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SEC willing to tweak fee hike plan

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE SECURITIES and Exchange Commission (SEC) is open to amending its proposal to increase its fees and charges, after a meeting with two business groups that have raised objections.

SEC officials, led by chairperson Emilio B. Aquino, on Thursday met with representatives of the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) to discuss the controversial plan to raise its fees and charges.

“Yes (we are open to changes)… That’s the reason why we are exposing these drafts because we’re open to suggestions. But of course, on our side, we’ll have to make a case on why we came up with the proposal,” he said during a media roundtable in Makati City.

Mr. Aquino said the SEC is not pushing the plan to increase its fees since the Commission is currently focused on its amnesty program for corporations which ends on Nov. 6. The SEC’s amnesty program offers a reprieve from the fines and penalties imposed on the late or nonfiling of companies’ general information sheet, annual financial statements, and noncompliance.

“This is just a proposal. That is why we are eliciting all sorts of comments from all sides. Part of our vision is to be customer-centric… We’re not doing this on our own. I think we have met all the requirements there are for these increases,” he said.

SEC Commissioner McJill Bryant T. Fernandez told reporters that another meeting with the leaders of the business groups will be scheduled in two weeks to further discuss their concerns.

“The proposal from their end was to convene another meeting with the principals of all these business groups and we welcome that. We are devoting time to sit down with them. The entire Commission is open to meet them and discuss point by point,” he said.

In a letter to the SEC dated Oct. 2, several business groups and associations criticized the regulator’s proposal to increase its fees and charges, calling it “anti-business” and “unnecessary.”

Mr. Fernandez said that during Thursday’s meeting, the representatives from PCCI and FFCCCII apologized for the language and contents of the letter.

“They have conveyed apologies in terms of the manner that the letter was constructed,” he added. 

Mr. Fernandez said the SEC and business groups are looking at issuing a joint statement once the matter is resolved.

At the same time, SEC Commissioner Kelvin Lester K. Lee said the commission could justify its proposal to hike its fees and charges, since it is backed by data from market studies.

The SEC earlier said the current rates have not been adjusted since 2017 and were based on a 2014 proposal.

“Bottom line, I think we can make a very good case for justifying the direction we’re going because it’s done very well. We have to laud our technical team who has worked on this for an excessively long time,” Mr. Lee said.

However, PCCI President George T. Barcelon said businesses should have been consulted on the proposed hike in SEC fees and charges.

“We can see the point of the SEC that they have not increased the charges ever since I believe it was 2014. But having said that, one of the concerns of the business sector is that the jump is quite high, the increase is quite high,” Mr. Barcelon said at a media briefing on Thursday.

He said that the SEC and the private sector are willing to discuss the matter and come up with a compromise.

“It is not yet a closed book, so this is something that we’d like to have a say on because we also compare the rates charged by other countries since we are trying to be competitive in foreign investments,” Mr. Barcelon said.

The business groups had objected to “unreasonable, if not ‘obscene’ fees and charges,” such as the proposal to charge corporate issuers one-fourth of 1% of total indebtedness when creating bonded indebtedness.

“Using 2022 numbers, SEC’s fees would amount to P1.27 billion on the total bond issuances of P508 billion for that year,” the groups said.

The business groups also opposed the proposed fee on the total transactions cleared and settled in the previous year by Securities Clearing Corp. of the Philippines and Philippine Depository Trust Corp. at 0.1 basis point (bp) and 0.05 bp, respectively.

Based on the transactions in 2022, the groups said this would mean P14.51 million and P7.25 million in additional friction cost for stock market investors.

According to the business groups, the current fee collections of the SEC far exceed the cost of its operations.

The business groups also noted the SEC’s proposal to impose “unconscionable” increases on fees may discourage new investments in the country.

“The increased cost of doing business will also hurt small and medium enterprises covered by SEC due to the ripple effects of the fee increases,” they added.

Aside from the PCCI and FFCCCII, the letter to the SEC was also signed by the Management Association of the Philippines, Philippine Retailers Association, Philippine Franchise Association, Chamber of Thrift Banks, Philippine Exporters Confederation, Inc., Employers Confederation of the Philippines, Philippine Association of Legitimate Service Contractors, Stratbase ADR Institute for Strategic and International Studies, and Philippine Food Processors and Exporters Organization, Inc. — Revin Mikhael D. Ochave and Justine Irish D. Tabile

Further rate hikes may have limited impact on inflation — analysts

Transport fare hikes may stoke inflation in the coming months. — PHILIPPINE STAR/WALTER BOLLOZOS

By Keisha B. Ta-asan, Reporter

FURTHER RATE HIKES by the Bangko Sentral ng Pilipinas (BSP) may have limited impact on inflation and would likely slow economic growth, analysts said.

Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said another rate hike at this point will not likely impact inflation in a “substantial” way.

“What rate hikes will be effective in carrying out would be a broad-based slowdown in growth momentum,” he said in a note.

BSP Governor Eli M. Remolona, Jr. on Wednesday said he is not ruling out a 25-basis-point (bp) increase at the Monetary Board’s next policy review on Nov. 16.

The BSP has kept the key interest rate at a near 16-year high of 6.25% at its last four meetings. Another 25-bp rate hike will bring the benchmark rate to 6.5%.

Last week, National Economic and Development Authority Secretary Arsenio M. Balisacan warned that further monetary tightening could hurt the economy and consumers who are already struggling from high inflation.

Mr. Mapa noted higher borrowing costs would affect bank lending, which is linked to capital formation and gross domestic product (GDP) expansion.

“We believe the net result of additional tightening would be much slower growth, with only a modest impact on inflation but only after growth slides to multi-year lows,” he said.

ING Bank lowered its Philippine growth forecast to 4.7% (from 4.8% previously) for this year and to 4.5% (from 4.7%) for 2024. Both estimates are below the government’s 6-7% and 6.5-8% target for 2023 and 2024, respectively.

In an e-mail, University of Asia and the Pacific Senior Economist Cid L. Terosa said rate hikes will be effective in quelling inflation only if inflation is demand-driven, noting that the current inflation is driven by supply constraints and geopolitical tensions.

“In the Philippines, businesses and investments are more sensitive to interest rate hikes than consumers. Hence, the net effect of rate hikes on economic growth in the Philippines tends to be negative. It appears that the negative impact of interest rate hikes and inflation rate on economic growth in the Philippines can extend over the long term,” Mr. Terosa said.

Headline inflation accelerated for a second straight month to 6.1% in September from 5.3% in August as food and transport costs surged. September marked the 18th straight month that inflation exceeded the central bank’s 2-4% target. Year to date, inflation averaged 6.6%.

FURTHER TIGHTENING
ING’s Mr. Mapa said the BSP will likely resume monetary tightening only to secure the inflation path in 2024, as market players are not pricing in a rate hike by the US Federal Reserve and the peso remains steady against the dollar.

“With 2023 winding down, any rate hike today would only have an impact on the 2024 inflation outlook.  We believe Mr. Remolona will pull the trigger on a rate hike in the near term, possibly after the October inflation report, a potential Fed rate hike or at the November BSP policy meeting,” he said.

Any rate hike would demonstrate the BSP’s commitment to fight inflation, anchor inflation expectations and tame second-round effects by “snuffing out” pressures from the demand side, Mr. Mapa said.

Mr. Terosa said the continued rise in prices may still prompt the Philippine central bank to hike rates, Mr. Terosa said.

“Aside from rate hikes, the government should explore solutions that will ensure stability in the production and supply of key commodities,” he added.

Meanwhile, DBS Bank Senior Economist Radhika Rao said rising prices of food and fuel can “unhinge” inflationary expectations.

“Our base case is for a pause till yearend but the odds of an inter-meeting hike or at the scheduled review has increased after the September inflation release as well as pipeline risks of further adverse weather pushing by food inflation,” she said.

“The FOMC (Federal Open Market Committee) review in early-November might also sway the timing and likelihood of further tightening by the BSP,” she added.

The US Federal Reserve opted to keep the target Fed funds rate unchanged at 5.25-5.5% at its meeting last month. The FOMC is scheduled to meet from Oct. 31 to Nov. 1 to discuss policy.

Diokno says Philippines to be ‘less affected’ by China’s economic slowdown

A person rides a scooter past a construction site of residential buildings by Chinese developer Country Garden, in Tianjin, China Aug. 18, 2023. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE ECONOMY is seen to be “less affected” by the economic slowdown in China, Finance Secretary Benjamin E. Diokno said.

“The Philippines is expected to be less affected by China’s slower economic growth given that the potential slowdown in exports could be partially mitigated by the demand from our large domestic market,” he said during the ASEAN Roundtable at the World Bank-International Monetary Fund (IMF) Annual Meetings in Marrakech, Morocco on Oct. 11.

However, Mr. Diokno noted that a slowing China economy could “dampen global trade and put downward pressure on the Philippines’ goods and service exports.”

In August, total exports jumped by 4.2% year on year to $6.7 billion. The United States was the main destination of Philippine exports during the month, with export value reaching $1.1 billion, followed by Japan with $918 million. Exports to Hong Kong and China stood at $871 million and $838 million, respectively.

“Sharp swings in market sentiment and risk premia could trigger a sudden tightening of financial conditions, capital outflows, and depreciation of the peso. Intensification of geopolitical tensions and fragmentation could disrupt supply chains and investment,” he added.

Mr. Diokno said the Association of Southeast Asian Nations (ASEAN)+3 region will face both indirect and direct risks from China’s property crisis.

“We note that financial systems in the ASEAN+3 region could be exposed to risks arising from China’s property sector through three main channels: directly, through any lending to the sector; indirectly, from their exposures to other financial systems that are involved with that sector; and indirectly, from lending to their own domestic economy that may be hard hit by developments in China,” he said.

The IMF projected China to grow 5% in 2023 but slow to 4.2% in 2024, slower than previously estimated due to the property crisis and weak external demand.

‘FASTEST-GROWING ECONOMY’
While the Philippines is projected to be the fastest-growing economy in the ASEAN region this year, the outlook is still clouded by external headwinds.

“Growth in the Philippines has proven remarkably resilient over the past couple of years. After a strong rebound in 2022, the economy continues to perform well, even if it is losing momentum,” Fred Neumann, HSBC chief Asia economist and co-head of Global Research Asia, said in an e-mail.

“At the same time, the relative outperformance of the Philippine economy needs to be kept in perspective: relative to its potential, growth is currently falling short. That’s because of cyclical headwinds like higher interest rates, both locally and globally,” he added.

Multilateral lenders and institutions like the International Monetary Fund, the World Bank, the Asian Development Bank, and AMRO have downgraded their 2023 growth forecasts for the Philippines. Their estimates are below the Philippine government’s 6-7% GDP growth target but are projected to outperform economies in Southeast Asia and the Asia-Pacific regions.

“One reason why the Philippines is outperforming many peers in the region is that it is less exposed to the global manufacturing cycle: unlike other economies, which are more dependent on manufacturing exports,” Mr. Neumann said.

The Philippine economy is driven mainly by consumption. Household spending accounts for three-fourths of the economic growth.

HSBC expects Philippine GDP to average 4.8% this year and 5.2% in 2024.

“There is considerable uncertainty around these forecasts, of course, as we have little visibility yet on what third-quarter performance was. We forecast growth of 4.7% year on year for the third quarter,” Mr. Neumann said.

Pantheon Chief Emerging Asia Economist Miguel Chanco said their outlook for Philippine growth is still on the “high side” but not among the strongest in the region.

“We expect 4.5% in 2023 and 4% in 2024, which puts the Philippines more in the middle of the pack, rather than one of ASEAN’s clear regional outperformers, which was the case pre-COVID-19, alongside the likes of Vietnam,” he said in an e-mail.

“Certainly, the economy’s structural growth prospects remain solid, but there’s no denying that it’s in the middle now of a cyclical growth slowdown, which will have a bearing on its regional position.”

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the Philippines is unlikely to post the fastest growth in the region.

“It would be good (if) the Philippines was the fastest-growing economy, however, given significant headwinds, both domestic and international will likely mean we see growth slipping to 4.8% for the year,” he said in an e-mail.

Pantheon’s Mr. Chanco also noted that the government’s 6-7% goal was “never in reach.”

“Our current forecast for third-quarter GDP growth is south of 2% year on year, which implies a technical recession in quarter-on-quarter terms. Private consumption, the economy’s main driver, is clearly wobbling, as it has fewer legs to stand on this year, versus last,” he said.

ING Bank’s Mr. Mapa said that growth may not even reach the lower end of the target for this year and 2024.

“The combination of moderating consumption due to fast-fading revenge spending and elevated borrowing costs will likely force growth to slow. We have yet to feel the brunt of Bangko Sentral ng Pilipinas (BSP) policy increases yet and we have already seen the negative impact on growth momentum,” he added.

The BSP has kept its benchmark interest rate at a near 16-year high of 6.25% since March to tame inflation.

HSBC’s Mr. Neumann noted that elevated inflation and high interest rates would weigh on household spending this year and in 2024, “though even then the Philippines will likely remain an outperformer in the region.”

To support growth, Mr. Neumann said that the country must focus on boosting foreign investments to “expand the manufacturing sector’s connectivity with regional supply chains.”

“If the Philippines can attract a greater share of regional supply chain manufacturing, boosting goods exports, growth would accelerate sustainably,” he added.

The Philippine Statistics Authority is scheduled to release third-quarter GDP data on Nov. 9.

Eras Tour concert film sees strong pre-sales in the Philippines

Taylor Swift in Taylor Swift: The Eras Tour (2023)

THE HIGHLY anticipated documentary film on pop superstar Taylor Swift’s latest concert tour is expected to do very well in the Philippine box office.

Taylor Swift: The Eras Tour, which opens in cinemas nationwide today, Oct. 13, has seen “strong pre-sales,” according to SM Cinemas, though they cannot release any specific numbers yet.

The pop culture icon with a reputation for shattering records announced Wednesday that the US and Canada will have one-day early-access showings in light of “unprecedented demand.”

“Look what you genuinely made me do,” Ms. Swift posted on the social media platform X.

“Due to unprecedented demand we’re opening up early access showings of The Eras Tour Concert Film on Thursday in America and Canada. We’re also adding additional showtimes Friday and throughout the weekend,” Ms. Swift said.

Originally, the film was only slated for release in North America, but it was later announced that it would be screened worldwide starting Oct. 13.

AMC Entertainment said last week that advance ticket sales for the concert film had topped $100 million globally.  — Brontë H. Lacsamana with a report from Reuters

Don’t Look Now: moving, tender, haunting and one of the best horror films of the last 50 years

DONALD SUTHERLAND and Sharon Williams in Don’t Look Now.

GRIEF-STRICKEN by the death of their daughter in a drowning accident, John Baxter (Donald Sutherland) and his wife Laura (Julie Christie) relocate temporarily to a wintry Venice, where he has been commissioned to restore the crumbling church of San Nicolò dei Mendicoli.

In a restaurant one day, melancholy Laura meets two sisters (Hilary Mason and Clelia Matania). One of them is a blind clairvoyant and claims to be able to see and communicate with her dead daughter, Christine. John is outwardly dismissive, even though he keeps catching sight of a child wearing a red coat similar to his daughter’s disappearing around corners and down alleyways across the misty, shadowy city.

At the same time, Venice has a killer on the loose. When their son has an accident at his English boarding school and Laura travels home to be with him, John is left behind to succumb to his delusions.

Adapted from Daphne du Marier’s supernatural short story and directed by Nicolas Roeg, Don’t Look Now is a moving and tender portrait of marriage and parental grief, as well as a haunting — and occasionally terrifying — horror film.

Fifty years on from its release in 1973, the film is a fixture in several “best of” lists: Best British film, best horror film, best film of the 1970s, even best film, period.

Even those who haven’t seen Don’t Look Now will likely be familiar with its most striking images. The drowned little girl in the red mackintosh hauled from the pond by her father at the film’s beginning, the intimate and tender sex scene between John and Laura inter-cut with scenes of them getting ready for dinner afterwards — and its truly shocking ending.

There is also the sophisticated manner in which the film’s visual language melds seamlessly with its overarching tone. Off-season Venice functions as a bleak, grey canvas on which splashes of vivid red recur throughout — washing on a line, a glass candle holder, a painted door — reminding us constantly of Christine’s tragic death.

Consistent with the style of some of Roeg’s other films, Graeme Clifford’s editing transports us back and forth in time, often within the same sequence. This lends the film a disorientating quality akin to John’s journey through the city in pursuit of the child in the red coat.

There are portents of doom throughout. John nearly falls from the scaffolding to his death while inspecting a church mosaic and the candle Laura lights for Christine in the church blows out. John watches as a murdered woman — who has more than a passing resemblance to his wife — is pulled from the canal. He then later sees Laura with the two strange sisters, dressed in black on a funeral barge, even when we know she is on her way back to England. The water all around Venice reminds us of the tragedy that hangs over proceedings.

Does all this account for Don’t Look Now’s continued resonance with audiences and critics 50 years on? Perhaps. But it is also worth considering the film’s relationship to the horror genre.

Don’t Look Now was released in the same year as The Exorcist. Though the two have similarities, notably in their preoccupation with religious themes and iconography, The Exorcist became a more popular cultural phenomenon.

It spawned two sequels, a prequel, a television series, and, with the recent release of The Exorcist: Believer (2023), a potential new trilogy of films that pick up from where the original left off. They can both reasonably claim to be (great) horror films, except The Exorcist was a blockbuster that spawned a franchise, and Don’t Look Now is an arthouse film that now stands on a pedestal of its own.

It’s helpful to consider Don’t Look Now’s enduring reputation in relation to a critical category that has become ubiquitous in recent years: “post-horror” films. Such films dispense with the jump scares and visceral gore generally associated with the genre to offer instead explorations of trauma and a creeping sense of dread that (supposedly) plays to more thoughtful and discerning viewers.

Post-horror films also don’t tend to spawn sequels or endless franchises, an aspect of the wider genre that has contributed to its status as one of the most commercially resilient but critically derided.

To describe a film as post-horror is to acknowledge the hierarchy that has long existed within the genre. This reveals the select few films deemed by critics to be worthy of their position alongside cinema’s other great works, and the apparent vast wasteland of repetitive, gory schlock traditionally associated with the genre.

Don’t Look Now is certainly worthy of its place in the pantheon of cinema’s great works. But it is always worth asking when it appears on a “best of” list, what broader factors are at stake in its largely unchallenged position as one of the great works in film history. While Roeg’s film enjoys an elevated critical reputation, it is safe to say that the genre with which it most often identified certainly does not.

However, it is possible to leave aside concerns about the art house treatment of the horror genre when appraising Don’t Look Now. From the tragic opening, to the unshowy, emotional (and explicit) sex scene, to the brutal ending, it is not surprising the film still holds a significant place in the critical imagination 50 years on. Beautiful, haunting and tragic, it stays with the viewer long after the credits roll.

Gregory Frame is a Teaching Associate in Film and Television Studies at the University of Nottingham.

Stuff To Do (10/13/23)

HABI market fair to highlight textile weavers

The Likhang HABI Market Fair, a three-day event slated from Oct. 13 to 15 at the Glorietta and Palm Drive Activity Center in the Ayala Center, Makati, will feature not only handwoven textiles, ready-to-wear clothing, and items for the home, but also several activities for the public, including a book launching, a textile/art exhibit by artist Paul Jatayna, and the announcement of winners of its nationwide piña– and abaca-weaving contests. For the 13th edition of the annual Likhang HABI Market Fair, members of HABI: The Philippine Textile Council pay homage to the growing interconnectedness of people, places and things, or “the way textiles tie and bind us to each other,” said Adelaida Lim, former president of HABI. This year, the number of vendors has grown from 60 to almost 100, representing various regional and ethnic groups from all over the country. For more information, visit the HABI: Philippine Textile Council website: www.habiphilippinetextilecouncil.com.

Trade fair, art, and parties at Shang

Shangri-La Plaza is going all out this October with a lineup of events that celebrate local businesses and artists, broaden knowledge and perspectives, and Halloween parties. National Bookstore will launch The Hurricane Wars, the first in an upcoming trilogy by speculative fiction writer Thea Guanzon, on Oct. 14 at Level 1, Main Wing. Enjoy a cozy weekend date at The Marketplace’s Wine Fair until Oct. 15 at the Grand Atrium and indulge in some of the finest wines from countries like France and Chile. Or have some family fun at the Alter Ego: Big Board Game Day from Oct. 13 to 15 at the East Atrium and enjoy popular board games. Gain new perspectives as Shang hosts the 22nd edition of the Película/Pelikula Spanish Film Festival at the Red Carpet Cinemas until Oct. 15, which include cinematic masterpieces by acclaimed auteur Carlos Saura. The DTI Ok! Bikol Fair showcases Bicolano fare like authentic Bicol Express, pinangat, pili nut confectionaries, and lemongrass brew from Oct. 19 to 22 also at the Grand Atrium. Marking World Mental Health Month, MindNation and Belle de Jour Power Planner present “You Got This! Creating Safe Spaces, Crafting Tomorrows,” featuring well-being workshops, plenary sessions, and one-on-one consultations with psychologists, on Oct. 19 to 22 at the East Atrium. “Peering Through the Keyhole” exhibit by Buensalido Public Relations and Communications will run from Oct. 24 to 26 at the East Atrium to celebrate its 40th anniversary featuring works by its own artists. The month ends with a video game-inspired Halloween party, “HallowQuest Shang Spookfest 2023,” on Oct. 28 and 29 at the Grand and East Atriums. The two-day celebration promises frightful fun, thrilling costumes, and eerie entertainment for all ages. For updates and inquiries, follow Shangri-La Plaza on Facebook at www.facebook.com/shangrilaplazaofficial and on Instagram @shangrilaplazaofficial.

PPO features soloist Wen-Sinn Yang for Italian Night

CELLIST Wen-Sinn Yang will be the featured soloist for the 2nd concert of the season of the Philippine Philharmonic Orchestra (PPO), under the baton of Grzegorz Nowak. The concert will be on Oct. 13 at the Samsung Performing Arts Theater in Circuit, Makati. For the concert, dubbed Italian Night, the Swiss-born cellist will perform Antonin Dvořák’s Cello Concerto, op.104, B minor. The concert’s program also includes Sarung Banggi: A Symphonic Serenade by Potenciano Gregorio, Sr. (arr. Angel Peña), and Felix Mendelssohn’s Symphony No. 4, op.90, A major (“Italian”). Enthusiasm for the unknown and constant research distinguishes Wen-Sinn Yang as one of the most versatile cellists today. His performances not only revive the music of 19th-century cello virtuosos such as Adrien François Servais and Karl Yulievich Davydov, but also introduce his audiences to such modern composers as Aribert Reimann and Isang Yun. Concert tickets range from P800 to P3,000. For more information, visit the CCP website at www.culturalcenter.gov.ph.

Ayala Museum hosts Ambeth Ocampo lectures

TO encourage people to learn more about Philippine arts, culture, and history, the Ayala Museum is presenting the “History Comes Alive: Eras” lecture series by Dr. Ambeth Ocampo. On Oct. 14, the first lecture will be about the stories behind various artifacts in Philippine history, based on Dr. Ocampo’s latest work Cabinet of Curiosities: Eras in Philippine History. The second lecture, on Oct. 21, Saturday, focuses on Juan Luna’s long-lost painting, Hymen, oh Hyménée and how it affects people’s perception of Juan Luna, his art, and his time. The painting was first unveiled to the public at the Ayala Museum last June in time for the 125th anniversary of Philippine Independence. It is the centerpiece of the museum’s “Splendor” exhibit, which runs until the end of the year. To learn more about Ayala Museum Memberships and the museum’s latest activities, visit ayalamuseum.org.

Big Bad Wolf goes to Iloilo for the first time

THE Big Bad Wolf book sale is going to Iloilo from Oct. 13 to 22, bringing over two million books to residents of Iloilo and nearby cities, who can expect exclusive deals, promos, giveaways, and discounts of up to 95% off on selected books. Big Bad Wolf’s roster will include bestsellers, classics, contemporary fiction, non-fiction, science fiction, cookbooks, design books, architecture books, thrillers, young adult titles, and children’s books. The sale will be at the Lower Ground Floor of SM Iloilo. For more information regarding Big Bad Wolf’s current and upcoming Book Sales, visit their website or check out their social media accounts on Facebook or Instagram.

Meralco renewables unit invests nearly P16B for SPNEC control

SPNEC’s Leandro L. Leviste (left) shakes hands with Meralco’s Manuel V. Pangilinan during the signing of the investment agreement on Oct. 12, 2023.

MERALCO POWERGEN Corp.’s renewable energy unit is investing P15.9 billion in listed solar energy developer SP New Energy Corp. (SPNEC) to develop solar and battery energy storage systems projects.

In a media release on Thursday, MGen Renewable Energy, Inc. (MGreen) said it had signed an investment agreement with SPNEC and its parent firm Solar Philippines Power Project Holdings, Inc. 

“This will be one of the largest solar projects not just in Asia, but in the world,” said Manuel V. Pangilinan, chairman and chief executive officer of Manila Electric Co. (Meralco), the parent firm of the energy developer.

“The Department of Energy’s vision is to have about 35% of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal,” he added.

Under the agreement, SPNEC will serve as the primary vehicle to develop 3,500 megawatts (MW) of solar panels and 4,000 MW of battery energy storage systems in Luzon.

“We are humbled and grateful for this opportunity to build this renewable energy platform with Meralco. We look forward to bring together Meralco’s capabilities and our solar developments for the benefit of all stakeholders,” SPNEC Chief Executive Leandro L. Leviste said.

To enable investment, MGreen will subscribe to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.

SPNEC will apply to increase its authorized capital stock to allow the investment. The fresh injection of capital by MGreen will fund the construction and expansion of its solar projects.

Upon closing, MGreen’s common and preferred voting shares will make the company the controlling shareholder of SPNEC with a total voting interest of 50.5%.

Transaction completion is subject to the satisfaction of certain conditions precedent, including relevant regulatory approvals, Meralco said.

Separately, SPNEC told the local bourse on Thursday that its board of directors had approved the increase in its authorized capital stock to 75 billion common shares and 25 billion preferred shares.

Switzerland-based investment bank UBS acted as financial advisor in the transaction while SyCip Salazar Hernandez & Gaitmaitan and Gulapa Law acted as legal advisors to both Meralco and MGreen. King & Spalding and Picazo Law acted as legal advisors to Solar Philippines and SPNEC.

On the stock exchange on Thursday, Meralco’s shares went down by P1 or 0.27% to close at P374 apiece.

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

A minute with: Director Tim Burton showcases drawings, calls movies his ‘troubled children’

TIMBURTON.COM

OSCAR-NOMINATED director Tim Burton says he has no favorites when it comes to his movies, describing them all as “troubled children.”

Known for films including Edward Scissorhands, Frankenweenie, and Corpse Bride, Mr. Burton has also been showcasing his drawings and models in exhibitions.

In an interview, Mr. Burton reflected on the show’s latest incarnation, “The World of Tim Burton,” which opened on Wednesday at the Mole Antonelliana in Turin, Italy.

Below are excerpts edited for length and clarity.

Q: How involved have you been with the exhibition?

Burton: It started with the MoMA (Museum of Modern Art) show (in 2009) which took a couple of years to curate. This (show in Italy) is sort of an offshoot of that.

Q: What is it like seeing your work?

Burton: When I first saw it (the show in New York), it did feel like laundry hanging on the wall. I felt quite exposed. I feel that way with films, I like making them but then I get sort of terrified of showing them.

Q: How important are your drawings to your movie making process?

Burton: When I first started out, I didn’t really communicate very well, some people say it remains to this day, but I always felt drawings were a way for me to get ideas out. (For example) I’d just draw like a Jack Skellington character (from 1993 film The Nightmare Before Christmas) and I didn’t even know what it was for. Drawing brought out my subconscious.

Q: How did the strikes in Hollywood affect production on Beetlejuice 2?

Burton: I’ve got two days of shooting left. I know exactly what we need to do, as soon as the strikes are over, take off the pause button and go do it.

Q: Do you have a favorite of your own films?

Burton: I have no favorites. They’re all your troubled children. — Reuters

Strong office demand seen as IT-BPM hiring rises

KATE SADE-UNSPLASH

By Revin Mikhael D. Ochave, Reporter

DEMAND for office spaces could hit 1 million square meters (sq.m.) this year on the back of growth from the information technology and business process management (IT-BPM) sector, real estate brokerage services firm Leechiu Property Consultants (LPC) said.

“From experience, we see a lot of the leasing activity taking place in the last three months of the year. There is some confidence and optimism from our side to say that we should be able to surpass 2022 numbers. There is the chance that we should hit a 1 million sq.m. within the end of the year,” LPC Director for Commercial Leasing Mikko Barranda said during a media briefing in Makati City on Thursday.

“To refresh everyone’s mind, last year’s full-year number was at 989,000 sq.m.,” he added.

He placed the end-September figure at 809,000 sq.m., up 17% from the same period last year.

This year’s projection brings the office market closer to what Mr. Barranda described as the “landmark demand years” of 2018 and 2019 when the number hit 1.3 million sq.m. and 1.7 million sq.m., respectively.

He said the growth driver for the yearend projection is the IT-BPM sector, which is projected to hire 135,000 workers.    

“The drivers aren’t any different. The IT-BPM sector [is] very consistent,” Mr. Barranda said, citing a projection from the IT and Business Process Association of the Philippines that hiring this year will be one of the highest.

“We thought that last year at 120,000 was already quite a lot and to be able to surpass that just shows that there’s so much growth in that sector,” he said.

“Of course, there’s hybrid and remote work. But quite a lot of them still take space in the market,” he added.          

According to LPC, the IT-BPM sector accounts for 45% of the total office space demand.

“Notably, bulk of the lease contracts are for multiple sites, unlike the previous trend where mega sites were leased for IT-BPM operations in a single location,” LPC said in a report.   

“Thirty-seven percent of the IT-BPM transactions count, at 124,000 sq.m. of space, was mainly leased in Metro Cebu, Quezon City, and Clark, Pampanga. IT-BPM firms are likely opening microsites or applying the hub-and-spoke strategy to allow their employees to work near home to maximize employee retention,” it added. 

LPC added that the current office space supply is at 18.1 million sq.m., of which 82% are in Metro Manila, while nationwide office vacancy is at 19%.

“Bonifacio Global City and Makati City are still the preferred locations for office operations, as they exhibit the lowest vacancy rates at 9% and 13%, respectively,” it said.

“By the last quarter of 2023, another 432,000 sq.m. of office stock is projected for completion. Projected completions start declining by 2024 onwards, which will bring down vacancy rates while demand is expected to improve,” it added.

Meanwhile, Mr. Barranda said that the proposed ban on Philippine offshore gaming operators (POGO) would not hurt the local property demand as much since the market is no longer reliant on the sector.

He said the POGO sector has always been volatile, adding that it is “hard to bank on demand” coming from it.

“Of course, it would hurt the property sector, not so much on demand that we won’t get, but the existing footprint that they have left in the country. What ends up happening is if they will need to leave entirely, then that would leave a bit of a hole again in the supply, especially in areas where they are highly concentrated,” Mr. Barranda said.

“The good thing about the market today is that we are not heavily reliant on it. We’re somehow able to recover without the POGO. But of course, any demand coming from that sector will help the vacancy levels to come down much faster than later on as we have seen how the supply pipeline looks in the next five years,” he added. 

Last month, the Senate Committee on Ways and Means recommended the gradual phaseout and the eventual termination of POGOs from the country due to the negative social impact in communities where the operations are located.

Entertainment News (10/13/23)

German Film Fest at Gateway

The Goethe Institut presents KinoFest, a showcase of some of the hottest films to come out of Germany in the past two years. Returning fully offline for the first time after the pandemic, the festival features seven films that offer movie buffs a chance to delve into the rich variety of German cinema and four experimental films from Germany and the Philippines. The KinoFest will run from Oct. 19 to 22 at Gateway Cineplex 10, Cinemas 6 and 7, Gateway Mall, Araneta City, Cubao, Quezon City. To be shown are Sun and Concrete, Ehala, The Ordinaries, Happy Lamento, Orphea, Toubab, Republic of Silence, Sisi and I, Hao are You, Aligato: The Brief Life of an Ember, and Love is a Dog from Hell.

NeoFilipino features works with distinct choreography

THE return of CCP Choreographers Series’ “NeoFilipino,” on Oct. 20, 21 and 22 at the Tanghalang Ignacio B. Gimenez (CCP Blackbox Theater) in Pasay City, marks the third and final tier of the CCP Choreographers’ Series. It is a platform for established artists to collaborate with other art forms in creating new works with distinct choreographic styles, following WifiBody.ph and Koryolab. NeoFilipino 2023: In Transit will feature choreographers Christine Crame, Jose Jay Cruz, and Al Garcia, who have each built a distinct choreographic voice and style of dance. It is directed by dancer and choreographer Ms. Crame, with set design by Tuxqs Rutaquio, and projection mapping by Ces Valera. Its institutional supporters are De La Salle-College of Saint Benilde, Guang Ming College and Myra Beltran’s DanceForum. The P500 tickets are available at the CCP Box Office and at TicketWorld (https://premier.ticketworld.com.ph/shows/show.aspx?sh=NEOFILI23).

APO Hiking Society celebrates golden anniversary

THE chart-topping melodies of APO Hiking Society continue to inspire Filipinos, and with the legendary Filipino band’s remaining members Jim Paredes and Boboy Garovillo celebrating 50 years of friendship and music, the APO Hiking Society 50th Anniversary Concert will take place at the Newport Performing Arts Theater on Nov. 17. The anniversary show is a sentimental trip down memory lane that spans five decades. Tickets are now available at all TicketWorld and SM Tickets outlets, with prices ranging from P1,200 to P7,800.

QCinema announces QCSEA Competition Lineup

QCINEMA International Film Festival has unveiled the official selection of the inaugural edition of its QCSEA Shorts Competition. Ten short films were selected out of 380 entries received from all over Southeast Asia to compete. The lineup includes entries from Myanmar, Indonesia, Vietnam, Singapore, Malaysia, and the Philippines. From Indonesia comes Basri And Salma In A Never-Ending Comedy by Khozy Rizal, about a childless couple that owns a carnival ride for children. Vietnam’s Buoyant by Toan Thanh Doan and Hoang-Phuc Nguyen-Le follows a fisherman who rescues a mermaid from the fish market. I Look Into The Mirror And Repeat Myself, from Singapore, directed by Giselle Lin, is about a filmmaker who questions the meaning of her given name, her place among her four sisters, and their stories, while her family is on the cusp of change and dissolution. From Malaysia, MOP by Joon Goh is about a boss and her employee who, over a lunch break, play a dangerous sexual game. Myanmar’s entry is an experimental short film by Moe Myat May Zarchi, The Altar, about the guilt of a childhood incident of killing an ant while their washing hands in the sink. Five entries were selected from the Philippines — Cross My Heart And Hope To Die by Sam Manacsa; Dominion by Bea Mariano; Hito by Stephen Lopez; Kung nga-a Conscious ang mga Alien sang ila Skincare (The Thing About Aliens And Their Skin Care) by Seth Andrew Blanca and Niño Maldecir; and When You Left Me On That Boulevard by Kayla Abuda Galang. The short films’ Philippine premieres are slated from Nov. 17 to 26.

Benj Pangilinan releases new single

FILIPINO singer-songwriter Benj Pangilinan drops an upbeat song, “Dance Like You,” that captures the feeling of youthful excitement. “I wrote this song a couple of years ago, during the pandemic. I remember just playing the guitar when I suddenly came up with an interesting chord progression. Instantly, I picked up my phone and opened the Voice Memos app,” Mr. Pangilinan said in a statement. The euphoric, four-minute pop song was produced by his frequent collaborator, the Grammy-nominated Xerxes Bakker. It serves as a follow-up to his first single “Love, That’s Rare,” and both will be part of an EP to be released soon. “Dance Like You” is out now on all digital music platforms worldwide via Sony Music Entertainment.

Super Radyo, Barangay LS top audience share

SUPER Radyo DZBB and Barangay LS 97.1 remain the number one AM and FM radio stations in Metro Manila according to Nielsen’s Radio Audience Measurement data for January to September. The GMA Network’s flagship AM station Super Radyo DZBB 594 recorded an average total day audience share of 31.66%. Mornings remained to be the station’s highest rating block. Meanwhile, Barangay LS 97.1 averaged a total audience share of 41.37% during the same period, maintaining the top spot among FM stations. These programs are simulcast daily on GTV via Dobol B TV. Online, listeners can also catch these stations via live audio stream on www.gmanetwork.com/radio.

K-Pop group (G)I-DLE drops first English EP

FIVE-member Korean pop girl group (G)I-DLE releases its new EP HEAT, which is also their highly anticipated, first English EP, I Want That. The lead single’s music video has also been released. HEAT features the previously released track “I DO,” which made its debut on the Billboard Pop Airplay Chart after its release in July. It will also have songs with known musician collaborators such as Ryan Tedder, Meghan Trainor, and Jon Bellion. HEAT is available on all digital music platforms worldwide.

Pinay sweeps World Championships of Performing Arts

FILIPINA singer Ronica Mae Mangahas dominated the recently concluded 2023 World Championships of Performing Arts in Anaheim, California. The international competition, cited as the “Talent Olympics,” is held annually for performers and entertainers. Contenders from countries across America, Europe, South Africa, and Asia participated in the contest. Ms. Mangahas competed in eight out of 14 genres in the Vocal Solo Category. Of these, she won gold medals in the Opera, Open, and Rhythm and Blues (R&B) tilts. The 30-year-old vocalist likewise finished silver in Gospel, Original Works, Rock, and World divisions. “Competing on the world stage is a dream come true,” she said in a statement. “I never thought that my passion would get me to represent the country.”

Ica Frias releases new single

FILIPINO singer-songwriter Ica Frias expresses her wariness of romantic commitment in the new song “Oh Honey.” Released under Off The Record, the song is her reflection on fears of being vulnerable and intimate with someone, delivered with soulful vocals and jazzy instrumentation. “The song is about the fear of falling in love with the person you’re quite unsure of. Regardless of what you feel for him or her, it’s normal to be cautious about being romantically committed to someone,” Ms. Frias said in a statement. “The whole vibe is countered by the upbeat treatment of the song, almost as if you’re making fun of yourself for seeing that person with rose-colored glasses.” The track was written by her with the help of her friend Daniel Paringit, who also co-produced “Oh Honey” with Cluster Ng and Ricky Ilacad of OTR. “Oh Honey” is out now on all digital music platforms worldwide.

English singer James Arthur releases new single

FOLLOWING the success of his songs “Blindside” and “A Year Ago,” and the announcement of his 5th studio album Bitter Sweet Love — out Jan. 26th — English singer-songwriter James Arthur returns with a new single, “Just Us,” a powerful ballad about realizing that love is the true meaning of life. “It is a song in which I confess to running away from what really matters and getting lost in the pursuit of validation from external things,” Mr. Arthur said in a statement. Bitter Sweet Love will contain 13 songs. “Just Us” is out now on all digital music platforms worldwide.

Ben&Ben releases acoustic version of ‘Courage’

FILIPINO folk-pop band Ben&Ben has dropped a stripped-down version of their new song, “Courage (acoustic version),” which encourages listeners to reach for their dreams and goals in life despite dealing with personal tribulations. “The past few months have been mentally tough for the band, with challenges surrounding us and driving us to low points and times of discouragement,” the chart-topping band said in a press statement. “We realized that, as visceral as the feeling of being hopeless may be for us, we wanted to channel it into an uplifting piece of music because it is something a lot of people are going through now but have a hard time verbalizing.” The stripped-down number is penned by Miguel and Paolo Benjamin and produced by frequent collaborator Jean Paul Verona. Ben&Ben’s “Courage (acoustic version)” is out now on all digital music platforms worldwide via Sony Music Entertainment.

Tom and Jerry get localized Singapore version

THE first-ever localized Tom and Jerry series, featuring the beloved cartoon cat and mouse in Singapore, will premiere on Cartoon Network, the Cartoon Network Asia YouTube channel, and HBO GO on Oct. 21. In the seven-part series, the legendary cartoon frenemies take their adventures to the Lion City as they weave through the labyrinth of colorful neighborhoods, modern skyscrapers and city-in-nature experiences. New episodes air every Saturday on Cartoon Network and YouTube, with four episodes immediately available on HBO GO followed by a second episode drop in November. The new series is part of a wider partnership between Warner Bros. Discovery and the Singapore Tourism Board to collaborate on content that will spotlight and inspire travel to destination Singapore.

Disneyland lifts prices up to 9%; Florida annual passes rise too

WALT DISNEY CO. is raising ticket prices at its Disneyland resort by up to 9% and lifting annual pass prices at Walt Disney World by as much as 10%.

The new prices take effect immediately, the company said Wednesday.

Rising prices are a touchy issue at Disney, which goes out of its way to promote travel packages that make stays at its resorts affordable for families. The company isn’t raising daily admission prices in Florida, where attendance was weaker last quarter, and its least expensive Disneyland ticket — at $104 — hasn’t budged since 2019.

The park also has promotions, such as a $50 ticket for children nine or younger.

At Disneyland in Anaheim, California, a single ticket on the most popular days, such as holidays, is increasing by 8.4% to $194, while other prices are going up even more in percentage terms. The Enchant annual pass, which bars access on certain weekends and holidays, is rising 21% to $849, while the Genie+ service, which lets guests access shorter lines, rises by $5 to $30. Parking is also going up.

At Walt Disney World in Orlando, Florida, annual pass prices are increasing by up to 10%, with the most expensive Incredi-Pass now retailing for $1,449. Parking will rise $5 to $30, but is free for hotel guests. Starting on Jan. 9, guests will be able to use “Park Hopper” tickets to go from one park to another any time during the day.

Disney said last month that it plans to double investment in the parks division to $60 billion over the next 10 years, including new attractions and cruise ships

“We are constantly adding new, innovative attractions and entertainment to our parks and, with our broad array of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer,” the company said Wednesday.

Earnings at Disney’s domestic parks fell in the third quarter ended July 1, the result of weakness at Disney World. The company cited fewer guests in Florida after a post-pandemic boom and tough comparisons with the prior year’s 50th anniversary celebrations.

Read more: Bob Iger’s Billion-Dollar Crisis Puts His Legacy on the Line

Chief Executive Officer Bob Iger, who returned to lead Disney last November, said earlier this year that the company had been “too aggressive” in raising park prices under his predecessor Bob Chapek, sparking a backlash from visitors. — Bloomberg

PCCI warns businesses: Brace for high oil prices

By Justine Irish D. Tabile, Reporter

THE PHILIPPINE CHAMBER of Commerce and Industry (PCCI) warned businesses of a possible increase in fuel prices due to geopolitical tensions in the Middle East.

“There are headwinds we are facing, recently, the Middle East conflict again brings about this uncertainty,” said PCCI President George T. Barcelon in a media briefing on Thursday.

“We hope that this will not flare up to the point wherein the big Middle [Eastern] countries would be involved,” he said, adding these are oil producers.

Mr. Barcelon said the conflict could add to the volatility of oil prices, which were recently affected by the cutback in oil production by Saudi Arabia due to softer demand.

Data from the Department of Energy showed that local oil companies implemented a decrease of P3.05 per liter for gasoline, P2.45 per liter for diesel, and P3 per liter for kerosene, effective on Tuesday.

These price adjustments resulted in a year-to-date net increase of P12.25 per liter for gasoline, P11.35 per liter for diesel, and P5.94 per liter for kerosene.

Mr. Barcelon said that despite the recent price adjustments, the conflict in the Middle East might trigger an increase in oil prices.

“And this, of course, is a concern because the government priority is to mitigate inflation,” he said.

UNCERTAIN OUTLOOK FOR 2023
He said that the conflict in the Middle East is also one of the reasons why the outlook for the economy remains uncertain for the last two months of the year, adding to previous concerns such as the lower-than-expected gross domestic product (GDP) growth and hints of another rate hike by the US Federal Reserve.

“The last report on GDP is not as what we expected. The projections are higher than the GDP figures that were presented,” Mr. Barcelon said.

In the second quarter, the Philippine economy expanded by an annual 4.3%, weaker than the 6.4% growth in the previous quarter and 7.5% a year ago.

“There’s also the concern that the US Federal Reserve has in mind to possibly adjust interest rates,” Mr. Barcelon said.

“I have read in the paper that Bangko Sentral ng Pilipinas is contemplating because our peso has devaluated somewhat and if we don’t mirror the increase of interest rates abroad, the peso might devaluate further,” he added.

He said that this will affect the economy as consumers will be able to buy less than what they used to before.

Mr. Barcelon said he wants to remain positive that the sluggish economic growth would be negated by the seasonal rising demand in the last quarter.

“Coming towards the ‘Ber’ months, definitely, the Christmas spirit will be there, and the economy definitely will go along and pick up maybe 1% or 2%,” he added.

Meanwhile, PCCI Vice-President for Industry Perry A. Ferrer said that economic activity in the last quarter will be based on remittances from overseas Filipino workers (OFWs).

“We will see probably $13 [billion] to $14 billion [in remittances] in the last quarter of this year, which will stir the economic activity,” Mr. Ferrer said.

“We probably won’t meet the target of 6% but with the $14-billion OFW remittances we will see a nationwide activity which is always in time for our Christmas season,” he added.

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