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[B-SIDE Podcast] The promise of power: Nuclear energy in the Philippines

 

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Nuclear energy has a bad reputation in the Philippines. That the Bataan Nuclear Power Plant is unfit and unsafe is what Carlo A. Arcilla, director of the Philippine Nuclear Research Institute (PNRI), calls “the greatest piece of fake news in the history of the Philippines.”

In this B-Side episode, Dr. Arcilla tells BusinessWorld reporter Brontë H. Lacsamana that nuclear technology is a “mature and old technology” contrary to Hollywood’s dire depictions. “A jet plane is more complicated than a nuclear power plant,” he said.

Aside from elaborating on its advantages, Dr. Arcilla explains the state of nuclear power in the Philippines — from its rocky history in the 1970s to its potential role in helping safeguard the country’s energy security in light of the depletion of the Malampaya gas field and the threat to coal exports because of the Russia-Ukraine war.

Recorded at PNRI in August 2022. Produced by Joseph Emmanuel L. Garcia, Earl R. Lagundino, and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

Here to stay? China’s cityscapes transformed by thousands of COVID test booths

RESIDENTS line up for nucleic acid tests during a lockdown in Shanghai, China, April 17. — REUTERS

BEIJING — A thousand days since the World Health Organization (WHO) was told of a “viral pneumonia” in central China, many countries have returned to pre-COVID-19 (coronavirus disease 2019) life. Not so China itself — in cities big or small, routine PCR testing is the new normal.

On Dec. 31, 2019, the WHO’s office in China was informed of cases of pneumonia of an unknown cause in the city of Wuhan, in Hubei province. Since then, the virus that is now known as SARS-CoV-2 has evolved into the less virulent Omicron variant, and most of the world has moved on.

After Shanghai was locked down in April and May to contain the highly transmissible Omicron strain, regular testing for the virus has become a fact of everyday life to ensure fast detection and quarantine of the infected and close contacts. It’s a policy that has been controversial and also a drain on public finances.

Tens of thousands of curbside sampling booths where people can be tested day and night have become a permanent feature of Chinese cityscapes. Proof of a negative PCR test once every few days is required to guarantee access to public venues, places of work and mass transit — even when there is no outbreak.

Testing booths, typically container-like structures erected in the middle of a pavement, are staffed by a few health workers in hazmat suits ready to take quick throat swabs. Some booths operate 24 hours a day.

As of the end of May, about 15,000 booths had been set up in Shanghai, according to local media. Beijing had about 10,000, while Shenzhen had more than 7,000.

“Doing a PCR test every two days, I really feel it’s a pure waste of resources,” posted one user of Weibo, a popular Twitter-like microblog in China. — Reuters

Marcos orders aid for typhoon-struck areas, five reported dead

Bongbong Marcos/Facebook | https://bit.ly/3LMG6VF

BULACAN — Philippine authorities rushed on Monday to distribute aid to thousands of evacuees after Typhoon Noru made landfall in the capital and northern provinces, leaving at least five dead and many areas flooded.

Sustained winds of 185 kilometers per hour hit the main island of Luzon at the weekend, prompting authorities to shut schools, government offices and the stock market through Monday.

President Ferdinand R. Marcos, Jr., ordered supplies be airlifted and clean-up equipment be provided to most-affected communities.

“The point at which we can stand down is when the majority of evacuees are already back home,” Mr. Marcos said at a news conference with disaster management officials on Monday, referring to the 74,000 people who were forced into evacuation centers by the storm.

Luzon, which accounts for more than two-thirds of the economy and roughly half of the country’s 110 million population, started clean-up operations as floods in the capital region had started subsiding, officials said.

Five rescue workers were killed in Bulacan province, Governor Daniel Fernando told DZMM radio station, where residents were seen wading through waist-deep waters while some were stranded on rooftops.

“Many homes were destroyed but all roads are passable and there were no landslides,” Quezon province Governor Helen Tan told DZRH radio station. The local government had started clearing fallen trees and other debris, she said.

Mr. Marcos conducted an aerial inspection on Monday and ordered officials to provide emergency power supply to two provinces north of the capital, Aurora and Nueva Ecija, which were left without electricity.

Noru made landfall as a category 3 typhoon but weakened as it traversed land on Sunday night. The storm was headed out over the South China Sea and toward Vietnam, according to the state weather agency.

The Philippines, an archipelago of more than 7,600 islands, sees an average of 20 tropical storms yearly. In 2013, Typhoon Haiyan, one of the most powerful tropical cyclones ever recorded, killed 6,300 people. — Reuters

BSP may continue rate hikes this year

PHILIPPINE STAR/ WALTER BOLLOZOS

By Keisha B. Ta-asan

THE PHILIPPINE central bank would probably increase key rates further this year to protect the peso amid a hawkish US Federal Reserve, analysts said at the weekend.

The local currency would continue its free fall against the dollar if the Bangko Sentral ng Pilipinas (BSP) “lags too much” behind the Fed’s aggressive policy tightening, First Metro Investment Corp. and University of Asia and the Pacific (UA&P) said in a joint report.

“We expect another 25-basis-point (bp) [increase] before the end of the year if inflation remains above 6.5%,” they said.

The BSP raised key interest rates on Thursday for a fifth time this year to tame inflation amid a struggling peso. It increased its overnight borrowing rate by 50 bps to 4.25% effective Friday, and its corresponding lending rate to 4.75%, as predicted by 11 of 15 analysts in a BusinessWorld poll two weeks ago.

The move followed the Fed’s 75-bp hike and signals of larger increases to come that caused the peso and Philippine stocks to tumble.

The central bank has raised key rates by 225 bps since May versus the Fed’s 300 bps since March.  

The peso closed at P58.50 a dollar on Friday from P58.49 a day earlier, based on Bankers Association of the Philippines data. It has weakened by 14.7% or P7.50 this year from its P51-a-dollar close last year. 

“Federal Open Market Committee (FOMC) projections reveal that the Fed may bring it up further by another 100-125 bps to 4%-4.5% by yearend to ensure a more drastic inflation slowdown, even if some ‘pain’ sets,” First Metro and UA&P said in their report.

“With the Fed firmly bent on beating down inflation to its 2% long-term target, it may even bring the rate all the way to 5% by end-2023.”  

The Philippine central bank might raise policy rates by a total of 50 bps more at its November and December meetings, ANZ Research Chief Economist Sanjay Mathur and economist Debalika Sarkar said in a separate note last week.

“The central bank does not view current monetary conditions to be restrictive,” they said. “Rather, it believes that growth will remain ‘respectable’ and the economy is capable of absorbing additional rate hikes.”

“We forecast hikes of 25 bps each in the November and December policy meetings. However, the evolution of inflation, balance of payments and extent of further tightening by the US Fed may reshape our assessment,” ANZ added.  

The BSP on Thursday raised its average inflation forecast for this year to 5.6% from 5.4%, exceeding its 2%-4% target for the year.

It also raised its forecast for next year to 4.1% from 4%. It expects inflation to average at 3% in 2024.

Makoto Tsuchiya, an assistant economist at Oxford Economics raised his inflation forecast last week to 5.6% this year from 5.4%.  

He also expects inflation to ease to 4.1% next year, still above the central bank’s 2-4% target.

“Against a backdrop of ongoing elevated inflation and at least further 75-bp US rate hikes this year, we expect the BSP to raise rates by another 25 bps at its November meeting, bringing the policy rate to 4.5% at yearend,” he added.  

Inflation climbed to 6.3% year on year in August from the nearly four-year high of 6.4% a month earlier and 4.4% a year ago. It was the fifth straight month that it exceeded the BSP’s 2-4% target this year. 

“We expect an extended pause over 2023 as priorities shift back towards supporting growth amid a weak external environment,” Mr. Tsuchiya said.

Philippine economic output grew by 7.4% in the second quarter, bringing first-half growth to 7.8%, according to data from the local statistics agency.

The Development Budget Coordination Committee (DBCC) targets 6.5-7.5% growth this year. 

The central bank will hold two more policy meetings on Nov. 17 and Dec. 15.

The peso will probably continue to weaken against the dollar this week as the market expects a more aggressive policy tightening by the US Federal Reserve until yearend.

PESO TRADE
The currency closed at P58.50 a dollar on Friday from  P58.49 a day earlier, P1.07 weaker than a week ago, based on Bankers Association of the Philippines data. 

The peso opened Friday’s session at P58.35 a dollar, declined to as much as P58.50 and rose to as much as P58.25.

Dollars exchanged dropped to $985 million from $1.51 billion on Thursday.

Expectations of more Fed rate increases caused the peso to sink further on Friday, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

The federal fund rate projected for end-2022 implies a 125-bp increase in the Fed’s two remaining policy meetings this year. Markets are pricing in another 75-bp rate hike at its November meeting.

“Clearly the Fed’s policies have affected our choices,” BSP Governor Felipe M. Medalla told Bloomberg Television on Friday. “We don’t want to match the Fed, at the same time we have to respond.”

“We clearly are intervening in the forex market,” he said. “One approach is to intervene more strongly because the volatility is actually now much higher.”

The other approach is to reduce local currency liquidity by borrowing more from the central bank’s weekly auctions so there will be less peso to chase dollars, he added.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. expects the dollar to continue strengthening unless the Fed drastically changes its tone.

He said the peso depreciates by about a peso for every 75-bp rate hike by the US central bank.

The BSP would probably limit its intervention in the foreign exchange market to avoid a sharp decline in dollar reserves, Mr. Asuncion said.

The gross international reserves hit $98.98 billion at the end of August, slipping by 0.85% from a month earlier and by 8.3% from a year earlier, according to BSP data. It was the sixth consecutive month of decline. 

This week, Mr. Ricafort expects the peso to trade at P58.15 to P58.55 against the dollar, while Mr. Asuncion expects it to move within P58.20 to P58.70.

Economists expect less optimistic macroeconomic goals

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

ECONOMISTS expect less upbeat macroeconomic targets when Philippine government economic managers meet to revisit the goals in December, citing the battered peso and persistently high inflation.

“I don’t think that the targets will be as upbeat as before,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in an e-mail last week.

The peso’s depreciation against the dollar and rising interest rates would probably reduce investments and consumption, he added.

“Revisions are warranted especially on debt servicing and transactions involving foreign currency because these are costing us more,” John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a text message.

Economists from First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) on Saturday said they expect the Philippine economy to grow by 6.5% this year, which is at the lower end of the government’s 6.5-7.5% target.

On Friday, Socioeconomic Planning Undersecretary Rosemarie G. Edillon said the Development Budget Coordination Committee (DBCC) might revisit macroeconomic assumptions in December.

“It really has to do with the actions of the Federal Reserve, and we’re hoping that is very temporary,” she told a forum.

Increased remittances from Filipinos overseas during the Christmas holidays could boost the peso, she pointed out.

“There are active inflows to our international reserves. We have very strong sources of those reserves, like remittances [and] business process outsourcing,” she said. The recovery in the tourism industry is also a source of foreign currency.

“The seasonal increase in overseas Filipino workers’ remittances and export sales in the fourth quarter could provide some support for the peso exchange rate especially toward the end of the year,” Mr. Ricafort said.

But the US Federal Reserve’s continued policy tightening to quell elevated inflation is a major factor, he said in a Viber message.

Mr. Rivera and Mr. Lanzona said dollar remittances might not be enough to offset the Fed’s hawkish stance.

“This may be significant but not necessarily enough given the aggressiveness of the Fed and given the pressures on inflation to increase due to demand pull and the persistent cost push inflation,” Mr. Rivera said.

“Even today, remittances are being received and yet the depreciation is at its highest levels,” Mr. Lanzona said.

The peso closed at an all-time low of P58.50 a dollar on Friday, a centavo weaker than its close a day earlier, according to data from the Bankers Association of the Philippines.

It has depreciated by 14.71% or P7.50 this year.

“A weaker peso would lead to higher inflation and interest rates — both a drag on economic growth and government spending,” Mr. Ricafort said. A weaker peso would also cut foreign borrowings by the government, he added.

BPI Lead Economist Emilio S. Neri, Jr. expects the peso to breach P60 a dollar by the fourth quarter or early next year if the Philippine central bank “continues to hike too gradually.”

“At P60, it will give us even less space for ‘Build, Build, Build,’” he said in a Viber message. “Expenditures for human capital development such as health and education could remain in the backseat as debt service takes a greater share of the budget pie unless we really see a massive growth in private sector investments.”

First Metro and UA&P economist expect consumer spending to pick up after 800,000 new jobs were added in July and as 70% of the population benefits from a weak peso.

“While inflation above 6% may cut into consumer spending, the significant peso depreciation puts more money in the hands of overseas Filipino workers’ families, business process outsourcing workers, and [exporters] and their suppliers,” they said.

These could offset the negative impact of inflation and help the economy expand by 6.5% in the last quarter, they added.

In July, the DBCC set its inflation assumptions at 2.5-4.5% for next year and 2-4% for 2024.

“In 2023, it will already be lower, but we realize that there are still challenges, especially with respect to external pressures like fuel prices,” Ms. Edillon said. “For our part, it’s really about addressing food security, especially for the most vulnerable.”

Socioeconomic Planning Assistant Secretary Sarah Lynne Daway-Ducanes told the same forum crude oil prices are expected to go down in the latter part of the year, which could help stabilize inflation.

First Metro and UA&P said the government has some legroom for spending since the budget deficit narrowed by 9.1% to P761 billion in the seven months to July.

“The National Government has a leeway of nearly P900 billion from total budgeted deficit for 2022, although we think the administration won’t use all that to retain some fiscal space for this and the coming years,” they said, citing slower spending growth and a 22.2% growth in taxes.

Headline inflation eased to 6.3% in August from a near four-year high of 6.4% in July, bringing the eight-month average to 4.9%. — Diego Gabriel C. Robles

Senators vow swift passage of 2023 appropriations bill

BW FILE PHOTO

By Alyssa Nicole O. Tan, Reporter

SENATORS at the weekend ruled out the possibility of a reenacted budget, vowing to swiftly pass the proposed P5.268-trillion national budget for next year.

“The passage is as guaranteed as Christmas happening on Dec. 25,” Senator Francis Joseph “Chiz” G. Escudero said in a Viber message. “The era of the reenacted budget is over. There is only one important deadline here: that the President signs it before the end of the year.”

“There has always been only one main hurdle in budgeting and that is the limitation imposed by funds,” he added. “No matter how you slice and dice the budget, you come up with the same conclusion — you need a bigger cake but you don’t have the ingredients to bake a bigger one.”

Next year’s budget is 4.9% higher than this year and is equivalent to 22.2% of the gross domestic product.

The Senate expects to approve the 2023 budget bill by mid-December, according to Senator Juan Edgardo M. Angara, who heads the Finance Committee.

“The Senate is on track with its budget calendar and we will work hard to finish on time without getting in the way of senators’ and the public’s right to be heard in the budget debates,” Senator Ana Theresia “Risa” N. Hontiveros-Baraquel said in a Viber message.

“We do not want to have a reenacted budget because it will cause more harm than good,” she added. “Based on our recent experience, it stifles economic activities, denies people needed funds for social programs and enables vast power to the administration to realign the budget.”

The government had to operate in the first few days of 2020 using funds from 2019 after the budget bill was delayed.

The government also operated on a reenacted budget in 2019, which economists blamed for slower growth of 5.5% in the second quarter from 6.2% a year earlier.

Ms. Hontiveros said rising food, fuel, feed and fertilizer prices have affected the local farms, transport operations and poor households.

“Consider the possibility of rising hunger as household budgets are squeezed,” she said. “The National Economic and Development Authority does not even have a 2022 baseline on hunger incidence and has not set up a monitoring system even in the face of unprecedented national and global food inflation,” she added.

 “I hope I’m wrong, but there can be surprises in this area that might require a major reconsideration of short-term budget priorities,” the senator said.

Ms. Hontiveros also said it is difficult to spot appropriations that could be potential sources of corruption and abuse such as intelligence and confidential funds.

“Does the soliciting office really need it and should it be that large? Such budgets should be thoroughly scrutinized,” she said.

“Another challenge is proposing processes that would get things done faster and better such as local collaborations to fill in the backlogs in classrooms, housing, etc.”

The biggest challenge will be “ensuring that the national budget is responsive to the needs of the Filipino people,” Senator Emmanuel Joel J. Villanueva said in a Viber message.

He said the government should prioritize measures to address spiraling commodity prices, expensive medical treatment and lack of funding for social protection programs.

“I do not see any significant roadblocks that will derail the passage of the budget,” he said.

Senator Joseph Victor G. Ejercito expects minor delays in budget hearings as some resource speakers fall ill amid a coronavirus pandemic.

“There were instances where our resource persons could attend the hearings because they were coronavirus-positive,” he said in a Viber message. “We still need to follow health protocols in our hearings and deliberations. There are limits in the number of people who can enter the Senate and those who will attend the hearings in person,” he added.

“Though it is possible to participate in hearings online, it still makes a lot of difference when all our resource persons are physically present.”

Mr. Angara earlier said senators expect to finish committee hearings by mid-October and plenary debates by mid-November, leading up to the passage of the budget bill by late November.

Senators and congressmen are then expected to tackle disagreeing provisions, after which the ratified version will be signed by President Ferdinand R. Marcos, Jr. by mid-December.

The House of Representatives has finished budget hearings and started plenary debates on Sept. 20. It expects to pass its version of the bill by Oct. 1.

Milan Fashion Week: Dolce & Gabbana teams up with Kim Kardashian; Versace’s ‘goddess gone grunge’; Gucci’s twin-themed show

MILAN — Dolce & Gabbana teamed up with US reality TV star Kim Kardashian at Milan Fashion Week on Saturday as the Italian luxury label presented its latest collection for women’s wardrobes. (Watch the show here: https://www.dolcegabbana.com/en/ ).

To the backdrop of a giant screen showing a black and white video of Kardashian eating spaghetti, models wore embellished corset dresses, crop tops with high-waisted tight trousers, and shimmering or see-through frocks. Skirts were long and slim while jeans were torn or embellished.

Some models wore large chokers reading “KIM” or “LOVE.”

The color palette consisted of mainly black, white, shiny silver, with added touches of leopard print.

The label, headed by designer duo Domenico Dolce and Stefano Gabbana, had teased the #CiaoKim collaboration ahead of the show with short videos of Ms. Kardashian being photographed by paparazzi.

Ms. Kardashian, dressed in a sparkly black dress, closed the event by greeting the audience followed by designers Dolce and Gabbana.

VERSACE
Italian luxury label Versace mixed tiaras and studs for its latest womenswear creations at Milan Fashion Week, offering a collection it called “a goddess gone grunge” for next spring. (See the show here: Versace Spring-Summer 2023 Women’s | Fashion Show | Versace ).

Designer Donatella Versace opened the show late on Friday with all black looks, including tight-fitting dresses slashed at different angles. Black biker jackets and leather trousers had fringes or metal studs.

Pink and purple designs followed, including long dresses with deep cowl necklines, flared trousers and long zebra print chiffon shirts.

“I have always loved a rebel. A woman who is confident, smart and a little bit of a diva,” Donatella Versace said in a statement.

“She wears leather, studs and frayed denim and she has enough attitude to mix them with chiffon, jersey, and a tiara! She is a strong liberated woman; she is gorgeous; she knows it. She is the Goddess of Freedom.”

The last looks included short and long lace-trimmed dresses in purple, pink and lime, accessorized with veils in the same color.

US reality television star Paris Hilton closed the show in a short pink crystal mesh bridal dress with lace trims, accessorized with a pink veil and tiara.

GUCCI
Fashionistas saw double at Gucci’s Milan Fashion Week show on Friday, with the Italian luxury label surprising audiences by sending identically dressed twins down the catwalk. (See show here: www.gucci.com/us/en/st/gucci-twinsburg-fashion-show#video-1 ).

Creative director Alessandro Michele paid homage to twins and their bond for the show, called Gucci Twinsburg, a nod to the Ohio town which holds a yearly festival for twins.

The presentation began with single models walking down the catwalk, before a wall was lifted to show their brothers or sisters on the other side in the exact same outfits. The siblings held hands as they walked together in a striking finale.

“I am a son of two mothers: mum Eralda and mum Giuliana. Two extraordinary women who made their twinship the ultimate seal of their existence,” Mr. Michele said in show notes. “They lived in the same body. They dressed and combed their hair in the same way. They were magically mirrored. One multiplied the other. That was my world, perfectly double and doubled.”

Mr. Michele’s designs began with a black blazer jacket teamed with suspender-like trouser legs, followed by a bright red belted dress. Biker jackets were paired with skirts bearing cutouts, shimmering silver jackets were cropped and had large shoulders, while prints on colorful dresses depicted spanners and bolts.

Models also wore floor-length trench coats, floral kimono-inspired designs, and ruffled silk dresses, among an eclectic mix of looks. Accessories included long beaded jewelry and sunglasses, leopard print tights, and snakeskin boots.

EMPORIO ARMANI
Emporio Armani sought to bring a touch of “freedom and openness” to women’s wardrobes for next spring, with the Italian designer brand presenting a light travel-inspired collection at its latest catwalk show at Milan Fashion Week.

Veteran designer Giorgio Armani opened the presentation for his second label with lightly-colored looks made up of fluid jackets and loose trousers accessorized with black berets and bags. (View the show here: https://www.armani.com/en-us/experience/emporio-armani/fashion-show-spring-summer-women).

Models wore long shirts over trousers, sarong-like skirts and loose tops — all with flat shoes — at the show, held on Thursday afternoon.

“This collection expresses an idea of freedom and openness,” Mr. Armani said in a statement, adding that he wanted to give everyday wear the lightness of holiday looks.

Designs came in shades of blue, green, turquoise and mauve. For the evening, there were beaded tops, shimmering and embroidered sheer dresses in pastel hues.

Armani will present the latest collection for his main line, Giorgio Armani, on Sunday, the penultimate day of Milan Fashion Week.

PRADA
Simplicity and contrasts were the main themes at the Prada catwalk show in Milan on Thursday, with the Italian luxury label stripping off “unnecessary complication” in its latest womenswear collection. (View the show here https://www.prada.com/ww/en/pradasphere/fashion-shows/2023/ss-womenswear.html).

Designers Miuccia Prada and Raf Simons opened the Spring/Summer 2023 show with sharp grey looks including pointy-collared shirts, slim-fit trousers and a jumpsuit.

Reinforcing the idea of simplicity were sleeveless dresses made with a paper base fabric. The frocks bore slits at the front, creases and folds.

“The clothes are about simplicity, with no unnecessary complication,” Miuccia Prada said in a statement. “There is no complicated structure, nothing unnecessary. No nonsense — the rawness, the crudeness represents absolute simplicity. We wanted to do something with the most simple, modest material — with paper. Then we used this system of reduction and simplicity as a means of making beauty.”

Outerwear consisted of light opera coats and black leather jackets. Some coats had large bows at the back.

Last season’s sheer looks continued at Thursday’s show, with models wearing transparent tops and skirts.

The designers, who worked with film director Nicolas Winding Refn for the show, stuck to a minimalist color palette of grey, white, black with bursts of bright lime, orange, and red occasionally appearing on tops, handbags or shoes. — Reuters

Footloose and fancy free

FORMER teen stars Hillary Duff, Emma Roberts, and Claire Danes have one more thing in common, apart from growing up under the Hollywood spotlight. They’ve all been seen wearing sandals from Freedom Moses (at least according to People magazine). Because the brand just arrived in Philippine shores last July, you too can snag a star-worthy pair, for the price of P2,495.

At a launch on Sept. 8 in Bonifacio Global City, Freedom Moses founder and Creative Director Sarah Gurt talked about the brand, which she founded in 2014 in Tel-Aviv, which she called her adopted home, through a pre-recorded video. She studied fashion design in Paris, and practiced her profession in Los Angeles and New York before moving to Israel. “My life completely changed from (fast)-paced Manhattan to the beachy relaxed vibes of Tel-Aviv,” she said. “The name ‘Moses’ came from a vision I had of Moses walking into the desert wearing colorful slides, leading people to freedom.”

According to her, the sandals (which resemble double-strapped Birkenstocks) are “ageless, genderless,” and vegan, “which is extremely important to me.”

The products are approved by animal rights group PETA (People for the Ethical Treatment of Animals).

Still, just because something does not contain animal-derived materials does not mean it’s completely safe for the environment.  The sandals are made from a plastic alternative, polycarbonate urethane, which according to Freedom Moses Assistant Brand Manager Luigi Wilwayco, has as its ingredients oil and rock salt. “It’s a greener option compared to your typical plastic PVC,” he explained. The sandals are completely recyclable (though the brand’s sandal recycling drives have not arrived to the Philippines yet). In the Philippines, they’ve settled with packaging the sandals a biodegradable material. “We ensure that it’s a sustainable process for the product,” said Mr. Wilwayco.

The brand is available in over 50 countries and has partnerships with brands and stores Shopbop, J.Crew, Saks Fifth Avenue, Anthropologie, Neiman Marcus. In the Philippines, the brand is distributed by Tykes Trading, Inc., which also distributes Melissa shoes.

The brand’s motto is “Just Chill,” and Ms. Gurt says, “What does chill mean to me? The art of feeling relaxed. I think it’s about not taking ourselves too seriously. It doesn’t matter how busy we are. We can always feel more relaxed when we feel comfortable.”

Freedom Moses has a store in Trinoma, and is available in select Shoe Salon and The Playground Store shops located in Shangri-La Plaza, Robinsons Magnolia, and Trinoma Mall. The brand is due to arrive in Rustan’s and an online store is up and running at www.freedomoses.com.ph. — JL Garcia

PremiereREIT’s IPO in Nov. faces mixed sentiments

BW FILE PHOTO

VILLAR-LED Premiere Island Power REIT Corp. is likely to push through with its initial public offering (IPO) in November as the market conditions should have improved by then, an analyst said, but others have doubts about its timing.

The firm, also known as PremiereREIT, earlier this month disclosed details of its maiden offer at a time when rising inflation and interest rates added to uncertainties faced by investors.

“We think PremiereREIT’s IPO is likely to push through in November considering that market climate may have already started to improve by then,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

“Inflation rate [is] expected to peak in October while the market may have already bottomed out towards November after pricing in much of the interest rate uncertainties,” Mr. Temporal added.

However, Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said that “PremiereREIT and other companies planning to go public in the remainder of the year will have a difficult time raising capital in the equity markets.”

He said that because of the current high-interest rate environment, investors are more interested in bond offerings.

“Although PremiereREIT has a bullish outlook [for the Philippine energy sector], with a comprehensive project pipeline and a sizable asset portfolio, valuations are currently quite low, which may explain why some companies have deferred listing this year,” Mr. Lood said in a Viber message.

PremiereREIT, a power and infrastructure real estate investment trust, recently filed the registration statement of its P3.2-billion IPO with the Securities and Exchange Commission with its target listing date set in November.

The company, which is led by Manuel Paolo A. Villar, plans to offer up to 1.4 billion secondary common shares with an over-allotment option of up to 210 million secondary common shares at a maximum offer price of P2.00 per share.

The company’s offer shares will be sold by the subsidiaries of its sponsor, Prime Asset Venture, Inc., such as S.I. Power Corp. and Camotes Island Power Generation Corp.

Recently, Upson International Corp. deferred its IPO from October to the first quarter of next year while North Star Meat Merchants, Inc. deferred its IPO amid concerns about market volatility and inflationary pressures in June.

Mr. Lood said that “it is advantageous for companies to delay the issuance to give investors more time to digest what is happening in the market.”

“Year 2023 would be a better and strategic move to proceed with the IPOs so investors would see complete 2022 figures, which is also good for the firms considering the reopening theme,” Mr. Lood added.

Mr. Temporal said investors are likely to look forward to the second half of 2023 to 2024 as they have already priced in local curbed growth.

“2023 is expected to have normalizing macroeconomic conditions such as easing inflation rates and interest rate concerns and this should be able to bring in a better market climate toward IPOs,” he said.

“We also note that [the] Philippines still stands to remain in its reopening narrative, which could pave the way for upward re-rating of multiples and therefore bolster market sentiment for IPOs further,” Mr. Temporal added.

In terms of PremiereREIT’s success, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that “market conditions globally and locally would be a consideration to maximize the selling price of the shares as well as the proceeds to be raised.”

“The renewable power lease or rental income component of the REIT would be a potential differentiating factor, somewhat similar to Citicore Energy REIT Corp. (CREIT),” Mr. Ricafort said in a Viber message.

“Market is likely to weigh on its valuation by comparing projected dividend yield with that of CREIT, its nearest comparable which currently offers an estimated dividend yield of 8.4% at last traded price,” Mr. Temporal said.

“Investors are likely to seek higher dividend yields for PremiereREIT than that of CREIT given the poor performance of Villar’s recent IPOs. Market appetite therefore will be very much guided by its final offer price and projected yield,” Mr. Temporal added.

Mr. Villar is the eldest son of real estate tycoon and former Senate President Manuel B. Villar, Jr., and is also the president and chief executive officer of Vista Land & Lifescapes, Inc. — Justine Irish D. Tabile

The basics of creating a makeup routine

By Zsarlene B. Chua

MAKEUP is a fun way to express oneself: how one feels, their creativity, etc. It can also be very complicated, especially with the sheer number of brands, products, and options available in the market today.

So, if you’re a newbie who wants to build your own makeup stash, or someone who just wants to have the basics, here are some products and tips that can help you create your own beauty bag.

• Remember that good skincare is what makes a good makeup day

Yes, makeup can do magic: it can enhance and hide features but it can only go so far when you have a less-than-ideal skincare routine. I’ve noticed that putting makeup on without prepping my skin not only makes everything I put on fade faster, it also does not apply well (especially for face makeup like foundation and concealer), and sometimes makes my skin break out.

That’s why before anything else, ensure that your face is clean and prepped — this means putting on your moisturizer and sunscreen.

If you’re unsure what to include in your skincare routine, I’ve previously written a guide here: https://www.bworldonline.com/arts-and-leisure/2022/09/12/473719/how-to-build-your-own-skincare-routine/ .

• Start with a good base

I love hardworking multi-use products or products that simplify everything because they have more than one purpose. This is why I love tinted sunscreens or base makeup with SPF.

Tinted sunscreens like Belo Sun Expert Tinted Sunscreen (P450/50ml), Sunglow by Fresh Tinted Sunscreen (P329/50ml), blk cosmetics Universal Skin Tint SPF 30 (P499/30ml) are great options because not only do they provide sun protection, they also offer light coverage which is perfect for day use. Of course, if you’re someone who needs full coverage, there are also foundations that offer SPF.

• To conceal or not to conceal

A great concealer can fool everyone — even yourself — into thinking that you’ve had a full night’s sleep. It’s great for under eyes and skin concerns like pimples and hyperpigmentation. Such a concealer should be light enough and have enough staying power to last through the day.

My favorite concealers are from Maybelline because they tick all the boxes I want from my concealer. There’s the Maybelline Instant Age Rewind Eraser (P299/6.8ml) that does wonders for my often tired and dark under eyes. The Maybelline Fit Me Flawless Concealer (P249/6.8ml) meanwhile is more lightweight but provides decent all-day coverage.

• Pretend you’re wide awake with mascara

Mascara is one of my non-negotiables when it comes to makeup. A single swipe of a good mascara like Maybelline Hypercurl (P249/9.2ml) and the Vice Cosmetics x Anne Clutz SuperMegaUltraCurl (P295/8g) makes me look wide awake even when I’m really not and provides me the volume and length my Asian genes, unfortunately, didn’t give me. Mascaras are lifesavers.

• Get your hands on a hardworking multi-use palette

I’ve mentioned my love for multi-use makeup products — they’re great for simplifying routine and perfect for trips or in-office days when you want to bring products for a midday touchup but don’t want to bring the entire kit and caboodle.

Enter multi-use palettes. These are either eyeshadow palettes or face palettes. What I’ve learned recently is that eyeshadow palettes are very versatile: a basic palette like Squad Cosmetics Squadlet in Sneaky (P99) which has four eyeshadow colors can function as eyeshadow, bronzer, and even eyeliner and eyebrow powder in a pinch. The best part is it’s very affordable and small enough to fit even in tiny makeup pouches.

Face palettes like Careline Glow Getter Palette (P285) provide a bronzer, highlighter, and blush in one convenient palette. These colors are also great as eyeshadows. You can also get the whole shebang in palettes like the Careline Play to Slay (P320) or the PSJ x BYS Complexion Palette (P599) that already has eyeshadows and blush.

• Multi-use stains and tints for that effortless look

Complete your makeup look with a cute lip, plus points if the cute lip products are also multi-use. On a recent trip to the beach, I fully embraced the convenience and benefits of having multi-use tints and stains in my arsenal — they’re perfect if you’re going for that natural, effortless look (though it’s anything but effortless).

Generation Happy Skin Kiss & Bloom Water Lip & Tint (P399) and blk Cosmetics Water Blur Tint (P379) are mouthfuls to say but are the perfect products to use for that glow-from-within look. Just make sure you use the product sparingly and blend fast and thoroughly like your life depends on it, otherwise if you wait too long (like I did), you’ll end up with splotchy and patchy cheeks and lips.

(If you want something simpler, your regular lipstick also works as blush and I’ve even used mine as eyeshadow.)

• Start with a clean face, end with a clean face

The final tip I have is to thoroughly clean your face after a full day of makeup. No, a single face wash does not remove all the makeup and dirt that’s on your face. This is where you’ll need to double cleanse with cleansing oil or balm like the Biore Cleansing Oil (P349/150ml) or a micellar water cleanser like the Garnier Micellar Cleansing Water (P114/125ml) on a cotton pad before going in with your facial cleanser.

 

Zsarlene B. Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games. None of these products recommended are the writer’s clients. These are all independently reviewed and acquired products unless stated.

Meralco sales seen up in third quarter as businesses reopen

MANILA Electric Co. (Meralco) said indication of its electricity sales in the third quarter showed a 6% growth, an official of the power distributor said.

“Energy sales growth is between 6-8% per month,” Meralco Chief Commercial Officer Ferdinand O. Geluz told reporters on Friday.

He said that the main driver of the projected growth is the resumption of many businesses in August.

“This is driven by [the] commercial [segment]. Our commercial segment is bouncing back, and commercial is very important and within recovery though still below the 2019 level,” he said.

Mr. Geluz said that Meralco is also expecting its electricity sales to grow in November and to stabilize next year.

“We are seeing it to stabilize next year, and maybe to return to the 2019 level,” he added.

In the second quarter, Meralco posted P7.56 billion in net income, a 34.5% increase compared with the P5.62 billion recorded a year ago, driven by strong energy sales.

Meanwhile, Meralco’s wholly owned subsidiary MSpectrum, Inc., or Spectrum, is targeting to expand its installed capacity by yearend.

Spectrum Chief Operating Officer Patrick Henry T. Panlilio told reporters that to date, the company has installed solar panels with a total capacity of 43 megawatts (MW).

“By the end of the year, we’re hoping to reach 50 MW, at least for solar rooftop,” he said.

Mr. Panlilio said that for 2023, Spectrum is targeting to install an additional 20 MW of solar rooftop projects.

In terms of capital expenditures, he said that for every megawatt installed, the company estimates to spend around P45 million.

“The cost of a 1 MW installation usually amounts to P45 million with the current prices, maybe it could up to P50 million with foreign exchange now,” Mr. Panlilio said.

He also said that Spectrum is planning to grow the operations and maintenance side of the business.

“This is one activity or niche of ours, being a Meralco subsidiary. That’s why we are expanding this because not all of those who install solar panels are capable to maintain. Some are just doing it to sell,” Mr. Panlilio said.

Renewable energy firm Spectrum provides tailor-fit solutions for industrial, commercial, and residential customers through an in-depth understanding of energy consumption behavior. It is backed by Meralco’s energy expertise and proven safety track record.

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. — Ashley Erika O. Jose

Access roads for upland farms completed in Ifugao province

PHILIPPINE STAR/ ANDY ZAPANTA, JR.

THE Japan International Cooperation Agency (JICA) and Department of Environment and Natural Resources (DENR) have completed and turned over new access roads in Banaue, Mayoyao, and Lagawe in Ifugao province to support upland farmers.

“The roads are critical to helping upland farmers transport their agroforestry goods easily, find new markets, and for people to access basic services such as hospital care and schools,” JICA and the DENR said in a statement.

The roads were funded by a P1.8-billion cooperation project targeted at building or rehabilitating agroforestry support facilities under the umbrella of the Forestland Management Project (FMP).

Since 2012, the FMP has rehabilitated over 70,000 hectares of forest land across 24 sub-watersheds in Ifugao, Quirino, Nueva Vizcaya, Nueva Ecija and Iloilo provinces.

“JICA and DENR have partnered to save critical watershed systems in the Philippines as a move to address climate change and improve the livelihood of farmers and grassroots communities dependent on forest resources,” it added.

According to the DENR, the Philippines has more than 130 watersheds supplying water for irrigation, domestic, and industrial use.

The JICA-DENR partnership also implements conservation efforts at the river basins in Upper Magat and Cagayan, Upper Pampanga, and Jalaur on Panay.

“We join the Philippine government in their self-help efforts to sustainably manage the Philippines’ natural resources for the greatest good of the greatest number of people in the long-term. Conserving vital forest resources such as watersheds is critical to mitigating climate change risks and giving Filipinos opportunities to improve their livelihood through sustainable forestland management,” JICA Philippines Chief Representative Sakamoto Takema said.

Mr. Takema said access roads help upland communities implement sustainable community-based forest management activities, protect and maintain a total of nearly twenty thousand hectares of forest in Ifugao. — Luisa Maria Jacinta C. Jocson

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