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Easing prices a reason to pause — BSP

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Keisha B. Ta-asan, Reporter

THE CONTINUED downward trend of consumer prices is a “good reason” to keep rates unchanged, the Bangko Sentral ng Pilipinas (BSP) chief told reporters on Monday.

BSP Governor Felipe M. Medalla said the Philippine central bank’s policy actions will be largely driven by its inflation target and not by the moves of the US Federal Reserve.

“[With] the most recent numbers, it’s very clear that the inflation rate is declining. Our expectation is, by September or October, inflation is below 4%… It’s a good reason to pause,” he said in mixed English and Filipino.

Headline inflation eased to 6.1% in May from 6.6% in April, data from the local statistics agency showed. However, this marked the 14th straight month that inflation breached the BSP’s 2-4% target range.

Year to date, inflation averaged 7.5%, well above the central bank’s 5.5% forecast for the year.

“On the other hand, the markets may see a further reduction in the difference between the BSP and Fed policy rate as a signal for a weaker peso, which may not be a good thing because inflation is still a problem,” Mr. Medalla said.

“Therefore, we have to be conscious about the interest rate differential but that is not the main driver. The main driver is the domestic inflation picture,” he added.

The US Federal Reserve decided to keep its target interest rate unchanged at 5-5.25% during its June 13-14 meeting, the first pause after it raised borrowing costs by 500 basis points (bps) since March last year.

Meanwhile, the Philippine central bank is widely expected to keep benchmark interest rates steady at 6.25% on Thursday, based on a  BusinessWorld poll of 15 economists conducted last week.  

If realized, this would be the second straight meeting the BSP will leave interest rates untouched. The BSP hiked policy rates by 425 bps from May 2022 to March 2023 to tame inflation.

Mr. Medalla also said the markets are “too optimistic” about when the US central bank will cut policy rates.

“If you listen to the Fed officials, that’s not the case,” he said. “The fact that they have maintained rates and sent a signal that they’re still quite concerned, means we cannot roll out future increases.”

The BSP chief also hopes market players may see that a narrower interest rate differential with the US Federal Reserve does not mean a weaker peso, as this could become self-fulfilling prophecies.

“If the rate differential gets a little bit narrower, it doesn’t necessarily mean a reason for the peso depreciation.

The peso reached a record low of P59 against the dollar in October last year as the greenback surged amid hawkish signals from the Fed.

On Monday, the peso closed at P55.74 versus the dollar, up by 12 centavos from its previous finish, data from the Bankers Association of the Philippines’ website showed.

This is the peso’s strongest close since its P55.725-a-dollar finish on May 23.

In an e-mail interview, ANZ Research economist Debalika Sarkar said the BSP will have to monitor external developments and assess the impact of its previous rate hikes on the economy.

“The ‘hawkish pause’ by the US Fed last week and a still elevated trade deficit in April do not offer much policy flexibility at this stage. We thus do not see a policy pivot by the BSP until the first quarter next year,” she said.

The country’s trade-in-goods balance, or the difference between exports and imports, reached a deficit of $4.53 billion in April. The gap is lower than the revised deficit of $5.1 billion in the previous month and $5.32 billion in the same period last year. It was the slimmest trade gap in two months. The country’s trade balance has been in deficit for almost eight years.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the BSP is expected to keep policy rates steady at 6.25%, but there are still risks to the outlook.

“We estimate inflation to fall within the 2-4% target around September or October of this year, but inflation, peso depreciation, and Fed policy action risks remain tilted to the upside,” he said.

“Thus, the BSP may want to keep interest rates ahead of the curve at some point after this month to keep these risks in check, and continue to signal a ‘hawkish hold’ itself in the meantime,” he added.  

After June 22, the BSP’s next policy meeting is scheduled on Aug. 17.

Farm output subsidies in PHL regressive, says WB

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES has one of the most regressive agricultural output subsidies, the World Bank (WB) said.

In a report, the Philippines ranked first among 16 countries in terms of regressive output subsidies, followed by Mexico, Canada, Japan, and Vietnam.

Meanwhile, Brazil, Kazakhstan, and Indonesia had the most progressive subsidies.

The World Bank conducted an analysis to examine the distributional impact of agricultural subsidies in multiple countries, which then indicates the scheme’s progressiveness or regressiveness.

“As with any subsidy linked to production amounts, output subsidies will naturally be regressive, since richer farmers will always produce more output and therefore receive a larger share of the subsidy than poorer farmers,” it said.

“Nevertheless, this analysis uses a lower threshold for what is considered progressive. It examines whether poorer regions in each country receive a relatively larger share of output subsidies than their share of agricultural production value,” it added.

For example, a subsidy is considered “progressive” if the country’s poorer regions receive a larger share of producer single commodity transfer (PSCT) than their share of agricultural production. On the other hand, if poorer regions receive a smaller share, then the subsidy is regressive and acts “more like a tax than a subsidy.” 

A PSCT indicator measures the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, including its market price support and output subsidies.

According to the World Bank, 80% of the world’s extremely poor and 75% of the moderately poor live in rural areas and engage in agriculture.

“In many cases, agricultural subsidy programs double as rural development, livelihood, and safety net programs. Therefore, another important indicator of the usefulness of agricultural subsidies is how progressive they are — that is, what share of the subsidy is captured by the lowest income quantiles,” it added.

The World Bank said the Philippines would benefit from shifting its output subsidies from rice to maize.

Data from the report show that rice receives the most subsidies among all commodities across countries, followed by maize, wheat, sugar, and soybeans.

“The analysis also finds that if countries were to shift their output subsidies on rice, a very water-intensive crop responsible for exacerbating harmful externalities like water scarcity, salinization, and carbon dioxide emissions, to maize, then their subsidies would become significantly more spatially progressive,” it added.

The World Bank said that output subsidies should re-evaluate what crops receive which subsidies and prioritize those that poorer households produce, such as maize.

“In many countries, this approach implies a shift away from subsidizing rice, which would entail other environmental co-benefits like reducing agriculture’s water and carbon footprints,” it said.

“Although the distributions of PSCT transfers on crops across countries vary considerably, the distribution of production tends to be more progressive for maize than for other crops — that is, maize tends to be produced in poorer areas of the country,” it added. — Luisa Maria Jacinta C. Jocson

USDA expects country’s pork output to drop 5%

PHILIPPINE STAR/WALTER BOLLOZOS

THE PHILIPPINES is expected to produce a lower volume of pork due to the continuous spread of African swine fever (ASF) in top-producing regions, the United States Department of Agriculture (USDA) said.

The USDA estimated the country’s pork production to reach 925,000 metric tons (MT), down by 5.13% from its previous forecast of 975,000 MT.

The agency lowered its projection in response to ASF’s continuous spread into other provinces within the Central and Western Visayas regions, including Negros Occidental, Negros Oriental, and Aklan.

“In 2022, the Central and Western Visayas regions had become the first and third-largest producers following the decimation of swine inventories elsewhere in the country,” the USDA said.

The production from Central Visayas, which accounted for 13.2% of the overall pork output, rose by 7% to 2.78 million MT last year. Pork output from Western Visayas increased by 12.4% to 2.61 million MT or 12.4% of the total production.

The agency noted, however, that the projection has not covered the impact on output brought by earlier outbreaks in the provinces of Iloilo and Cebu within the said regions.

The USDA said that despite prospects of an ASF vaccine following successful local trials, “such a vaccine would be unlikely to materially impact 2023 production.”

Earlier this month, the Bureau of Animal Industry (BAI) said that it had completed clinical trials. The agency has sent a letter of endorsement to the Food and Drug Administration for the issuance of a certificate of product registration.

As of June 1, up to 15 provinces have active ASF cases, according to the BAI. It said the cases had been confined to the Visayas region while few detections had been reported in Luzon and Mindanao.

Jayson H. Cainglet, executive director of Samahang Industriya ng Agrikultura, reiterated the call for the creation of first border facilities to contain the ASF outbreak.

“Without first border inspection facilities and indemnification from the government, the spread of ASF will continue. Unfortunately, it is the backyard farms that are being infected dahil sila ang hindi pa makasabay sa (because they are the ones that still can’t catch up with) enhanced biosecurity sa (in) farms,” he said in a Viber message.

The USDA also lowered its projection of pork imports this year to 500,000 MT from the initial forecast of 525,000 MT.

Citing the BAI data, pork imports dropped by 17% to 114,820 MT during the first quarter.

Meanwhile, the Philippines is said to have held higher frozen inventories “to support its supply chain and begun rebuilding stocks on time with historical precedent.”

“Importers will face a similar dilemma at the end of 2023 as they had in 2022, needing to decide how much extra to hold given the continued uncertainty of another extension of lower import duties,” the USDA said.

The agency said that retail prices of local pork “continue to hold steady” while imported pork and local farmgate prices are seen declining.

As of Friday, price monitoring of the Department of Agriculture (DA) indicated that markets in Metro Manila sold pork belly or liempo at between P310 and P390 per kilo while pork shoulder or kasim at P280 to P340 per kilo. 

CHICKEN OUTPUT FORECAST
Chicken production and imports are seen to be flat at 1.47 million MT and 520,000 MT, respectively, according to the USDA.

“Philippine poultry industry contacts have voiced increased interest in a potential bird flu vaccine to help combat the now long-standing threat HPAI (highly pathogenic avian influenza) has posed and hope there will be a decision on the authorization and emergency use of avian influenza vaccines by September 2023,” the USDA said.

In terms of inventory, frozen chicken meat, excluding mechanically deboned meat, in accredited cold storage facilities remains “near historically high levels and reflective of growing import requirements,” according to the agency.

The Philippine Statistics Authority reported that the first-quarter production of chicken has increased by 3.3% year on year to 470,210 MT.

Meanwhile, chicken imports rose by 32% to 102,745 MT during the first quarter as per data from the BAI.

“Chicken retail prices remain elevated with a growing spread compared to farmgate in 2023,” it said.

Whole chicken was sold between P150 and P200 per kilo in Metro Manila markets, according to the DA. — Sheldeen Joy Talavera

Fête De La Musique broadens its horizons for its 29th year

FROM calm acoustic sessions and guitar-driven bangers to lowkey DJ sets and danceable tunes, the free music event from France now celebrated globally every June is exploring a deeper cause.

This year, the Philippine edition of Fête De La Musique, known simply as FDLM or Fête PH, is using its live celebrations across 43 stages from June 16 to 24 to bring awareness to ocean conservation.

“I was wondering the whole night why this year’s Fête is called ‘Mersea.’ At one of the stages an organizer said it’s a mix of mer (sea) and merci (thank you) in French, showing both gratitude and the goal of supporting ocean conservation. I found that really cool!” said Diane, a 24-year-old roaming the scattered pocket stages in Makati City on June 17.

She added that, as an avid fan of many local music acts who shifted focus towards “more important causes over the pandemic,” it made total sense for Fête PH to be more intentional with their influence.

“I’m huge on the swaying and bopping and headbanging, but it feels way better knowing that it’s all for something, too,” she added.

Since June is also World Environment Month, the festival partnered with the United Nations Development Program (UNDP) and the Department of Environment and Natural Resources (DENR) for coastal clean-up and tree-planting in Metro Manila, Siargao, and Cebu.

Xavier Leroux, executive director of Alliançe Française de Manille, told reporters at a media briefing that the challenge this year was “to make [FDLM] more purposeful, to connect culture with advocacy.”

They also partnered with ScarletBox.io for a fundraising campaign for the Philippine seas. The platform is featuring 1,000 NFT (non-fungible tokens) art pieces by 10 renowned photographers taken in La Union, Palawan, and Siargao.

The photographers whose works will be sold to raise funds are Chino Neri, Mike Eijansantos, Lancer Salva, Camille Robiou du Pont, Terence Ver Angsioco, Kat Jack, A Decade, Ganden Medved Po, ADAM, and Archie Geotina.

The art sale starts on June 19.

Giselle Tomimbang, president of B-Side Productions and co-producer of Fête de la Musique, told BusinessWorld that the festival’s attendee record in the country so far was set in 2019, with about 40,000 audience members.

However, the pandemic has “put things into perspective,” with last year’s 14,000 attendees now being the reasonable number to beat, and quality of events now the priority rather than quantity.

“We used to have Manila-centric Fêtes, but during the pandemic, many [people] moved elsewhere like to the islands or started putting more value in mother nature,” she added. “I think that’s really influenced how we view the world and how we use the platforms we have.”

THE LIVE MUSIC
On June 23, the main stage for Fête de la Musique 2023 will be in Greenbelt 3, Makati, and will feature performances from Blaster & the Celestial Klownz, Lola Amour, She’s Only Sixteen, Cheats, Ena Mori, and Uncle Bob’s Funky Seven Club.

“My friends and I treat the pocket stages as kind of a warm-up for the main stage next week,” Diane told BusinessWorld while walking to her fifth stage for the night.

Like many other Millennial to Gen Z attendees, who make up the brunt of the Filipinos going to Fête, she’s spoiled for choice — there were 31 pocket stages in Makati that weekend, which provided a wide range of genres.

The participating venues included H&J Sports Bar & Restaurant, A’toda Madre, Mang Rudy’s Tuna Grill And Papaitan, Social House, saGuijo Cafe, Alamat Filipino Cuisine, Boogie MNL, Enzo’s View Bar at Jade Hotel and Suites Makati, Nokal, Kampai, The Spirits Library, Bourbon New Orleans PH, The Apartment, Sarisari Cocktails, Apotheka, Ugly Duck, Justin Alonte Studio, White Banana, Bagnet 8065, Kuya Boby’s Restobar, Seltsam, Mansion Sports Bar & Lounge, La Colina, Coyote Ribs & BBQ, Dear Adam Sweet Lucy, Kosumosu PH, Commune, Balcony Music House, Futur:st, and Keepers Poblacion.

“I’ve been to four, now on my way to the fifth, and hoping to visit at least eight! We’re all just so hungry for live music,” said Diane.

“I’m also glad there’s stages in other cities, because I have friends in Baguio, Laguna, and Siargao who can have their own experiences too.”

Fête PH 2023, in partnership with the Department of Tourism, will have destination stages in Albay, Baguio, Baler in Quezon Province, Cebu, El Nido in Palawan, Laguna, Pampanga, Siargao in Surigao, Tagaytay in Cavite, and Zambales. Almost all performances will be held on June 24 while Siargao is hosting its stage on June 21.

French jazz act Rémi Panossian Trio will also be flying in from France to perform on June 21 at the Raffles Makati and on June 22 at the Alliance Française de Manille.

For the lineup of events, visit Fête de la Musique PH | Facebook.

Fête de la Musique in the Philippines 2022 is presented in partnership with the Embassy of France and B Side Productions. — Brontë H. Lacsamana

How hip-hop learned to call out homophobia — or at least apologize for it

THE RAPPER Offset apologized over a homophobic slur.

IN THE 2018 song “Boss Life,” the rapper Offset, part of the multiplatinum-selling rap group Migos, rhymed: “I do not vibe with queers.”

Such casual use of a perceived anti-gay slur is not uncommon in the history of hip-hop. But the discussion that Offset’s lyrics provoked gave an insight to how the genre is evolving.

Addressing claims of homophobia, the rapper wrote on Instagram: “I didn’t write the line about gay people. … I got love for all people.” He continued: “To me [by] ‘queer’ I don’t mean someone who’s gay. I mean lame people who film you, post it and stalk you. Lingo that means strange or odd.”

I have no reason to question Offset’s sincerity, although other artists have criticized him for the slur.

But as a scholar of hip-hop and social consciousness, what interests me more is that Offset felt the need to reply at all; many of his rap predecessors have not felt the need after similar incidents.

As rap music approaches its 50th anniversary in August, I believe it is increasingly embracing challenges to — and debates about — homophobia. That is, hip-hop has evolved to the point where anti-gay rhetoric invites condemnation from members of the culture. It is still present in some rap lyrics — as indeed is true of all genres, from pop to country — but hip-hop is changing because of more progressive cultural views and greater LGBTQ+ representation.

Hip-hop has always been a socially conscious genre — but whereas it has historically challenged racial discrimination, it has slowly evolved on issues related to gender and sexuality.

Arguably one of the most poignant social commentaries on institutional racism at the time, “The Message,” released in 1982 by Grandmaster Flash and the Furious Five, included the anti-gay slur “f**” in a disparaging context.

Indeed, throughout the 1980s and 1990s, high-profile rap groups such as N.W.A and artists like DMX similarly used pejorative language against members of the gay and lesbian community.

Perhaps the most famous rapper using homophobic lyrics is Eminem. On The Marshall Mathers LP, he rhymed, “Hate f**s?/The answer’s yes.” In the aftermath of this controversy, Eminem performed with famous gay singer Elton John at the 2001 Grammys. Nevertheless, on follow-up albums he continued to use the slur. Throughout this controversy, there was only a muted response from the rap community itself.

Advocacy groups such as the Gay and Lesbian Alliance Against Defamation have long campaigned against the use of such language, lambasting Eminem’s hateful rhetoric and lyrics alluding to violence against members of the LGBTQ+ community.

And such lyrics have real-world impacts. Indeed, researchers who studied the link between rap music and resistance among young men of color to coming out found that it influenced some gay men’s decision to conduct any same-sex practices on the “down low” to avoid revealing their sexuality.

In the latter 2000s, attitudes began to change. For example, in 2005 Kanye West apologized for his past homophobia and even urged fellow artists to cease using lyrics that degrade the LGBTQ+ community. “I wanna just come on TV and just tell my rappers, just tell my friends, yo, stop it,” he said in reference to derogatory anti-gay slurs. In 2012, Jay-Z decried discrimination against gay people and promoted gay marriage.

These individual actions did not end anti-gay expression in rap, but it does, I believe, show progress among those in the hip-hop community. And others, from Nicki Minaj to Fat Joe, later followed suit as the 2010s progressed.

Furthermore, hip-hop artists and fans have increasingly welcomed what could be described as a queer aesthetic once frowned upon. Some cisgender male lyricists have appropriated parts of queer culture as part of their act.

For instance, popular Atlanta rapper Young Thug often cross-dresses, wearing women’s clothing. In a 2016 MTV interview regarding his wardrobe choice he stated, “In my world, you can be gangsta with a dress, or you can be gangsta with baggy pants.”

This contrasts with earlier rap. Such attire would be unthinkable in the 1990s when the belief was that “real” men “don’t wear tight clothes,” in the words of New York rappers Thug Slaughter Force. This idea was rooted in the belief that “hypermasculine” and “macho” straight guys wore loose-fitting clothing.

However, many present-day male rappers wear tight-fitting clothes — a fashion choice once considered “gay” and therefore demeaned in the rap world. Moreover, such outfits are created by gay fashion designers, a point that Offset acknowledged while defending himself against claims of homophobia.

Being comfortable with a gay aesthetic is one positive development. Even more telling, I believe, is the growing number of mainstream LGBTQ+ rappers. For many years there were no high-profile gay hip-hop artists. In fact, as late as 2014 Larry King was asking interviewees if they thought there would “ever be … gay rap artists.” There were, of course, but major record labels at that time rejected signing them.

Over the past decade, there has been a rise in the number of successful gay and lesbian emcees. Albeit the music of openly gay Lil Nas X is more pop than rap, it has sold over 1 million copies. Moreover, he has collaborated with other mainstream lyricists like Nas, Jack Harlow, Cardi B, and Megan Thee Stallion — all cisgender straight emcees.

Lesbian rapper Young M.A achieved platinum status and works with industry rappers. Even 50 Cent, no stranger to homophobic lyrics, praised her on Instagram: “Young M.A the hottest s*** out right now. I don’t like a lot of s***, but this is Tuff.”

Perhaps the best example of how hip-hop has evolved on issues of sexuality can be seen in the case of Tyler the Creator. Early in his career, Tyler frequently used anti-gay slurs, such as in the 2011 song “Yonkers” in which he says “I’ll crash that f***ing airplane that that f****t n**** B.o.B. is in.” But in 2018 he “came out,” revealing his attraction to a man in his music. In the song, “I Ain’t Got Time,” he rhymes “I been kissing white boys since 2004.”

Eminem responded by calling him a homophobic slur but later apologized.

In a perfect world there would be no slur to apologize for. But it does show that hip-hop has evolved to a point at which self-reflection and conversations are taking place on past and present instances of homophobia.

As the genre hits 50, previously marginalized LGBTQ+ voices are beginning to be heard — along with denouncements of homophobia by straight artists.

That’s not to say that anti-gay beliefs don’t persist in the music of some. In his 2020 song “Pimpin’ Ain’t Eazy,” Kodak Black uses the anti-lesbian slur “d***,” rapping, “Like a d***, man, you n***** can’t f*** with me.”

But hip-hop is not alone. Homophobia, transphobia and other forms of prejudice persist in the United States and across the globe.

And at least for now, rap artists are called on it – increasingly by members of their own community. — The Conversation via Reuters Connect


Matthew Oware is a Professor of Sociology at the University of Richmond in Richmond, Virginia, USA.

DoTr’s proposed 15-year NAIA concession won’t do much, says consortium

PHILSTAR FILE PHOTO

A 15-YEAR concession period proposed by the Transportation department and the Manila International Airport Authority (MIAA) will not significantly transform the Ninoy Aquino International Airport (NAIA), according to a consortium backed by six conglomerates, saying that a 25-year concession period is a more practical option.

“Under a 15-year concession period, the passenger service charge increase will be more abrupt than say a 25-year concession period,” Kevin L. Tan, Manila International Airport Consortium (MIAC) director and Alliance Global, Inc. chief executive officer (CEO), said on the sidelines of a media briefing on Monday.

“Honestly, I think that a 15-year concession period will not really do much in terms of transforming the airport. We have already studied that before and we have actually backed out of that proposal because we don’t think it would be meaningful for the Filipinos,” he added.

Mr. Tan was referring to the joint proposal submitted by the Department of Transportation (DoTr) and the MIAA to the National Economic Development Authority.

Under the P141-billion solicited proposal of the two government agencies, the private concessionaire will have 15 years to operate the airport and recover its investment.

Sought for comment, DoTr Undersecretary for Aviation and Airports Roberto C.O. Lim said in a phone message: “A 15-year concession period is adequate to improve passenger experience to meet international standards and increase the runway and terminal capacity through investment in technology, innovation, digitalization, deployment of equipment and passenger processing systems which are already in use in other airports.”

“DoTr and MIAA are also open to a longer concession period under defined circumstances warranting its extension,” he added.

On April 27, the MIAC, composed of Aboitiz Infracapital, Inc., AC Infrastructure Holdings Corp., Alliance Global–Infracorp Development, Inc., Filinvest Developments, and JG Summit Infrastructure Holdings Corp., and the Global Infrastructure Partners, submitted an unsolicited proposal for the rehabilitation of NAIA.

PROJECT COST
In the regulatory filings posted by the companies in April, they said that the proposal was valued at over P100 billion. Filinvest Development Corp. said in a disclosure on Monday that it solely referred to the initial investment throughout the first five years.

“Maybe there’s a confusion on the project’s cost, but the project cost involves the upfront payment of P57 billion and the around P211 billions of development cost. The initial proposal was like that, nothing changed,” Cosette V. Canilao, president and CEO of Aboitiz Infracapital, told reporters on Monday.

According to Mr. Tan, the MIAC will offer both significant unprecedented capital and economic value in its unsolicited proposal.

The consortium will make an upfront concession payment of around P57 billion, “a never-before-seen amount for any upfront concession payment,” he said.

The proposal also includes a P57 billion in committed capital for rehabilitation in the first five years of operations, as well as P154 billion in long-term capital commitments through 2048.

The project is also seen to contribute around P280 billion from ongoing revenue shares and taxes and P258 billion from net economic benefits such as employment creation.

“These equate to over P805 billion [in value] through a 25-year concession period. If you notice, a lot of the investments come in the beginning part and then the rest come towards the first five years and then beyond. The investments are slightly frontloaded in order for it to really really have a meaningful and transformational change for NAIA,” Mr. Tan said.

MASTERPLAN
The consortium said that the NAIA masterplan will have multiple phases centered on the P267- billion investment.

Its three main development phases will include improvements to capacity and reliability as well as the overall experience of passengers.

The first phase of the masterplan, called “Quick Wins,” will be implemented over the first two years with the goal of quickly increasing the airport’s capacity to 54 million passengers per annum (MMPA) by 2025 from the current P31 MMPA.

The initial phase will cover the improvements and optimization of processes, introduction of new concepts and technology, airfield upgrades, facade refreshing, and landscaping, among others.

For the second phase, the consortium is looking to increase the capacity of the airport to 62.5 MMPA by 2028 through expansion and development of the terminal floor area of Terminals 2 and 3, airfield facilities and enhancements to cross-terminal transportation.

The last phase targets to increase the airport’s capacity to 70 MMPA by 2048 and covers long-term expansion and development such as the additional expansion of Terminals 1 and 2 and airfield and runway upgrades.

According to the consortium, the terminal annex will receive 52% of the P57 billion in capital expenditures (capex) for the first five years, followed by civil works (24%), asset renewals (7%) and people mover system (4%) and “Quick Wins” (5%), with the remaining 8% going to other expenses.

Meanwhile, the estimated capex split for the P211-billion budget from 2024 to 2048 is 57% on growth projects and 43% on asset renewals. — Justine Irish D. Tabile

Wilcon expects muted growth this year — CEO

@WILCONDEPOT.PH

LISTED home improvement and construction supply retailer Wilcon Depot, Inc. expects muted growth this year due to its high base in 2022 and a shift in consumer priorities, the company’s chief executive officer (CEO) said on Monday.

“Because we do have a high base [from the prior year]… and discretionary spending by consumers are more towards [revenge travel], [this] would have an impact on the growth that we are looking at for 2023,” said Wilcon Depot President and CEO Lorraine Belo-Cincochan during a media briefing.

She added that the company will continue to focus on expanding its store network and enhancing its product offerings, as well as adapting its store formats to different markets.

According to the company, it plans to allocate around P3 billion on new stores, warehouses, and renovations.

It had earmarked about P3.95 billion in capital spending the previous year, higher than this year’s P3.8 billion.

The company also expects to exceed its store expansion goal this year, opening 12 to 14 additional stores.

“We continue building more stores, and we might end up with about 93 stores by the end of the year,” said Wilcon Senior Executive Vice-President and Chief Operating Officer Rosemarie B. Ong.

Wilcon hopes to open 100 stores by the end of 2025, with the company now operating 85 outlets across the country.

“There are still a lot of untapped areas,” Ms. Ong said.

Last year, the company reported a net income of P3.85 billion, up 50.2% from P2.56 billion in 2021. Its top line likewise rose by 22.2% to P33.97 billion from the P27.81 billion recorded the prior year.

For the first quarter of 2023, the company reported a 13.1% jump in net income to P962 million from the P850.67 million the prior year, driven by higher revenues.

Its top line during the three-month period went up by 12.9% to P8.74 billion from P7.74 million in the same period last year. Its expenses rose by 12.8% to P7.32 billion from P6.49 billion the prior year.

Wilcon shares closed 0.82% higher at P24.60 apiece on Monday. — Adrian H. Halili

Pixar film Elemental opens as studio’s second-lowest box office debut

ELEMENTAL (2023) —IMDB.COM

LOS ANGELES — Pixar’s animated movie Elemental took in roughly $30 million at US and Canadian box offices over the weekend, the second-lowest debut in the history of the acclaimed studio behind the Toy Story franchise, Finding Nemo and other classics.

Elemental, a story about overcoming outward differences, added $15 million overseas for a global total of $45 million from Friday through Sunday, distributor Walt Disney Co. said. The film opened in just three major international markets and will expand to other countries in the coming weeks.

The Flash, the latest DC superhero movie from Warner Bros., also underwhelmed at the box office. It topped the domestic charts with an estimated $55.1 million, according to researcher ComScore, at the low end of pre-weekend forecasts.

Analysts had predicted that Elemental would open with at least $31 million at domestic theaters. The $30-million estimate, which will be finalized on Monday, would rank just ahead of the $29.1 million for 1995’s Toy Story, Pixar’s first movie. Toy Story became a global blockbuster that spawned multiple hit sequels.

The studio is looking to rebound from the box office disappointment of its 2022 release Lightyear, the origin story of Toy Story hero Buzz Lightyear. The movie brought in an earthbound $226.7 million in global ticket sales, a fraction of the $1-billion take for 2019’s Toy Story 4

The director and producer of Lightyear were laid off last month, Reuters first reported, as Disney shed 7,000 jobs across the company in a cost-cutting effort.

Elemental is set in Element City, where Fire, Water, Earth, and Air characters live together. An unexpected friendship between Fire and Water borrows from director Peter Sohn’s relationship with his Italian-American wife, which he initially hid from his parents.

Tony Chambers, head of theatrical distribution at Disney, said he was disappointed by the domestic ticket sales for Elemental, which received positive feedback from movie critics and audiences and was heavily marketed. Audiences gave the film an “A” rating in polling by CinemaScore.

Mr. Chambers noted that both live-action and animated films based on original stories and characters have struggled at theaters since the COVID-19 pandemic. Franchises based on well-known intellectual property (IP), such as current hit Spider-Man: Across the Spider-Verse, are drawing mass audiences.

“Original IP has a harder time cutting through in the market,” Mr. Chambers said. “At this point in time, it’s a very busy marketplace.”

During the pandemic, former Chief Executive Bob Chapek decided to release three Pixar movies — Soul, Luca, and Turning Red — exclusively on the Disney+ streaming service.

That taught audiences to expect Pixar movies would be available to watch at home, said Jeff Bock, senior box office analyst at Exhibitor Relations Co.

At theaters, “they’re going to go back to the drawing board, and in this case what the drawing board means is sequels,” Mr. Bock said, pointing to next year’s Inside Out 2 and the planned Toy Story 5. “Disney knows how to sequel,” he said. — Reuters

AppleOne, Marriott International ink new deal for Bohol hotel

CEBU-BASED property developer AppleOne Properties, Inc. on Monday said that it had signed another deal with Marriott International to build a five-star hotel in Panglao, Bohol.

“Surviving the worst effects of the pandemic, people are now eager to make up for the lost time and travel, and we intend to bank on that,” AppleOne President and Chief Executive Officer Ray Go Manigsaca said in an e-mailed statement.

“We want to entice them more by bringing the luxury experience to the regions starting with Bohol which we believe they will enjoy even more because of the experiences and tourist destinations,” he added.

The company said that the JW Marriott Panglao Island Resort & Spa will be Panglao’s first five-star hotel.

“JW Marriott is part of Marriott International’s luxury portfolio and consists of award-winning properties and beautiful resort locations around the world,” the company said.

It added that the new property in Bohol will add to Marriott’s roster of over 100 hotels across 35 countries. It will ensure that the new hotel will offer “modern conveniences and 5-star amenities” in Panglao.

“The province boasts of endless nature-charged experiences in the tropical island life from chasing waterfalls, soaking in cave pools, swimming next to aquatic creatures, to getting lost in the beauty of the Chocolate Hills,” the company said.

This is the company’s third partnership with the Marriott brand following its Sheraton Cebu Mactan Resort and the Fairfield by Marriott Cebu Mactan.

AppleOne is banking on the recovery of tourism as it seeks to expand its hotel portfolio through partnerships with international brands.

“It is in constant pursuit of partnering with international luxury property brands as it holds on to its ultimate goal of turning the spotlight on the Philippines as a premier travel destination that offers not only unique experiences but also luxury and comfort away from home,” it said. — Adrian H. Halili

Entertainment News (06/20/23)


Peabo Bryson resets his PH tour   

IN A Facebook post, Ovation Productions announced that Peabo Bryson’s postponed Philippine concert tour has been reset although it did not give the new dates. The two-time Grammy winner was originally scheduled for a PH concert tour on July 19, 21, and 23 in Manila at the New Frontier Theater, in Cebu at the Waterfront Hotel, and in Davao at the SMX Convention Center. The company said that pending the new dates, tickets for the original July concerts will be refunded. SM Tickets and TicketNet will handle the procedure of the refund and the process may vary depending on the point of purchase. For more details and updates about the concert check the official website and Facebook Page of Ovation Productions at https://ovationproductionsmanila.com/ and https://www.facebook.com/ovationproductions/.    


TV5 upgrading reach across the Philippines

IN COOPERATION with Mediaquest, TV5 is expanding its reach to serve viewers in more areas of the country. According to a press release, “Coverage has been improved in the provinces of Cebu, Negros Occidental and Guimaras in the Visayas as well as in the cities of Davao, Cagayan de Oro, and General Santos in Mindanao.” TV5 earlier had extended its reach to Laoag, Ilocos Norte; Capas, Tarlac; Naga, Camarines Sur; Puerto Princesa, Palawan; and parts of Batangas Province. New transmission towers were set up in June to serve Kalibo, Aklan; San Jose, Mindoro; and Tuguegarao, Cagayan. This month it is extending transmission to Olongapo, Zambales; the Southern Tagalog provinces of Laguna, Cavite and Batangas; as well as Baguio, and Mountain Province. The expansion will allow the network to reach close to 18.5 million individuals in more than 4.5 million Philippine households by August of this year, the release said. Meanwhile, TV5  will be launching a new morning show, Güd Morning Kapatid, on June 19. The show will air Mondays to Fridays at 9:30 a.m. The hosts of the News5 production are Gretchen Ho, Jes Delos Santos, and Justin Quirino. The show will present a blend of current events, trending topics, useful advice, and human-interest stories. It will also add two new anchors — KaladKaren and Mikee Reyes — to its main primetime news program, Frontline Pilipinas which airs at 6:30 p.m., weeknights.


Makilala TV celebrates 10th anniversary

MAKILALA TV, the first and longest-running Filipino-American TV talk show in the New York Metro area, celebrated its 10th anniversary as a platform for showcasing the culture, stories, and voices of the Filipino-American community. To mark the occasion, a reception was held on June 10 at the Sheraton La Guardia in East Flushing, attended by about 50 guests who previously appeared on the show. They were led by Consul General Senen Mangalile, Commissioner Anne del Castillo of the New York City Mayor’s Office of Media and Entertainment; and Ambassador Mario de Leon, former consul general. Also joining the celebration was Zenaida Mendez, director of Manhattan Neighborhood Network (MNN) El Barrio Firehouse Community Media Center, and the production staff. Throughout its history, Makilala TV has covered a wide range of topics that speak to the Filipino American community: gun violence, entrepreneurship, aging, sex and intimacy, Filipino lesbians and burlesque artists, climate change, COVID frontliners, Black Lives Matter, and more. They recently did an interview with two young girls aged seven and eight, on the topic of school safety. “These are topics not commonly discussed in our community and that’s why we love talking about them,” said co-founder Cristina Pastor who shared how they initially fashioned themselves ala Barbara Walters’s The View. “We wanted it known that Filipinos are not a silent community.” Makilala was founded by Pastor and former public access producer for QPTV and filmmaker Maricor Fernandez. It is co-hosted by author and fitness coach Jen Furer, public health professional Rachelle Peraz Ocampo, and Pastor who also publishes The FilAm newspaper. Produced in partnership with MNN, Makilala TV is broadcast on MNN every other Thursday, Bronxnet TV every Wednesday, and globally on Kapatid International every Sunday. Co-host Jen Furer said the show aired at least 125 episodes and has had 601 guests in its 10 years. As Makilala TV embarks on its 11th season, it will continue to delve into relevant topics, according to co-host Ocampo. Episodes focusing on “Caring for Loved Ones with Dementia: Navigating the Journey” and “Filipinos in Staten Island” are in the pipeline for airing. For more information about Makilala TV and its upcoming episodes, visit www.makilalatv.com or follow them on social media platforms.

Megawide Construction Corp. to hold 2023 Annual Stockholders’ Meeting on July 12 via remote communication

MEGAWIDE CONSTRUCTION CORPORATION
No. 20 N. Domingo Street, Barangay Valencia, Quezon City Tel. No. (02) 8655-1111

NOTICE OF ANNUAL STOCKHOLDERS’ MEETING

To the Stockholders of MEGAWIDE CONSTRUCTION CORPORATION (the “Company”):

Notice is hereby given that the Annual Stockholders’ Meeting of the Company will be held on 12 July 2023, at 2:00 P.M. The meeting will be conducted via remote communication and can be accessed through the following link: Please click here.

The agenda of the meeting is as follows:

1. Call to Order

  • The Chairman will call the meeting to order.

2. Proof of Notice and Quorum

  • The Corporate Secretary will certify that notices of the meeting have been duly sent to the stockholders as of record date as required by the By-Laws. He will also attest to the attendance at the meeting and whether a quorum is present. Except as otherwise provided by law, a quorum shall consist of stockholders owning majority of the outstanding capital stock (exclusive of treasury stock) participating in person, in absentia, or by proxy.

3. Approval of the Minutes of the Special Stockholders’ Meeting held last 20 December 2022

  • The Minutes of the Special Stockholders’ Meeting held last 20 December 2022 will be submitted for approval. It contains the following matters: (a) Approval of the Minutes of the Annual Stockholders’ Meeting held last 30 June 2022; (b) Election of Independent Director; (c) Approval of increase in Authorized Capital Stock of Preferred Shares, and the consequent Amendment of its Articles of Incorporation; (d) Approval of offer, sale, and listing of additional Preferred Shares; and (e) Election of Directors.

A copy of the Minutes of the Special Stockholders’ Meeting held last 20 December 2022 is available in the Company’s website and attached to the Information Statement as Exhibit “5”.;

4. Chairman’s Address and President’s Report

  • The Chairman and President of the Company will give a welcome address and provide operational highlights of 2022.

5. Election of Directors

  • The stockholders will approve the election of the regular and independent directors to hold office until the next Annual Stockholders’ Meeting and until their respective successors have been elected and qualified. The nominees were evaluated on the basis of all qualifications required by the Company’s By-Laws, New Manual on Corporate Governance, and that no provision on disqualification would apply to them. The profile and qualifications of the nominees are in the Company’s Information Statement and Annual Report (“SEC Form 17-A”) which are available in its website.

6. Approval of the 2022 Audited Financial Statements

  • The 2022 Audited Financial Statements of the Company will be submitted for the approval of the stockholders.
7. Appointment of the External Auditor
  • The stockholders will approve the appointment of Punongbayan & Araullo as the Company’s external auditor.

8. Approval of the Acquisition by the Company of PH1 World Developers Inc.

  • The stockholders are to approve the acquisition by the Company of 100% of the outstanding capital stock in PH1 World Developers Inc. from its affiliate, Citicore Holdings Investments Inc.

9. Ratification of All Acts of the Board of Directors and Management

  • For ratification of the stockholders are all the acts of the Board of Directors and Management in the ordinary course of the Company’s business. A list of such acts is too voluminous to be included in the Information Statement. These acts pertain to government permits and clearances, execution of contracts, availment of services from banks, and other acts necessary for various construction project

10. Other Matters

  • The floor will be open for questions from the stockholders.

All stockholders of record at the close of business on 22 June 2023 are entitled to notice of and vote at the regular meeting and at any adjournment thereof. The stock and transfer books of the Company will be closed from end of business day on 23 June 2023 until 12 July 2023

Please refer to Exhibit 1” of the Information Statement: click here for the full details on the submission of proxies, procedure for voting, participation in the Regular Stockholders’ Meeting, and to view the Information Statement and Annual Report on SEC Form 17-A.

Quezon City, Philippines, 14 June 2023.

 

 

 

 

 


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NGCP says investment in substation upgrades reaches P6.47 billion

THE National Grid Corp. of the Philippines (NGCP) on Monday said that it had invested about P6.47 billion in substation upgrades to ensure grid resilience.

“The company continually implements projects to improve substation operations for the efficient and reliable delivery of power,” the NGCP said in a statement.

Since taking over the transmission system from the government in 2009, the grid operator has spent around P3.29 billion to modernize 15 of its substations and converter stations, it noted.

 The NGCP also said that these upgrades cater to the increasing load and reliability of the system.

The NGCP also said that between 2018 and 2021, it replaced 33 power transformers for a total of P1.8 billion.

Twenty-one of these transformers are in Luzon, three are in Visayas, and nine are in Mindanao.

“Besides this, 14 spare power transformers worth $14.6 million or P764 million were also delivered to six substations in North Luzon, five in South Luzon, one in Visayas, and two in Mindanao,” it said.

At the same time, the NGCP said that it had spent around $12.1 million or P612 million on four mobile transformer units as part of its ongoing preparations for the effects of man-made and natural disasters that may derail the transmission sector.

Many of these improvements were implemented in 2016 but still have yet to receive the provisional approval of the Energy Regulatory Commission (ERC), the NGCP noted.

“Given the operational need, NGCP proceeded with the implementation of these projects, setting aside for later, the issue on recovery approvals from the ERC,” the NGCP added.

BusinessWorld sought comment from the ERC but has yet to receive a reply as of press time.

In a previous statement, the NGCP said it had invested about P300 billion in improving the power transmission system since it took over in 2009.

The NGCP has also committed to finishing some transmission projects deemed vital to the country’s energy sector.

In June, the Energy department created a performance assessment and audit team to oversee the operations of the transmission network provider and system operator.

To recall, calls have emerged for a performance audit of the NGCP following the tripping of transmission lines on May 8, raising red and yellow alerts over the Luzon power grid. — Ashley Erika O. Jose

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