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Easing prices may spur BSP rate cuts

PHILIPPINE STAR/WALTER BOLLOZOS

By Keisha B. Ta-asan, Reporter

WASHINGTON, D.C. — The Philippine central bank may cut the key policy rate this year if inflation continues to ease in the next six months, according to its chief.

“We already have two very low month-on-month [inflation],” BSP Governor Felipe M. Medalla told reporters on the sidelines of an economic briefing in Washington D.C. on Wednesday evening (Manila time). “If that continues, then there’s a reason to pause.”

“If April has a similar pattern, then we have four more of that, five more of that, we can even talk about cuts,” he said. If inflation eases month on month by 0.2 point in the next six months, “why not?”

Inflation slowed for a second month to 7.6% in March from 8.6% in February, the slowest in six months. It averaged 8.3% in the first quarter, higher than the central bank’s full-year forecast of 6% and its 2-4% target.

“We will need more good data points for cuts,” Mr. Medalla said. “For a pause, just one more [month], because we already have two very good data points.”

The Monetary Board has raised borrowing costs by 425 bps since May last year — including the 25-basis-point hike last month — bringing the benchmark rate to 6.25%, the highest since 2007.

At the economic briefing, Mr. Medalla said the Bangko Sentral ng Pilipinas (BSP) would revise its inflation projections this year to less than 6%.

“The main reason for the revision is that the most recent inflation number from March is at the low end of the forecast range. That affects the forecast,” he said.

The 7.6% inflation in March was within the BSP’s 7.4-8.2% forecast. The central bank expects full-year inflation to average 6% this year before easing to 2.9% next year.

But rising global oil prices could still affect the country’s inflation, Mr. Medalla said.

Global oil prices spiked earlier this month after the Organization of the Petroleum Exporting Countries and their allies including Russia announced further output cuts of about 1.16 million barrels per day from May through the rest of the year.

Meanwhile, Mr. Medalla said he is not worried about the effects of the African Swine Fever (ASF) because it should soon wane.

The infectious hog disease has been affecting 21 provinces, 54 towns and cities and 137 villages in the Philippines, according to the Bureau of Animal Industry.

Last month, the bureau confirmed an outbreak in Cebu after 58 of 149 blood samples taken from hogs in Carcar City were found infected.

The flu was first detected in the Philippines in 2019, leading to the culling of thousands of pigs and prompting the government to boost meat imports.

FOOD SHORTAGES
The BSP might cut policy rates by the fourth quarter to support economic growth, said Domini S. Velasquez, chief economist at China Banking Corp.

“Inflation for 2024 looks to be firmly within target and the BSP can already start cutting rates by the end of the year to support economic growth; especially since we expect the gross domestic product to moderate this year and next year,” she said in a Viber message.

The government is targeting 6-7% growth for this year, slower than 7.6% in 2022.

But low month-on-month inflation will have to come from nonmonetary interventions, Ms. Velasquez said. “We’re seeing risks that need to be addressed proactively such as seeming food shortages again (garlic, onion) and the impact of the ASF. A lot relies on initiatives of the new interagency committee on inflation and market outlook.”

President Ferdinand R. Marcos, Jr. last month formed a committee on inflation that would ensure food and energy security. The body is co-headed by the chiefs of the National Economic and Development Authority and the Department of Finance.

The central bank has room to pause the rate increase at their May meeting, said Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. in Manila.

“The delayed impact of previous tightening has yet to filter through to the rest of the economy but already, we’ve seen its toll on bank lending, which has slowed considerably despite a solid economic growth momentum,” he said in an e-mail.

Bank lending slowed for a third straight month in February as outstanding loans by big banks eased by 10% to P10.69 trillion from a month earlier. It was also the slowest credit growth in 11 months.

The central bank must ensure that inflation slows to its 2-4% target and inflation expectations are controlled before they consider easing policy, Mr. Mapa said.

“Stringing together six straight months of low month-on-month inflation could be possible although we do recognize that supply side issues remain very apparent, such as the resurgence of the African Swine Fever and storms,” he said.

“The BSP will thus likely be looking at the type of inflationary pressures, making sure to distinguish between cost push and supply-side pressures, while also ensuring that inflation expectations are reanchored,” he added.

The local statistics agency will release April inflation data on May 5. The Monetary Board will meet on May 18 to discuss policy.

Gov’t may sell dollar bonds to migrant Filipinos in May

REUTERS

THE PHILIPPINE GOVERNMENT may launch next month a retail dollar bond offering that targets Filipino workers overseas, according to the national treasurer.

The decision to sell the bonds would be subject to market conditions, National Treasurer Rosalia V. de Leon told reporters on the sidelines of an economic briefing in Washington, D.C. on Wednesday evening Manila time.

“We’re looking to have our second tranche of the retail dollar bonds,” she said. “We look forward to a very successful launch again this time around.”

Ms. De Leon said the diaspora of overseas Filipinos would find it easier to buy the retail bonds because they could do so through partner apps.

The government might sell $1.5 billion worth of 5.5-year debt. “These are indicative terms and $1.5 billion was the size of the last retail dollar bond so it is just a benchmark,” she said in a Viber message after the event.

The Philippines’ last retail dollar bond sale was in 2021, when it raised $1.6 billion.

Last month, Finance Secretary Benjamin E. Diokno said the government was targeting to raise $2 billion to $3 billion from the retail dollar bond sale. Proceeds of the bond offer will be used to finance the national budget.

Ms. De Leon said they have no further plans so far to issue more global dollar bonds this year. But government economic managers would hold a roadshow trip to the Middle East.

Mr. Diokno earlier said that the government was eyeing other global bond offerings.

In January, the government raised $3 billion from its second global bond offering under the government of President Ferdinand R. Marcos, Jr.

The state borrows from external and local sources to fund a budget deficit capped at 6.1% of the gross domestic product for 2023.

The government plans to borrow P2.207 trillion this year, 75% locally. The government plans to borrow P1.654 trillion domestically and P553.5 billion overseas. — Keisha B. Ta-asan

Filipino workers need 270 years to earn $1M

PHILIPPINE STAR/WALTER BOLLOZOS

FILIPINO WORKERS will need to work in the next 270 years to earn $1 million (P55 million), based on the country’s minimum wages, according to research firm Picodi.com.

The Philippines ranked 89th out of 102 countries in the time it would take for an average worker to earn a million dollars, based on a report dated April 12.

Picodi said it summed up all the money an average worker of each country took home and got the average to rank each of them.

Picodi: Filipinos will need to work for 270 years to earn $1 million

Switzerland topped the list with the shortest time at 14 years and three months, followed by Singapore at 16 years and 11 months.

There was an almost 250-year gap between the Philippines and eighth-ranked Australia’s 24 years and 3 months to $1 million.

It would take more than 600 years for a worker in Pakistan to earn the amount, 523 years and three months in Uganda and 519 years and a month in Nigeria, Picodi said.

The report should have also taken into account the cost of living in each country, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said in a Viber message.

“Relatively high inflation levels and the cost of food, housing and transportation may have contributed to the Philippines’ low ranking,” he said. “Countries that have a relatively higher cost of living would see a reduction in their purchasing power.”

Philippine inflation eased to 7.6% in March from 8.6% in February, but core inflation, which excludes items with volatile prices such as food, quickened to a 22-year high of 8% from 7.8 a month earlier.

Jobless Filipinos increased by 4.3% or 102,000 to 2.48 million in February from a month earlier. Job quality improved to 12.9% from 14.1% in January and 14% a year earlier.

The International Labour Organization has said inflation continues to cut the purchasing power of low-paid workers.

It said in the first half of last year, global wages fell in real terms for the first time in the 21st century.

Lawmakers have proposed wage increases for those in the private sector to help them cope with rising commodity prices.

Last month, the Unity for Wage Increase Now labor coalition sought to raise the P570 daily minimum wage in Metro Manila to P1,100. The region’” wage board approved a P33 hike in minimum wages last year.

Wage boards can only act on wage increase petitions a year after a region’s last wage order.

The minimum living wage of a family of five in Metro Manila should be at least P1,008, the labor group said, citing data from think tank IBON Foundation.

“The current meager P570 minimum wage does not correspond to workers’ necessary essential expenditures such as food consumed at home, clothing and footwear, transportation expenses and education, among others,” it said in a wage petition dated March 21. — John Victor D. Ordoñez

Route investments from liberalization push to countryside, Marcos gov’t told

KABIUR RAHMAN RIYAD-UNSPLASH

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINE GOVERNMENT should ensure that foreign investments spurred by the liberalization of key public services benefit the countryside, economists said on Thursday.

“The amended Public Service Act is expected to push infrastructure further,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat. “However, its impact will be significant only if it is directed to increase infrastructure in remote rural areas.”

“Otherwise, increased foreign participation will only duplicate and crowd out local projects,” he said. “Foreign investment and the technology that comes from it should make these forms of capital in areas that need it cheaper.”

The amended Public Service Act, signed by ex-President Rodrigo R. Duterte in March 2022, allows full foreign ownership in telecommunications, domestic shipping, railways and subways, airlines, expressways and tollways, and airports.

The sectors used to be subject to the 40% foreign ownership cap for public utilities under the 1987 Constitution.

Mr. Lanzona said government intervention is needed to ensure that rural areas benefit from the law. “It should incentivize foreign investments in rural areas.”

It took almost a year for the National Economic and Development Authority (NEDA) to release the rules that will enforce the law, which took effect on April 4.

Mr. Lanzona said the amended law complements the push by President Ferdinand R. Marcos, Jr. for more private-public partnerships.

“This should expand opportunities for private sector participation in terms of investments and infrastructure,” Emy Ruth Gianan, an economics professor at the Polytechnic University of the Philippines, said in a Facebook Messenger chat. “More than opening the economy for broader competition, it should also encourage collaboration.”

Mr. Lanzona said the government should create the right environment to allow public-private partnerships to complement the amended Public Service Act.

Under the implementing rules, telecommunications are the only public service classified as “critical infrastructure.” Telecommunication services are deemed “vital to the Philippines that the incapacity or destruction of such systems or assets would have a detrimental impact on national security.”

Other public services are not considered critical infrastructure unless the president says so through an executive order. The NEDA can also recommend that a public service be considered critical infrastructure upon the request of a government agency.

The implementing rules include a reciprocity requirement for foreign investment in critical infrastructure, which means foreign nationals cannot own more than 50% of a company engaged in services classified as critical infrastructure unless their country extends reciprocal treatment to Filipinos.

The rules also outline the process and criteria for a national security review of foreign investment in public services and critical infrastructure.

Terry L. Ridon, convenor of infrastructure think tank InfraWatch PH, said the government should address governance issues that would make the law less effective in attracting foreign investments.

“Governance issues remain a problem at all levels of government, as red tape continues to delay the processing of permits and licenses,” he said in a Messenger chat. “Corruption remains a problem. Without resolving governance issues, no amount of economic liberalization will foster broader foreign investment into capital-intensive sectors.”

He said the government should hold investment roadshows. “We are making a bet that while the amendments might make foreign investors take a second look at the Philippines, unresolved governance issues will remain the most significant stumbling block to increasing capital flow to the country,” Mr. Ridon said.

Ms. Gianan said the NEDA and Philippine Competition Commission have important roles in ensuring a level playing field for both domestic and foreign entities.

“The amended PSA should also be an opportunity for local government units to improve their business climates to attract new entrants,” she added.

Cebu Landmasters sets P13.5-billion capex for 2023

LISTED Visayas-Mindanao property developer Cebu Landmasters, Inc. (CLI) has set its capital expenditures (capex) for the year at P13.5 billion, a 23% increase from last year’s P10.98 billion.

As per the company’s statement on Thursday, the majority of the capex (83%) will be used for project development, while a smaller proportion (11%) will be used for land acquisition.

The company has a pipeline of 19 projects with a total worth of P29.75 billion, it noted.At the same time, Cebu Landmasters said it intends to launch three hospitality projects this year, namely The Pad, Lyf Cebu City at Base Line Center, and Citadines Bacolod City, as part of its efforts to expand its gross leasable area with an additional 4,000 square meters.

“The company is also setting its sights on a Luzon entry with a landbank buildup that will begin this year,” it added.

Cebu Landmasters recorded a normalized attributable net income of P3.17 billion for 2022, representing a 32% rise from P2.40 billion the previous year.

“Our robust 2022 performance is a testament to our growing commitment and leadership in the Vis-Min region,” Cebu Landmasters Chairman and Chief Executive Officer Jose R. Soberano III said.

“We have been recording double-digit growth across all segments since our 2017 IPO (Initial Public Offering). We are finally setting our sights on Luzon in the next (two) years,” Mr. Soberano added.

The company reported a 40.3% increase in revenues to P15.66 billion from P11.16 billion, attributed to strong sales, exceptional collections, and important achievements; in addition, its unrecognized revenues for future recognition amounted to P29 billion.

Real estate sales grew 40.4% to P15.44 billion from the P11 billion in 2021, driven by significant progress in the company’s construction projects.

Last year, the company constructed around 5,000 residential units across 16 ventures worth a total of P19.36 billion.

“Sales velocity of these launches hit peak levels with most developments fully taken up within days. CLI’s first project in a new area, Puerto Princesa, for instance, was 85%-sold out in less than a week,” the company said.

Revenues from hotel operations surged by 71% to reach P83 million, whereas rentals increased by 7% to P79.28 million from its previous figure of P74.27 million, primarily as a result of higher lease rates and new tenants at the new corporate center.

Casa Mira, the company’s economical brand, made up the majority of revenue at 47%, with the mid-market Garden Series and high-end Premier Masters contributing 27% and 24%, respectively.

Cebu Landmasters shares closed 5.32% lower at P2.49 apiece on Thursday. — Adrian H. Halili

EEI sees benefits from full foreign ownership in industry

YUCHENGCO-led EEI Corp. (EEI) said the construction sector is expected to benefit from the opening of the industry to full foreign ownership.

“The structural reforms that promote foreign direct investment such as the Public Services Act (PSA) and the EO (Executive Order) to adopt the Philippine Development Plan, that the government is trying to institute, have the potential to impact growth in the manufacturing, renewable energy, and logistics sectors,” Henry D. Antonio, chief operations officer of EEI, told the stock exchange on Thursday.

Mr. Antonio will serve as the company’s chief executive officer starting next month.

The implementing rules and regulations of Republic Act No. 11659, which amends the PSA, took effect on April 4. This law allows full foreign ownership in public services such as telecommunications, airlines, expressways, and railways.

Further, President Ferdinand R. Marcos, Jr. has also signed an EO adopting the Philippine Development Plan 2023-2028, which sets the country’s roadmap for economic recovery.

EEI said these present fresh catalysts that will drive growth and opportunities for construction services for both light and heavy industries.

The construction company said that it remains confident in the company’s future, but it will approach the year “with cautious optimism amid economic uncertainties in the global and domestic front.”

“The prospects remain positive for EEI despite potential headwinds in the property sector and delays in the implementation of government infrastructure projects as its market position allows the company to keep thriving amid a short-term environment with fewer new capital projects,” EEI said.

The company added that it will continue to pursue international opportunities to maximize its steel fabrication capabilities.

It also said that Al Rushaid Construction Co. Ltd. (ARCC), EEI’s joint venture with Al Rushaid Petroleum Investment Co., will bring numerous “growth opportunities” after winning more contracts from major engineering, procurement, and construction companies.

“Both ARCC and EEI’s domestic construction operation have undertaken a reorganization to improve commercial approach, internal systems and processes as well as project delivery,” Mr. Antonio said.

EEI added that its current bids for several domestic projects will bring revenue visibility for the company over a longer term.

At the local bourse on Thursday, shares in the company declined by two centavos or 0.74% to end at P2.70 apiece. — Ashley Erika O. Jose

AGI sees 6% profit rise for 2022

TAN-LED Alliance Global Group, Inc. (AGI) on Thursday reported a 6% rise in net income to P25.2 billion for 2022, up from P23.8 billion previously, boosted by the recovery of its business segments following the country’s sustained recovery.

“However, increased inflationary pressures, higher cost of raw material, and ongoing distribution bottlenecks pushed overall costs and expenses to grow at a faster pace,” the company said in a disclosure to the stock exchange.

The company also reported a 4.7% decline in attributable net income to P16.1 billion from its prior year figure of P16.9 billion.

Alliance Global achieved a 20% growth in the previous year, with a total revenue of P183.6 billion, compared to P152.6 billion in 2021.

“The country’s sustained economic recovery helped propel the sequential top-line improvement of all our business segments last year, leading to our record performance in consolidated revenues in 2022,” Alliance Global Chief Executive Officer Kevin L. Tan said in a statement.

“It also helped that our Group’s diversified portfolio has remained agile to spot and seize opportunities in the marketplace,” Mr. Tan added.

Alliance Global is the parent company of Megaworld Corp., Travellers International Hotel Group, Inc., Emperador, Inc., Golden Arches Development Corp., and Infracorp Development Corp.

According to Mr. Tan, all the company’s businesses exhibited a sharp recovery in 2022.

Emperador booked a slightly higher net profit of P10.1 billion compared to P10 billion in the previous year, driven by higher sales in its whiskey and brandy segments. Its top line also recorded a 12.3% rise to P62.8 billion from P55.9 billion a year ago.

The group which runs McDonald’s Philippines recorded a more than double profit growth to P1.8 billion from P869 million the previous year.

Golden Arches Development achieved a record level top line of P34.4 billion, representing a 38.2% surge from the previous year’s P24.9 billion.

“Our spirits, gaming and entertainment, as well as QSR (quick service restaurants) units have registered unprecedented levels of revenue last year, driven by their respective strong brand equity and effective marketing strategies,” Mr. Tan  said.

Meanwhile, township developer Megaworld saw an attributable net income of P13.46 billion for 2022, higher by 0.2% from P13.43 billion, it said in an earlier report.

The company also disclosed a rise of 17.1% in consolidated revenues to P59.5 billion from P50.8 billion in the previous year.

“Our real estate business performed mostly above its peers, particularly in terms of keeping office rentals steady, higher-than-industry occupancy rates for its offices and hotels, and robust residential pre-sales,” Mr. Tan said. — Adrian H. Halili

GSIS invests P1.46 billion in Nickel Asia

THE Government Service Insurance System (GSIS) on Thursday said it had invested P1.46 billion in listed mining company Nickel Asia Corp. (NAC).

“GSIS continues to look for ways to lengthen its fund life through viable investment opportunities such as successful vertically integrated mining ore production and processing business of NAC,” GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said in a statement.

The investment sought to increase funds for the “member’s benefit” and to back the electronic vehicle industry which is the key market of the mining sector.

The partnership was sealed through a block sale approved by the Philippine Stock Exchange (PSE) on Wednesday, involving the purchase of a total of 233,558,683 common shares.

“GSIS’s investment in NAC shows that it is possible for a company to grow responsibly,” said NAC Chief Executive Officer and President Martin Antonio G. Zamora in a statement.

“Our commitment to sustainable development is something we take seriously, and we are happy to attract like-minded entities that believe in the value of responsible mining and renewable energy,” he added.

According to the company’s financial report, it recorded a 1.5% rise in its attributable net income to reach P7.93 billion in the previous year.

Revenues climbed 2.2% to P28 billion in 2022 from P27.4 billion in the previous year.

“Maybe GSIS viewed the NIKL acquisition to be at a discount to market since it’s been traversing within a range that’s especially close to previous lows,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The vertical integration of mining ore production and processing business” seemed to be the selling point of NAC that attracted the state-run pension fund to invest, he added.

The company aims to become a premier environmental, social, and governance investment and among the top 25 companies under PSE by 2025.

On Thursday, shares of Nickel Asia rose 35 centavos or 5.38% to close at P6.86 apiece.—Sheldeen Joy Talavera

Vitarich net income grows 44% to P129M

VITARICH CORPORATION FACEBOOK PAGE

VITARICH Corp. (VITA) on Thursday reported a net income of P129 million for 2022, up 44.21% from P89 million previously, owing to the growth in food and feed revenues.

“[The year] 2022 brought many challenges to families and business particularly as inflation intensified and food prices rose by double digits,” said Vitarich President and Chief Executive Officer Ricardo Manuel “Rocco” M. Sarmiento in a statement.

“Despite this difficult environment, our team at VITA worked tirelessly and delivered solid revenue growth and improved net income,” he added.

Revenues for 2022 totaled nearly P12 billion, a 23% increase year on year from P9.72 billion a year earlier.

The company also reported that its gross profit grew by 24% to P1.1 billion, while operating profit climbed by 21% to P223.2 million.

“The impact of cost inflation was partially offset by volume growth, pricing changes, and efficiencies,” the company said.

The food segment, which accounted for 52% of the total revenue, saw a 48% increase in revenue to reach P6.2 billion.

The company attributed the growth to the higher demand from food services and restaurants, as well as its newly released value-added products.

It launched new products under Cook’s Flavor Origins, including French Roast, Mediterranean Roast, and South African Roast.

Last year, the company expanded its operations in various areas such as Isabela and Bicol Region in Luzon; Samar and Leyte in Visayas; and Zamboanga City, Bukidnon, Marawi, Sultan Kudarat, and Sarangani in Mindanao.

Likewise, revenues in the feeds segment, which accounted for 44% of the total, inched up by 11% to P5.2 billion, backed by the 18% increase in pricing and 23% increase in input costs.

“The segment made significant progress towards operational milestones by increasing the number of distributors, megadealers, and retail feed outlets across Capiz, Aklan, and Central Negros over the course of the year,” the company said.

Meanwhile, farm revenues fell by 32% to P529 million due to the shortage of day-old chicks, which accounted for 4% of the overall revenues.

A fair value adjustment on biological assets of about P12.1 million was recognized as part of revenues and P1.1 million as part of cost of goods.

Vitarich said the cost of goods grew by 23% to P10.9 billion on higher sales volume and input costs.

The average cost of raw materials, such as wheat, soybean, and corn, surged by 25%, accounting for 70% of the total feed expenses.

The company also cited the pressure on handling and operating costs driven by the price increases in fuel, energy, and labor.

“Looking ahead, the company expects another year of strong revenue growth as well as better margins in 2023, encouraged by an expansion in its sales channels and the positive reception of the recently launched value-added products,” said Vitarich.

Vitarich is a poultry integrator and manufacturer of food products and animal feeds in the Philippines.

On the stock market on Thursday, Vitarich retained its shares at 63 centavos apiece. — Sheldeen Joy Talavera

Encantada: Women, worship, and the wild

A STILL from the play Encantada —PHOTO BY DARRELL SICAM

Dance
Encantada by Agnes D. Locsin
Alice Reyes Dance Philippines
Samsung Performing Arts Theater: April 14 and 15, 7:30 p.m.; April 15, 2 p.m.
Manila Metropolitan Theater: April 21 and 22, 7:30 p.m.; April 22, 2 p.m.

WIDESPREAD acclaim and the newly bestowed mantle of National Artist for Dance have done nothing to ease pre-opening night jitters for Agnes D. Locsin, who is restaging her magnum opus — a full-length piece titled Encantada that tackles the rapacious appetite of man, the destruction of the environment, and the violation of the sacred feminine — to open the season of Alice Reyes Dance Philippines (ARDP).

“It’s bloody,” she said in a video call with BusinessWorld. “For me, the pressure is the work, the beauty of the work. … My standards have gotten higher.”

‘LOCSIN, WE HAVE A CLASSIC’
First staged in February 1992, Encantada is a landmark piece that introduced audiences to Ms. Locsin’s neo-ethnic choreography — a fusion of ethnic dance, modern dance, and classical ballet — and later helped cement her legacy as a terpsichorean pioneer.

Featuring music by Joey Ayala and a libretto by Al Santos, Encantada and the nascent sketches leading up to it are detailed over two chapters in Ms. Locsin’s book Philippine Neo-Ethnic Choreography: A Creative Process (2012).

“Let me as early as now clarify that a lot of unpleasant things occur in any creative endeavor,” Ms. Locsin wrote of the year-long process of making Encantada with Messrs. Ayala and Santos. “Ours was what I call a necessary occurrence. We were a perfect creative team but highly volatile. Three strong personalities, each one capable of taking the directorial seat.”

In the end, Ms. Locsin had the final say.

The multimillion production is a generous display of the breadth and depth of her research-based choreography. Listed in her book are references to Catholic gestures of genuflection and flagellation, Marinduque’s Moriones festival, Manobo healing rituals, Cebu’s Sinulog festival, Baguio’s Grand Cañao Festival, Balinese trance dancing, and Kalibo’s Ati-Atihan festival.

The climactic “Digmaan” section, which takes place in the middle of the Encantada’s second act, was a challenge to choreograph since the members of the triumvirate each had their own idea of what it had to be and what it had to accomplish.

In her book, she writes that packed in that “10-minute visualization of a battle in epic proportions” are “ritual fighting, deforestation, rape of nature, and kaingin.

“I dug into it,” she said in the video call of the war scene, which was inspired by Mindanao’s Moro-Moro and Luzon’s Commedia dell’Arte. “I think I succeeded. … It was — and will probably always be — my favorite.”

Despite the standing ovations Encantada received during its premiere, almost 20 years had to pass before its creators realized the abiding cultural impact of the piece and their place in the pantheon of Philippine dance.

Ms. Locsin remembers that after catching a show at the Cultural Center of the Philippines (CCP) in 2011 — the last time Encantada was restaged — Mr. Ayala turned to her and said: “Locsin, we have a classic.” And gave her a high five.

(Long-time collaborators, Ms. Locsin and Mr. Ayala met as students at Ateneo de Davao University; they call each other by their last names as schoolmates are wont to do.)

This year’s restaging, overseen by Ms. Locsin, 65, stays as faithful to the original as possible. The iconic Encantada mountain by National Artist for Theater and Design Salvador “Badong” F. Bernal will rise in the Samsung Performing Arts Theater, which approximates the Main Theater of the Cultural Center of the Philippines (CCP) in size; and Manila Metropolitan Theater, which has a smaller footprint.

A cast of about 35 dancers, composed of ARDP members who are experiencing Ms. Locsin’s muscular yet precise choreography for the first time and several veterans whose bodies were forged by it, are tasked with preserving the integrity of her vision.

“They’re the future,” she said of this intergenerational mix. “As much as possible, we impart to the dancers how it should and must be done to the best of their ability.”

‘PREPARAR KA’
Georgette Sanchez-Vargas, 48, was standing in the middle of a hardware store when she received a message from Ms. Locsin: “Preparar ka.” (Ilonggo for “Be prepared.”)

It was a foregone conclusion that Ms. Sanchez-Vargas, who was 16 when she started working with Ms. Locsin, would reprise Encantada’s gut-wrenching title role (for which she won a Gawad Buhay Award in 2011).

She feels that she is now better prepared for the task, having more life experience to draw on. “So many things have happened in the past few years,” she said in the vernacular.

Her connection to the piece is deep and familial: she has danced in every iteration of Encantada and she is related to its choreographer (Ms. Locsin is the cousin of Ms. Sanchez-Vargas’ mother).

“I appreciate the images created by Agnes more. … The way she taught us how to control our bodies is amazing,” she said. “With Agnes, everything is particular — even your fingers and the way you stand. It’s very intense.”

Returning to the stage with Ms. Sanchez-Vargas are Kris-Belle Paclibar-Mamangun, a former member of Cirque du Soleil, who will alternate in the role of Babaylan with Carissa Adea (who won a Gawad Buhay Award for her performance in 2011).

Compared to these three, ARDP’s Monica A. Gana is a neophyte when it comes to the neo-ethnic style. She recently got a taste of it when she performed in Ms. Locsin Igorot, as part of a show that paid tribute to Ms. Locsin and ARDP founder Alice G. Reyes.

“It was quite mind boggling to be able to understand how one could feel the ground on shoes that were originally created to make dancers look like they’re floating onstage. But that’s where the attention to detail came in,” Ms. Gana said in an e-mail. “It was how you would tap or stomp your shoe on the floor. The lengthening of the entire body while still being connected to the ground as we bourree on pointe. Even in doing the traveling combination of steps, instead of thinking of hitting positions like the arabesque or the grand jete, it was more of how I will transfer my ‘center.’”

When she watched a recording of the 2011 performance, Ms. Gana was struck by the athleticism and stamina Encantada required of the ensemble.

“In most ballets, there are big group dance sections but most of the physically demanding steps are done by the leads. But in Encantada, it’s everyone,” she said. “A number of my colleagues have performed Encantada and they all affirmed how demanding it was not only physically but emotionally. But, when they shared their stories, it seemed like it was one of their best career experiences. … We have to work together to breathe and dance as one. No one should be left behind. We each have a responsibility to support and bring each other up.”

EVERGREEN MESSAGE
The message of Encantada is as enduring as Ms. Locsin’s neo-ethnic choreography. The piece, which opened in the wake of a flash flood that devastated Ormoc City in November 1991 and claimed thousands of lives, comes down hard on humanity’s disregard for the environment.

“We do a lot of things to destroy nature. It will come back to us,” said Ms. Sanchez-Vargas. “Karma is a bitch. You’ll see it in the ballet.”

Aside from Encantada, Ms. Locsin has choreographed Alay sa Puno, a suite of dances meditating on the movement of trees: Ugat, Dahon, Puno, Sanga, Bulak, and Bunga.

In her downtime, she tends to her mini forest, which she calls her Santuario ng Puno, composed of hardwood and ornamental trees. “They grow so slowly,” she said with a laugh of the acacia, narra, and molave she has planted. “Mamamatay na lang ako, wala pa itong mga puno ko.”

While her saplings need more time to spread their roots and stretch skyward, Ms. Locsin’s neo-ethnic choreography has already reached its zenith with Encantada.

Prior to joining a contemporary art museum and a small independent press as a publishing consultant, Sam L. Marcelo was a reporter and editor at BusinessWorld.

Metro Retail Stores Group turns profitable

METRO Retail Stores Group, Inc. (MRSGI) recorded a net income of P917.3 million for 2022, a turnaround from its net loss of P318.1 million in the prior year, the company said on Thursday.

“[The company] was able to display its resilience registering consistent encouraging performance across all quarters and ultimately closing the year with positive results,” Metro Retail President and Chief Operating Officer Manuel C. Alberto said in a statement.

“MRSGI marked this year as its leap from the net loss incurred during the pandemic to delivering a buoyant financial outcome. And we look forward to sustaining this growth in the coming years,” Mr. Alberto added.

Metro Retail’s revenues went up 22.2% to P38.35 billion from P31.38 billion recorded last year, mainly driven by an increase in net sales for the year.

The company’s sales for the year grew 22.1% to P38.1 billion from the P31.2 billion, driven by consumer spending during the holiday season in the fourth quarter. Rentals also increased 41.3% to P243.66 million from P172.47 million the previous year.

Same-store sales growth went up 19.2% due to continued store traffic.

Metro Retail’s general merchandise business rose 54.3%, while food retail also grew 13.1%.

“Amid the price pressures and supply chain challenges, the full reopening of businesses and improvement in labor market conditions primarily drove the growth in consumer confidence since the pandemic,” the company said.

The company’s expenses rose by 18%, reaching P36.94 billion from the previous report of P31.3 billion.

During the year, the company added two new supermarkets to its portfolio, bringing the total number of its stores across the country to 62.

It has also commenced the development of a new distribution center in Santa Rosa, Laguna, with the intention of facilitating its current and upcoming network.

“The company also launched several new projects in its store expansion pipeline in strategic areas across Luzon and Visayas,” it said.

Shares in Metro Retail Stores closed 0.71% higher at P1.41 apiece on Thursday. — Adrian H. Halili

About Us but Not About Us top winner at first summer MMFF

ABOUT Us but Not About Us was the big winner at the awards night of the first summer edition of the Metro Manila Film Festival, held on April 10 at the New Frontier Theater.

The summer MMFF kicked off on April 8 and is ongoing until April 18.

The film, basically a conversation between a gay literature professor, played by Romnick Sarmenta, and his student, played by Elijah Canlas, took home the most awards of the night: including Best Picture, Best Director, Best Lead Actor, Best Screenplay, Best Cinematography, Best Editing, Best Production Design, Best Musical Score, and Best Sound awards.

The next big winner was Here Comes the Groom, which took home: Third Best Picture, Best Supporting Actor, Best Supporting Actress. Special Jury Prize.

The Best Supporting Actress nod was made special by the fact that the winner was Kaladkaren, a transgender woman. The production of Here Comes the Groom and About Us but Not About Us actor Elijah Canlas also received Special Jury Prizes.

 

THE WINNERS AT THE 2023 SUMMER MMFF WERE:

Best Picture: About Us but Not About Us

Second Best Picture: Love You Long Time

Third Best Picture: Here Comes the Groom

Best Director: Jun Robles Lana, About Us but Not About Us

Best Actor in a Leading Role: Romnick Sarmenta, About Us but Not About Us

Best Actress in a Leading Role: Gladys Reyes, Apag

Best Actor in a Supporting Role: Keempee de Leon, Here Comes the Groom

Best Actress in a Supporting Role: Kaladkaren, Here Comes the Groom

Best Screenplay: Jun Robles Lana, About Us but Not About Us

Best Cinematography: Neil Daza, About Us but Not About Us

Best Editing: Lawrence Ang, About Us but Not About Us

Best Sound: Armand de Guzman, About Us but Not About Us

Best Musical Score: Teresa Barrozo, About Us but Not About Us

Best Original Theme Song: “Paralaya” by Andy Alviz, Apag

Best Production Design: Marxie Maolen Fadul, About Us but Not About Us

Special Jury Prize: Here Comes the Groom and Elijah Canlas