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UK home sales on course to fall to lowest since 2012: Zoopla

REUTERS

LONDON — The number of house purchases in Britain this year is on course to drop by 21% to its lowest since 2012 as a result of rising borrowing costs, property website Zoopla forecast on Wednesday.

Zoopla forecast there would be 1.0 million residential housing sales this year, down from 1.26 million last year and a 14-year high of 1.48 million in 2021, when ultra-low interest rates and pandemic tax incentives boosted demand.

“While UK house prices are 0.1% higher over the year, it is the number of sales that have been hit hardest by higher borrowing costs, especially amongst mortgage-reliant buyers,” Zoopla’s executive director, Richard Donnell, said.

Zoopla forecast that house purchases funded by mortgages would drop 28% this year, while cash buyers would fall just 1% and account for more than a third of sales.

The most recent official data showed that there were 22% fewer house purchases in the three months to the end of June than a year earlier.

Average house prices in May were down 2% from their peak last September, but were still more than 20% higher than before the start of the COVID-19 pandemic, when cheap finance and demand for more spacious homes drove a surge in prices in many Western countries.

Since December 2021, the BoE has raised interest rates 14 times to 5.25% – their highest since 2008 – from 0.1% in a bid to tackle rampant inflation, and markets expect two further rate rises to 5.75% this year.

The BoE is due to release July mortgage lending data at 0830 GMT.

Zoopla provides property valuations and also advertises more than 1 million properties for sale or to rent. — Reuters

X will allow political ads from candidates, parties ahead of US election

ELON MUSK — REUTERS

X, the social media company formerly known as Twitter, said Tuesday it would now allow political advertising in the U.S. from candidates and political parties and expand its safety and elections team ahead of the 2024 presidential election.

Before billionaire Elon Musk acquired the company in October, Twitter had banned all political ads globally since 2019. 

In January, Twitter lifted the ban and began allowing “cause-based ads” in the U.S. that raise awareness of issues such as voter registration, and said it planned to expand the types of political ads it would allow on the platform.

The move to allow all political ads in the U.S. could help X grow its revenue at a time when many advertisers have fled or reduced spending on the platform for fear of appearing next to inappropriate content.

In a blog post on Tuesday, X said it would grow its teams to combat content manipulation and “emerging threats”.

The company said it would create a global advertising transparency center, which would let users see what political ads were being promoted on X, and added it would continue to prohibit political ads that spread false information or seek to undermine public confidence in an election.

The platform, like other social media companies, has long been criticized by researchers and lawmakers for not doing enough to prevent misleading or false content during major elections.

Since Musk’s acquisition, X in particular has faced questions about its readiness for the U.S. presidential election after laying off thousands of employees, including those who had worked on the trust and safety team. — Reuters

Unilever beats shareholder case over Ben & Jerry’s Israel boycott

REUTERS

A Manhattan federal judge dismissed a lawsuit against Unilever Plc on Tuesday that claimed the company misled United States investors by not immediately disclosing a decision by its Ben & Jerry’s unit to stop selling ice cream in Israeli-occupied Palestinian territories.

A Michigan pension fund sued in June 2022, seeking damages for a drop in Unilever shares after Ben & Jerry’s announced in July 2021 it would stop sales in the Israeli-occupied West Bank and parts of East Jerusalem.

U.S. District Judge Lorna Schofield ruled on Tuesday that Unilever was not required to disclose the boycott when Ben & Jerry’s board decided on it in 2020 because Unilever had ultimate control over whether to implement it.

While Ben & Jerry’s board oversees its social mission, Unilever retained authority over financial and operational decisions when it bought the ice cream company in 2000.

Schofield said the delay in announcing the board’s resolution was likely “to determine what, if anything, to do about it.”

An attorney representing the pension fund for fire and police in the Michigan community of St. Clair Shores and a Unilever spokesperson did not immediately respond to requests for comment.

The pension fund had sought damages for those who held Unilever American depositary receipts in July 2021, when they fell after several U.S. states reviewed their relationships with the British consumer goods company and some Jewish groups accused Ben & Jerry’s of antisemitism.

Founded in 1978, Ben & Jerry’s has long positioned itself as socially conscious. It said in July 2021 that selling ice cream in the occupied Palestinian territories was “inconsistent with our values.”

Most countries consider Israeli settlements in those territories illegal, which Israel disputes. In 2022, Unilever sold its interest in Ben & Jerry’s operations in Israel.

The Vermont-based ice cream maker sued to block the sale. The companies settled the dispute in December.

The case is City of St. Clair Shores Police and Fire Retirement System v. Unilever Plc et al, U.S. District Court, Southern District of New York, No. 22-05011. — Reuters

Rules for Maharlika fund released

President Ferdinand R. Marcos, Jr. in July signed into law Republic Act No. 11954, which created the Philippines’ first sovereign wealth fund. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES took a step closer to starting the operations of its first sovereign wealth fund with the release of the implementing rules and regulations (IRR) for the Maharlika Investment Fund (MIF).

“The MIF will serve as a crucial financing mechanism to widen fiscal space, ease the burden on local funds, and reduce reliance on official development assistance (ODA) in funding big-ticket projects such as those specified in the recently approved Infrastructure Flagship Project (IFP) list,” Finance Secretary Benjamin E. Diokno said in a statement.

In July, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 11954, which created the Philippines’ first sovereign wealth fund. The IRR, which was published in the Official Gazette on Monday, will take effect on Sept. 12. A copy of the IRR was not yet available on the Official Gazette website as of press time.

“The MIF Act’s IRR is faithful to the law to ensure that the prescribed procedures and guidelines will lead to its harmonized application,” National Treasurer Rosalia V. de Leon said.

Ms. De Leon said the Bureau of the Treasury (BTr), Development Bank of the Philippines (DBP), and Land Bank of the Philippines (LANDBANK) worked to ensure the IRR is consistent with the MIF Act.

The fund will be managed by the Maharlika Investment Corp. (MIC), which will have an authorized capital stock of P500 billion ($8.9 billion).

Under the law, the MIC’s initial P125-billion funding will come from the National Government (P50 billion), LANDBANK (P50 billion) and DBP (P25 billion).

The National Government will source its P50-billion contribution from 100% of the dividends of the Bangko Sentral ng Pilipinas (BSP) for the first two years, and the 10% share from Philippine Amusement and Gaming Corp.’s income for five years. It will also source its contribution to the fund from a 10% share of revenues from gaming operations of other government-owned gaming operators and regulators; proceeds from the privatization of government assets; and other sources such as royalties and/or special assessments for a period of five years.

“Other government financial institutions and government-owned and -controlled corporations may invest in the MIF as well… However, those providing social security and public health insurance services are absolutely prohibited from investing in the MIF,” the Department of Finance (DoF) said.

INVESTMENTS
According to the DoF, the IRR states that the MIC is authorized to “invest in a wide range of products, activities and projects, to wit: cash and other tradable commodities; fixed-income instruments issued by sovereigns; domestic and foreign corporate bonds; listed or unlisted equities; and Islamic investments, such as Sukuk bonds, among others.”

The MIC may also issue bonds, debentures, and securities, but these will not be guaranteed by the Philippine government.

“We will pursue public road networks, tollways, railways, green energy, water resources, agro-industrial ventures, and telecommunications. These critical areas offer high rates of return and significant socioeconomic impact,” Mr. Diokno said.

He said that the fund can also be used for “green and blue projects, countryside development, environment, social, and governance and cutting-edge technologies.”

Meanwhile, Mr. Diokno said the “search is on” for the president and chief executive officer (CEO) of the MIC, as well as other board members.

The MIC board will be composed of the Finance secretary as ex-officio chair, the MIC president and CEO as the vice chair, LANDBANK president and CEO, DBP president and CEO, two regular directors and three independent directors. The board members’ qualifications are “explicitly set out” in the IRR, the DoF said.

“The success of the implementation of the MIF hinges on selection of the best people to oversee and manage the Fund and strict compliance with the provisions of the law. This is why we made sure to include all possible safeguards in the IRR, ensuring that all our bases are covered,” Mr. Diokno said.

The MIC will also be guided by an advisory body composed of secretaries of the Department of Budget and Management, the National Economic and Development Authority, and the national treasurer.

“The advisory body met for the first time in Tokyo, Japan where they attended the public-private partnerships (PPP) and MIF session. The session was held in the JICA headquarters. It serves as an avenue to brief Japanese trading houses, financial institutions, Japanese government agencies, multilateral institutions, and the private sector on their possible involvement in PPP projects in the Philippines and the MIF,” Mr. Diokno said.

The DoF also said that the IRR contains the list of penalties “to ensure the integrity of the Fund.”

Penalties range from P1 million to P15 million and imprisonment of six to 20 years for offenses such as “willfully holding office while in possession of any disqualification; knowingly certifying the corporation’s financial statements despite its gross incompleteness or inaccuracy; willingly allowing oneself to be used for fraud; and failure to sanction, report, or file appropriate action for graft and corrupt practices.” — Luisa Maria Jacinta C. Jocson

Philippines, JICA sign ¥30-billion loan deal

The Philippine government and the Japan International Cooperation Agency (JICA) signed the ¥30-billion post-disaster standby loan Phase 3 in Tokyo, Japan. — REUTERS

THE PHILIPPINES and the Japan International Cooperation Agency (JICA) signed a ¥30-billion (around P11.6-billion) loan agreement to strengthen the country’s disaster resilience.

“The loan seeks to support swift recovery after natural disasters by promoting policy actions on Disaster Risk Reduction and Management (DRRM) and strengthening disaster preparedness by providing quick-disbursing budget support,” the Department of Finance (DoF) said in a statement on Tuesday.

Finance Secretary Benjamin E. Diokno and JICA Senior Vice-President Nakazawa Keiichiro signed the loan agreement on Monday in Tokyo, Japan.

The agreement covers the third phase of the post-disaster standby loan (PDSL), which would provide funds to ensure that recovery and reconstruction will be accelerated.

“JICA continues to support the Philippines in its disaster risk reduction and management efforts, and the PDSL will help boost resilience in times of disasters. We are living in the same disaster-prone countries, and we can support each other as close partners,” JICA Chief Representative Sakamoto Takema said in a separate statement.

JICA said the latest loan will also contribute to the Philippines’ efforts towards achieving sustainable development goals (SDGs), such as Goal 9 – Industry, Innovation and Infrastructure, Goal 11 – Sustainable Cities and Communities, and Goal 13 – Climate Action.

The Philippines received ¥50 billion under the first phase of the post-disaster loan to support the rehabilitation of areas affected by Typhoon Yolanda in 2013.

It also received ¥50 billion from JICA under the second phase of the loan to manage the country’s recovery from the pandemic in 2020.

According to JICA, the Philippines is the biggest recipient of the agency’s programs in Southeast Asia worth ¥418 billion in 2022.

JICA is currently supporting 28 ongoing loans in the Philippines.

Mr. Diokno said the Philippines will continue to secure concessional terms and conditions through JICA’s Special Terms for Economic Partnership.

“We are grateful for Prime Minister Fumio Kishida’s commitment to support the Philippines’ pursuit of the upper middle-income country status through impactful ODA and private sector investments,” said Mr. Diokno, who was part of the Philippine delegation that paid a courtesy visit to Mr. Kishida in Tokyo.

The Finance chief said both countries discussed available financing options once the Philippines achieves upper middle-income country status by 2025.

“These include new frameworks such as the ‘private capital mobilization-type’ grant that attracts investment and the ‘offer-type’ that proposes a menu of cooperation that takes advantage of Japan’s strengths,” the DoF said.

Based on the latest World Bank income classification, the Philippines is currently a lower middle-income economy, with gross national income (GNI) per capita of $3,950 in 2022.

Lower middle-income countries have a GNI per capita of $1,136-$4,465. The bracket for upper middle-income economies is set at $4,466-$13,845.

Mr. Diokno and other members of the Philippine cabinet were in Japan on Monday for the 14th Philippines-Japan High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation. — Luisa Maria Jacinta C. Jocson

PHL economic growth seen to further slow

PHILIPPINE STAR/WALTER BOLLOZOS

PHILIPPINE ECONOMIC GROWTH is likely to further slow this year and in 2024, amid “strong” external headwinds and the end of “revenge spending,” GlobalSource Partners said in a report.

GlobalSource said it cut its Philippine gross domestic product (GDP) forecast to 5.2% for this year from 5.5% previously. It also slashed its GDP forecast for 2024 to 5% from 5.8% previously.

Both projections are below the government’s 6-7% target this year and the 6.5-8% goal in 2024.

“Economic growth is slackening. On one hand, multiple headwinds continue to buffet the economy — from weak external growth and tight global financial conditions to volatile commodity prices and high local inflation,” GlobalSource analysts Romeo L. Bernardo and Maria Christine Tang said in a report dated Aug. 28.

“On the other hand, the tailwind from post-pandemic revenge spending is losing force and, here as elsewhere, the expected swift recovery of Chinese tourism is not happening,” it added.

The Philippine economy expanded by a weaker-than-expected 4.3% in the second quarter, its slowest growth in over two years.

For the first half, GDP growth averaged 5.3%. The economy would have to grow by 6.6% in the second half to hit the government’s target.

GlobalSource said the Philippine economy will continue to face “strong” headwinds going into 2024, amid a slowdown in major trading partners, relatively tight financial conditions and fiscal constraints

“Although we expect monetary easing to start next year, the absence of new growth drivers beyond remittances and service exports compels a significant reduction in our (2024) GDP growth forecast from 5.8% to 5%,” GlobalSource said.

An economic rebound will depend on the government’s ability to implement its catch-up plan for spending. The weak second-quarter growth was partly blamed on the 7.1% contraction in government spending.

“We think that under the supervision of economic managers, spending will improve, although not fully and perhaps with potential costs to spending quality,” it added.

Other risks to the Philippine outlook include a potential recession in the US, a sudden spike in inflation due to food supply issues, geopolitical tensions and other shocks, GlobalSource said.

It kept its inflation forecast for this year at 5.5%, while lowering the 2024 projection to 3.3% from 3.5% previously.

Inflation averaged 6.8% in the first seven months of the year, still above the central bank’s revised 5.6% full-year forecast.

GlobalSource expects the Bangko Sentral ng Pilipinas (BSP) to start cutting rates next year, “possibly leading to more upbeat sentiment.”

The BSP earlier this month extended its policy pause for a third straight meeting, keeping its benchmark interest rate at a near 16-year high of 6.25%.

“The odds of a rate hike will be higher if the sharp currency depreciation comes alongside higher-than-expected headline inflation, reflecting currently high crude oil prices and exacerbated by spikes in prices of key food items, notably rice, and higher-than-expected wage increases,” it said.

However, GlobalSource said the current rate pause is likely to extend through the end of 2023. It noted the BSP is awaiting more definite signals from the US Federal Reserve that it is ending its tightening cycle and beginning its rate cuts.

“Ahead of any Fed cut, the BSP may also consider another cut in banks’ reserve requirement ratio (RRR) if the inflation outlook turns benign. BSP Governor Eli M. Remolona reportedly said that he would like to see the RRR eventually fall to 5% from the current 9.5%,” it added.

In June, the BSP cut the RRR for big banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 9.5%.

It also reduced the ratio for digital banks by 200 bps to 6% and by 100 bps for thrift banks, and rural and cooperative banks to 2% and 1%, respectively. — Luisa Maria Jacinta C. Jocson

BIR surpasses July collection target by 5%

The Bureau of Internal Revenue collects about 70% of government revenues every year. — PHILIPPINE STAR/EDD GUMBAN

THE BUREAU of Internal Revenue (BIR) exceeded its collection target in July, as the agency ramped up its efforts against buyers and sellers of fake receipts.

The BIR collected P273.13 billion in July, surpassing its P259.91-billion collection target by 5.09%.

This was also 38.37% or P75.73 billion higher than its collection in July 2022.

For the first seven months, the BIR’s gross collections jumped by 12.21% to P1.49 trillion (net of tax refund).

“With the intensification of the Bureau’s tax enforcement activities, specifically on the campaign against sellers and buyers of fake receipts, and with our newly forged partnership with multi-sectoral groups for the enhancement of taxpayers’ service, we are confident that the BIR can attain, if not surpass, its annual collection target this year,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement.

The BIR is targeting to collect P2.64 trillion this year, which is 13% higher than the actual collection of P2.34 trillion in 2022.

Broken down, the agency is targeting to collect P1.32 trillion from taxes on net income and profits. It also aims to collect P538.13 billion from value-added tax, P336.1 billion from excise taxes, P124.65 billion from percentage taxes, and P224.15 billion from other taxes.

The BIR earlier this year filed numerous criminal cases against sellers and buyers of so-called “ghost receipts.”

Mr. Lumagui earlier estimated that as much as P370 billion in tax revenue may have been lost due to the proliferation of fake receipts.

“We computed the total purchases (of those ghost receipts), we totaled the value-added tax and income tax and that (P370 billion) is the revenue loss to date… There are still many other groups that sell ghost receipts. It’s a challenge to catch them,” he said.

The BIR also signed a memorandum of agreement with several business groups, including the Philippine Chamber of Commerce and Industry and the Management Association of the Philippines, to gain insights on how to streamline tax administration.

The agency collects about 70% of government revenues. — AMCS

SEC warns against Bagong Bansang Maharlika

THE Securities and Exchange Commission (SEC) warned the public against joining Bagong Bansang Maharlika International, Inc. (BBMII) as it lacks the necessary documents to operate its program. 

The SEC said in an advisory posted Aug. 28 on its website that BBMII’s certificate of incorporation, despite granting juridical personality to the corporation, does not constitute a permit to undertake activities for which other government agencies need a license or permit. 

“The public is advised not to join in any scheme offered by any individuals/agents/entities representing BBMII or its affiliates who are engaged in similar activities which [do] not have the required authority/license/permit from the concerned regulatory agencies to conduct such activities,” the commission said.

The SEC said that BBMII’s registration “only gives the subject entity the juridical personality to operate as a corporation.” 

“The public is hereby warned that registration only gives the subject entity the juridical personality to operate as a corporation and does not encompass activities which [require] the necessary permit/license/authority such as but not limited to operate as a Private Social Welfare Development Agency (SWDA) from the Department of Social Welfare and Development (DSWD),” the SEC said.

“Investigation of the (SEC Enforcement and Investor Protection Department) showed that BBMII does not appear to be among those SWDAs with valid registration/license to operate or accreditation with DSWD as of July 31, 2023,” it added. 

DSWD Memorandum Circular No. 17, Series of 2018 defined the SWDA as “a non-stock, non-profit corporation, organization, or association, implementing or intending to implement either directly or indirectly social welfare and development programs and services in the Philippines, and assessed as having the capacity to operate administratively, technically and financially.” 

According to the agency, BBMII’s program entices prospective members via the promotion and offering of “assured benefits” such as food security, medical services, livelihood, free education, and cash assistance for senior citizens starting at 50 years of age and above.

These benefits are promoted via social media and seminars done in public places and radio stations. Members can avail of the benefits after filling up an application form and paying a P100 processing fee for their identification cards. 

The SEC said BBMII claims to be operating in Luzon, Visayas, and Mindanao and is open to Filipinos worldwide from one year old and above but limited to those who voluntarily availed of the program. 

Per government records, BBMII was with the commission on March 18, 2022 under SEC Registration No. 2022030046453-01. — Revin Mikhael D. Ochave

FNG sets completion dates of 3 projects

FEDERAL LAND NRE Global (FNG) has set the target completion timetable for three property development projects, the earliest of which will be in two to three years.

Yasuhiro Ohira, FNG senior management advisor, said during a media roundtable in Taguig City on Tuesday that the first tower of the company’s The Observatory in Mandaluyong could take five or six years to finish construction.   

“Usually, it takes five to six years since this is a high-rise building. But we are proceeding with the simultaneous construction. The overall project may be completed in maybe around 15 years,” Mr. Ohira said.   

“We have eight towers plus one office tower. All of the towers have retail [spaces] at the bottom. [For] the office towers, we are now thinking lease. But it is still subject to change,” Mr. Ohira said.   

The Observatory Mandaluyong will feature unit sizes ranging from compact studio units at around 26 to 33 square meters (sq.m.) to penthouses at around 155 to 202 sq.m. 

“Historical data from Leechiu Property Consultants reveal a consistent price increase in vertical developments in Mandaluyong, highlighting the area’s investment potential. The Observatory Mandaluyong integrates modernity with an inviting retreat, promising a holistic urban living experience,” FNG said in a separate statement.   

Mr. Ohira said the first tower of the Met Park Pasay project in the bay area will be completed in five years.   

“The first tower will be completed also in five years,” Mr. Ohira said.   

Met Park Pasay is a mixed-use neighborhood that will offer various unit sizes, ranging from compact studio units (31-32 sq.m.) to three-bedroom penthouses at around 152 to 220 sq.m. 

“The escalating land values in the Bay Area, as evidenced by Colliers data, signal a growing interest in strategic land-banking approaches among real estate stakeholders,” FNG said.   

Meanwhile, Mr. Ohira said that Riverpark Cavite, which is a residential neighborhood in General Trias, Cavite, will take two to three years to be completed.   

“Generally, it will take two to three years since this is a horizontal project,” Mr. Ohira said. 

“It is utilizing a huge area, approximately 230 hectares. The extension of Cavite–Laguna Expressway (CALAX) is expected to greatly improve accessibility from Metro Manila and the new interchange is scheduled to be developed across to our township,” Mr. Ohira said. 

Riverpark Cavite will feature a Japanese-inspired haven tailored for starting families. Lot sizes in the project will range around 300 to 527 sq.m. The project features the aesthetics of Japanese design with contemporary family requirements.   

“Colliers Philippines’ Q2 2022 survey underscores the sustained interest in residential properties beyond Metro Manila, particularly in horizontal developments. The future neighborhood’s aspiration is to create a serene and rejuvenating environment for families to thrive,” FNG said.   

FNG is a joint venture between Federal Land, Inc. and Nomura Real Estate Development Co., Ltd., while GT Capital Holdings, Inc. is the parent company of Federal Land. 

On Tuesday, shares of GT Capital at the local bourse rose P10 or 1.83% to close at P555 each. — Revin Mikhael D. Ochave 

Discovering the various paths to greatness

GAINING unprecedented insights into the mindset, habits, and methods of those who have triumphed in their personal and professional lives can add value to one’s own approach to life moving forward, according to entrepreneur and business reality show host John Aguilar, who has written a book filled with such insights.

Methods to Greatness: Lessons of the Mind, Body, and Soul from Asia’s Top Entrepreneurs, Athletes, and Icons is his second book published by Penguin Random House SEA. It follows his extensive playbook for business pitching, The Art and Science of the Pitch, released in January this year.

At the Aug. 22 launch, Mr. Aguilar told BusinessWorld that the new book goes a step further than the previous one by unveiling different ways to success, based on his interviews with various Asian personalities.

Some of these people he had spoken to for his personal podcast of the same name, Methods to Greatness, which ran during the lockdowns. Many he also managed to film for the upcoming accompanying documentary series (also of the same name), which is set to air on CNN Philippines.

“The people that you will read [about] who are part of the book are those that I was inspired by, and they come from different walks of life, from entrepreneurs to world-class athletes to cultural icons,” said Mr. Aguilar.

What binds the chosen personalities is that they can be admired for the various paths towards greatness that they have taken, he explained.

The book features interviews ONE Championship heavyweight champion Brandon Vera; Toby Claudio of Toby’s Sports and RUNNR; coach Chot Reyes of Gilas Pilipinas; Jose Magsaysay, Jr., founder and CEO Potato Corner; Olympian pole vault champion EJ Obiena; Nameeta Mahtani Dargani of The Art of Living Philippines; Dennis Anthony Uy of Converge ICT; and Miss Universe 2015 Pia Wurtzbach.

To condense their insights cohesively, Mr. Aguilar divided the book into three parts — Mind, Body, and Soul.

Potato Corner’s Mr. Magsaysay, for example, gave his thoughts on the mind, sharing that mental health comes first and that “the role of psychotherapy in his life was to help him stay healthy,” all while running a successful food business and balancing time with family.

On the other hand, Toby’s Sports president Toby Claudio provided his advice on honing the body to improve one’s life. For him, exercise can change a lot.

“When stressed, I’ve found that an hour of cardio exercises can suddenly make the world a better place,” he said at the launch.

As for the section on the soul, Mr. Aguilar gave the floor to Nameeta Dargani, founder of the Philippine branch of multinational humanitarian agency The Art of Living Foundation. She talked about the power of breathing.

“The breath is tangible,” she said. “Your thoughts can be like a kite flying all over the sky, but when you focus on breathing, it can serve as a string that brings you back to the ground.”

Because the experiences and bits of advice given in the book vary greatly, it highlights how each journey is personal and diverse, said Mr. Aguilar.

“Through this book, I hope that people will not only learn the methods but also discover their unique paths toward greatness, be it in physical or mental well-being or in shaping their visions for the future,” he told BusinessWorld.

He also teased that his third book with Penguin Random House SEA will likely come out next year.

As for the docuseries, which has yet to be given a release date, it will take the book’s lessons up a notch by capturing novel experiences and business ventures that Mr. Aguilar and his team will pursue.

These include his preparations as a member of the national team for the 22nd Asia Masters Athletics Championships and his global collaborations with governments, organizations, and individuals. The series will cover the domains of health, wellness, sports, and travel.

Though it remains to be seen when the show will air, the Methods to Greatness book is available globally through Amazon and Kindle, and in the Philippines through Fully Booked, National Book Store, Shopee, and Lazada. — Brontë H. Lacsamana

DoubleDragon starts building Hotel101-Niseko in Hokkaido

LISTED property developer DoubleDragon Corp. has started the construction of Hotel101-Niseko in Hokkaido, Japan as part of its overseas expansion.   

In a stock exchange disclosure on Tuesday, the company said it had the groundbreaking ceremony for the project on Aug. 26, signaling the start of the construction.

Hotel101-Niseko is a 482-room project situated in a 1.17-hectare property in Niseko town of the Hokkaido region. The project is one of Hotel101’s first three overseas projects, along with hotels in Madrid, Spain, and California, United States.   

DoubleDragon said the contractor of Hotel101-Niseko is Iwata Chizaki, Inc., which is said to be one of the largest contractors in Japan. The contractor also built the Chitose International Airport in Saporro.   

The company said Niseko is known as a world-class ski destination with “picturesque landscapes” as well as hot springs.    

Hotel101 Global Pte. Ltd., the worldwide hotel expansion subsidiary of DoubleDragon, previously said that it expects to generate sales of P71.2 billion from the Hotel101-Niseko project.   

“The Hotel101-Niseko units are seen as a solid investment since the unit owners are able to directly and perpetually own a real estate hard asset through the full ownership of the unit through a condominium title,” it previously said.   

It added that Niseko and Sapporo will have increased mobility and access with the extension of the Shinkansen bullet train to the two towns.   

“Hotel101–Niseko will be one of the largest value hotels in Niseko encompassing 482 signature HappyRooms offering comfort, convenience, and accessibility to all types of travelers,” the company said.   

Previously, DoubleDragon said Hotel101 Global’s near-term expansion roadmap is to have a presence in 25 countries by 2026. These countries are the Philippines, Japan, Spain, the US, United Kingdom, United Arab Emirates, India, Thailand, Malaysia, Vietnam, Indonesia, Saudi Arabia, Singapore, Cambodia, Bangladesh, Mexico, South Korea, Australia, Canada, Switzerland, Turkey, Italy, Germany, France, and China. 

On Tuesday, the company’s shares at the local bourse fell 18 centavos or 2.28% to finish at P7.72 each. — Revin Mikhael D. Ochave

AI scores in the top percentile of creative thinking

OF ALL THE forms of human intellect that one might expect artificial intelligence (AI) to emulate, few people would likely place creativity at the top of their list. Creativity is wonderfully mysterious — and frustratingly fleeting. It defines us as human beings — and seemingly defies the cold logic that lies behind the silicon curtain of machines.

Yet, the use of AI for creative endeavors is now growing.

New AI tools like DALL-E and Midjourney are increasingly part of creative production, and some have started to win awards for their creative output. The growing impact is both social and economic — as just one example, the potential of AI to generate new, creative content is a defining flashpoint behind the Hollywood writers strike.

And if our recent study into the striking originality of AI is any indication, the emergence of AI-based creativity – along with examples of both its promise and peril — is likely just beginning.

When people are at their most creative, they’re responding to a need, goal, or problem by generating something new — a product or solution that didn’t previously exist.

In this sense, creativity is an act of combining existing resources — ideas, materials, knowledge — in a novel way that’s useful or gratifying. Quite often, the result of creative thinking is also surprising, leading to something that the creator did not — and perhaps could not — foresee.

It might involve an invention, an unexpected punchline to a joke or a groundbreaking theory in physics. It might be a unique arrangement of notes, tempo, sounds, and lyrics that results in a new song.

So, as a researcher of creative thinking, I immediately noticed something interesting about the content generated by the latest versions of AI, including GPT-4.

When prompted with tasks requiring creative thinking, the novelty and usefulness of GPT-4’s output reminded me of the creative types of ideas submitted by students and colleagues I had worked with as a teacher and entrepreneur.

The ideas were different and surprising, yet relevant and useful. And, when required, quite imaginative.

Consider the following prompt offered to GPT-4: “Suppose all children became giants for one day out of the week. What would happen?” The ideas generated by GPT-4 touched on culture, economics, psychology, politics, interpersonal communication, transportation, recreation and much more — many surprising and unique in terms of the novel connections generated.

This combination of novelty and utility is difficult to pull off, as most scientists, artists, writers, musicians, poets, chefs, founders, engineers, and academics can attest.

Yet AI seemed to be doing it — and doing it well.

With researchers in creativity and entrepreneurship Christian Byrge and Christian Gilde, I decided to put AI’s creative abilities to the test by having it take the Torrance Tests of Creative Thinking, or TTCT.

The TTCT prompts the test-taker to engage in the kinds of creativity required for real-life tasks: asking questions, how to be more resourceful or efficient, guessing cause and effect or improving a product. It might ask a test-taker to suggest ways to improve a children’s toy or imagine the consequences of a hypothetical situation, as the above example demonstrates.

The tests are not designed to measure historical creativity, which is what some researchers use to describe the transformative brilliance of figures like Mozart and Einstein. Rather, it assesses the general creative abilities of individuals, often referred to as psychological or personal creativity.

In addition to running the TTCT through GPT-4 eight times, we also administered the test to 24 of our undergraduate students.

All of the results were evaluated by trained reviewers at Scholastic Testing Service, a private testing company that provides scoring for the TTCT. They didn’t know in advance that some of the tests they’d be scoring had been completed by AI.

Since Scholastic Testing Service is a private company, it does not share its prompts with the public. This ensured that GPT-4 would not have been able to scrape the internet for past prompts and their responses. In addition, the company has a database of thousands of tests completed by college students and adults, providing a large, additional control group with which to compare AI scores.

Our results?

GPT-4 scored in the top 1% of test-takers for the originality of its ideas. From our research, we believe this marks one of the first examples of AI meeting or exceeding the human ability for original thinking.

In short, we believe that AI models like GPT-4 are capable of producing ideas that people see as unexpected, novel, and unique. Other researchers are arriving at similar conclusions in their research of AI and creativity.

The emerging creative ability of AI is surprising for a number of reasons.

For one, many outside of the research community continue to believe that creativity cannot be defined, let alone scored. Yet products of human novelty and ingenuity have been prized — and bought and sold — for thousands of years. And creative work has been defined and scored in fields like psychology since at least the 1950s.

The person, product, process, press model of creativity, which researcher Mel Rhodes introduced in 1961, was an attempt to categorize the myriad ways in which creativity had been understood and evaluated until that point. Since then, the understanding of creativity has only grown.

Still others are surprised that the term “creativity” might be applied to nonhuman entities like computers. On this point, we tend to agree with cognitive scientist Margaret Boden, who has argued that the question of whether the term creativity should be applied to AI is a philosophical rather than scientific question.

It’s worth noting that we studied only the output of AI in our research. We didn’t study its creative process, which is likely very different from human thinking processes, or the environment in which the ideas were generated. And had we defined creativity as requiring a human person, then we would have had to conclude, by definition, that AI cannot possibly be creative.

But regardless of the debate over definitions of creativity and the creative process, the products generated by the latest versions of AI are novel and useful. We believe this satisfies the definition of creativity that is now dominant in the fields of psychology and science.

Furthermore, the creative abilities of AI’s current iterations are not entirely unexpected.

In their now famous proposal for the 1956 Dartmouth Summer Research Project on Artificial Intelligence, the founders of AI highlighted their desire to simulate “every aspect of learning or any other feature of intelligence” — including creativity.

In this same proposal, computer scientist Nathaniel Rochester revealed his motivation: “How can I make a machine which will exhibit originality in its solution of problems?”

Apparently, AI’s founders believed that creativity, including the originality of ideas, was among the specific forms of human intelligence that machines could emulate.

To me, the surprising creativity scores of GPT-4 and other AI models highlight a more pressing concern: Within US schools, very few official programs and curricula have been implemented to date that specifically target human creativity and cultivate its development.

In this sense, the creative abilities now realized by AI may provide a “Sputnik moment” for educators and others interested in furthering human creative abilities, including those who see creativity as an essential condition of individual, social and economic growth.The Conversation via Reuters Connect

Erik Guzik is an Assistant Clinical Professor of Management, at the University of Montana.