MPIC awaits new price offer, restart of delisting

June 7, 2023 | 12:06 am

THE CONSORTIUM of companies that offered to take Metro Pacific Investments Corp. (MPIC) private may still quote a price different from what it offered minority shareholders of the listed conglomerate, its top official said, as he expects a restart of the delisting process.

Manuel V. Pangilinan, MPIC president and chief executive officer, told reporters on Tuesday that the bidders are “back to square one” as their selected independent financial advisor (IFA) was rejected by the Philippine Stock Exchange (PSE).

“The process will restart after the IFA has determined the price. They would probably give a range from X to Y, and they would have to submit that again to the PSE and the SEC (Securities and Exchange Commission),” he said on the sidelines of the company’s annual stockholders meeting.

In April, the bidding consortium offered to acquire MPIC common shares at P4.63 apiece, which represents a 22% premium over the company’s one-year volume-weighted average price. MPIC shares rose by 0.45% or two centavos to P4.46 apiece on Tuesday.

Mr. Pangilinan, who is also MPIC chairman, said the bidders are likely to appoint a new IFA, resulting in a restart of the delisting process when the new advisor has determined the tender offer price.

He said the previous independent advisor was not considered “independent enough” as it had conducted business with the shareholders of MPIC and some of the bidders.

“We have been given an accredited list… and there are probably only two that have not done much work or no work for us, so they would probably narrow it down to [one of them],” he said.

The selection of a new advisor comes after GT Capital Holdings, Inc. — which is a member of the bidding consortium along with Metro Pacific Holdings, Inc., MIG Holdings Inc., and Mit-Pacific Infrastructure Holdings Corp. — sent a notice to MPIC last week to postpone shareholders’ voting for or against its delisting, which was initially set on June 6.

GT Capital said that the fairness opinion and valuation reports for the tender offer on the minority shares had not yet been completed in time for the company’s annual stockholders’ meeting. MPIC accepted the consortium’s request for voting during a special stockholders’ meeting at a later but unspecified date.

MPIC has yet to determine a date for the special meeting, Mr. Pangilinan said, but “hopes” to complete the delisting process within the year.

The consortium said that once the reports have been finalized, another notice of intent will be submitted to undertake a tender offer, which will replace the one it previously sent.

Under the initial tender offer, First Pacific Co. Ltd., through Metro Pacific Holdings, will spend around $90 million to increase its stake by as much as 3.8%, while GT Capital will pay $70 million for an additional 2.9% stake. Mit-Pacific Infrastructure Holdings will buy up to 20% and MIG Holdings will acquire up to 10%.

The consortium would need to achieve 95% tender offer acceptance from minority shareholders for the voluntary delisting.

MPIC is one of the three key Philippine units of Hong Kong based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Adrian H. Halili

Zen living for city dwellers at The Grand Midori Ortigas

June 7, 2023 | 12:05 am

Facade-of-The-Grand-Midori-Ortigas-in-Ortigas-Center-Pasig-City-Artist’s-perspective-(1)-OL — The Grand Midori Ortigas in Ortigas Center, Pasig City. Artist’s perspective.

Where can you find Zen in the city? Being in Zen is about being mindful and at peace. The urban side seems to have a dynamic atmosphere with all the hustling; But one’s home in the city can play a part in fostering mindfulness, harmony, and a well-balanced lifestyle for a Zen living.

In the bustling Ortigas Center, city dwellers can find a sanctuary inspired by the concept of Zen at The Grand Midori Ortigas by Federal Land, which has recently launched its second tower. Featuring Zen-inspired design and amenities, The Grand Midori Ortigas provides urbanites a unique living experience that is both elegant and purposeful.

The Amenity Deck at The Grand Midori Ortigas. Artist’s Perspective.

The two-tower condominium is designed by world-renowned architecture firm Tange Associates from Tokyo, whose creativity can be seen in establishments such as the Yoyogi Gymnasium, St. Mary Cathedral, and Tokyo Aquatics Center. Tange Associates brought the blend of Japanese design and innovation that made up the sophistication and functionality of The Grand Midori Ortigas’ architecture.

From the façade of The Grand Midori Ortigas is a fusion of Japanese tatami and Filipino banig to feature a flowing weave pattern and bring forth the feeling of a Filipino home. The building also delivers better airflow and quality as well as a sunshade with its horizontal and vertical louvers on the façade.

The Grand Midori Ortigas’ residential units are also made to be easily harmonious with the particular design the homeowners want for their spaces to live their mindful and balanced lifestyles. Every unit presents simplicity with its light and airy interiors surrounded with expansive windows.

The newly-launched second tower is built with around 429 units. The variations come in a studio unit, which space ranged from 35.5 square meters (sq.m.) to 38 sq.m.; a one-bedroom unit of 48 sq.m to 64 sq.m. in size; and a two-bedroom unit of 69 sq.m. to 107 sq.m.

Flex Suite at The Grand Midori Ortigas. Artist’s perspective.

In addition, The Grand Midori Ortigas offers a Flex Suite in its second tower, giving residents a flexible living space to match their respective lifestyles. The Flex Suite is a 64 sq.m. one-bedroom unit with a 13 sq.m. multi-purpose area called the Flex Space, plus a built-in sliding room partition. The Flex Space can serve as a home office, art studio, workout area, nursery, or whatever the needs of homeowners may be for their Zen home living.

Meanwhile, the array of Zen-inspired indoor and outdoor amenities within The Grand Midori Ortigas are especially designed to promote a balanced living.

To take a break after a busy work day, residents can get active at the fitness gym, yoga room, exercise lawn, and lap pool. For a more leisurely respite, they can unwind in the game room and videoke room, or relax at the pool lounge and Jacuzzi. For residing families with kids, they can enjoy children’s playroom, children’s pool, and children’s play area.

Amenities also included a conference room and a study lounge to provide another space for those who want to study outside their units or those working from home.

There is also a Zen garden and landscaped area with a lounge in the place, which can be an ideal space for city dwellers to have a tranquil time and practice mindfulness.

Studio Unit at The Grand Midori Ortigas. Artist’s perspective.

The amenity spaces inside The Grand Midori Ortigas got their inspiration from the Japanese concept “wabi-sabi”, which pertains to finding beauty from imperfection, as well as the concept of “miyabi”, which means the expression of elegance and refinement.

The Grand Midori Ortigas further enables a balanced lifestyle for its convenient location along the Exchange Road in Ortigas Center, giving residents access to various lifestyle choices, including shopping malls, leisure spaces, and restaurants. The place is also close to exclusive schools, hospitals, and upcoming infrastructure developments.

With its spaces designed with your Zen in mind, The Grand Midori Ortigas is an ideal sanctuary for people seeking to embrace serenity and bliss. For inquiries, visit The Grand Midori Ortigas website or email invest@federalland.ph.

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Empire East earmarks P25-B capex

June 7, 2023 | 12:05 am

EMPIRE East Land Holdings, Inc. said on Tuesday that it plans to invest P25 billion in capital expenditure (capex) projects in the next five years in line with its portfolio expansion.

In a media release, the listed housing developer said the capex infusion was driven by its efforts to “further solidify its commitment to meeting all project timelines.”

It added that the company acquired 426 hectares of prime properties adding to its land bank for future developments.

“Our portfolio is continuously expanding due to the progressing demands of Filipinos aspiring to own a home,” said Empire East President and Chief Executive Officer Anthony Charlemagne C. Yu in a statement.

The company said that it had spent P3 billion last year on construction and development activities.

Meanwhile, during the first quarter, the company reported a 15.1% jump in attributable net income to P205.78 million from P178.72 million in the same period last year.

The company’s consolidated revenues amounted to P1.31 billion in the three-month period, up 7.4% from P1.22 billion the previous year.

Its real estate sales for the period increased by 4.6% to P1.14 billion from P1.09 billion in the same quarter last year.

Sales growth was mainly driven by its various projects, which include San Lorenzo Place, The Paddington Place, Kasara Urban Resort Residences, Pioneer Woodlands, The Rochester Garden, Covent Garden, The Cambridge Village, The Sonoma, Mango Tree Residences, and Little Baguio Terraces.

Empire East is engaged in the development of mid-cost housing projects such as condominiums, subdivision lots, house and lot units, and commercial units.

Its subsidiaries include Eastwood Property Holdings, Inc.; Valle Verde Properties, Inc.; Sherman Oak Holdings, Inc.; Empire East Communities, Inc.; and 20^th Century Nylon Shirt Co., Inc.

It also has ownership interests in companies such as Laguna BelAir Science School, Inc.; Sonoma Premier Land, Inc.; and Pacific Coast Megacity, Inc.

On Tuesday, Empire East shares fell by 2.98% or a centavo to P0.16 apiece. — Adrian H. Halili

PHL fintech players rally behind campaign vs fraud

June 7, 2023 | 12:05 am

Fintechalliance.ph members meet with BSP and top cybersecurity officials

As part of its campaign to combat fraudulent activities such as phishing scams, members of FintechAlliance.ph rallied behind the launch of the Nationwide Consumer Cybersecurity Awareness and Education Campaign Against Scams, “Wag Magpaloko Maging Scam Alerto!”

Launched on May 29, 2023, during the Fintech Alliance Ph’s General Membership Meeting, the campaign gained support from the Bangko Sentral ng Pilipinas (BSP), the Department of Information and Communications Technology (DICT), the Philippine National Police (PNP), and the National Bureau of Investigation (NBI).

GCash officials with PNP-ACG Spokesperson PCapt Michelle Sabino

FintechAlliance.ph is the Philippines’ leading digital and fintech association that accounts for over 90% of the country’s digitally-initiated financial transactions with close to 100 corporate members.

“We are coming together as a united industry against phishing and other cybercrimes – which has been an urgent issue not just here in the Philippines but also globally. In order to build an inclusive digital economy, we need to reinforce trust and confidence by arming users with the right information and working closely with the PNP and the NBI. This is a shared responsibility not just among alliance members but also along with regulators, law enforcers, media, and the consumers,” said Fintech Alliance PH founding chairman Lito Villanueva.

Among the members of the FinTech Alliance.ph which committed to aggressively promote the industry-led cybersecurity education initiative include GCash, Maya Bank, UNO Digital Bank, Grab, RCBC, CIMB, Palawan Pay, Cebuana Lhuillier, P.J. Lhuillier, Alibaba Cloud, AllEasy, Asialink, Avaloq, Ayannah, Bank Genie, Betur, Brankas, BTI Payments, Bukas, Card MRI, CIBI, CIS Bayad Center, CRIF, Cyfirma, Food Panda, Digido, Direct Agent 5, Disini Law, Finantier, Finscore, BillEase, Geniusto, Gorriceta Law, Home Credit, HT Financial, iMoney, Investagrams, Investree, IT Group, KwikTech, Manulife, Novare, Moneyguru, Mount Fuji Lending, Multisys, NATCCO, and Netbank. Other key fintech players like Amazon, Cashalo, True Money, Xendit, Netcore, OF Bank, Paymongo, PeraHub, MOCASA, 7-Eleven, Pru Life UK, Rockbird, Salesforce, SAVii, SeedBox, SeedIn, Share Treats, Smart, Sun Life, Tala, InLife, Togetech, TransUnion, Traxion, Vesta Payment also threw their support for the campaign.

FintechAlllianceph members rally behind anti-fraund campaign

“I am proud to see everyone working hard to make the Nationwide Consumer Cybersecurity Awareness and Education Campaign an effective and invaluable tool in helping accelerate the Philippines’ digital economy. You can count on the BSP to be a staunch supporter of this project. We will continue to work hand in hand with all of our stakeholders and ensure the far-reaching impact of this campaign,” BSP governor Felipe Medalla said.

Aside from the BSP, key officials from cybersecurity enforcement agencies were on hand during the launch led by NBI-CCD Chief Atty. Jeremy Lotoc and PNP-ACG Spokesperson P/Capt. Michelle Sabino.

“We at the PNP-ACG, are committed to help the FintechAlliance.ph promote its cybersecurity campaign to protect and safeguard our countrymen against cybercrimes”, said Sabino.

United under the Alliance, Philippine fintech players are keen on demonstrating their commitment to driving financial inclusion in the country.

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Settling down at a new home

June 7, 2023 | 12:05 am

The Virgin Lab Fest is ready for its audience

STAGING a popular annual festival of plays that have yet to be tried and tested onstage is hard enough in regular circumstances. It has been all the more difficult given the myriad of uncertainties Philippine theater has faced in recent years.

As the Virgin Labfest (VLF) turns 18 this year, it challenges veteran and upcoming playwrights, directors, and crew alike to adjust to its new home, Tanghalang Ignacio Gimenez (the Cultural Center of the Philippines’ Blackbox Theater), while the iconic CCP structure itself is undergoing a three-year renovation.

Coming from a pandemic that forced VLF’s 2020 and 2021 editions online followed by a victorious physical return to the CCP in 2022, this year’s offerings are determined to keep up to standards.

“We’d like to thank audiences for coming back to see the amazing plays we have in store. I’ve no doubt that you will enjoy the show,” said VLF co-festival director Tess Jamias at the start of the technical dress rehearsals on May 31.

“This will be our first time staging the Virgin Labfest here in our new home, and we’re all very excited,” she said during the open rehearsals.

With this year’s festival themed “Hitik,” which translates to laden or overflowing with fruit or riches, it’s no surprise that the crowd of playwrights, directors, crew members, and close friends granted a preview of the coming shows were noticeably abuzz with excitement before and after rehearsal.

The night saw the curtain open on Set E (the one-act plays are grouped together into sets during the festival), which was titled “Hinog,” to imply the ripeness of the three revisited plays from last year.

After a disclaimer by Ms. Jamias that dress rehearsals mean possible hiccups or delays, the wildly funny yet socially relevant Punks Not Dead by playwright Andrew Bonifacio Clete and director Roobak Valle began, feeding the palpably giddy energy in the theater.

Though the crowd was nearly not as packed as it surely will be during the actual run, the laughs and gasps felt just as sharp. When it ended, some of its cast and crew piled into the audience during intermission, excited to watch the other two performances.

Fermata by playwright Dustin Celestino and director Antonette Go-Yadao continued to feed the crowd’s highly receptive energy as the chill atmosphere of a jazz bar was recreated onstage. With this one, pin-drop silences validated the actors’ heavy exchange of dialogue.

During the intermission before the final play of the night, the hallway outside was filled with conversation as audience members and some cast and crew discussed the various elements that were tweaked over time, like the lighting and the blocking.

The last play began — ‘Nay May Dala Akong Pansit by playwright Juan Ekis and director Karl Jingco — which involved audience interaction to some degree — ending the night with high spirits and positive outlooks on how the rest of this year’s VLF will go.

On the way out of the hall and speaking with artists and theater crew involved in the three productions, Ms. Jamias expressed high hopes for “Hitik.”

“It’s exciting that everyone is doing their best to give the best theater experience,” she said.

VLF 18 will present 12 new plays from both veteran and upcoming playwrights from June 7 to 25 at the CCP Blackbox Theater. Aside from the set of revisited plays seen by BusinessWorld, there will be four sets of new one-act plays — Adulting 101 (Set A), REBELasyon (Set B), Y.O.LO. (Set C), and Muwang (Set D) — and two sets of staged readings.

For tickets and other inquiries, contact the CCP Box Office at salesandpromotions@culturalcenter.gov.ph.) — Brontë H. Lacsamana

Arts&Culture (06/07/23)

June 7, 2023 | 12:04 am

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Da Vinci goes to One Bonifacio High Street

BONIFACIO High Street (BHS), in collaboration with award-winning, Istanbul-based creative new media studio Ouchhh, is putting the “art” in artificial intelligence (AI) with a sensorial showcase — Wisdom of Da Vinci: An Immersive AI Experience — running from August to October, at the 3^rd Level of One Bonifacio High Street, 5^th Ave., BGC, Taguig. Ticket reservations are currently being accepted, with tickets priced at P975 for adults, and P780 for students. The exhibition space will be filled with large-scale data paintings made up of vivid audio and visual projections. Visit https://bgcimmersive.com for tickets, and Bonifacio High Street’s official Facebook page www.facebook.com/BoniHighStreet for updates.

Arts-related workshops open to the public

CHILDREN and teens can explore their passions and talents in music, theater, dance, and design through the STAR Workshops. The six-week intensive training program aims to hone the creative skills of young artists in diverse fields. Organized by the Culture and Arts Unit (CAU) of the De La Salle-College of Saint Benilde (DLS-CSB), the activities will be facilitated by a roster of certified trainers and homegrown talents from the school’s clubs including Coro San Benildo, Saint Benilde Romançon Dance Company Hip Hop and Contemporary, and Dulaang Filipino. Also participating are senior student-artists from the Karilyo Shadowplay Collective, Stage Production Operations Team, and Cultural Promotions Team. Music by the Youth will tackle singing, both in solo and group settings. Guitar lessons are likewise available for beginners. Basic Acting for Teens and Kids covers character-building exercises and acting activities. Creative Movement for Kids and Movement Exploration for Teens guides participants with the basics of ballet and contemporary dance as training on coordination and balance. Introduction to Hip Hop provides a comprehensive overview of the art and essence of the street-style genre. Bituin the Lines: The Fundamentals of Visual Arts focuses on drawing and coloring; while Attract, Don’t Chase tackles the basic concepts of graphic design, photography, and video production, as well as the current trends of modern media production. Introduction to Costume Design highlights the significant roles of color and fabric, as well as the meanings they convey in a production. The STAR Workshops will commence on June 10 at the Benilde Design + Art and Taft Campuses. The season will conclude with a concert on July 29. The module is P4,000 per workshop and is inclusive of the recital fee. To register, visit https://tinyurl.com/STARWorkshops2023. Learn more about the program on https://www.facebook.com/cultureandarts.benilde.

Septuagenarian artist shows at ARTablado

WHEN it comes to a person’s creativity, age is seldom a hurdle to be overcome. In fact, the maturity the years bring can lend a sense of nostalgia to one’s work that can resonate with viewers. That is what artist Rolando Delos Santos brings to his paintings that evoke a more genteel time, one less frenetic, more subdued. The septuagenarian is the featured artist in a two-week exhibit at ARTablado in Robinsons Galleria from June 1 to 15. His body of work includes idyllic pastoral scenes, armfuls of flowers arranged in vases, and still lifes that incorporate detailed items like Chinese blue and white porcelain and white, perforated tablecloths. Studying Fine Arts at Feati University, Mr. Delos Santos has been featured in several solo exhibits through the years, participating in a number of group shows, most notably one at the Cultural Center of the Philippines — 100 Years, 100 Artists. For his ARTablado exhibit, Delos Santos chose the theme “Vision of Reality” because he said an artist’s vision is of utmost importance.

Virgin Labfest 18 kicks off

THE 18th EDITION of Virgin Labfest (VLF) — an annual festival of untried, untested, and unstaged works — is being led by festival directors Tess Jamias and Marco Viaña, with the theme “Hitik.” VLF 18 opens the curtains with four thematic sets of new one-act plays — Adulting 101 (Set A), REBELasyon (Set B), Y.O.LO. (Set C) and Muwang (Set D). There will also be one set of revisited plays (Hinog / Set E), and two sets of staged readings. The festival opens on June 7 and runs until June 25, with performances at 2 and 8 p.m. at the Tanghalang Ignacio Gimenez (Black Box Theater) of the Cultural Center of the Philippines. Tickets are P500.

Exhibit on National Artist Abdulmari Imao

“A LIFE Without Borders,” an exhibition on the life and works of the late Philippine National Artist for Visual Arts Abdulmari Asia Imao, opens to the public at the 12F Main Gallery of the Design and Arts Campus, De La Salle-College of Saint Benilde (DLS-CSB) on June 9. The exhibition provides a comprehensive introduction to the artistry of the renowned painter, sculptor, photographer, ceramist, documentary filmmaker, cultural researcher, and writer. He is known to have popularized Philippine Muslim art and culture as original Filipino art. The collection, on loan from his son visual artist Toym Imao, features 28 paintings that champion the indigenous ukkil, sarimanok, and naga designs — decorative motifs commonly used in Mindanao by the Tausūg and Maranao. There is also an assemblage of 38 sculptures that demonstrate Mr. Imao’s intricate wood carving and signature brass casting techniques. Also displayed are his sketches that walk the spectators into his creative genius. Scale models of high-rise buildings for Bonifacio Global City (BGC) are likewise on view, designed by the budding student-artists under the college’s Architecture Program, conceptualized and created under the mentorship of award-winning architect Jim Caumeron. “A Life Without Borders: Abdulmari Imao, National Artist for Visual Arts” is produced by the Center for Campus Art (CCA) and is curated by CCA Director Gerry Torres. It will be on view until Sept. 8, from 10 a.m. to 9 p.m. at the 12F Main Gallery of the Design and Arts Campus, De La Salle-College of Saint Benilde, 950 Pablo Ocampo St., Malate, Manila. For more information, visit https://www.facebook.com/BenildeCampusArt.

Understanding the US debt crisis: The battle against inflation

June 7, 2023 | 12:04 am

(Part 2)

What has been the impact of this battle against inflation on the Philippine stock market?

Jim Walker, Chief Economist at Aletheia Capital Limited (an independent research platform for the Indo-Pacific region), observes that from 2000 to 2019, average nominal GDP growth was 9.2%. Return on equity (ROE) on the Manila Stock Exchange has been well above that average. As of the first quarter of 2023, ROE was above 19% higher than the same quarter in 2022. If replicated throughout the year, ROE will hit 13% in 2023. This will feed the already bullish investment climate. Assuming that this profit proxy also applies to the unlisted parts of the economy, the business community’s growing confidence could readily result in increased capex spending, just exactly what the economy needs to grow faster than the 6-7% current rate.

Special mention should be made of the investment opportunities in the Information Technology and Business Process Management (IT-BPM) sector which saw 8.4% growth in 2022, adding another 121,000 full time employees (FTEs) out of the total number of 1.57 million FTEs. This sector earned $32.5 billion in 2022, up from $29.5 billion in 2021.

Despite talk of recessionary forces in the advanced countries in North America and Europe, the IT and Business Process Association of the Philippines (IBPAP) is confident that total employment in the sector will grow to 1.7 million with revenues reaching $35.9 million in 2023. As reported in this paper (on May 31), the Executive Officer of Sansan, Inc., a Japanese technology firm, said that the Philippines has an opportunity to attract more foreign companies to set up tech hubs in the Philippines that serves the wider ASEAN region, especially for software development and engineering talent. Fijikura Shigemoto said, however, that the country must increase access to quality education and training by targeting key areas of technology and entrepreneurship. Fortunately, Jack Madrid, President of the IBPAP, is planning to form an IT-BPM services online talent hub, as well as establish early-stage interventions to improve the employability of senior high school and higher education graduates.

In addition to the high employment generating sector that is the IT-BPM industry, infrastructure spending also generates many jobs as well as increase capital investment. As Jim Walker pointed out, the 9.9% growth rate in real gross fixed capital formation in the first quarter of 2023 was 350 basis points higher than the overall GDP growth rate of 6.4%. Such data support the view that the private business sector is on the move again. At the same time, the Government is committing to stimulate more infrastructure spending by spending at least 6% of GDP during the next five years. This will surely help crowd-in business investment, both local and foreign.

The $64-question is whether or not there will be support for increased investment activity from monetary policy. M2 growth increased only 7.4% year on year in March 2023. The most probable move is for the Bangko Sentral ng Pilipinas (BSP) to reduce the Reserve Requirement Ratio (RRR) in the next few months so as not to scare markets with a rate cut too early in the process of encouraging more investments.

An additional reason why the BSP will likely be slow in reducing policy rates is concern over the currency. As was also the case among its neighboring countries, rate rises were required in 2022 to stem the depreciation of the local currencies. The peso is perceived as being one of the weaker currencies in the region. Since the beginning of 2023 it has lost 27% against the US dollar. However, on a trade-weighted nominal effective exchange rate (NEER) basis, the depreciation over the same period has really been only 11%. In fact, the NEER is up 6% from early 2018. In real terms (deflated by the Consumer Price Index, CPI), the peso is at 20-year highs.

Jim has some very valuable insights about the peso-exchange rate. He confirms a view I have expressed several times in the economic briefings I give that there has been too much of a penchant among our policy makers, and even private sector people, for a strong peso. We have been doing an injustice to our OFWs and the IT-BPM industry who have been earning tens of billions of dollars for the economy but have been undercompensated for their efforts with a strong peso. He pointed out correctly that only once in the last seven years has the Philippines run a current account surplus. Answering his rhetorical question, I assert that the real appreciation of the peso in the last few years has taken its toll and is therefore signaling a sharper decline in the nominal exchange rate.

Here again we see the importance of bringing consumer price inflation under control. If Philippines inflation is higher than most of its trading partners, its competitiveness will continue to be undermined. That is why we should support all the efforts of the BSP to bring down inflation to the 2-4% level.

There is, however, a bright spot in this relationship between high inflation and the current account deficit. Jim rightly points out that the adjusted resource gap has been in surplus for most of the period during which the current account has been in deficit. The explanation is that net foreign direct investment has been offsetting the current account weakness. That highlights the second most important challenge to President Bongbong Marcos after addressing food security and agricultural productivity. That is attracting FDIs to the tune of $15-20 billion annually, as Vietnam has already done in recent years. Jim is optimistic that this is within reach because of current problems and issues elsewhere in the ASEAN region.

Even if we continue to suffer from persistent current account deficits, attracting large amounts of FDIs will not only remove the image of the peso as the “weak man of Asia.” It will also significantly increase the ratio of Gross Capital Formation to GDP to levels above 30%, which is what most of our East Asian neighbors have been enjoying literally for decades.

Let me end by quoting verbatim the conclusion of Jim Walker about the bright prospects facing the Philippine economy. Let me reiterate that he represents a completely independent think tank and investment research firm and has no reason to issue self-serving reports as our own government officials may be suspected of doing:

“The authorities still have challenges, consumer price inflation being the most pressing, and there are questions to be answered about intentions in the agricultural sector, but, generally the mood in Manila among a diverse set of contacts was upbeat. The prospect of political stability over the next five years is important and signals sent in the first year of the new administration, especially as regards willingness to do business with foreign investors, are highly encouraging. Compared to the murky pictures in both Indonesia and Thailand we would be happily overweight in the Manila Composite.”

Even before visiting Vietnam (whose 2023 First Quarter GDP growth was way below that of the Philippines), Jim already advanced his assessment about the so-called VIP (Vietnam, Indonesia, the Philippines) Club that President Marcos talked about during his trip to Davos early this year. After his recent visit to the Philippines, Jim Walker boldly asserts that: “At the moment, the Philippines is ahead on both growth metrics and politics.”

I can only say “Amen.”

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Cebu Landmasters launches 3^rd tower of Bohol beach town

June 7, 2023 | 12:04 am

CEBU LANDMASTERS, Inc. (CLI) has launched the third and final tower of Costa Mira Beachtown Panglao, its beachside residential project in Bohol through a joint venture with Lite Properties Corp.

In a statement on Tuesday, CLI Chairman and Chief Executive Officer Jose R. Soberano III said the launch would “accommodate more residents aspiring for an inspiring and relaxed life in Bohol.”

He said the project, which was designed as a tropical paradise, showcases Bohol’s rich culture and natural resources “while standing out as signature CLI development.”

The opening of the new tower will increase the property’s inventory to 1,056 units, which is spread across three residential categories, the company said. Its studio unit measures 22 to 25.36 square meter (sq.m.), while a one-bedroom unit offer 38.85 sq.m. to 45.88 sq.m. with a balcony. A two-bedroom unit spans 51.40 sq.m. The units’ price ranges from P2.8 million to P8 million.

The new tower is part of the P5.3-billion tropical beach community at Totolan town in Dauis, Panglao Island which spans 4.05 hectares.

“Strategically located near Dauis Bridge that leads to the provincial capital Tagbilaran City, the development connects residents to modern conveniences while being surrounded by natural wonders, including having convenient access to Bohol’s top dive spots,” the company said.

Up to 80% of the property’s first two towers had already been sold since the launch a few months ago, it said.

The beach town property includes amenities such as adult and kiddie pools, a playground, gym and jogging paths, a clubhouse, and indoor and outdoor lounges that provide spaces for “social interactions or peaceful introspections.”

“Making each unit at this Bohol property special is the design inspiration that takes cues from the local culture. The masonry wall finish and ceilings are painted to reflect the relaxing beauty of Panglao, while porcelain floor tiles provide a sleek and modern look,” it added.

The Panglao property is the second development under the company’s beach town residences following the initial launch of its Costa Mira property in Mactan, Cebu.

Lite Properties is an affiliate company of Lite Shipping Corp. of the Lim family of Bohol that operates a fleet of roll-on/roll-off ferries across the country.

CLI has more than 100 existing developments in 16 key cities in Visayas and Mindanao, with another P29.75 billion worth of projects in the pipeline.

The company said 19 projects are set to be launched this year, the first of which are three hospitality projects that will add 477 keys and increase topline contributions.

On Tuesday, its shares shed 0.38% or a centavo to P2.64 apiece. — Adrian H. Halili

Eliminating cervical cancer in the Philippines

June 7, 2023 | 12:03 am

beautiful-flower-still-life-ovary — FREEPIK

Globally, cervical cancer remains one of the most common cancers affecting women. In the Philippines, it ranks as the second most frequent cancer among women and the second most frequent cancer among women between 15 and 44 years of age. Every year, around 7,900 Filipino women are diagnosed with cervical cancer and around half — more than 4,000 — of them die from the disease, according to the recent data released by the International Agency for Research on Cancer.

The sad part is that most of these women who have been victimized by the dreaded disease were at an age when they were supposed to be at the prime of their lives. This is an age when they are considered significant contributors to the workforce and economy, and, at the same time, fulfilling their duties to provide and care for their families.

The premature deaths and suffering could be averted if there are evidence-based tools and innovations in place in the health system. This will also be true if current knowledge and lessons are applied to prevent, screen, and treat cervical cancer. Cervical cancer is no longer a death sentence; it is actually one of the most preventable and treatable forms of cancer — if detected early and managed effectively.

Indeed, the elimination of cervical cancer as a public health problem is feasible. It is a matter of putting ample resources in the right strategies and providing them at the right time.

In November 2020, at the height of the COVID-19 pandemic response, the World Health Organization (WHO) released a landmark resolution — The Global Strategy to Accelerate the Elimination of Cervical Cancer as a Public Health Problem. The strategy contains three main pillars: 1.) increasing coverage of human papillomavirus (HPV) vaccination of all girls ages nine to 14 years to 90%, 2.) increasing coverage of cervical cancer screening of women twice, at age 35 and age 45, to 70%, and, 3.) increasing coverage of treatment for all women identified with precancerous lesions and invasive cervical cancer to 90% — all by 2030.

As early as 2016, the Asia-Pacific Economic Cooperation (APEC) introduced a multi-year cervical cancer elimination roadmap. This would encourage member economies to scale up efforts to build technical capacity and support policies that improve primary and secondary prevention, treatment, and palliative care. By August 2021, APEC released an updated Roadmap to Promote Sustainable Economic Advancement for Women through Cervical Cancer Prevention and Control through 2025, which is currently aligned with the WHO Global Strategy.

According to the WHO, putting investments in interventions to meet the 90-70-90 targets can offer significant returns in both the economy and society. For every $1 invested through 2050, an estimated $26 is gained in societal and economic benefits. In addition, the WHO also recommends proper coordination between partners in the public and private sectors so that the integrated delivery of these interventions will be successful.

As a step towards the elimination of cervical cancer, the Stratbase ADR Institute organized a hybrid event on May 25 to officially launch the Philippine Cervical Cancer Elimination Movement. This is in collaboration and partnership with Jhpiego Philippines, the Philippine Obstetrical and Gynecological Society (POGS), the Philippine Society for Cervical Pathology and Colposcopy, the Cancer Coalition of the Philippines, and UHC Watch.

During this event, Prof. Dindo Manhit, President of the Stratbase ADR Institute, said that the “effective advocacy and communication strategies can overcome the many challenges that impede access to and use of cervical cancer prevention and care services. Such strategies should reflect national policy and be integrated into all levels of the health system.”

Dr. Jan Aura Laurelle Llevado, Division Chief of the Cancer Control Division, Department of Health, said that “having a benefit package is important. However, only few are included in the Z-Benefit Package of PhilHealth.” She also said that “one of the things that we should really communicate with our legislators, that if you give us a budget, give us also the budget for the entire continuum of care,” referring to the lack of budget provided for cervical cancer screening.

Dr. Ingrid Magnata, Country Program Manager of Jhpiego Philippines, said that “if this country wants to move towards cervical cancer elimination, we have to have good data.” She also mentioned that “achieving a nation free of cervical cancer is doable… but we need to organize ourselves, we need to systematize our efforts, and for us to reach elimination level, we have to scale up and, most especially, we need to empathize.”

Dr. Efren Domingo of the POGS, Dr. Fatima Gimenez of the Pediatric Infectious Disease Society of the Philippines, and Dr. Rui De Jesus of the WHO Philippines also shared their insights during the event.

As a signatory and member of the United Nations and APEC, the Philippines must adhere to the recommendations and targets of both international bodies. The country’s legislators, national and local governments, private organizations, civil society organizations, and other stakeholders should work together and ensure that the recommended strategies are promoted and supported in schools, academic institutions, workplaces, and communities.

Let us all take a giant leap towards the elimination of cervical cancer in the country by joining this movement. If we work together, we could fulfill the set targets or, even better, beat them prior to 2030.

Alvin Manalansan is the health and nutrition fellow at Stratbase ADR Institute and co-convenor of Universal Healthcare (UHC) Watch.

Brands need clients’ insights to grow — Synergy

June 7, 2023 | 12:03 am

women-computer-laptop — KOBU AGENCY-UNSPLASH

By Brontë H. Lacsamana, Reporter

CONTINUOUSLY monitoring the needs and wants of consumers, especially in uncertain times, is vital for brands to innovate and sustain their business, according to a market research expert.

Brands exist because of the customers who remain loyal to their products or services, so growing a business is basically “a race towards providing solutions to customers’ latest problems,” said Germaine A. Reyes, president and chief executive officer of Synergy Market Research and Strategic Consultancy, in an interview.

“Consumer purchase decisions are very much affected by what’s happening around us, the macroeconomic factors,” she told BusinessWorld. “That’s why we really need to stay tuned to how the needs and wants of consumers are evolving.”

The economy grew by 6.4% in the first quarter of 2023, the slowest pace in two years, as high inflation and rising interest rates dampened consumer spending, according to a report by the Philippine Statistics Authority in May. With tight monetary conditions, high prices have resulted in low consumer demand.

In light of this slowdown, brands must fine-tune their business strategies to avoid being tone-deaf to the plight of the average Filipino, according to Ms. Reyes.

Here are the adjustments that brands can make to their content based on the 2023 study titled “Finding Certainty in Uncertainties: Consumer Insights and Trends for Brand Growth” by Synergy in partnership with YouGov, an international research and data analytics company.

PRICING AND PACKAGES
Nine out of 10 Filipinos are struggling to meet their basic needs, according to the study.

Ms. Reyes said that one crucial aspect sought by consumers is affordability when it comes to brand offerings. This does not necessarily entail reducing product sizes but rather exploring strategies to enhance their value.

“That doesn’t mean that it’s the cheapest available,” she said. “It’s just an opportunity for brands to innovate their offerings.”

Whether it is providing product iterations at different price points or bundling different products together in a package, brands can develop numerous solutions to make purchases worthwhile.

The study also showed that consumers exhibit a heightened focus on investment and savings, while maintaining a positive outlook. Additionally, they are adept at recognizing price increases across various categories. “[Brands] have a role to play in spurring consumer spending in the Philippines — by not just increasing prices right away,” Ms. Reyes added.

STRONG STANCE ON ISSUES
Filipino consumers are highly conscious and have greater expectations from brands and their marketing efforts, according to the study by Synergy and YouGov.

One aspect is sustainability, where businesses are expected to embrace environmentally friendly practices encompassing supply chain processes and internal operations. Another significant aspect is diversity, equity, and inclusion or DEI.

“Companies can conduct the necessary workshops, from the management down to the ground-level employees, so they’re more aware of these issues,” said Ms. Reyes.

The study also found that less than 20% of Filipino consumers feel they are adequately represented in advertising. More than a third disagree that they are even represented at all.

On the flip side, the lack of diverse representation leaves open “a wide playing field.”

Ms. Reyes recommended that businesses consider various markets: “So much representation can be done, from gender equality and women’s empowerment to PWD (persons with disabilities) and senior inclusion.”

HEALTH AND WELLNESS
Aside from physical health being a major concern arising from the pandemic, there is a significant global prevalence of individuals facing mental health issues.

According to the market study, around six or seven out of 10 Filipinos have experienced psychological distress since the onset of the pandemic.

“Brands must bear in mind that empowering messages can help alleviate distress,” said Ms. Reyes.

Specifically, younger consumers tend to struggle in finding outlets for their mental well-being. Therefore, businesses can play a role in engaging and attracting Generation Z by incorporating mentally alleviating activities and branding initiatives, she also said.

“Ideas that emerged from previous webinars included providing moments of entertainment through innovative packaging and fostering family bonding to create a support system.”

BRAND HEROES
According to Synergy’s research, social media remains the top channel for capturing consumers’ attention.

However, beyond that, influencers have become essential for brands.

“Gen Zs are in search of heroes, and influencers essentially serve as their heroes when it comes to discovering products, gaining knowledge, and finding entertainment,” said Ms. Reyes.

This trend is particularly evident on TikTok, the widely successful short video app, which offers entertainment, educational content, and even shopping experiences.

“It’s a platform for recreation, education, and discovering new things, such as products and ideas,” she said.

Brands, she also said, must recognize that social media serves multiple purposes for tech-savvy consumers. Only then can they develop more effective marketing strategies.

ARTIFICIAL INTELLIGENCE
Ms. Reyes also noted that technology is continuously evolving, much like consumer trends. This parallel development makes it appropriate to utilize technology to adapt to changing consumer preferences.

Artificial intelligence (AI) is a timely example, although it has been around for some time, she said.

“It’s only recently that AI-related brands have become more popular, and it’s because of ChatGPT, which actually leapfrogged everyone else in terms of awareness, usage, future use, and interest,” she noted.

The market study found that there is real interest in the technology across generations, from Gen Zs who use AI for their studies to millennials who use it for work purposes.

Still, it is too early to tell how lucrative AI-related innovations could be on a large scale, with public opinion split on the matter — from those who believe it is transformational to those who oppose it for promoting a lack of creativity, according to Ms. Reyes.

She added that keeping abreast of more consumer studies in the coming years will help brands and businesses in gaining a deeper understanding of this matter over time.

SEC readies updated sustainability reporting rules

June 7, 2023 | 12:03 am

THE Securities and Exchange Commission (SEC) is aiming to release updated sustainability reporting guidelines within the year or early next year, a commissioner said.

“We will come out either this year or early next year [with] the next step of Memorandum Circular No. 4, which mandated sustainability reporting for publicly listed companies,” SEC Commissioner Kelvin Lester K. Lee said in a recent interview.

Memorandum Circular No. 4 has a “comply or explain” approach, which means companies are required to attach the annual report template but may provide an explanation for items with still unavailable data.

“If you remember, the setup there is to comply or explain. Moving forward, the intention is to make certain portions of the report mandatory,” Mr. Lee said.

Previously, the SEC was keen on making the entire sustainability report mandatory for publicly listed companies.

“The feedback has been that it might be too difficult for some of the publicly listed companies, especially considering they are not from the same starting point,” Mr. Lee said. “Not everyone is as well-equipped as the big companies.”

“We have to try and accommodate that even if I have been getting some feedback, internationally, that we should be stricter but we have to be cognizant of the limitation of our own entities,” he added.

According to Mr. Lee, the commission has an internally circulating draft of the updated guidelines, but it has yet to set a date for the issuance.

“The aggressive timeline will be the third quarter for public comment. So, the implementation would be either in the fourth quarter this year or first quarter next year,” he said.

In past interviews, the SEC’s position was also to include non-publicly listed companies in the directive.

“I had to change positions because the feedback shows that it is not viable, I think this goes back to the point that no matter how much I want it to happen, no matter how much I want to insist and force the issue, I have to be cognizant, I have to be aware of reality,” Mr. Lee said.

“Because rather than being supportive of business, I might be, inadvertently, a hindrance to business. We still want to be known for ease of doing business,” he said.

“Very quickly, if we mandate this for the smaller corporations like even one-person corporations, it might discourage them, so, we have to acknowledge that. That’s the context why the direction is like that, we are limiting it for now to publicly listed companies,” he added. — Justine Irish D. Tabile

Egypt reopens historic mosque after long restoration

June 7, 2023 | 12:03 am

Mosque of al-Zahir Baybars —EGYMONUMENTS.GOV.EG

CAIRO — A 13^th century mosque that fell into disrepair after being used over the years as a soap factory, a slaughterhouse, and a fort reopened in Cairo on Monday after undergoing a long restoration.

The mosque of Al-Zhahir Baybars, built under Mamluk rule in 1268, spans an area of three acres just north of central Cairo, making it Egypt’s third-largest mosque.

The mosque underwent mechanical and chemical restoration to bring it back to its original condition, said Tarek Mohamed El-Behairy, who supervised the restoration.

“Some parts were destroyed, some parts have been dismantled because they were structurally unsuitable to remain in the mosque,” he said.

“But we were very keen, even in the reconstruction process, to work according to the correct archaeological style.”

The restoration, which cost $7.68 million, was co-funded with Kazakhstan and began in 2007.

For 225 years, the mosque was either closed, abandoned, or had operated for non-religious purposes that contributed to its disrepair.

During Napoleon’s campaign in Egypt it was used as a military fort, then under Ottoman rule in the 19^th century as a soap factory. Later, when the British invaded Egypt in 1882, it was used as a slaughterhouse.

Al-Zahir Baybars was a prominent figure in Egypt’s history credited with cementing Mamluk rule in Egypt which spanned three centuries up to 1517. — Reuters