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Netflix shares hit record as subscriber growth defies odds once again

SHARES of Netflix soared 13% to an all-time high on Wednesday after the streaming giant’s big bet on sports helped add a record 18.9 million subscribers in the holiday quarter, ballooning its already sizeable advantage over other players.

The company also unveiled price hikes on Tuesday in markets including the US, aiming to boost revenue just as it shifts focus from subscriber growth to other performance metrics such as sales.

“We thought it was a typo. Netflix defied the odds once again, delivering subscriber additions far beyond even the most unreasonable subscriber bogey,” Bernstein analyst Laurent Yoon said.

The company’s global subscriber base now exceeds 300 million, giving it a commanding lead in the streaming wars and more leverage in talks with marketing firms as it looks to grow its ad-supported business.

Netflix, already worth more than the combined valuations of rivals Disney, Comcast, Paramount, and Warner Bros. Discovery, was set to add more than $50 billion to its market capitalization of about $370 billion, if gains hold.

The stock hit a record high of $988 during early morning trading on Wednesday, paving the way for a potential stock split.

Its shares soared more than 80% last year, driven by Netflix’s expansion into live sports with content including a boxing match between Jake Paul and Mike Tyson, as well as the debut of popular National Football League games on Christmas Day — which included a half-time performance from popstar Beyoncé.

The Nov. 15 Tyson-Paul bout was the most-streamed sporting event ever and drove the most sign-ups for Netflix for any event since Antenna started tracking this data in 2019. Its strong content slate in the quarter also included the second season of Squid Game and the hit streaming movie Carry-On.

“Sports rights can be incredibly expensive and it makes sense that Netflix has opted to go with special events. Such events are also perfect for attracting advertisers keen to reach a large audience,” said Dan Coatsworth, analyst at AJ Bell.

Mr. Coatsworth, as well as several other analysts, said Netflix would now inevitably start bidding for other major sports rights. The company has already secured US broadcast rights for the 2027 and 2031 editions of FIFA Women’s World Cups.

NARROW REVENUE BEAT
The strong report, however, masked one concern: the subscriber surge did not translate into a similar spike in revenue. Sales rose 16% and were only around $100 million above estimates, while the subscriber growth was about twice the expected number.

The narrow beat could be attributed to both subscriber growth from lower average revenue per user (ARPU) countries and the significant number of sign-ups for the ad-supported tier, said Ben Barringer, technology analyst at Quilter Cheviot.

But he added that the already announced price hikes and those expected to roll out over the course of 2025 should boost sales.

This year, Netflix is expected to showcase new seasons of highly popular shows such as Stranger Things and Wednesday. It has already started streaming WWE RAW.

At least 24 analysts raised their price targets on the stock, bringing the median target to $1,025, according to LSEG data. The stock’s 12-month forward price-to-earnings ratio stands at 35.43 compared with Walt Disney’s 19.19. — Reuters

Central bank drafts guidelines for inquiries, account information sharing under AFASA

THE BANGKO SENTRAL ng Pilipinas (BSP) has released draft rules of procedure on the conduct of inquiry into financial accounts and the sharing of financial account information as part of the implementation of Republic Act (RA) No. 12010 or the Anti-Financial Account Scamming Act (AFASA).

In a draft circular posted on its website, the central bank said the rules are in line with the AFASA, which seeks to prevent and penalize financial cybercrime.

The BSP has the authority to investigate and inquire into financial accounts involved in prohibited acts or offenses under the AFASA, which was signed on July 20, 2024. These acts include money mule activities and social engineering schemes, which could be considered economic sabotage if it involves three or more people as perpetrators or victims, mass mailers, or human trafficking.

The central bank also has the authority to issue rules on information-sharing and disclosure with law enforcement and other competent authorities related to its inquiry and investigation of financial accounts under this law. These information shall be used solely to investigate and prosecute cases involving violations of the AFASA.

The central bank said in the draft rules that the BSP’s Consumer Account Protection Office (CAPO) is the body authorized to investigate and inquire into financial accounts and share financial account information with authorities for the implementation of the AFASA.

Under the rules, competent authorities — which refers to the Philippine National Police, National Bureau of Investigation, Department of Justice, Anti-Money Laundering Council, Cybercrime Investigation and Coordinating Center, or any government agency authorized to investigate or prosecute prohibited acts under the AFASA, as well as financial regulators authorized to investigate crimes or offenses related to their respective regulatory functions and adjudicate financial consumer complaints — must enter into an agreement with the BSP for the sharing of financial account information.

These financial account information include the account number, the account owner’s personal information, transaction records, and the documents submitted for opening or maintaining accounts, among others.

“The Consumer Account Protection Office (CAPO) shall only receive request to inquire into financial account from, and disclose financial account information to, a competent authority which has an existing information sharing agreement with BSP,” the central bank said.

“Any financial account information shared by BSP to a competent authority pursuant to these rules and duly-executed information sharing agreement shall be used solely to investigate and prosecute criminal cases for violations of a prohibited act, or, as may be applicable, to adjudicate financial consumer complaints.”

The information sharing agreement between the BSP and a competent authority must be in writing and notarized and contain the terms for the sharing of account information, measures to ensure data security and protection, and how parties can access the information, among others.

Institutions must also register the e-mail accounts they will use to communicate with CAPO.

The BSP also outlined the process for requesting an inquiry into financial accounts.

“An inquiry into a financial account may be initiated by a competent authority by filing with CAPO a request, upon its own determination that, based on the facts and pieces of evidence that it gathered, there is a reasonable ground to believe that a prohibited act has been committed and that a financial account was utilized or involved in its commission,” the central bank said.

A request for inquiry must include facts related to the suspected commission of a prohibited act under the AFASA, including but not limited to the date and time of the violation, details of the respondents and complainants or victims, the financial accounts involved, and information on how the account was used to commit a prohibited act. Requests should also include affidavits of the victims and witnesses and other evidence gathered by the competent authority during its investigation of an incident.

“The CAPO shall evaluate the request and its supporting documents. Upon determination that, based on the information and evidence provided in the request and supporting documents, there is sufficient ground to engender a well-founded belief that a prohibited act has been committed and that the financial account subject of the request was probably involved or utilized in its commission, CAPO shall forthwith issue an inquiry order indicating therein the financial account/s and financial account information subject of the inquiry; and directing the concerned institution to disclose the financial account information, and to allow the authorized personnel of CAPO full and immediate access to all records related to the financial account subject of the inquiry within a specified period of time.”

The CAPO will serve the inquiry order to the concerned institution electronically via their registered e-mail address, or via personal service, registered mail, or courier. Within three days from receipt of the inquiry order, the institution must submit to the CAPO a return providing all the financial information required in the order, along with other relevant documents. The institution must also immediately grant the CAPO full access to all records related to the subject financial account upon receipt of the inquiry order.

“Upon gathering all necessary information and receipt of the return from the concerned institution, CAPO shall furnish the competent authority its response to the request for inquiry into financial account containing the financial account information gathered by CAPO,” the BSP said.

Meanwhile, if the CAPO finds that a request for inquiry failed to establish sufficient ground on the involvement of the financial account in the commission of the violation, it will issue a notice to the concerned competent authority to correct or amend their submission within 10 days for reevaluation.

Failure to comply with an inquiry order or unauthorized disclosure of financial account information obtained for the investigation of violations of the AFASA shall be subject to criminal and administrative liabilities, the BSP said.

The CAPO also has the authority to apply for cybercrime warrants and/or to issue preservation orders related to the electronic communications involved in the commission of the prohibited acts under the AFASA, it added. — Luisa Maria Jacinta C. Jocson

Birthright citizenship stunt is classic Trump

JAKOB OWENS-UNSPLASH

ON TUESDAY, his first full day as president, Donald Trump attended an inaugural service at Washington National Cathedral. Episcopal Bishop Mariann Budde pleaded with the new president.

“In the name of our God, I ask you to have mercy upon the people in our country who are scared now,” she said. The vast majority of immigrants are not criminals, Budde said, but pay taxes and are good neighbors.

Trump scarcely looked at her. Trump is eager for a fight over immigration and has been for years. He has made no secret of his desire to restrict entry to this country and he won both the Electoral College and the popular vote.

A flurry of executive orders signed shortly after his inauguration on Monday aim to do just that. Among the most chilling: an attempt to override the 14th Amendment, limit birthright citizenship, and create a subclass of children who were born here, but who, through a cruel trick of timing, are not Americans.

The executive order takes effect in less than a month. Babies born in the US after that to undocumented parents would, Trump said, no longer be recognized by the federal government as US citizens.

Altering birthright citizenship has been high on Trump’s agenda for years. Nevertheless, it is shocking to see the scope. The order not only includes undocumented immigrants, but also includes legal immigrants whose status is considered temporary.

Hundreds of thousands who entered the US legally on student visas, the H-1B program for skilled foreign workers, or through refugee programs such as Temporary Protected Status would be subject to the same restrictions. No permanent status, no American citizen children.

Yes, the H-1B program needs a major overhaul. So do other temporary programs. But this ugly, punitive approach is hardly the way.

Ultimately, of course, this will be a matter for the Supreme Court. Trump, his hubris notwithstanding, lacks the power to alter the 14th Amendment, which explicitly states that “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States.”

Intended to guarantee citizenship for newly freed slaves, the amendment has long been interpreted as establishing birthright citizenship. That principle was affirmed in US v. Wong Kim Ark, the 1898 case of a Chinese American man born in San Francisco, but to Chinese citizens. The precedent set in that ruling has stood for well over a century.

Perhaps Trump thinks there is no way a Supreme Court with a conservative 6-3 majority — three of whom he appointed — would defy him on one of his signature obsessions. Maybe he thinks the longstanding precedent will matter little to the court that overturned Roe v. Wade in 2022, robbing women of reproductive rights guaranteed by the Constitution for almost 50 years.

Or perhaps he expects to fail — as many legal scholars anticipate — but still feels the gambit gives him a talking point and another way to blame opponents for thwarting him.

Forces are already gathering to oppose him. Twenty-two Democratic-led states are filing suit and injunctions will be sought. The American Civil Liberties Union has filed its own lawsuit.

They will be busy. The birthright citizenship ploy is just one part of Trump’s frontal assault on immigration. He has suspended the entire US Refugee Resettlement Program, believing that Biden admitted far too many refugees. Another executive order requires a plan that assigns the Defense department’s US Northern Command to seal the borders. Other actions canceled thousands of appointments with asylum seekers.

And although Trump’s border czar, Tom Homan, said before Trump took office that the administration would prioritize the removal of criminals, on Monday Trump specifically broadened enforcement beyond that narrow charge and removed earlier guidelines against conducting raids in schools, hospitals, churches, shelters, and more.

Trump clearly intends to wage a brutal campaign of “shock and awe” against immigrants, believing that the brutality itself sends the message to “keep out.” But more than immigrants will be brutalized as this unfolds.

After Bishop Budde’s plea to Trump went viral, Representative Mike Collins, a Republican from Georgia, posted on X that “The person giving this sermon should be added to the deportation list.” Budde, for the record, was born in New Jersey.

Trump has never understood or believed that immigrants are part of what makes America exceptional. Each wave of immigration has made its contributions, creating a mosaic of cultures that enliven this nation and expose us to new ways and new thinking. Have there been rough spots? Certainly. Do we need immigration reforms? Undoubtedly. Many Americans are frustrated with levels that seem to be rising beyond this nation’s capacity to adapt.  But this is not the thoughtful, humane reform many Americans seek.

I am a daughter of naturalized immigrants, and my father believed to his last day that this was the greatest country in the world and that his greatest gift to me was my American citizenship.

It saddens me to think that Trump’s America may well become a smaller, meaner place that turns its back on what makes this country truly great — its generous and welcoming spirit, constantly refreshed by the sweat and toil of newcomers seeking freedom.

BLOOMBERG OPINION

Arthaland infusing P710M into unit Zileya Land

ARTHALAND CENTURY PACIFIC TOWER — ARTHALAND.COM

ARTHALAND Corp. is infusing P710 million into subsidiary Zileya Land Development Corp. as part of acquiring a property for a new project.

The company is subscribing to 7.1 million preferred shares of Zileya Land at P100 apiece, Arthaland said in a regulatory filing on Thursday.

Zileya is in the process of completing the acquisition of a property that will serve as the location of a new unnamed sustainable development, Arthaland said.

The share subscription, approved by Arthaland’s board on Jan. 22, will be issued from Zileya Land’s proposed increase of its authorized capital stock by 20 million preferred shares at a par value of P1 per share, which is awaiting approval from the Securities and Exchange Commission.

Currently, Zileya’s authorized capital stock is P200 million, consisting of 1.5 million common shares with a par value of P100.00 each and 500,000 preferred shares with a par value of P100.00 apiece.

Arthaland will pay its subscription in full on or before March 31 and this will be recorded as deposit for future subscription in the meantime.

In its 2023 annual report, Arthaland said that Zileya Land is the investment vehicle used by the company to acquire 47.4% of a property, which will be the site for a residential project in Legazpi Village, Makati City.

Meanwhile, Arthaland said its board approved to lower its authorized capital stock by P10 million to P3.016 billion from P3.026 billion.

“The foregoing decrease in the authorized capital stock corresponds to the preferred shares Series C redeemed by the corporation on June 27, 2024,” Arthaland said.

Arthaland is a boutique real estate developer that has business interests in the development of residential, commercial, and leisure properties.

Some of its projects include the Arya Residences, Arthaland Century Pacific Tower, Cebu Exchange, Savya Financial Center, Sevina Park, and Lucima.

Arthaland shares were unchanged at P0.345 per share on Thursday. — Revin Mikhael D. Ochave

Berlin Film Festival organizers unveil 2025 competition lineup

BERLIN — Richard Linklater’s new feature about a Broadway composer, a documentary about young people in war-torn Ukraine, and a homage to 1960s’ spy films were among the films unveiled on Tuesday as part of the 2025 Berlin Film Festival’s competition line-up.

“This is a major A-list festival with a thriving market,” said new festival director Tricia Tuttle, with guests from more than 150 countries coming to the 75th edition of the festival.

The 19 films in contention for the festival’s Golden Bear top prize feature several directors making their return to the German capital, including Romania’s Radu Jude, with his new dark comedy Kontinental ‘25, and South Korea’s Hong Sang-soo with his languorous family comedy What Does that Nature Say to You.

Mr. Linklater, the US director known for Before Sunrise, makes a buzzy return to the festival after more than a decade with Blue Moon, about composer Lorenz Hart — the other half of famous songwriting team Rodgers and Hart — with an all-star cast including Ethan Hawke, Margaret Qualley, and Andrew Scott.

Reflection in a Dead Diamond is Belgium-based duo Helene Cattet and Bruno Forzani’s maximalist spy feature, while Dreams stars Jessica Chastain as an heiress who falls in love with a Mexican ballet dancer, and If I Had Legs I’d Kick You about a child’s mysterious illness features Rose Byrne along with late-show TV host Conan O’Brien and rapper ASAP Rocky.

Timestamp is Kateryna Gornostai’s observational documentary about life in Ukraine after Russia’s 2022 invasion marks one of the more overtly political entries this year.

POLITICS AS USUAL?
The Berlin Film Festival, which this year runs from Feb. 13 to 23, is considered more political than its peers — Cannes, Venice, Sundance, and Toronto.

“We do not shy away from this. It’s arguably in the DNA of the city itself and also in the festival itself,” US-born Ms. Tuttle told reporters.

The festival ends on the day of Germany’s national election, though Ms. Tuttle said it does not plan to mark the event in any way other than encouraging people to vote.

Outside the competition, Oscar-winning Parasite director Bong Joon-ho’s sci-fi Mickey 17 with Robert Pattinson will have its German premiere during the festival, as will James Mangold’s Bob Dylan biopic with Timothée Chalamet A Complete Unknown.

Ms. Tuttle took charge amid financial uncertainty at the festival, which had to slim down its program last year, and Berlin slashed its 2025 culture budget by millions of euros.

However, ahead of Tuesday’s news conference, Germany’s culture ministry said it would contribute an extra €1.9 million ($1.97 million) to the festival for its 75th anniversary.

That boost “allows us to deliver the festival with a balanced budget this year and… to relive the festival in the way that we want to in this anniversary year,” said Ms. Tuttle.

US director Todd Haynes heads the international jury that will award this year’s top prize. Run Lola Run director Tom Tykwer’s new film The Light will open the festival. — Reuters

K-12 graduates confront job growth hurdles — PBEd

PHILIPPINE STAR/ MIGUEL DE GUZMAN

GRADUATES of the K-12 program are encountering obstacles to career growth, highlighting the need to further align education with industry demands, the Philippine Business for Education (PBEd) said Thursday.

“Many individuals enter the workforce only to face limited opportunities for career growth. Even those with degrees often face dead ends in their careers and struggle to adapt to the evolving demands of the workplace,” PBEd Vice-Chairman Aurelio R. Montinola III said at a forum in Makati City.

PBEd has introduced the JobsNext program to equip participants with the skills needed for future jobs, focusing on fields like Information Communications Technology, digital marketing, cybersecurity, the green economy, and project management.

According to PBEd Executive Director Justine B. Raagas, K-12 graduates and even workers already in the labor force still find difficulty advancing in their careers due to the lack of skills necessary to rise to the “next level.”

To address this, she cited the need to tap training opportunities through upskilling programs and the gathering of micro-credentials while still working.

“This is happening in many global models and in many countries. People can learn while they’re earning and then they build their credentials. It becomes stackable. In fact, in other global models, it can be a diploma or it can be a higher-level certification,” she told reporters.

Additionally, Ms. Raagas said industries must also participate in recognizing and training students and workers for career growth.

A shift in mindset is also crucial to allow them to move up the ladder, she added.

She cited a PBEd survey that indicated that the share of employers willing to hire non-college graduates was initially only 40%.

“But then, with a lot of intervention and advocacy and getting them to take in senior high school students and graduates, it improved; it became 60%,” she said, noting that a mindset shift will only take place with the demonstration of a proof of concept.  

“The challenge now is that the current mindset has always been perpetuated because of an oversupply also of college graduates…But the mindset has also been perpetuated because it’s the easiest thing to do,” she added.

The JobsNext bill (House Bill No. 945), filed by Quezon City Fifth District Representative Patrick Michael D. Vargas, is currently going through the legislative process.

The measure aims to transform JobsNext into a nationwide upskilling initiative, including the introduction of a skills voucher program to motivate and support the upskilling and reskilling of the workforce.

According to the World Economic Forum, about 92 million jobs could be displaced by 2030 due to the emergence of artificial intelligence.

In the Philippines, 68% of workers will need training to keep up with evolving skill demands, but only 38% have received such training so far — significantly lower than the global average of 50%. — Chloe Mari A. Hufana

PhilFirst bullish on growth

PHILIPPINES First Insurance Co., Inc. (PhilFirst) is bullish on its growth prospects for this year, even as the nonlife insurance market remains “very competitive,” a top official said.

“We went through organizational changes with a new setup. I think this year is going to be a good year for us. With the changes and the new products that we have developed, I think growth is an assured thing,” PhilFirst Chairman Eusebio H. Tanco said on the sidelines of the nonlife insurer’s 119th anniversary celebration on Wednesday.

Mr. Tanco said he was “not very satisfied” with PhilFirst’s growth in 2024.

“Maybe because of my other companies. My other companies are all doing extremely well. Compared with the industry, we’re okay. But compared with my other companies, it was lagging behind. But it’s not doing bad. It can do much better,” he said.

PhilFirst is part of the Tanco Group of Companies’ Philippines First Insurance Group, along with life insurer Philippines International Life Insurance Co., Inc. (PhilLife), pre-need firm Philplans First, Inc. (PhilPlans), and health maintenance organization PhilhealthCare, Inc. (PhilCare).

The Tanco Group’s other businesses include Asian Terminals, Inc. and STI Education Systems Holdings, Inc.

Mr. Tanco said they hope PhilFirst’s two new nonlife insurance products will boost sales this year.

The insurer on Wednesday launched cyber and travel insurance products to mark its 119th anniversary.

“Our new initiatives continue the legacy of protection that PhilFirst has given to several generations of Filipinos,” PhilFirst President Jaeger L. Tanco said in a statement. “Celebrating 119 years is not just about looking back at our achievements. It’s about looking forward — adapting, innovating, and meeting the ever-changing needs of our countrymen.”

“The Personal Cyber Insurance is our way of safeguarding the online lives of Filipinos, while our Travel Insurance aims to make their adventures worry-free, especially as travel becomes more accessible and integral to many Filipinos,” the younger Mr. Tanco said.

PhilFirst Cyber Insurance covers identity theft, electronic fund transfer fraud, and online retails scams, the company said.

Meanwhile, PhilFirst Travel Insurance is targeted towards modern Filipino travelers, it said.

“The product comes at an opportune time as the World Travel and Tourism Council projects at least 25% annual growth in travel. PhilFirst partnered with a seasoned and stable provider to ensure a seamless claims process for its clients, making its Travel Insurance an essential companion for any wanderlust.”

The older Mr. Tanco said the nonlife insurance sector will continue to be “very competitive” as supply continues to exceed demand, with capacity way bigger than insurable assets.

“What’s scary about nonlife is natural calamity. There’s no market for it… But people will tend to look for natural calamity together with, say, attendant to fire, typhoon and flood and earthquakes,” he said.

“Premium will be a challenge because if people cannot get the cover that they want, even if they go abroad, it will be difficult for them. They have to pay a ridiculous premium.”

Mr. Tanco said they are also looking at cross-selling to boost their growth, as well as potential partnerships.

“Insurance is never a luxury. It’s a necessity.”

PhilFirst posted a net loss of P17.75 million in 2023, according to Insurance Commission (IC) data based on companies’ annual statements. Gross premiums written stood at P380.11 million, while net premiums written were at P178.31 million. Premiums earned totaled P170.35 million.

Meanwhile, the Philippine nonlife insurance sector booked a combined net income of P6.406 billion in the first nine months of 2024, up from P5.468 billion in the same period in 2023, IC data showed.

Gross premiums written were at P96.79 billion, while net premiums written stood at P53.13 billion. Combined premiums earned stood at P49.02 billion.

By line of business, bulk of the net premiums written by the industry in the period were for motor products, followed by fire and other casualty insurance. — A.R.A. Inosante

Beyond contrasting oceans

ANDREA FERRARIO-UNSPLASH

On a distant continent that spans the Pacific on the west and the Atlantic on the east, one can compare the constantly changing moods of the sea and sky.

Marvelous colors of the oceans inspire new visions and seascapes.

The autumn weather is capricious.

A late Indian summer’s day shows the northern Pacific as it shimmers silver-blue with white caps that race to the craggy cliffs of the coastline. The haze veils the distant island. Seagulls swoop and circle like flying acrobats. Sailboats and yachts skim as wave runners crisscross the wakes on the smooth surface of the water.

From the terrace of a cliff, one sees a splendid panorama of floating cumulus clouds on the cobalt sky.

One inhales the intoxicating sea air mingled with the fragrance of delicate roses and pine trees. The palm fronds sway and the chili bushes rustle in the breeze. On such a clear day, one can see beyond forever.

In the late afternoon, the hot yellow sun begins its descent against a canvas backdrop with splashes of orange, magenta, copper, and streaks of violet. A stunning river of gold ripples as the glowing orb dips into the sea. On some evenings, the stunning sun turns red as if a magic wand has transformed it into a ball of fire.

The luminous crescent moon rises gently to reign as queen of the velvet indigo sky.

Stars blink and twinkle into cosmic constellations.

The temperature drops 20 degrees, and the wind turns chilly.

The last vestige of summer is gone.

On the other coast, thousands of miles away, the southern Atlantic is a turbulent dark green and ultramarine with angry heaving waves.

The menacing mega storm bypassed the southern cities, but the fringe winds bring heavy rains with strong gusts.

The slate gray sky has charcoal clouds that unleash a torrential waterfall on the ocean. On the deserted beach, brave stragglers attempt to take photographs of the hurricane. Despite double red flag warnings, a few foolhardy surfers race precariously on surfboards atop 15-foot waves.

Trees tilt and are uprooted. Branches snap. Twigs and leaves fly haphazardly like lost arrows. The rain pours and collects in pools and puddles. It is wise to seek shelter and keep warm on such a wet and windy afternoon.

The next day, the sunshine brightens the beach. It acquires a different personality.

Seagulls and terns timidly emerge from their nests among the eaves, roof tops, and treetops. They circle tentatively low over the sea to catch their fish. Then they tiptoe on the sand, leaving prints and pointed patterns.

The once pewter sky is now a light cerulean blue with powder puff clouds floating above. The breeze smells like citrus eau de cologne.

A big wave suddenly rushes to shore. It topples and drenches a kneeling beachcomber. The dashing lifeguard rushes to rescue the damsel in distress. People stroll briskly along the shoreline. Gone are the debris and pools of yesterday’s storm. The beach has been swept clean by efficient service staff. The sand is almost spotless.

The gleaming Atlantic has translucent stripes of light emerald, jade, turquoise and sapphire. Jewel colors in the dazzling sunlight. Little kids build sandcastles, fly kites, as dogs chase rubber balls. The clear water is still so cold. Swimmers choose to stretch on colorful pareos to sunbathe.

On a lazy weekend, “Life is a beach” in this semi-tropical paradise. The only phenomenon missing is a rainbow after the storm.

The afternoon sky is turning dark blue with tinges of pale peach, brush strokes of copper, pink purple, and silver gray. The fading sun is veiled in the gauze of clouds as it sets gently on the horizon. This sunset is a muted wash of colors. It is a stark prelude to a magnificent moonrise.

At twilight, the full moon is a luminous white sphere that illuminates the sky. It has an eerie halo of light lavender clouds that radiate for miles around. A solitary star appears as a counterpoint — far from the circle. Close to midnight, one can discern the texture and terrain of the moon. Its craters and valleys resemble an abstract woven tapestry.

Moon bathing is energizing and nourishing for dreamers. It is like having a shower of stardust that makes one float to another dimension.

On another night, an orange harvest moon rises over the rooftops to claim the sky. Elongated shadows appear like phantoms in the dark corners of the park.

People gaze at the sky for celestial signs and falling stars.

The radiant, vibrant climate of the south has a positive effect on people. Where the sun shines, people are not prone to the Winter syndrome SAD (Seasonal Affective Disorder).

Nature displays her best colors and moods every season. And the symphony of the sea beckons.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Ayala Corp. says Larrazabal to step down as CFO, names Juan Syquia as successor

JUAN CARLOS “JOHN-C” L. SYQUIA

AYALA Corp. announced that Alberto M. de Larrazabal will step down as its chief financial officer (CFO) effective Jan. 1 next year.

Mr. Larrazabal, who is set to retire, will be replaced by seasoned banker Juan Carlos “John-C” L. Syquia, Ayala Corp. said in a regulatory filing on Thursday.

Ayala Corp. also appointed Mr. Syquia as deputy CFO effective May 1 this year. He will support Mr. Larrazabal before taking over the role next year.

“Mr. Syquia will be elected as deputy CFO of Ayala Corp. at the organizational board meeting following the annual stockholders meeting on April 25,” Ayala Corp. said.

Mr. Larrazabal became Ayala Corp.’s CFO in April 2021.

“We are pleased to have John-C join us at Ayala Corp. His extensive banking experience, strong financial acumen, and proven leadership give us great confidence that Ayala’s financial leadership will remain in very capable hands,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said.

Mr. Syquia is the current executive vice president and head of institutional banking at the Bank of the Philippine Islands (BPI). He has three decades of experience in corporate and investment banking.

Before joining BPI in 2016, Mr. Syquia held leadership roles at ING and Standard Chartered in strategy and business development, and running corporate finance and relationship management businesses.

Mr. Syquia has a Master of Business Administration in Finance and International Business from Fordham University and a Bachelor’s degree in Management Economics from the Ateneo de Manila University.

“I am very honored to join Ayala Corp. I look forward to working closely with Albert and the rest of the senior leadership team to drive Ayala’s pursuit of growth, innovation and nation-building,” Mr. Syquia said.

Ayala Corp. also confirmed the change in designation of Jose Rene Gregory D. Almendras to public affairs principal from senior managing director and public affairs group head, effective Jan. 1.

On Thursday, Ayala Corp. shares climbed by 0.35% or P2 to P572 per share. — Revin Mikhael D. Ochave

Stuff to Do (01/24/25)

Ayala Malls Cinemas screen Anora

THE acclaimed film Anora is now being screened at Ayala Malls Cinemas following a successful run as part of QCinema 2024. The movie follows a young American sex worker, Anora, who gets the chance of a lifetime when she meets and impulsively marries the son of a Russian oligarch. The fairy tale comes back to reality once his family finds out and forces them to get their marriage annulled. Anora is written and directed by Sean Baker, and stars Mikey Madison, Mark Eydelshteyn, Yura Borisov, Karren Karagulian, and Vache Tovmasyan. Its Philippine run is exclusively at Ayala Malls Cinemas.

Araneta City holds Chinese New Year events

ARANETA CITY in Cubao, Quezon City, will celebrate Chinese New Year with a variety of events. From Jan. 22 to 31, a prosperity bazaar will showcase charms and amulets at the activity area of Ali Mall. There will be a Chinese Horoscope Predictions Exhibit, running from Jan. 24 to 28 at the Quantum Skyview in Gateway Mall 2, the Gateway Mall 1 Activity Area, and the Farmers Plaza Activity Area. Those who want to see Chinese acrobats should come to Quantum Skyview on Jan. 29, 2 p.m., to see the Philippine Chung Hua School Child Performers and Chinese Acrobats. At the same time, the Flair Fashion Agency will be holding a Zodiac Runway at Farmers Plaza’s Activity Area.

Shangri-La Plaza holds Lunar New Year celebrations

CHINESE New Year festivities will be kicking off at Shangri-La Plaza in Mandaluyong City with a performance by the Filipino Chinese Dance Theater Company at the Grand Atrium on Jan. 24. Chinese metaphysics master Venus Wang will also grace the event to provide insights for the year. On Jan. 28, the mall restaurant Streetscape will have an Eye-Dotting Ceremony, a ritual that “breathes life” into a lion or dragon, giving it the power to bring protection and good fortune. A Dragon and Lion Dance will follow on Jan. 29, going around the different shops in the mall to bring luck and prosperity, also serving as the launch for the Spring Film Festival which will start that day.

Live music and short films at Quezon City

ON Jan. 28, 7 p.m., a pay-what-you-can event will be held at 88FRYER, on Panay Ave. cor. Timog Ave., Quezon City. It will feature live music and short films. Indie artists like the Cat Boy Jeepney Drivers, placi., 7 Days, Kaiser, Paro-paro at Bubuyog, Aaron Jimenez, and organizer wibomibo will perform onstage. There will also be screenings of short films by Ryan Capili, JT Trinidad, Glenn Barit, Sophia Isip, Jessa Sargento, and many more.

MCAD to screen period pieces for free

A COLLECTION of critically acclaimed motion pictures and TV series which transport viewers into the diverse timelines and landscapes around Asia will be screened for free at the Museum of Contemporary Art and Design (MCAD). Curated by TV and film production designer Sharon See, the selection highlights the significant role of scenography. Headlining the line-up is Shōgun (2024), a Japanese historical TV drama based on the 1975 novel by James Clavell, and directed by Rachel Kondo and Justin Marks, slated for Jan. 29. Next is Cigarette Girl (2023), an Indonesian historical epic romance series based on the 2012 novel of the same name by Ratih Kumala and helmed by filmmakers Kamila Andini and Ifa Isfansyah, set for Jan. 30. Finally, Gangubai Kathiawadi (2022) is an Hindi-language biographical crime drama film by Sanjay Leela Bhansali based on the 2011 book Mafia Queens of Mumbai by S. Hussain Zaidi, scheduled for Jan. 31. Free and open to the public, the screenings will be held at 12 p.m. on the scheduled dates at the MCAD Multimedia Room, De La Salle-College of Saint Benilde Design + Arts Campus, Dominga St., Malate, Manila. Interested attendees may register through tinyurl.com/MCADxMovingImage.

Calligraphy workshop at Yuchengco Museum

THE Yuchengco Museum is offering a calligraphy experience that aims to blend creativity with intention. In collaboration with Pen and Pause, they are inviting guests to explore the art of mindful writing, to “cultivate focus and clarity for the year ahead.” The workshop will take place on Jan. 30, from 6 to 8 p.m., at the Y Space at Yuchengco Museum, RCBC Plaza, Makati City. Tickets cost P2,200, while seniors, PWDs, and students get a discounted rate of P2,000.

Kenshi Yonezu debuts Gundam theme song

GLOBAL J-pop superstar Kenshi Yonezu has released “Plazma,” a new single and the official theme song to the latest installment in the iconic Gundam franchise, Mobile Suit Gundam GQuuuuuuX -Beginning-. The track features high-tempo synths and electronic rhythms to match the mecha universe and their epic space battles. It is the latest in a string of theme songs by Mr. Yonezu following his contributions to Hayao Miyazaki’s The Boy and the Heron, the Final Fantasy XVI video game, and his global hit theme for the Chainsaw Man series. “Plazma” is out now on all digital music streaming platforms.

US producer Knock2 releases debut LP

ELECTRONIC producer Knock2 has unveiled his long-anticipated debut album, nolimit. The 17-track release caps a breakout 2024 for the San Diego-native. It aims to reimagine dance music through a vintage lens, combining classic Y2K pop sounds with hip-hop inspired production. The LP includes the track “dance or dead,” Knock2’s collaboration with Thai pop singer MILLI. The record is out now on all digital music streaming platforms.

The dilemma of Philippine institutions

Healthy institutions are the cornerstone of any functioning democracy. They provide the framework for governance, ensure accountability, and uphold the rule of law. When these institutions operate independently, transparently, and effectively, they promote stability, contribute to development goals, and foster trust in governance. However, when subjected to political interference, particularly in the form of manipulation of funding and budgets, their integrity is compromised. Institutions contribute to stability especially in times of uncertainty.

As a former senior officer at the Development Bank of the Philippines (DBP), this writer was concerned about the effect of the P25 billion withdrawn from the bank in favor of the Maharlika Investment Fund. In the first place, the concept of a sovereign wealth fund works well when governments have budgetary surpluses or have little or no international debt. That not being our case, the Maharlika Fund had to be financed by drawing from existing institutions like the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines, and DBP.

The DBP is a key government financial institution tasked with supporting national development goals, particularly by financing infrastructure, small businesses, and rural development projects. The P25-billion withdrawal has far-reaching consequences. The DBP’s ability to provide affordable credit to priority sectors has been compromised. Sources for financing economic growth and development, particularly in underserved areas, have been further reduced. The smaller fund base could make it harder for the DBP to leverage additional funding from international or domestic sources, leading to higher borrowing costs.

The signs of DBP’s problems are starting to show. DBP is now seeking extension of regulatory relief from the BSP. With its strained liquidity position, adjustment to its capital adequacy ratio and common equity Tier 1 ratio are being sought. Although DBP executives clarified that the bank still maintains sound ratios, the call for comfort in regulatory relief shows that a safety cushion is necessary.

Banks are conscious of the need to keep their perception status in the community intact. Reputation risk is damage that can occur when it fails to meet the expectations of its stakeholders. Investors and borrowers might perceive DBP as financially unstable, leading to reduced participation in its programs and initiatives.

The Philippine Deposit Insurance Corp. (PDIC) was recently asked to remit P110 billion to bankroll programs and projects under unprogrammed appropriations in the 2024 General Appropriations Act. Although the PDIC president has asserted that its remaining reserve funds remain sufficient, the said withdrawal also poses several risks.

The PDIC plays a critical role in maintaining public confidence in the banking system by insuring deposits and ensuring the safety of the financial system. The reduction definitely affects its capability. What if a financial crisis of global proportions accompanied by a credit crunch gets into the picture? Nobody could have predicted the pandemic of 2020, and nobody can tell for sure if the remaining reserve funds will be sufficient. The PDIC needs to be strong to deliver in the face of shocks in this increasingly volatile world.

If depositors fear that the PDIC lacks sufficient funds, they may withdraw savings from banks, potentially triggering a contagion that results in a liquidity and banking crisis. The PDIC should be perceived as an anchor of stability, free and independent of political (government) interference.

If such withdrawals become regular practice, and even if only perceived as such, international observers and rating agencies may downgrade the stability of the Philippine banking system, making it more challenging to attract foreign investments. Hopefully, this doesn’t happen, but the withdrawal shows PDIC funds are not immune to government interception.

The zero-budget allocation to PhilHealth represents another case of institutional weakening. In the first place, the national subsidy to PhilHealth is mandated by the Universal Health Care Law. With the non-implementation of the law (a legal issue), funding will now only rely on direct contributions and its reserve fund. As an insurance agency, PhilHealth is required to have reserve funds. Is it sufficient, especially with reports that PhilHealth allegedly has billions of obligations from claimants?

Expectedly, PhilHealth management claims their funds are sufficient. However, the absence of subsidies will definitely affect its future needs. The actuarial sufficiency of present reserves needs to be studied. Health, after all, is a fundamental right. A perception that the government is neglecting healthcare can lead to widespread dissatisfaction and social instability.

The withdrawal of funds from these key institutions sends a dangerous signal to the public and other institutions. Financial instability in one institution creates a domino effect, eroding trust in others. Institutions like the DBP and PDIC play crucial roles in economic stability. The PhilHealth case affects everyone. Their financial weakening would deter investments, reduce job creation, slow economic growth, and erode public trust.

Safeguarding these institutions should be a concern for the informed public. Civil society organizations and media play an essential role in exposing attempts to undermine institutions. Budgets for critical institutions should be allocated through a transparent, non-partisan process. Institutions should be strong to deliver their mandates decisively and outside of the push and pull of politics.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.

Trump’s tariffs and their effect on the Philippines

FREEPIK

The worry, of course, is that Donald Trump — who took his oath as the US’ 47th president last Tuesday — would increase tariffs on various countries and that (ostensibly) includes the Philippines.

China, Canada, and Mexico are the clear targets of Trump’s tariff pronouncements and whether these are merely for negotiating leverage remains to be seen. There are indications that the increased tariffs on such countries would — at least in the short term — benefit Southeast Asian countries like Thailand, Vietnam, and the Philippines.

The logic of increasing tariffs seems counterintuitive, to say the least, particularly as far as classic economic theory is concerned. But the gamble is that by imposing tariffs instead of income taxes, the average US citizen will be forced to buy local, thus freeing up additional cash, while encouraging local production.

As for the Philippines, keep in mind that our simple average Most-Favored-Nation applied tariff rate (as of 2022) is around 9.8% for agricultural products and 5.5% for non-agricultural products, with 67.6% of its tariff lines bound as per World Trade Organization commitments, with a simple average final bound tariff rate of 24.9%. US tariff rates, at least as for 2021, hover around 1.47%.

In any event, the Philippines seem to be quite “insulated” as far as the afore-described tariff shocks are concerned. As reported by BusinessWorld (“PHL most insulated to Trump tariffs among ASEAN — HSBC,” Jan. 9): “The Philippines is the most insulated from US President-elect Donald J. Trump’s planned restrictive policies among Association of Southeast Asian Nations (ASEAN) economies, HSBC said. ‘Across ASEAN, the Philippines is the most resilient country amidst these tariff risks,’ HSBC economist for ASEAN Aris D. Dacanay said xxx and ‘Vietnam, Thailand, these are the countries exposed to the risk of US tariff rates. But for the Philippines, we are very insulated from that risk’.”

There is the 1989 Philippine-US Trade and Investment Framework Agreement (TIFA), which sought to implement Philippine minimum access commitments, as well as address issues relating to illegal transshipments of textiles, trade facilitation, and intellectual property rights.

It would definitely help if the Philippines achieved the renewal of its Generalized System of Preferences (GSP) benefits: “Under the US GSP, the Philippines enjoys duty-free treatment for products covered by 3,500 US tariff lines. Philippine utilization of US GSP is steady at an average rate of 74%, estimated at $1.3 billion on average from 2005 to 2020.” (“Philippine-United States Trade Relations: Looking Back and a Way Forward,” East-West Center, June 2022).

The GSP “is the oldest and largest US trade preference program, authorized in 1974 and subsequently renewed 14 times. Once an anchor of US international economic relations with developing countries, GSP promoted economic development through the duty-free entry to the United States of over 3,500 non-import sensitive products from 120 beneficiary developing countries around the world. However, the program lapsed in December 2020 and has yet to be renewed.”

The Philippines, specifically, was the “fifth-largest beneficiary of GSP in the world,” with “$1.6 billion worth of GSP exports to the United States in 2020, bolstering the US relationship with a geographically strategically invaluable partner in the South China Sea. During its tenure, GSP benefited micro-, small, and medium-sized businesses in the Philippines, driving job growth and making the Philippines a more advantageous sourcing location for US manufacturers and consumers who sought to diversify their supply chains from China. The country also saw the growth of important emerging sectors, including its travel goods manufacturing industry. Over the past four decades of GSP authorization, US-Philippine trade grew enormously, rising from $532 million in 1962 to $16.8 billion in 2020. When GSP lapsed in 2020, the United States was the second-largest market for Philippine exports and the third-largest for imports.”

And yet, the US’ renewal of GSP benefits the latter, inasmuch as it rebuilds “strong relations with emerging economies. While there is increasing momentum in Congress toward reinstating GSP, the process has been lumbered by debates over various amendments. Reauthorizing GSP by 2025 is a prerequisite for the United States to push back against China’s development offensive financed through its Belt and Road Initiative (BRI).” (“Retooling US Trade to Meet the China Challenge: GSP Matters,” CSIS, November 2024).

Ultimately, what is crucial is Philippine competitiveness and here the Philippines is on stable ground. The Switzerland-based Institute of Management Development (IMD) in 2024 retained the Philippines’ rank of 52 despite adding three countries from the previous year, with high marks in “employment,” “tax policy,” and “domestic economy.”

Obviously, improvements are necessary: the Philippines merely ranks 13th among 14 Asia-Pacific countries, and had dismal showings in “business legislation,” “basic infrastructure,” and “education.” Challenges are seen too in the capability for “job-generating investments,” “inflation,” and “infrastructure.”

There are also the uncertainties brought about by China’s continued blatant bullying in the West Philippine Sea, which speaks to the fact that while indeed “economic security is national security,” the reverse is also true.

The views expressed here are his own and not necessarily those of the institutions to which he belongs.

 

Jemy Gatdula is the dean of the Institute of Law of the University of Asia and the Pacific and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

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