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Clark airport operator expects passenger volume to hit 3.4M

CLARK INTERNATIONAL AIRPORT

LUZON International Premiere Airport Development (LIPAD) Corp., the operator of Clark International Airport, has revised its passenger volume projection upward for 2025, citing anticipated traffic growth after the transfer of turboprop operations from Ninoy Aquino International Airport (NAIA).

“We have some indication that there will be a shift when we revise the projections. Initially, our target for passenger volume this year was three million, but with the transfer of turboprops, we are now looking at 3.3 million to 3.4 million,” LIPAD Chief Executive Officer Noel F. Manankil told reporters on Thursday.

LIPAD is composed of Filinvest Development Corp., JG Summit Holdings, Inc., Philippine Airport Ground Support Services, Inc., and Changi Airports Philippines (I) Pte. Ltd., a wholly owned subsidiary of Changi Airports International.

The Department of Transportation (DoTr), through the Manila Slot Coordination Committee, recently issued a resolution mandating the relocation of turboprop operations from NAIA.

“We’re observing key triggers related to traffic volume, which guide us in decisions about capacity building,” Mr. Manankil said.

In 2024, Clark International Airport reported a total of 2.4 million passengers, marking a 20% increase from its 2023 passenger count.

LIPAD attributed the growth to international passengers, who accounted for 65% of the total volume, while domestic passengers comprised 35%.

Mr. Manankil said LIPAD is further evaluating capacity expansion, including potential airport fit-outs.

“If we reach a certain traffic volume threshold, it will signal the need to further increase capacity,” Mr. Manankil said.

Budget carrier Cebu Pacific will begin the gradual relocation of its turboprop operations on March 30.

By October next year, all turboprop aircraft operating at NAIA are expected to be relocated to other airports, Mr. Manankil said.

In response, LIPAD is assessing the possibility of deploying additional capacity at Clark, which currently has a built capacity of four million passengers annually.

Mr. Manankil noted that the airport’s capacity can be scaled up to eight million passengers through fit-outs.

“We are closely monitoring the turboprop situation. If sustained, we will identify the triggers for further capacity expansion,” he said.

During the peak season, Clark International Airport recorded an average of 10,000 to 12,000 passengers per day.

Currently, the daily passenger average has stabilized at 9,500. Mr. Manankil added that LIPAD expects an additional 700 daily passengers once turboprop operations are fully transitioned.

LIPAD also anticipates weekly flight movements at Clark Airport to increase to 269 from the current 237 by March 30. — Ashley Erika O. Jose

RCR says income rose 38% to P6.13 billion in 2024

Robinsons Summit Center lobby

GOKONGWEI-LED RL Commercial REIT, Inc. (RCR) reported a 38% increase in its unaudited net income for 2024, reaching P6.13 billion, driven by recent asset acquisitions and steady occupancy rates.

The company’s occupancy rates remained steady at 96%, RCR said in a regulatory filing on Thursday. 

“The infusion of the 13 assets, combined with the consistent declaration of increasing dividends quarter-on-quarter, reinforces our dedication and commitment to growing the company,” RCR President and Chief Executive Officer Jericho P. Go said. 

“RCR continues to seek potential assets for acquisition, aside from those of the sponsor,” he added.

RCR is the real estate investment trust of Robinsons Land Corp. (RLC).

In July of last year, RLC completed a transaction infusing 13 commercial assets worth P33.92 billion into RCR under a property-for-share swap deal.

The deal involved the infusion of 13 commercial assets totaling 347,329 square meters (sq.m.) of gross leasable area (GLA) into RCR in exchange for RLC’s subscription to 4.99 billion RCR primary common shares at P6.80 apiece.

As of 2024, RCR has 828,000 sq.m. of GLA, comprising 539,000 sq.m. of office spaces and 289,000 sq.m. of mall spaces.

The company owns 29 assets in total, with 17 office assets and 12 mall assets, located across 18 cities nationwide.

RCR noted that sponsor RLC owns over 1 million sq.m. of GLA, including more than 250,000 sq.m. of office GLA, more than 200,000 sq.m. of logistics GLA, and approximately 4,000 hotel room keys that may be infused into RCR in the future.

RCR has a market capitalization of P93.34 billion based on a share price of P5.94 per share as of the end of January.

Meanwhile, RCR announced that its board approved the declaration of its fourth-quarter 2024 regular cash dividend of P0.1010 per outstanding common share.

The dividends will be payable on Feb. 28 to stockholders on record as of Feb. 20.

On Thursday, RCR shares fell by 0.17% or one centavo to P6.04 per share, while RLC stocks dropped by 0.8% or ten centavos to P12.40 apiece. — Revin Mikhael D. Ochave

Alsons Power gears up for major solar power launch in Mindanao

ALSONS POWER Group, the power business unit of the Alcantara Group, is preparing to roll out its energy projects, including its first large-scale solar power project in Mindanao.

“As Alsons Power enters 2025, the company is poised for growth with the simultaneous implementation of multiple projects, including the launch of its first large-scale solar power project in Mindanao,” the company said in a media release on Thursday.

“With a focus on renewable energy, enhanced operational systems, and collaboration across the organization and its parent company — the Alcantara Group — Alsons Power is well-placed to meet its goals and contribute to addressing the rising demand for energy in the country,” it added.

Alsons Power said it plans to launch its first large-scale solar power plant in the first half of 2025.

“We are rapidly advancing our solar power initiatives and remain committed to strengthening our project pipeline,” said Alsons Power Chief Executive Officer Antonio Miguel B. Alcantara.

Adding to the pipeline of projects are the development of the 37.8-megawatt (MW) Sindangan-Zambo River Power Plant and the 53-MW Bago Hydro Power Plant, both slated for construction this year.

For conventional plants, the company said that the first phase of its 95.2-MW Bohol In-Island Diesel Power Station, located in the municipality of Ubay, is nearing completion, marking its strategic expansion outside Mindanao.

“This project will capitalize on opportunities in the Wholesale Electricity Spot Market and the ancillary reserve market over the next three to five years, until additional plants are developed to address demand-supply gaps in the region,” Mr. Alcantara said.

In 2024, the company completed its 14.5-MW Siguil Hydro Power Plant in Maasim, Sarangani—its first foray into renewable energy.

Moving forward, Alsons Power said it is focusing on “significantly expanding its market share” in the Retail Competition and Open Access market, a government program that allows customers to choose their electricity supplier.

“We are committed to strengthening our market presence and expanding our power asset portfolio,” Mr. Alcantara said.

Alsons Power, which claims to be Mindanao’s first independent power producer, has a portfolio of four power plants with a combined capacity of 468 MW. — Sheldeen Joy Talavera

One News reveals new morning shows

THE HOSTS of One News’ new morning shows: (L-R) Gretchen Ho, Cathy Yang, Angela Castro, and Angelo Castro.

Three shows focus on news and analysis

THREE news analysis morning programs will start airing on One News on Cignal TV next week: Morning Matters with Gretchen Ho, Money Talks with Cathy Yang, and News and Views with Angelo and Angela Castro. The new lineup means to deliver relevant news, insightful analysis, and engaging discussion, according to the hosts for each show.

Starting Feb. 10, viewers can tune in to these programs every morning from Monday to Friday. 

Morning Matters with Gretchen Ho kicks off the daily weekday lineup at 8 a.m. Ms. Ho will bring an energetic approach to morning television, covering the latest top headlines and trending topics and provide insights from key experts.

“What I like about morning news is that it is a mix of lightness with something serious,” she told the press at the launch of the three programs on Feb. 4.

Morning Matters will have a 15-minute news grid. Then, the spots dedicated to interviews, titled “Context,” reflect the goal to “start the day strong” in a fast-paced world that often skips context.

“People nowadays do engage with the news, but on social media. We have to dig deeper than an ordinary vlogger would, and break through the noise,” Ms. Ho said about their role as trained journalists.

“This actually comes at a very critical time —  the launch of the campaign period for the elections,” added Cathy Yang, an award-winning journalist and the host of Money Talks. “One cannot ignore politics, even in business. Magkaugnayan ’yan (They’re related),” she said.

The goal of her program is to “raise the financial literacy of people,” be it in earning, spending, or investing. It will air at 9:30 a.m.

“Think of it as your financial literacy one-stop shop, where we interview the best in business,” Ms. Yang added.

The data-driven program will be divided into four sections: “Deep Dive,” which tackles economic news such as Gross Domestic Product and inflation; “What’s Up World,” which brings in market trends of a global scale; “The Briefing,” which features experts who will explain the movements of the peso and stocks; and “Movers,” which serves as a section for thought leaders to share tips.

Finally, News and Views with Angelo and Angela Castro closes out weekday mornings for an hour starting at 10 a.m. In it, veteran journalists and quick-witted husband and wife Angelo and Angela Castro offer in-depth discussions about the day’s most important news stories.

“We try to present the news in such a way that you can see a couple eating breakfast with a newspaper and a cup of coffee — and there’s always a difference of opinion,” said Mr. Castro.

For the couple, their opposing views and natural banter can help audiences “flesh out” the news cycle by seeing the facts as well as the opinions that come into play.

Mrs. Castro said: “Gone are the days of mechanical news. We have to make it a point to include viewers in the conversation.”

Morning Matters with Gretchen Ho (8 to 9 a.m.), Money Talks with Cathy Yang (9:30 to 10 a.m.), and News and Views with Angelo and Angela Castro (10 to 11 a.m.) will air on Mondays to Fridays on One News on Cignal TV starting Feb. 10. — Brontë H. Lacsamana

URC names Anna David as president of BCF segment

ANNA MILAGROS D. DAVID

UNIVERSAL ROBINA CORP. (URC) has appointed Anna Milagros “Mian” D. David as the first president of its branded consumer foods (BCF) segment.

URC’s BCF business includes snacks, candies, chocolates, canned beans, tea, coffee, biscuits, and noodles.

Prior to her appointment, Ms. David served as managing director for URC International and chief marketing officer, the company said in an e-mail statement on Thursday.

“Over the last two years, she led URC International, driving incremental revenue and achieving double-digit operating margins,” URC added.

Ms. David joined URC in 2018 as vice president for the beverages segment, later transitioning to oversee the snack foods business.

She has 17 years of experience in sales and marketing with one of the largest multinational companies, holding both local and global roles prior to joining URC.

“We aim to drive topline growth and increase market share by staying true to our mission: to delight the people we serve,” Ms. David said.

URC also announced that it would allocate over P8 billion to its capital expenditure budget this year, prioritizing “organic capacity infrastructure growth.”

On Thursday, URC shares rose by 1.38% or 85 centavos to P62.50 apiece. — Revin Mikhael D. Ochave

The fountainhead

ADRIAN BRODY in a scene from The Brutalist.

Movie Review
The Brutalist
Directed by Brady Corbet

BRADY CORBET’S The Brutalist is his three-and-a-half hour Vistavision biopic on a fictional Hungarian-born Jewish architect who emigrates to the United States for a fresh start on life — use the word “biopic” loosely because Laszlo Toth is nominally based on Hungarian architect Marcel Breuer, only Breuer wasn’t a Holocaust survivor, didn’t scrabble too hard for his living, and didn’t fanatically insist on having every detail of his plans carried out exactly. Corbet needed spicier material to work on, hence the changes.

The film is about capitalism, antisemitism, racism (kind of), and the immigrant experience in America; it’s big in almost every sense of the word, down to the expansive 70 mm frame — an extraordinary achievement considering this was shot for a slim $9 million.

I suppose it’s perfectly permissible to pick and choose details from a real-life figure (in this case Breuer) to structure your fictional narrative; so many actual biopics have played fast and loose with historical fact, with varying results. I also suppose Corbet, co-writing with his partner fellow filmmaker Mona Fastvold, can be forgiven for recycling practically every cliché on immigrants, antisemitism, and artist-investor relations known to cinema — this is old-fashioned meat-and-potatoes storytelling, meant to evoke the ambiance of a previous age, not ride just ahead of fashionable trends.

I do have a problem with the fact that despite the title and all the critics citing the protagonist’s kind of architecture that there isn’t really a discussion of what Brutalism is, how it compares to the established style of the time, and why it’s so radical; no real discussion of why said architect’s designs are noteworthy except maybe at the end where we’re given a huge exposition dump at the 1980 Venice Biennale. And no real talk of fellow architects — Brutalism didn’t happen in a vacuum — but I suppose Corbet needs to keep his vision of a lone revolutionary intact.

Maybe the biggest problem I have with the film is inseparable from the nature of the movement it’s — championing? Exploring? Using as a prop? Brutalism emerged in the 1950s as a reaction against the neoclassicism and art deco movements in the 1930s and ’40s. The style makes it a point to use exposed raw materials (taking cue from the French phrase “beton brut” or “raw concrete”) and emphasizes functional and structural forms without any decorative designs.

The challenge to Brutalism is that with exposed building material and no decorations, it’s hard to hide flaws in design or execution — either you get everything right or your air pockets and sloppy joins and unnecessary corners are all there for everyone to see. Likewise with the film — Corbet plays into old tropes about the classic immigrant’s tale, throwing in the classic tortured relationship between an auteur — sorry, architect — and his sponsor, and if there’s anything lacking or clumsy in the telling of the tale the knots and gaps are all the more prominent.

Hence: the lack of specificity when it comes to the characters’ lives. Lazlo Toth (Adrien Brody), his osteoporotic wife Erzsebet (Felicity Jones), their niece Zsofia (Raffey Cassidy) all survived the camps, but don’t really talk about their experience there. I get that there was trauma involved — Zsofia lost the power of speech because of this — but certainly there can be some way, no matter how indirect, to convey how they feel about what happened, maybe shushing each other when some verboten detail is unintentionally mentioned. Here you get the sense that their memories of the camps are hermetically sealed off, instead of something that simmers underneath, threatening to burst out at any moment. The past here is safely past — there’s no sense that it really haunts them, beyond Zsofia’s silence, and, perhaps, an extraordinarily erotic scene where Erzsebet whispers urgently in her unresponsive husband’s ear, practically begging for sex while she reaches into his pants to grip his phallus (don’t know about you but if Felicity Jones breathed into my ear like that I’d certainly respond — I guess Adrien Brody deserves an acting award after all).

Actually, I can’t quite buy Toth’s struggles. A Bauhaus graduate who has done major commissioned works can’t find a job in Philadelphia? There would have been a network of Bauhaus graduates all over the world —  couldn’t he contact any of them? He ends up working in a furniture store, of all places, then shoveling coal — shades of Gary Cooper breaking rocks in a quarry.

Enter Harrison Lee Van Buren (Guy Pearce), your standard-issue wealthy capitalist. Van Buren is obscenely rich and claims to enjoy “intellectually stimulating” conversations but when confronted by real talent and innovation — as when his son Harry (Joe Alwyn) commissions Toth to renovate the Van Buren home library behind his father’s back — the industrialist yells that Toth ruined his private sanctuary and throws him out. It’s only years later after several news articles and complimentary photo spreads hold up Toth’s remodeling as an example of next-generation design that Van Buren reaches out to Toth and apologizes; wouldn’t do to keep the man ostracized when the press obviously admires his work.

Again Corbet hits all the requisite notes without really giving them a fresh spin; Pearce’s rich jerk is appropriately loud, Brody’s architect appropriately respectful, Alwyn’s Harry expectedly slimy (he refuses to pay for the remodeling — Harrison ends up paying Toth himself — later drops a few antisemitic remarks, and apparently has an eye for Zsofia). Brody’s Toth proves to be pigheaded and abrasive when the Van Burens try to cut a few corners by changing his design (You wonder why Harrison’s such a penny pincher when his estate is so opulent, and every other weekend seems to be throwing a party). Toth’s real-life model Beuer was more flexible and more diplomatic about arguing his case — but no, the drama has to be stark, with little nuance (throw in a little heroin addiction to give the otherwise martyrlike hero a visible flaw, and an African-American best friend named Gordon [Isaach de Bankole] for a visible virtue).

Again, the challenge with Brutalist architecture that echoes the challenge this film isn’t quite meeting: with an emphasis on function and structure there’s not a lot of ways your design can go, and the danger is a plainness that falls into banality, even boredom.

Then something startling does happen (skip the rest of this paragraph if you plan to see the film): seeking Carrera marble for the massive gym/theater/chapel Toth is building for Harrison, the two travel to the Carrera quarry to negotiate purchase. There’s a party thrown for the guests and Toth wanders off to shoot some heroin; a drunken Harrison finds him on the ground flying high; the industrialist lowers himself behind Toth and sexually assaults him, calling him “weak” and a “leech” to his ear. And I get that scene — I appreciate how Corbet had to go there, to make the industrialist rapacious in every sense of the word (adds to the unsettling nature of the assault that it echoes the earlier scene of Toth’s wife also whispering in his ear).

What I don’t quite get is the scene soon after, where a righteous Erzsebet walks up to the Van Buren estate and flings the man’s crime to his face in front of dinner guests — that hit me wrong, maybe because I can’t see what Erzsebet thought they might gain from it, maybe because neither of them discussed what happened or how they felt about it beforehand, beyond Erzsebet mentioning she knows everything, from what he had told her (they’d been shooting heroin previously). All that trouble, and she just possibly cost her husband his job? The leap from knowledge to consequent act (“He’s a rapist!” complete with accusing finger) smacks of the worst Filipino melodramas, where the scene is forced on us because it’s time to have a scene (after all we’re pushing to the three-hour mark), not because we’re prepared to the point that the scene feels inevitable.

Oh, there are good things to the film — Jones gives the single best (if underwritten) performance, Pearce is amusingly loud, Bankole quietly persuasive as the Noble Token Black Man Who Loyally Stays by Toth’s Side Till Unaccountably Dropped. Brody I thought gave a subtler performance in Roman Polanski’s The Pianist (and the much underrated Hollywoodland) but does well enough here.

The music (by Daniel Blumberg) is percussive, somehow metallic, the widescreen cinematography (by Lol Crawley) appropriately monumental, more big than imaginative except for the opening sequence where the camera flips the Statue of Liberty upside-down — a nicely disorienting image suggesting how all the promises of America will be upended and subverted.

The remodeled library is nicely minimalist; the chair Toth conceives for his furniture store cousin Attila (Alessandro Nivola) is familiar if one has seen Breuer’s designs, but Corbet manages to convey a sense of how radical it might look in a store window to 1950 eyes. The Van Buren community center, aside from the design of the cross created by the sun crossing the sky (an idea I suspect was inspired by Breuer’s St. John’s Abbey Church in Collegeville, Minnesota) looks disappointingly blocky and plain — Breuer’s actual church seems to soar into the sky while Toth’s just squats there like a molehill atop a mountain (random question: what community center sits in the middle of nowhere miles from the nearest community?); I’d expect a little more from a supposed masterwork.

Corbet does seem to square things away when Zsofia — who has somehow regained her ability to speak — talks at a major retrospective of Toth’s career explaining the significance of that forbidding blockiness, giving us a final little tidbit suggesting the possibilities of art, and how it can help us transcend the miserable circumstances of our lives — now we understand Toth’s ferocious insistence throughout construction that the skylight should extend to a specified length, not a foot shorter. Not an especially clever twist, but satisfying enough.

Peso weakens anew vs dollar on cautious Fed

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PESO weakened anew against the dollar on Thursday on cautious remarks from US Federal Reserve officials amid policy uncertainty in the world’s largest economy.

The local unit closed at P58.18 per dollar on Thursday, weakening by 8.5 centavos from its P58.095 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session stronger at P57.92 against the dollar. It rose to as high as P57.88 but failed to hold on to its gains, closing near its intraday low of P58.199 versus the greenback.

Dollars exchanged went down to $1.52 billion on Thursday from $1.82 billion on Wednesday.

The peso declined against the dollar following cautious signals from Fed officials, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Federal Reserve officials on Wednesday pointed to the large policy uncertainty around tariffs and other issues arising from the early days of President Donald J. Trump’s administration as among the top challenges in figuring out where to take US monetary policy in the months ahead, Reuters reported.

Chicago Fed President Austan Goolsbee warned that ignoring the potential inflationary impact of tariffs would be a mistake, whereas Richmond Fed President Thomas Barkin said it remains impossible at this early stage to know where cost increases from any tariffs might be absorbed or passed along to consumers.

The views of the two US central bankers were emblematic of the cautious approach Fed officials are angling to take in deciding whether to resume interest rate cuts later this year or continue to keep them on hold. The Fed left its benchmark interest rate unchanged last week in the 4.25%-4.5% range after cutting it at three straight meetings to close out 2024.

“The peso followed the stronger dollar after strong ADP data last night,” a trader added in a phone interview.

Overnight, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, languished near its lowest in over a week at 107.61, Reuters reported.

US private payrolls growth picked up in January, the ADP National Employment Report showed on Wednesday.

Private payrolls increased by 183,000 jobs last month after an upwardly revised 176,000 rise in December. Economists polled by Reuters had forecast private employment advancing by 150,000 following a previously reported 122,000 gain in December.

For Friday, the trader expects the peso to move between P57.80 and P58.30 per dollar, while Mr. Ricafort sees it ranging from P58.05 to P58.25. — A.M.C. Sy with Reuters

Vivant targets 2025 launch for Cebu desalination plant

THE 8.9-KILOMETER Cebu-Cordova Link Expressway — THE FREEMAN

VIVANT WATER, the water infrastructure unit of Cebu-based conglomerate Vivant Corp., is targeting to complete the testing and commissioning of its desalination plant in Cordova, Cebu, between March and April.

“This year, what we’re very excited about is the commissioning of the desalination plant in Cebu. That’s the first utility-scale seawater desalination plant in the country,” Vivant Chief Executive Officer Arlo Angelo G. Sarmiento told reporters last week.

Once completed, the desalination plant is expected to generate up to 20 million liters per day (MLD) of potable water in its first phase, serving the average daily consumption of 20,000 households. A desalination plant works by removing salt and other impurities from seawater to produce freshwater, making it suitable for potable use.

Vivant Water President Jess Anthony Garcia said the project cost to build the facility is close to P2 billion.

“We expect to begin official commercial operations this year,” he said.

Isla Mactan-Cordova Corp., a wholly owned subsidiary of Vivant Hydrocore Holdings, Inc., operating under the brand name Vivant Water, oversees the project. Vivant Hydrocore is a wholly owned subsidiary of Vivant Infracore Holdings, Inc., the holding company for Vivant’s water-related investments.

Mr. Garcia noted that there is still a “large shortage” of potable water in Metro Cebu, with total demand reaching about 500 to 600 million liters per day, while supply ranges from 100 to 250 MLD, dropping below 200 MLD during the dry season. “So there’s really a huge shortage,” he said.

In 2021, Vivant Hydrocore was awarded a 25-year contract by the Metropolitan Cebu Water District (MCWD) to build a utility-scale desalination plant to augment MCWD’s bulk water supply. Development activities for the plant started in 2022.

Regarding expansion plans, Mr. Garcia indicated that the desalination plant’s capacity could potentially expand to up to 50 MLD depending on the area’s needs.

For 2025, the company has earmarked a P4.5-billion budget, focusing primarily on renewable energy projects such as solar and wind power developments. It plans to roll out solar power projects with a total capacity of 115 megawatts (MW) and a 200-MW wind power project in Samar.

Vivant has investments in various companies engaged in electric power generation and distribution, as well as the retail electricity business. The company has also entered the water industry, with a diversified portfolio in bulk water supply, wastewater treatment, and water distribution. — Sheldeen Joy Talavera

Hong Kong celebrates 1.2M Filipino visitors in 2024

CITYSCAPE view of the Victoria Harbour region in Hong Kong. —MANSON YIM-UNSPLASH

There are new attractions, and old ones are being refurbished

THE number of Filipino tourists that visited Hong Kong last year breached the one-million mark and exceeded pre-pandemic levels, according to the Hong Kong Tourism Board (HKTB).

In light of the big increase — 1.2 million visitors from the Philippines in 2024 compared to a previous record of 930,000 in 2018 — the HKTB unveiled its tourism initiatives for this year, with the aim of keeping up momentum.

“We are thrilled to know that Hong Kong, in the last year, was the top travel destination for Filipinos. We are incredibly fortunate and honored to have your love for our city,” Dane Cheng, HKTB’s Executive Director, said at a celebration on Feb. 5.

He mentioned milestone efforts with the Philippines that seek to foster this connection: being the setting of performers KD Estrada and Alexa Ilacad’s music video “Be With U,” and of the feature film Under Parallel Skies starring Filipino actress Janella Salvador and Thai actor Win Metawin; and having Filipino chef Margarita Fores collaborating with Hong Kong chef Vicky Cheng for a four-hands dinner.

Mr. Estrada and Ms. Ilacad graced the event, speaking of their favorite parts of filming their video in the island of Cheung Chau. The former explained that, as a foodie, the giant curry fishballs and sweet mango mochi were great snacks. The latter praised the picturesque waterfront and mosaic walls, which were Instagrammable spots.

Meanwhile, the lucky millionth Filipino visitor to Hong Kong was actually a family, Mr. Cheng said: Miguel and Anna Linao, along with their kids, who visited the former British territory in November.

“I feel like Hong Kong has something for everyone. My wife and I really love the food and the modern vibe, and then for our kids, of course there’s the theme parks,” said Mr. Linao.

“We just walk around the city endlessly, get lost in the city, but then it’s also easy to find your way back,” he said.

NEW ATTRACTIONS, ACTIVITIES
Liew Chian Jia, HKTB’s Regional Director for Southeast Asia, told BusinessWorld that they are “confident that there will be a lot more Filipinos coming to Hong Kong this year” due to the 2025 lineup of tourism programs.

At her full presentation to the media and trade partners, she unveiled a plethora of transformations tourists can look out for. First is the Hong Kong International Airport, which will have a standalone art storage facility designed to serve collectors, galleries, and museums.

“This development will feature a one-stop art hub, featuring art creation, appreciation, and trading in a single space,” Ms. Liew said.

The AsiaWorld-Expo will be getting a facelift in order to reintroduce itself as Hong Kong’s largest indoor performance venue. Similarly, the Symphony of Lights, the iconic light and sound show set against the Hong Kong harbor skyline, is being revamped.

Ngong Ping 360, the cable car experience in Lantau Island, launched something new in December: the immersive Chinese Dynasty Pavilion. As Hong Kong’s first Three Kingdoms-themed museum, it is a mix of culture and history with state-of-the-art technology.

Ocean Park Hong Kong recently received a new pair of pandas, in addition to their original resident couple giving birth to two more. This makes a total of six pandas in residence at the park that tourists can visit.

Finally, Ms. Liew highlighted that Hong Kong Disneyland is celebrating its 20th anniversary this summer. “The year-long celebration will unveil brand new entertainment and exclusive limited offers,” she said.

These include an anniversary-only Castle State Show that brings together Disney characters for a party experience in front of the main castle, and an all-new parade featuring 11 party floats filled with Disney characters. The finale is a special edition of the Momentous light projections and drone choreography set against the castle.

HKTB will also have exclusive deals at their Travel Tour Expo booth this weekend, said Ms. Liew.

“We are working with travel agents onsite to offer buy two, get one free package deals,” she added. “And once you purchase your Hong Kong Dream Getaway, we have exclusive gifts for redemption from attractions like Disneyland and Ocean Park.”

The Travel Tour Expo runs from Feb. 7 to 9 at the SMX Convention Center, Mall of Asia, Pasay City. — Brontë H. Lacsamana

BDO and Japan’s Seven Bank renew remittance partnership

BDO UNIBANK, Inc. recently renewed its remittance partnership with Japan-based Seven Bank, with both lenders looking to expand their alliance, it said on Thursday.

“The strategic alliance of the banking leaders from two of Asia’s robust economies was off to a great start when it was first announced back in 2017. Now seven years later, both institutions recognize the collaboration has brought many benefits to their customers.  BDO and Seven Bank are exploring more opportunities for their partnership to expand across other products and services,” BDO said in a statement.

Under the partnership, overseas Filipino workers (OFWs) in Japan can send money using Seven Bank’s International Money Transfer mobile app.

“We saw that one hurdle for Filipino workers in Japan is visiting banks and remittance centers during daytime because of their work schedule. Our alliance with Seven Bank is a game changer, allowing 24×7 remittance through their mobile app and ATM (automated teller machine) network of 27,000 all over Japan,” BDO Senior Vice- President Remittance Head Genie T. Gloria was quoted as saying.

“BDO is very passionate and aggressive to provide new services to customers, so we want to have a good partnership with BDO to do things together with them,” Seven Bank President and Representative Director Masaaki Matsuhashi said. “For Filipinos living in Japan, everybody knows BDO, and everybody feels secure and safe with the BDO network. Filipinos in Japan also know Seven Bank. They know BDO and Seven Bank as trustworthy and reliable banks.”

Prior to its partnership with Seven Bank, BDO’s remittance network in Japan started with the opening of a BDO Remit office in Shinjuku in 2016. “The alliance with Seven Bank a year later enabled BDO to reach customers beyond the Shinjuku/Tokyo area to various prefectures of Japan,” it said.

“In the remittance business in general, there are some cases wherein the remittance failed to be sent. With BDO, all transactions are successfully sent by the senders and received by the beneficiaries. This is one of the strengths BDO has,” Mr. Matsuhashi added.

BDO has a wide network of remittance partners across Asia-Pacific, Europe, North America, and the Middle East.

It serves OFWs and their families via its physical and digital network and products like BDO Kabayan Savings and Cash Pick-up Anywhere that allow beneficiaries to receive and withdraw money through various locations and channels, including ATMs, BDO and BDO Network Bank, Inc. branches, BDO Remit counters at SM malls, and its Cash Agad partner-agents.

OFWs’ cash remittances coursed through banks grew by 3.3% annually to $2.81 billion in November 2024 from $2.72 billion a year prior, latest Bangko Sentral ng Pilipinas (BSP) data showed. In the January-to-November period, cash remittances climbed by 3% to $31.11 billion from $30.21 billion a year earlier. The central bank expects cash remittances to increase by 3% in 2024 and 2025.

BDO’s net income went up by up by 12.47% year on year to P60.62 billion in the first nine months of 2024.

Its shares dropped by P2.90 or 1.97% to end at P144.10 apiece on Thursday. — A.M.C. Sy

Reviving the Philippine stock market: The OECD Report

ON DEC. 19, 2024, ANC News announced that “PSEI on track for 5th annual loss.” If so, this means that while the Philippine economy as well as the other ASEAN stock markets have recovered from the COVID-19 pandemic, the Philippine stock market is still bed-ridden. In fact, it first crossed the 6,000 index mark in 2013 and is now back to this level after 12 years of turmoil.

This dire condition of the Philippine stock market was the subject of a report by the Organization for Economic Co-operation and Development (OECD) entitled “OECD Capital Market Review of the Philippines 2024.”

The OECD report stated that:

“At the start of 2024, the PSE [Philippine Stock Exchange] had 269 listed companies on the Main Board and SME Board with a total market capitalization of $234 billion, equivalent to 52% of the country’s GDP (Figure 1.7, Panel A). Compared to peer countries, the Philippines has the lowest number of listed companies and ranks second to last in terms of market capitalization as a share of GDP. Additionally, the amount of capital raised through initial and secondary public offerings remains low compared to regional peers. Since 2000, 95 Philippine companies have collectively raised almost $13 billion through initial public offerings (IPOs) (Figure 1.7, Panel B). This is significantly lower than the least active market among peers, Vietnam, where 584 companies raised $36 billion. Between 2000 and 2023, the capital raised through IPOs in the Philippines represented only 0.2% of GDP, much lower than in all other peer countries except Indonesia.”

To revive the Philippine stock market, which the OECD considers not a problem of stimulating demand for stocks but rather the lack supply of listed companies, it made two major proposals: tap the large number of unlisted large private companies as well as State-Owned Enterprises (SOEs).

According to the OECD Report, there are 411 large unlisted companies (269 are now listed) which are suitable candidates for listing. Not only that, but many large unlisted companies also outperform the currently listed ones both in terms of size and profitability. Their listing will mean more attractive companies for the public to invest in.

One possible incentive for these companies to list is to exempt all listed companies from being audited by the Bureau of Internal Revenue (BIR).

The rationale for auditing the income tax returns of individuals and companies is their incentive to understate their income and so pay lower income taxes. With respect to listed companies, there is the other incentive to report higher income so that the market price of their shares will go higher. The increased value of their shares will more than offset the higher taxes they will pay for not understating their income.

And yet listed companies are regularly assessed billions in tax liabilities by BIR examiners only to prove after long and costly discussions that they are correctly paying their taxes. By exempting them from BIR audits, they could devote more time to improving the profitability of their companies and the BIR examiners could more productively spend their time auditing unlisted companies.

Providing this exemption does not require passing a new law. All that is needed is a Department Order issued by the Secretary of Finance directing the Commissioner of the Bureau of Internal Revenue to delete from its list of companies to be audited the listed companies.

The second source for new listed companies is State-Owned Enterprises (SOEs). The OECD Report notes there are no SOEs listed on the Philippine Stock Exchange, which contrasts with a number of peer countries where SOEs make up a substantial share of market capitalization.

The most notable example is Singapore, where the top three listed SOEs — DBS Group Holding, Singapore Telecommunications, and Singapore Airlines — account for 27% of total market capitalization. Similarly, the top three listed SOEs in Malaysia, Indonesia, Thailand, and Vietnam each represent 15-18% of the domestic stock exchanges’ market capitalization. These listed SOEs include banks, telecommunication companies, airports, and gas and petroleum production companies.

The OECD Report recommends that in the Philippines, public equity markets could be expanded by listing minority stakes of financially significant SOEs. At the start of 2023, there were 118 governments-owned or -controlled corporations (GOCCs) in the Philippines with total assets amounting to P11.6 trillion ($230 billion). Among these companies two banks stand out in terms of total assets, net worth, and income as potential candidates for a stock market listing: the Land Bank of the Philippines with total assets of P3.1 trillion ($61.5 billion) and the Development Bank of the Philippines with total assets of P1 trillion ($20 billion) (see Figure 1.11, Panel B; other potential candidates for a partial listing are shown on Panel B).

With respect to the listing of SOEs in the Philippine Stock Exchange, we would recommend that prior to listing, the shares of the SOEs be transferred from the government (Department of Finance) to the Maharlika Fund. This would immediately provide the Fund with seasoned stocks whose value can immediately be realized.

Listing the Philippine SOEs will be beneficial in so many ways. For one, listing will provide a source of funding other than  that from the government for our SOEs. Accessing non-government funds will force our SOEs to learn how to tap the capital markets not only domestically but also internationally.

It would also allow Filipino investors to share in the earnings of these government-supported enterprises. This alternative will appeal not only to patriotic Filipino who will look upon these SOEs as national champions of the Philippines, but also to investment savvy Filipinos who will be aware that majority government ownership makes their stock more attractive.

Most importantly, SOEs as listed enterprises will be subject to scrutiny by an army of securities analysts. They will closely scrutinize their past performance, present operations, and their future plans. This will greatly assist the government as majority stockholder in assessing the competence and performance of the managers that were appointed to the key positions.

In sum, the OECD has provided the Philippine Stock Exchange with a viable strategy for reviving the Philippine Stock Market. All that is needed is for the President of the Philippine Stock Exchange to implement the plan.

This article is based on the research undertaken by the Research Team of Regina Capital Development Corp., a member of the Philippine Stock Exchange.

 

Dr. Victor S. Limlingan is a retired professor of AIM and a fellow of the Foundation for Economic Freedom. He is presently chairman of the Cristina Research Foundation, a public policy adviser and of Regina Capital Development Corp.

Kia PHL eyes 12,500 units sold this year

PHOTO FROM KIA PHILIPPINES

KIA PHILIPPINES (KP Motors Corp.) is targeting 12,500 car sales this year, according to its chief operating officer (COO).

“We are aiming to hit 12,500 cars this year, which represents an 86% growth from the nearly 7,000 units we sold last year,” said Brian James Buendia, COO of Kia Philippines, during the launch of the new Sorento on Thursday.

“It is aspirational, and we already have the formula in place. Last year, we achieved a 33% growth despite facing some supply challenges. Now, as we ramp up our Sonet supply and introduce new models, I believe it is achievable,” he added.

Kia Philippines ranked as the tenth top-selling brand, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

In 2024, Kia Philippines sold 6,692 units, marking a 33% increase from the 5,033 units sold in 2023, representing a 1.43% market share.

“We finished the year at 1.4%, but in the last six months of 2023, we were already achieving a 1.7% to 1.8% market share. For this year, with a full year of Kia Sonet sales, we expect to increase our market share to at least 2.1% to 2.5%,” Mr. Buendia said.

Mr. Buendia noted that the Kia Sonet and the newly launched Sorento Turbo Hybrid will drive sales growth this year.

On Thursday, Kia Philippines, a subsidiary of Mobility, launched the Sorento Turbo Hybrid, available in three variants: EX Turbo Hybrid FWD, EX+ Turbo Hybrid FWD, and SX Turbo Hybrid AWD, with prices ranging from P2.188 million to P2.888 million.

For 2025, Mr. Buendia said Kia Philippines is aiming to sell 1,500 to 2,000 units of the Sorento Turbo Hybrid.

“The growth this year will be supported by the Sorento, as well as the Sonet. The Sonet will have full-year exposure this year, unlike last year, when we sold nearly 7,000 units but for only half the year. It was our best-seller,” he said.

“We will have the Sonet available for the entire year, which will definitely help drive our numbers, along with the Sorento and our new hybrid lineup for the Carnival,” he added.

In addition to the Sorento launched on Thursday, Mr. Buendia mentioned that Kia is exploring other models tailored to the Philippine market.

“It’s easy to bring cars here, but now we are learning to study the market first before introducing new models. We already have a few models for testing that I cannot yet reveal,” he said.

“If those cars show positive results in our research, we’ll definitely bring them in. We are always open to opportunities and aim to align the entire Kia lineup with the electrification of AC mobility,” he added.

In addition to new models, Mr. Buendia said Kia is focusing on the quality of its 40 dealerships to support sales growth.

“If you visit Kia dealerships now, you’ll see they have adopted the new Kia store image, complete with the new logo. This started in 2022, and we’re now at around 70% of our Kia dealers using the new corporate logo,” he said.

“Along with that, we’re implementing new customer experience training across all dealerships, focusing on end-to-end customer engagement. We believe this will be a significant driver of our growth,” he added.

Kia offers a wide range of vehicles, including internal combustion engine (ICE), hybrid, and fully electric vehicles (EVs). However, Mr. Buendia said that ICE vehicles will remain the main growth driver for 2025.

“For 2025, we expect ICE vehicles to continue leading our growth. Our ICE offerings cater to the lower segment, including subcompact SUVs (sports utility vehicles) like the Kia Sonet,” he said.

“While our electrified models, such as hybrids and EVs, are currently positioned in the premium segment, the ICE models will still dominate sales,” he added.

Specifically, he said ICE models are expected to account for 70-75% of the company’s sales in 2025. — Justine Irish D. Tabile