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PHL needs to spend better, collect more taxes — World Bank

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter 

THE PHILIPPINE government needs to roll out a fiscal consolidation plan based on the right mix of expanded taxation and productive spending to manage debt racked up during the pandemic, a World Bank economist said.

“To regain policy space, the government will need to start a gradual, fiscal consolidation process,” World Bank Senior Economist Rong Qian said at a Management Association of the Philippines briefing on Thursday. 

“We know from past experience of rapid debt accumulation, countries will need to use a combination of revenue and expenditure measures to reduce the debt-to-GDP ratio. Relying on growth alone will not be enough.”

The Philippine government ramped up borrowings to finance its coronavirus pandemic response in the past two years. The government recorded P11.73 trillion in outstanding debt as of end-2021, growing by 19.7% year on year, preliminary data from the Treasury showed.

This meant the debt-to-GDP ratio is now at 60.5%, higher than the 54.6% a year earlier and slightly above the 60% threshold considered as manageable by multilateral lenders for developing economies. It is also the highest debt-to-GDP ratio since the 65.7% seen in 2005.

Ms. Qian said the pace of fiscal consolidation needs to be studied.

“Too fast consolidation might slow down growth, which will be counterproductive to reduce debt-to-GDP ratio,” she said. “Too slow, it will dampen confidence on government’s commitment to consolidate, while the higher interest payment will prevent productive investment.”

On the revenue side, the government can introduce new taxes, increase existing taxes, and expand tax collection.

As for spending, the government could spend less in areas that produce fewer jobs so it could spend more in areas that do, such as education. The government could also spend better by trying to use fewer resources to get the same outcome, Ms. Qian said.

“Finding the right mix to achieve the inclusive growth agenda needs to be a priority for the next government,” she added.

Finance Secretary Carlos G. Dominguez III has said that the Finance department is reviewing a possible fiscal consolidation plan.

Policy priorities for the Philippines offered by the World Bank also include continuing sound monetary policy, Ms. Qian said, adding that the central bank can closely monitor global recovery so it could continue to keep inflation within target while supporting economic growth.

Inflation eased to 3% in January, the fifth straight month of deceleration, as housing and utilities prices eased, preliminary data from the Philippine Statistics Authority showed. 

This was slower than both the 3.2% in December and the 3.7% in January last year.

The Philippines should also return to face-to-face schooling, improve the country’s access to finance, reduce the barriers to entry of foreign firms, and expand the use of technology, the multilateral bank said.

“Private sector will play an even more important role to drive growth going forward,” Ms. Qian said. “There’s a need to improve access to finance, especially for SMEs (small and medium enterprises), by improving credit information systems, enabling digitalization.”

The government expects the Philippine economy to grow by 7-9% in 2022, while the World Bank’s projection is at 5.9%.

The Philippines could grow faster than recent years amid the potential of agriculture growth, Brain Trust, Inc. Chair and former Socioeconomic Planning Secretary Cielito F. Habito said at the same event.

“There’s much hope for further growth if only we would have a much more outward-looking orientation in the sector,” he said. “We can grow on the fact that we have a large segment of internal demand driving our economy… but now is the time to tap that potential for growth from the world markets.”

Philippine democracy remains flawed amid pandemic 

PHILIPPINE STAR/ MICHAEL VARCAS
The Philippines received a score of 6.62 in the Economist Intelligence Unit (EIU) Democracy Index 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES jumped one spot to 54 out of 167 countries in a London-based think tank’s democracy index last year, as the coronavirus pandemic resulted in an “unprecedented withdrawal” of civil liberties in both developed democracies and authoritarian regimes.

Based on the Economist Intelligence Unit (EIU) Democracy Index 2021, the Philippines under President Rodrigo R. Duterte received a score of 6.62, an improvement from 6.56 in 2020.

The EIU classified the Philippines as a “flawed democracy,” along with nine other countries in Asia.

Philippines climbs by a notch in democracy ranking in 2021

The average regional score in Asia and Australasia dropped to 5.46 in 2021, from 5.62 in 2020, a second straight year of decline and the region’s lowest score since 2006.

The Philippines lagged behind Southeast Asian neighbors Malaysia (39) Timor Leste (43), and Indonesia (52), but ahead of Singapore (66), Thailand (72), Vietnam (131), Cambodia (134), Laos (159), and Myanmar (166).

European countries dominated the “full democracy” classification, with Norway topping the global index with a score of 9.75, followed by New Zealand (9.37), Finland (9.27), Sweden (9.26), Iceland (9.18) and Denmark (9.09).

On the other hand, Afghanistan and Myanmar displaced North Korea at the bottom of the list.

The EIU said the pandemic has compounded many pre-pandemic threats to democracy, citing an increasingly technocratic approach to managing society in Western democracies and a tendency in many backward democracies and authoritarian regimes to resort to coercion.

Maria Ela L. Atienza, a political science professor at the University of the Philippines, said Philippine democracy has been weakened by “too much concentration of powers in the Executive branch” under the current administration.   

“While not the only culprit, President Duterte and his administration have concentrated too much power in his office, threatening the rule of law and the independence of the Judiciary, relying too much on punitive measures and the powers of the military and the police, violating human rights and media freedom, and attacking those labeled as opposition,” she said in a Viber message. 

Ms. Atienza said the government relied heavily on a militarist approach for its pandemic response.   

“The response has also put the blame largely on people who violate the laws but at the same time, those quickly rounded up and punished are poor people who were affected heavily by the pandemic, community organizers and activists while rich people and administration allies who violate health protocols are given a lot of leeway,” she said.

The political analyst said the next administration needs to ensure that government officials and agencies are “accountable to the people and can be checked by other branches and sectors.” 

DROP IN GLOBAL AVERAGE
The EIU said the global average score took a big hit for a second consecutive year, falling to 5.28 from 5.37 in 2020. This was the worst global score since the index first came out in 2006.

Less than half or 45.7% of the world’s population now live in a democracy of some sort, a significant decline from 49.4% in 2020, according to the report.

It said only 6.4% of the world’s population live in full democracies or countries that provide their citizens civil liberties and political freedoms as well as an effective government and political culture.

More than a third of the population live under authoritarian rule, many of them in China.

EIU said China is set to become the world’s largest economy by 2030, which may result in the spread of authoritarian rule around the world and a rollback of democracy globally.   

Mr. Duterte led a foreign policy pivot to China and away from the US when he took office in 2016.

However, less than a year before he steps down, Mr. Duterte appears to have changed his tune. He has thanked US President Joseph R. Biden for donating coronavirus vaccines to the Philippines and restored a visiting forces agreement after suspending it for months. 

UP’s Ms. Atienza said it would be difficult for the next government to continue Mr. Duterte’s foreign policy pivot to China since the majority of Filipinos have unfavorable attitudes towards the Chinese government. 

“While China is an economic power, it has not been successful in forging greater people-to-people exchanges and interactions, though it is trying, compared with other powers that are able to establish strong linkages not only with national elite but with the people themselves,” she said.

Japanese Film Fest returns online

THE JAPANESE Film Festival (JFF) returns this year with a virtual edition, featuring 20 films depicting Japanese culture across different time periods.

The online film festival runs from Feb. 14 to 27 through its online website, https://watch.jff.jpf.go.jp/.

In March last, the film festival was held in a mixed physical and online setup. This year it will be held purely online. Formerly known as Eiga Sai, the festival — which has iterations in other Southeast Asian countries, India, Russia, and Australia — was rebranded as the Japanese Film Festival.

According to the film festival’s website, the first online film festival, called JFF Plus: Online Festival 2020-2021, recorded more than 220,000 views from 20 countries worldwide.

“Films have intangible impacts on our society. We watch films to be entertained, to be educated, to escape from the humdrums of daily life, and to travel beyond space and time,” Ben Suzuki, director of the Japan Foundation Manila, said at an online press conference on Feb. 8.

Mr. Suzuki added that “films are a powerful vehicle for cultural exchange and bilateral relations” and “strengthen ties between Japan and the Philippines through moving images.”

“We are working to expand our activities to the world from both the physical and online perspectives,” JFF producer of Japan Foundation Tokyo Masafumi Konomi said, speaking through an interpreter.

This year’s film festival lineup includes Japanese drama, comedy, animation, thriller, documentaries, and classics.

The dramas are: Takafumi Hatano’s Ozland (2018); Yuichiro Hirakawa’s Until the Break of Dawn (2012); Yukiko Mishima’s Bread of Happiness (2012); Satoko Yokohama’s Ito (2021); Takeshi Furusawa’s ReLIFE (2017); Yukiko Sode’s Aristocrats (2021); Miwa Nishikawa’s Under the Open Sky (2021); Soushi Matsumoto’s It’s a Summer Film! (2021); Ryota Nakano’s Her Love Boils Bathwater (2016); Shuichi Okita’s The Chef of South Polar (2009); and Atsuhiro Yamada’s Awake (2020).

The documentaries are Takashi Innami’s The God of Ramen (2013), and Eiji Sakata’s SUMODO: The Successors of Samurai (2020). The animated films are Yasuhiro Yoshiura’s Time of EVE the Movie (2010); and Patema Inverted (2013). The period dramas are Isshin Inudo and Shinji Higuch’s The Floating Castle (2012); and Haruki Kadokawa’s Mio’s Cookbook (2020).

The other films are Hisashi Kimura’s thriller Masked Ward (2020); Shinobu Yaguchi’s comedy Happy Flight (2008); and Akira Kurosawa’s classic Rashomon (1950).

The films have subtitles in Arabic, Burmese, Central Khmer, English, German, Hungarian, Korean, Indonesian, Italian, Malay, Portuguese, Spanish, Thai, and Vietnamese. Each film will be on view for 48 hours upon its premiere.

In addition to the film screenings, there will be online discussions under the heading “Let’s Talk about Japanese Films!” These will be available to interested participants even outside the Philippines. Joining the discussion are film professionals who will talk about the influences of Japanese cinema in the Philippines. The first online discussion, “Your Guide to Japanese Films,” will be held on Feb. 14, 2-4 p.m.; while the second discussion, “Inside the World of JFF 2022 Films,” will be on Feb. 22, 5-7 p.m.

Details on the films, and registration to the online discussions are available on the JFF+ portal website (https://jff.jpf.go.jp/watch/jffonline2022/philippines/). For more information, visit www.jfmo.org and Facebook. — Michelle Anne P. Soliman

Jennifer Lopez has rom-com ‘homecoming’ with Marry Me

A SCENE from the film Marry Me — IMDB.COM

LONDON — Jennifer Lopez plays a familiar role in the new film Marry Me, portraying a pop superstar whose love life is scrutinized by millions.

Often snapped by photographers herself, in the movie Ms. Lopez plays Kat Valdez, half of a music superstar couple with her partner Bastian.

The two plan to wed in front of a global audience, streaming their nuptials to their fans, but shortly before, Kat learns Bastian has been unfaithful and instead marries a stranger in the crowd, Charlie, played by Owen Wilson.

“This wasn’t a role where I had to research what it was like to be a famous recording artist … I understand what all of that is already,” Lopez said during a virtual press conference.

“The difficult part was… the idea of showing what it’s really like inside my bedroom when something goes wrong and you suffer a heartbreak like this in front of the whole world and the media kind of goes to town on you.”

Released in time for Valentine’s Day, the movie is a rom-com “homecoming” for Lopez, known for films like Maid in Manhattan, The Wedding Planner, and The Back-up Plan.

“I, as a moviegoer, love romantic comedies. Those are some of my favorite movies of all time, whether it’s When Harry met Sally or Prelude to a Kiss or any of these type of movies,” Lopez said.

“All of those movies are what I grew up on in a way, and I love them so much. And so it is kind of a homecoming for me because I haven’t done one in a few years.”

Colombian singer Maluma makes his acting debut in the film, playing Bastian.

“We both love music. We both love touring, (performing) and everything. So, I felt pretty connected,” he said of his character, though dismissing Bastian’s unfaithfulness.

“I enjoyed … the experience of being in the movie … even making the music was beautiful too.” —  Reuters

Init sa Magdamag, 40 years later

Critic After Dark Noel Vera
Movie Review
Init sa Magdamag
Directed by Laurice Guillen
A restored version of this film
is available on Vivamax.net

(Warning: details of the plot discussed in explicit detail)

THE FILM starts wordlessly in a hotel suite, with Mr. Eleazar (Ding Salvador) humming “Bessame Mucho” as he disrobes and Irene Trejon (Lorna Tolentino) sitting in her bubble bath. She hears a gasp and solid tonk! pulls the shower curtain aside, sees Mr. Eleazar on the floor, sees the slow-pooling blood.

Shock and dismay. Cut to a fully dressed Irene glancing back before leaving through a pair of sliding doors. The camera pauses to wander over the TV set, the furnishings, the bed with its immaculate dustcover (Why immaculate? Because they hadn’t had the chance at sex), before returning to the gaping door, a lingering languorous shot that both opens and sums up the film: empty room, sordid scenario, camera following the departed woman into the dark — into the depths, so to speak, of the woman’s psyche.

The woman again, this time putting on her face before a mirror, kissing her sleeping boyfriend goodbye. We follow as she takes up a position behind a bank counter and learn her name: fresh hire Becky Claudio, summoned by Mr. Perez (Leo Martinez) to his office to fill in gaps in her employment record. Like Laurice Guillen’s camera, Mr. Perez uncovers little: she worked with Felix Wear — now bankrupt — and her boss can’t give references because he’s emigrated to Canada. The interview is comically awkward; Mr. Perez is intrigued and wants sex, but hasn’t the guts to ask.

Next is boyfriend’s turn: in a series of languorous long takes atop a bed we watch Armand (Joel Torre) grill Becky on her past. “How many boyfriends have you had?” “Six.” “I’m seventh?” “Seven is a lucky number.”

Armand doesn’t like her answer. Becky relents to only two — can’t remember anything about her first. “We broke up. That’s how stories end, right? I forgot him, he forgot me.”

Irene later Becky later Leah Sanchez is Guillen and writer Raquel Villavicencio’s woman protagonist; as incarnated by the cabal’s third member Lorna Tolentino, she’s a catlike chameleon of a creature difficult to pinpoint in space and time, affix to a definite image. Darkly handsome Jaime (Dindo Fernando) learns this to his dismay: he notices Leah, turns briefly away, and she’s gone. “You play the game well,” Jaime tells her when he finally catches up. “What game?” Leah asks. “Cat and mouse.” “Are you married?” “Aren’t we all? But my wife’s abroad.” “So that’s it; when the cat’s away the mice will play.” “But I’m the mouse,” Jaime insists. “You’re the cat, you’re too inquisitive,” says Leah, adding “but you know everything.”

“Except about you,” says Jaime. “What do you want to know?” Leah asks. “Everything,” Jaime replies. “Nothing.” Leah is as quickwitted a conversationalist as Jaime and his superior at hide and seek — she has to be, to evade predators. Guillen’s camera follows as Leah slips in and out of the frame, “follow” being the operative word: like Jaime, Guillen’s camera has trouble keeping up.

Stories and games; stories with Armand, games with Jaime. Becky tells Armand the story of seven boyfriends; he’s displeased, so she knocks the number down to two (including him); Leah and Jaime flirt in the playful tone of carnivores sizing each other up for the kill; later Jaime reminds Leah of this — that she’s a good player, perhaps the best he’s ever known.

As Irene becomes Becky becomes Leah, Guillen marks each transition with water imagery, with Irene pushing aside a glass door (vertical sheet of frozen water) to depart; with Becky peering into a mirror (rectangular sheet of reflective water) to check the fresh face gazing back, later rinse away yet another discarded persona in the shower; with Leah emerging from seawater (amniotic fluid) to be reborn.

You wonder at all the water, not just literal moisture but the translucent reflective surfaces revealing reflecting refracting Irene Becky Leah back at themselves and us — revealing reflecting refracting the mercurial creature men — and Guillen’s camera — pursue at their peril.

Her nights are punctuated by a recurring dream: Irene in a bathtub, humming (she’s always trying to cleanse herself); the shower curtains pull aside. “It’s over,” she says, smiling; Becky (and later Leah) wakes with a gasp. As the film progresses Irene stops delivering the line and the dream grows shorter and shorter, suggesting a life accelerating towards some yet unknown destination.

Guillen, a master of onscreen sensuality (see her breakout feature Salome) realizes the handsome production (design by Benjie de Guzman, art direction by Jerome Beley) with some of the most graceful camera movements (by Romy Vitug) and fluid editing (by Efren Jarlego) this side of Nagisha Oshima. Call this a prototype of what will soon be recognized as the glossy Viva melodrama, the glossiness an empty sheen if it wasn’t for Raquel Villavicencio’s finely crafted script.

The reigning genre nowadays is the romantic comedy and from the sheer volume churned out you’d expect our writers to have mastered the art of sexy banter, but no — today’s lovers sound barely educated, much less sophisticated. Villavicencio’s dialogue is in the tradition of Danny Zialcita and Ishmael Bernal’s musical-bedroom farces, with lines so finely honed they gleam like a knife display. “Are you married?” Leah asks when approached. “Is that still important?” asks the man. “Not to me,” Leah replies. “Not sure about your wife. I don’t want a scandal.” Step back to savor the stench of burning fuselage.

Perhaps Leah’s only real match is Jaime. “I’ve yet to see anyone happily married, have you?” she asks when Jaime proposes. “I might see more if people married for sex instead of love,” Jaime responds, “I know someone at work who likes to say ‘there’s more to sex than love.’” One may be reminded of Oscar Wilde’s fondness for flipped moral platitudes, and wonder why we don’t write dialogue like that anymore.

Call Guillen, Villavicencio, and Tolentino’s collaboration a masterclass in adult (as opposed to adolescent) entertainment, but there’s a dead-serious subtext: Irene Becky Leah conform and deform themselves according to the man’s wishes. “How many boyfriends have you had?” Armand asks; when he doesn’t like the answer, she knocks the number down to two. Jaime isn’t as naive but his jealousy is darker, his “games” more demanding. Of Mr. Eleazar we know little but we can be sure he had his own kinks, which Irene ably caters (“she makes hungry / Where she most satisfies”). Each persona costs time and effort to create and each must be washed away like so much congealed makeup before donning a new one. Some psychic baggage — that recurring dream for one — isn’t easy to abandon.

The thesis is a subtle one that feminists at the time struggled to accept. The kneejerk reaction was to glare at the protagonist and call her a slut; the more thoughtful response was to point her out as a negative example, ignoring the fact that she’s a victim despite her deceitful, manipulative ways (that because she’s been victimized she’s developed deceitful and manipulative ways).

In the film’s most meta scene, Leah bumps into Armand and they talk up in the stone bleachers of an empty stadium. “It’s like we’re in a movie!” Leah — Becky for the moment — observes. “Hasn’t that happened to you? Like you’re standing outside your body. I can do that. I can be outside watching my body. When something happens, I just watch. I wait till whatever’s happening ends.”

“And then?” Armand asks.

“Nothing. I leave.” What Becky — Leah — describes is not dissimilar to the mental state of a torture or rape victim attempting to survive her ordeal. Leah has likely attained that state at least once with Jaime; you wonder if she’s done so with Mr. Eleazar or (more to the point) with thoughtful caring Armand. When Armand tries to confront her, Leah — Becky — is evasive; Armand, however, won’t be denied. He bores in on Becky’s fabrications, tears them apart like so much tissue. Guillen often films Becky and Armand’s scenes in lengthy two-shots, to emphasize their intimacy; when Armand interrogates Becky the camera cuts from one to the other, emphasizing their disconnect. “I’m not your enemy,” he pleads, the camera following till she joins the frame. “I’m your husband.”

“I have to protect myself.”

“Yourself?” Armand and camera move away leaving Becky behind. “Yourself? What about me?”

Arguably the most painful episode: Armand forcing himself on Becky. Now that he knows what Jaime has done Armand attempts the same sadomasochistic games, earning Becky’s — and our — contempt. That sense of a woman rejecting a man recalls Anna Karenina’s rejection of Alexei; Guillen shoots handheld to underline the domesticity (there might be someone in the room recording the moment in videocam), in long takes to capture the depressing ugliness.

A point the filmmakers may not have intended: the film proposes that a woman should enjoy total freedom, even the freedom to be self-destructive. When Leah makes her latest decision, viewers may ask: “why?” She has chosen to be where she wants to be, if not when. And yes, in a bathtub — her recurring dream recurring one more time, with more water to wash away the consequences.

Final point: Leah may be a sub but it’s Jaime who pursues her. Jaime, despite all his declarations otherwise, is like Sir Stephen in Pauline Reage’s (a.k.a. Ann Desclos) The Story of O, he suffers a craving he cannot deny, he is conquered by Leah’s surrender. As with issues of feminism, freedom, memory, identity, and reality — on the question of who wields authority and who submits, Init sa Magdamag offers no easy answers.

Jollibee earmarks P17.8B for 2022 capital spending

REUTERS

By Keren Concepcion G. Valmonte, Reporter

JOLLIBEE Foods Corp. (JFC) has set its budget for capital expenditures (capex) this year to P17.8 billion, 128% higher than the P7.8 billion the company spent in 2021 as it looks to launch 500 stores.

In a statement on Thursday, JFC said “these capital expenditures will be primarily funded by cash generated from operations, bank loans and excess cash from the remaining proceeds from the bond issuances.”

The company is allotting the majority or P10 billion of its planned capex for new stores and renovating its existing outlets.

“We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year,” JFC President and Chief Executive Officer Ernesto Tanmantiong said.

“JFC had allotted P9 billion for capital expenditures for new stores in 2022, representing a 50% increase compared with P6 billion spent in 2021,” he added.

The company plans to open 500 new stores this year, noting “very strong expansion in different parts of [its] business] in North America, China, Southeast Asia, and Europe.

Meanwhile, Mr. Tanmantiong said the company expects its business in the Philippines to “sustain its healthy profitable growth.”

JFC launched a total of 398 new stores in 2021, of which 108 are in China, 85 in the Philippines, 38 in North America, and 29 in Europe, Middle East, Asia and Australia, or collectively EMEAA. The SuperFoods Group also opened 72 stores last year, while The Coffee Bean and Tea Leaf (CBTL) launched 66 stores.

The company permanently shuttered 302 stores — 216 abroad and 86 at home — in the fourth quarter last year.

Meanwhile, P7.8 billion of its capex will be allocated for investments in the company’s supply chain and business technology. JFC is looking at building a new commissary facility based in Cebu.

“Beyond 2022, our outlook for business growth is even brighter,” Mr. Tanmantiong said.

IMPROVED SALES PUSH Q4 PROFIT GROWTH TO 60%
In a separate regulatory filing on Thursday, the company reported a 59.6% growth in attributable net income to P3.24 billion in the fourth quarter last year from P2.03 billion in the same period in 2020.

The company generated revenues of P44.94 billion during the quarter, improving by 22.8% from P36.58 billion year on year. System-wide sales went up 25.2% to P62.03 billion from P49.55 billion.

“JFC’s system-wide sales in its international business in the fourth quarter had equaled the sales in the same period before the outbreak of the pandemic,” Mr. Tanmantiong said, adding that Philippine system-wide sales “were still 22.6% lower than those in the same period in 2019.”

Meanwhile, same-store sales of the company’s Philippine business went up 24.1% year on year, while same-store sales of its international business went up 9.6%. Its global same-store sales, on the other hand, went up 18.4%.

Same-store sales in North America grew 17%, sales from stores across EMEAA went up 5%, and same-store sales of CBTL went up 29.3%.

However, same-store sales of SuperFoods went down 23.2% and the company’s China businesses also saw an 8.1% decline due to coronavirus disease 2019 (COVID-19) lockdowns implemented in some areas of Vietnam and China.

Meanwhile, Jollibee generated an operating income of P2.51 billion in the fourth quarter, “a significant turnaround” from the P2.87-billion operating loss reported in the same period in 2020.

JFC SWINGS TO PROFITABILITY IN 2021
JFC logged a P5.94-billion net income attributable in 2021, swinging from a P11.51-billion loss in 2020. However, last year bottom line is still 18.6% lower than the company’s 2019 income of P7.3 billion.

Revenues grew 18.7% to P153.51 billion from P129.31 billion year on year, while system-wide sales grew 20.3% to P211.72 billion from P175.97 billion.

The company said the business transformation program it implemented helped push its full-year operating income to P6.32 billion in 2021 from a P12.81-billion operating loss.

“JFC achieved a profit objective of generating an operating income in 2021 that reached pre-pandemic level despite its system-wide sales still being behind by 13.2%,” JFC Chief Financial Officer Ysmael V. Baysa said.

“By business units, the key drivers were the Philippines, with fourth-quarter operating income equaling that of fourth-quarter 2019, Smashburger, with losses in fourth-quarter 2019 being reduced by 80%, and CBTL which turned its losses into profit in [the] fourth quarter and total year 2021. CBTL is now a profitable business,” he added.

JFC is operating 17 brands in 34 countries. As of end-2021, the company has 3,220 stores in the Philippines and 2,704 abroad.

Jollibee stores account for 1,520 outlets, CBTL has 1,048, Chowking has 604, Mang Inasal has 578 stores, the company has 553 Red Ribbon outlets, 483 Highlands Coffee shops, 394 Yonghe King stores, 269 Greenwich stores, and 245 Smashburger stores.

Just this Tuesday, the company launched its Jollibee branch in West Malaysia with hundreds of customers falling in line on its first day. The company said all of the ingredients used for the store’s meals are sourced from Halal-certified vendors.

JFC shares at the stock exchange climbed 0.99% or P2.40 on Thursday, closing at P244 each.

Tropang Giga-Hotshots rematch highlights PBA resumption today

TNT TROPANG GIGA JASON CASTRO (17) — PBA IMAGES

TNT and Magnolia — the protagonists in the last Philippine Cup finale — lock horns again today to highlight the reopening of the stalled Philippine Basketball Association (PBA) Governors’ Cup at the Smart Araneta Coliseum.

The heavyweights renew their rivalry at 6 p.m. with the unbeaten Hotshots (3-0) seeking payback for their All-Filipino loss and continued stay at the top and the Philippine Cup kingpin Tropang Giga (2-2) looking to repeat and climb up to joint fifth.

Second-running Meralco (2-0) and No. 3 NLEX (4-1) engage in an equally explosive clash at 3 p.m.  that kicks off the pro league’s spectator-less resumption after over a month of play suspension.

The Bolts, who lost Nards Pinto but acquired Chris Banchero from unrestricted free agency during the break, and the Road Warriors, who beefed up their backcourt with the signing of Gilas guard Matt Nieto, are out to solidify their lofty positions in the standings.

The rematch with Hotshots actually starts a lung-busting four-game schedule in seven days for the Tropang Giga. With coach Chot Reyes and his charges doing Gilas Pilipinas duties, TnT is playing Magnolia tonight, Phoenix on Sunday, San Miguel Beer on Wednesday and Barangay Ginebra on Friday to make room for  their International Basketball Federation (FIBA) World Cup Asian Qualifiers stint.

“We know it’s very crucial but it is what it is, whose Gilas selections from TnT will play four matches in the FIBA meet from Feb. 24-28 before returning to the PBA eliminations.

“Hopefully by helping Gilas, it’s going to help our game and hopefully help us in the PBA as well. There’s a big risk na makakasagabal siya (on PBA preparations) but it’s a risk we’re willing to take,” he added.

TnT is sticking with Aaron Fuller, who replaced original import McKenzie Moore, for the remainder of the Governors’ Cup, and hired UFA Matt Ganuelas Rosser prior to restart.

Mike Harris-bannered Magnolia welcomed returning veteran Rafi Reavis and new acquisition Adrian Wong to the fold as it bids to pick up from where it left off in the pandemic-disrupted tourney.

Coach Chito Victolero hopes to avoid a repeat of the Philippine Cup experience, where his wards had a good start but lost their timing coming back from a similar hiatus.

“We just try to learn from the mistake na nakuha namin last conference,” he said. — Olmin Leyba

Globe sees ‘slow start’ in Q1 due to Odette, Omicron

GLOBE Telecom, Inc. on Thursday said it expects “upsides” in its gross service revenues (GSR) for 2022, but noted that Typhoon Odette and the Omicron variant of the coronavirus disease 2019 (COVID-19) caused a “slow start” for the company in the first quarter.

The company saw its core net income for the fourth quarter of 2021 fall by 25% to P2.9 billion from P3.9 billion in the same period in 2020.

“There are upsides to the GSR guidance at this point, but we had a slow start to the year, as Odette crippled Visayas and Mindanao and Omicron had a lot of our employees… sick so we had to actually divide our operations more sparsely,”  Globe Chief Finance Officer Rizza Maniego-Eala said during a press briefing.

The company said its typhoon relief efforts, as well as restoration efforts to bring services back to normal in the remaining affected areas, are ongoing.

Globe noted that as of Jan. 18, it had restored 82.3% of its network in Visayas and 91.8% in Mindanao.

“For 2022, due to the continuing negative impact of the COVID-19 pandemic brought about by new variants such as Omicron, the company remains guardedly optimistic about sustaining momentum as the economy recovers,” Globe said in a statement on Wednesday.

“Thus, the company believes that, notwithstanding the relevant product platforms in place and aggressive network investments, revenues will increase by low single digit from 2021 level,” it added.

The company expects its EBITDA (earnings before interest, taxes, depreciation and amortization) margin to remain in the low 50s, “as margins will be continuously impacted by the increasing contribution of lower-margin data-related products, but offset with efforts in managing costs.”

Its capital expenditure (capex) budget for the year will be around P89 billion, as it aims to continue expanding and improving its network, with increased funding for the rollout of the fiber network and 5G (fifth-generation network) service.

Globe saw its core net income for 2021 grow by 9% to P21.2 billion from P19.5 billion in 2020.

Its full-year consolidated service revenues grew by 4% to P151.5 billion from the P146.4 billion reported in 2020.

The company attributed its growth to the “sustained outstanding performance of home broadband as well as corporate data.”

It invested P92.8 billion in capex last year. “Total capex for 2021 represented 61% of gross service revenues and 124% of EBITDA,” it said.

“About 86% of the capex went to data-related requirements in order to serve the rising demands of Filipinos consumers who access the Internet to carry on with their daily activities, maintain business operations and deliver critical services,” it added.

Globe Telecom shares closed 7.06% lower at P2,818 apiece on Thursday. — Arjay L. Balinbin

Sony’s new AI beats humans in Gran Turismo racing game

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SONY said on Wednesday it has created an artificial intelligence (AI) agent called Gran Turismo Sophy (GT Sophy) that was able to beat the world’s best drivers of the PlayStation racing simulation game Gran Turismo.

To get GT Sophy ready for the game, different units of Sony brought in fundamental AI research, a hyper-realistic real world racing simulator, and infrastructure for massive scale AI training, the company said in a statement.

The AI first raced against four of the best Gran Turismo drivers in July, learnt from the race and outperformed the human drivers in another race in October.

“It took about 20 PlayStations running simultaneously for about 10 to 12 days to train GT Sophy to race from scratch to superhuman level,” said Peter Wurman, director of Sony AI America and the leader of the team who designed the AI.

While AI had been used to defeat humans in the games of chess, Mahjong, and Go, Sony said the difficulty in mastering race car driving was the many decisions that need to be made in real time.

Sony’s rival, Microsoft, which recently bought Activision for $69 billion, has been using games to improve AI by offering up new challenges for AI models to solve.

Gran Turismo, a racing simulation video game, made its debut in 1997 and has sold over 80 million units.

Sony wants to apply the learnings to other PlayStation games.

“There are a lot of games that pose different challenges for AI and we’re looking forward to starting to work on those problems,” he said. — Reuters

SEC plans sustainability, responsible fund standards

THE Securities and Exchange Commission (SEC), along with the ASEAN Capital Markets Forum (ACMF), is planning to develop Sustainable and Responsible Fund Standards (SRFS) for investment firms in the country.

The ASEAN SRFS aims “to provide disclosure and reporting requirements that can be consistently applied by fund managers in the ASEAN (Association of Southeast Asian Nations) jurisdiction.”

“The ACMF will explore the feasibility of developing sustainable and responsible fund standards and will consult the Fund Managers in the region on the technical requirements and feasibility considerations,” the regulator said.

Under proposed recommendations, the SEC and the ACMF said qualified funds may be listed as an “ASEAN Sustainable and Responsible Fund” on a webpage on ACMF’s website.

Funds may also be required to make information and other reports accessible through their own website or on its fund management company’s (FMC).

The ASEAN SRFS would make investment funds provide disclosures on environment, sustainability, and governance (ESG) initiatives, sustainable and responsible investment (SRI) objectives, and sustainability investment strategies.

An FMC will be required to prepare an annual report on its ESG/SRI/sustainability-related funds, which should include investment strategies and objectives on top of a review on their sustainability aspects.

“FMCs are also encouraged to provide more frequent periodic reporting which would increase transparency and investor confidence,” the regulator said.

The ASEAN SRFS will also require disclosure of the processes in place to ensure ESG compliance. The benchmarks and/or indices used for a fund’s strategies and objectives should also be included.

“Regular monitoring by the FMC of the ESG/SRI/Sustainability-related funds are required to ensure that the funds are continuously in compliance with the disclosures made and fund managers are required to update the respective regulators if there are any material changes to the funds,” the regulator said.

Investment firms, fund managers, and other individuals who deal with investment companies may submit comments and/feedback on the proposed features of the ASEAN SRFS by Thursday next week, Feb. 17. — Keren Concepcion G. Valmonte

Barry Diller-owned Dotdash ends print editions of six magazines

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DOTDASH Meredith, owned by media mogul Barry Diller’s IAC, has decided to stop publishing the print editions of six magazines including Entertainment Weekly and InStyle as part of a digital push.

The move would result in 200 job losses and impacted titles also include EatingWell, Health, Parents, and People en Español, Dotdash Meredith Chief Executive Officer Neil Vogel said on Wednesday in a memo to staff that was seen by Reuters.

The job losses represent less than 5% of the company’s workforce and the April issues of all six magazines would be their final print editions, the company said.

Dotdash had acquired the magazines in October in its $2.7 billion deal for Meredith Corp, bringing titles such as People, Allrecipes, and Investopedia under one umbrella.

“Buying Meredith was about buying brands, not magazines or websites,” Mr. Vogel said in the memo. “We are very serious about investing for growth — in 2022 alone we will be investing over $80 million in content across our brands.”

Newspaper and magazine publishers have faced pressure in recent years from a decline in print-advertising revenues, while tech giants like Google and Facebook have pocketed most of the ad dollars in the digital space.

The COVID-19 pandemic has added to the industry’s woes as it accelerated a shift to online news platforms, bringing newsstand sales to a halt.

Dotdash — the digital media arm of IAC —  reaches about 100 million online consumers monthly and its collection of 14 media brands in health, finance, and lifestyle are among the fastest-growing online media brands. — Reuters

Off-form Obiena jumps to eight place in Sweden

ERNEST JOHN “EJ” Obiena continued to search for form as he wound up only eighth out of 11 participants after clearing just 5.70 meters in the Beijer Pole Vault Gala in Uppsala, Sweden on Thursday.

The Asian record-holder went for a season-best 5.81m but failed in three attempts.

The Southeast Asian (SEA) Games gold medalists came through with the same clearance as in the ISTAF Indoor in Berlin, Germany less than a week ago.

Olympic champion and world record owner Armand Duplantis of Sweden blew away the competition with a 6.04m with Americans Christopher Neilsen and KC Lightfoot plucking the silver and bronze medals, respectively, with identical 5.92m.

Mr. Obiena will have a chance to make improvements as he plunges back into action in the Orlen Cup tomorrow in Lodz, Poland.

Mr. Obiena, whose best performance was 5.93m he registered in the 2021 Golden Roof Challenge in Innsbruck, Austria, is still out to get back in full strength after going under the knife to repair a torn meniscus last month.

He is also still recovering from a messy controversy he is currently embroiled with the Philippine Athletics Track and Field Association (PATAFA), which accused the former of allegedly falsifying liquidations concerning payments to Ukrainian coach Vitaly Petrov.

Mr. Obiena has repeatedly denied it. — Joey Villar