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Wilcon Depot targets to open 100th store before yearend

LISTED construction supplies retailer Wilcon Depot, Inc. is aiming to reach 100 stores before the end of the year, a company official said.

The company opened its 91st store on Jan. 12 in Morong, Rizal, Wilcon’s Chief Operating Officer and Senior Executive Vice-President Rosemarie B. Ong said at the inaugural meeting of the Management Association of the Philippines last week.

“Barring any unforeseen events [we reach 100 stores before yearend]; we are trying to fast-track it,” she said.

“We are targeting to open eight to ten stores a year,” she added.

She also discussed Wilcon’s move to include farming and agricultural products in its offerings, supporting the company’s expansion beyond Metro Manila.

“We’re going outside Metro Manila, and then we have to address that market for them to make it accessible, especially the agricultural tools that they will use,” she said.

“It’s really more on construction for homes. But then we have to get into the market because most of the areas that we go to are agricultural areas. So to make it accessible for the farmers, especially for those in agriculture, we’re trying to expand our category into that also,” she added.  

On Jan. 17, Wilcon’s board approved the amendment to its articles of incorporation to include agricultural tools and equipment, pesticides, and fertilizers to its primary purpose. It will add farming and agricultural products to the company’s product line.  

The amendment is set to be presented to the company’s stockholders for approval during the annual stockholders meeting, with no scheduled date yet.

Wilcon Depot’s shares rose by five centavos or 0.23% to P22 apiece on Monday. — Revin Mikhael D. Ochave 

Rewind breaks PHL domestic box-office record

REWIND is now the highest-grossing Filipino film of all time, nearly a month since its premiere at the Metro Manila Film Festival (MMFF) on Dec. 25, 2023.

The romance-drama has grossed P815 million in the domestic box-office, said Star Cinema on Jan. 17.

It took the top spot held by the 2019 film Hello, Love, Goodbye, starring Kathryn Bernardo and Alden Richards and directed by Cathy Garcia-Molina, which earned P691 million in domestic sales.

The announcement was made on the social media posts of Star Cinema, which produced both films.

Although the MMFF has ended its run, Rewind is still showing in many cinemas nationwide. It will also be screened at the inaugural Manila International Film Festival (MIFF) from Jan. 29 to Feb. 2 in Los Angeles, California, USA.

Rewind tells the story of a married couple, John and Mary. After Mary dies in a car accident, John gets a chance to “rewind” to the day before the accident.

The film is directed by Mae Cruz-Alviar and stars real-life celebrity couple Marian Rivera and Dingdong Dantes in their long-awaited comeback reunion on the big screen.

However, counting its worldwide gross, Hello, Love, Goodbye remains the country’s highest-grossing film. It took P880 million in global ticket sales in 2019, while Rewind only has a total of P845 million — so far.

Given its upcoming MIFF run in Los Angeles and its ongoing run in the US and Canada, it may yet overtake the 2019 film.

During the Rewind thanksgiving party, Mr. Dantes said that the film made such an impact on him and his wife that they felt fulfilled when it was completed.

“We prayed that, hopefully, through this film and also through the nine other beautiful films [in the MMFF lineup], our industry can come alive again,” Mr. Dantes said in the vernacular during his speech at the party, which was uploaded on the Star Cinema YouTube page on Jan. 17. — Brontë H. Lacsamana

Phoenix Petroleum halts importation of diesel, gasoline

PHOENIXFUELS.PH

PHOENIX Petroleum, Inc. has temporarily halted the importation of diesel and gasoline since March last year, the listed oil company said on Monday.

In a clarification, the company told the stock exchange that it prefers buying domestic fuels over imported ones.

“This way, it allows the company to manage its resources as well as reduce and manage risks due to inventory losses. Nonetheless, should trading conditions change, the company will evaluate its supply approach and strategy,” Phoenix said.

The company incurred a net loss of P3.68 billion in the first nine months of 2023, a wider figure compared to the P1.07-billion net loss in 2022.

Revenues declined by 57.2% to P42.8 billion from the previous P99.92 billion.

The company attributed the decline to a 46.8% decrease in the total volume sold, which amounted to 1,156 million liters, compared to the 2,177 million liters in the previous year.

The company is considering entering into a sale-and-leaseback agreement with BDO Unibank, Inc. to restructure its debts, it said during its annual stockholders meeting in October.

The proposed deal involves some of the company’s assets such as terminals, depots, and retail stations, which the company could repurchase within three to five years from the time of sale.

Shares of the company declined by 20 centavos or 4.17% to close at P4.60 apiece. — Sheldeen Joy Talavera

Relevant leadership for a progressive Philippines

FREEPIK

(This was lifted from the Inaugural Address delivered on Jan. 18 by the author as the 2024 President of the Management Association of the Philippines or MAP.)

A few years ago, I was invited by the big blue school in Katipunan to speak at the honors ceremony where the best and the brightest were being recognized. I decided to ask the honorees if success was their ultimate objective. The young, energetic, and idealistic minds naturally responded positively.

I then ventured to suggest to them, wouldn’t being significant be a better objective? Many years since then, being more aware of the challenges of the times, I realized that being significant meant being relevant. I reasoned to them, one can be successful but not relevant, but one who is relevant is always successful. I explained to the young minds that everyone aspires to leave behind a mark of one’s lifetime, a legacy of one’s relevance takes center stage in depth and meaning.

The dictionary meaning of “relevant” is: connected or appropriate to the situation, the period, the activity, or the aspiration. “Relevant” comes from the Latin word “relevare,” which means “raising up.” By being relevant, we not only raise up ourselves, but more importantly, we raise others up. I believe the present call for all of us, our organizations, our businesses is to be relevant to the times, to the community, to the nation, and to the environment.

In navigating the complexities of an ever-evolving domestic and global landscape, embracing relevant leadership in business and government is not just an option but now a necessity and a continuous journey towards a progressive future.

As in the past, our activities this year will be guided by a theme. For 2024, the MAP Board of Governors has chosen the theme “Relevant Leadership for a Progressive Philippines.”

In line with this theme, MAP will pursue five thrusts:

1. Member Engagement,

2. Country Competitiveness,

3. ESG and Shared Prosperity,

4. Innovation, Technology and Digitalization, and,

5. Investing in the Youth.

MEMBER ENGAGEMENT
We will ensure the relevance of the topics and issues to be taken on in the MAP general membership meetings (GMMs) and other activities. The objective is to engage the membership in a more meaningful way. The programs will be executed to be interactive and engaging, discussing relevant topics and developments so as to benefit the members, their companies and the economy.

We will endeavor to have topics and resource persons who can stimulate and engage with our members.

We will expand outside Metro Manila to the key cities where we can engage new members and, through technology, enable their virtual participation in our various activities. This will be our way of helping expand business and economic development benefits to the rest of the country.

COUNTRY COMPETITIVENESS
Recent economic realities, together with globalization, highlight the need to enhance our country’s competitiveness, as all the other economies are doing.

To help improve the global competitiveness of the Philippines, we will push for vital policy reforms, through executive or legislative action, that will eliminate corruption, improve the ease of doing business, ensure food security through agricultural productivity, and sustain an enabling business environment for local and foreign investors. The aspiration is to attract greater and more diverse job-creating investments for more Filipinos to be gainfully employed.

ESG AND SHARED PROSPERITY
We need to respond to the reality of heightened economic inequality and the adverse long-term effects thereof. For our thrust on ESG and Shared Prosperity, we will push for the discourse and actions to encourage our members’ companies towards shared economic prosperity for all, environment and climate action, and principled business practices and governance.

INNOVATION, TECHNOLOGY, AND DIGITIZATION
With the recent technological developments that threaten jobs and the present workforce, we encourage action to prepare for the transitions. It is important that we encourage proper technology adoption, innovation, and digitalization to address these evolutionary challenges.

We also see digitalization as the key to improving the quality of service for the Filipinos and addressing corruption, both in the private and the public sectors.

INVESTING IN THE YOUTH
With increased global competitive realities, the development of competencies and well-being of the Filipino, especially the youth, is now more critical.

We will continue the Campaign against Malnutrition and Child Stunting or CAMACS and we will advocate for government and the private sector to pursue relevant education, health and wellness programs, particularly for the youth. The objective is for them to become productive members of society, with competitive skills and capacity that will ensure a progressive economy of the future.

MAP MEMBERS’ TOP SEVEN CONCERNS FOR 2024
We will certainly address the following Top 7 concerns of MAP members for 2024 which were generated through a survey in the 4th quarter of last year:

1. Corruption,

2. Ease of Doing Business,

3. Economy,

4. Agriculture,

5. Cybersecurity,

6. Education, and,

7. Climate Change.

Please note that all these top 7 concerns will be directly addressed by the five thrusts that we have explained.

WORKING WITH MAP COMMITTEES UNDER 5 GROUPS
In general, we will build on MAP’s current activities that benefit our members and other stakeholders.

While focusing on the five main thrusts, we will continue to pursue other advocacies and programs to adapt to dynamic changes in the domestic and global landscape.

Your 2024 Board will work with the 21 MAP committees which shall be grouped according to our five main thrusts for 2024.

1. The Member Engagement group will be headed by Noel Bonoan and myself.

2. The Country Competitiveness group will be headed by Corrie Purisima and myself.

3. The ESG and Shared Prosperity group will be led by Rex Drilon II and Marts Sazon.

4. The Innovation, Technology and Digitalization group will be handled by Marts Sazon and Al Panlilio.

5. The group on Investing in the Youth will be handled by Karen Batungbacal, Corrie Purisima and Al Panlilio.

We have listened and considered your input in our planning and identification of the five main thrusts and activities. We would appreciate your continued input and suggestions, please let me or the MAP Secretariat know.

We will be relying on the valuable support and active participation of every MAP member, particularly the MAP Governors and all the Committee Chairs and Vice-Chairs.

Years ago in that Katipunan event, the Jesuits and Faculty liked what I said as they told me so. I wondered though, how many of the best and the brightest listening agreed with me? I would have been very happy if some were even open to the consideration that it’s not all about personal success.

Today, here we have a roomful of very successful and significant individuals. It is a privilege, but much more a challenge, to be serving this prestigious group of women and men, full of talent, skill, and capability, but more so committed to do good, to do what is right for a better nation.

In addition to all the successes and significance here present, may we invite all of you to join us. Let us all share in the aspiration to be relevant leaders that are committed to a better future for the generations to come.

Your support will be very crucial to achieving our aspirations.

Thank you! Mabuhay ang MAP at mabuhay kayong lahat!!

 

Rene D. Almendras is the president and CEO of AC Logistic Holding Corp.

map@map.org.ph

almendras.rd@ayala.com

Nimona goes from underdog to surprise animation awards contender

LOS ANGELES — After a rocky road to the screen, Nimona has emerged as an unexpected animated film awards contender after receiving the most nominations for the genre’s 2024 Annie Awards.

“It’s a dream. What a Cinderella story, a phoenix rising from the ashes,” said co-director Troy Quane of the nine Annie nods for Nimona, now streaming on Netflix.

“The studio got shut down. The movie was dead and then not only has it come back to life — we were just happy for it to get out into the world — but now here we are on the red carpet, getting all these noms for the Annies, standing shoulder to shoulder with giants and legends of the industry,” Mr. Quane said.

In early 2021, Disney shut down Blue Sky Studios and its film Nimona was subsequently canceled.

But the filmmakers never lost hope and persevered until the project was completed.

Like its gutsy main character Nimona, the movie defied the odds and was later picked up by Annapurna Pictures, and Netflix acquired its global distribution rights and premiered the film in June 2023.

“Our credits are 14 and a half minutes long because of how many people it took to get this movie to the screen,” producer Karen Ryan said.

The science-fantasy film, thought to be one of the underdogs of the animation race this year, was nominated for top Annie awards including best feature and best director.

Directed by Mr. Quane and Nick Bruno and based on a 2015 graphic novel of the same name by ND Stevenson, Nimona follows the character Ballister Boldheart, a former knight who was kicked out of a medieval-influenced futuristic kingdom after being accused of murdering the ruler, Queen Valerin.

When Ballister is pursued by authorities, including his boyfriend and fellow knight Ambrosius Goldenloin, he crosses paths with the shapeshifter Nimona, a spirited teen who insists on becoming his sidekick.

The voice cast includes Chloe Grace Moretz as Nimona, Riz Ahmed as Ballister and Eugene Lee Yang as Ambrosius.

The movie highlights diversity, including LGBTQ+ characters.

“Yeah, I think it was taking a cue from that character,” Mr. Quane said. “Just being unapologetic in the storytelling, we went with the movie to not shy away from the LGBTQ+ themes.”

For him, it was vital for the film to celebrate underrepresented characters, Mr. Quane said.

Experts polled by the Gold Derby website have Nimona listed as the fifth leading nomination contender for the Oscars behind such favorites as Studio Ghibli’s The Boy and the Heron and Pixar’s Elemental.

But given its history, Nimona may once again defy the odds when nominations are announced on Jan. 23. — Reuters

Entertainment News (01/23/24)

Aurora Music Festival tickets now on sale

TICKETS are now on sale for the Aurora Music Festival which will be held at Clark Global City in Pampanga from April 6 to 7. The event will include live music and a display of more than 20 hot air balloons. The acts on day one will be SB19, Moira Dela Torre, December Avenue, Juan Karlos, Adie, and Cup of Joe. Day two will have Rico Blanco, Parokya ni Edgar, Kamikazee, Orange & Lemons, Itchyworms, and Andrew E. Produced by Epic Events, Eggstop, and Mr. Macchiato, the festival is a celebration of the OPM (Original Pilipino Music) scene. Tickets are now on sale via 
https://ticket.epiceventsph.com/, all SM Tickets outlets, and Shopee.

Four Filipino films to be shown at Sundance

AMONG the 92 films at the Sundance Film Festival, which runs from Jan. 18 to 28 in Salt Lake City and Park City in Utah, USA, are four works by Filipinos. These are the documentary And So It Begins by Ramona Diaz, and the short films Dream Creep by Carlos A.F. Lopez, Thirstygirl by Alexadra Qin, and Bold Eagle by Whammy Alcazaren. “Each of these shorts delves into subject matters that aren’t typically discussed at the family dinner table — sex addiction, the pursuit of love and intimacy in the digital age, and the confrontation of both internal and external horrors. While these topics may radiate a certain seductive allure, beneath the surface, there exists a profound and delicate exploration of the human experience and challenges of navigating the world,” said Sundance Film Festival’s short film programmer Irene Suico Soriano.

Free screening of films on gaming history

A COLLECTION of critically acclaimed and award-winning documentaries on the history of gaming will be screened for free by the Museum of Contemporary and Design (MCAD) of the De La Salle-College of Saint Benilde. The selection provides the viewers with a 360-perspective of the video game scene, from its humble beginnings and ending with some of the key purveyors in the community. It touches upon the conflict of tradition versus capitalism between industry giants. It likewise takes the audience into the ins and outs of game development, commercialization, and its impact on the personal lives of its avid users. The films are: The Lost Arcade (2015) by Kurt Vincent about the legacy of the Chinatown Fair Arcade on the competitive fighting game community in New York City (it screens on Jan. 24); Console Wars (2020) by director Jonah Tullis, based on the 2014 novel of the same title by Blake J. Harris, it is about the 1990s rift between Sega and Nintendo (Jan. 25); Indie Games: The Movie (2012) by James Swirsky and Lisanne Pajot introduces the audience into the behind-the-scenes of Braid, Super Meat Boy, and Fez (Jan. 26); Free to Play (2014) looks at the lives of three professional Defense of the Ancients (DotA) players in the lucrative e-sports tournament (Jan. 27). The screening is the year’s first offering for MCAD x Moving Image, a program that presents a series of hybrid documentaries, video essays, narrative experiments, filmed performances, and archival audiovisions. It is free and open to the public. It will be held online via Zoom at noon on the scheduled dates. Interested participants may register through http://tinyurl.com/nhcza936. For more information, visit https://facebook.com/MCADManila.

Gloc-9 drops new single

ASIDE from performing at different gigs and festivals, Gloc-9 started his 2024 strong with a new single, “Labandero.” The track weaves a narrative of life’s challenges and the unwavering spirit required to overcome them. The song’s hooks and rap verses deliver a message of hope and determination. It is part of the recent OPM Rising playlist on Spotify and is now available on all digital platforms.

Animated comedy Migration now in cinemas

THE FILM Migration is animation company Illumination’s latest original comedy. It follows the Mallards, a family of ducks, whose father Mack (voiced by Kumail Nanjiani), is content to keep his family safe paddling around their New England pond forever, while mother Pam (Elizabeth Banks) prefers to shake things up and show their kids the world. They embark on a family trip, via New York City, to tropical Jamaica. Migration, from Universal Pictures International, is now showing nationwide.

Dhruv releases new single

SINGER-songwriter and producer Dhruv has dropped “Tragedy,” the new single off his debut album which is expected to be released later this year. The piano-led track is co-written by Dhruv and produced by JT Daly, and it chronicles the somber feeling of being on the losing end of a breakup after a failed attempt of reconciling with an ex. Conceptualized by Dhruv and filmed throughout London, the accompanying music video, directed by AboveGround, has Dhruv act out his own version of a tragedy as he searches for answers but instead finds bad luck at every turn. “Tragedy” is out now on all digital music platforms worldwide via Sony Music Entertainment.

Tokyo Revengers 2 now showing

WITH intense action and physical sequences, Tokyo Revengers 2: Bloody Halloween – Destiny showcases a conflict between the Tokyo Manji gang and the Valhalla gang. It is based on the best-selling manga series of the same name by Ken Wakui, and stars Takumi Kitamura as the driven lead Takemichi Hanagaki. According to action director Yuta Morokaji, the emotions of the characters play against the sharpness of the actions, with much of it filmed on a large junkyard set. The film is out in Philippine cinemas now.

Century Properties Group to launch 2 projects in first half 

CENTURY Properties Group (CPG) is set to launch two projects in the first half of the year as part of its expansion strategy, the company announced on Monday.

The company plans to launch projects under its premium in-city line, with one located in Metro Manila and the other in Pampanga, the listed property developer said in a regulatory filing.

The Hotel Residences at Acqua development in Mandaluyong City is scheduled for launch in the first quarter, the company said.

The first mid-rise residential project, consisting of 12 stories, at Azure North in San Fernando, Pampanga, is also scheduled for launch in the first half, it added.

According to the company, the Hotel Residences at Acqua will offer move-in ready, hotel-fitted, and fully furnished suits. 

Meanwhile, the first tower of the residential development at Azure North will offer 375 units. It will also have multi-feature water park amenities.

“I think overall, 2024 should be a banner year for the company — better than this year,” CPG President and Chief Executive Officer Jose Marco R. Antonio said in November.

“Our outlook is actually cautiously optimistic. There are many reasons why we believe it’s going to be a good year. Our affordable housing business is growing very rapidly. As you are probably aware, we’ve launched many projects,” he added.

On Monday, shares of CPG fell by P0.005 or 1.79% to P0.275 apiece. — Revin Mikhael D. Ochave 

Green is in: Regulations influencing sustainable building development in Philippines

KELLY DOROTEO-UNSPLASH

IN THE PHILIPPINES, there are various financial regulations in place that encourage the development of green and sustainable buildings. These regulations incentivize businesses to adopt sustainable business practices and contribute to the country’s efforts to mitigate the impact of climate change.

In the previous Congresses, lawmakers have proposed a measure that would update the country’s Building Code, and mandate the implementation of green building practices in all new buildings and major renovations.

Other government agencies and business organizations have also proposed and enacted green initiatives to assuage the impact of climate change.

The Bangko Sentral ng Pilipinas (BSP) has also implemented sustainable finance regulations that encourage financial institutions to support green initiatives. The BSP’s Sustainable Finance Framework requires banks and financial institutions to integrate environmental and social considerations in their lending, investing, and risk management activities. The framework incentivizes the issuance of green bonds and green loans, which fund projects that have positive environmental impact, such as renewable energy and sustainable infrastructure. This regulation promotes the development of green finance and encourages sustainable investments, which can contribute to the country’s sustainable economic growth.

The Securities and Exchange Commission has issued guidelines on the establishment of Green Bonds and Social Bonds, which promote sustainable and socially responsible investments. These guidelines require issuers to disclose the environmental and social benefits of the bond proceeds and report on the use of proceeds and impact achieved. This regulation encourages the issuance of green bonds and social bonds, which fund projects that have positive environmental and social impacts, such as clean energy, affordable housing, and healthcare. These bonds attract socially responsible investors and promote sustainable development.

The Department of Energy (DoE) also implements financial regulations that encourage the adoption of green and sustainable workspaces. The DoE provides financial incentives, such as tax exemptions, reduced fees, and subsidies, to businesses that use renewable energy sources, such as solar and wind power. This regulation promotes the development of renewable energy, reduces reliance on fossil fuels, and contributes to the country’s efforts to mitigate the impacts of climate change. These incentives make renewable energy more affordable and attractive for businesses, leading to cost savings and environmental benefits.

Moreover, the Philippine Stock Exchange has launched the Sustainability Reporting Guidelines, which require listed companies to disclose their environmental, social, and governance (ESG) practices. This initiative encourages companies to adopt sustainable business practices and provides investors with ESG-related information to make informed investment decisions. The guidelines also promote transparency, accountability, and good governance, which can contribute to the country’s sustainable development.

The implementation of these financial regulations is crucial in promoting the development of green and sustainable buildings. Developers and building owners must embrace sustainable design and create structures that are greener and more efficient. Not only can they take advantage of existing regulations, but also use these to attract tenants that have ESG targets to meet. Moreover, the adoption of green and sustainable workspaces can lead to cost savings to building tenants, job creation, improved reputation, and contribute to the country’s efforts to mitigate the impact of climate change. Different government agencies are working hand in hand to influence greener construction, projects, and investments so that the Philippines can reap the advantages of an ecologically sound tomorrow.

Sustainability should be every Filipino’s responsibility.

 

Daniel Salapong is the associate director for Colliers Philippines.

T-bill yields rise as BSP says rate cuts still far off

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday at higher rates after the Bangko Sentral ng Pilipinas (BSP) said it is unlikely to cut rates this semester.

The Bureau of the Treasury (BTr) raised P15 billion as planned via its offering of T-bills on Monday as total bids reached P34.985 billion or more than twice the amount on the auction block.

Broken down, the Treasury made a full P5-billion award of the 91-day T-bills as tenders for the tenor reached P11.94 billion. The three-month paper was quoted at an average rate of 5.306%, 8 basis points (bps) higher than 5.226% seen last week. Accepted rates ranged from 5.275% to 5.5.35%.

The government raised P5 billion as planned from the 182-day securities as bids for the tenor reached P10.97 billion. The average rate for the six-month T-bill was at 5.766%, up by 8.1 bps from the 5.685% fetched last week, with accepted rates at 5.743% to 5.795%.

Lastly, the BTr borrowed the programmed P5 billion via the 364-day debt paper as demand for the tenor stood at P12.075 billion. The average rate of the one-year T-bill went up by 3.8 bps to 6.037% from the 5.999% quoted last week. Accepted yields were from 6% to 6.075%.

At the secondary market on Monday before the auctions, the 91-, 182-, and 364-day T-bills were quoted at 5.3587%, 5.6655%, and 5.9991%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

T-bill rates rose on Monday after BSP Governor Eli M. Remolona, Jr. said they are unlikely to bring down benchmark interest rates before June, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The higher tender rates today reflected the prevailing market view that the BSP will unlikely cut policy rates earlier this year, as echoed recently by BSP Governor Remolona,” a trader likewise said in an e-mail on Monday.

Mr. Remolona said over the weekend that it is unlikely that the BSP will begin easing policy rates within the first half amid lingering upside risks to inflation.

The Monetary Board raised borrowing costs by 450 bps from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

The BSP expects headline inflation to average 3.7% this year, slower than 6% seen in 2023.

The central bank will hold its first policy meeting for this year on Feb. 15.

On Tuesday, the BTr will auction off P30 billion in fresh 10-year Treasury bonds (T-bonds).

The Treasury plans to raise P195 billion from the domestic market this month, or P75 billion via T-bills and P120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year or P1.39 trillion. — A.M.C. Sy

Capitalism is the answer

VECSTOCK-FREEPIK

I was heartened when President Ferdinand “Bongbong” Marcos, Jr. appointed Joel Consing, Frederick Go, and Francis Tiu Laurel to important posts in government. Agriculture Secretary Francis Tiu Laurel ran his family’s multinational fishery and food business. Former Presidential Adviser and current Maharlika Investment Corp. CEO Joel Consing was Chief Financial Officer in ICTSI and, before that, Aboitiz. Special Presidential Economic Adviser and Cabinet Secretary Frederic Go was CEO of Robinson’s Land Corp.

I told myself that their corporate backgrounds give them the managerial skills for execution, and, more importantly, the private sector, pro-market point of view.

However, I also worry that they might think that they can manage government. That with the right people and the right resources, government can be managed to execute for the public good.

Take agriculture, for example. The Department of Agriculture (DA) is surrounded by the usual suspects who will tell the Secretary that to modernize agriculture, all the government needs to do is invest in more warehouses, farm-to-market roads, cold chain facilities, crop subsidies, etc. More money for agriculture will solve the problem. It’s tempting to think that with the right management skills, this can be done.

But there’s a problem. For one thing, more money is never enough for these usual suspects. For another, they assume that the DA is an efficient and clean bureaucracy. In the time of former Agriculture Secretary Proceso Alcala, he was able to double the DA budget but average agricultural output of 1.2% per annum was far below population growth and even below the average during his predecessor’s term.

And — I have written about it before — a graduate study by Melinda Limlengco, formerly of the University of Nagoya, showed that the effect of the DA on increased agricultural output was insignificant. This means that the DA might as well be abolished, and the country’s agricultural output would remain unaffected.

So, what’s the answer?

Capitalism is the answer. Enable an environment in which the private sector will be the ones to build these warehouses, cold chain facilities, infrastructure, modern and scientifically managed farms, etc. To do that, one has to look at the binding constraints on private investment in agriculture and remove those binding constraints.

This is what Energy Secretary Rafael “Popo” Lotilla has done in the Department of Energy. Instead of the government building renewable energy sources of green power, he revised the IRR (Implementing Rules and Regulations) on the Renewable Energy Law to enable 100% foreign ownership of renewable energy projects. The protectionists and Filipino rent-seekers had previous governments reserve RE (Renewable Energy) projects only for “Filipinos” under the 60/40 rule on the pretext that solar, wind, and ocean are “natural resources.” The Justice department opinion that solar, wind, and ocean are sources of kinetic energy, and not potential energy (as in carbon) and not a depletable natural resource, removed a binding constraint.

What happened since then has been a rush of foreign investment in renewable energy. RE projects account for most of the country’s Bureau of Industry-registered projects.

What about agriculture? What are its binding constraints? Land fragmentation and small-scale agriculture. Protectionism and no incentive to change from traditional methods of agriculture. Overgenerous budgets and high tariffs for low value-added commodities — rice and corn — at the expense of higher value-added crops or agribusinesses like poultry and pork production. High tariffs on rice also hurt labor-intensive manufacturing industries because the high price of rice forces wages up and makes our labor costs uncompetitive.

Capitalism is absent in agriculture. Imports are restricted and market forces aren’t allowed to play with quantitative restrictions and high tariffs on agricultural products. Market forces are also restricted in the land market with no one allowed to own more than five hectares of farmland.

The result is that we have small-scale, traditional peasant agriculture with low output instead of modern capitalist agribusinesses. This desire to protect small farmers from change is akin to protecting candle makers from electric bulbs and kalesa drivers from cars.

This economic model of protectionism and Filipino First has been there for more than 50 years. I hope the new DA Secretary doesn’t double down on this economic model.

If capitalism is the answer, then what about NGCP (National Grid Corp. of the Philippines)? Its private greed has caused delays in the completion of transmission projects. But NGCP is the exception that proves the rule. It’s an example of rent capitalism because it’s a monopoly. It should not have been privatized in the first place. (I support its renationalization or partial renationalization through an investment by the Maharlika Investment Corp.)

The problem of the Philippine economy, in fact, is there’s too much rent capitalism and not enough competitive capitalism.

Look at China. They are building leading-edge electric vehicles on the back of competitive capitalism. Sure, the central government and some of their local governments have investments in car companies but they don’t coddle them. They allow as many as 20 car manufacturers to slug it out in the market to drive innovation. They encourage “creative destruction.” They also allow them to accept foreign capital (Warren Buffet was an early backer of BYD Motors) and even list on the New York Stock Exchange.

We, on the other hand, want to keep out foreign capital. Not only are these ownership restrictions in the Constitution but also law. RA 3018 and PD 194 prohibit foreign investment in the rice and corn sectors. Our procurement laws dictate that government must procure supplies from a Filipino supplier even if he’s 20% more expensive! Thanks to a Constitution that mandates “Filipino First.”

In Forestry, we have shunned capitalism. We have relied on the government to do the planting through a P8-billion Tree Planting Program. No surprise that the Commission on Audit declared the Tree Planting program a failure, marked by huge anomalies. During the recent House hearing on Reforestation, it was revealed by a congressman that people would destroy the trees after a period of time to be given additional government payments for planting.

So, what’s the answer? Capitalism in forestry is the answer, as it is in countries like Finland and Germany, where as much as 70% of the forests are privately owned. There’s a need to remove the barriers to more private investments in forestry.

If I have one piece of advice to give to the economic advisers and the recent appointees to the Cabinet, it is this: let the strong force of competitive capitalism do the job. Promote PPPs. Liberalize as many sectors as possible to foreign investment (except those that are national security related) and promote competition. Free the rural land market. Remove the protectionist barriers to trade and let “creative destruction” play out. Invest more in public goods (education, fair and transparent rules, public data, research and development, etc.) but get government out of the way. To do otherwise is to guarantee failure.

 

Calixto V. Chikiamco is a member of the board of IDEA (Institute for Development and Econometric Analysis).

totivchiki@yahoo.com

Monde Nissin sees strong sales growth

MONDE Nissin Corp. said on Monday that it anticipates a high single-digit year-on-year sales growth for the full year of 2023.

The gross margin is expected to be in line with the 2022 margin, the listed food and beverage manufacturer said in a regulatory filing.  

“The gross margin expansion in Asia-Pacific Branded Food and Beverage (APAC BFB) was offset by the decline in meat alternative gross margin in 2023,” the company noted.

“We expect core net income to grow by mid-teens for the full year 2023,” it added.  

Monde Nissin said that the projection is based on “certain preliminary unaudited financial results for the fourth quarter of fiscal year 2023,” adding that all figures are “approximate due to the preliminary nature of the announcement.”

“I am pleased to share that our preliminary fourth quarter results reflect the continued strength that we saw during the third quarter driven by our APAC BFB business,” Monde Nissin Chief Executive Officer (CEO) Henry Soesanto said.   

“This led to another all-time high revenue for the quarter and for the year,” he added.

According to the company, its APAC BFB business saw a “strong top line growth” both year over year and sequentially during the fourth quarter, which was supported by better performances of the noodles and beverages segments.  

“Our noodles market share improved by 140 basis points (bps) to 67.3% and 380 bps to 67.5% for the past 52-week and 12-week periods as of December 2023, respectively,” it said.

“The fourth quarter sales growth in the domestic business was backed by all-time high volumes, which grew by more than 5% year on year and 2% sequentially,” it added.

“We saw continued margin expansion of over 400 bps year over year in the fourth quarter. Our commodity lock ins for wheat and palm oil until the second quarter and third quarter of 2024, respectively, are lower by a low double-digit percentage compared to the same period last year.”

Monde Nissin also said its meat alternative business is expected to have a single-digit decline for the fourth quarter as it continues to “navigate in a challenging environment.”

“While the United Kingdom retail market has remained weak and continues to affect the top line, we anticipate being at least earnings before interest, taxes, depreciation, and amortization (EBITDA) neutral in the fourth quarter,” it said.

“The annual impairment test in our meat alternative business is ongoing; however, we also believe the family’s financial support will largely cover any potential impairment at the parent level,” the company added.

On Monday, shares of Monde Nissin rose by 15 centavos or 1.84% to P8.30 apiece. — Revin Mikhael D. Ochave

YouTube and Spotify won’t launch Apple Vision Pro apps, joining Netflix

APPLE.COM

GOOGLE’S YouTube and Spotify Technology SA, the world’s most popular video and music services, are joining Netflix, Inc. in steering clear of Apple Inc.’s upcoming mixed-reality headset.

YouTube said in a statement Thursday that it isn’t planning to launch a new app for the Apple Vision Pro, nor will it allow its longstanding iPad application to work on the device — at least, for now. YouTube, like Netflix, is recommending that customers use a web browser if they want to see its content: “YouTube users will be able to use YouTube in Safari on the Vision Pro at launch.”

Spotify also isn’t currently planning a new app for visionOS — the Vision Pro’s operating system — and doesn’t expect to enable its iPad app to run on the device when it launches, according to a person familiar with matter. But the music service will still likely work from a web browser. Bloomberg News reported on Netflix’s decision Wednesday.

The Vision Pro will include access to Apple’s apps for music and podcasts, which compete with Spotify’s offerings. But getting snubbed by Netflix, Spotify, and YouTube means that the most popular streaming apps won’t be available when the headset launches on Feb. 2. Apple has largely marketed the device as a platform for video, games, and other entertainment.

YouTube is a particularly large omission for the product. When Apple’s original iPad launched in 2010, YouTube was one of a handful of apps preinstalled on the tablet. The company didn’t rule out eventually supporting the Vision Pro but said it had “no further plans to share at this time.”

YouTube and Spotify continue to offer popular apps for the iPhone and iPad. And that, theoretically, gave them an easy path toward supporting the Vision Pro. Developers with iPad software in the regular App Store will see those apps appear in the Vision Pro store by default. That means developers have to opt out if they don’t want to participate.

Several other entertainment apps are still participating, including Disney+, Max, Peacock, ESPN, and Amazon Prime Video. Altogether, Apple says the device will support more than 1 million titles in the headset’s App Store. The company began taking preorders for the Vision Pro on Friday.

Apple has touted its $3,499 Vision Pro headset as an entertainment device.

YouTube and Spotify declined to say why they bowed out of supporting the $3,499 device. Spotify doesn’t offer an app on competing headsets, such as Meta Platforms, Inc.’s Quest, though YouTube does. Spotify also has been embroiled in a fight with Apple over App Store policies, but the decision on the Vision Pro isn’t related to that, according to the person familiar, who asked not to be identified because the deliberations are private.

Searches conducted by MacStories on Thursday indicated that other key iPhone and iPad apps, including Meta’s Facebook, Instagram, and WhatsApp, aren’t currently set to work on the Vision Pro either. But that could change by the device’s launch, or those developers could be planning new dedicated versions for visionOS. Meta didn’t immediately respond to a request for comment.

Apple’s executive in charge of the Vision Pro told employees last week that he expects health care, technician training and education to eventually become key areas for the product. The company also is studying corporate applications, Bloomberg News reported Thursday.

The Vision Pro represents Apple’s first major new product category since it began selling smartwatches in 2015. —Bloomberg

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