Summit Natural Drinking Water fuels Filipino athletes’ #ThirstforGold in the 31^st SEAGAMES

May 2, 2022 | 1:49 pm

Empowering our heroes Hidilyn Diaz, EJ Obiena and Filipinas (Philippine Women’s National Football Team) with the right hydration and right minerals in their journey to summit!

Summit Natural Drinking Water showcases, once again, its unwavering commitment to supporting Filipino athletes thrive, this time in their bid to bring honor to the country in the 31st Hanoi Southeast Asian (SEA) Games this May 12 to 23, 2022.

As the official bottled water partner of the Philippine Olympic Committee, Summit is one with our athletes in their journey to aspire, perspire, and inspire fellow Filipinos. The Philippines’ first Olympic gold medalist Hidilyn Diaz, Asian pole vault record-holder EJ Obiena, and now, Filipinas, the Philippine National Women’s Football Team are all set to have their hydration levels covered by Summit with the right minerals, allowing them to remain focused on their goals and deliver at peak performance.

Even before Hidilyn and EJ entered the pantheon of Filipino sports icons, Summit has been there to support their respective journeys.

HIDILYN’S JOURNEY TO SUMMIT

Hidilyn Diaz has been making a name for herself since 2008, when she was selected as a wildcard entry for the Beijing Games, becoming the first-ever Filipina to compete in weightlifting. 2016, the year when Hidilyn Diaz, ended the country’s 20-year Olympic medal drought by winning silver at the women’s 53-kg category in weightlifting. Summit is honored to have witnessed that win at the Rio Olympics. To show their love and support for Diaz, they officially made her one of their ambassadors in the year 2018. The goal is not only for Hidilyn to promote the brand but also to back her up in terms of training and hydration as Summit believes in her persistence, motivation, and capacity in achieving a Gold. True enough, in 2019, Diaz won her first SEA Games Gold medal after topping the 55-kg division. With a committed sponsor by her side, Hidilyn powered through challenges en route to her historic win in the Tokyo Games that ended the country’s 93-year hunt for an Olympic gold medal. With back-to-back milestones from various competitions, she proved that she has always had a #ThirstforGold.

To commemorate Hidilyn’s success story, Summit Natural Drinking Water is launching Summit Labels featuring Hidilyn Diaz in 350ml, 500ml and 1L formats and Sports Bottles in 500ml format, which you can now get in leading stores nationwide.

EJ’S JOURNEY TO SUMMIT

Meanwhile, EJ Obiena joined Team Summit after rising in the pole-vaulting scene here and abroad. He most memorably competed in the Tokyo Olympics against the best, proving that one of the sport’s brightest stars is a Filipino.

The “Golden Boy” has been jumping since he was six years old. Since then, he has always remained active, joining the track teams throughout his years in school, from elementary to college, before competing internationally, starting at the 2019 SEA Games where he bagged the gold medal after clearing 5.45 meters on the bar. A year later he stands as the first Filipino athlete to qualify for Tokyo 2020, capping off as the fifth overall in his group during the qualifiers and 11th overall as he made the cut. Currently, EJ is a world record holder with 5.93m as his best performance and recently he has been winning gold in competitions across the globe.

EJ is also set to be carrying the Philippine flag in the opening ceremony of the upcoming SEA Games, making his participation even more remarkable. With EJ as the official flag bearer, he is not only representing Filipino athletes but giving pride and joy to all Filipinos around the world.

The two Filipino Olympians make room as Summit welcomes to its growing family the Philippine National Women’s Football Team, now known as Filipinas. The young, history-making squad secured a spot in the next year’s FIFA World Cup, becoming the first Philippine team to qualify for the grandest stage of the world’s biggest sport.

FILIPINAS’ JOURNEY TO SUMMIT

The Philippine Women’s National Football Team, also known as the “Filipinas” continue to break barriers as they continue to prove their #ThirstForGold. The Filipinas made a historic feat in the AFC Women’s Asian Cup in India earlier this year by reaching the semifinals and qualifying for the FIFA Women’s World Cup for the first time ever. Now they are embarking on the journey towards the 31^st SEA Games by making sure that they are well prepared and well trained with the help of getting support and the right minerals from Summit.

With the support of Summit Natural Drinking Water, the Filipinas look to carry the momentum from their World Cup qualification onto the SEA Games next month. Meanwhile, Hidilyn and EJ are reigning gold medalists at the Games and are thirsty for more.

Show your support as our athletes #ThirstForGold at the SEA Games! Every purchase of Summit Natural Drinking Water bottle contributes to the training of our athletes taking them one step closer to their goals.

This year, Summit Natural Drinking water also partners with Liv3ly in promoting an active lifestyle and supporting Filipinos as they #ThirstForMore.

Liv3ly is a social fitness app with the goal of motivating users to move through engaging, experiences, gamification, and rewards. With the app, users can take on running challenges, track records, and compete with other users.

Download the Liv3ly app now in Appstore and Google Play to win exciting prizes from Summit! Stay tuned for Summit #ThirstForMore virtual run for more surprises!

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Hope fizzles for Japan’s ‘revenge spending’ splurge as inflation looms

May 2, 2022 | 1:32 pm

TOKYO — Japanese mother of three Maiko Takahashi was never one to pinch pennies or accept hand-me-downs for her children even though circumstances for her single-income family have always been fairly modest.

But times have changed. Nowadays, she has no trouble with used clothes and her pursuit of bargains and scrimping on the most trifling costs borders on the obsessive.

“I’ve started to pay close attention to tips on TV shows, like minimizing the number of times you open the fridge to save electricity,” said Ms. Takahashi, whose family of five lives in suburbs north of Tokyo.

“We’ve started to feel the pinch going about things the usual way so I’ve made adjustments.”

Ms. Takahashi’s behavior is mirrored by a growing number of consumers and underlines a worrying trend for Japan.

After lifting two years of on-and-off coronavirus curbs in March, the government was counting on what’s known as “revenge spending”, pent-up demand triggering a splurge that boosts consumption and a moribund economy, as has been seen in the United States, China and some other major economies.

But with energy, food and other living costs soaring — exacerbated in recent months by a sharp decline in the yen and the war in Ukraine — those hopes are fading fast.

Facing the prospect of struggling with rising prices, Japan’s famously thrifty consumers are tightening their belts even as they sit on the remains of an estimated 50 trillion yen ($383 billion) — equivalent to 9% of the economy — in “forced savings”, as the Bank of Japan calls it, accrued during the pandemic.

Some bigger companies have answered a government call to raise wages but the gains of some 2% will be swallowed up by higher prices of everything from flour, to diapers and beer, economists say.

In March, electricity prices in resources-poor Japan jumped 22% from the previous year — the most in more than four decades.

The government recently upgraded its assessment of the economy for the first time in four months, citing an expected recovery in spending, but added a caveat that the outlook was clouded.

“The chance of a ‘revenge spending’ burst is becoming smaller than we had expected,” a government official said in unusually candid remarks, noting that prospects were especially uncertain beyond the summer.

FINAL FEAST

With more than 90% of consumers saying in the latest government survey that they expected everyday goods to become more expensive over the next 12 months, economists say it is no surprise to see behavior like Ms. Takahashi’s.

In addition to accepting used uniforms for her son entering kindergarten, and venturing further in search of discounts, the stay-at-home-mum said she has switched to lower-cost private brands (PB) for mayonnaise, ketchup and other food.

She’s not alone. The share of so-called PB items for mayonnaise purchases nationwide rose to 22% in March from 18% a year earlier, according to market research firm Intage Inc. Supermarket giant Aeon Co. saw PB food sales jump 15% in the six months to February.

The “Golden Week” holiday, which began on Friday, is the first in three years without coronavirus disease 2019 (COVID-19) restrictions, and the economy should see a dramatic improvement in spending but that is likely to be the high point for consumption this year, said Daiwa Securities senior economist Toru Suehiro.

“The full-fledged impact of rising costs will emerge in the July–September quarter and later, so the Golden Week will probably be the last feast of the year,” he said.

The number of holiday travelers is expected to grow about 70% from last year, but still a third short of pre-pandemic levels, according to JTB Corp., Japan’s biggest travel agency.

The yen’s fall to two-decade lows would normally be a boon for in-bound travelers, but Japan, fearing COVID, has kept its borders closed to tourists. In 2019, almost 32 million foreign tourists contributed to the economy.

Meanwhile, the weak yen has caused pain for many companies by increasing input costs, making them just as cautious as consumers — and reluctant to raise wages.

“Prices keep rising and rising for items we can’t live without, while salaries are flat,” Ms. Takahashi said. “I’m constantly racking my brains over what I can skimp on next.” ($1 = 130.6400 yen) — Kantaro Komiya and Kentaro Sugiyama/Reuters

Russia’s Ukrainian quagmire providing tough lessons for China

May 2, 2022 | 1:01 pm

HONG KONG/BEIJING — From countering a Western “information war” during a Taiwan conflict to using “shock and awe” to swiftly subdue the island’s forces, Chinese strategists are soaking up lessons from Russia’s Ukrainian quagmire, diplomats, scholars and analysts say.

Chinese military experts are discussing the conflict in private chat groups, offering their takes on Western involvement in Ukraine and Russia’s perceived failings, say two scholars and four Asian and Western diplomats who are in touch with Chinese strategists.

Although their conclusions have yet to surface in official military journals or state media, Russia’s failure to quickly crush the Ukrainian military is a key topic — as are fears about how well China’s untested forces would perform.

“Many Chinese experts are monitoring this war as if they are imagining how this would unfold if it happened between China and the West,” said Beijing-based security scholar Zhao Tong of the Carnegie Endowment for International Peace.

Russia’s approach in the early stages of the war did not subdue Ukrainian forces, which emboldened the international community to intervene with intelligence sharing, military equipment and the economic isolation of Russia.

“China probably should think about conducting a much stronger and much more comprehensive operation at the very beginning to shock and awe the Taiwanese forces to secure a major advantage,” Mr. Zhao said, referring to observations from Chinese strategists.

They believe securing that advantage would “deter enemy forces from being willing to intervene,” he said.

Singapore-based scholar Collin Koh said such an approach would create its own problems for China’s People’s Liberation Army.

“If you are going to ‘shock and awe’ Taiwan with overwhelming force in the initial stages, there might be a lot of civilian casualties,” said Mr. Koh, of the S. Rajaratnam School of International Studies. That would make occupation difficult and harden international opposition.

“The Chinese can’t have any illusions now that they will be welcomed as liberators in Taiwan and given supplies and assistance,” he said.

Taiwan also has greater missile capabilities than Ukraine, allowing for pre-emptive strikes on a Chinese build-up or attacks on Chinese facilities after an invasion.

Neither China’s defense ministry nor China’s Taiwan Affairs Office immediately responded to requests for comment.

Russian forces invaded eastern Ukraine starting on Feb. 24, reducing towns and cities to rubble amid stiff resistance, losing thousands of troops as well as tanks, helicopters and aircraft. British officials estimated this week that 15,000 Russian troops have died; other sources suggest a higher number.

More than 5 million people have fled after what Russia describes as a “special operation” to disarm Ukraine and protect it from fascists. Ukraine and Western governments say this a false pretext for an unprovoked war of aggression by President Vladimir Putin.

INFORMATION WAR

Chinese strategists also worry about how Russia is contending with indirect Western military assistance, a factor China would also face in a Taiwan scenario, say two scholars and four diplomats.

Chinese experts are privately arguing about the need for Beijing to better compete in the so-called information war, which has complicated Russia’s position on the battlefield, Mr. Zhao said.

Besides isolating Russia economically, Western diplomatic efforts — and reporting on atrocities in the war zone — have made it easier to provide aid for Ukraine and harder for Russia to find outside support.

Mr. Zhao said that to Chinese strategists, one of the most important parts of the current conflict was how Western nations “are able to manipulate, from their perspective, international opinion and decisively change the international response to the war.”

Some Chinese strategists believe that the control of information has created a much worse impression of Russian performance than is warranted.

“There are a lot of discussions about how China needs to pay great attention to this information domain,” Mr. Zhao said.

LOGISTICAL CHALLENGES

Some analysts note that the Ukrainian campaign was under way long before Russian forces invaded in late February, with months of build-up on the Russian side of the border. Those efforts were easily tracked by private sector open-source intelligence firms and repeatedly highlighted by US and other governments.

“Taiwan would present a far greater logistical challenge than Ukraine, and to ready an invasion force on that scale undetected would be incredibly difficult,” said Alexander Neill, who runs a strategic consultancy in Singapore.

China’s military leaders also have for decades looked to Moscow for not just weapons but also structural and command doctrine.

Russian and Chinese forces have staged increasingly intensive joint exercises in recent years, including large-scale combined arms operations in Russia in September 2020.

Strategic assumptions from this collaboration, however, are being tested. In 2012 the PLA adopted units similar to Russian Battalion Tactical Groups (BTG) — supposedly swift, nimble and self-supporting units. But Russian BTGs have become bogged down in Ukraine and proven vulnerable to attack.

Russia has also struggled to coordinate the involvement of several military districts in the Ukraine war. Chinese analysts worry a Chinese invasion across the Taiwan Strait — widely seen as a far greater military challenge — would face similar problems, as it requires smooth cooperation across its recently formed Southern, Eastern and Northern Theater Commands.

Russia’s forces in Ukraine have had command breakdowns and low morale. Analysts say it’s unclear how Chinese troops — untested since they invaded northern Vietnam in 1979 — would perform in a modern conflict.

“We’ve seen signs of alarming indiscipline from Russian troops, which is a reminder that there is so much we don’t know about how Chinese troops would perform under the pressures of war,” Mr. Neill said. “For all the political indoctrination, we just don’t know how resilient they would be.” — Greg Torode, Martin Quin Pollard and Yew Lun Tian/Reuters

Bored Ape NFT company raises around $285M of crypto in virtual land sale

May 2, 2022 | 12:31 pm

Bored Ape - OpenSea — SCREENSHOT VIA OPENSEA/BORED APE YACHT CLUB

LONDON — The company behind the “Bored Ape” series of non-fungible tokens (NFTs) has raised around $285 million worth of cryptocurrency by selling tokens which represent land in a virtual world game it says it is building.

Last year, US start-up Yuga Labs created the Bored Ape Yacht Club NFTs, blockchain-based tokens representing a set of 10,000 computer-generated cartoon apes.

As NFTs — crypto assets that represent digital files such as images, video, or items in an online game — exploded in popularity, Bored Ape prices surged to fetch hundreds of thousands of dollars each.

They became one of the most prominent NFT brands, with Apes sold at top auction houses and owned by celebrities including Paris Hilton and Madonna.

Now, Yuga Labs — which raised $450 million in March in a funding round led by Andreessen Horowitz — has set its sights on the so-called “metaverse.”

In an online sale on April 30, Yuga Labs sold NFTs called “Otherdeeds,” which it said could be exchanged as plots of virtual land in a future Bored Ape-themed online environment called “Otherside.”

The “Otherdeeds” could only be bought using the project’s associated cryptocurrency, called ApeCoin, which launched in March.

There were 55,000 Otherdeeds for sale, priced at 305 ApeCoin each, and the company wrote on Twitter that these had sold out.

This means the sale raked in 16,775,000 ApeCoin, worth around $285 million as of Sunday, according to Reuters calculations based on the price of ApeCoin on cryptocurrency exchange Coinbase at 1210 GMT.

It was not clear how the funds would be distributed, although the company said the ApeCoin would be “locked up” for one year.

The sale indicates the continued high demand for speculative, high-risk crypto assets related to online virtual worlds. NFTs are largely unregulated, and reports of scams, fakes, and market manipulation are common.

While many are baffled by the idea of paying real money for land which does not physically exist, some virtual land NFTs have already fetched millions of dollars.

The Otherside metaverse will be a multiplayer gaming environment, according to its website, which says it is currently under development.

Yuga Labs declined to say how many people were working on building Otherside or when it would be launched.

Yuga Labs’ Otherdeeds sale comes shortly after the Bored Ape Yacht Club official Instagram account was hacked and a phishing link posted, allowing scammers to steal victims’ NFTs. — Elizabeth Howcroft/Reuters

[B-SIDE Podcast] Russia, Ukraine, and the Philippines (Part 1)

May 2, 2022 | 11:32 am

Government officials have assured Filipinos that the impact of the Russia-Ukraine war will be minimal given the Philippines’ limited trade and banking exposure with either country. Remittances from the conflict zones are also small compared to inflows from the rest of Europe and the world.

Still, the fact remains that Russia is a major exporter of oil and metals, while Ukraine is among the biggest sources of wheat.

Amid faster inflation, jeepney drivers have called for transport fare hikes; labor groups, for higher wages.

In this B-Side episode, Chester B. Cabalza, International Development and Security Cooperation president and founder, tells BusinessWorld reporter Luz Wendy T. Noble why Filipinos should care about what happens to Russia and Ukraine from three angles: energy, warfare, and diplomatic impact.

He compares and contrasts the hybrid war in Europe to what’s happening in the Asia-Pacific, with China flexing its muscles. Closer to home, Mr. Cabalza, who is also a security anthropologist at the University of the Philippines, draws parallels between the hybrid war waged by Russian President Vladimir Putin and the conflict in Marawi.

TAKEAWAYS

The geopolitical landscape is shifting and the Russia-Ukraine war raises the question: which nation will remain a superpower?

“We will see a lot of hot wars — major powers will have to compete who among them will be the major superpower,” Mr. Cabalza said. How long the US keeps its position as the world’s strongest economy and military is in question.

He noted that the Philippines, under the administration of President Rodrigo R. Duterte, boosted ties with Russia “due to idolatry and fascination” for President Vladimir Putin.

The war is a playbook for China’s next move.

China, the second biggest economy, is perceived to have a strong military technology. But the country’s practical experience in terms of tactics has never been tested as it has not played a major role in previous wars, said Mr. Cabalza.

The Philippine military could learn a thing or two from the conflict.

“Even if you have a vision of reviving your country as a superpower, sometimes, strategy is a matter of understanding also. We have to question how come Putin so far has underestimated … Ukraine?” said Mr. Cabalza, who drew parallels between the Russia-Ukraine conflict and the siege of Marawi City in 2017.

Furthermore, the military could look at how the war unfolds to seek insights that apply to the territorial dispute in the West Philippine Sea.

The war is a reminder to elect sensible, humane, and decisive leaders.

Mr. Cabalza said the best leader to choose in this coming election is someone who will prioritize the national interest of the Philippines, pursue multilateralism, and abide by international cooperation.

The war, he added, has exposed how a leader’s temperament can affect global geopolitics.

“They [leaders] have frailties, weaknesses, and sometimes they go crazy with their decisions. And when they have wild decisions, we get affected,” Mr. Cabalza said.

Recorded remotely on April 27, 2022. Produced by Earl R. Lagundino and Sam L. Marcelo.

Security Bank strengthens its BetterBanking commitment to stakeholders, holds 2022 Economic Forum

May 2, 2022 | 10:44 am

Screenshot 2022-04-28 153428 — Key experts in global and local economics and political analysis shared their outlook for 2022 in the Security Bank Economic Forum, which was moderated by the Bank’s chief economist, Robert Dan Roces.

As part of its commitment to provide stakeholders with avenues for discourse to enable decision-making, Security Bank held its 2022 Economic Forum on April 28, 2022. Key economists and political analysis experts discussed the effects of the current political landscape and ongoing conflicts on the country’s economy.

Titled “Economic trends, the political environment, and the impact on the business community,” the event was headlined by Akihiko Sato, Chief Economist & Managing Director and Head of Economic Research office at MUFG Bank Ltd; Dr. Cielito Habito, Chair, Brain Trust, Inc. and a professor at Ateneo de Manila University; and Prof. Victor Andres Manhit, Founder and Managing Director of the Stratbase Group.

A look at global trends

Akihiko Sato discussed the impact of the Russia-Ukraine war and COVID-19 lockdowns in China on the global economy, the ASEAN region, and the Philippines.

“Inflation rates across many countries will continue to be elevated, thus prompting a cycle of monetary tightening by central banks. Constraints related to supply chains will also worsen in light of sanctions related to the Russia-Ukraine conflict and the lockdowns China instituted to prevent the spread of COVID-19,” he said.

He also presented data on how the war between the two neighboring countries has affected not only the economy, but also the world’s global supply chain, which has heavily contributed to the increase of oil prices and other commodities.

“One factor that contributes highly to this disruption is China’s zero COVID policy, the lockdowns have contributed greatly to port congestion and production delays, if this continues, we will also see continued disruption on the global supply chain,” said Mr. Sato.

“Many ports in the east coast of China rank in [the] top 10 globally, so the disruption of the Chinese economy directly affects the global economy through logistics disruptions. And as for the Ukraine conflict, there are many commodities where Russia has [a] big presence and the war and economic sanctions will no doubt affect global supply chains [negatively].”

Additionally, Mr. Sato noted that in the coming years, the changes to social structures created by the pandemic and the new geopolitical realities in Asia and Europe could become dominant trends.

From global to local

Meanwhile, Dr. Cielito Habito shared his outlook on the Philippine economy amidst the fallouts from the COVID-19 aftermath and the Russia-Ukraine conflict.

“We are seeing a shift in where workers are looking for jobs as there has been an increase in workers in the farming, fishing, and trading sectors and an exodus from industry and Feed the Future sectors,” said Dr. Habito

He adds,“There has also been an increase in the size of the informal sector — which could lead to lower tax revenues for the government — and more people are opting to work at part-time jobs and fewer are working in full-time jobs.”

Despite this, Dr. Habito noted two positive streams that could help bring the economy back on its feet: agricultural and digital/technology sectors. “Agricultural production has been prevalent across all regions, and the sector has been the biggest provider of jobs for Filipinos. Meanwhile, the digital economy has introduced disruption in the form of improvements in operational processes. We have also seen new products in the market, such as those offered by financial technological companies, which benefit consumers,” said Dr. Habito.

A view into the political landscape

With the 2022 elections less than two weeks away, Prof. Victor Andres C. Manhit discussed the dynamics of the 2022 national election campaigns, the profile of the Filipino voter, considerations in selecting a presidential candidate, and how social media has changed the way campaigns work

He highlighted how the economy in the next six months will be determined based on who wins and who will sit on the cabinet, citing that once the elected president gives their first State of the Nation address, the economy will move based on the statements made.

“Controlling inflation rate, ensuring higher pay for workers, creating jobs, and reducing poverty are the biggest issues that voters want to be addressed. For example, surveys have shown that 58% of respondents want the government to bring the rise of prices in check, while 4 out of 10 respondents see a higher take-home pay as an urgent priority,” Mr. Manhit added.

With more than 65.7 million eligible Filipino voters in the 2022 elections, Mr. Manhit sees an opportunity for a positive turnout, with more than 44% of registered voters being first-time voters and have taken their campaigning to social media.

“Social media is shaping the discourse; mainstream media is catching up. If the presidency is shaped by what is happening on social media, then imagine what governance would be and that for me is the great challenge,” Mr. Manhit added.

Generating discourse to foster BetterBanking

Each year, Security Bank organizes a “by-invitation only” economic forum to support its vision to become the most customer-centric bank in the Philippines — investing in its customers and in what matters most to them. Through this event, the Bank provides valuable information to arm business leaders and guide them in making sound business and financial decisions.

When the economic forum celebrated its tenth year in 2018, the Bank held its first regional economic roadshow where stakeholders from key business hubs in the country were able to hear from industry leaders first-hand. In the midst of the pandemic in 2020, the yearly event pivoted from a physical forum to an online event.

“As we keep a watchful eye on developments on the global [and local] stage, we remain very focused on helping our clients meet their goals for 2022. We look forward to continued collaboration with our partners as we all contribute to economic recovery,” said Sanjiv Vohra, Security Bank President and CEO.

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April inflation likely picked up — poll

May 2, 2022 | 12:34 am

A GASOLINE attendant fills a motorcycle at a gas station along T.M. Kalaw, Manila. — PHILIPPINE STAR/ RUSSELL A. PALMA

INFLATION likely accelerated beyond the central bank’s target in April, as food and oil prices continue to climb amid the ongoing Russia-Ukraine war and agricultural damage caused by Tropical Storm Agaton.

A BusinessWorld poll of 17 analysts yielded a median estimate of 4.6% for April inflation, matching the midpoint of the 4.2% to 5% forecast by the Bangko Sentral ng Pilipinas (BSP).

If realized, this would be faster than the 4% in March and the 4.5% in April 2021. It will match the 4.6% print seen in October.

April would also be the first time that inflation exceeded the BSP’s 2-4% target band since the 4.2% print in November 2021.

April inflation data will be released on May 5.

“Higher electricity rates in Meralco (Manila Electric Co.)-serviced areas, increased domestic petroleum prices as well as higher meat and fish prices are the primary sources of inflationary pressures during the month. Inflation pressures will also emanate from positive base effects. These could be offset in part by lower prices of fruits and vegetables and the broadly stable peso,” the BSP said on Friday.

Pump prices and electricity rates continued to rise in April, reflecting the volatility in global oil prices since Russia invaded Ukraine in late February.

China Banking Corp. Chief Economist Domini S. Velasquez said in an e-mail that inflation in April was driven by persistently elevated crude oil prices in the world market.

Year to date, gasoline, diesel and kerosene prices have increased by P18.45, P31.45, and P25.05 per liter as of April 26. A rollback in pump prices is expected on Tuesday, according to the Department of Energy (DoE).

In April, Meralco rates for typical households increased by around P107 due to rising generation charge. The overall rate for residential users in April inched up by P0.5363 per kilowatt-hour (kWh) to P10.183 per kWh.

“We have seen a broadening of inflationary pressures on other products in the consumer price index (CPI) basket, such as food…. This April, we will likely see higher food inflation partly driven by increasing transport costs and higher price of grains globally,” Ms. Velasquez said.

Security Bank Corp. Chief Economist Robert Dan J. Roces said inflation is likely to peak in the second quarter, before easing above 4% for the rest of the year.

“In terms of proportion, the food basket may have contributed approximately 1.4% to the headline inflation reading in April, while utilities gave 1.5% and transportation 1.0%. These estimates show that inflation remains mostly cost-push driven, and now fully reflects the effects of the Russia-Ukraine conflict on prices,” he said.

Makoto Tsuchiya, an economist at Oxford Economics, said inflationary pressure is expected to linger, given their forecast of “higher-for-longer global commodity prices,” which will affect the Philippines since it is a net commodity importer.

The agricultural damage due to Tropical Storm Agaton may also have temporarily pushed food prices higher in April, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Department of Agriculture estimated agricultural damage from Agaton reached P3.27 billion as of April 25.

Headline inflation in the first quarter stood at 3.4%, which is still within the BSP’s target. However, the central bank in March raised its inflation forecast for 2022 to 4.3%, cognizant of the effect of the Russia-Ukraine war on oil and commodity prices.

POLICY TIGHTENING?
The continued increase in commodity prices should strengthen the case for the central bank to begin tightening monetary policy, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

“Two years of exceeding the target means BSP should have hiked early last year since unlike our ASEAN (Association of Southeast Asian Nations) neighbors, the Monetary Board had clearly cut rates too low in 2020,” Mr. Neri said.

“The local economy’s recovery is clearly dependent on the reopening of the economy and has little to do with keeping interest rates repressive (or negative) or not,” he added.

The BSP has kept the 2% policy rate unchanged at a record low since November 2020.

Inflation quickened to 4.5% in 2021 from 2.6% in 2020, mainly due to low meat supply amid the African Swine Fever outbreak.

The economy expanded by 5.7% in 2021, a turnaround from the record 9.6% contraction in 2020. Economic managers expect GDP to grow by 7-9%, although the impact of the war may dampen recovery.

PNB economist Alvin Joseph A. Arogo said the central bank may go for a 50-basis-point (bp) increase for the rest of the year as recovery becomes more solid.

“We have a baseline forecast of two 25-bp rate hikes this year (25 bps on June 23 and another 25 bps on Sept. 22) on the assumption that the economy is poised to return to its pre-pandemic level by the second quarter of 2022,” Mr. Arogo said.

Security Bank’s Mr. Roces said the BSP could go as far as hiking rates by 75 bps and still be supportive of economic recovery.

“A 25-bp [increase] move this June is seen to remain ‘accommodative’ in the sense that it will still be far from the pre-pandemic rate of 4% yet enough to cover the differential versus the Federal Open Market Committee’s rate, remain supportive of credit recovery for productive purposes, and help rein-in local inflation as a preemptive measure for upside risks in the second half and beyond,” Mr. Roces said.

The US Federal Reserve raised policy rates by 25 bps in March. It is expected to hike rates by another 50 bps when the Fed’s meeting ends on May 4.

Last week, BSP Governor Benjamin E. Diokno said they may consider a rate hike in June as they expected strong economic growth in the first quarter.

First-quarter economic data will be released on May 12.

The Monetary Board will have its next policy review on May 19. — Luz Wendy T. Noble

Traditions compete with science for vaccine hesitancy among indigenous people in PHL

May 2, 2022 | 12:33 am

A health worker prepares a COVID-19 vaccine shot at a government vaccination site in Pasay City, April 25. — PHILIPPINE STAR/ RUSSEL PALMA

By Luisa Maria Jacinta C. Jocson

MARCELINO S. TENA, a tribe leader of the Dumagat community in Quezon province south of Manila, the Philippine capital, is wary of vaccines.

“Indigenous people (IP) are scared of injections,” he said in a Facebook Messenger chat in Filipino. “Since the coronavirus lockdown began, we IPs have been afraid of getting sick, infecting others and potentially dying of the virus.”

Members of the sea-faring indigenous group do wear face masks and keep their distance as a health protocol, but only when they leave their homes to go to the city.

“We don’t wear face masks in our community so we can continue to breathe the fresh air, fish in our waters and eat healthy food,” Mr. Tena said. “This is how we stay strong.”

More than 67 million of about 110 million Filipinos have been fully vaccinated against the coronavirus disease 2019 (COVID-19), about 13 million of whom were also injected with booster shots, according to the Health department.

In contrast, only 1.07 million of about 22 million indigenous people have been fully vaccinated, which is a concern as a fresh surge in infections are again sparking lockdowns in several countries including China, where the coronavirus is believed to have originated.

The government is racing to vaccinate more people as it reopens the economy and protect its population from future coronavirus variants.

The Philippines might experience another surge in coronavirus infections by May or June, similar to what other countries are experiencing now, according to the OCTA Research Group from the University of the Philippines.

Most indigenous communities follow health protocols, though they mostly stay in their areas, said Roda Tajon, a program coordinator at the Philippine Task Force for Indigenous Peoples’ Rights (TFIP).

“IPs feel safer in their communities,” she said in an e-mail. “They seldom go out and get exposed to infections.”

While indigenous peoples’ traditional lifestyles are a source of their resiliency, these can also pose a threat during a pandemic, according to the United Nations. “For example, most indigenous communities regularly organize large traditional gatherings to mark special events e.g. harvests, coming-of-age ceremonies, etc. Some indigenous communities also live in multi-generational housing, which puts indigenous peoples and their families, especially the elders, at risk,” it added.

In many areas in the countryside, indigenous tribes treat illnesses with herbal medicines found in their ancestral lands.

“These are found to be very effective and safe,” Ms. Tajon said. “Aside from using herbal medicines, they are seldom exposed to COVID-19 cases because they usually spend their days on the farm. It was only when outsiders and returning residents came that cases escalated.”

While the capital region experienced a slew of back-and-forth lockdowns, IP communities were, for the most part, untouched by the pandemic frenzy.

“Within our ancestral domain, especially in the inner barangays, the pandemic did not affect their lives that much,” Maria Angelica P. Umingli, an Isnag from Kabugao, Apayao, said in a text message.

When a surge did occur within the Isnag community, rural health and disaster agencies moved quickly to contain the outbreak.

Ms. Tajon said pandemic lockdowns had affected indigenous people’s livelihood and worsened their lack of access to social services such as healthcare given their remote locations.

“Without any health workers present, IPs opted for self-treatments to common illnesses,” she added.

Vaccine hesitancy in these communities is common, largely due to the lack of health education.

“IPs are hesitant in receiving vaccines because they’re afraid of the supposed side effects. The Dengvaxia scare and disinformation on social media are also not helping.”

In Palawan and Mindoro provinces, indigenous people are afraid to visit rural health units for common ailments such as cough and colds for fear that they could get diagnosed with COVID-19, Ms. Tajon said. Some in Luzon and the Visayas avoided seeking treatment because they might be required to undergo testing that they can’t afford.

“The lack of state healthcare workers for IPs also forced them to seek private doctors, which often left them indebted,” Ms. Tajon said.

In a study by the TFIP, pregnant indigenous women bore the brunt of the COVID-19 pandemic.

“Even before the pandemic, the ban on home birthing made it difficult for indigenous women to allocate resources and prepare,” according to the report.

Travel restrictions and testing requirements became more burdensome forcing them to leave their homes months before they give birth and stay with relatives.

Their companions, usually husbands, had to undergo antigen testing, which costs a lot. “Without enough resources, they barely get by and survive.”

Ms. Umingli said her community would have been open to traditional medicines and vaccinations if these were taught to them properly.

“Some are reluctant at first but with proper explanation and understanding, they were convinced and got their vaccine,” she said.

Apart from being ill-informed, there is also no extensive data regarding indigenous people affected by the pandemic.

“Disaggregated data could have provided more groups the significant information to support the efforts in the provision of medical and relief services,” Ms. Tajon said.

“Vaccine hesitancy is not the main cause of the low vaccination rate, but the accessibility of public health services and health education for the people,” Filipino Nurses United Secretary-General Jocelyn S. Andamo said in a text message.

Fear of vaccines among IPs is understandable, Maristela P. Abenojar, president of Filipino Nurses United, said in a Viber message. “This is an issue that must be addressed by the government by strengthening the public health system.”

Other health experts said the state should boost vaccination efforts and create an inclusive, nationwide health campaign.

“Unless virus transmission is stopped, no one will be safe from getting infected, and from the emergence of new variants,” Teodoro B. Padilla executive director of the Pharmaceutical and Healthcare Association of the Philippines, said in an e-mail.

“While vaccination is not mandatory, all efforts must be exerted to include the IPs as priorities, and address their specific needs and cultural backgrounds to secure their free, prior and informed consent,” he added.

The coronavirus has sickened 3.69 million and killed more than 60,000 Filipinos. Globally, half-a-billion people have been infected, with more than 6 million deaths, according to the Worldometer website, citing various sources including data from the World Health Organization.

“These figures show the catastrophic impact of COVID-19 on the lives and health of the people. Members of the IP communities have not been spared,” Mr. Padilla said

IPs should have access to correct information about the advantage of being vaccinated against COVID-19, Ms. Abenojar said.

Mr. Tena, the Dumagat tribesman, said the coronavirus is just a speck in a sea of government shortcomings. “COVID is not the biggest issue we face that is threatening our livelihood and way of life.”

Election spending seen to boost growth this year

May 2, 2022 | 12:32 am

election-poster — Election posters are seen in San Francisco del Monte in Quezon City, April 06, 2022. — PHILIPPINE STAR/ MICHAEL VARCAS

ELECTION-RELATED spending may boost the Philippine economy’s growth momentum this year, with media, advertising and services sectors seen benefiting the most, according to economists.

“In previous elections, election-related spending would spur the economy and an estimate of about 0.5% to 1% is usually added onto annual economic growth,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail. “I suspect the impact may be the same on an annual basis.”

Economic managers expect gross domestic product (GDP) to expand by 7-9% this year, after growing by 5.7% in 2021.

The gradual reopening of the economy, plus election-related spending, is expected to boost household consumption this year. However, higher oil and commodity prices may dampen consumers’ willingness to spend.

Mr. Asuncion said businesses involved in printing campaign materials and advertising usually benefit from election spending.

“Accommodation and transport sectors also get a fair share of election-related revenues,” he added.

Ateneo de Manila University Economics Professor Leonardo A. Lanzona said in a Viber message that there would be short-term gains in GDP for the services sector.

“However, towards the end of the year, this will eventually lead to inflation. Nevertheless, these outcomes may not be as the previous years since the government seems to have taken a neutral stance. We will have a better sense of the government’s activities later this week,” he said.

Ateneo de Manila University professor and former Socioeconomic Planning Secretary Cielito F. Habito on Thursday said elections in the past contributed about one percentage point to growth, although this could be less now.

“This time, in the sense, a lot of it going into expenses in both mainstream and social media and perhaps a large part of it in social media,” Mr. Habito said at the virtual Security Bank Corp. economic forum on Thursday.

The campaign period for the national elective posts started on Feb. 8, while those for local elective posts began on March 25. The campaign period ends on May 7, with the elections scheduled for May 9.

However, the Development Budget Coordination Committee (DBCC) in a report last December said the state spending ban before the elections may disrupt government infrastructure projects and delay reforms.

“The implementation of the government’s infrastructure projects may be disrupted, as public works and the release of public funds during the election period are prohibited under the Omnibus Election Code of the Philippines,” it said.

The ban on public works started on March 25 and runs until May 8. — Tobias Jared Tomas

Southeast Asia travel catching up as COVID curbs ease

May 2, 2022 | 12:31 am

SOUTHEAST ASIA is finally, tentatively throwing off the shackles of the coronavirus disease 2019 (COVID-19) and reopening for travel, with airlines filling an increasing number of seats as holiday-starved masses arrange overseas vacations for the first time in two years.

While the region lags other places such as North America and Europe that reopened sooner, the upward momentum gathered pace in April. Ticket bookings are rising as popular tourist destinations like Thailand, Malaysia and Indonesia allow quarantine-free entry for vaccinated travelers again.

“April has been a very important month for Southeast Asia,” said Gary Bowerman, director of travel and tourism research firm Check-in Asia. “The optimism is back, people are now thinking and talking about traveling the way they weren’t before. Just look at the search volumes that are happening.”

Google searches related to travel to Singapore have jumped, particularly from neighboring Malaysia, as well as Indonesia, India and Australia, according to data tracked by economists at Maybank Investment Bank Bhd. Searches rose by about 20% since the last week of March.

Air-passenger traffic to Singapore reached 400,000, or 31% of pre-COVID levels, in the week ending April 17 after most travel restrictions for fully vaccinated people were lifted at the start of the month, according to the country’s civil aviation authority.

In Thailand, where international tourism contributes about 15% to gross domestic product, the number of foreign visitors rose by 38% in March from February after a relaxation of requirements on testing and health insurance, according to the tourism ministry. Thailand eased entry rules for vaccinated travelers from April 1 and plans to replace mandatory polymerase chain reaction tests with antigen ones for foreign visitors on May 1.

The number of visitors to Thailand reached 358,364 from April 1-27, according to the Center for COVID-19 Situation Administration. Travelers from Singapore accounted for the most, followed by the UK, India, Germany and Australia. The government said on April 27 it expects tourism arrivals to reach 6.1 million this year, compared with only 427,869 in 2021. The figure was 40 million in 2019.

Flight reservations to Singapore climbed to 68% of pre-virus levels in the week of March 23, when the government said it was ditching most of its pandemic-related restrictions, according to travel data company ForwardKeys. That’s an increase from 55% the week before.

Singapore’s Changi Airport handled 1.14 million passengers in March, the first time the figure climbed above one million since the start of the pandemic, after PCR tests were replaced with supervised self-swabs from Feb. 22 and more countries were added to so-called vaccinated travel lanes that allowed quarantine-free entry for the inoculated.

There are expected to be 307 flights a week from Malaysia to Singapore at the end of May, more than double the 152 at the start of the year, according to data compiled by BloombergNEF. Flights from Indonesia to the island-state will quadruple from 55 to 222, while there are set to be 190 from India versus 100 in early 2022.

High oil prices could dent the rebound by making tickets more expensive, while there are also a limited number of flights and travel options available as airlines haven’t yet restored all their services. To the north, China remains closed off and Hong Kong still has a weeklong mandatory quarantine policy in place, a major deterrent to travel even after the city reopens to non-residents in May.

“There will be this initial buzz and then die down a bit after that novelty wears off,” said Hannah Pearson, Kuala Lumpur-based director of tourism consultancy Pear Anderson. “Right now, I think consumers are quite worried when they’re choosing a destination and they are looking for the easiest place to go.” — Bloomberg

DTI: SpaceX eyes launch of gateway within Duterte term

May 2, 2022 | 12:06 am

SPACE Exploration Technologies Corp. (SpaceX) led by billionaire Elon Musk is eyeing to launch the first gateway for its satellites in the Philippines before the term of President Rodrigo R. Duterte ends in June, according to the Department of Trade and Industry (DTI).

“SpaceX is setting up a business entity that will provide internet service through low earth orbit (LEO) satellites and is targeting to launch the first gateway for their satellites before the end of the term of President Duterte,” the DTI said in a statement on Sunday.

The gateway, or a ground station, is the facility that supplies the internet service as it connects to the LEO satellite internet constellation, called Starlink, which is operated by SpaceX.

SpaceX Government Affairs Senior Manager Rebecca Hunter said during a meeting with the DTI on April 20 that the company had started the process of registering and securing permits from relevant government agencies.

According to the DTI, the planned entry of SpaceX into the country was accelerated following the passage of amendments to the Public Service Act (PSA).

Trade Secretary Ramon M. Lopez said the law paved the way for SpaceX’s registration as a 100% foreign-owned business.

Under the amended PSA, the restrictions on full foreign ownership of businesses in key sectors such as telecommunications, shipping, airlines, railways, and subways were eased.

Previously, these sectors were covered by the 40% foreign equity ownership cap implemented by the 1987 Constitution.

Recently, the Authority of the Freeport Area of Bataan announced that SpaceX might establish its base of operations for Starlink in the province after a series of meetings with company officials.

In March, the DTI said it was eyeing to finish the entry of SpaceX in the country “as soon as possible,” adding that the Philippines will be the first location of the company in Southeast Asia.

The company first met with Philippine government officials in April 2021 to discuss investment plans.

Since then, SpaceX has been closely coordinating with the Board of Investments, Philippine Trade and Investment Center in New York, and other related government agencies for the necessary permits and certificates. — Revin Mikhael D. Ochave

Ayala Corp. targets to raise $1B to boost core businesses

May 2, 2022 | 12:05 am

DIVERSIFIED conglomerate Ayala Corp. is targeting to divest some assets and raise $1 billion by 2023 to fund future investments and to enhance core businesses in real estate, banking, telecommunications, and energy.

“Through 2023, we have committed to sharpen our portfolio with an increased focus on value realization to fund future investments and strengthen our balance sheet, targeting to raise $1 billion in proceeds by 2023,” Ayala President Fernando Zobel de Ayala said in a virtual meeting on Friday.

For 2022, Ayala is setting aside P285 billion for capital expenditure projects across its businesses, or an increase from its P196-billion budget last year.

“We have a renewed focus on sharpening our portfolio, taking into account the changes in the business landscape. We are working towards achieving a robust and agile portfolio that can deliver optimal returns across its components,” Mr. Zobel de Ayala said.

He said the move will be executed through “a combination of strategic partnerships and divestments of assets that are no longer strategic to our portfolio or do not meet the desired scale and profitability.”

As of March 2022, the company said it realized 61% or $614 million from the transactions through its energy arm, a follow-on offering, and from Manila Water Co., Inc., and through the sale of secondary shares to the Razon group, among other transactions.

“We have also executed a property-for-share swap with Ayala Land, which involved transferring five of our assets to Ayala Land in exchange of its primary common shares. Further, we have started the divestment of some of our passive investments in AC Ventures [Holding Corp.], which is an ongoing exercise,” he said.

The company also divested its entire stake in the Muntinlupa-Cavite Expressway Project to the Villar group.

To reach the remainder of the $1-billion target, Ayala will be working on divesting its remaining thermal assets, interest in the LRT-1, and some of its other non-core businesses.

“We have so far reinvested around $360 million of the value realization proceeds into value-accretive opportunities. Since last year, we have been taking advantage of attractive valuations to buy back Ayala and Ayala Land, Inc. shares,” Mr. Zobel de Ayala said.

“Going forward, proceeds will be redeployed to fund other investments and pay down debt. We hope to improve our gearing level and evaluate our dividend payout in step with the growth of our businesses,” he added.

In 2021, Ayala recorded a P27.8 billion net income, up 62.6% from P17.1 billion in 2020.

“We have seen most of our businesses performing better in our second year into the pandemic. Ayala Land, the Bank of the Philippines Islands (BPI), Globe Telecom, Inc., and AC Energy Corp. (ACEN) continued to be the core drivers of our earnings,” Mr. Zobel de Ayala said.

“Despite limited mobility, Ayala Land was able to capture the fairly resilient demand in its residential business and stable office leasing segment,” he added.

In 2021, Ayala Land’s net income rose by 40% to P12.2 billion.

The property developer has more than 12,000 hectares of land bank and focuses mainly on large-scale, integrated, mixed-use, and sustainable estates.

“Following the success of the Makati Central Business District, Ayala Alabang, Cebu Park District, Bonifacio Global City, and NUVALI, Ayala Land pioneers sustainability standards and practices in all of its developments and acts with integrity, foresight, and prudence as a responsible corporate citizen,” Mr. Zobel de Ayala said.

The company also achieved 100% carbon neutrality for its malls, offices, hotels, and resorts last year, subject to third-party verification in 2022.

Meanwhile, BPI reported a 12% increase in earnings were to P23.9 billion.

Mr. Zobel de Ayala said the bank views 2022 to be a recovery year due to elevated global and domestic inflation, he also said to expect higher interest rates.

“With higher interest rates expected to take place in the second semester, BPI sees an expansion in net interest margin of 15 to 20 basis points,” he said.

“We expect the bank’s loan growth to improve from the 5% posted in 2021 to around 7 to 10%in 2022. This will be driven by strong growth across credit card and personal loans, microfinance, and corporate loans. On nonperforming loans, BPI expects benign formation from the current 2.5% to a maximum of 3% NPL ratio,” he added.

The bank has 1,176 branches of BPI, BPI Family Savings Bank, and BPI Direct BanKo.

“BPI normalized its loan loss provisions as asset quality improved. In addition, it continued to leverage its digital leadership in banking, rapidly growing its digital ecosystem,” he added.

Ayala’s energy platform ACEN reported that profits increased by 22% to P5.3 billion in 2021.

It has 3,751 megawatts (MW) in total pro forma attributable capacity as of end-March 2022, of which approximately 3,300 MW or 87% is from renewable energy sources, mostly in solar and wind technologies, with some geothermal and battery storage assets.

As of the first quarter of 2022, 63% of ACEN’s assets are already operating, while 37% are under construction.

ACEN’s robust capacity platform puts it in a strong position to reach its 5,000-MW renewable energy target by 2025 even earlier, towards its vision of becoming the largest listed renewables platform in Southeast Asia.

Meanwhile, telecom giant Globe’s net income grew 27% to P23.7 billion.

The company has nearly 1 million AutoloadMax retailers, distributors, and business partners nationwide and services 86.8 million mobile subscribers, including fully mobile broadband, and 3.7 million Home Broadband customers.

“Globe has been able to build up GCash to reach significant scale and financial sustainability. At the same time, Globe is transforming itself into a digital solutions platform by providing products and services beyond traditional telecom services to address the evolving needs of consumers and enterprises,” Mr. Zobel de Ayala said.

Ayala said it will also be scaling up its emerging businesses Ayala Healthcare Holdings, Inc. and and AC Logistics Holdings Corp. to create “new sources of growth and value” and focus on enhancing its portfolio investments, including AC Industrial Technology Holdings, Inc., Manila Water, AC Infrastructure Holdings Corp., and AC Ventures.

At the stock exchange on Friday, Ayala shares went up by 0.75% or P5.50 to close at P737.50 apiece. — Luisa Maria Jacinta C. Jocson

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