proclaim that “sustainable mining is an oxymoron,” a contradiction in terms, I was not surprised that at the end of the three-day Congress, more than 90% of the participants voted for a moratorium on the issuance of new permits for new mining operations in the province.

Fortunately, the Secretary of the DENR, Maria Antonia Yulo-Loyzaga, has often publicly stated that she believes in sustainable mining and that the mining industry is vital to generating economic growth and employment for the Philippine economy. She is, however, also very clear in her statements that mining firms must strictly adhere to regulations and practices that protect the physical environment. In the same Palawan Stakeholders Congress, I myself was very clear about the significant role that the mining industry plays not only in the Philippine setting but in the global economy. No one would question that the mineral mining industry is a primary sector providing the raw materials needed by numerous industries, especially those that are part of the so-called Industrial Revolution 4.0 (Artificial Intelligence, Internet of Thing, Robotization, and Data Science). It is difficult to imagine economies running without such raw and processed mineral ores as copper, nickel, and iron. They are essential for infrastructure development, transportation systems, electrical grids, and various consumer and industrial goods. In fact, the ongoing solutions to the problem of climate change, such as solar, wind, and geothermal energy, would be impossible to implement without nickel and copper. Neither could electrical vehicles be manufactured without such mineral ores.

By its sheer size in terms of investments in exploration, feasibility studies, construction, and development, to operations and closure, mining can contribute substantially to the economy, stimulate economic activities through key industry linkages, create job opportunities, generate fiscal revenues for the government, and provide livelihood opportunities to local communities (including indigenous tribes) and to micro-small scale and medium enterprises. Mining attracts massive amounts of capital to fund pre-exploration, exploration, and development activities, to jump start mining operations, and to generate sustained export revenues.

Especially in the context of Philippine industrial realities, there is little hope for manufactured exports to provide a substantial foreign exchange earnings for the Philippines in the medium term, except for the semiconductor and electronic components sector. It will take at least the next five years for us to introduce the necessary reforms in the agribusiness sector for the Philippines to export large amounts of high-value food products, such as those being exported by Thailand and Vietnam. We have no choice but to rely heavily on the exports of mineral products as a complement to the earnings from the Overseas Filipino Worker remittances and service exports such as those coming from the Information Technology and Business Process Management sector and from tourism. After all, mining belongs to the same sector called “industry” together with manufacturing, construction, and public utilities. To develop mining as much “industrializing” an economy as manufacturing does.

The problem, though, is that mining as an extractive industry has a direct impact on the physical environment that is already seriously challenged by natural disasters such as floods, earthquakes, and volcanic eruptions. Mining can reshape the natural landscape, displace communities, and emit industry-specific effluents and pollutants. Understandably, there is a growing militancy of responsible investors, downstream industries, civil society, and governments clamoring for stricter, unique and demanding standards and requirements.

Environmental, social, and governance principles must be adhered to and translated into practices for mining companies to gain societal, legal, moral, and environmental acceptance. In this regard, we see a trend for Catholic bishops and priests to be increasingly vocal about the moral and ethical principles that must be followed in striking a balance between economic development and environmental stewardship, ensuring the protection of natural resources while minimizing environmental degradation and social disruptions. It must be categorically stated that Bishops, priests, and other Church officials who express their views about the negative effects of mining are not violating the principle of the separation of Church and State. They are just exercising their right to give spiritual and moral guidance to their flock about the moral obligations of human beings to respect the creatures, both animate and inanimate, that have come from the hands of the God, the Creator of all things.

Unfortunately, a recent event tends to confirm the wisdom of the majority opinion expressed by the mining stakeholders of Palawan. On May 11, there was another mining disaster in Surigao del Norte. The tailings storage facility of the Siana Gold mine, operated by Greenstone Resources Corp. (GRC), collapsed, burying houses in the mining village of Siana, Mainit. Although no one died among the 55 families who fled to safety, this disaster reminded the public of the “mother of all mining disasters” in the Philippines: that of Marcopper and Placer Dome in the island of Marinduque. As reported by Science expert Segundo Eclar Romero in his column in a leading Philippine daily, “from 1975 to 1991, mil-lions of tons of mine tailings leaked into Calancan Bay, contaminating the marine ecosystem and impacting fishing communities. In 1996, a drainage tunnel collapse released 1.6 million cubic meters of toxic tailings into the Boac River, flood-ing downstream areas, destroying crops, and severely polluting the river system.”

Given this mining disaster and many others, some of which could have been prevented by more responsible practices, it becomes the duty of those who give moral and spiritual guidance to their flock to give the necessary guide-lines for action. Since 1891, the Popes of the Catholic Church have been issuing what are known as social encyclicals to give the Catholic faithful, both the clergy and laity, “principles for reflection, criteria for judgment and guidelines for action” concerning what is necessary to promote the common good of society. Here, the common good is defined, not as the greatest good for the greatest number, but as a social or juridical order that promotes the good of every single individual — politically, economically, socially, morally, and spiritually. This is how the “common good” is defined in the Philippine Constitution of 1987.

In the Palawan Mining Stakeholders Congress, the Most Rev. Socrates C. Mestona, MSP, D.D. gave the most comprehensive presentation of what the Teaching Authority of the Church has to say about the duty of everyone to take care of our common home, the physical environment in which we live. He first explained the basic principle of the spirituality of stewardship which is fundamentally anchored on the belief based on revelation that God is the creator of heaven and earth. It means that “nothing exists that does not owe its existence to Him. As such, everything belongs to the Creator. However, in His goodness and generosity, God entrusts His creation to human beings to care and cultivate responsibly. He gives them dominion to be productive, multiply, and replenish the earth so that they can also enjoy its fruits which He destined to be shared fairly, not only for the past and present but for the future generation of humanity as well.”

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

Makati Business Club backs Meralco franchise renewal

BW FILE PHOTO

THE Makati Business Club (MBC) on Tuesday said it supports the renewal of Manila Electric Co.’s (Meralco) franchise, but recognizes “the need for targeted adjustments where necessary.”

In a statement, the MBC said that Meralco’s network plays “a pivotal role in ensuring reliable and accessible electricity for households and businesses in the country’s key economic regions.”

“We acknowledge concerns about electricity prices in the country, which are comparatively high among ASEAN nations. However, it is important to note that the Philippines boasts a liberalized energy market, devoid of government subsidies,” the business group said.

Citing a report by the International Energy Consultants 2, the group said that Meralco’s  distribution rates remain fair and reasonable even amid prevailing inflation rates.

MBC said that the renewal of Meralco’s franchise is in line with the government objectives of enhancing energy security, resilience, and sustainability.

“Meralco has demonstrated its commitment to promoting renewable energy and has implemented programs to assist customers in transitioning to cleaner power sources,” the MBC noted.

“We therefore endorse the renewal of Meralco’s energy franchise, while also recognizing the need for targeted adjustments where necessary,” it added.

Meralco is the main power distributor for Metro Manila and nearby areas covering 39 cities and 72 municipalities.

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

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

Miguelitos eyes overseas franchise for ice cream, sees strong demand

FILIPINO ice cream maker Miguelitos International Corp. is set to launch franchises in New Zealand and Dubai as it expects strong international demand, according to its top official.

The company will open outlets in Auckland and Dubai, Miguelito’s President Michelle A. Aman told BusinessWorld in a video interview. “We got a master franchise in Dubai because we put an exhibit there for export and they saw that our business model is good.”

Miguelito’s, which also makes instant food premixes, is set to open 30 outlets for its soft serve ice cream in Dubai. Their halal ice cream is now making waves in Zamboanga and they expect it to do well in the Middle East.

It recently partnered with New West Zone supermarket and department store, where its ice cream brand is sold.

Miguelitos opened a branch at the Maputo Shopping Centre in Mozambique in February.

“We were surprised because there were no Filipinos there,” Ms. Aman said, adding that the business has generated one of their highest sales at P100,000 a day. “All the locals are our customers.”

Miguelitos has 600 stores nationwide, with 480 franchisees inside malls, supermarkets and colleges. Aside from Mozambique, it also has ice cream outlets in Australia.

Among its best-selling ice cream flavors are hyped mango, avocado locco, crunchies and rolled ice cream.

Ms. Aman said their edge over competitors lies in the fact that their ice cream has 80% less sugar. They also sell vegan flavors.

Franchisees must shell out P500,000 to P1.7 million because malls have their own standards and varying location sizes.

The package includes location assistance, after-sales support, initial stocks and kiosks, machines, equipment and small wares.

“We also hire service crews for them and [provide] the inventory system. The business is plug and play,” she added.

The Philippine franchise sector is expected to grow by 10% to P34 billion in revenue this year from a year earlier, Philippine Franchise Association (PFA) President Chris Lim said in April, when more than 700 brands including Miguelitos and 100 foreign brands participated in Franchise Asia Philippines 2024.

PFA also expects the number of franchise outlets to grow by 8% to 216,000 this year.

Miguelitos started in 2002, when Ms. Aman and her husband Marlon bought a P250,000 single-nozzle ice cream machine in Mega Mall. The ice cream became a hit at their former store in Paco, Manila.

She said tricycle, jeepney, pedicab and motorbike drivers were their main customers back then. “They stopped before going home to buy from us.”

They sold 1,000 to 1,500 ice cream cones daily for P5 each.

Miguelitos later moved to the food court of an Ayala-owned mall near the capital.

“Our ice cream retail became more successful because the presentation was good,” Ms. Aman said. “We now had our own cart, unlike when we were just selling ice cream on a sidewalk.”

Miguelitos drew the attention of their first franchisee, who brought the ice cream brand to Cebu.

As demand rose, Ms. Aman said they had to rent a 2,500-square meter warehouse in Parañaque because their branch in Harrison Plaza in Manila was getting crowded.

Then the coronavirus pandemic happened. Miguelitos’ business was affected as malls were shuttered amid a nationwide lockdown.

Ms. Aman said some of their franchisees closed shop. “After the pandemic, Miguelitos bounced back starting in the last quarter of 2023.”

The challenges did not stop as the world learned to live with the pandemic.

Miguelitos has had to deal with rising raw material prices such as cocoa, which it uses in its ice cream, as well as exchange rate fluctuations.

Cocoa prices rose by about 60% and the company had to absorb the cost and spare its franchisees at the beginning, Ms. Aman said.

Miguelitos is now seeking to build air-conditioned outdoor spaces similar to the ones used by take-out coffee shops and burger chains.

After 22 years in the market, Miguelitos now assembles its ice cream machine and produces its premix powders in its warehouse. — Aubrey Rose A. Inosante

BPI launches cancer treatment loans

A view of a bank building in Manila, July 1, 2014. — REUTERS/ROMEO RANOCO

BANK of the Philippine Islands (BPI) has launched a loan product specifically for cancer treatment called LavLoans, it said on Monday.

“We want to provide specialized financing solutions to ease the financial challenges associated with cancer treatment. This program offers a lifeline to those in need,” BPI Retail Lending and Bancassurance Group Head Dexter Lloyd C. Cuajotor said at an event.

“While it is named after lavender, this color is associated with cancer awareness, symbolizing universal support for individuals affected by any form of cancer. The resemblance of love represents care, support, and solidarity we aim to offer to all types of cancer patients. And that’s exactly what this is all about… LavLoans is a specialized financing service designed to assist cancer patients and their families in managing financial burden associated with a cancer treatment,” he added.

BPI LavLoans is available through three financing solutions.

First, personal loans are multi-purpose cash loans for customers who need immediate access to additional funds without the need for collateral. Clients can borrow up to P500,000 with flexible payment terms of up to 24 months.

Meanwhile, the auto multi-purpose loan financing mode is for those who need to stretch their payments for lower monthly amortizations. Borrowers can use their car as collateral and pay for medical expenses for up to 60 months.

Lastly, the property equity loan is for those who need more funds for their treatment. It has a maximum loan amount of up to P2 million and lets borrowers use their existing real estate property as collateral to borrow up to 70% of the appraised value of their property. They may also stretch their payments for lower monthly installments of up to 60 months.

“The rate that we’ll offer is 100 basis points lower than the published rate for both auto and housing and then also for personal loans,” Mr. Cuajotor said.

PHYGITAL BRANCHES
Meanwhile, BPI Head of Consumer Banking and Executive Vice-President Maria Cristina “Ginbee” L. Go on Monday said the bank is aiming to transform 83 of its branches to be phygital or physical and digital branches this year and has a long-term goal of making all its branches phygital.

This comes as the bank reopened its flagship Dela Rosa, Makati branch as a phygital branch.

Phygital branches focus less on transactions and more on advising with added digital capabilities, Ms. Go said.

BPI saw its net income grow by 25.8% to P15.3 billion in the first quarter as higher revenues offset increases in provisions and expenses.

Its shares went down by P1 or 0.83% to end at P120 apiece on Tuesday. — AMCS

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