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Biden administration to unveil contractor rule that could upend gig economy

Official White House Photo by Cameron Smith

The administration of US President Joe Biden will release a final rule as soon as this week that will make it more difficult for companies to treat workers as independent contractors rather than employees that typically cost a company more, an administration official said.

The US Department of Labor rule, which was first proposed in 2022 and is likely to face legal challenges, will require that workers be considered employees entitled to more benefits and legal protections than contractors when they are “economically dependent” on a company.

A range of industries will likely be affected by the rule, which will take effect later this year, but its potential impact on app-based services that rely heavily on contract workers has garnered the most attention. Shares of Uber Technologies, Lyft and DoorDash all tumbled at least 10% when the draft rule was proposed in October 2022.

Shares of DoorDash closed nearly 4% higher at $98.52 on Monday, while Lyft shares gained 5.8% to close at $13.55 and Uber stock closed 2.5% higher at $59.01.

The rule will likely decrease flexibility for workers, resulting in lost opportunities to earn money, according to Marc Freedman, vice president at the US Chamber of Commerce, the largest U.S. business lobby.

“It is likely to threaten the flexibility of individuals to work when and how they want and could have significant negative impacts on our economy,” Freedman said in a statement.

In a draft version of the rule in 2022, the Labor Department said it would consider factors such as a worker’s “opportunity for profit or loss, investment, permanency, the degree of control by the employer over the worker, (and) whether the work is an integral part of the employer’s business.”

The rule replaces a Trump administration regulation that said workers who own their own businesses or have the ability to work for competing companies, such as a driver who works for Uber and Lyft, can be treated as contractors.

The department’s sharp break from the Trump-era regulation will likely be the focus of lawsuits challenging the new rule, legal experts have said. Federal law requires agencies to adequately explain their decision to withdraw and replace existing rules.

The Biden administration has said the Trump-era rule violated US wage laws and was out of step with decades of federal court decisions, and worker advocates have said a more strict standard was necessary to combat the rampant misclassification of workers in some industries.

The left-leaning Economic Policy Institute in a report last year estimated that a truck driver treated as a contractor earns up to $18,000 less per year than one who is deemed an employee, while construction workers’ earnings drop by nearly $17,000 and home health aides lose out on up to $9,500 in pay and benefits.

Business groups sharply criticized the draft rule after it was proposed. Any change in policy is expected to increase labor costs for many sectors including trucking, retail and manufacturing.

Most federal and state labor laws, such as those requiring a minimum wage and overtime pay, apply only to a company’s employees, who studies suggest can cost companies up to 30% more than independent contractors.

Nearly 40% of US workers, or more than 64 million people, did some freelance work in the past 12 months, according to a December survey by freelancing marketplace Upwork. – Reuters

Pfizer to remain aggressive on obesity market after setback

NEW YORK – Pfizer will remain aggressive in trying to break into the lucrative obesity market, even after dropping a high profile weight-loss drug candidate late last year due to strong side effects, Chief Executive Albert Bourla said on Monday.

“Pfizer’s position is that we believe that obesity is a place that we have the ability to play and win. So we will have to play,” Mr. Bourla told reporters ahead of his presentation at the JPMorgan healthcare conference in San Francisco.

Analysts have forecast the overall obesity drug market could reach $100 billion by the end of the decade.

Market leaders Eli Lilly with Zepbound and Mounjaro and Novo Nordisk’s Wegovy are already bringing in billions of dollars. The medicines belong to a class of drugs called GLP-1 agonists originally developed for type 2 diabetes, including Novo’s Ozempic, which has been used off-label for weight loss.

Mr. Bourla said it was unlikely the company would buy an obesity treatment in later stage development, which would command a multibillion-dollar price tag, because of Pfizer’s current focus on cutting costs and debt after buying oncology company Seagen for $43 billion.

Still, he said Pfizer was actively scanning the environment for potential licensing deals or earlier stage weight-loss drugs.

Pfizer has been punished by investors in recent months for a string of negative news, including weaker-than-expected sales of its COVID-19 vaccine and treatment, that pushed its shares to 10-year lows and drove the New York-based drugmaker to cut $4 billion in costs.

In early December, Pfizer said it would not advance its twice-daily oral weight-loss drug danuglipron into late-stage studies. Weeks later, it warned that 2024 sales would be as much as $5 billion below Wall Street expectations, mostly due to shortfalls in its COVID franchise.

Pfizer’s launch of its respiratory syncytial virus (RSV) vaccine Abrysvo last year has also been a disappointment, Bourla said, only taking roughly 35% of market share in the United States, badly lagging a rival vaccine from GSK.

“For me that was very unacceptable and doesn’t reflect anything other than GSK were able to do better contracting and better commercial execution,” Mr. Bourla said.

He said most of the RSV vaccines were administered in pharmacies, where GSK was able to dominate. For much of the season, GSK’s was the only shot offered by CVS Health, the biggest US pharmacy chain in the US and a dominant player in the retail vaccine market.

Mr. Bourla said the company was not happy with the performance of its commercial operation in 2023. Former Chief Commercial Officer Angela Hwang stepped down last month, and the company split its commercial business into two divisions, one focused on the United States and the other on the rest of the world.

“Overall, Pfizer didn’t demonstrate that edge that we had as a commercial machine that used to be a well oiled machine that was very credible launching products and we took some measures to correct that,” Mr. Bourla said. – Reuters

Canada says bulk importation not an effective solution to high drug prices in US

PHILSTAR FILE PHOTO

The Canadian government thinks bulk importation will not provide an effective solution to the problem of high drug prices in the United States after the US Food and Drug Administration allowed Florida to import cheaper drugs from Canada, Health Canada said on Monday.

 

WHY IT’S IMPORTANT

US drug costs are higher than in Canada and other countries where government-run healthcare systems negotiate prices for individual prescription drugs.

Florida on Friday won authorization from the FDA to directly import prescription drugs from Canada, the first state to get such approval for a strategy that could lower prices for medicines.

 

KEY QUOTES

“The Government of Canada is taking all necessary action to safeguard the drug supply and ensure Canadians have access to the prescription drugs they need and has been clear in its position: bulk importation will not provide an effective solution to the problem of high drug prices in the US,” Health Canada said in a statement.

The statement noted regulations to prohibit certain drugs intended for the Canadian market from being sold for consumption outside of Canada if that sale could cause a drug shortage in Canada.

“The Department will not hesitate to take immediate action to address non-compliance, ranging from requesting a plan for corrective measures, issuing a public advisory or other forms of communication, to taking action on the licenses of regulated parties who contravene the export prohibition if warranted.”

 

CONTEXT

In the past, Canada’s government has opposed any US plans to buy prescription medicines, citing threats to the country’s drugs supply or higher costs for its own citizens.

For years, US supporters of importation policy have said buying drugs from elsewhere could help lower costs in the U.S., where more than half of Americans are covered by private health plans.

Florida still needs to submit drug-specific information for FDA review and approval as well as evidence that the drugs it seeks to import have been tested to comply with FDA standards, the agency said. – Reuters

Gov’t eyes global bonds in 1st half

THE Philippines is eyeing the launch of foreign currency-denominated bonds before the end of the first half of 2024. — IMAGO/BERND LEITNER VIA REUTERS CONNECT

THE GOVERNMENT is eyeing the launch of foreign currency-denominated bonds before end-June, amid expectations of easing interest rates, Finance Secretary Benjamin E. Diokno said.

“Maybe towards the end of the first semester. We will try to look at the market situation. We’re not in a hurry to raise that yet because we expect interest rates to go down,” Mr. Diokno said in an interview with Bloomberg Television on Monday.

He said the government is planning to raise around $5 billion (around P277 billion) from the issuance of foreign bonds this year.

The government set its borrowing program at P2.46 trillion this year, of which P606.85 billion will come from external sources.

In 2023, the Philippine government raised $3 billion from its dollar bond issuance in January and $1.26 billion from its retail dollar bond offering in October. It also generated $1 billion from its inaugural Sukuk bond issuance, which was settled in December.

The government borrows from local and external sources to help fund a budget deficit capped at 5.1% of the gross domestic product (GDP) this year.

Mr. Diokno said that the government is so far on track to bring down its deficit-to-GDP ratio, which stood at 5.71% as of end-September 2023. The Marcos administration is targeting to lower the ratio to 3% by 2028.

“On the revenue (side), we are on track. We have even exceeded our revenue target (for 2023) and we expect that to happen (this) year because we have several tax measures pending in the upper House. I expect those tax measures to be approved by the first quarter of this year,” he said.

Latest data from the Treasury showed that the National Government’s budget deficit narrowed by 10.1% to P1.11 trillion in the January-November period.

State revenues rose by 8.8% to P3.6 trillion, accounting for 95.58% of the P3.729-trillion target set for 2023.

For this year, the Development Budget Coordination Committee expects revenues to hit P4.235 trillion, equivalent to 15.5% of GDP.

The Department of Finance (DoF) earlier said that its priority measures could generate as much as P120.5 billion in additional revenues this year.

These measures include the Passive Income and Financial Intermediary Taxation Act (PIFITA), a value-added tax (VAT) on digital service providers, a new mining fiscal regime, motor vehicle road user’s tax, as well as an excise tax on single-use plastics, pre-mixed alcohol, sweetened beverages and junk food.

The PIFITA, VAT on digital transactions, and excise tax on single-use plastics are currently pending at the Senate committee level, while the excise tax on pre-mixed alcohol is still pending at the House Ways and Means Committee.

“We’re fairly comfortable with the new taxes plus increased revenue efficiency collection. We just approved the Ease of Paying Taxes Act, which was just signed by the President. We expect to be on track with revenue,” Mr. Diokno added.

President Ferdinand R. Marcos, Jr. last week signed into law Republic Act No. 19976 or the Ease of Paying Tax Act, which aims to streamline the tax system.

Under the law, tax returns may now be filed electronically or manually. It also introduces a system that puts taxpayers into micro, small, medium or large categories; and classifies VAT refund claims as low, medium, or high risk.

On the expenditure side, Mr. Diokno said government agencies must ensure “quality spending.”

“We expect around 6% of GDP to be devoted to infrastructure projects, which the economy needs,” he added.

In the 11-month period, government expenditures increased by 3.6% to P4.68 trillion. This accounted for 89.42% of the full-year program.

Economic managers are targeting 6.5-7.5% GDP growth this year. — Luisa Maria Jacinta C. Jocson

BSP may cut rates by up to 100 bps this year

Families walk around Luneta Park in this file photo. — PHILIPPINE STAR/WALTER BOLLOZOS

THE BANGKO SENTRAL ng Pilipinas (BSP) may cut borrowing costs by as much as 100 basis points (bps) this year as inflation is seen to stay mostly within the 2-4% target band, the Philippines’ Finance chief said on Monday. 

Finance Secretary and Monetary Board member Benjamin E. Diokno said the BSP could mirror the policy moves of the US Federal Reserve this year.

“So, a 75-basis-point cut by the Fed this year could actually be matched by the central bank. Or even 100 bps. Right now, the policy rate is at 6.5%, so I see something like 5.5% by the end of 2024,” Mr. Diokno said in an interview with Bloomberg TV.

“The timing, of course, would be data dependent and probably towards the second semester.”

The BSP kept the benchmark rate steady at a 16-year high of 6.5% at its December meeting. This was after the Monetary Board tightened rates by 450 bps from May 2022 to October 2023 to tame inflation.

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

According to Mr. Diokno, inflation is expected to be within the 2-4% range throughout the first quarter of the year.

“Inflation might increase slightly in the second quarter because of base effects. But for the whole year of 2024, it will be within the target band of 2-4%, so that’s good news,” he said.

The central bank expects full-year inflation to ease to 3.7% this year and 3.2% in 2025, according to its baseline inflation forecasts.

Mr. Diokno noted the inflation rate for 2025 may continue to be within the 2-4% range, or around 3.5%.

POLICY TO REMAIN TIGHT
Meanwhile, Fitch Solutions’ BMI Country Risk & Industry Research said inflation would likely average 3.9% this year.

BMI said the Philippine central bank would likely keep policy tight in the first half, with rate cuts seen only in the second semester.

“We think rate cuts will only materialize in the second half of 2024 at the earliest, in line with our expectations for the US Federal Reserve… A quick return to easing before the Fed could dislodge inflation expectations and weaken the peso — something which the BSP will be mindful to avoid,” BMI said in a report dated Jan. 5. 

The US Federal Reserve kept borrowing costs unchanged at 5.25-5.5% at its policy meeting last month, but signaled rate cuts this year.

BMI said the Philippines’ growth momentum “reduces the urgency for the Monetary Board to cut lower interest rates.”

“This 2024 is set to be a stellar year and we forecast the economy to expand by 6.2%. This provides the BSP with more room to keep interest rates at multi-year highs for some time,” it said.

The government has set its 2024 growth target to 6.5-7.5%.

At the same time, Moody’s Analytics in a report said inflation has significantly eased from the 8.7% peak in January 2023, giving room for the BSP to begin monetary policy easing as early as June.

“The progress made supports our view that BSP’s tightening cycle has ended… We expect the BSP to hold the (key) rate steady until June, where we should see the first rate cut of 25 basis points,” Moody’s said.

However, the challenge for this year is to ensure inflation stays firmly within the 2-4% target, it said.

“We expect some volatility in the opening months of the year given the risk that the El Niño weather pattern could strengthen and keep food prices elevated,” it said.

Higher transport charges, increased electricity rates, and rising fuel prices are also other risks to the outlook, according to the research firm.

“That should see inflation bump up around the 4% mark before returning firmly to BSP’s target range by mid-2024. We look for the full-year inflation rate to average 3.4%,” it said.

BMI sees risks to interest rate forecasts tilted to the upside, with the BSP likely to tighten if the impact would be larger than anticipated.

“The biggest uncertainty surrounds the severity of El Niño weather conditions. Similar events are often accompanied by periods of higher food prices,” BMI said.

“While we have factored this into our projections, things could still deteriorate further. A strong surge in price pressures could prompt the BSP to resume its tightening cycle,” it added.

BSP Governor Eli M. Remolona, Jr. earlier said rate cuts are not on the table in the coming months, as inflation should be seen firmly within the 2-4% target range.

The Monetary Board is scheduled to meet on Feb. 15, its first monetary review this year, to discuss policy. — Keisha B. Ta-asan

PHL seeks to unlock AI’s potential amid emerging threats

Adoption of artificial intelligence is expected to continue to increase this year. — REUTERS/DADO RUVIC/ILLUSTRATION/FILE PHOTO

By Ashley Erika O. Jose, Reporter

DIGITALIZATION has become a strategy for many businesses as more companies embraced the trend when the pandemic forced them to accelerate their digital transformation. 

Amid the shift in the digital and business space, artificial intelligence (AI) has emerged as the latest buzzword.

In the Philippines, many companies have shifted their operations to digital, signaling the country’s preparedness to adopt innovative technologies like machine learning technology.

President Ferdinand R. Marcos, Jr. in November said the country is ready to head towards this technological trend with the crafting of the national AI roadmap that is meant to drive innovation while also upskilling the country’s workforce.

At the same time, the country has been hit with cyberattacks, increasing the potential risks that this technological innovation may be used maliciously amid the growing sophistication among cyberattackers. 

According to a report by cybersecurity company Palo Alto Networks, the Philippines has been hit by the highest number of cyberattacks compared with its Southeast Asian peers this year.

Twenty-nine percent of Filipino organizations have reported an increase in cybersecurity-related incidents of 50% or more, with 51% saying that they are at high risk from threats, the report said.

The report has identified cyberattacks affecting businesses in the country including malware (66%), phishing and spear phishing attacks (63%), and password attacks (56%), it added.

Organizations now need to look for more extensive cybersecurity solutions due to the growth in digital transactions, which could expose their corporate network, it said. 

Last year, several government agencies experienced cyberattacks. For instance, the Philippine Health Insurance Corp. was hit by Medusa ransomware where more than 600 gigabytes worth of its members’ data were obtained.

Information and Communications Technology Assistant Secretary Renato A. Paraiso said cyberattacks have become more frequent. 

“On a daily basis, there are constant attempts to infiltrate and breach various systems, not only government systems but even private sectors,” he told BusinessWorld by phone.

For the Department of Information and Communications Technology (DICT), strengthening cybersecurity and upskilling of personnel are crucial in harnessing the potential of any emerging technologies.

However, technology firm Cisco said organizations in the country are unprepared to leverage the power of AI as its study found that only 17% of businesses in the country are prepared to utilize and deploy AI.

UNCHARTED THREATS
This year, the Philippines may face more cybersecurity attacks, prompting calls for the strengthening of infrastructure enterprises through cybersecurity solutions. 

“Cyberattacks are a global phenomenon. It is not isolated within the Philippines. Worse incidents have happened even in established, progressive countries,” Mr. Paraiso said.

Several firms like telecommunications and information communications technology companies have announced the integration or adoption of AI in their operations. Some are integrating AI technology in their contact services operations, cloud platforms, and even financial services platforms. 

“There’s a concern that bad actors and adversaries out there might look to utilize those AI tool sets to create new forms of compromise. Absolutely, there is a potential for adversaries and bad actors to find new, creative and innovative ways of using artificial ways and forms to compromise organizations,” Carl Solder, Cisco chief technology officer for Australia and New Zealand, said.

In the Philippines, the majority of the network remains untrusted, which makes them more prone to attacks, Now Corp. Chairman Mel V. Velarde said, adding that geopolitical tensions may also spark more cyberattacks. 

“Expect more hacking, expect more breaches because we are at the center of a geopolitical crisis. It is not surprising and not possible to deny that we have problems,” he said in a press chat. 

David R. Hardoon, chief executive officer of Aboitiz Data Innovation Pte. Ltd. (ADI), said regardless of whether it’s the Philippines or other countries, “you can assume that cyberattacks are going to increase.”

“With the increase of digitalization, the increase of technology adoption, we have to, unfortunately, but we need to acknowledge that the bad actors are also going to increase the digitization technology,” he said.

AI TO SOLVE AI-DRIVEN THREATS
“In order to protect against [cyberattacks], you also need to start thinking about using AI to fend off those AI-initiated attacks. We all need to use AI to better defend ourselves against the attacks,” Mr. Solder said.

As AI starts to gain momentum and traction, cyberattacks will become more creative to compromise any systems, Mr. Solder said.

“The industry is also looking to utilize these [AI] tool sets to provide better ways and form and to protect against those new forms of initiated attacks,” he said.

To fully unlock the potential of any technology against any threats, the DICT said the focus must be on strengthening networks and education.

“We need to strengthen our cybersecurity posture, constantly upgrade our systems and upscale our personnel to combat these challenges,” Mr. Paraiso said.

For ADI, artificial intelligence and other emerging technology innovations will be a powerful tool in revolutionizing the fight against cyberthreats.

Mr. Hardoon described AI as a mechanism to find patterns as well as irregularities within patterns.

“We should effectively use AI in order to detect [any] irregularities. [It functions as] a kind of verification. We need to use these technologies to making sure defenses and controls of our systems are as high as possible,” Mr. Hardoon said.

To navigate the right formula between challenges and opportunities that AI may bring, the right balance between robust regulatory and ethical framework must be in place, according to advocacy group Digital Pinoys.

“The increasing integration of artificial intelligence has sparked apprehensions regarding its potential misuse, particularly in the context of heightened cyber threats. As AI advances and gains sophistication, concerns grow over the possibility of its exploitation for malicious activities on a grander scale, potentially leading to more extensive cyberattacks,” Ronald B. Gustilo, Digital Pinoys national campaigner, said in a Viber message.

It is important to recognize the transformative impact of AI across diverse domains from healthcare to automation, Mr. Gustilo said.

“The benefits brought by AI, such as improved efficiency and innovative solutions, present opportunities for positive societal impact. To ensure a future where the advantages of AI outweigh potential risks, it becomes imperative to actively address ethical considerations, establish clear regulations, and foster responsible development and deployment practices within the evolving landscape of artificial intelligence,” Mr. Gustilo said.

BoC revenues hit P884B, exceed full-year target

The Customs bureau has ramped up efforts against smuggling of counterfeit goods. — PHILIPPINE STAR/EDD GUMBAN

THE BUREAU of Customs (BoC) surpassed its revenue target for 2023 amid improved collection, trade facilitation and anti-smuggling activities, the Department of Finance (DoF) said on Monday.

Data from the DoF showed that the agency collected P883.624 billion as of Dec. 31, 2023, exceeding its P874.166-billion full-year target by 1.08%.

This was also 2.46% higher than its P862.419-billion collection in 2022.

Collections by the agency’s Post Clearance Audit Group rose by 6.43% to P1.959 billion last year.

The BoC also generated P1.793 billion in revenues from Prior Disclosure Program applications, P166.286 million from other audit findings, and P164.503 million from the sale of forfeited goods through public auctions.

Customs said as of end-2023 its digitalization rate stood at 96.99%, which is equivalent to 161 out of 166 customs processes.

“Several initiatives in the pipeline include the BoC e-Pay Portal System, the e-Auction System, the Automated Export Declaration System (AEDS), and the National Customs Intelligence System,” it added.

In 2023, Customs also said that it seized P43.295 billion worth of smuggled goods.

The BoC filed 90 criminal cases before the Department of Justice. Of this, 60 cases were related to agricultural smuggling. This was followed by 13 cases related to fuel, four related to food items, four related to illegal drugs, four related to general merchandise, one related to cigarettes and one related to used clothing.

“In 2023, the BoC also recorded four conviction cases on the unlawful importation of general merchandise, cigarettes, and agricultural products,” it said.

“As part of monitoring efforts and post-evaluation of importers and brokers, the bureau revoked the accreditation of 118 importers and 46 customs brokers found to be in violation of the provisions stipulated in the Customs Modernization and Tariff Act,” it added.

The BoC is expected to collect P1 trillion this year, based on the latest Budget of Expenditures and Sources of Financing.

“In 2024, (I) expect the bureau to continue modernizing its customs administration and processes to effectively curb illicit trade, generate more revenues to fund the government’s priority development projects, ensure the protection of our consumers, and enhance the country’s ease of doing business,” Finance Secretary Benjamin E. Diokno said in a statement. — Luisa Maria Jacinta C. Jocson

MMFF 2023 grosses P1B, extends theatrical run

THE 49th Metro Manila Film Festival (MMFF) has extended its run to Jan. 14, with the box office take double that of last year’s festival.

The extension was decided upon “in response to the public clamor,” MMFF said in a statement.

“We at the MMFF would like to express our deepest gratitude to all who have supported us and watched the movie entries, particularly those who requested for the MMFF movies to extend beyond its original run,” Don Artes, chairman of the Metro Manila Development Authority (MMDA), said in a statement posted on Jan. 7, the day the festival was slated to end. The MMDA runs the yearly film festival.

The festival’s 10 movies garnered P1 billion collectively over the initial two-week run, twice as much as the P500 million earned by the eight movie entries last year.

Specific box office data per movie is unavailable, with the MMFF choosing to withhold the information so as not to influence viewers’ choice on what to watch.

The 10 movies in this year’s lineup are A Family of Two, Kampon, Penduko, Rewind, Becky and Badette, Broken Heart’s Trip, Firefly, GomBurZa, Mallari, and When I Met You in Tokyo.

All the entries will be screened at the inaugural Manila International Film Festival (MIFF), set for Jan. 29 to Feb. 2 in Los Angeles, California.

“Truly, this year’s MMFF is a certified box office hit. This is a good sign as we gear up for the MIFF,” said Mr. Artes. — Brontë H. Lacsamana

Meralco sees slight increase in generation charge for January

PHILIPPINE STAR/ MICHAEL VARCAS

POWER distributor Manila Electric Co. (Meralco) is expecting a slight increase in the cost of power from suppliers this January, the company’s spokesman said on Monday.

“We are still completing the billing from our suppliers, but initial indications show that there may be a very minimal increase in the generation charge in the January bills,” Joe R. Zaldarriaga, Meralco spokesperson and vice-president for corporate communications, said in a Viber message.

He noted higher charges from the Wholesale Electricity Spot Market (WESM), the trading floor of electricity.

Data from the Independent Market Operator of the Philippines showed that the average electricity price in WESM increased to P4.74 per kilowatt-hour (kWh) as of Dec. 25, from P4.12 per kWh in November.

Mr. Zaldarriaga said this was likely linked to a rise in the average capacity in the Luzon grid that is unavailable due to outages.

Some power plants are undergoing scheduled maintenance shutdown in preparation for the summer months, he said.

In December last year, the power distributor implemented a reduction from P12.0545 per kWh to P11.2584 per kWh amid a decrease in generation charges.

Generation charge usually accounts for more than half of a consumer’s total monthly electricity bill. 

Meanwhile, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, expects a slight decrease due to lower coal prices in December-January and a lower Dubai crude price, to which the Malampaya gas price is pegged.

“But Meralco noted higher plant outage in WESM, so this may cancel out any potential price decrease,” he said in a Viber message.

Mr. Oplas said that he expects power rates to drop in the first quarter despite the onset of El Niño and upcoming dry months.

“This will affect and reduce hydro output, raise power demand, but since this is a mild El Niño, at least in Metro Manila and neighboring provinces, power demand will not rise as projected by alarmist models and scenarios,” he said.

Meralco said it has prepared to ensure the delivery of power to its consumers with the bid launch for interim power supply agreements (IPSAs) covering a 260- MW peaking requirement and 400-MW baseload requirements.

The power distributor also said that it aims for the procurement to be “ready in time for the summer months when demand usually spikes.”

The deadline for generation companies to submit expressions of interest for both IPSAs is Jan. 15.

A pre-bid conference will be held on Jan. 22, while the bid submission deadlines for the 260 MW and 400 MW are set on February 26 and 27, respectively.

“I would also like to remind our customers to be mindful of their consumption and continue practicing energy efficiency,” Mr. Zaldarriaga said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Oppenheimer starts Oscars march with 5 Golden Globe trophies

THE cast of Succession backstage with their Best Television Series - Drama award.

OPPENHEIMER, the biographical movie about the inventor of the atomic bomb, was crowned best dramatic film at the Golden Globe Awards Sunday night, setting up what looks to be a successful run for the picture on the Hollywood awards circuit.

The Universal Pictures film took home five awards in all, including best director for Christopher Nolan, dramatic actor for Cillian Murphy, and supporting actor for Robert Downey, Jr.  Lily Gladstone won the best dramatic actress award for Apple, Inc.’s Killers of the Flower Moon.

Oppenheimer and Barbie, from Warner Bros., led among films with the most nominations going into the ceremony. Barbie took home the top prize in a new category designed to recognize popular films, but lost the race for best comedy picture to Poor Things, a fantasy from Walt Disney Co.’s Searchlight division. Emma Stone won best comedic actress for her work in Poor Things.

Succession, the HBO show about the battle to lead a family run media empire, won best dramatic TV series, picking up four awards in all. The Bear, a series about a Chicago restaurant from Disney’s FX unit, won best TV comedy.

The Golden Globes are one of the first events on the awards circuit, which will culminate with the Oscars on March 10. Studios campaign vigorously to win the trophies, which can lead to a bump in ticket sales and online purchases of their films, and score points with talent. Oscar nominations will be announced on Jan. 23.

This year’s Globes are the first under new owners. Financier Todd Boehly and Hollywood trade publisher Jay Penske took control of the program last year after a scandal involving its previous owner, the Hollywood Foreign Press Association.

The association was criticized for its lack of diversity and ethical lapses. The voting body has since been expanded to 300 entertainment journalists, whose names and photos are published on the Golden Globes’ website. Gifts to members have been banned.

The Globes ceremony, the 81st in its history, was hosted by comedian Jo Koy. It aired on CBS after a long run on NBC ended.

Barbie and Oppenheimer were released on the same weekend in July, an event dubbed “Barbenheimer” on social media, and that led some moviegoers to see both pictures on the same day. Barbie was the top film release last year with $1.44 billion in global ticket sales, while Oppenheimer finished third with $952 million, according to BoxOfficeMojo. — Bloomberg

And the winner is…

The following is the full list of winners at the 2024 Golden Globe awards on Sunday.

FILM
Best Drama: Oppenheimer
Best Comedy or Musical: Poor Things
Best Director: Christopher Nolan, Oppenheimer
Best Actor, Drama: Cillian Murphy, Oppenheimer
Best Actress, Drama: Lily Gladstone, Killers of the Flower  Moon
Best Actor, Comedy or Musical: Paul Giamatti, The Holdovers
Best Actress, Comedy or Musical: Emma Stone, Poor Things
Best Supporting Actor: Robert Downey, Jr., Oppenheimer
Best Supporting Actress: Da’Vine Joy Randolph, The Holdovers
Best Animated Film: The Boy and the Heron
Best Non-English Language Film: Anatomy of a Fall (France)
Best Screenplay: Anatomy of a Fall
Best Original Score: Oppenheimer
Best Original Song: “What Was I Made For?,” Barbie
Cinematic and Box Office Achievement: Barbie

TELEVISION
Best Drama Series: Succession
Best Comedy/Musical Series: The Bear
Best Actor, Drama: Kieran Culkin, Succession
Best Actress, Drama: Sarah Snook, Succession
Best Supporting Actor: Matthew Macfadyen, Succession
Best Supporting Actress: Elizabeth Debicki, The Crown
Best Actor, Comedy/Musical: Jeremy Allen White, The Bear
Best Actress, Comedy/Musical: Ayo Edebiri, The Bear
Best Limited Series, Anthology Series or Motion Picture Made for Television: Beef
Best Performance by a Male Actor, Limited Series, Anthology Series or Motion Picture Made for Television: Steven Yeun, Beef
Best Performance by a Female Actor, Limited Series, Anthology Series or Motion Picture Made for Television: Ali Wong, Beef
Best Performance in Stand-up Comedy on Television: Ricky Gervais: Armageddon — Reuters

DMCI Power reports 7% increase in energy sales 

OFF-GRID energy generator DMCI Power Corp. (DPC) registered a 7% increase in energy sales volume in 2023 due to higher demand in underserved and unserved areas, its parent company said on Monday.

In a regulatory filing, DMCI Holdings, Inc. said that its subsidiary recorded an energy sales volume of 454 gigawatt-hours (GWh) last year, an increase from the 426 GWh in 2022.

“Our sales have grown steadily for 11 consecutive quarters because of solid demand and our targeted investments in underserved and unserved areas,” DPC President Antonino E. Gatdula, Jr. said.

The company operates in the provinces of Palawan, Masbate, and Oriental Mindoro.

According to the DPC, energy sales to Palawan increased by 12% to 200 GWh from 179 GWh in 2022. This accounted for 44% of the total sales volume. 

The company attributed the increase to the “combined effect of higher capacity and demand.” The Palawan Electric Cooperative, Inc. served the 67-megawatt (MW) demand of the province, it said.

In August, the company commenced the operations of its P1.5-billion thermal power plant in Palawan, which it said coincided with “a surge in both local and international tourist arrivals in the area.”

Masbate energy sales, contributing 34% to the overall sales, increased by 5% to 156 GWh from 148 GWh previously due to higher demand, approximately 25-26 MW, and plant availability.

Meanwhile, energy sales to Oriental Mindoro fell by 2% to 97 GWh from 99 GWh “due to the increased availability of renewable energy power plants.” This accounted for 22% of the total sales volume with a demand of about 70 MW.

In 2023, DPC had a total installed capacity of around 160 MW, a 17% increase from the previous year.

For the third quarter, DPC reported a core net income of P267 million, a 26% increase from the previous year, driven by growth in electricity sales volume, lower fuel costs, and wider margins.

Revenues dropped by 13% to P1.86 billion due to the operation of the Palawan thermal power plant with a lower tariff, which DPC said has softened the impact of higher energy sales.

Established in 2006, the company is primarily engaged in energizing off-grid small and remote islands. Its portfolio includes diesel, bunker, and thermal energy. — Sheldeen Joy Talavera

Taylor Swift is helping Singapore ditch its dull reputation

IT IS the thing every mother of a teenage girl dreads. Taylor Swift is coming to your city — and you don’t have tickets. I scoured high and low for what has become a precious commodity in Singapore these days, without success: They’d all been snapped up in a buying frenzy for The Eras Tour last year. The going rate on the resale market is anywhere between S$3,000 ($2,253) to above S$5,000. Luxury VIP packages can go up to S$50,000. You would think with six shows — in a stadium that holds 55,000 in a city of under 6 million people — that it would be possible to get a couple of tickets. Surely not every 13-year-old is attending the event?

But that’s precisely the point. Swift’s performances are attracting thousands to Singapore, including fans from Southeast Asia and beyond. It’s not just the Queen of Pop. From Coldplay to Seinfeld to Ed Sheeran and even the Broadway musical Hamilton, it feels like every major act is coming to the Lion City in the post-COVID era. Visitors are thronging to these events, so much so that locals, irate at having lost out on tickets, have proposed that sales should be prioritized for citizens. The entertainment industry is gearing up for a bumper year. Tourist arrivals are also recovering, reaching about 80% of pre-pandemic levels.

The concerts have revitalized its reputation, according to Lau Kong Cheen, associate professor at the Singapore University of Social Sciences. “It makes us look like a modern, open-minded, and vibrant place,” he told me. “It’s creating an image that is inviting to entertainment acts from all over the world, resonating with people of all walks of life.”

This was not always the case. In 2018, the island was voted one of the least exciting cities in the world in a Time Out City Life Index, and pronounced the worst rated for culture. Not to be cowed, the Singapore Tourism Board hit back with a smart and sarcastic video that showcased highlights of the island. This month, another blow to its reputation came via a slight from a Malaysian actor, who recommended that visitors not spend more than two to three nights because it is “man-made” and “too boring.” That rankled local netizens, eventually forcing an apology from the offending party.

The truth is Singapore has always struggled with a dull reputation compared to its more grungy and authentic neighbors like Jakarta and Bangkok in Southeast Asia. Long hair was banned in the 1970s under a scheme called Operation Snip Snip, which meant bands like Led Zeppelin had to cancel their gigs because they weren’t allowed to enter without getting a haircut. It is often described as safe and stable — worthy virtues when trying to attract investment flows, not so much when you’re trying to have a bit of fun.

But Singapore is on its way to becoming Asia’s capital of cool, by design if not through any organic means. The government’s build-it-and-they-will-come approach, often scornfully dismissed for being too manufactured, has in large parts worked. The process started more than a decade ago, with the return of Formula 1, and the introduction of casinos, both at the time huge shakeups to its staid image. The gamble has paid off. Casinos brought in a record $649 million in the second quarter of last year, and F1 regularly attracts thousands of visitors and famous musical acts annually, making that weekend in September a key event on the global entertainment calendar.

It has also entered the cinematic zeitgeist, with the global success of films like Crazy Rich Asians showcasing some of the city-state’s most beautiful attractions. It’s now being name dropped in popular series like Succession, as a cooler destination to host a party than even New York.

So is it, as the Financial Times proclaimed earlier this year, finally cool? Not so fast, says Vijay Singh, a local producer and music artist who also goes by the name  Swtlkr. “While we may have progressed on bringing in a lot of commercial artists, what is sorely missing is the support that develops culture,” he told me. “What’s happening now doesn’t benefit local artists or musicians.”

Indeed, there is still much work to be done on Singapore’s journey to coolness. It doesn’t have Tokyo’s cultural relevance, or Seoul’s booming film and music industry. Still, there is much to celebrate, particularly given the options that are now available. The plethora of choices also makes the pain of not getting Taylor Swift tickets far more bearable. Looks like it will be Hamilton for us instead. — Bloomberg Opinion

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