Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 910

A teenage otaku’s experience at the Ramon Magsaysay Awards

THE AUTHOR’S SON, Cid (right), with Studio Ghibli’s Yoda Kenichi stands in front of a poster of Studio Ghibli’s head and Ramon Magsaysay Awardee Hayao Miyaki. — BETH SANCHEZ LACSON

By Beth Sanchez Lacson,

THE STUDIO GHIBLI bling they wore in honor of the occasion (clockwise from top): a hand-painted bag of a sleeping Howl from Howl’s Moving Castle, a faded plastic Totoro watch, a No Face pin, and a pair of crocheted red mask earrings from Princess Mononoke. — BETH SANCHEZ LACSON

THE HISTORIC Art Deco building that is the Metropolitan Theater in Ermita, Manila was filling up with dignitaries from across Asia in formal regalia and their proud national attire.

This was our first time to attend the Ramon Magsaysay Awards, the 66th this year, considered as Asia’s equivalent of the Nobel Peace Prize.

On the sidelines, my son, Cid, a 16-year-old otaku (animé or manga fan) sat quietly in giddy anticipation, wearing a faded plastic Totoro watch and a No Face pin. For the occasion, I donned a pair of crocheted red mask earrings from Princess Mononoke and carried a hand-painted bag of a sleeping Howl from Howl’s Moving Castle. With our paraphernalia, we waited with bated breath for Studio Ghibli’s Hayao Miyaki to make a rare public appearance.

RAMON MAGSAYSAY AWARDS

The Ramon Magsaysay Award — named after the 7th President of the Philippines who perished in a plane crash in 1957 — was created to give recognition to the ideals he espoused and the courageous service that he rendered for the Filipino people.

President Magsaysay embodied greatness of spirit and believed that his fellow humans were entitled to live in freedom and happiness. Injustice incurred his wrath and he worked tirelessly to build a nation that thrived with honor and peace.

The reason for our being at the awards ceremony was that among the 2024 Awardees was animator and filmmaker Miyazaki Hayao of Japan who co-founded Studio Ghibli in 1983.

When the Ramon Magsaysay Foundation posted an announcement on social media calling for questions for Mr. Miyazaki, my son didn’t need to be asked twice. Incidentally, they were holding an art exhibit in his school inspired by Studio Ghibli films and he took great pains to send those photos and videos along with his questions to the foundation.

I fail to recall how long I have been a fan of Studio Ghibli films but my obsession with everything Studio Ghibli seemed to rub off on my son.

Studio Ghibli has produced many memorable animated feature films including the 1988 classic, My Neighbor Totoro. Mr. Miyazaki’s works are primarily aimed at children, one of the most challenging audiences. What is unique about his films is that they don’t oversimplify plots. He tackles complicated issues head on — whether these are about climate change, the pain of loss and grief, the role of women in society, and the discovery of self — because he has complete faith in the youth and their ability to comprehend such issues.

Princess Mononoke and Nausicaä of the Valley of the Wind teach children about protecting the environment and how human actions can greatly affect nature and the creatures on planet Earth.

Grave of the Fireflies and Howl’s Moving Castle are snapshots of the harrowing consequences of war. Castle in the Sky and The Wind Rises depict the potential for technology as a tool of progress or destruction. Kiki’s Delivery Service is a story of self-discovery and acceptance. Howl’s Moving Castle and Whisper of the Heart both tackle the innocence of love. And My Neighbor Totoro, Spirited Away, Ponyo, and Arrietty focus on purity, curiosity, and the unknown.

“Besides the mesmerizing animation and high quality that Studio Ghibli films have, I was mainly focusing on and appreciating the stories that they were trying to tell,” Cid said.

THE ACKNOWLEDGMENT

The words of the Ramon Magsaysay Foundation resonate: “In electing Miyazaki Hayao to receive the 2024 Ramon Magsaysay Award, the board of trustees hails a gifted and exemplary artist who has demonstrated, in his work and outlook a lifelong commitment to the use of art, especially animation, to illuminate the human condition, especially lauding his devotion to children as torchbearers of the imagination.”

As the parade started, we craned our necks to see if he was there — his signature white hair and beard and thick, black rimmed glasses. But he was nowhere in sight.

There was a spark of wishful thinking on my part, that maybe, he would make a surprise appearance that night. I didn’t want it to be all for naught for us.

Finally, his name was called but somebody else stood up.

“My name is Yoda Kenichi, Vice-President for Events and Exhibitions for Studio Ghibli. It is my honor to represent our co-founder Miyazaki Hayao, at the 66th Ramon Magsaysay Awards. Please allow me to read a letter that Miyazaki-san has written for this occasion.”

(Letter from Hayao Miyazaki)

“I first heard of the Ramon Magsaysay Award when I was a child.
“I think it was in the school playground, and my teacher told me that such an award had been created.
“The name made an impression, so it has remained in my mind ever since.
“Being honored with this award made me think of the Philippines once again.
“In 2016, the former Emperor and Empress visited Manila, which was the setting of urban warfare during World War II, to pay their respects to thousands who have lost their lives.
“The Japanese did a lot of terrible things back then.
“They killed many civilians.
“The Japanese people must not forget this.
“It will always remain.
“With such history, I solemnly accept the Ramon Magsaysay Award from the Philippines.”

(End of Letter)

The tears came unbidden before I realized what was happening.

My son was looking at me in a funny way, wondering what was wrong. This acknowledgment and profound humility were the reasons why I thought he was chosen as an awardee — to become a bridge to a broader under-standing of peace in modern times, through sensible and sensitive storytelling, even if a lot of the past seemed forgotten.

At least he has not forgotten.

And for my son who has learned to love all that is Studio Ghibli, this moment will always be part of a core memory.

First Gen lowers 2025 capex to P35 billion

FIRSTGEN.COM.PH

By Sheldeen Joy Talavera, Reporter

LOPEZ-LED First Gen Corp. is allocating a lower capital expenditure (capex) budget for next year as it will be focusing on geothermal activities, its president said.

“Next year, we will have a relatively smaller capex program. Maybe roughly around…P35 billion,” First Gen President and Chief Operating Officer Francis Giles B. Puno told BusinessWorld last week.

Mr. Puno said that around 90% of the budget will be allocated for geothermal activities, particularly drilling new wells.

“The prioritization is those drilling programs and the completion of the power plants… 83 megawatts (MW) will be operational by next year,” he said.

For 2024, First Gen has allocated $1.27 billion or approximately P74.4 billion.

Of the total, $560 million was for the hydro platform, which included the acquisition cost of the Casecnan Hydroelectric Power Plant; $670 million was allotted to its renewable energy subsidiary Energy Development Corp. (EDC) for its renewable energy portfolio; and the remainder was allocated for natural gas projects and the LNG Terminal Project.

Mr. Puno said that the company has already “completed the capex program in gas, as well as in hydro,” which explains the lower 2025 budget.

“The capex for geothermal is ongoing. So, what we’re doing is completing all the capex programs for geothermal,” he said.

For 2025, First Gen is targeting to drill approximately 16 new wells.

“We’re spending a lot on our well-drilling program. But the other issue we’re facing is that the power plants above ground are already old. So, we’re also trying to figure out how to make sure that we’re maximizing the steam capability of our concessions — matched with the right technology,” Mr. Puno said.

He said that the company has set a P60-billion capex program, of which P30 billion is for drilling wells while another P30 billion is for building more geothermal plants, as well as battery energy storage facilities.

“Many of our investments were originally fossil fuel, particularly in gas. We never invested in coal. But over the last many years, our priority really has been in geothermal,” Mr. Puno said.

“When you look at our balance sheet, for the longest time, our gas assets were probably the bigger portion of our investments, but today, our biggest investment actually is in EDC,” he added.

First Gen has a total of 3,668 MW of installed capacity coming from its portfolio of plants that run on geothermal, wind, hydro, solar energy, and natural gas.

At the local bourse on Monday, shares in the company climbed by 1.3% to close at P17.20 each.

My life in public service

I am deeply humbled and greatly honored by this recognition for my work, both in the public and private sectors, by the most prestigious business and management organization in the country. Thank you very much, MAP.

Allow me to briefly share my life in public service, both in the public and private sectors, and its contribution to nation building as I thank individuals and institutions that played essential roles for my being here today as the 48th MAP Management Person of the Year, which happens to be my birth year 1948. These individuals and institutions have shaped my values and principles on good governance, providing guidance and support along the way.

Allow me first to dedicate this award to my father, engineer Atanacio Singson, and my mother, Dra. Andrea Lazo Singson, for teaching me the values of simplicity, integrity, and honesty, daily prayers, and hard work. My father was a DPWH (Department of Public Works and Highways) District Engineer in Ilocos Sur who stood by his values and had to refuse a request of an influential member of the Commission on Appointments of Congress who also happened to be his cousin. And because of this conflict, he decided to resign and work with National Power Corp. (NPC) as a Lead Structural Engineer for NPC’s huge infrastructure projects, like the Ambuklao and Binga dams. My father worked hard, stood by his principles, and showed us how to live a simple life.

I would like to thank the Responsible Parenthood Council, headed by the late Horacio Boy Morales, and the Development Academy of the Philippines (DAP), headed by Dr. Onofre D. Corpuz and Executive Director Boy Mo-rales, for introducing me to grass roots community development work which I found more fulfilling as a fresh graduate from UP College of Engineering in 1971, instead of joining the corporate world. Upon the recommendation of my then immediate boss, Atty. Milton Mendoza, I was appointed as the first Resident Manager of DAP Tagaytay Training Center when it was officially inaugurated by then President Ferdinand Marcos in 1974. There I learned to deal with high-ranking government officials attending the 13-week live-in Career Executive Development Program and other live-in management programs and made sure that participants were kept happy, busy, and com-fortable with our spartan accommodations.

In DAP Tagaytay, I met Jose “Ping” de Jesus, a person who would have a profound influence in all of my work in the public sector. As DAP Senior VP, Ping de Jesus, known as JPJ, was running the organization and manage-ment development program while I was running the training center facilities.

GOAL WAS TO RETIRE AT AN EARLY AGE OF 40
My goal in life then was to retire at an early age of 40, so I left DAP and decided to become an OFW in the Middle East as part of the CDCP/Ultra Overseas Team so that I could earn in US dollars. Indeed, I was able to retire be-fore 40 with my dollar savings. I did retire at 38, constructed our retirement home in Baguio. But that was not going to go my way. The Lord had different plans.

Here again for some “divine” intervention, Sec. Ping de Jesus asked me to rejoin government while enjoying my short-lived early retirement in Baguio. I did eventually join, sometime late 1986, Sec. Ping de Jesus and another mentor, Usec. Chito Sobrepeña, in the Office of the Cabinet Secretary of President Corazon C. Aquino. My assignment at the Office of the President, included supporting the Office of Special Concerns with Cabinet Secretary de Jesus and Usec. Sobrepeña in preparing for the official trips of President Cory to ensure that government services reached the furthest and poorest municipalities of the country. President Cory, on record, traveled to 54 prov-inces, from Batanes to Tawi-Tawi. This assignment meant traveling as an advance party to the provinces under very stressful and challenging circumstances, including sleeping on school tables or hospitals since we were deep into places without accommodations — I am referring to places then, like Tawi-Tawi, Basilan, GenSan, and Batanes. Some of them were being visited by a sitting Philippine President for the first time.

I was also assigned as Executive Director of the Coordinating Council of the Philippine Assistance Program (CCPAP), a joint program with the US government, which was tasked to implement the creation of special economic and development zones and key infra projects — Calabarzon, Pavia/Iloilo, Gensan Sea Port, among others — and the promotion of BOT/PPP (Build-Operate-Transfer/Public-Private-Partnership) projects.

Allow me to thank the late President Cory for my appointment to BCDA (Bases Conversion and Development Authority) as the Vice-Chair and its First EVP in 1992 when RA 7227 was passed creating the BCDA Act. We made significant progress in generating employment and economic growth through conversion projects of former US military base lands. Among the major projects which stand out today include Heritage Memorial Park as our first BCDA fund-raising project, the privatization of Camp John Hay and Poro Point, the privatization and re-development of Clark Air Base into what is now known as Clark Special Economic Zone and the Clark International Airport.

With the leadership of SBMA (Subic Bay Metropolitan Authority) Chair Dick Gordon and as a Board Member of SBMA, we were able to privatize several assets turned over by the US military in Subic.

But to me, our biggest contribution to our economic development was the privatization and development of Fort Bonifacio and the Villamor Air Base. I personally got involved, from negotiating and clearing informal settlers, in what was known as Imelda Park, which was around the American battle monument, where most of the past army generals and chiefs of staff lived, and the nearby Palar Villages. In all these resettlement activities, we made sure that the relocation was done with fairness, compassion, and providing a reasonable and acceptable relocation for all affected families, be it a general or just a master sergeant living in the Palar areas along C5. This led to the development of Kalayaan Military Village, Villamor Housing, Centennial Village, and Diego Silang Housing, among others.

‘REAL ESTATE DEAL OF THE CENTURY’
The privatization of 214 hectares of Fort Bonifacio, known as the “real estate deal of the century,” with the winning group led by the Metro Pacific Consortium raised for government P30.4 billion. I believe the government received the biggest check payment of P19.6 billion as a down payment for that successful bidding of Bonifacio Global City (BGC). Thank you to the professional management team of BCDA and the BCDA Board who embraced good governance in all of our privatization undertakings.

From BCDA, in 1996, I joined the BCDA joint venture company with the Metro Pacific Consortium, the Fort Bonifacio Development Corp. (FBDC) as Senior VP in charge of infrastructure development of BGC, together with Mr. Charlie Rufino. At FBDC, I got directly involved with the help of our US-based urban planners and consultants, in the implementation of the upscale urban development of BGC — using for the first time in the country — floor area ratios, GIS (Geographic Information System) for all underground utilities, deed of restrictions handbook for all the lot buyers and owners which has created long-term value to BGC properties up to today.

In July 1998, President Erap Estrada appointed me back as Chair and President of BCDA to pursue more privatization and PPP projects using former military base lands and assets. I was told that President Erap wanted me back at BCDA because of the transparent and successful biddings of Fort Bonifacio military lands. From there, we continued to do more conversion projects to complete the master plans of all the base lands transferred to BCDA.

Another individual that I would like to thank is a former colleague in the Office of the Cabinet Secretary, Usec. Chito Sobrepeña, who invited me to join the community where I still belong, Ang Ligaya ng Panginoon (LNP), a family-based covenant community. After regularly attending the breakfast meetings of the Brotherhood of Christian Businessmen and Professionals (BCBP), “sabi siguro ni Chito, may pag-asa pa ito si Mr. Singson” (I guess Chito said, there is hope yet for Mr. Singson). After going through formation programs as a member of LNP, I eventually became a District Coordinator of LNP.

Fast forward [a few years], while attending an LNP Coordinators Retreat sometime in May 2010, I clearly remember the first day of our retreat. I got a call from a member of the selection committee of incoming President Noynoy Aquino (P-Noy), asking if I would be open to being considered as Secretary of DPWH. I told the caller — I believe it was Cesar Buenaventura — that I was in a retreat and I said I will pray about it. His immediate answer was, “I know our prayers will be answered.” [In a] coincidence, the theme of our retreat, led by Fr. Herb Sneider of the Loyola School of Theology, was on heroic leadership and becoming radical disciples for our Lord. With proper discernment and prayers, the community leadership with Senior Head Coordinator Mr. Tony Panajon and Spanky Meer, they gave their full support that I should be open to taking on the job of DPWH Secretary as a mis-sion field to being a radical disciple for love of God and service to fellowmen.

And again for some reason, the Bible reflection on the day P-Noy interviewed me for the first time was the reading from Matthew: “enter the narrow gate for the road to life is narrow and difficult.” At that point, what was much clearer than the message of “entering the narrow gate and following the narrow road” was the clear message for me to accept the government position. Of course, I had to consult and inform my wife, Binggay, and my family of this major decision. My daughter Nikka’s response was “are you crazy?” to accept.

VALUE OF LOVE FOR GOD AND SERVICE TO FELLOWMEN
So, my acceptance of the most challenging job in public service was based on the value of love for God and service to fellowmen. I knew my life in DPWH would be challenging, [with] long working days, a very huge pay cut coming from Maynilad as President. I even had to sell my Alabang Golf membership to augment my government salary. Knowing that DPWH was always in the [list of the] top three most corrupt government agencies prior to 2010 was my biggest challenge. Allow me to thank my brothers and sisters and the leadership of LNP for their guidance, and especially their prayers, during my full six challenging years with DPWH.

After Malacañang announced that I was the incoming DPWH Secretary, I asked a good friend, Ms. Yolly Villanueva Ong, to do a survey for me to know what the general public expected from the DPWH. The survey results showed that people simply expected that government funds and resources be used for the right projects, at the right cost and right quality. So, I made it very clear in our first DPWH ManCom meeting that we had to change the culture of DPWH and, with the help of some members of the DPWH ManCom, draw up our good governance and anti-corruption measures.

We developed our management mantra and strategic objectives of the 3Rs — Right projects, Right cost, and Right quality. Eventually, P-Noy added the 2 Rs — Right on time and by the Right people. Part of changing the cul-ture of DPWH was offering early retirement to about 25% of the employees and replacing them with young, qualified, registered civil engineers below 30 years old. We hired about 1,500 nationwide, and offered them a career in DPWH with regular plantilla positions and the salary equivalent of $600/month, instead of them going abroad as contractual personnel.

This award is not just a recognition of my efforts, but a testament to the commitment of the late P-Noy to his Daang Matuwid (Straight Path) way of governance in serving the country. Let me quote, P-Noy said — “no wangwang (sirens), no entitlements; kung walang corrupt, walang mahirap (if there are no corrupt people, there will be no poor people); kayo ang boss ko (you are my boss).” I had P-Noy’s full support in the transformation of the DPWH to become the lead infrastructure arm of the government. The Philippines got its highest rating ever in the 2014 Transparency International rating in the corruption perception index.

With the help of DBM (Department of Budget and Management) Secretary Butch Abad and the full support of other department secretaries, we were able to implement our infrastructure convergence program, developing infrastructure, roads and bridges, using national road standards to major tourism destinations of our country as prioritized by the late DoT (Department of Tourism) Secretary Mon Jimenez. For tourism convergence, we were able to complete 2,500 kms of tourism roads worth P84 billion.

Thanks to DepEd (Department of Education) Secretary Bro. Armin Luistro, who entrusted to DPWH the construction of the school buildings, and where we instituted for the first time PPP for school buildings to be able to wipe out the DepEd classrooms backlog; to Secretary Mar Roxas and Secretary Jun Abaya for national road standards leading to airports and seaports; and to Secretary Cesar Purisima and NEDA (National Economic and Devel-opment Authority) Secretary Arsi Balisacan for supporting our PPP projects, like CALAX, the NLEX Connector, the NAIA Expressway, the Cebu Cordova Bridge, and the Skyway, among others. We also started other convergence programs on flood control projects, too many to mention, based on river basin master plans and integrated water resources management (IWRM) principles and introducing the use of bio-engineering solutions. In the process, because of competitive public bidding, we were able to save the government several billion pesos. Thank you to Cabinet Secretary Rene Almendras who was very much in the thick of the transformation.

With the guidance of the Institute for Solidarity in Asia (ISA), we adopted in DPWH their performance governance system scorecard to ensure that we were moving in the right direction and that our achievements were measurable. And with the full support of the whole DPWH family, we were able to measure up to ICD standards and were awarded the highest gold trailblazer award. Thank you to Dr. Jess Estanislao and Rex Drilon for helping us and believing that we could change the culture of DPWH. And of course, thank you to the professionals and career personnel, especially the cadet engineers of DPWH, who believed that we could indeed change the culture and public perception of DPWH by supporting our good governance and anti-corruption program.

PUBLIC SERVICE OPERATING UNDER A PRIVATE ENTITY
In most of my assignments in the private sector, I have to thank Metro Pacific Investments Corp. (MPIC) Chair Manuel V. Pangilinan, for my appointments as presidents of Maynilad Water Services, Light Rail Manila Corp., Meralco MGen Power, Metro Pacific Water Investments, and, until recently, Metro Pacific Tollways Corp. In all these assignments, I made sure that we focused on the public service aspect of our plans and programs and our contribution to nation building. I emphasized that we are in public service operating under a private entity. We made sure that we addressed the needs and pain points of our customers and communities that we served. I was lucky to have very professional business unit heads and key officers, like NLEX President engineer Luigi Bautista, who is also the National President of Familia, a family-based church organization, who took care of the spiritual needs of North Luzon Expressway employees.

At my age of 76, I have been blessed with good health and able to live a balanced life — spiritually, mentally, physically, and in my social life. I still have my daily exercises, play golf on weekends whenever possible, go seri-ous ballroom dancing, and I will continue my advocacy for good governance and anti-corruption measures, particularly in addressing the country’s water crisis.

I wish and hope that some of my experiences and principles in good governance and anti-corruption measures based on hard work, political will, transparency, accountability, and citizens/stakeholders participation will in-spire our NextGen and Gen Z future leaders for a better future for all Filipinos.

In closing, I want to express my heartfelt gratitude to the MAP Board of Governors and the MAP members for this prestigious award which I also share with my sweetheart of over 54 years, Binggay Nepomuceno Singson, our daughter Nikka and husband attorney Jorge Abes with our apo (grandson) Rafa, our sons Patrick, Gilbert, and Edu, their spouses and our apos, and my close friends, some of whom are present here today, for helping me in my journey dedicated to a life of public service, for love of God and service to fellowmen. To God be the glory.

 

Rogelio “Babes” L. Singson is president and CEO of Metro Pacific Tollways Corp. Send feedback to map@map.org.ph and rlsingson@mptc.com.ph

T-bill rates mostly higher before inflation report

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday even as rates mostly climbed due to bets that Philippine headline inflation quickened further in November.

The Bureau of the Treasury (BTr) raised P15 billion as planned from the T-bills it auctioned off on Monday as total bids reached P57.8 billion, almost four times as much as the amount on offer and higher than the P51.665 billion in tenders seen the previous week.

Broken down, the Treasury borrowed the programmed P5 billion through the 91-day T-bills as tenders for the tenor reached P21.75 billion. The three-month paper was quoted at an average rate of 5.63%, down by 1.7 basis points (bps) from 5.647% seen last week, with accepted bids having yields ranging from 5.62% to 5.64%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P16.11 billion. The average rate of the six-month T-bill stood at 5.905%, up by 2.3 bps from the 5.882% fetched last week, with accepted rates at 5.85% to 5.925%

Lastly, the Treasury raised P5 billion as planned via the 364-day debt papers as demand for the tenor totaled P19.94 billion. The average rate of the one-year debt increased by 3.2 bps to 5.937% from 5.905% quoted last week, with the tenders accepted carrying yields ranging from 5.92% to 5.948%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.6445%, 5.9236%, and 6.0048%, respectively, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

The government fully awarded the T-bills placed on the auction block on Monday as the offer was 3.9 times oversubscribed and the average rates fetched for the tenors were “all lower than the prevailing secondary market rates,” the Treasury bureau said in a statement.

“The awarded T-bill rates today tracked the latest short-term secondary BVAL rates, despite moving in mixed directions from last week’s auction,” a trader said in an e-mail.

T-bill yields mostly rose week on week amid market expectations that inflation picked up last month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Headline inflation may have picked up in November as prices of key food items rose due to the impact of several typhoons, analysts said.

A BusinessWorld poll of 15 analysts conducted last week yielded a median estimate of 2.5% for the November consumer price index (CPI), within the central bank’s 2.2% to 3% forecast for the month.

If realized, the November print would be slightly faster than the 2.3% clip in October but slower than 4.1% in the same month a year ago.

This would also mark the 12th straight month that headline inflation was within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target.

The BSP expects inflation to average 3.1% this year. In the first 10 months, headline inflation averaged 3.3%.

The Philippine Statistics Authority will release November CPI data on Dec. 5. (Thursday).

“The higher yields for the relatively longer 182- and 364-day bills reflected investors’ appetite for these issuances as they opted to secure yields with a longer holding period. This was due to potential market noise from the lingering uncertainty ahead of the incoming Trump administration,” the trader added.

US President-elect Donald J. Trump will take office on Jan. 20, 2025.

Uncertainties around US policies may slow global economic growth modestly in 2025, according to major brokerages, Reuters reported. They expect Mr. Trump’s proposed tariffs to fuel volatility across global mar-kets, spurring inflationary pressures and, in turn, limiting the scope for major central banks to ease monetary policy.

World economies and equity markets have had a robust year, with global growth expected to average 3.1% this year, a Reuters poll published in October showed.

The BTr plans to raise P75 billion from the domestic debt market this month, or P60 billion via T-bills and P15 billion through Treasury bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product this year. — AMCS with Reuters

SMC defends 7,000-ha Bugsuk Island titles

SAN MIGUEL CORP. (SMC) confirmed its acquisition of 7,000 hectares on Bugsuk Island in Balabac, Palawan, noting that the titles predate the 1997 Indigenous Peoples Rights Act and no certificate of ancestral domain title exists for the properties.

SMC acquired the properties “through the purchase of companies that have held the titles since their original issuance in 1974 as part of a government program involving the redistribution of agricultural lands to farmers under the Land Reform Program,” the Ramon S. Ang-led conglomerate said in an e-mailed statement on Monday.

“The Department of Agrarian Reform (DAR) has upheld in its orders dated Aug. 15 and Sept. 20, 2023, that the Bugsuk properties are not subject to Agrarian Reform distribution,” the company said. An indigenous peoples (IP) group called Sambilog-Balik Bugsuk Movement questioned this decision.

“While no certificate of ancestral domain title exists for Bugsuk Island, and existing property titles predate the 1997 Indigenous Peoples Rights Act, SMC is committed to engaging in constructive dialogue with all stakeholders, including the true representatives of the Molbog people, to address any concerns,” it added.

BusinessWorld still awaits comment from Agrarian Reform Secretary Conrado M. Estrella III.

“Any reacquisition by the government would violate the just compensation already provided and infringe upon the Constitutional rights of the lawful owners,” SMC said.

“Still, SMC acknowledges the historical complexities of land ownership in the Philippines and recognizes the importance of respecting the rights of legitimate indigenous communities,” it added. — Ashley Erika O. Jose

A grand Colosseum spectacle that falls flat

Paul Mescal plays Lucius in Gladiator II from Paramount Pictures.

By Brontë H. Lacsamana, Reporter

MOVIE REVIEW
Gladiator II
Directed by Ridley Scott
MTRCB Rating: R-16

RIDLEY SCOTT’S Gladiator II is a grand, entertaining spectacle. The opening credits scene is a thing of beauty, the animated sketches and score serving as a breathtaking introduction to the Roman Empire as depicted in the film. The rest of it delivers as a blockbuster — it’s the type of experience that works best when the elaborate costumes and set pieces placed in well-staged gigantic battles and sweeping scenes of the Colosseum are projected 10 to 30 feet high in a large movie theater.

An epic historical action film set 16 years after the events in the original Gladiator (2000), it follows Marcus Aurelius’s grandson Lucius, who is living under an alias as a warrior in Africa until the Roman army invades and enslaves him. He then pursues the path of a gladiator, inspired by the legendary gladiator Maximus, protagonist of the first Gladiator movie. Unfortunately, despite awesome visuals befitting a big-screen popcorn movie, the film sways in-consistently between criticizing and glorifying the Roman Empire, thanks to the poor writing of the lead character.

A valiant effort was made by indie darling Paul Mescal (Normal People, Aftersun, All of Us Strangers) to bring Lucius to life. As a newcomer to blockbusters, Mescal was given no favors by the messy script and pacing that ren-dered his character unrelatable. The film keeps insisting that he is a man driven by unbridled rage, but Mescal’s effective chemistry with his fellow gladiators and with his doctor friend Ravi show otherwise, that he is instead a man with a good heart.

If only we were outright shown these softer moments, similar to how the first Gladiator gave Russell Crowe’s Maximus plenty scenes as a family man and everyday man of honor. Instead, this movie’s protagonist is given unreal-istic character development, as he goes from vowing to kill General Acacius (played by Pedro Pascal) who enslaved him and despising all of Rome, to suddenly reversing his hate and deciding to take up his mantle as its prince. Per-haps in a more polished version of Ridley Scott’s messy sequel, with scenes delving into Lucius’ gradual evolution, this problem might be solved.

Undoubtedly, the stand-out performance in the film is given by Denzel Washington as the conniving Macrinus, who keeps a stable of gladiators. He is an ex-slave who was playing the long game in pursuit of a free Rome, but emerges as a corrupted manipulator now in pursuit of power. Washington plays this character compellingly, as a morally gray character finally ascending to the level of his oppressors. When Mescal’s Lucius puts a stop to it, the ending resorting to the generic “hero saves the day” trope, the promise of a complex, nuanced game of politics ends, and the film falls flat.

Gladiator II falls apart — its plot holes, historical inaccuracies, and character inconsistencies glaringly distracting — if you think about it too much. For sure, Roman history nerds will leave the theater with a migraine after seeing all the terrible anachronisms, from a printed newspaper (invented 1,200 years too early!) to the brother emperors Geta and Caracalla (not twins in real life, and more ruthless rather than insane as depicted here). For movie fans, comparing this sequel to the original shows it full of faults, too, because this echoes Gladiator way too closely to be its own triumph.

Even the evil twin emperors Geta and Caracalla (played with surprising pathos by Joseph Quinn and Fred Hechinger) are an echo of the cruelty of Joaquin Phoenix’s Commodus in the first film, albeit more unhinged. But while the lone monarch was clearly motivated by a lack of love and recognition, a frustration he redirected towards gladiators in the arena, the twins’ supposed insanity is a more symbolic one, representing the chaos of Rome as the two wreak havoc on their subjects and eventually tear each other apart, the audience left to speculate on their motivations given their limited screentime.

Of course, their underdeveloped subplot is but one part of the film, with Denzel Washington’s Macrinus doing much of the heavy lifting as the main antagonist. If not for anything else, this film is worth watching for his memora-ble Shakespearean performance alone, proving Washington’s sheer star power. It reaches the point where, as other scenes unfold, one wonders where Macrinus is and hopes to see him onscreen once more.

Pedro Pascal as Acacius and Paul Mescal as Lucius play action heroes well enough, even serving as eye candy for those who want to see men all roughed up in battle, but their characters are simply not as compelling as Macrinus.

The CGI baboons and the naval battle recreated in the flooded Colosseum (filled with sharks, somehow) are a symptom of the movie industry’s illness of neglecting original ideas just to fill the screen with spectacle and rehash what’s been successful before. Its ending is the most damning piece of evidence — playing Hans Zimmer’s iconic theme, “Now We Are Free,” over footage of Maximus brushing his hand through stalks of grain. While it may symbol-ize Lucius following in the grand gladiator’s footsteps to fulfil his legacy, it comes off as forced. It only makes one want to watch the original film again.

Gladiator II did not need to be a disorganized nostalgia fest that only retreads its predecessor, overdressed with visual stimuli to keep audiences entertained. Perhaps audiences will be entertained regardless (admittedly this writer was, despite my criticism), but it is still a waste of the potential for a decent story.

Gladiator II opens in Philippine cinemas on Dec. 4.

Has Sara’s diversionary tactic turned the tide?

Vice-President Sara Z. Duterte-Carpio — PHILIPPINE STAR/RYAN BALDEMOR

Vice-President Sara Duterte went ballistic, launching her biggest missile at President Bongbong Marcos (BBM), First Lady Lisa Marcos, and Speaker Martin Romualdez. In a pre-dawn online news conference the other Sat-urday, she said, “I have spoken to someone. I said, ‘If I am killed, go and kill BBM, Liza Araneta, and Martin Romualdez.’ No joke. No joke. I said, ‘Do not stop until they are dead,’ and the person said ‘yes.’”

The salvo was in response to advice from her political allies that she stay safe while she was in the House of Representatives because Romualdez supposedly wants her dead, alleging that she is the biggest threat to his political ambitions.

BBM and Romualdez returned fire. In the afternoon of the Monday following Duterte’s blast, BBM vowed, “I will fight back.” He found the Vice-President’s pronouncements “alarming.” “If it’s that easy to plan the assassination of a president, how much more for ordinary citizens? Such criminal attempts should not be ignored,” said he.

He said the whole “drama” would not have escalated to this point if the Vice-President had faced the House of Representatives’ investigation into the alleged misuse of confidential funds in the Office of the Vice-President and the De-partment of Education. “The truth should not be killed. This issue would have been over if only the sworn oath to be a public servant had been fulfilled, to tell the truth and not to obstruct.”

Marcos then declared that the rule of law must be upheld in a democratic country. “The law must be upheld whatever the situation may be, to whoever it may apply,” he added.

A few hours later, Speaker Romualdez addressed the members of the House of Representatives. In agitated tone, he declared:

“Let me be clear: This is no longer a joke; this is not a normal manner of speaking. This is a direct threat to our democracy, to our government, and the security of the country.

“Such a statement is not just reckless — it is dangerous. It sends a chilling message to our people, a message that violence can be contemplated by those in positions of power. This is not just an affront to the individuals targeted; it is an attack on the very foundation of our government. It is an insult to every Filipino who believes in the rule of law and the sanctity of life. Violence has no place in our society. It is irreconcilable with the values that have taught and guided us for years — values of respect, and amicable peaceful conflict resolution.

“We cannot let this pass as mere rhetoric. The gravity of such a confession demands accountability. It demands answers. It demands that we, as the representatives of the Filipino people, take a stand to protect our democ-racy from any and all forms of threats.

“My colleagues, I call on you to stand with me in defending this institution. Let us fight for the dignity of Congress. Let us fight for the truth. Let us fight for democracy. To the Filipino people, I assure you that this House will not waver in its commitment to transparency, accountability, and service. We should not allow individuals to ruin this great nation with their manipulative tactics, their troll armies, or their few blind followers.”

Enemies of Sara Duterte joined the fray. That same Monday, the Makabayan bloc in the House of Representatives held a protest rally in front of the Batasan building calling for the impeachment of VP Duterte. Like the President, the Vice-President may be impeached for graft and corruption, other high crimes, or betrayal of public trust.

BBM’s foot soldiers fired shots at Sara. On Tuesday, the National Bureau of Investigation (NBI) issued a subpoena to Sara Duterte regarding her threat against BBM. The subpoena, dated Nov. 25, ordered Duterte to appear before the NBI Main Office in Pasay City at 9 a.m. on Friday, Nov. 29, “to shed light on the investigation for alleged grave threats against President Ferdinand Marcos, First Lady Liza Araneta-Marcos, and Speaker Martin Romualdez and possible viola-tion of the Anti-Terrorism Act.”

Section 4 of RA 11479 states that terrorism is committed by any person who, regardless of the stage of execution, engages in acts intended to cause death or serious bodily injury to any person, or endangers a person’s life.

On Wednesday, Presidential Adviser for Poverty Alleviation Secretary Larry Gadon filed a complaint before the Supreme Court for the disbarment of Duterte, a lawyer, from the legal profession. He asked the Court to initiate a motu pro-prio proceeding of disbarment against Duterte following her threat to have the President and Speaker killed.

On microblogging platform X, former senator Leila de Lima called Sara Duterte’s pronouncements as part of a “political drama staged by the Office of the Vice-President to divert the issue from its plunder of confidential funds.”

Diversionary tactics are common in warfare. They have been employed in major and crucial offensives. In World War II, the Allied Forces deceived the German High Command into expecting them to launch the liberation of France from German occupation at Pas-de-Calais instead of Normandy.

The same tactic was used during the Persian Gulf War. The Central Command of the UN coalition forces tricked Sadam Hussein into believing they would begin the freeing of Kuwait from his stranglehold with an amphibious assault on the Kuwaiti coast instead of a ground offensive into Iraqi territory.

Diversionary tactics are also used in a defensive way. One such tactic is shock action. It is intended to disrupt the offensive of the adversary. In the liberation of the Philippines, the landing of American forces was delayed by the waves of kamikaze attacks on the US Naval fleet in Leyte Gulf in October 1944. A kamikaze was a bomber airplane that dove into an enemy warship to cause it heavy damage.

That is what beleaguered Sara Duterte used to disrupt the relentless offensive of her numerous adversaries — pre-dawn shock action. Her adversaries’ leaders, President Bongbong Marcos and Speaker Martin Romualdez, were jolted.

But by Thursday last week, it looked like Sara’s diversionary tactic was a monumental blunder as she had fired her biggest shell and she was surrounded by her enemies. She seemed bound to meet the same fate of the ka-mikaze squadrons that attacked the US Navy fleet in Leyte Gulf in October 1944 — self-destruction.

Came the fateful day, Friday, Nov. 29, the day she was to appear before the NBI Main Office “to shed light on the investigation for alleged grave threats against President Ferdinand Marcos, First Lady Liza Araneta-Marcos, and Speaker Martin Romualdez and possible violation of the Anti-Terrorism Act.” She was a no show.

NBI Director Jaime Santiago explained that Duterte had requested resetting of her appearance having “learned late that her appearance before the House committee hearing was cancelled.” Santiago accepted the excuse and granted the request and reset Duterte’s appearance for Dec. 11.

It is strange that Santiago accepted the lame excuse. The cancellation of her appearance before the House committee was announced through a televised press conference in the early afternoon of Thursday. Several chan-nels announced it in their evening newscast that Thursday. The major dailies reported the cancellation in their Nov. 29 issues.

Strange too is Santiago resetting the appearance when he had said the day before that if Duterte didn’t show up, he would submit to the Department of Justice prosecutors the evidence he has regarding her threat against the President. He also said he might accommodate Duterte’s request for the questions she would be asked, “given her position as the country’s second highest official.”

After Justice Undersecretary Jesse Andres remarked that the Ombudsman had the authority to discipline and investigate government officials, Ombudsman Manuel Martires said his office could take over the investigations by the NBI and the House committee. Martires was appointed to the Supreme Court and subsequently as Ombudsman by President Rodrigo Duterte. They were contemporaries at San Beda Law and are Lex Talionis Fraternitas brothers.

That same day, BBM said he did not support calls for the impeachment of Sara Duterte. “It will tie down the House, it will tie down the Senate. It will just take up all our time and for what? For nothing, for nothing. None of this will help improve a single Filipino life,” he explained.

Impeachment is a power vested by the Constitution on the House of Representatives alone. The Speaker of the House, not the President, has the prerogative to oppose calls for impeachment. By expressing his objection to the impeachment of Sara, he is prompting Speaker Romualdez, also a target of Sara’s sinister plan, to dissuade the congressmen from impeaching Sara.

Why the softening of the BBM offensive? Has Sara Duterte’s diversionary tactic exposed BBM’s vulnerability — the military, the Senate, the Supreme Court, even the Office of the Ombudsman? Asked if, like Sara, he has al-ready reached “a point of no return,” he answered, “Never say never.” Is a truce in the offing?

Has Sara Duterte’s diversionary tactic of shock action turned the tide?

 

Oscar P. Lagman, Jr. has been a keen observer of Philippine politics since the late 1950s.

PHL monetary policy transmission remains ‘weak,’ AMRO says

MONETARY POLICY transmission in the Philippines remains “weak,” as seen in the muted movements in actual bank lending rates compared to the changes to the Bangko Sentral ng Pilipinas’ (BSP) policy rate, the ASEAN+3 Macro-economic Research Office (AMRO) said.

AMRO said in a special chapter of its annual consultation report for the Philippines released on Monday that the “weak pass-through” of BSP actions could reduce the impact of its monetary policy on the economy.

“In 2022-2023, Bangko Sentral ng Pilipinas tightened monetary policy forcefully by raising the policy interest rate by 450 basis points (bps) to fight off inflation. The magnitude of the increase was large compared with peer coun-tries such as Indonesia, Malaysia and Thailand. However, only half of the total change was reflected in the actual bank lending rate. Such a weak pass-through may hinder monetary policy effectiveness, given the bank-based nature of the Philippine financial system,” AMRO said.

“Effective monetary policy implementation requires a robust transmission of the policy rate to the interest rates in the broader economy.”

BSP Governor Eli M. Remolona, Jr. has said that the Philippines’ monetary transmission mechanism has long lags.

AMRO attributed the limited pass-through to “an abundance of low-cost funding and the lack of consumer credit data.”

“In the Philippines, since bank funding is the largest formal financing source for the private sector, the sensitivity of bank lending rates to the policy rate is central to monetary policy effectiveness,” AMRO said.

It noted that there are disconnects in several key policy transmission links.

“When the BSP adjusts its policy rate, known as the target reverse repurchase (RRP) rate, it should lead to corresponding changes in the short-term market interest rates at which banks lend or borrow funds from one another. These market interest rates influence asset prices, such as stock indices, bond yields and exchange rates. They also feed into bank funding costs, which are the basis for the pricing of bank deposit and lending rates. The bank rates and asset prices that consumers and firms face affect their demand for goods and services, and ultimately, domestic prices,” it said.

The first transmission link, which is from the policy rate to short-term market rates, has “worked well in some markets,” it noted.

“Movements of the interbank call loan rate (IBCL), which is the overnight unsecured borrowing rate, and the short-term government bond yields have been well anchored to the policy rate since the establishment of the In-terest Rate Corridor (IRC) in 2016.”

The BSP adopted the interest rate corridor system in 2016 to help bring short-term market rates closer to its policy rate for better policy transmission.

“Before the IRC, insufficient liquidity absorption led the IBCL and one-year yields to trade significantly below the policy rate,” AMRO said. “However, after the IRC was put in place, the BSP introduced new liquidity ab-sorption tools such as the term deposit facility and the issuance of BSP securities, and these short-term market rates began moving more in line with the policy rate.”

However, the “interest rate in the foreign exchange swap market is more volatile and often trades below the policy rate,” it noted.

The Philippine Interbank Reference Rate (PHIREF), the implied peso interest rate derived from foreign currency (FX) swaps, depends “not only on domestic interest rate conditions but also US dollar funding conditions.”

“The PHIREF volatilities and deviations from the policy rate can dilute monetary policy signals, given that FX swaps remain the most active interbank market in the Philippines due to higher liquidity and more familiarity among participants compared with the repo market.”

AMRO added that there is also a disconnect between market rates and bank funding costs.

“Short-term market rates are only partially reflected in bank funding costs. Following the 450 bps increase in the policy rate and the comparable changes in many short-term market rates, the average funding costs of the banking system rose by less than 30% of that amount,” it said.

“The muted changes in bank funding costs are a result of the large low-cost deposit funding in the banking system,” it added, noting that in the BSP’s last tightening cycle, where the policy rate was hiked to a 17-year high, deposit rates only moved marginally.

“To be sure, from a bank’s perspective, a high NOW (negotiable order of withdrawal) and savings ratio supports profitability. However, from a monetary policy perspective, it limits the degree of policy transmission to bank rates and then to the economy overall,” AMRO said.

“The large surplus liquidity in the banking system also limits the rise in bank funding costs. The Philippine banking system has ample liquidity… Excess liquidity is also reflected by the loan-to-deposit (L/D) ratio, which is markedly lower than in ASEAN-4 peers The low L/D ratio shows that most banks have a sizable buffer of idle liquidity, and hence have no need to compete for deposits by using more attractive rates,” it added.

AMRO also noted the “constrained” linkage from bank funding costs to lending rates, with the pass-through differing depending on the loan type.

“After the policy rate was raised by 450 bps, the average effective lending rate rose by 224 bps, a pass-through of 50%. However, behind this average number, the degree of pass-through varies across loan types,” it said.

It noted that the degree of pass-through was strongest for corporate loans (64%), followed by small- and medium-sized enterprise loans (32%) and household loans (20%).

“Household loan rates are less sensitive to the policy rate because they are dominated by credit risk premiums. In simple terms, bank loan rates comprise bank funding costs plus the risk premium of the borrowers and the bank’s profit margins,” it said. “Based on AMRO’s interviews with banks, the credit risk component in household loan rates tends to be large, dwarfing any changes in funding costs that can be influenced by the policy rate.”

IMPROVING LINKAGES
Moving forward, to strengthen the link between the BSP’s policy rate and bank lending rates, AMRO said the central bank should “continue to develop a liquid repo (repurchase) market to serve as the core interbank funding mar-ket with a stronger link to the domestic policy rate.”

The BSP and the Bankers Association of the Philippines have announced their plans to enhance the government securities repo market to boost the capital markets and improve asset pricing.

“Second, although stable bank funding is important for banking system resilience, the deposit market has room for more competition to enhance sensitivity to the policy rate,” AMRO said.

Increasing consumer awareness regarding alternative and higher-yielding savings and investment products would help monetary policy transmission, boost household savings and deepen the capital markets, it said.

Lastly, the quality and availability of household credit data should be improved to allow lenders to better assess credit risks and price loans, AMRO said.

“First, the data should be more complete, encompassing all financial footprints at bank and nonbank lenders. Second, the accuracy of the data must be improved. Third, alternative data such as payments to utility com-panies or online shopping platforms can be added to the credit profile, subject to appropriate data privacy and protection standards,” it said.

“Such improvements in the credit data will not only benefit policy rate transmission, but also provide opportunities to households with a good credit history to access finance at more reasonable costs.” — Luisa Maria Jacinta C. Jocson

Power China tapped to construct MTerra Solar

STOCK PHOTO | Image by Michael Wilson from Unsplash

TERRA SOLAR Philippines, Inc. (TSPI), a subsidiary of SP New Energy Corp. (SPNEC), has tapped Power Construction Corp. of China Ltd. (Power China) for the construction of a portion of the P200-billion solar and battery energy storage project.

TSPI signed an engineering, procurement, and construction (EPC) contract with Power China along with its affiliates to build the east-side development of the MTerra Solar Project, the company said in a statement on Monday.

“MTerra Solar serves as our bold step towards ensuring a sustainable energy future for the Philippines — and with Power China as our partner, we are well on our way to achieving our vision of a cleaner energy future for the Philippines,” TSPI President and Executive Director Dennis B. Jordan said.

TSPI is constructing a 3,500-megawatt-peak (MWp) solar power plant and a 4,500-megawatt-hour (MWh) battery energy storage system in Central Luzon.

The project will be located in five towns — Gapan, General Tinio, Peñaranda, and San Leonardo, all in Nueva Ecija, and San Miguel, Bulacan.

Slated for completion by 2027, MTerra Solar is expected to provide clean energy to more than two million households.

Under the agreement, Power China will handle the development of the project’s east section, spanning approximately 1,505 hectares.

The section accounts for 1,050 MWp of the project’s total capacity.

SPNEC said that the agreement covers warranty, defect resolution, and the implementation of operational and maintenance protocols “to ensure long-term reliability and success” of the project.

MGen Renewable Energy, Inc., the renewable energy arm of Meralco PowerGen Corp. (MGen), holds a controlling stake in SPNEC. MGen is a subsidiary of power distributor Manila Electric Co. (Meralco).

“We sign this EPC agreement with Power China recognizing their expertise, exceptional track record, and unwavering commitment to excellence — we know that they will help us realize our bold ambition,” MGen President and Chief Executive Officer Emmanuel V. Rubio said.

Power China, a state-owned enterprise, focuses on the planning, design, and construction of electric power infrastructure with a presence across Africa, Asia, and Europe.

For the west side, TSPI recently inked an EPC contract with China Energy Engineering Group Co., Ltd. (Energy China) for the construction of the project’s section accounting for 1,400 MWp for solar and 3,300 MWh for energy storage.

Last month, the companies officially broke ground for the MTerra Solar Project, marking the full swing of its construction.

The project is set to deliver solar energy under a 20-year, 850 MW mid-merit power supply agreement to Meralco.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Moana 2 and Wicked lift US box office to Thanksgiving weekend record

LOS ANGELES — Walt Disney’s animated musical Moana 2 debuted with an estimated $368 million in global ticket sales through Sunday and combined with Wicked and Gladiator II to deliver the biggest Thanksgiving weekend in US and Canadian box office history.

A sequel to the 2016 animated film, Moana 2 reunites Auli’i Cravalho as the wayfinding title character with demigod Maui, voiced by Dwayne Johnson, on a voyage to break a curse and reunite the people of the ocean.

Initially envisioned as a series for the Disney+ streaming service, Moana 2 racked up a record $221 million from domestic ticket sales over the Thanksgiving period from Wednesday through Sunday. That surpassed Frozen 2’s holiday haul of $125 million in 2019.

For all movies in theaters this weekend, the domestic total hit $420 million, smashing the 2018 Thanksgiving record of $315.6 million led by Ralph Breaks the Internet and Creed II.

The results provided Hollywood studios and cinemas a reason to celebrate after prolonged closures during the COVID-19 pandemic and concerns that audiences might abandon theaters in favor of staying home to watch streaming TV.

“If you make the right movie, a movie with heart and humor that appeals to audiences, they will come to the theater,” Disney Entertainment Co-Chairman Alan Bergman said at a recent Moana 2 screening in Los Angeles.

The figures also showed Hollywood had rebounded from disruptions caused by strikes by writers and actors last year. Chains such as AMC Entertainment and Cineworld were left with a thin schedule for moviegoers in the first half of 2024.

Wicked, the adaptation of a beloved Broadway musical that is a prequel to The Wizard of Oz, brought in $117.5 million over Thanksgiving. Its global total after two weekends in theaters reached $359.2 million, distributor Uni-versal Pictures said.

Paramount Pictures’ action epic Gladiator II, the sequel to a best picture winner two decades ago, hauled in $44 million domestically over the holiday and brought its global total to $320 million.

Before the weekend, year-to-date domestic ticket sales had hovered nearly 11% behind the same point in 2023, according to data from Comscore. The Thanksgiving tally narrowed the deficit to 6.4%.

Still, the receipts remained significantly below pre-pandemic levels. Through Sunday, domestic ticket sales for 2024 were roughly 24% lower than the pace of 2019.

Paul Dergarabedian, senior media analyst at Comscore, said the frenzy at theaters this weekend would likely fuel strong sales in the coming weeks. He cited a number of potential hits reaching theaters in December to “help the industry take the year out on a high note.”

They include Kraven the Hunter, the animated Lord of the Rings: the War of the Rohirrim, Sonic the Hedgehog 3, and Mufasa: The Lion King, he said. — Reuters

PhilHealth budget tied to tobacco tax money, credit ratings upgrade

There are three phrases that I regularly read used in the continuing opposition by health activists and lobbyists over the excess PhilHealth (Philippine Health Insurance Corp.) funds.

One is “defunding PhilHealth.” “Defunding” means that a budget is slashed from xx billions to zero. This is not happening so the term is plain emotional and dishonest.

In 2023, PhilHealth had a budget of P100 billion, largely sourced from tobacco excise tax collections, which peaked at P176 billion in 2021. Under RA 11346 of 2018 which raised sin tax rates, 50% of excise tax revenues from tobacco, alcohol, sugar-sweetened beverages (SSB) should go to PhilHealth and the Department of Health (DoH).

When the tobacco tax rate increased from P50/pack in 2021 to P55/pack in 2022, tobacco smuggling and illicit trade exacerbated and tobacco tax revenues declined for the first time, down to P160 billion in 2022. The PhilHealth budget declined to P61 billion in 2024.

Then in 2023, the tobacco tax rate further increased to P60/pack and tobacco smuggling got even worse and government tobacco tax revenues further declined to only P135 billion, or P41 billion less than 2021’s level. In 2024, the tax rate further increased to P63/pack, the illicit tobacco trade worsened again, and the projected tobacco tax revenues will further decline to only about P122 billion.

The health lobbyists demanded an even higher PhilHealth budget for 2025 of up to P172 billion, even if they knew that their beloved tobacco tax money keeps declining. They did not get what they wished so now they blame the departments of Budget and Finance. This instead of blaming the high incidence of illicit trade in tobacco and the shift of smokers from legal to illegal tobacco, plus the shift to vapes from tobacco.

Anyway, PhilHealth will still get funding despite the declining tobacco tax money. PhilHealth will not be “defunded” in 2025 but it will receive fewer funds — P47.5 billion based on the Senate budget bill for 2025 (see Table 1).

The second phrase I see is “PhilHealth indirect contributors.” The indirect contribution to PhilHealth is the 50% share from excise tax revenues from tobacco and sugar-sweetened beverages. So, are the health lobbyists implying that the non-direct contributors to PhilHealth are the smokers, vapers, and sweet beverage drinkers? It does not sound logical because most patients are prohibited by their attending doctors from smoking and eating sweets.

The third phrase I read is “Insurance contract liabilities (ICL)… amounted to P1.128 billion.” As discussed last month in this column, “On the PEB in London, the PhilHealth funds, and the US elections” (Nov. 5), I ex-plained that “ICL is Present Value of Future Outflows minus Present Value of Future Inflows… So ICL are just estimates, not backed up by actual claims or contracts with hospitals and health professionals.”

Since ICL are just estimates based on certain assumptions, when the assumptions change, the ICL also changes significantly. See the fluctuation and variability of ICL estimates: P1 trillion in 2020, P0.34 trillion in 2021, P0.27 trillion in 2022, P1.15 trillion in 2023. Even that P1 trillion ICL is just hypothetical and not actual claims made by healthcare providers like hospitals.

One mistake that was made by the health lobbyists and activists was when they moved for the earmarking of tobacco tax revenues for PhilHealth and the DoH. They are happy when there are more smokers and drinkers of legal products because then the tax revenues increase. When smokers shifted to illegal or illicit products because of the high tobacco tax rate, the revenues declined, and funding for PhilHealth declined.

CREDIT RATINGS
Last week, on Nov. 26, S&P raised the Philippines’ credit rating from “BBB+ stable” (given in April 2019) to “BBB+ positive.” So, the next ratings upgrade for the Philippines would be “A-,” and will hopefully be given within the next 12 to 24 months. This is good news for us.

I noticed that several developed countries have very high ratings of AA to AAA yet have had a high level of corporate bankruptcies recently, like Australia and Germany. In contrast, a number of East Asian economies also have high credit ratings but are seeing flat or a declining number of bankruptcies, like Singapore, Taiwan, Hong Kong, and South Korea (see Table 2).

The challenge for us, especially the government economic team, is to attract those failing and migrating companies to move from North America, Australia, and Europe to the Philippines. We have third fastest GDP growth in Asia next to India and Vietnam, have improving credit ratings, declining inflation and unemployment rates, and other positive factors.

 

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

minimalgovernment@gmail.com

DMCI Homes eyes up to 3 new projects

THE VALERON TOWER -- DMCIPROJECTS.NET

By Almira Louise S. Martinez, Reporter

CONSUNJI-LED developer DMCI Homes, Inc. is eyeing to launch two to three more projects in 2025, according to its president.

“If sales are very good, we will launch maybe two or three more projects,” DMCI Homes President Alfredo R. Austria told reporters on Friday last week.

However, this may not happen in the first half of 2025 “due to recent project launches,” he noted.

He cited new projects in Quezon City, One Delta Terraces, and Kalea Heights, the company’s first four-tower project in Cebu.

DMCI Homes is targeting P37 billion in sales and reservations for 2025.

According to Mr. Austria, Baguio, Quezon City, Taguig, and Laguna are some of the possible areas for the DMCI Homes’ next launches in the second half of 2025.

He said the company aims to focus on the sales of its existing projects before venturing into new ones.

“We also want our sales team to focus on our ready-for-occupancy projects.”

The Cresmont, a single-tower condominium in Quezon City by DMCI Homes, will have its unit turnover this month, remaining on track with its original schedule.

“We saw that many projects around us are not finished on time,” Mr. Austria said. “Despite the difficulties of the environment, especially brought by the pandemic, our delivery is still on time.”

Reflecting on the company’s challenges during the lockdown, Mr. Austria said that the majority of Cresmont units had been sold before the pandemic.

“It was actually almost sold out in 2019 before the pandemic. It was selling fast,” he said. “After the pandemic, Chinese buyers, one after the other, backed out.”

He noted that even Filipino buyers canceled their payments because of the public health crisis.

At present, around 190 units have become available again in the project.

DMCI Vice-President for Project Development Dennis O. Yap said that the lower interest rate will help the company increase its ready-for-occupancy sales.

“Before, maybe the market was discouraged from buying ready-for-occupancy units because of the interest rate,” he told BusinessWorld.

“Our main target end-users want to be able to occupy the units right away,” he said. “So, we feel like the situation of our ready-for-occupancy units will definitely improve.”

1...909910911...12,834Page 910 of 12,834
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube