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CTA partly grants VAT refund claim of Marubeni unit

CTA.JUDICIARY.GOV.PH

THE COURT of Tax Appeals (CTA) has partially granted Maxima Machineries, Inc.’s appeal to refund its excess input value-added tax (VAT) traced to zero-rated sales in the amount of P4.7 million out of its initial P90 million claim for the fiscal year 2014.

In a 27-page decision dated July 18 and made public on July 21, the CTA full court affirmed its First Division’s finding of the firm only having input VAT attributable to zero-rated sales worth P60 million but substantiated only P4.7 million by presenting official receipts.

“Well-settled is the rule that tax refunds or credits, just like tax exemptions, are strictly construed against the taxpayer,” according to the ruling penned by Associate Justice Lanee S. Cui-David.

“The burden is on the taxpayer to show that he has strictly complied with the conditions for the grant of the tax refund or credit.”

Zero-rated sales are transactions made by VAT-registered taxpayers that do not translate to any output tax. Taxpayers must present official receipts that are attributable to a specific fiscal period, with the term “zero-rated” being written on them to qualify for a 0% rating. 

The company is a subsidiary of the Japanese business conglomerate Marubeni Corp.

The tribunal also denied its export sales of services allegedly traced to zero-rated sales worth P2.5 million to the conglomerate since it is doing business outside the Philippines, citing its failure to present the Securities and Exchange Commission (SEC) certificate of non-registration.

Under the Tax Code, taxpayers that engage with foreign firms doing business outside the Philippines are entitled to zero-rated sales that do not translate to output tax.

Companies must also be supported by an SEC certificate of non-registration of the corporation and proof of incorporation/registration in a foreign country.

The law requires that input tax subject to a refund claim must not have been applied against output tax. — John Victor D. Ordoñez

Tony Bennett: The timeless visionary who, with a nod to America’s musical heritage, embraced the future

IN THE HISTORY of American popular music, there have been few luminaries as enduring and innovative as Tony Bennett.

With a career that spanned almost 80 years, Bennett’s smooth tones, unique phrasing and visionary musical collaborations left an indelible mark on vocal jazz and the recording industry as a whole.

That his death at the age of 96 on July 21, 2023, was mourned by artists as varied as Keith Urban, Ozzy Osbourne, and Harry Connick, Jr. should come as no surprise. Yes, Bennett was a jazz crooner. But if his voice was always a constant — even late into his 80s, way past an age when most other singers have seen their vocal abilities diminish — then his embrace of the contemporary was every bit a facet of Bennett’s appeal.

Bennett’s journey is a testament to the power of daring innovation.

From the early days of his career in the 1950s to his final recordings in the early 2020s, he fearlessly explored new musical territories, revolutionizing vocal jazz and captivating audiences across generations.

His vocal style and phrasing were distinctive and set him apart from other artists of his time. He utilized a delayed or “laid-back” approach to falling on the note, a technique known as “rubato.” This created a sense of anticipation in his phrasing, adding an element of surprise to his performances. Through Bennett’s skilled use of rubato, he was able to play with the tempo and rhythm of a song, bending and stretching musical phrases to evoke a range of emotions. This subtle manipulation of timing gave his songs a natural and conversational quality, making listeners feel as though he was intimately sharing his stories with them.

Armed with this silky, playful voice, Bennett found fame fairly early on in his career, delivering jazz standards alongside the likes of Mel Tormé and Nat King Cole. By the mid-1960s, he was being touted by Frank Sinatra as “the best singer in the business.”

But his musical style fell out of fashion in the 1970s — a lean period during which Bennett almost succumbed to a drug overdose. Then, in the 1990s, Bennett found a new audience and set off a series of collaborations with contemporary musical stars that would become the standard for his later career.

No genre of artistry was deemed off-limits for Bennett. Duets: An American Classic, released to coincide with his 80th birthday in 2006, saw collaborations with country stars such as k.d. lang and the Dixie Chicks — now known as the Chicks — and soul legend Stevie Wonder, alongside kindred jazz spirits such as Diana Krall. Duets II, a 2011 follow-up, saw further explorations with the likes of Aretha Franklin, Queen Latifah, Willie Nelson, and Amy Winehouse, in what would become the British singer’s last recording.

But his cross-generational, cross-genre, and cross-cultural appeal is perhaps best exemplified by his collaborations with Lady Gaga, first on the 2014 Grammy-winning album Cheek to Cheek. The recording brought together two artists from different generations, genres and backgrounds, uniting them in a harmonious celebration of jazz classics. The collaboration not only showcased each one’s vocal prowess, but also sent a powerful message about the unifying nature of music.

Lady Gaga, a pop artist with avant-garde leanings, might have seemed an unlikely partner for Bennett, the quintessential jazz crooner. Yet their musical chemistry and mutual admiration resulted in an album that mesmerized audiences worldwide. Cheek to Cheek effortlessly transcended musical boundaries, while the duo’s magnetic stage presence and undeniable talent enchanted listeners.

The successful fusion of jazz and pop encouraged artists to experiment beyond traditional boundaries, leading to more cross-genre projects across the industry — proving that such projects could go beyond one-off novelties, and be profitable at that.

Bennett’s embrace of contemporary artists did not mean that he abandoned his own musical self. By blending traditional jazz with contemporary elements, he managed to captivate audiences across generations, appealing to both longtime fans and new listeners.

One key aspect of Bennett’s success was his ability to embody the sentiment of old America, reminiscent of artists like Sinatra, Billie Holiday, and Louis Armstrong, while infusing contemporary nuances that resonated with the human condition of a more modern era. His approach to music captured both the essence and struggle of America, giving his songs a timeless and universal appeal. Moreover, his voice conveyed familiarity and comfort, akin to listening to a beloved uncle.

Bennett’s albums stood out not only for his soulful voice and impeccable delivery but also for the way he drew others from varied musical backgrounds into his world of jazz sensibilities. As a producer, he recognized the importance of nurturing creativity and bringing out the best in artists.

Meanwhile, Bennett’s approach to evolving his own sound while preserving its essence sets him apart as an artist. Fearless in his pursuit of innovation, he delved into contemporary musical elements and collaborated with producers to infuse new sonic dimensions into his later albums. The result drew listeners into an intimate and immersive, concert-like acoustic journey.

The greats in music have an ability to speak to the human experience. And either in collaboration with others or on his own, Bennett was able to achieve this time and time again.

His albums were successful not only due to their technical brilliance and musicality but also because Bennett’s voice conveyed a depth of emotion that transcended barriers of time and culture, touching the hearts of listeners from various backgrounds. There was a universality in his music that made him a beloved and revered artist across the globe.

Bennett’s life spanned decades of societal upheavals in the United States. But in his music, listeners could always find beauty in challenging times. And as the 20th– and 21st-century American music industry went through its own revolutions, Bennett’s artistic evolution mirrored the changes, cementing his place as a music icon who defies the boundaries of time and trends. — The Conversation via Reuters Connect

Jose Valentino Ruiz, Ph.D., D.Min., Program Director of Music Business & Entrepreneurship, University of Florida.

First year of Marcos: Assessing energy policies

ROBERT WIEDEMANN-OQ-UNSPLASH

We base this assessment on the first State of the Nation Address (SONA) of President Ferdinand R. Marcos, Jr., given on July 25, 2022. In his 2022 SONA, the President said this about the energy sector:

“Another fundamental requirement for growth and increased employment will be the availability of cheap, reliable energy… We must increase the level of energy production… We must build new power plants…. improving the mix of the energy supply between traditional and renewable sources.

“In the interim, natural gas will hold the key. We will provide investment incentives by clarifying the uncertain policy in upstream gas, particularly in the area close to Malampaya… re-examine our strategy towards building nuclear power plants in the Philippines.… allow smaller scale modular nuclear plants and other derivations thereof.

“We must expand the network of our transmission lines while examining schemes to improve the operation of our electrical cooperatives…. We will increase our use of renewable energy sources such as hydropower, geothermal power, solar, and wind.”

So, we will assess energy achievements on these seven points. The quickest way to do this exercise is to check reports in BusinessWorld this year, and I would say that all the subjects mentioned by the President have been acted upon by the Department of Energy (DoE), the Energy Regulatory Commission (ERC), and the administration-aligned legislature. See the seven points and the corresponding reports this year, mostly written by my favorite objective energy reporter, Ashley Erika Jose:

1. Build new power plants and expand energy production: “Making progress towards a Philippines powered by secured, reliable supply” (March 31), “New power projects to stabilize electricity supply in 2-3 years” (June 12).

2. Cheap, reliable energy: “Electricity spot price drops in July as power demand declines” (July 19), “No net-zero target in Philippine Energy Plan” (July 23).

3. Natural gas development near Malampaya: “Marcos signs deal extending Malampaya service contract” (May 16), “Malampaya Consortium plans to spend $600 million on SC 38 drilling” (May 16).

4. More nuclear energy: “Next Philippine Energy Plan to propose share of nuclear power” (May 23), “DoE may set 2,400 MW goal for nuclear power by 2035” (July 19).

5. Expand transmission lines: “Senators slam NGCP over poor network, keeping high gains” (May 24), “Approval of more  ancillary contracts sought by NGCP” (July 18).

6. Improve electric cooperatives (EC): “ERC issues 33 show-cause orders against power co-ops, distributors” (May 31), “For a more equipped, energy-secure power industry” (June 8).

7. Expand renewables: “Green energy auction awards revised down to 3,440 MW” (July 13).

As reported in the July 19 story in BusinessWorld, the Independent Electricity Market Operator of the Philippines (IEMOP) showed that spot prices have been declining, from P7.69/kWh in the April 2023 billing and P8.83/kWh in May to P6.67 in June and P6.07 in July. Meralco also announced a huge decline in electricity prices of P0.72/kWh for July. That is good news from IEMOP and Meralco. Since coal prices have been stabilizing at below $150/ton since late May this year, electricity consumers benefit from it.

The ERC has been clamping down on many problematic EC and distribution utilities that were charging fuel pass-through costs to consumers even without supporting documents from the gencos, serving them with various show-cause orders.

Meanwhile, I saw a full-page ad by the “People 4 Power” coalition (P4P) in the Philippine Star entitled “Murang Kuryente para sa lahat: A message to President Marcos ahead SONA 2023.” It is a wish list of practically brain-dead advocacies like, a.) mandating straight energy pricing in all power contracts, b.) transitioning to 100% renewable energy with a minimum 50% by 2030, c.) turning away from coal, gas and hastening the phase out of fossil fuel plants, and, d.) rejecting nuclear energy.

I call these “brain-dead” advocacies because they are straight socialist, dictatorial, and hallucinatory arguments. Mandatory straight energy pricing means mandatory price control, price dictatorship regardless of fluctuations in prices of energy inputs, capex, and opex. Going 100% RE, with a phase out of fossil fuels and nuclear energy is illusory. Germany started their “energiewende” or energy transition from nuclear and fossil fuels to RE since the 1970s. After five decades, the share of solar+wind to total power generation in 2022 was only 31%. Socialists and energy alarmists like P4P are advocating degrowth, deindustrialization, and blackout economics.

I constructed the accompanying table by comparing data over 15 years — 2007 and 2022 — from three groups of countries. In group A are the four biggest economies of Europe, in group B are the big North and South Asians, and in group C are the ASEAN-6. It also includes data from the Energy Institute’s Statistical Review of World Energy (EI-SRWE) 2023, and GDP growth from IMF World Economic Outlook (WEO) 2023.

The numbers are very clear. This is hard data, not hypothetical, fictional narratives. Here is what we found:

One, as Europe embraces and adds more wind+solar, as the share of coal to total generation declines, their overall total power generation declines, and their average GDP growth crawls between 0% and 1.2%.

Two, as big Asian nations, especially China and India, add more coal power to their mix, their total power generation expands fast, and their average GDP growth jumps high — 3.1% to 7.7%. Japan is the exception because it follows the Europeans under the influence of G7.

Three, ASEAN-6 has the same trends as group B countries — huge expansion in coal use leads to huge overall power generation and fast GDP growth, 2.6% to 6.1%.

Four, there is no real energy transition happening in the world, there is only the addition of RE to conventional energy — see the doubling of world coal generation from 8,250 TWH in 2007 to 10,300 TWH in 2022. In Europe, their “decarbonization” attempts only lead to degrowth.

From IEMOP data on power generation mix for April, May, and June 2023, we see that coal generated 64.2% of total, wind+solar combined generated only 3.4% of total. If the Philippines pushes strongly for wind+solar and the phase out of coal, there will be large-scale blackouts, and perhaps P4P leaders and groups would be in the business of selling candles and gensets.

Overall, Year 1 of the Marcos Jr. administration’s energy achievements is good. The explicit advocacy for more nuclear power, its non-commitment to illusory and brain-dead “net zero,” and protection of consumers without resorting to price dictatorship are all good policies of the administration. Congratulations, Energy Secretary Raphael Lotilla, ERC Chairperson Monalisa Dimalanta, and President Marcos Jr.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment@gmail.com

ECB grapples with endgame for hikes a year after liftoff

A YEAR after the European Central Bank (ECB) began lifting interest rates, officials are thrashing out the final stages of what’s already their toughest-ever campaign of hiking.

Policy makers gathering this week in Frankfurt are poised to unveil another quarter-point increase in the deposit rate, to 3.75%, on top of the 400 basis points of monetary tightening enacted since last July.

They’re less likely, though, to offer guidance on the following meeting, in September, when some are angling for one last move while others prefer a pause. Despite some hawkish Governing Council members sounding more conciliatory of late, that debate remains in full swing. Investors and economists lean toward a 4% peak in rates.

“The key challenge will be to make clear that the Governing Council will bring inflation toward target but that nevertheless the end of the hiking cycle is nearing,” said Martin Wolburg, senior economist at Generali Investments Europe. “The message will be that rates stay at their peak levels for longer.”

It’s already proving tricky to convince the market of that intention, with analysts surveyed by Bloomberg predicting cuts in borrowing costs as early as next spring. Past assertions that proved inaccurate may fuel such doubt, like ECB President Christine Lagarde’s late-2021 description of rate hikes the following year as “very unlikely.”

As well as trying to rebuild credibility, the ECB and other big central banks have spent much of the past year and a half striving to engineer a soft landing for their economies after Russia’s war in Ukraine super-charged inflation and upended the post-pandemic rebound.

The rapid salvo of hikes — which only tend to hit home with a lag of a year or more — means their still-unfolding impact is as important to ECB decision making as the slew of economic reports arriving by September.

A year on from liftoff, inflation has sunk to 5.5% from almost double that at its peak — but that’s due more to a reversal in natural gas prices than the ECB’s action so far. Once energy and food are removed, so-called core inflation remains higher than 12 months ago. Projections only see overall price gains near the 2% goal in 2025.

The economy, meanwhile, has so far dodged a recession even as higher energy bills and borrowing costs squeeze households. A surprisingly strong labor market is underpinning consumption. But some sectors — particularly manufacturing — are struggling. Output in Germany, the bloc’s biggest member, shrank over the winter.

That backdrop leaves ECB officials at odds over the finale to their hikes.

Yannis Stournaras, who heads Greece’s central bank, has cautioned that growth may be underperforming, suggesting inflation could be weaker as a result. Italy’s Ignazio Visco, similarly, has said price pressures may abate faster than expected. Both are likely to favor a September pause.

At the other end of the spectrum, Bundesbank President Joachim Nagel has argued that it’s too early to proclaim “a certain kind of a victory” over inflation, hinting that another hike may be needed in the fall.

Muddying the waters, Mr. Nagel’s traditionally hawkish counterpart in the Netherlands, Klaas Knot, told Bloomberg TV last week that any action beyond July “would at most be a possibility but by no means a certainty.”

“The Governing Council is becoming more divided on how much further tightening the euro-area economy needs,” said Nerijus Maciulis, chief economist at Swedbank. “Although it’s likely to keep the doors ajar for further hikes, it will refrain from repeating that the job is ‘not done.’”

The upshot is that policy makers, rather than telegraphing future moves as they have in recent months, will adhere more closely to their longstanding mantra of data dependency — much like the Federal Reserve is doing.

Both central banks could face the choice of a pause or another increase in September. The Fed, though, has hiked more and began earlier — in March 2022 — with officials in Frankfurt still being accused of responding too late to the spike in prices.

In December 2021, as the Bank of England became the first major central bank to lift rates and euro-area inflation stood at 5%, ECB policy makers clung to arguments that elevated readings would be transitory.

And while the ECB can’t yet declare “mission accomplished,” Chief Economist Philip Lane is confident that the efforts of the past 12 months will get it over the line. — Bloomberg

Six ways to handle soaring temperatures with a low-carbon lifestyle

A TRAINER shows a newly installed heat pump system at the Octopus Energy training and R&D center in Slough, United Kingdom, in 2021. — CHRIS RATCLIFFE/BLOOMBERG

YOU could be forgiven for thinking humans are helpless against extreme heat. All over the world, record high temperatures are raising concerns about heat stress, which has claimed more than 100 lives in India this year and killed over 60,000 people in Europe last summer.

One obvious solution — adding more air conditioning (AC) — is catching on fast: Through 2050, an estimated 10 new AC units will be sold every second. That influx, though, threatens to exacerbate the climate crisis that necessitated it.

In some places and at particularly high temperatures, air conditioning may be the safest and most effective option for staying cool — but it isn’t the only one. Here are tips for coping with hotter days without increasing your carbon emissions.

Avoid AC — when you can.

Don’t underestimate the impact of a powerful fan. Fans replicate the best parts of a cool breeze — fast-moving air helps remove body heat — while using about 1% of the electricity of an AC unit.

The US Environmental Protection Agency’s Excessive Heat Events Guidebook warns against depending entirely on fans when the heat index is above 99F (37.2C), but even then, using a fan in combination with AC allows you to set the latter at a higher temperature. That small adjustment could lead to a big reduction in your energy consumption — and your utility bill.

If you must use air conditioning, use it wisely.

Some basic rules of thumb can curtail your AC energy costs, with the added benefit of reducing emissions and strain on the grid. Those include making your air conditioner work smarter vs. harder — if you’re cooking in the kitchen and the AC unit is in the bedroom, for example, try putting up a thermal curtain between them. You can also conserve energy by avoiding cooling unoccupied spaces, such as bedrooms whose  occupants are at work or school, or the entire house when no one is home.

Window AC units make this kind of compartmentalization easier, but many people with central air can also engage in temperature management by using a smart thermostat.

Last but not least, make sure your AC unit is the right size and efficiency for the space you’re trying to cool. An oversized air conditioner is more expensive and environmentally taxing, and can also leave your home more humid when it’s on. Meanwhile, if your AC dates back to the 1970s, the US Department of Energy says you can halve your energy use by replacing it with a newer model.

Bite the bullet and look into a heat pump.

Despite its name, a heat pump is also a cooling device — one far more energy-efficient than conventional AC. The most common version is an air-source heat pump, which uses liquid refrigerant in a copper coil to extract heat from the interior of a home, since warm air naturally moves toward the cold. The hot air is then vented outside the house.

Heat pumps are neither cheap to purchase or easy to put in: Equipment and installation costs range from $4,000 to $12,000 for an air-source pump, depending on the size, the brand and whether you use a ductless system. By contrast, central air costs about $7,000 and window units just a few hundred bucks. But depending on where you are, there might be incentives available. In the US, for example, the Inflation Reduction Act covers 30% of heat pump purchase and installation costs, with an annual cap of $2,000.

Heat pumps’ biggest selling point is that they check two boxes at once: In winter, the device can also keep you warm. One 2021 report found that a Seattle home equipped with a heat pump would save $228 each year compared to conventional cooling and heating. The heat pump also reduced the building’s carbon footprint by about a quarter.

Hook up with renewable energy sources.

Whether you’re using a fan, an air conditioner, a heat pump or some combination of the three, you can always up your game (er, down your carbon footprint) by seeking out renewable energy. The US has become a booming market for residential solar: 2022 was the sixth consecutive year of record new installations, according to the Solar Energy Industries Association.

You don’t even need a roof. In 21 US states and Washington DC, solar developers are starting to tap vacant land and empty rooftops near residential areas to boost capacity, one small-scale project at a time. If a local solar array isn’t an option, you might still be able to subscribe to a “community solar garden.” Subscribers make a monthly payment based on their electricity consumption, then receive a discount on their utility bill for the clean power the community solar garden supplies to the grid.

Make sure your home is insulated.

If your house is drafty, your cooling appliance — whatever it may be — will have to work harder. That can be particularly painful when energy costs skyrocket; just ask the Texans who saw prices surge by 80% in a matter of hours last month. It never hurts to hire an energy auditor to identify where hot air sneaks in and to help you plug the leaks. In the US, an IRA tax credit will cover 30% of the audit cost, up to $150.

An energy audit might expose needed adjustments to your walls, doors and windows. It could also mean looking into a “cool roof,” which reflects sunlight and lowers the temperature of the building beneath. For certain houses, it’s even possible to install a “green roof” made of living vegetation, which provides cooling primarily through the evaporation of water from its plant surface.

New house, new you.

If you just so happen to be planning your next home from scratch, don’t sleep on the importance of making it heat-resistant. One way to accomplish that is to consider an ultra energy-efficient structure known as a “passive home.”

Passive houses adhere to a set of design principles and specific construction materials, such as triple-pane windows, that make a home airtight. A passive structure can slash your energy consumption for cooling by as much as 90% compared to conventional homes in the same climate, according to Germany’s Passivhaus-Institut, which certifies such buildings. (In winter, passive houses also use less heat.) It might not be cheap: Passive single-family homes cost about 10% more to build than conventional ones, although that differential is less for multi-family buildings.

There is one catch. Passive houses fend off heat waves thanks to their outstanding insulation, but a well-insulated home can also trap internal heat generated by cooking, lighting and even human activity. To let insulation work for you rather than against you, draw curtains for shade, turn off home appliances when they’re not in use and embrace LED light bulbs. Once you manage to cool down the inside of your home, the insulation will help it stay that way.

Another way to build a heat-resistant home is by using compressed earth blocks, a type of construction material made largely from a sandy clay mixture. The technique originated in ancient Jordan, and 21st century architects have refined it to meet modern building codes. Each earth block can be up to 10 inches thick; since heat is transferred through the block at a pace of about one inch per hour, the walls keep interior temperatures down during a heat wave. — Bloomberg

Atlas Mining’s net income declines

ATLAS Consolidated Mining and Development Corp. on Monday reported a second-quarter attributable net income of P538.36 million, down 31.2% from a year ago.

The decline comes as the listed mining company recorded a 21.4% drop in gross revenues to P4.93 billion from P4.06 billion previously.

In its regulatory filing, Atlas Mining reported a first-half net income of P802.55 million, lower by 60% than the P2 billion registered a year earlier.

Based on its unaudited financial statement, the company posted a 4% increase in gross revenues to P9.62 billion, 3.2% higher than the P9.32 billion recorded in 2022.

According to Atlas Mining, the price of copper metal during the period dropped by 11% to $3.95 per pound from $4.45 per pound a year ago.

Gold prices rose 3.1% to $1,937 per ounce from $1,879 per ounce last year.

Meanwhile, its wholly subsidiary Carmen Copper posted increases in production and shipment during the period.

Gold production stood at 12,925 ounces, up 15%, while copper output rose 17% to 42.71 million pounds.

The subsidiary’s shipments were 6% higher to 155.37. Of this figure, gold shipments by volume rose by 8% to 12,112 ounces while copper metal shipments rose by 9% to 42.37 million pounds.

On Monday, shares in Atlas Mining rose by five centavos or 1.37% to close at P3.70 each. — S.J. Talavera

Cathay United Bank looking to expand in Southeast Asia

ONE of Taiwan’s largest lenders is shifting its business and hiring focus to Southeast Asia as its corporate clients in high-tech and textile manufacturing seek to diversify supply chains away from China amid geopolitical tensions.

Cathay United Bank Co. from 2020 to 2022 boosted headcount in Vietnam by 75% and increased hiring by more than a third in Singapore, according to Benny Miao, the head of Southeast Asia for Taiwan’s second-largest lender by assets which is a part of Cathay Financial Group Holding Co.

The lender’s expansion plans have “literally switched positions” with China, Mr. Miao said in an interview, pointing to Vietnam, Indonesia and Cambodia as focus countries. “We’re looking at where else our customers are going,” he said. “That’s a large component of what’s going to determine what we want to do and how big of an investment we’re going to make in each of these relative markets.”

The moves come as suppliers in Asia are under pressure to diversify production lines away from China — the “world factory” home to the majority of manufacturing capacity for everything from sneakers to smartphones. The shift emerged during the US-China trade war in 2018, and has intensified in the aftermath of COVID-19 and increased geopolitical wrangling.

“Economically speaking, China is still a market,” Mr. Miao said. “But more and more attention now is focused elsewhere.”

Taiwanese companies, traditionally among the biggest investors in China, have also been pulling back because of increased competition and rising labor costs. More recently, manufacturers are moving out because their customers are asking for diversification away from China, which is accelerating the shift, said Mr. Miao. 

“A lot of their buyers are either European or American, so they’re giving them instructions that say, ‘I need you to do plus one,’” he said, referring to the business strategy of avoiding only investing in China. “I think that’s what’s really driving it.”

Cathay’s moves are in tandem with a measurable shift away from China by Taiwanese banks, which have slashed their exposure to the world’s second-largest economy to the lowest level in at least a decade. Total lending, investments and interbank transactions in China by Taiwanese banks fell 18% in the first quarter of 2023.

More broadly, Taiwan’s companies cut new investments in China by 14% in 2022 from a year earlier. Investments to Southeast Asia, on the other hand, have grown to nearly half of Taiwan’s total foreign investments, according to a report from the Ministry of Economic Affairs.

Cathay Financial, the holding company for Cathay United Bank, reported a drop in first quarter profits due to increased foreign currency hedging costs and lower investment gains, according to a company presentation. Profitability in the banking arm, however, rose by 33% to NT$9.2 billion ($294 million) compared with the same period last year.

Most of Cathay’s business in Southeast Asia is focused on corporate banking, according to Mr. Miao. For its business clients, the bank provides services such as financial registrations, local government engagement and legal consultation.

Other banks are also trying to take advantage of capital flows between China and Southeast Asia. Singapore’s second-largest lender, Oversea-Chinese Banking Corp., recently released a target to boost revenue from business between Greater China and Southeast Asia. — Bloomberg

Meralco nears completion of substation in Vermosa

MANILA ELECTRIC Co. (Meralco) is nearing completion of its 115 kilovolt (kV)-34.5 kV substation within the Vermosa estate in Imus, Cavite.

The Meralco substation will house three transformer banks with a combined capacity of 249 megavolt amperes to accommodate new and additional load applications in the area.

At the same time, Ayala Land, Inc. recently gave the Philippine Red Cross  a lot in Vermosa for its second headquarters in Cavite.

The Vermosa Red Cross headquarters will house the first-ever blood center in Cavite that can do complete collection, testing, processing and dispensing.

Ayala Land, Inc. is also planning to launch a new residential district in the northern part of Vermosa before the end of the year. A new logistics facility will be launched in 2024.

Vermosa is expanding its commercial offerings with its latest phase of lots in Campus Town.

Groundbreaking for the community parish, the Church of St. Sebastian, is scheduled in 2024.

The Sports Play Park is set to open in the second quarter of 2024.

“Vermosa is the gateway to all that dynamism in this area of Cavite and is itself the growth center in this part of the south. Easily accessible from Manila, Makati, Alabang and Tagaytay through various roadways and approaches… (Vermosa) opens its arms to residents, locators and visitors to experience suburban charm, first class amenities, robust business opportunities, and state-of-the-art facilities to pursue wellness and an active lifestyle,” Vermosa Estate Head Cris Zuluaga said in a statement.

Vermosa is a 752-hectare mixed use development along Daang Hari Road corner Vermosa Boulevard in Imus, Cavite.

Entertainment News (07/25/23)

The Pen holds 47th anniversary dinner concert

THE PENINSULA Manila celebrates its 47th anniversary with Meet Me at the Pen: A Symphony of Talent Unveiled, featuring the talents of National Artist for Music Ryan Cayabyab, singer Nicole Asencio, and the Ryan Cayabyab Singers. To showcase Philippine artistry, the dinner concert on Aug. 10, Friday, will also highlight commissioned pieces by emerging visual artists Mano Gonzales and Alaga. The dinner will start at 7 p.m. and the concert at 7:15 p.m. Confirmed seating will be provided at The Lobby at P8,800 per person for the five-course dinner and concert. The price includes VAT, a 10% service charge, and applicable local taxes. For inquiries or reservations, call 8887-2888, extension 6694 (Restaurant Reservations), or e-mail DiningPMN@peninsula.com.

Newport World Resorts marks Linggo ng Musikang Pilipino

NEWPORT WORLD RESORTS celebrates Linggo ng Musikang Pilipino by focusing the spotlight on original Pilipino music (OPM), with support from the National Commission for Culture and the Arts (NCCA). From rock bands to high-energy soloists, Newport World Resorts presents a roster of local artists on the stages of Bar 360, The Grand Bar and Lounge, and El Calle Food and Music Hall. There is nothing quite like listening to homegrown music in The Grand Bar and Lounge. On Tuesday, spend an evening with legendary OPM band Side A at 9:15 p.m.; while Wednesday has MYMP at 9:30 p.m.; Thursday sees Hyperbeat at 9:15 p.m.; Spirit at Friday, 9:15 p.m.; Saturdays with Soul Republiq at 8 p.m. and Red Rocks at 10:30 p.m.; and Judith Banal and The Power Play Band wraps up weekend entertainment on Sunday at 9:15 p.m. At The Bar 360 on July 27 at 10:45 p.m., Mitoy Yonting and The Draybers will perform covers of classic rock hits. On Thursday night, Oeuvre performs at 8:30 p.m. while DJ Edz Mabini pumps up the night at 1 a.m. On Friday, Tirso Cruz IV and The TAC 4 are slated to perform at 9 p.m., Jo & The Holy Notes at 11:15 p.m., and DJ Eera Amor at 1:15 a.m. On Saturday, it is the turn of Switchback at 9 p.m., In Heat at 11:15 p.m., and DJ Thea Moore at 1:15 a.m. On Sunday, Zyncxation center stage at 8:15 p.m. followed by DJ Miles Mallow at 11:15 p.m. El Calle Food and Music Hall will see Rox Puno on stage on July 27, 10:15 p.m.; Dom Rodriguez serenades on Thursday, 8 p.m.; and Musica does some soulful Friday jamming at 8 p.m., followed by Julia Serad at 10:15 p.m.; Saturday sees Junno and Cass set the mood at 8 p.m. and 10:15 p.m.; and the week wraps up on Sunday with Karaoke Night at 7 p.m. For more information on Linggo ng Musikang Pilipino shows, visit www.newportworldresorts.com.

PhilPop Songwriting Fest announces top 12 finalists

THE PHILPOP Himig Handog Songwriting Festival, a collaborative project by songwriting institutions PhilPop and Himig Handog, kicked off with a Digicamp series that was designed to develop the skillset of aspiring participants in the fields of songwriting, music arrangement and recording, branding, marketing, career development, and intellectual property. After the two-month workshop-based training and songwriting class, the songwriting competition has selected 12 of the best entries that will advance to the main competition. The finalists are: Rinz Ruiz, “Papahiram” (Luzon/Bulacan); Francis Contemplacion, “ATM” (Luzon/Laguna); Tiara Cinco, “Wag Paglaruan” (Metro Manila); Kevin Yadao, “Ghostwriter” (Metro Manila); Rob Angeles, “MHWG” (Metro Manila); Geca Morales, “Langit Lupa” (Metro Manila); Alvin Serrito, “Kurba”  (Metro Manila); Shantel Lapatha, “Tulala” (Visayas /Bacolod); Relden Campanilla, “Dili Nalang” (Visayas/Cebu); Jimmy Grajo, “Salamat (Nga Wala Na Ta)” (Visayas/Cebu); Keith Quito, “Buhi” (Visayas /Bohol); and, Maric Gavino, “Taliwala” (Mindanao/Davao).

Bruno Major concert tour includes Manila

BRUNO MAJOR has unveiled his latest single, “The Show Must Go On,” which is the final offering from his upcoming album Columbo via Harbour Artists & Music / AWAL Recording. Previously released were “A Strange Kind Of Beautiful,” “Tell Her,” the album’s title track “Columbo,” and his first new track in three years, “We Were Never Really Friends.” Columbo, the highly anticipated follow-up to 2020’s To Let A Good Thing Die, is a 12-track body of work that weaves the autobiographical with the observational. Marking a return to the stage after his 2020 tour was canceled due to COVID, Bruno Major will kick off an expansive headlining tour in Tokyo on Aug. 8. He will make his way through major cities in Southeast Asia, including his top-10 streaming countries like the Philippines, Indonesia, and Malaysia, before heading to Denver, Colorado to start the North American leg of the tour on Sept. 4. The upcoming Southeast Asia tour dates are: Aug. 13, Voice Space, Bangkok, Thailand; Aug. 15, New Frontier Theater, quezon City, Metro Manila, Philippines; Aug. 17, Capitol Theater, Singapore (sold out); Aug. 19, GBK Basketball Hal, Jakarta, Indonesia (sold out); and Aug. 20, Zepp Kuala Lumpur, Kuala Lumpur, Malaysia.

Barbie The Album is now out

ATLANTIC Records has officially unveiled Barbie The Album, the musical companion to the film Barbie, starring Margot Robbie and Ryan Gosling as Barbie and Ken and distributed by Warner Bros. Pictures. The star-studded soundtrack is now available globally at all retailers and streaming services, featuring the recently announced track, “Man I Am,” from multi-platinum, Grammy, Brit, Golden Globe, and Academy Award-winning artist, Sam Smith. The synth pop track was produced by the soundtrack’s executive producer, Mark Ronson alongside Ricky Reed and is written from the perspective of Ken. Further album highlights include Barbie star Ryan Gosling’scene-stealing original song, “I’m Just Ken,” performed as his character, plus unreleased tracks from a lineup of global superstars including Lizzo, Tame Impala, The Kid Laroi, HAIM, Khalid, Dominic Fike, Ava Max and GAYLE.

Lego celebrates 100 years of Disney

THE LEGO Group has announced its partnership with Disney to commemorate Disney’s 100 Years Celebration. “Disney is part of millions of people’s childhood and collective memory. Celebrating its 100th year, the Lego Group wants to bring back the joy everyone experienced watching their favorite Disney movies and shows through the brand’s belief in endless possibilities,” says Cris Opeña, Senior Brand Manager for Ban Kee Trading, The Lego Group Philippines distributor. “It’s a perfect mix of magic and modern creativity,” he adds. Ongoing until Aug. 15, Lego and Disney aficionados alike will have the opportunity to receive an exclusive Lego Disney 100 Year Celebration set. With a minimum spend of P6,000 on any Lego Disney playset from selected themes, Lego fans can get their hands on the exclusive 40600 LEGO Disney 100 Years Celebration set for free. This limited-edition set pays tribute to a century of enchanting stories and beloved characters that have captured the hearts of millions around the world. For every purchase worth P5,000 of any Lego Disney set, customers will have the chance to win a one-of-a-kind Disney Collectible figure. Throughout July, selected Toy Kingdom and Toys R Us stores will host special in-store activities. Check the schedules and locations on the Lego Certified Store’s Facebook and Instagram pages.

Matteo Guidicelli is newest anti-piracy ambassador

THE INTELLECTUAL Property Office of the Philippines (IPOPHL) has chosen award-winning artist, singer, host, triathlete and Philippine Army reservist Matteo Guidicelli as the newest face of IPOPHL’s anti-piracy campaign. “With a credible and trustworthy figure at the forefront of our anti-piracy advocacy, we hope to cut through to a larger population of Filipinos, especially the youth. We want more Filipinos to see more clearly how piracy is robbing the creative economy of revenues and the government of much-needed taxes,” Director General Rowel S. Barba said. Mr. Guidicelli and his manager, Viva Artists Agency, Inc., have committed to creating video campaigns to show the importance of respecting others’ intellectual property (IP) rights. IPOPHL, on the other hand, commits to conduct a free learning event designed to help the new ambassador, Viva and other select piracy-affected industries in protecting their IP assets more effectively. IPOPHL’s newest anti-piracy project is co-funded by the World Intellectual Property Organization (WIPO) to address awareness gaps identified in a survey conducted by IPOPHL and WIPO in 2021. The Baseline Study on IP Awareness found that out of five age groups, it was the youngest that patronized pirated digital content the most. “The worst and most challenging part sa pagkalat ng piracy is pati ang values ng ating kabataan napipirata (The worst and most challenging part in the proliferation of piracy is that the values of our youth are also being pirated off),” said Mr. Barba. Out of 1,000 respondents, 35%, 31%, and 28% of those who respectively downloaded free music, video games and movies online and 14% of those who read free ebooks come from the youngest group segment, with ages 18 to 19. The group segment also sources free copies from their friends and Youtube. According to the survey, some young respondents cited the ease in accessing free content compared to buying from authorized sellers, and that their peers do it anyway. The baseline survey also assessed IPOPHL’s current awareness campaign online and found its previous content linked to a celebrity ambassador as having the most visibility and “potential to change behavior.”

How to end Hollywood actors and writers’ strikes

GABE-UNSPLASH

THE STRIKES involving Hollywood actors and writers entail many distinct issues, but one of the most controversial concerns the rights to artificial intelligence (AI) likenesses by individual human beings. The studios are requesting the right to offer contracts that allow them to scan the bodies, voices, and other features of individual actors, including extras, and then hold the rights to the AI likenesses in perpetuity. The actors are upset for good reason.

First, think through how this market will work. Most actors don’t become famous, and so their likenesses end up being worth nothing. That means studios can’t afford to offer any more than a small sum for the likeness rights on such a large number of initial acting contracts. It also means that if the studios get their way, potential stars end up significantly underpaid for selling their likenesses before they have become famous.

Imagine being Harrison Ford and working as an extra early in your career. You — if I may time splice just a bit — could have lost the rights to your AI likeness forever. As technology evolves, future AI likenesses could be incorporated into new Raiders of the Lost Ark and Star Wars movies, whether the human Harrison Ford approved or not.

I find this unfair, but what is a better solution? I suggest that the eventual strike settlement forbid studios from buying the rights to AI likenesses for more than a single film or project. Or, as a compromise, the contract could be for some limited number of projects, but not in perpetuity. Actors thus would remain in long-run control of their AI likenesses, yet if they wanted to keep selling those likenesses — project by project — they could do so.

Note that this proposal is along some dimensions quite inegalitarian. That is, future stars would end up much richer and the large numbers of actors who fail would end up slightly poorer. They would not be paid small upfront sums for rights that would quickly become worthless.

We can feel better about that trade-off if we consider the interests of the fans. Many people (myself included) enjoy the image and thought of Han Solo (one of Ford’s most famous roles), whether or not they are paying money in a given year to see the Star Wars movies. Would those fans prefer that Ford or some movie studio be in control of the Han Solo image?

The answer may depend on the wisdom and aesthetic taste of the actor in question, but overall I would opt for actor control of the AI likenesses. At least some actors will care about the quality of the projects their likenesses are attached to, rather than just seeking to maximize profit from deploying the likenesses. So, if the question is whether an AI likeness of Han Solo can greet visitors at the entrance to a Disney ride, Disney might say yes but Ford might say no, or at least he would have that choice.

Having celebrity images remain scarce rather than overexposed is a good aesthetic decision, even if it keeps some market power in the hands of Ford, his eventual heirs and future movie stars more generally. With these additional restraints on AI likenesses, we will likely end up with a more exciting, less tired, and less overexposed kind of celebrity culture, and I hope that leads to broader social benefits, if only by cultivating better taste among fans and viewers.

Such a proposal is not so unusual when viewed in a broader context. Standard labor contracts don’t allow you to sell your labor to your boss in perpetuity, as you always retain the right to quit. Few people consider that limitation on contracting objectionable, as it protects human liberty against some hasty or ill-conceived decisions, such as selling yourself into slavery. If your AI likeness ends up being such a good substitute for your physical being, as it seems our current technological track may bring, why should we not consider similar restrictions on the contracts for the AI likeness?

My proposal is not without problems. For instance, if a studio finds it difficult to buy the AI likenesses of stars, it may build composite AI animations not traceable to any single star and market those likenesses into star candidacy. It could be that all stars (and our culture) end up worse off as a result. Or what if the studios approach non-unionized YouTube performers and seek to make them bigger stars and thereby capture their AI likenesses in perpetuity, again putting the actors at a disadvantage?

A new world of AI is arriving rapidly, and I doubt if we can arrange all of our affairs so that bargaining power falls out exactly as we might want. Nonetheless, on this issue I will be happy if the strike awards victory to the actors.

BLOOMBERG OPINION

Toyota Philippines to launch Yaris Cross as it expands hybrid vehicle offering

REUTERS

TOYOTA Motor Philippines Corp. (TMP) is set to launch the all-new Yaris Cross on Aug. 4 to expand its gas and hybrid vehicle offerings in the domestic market.

In a statement on Monday, TMP said the vehicle will feature three variants consisting of a hybrid electric vehicle (HEV) priced at P1.598 million, and two gas variants, the G and the V, priced at P1.199 million and P1.306 million, respectively.

The new offering will add to TMP’s local HEV lineup consisting of the Camry, Corolla Altis, Corolla Cross, RAV4, and Zenix.

“We believe that the upcoming introduction of the all-new Yaris Cross will further boost the current evolving era of electrified mobility in the Philippines,” TMP First Vice-President for Vehicle Sales Operations Danny Cruz said.

He added that the HEV variant further strengthens the company’s lineup of electrified vehicles, giving customers “an easier route to shift to high-quality and reliable electrified mobility technology.” 

The vehicle will be launched in Bonifacio Global City and across local dealerships. 

“The all-new Yaris Cross is expected to make electrified vehicle adoption more practical and accessible to customers who are searching for a more sustainable mobility option that’s fit for their needs, passions, and lifestyle,” TMP said. — Revin Mikhael D. Ochave

How does the severity of humanitarian crisis in the Philippines compare with other countries?

The Philippines scored 2.5 (out of 5) in the June 2023 iteration of the INFORM (Index for Risk Management) Severity Index and is classified under “medium” INFORM severity category with a “stable” trend in the past three months. The country’s severity score in the first half of the year was driven by the Mindanao conflict and Typhoon Paeng (international name: Nalgae), latest data showed. The index is a composite indicator designed to assess the severity of humanitarian crises against a common scale using various data from publicly available sources.

 

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