SEC clears fundraising of San Miguel, Vista Land

October 20, 2023 | 12:06 am

THE Securities and Exchange Commission (SEC) has approved the planned offerings of Ang-led conglomerate San Miguel Corp. (SMC) and Villar-led property developer Vista Land and Lifescapes, Inc. (VLL).

During an en banc meeting on Oct. 17, the SEC resolved to render effective the registration statements of SMC and VLL to raise as much as P65 billion and P35 billion, respectively,

The separate offerings will be done in tranches within three years.

“SMC and VLL completed their registration processes within 33 and 32 days, respectively, in line with the SEC’s commitment to a speedy and efficient registration process,” the corporate regulator said in a statement on Thursday.

According to the commission, SMC’s registration statement covers 866.67 million of its Series 2 preferred shares.

For the initial tranche, San Miguel will offer 400 million preferred shares at P75 each totaling P30 billion, with an option to oversubscribe up to 266.67 million preferred shares worth more than P20 billion.

The conglomerate expects to generate as much as P49.62 billion from the initial tranche if the oversubscription option is fully exercised. The preferred shares would be listed and traded on the main board of the Philippine Stock Exchange.

“The company intends to use a portion of the net proceeds to repay Philippine peso-dominated short-term loan facilities and previously issued bonds, and to invest in airport and airport-related projects,” the SEC said.

SMC engaged Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. as joint issue managers for the offer.

The three firms were also tapped as joint lead underwriters and bookrunners alongside Asia United Bank Corp., BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., and Union Bank of the Philippines.

Meanwhile, VLL will initially offer fixed-rate bonds worth P6 billion, with an oversubscription option of up to P4 billion, consisting of Series F bonds due in 2026 and Series G bonds due in 2028. The offering is part of the company’s shelf registration of its debt securities program with a principal amount of P35 billion.

VLL expects to raise more than P9.83 billion if the oversubscription option is fully exercised.

“It intends to primarily use the net proceeds to refinance maturing obligations and for general corporate purposes,” the SEC said.

The bonds will be listed and traded at the Philippine Dealing & Exchange Corp.

VLL engaged China Bank Capital, SB Capital, and Union Bank as joint lead underwriters and bookrunners, with China Banking Corp. Trust and Asset Management Group being identified as trustees. — Revin Mikhael D. Ochave

Netflix, Skydance Animation strike multi-year film deal

October 20, 2023 | 12:05 am

LOS ANGELES — Netflix has signed a multi-year agreement with Skydance Animation to develop animated feature films that will be released exclusively on Netflix, the streaming service said on Wednesday.

John Lasseter, Walt Disney Co.’s former animation head and co-founder of Pixar, will guide production of the films. Lasseter began working at Skydance Animation in 2019 after taking a leave of absence from Disney in 2017. He was a driving force behind animation hits like Toy Story and Cars.

The deal with Netflix comes after several creative collaborations between the two companies, including the films The Adam Project and Spy Kids: Armageddon as well as the TV series FUBAR and Altered Carbon.

Skydance Animation previously worked with Apple TV+, including on the animated film Luck, which premiered in 2022.

The first film of the multi-year deal to be released on Netflix in 2024 will be Spellbound, the story of a princess on a mission to save her family from a supernatural spell. Rachel Zegler, Nicole Kidman, and Javier Bardem are featured in the voice cast.

The buddy comedy Pookoo about a small woodland creature and a majestic bird will be released in 2025.

Skydance Animation, based in Los Angeles and Madrid, will also roll out Ray Gunn with Ratatouille director Brad Bird and an untitled Jack and the Beanstalk project directed by Rich Moore of Zootopia. — Reuters

San Miguel, Pangasinan gov’t agree on expressway link

October 20, 2023 | 12:05 am

SAN MIGUEL Corp. (SMC) has signed a toll concession and joint venture agreement with the local government of Pangasinan for the Pangasinan Link Expressway (PLEX) project.

In a media release on Thursday, the company said the project aims to create a seamless link to the soon-to-be-launched New Manila International Airport (NMIA) in Bulacan, which it expects to be the country’s premier international gateway.

SMC said the 76.80-kilometer project will start at the Tarlac-Pangasinan-La Union Expressway (TPLEX) exit in Binalonan, which is part of its goal to strengthen road networks in Luzon.

“With PLEX connecting to other infrastructure such as TPLEX, which will support access to the NMIA, this project will significantly benefit Pangasinan’s local industries, home-grown products, and agricultural sector,” SMC President and Chief Executive Officer Ramon S. Ang said.

The PLEX project is divided into two phases: the first phase will extend 2.76 kilometers from TPLEX to Lingayen, while the second phase will extend to Alaminos, Pangasinan.

The first phase will be divided into three segments: the first 6.9-kilometer section from Binalonan to Manaoag; the 11.30-kilometer section from Manaoag to Calasiao; and the third segment, which is the 22.17-kilometer section from Calasiao to Lingayen.

SMC said a 2.39-kilometer spur road will also be built in Calasiao, while the project’s second phase will be a demand-driven expansion to Alaminos, Pangasinan. — A.E.O. Jose

MORE Power boosts Iloilo City’s economic growth — UA&P study

October 20, 2023 | 12:04 am

THE growth in MORE Electric and Power Corp.’s (MORE Power) customer base has contributed an average of P4.99 billion annually to Iloilo City’s economy, as assessed by the University of Asia and the Pacific (UA&P).

“On average, what is injected in the economy of Iloilo is close to P5 billion or almost 4% of the economy of the city of Iloilo. That’s quite significant,” UA&P President Winston Conrad B. Padojinog said, citing his study during a business summit in Iloilo City on Thursday.

He highlighted the substantial impact of MORE Power’s strategic investments and operational improvements on the local economy.

The initiatives, including equipment upgrades and system rehabilitation, are said to have significantly improved the quality of power distribution services, driving economic growth in Iloilo City.

Mr. Padojinog attributed the 3.8% gross city domestic product to MORE Power being a reliable electricity service provider, creating an average of 2,200 jobs every year, which is said to have generated a total of P1.75 billion worth of additional income for Iloilo City’s households from 2020 to 2022.

“On average, annually it creates 2,200 jobs,” he said. “Just imagine if it shuts down thus a lot of jobs will be lost.”

MORE Power created a total of 6,693 jobs directly and indirectly from 2020 to 2022, he said.

The reduction in system losses has directly benefited consumers, providing them with extra income, Mr. Padojinog said. As a result, consumers injected about P1.01 million into the economy through additional consumption spending in 2022.

Due to the enhancements, more customers subscribed to MORE Power’s services, leading to an increase in captured customer connection, which was 90,692 in 2022, higher than the 84,735 recorded in 2021.

“You could see that a reliable utility infrastructure, a reliable infrastructure provider, will have reverberating effects on an economy. So the opposite can be true. If you have an unreliable service provider, it will lead to rent-seeking behavior,” Mr. Padojinog said. — Sheldeen Joy Talavera

MIF: Picking up the pieces?

October 20, 2023 | 12:04 am

The directive of President Marcos dated Oct. 12 signed by Executive Secretary Lucas Bersamin was quite parsimonious with words:

“With reference to the IRR (Implementing Rules and Regulations) of RA No. 11954, and upon the directive of the President, the Treasurer of the Philippines, in coordination with the LBP and DBP, is hereby directed to suspend the implementation of the IRR of RA No. 11954 pending further study thereof, and to notify all concerned heads of departments, bureaus, offices and other agencies of the executive department, including the GOCCs of such action.”

The directive was rather silent on the extent of the study, or the relevant timeline to doing due diligence.

At this point, we could only speculate on the possible reasons why Malacañang had directed the suspension of the implementation of the Maharlika Investment Fund (MIF) and subject it first to further study. Due diligence should have been done before it was even submitted to Congress for legislation. Definitely, not after it became a law.

For some MIF champions had lost face when they had to back off and delete the inclusion of pension funds of both the GSIS and the SSS (Government Service Insurance System and Social Security System). The foreign exchange reserves of the Bangko Sentral ng Pilipinas (BSP) were also originally targeted to fund the MIF until the sourcing was limited to its annual dividends. At first, the commitment of BSP dividends to the MIF was virtually forever, until better judgment prevailed and only the first two years’ worth of dividends were earmarked. BSP was even mandated to extend regulatory relief to both institutions should they run into difficulty as a result of their participation in the MIF.

While Congress can legislate otherwise, it is folly to ignore the need to keep the monetary authority financially robust. Otherwise, it would be contradicting the intent of both the 1987 Philippine Constitution and the amended BSP Charter to establish an independent and autonomous central bank. Institutional independence means it should be properly capitalized.

The law mandated that the bulk of the seed money was to be sourced from the two government financial institutions (GFIs). Landbank (LBP) was to contribute P50 billion and the Development Bank of the Philippines (DBP) P25 billion. If there was complete staff work, it would have dawned on the proponents that the GFIs’ contributions to the seed fund would have a 100% capital charge. Unless they are able to raise their capital, they cannot lend out without weakening their capital adequacy ratio and risk violating BSP capital requirements.

The broad issue behind the BSP and the GFIs is therefore financial stability. Is the BSP financially prepared to provide financial support to any financial institution, including the GFIs, if necessary? But the BSP itself is required by the Maharlika law to remit its dividends to the Fund instead of keeping them for recapitalizing itself! Will the GFIs still be compliant with the BSP capital requirements after they remitted their shares?

Was this the motivation behind the presidential directive? Was it meant to pick up the pieces following the quick but much criticized readings in both houses of Congress?

If we are to take it from Rappler, it’s a nope. Such a suspension “has little to do with the concerns of banks falling short of capital requirements.” It is more in preparation for the upcoming announcements on the possible revamp of the President’s cabinet in the coming weeks. At least three cabinet members are rumored to be replaced. Quoting a source, Rappler claimed that the suspension was necessary for administrative flexibility. The President, the appointing power for the officers and board members of the Maharlika Investment Corp. (MIC), should be allowed to choose from outside the list of nominees submitted by the advisory body pursuant to the law. That could politicize the MIF and violate some of the 24 Santiago Principles cited as one of the safeguards in the law itself.

Whether the IRR could correct this legal limitation must be the subject of “further study.”

But if political expediency is now going to define our legislative process and execution of public policy, it is time to pray. There must be a better explanation, otherwise the elephant in the room will stay for good.

For one, the GFIs would not seek regulatory relief if they don’t need it. Some actual numbers have been proffered to show that the GFIs continue to be resilient and compliant, but those numbers are old. If this is true, it is possible that when they have to sustain their rate of lending, their capital adequacy ratios could likely decline over time. In the last two years, with economic scarring during the pandemic, the GFIs’ balance sheets must have moved. Only the GFIs and the BSP examiners are in a position to confirm their current financial condition.

For another, on the same day that the GFIs sought a reprieve from the banking regulators, Malacañang issued Executive Order (EO) 43 reducing the percentage of net earnings the Landbank should remit to the National Government. The EO sliced it from 50% to 0%. The DBP is expected to seek the same privilege. The law on dividends stipulates that GOCCs and GFIs should remit at least 50% of their annual net earnings to the National Government.

With the provision that the President may alter the rate upon the recommendation of the Finance Secretary, we can infer that the latter must know something we do not know at this point. Of all the cabinet members, it is the Finance Secretary who should be the first to object because under the law, those dividends are the income of the General Fund. He should know that every peso counts in generating revenues; the fiscal deficit already stood at 4.8% of GDP for the first six months of 2023.

He would have to compensate for this waiver either through the imposition of higher taxes, higher borrowings, or both. Yes, there seems to be an implicit recognition that fiscal sustainability is at risk, but come hell or high water, the order stands that MIF should be launched by the end of this year.

Malacañang should be able to face the truth, and the truth is that the Philippine economy succeeded in growing without interruption from 1999 through 2019, even snubbing the debilitating effects of the Global Financial Crisis, without a sovereign investment fund. We earned successive credit upgrades and grabbed investment credit ratings with positive outlook without a sovereign investment fund. We freed ourselves in 2006 from 44 long years of IMF stewardship without a sovereign investment fund.

It simply is not true that we need the MIF to attract foreign capital, to diversify our investment, to mobilize resources to fund infrastructure and sustain economic growth and mitigate poverty. Its seed capital is from the general government fund; there is no new money. We are investing from a position of capital shortage.

If this whole exercise would end up implementing the MIF anyway, the President would have missed the opportunity for rectifying one of the key weaknesses of his Administration, the others being inflation, generating jobs, and addressing poverty and inequality. The challenge is to restore some rationality in the use of the national budget. We cannot overthink enough the Maharlika; it involves public money.

Unfortunately, the initial signs are pointing in that direction. Before he flew to Saudi Arabia yesterday, President Marcos was quoted saying “we have found more improvements we can make… we are still committed to having it operational by the end of this year.”

Despite the significant erosion of his popular support, the President can now engineer a recovery and one way of doing it is to prolong the suspension of the Maharlika launch and ask Congress to repeal RA 11954. If done with the same passion and drive that helped steamroll it through Congress, the President can redeem himself and prevent doing a disservice to the Filipino people. The petitions against its unconstitutionality at the Supreme Court will be rendered moot and academic.

The Maharlika fallout was quite serious, but now we are given the chance to pick up the pieces.

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Music publishers sue AI company Anthropic over song lyrics

October 20, 2023 | 12:04 am

MUSIC publishers Universal Music, ABKCO, and Concord Publishing sued artificial intelligence (AI) company Anthropic in Tennessee federal court on Wednesday, accusing it of misusing an “innumerable” amount of copyrighted song lyrics to train its chatbot Claude.

The lawsuit said Anthropic violates the publishers’ rights through its use of lyrics from at least 500 songs ranging from the Beach Boys’ “God Only Knows” and the Rolling Stones’ “Gimme Shelter,” to Mark Ronson and Bruno Mars’ “Uptown Funk” and Beyonce’s “Halo.”

Representatives for Anthropic did not immediately respond to a request for comment.

The publishers’ attorney Matt Oppenheim declined to comment on the litigation but said it is “well-established by copyright law that an entity cannot reproduce, distribute, and display someone else’s copyrighted works to build its own business unless it secures permission from rightsholders.”

Many copyright owners including authors and visual artists have sued tech companies such as Meta Platforms and Microsoft-backed OpenAI over the use of their work to train generative-AI systems.

The music publishers’ lawsuit appears to be the first case over song lyrics and the first against Anthropic, which has drawn financial backing from Google, Amazon, and former cryptocurrency billionaire Sam Bankman-Fried.

The lawsuit accused Anthropic of infringing the publishers’ copyrights by copying their lyrics without permission as part of the “massive amounts of text” that it scrapes from the internet to train Claude to respond to human prompts.

The publishers also say that Claude illegally reproduces the lyrics by request, and in response to “a whole range of prompts that do not seek Publishers’ lyrics,” including “requests to write a song about a certain topic, provide chord progressions for a given musical composition, or write poetry or short fiction in the style of a certain artist or songwriter.”

For example, the lawsuit said that Claude will provide relevant lyrics from Don McLean’s “American Pie” when asked to write a song about the death of rock pioneer Buddy Holly.

The publishers asked the court for damages and an order to stop the alleged infringement. — Reuters

Australia’s Digital Classifieds Group acquires Lamudi Philippines and Indonesia

October 20, 2023 | 12:03 am

AUSTRALIA-BASED Digital Classifieds Group (DCG) has acquired the assets of online property marketplace Lamudi in the Philippines and Indonesia to partly sustain its growth.

In a statement on Thursday, DCG said it had acquired Lamudi assets from dubizzle Group, formerly known as EMPG. The recent deal came after DCG acquired Bangladeshi property portal Bproperty in January.

DCG claims that the recent acquisition makes it the second-largest property portal operator in Asia.

“This is an exciting time for Lamudi. We see a lot of opportunities to improve the Philippine real estate market, and with the support of DCG Group, Lamudi will continue to strengthen its market leadership,” Lamudi Philippines Country Head Anurag Verma said.

“By providing an easy-to-use and secure platform for property transactions, we build towards our goal of making the property buying journey easy, trustworthy, and convenient for Filipinos, thereby creating value for partners,” he added.

After the acquisition, DCG now operates leading real estate portals in five Asian markets: Indonesia, the Philippines, Bangladesh, Cambodia, and Papua New Guinea. The group also now has a global workforce comprising over 900 staff members.

“Lamudi, under the stewardship of the dubizzle Group and the management team, have created dominant classifieds and transactional property marketplaces in two of Asia’s most exciting markets: Indonesia and the Philippines,” DCG Group Chief Executive Officer Mathew Care said.

“Our vision is to build a market-leading classifieds group in Southeast Asia, a region of incredible opportunities and this acquisition is a catalyst to delivering this vision. I am incredibly excited to enter these markets and welcome the Lamudi team to the DCG family,” he added.

Founded in 2013, Lamudi has since shifted to a transaction-based business from its initial focus on building dominant property classifieds in frontier markets.

“DCG and Lamudi have shared a similar vision for many years; to provide the best and most trusted platform to transact property in their respective markets. Both companies have delivered on this promise, and I’m confident that Lamudi will continue to achieve new highs under DCG. This is an exciting new chapter for Lamudi and our staff,” Lamudi Chief Executive Officer and Founder Kian Moini said. — Revin Mikhael D. Ochave

Gaza hospital tragedy escalates war risk, no matter who’s to blame

October 20, 2023 | 12:03 am

TRUTH, infamously, is the first casualty of war and that’s never more important to remember than after a major tragedy such as the reported strike on a Gaza hospital, with initial death-toll estimates exceeding 500.

It isn’t just the scale and pain of the human loss that has shocked. The event also upended US President Joe Biden’s visit to the region, where he had been due to meet separately with Israeli and Arab leaders on containing the conflict and getting aid to civilians in Gaza.

That latter summit has now been canceled, and inevitably so. Such is the outrage on the Arab Street that no regional leader can afford to be seen negotiating today with Israel’s most important ally. And whereas European lawmakers have avoided attributing blame while condemning the attack, Egypt and Saudi Arabia immediately pointed to Israel.

In a very small pool, Israel is a top suspect: It has been conducting an intense aerial bombing campaign with just the kind of heavy munitions that could collapse a hospital and cause mass casualties. Yet at this point, there are very few things that can be said with certainty, and none concern the details of the attack or its perpetrators.

The first certainty is that Tuesday’s events have brought escalation of the conflict closer, narrowing the space for caution and compromise and increasing support across the region for other state and non-state actors to pile in, should Israel launch its expected ground invasion. No matter what evidence emerges to the contrary, popular opinion across much of the world, especially the Muslim world, will remain convinced that Israel killed more than 500 people in a deliberate and heinous attack on a hospital, which amounts to a war crime.

A second certainty is that there will be more such tragedies for Palestinian non-combatants, and therefore public relations disasters for Israel, if and when it begins its ground attack. The international response already shows that Israel’s stock response — the arguments that Hamas bears ultimate responsibility, and that all wars involve collateral damage — has already lost any power it had to persuade. This needs to be weighed by Prime Minister Benjamin Netanyahu and his war cabinet as they decide not if, but how, to punish Hamas and protect Israeli citizens.

Finally, this is the result of Palestinian civilians being cynically used as pawns, as they have been so often in the intractable Israeli-Palestinian conflict. Hamas has tried to prevent civilians leaving the main battlefield in the North, so it can use them as human shields. Israel, for its part, took responsibility for the well-being of Gaza’s residents when it occupied the space in 1967, and is yet again failing that duty of care, no matter how complex the issue. Egypt has refused to let civilians out of Gaza, saying they should “stand their ground” for the wider Palestinian cause. Iran, at a minimum has cheered the conflict, and more likely helped to plan it, in the hope of scoring just such propaganda victories at the expense of Palestinian and Israeli lives.

When it comes to the facts of the disaster, though, nothing is even remotely clear. Everything about the Israeli reaction since the blast suggests that if it was responsible, something went badly wrong. For Israel, a strike on a crowded hospital can only bring strategic loss. The Israel Defense Forces (IDF) have rushed out purported evidence aimed at showing the cause of the hospital fire was a failed missile launched by Palestinian Islamic Jihad, a political rival and wartime partner of Hamas. The group has denied responsibility. Hamas has accused Israel.

The IDF exhibits include a video of a misfired rocket launch from within Gaza that it says was recorded at precisely the time the hospital was hit; before-and-after satellite images of the hospital that show no signs of the cratering a heavy aerial bomb would cause; images of damage to the hospital roof and adjacent parking lot that would be consistent with a missile that broke up as it fell to the ground, with the main cause of destruction not an explosion but a burning payload of accelerant; and an alleged recording of two Hamas operatives speaking by phone about how the missile was “one of ours.” On Wednesday, Biden said he’d been shown evidence by the Pentagon suggesting Israel wasn’t responsible for the deadly blast at a Gaza City hospital.

None of this has been verified and, given what’s at stake, nothing either side presents or claims can be accepted at face value. In almost every war ever conducted, governments have shown they aren’t above deception. Distrust of officials and their props in the context of war is not a judgment, but a requirement.

By the same token, few of the allegations from Hamas or its health authority have been independently verified either. That includes claims about the strike itself, its origin, and the number of casualties — which, at more than 500, would be extremely rare for a single strike, though certainly conceivable in a densely packed hospital.

We need to withhold judgment as to responsibility for this monstrous attack until the facts have been verified. In the meantime, the loss of innocent Palestinian life is there for all to see. It argues that Biden’s visit and the role of diplomacy in trying to prevent further escalation and civilian bloodshed have increased just as much in importance as in difficulty.

BLOOMBERG OPINION

62% of overseas professionals plan to return home within 5 years

October 20, 2023 | 12:03 am

SOME 62% of overseas professionals want to return to the Philippines within the next five years, according to global recruitment consultancy firm Robert Walters.

A Robert Walters survey with 120 respondents from various industries like banking and information and communication technology cited the need to take care of their families as their primary motivation for wanting to return.

“As the number of overseas Filipino professionals returning home continues to grow, it presents a valuable opportunity for local employers,” Robert Walters Philippines Director Alejandro Perez-Higuero said in a statement.

About 46% of respondents seeking to return said they were optimistic about the Philippines’ growth prospects and opportunities to start their own businesses.

Some 30% of respondents had no intention of returning, citing lack of confidence in the country’s economic stability.

Of those who want to continue working overseas, 80% said their host country has a more stable economy than the Philippines.

“As business priorities undergo continuous transformations, it becomes imperative to address the ongoing shortage of highly skilled talent in the country,” Mr. Higuero said.

“These returning professionals often possess enhanced technical skills and a more adaptable mindset, honed through their experiences in diverse international environments,” he added. — John Victor D. Ordoñez

British Museum to fully digitize collection after ‘inside job’ thefts

October 20, 2023 | 12:03 am

LONDON — The British Museum said on Wednesday it planned to digitize its entire collection, citing the need to secure public access to its vast catalogue after it reported in August that 2,000 artefacts had been stolen or were missing.

The museum, one of the most visited in the world, has been dealing with the aftermath of the thefts, which highlighted internal failings and led to the exit of its director.

“Essentially we were the victims of an inside job by someone we believe, who over a long period of time was stealing from the museum and who the museum had put trust in,” its Chair George Osborne told parliament’s Culture, Media and Sport committee.

“There are lots of lessons to be learned,” he added.

Mr. Osborne estimated that about 350 artefacts were in the process of being returned.

The museum, which holds treasures such as the Rosetta Stone and the Parthenon marbles, sacked a member of staff over the thefts, which are also being investigated by London’s Metropolitan Police.

It has also said the stolen items included gold rings, earrings and other pieces of jewelry dating back to ancient Greek and Roman periods, as well as small objects such as gems that were often set in rings.

“We have taken steps to improve security and are now confident that a theft of this kind can never happen again,” the museum’s interim director, Mark Jones, said in a statement.

“But we cannot and must not assume that the security of the collection, in a wider sense, can be achieved simply by locking everything away. It is my belief that the single most important response to the thefts is to increase access.”

The proposed digitization project would take five years, with 2.4 million records to upload or upgrade. Its collection totals at least 8 million objects according to the museum’s website.

The museum, which has resisted calls from many countries, including Greece, to repatriate historical treasures over the years, launched a public hotline last month appealing for help in locating the stolen items. — Reuters

Cebu Pacific taps Neste for sustainable aviation fuel

October 20, 2023 | 12:02 am

BUDGET CARRIER Cebu Pacific has partnered with Neste to explore the availability of sustainability aviation (SAF) fuel supply in Asia Pacific.

In a statement, Cebu Pacific said it had signed a five-year memorandum of understanding with Neste, an international producer of SAF, to explore supply and purchase of green fuel.

“Carbon emissions are a pressing concern in the aviation industry. To this end, Cebu Pacific has laid out initiatives to address our emissions footprint, with a primary focus on integrating SAF in its operations. This will consequently minimize the environmental impact generated from our flights,” Alex B. Reyes, chief strategy officer of Cebu Pacific said in a media release on Thursday.

SAF can help reduce emissions from air transportation as it is made from non-petroleum feedstock like agricultural waste and used vegetable oil.

Cebu Pacific’s collaboration with Neste implies its commitment to minimize its environmental footprint, which is also aligned with the global aviation industry’s target of achieving net-zero carbon emissions by 2050.

“Sustainable aviation fuel is a readily available solution for reducing the greenhouse gas emissions from air travel. We are proud that we are going to support Cebu Pacific’s commitment to reduce their environmental impact by using our Neste MY Sustainable Aviation Fuel,” said Sami Jauhiainen, acting executive vice-president of the renewable aviation of the renewable aviation business unit at Neste.

The Neste official added that the group is looking forward to building the cooperation with Cebu Pacific in the future.

Earlier, Cebu Pacific said it was planning to use SAF across its commercial network by 2030 as part of its commitment to help the aviation sector achieve net-zero greenhouse gas emissions by 2050. — Ashley Erika O. Jose

Priceless values

October 20, 2023 | 12:02 am

An individual’s attitude and behavior under extreme pressure reveal his true worth. Grace under pressure. The recent crises have brought out the best and worst in people.

The character of an individual is like the immune system. It has a built-in warning device that emits signals. Mega vitamins and antioxidants protect the body and combat illness.

There has been a lingering affliction whose symptoms include instant ego inflation, the thickening of the epidermis, the swelling of the cranium, vision distortion, loss of balance, selective memory loss, and hallucinations.

The puzzling phenomenon is not caused by bacteria. Armchair psychologists trace the “fever” to a deficiency that is triggered by shock, trauma, good fortune, fame and power. It is also one of the aftereffects of prolonged hibernation.

Where there has been a solid foundation of a strong value system, the deforming effects of this affliction may be prevented or halted. The essential elements are discipline, courtesy, respect, and delicadeza. These are the timeless, priceless values that seem to be vanishing in this era.

Man has become obsessed with ego and material gain. Profits, the bottom line, power, and self-indulgence have overshadowed everything else. In the mad race to glory and grandness and being number one, he tends to overlook or dismiss the basic values that anchor him to reality.

In decades past, we were all taught to observe strict traditions and rites. From one generation to another, children were taught the code of proper behavior (at home and in school.) The old admirable custom of mano (hand blessing), a gesture of respect for one’s elders. As soon as a child could understand words, he learned how to take the hand of his grandparents and parents and touch it to his forehead. The formal and affectionate form of greeting is fading from the consciousness of the younger generation. Younger generations would call it obsolete, Jurassic. Unfortunately, they miss the whole point.

Discipline, as a character value, is a gem scarcely found in the current environment where self-interest has blurred the lines that define proper and ethical behavior.

In the past, stern parents insisted on following certain rules. Well-trained children obeyed without question. “Children are seen but not heard.” They deferred to elders, teachers, and all persons with authority. Respect for institutions and rules was a must. Otherwise, there were consequences for disobedience. The strict training reinforced the importance of being well-bred, well-behaved, and well-mannered.

Form was important in the context of decorum and etiquette. But substance mattered more. It still does.

One underlying motive for the exercise in discipline was to instill a sense of thoughtfulness and consideration for others. “NO” was an important concept. Self-denial and delayed gratification were steps to build character.

Many years later, we realize the rationale of our parents, grandparents, and teachers. The same principles apply. We need discipline in our personal and professional lives. As much as we need education, talent, hard work, and determination.

Multiple crises and disasters have erupted one after the other. The test of survival amidst the pandemic and its aftermath demanded grit, strength of character. The disciplined individual instinctively follows rules and consciously observes the law. He would consider what is appropriate.

As a leader of a company, an institution, a university, he/she would think of the general good above his self-interest and would act accordingly. The presence of this quality or virtue is critical for any career or profession. Especially in public service.

There are some situations, however, that may alter certain decisions and actions. Peer pressure, trauma, or an emergency may cause temporary deviation. Human nature has its limitations, after all. Observers note that an individual may possess a measure of control but when he is in a group, the equation alters. Discipline may diminish or disappear when a group of people are caught in extreme circumstances such as the pandemic, natural disasters, strikes, protest rallies, and blackouts. Everyone tends to go haywire.

Gentle people, when stressed, may become war-like, fierce, and go on a senseless rampage. This explains the mob mentality wherein emotions run wild.

There is road rage, anger, pent up resentment in the urban jungle. The individual’s delicate balance mechanism snaps. People turn into nasty bullies. Violence erupts.

One virtue more precious than gold is a sense of delicadeza. It is always knowing and doing the proper thing. Integrity of character.

To illustrate: it would be giving up a desired object or declining a favorite position if it means compromising one’s principles. It also signifies avoiding situations wherein there would be a conflict of interest. The greater good should prevail over personal gain.

What is vital, at this point, is to reflect, assess and move forward. What matters more, in the long term, are the nonquantifiable values and principles. What weighs more than wealth, power, fame, prestige, is being true to oneself.

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

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