Lanson Place Mall of Asia prepares for opening

August 15, 2023 | 12:01 am

LANSON PLACE Mall of Asia will offer 389 units designed for both long and short stays and a range of dining outlets when it opens soon.

“The true success of Lanson Place Mall of Asia lies in the unwavering dedication of its exceptional workforce and the unparalleled service they provide to every guest. Beyond the bricks and mortar, it is the thriving community spirit fostered by the staff that sets this establishment apart,” Laurent Boisdron, vice-president and general manager of Lanson Place Mall of Asia, said in a statement.

The property will have 247 hotel rooms, 142 serviced residences and amenities such as a fitness center and rooftop infinity pool.

Cyan Modern Kitchen will be the signature restaurant at Lanson Place Mall of Asia.

While the complete hotel opening has yet to be announced, introductory offers for stays are currently available. For stays booked between Oct. 2 to Nov. 30, 2023, guests can enjoy an exclusive advanced booking offer. Contact: reservations.lpmn@lansonplace.com.

Banks’ net income rises in 1^st half

August 15, 2023 | 12:01 am

THE PHILIPPINE BANKING industry recorded a higher net profit in the first half of the year on the back of higher net interest income and growth in their loan portfolios, central bank data showed.

Meanwhile, soured loans held by Philippine banks slipped in June, ending five straight months of increases. This brought the nonperforming loan (NPL) ratio to its lowest in two months.

The cumulative net income of the banking system grew by 24.7% to P178.51 billion in the first half from P143.12 billion in the same period in 2022, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Net interest income stood at P414.45 billion in the January-to-June period, up by 16.9% year on year from P354.32 billion.

Total operating income of Philippine banks climbed by 56.1% to P736.16 billion as of June, from P471.32 billion in the prior year.

Broken down, interest earnings surged by 40.9% to P577.23 billion. However, expenses nearly tripled (195%) to P162.6 billion as of June from P54.97 billion a year ago.

Meanwhile, non-interest income declined by 7.7% to P107.94 billion as of June from P117.01 billion in the same period in 2022.

Dividend and trading income in the period dropped by 8.4% and 3.2% to P1.14 billion and P10.01 billion from a year ago, respectively.

On the other hand, earnings from fees and commissions increased by 9.9% to P76.13 billion

Lenders’ non-interest expenses rose by 7.9% year on year to P288.07 billion from P266.95 billion.

The industry’s losses on financial assets dropped by 13.9% to P32.35 billion as of end-June from P37.59 billion a year prior.

Provisions for credit losses declined by 18.9% to P37 billion from P45.65 billion, and bad debts written off fell by 84.5% to P280.28 million from P1.8 billion.

Banks’ total loan portfolio grew by 6.7% to P12.49 trillion as of end-June from P11.72 trillion a year earlier.

Meanwhile, deposit liabilities stood at P17.48 trillion in the first half, rising by 6% year on year from P16.49 trillion.

The industry’s assets rose by 6.9% to P22.83 trillion as of June from P21.35 trillion a year ago.

JUNE NPL SLIPS
Meanwhile, separate central bank data showed the gross NPL ratio of the Philippine banking industry slid to 3.42% in June, from 3.46% in May and 3.6% a year ago. It was the lowest since 3.41% in April.

Bad loans inched down by 3.2% to P435.01 billion in June from P421.31 billion a year earlier. This was also 0.25% lower than the P436.12 billion in May.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. They are deemed as risk assets because borrowers are unlikely to settle these loans.

Past due loans rose by 5.5% to P518.23 billion from P490.83 billion a year ago. This brought the ratio to 4.08% from 4.19% a year ago.

Restructured loans decreased by 7.7% to P312.81 billion from P338.94 billion in the same month in 2022. These accounted for 2.46% of banks’ loan book.

Banks ramped up their loan loss reserves to P443.33 billion in June from P409 billion a year ago.

The industry’s NPL coverage ratio improved to 101.91% from 97.08% the year prior. — Keisha B. Ta-asan

Hollywood blockbuster Barbie opens in Japan after atomic bomb controversy

August 15, 2023 | 12:00 am

TOKYO — Hollywood blockbuster Barbie hit theaters in Japan on Friday, where “Barbenheimer” memes linking the doll-themed film with the atomic bomb caused a stir and made distributor Warner Bros. apologize ahead of the release.

Tickets for Barbie, starring Margot Robbie in the title role, nevertheless sold fast in Japan as fans flocked to the theatrical release, timed to coincide with a national holiday marking the first day of Japan’s extended summer holiday week.

“The pink world of Barbie was absolutely beautiful,” said Misaki Suzuki, 29-year-old nail salon worker, after watching the film at a Tokyo cinema. Barbie has topped $1 billion in global box office since its July 21 debut, making writer and director Greta Gerwig the first female filmmaker to surpass that benchmark as a solo director. The success of the fantasy-comedy was further boosted by the coupling with Oppenheimer, the biopic chronicling the creation of the atomic bomb during World War II that opened on the same weekend.

But the “Barbenheimer” combo sparked a backlash in Japan, as the nation earlier this month marked the memorials of the US atomic bombings of Hiroshima and Nagasaki 78 years ago.

In now-deleted posts on platform X, formerly known as Twitter, Warner Bros.’ Barbie marketing account had latched on to fan-produced memes that depicted Ms. Robbie with Oppenheimer actor Cillian Murphy alongside images of nuclear blasts. A Change.org petition was launched on Aug. 1, demanding that Warner Bros and Universal Pictures, the studio behind Oppenheimer, call a halt to the #Barbenheimer hashtag on social media. It has collected about 22,600 signatures to date.

A #NoBarbenheimer hashtag trended in Japan at the time, prompting Warner’s Japan division to issue a rare public criticism of its US parent company, which then followed with an apology last week.

Mitsuki Takahata, who voiced Barbie in the dubbed Japanese version, said in an Aug 2 Instagram post that she was dismayed upon learning of the memes. “This incident is really, really disappointing,” she posted.

Still, Japanese fans of the movie, which sends Mattel, Inc.’s iconic doll into real life, said the controversy did not discourage them from visiting theaters.

“It was harsh,” said 24-year-old university student Rie Takeda, commenting on the fan-produced #Barbenheimer memes.

“But the movie was radiant, beyond that I had fun” watching it, she said.

No Japan release date has been announced for Oppenheimer, which has been criticized for largely ignoring the atomic bomb’s destruction of two major Japanese cities in 1945, accounting for more than 200,000 deaths. — Reuters

Philippines slightly improves in GSMA Mobile Connectivity Index

August 15, 2023 | 12:00 am

The Philippines’ overall score improved by 0.02 point to 62.95 (out of 100) in the latest edition of the Mobile Connectivity Index (MCI) by nonproﬁt organization GSM Association (GSMA). The Index assesses and tracks the performance of countries against the equally weighted key enablers of mobile internet adoption, namely: infrastructure, affordability, consumer readiness, and content and services. A higher score means a more enabling environment for delivering mobile internet. The Philippines’ overall score has been improving since the report’s inaugural release in 2014. Despite this, the country has remained a “transitioner” for seven straight years and one of the lower-scoring countries in the region.

How PSEi member stocks performed — August 14, 2023

August 15, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, August 14, 2023.

PSEi tracks Asian shares’ drop on China worries

August 14, 2023 | 9:00 pm

PHILIPPINE STOCKS declined on Monday, mirroring the drop in Asian markets, due to concerns about China’s property sector.

The Philippine Stock Exchange index (PSEi) fell by 76.72 points or 1.19% to close at 6,329.19 on Monday, while the broader all shares index went down by 32.30 points or 0.94% to end at 3,397.89.

“Investors’ sentiment continued to be dragged by the disappointing Q2 (second quarter) economic growth… Overseas, Asian markets were also mostly in the red as worries over the property sector in China heightened,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Philippine shares slid as fears escalated surrounding China’s worsening property market slump, as a fresh batch pointed to tightening conditions. The latest releases show China’s bank loans slid, while consumer and producer prices both declined. This comes after China’s trading data fell below analysts’ projections last week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said.

Asian shares slid on Monday as China’s property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost another 1.7%, after shedding 2% last week. Japan’s Nikkei was off 1.3%, even as exporters drew support from the weak yen.

Chinese blue chips fell 1.2%, on top of a 3.4% decline last week, amid a string of disappointing economic news culminating in a dire report on new bank loans in July.

Adding to concerns about the deteriorating health of the country’s debt-laden property developers was news two Chinese listed companies had not received payment on maturing investment products from Zhongrong International Trust Co.

“Investors await the… MB (Monetary Board) meeting on Aug. 17. The latest OFW (overseas Filipino workers) cash remittances print is expected to be released within the week,” Mr. Limlingan added.

A BusinessWorld poll last week showed that 13 of 15 analysts see the Monetary Board keeping benchmark rates steady at a near 16-year high of 6.25% during its fifth policy meeting for the year on Thursday.

Sectoral indices dropped on Monday except for mining and oil, which rose by 59 points or 0.59% to 9,908.30.

Meanwhile, property dropped by 57.03 points or 2.13% to 2,618.75; holding firms went down by 95.91 points or 1.58% to 5,969.99; services fell by 20.17 points or 1.29% to 1,532.79; financials lost 8.88 points or 0.46% to end at 1,899.66; and industrials declined by 21.47 points or 0.23% to 8,972.26.

Value turnover climbed to P4.58 billion on Monday with 716.17 million shares changing hands from the P3.83 billion with 445.66 million issues seen on Friday.

Decliners outnumbered advancers, 118 versus 45, while 53 names closed unchanged.

Net foreign selling grew to P361.26 million on Monday from P297.97 million on Friday. — AHH with Reuters

Peso sinks to over eight-month low as dollar hits one-month high

August 14, 2023 | 9:00 pm

THE PESO sank to an eight-month low against the greenback on Monday due to broad dollar strength and faster US producer inflation last month.

The local currency closed at P56.78 versus the dollar on Monday, weakening by 46.5 centavos from Friday’s P56.315 finish, data from the Bankers Association of the Philippines’ website showed.

This was the peso’s weakest close in over eight months or since its P56.94-a-dollar finish on Nov. 23, 2022.

The local unit opened Monday’s session at P56.45 per dollar, which was also its intraday best. Its weakest showing for the day was at P56.99 against the greenback.

Dollars traded went down to $1.41 billion on Monday from $1.43 billion on Friday.

The peso weakened following a stronger dollar recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The dollar hit a one-month high against a basket of major currencies before steadying as investors sought a safe haven on concerns about China’s economy, Reuters reported.

The dollar index, which measures the buck against six major peers, rose to 103.02, its highest since early July. It was last little changed on the day at 102.88.

“The peso weakened anew as US inflationary concerns resurfaced following the latest uptick in US producer inflation report for July 2023,” a trader said in an e-mail.

US producer prices increased slightly more than expected in July as the cost of services rebounded at the fastest pace in nearly a year, but the trend remained consistent with a moderation in inflationary pressures, Reuters reported.

The producer price index (PPI) for final demand increased 0.3% last month. Data for June was revised lower to show the PPI was unchanged instead of nudging up by the previously reported 0.1%.

In the 12 months through July, the PPI increased 0.8% after gaining 0.2% in June.

For Tuesday, the trader said the peso could weaken further against the dollar ahead of a potentially strong US retail sales report.

The trader expects the peso to move between P56.60 and P56.85 per dollar on Tuesday, while Mr. Ricafort expects it to range from P56.60 to P56.90. — AMCS with Reuters

Metro Manila’s Construction Materials Retail Price Indices

August 14, 2023 | 8:35 pm

GROWTH in wholesale and retail prices of building materials in Metro Manila eased in July, the Philippine Statistics Authority (PSA) reported on Monday. Read the full story.

PAGCOR expects to begin privatizing casinos by 2025

August 14, 2023 | 8:34 pm

THE Philippine Amusement and Gaming Corp. (PAGCOR) plans to start privatizing 45 casinos by the third quarter of 2025, its chairman told a House of Representatives committee on Monday.

“The privatization of PAGCOR’s 45 properties will commence during the third quarter of 2025 at the earliest,” PAGCOR Chief Executive Officer and Chairman Alejandro H. Tengco told the House Appropriations committee during its deliberations for the P5.768-trillion 2024 national budget.

House Government enterprises and privatization committee Chairman and Parañaque Rep. Edwin L. Olivarez cited the agency’s conflicting roles as a regulator and casino operator.

“I have been doing some studies about the privatization. My goal is to increase the value of what we will privatize,” Mr. Tengco said, noting that the privatization had been given the green light by President Ferdinand R. Marcos, Jr.

As of June 30, 75% of the agency’s income is generated by integrated resorts and licensees, while 25% is sourced from PAGCOR-operated casinos, Mr. Tengco added. “It is clear that PAGCOR should purely be a regulator and not an operator at the same time.”

Mr. Tengco added that he is consulting the Department of Finance on whether PAGCOR will remain a government-owned and -controlled corporation (GOCC) or become an agency if the casinos are divested.

He said PAGCOR’s P3-million logo redesign, launched in July, was intended to counteract the circulation of fake licenses used to operate in the Philippines and overseas.

Party-list Rep. Raoul Danniel A. Manuel said the cost of the redesign was excessive.

“We claim that we don’t have fiscal space for other budget items but (we spend this much) for a logo,” Mr. Manuel told the committee. “Many people could have benefited from a budget this large if it was used properly.”

PAGCOR reported a net profit of P36.21 billion in the first six months, Vice-President Sharon SJ. Quintanilla told the committee, with funds surrendered to the government to help fund its projects amounting to P22.62 billion.

GOCCs are required by law to remit at least 50% of their profits to the Treasury to finance government priority projects like universal healthcare and other nation-building exercises.

Last year, PAGCOR generated a net profit of P58.96 billion, up from P35.48 billion in 2021, Ms. Quintanilla told the committee.

PAGCOR paid taxes to the Bureau of Internal Revenue of P3.54 billion in 2022. Ms. Quintanilla said that P307.83 million of this represented corporate income tax, while P2.71 billion was transmitted as franchise tax. PAGCOR also paid P521.83 million in withholding taxes.

Cities that host PAGCOR casinos are allocated a fixed amount for community development projects, Ms. Quintanilla said.

PAGCOR projects a net profit of P75.5 billion and P80.28 billion in 2023 and 2024, respectively.

POGOs
Meanwhile, Cagayan Do Oro Rep. Rufus B. Rodriguez proposed to shut down Philippine Offshore Gaming Operators (POGOs), citing reports of kidnapping, murder and prostitution from the industry.

In response, Mr. Tengco added that POGO licensees, sublicensees and service providers have been placed under probationary status and have until Sept. 15 to reapply, or else their licenses will be revoked.

“I have warned them that this is one one-strike policy and that if they will continue to be involved in the illegal activities such as credit card scams, crypto-investment scams, love match scams, I will recommend the closure of the industry,” Mr. Tengco said.

He also noted that PAGCOR is no longer generating e-sabong revenue as the cockfight betting operation was shut down by the previous administration. — Beatriz Marie D. Cruz

PAGCOR could contribute P4B to Maharlika

August 14, 2023 | 8:34 pm

THE Philippine Amusement and Gaming Corp. (PAGCOR) estimates that it will be able to contribute up to P4 billion to the Maharlika Investment Fund (MIF), its chairman told the House Committee on Appropriations on Monday.

“If our interpretation is correct, we will be able to contribute anywhere between P3.6 billion to P4 billion in the Maharlika fund,” PAGCOR Chief Executive Officer and Chairman Alejandro H. Tengco told legislators during deliberations on the P5.768-trillion 2024 national budget.

PAGCOR said the contribution will be taken from the dividend it owes by law to the National Government (NG) of at least 50% of its earnings.

“Within that 50% (dividend), we are clarifying if this is where we’ll get our investment for the Maharlika fund,” he said.

Republic Act (RA) No. 11954, which created the MIF, requires that 10% of the National Government’s income from PAGCOR will go to funding the MIF.

PAGCOR is also studying the possibility of investing its retained earnings in the MIF.

“We are seeking clarification if (a certain percentage of) our retained earnings can be invested in the Maharlika fund,” Mr. Tengco said.

President Ferdinand R. Marcos, Jr. signed RA 11954 on July 18.

“The fund shall be used to make high-impact and profitable investments, such as the Build Better More program. The gains from the Fund shall be reinvested into the country’s economic well-being,” Mr. Marcos said in his State of the Nation Address last month.

The MIF law designates as providers of initial capital the Land Bank of the Philippines, which will invest P50 billion. The Development Bank of the Philippines will inject P25 billion, while the P50 billion will come from the National Government.

The bill also prohibits government pension funds and insurers from contributing seed capital to the MIF. These include the Government Service Insurance System, Social Security System, and the Philippine Health Insurance Corp.

The fund has raised concerns that the NG will not be able to fund social services after it accumulated P14.1 trillion worth of outstanding debt as of the end of May.

NG debt is expected to hit P15.84 trillion in 2024, the Department of Budget and Management said last week.

The Maharlika Investment Corp., which will operate the fund, is expected to be fully operational by the end of 2024. — Beatriz Marie D. Cruz

Retailers warn industry will shed jobs if Congress legislates wage hikes

August 14, 2023 | 8:33 pm

grocery-supermarket-shopper- — PHILIPPINE STAR/RUSSELL A. PALMA

RETAILERS said they could resort to layoffs if Congress proceeds to legislate a higher minimum wage.

Roberto S. Claudio, Sr., Philippine Retailers Association (PRA) president, said businesses would need to shed workers to comply with a Congress-imposed wage hike.

“This is the concern of the industry. If the minimum wage is increased, more jobs will be lost because most of the businesses… will simply reduce staffing,” Mr. Claudio told reporters on the sidelines of an expo in Pasay City last week.

Mr. Claudio estimated that the proposed wage hike will result in the loss of 50,000 jobs from mainstream retailers, equivalent to 10% of their workforce.

Senate President Juan Miguel F. Zubiri has said that senators will push for legislation calling for a P150 across-the-board wage hike.

In June, the National Capital Region Tripartite Wages and Productivity Board approved a P40 wage hike for workers in Metro Manila, which brought the daily minimum wage to P610 for non-agricultural workers.

The minimum wage was also raised to P573 for agricultural workers, services and retail establishments with 15 or fewer employees, and manufacturers with less than 10 employees.

Mr. Claudio said that retailers are scrambling just to comply with the P40 wage hike for Metro Manila.

“We are finding ways (to comply with) the wage hike that has already been approved. Anything more will definitely be answered (with job cuts),” Mr. Claudio said.

Mr. Claudio called for wage hikes to be set instead via collective bargaining.

“Most companies have their own labor unions. Let them work it out because every renegotiation, every renewal of contract with the union… will always be additional (wages), more benefits,” Mr. Claudio said.

“If you (legislate wage hikes), you are forcing others who are not in a position to give additional wages or adjustments in their wages (to increase pay),” he added. — Revin Mikhael D. Ochave

Farmers seek imposition of price controls on rice

August 14, 2023 | 8:33 pm

NFA-rice-warehouse-import-040819 — PHILIPPINE STAR/ MICHAEL VARCAS

A NON-GOVERNMENT organization asked the government to impose price controls on rice, citing the need to deter traders from stockpiling rice instead of releasing inventory onto the market.

“As long as there is (the Rice Tariffication Law, or Republic Act 11203) and the government does not take drastic measures to impose price controls or check the warehouses of traders… rice prices will continue to rise,” Bantay Bigas Spokesperson Cathy L. Estavillo said in a briefing.

RA 11203, signed in 2019 liberalized rice imports, which used to be a government monopoly. Instead, importers had to pay a tariff of 35% on shipments of Southeast Asian grain to generate revenue for the government and finance the Rice Competitiveness Enhancement Fund.

At the same time, Ms. Estavillo also warned that the arrival of new imports from Vietnam and possibly India may depress prices at the farmgate level prices during the harvest in September.

Kilusang Magbubukid ng Pilipinas Chairman Danilo H. Ramos also blamed “the cartel in rice” — stockpiling by traders — for the increase in retail prices.

“The farmers as a whole have no capability to store their palay because that is what they use to pay for their debts and daily needs,” he added.

Both groups reiterated their call to repeal the Rice Tariffication Law, which they said have worsened the rice crisis and imposed losses on farmers.

This (increase) in the price of rice is (the result of) price manipulation by traders, millers, and importers. Since the signing of RA 11203, the private sector sets the price of the rice in the market, and the government has done nothing,” Ms. Estavillo said.

Agriculture Assistant Secretary and Deputy Spokesperson Rex C. Estoperez told reporters on Monday that the increase in rice prices was due to higher international prices.

“We talked to a lot of rice retailers and rice importers, mataas ang kanilang kuha dahil nga sa presyo ng kanilang imports din naman (their acquisition costs are high because import prices are also high),” he said.

Mr. Estoperez said price controls are not possible, but the DA’s enforcement and inspectorate arm could start visiting warehouses to validate claims of hoarding.

“What would be our basis (for price controls?) We are not in an emergency (that justifies price controls),” he said.

Asked to comment on calls to repeal the Rice Tariffication Law, he said: “A review, I think, is the best solution. We will revisit the Rice Tariffication Law. Will look at what else needs to be amended, what provisions need to be strengthened.”

On Monday, the DA’s Bantay Presyo price monitors quote domestic well-milled rice prices at between P42 and P53, while regular-milled rice was sold for between P38 and P52.

Imported well-milled rice sold in Metro Manila markets for between P45 and P46. — Sheldeen Joy Talavera