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Marcos gives cautious economic outlook on El Nino, geopolitical risks

A farmer walks in a dry and cracked paddy field in Quirino province, which was affected by the El Nino weather phenomenon, March 4, 2010. — REUTERS

MANILA – Philippine President Ferdinand Marcos Jr on Friday painted a cautious outlook for his country’s economy given risks stemming from geopolitical tensions and El Nino weather phenomenon.

“While the future looks bright, dark clouds still gather on the horizon, unleashing headwinds that will temper, maybe even damage or trample on our optimistic outlook,” Mr. Marcos said in a press conference.

Mr. Marcos on Thursday announced the appointment of Ralph Recto as his new finance secretary, replacing Benjamin Diokno who is returning to the Bangko Sentral ng Pilipinas, this time as member of the monetary board. Mr. Diokno was former central bank governor.

“He has a true understanding of how the Philippine economy works,” Mr. Marcos said of Mr. Recto, who prior to his appointment was serving as congressman and deputy speaker of the lower house of Congress. — Reuters

Sining Filipina national art competition now open for entries

Submission deadline is until Jan. 31, 2024

In a celebration of art, women empowerment, and the boundless creativity of Filipina artists, BDO Unibank, Inc. and SM Supermalls, in collaboration with the Zonta Club of Makati and Environs, proudly announce the launch of the first-ever all-female national art competition in the Philippines — Sining Filipina.

(L-R): SM Supermalls’ Vice-President for Corporate Marketing Grace Magno, Zonta International Foundation for Women District 17 Ambassador Armita Rufino, Zonta Club of Makati and Environs (ZCME) Past President Maritess Pineda, Zonta International Past President Olivia Ferry, ZCME Vice-President Joanne Zapanta-Andrada, BDO Unibank Vice-President and Head of Sustainability Office Marla Alvarez, BDO Private Bank Executive Vice-President and Head of Wealth Management Group Stella Cabalatungan, ZCME President Rosario Abaya, SM Supermalls’ President Steven Tan, BDO Unibank Senior Vice-President and Head of Cash Management Services, Transaction Banking Group Carlo Nazareno, and BDO Unibank First Vice-President and Officer in Charge for Marketing Communications Group Hannah Lopez

This groundbreaking competition aims to provide a platform for Filipinas to express their artistic talents, promoting them as originators of art and empowering them in the creative realm. With both Figurative and Non-Figurative categories, Sining Filipina invites participants to showcase their unique perspectives on the contemporary woman.

SM Supermalls’ President Steven Tan (right), with BDO Unibank Vice-President and Head of Sustainability Office Marla Alvarez (second from right), Zonta Club of Makati and Environs Vice-President, Joanne Zapanta-Andrada (second from left), and host Ces Drilon (left), during the panel discussion at the recent Sining Filipina national art competition media launch at the SM Aura Samsung Hall Lobby

Contestants should submit original artworks, entirely conceptualized and executed by themselves, until the deadline on Jan. 31, 2024. The competition offers a generous cash prize of up to P250,000 for the First Place Winner, providing not only recognition but also a significant boost to their artistic journey.

For a detailed understanding of the mechanics, application process, and guidelines, interested participants can visit https://zontaclubme.com/sining-filipina/. Additionally, inquiries can be directed to siningfilipina.secretariat@gmail.com.

This initiative reflects the commitment of BDO Unibank, Inc., SM Supermalls, and the Zonta Club of Makati and Environs, to champion the flourishing talents of Filipina artists. As a testament to their support, the competition seeks to amplify the voices and visions of women in the realm of art.

Join us in celebrating the richness of Filipina creativity — Sining Filipina awaits your masterpiece!

To know more about the exciting events at SM Supermalls, visit www.smsupermalls.com or follow @SMSupermalls on social media.

 

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Recto set to take over Finance dep’t

FORMER SENATOR RALPH G. RECTO — SENATE PRIB

By Kyle Aristophere T. Atienza, Reporter

FORMER Senator Ralph G. Recto, who pushed higher value-added taxes (VAT) in the Senate in the early 2000s, has been appointed Finance secretary, according to Senate President Juan Miguel F. Zubiri.

Mr. Recto, who was elected Batangas congressman in 2022 and served three six-year terms as a senator, is set to take his oath at the Presidential Palace on Friday, according to news reports quoting his wife, former Batangas lawmaker and actress Vilma Santos-Recto.

He will replace Benjamin E. Diokno, who served as central bank governor under the Duterte administration.

“In the Senate, we always regarded him as the resident numbers genius,” Mr. Zubri said in a statement as he welcomed the appointment of Mr. Recto.

“This was not just for his mathematical ability, but more importantly for his ability to immediately see the big picture implications of these numbers.”

Presidential Communications Office chief Cheloy Velicaria-Garafil confirmed Mr. Recto will take his oath as Finance secretary before President Ferdinand R. Marcos, Jr. on Friday. Also scheduled to take his oath is former Robinsons Land Corp. President and Chief Executive Officer Frederick D. Go, who was appointed Special Assistant to the President for Investment and Economic Affairs.

Mr. Recto and Mr. Diokno did not reply to requests for comment.

In an interview with Bloomberg TV on Monday, Mr. Diokno refused to comment on reports that he will be replaced.

“My relationship with the President is confidential and before making any announcement, I have to clear that with the President,” he said.

Mr. Recto was elected representative of the 6th district of Batangas in 1992 and served three terms. He was first elected to the Senate in 2001 at the age of 37, the youngest among his colleagues in the upper chamber at that time. There, he chaired the committees on Ways and Means and on Trade and Industry.

However, the grandson of the late Filipino statesman Claro M. Recto lost his Senate reelection bid in 2007 after pushing to raise the VAT by 2 points to 12%.

Then-president Gloria Macapagal-Arroyo appointed him as director-general of the National Economic and Development Authority in 2008 but left after one year.

He made a Senate comeback in 2010 and consecutively secured the seat in the following elections until 2022.

“More than most, he understands how to bridge the gap between the abstractions of mathematics and the very concrete realities that we face as a nation,” Mr. Zubiri said. “So, I have no doubt that he will be a good Finance secretary, who will continue to push the country along on the road to greater economic prosperity.”

House Ways and Means Chair Jose Maria Clemente S. Salceda said Mr. Recto’s longstanding relationship with the Congress would help.

“His experience and network will be crucial in enacting meaningful reforms to address the rising cost of living, create employment and expand our fiscal space,” he said in a Facebook Messenger chat.

Mr. Salceda noted that Mr. Recto was one of the authors of the 1997 Comprehensive Tax Reform Program during his tenure in the House.

“I am optimistic that key tax reforms pending in the Senate will also move faster with his appointment, due to his relationships in that chamber, as well as his ability to broker viable compromises,” the lawmaker said.

Mr. Recto’s appointment signals a “pivotal shift towards policies that are not only economically sound but also socially responsible and politically astute,” Terry L. Ridon, a former lawmaker and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

He said Mr. Recto’s comprehensive background in both the Executive and Legislative branches of government empowers him to “bring a holistic perspective to economic policy.”

“Heading the government’s economic team in this time of economic turmoil and global unease requires a leader who has shown a track record for pursuing economic decisions that do not put the public at greater risk,” he added.

Gary Ador Dionisio, dean of the De La Salle – College of Saint Benilde School of Diplomacy and Governance, said the appointment of Mr. Recto shows there is dissatisfaction with the former Finance leadership and that Mr. Marcos wants to consolidate his own team.

“This will help President Marcos to pursue his new economic agenda under the leadership of Secretary Recto,” he said via Messenger chat. “Since Secretary Recto is also a long-time politician his political capital will be helpful to President Marcos in consolidating both his political and economic network.”

Philip Arnold P. Tuaño, dean of the Ateneo School of Government, said Mr. Recto would bring a policy perspective to the plans of the Finance department, “which is critical to the advancement of some of the proposed tax reforms which still need to be done.”

Mr. Tuaño said Mr. Recto would not be spared from questions on whether he might just last one year as Finance secretary to run for Senator in 2025, “similar to his NEDA director-general appointment in 2008 and his resignation to run for Senator in 2009.”

Assessing the performance of Mr. Recto’s predecessor, Mr. Ridon said Mr. Diokno had issued “cautionary statements” against suspending value-added and excise taxes on petroleum products, “standing in stark contrast to the urgent relief needed by the populace.”

“His insistence on the potential harm to the economy and government finances overlooks the immediate benefits such a suspension could provide, especially in light of the recent surge in fuel prices,” the policy analyst said.

He also recalled that Mr. Diokno opposed the implementation of a price cap on rice in September last year, with the outgoing secretary saying it was made without the input of economic advisors. The price cap order had also been opposed by Mr. Diokno’s colleagues at the University of the Philippines School of Economics.

“The biggest red flag that earned the ire of the public is Diokno’s repeated claim that the central bank has done enough to control inflation, despite the unabated price hikes and their impact on the average Filipino,” Mr. Ridon said.

PHL projected to grow 6% this year

Shoppers are seen in Divisoria, Manila. — PHILIPPINE STAR/WALTER BOLLOZOS

THE PHILIPPINES’ gross domestic product (GDP) is projected to grow faster this year as easing inflation will help boost “revenge spending,” analysts said.

First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said they expect GDP growth at 6% this year, still below the government’s 6.5-7.6% target.

“I think they will not be able to make the 6.5% unless foreign investments come in. And so far, if we look at 2023, foreign investments were actually down significantly… but we have to see how things pan out in the coming months,” Victor A. Abola, an economist at UA&P, said at a briefing in Makati City on Thursday.

FMIC and UA&P projected full-year GDP to average 5.5% in 2023, still below the government’s 6-7%. The economy grew by 5.5% in the nine-month period. 

The Philippine Statistics Authority (PSA) is set to release full-year 2023 GDP data on Jan. 31.

“Growth will accelerate from 5.5% (in 2023) to 6% (in 2024), driven by the services sector, particularly, transport, accommodations, and food services, which are experiencing revenge spending,” Mr. Abola said.

Filipino consumers are expected to continue to splurge this year, which will help drive growth.

“We’re just seeing the beginning of (revenge spending) because high inflation has sort of toned down that expansion. So, I think that we’ll see faster GDP growth in 2024,” Mr. Abola said.

Improved employment will also boost the economy this year, Mr. Abola said, citing the record low jobless rate seen in November.

The country’s unemployment rate fell to 3.6% in November from 4.2% in the previous month and a year ago, marking an 18-year low. In November, the number of employed people also rose to 49.64 million from 47.8 million in October and 49.7 million in November 2022.

FMIC Executive Vice-President Daniel D. Camacho said the BSP will likely keep rates steady for the first half.

“Our fearless forecast for yearend is a reduction of 75 bps to 125 bps across the curve,” Mr. Camacho said. “We do not foresee a cut in BSP rates in the first half but possibly one or two in the second half of the year which will further push rates downwards.”

The benchmark rate is currently at 6.5%, the highest in 16 years. From May 2022 to October last year, the BSP raised borrowing costs by a total of 450 bps.

“I think the BSP will be quite slow in cutting rates, the first one is 25 bps likely in June and depending on the Fed moves, it will probably mimic the rate cuts in the second half,” Mr. Abola added.

The Monetary Board is set to have its next policy review on Feb. 15.

OPTIMISTIC OUTLOOK
Meanwhile, BMI Asia Country Risk Analyst Shi Cheng Low said Philippine GDP growth is seen to pick up to 6.2% in 2024 from a likely 5.7% in 2023.

“There are two main reasons behind our more optimistic view. One is easing inflation… which is really good news for household incomes and (will) support private consumption,” Mr. Low said.

“We expect the resilience in private consumption to remain throughout 2024 and on top of that, because we are expecting cuts in the second half of the year, this will actually help a rebound in investment growth,” he added.

Mr. Low noted easing price pressures will also prompt the BSP to loosen policy in the second half of this year.

Inflation averaged 6% for 2023, slightly higher than 5.8% in 2022. This marked the second straight year that inflation breached the BSP’s 2-4% target band.

This year, the central bank expects full-year inflation to ease to 3.7% and 3.2% in 2025.

Mr. Low also said foreign direct investment (FDI) net inflows to the Philippines will pick up in 2024.

“Because we are expecting rate cuts in major economies in the second half of the year including the Fed, we expect FDIs to pick up significantly, at least, in terms of foreign investments into the Philippines,” he said.

The BSP expects FDI net inflows to have reached $8 billion at the end of 2023, before accelerating to $10 billion by end-2024.

DEBT
FMIC’s Mr. Abola said he also expects debt as a share of GDP to ease further this year.

“We’re seeing that it will ease to 60.4% this year and continue next year to about 59%. We are on the way to providing more fiscal space, with faster growth and lower interest rates,” he added.

The National Government’s debt-to-GDP ratio stood at 60.2% as of end-September. This is still slightly above the 60% threshold considered by multilateral lenders to be manageable for developing economies.

The government is targeting to bring the ratio to below 60% by 2025.

On the other hand, Mr. Abola said that the government must also work on beefing up its gross international reserves.

“We need to rebuild our gross dollar reserve because (it) is not very ideal for the environment in which we have global markets that we can easily move money around,” he said.

Latest data from the BSP showed that dollar reserves slipped by 0.3% to $102.45 billion as of end-December from $102.72 billion in November. — Luisa Maria Jacinta C. Jocson and Keisha B. Ta-asan

BSP likely to deliver 150 bps in rate cuts through Q1 2025

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) will likely cut borrowing costs by 150 basis points (bps) starting the third quarter of this year until the first quarter of 2025, according to Nomura Global Markets Research.

In a report dated Jan. 5, Nomura said the BSP will likely remain cautious of upside risks to inflation despite the slowdown in December and maintain tight policy settings.

“We therefore reiterate our forecast for BSP to start cutting only in August and deliver a total of 150 bps in rate cuts to 5% through the first quarter of 2025,” the report, authored by research analysts Euben Paracuelles, Charnon Boonnuch, and Nabila Amani, said.

The BSP has emerged as the most aggressive central bank in the region after raising key policy rates by 450 bps from May 2022 to October 2023 to quell inflation and anchor inflation expectations.

In 2023 alone, the Philippine central bank hiked policy rates by 100 bps, including a 25-bp off-cycle hike on Oct. 26, 2023. This brought the key rate to 6.5%, the highest since the 7.5% seen in May 2007. 

“Despite recent declines, headline inflation, by our forecast, is unlikely to return to within the target before July 2024, supporting BSP’s higher-for-longer signals,” Nomura said.

Headline inflation slowed further to 3.9% in December from 4.1% in November, returning back to within the BSP’s 2-4% target for the first time since March 2022.

However, inflation averaged 6% for 2023, slightly higher than 5.8% in 2022. This marked the second straight year that inflation breached the BSP’s 2-4% target band. The 6% full-year print was the highest in 14 years or since the 8.2% average in 2008, at the height of the global financial crisis. 

“While inflation returned to target earlier than BSP’s forecast of third quarter 2024, we do not see an immediate impact on monetary policy, given BSP remains cautious of upside inflation risks and remains hawkish,” Nomura said.

The BSP earlier said the key upside risks to inflation include higher transport fares, increased electricity rates, as well as rising food and oil prices due to strong El Niño conditions.

The central bank has said it will keep policy settings sufficiently tight until a sustained downtrend in inflation becomes more evident.

FISCAL BALANCE
At the same time, fiscal consolidation in the Philippines will likely be slower and gradual than government targets in 2024, Nomura said.

Latest data from the Treasury department showed the National Government’s budget deficit narrowed by 24.8% to P93.3 billion from the P123.9-billion gap in November 2022. However, the November deficit widened from P34.4 billion in October.

“This implies the full-year 2023 deficit could be tracking at 5.9% of GDP (gross domestic product), below our forecast of 6.6% and the government’s target of 6.1% under the medium-term fiscal framework (MTFF),” Nomura said.

It also noted that about 75% of the strong performance in November was mainly driven by higher tax collections and nontax revenues.

This year’s national budget is set at P5.768 trillion, representing 21.1% of GDP. The fiscal deficit ceiling is set at P1.394 trillion or 5.1% of GDP this year.

“Our view remains that fiscal consolidation will likely be slower than MTFF targets to reduce the drag on growth, and fiscal deficits remain high relative to pre-pandemic levels,” it added. — Keisha B. Ta-asan

Withholding tax on online sellers seen to address revenue leakages

BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE GOVERNMENT should ensure that it will be able to properly implement and monitor the collection of withholding tax on online sellers.

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 16, which imposes a withholding tax on the gross remittances made by electronic marketplace operators and digital financial service providers to merchants.

Analysts said that the implementation of the withholding tax on online sellers will allow the BIR to better track transactions in the digital economy.

“The implementation of a 1% withholding tax on online sellers is intended to expand the tax base by addressing potential revenue leakages in the growing online retail industry,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

“Ideally, the withholding tax system should streamline the tax payment process for online sellers and should have no substantial impact on prices under the assumption that retailers are paying correct taxes,” she added.

Eleanor L. Roque, tax principal of P&A Grant Thornton, said that the measure provides the BIR an additional mechanism to “ensure that taxes are paid by the business owners since their income will also be reported by their withholding agents.”

Ms. Velasquez noted that the imposition of the withholding tax may also mitigate some instances of noncompliance by online sellers.

“This measure is expected to increase government revenues and promote transparency among companies engaged in online retail trade,” she added.

Ms. Roque said that the tax will be an “additional administrative burden” on electronic marketplaces.

“These entities will have to put controls in place to identify remittances to online sellers that are subject to withholding taxes,” she said in a Viber message.

Under BIR regulation, a withholding tax of 1% will be imposed on one-half of the gross remittances by e-marketplace operators and digital financial service providers to the sellers or merchants for the goods and services paid or sold through their platforms or facilities.

However, the tax is not imposed if the annual total gross remittances to an online seller for the past taxable year has not exceeded P500,000; if the cumulative gross remittances to an online seller in a taxable year has not yet exceeded P500,000 or if the seller is duly exempt from or subject to a lower income tax rate pursuant to any existing law or treaty.

The regulation covers marketplaces for online shopping, food delivery platforms, platforms to book lodging accommodations, and other similar online service or product marketplaces.

‘NOT NEW TAX’
Ms. Roque noted the withholding tax is not a new or added tax on online sellers but simply allows for an advance payment of income tax.

“Withholding taxes are just a manner of collecting taxes at source. It does not impose an additional income tax,” she said. “Withholding tax is a mechanism that ensures advance collection of taxes. It also allows the BIR to cross check the amount of income declared by the online seller versus the amount declared by the withholding agent.”

For online sellers whose actual tax payable is higher than the total taxes withheld, this new measure will be a more efficient way of managing tax payments, Ms. Roque said.

“They only need to pay the remaining amount of tax payable so they do not need to shell out a huge amount of tax when paying their final annual income tax,” she said.

“However, for sellers which would have excess payment, they can either use the excess as credits for succeeding periods or decide to file a claim for refund. In case they decide to file a claim for refund, they should consider the cost and time needed to process the claim,” she added.

Earlier this month, TikTok sent an advisory announcing that they would be imposing the 1% withholding tax on all covered sellers.

According to the advisory, sellers’ settlement amount will be less of the withholding tax amount, which will be collected by TikTok Shop and remitted to the BIR, effective Jan. 12.

“The amount deducted as withholding tax may be claimed by the sellers as tax credits in their corporate income tax return,” it added.

On Tuesday, Shopee released an article on its Seller Education Hub on the regulations of the withholding tax and how it will be calculated and deducted.

It also called on sellers to register with the BIR and update their business information to “ensure proper taxation.”

“Withholding tax is not a new type of tax. The collection of withholding tax from online sellers was implemented by the government to maintain fairness of tax obligations between businesses with physical/brick-and-mortar stores and those selling through online platforms,” Shopee said.

Rodolfo B. Javellana, Jr., president of the United Filipino Consumers and Commuters said that the tax would impact consumers.

“There is never a time when digital financial service providers and online sellers will agree that their profit or income would be reduced. It’s simple — when there’s a tax, it’s passed onto consumers. They will increase the price of their products, and these are passed onto consumers,” Mr. Javellana said in Filipino via Viber message.

“The impact of this tax will be on consumers and the general public,” he added.

Earlier this week, BIR Commissioner Romeo D. Lumagui, Jr. was quoted by ABS-CBN News as saying the withholding tax on online sellers is not a new tax. He noted the measure only aims to encourage more small businesses to register, as well as improve tax collection efforts.

Ms. Velasquez noted a bill that seeks to tax digital transactions would help better capture the digital economy.

In November 2022, the House of Representatives approved the measure seeking to impose the 12% value-added tax (VAT) on nonresident digital service providers. A similar measure is still pending before a Senate committee.

If passed into law, a 12% VAT will be imposed on the digital sale of services like online advertising, video-on-demand subscriptions, and the supply of other services which are delivered through online marketplaces, webcasts and mobile applications, among others.

“This tax would further address the taxation of digital services and ensure a fair and equitable tax system that keeps pace with the evolving digital economy,” Ms. Velasquez said.

In 2022, the digital economy contributed P2.08 trillion, equivalent to 9.4% of gross domestic product. Of this, e-commerce had the highest growth at 26.5%, with its share to the economy reaching 20% or P416.12 billion.

The Philippines’ digital economy is projected to reach as high as $150 billion by 2030, according to a report by Google, Temasek Holdings and Bain & Company. — Luisa Maria Jacinta C. Jocson

50th MMFF to build on success of 2023 edition

WITH the 49th Metro Manila Film Festival (MMFF) officially becoming the highest-grossing edition of all time, the Metro Manila Development Authority (MMDA), which runs the festival, is looking to sustain the momentum of the festival’s success.

MMDA chairman Don Artes said in a statement posted online that combined gross receipts of its 10 film festival entries, which opened in cinemas on Dec. 25, 2023, have reached a record-breaking level of P1.069 billion as of Jan. 7.

This surpassed the box-office earnings of the previous highest-earning edition in 2018, which earned P1.061 billion.

“We received reports that moviegoers watched multiple films while others watched films repeatedly. Hopefully, we can sustain this beyond the festival so that our film producers can offer quality movies all year round,” said Mr. Artes in a press conference on Tuesday.

“We also encourage filmmakers to create better films for the MMFF’s 50th edition,” he added.

Mr. Artes observed that the 2023 festival only saw 800 cinemas open to exhibit films, whereas the 2018 edition had 1,200 cinemas at its disposal, making the recent success even more notable.

He cited the quality of films offered, the well-executed promotional campaigns, and the ABC market being part of the audience as contributing factors to the festival’s solid performance.

The ongoing MMFF is projected to earn P1.2 billion by the end of its one-week extension on Jan. 14, Mr. Artes disclosed. The initial projection for the festival’s box office was P700 million.

ACTIVITIES FOR 2024
Aside from screening the 10 entries again at the maiden Manila International Film Festival (MIFF), to be held end of January in Los Angeles, California, USA, there will be several other activities leading up to the 50th MMFF.

These are “the student short film caravan, the short film festival, publishing a coffee-table book, and Cine 50, where top 50 MMFF films for the last 49 years will be screened in selected theaters for only P50.”

“We are expecting to feature bigger and better films for our 50th edition as we celebrate the cinemagoers’ return to theaters to patronize local movies,” said Mr. Artes.

Because of these plans, Mr. Artes announced that this year’s Summer MMFF is canceled. Talks are ongoing with Film Development Council of the Philippines (FDCP) chairman Tirso Cruz III so that the MMFF can support one of its film festivals instead, such as the Pista ng Pelikulang Pilipino (PPP).

In a statement released on Wednesday, the FDCP clarified that, during a meeting with the MMFF, Mr. Artes “broached the idea of reviving the PPP in place of the summer film festival,” to which Mr. Cruz responded that “the proposal has to be extensively studied.”

“Apart from a reduced budget, the PPP is not part of FDCP programs lodged for 2024,” it said. “The FDCP’s stand is to support and empower local festivals instead of mounting a festival of its own.” — Brontë H. Lacsamana

Barbie, Oppenheimer lead SAG nominations on road to Oscars

SAG-AFTRA

LOS ANGELES — Box office hits Barbie and Oppenheimer landed four nominations each for Hollywood’s Screen Actors Guild (SAG) awards on Wednesday, setting up a new battle between the blockbuster films ahead of the Academy Awards.

The movies that squared off in a showdown dubbed “Barbenheimer” last summer will vie for the top SAG award — best movie cast — alongside The Color Purple, Killers of the Flower Moon, and American Fiction.

The SAG awards are closely watched because actors form the largest group of voters for the Oscars, the film industry’s top prizes that will be bestowed in March.

Oppenheimer, about the making of the atomic bomb, is coming off a dominating night this week at the Golden Globes, where the Christopher Nolan film took home five trophies, including best movie drama.

Poor Things, the surprise Globe winner for best movie musical or comedy, was left out of SAG’s cast nominees, though star Emma Stone was nominated for best actress and Willem Dafoe for supporting actor.

Ms. Stone will compete against Barbie star Margot Robbie, Golden Globe winner Lily Gladstone of Killers of the Flower Moon, Annette Bening of Nyad, and Carey Mulligan of Maestro.

Cillian Murphy, who played scientist J. Robert Oppenheimer, was nominated for best actor. His competition will be Bradley Cooper of Maestro, The Holdovers star Paul Giamatti, Jeffrey Wright for American Fiction, and Colman Domingo for Rustin.

SAG voters passed over Flower Moon star Leonardo DiCaprio.

For Oppenheimer, Robert Downey, Jr. and Emily Blunt were nominated for their supporting roles. The other nods for Barbie came for supporting actor Ryan Gosling, who played Ken, and for the movie’s stunt performers.

Succession, about a cutthroat media mogul and his family, led TV categories with five nominations, including best drama series cast. Ted Lasso, The Bear, and The Last of Us each received four nods.

For its final season, Succession won the Golden Globe for best TV drama, while season two of restaurant dramedy The Bear prevailed in the TV comedy series category.

Winners of thπe SAG awards will be handed out at a red-carpet ceremony held in Los Angeles on Feb. 24 and streamed live on Netflix.

At the event, SAG will award a lifetime achievement honor to singer, actress, and director Barbra Streisand, the star of Funny Girl, A Star is Born, and other classic films. — Reuters

Screen Actors Guild awards 2024: full list of nominations

LOS ANGELES — Nominations for the 30th Screen Actors Guild (SAG) Awards were announced on Wednesday for the best performances in film and television during 2023. The winners will be announced at a televised ceremony on Netflix on Feb. 24 from Los Angeles.

MOVIES
Best Movie Cast: Barbie, Oppenheimer, American Fiction, The Color Purple, Killers of the Flower Moon
Best Male Actor in a Leading Role: Bradley Cooper, Maestro; Colman Domingo, Rustin; Paul Giamatti, The Holdovers; Cillian Murphy, Oppenheimer; Jeffrey Wright, American Fiction
Best Female Actor in a Leading Role: Annette Bening, Nyad; Lily Gladstone, Killers of the Flower Moon; Carey Mulligan, Maestro; Margot Robbie, Barbie; Emma Stone, Poor Things
Best Male Actor in a Supporting Role: Sterling K. Brown, American Fiction; Willem Dafoe, Poor Things; Robert De Niro, Killers of the Flower Moon; Robert Downey Jr., Oppenheimer; Ryan Gosling, Barbie
Best Female Actor in a Supporting Role: Emily Blunt, Oppenheimer; Danielle Brooks, The Color Purple; Penelope Cruz, Ferrari; Jodie Foster, Nyad; Da’Vine Joy Randolph, The Holdovers

TELEVISION
Best Ensemble in a Drama Series: The Crown, The Gilded Age, The Last of Us, The Morning Show, Succession
Best Ensemble in a Comedy Series: Abbott Elementary, Barry, The Bear, Only Murders in the Building, Ted Lasso
Best Male Actor in a Television Movie or Limited Series: Matt Bomer, Fellow Travelers; Jon Hamm, Fargo; David Oyelowo, Lawmen: Bass Reeves; Tony Shalhoub, Mr. Monk’s Last Case: A Monk Movie; Steven Yeun, Beef
Best Female Actor in a Television Movie or Limited Series: Uzo Aduba, Painkiller; Kathryn Hahn, Tiny Beautiful Things; Brie Larson, Lessons in Chemistry; Bel Powley, A Small Light; Ali Wong, Beef
Best Male Actor in a Drama Series: Brian Cox, Succession; Billy Crudup, The Morning Show; Kieran Culkin, Succession; Matthew Macfadyen, Succession; Pedro Pascal, The Last of Us
Best Female Actor in a Drama Series: Jennifer Aniston, The Morning Show; Elizabeth Debicki, The Crown; Bella Ramsey, The Last of Us; Keri Russell, The Diplomat; Sarah Snook, Succession
Best Male Actor in a Comedy Series: Brett Goldstein, Ted Lasso; Bill Hader, Barry; Ebon Moss-Bachrach, The Bear; Jason Sudeikis, Ted Lasso; Jeremy Allen White, The Bear
Best Female Actor in a Comedy Series: Alex Borstein, The Marvelous Mrs. Maisel; Rachel Brosnahan, The Marvelous Mrs. Maisel; Quinta Brunson, Abbott Elementary; Ayo Edebiri, The Bear; Hannah Waddingham, Ted Lasso

STUNTS
Outstanding Action Performance by a Stunt Ensemble in a Television Series: Ahsoka, Barry, Beef, The Last of Us, The Mandalorian
Outstanding Action Performance by a Stunt Ensemble in a Motion Picture: Barbie, Guardians of the Galaxy Vol. 3, Indiana Jones and the Dial of Destiny, John Wick: Chapter 4, Mission: Impossible – Dead Reckoning Part One — Reuters

NAIA operator forecasts P14.8-B revenue, 15% passenger rise this year

PHILIPPINE STAR/AJ BOLANDO

THE Manila International Airport Authority (MIAA) said it expects revenues to rise by 18% to P14.82 billion this year, with the volume of arriving and departing passengers expected to increase by 15% to more than 48 million.

MIAA, operator of Ninoy Aquino International Airport (NAIA), is also allocating P4.37 billion for capital expenditures this year, as per its corporate operating budget for 2024, which was approved by its board of directors on Oct. 20 last year.

According to MIAA, domestic and international passenger service charge revenue is expected to reach P5.29 billion this year, a 25% increase over the estimated P4.22 billion for 2023.

The revenue from rental fees is expected to increase by 4% to P2.08 billion, concession privilege fees by 16% to P1.46 billion, and aeronautical fees by 19% to P5.32 billion. 

A 24% increase to P7.36 billion is expected in the maintenance and other operational expenses.

MIAA said repairs and maintenance alone will cost P1.16 billion, up by 85%, while power and water will cost P1.47 billion, up 9%.

Net income after tax is anticipated to reach P2.31 billion, marking an 8% increase from 2023. 

For the first nine months of 2023, MIAA’s net income from operations more than doubled, increasing from P1.33 billion to P3.63 billion compared to the same period a year earlier.

MIAA recorded a net income after tax of P3.1 billion, more than twofold the 1.95 billion last year. For the period, MIAA’s operating expenses went up by 23% to P5.66 billion from P1.06 billion. 

Flights, which include international, domestic, and general aviation, are expected to increase by 5% to P308,601 this year.

The Tourism department reported 5.45 million international visitors in 2023, surpassing the year’s target of 4.8 million.

For 2024, the department aims to attract 7.7 million international visitors.

OPERATIONS & MAINTENANCE BID

The Transportation department expects the winning bidder for the operations and maintenance of the country’s main gateway to take over by September this year.

Four groups have submitted bids for the P170.6-billion public-private partnership upgrade project: Manila International Airport Consortium, Asia Airport Consortium, GMR Airports Consortium, and SMC SAP and Co. Consortium.

The project aims to increase the current annual passenger capacity of the airport to at least 62 million from the current 35 million.— Ashley Erika O. Jose

Angela Bassett, Mel Brooks accept honorary Oscars at Hollywood gala

WIKIMEDIA COMMONS

LOS ANGELES — Actress Angela Bassett was celebrated for a lifetime of memorable roles, from Tina Turner to the queen of Wakanda, as Hollywood’s film academy handed out honorary Oscars on Tuesday.

Comedian Mel Brooks also received a golden statuette at the annual Governors Awards in front of a crowd of top stars including Leonardo DiCaprio, Bradley Cooper, and Natalie Portman.

On stage accepting her trophy, Ms. Bassett paid tribute to the 10 Black women who have won Academy Awards — naming each one — and said she hoped the film industry would provide more opportunities for people of color.

“My prayer is that we leave this industry more enriched, forward-thinking and inclusive than we found it,” Ms. Bassett, 65, said. “At the end of the day, we all just want to have the opportunity to do great, meaningful work.”

Ms. Bassett was nominated for two competitive Oscars. The first was for her breakout role as Tina Turner in 1993’s What’s Love Got to Do with It, and the second for playing Queen Ramonda in 2022’s Black Panther: Wakanda Forever.

Ms. Bassett and other honorees were selected by the board of governors of the Academy of Motion Picture Arts & Sciences, the group that will hand out this year’s Oscars in March.

Writer, director and actor Mr. Brooks, now 97, began his career writing comedy routines for Sid Caesar’s TV shows in the 1950s before making films such as Blazing Saddles and Young Frankenstein.

He won an Oscar for writing the screenplay for 1967 film The Producers, which later became a hit Broadway play.

After a musical introduction by The Producers stars Nathan Lane and Matthew Broderick, Mr. Brooks joked that he appreciated his new Oscar statuette because he had sold his previous trophy.

“I won’t sell this one, I swear to God,” he said.

The academy also honored film editor Carol Littleton and Sundance Film Festival executive Michelle Satter. — Reuters

ICTSI submits bid for management of Iloilo Commercial Port Complex

ICTSI.COM

RAZON-LED International Container Terminal Services, Inc. (ICTSI) said it had submitted a bid to maintain and manage the Iloilo Commercial Port Complex (ICPC).

“Yes, we submitted,” said the company’s media relations head in a phone message to BusinessWorld on Thursday.

The 25-year concession agreement, as per the Philippine Ports Authority’s (PPA) bid invitation, sets a minimum fixed fee of P500 million for the sixth to 10th year and a minimum annual concession fee of P100 million for the sixth year.

PPA has scheduled the deadline for bid submission and bid opening on Jan. 11.

BusinessWorld has asked PPA for comments, but the number of bidders remains undisclosed.

“Bids evaluation for ICPC is still undergoing. [PPA] will issue a statement after bid evaluation is completed,” a PPA representative said in a Viber message.

The winning bidder must have at least two years of experience in providing port terminal management services, cargo handling services, and other related port services, as stated by PPA.

Additionally, the bidder must possess experience in operating a terminal similar to or larger than ICPC and should have a minimum of 10 years of relevant experience in handling foreign containerized and non-containerized cargo.

The winning bidder must also have an experience in similar rehabilitation and construction works, PPA said.

Last year, the Transportation department said the PPA had received several proposals for the Iloilo port but it noted that only one party is serious about the project.

In 2022, the listed port operator ICTSI announced plans to revive its proposal to develop and operate the ICPC. The Razon-led port operator had earlier estimated the required investment to be more than P5 billion.

Separately, ICTSI has set a 2050 net-zero goal by cutting emissions and improving energy efficiency.

“Our commitment to decarbonization targets marks an important step on our journey to becoming a more sustainable company and as part of this, we are actively implementing initiatives to maximize energy and resource efficiency, reduce carbon intensity, and lower emissions,” Christian R. Gonzalez, ICTSI executive vice-president, compliance officer, and chief sustainability officer, said in a media release.

The company has committed to reducing greenhouse gas emissions and purchasing electricity by 26% per container move by 2030, contributing to its net-zero target.

Net zero refers to reducing greenhouse gas emissions to as close as zero as possible while offsetting any remaining greenhouse gases in the atmosphere.

 “Making a positive environmental impact is fundamental to our business strategy which means we will continuously review and update our goals to ensure their relevance and accelerate our efforts towards mitigating climate change,” Mr. Gonzalez said. — Ashley Erika O. Jose

SM: Still plenty of room for growth in 2024

The groundswell of watchful optimism persists in 2024, and one of the country’s leading conglomerates maintains that there is still room for growth.

SM Investments Corporation says the Philippines has been consistently positive in terms of consumer growth.

“If you look back at the historical performance of the Philippine economy, even during the height of the Asian crisis, household consumption in the Philippines has been quite resilient, primarily driving sustained economic growth,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said.

Discretionary spending in key categories such as fashion, food and beverage as well as entertainment, among others, is buoying consumption activity.

Caption: Buoyant consumer activity is seen in sustained spending in discretionary retail categories such as fashion.

As of the first nine months of 2023, retail net income grew by 19%, driven by growth in Non-Food discretionary categories sales, both in SM Store and Specialty Stores.

“Overall, we are positive about our retail business, and we continue to be mindful of our customers’ needs as we offer choices that can match the size of their wallets,” Mr. DyBuncio said.

Substantial remittances from Overseas Filipino Workers (OFWs) are also supporting growth. Latest data from the Bangko Sentral ng Pilipinas indicated that personal remittances from OFWs increased 3.1% in October 2023 to US$3.33 billion from US$3.23 billion in the same month last year. This resulted in total personal remittances rising by 2.9% to US$30.57 billion in the first ten months of 2023.

“The continued growth of OFW remittances supports the consumption story of the Philippines,” he said.

Adding fuel to consumption growth is BPO expansion and improving unemployment numbers that are dropping to new lows.

The Philippine Statistics Authority reported that the country’s unemployment rate in November was estimated at 3.6%, lower than the unemployment rates in November 2022 and October 2023 which were both at 4.2%.

In terms of BPO expansion, many BPO firms have been moving to the provincial areas such as in Cebu, Davao, Iloilo, providing additional spending power to a young population, Mr. DyBuncio added.

Serving underpenetrated sectors

SM’s expansion is also advancing, largely in provincial areas which present opportunities for establishing modern retail formats in a significantly underpenetrated sector.

Seeing this, over 80% of SM’s new retail stores are located outside of Metro Manila. Mall expansion is also geared towards the provinces such as most of Northern Luzon, Visayas and the progressive cities in Mindanao.

SM City Sto. Tomas is SM’s 85th mall and fourth in the province of Batangas.

In terms of housing, this sector also presents a huge opportunity given the current 6.5 million housing backlog.  SM Development Corporation (SMDC), SM’s residential arm, has a growing presence in the provinces with 18 residential developments in key provincial cities as of September 2023. These projects are strategically alongside or near SM’s malls and transportation terminals.

In banking, approximately 53% of the adult population or about 41 million are unbanked as of 2021 which offers a huge market for increased financial inclusion. BDO Unibank and its community banking arm BDO Network Bank continue to provide relevant financial solutions to address unique banking needs in the provinces.

For communities in remote areas without traditional bank branches, BDO Cash Agad allows convenient access to funds for daily expenses, emergencies, or business needs. This makes use of partner agents such as sari-sari stores, gasoline stations, water refilling stations, and mini-groceries for customers to do cash withdrawals, bills payment, and other basic banking transactions through a point-of-sale (POS) terminal which facilitates payments.

SM has also invested in high growth sectors such as in logistics through 2GO, the largest transportation and logistics provider in the country and Airspeed, an end-to-end logistics solutions and express courier company which are both well positioned to meet various economic needs.

In the race to clean energy, SM is invested in renewable energy supply through wholly owned geothermal firm Philippine Geothermal Production Company in support of the country’s growing advocacy for green energy and sustainable development. PGPC is targeting to increase its steam production by approximately another 300 Megawatts of baseload renewable energy through its new exploration projects.

With these additional investments supporting SM’s core businesses in retail, banking and property, SM is viewed by investors as a proxy to Philippine growth.

“Investors view us as a proxy because all of SM’s businesses touch the daily lives of millions of Filipinos. One thing we wish to highlight is that despite the size of our company, investors, especially foreign investors, still view us as a growth company and there is still plenty of room for growth moving forward,” Mr. DyBuncio said.

 

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