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Belle Corp. says no plans to buy out Melco’s stake in City of Dreams Manila 

BW FILE PHOTO

LISTED firm Belle Corp. said it has no plans to buy out Melco Resorts & Entertainment Ltd.’s stake in the City of Dreams Manila integrated resort in Parañaque City.

“Please be advised that while Belle is not in a position to confirm the accuracy of the statements about a possible exit of Melco from the Philippines, it can confirm that any buyout of Melco’s interests in City of Dreams Manila is not part of Belle’s plans for the immediate future,” Belle said in a regulatory filing on Monday. 

Belle issued the statement in response to a news report suggesting that the company was willing to buy out Melco’s stake in City of Dreams Manila, depending on the price.

Melco, a global developer and operator of integrated resorts, previously said it had retained CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to explore possible strategic alternatives for City of Dreams Manila.

City of Dreams Manila, a luxury integrated casino resort, is leased to Melco’s subsidiary, Melco Resorts Leisure (PHP) Corp., which has an operating agreement with Premium Leisure Corp. (PLC) subsidiary Premium Leisure and Amusement, Inc. PLC is a subsidiary of Belle.

Belle, one of the portfolio investments of Sy-led conglomerate SM Investments Corp., is also the developer of the club, golf facilities, and residential communities of Tagaytay Highlands and Tagaytay Midlands in Tagaytay City. 

On Monday, shares of Belle Corp. fell 0.65% or one centavo to P1.53 apiece. — Revin Mikhael D. Ochave

To reduce poverty and create jobs, 7-8% economic growth is needed

Last week Canada and India released their fourth quarter (Q4) 2024 GDP data. So, the top 15 largest economies in the world have now provided their full year 2024 data (except Brazil and Russia). Extending the list to encompass the top 60 medium and large economies in the world, one sees that the fastest growing economies last year were Vietnam, India, and the Philippines. Kudos to Philippine businesses and workers, and the government economic and infrastructure teams.

The European nations and Japan remain laggards economically. The largest economy of Europe, Germany, has been contracting for the last two years straight, a clear case of deindustrialization. As has Austria too, and Russia’s three neighbors — Finland, Latvia, and Estonia (see Table 1).

Growth of nearly 6% is good, but we need to grow 7-8% yearly if we are to significantly reduce poverty and create more jobs. From 1982 to 2011, China grew by an average of 10.3% per year. From 1992 to 2019, Vietnam grew by an average of 7.1% per year.

Aside from having had a low economic base up to the early 1980s, both China and Vietnam grew fast on the back of electricity generation which was heavily dependent on coal. India and Indonesia did so too. Their big manufacturing capacity, their huge hotels, resorts, and malls, their airports and seaports were all powered mostly from their coal plants which give cheap, reliable, and dependable electricity.

Meanwhile, the Philippines’ coal generation is the smallest among developed and emerging Asian countries except for those that rely more on natural gas like Thailand and Singapore. Even developed and “greenie” Korea and Japan have high coal generation (see Table 2).

I believe that the Philippines can grow by 7-8% per year for a decade — provided we discard growth-braking climate-related regulations and restrictions, plus if we have improvements in rule of law and a drastic reduction in the annual budget deficit and borrowings.

Last week, on Feb. 24, CNN’s Richard Quest interviewed Finance Secretary Ralph G. Recto about trade and investments, asking if the Philippines is in danger of US President Donald Trump’s “protectionist” policies. I liked the practical reply of Secretary Recto.

He said: “Our economy is 70% to 75% domestic driven. Unlike China and Vietnam, or even our neighbors in Southeast Asia, [which are] more export-oriented driven. We earn foreign exchange from OFW remittances. We have a trade deficit when it comes to goods. We have a robust BPO industry… FDIs, hopefully, maybe Apple… Western companies [that] invested in China will probably move also to the Philippines. And we have a new law CREATE MORE, for that purpose… [we are] now working on a free trade agreement with the European Union… [we are] open to a free trade agreement with the United States. And I will bat for a reduction in tariffs on US vehicles.”

Mr. Recto was referring to the Implementing Rules and Regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act or RA 12066 that he signed on Feb. 21 as the Chair of the Fiscal Incentives Review Board (FIRB), along with his FIRB Co-Chair, Trade Secretary Ma. Cristina Aldeguer-Roque.

Last Friday, Feb. 28, the Bureau of the Treasury released the December and hence full year 2024 cash operations report. The budget deficit was P1.51 trillion. But the revenues data is still incomplete, with no breakdown yet for income tax, excise tax, VAT, and other domestic taxes. I think when these are fully accounted, the deficit can go down to probably P1.3 trillion only.

The budget deficits in previous years were: P1.37 trillion in 2020, P1.67 trillion in 2021, P1.61 trillion in 2022, and P1.51 trillion in 2023.

Meanwhile, financing or net borrowing is declining: P2.50 trillion in 2020, P2.25 trillion in 2021, P1.97 trillion in 2022, P2.07 trillion in 2023, and P1.31 trillion in 2024.

Budget Secretary Amenah F. Pangandaman, in a press release, hailed that the budget deficit for 2024 has “gone down to 5.7% of GDP, better than expected… the lowest rate recorded since the pandemic in 2020… a marked improvement compared to the 6.2% deficit in 2023… also well within the fiscal outlook of the Development Budget Coordination Committee (DBCC) at our last meeting.”

While I share Ms. Pangandaman’s exuberance, I still wish that spending, the deficit, and borrowing decline significantly. The interest payments for our public debt in 2024 was P763 billion, or an average of P2.1 billion per day. This is huge and wasteful.

Also last week, on Feb. 26, I attended the BusinessWorld Stock Market Outlook 2025, held at the Dusit Hotel in Makati. The finance speakers expressed an overall business optimism for the country this year, coming from 2024’s “high-interest rate environment,” the “tug of war between low-risk premiums and elevated bond yields,” “foreign fund outflows of $442 million or three times higher than 2023,” and saying that “PSEi still significantly undervalued.”

The CREATE MORE law and its IRR, especially the corporate income tax cut from 25% to 20% to start this year, should help attract those foreign equities and FDIs back to Philippine soil and companies.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Philippines improves in Democracy Index

The Philippines went up two places to 51st out of 167 countries and territories in the Democracy Index 2024 by London-based Economist Intelligence Unit. Despite the improvement in ranking, the country had an overall score of 6.63, the lowest in three years or since 6.62 in 2021 but still higher than the Asia and Australasia Average of 5.31 and Global Average of 5.17. The country remained to be classified as a “flawed democracy.”

Philippines improves in Democracy Index

Micro-D, Novare Technologies rebrand under NOVARE identity

TECHNOLOGY company Micro-D International, Inc. and its software development subsidiary Novare Technologies, Inc. have rebranded as NOVARE as they seek to become a leading tech player in the Philippines and across Southeast Asia.

The rebranding is expected to help NOVARE focus on delivering purposeful technology in the Philippines and neighboring countries amid advancements in application programming interface (API) technology, cloud computing, and big data, the company said in a statement on Monday.

“The rebranding is a major milestone as digital transformation initiatives accelerate in the Philippines and ASEAN,” said Victor Silvino, chief executive officer of NOVARE.

“With NOVARE, we hope to make a difference in that fluid transformation space. We will lead with conscience as we pioneer technologies that propel renewal and sustainable progress.”

The rebranded company’s client-focused approach includes comprehensive modernization, customer experience enhancements, and data-driven insights to help users navigate a tech-driven future, it said.

Meanwhile, NOVARE shareholders acquired a 100% stake in Appistoki, a boutique Salesforce consulting platform with clients in the Philippines, the United States, Singapore, Indonesia, Ireland, and India.

“This strategic acquisition forms the NOVARE Group of companies and will enhance NOVARE’s technological capabilities while strengthening its relationships with key industry players in the Philippines, particularly among primary Salesforce users,” it said.

With its rebranding and acquisition, stakeholders and customers can anticipate significant developments from the NOVARE Group, it said.

“With renewed energy and purpose, the NOVARE Group is poised to redefine digital transformation and empower organizations in an increasingly interconnected and digital world, solidifying its status as a catalyst for innovation and sustainable progress.” — Beatriz Marie D. Cruz

Sony’s Madame Web snags worst picture Razzie Award

LOS ANGELES — Madame Web, an American superhero film featuring the Marvel Comics character of the same name, nabbed the most wins at the 45th Razzie Awards on Friday, including worst picture, actress, and screenplay.

The Razzie Awards are the annual Oscar spoof that spotlights Hollywood’s worst performances.

Seinfeld actor Jerry Seinfeld’s Netflix satire about the cereal industry, Unfrosted, scored two wins for worst actor for Mr. Seinfeld and worst supporting actress for Amy Schumer.

Tying with Unfrosted, Joker: Folie a Deux and Megalopolis were both crowned with two wins.

Joker: Folie a Deux won for worst prequel, sequel, remake, or rip-off and screen combo, while Megalopolis earned esteemed filmmaker Francis Ford Coppola worst director and Jon Voight worst supporting actor.

Mr. Coppola posted a response on Friday to the film’s Razzie wins.

“I am thrilled to accept the Razzie award in so many important categories for @megalopolisfilm, and for the distinctive honor of being nominated as the worst director, worst screenplay, and worst picture at a time when so few have the courage to go against the prevailing trends of contemporary moviemaking!” he wrote in an Instagram post.

“In this wreck of a world today, where ART is given scores as if it were professional wrestling, I chose to NOT follow the gutless rules laid down by an industry so terrified of risk that despite the enormous pool of young talent at its disposal, may not create pictures that will be relevant and alive 50 years from now,” Mr. Coppola added.

The Razzie Redeemer Award, bestowed on a past contender who has “gone on to better things” since being nominated for a Razzie, went to The Last Showgirl, which stars Pamela Anderson.

More than 1,100 Razzie members from across the United States and about two dozen other countries vote on the awards, according to the Razzie website. — Reuters

PSBank profit up 15%

PHILSTAR FILE PHOTO

PHILIPPINE SAVINGS Bank’s (PSBank) net income rose by 15% year on year to a record high in 2024, backed by strong loan growth and better asset quality.

The thrift banking arm of Metropolitan Bank & Trust Co. posted a net profit of P5.21 billion in 2024, up from P4.53 billion in 2023.

This translated to a return on equity of 12.4%, up from 11.7% the year prior.

“The robust double-digit growth in loans, coupled with significant improvements in asset quality, fueled the bank’s outstanding financial performance,” PSBank said.

“Our record-high performance reflects our commitment to sustainable growth and quality, and the unwavering trust of our clients. Looking ahead, we expect to capitalize on the growing and evolving needs of consumers,” PSBank President Jose Vicente L. Alde said.

The bank’s financial statement was unavailable as of press time.

PSBank’s core revenues, which include net interest income, service fees and commissions, went up by 4% year on year to P14.11 billion.

Meanwhile, operating expenses increased by 4%.

“Increase in operating expenses remained under control… as the bank pursued its cost optimization strategies,” PSBank said.

Gross loans expanded by 15% year on year to P144 billion at end-2024 amid strong demand from both the consumer and commercial segments.

“Despite the expansion in loan portfolio, the bank was able to keep its gross nonperforming loans ratio in check at 2.6%, better than 3.3% a year ago,” it said.

On the funding side, deposits with the bank totaled P165 billion.

The bank’s assets stood at P216 billion at end-2024.

Capital funds rose by 10% to P44 billion. Its capital adequacy and common equity Tier 1 ratios were at 23.6% and 22.5%, respectively.

PSBank shares slipped by five centavos or 0.09% to close at P58.60 on Monday. — Aaron Michael C. Sy

Dok Eddie Dorotan: Transforming local politics

Our friend Dok Eddie Dorotan is running for mayor of Irosin, Sorsogon.

It was a last-minute decision on his part. He was a reluctant candidate who could not bear the thought of having a political dynasty lording it over his hometown and province. And sadly, money defines Philippine elections and often predicts election outcomes.

Dok Eddie thus faces an uphill battle. He does not have the financial resources to fight such an opponent. How would he compensate for this gross disadvantage in resources?

Dok Eddie has integrity and honesty, competence and merit, compassion and kindness (radikal na pagmamahal or radical love), commitment and service. His sterling performance in delivering essential services and improving human development outcomes as a two-term mayor of Irosin (1992-1998) speaks for itself. His award-winning programs transformed a poor town into a progressive town, from a 5th to 2nd class municipality.

The gains of Irosin have eroded since Dok Eddie’s departure from elected office. Now, his hometown and the whole of Sorsogon are seeing a decline in living standards and a rise in poverty.

After his stint as an elected official, Dok Eddie was invited to direct Galing Pook Foundation, a non-government institution that provides support and resources for local government units (LGUs). This was in recognition of his accomplishments as mayor of Irosin. He steered Galing Pook towards enabling and empowering LGUs to become exemplars of good governance, human development, sustainability, and inclusiveness.

He is likewise a fellow of Action for Economic Reforms, a policy-oriented group advocating economic and political transformation.

Dok Eddie, as a civil society leader, has made outstanding contributions to the reform effort like enabling universal healthcare, putting in place practical measures to protect people from COVID-19, and promoting data-driven development at the local level. Providing primary healthcare is his passion and expertise.

He belongs to the Class of ’81 of the University of the Philippines College of Medicine (UPCM). A neuroanatomy professor casually described the UPCM Class ’81 as simple, groovy, country doctors — half of the class stayed on to serve the country, and not a few served the far-flung areas in Mindanao and the Cordilleras. Dok Eddie perhaps was the most accomplished of the simple groovy country doctors. He served in his hometown, living on the chickens and eggs he received as a professional fee. But most of the time, he practiced gratis.

He thus won the hearts of the people of Irosin and became town mayor.

In short, Dok Eddie has done so much to improve the lives of our people and to make a better society. He lives by the values that his alma mater ingrained in him: Being a man for others, serving the people, upholding honor and excellence.

At his age, he can retire and at the same time remain active in civic engagement. In fact, he has found time for meditation, painting, traveling, enjoying the beach, rearing dogs, bonding every day with his wife Oyen, and loving the company of apos (grandchildren).

But some concerned friends ask: Why will Dok Eddie run again? And why court further troubles at a time when his family is deeply grieving from the death of two brothers late last year?

Dok Eddie himself has had angioplasties. The truth of the matter is he fared very well in his last stress test, reaching 110% of his maximal heart rate without feeling chest pain or shortness of breath. He is still very young at heart and full of energy.

Is he tilting at windmills? He is a visionary and at the same time is practical. There is vision in his running. He is fully aware that his role is transitional. Others, especially the younger generations whom Dok Eddie can inspire, will continue the pursuit of his reforms and vision of good governance and a better Irosin.

His transitional role is to rebuild, piece by piece, good governance in Irosin, which in turn can motivate other local governments all over the country to follow suit. The scaling up and consolidation of pockets of good local governance can lead to national transformation.

Worth quoting is a passage from Manny V. Pangilinan’s speech at the homecoming of Ateneo graduates of economics in November 2024:

“A society grows great when old men plant trees whose shade they know they shall never sit in.”

In the same vein, Mr. Pangilinan said “We are stewards of the future…. We have the responsibility to leave a better world for the next generation.”

Those words exactly capture Dok Eddie’s current mission to attain an Irosin and a Philippines liberated from debasing poverty, where our people live long and healthy lives, where everyone’s quality of life is high, where everyone’s dignity is observed. He exemplifies the steward and a transformational leader who is rooted in the community.

Complementing his vision is his pragmatism — he knows that reforms take long to solidify. To return to Mr. Pangilinan’s metaphor, what matters in the here and now is planting the good seeds. The good harvest will be reaped.

Dok Eddie’s pragmatism tells him that the current political climate makes it hard for reformers to win. But pragmatism does not mean running away from a fight. Pragmatism is about being aware of the problems and obstacles but likewise knowing how to remove the roadblocks to advance.

The main roadblock is financing. He does not have deep pockets. But he can fight effectively with a minimum necessary amount to finance the campaign. He needs the minimum necessary to feed his volunteers, maintain office operations, gather information, and conduct surveys and Focus Group Discussions, sustain information and media work, and the like.

He will need all the support he can get. Any kind of assistance will boost his campaign. Whatever support — like contributions and volunteer activities — will help realize the hope of (and we paraphrase Dok Eddie) implementing universal healthcare, having access to quality education at all levels, uplifting livelihoods, having access to affordable and nutritious food, protecting our once beautiful mountains, rivers, and seas, and transforming our politics.

Making this hope real is not only for the people of Irosin and Sorsogon. Ultimately it will benefit all of us.

 

The co-authors are long-time friends of Dok Eddie Dorotan. Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms while Jose Noel C. De La Paz is senior executive of Metro Pacific Health and board member of most of its 27 hospitals across the country. Dr. Rogelio V. Tangco is a cardiologist, and Romeo A. Dalandan, Jr. is a trustee of the Ateneo Association and former director of the Ateneo Alumni Relations Office. For details, e-mail Romeo Dalandan, Jr. at radalandan@gmail.com

Manufacturing Purchasing Managers’ Index (PMI) of select ASEAN economies, February 2025

PHILIPPINE MANUFACTURING activity in February expanded at its slowest pace in 11 months amid softer growth in orders and output, data from S&P Global showed. Read the full story.

Manufacturing Purchasing Managers’ Index (PMI) of select ASEAN economies, February 2025

PSE income rose 57.5% to P1.21 billion in 2024

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINE Stock Exchange, Inc. (PSE) grew its 2024 net income by 57.5% to P1.21 billion from P766.31 million in 2023, following its acquisition of the Philippine Dealing System Holdings Corp. (PDS).

Operating revenue declined by 0.23% to P1.398 billion from P1.401 billion the previous year, PSE said in an e-mail statement on Monday.

PSE increased its other income by 166% to P836.32 million, driven by a P462.86-million gain on the remeasurement of its previously held equity interest, arising from the consolidation of its additional stake in PDS.

Expenses rose by 14.9% to P861.67 million due to higher depreciation costs and maintenance fees for trading, clearing, and settlement systems.

“The three-year strategic plan we laid out last year included the acquisition of PDS, which should provide a significant boost to our market development initiatives and bottom line,” PSE President and Chief Executive Officer Ramon S. Monzon said.

In December last year, the market operator announced its acquisition of a 61.92% stake in PDS for P2.32 billion as part of efforts to consolidate the local capital markets. PSE will purchase 3.87 million PDS shares at P600 apiece.

PSE also previously signed an agreement to acquire the 4% stake in PDS held by AIA Philippines Life and General Insurance Co., Inc. Once all closing conditions are met, this move will increase PSE’s ownership in PDS to 88.44%.

As of Feb. 24, PSE’s stake in PDS stood at 78.33%, up from its original equity interest of 20.98%.

“Our post-acquisition objectives will focus on the seamless integration of both entities to fully realize synergies, efficiencies, and risk management benefits,” Mr. Monzon said.

“We will also continue to pursue and complete the initiatives that PDS has already started in the fixed-income and depository businesses to further expand investor participation and protection in our market,” he added.

On Monday, PSE shares rose by 2.14% or P3.90 to P185.90 apiece. — Revin Mikhael D. Ochave

Singer Charli xcx wins top prizes at BRIT Awards

LONDON — Singer Charli xcx, whose album Brat inspired a cultural phenomenon last summer, was the big winner at the BRIT Awards, Britain’s pop music honors, in London on Saturday, picking up five prizes.

Brat, which inspired fans to film themselves dancing to its tracks and whose lime green cover look was adopted by US presidential hopeful Kamala Harris’ campaign on social media after the singer referenced her in a post, won the coveted album of the year category.

Charli xcx, who had led nominations, was also named artist of the year and best dance act. Her single “Guess,” featuring Billie Eilish, won song of the year beating tracks including the Beatles’ “Now and Then.”

The 32-year-old pop star had won her first BRIT, songwriter of the year, earlier in the week.

“I’ve always felt like an outsider in the industry but particularly in the British music industry and so it feels really nice to be recognized on this album,” she said as she received the album of the year award.

“I would just like to share this with all artists who have ever felt that they need to compromise to be recognized and to have their moment in the sun because I think I’m living proof that maybe it takes a long time, but… you don’t need to compromise your vision.”

The singer released her debut studio album in 2013. Brat was her sixth and she said she would “probably never make a record like this again.”

“It’s so in my instinct to just like not do the same thing twice… I will probably reject it completely and do something completely different,” she said.

Jazz quintet Ezra Collective was named group of the year.

“This moment right here is because of the great youth clubs and great teachers and the great schools that support young people playing music,” drummer Femi Koleoso said in one of several of the night’s acceptance speeches that called for more support for young musicians and grassroots venues.

US singer Chappell Roan won international artist of the year while her track “Good Luck, Babe!” won international song of the year.

“Espresso” singer Sabrina Carpenter was named as the first international recipient of the global success award, which recognizes artists with “phenomenal global sales,” following in the footsteps of One Direction, Adele, Ed Sheeran and Sam Smith.

The ceremony also featured a tribute dedicated to late One Direction singer Liam Payne, who died in October after falling from a third-floor hotel room balcony in Buenos Aires, shocking fans of the boy band, one of the most popular of all time. — Reuters

Okada Manila earns Forbes VERIFIED Responsible Hospitality badge

OKADA MANILA on Monday said it is the Philippines’ first integrated resort to receive the Forbes Travel Guide VERIFIED Responsible Hospitality badge.

The Forbes Travel Guide VERIFIED Responsible Hospitality badge is a third-party certification that sets the global benchmark for environmentally conscious hospitality. 

Developed in collaboration with sustainability partner Hervé Houdré, the Responsible Hospitality badge assures guests and travel advisors that certified hotels adhere to responsible and sustainable operational practices. 

“This recognition affirms our continuous efforts to create a responsible and sustainable hospitality model that prioritizes people and the planet,” Okada Manila Vice-President for Hotel Operations Rob Scott said in a statement on Monday. 

The integrated resort highlighted its sustainability initiative, the Okada Green Heart program, which incorporates eco-friendly innovations, resource conservation, and waste reduction across all operations to minimize its environmental footprint. 

“The Forbes VERIFIED Responsible Hospitality badge is more than just an honor — it reflects our deep-rooted belief that premium hospitality must go hand in hand with environmental responsibility,” Okada Manila President and Chief Operating Officer Byron Yip said. — Beatriz Marie D. Cruz

Coin deposit machine collections reach P1.31B

BSP.GOV.PH

THE BANGKO SENTRAL ng Pilipinas’ (BSP) coin deposit machines have collected P1.31 billion worth of currency as of Feb. 15.

This was 5.6% higher than the P1.24 billion worth of coins collected as of Jan. 15, the central bank said in a social media post.

There were 299,457 transactions made via the machines involving 326.2 million coins.

In June 2023, the BSP and its retail partners launched the deposit machines to promote coin recirculation.

The project aims to address artificial coin shortage in the financial system and help ensure that the public uses only fit and legal tender.

All denominations of the BSP Coin Series and New Generation Currency Coins Series are accepted by the machines.

However, unfit, mutilated and demonetized coins, foreign currency and foreign objects such as tokens, buttons and coins taped together get rejected by the machines.

The value of coins deposited in the machines may be credited to a person’s e-wallet or bank account or converted into shopping vouchers.

Users do not need to provide any identification documents to use the coin deposit machines.

There are currently 25 deposit machines available in the Greater Manila Area. They can be found in select retail establishments of the SM Store, Robinsons Supermarket and Festival Mall.

The BSP has said it plans to install 25 more coin deposit machine units nationwide this year to boost accessibility. — Luisa Maria Jacinta C. Jocson