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Taiwan defense ministry warns of ‘serious impact’ to security under new funding laws

Honor guards raise a Taiwanese flag at the Presidential Palace in Taipei, Taiwan Oct. 10, 2023. — REUTERS

 – Taiwan’s defense ministry warned of “serious impact” to security after opposition parties passed laws that will require a cut in defense spending of some T$80 billion ($2.45 billion) at a time when the island is facing elevated Chinese military threat.

Taiwan’s opposition parties, which hold a majority in parliament, last week passed legislation to shift spending from the central government to local municipalities, a move strongly contested by the ruling Democratic Progressive Party (DPP) and thousands of protesters.

In a statement late on Wednesday, the defesce ministry said it might need to cut its defense budget plan by 28% for next year, equivalent to around T$80 billion, to meet the new funding requirements

“It is set to deliver a serious impact to the national forces’ military build-up and combat preparedness,” the ministry said. “Major weapon equipment will not be continued to upgrade and it will be difficult to make payments to purchased items according to contracts, resulting in delays or cancellations.”

The ministry said the defense budget for next year accounted to around 2.4% of Taiwan’s GDP, but the possible cut will take it down to below 2% even as countries in the region are increasing defense spending.

“How do we persuade international friends to help us in critical moment when the enemy is invading us?” the ministry said.

China, which views democratically-governed Taiwan as its own territory, has ramped up its military pressure in recent years to assert those claims, which Taipei strongly rejects.

National Security Council Secretary-general Joseph Wu told reporters on Wednesday more discussions are needed as the budge cut will lead to “serious consequences”. He did not elaborate.

“It will send a wrong message that Taiwan does not want to defend itself. Seeing that, like-minded countries might not want to help our nation.”

The cabinet in August proposed a 7.7% year-on-year rise for defense spending to T$647 billion, a record high for Taiwan as the island adds more fighter jets and missiles to strengthen deterrence against the rising threat from Beijing.

The DPP lost its parliamentary majority in January elections and is in a stand off with the opposition on several issues. – Reuters

Hamas and Israel blame each other for ceasefire delay

A MAN looks on as Palestinians inspect a tent camp damaged in an Israeli strike during an Israeli military operation, in Rafah, in the southern Gaza Strip, May 28, 2024. — REUTERS

 – The Palestinian militant group Hamas and Israel traded blame on Wednesday over their failure to conclude a ceasefire agreement despite progress reported by both sides in past days.

Hamas said that Israel had laid down further conditions, while Israeli Prime Minister Benjamin Netanyahu accused the group of going back on understandings already reached.

“The occupation has set new conditions related to withdrawal, ceasefire, prisoners, and the return of the displaced, which has delayed reaching the agreement that was available,” Hamas said.

It added that it was showing flexibility and that the talks, mediated by Qatar and Egypt, were serious.

Netanyahu countered in a statement: “The Hamas terrorist organization continues to lie, is reneging on understandings that have already been reached, and is continuing to create difficulties in the negotiations.”

Israel will, however, continue relentless efforts to return hostages, he added.

Israeli negotiators returned to Israel from Qatar on Tuesday evening for consultations about a hostage deal after a significant week of talks, Netanyahu’s office said on Tuesday.

The U.S. and Arab mediators Qatar and Egypt have stepped up efforts to conclude a phased deal in the past two weeks. One of the challenges has been agreements on Israeli troop deployments.

Israeli Defense Minister Israel Katz, speaking with commanders in southern Gaza, said on Wednesday that Israel will retain security control of the enclave, including by means of buffer zones and controlling posts.

Hamas is demanding an end to the war, while Israel says it wants to end Hamas’ rule of the enclave first, to ensure it will no longer pose a threat to Israelis.

 

ISRAEL KEEPS UP MILITARY PRESSURE

Meanwhile Israeli forces kept up pressure on the northern Gaza Strip, in one of the most punishing campaigns of the 14-month war, including around three hospitals on the northern edge of the enclave, in Beit Lahiya, Beit Hanoun and Jabalia.

Palestinians accuse Israel of seeking to permanently depopulate northern Gaza to create a buffer zone. Israel denies this and says it has instructed civilians to leave those areas for their own safety while its troops battle Hamas militants.

Israeli strikes killed at least 24 people across Gaza on Wednesday, health officials said. One strike hit a former school sheltering displaced families in Gaza City’s suburb of Sheikh Radwan, they added.

The Israeli military said it struck a Hamas militant operating in the area of Al-Furqan in Gaza City.

Several Palestinians were killed and wounded in the Al-Mawasi area, an Israeli-designated humanitarian zone in southern Gaza, where the military said it was targeting another Hamas operative.

The war was triggered by Hamas’ Oct. 7, 2023 attack on southern Israel, in which 1,200 people were killed and 251 taken hostage to Gaza, according to Israeli tallies.

Israel’s campaign against Hamas in Gaza has since killed more than 45,300 Palestinians, according to health officials in the Hamas-run enclave. Most of the population of 2.3 million has been displaced and much of Gaza is in ruins. – Reuters

PHL growth may fall below 6% in ’25

A general view of the rush-hour traffic at a market in Manila, Philippines, Dec. 20, 2024. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

PHILIPPINE ECONOMIC GROWTH could fall below 6% in 2025 amid a “gentle” recovery in domestic demand and expectations of a widening trade deficit, Bank of America (BofA) said. 

BofA Securities economist for the Philippines Jojo Gonzales said they forecast Philippine gross domestic product (GDP) to grow by 5.9% in 2025.

This would narrowly miss the government’s revised 6-8% growth target next year.

The economy expanded by a slower-than-expected 5.2% in the third quarter, its weakest growth in five quarters.

In the nine-month period, GDP growth averaged 5.8%, slower than the 6% print a year ago.

Earlier this month, the Development Budget Coordination Committee tweaked its economic growth targets to account for “evolving domestic and global uncertainties.”

“While we expect a gentle recovery in private consumption and investments over the next year, the growth in government spending is likely to be muted, and a wider net trade deficit is anticipated,” Mr. Gonzales told BusinessWorld in an e-mail.

In the third quarter, growth in government spending slowed to 5% from 11.9% in the previous quarter.

Latest data from the Philippine Statistics Authority (PSA) showed that the country’s trade deficit ballooned to $5.8 billion in October, the widest gap in over two years.

Meanwhile, BofA said it expects inflation to average 3% next year, well within the central bank’s 2-4% target.

The Bangko Sentral ng Pilipinas (BSP) expects inflation to average 3.3% in 2025. The central bank said that risks to the inflation outlook for next year remain tilted to the upside.

Headline inflation averaged 3.2% in the 11-month period, according to latest data from the PSA.

“A weaker peso remains a risk to this forecast, though softer oil prices will likely provide a cushion to negate the impact of the weaker currency,” Mr. Gonzales said.

BofA expects the dollar strength to persist next year, with the peso potentially breaching the P61 mark.

“The US dollar will remain stronger in 2025, and our end-2025 forecast is P61,” Mr. Gonzales said.

So far this year, the peso has hit a record-low P59-per-dollar level thrice.

BSP Governor Eli M. Remolona, Jr. earlier said they are watching the peso closely and have been a bit more active in the markets than usual.

The BSP had to intervene in small amounts in the past few months amid the stronger dollar after Donald J. Trump won as US President.

Meanwhile, BofA estimates that the central bank will deliver up to 75 basis points (bps) worth of rate cuts next year.

“This will bring down the policy rate to 5% (by end-2025),” Mr. Gonzales said.

Last week, the Monetary Board reduced borrowing costs by 25 bps at its final policy review of the year, bringing the key rate to 5.75%.

The central bank has slashed rates by a total of 75 bps this year since it began its easing cycle in August.

Mr. Remolona earlier said delivering 100 bps worth of rate cuts next year might be “too much.”

The central bank will likely keep reducing rates in “baby steps” as it is still carefully monitoring upside risks to inflation, the BSP chief added.

“We also expect the Fed rate to settle at 4% — one cut in December and two cuts in the first half of 2025,” Mr. Gonzales added.

The Fed continued cuts in December after a period of aggressive rate hikes but signaled fewer cuts in 2025. Investors are now focused on how gradually the US central bank would cut rates next year, Reuters reported.

While a benign US inflation reading on Friday eased some concerns about the pace of cuts next year, markets are still pricing in just about 35 bps worth of easing for 2025.

US investors are preparing for a swathe of changes in 2025 — from tariffs and deregulation to tax policy — that will ripple through markets as Mr. Trump returns to the White House in January.

Bill on 99-year land lease for foreigners seen to boost PHL investments

The House of Representatives and the Senate last week approved separate bills allowing foreigners to lease land up to 99 years from the current 75 years. — PHILIPPINE STAR/NOEL PABALATE

By John Victor D. Ordoñez, Reporter

A MEASURE seeking to extend the maximum term for land leases entered by foreigners to 99 years is likely to help the Philippines attract more investments, analysts said.

“Investors may be more inclined to commit to projects in the Philippines when they see the availability of longer-term leases as an assurance of stability,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

He said industrial parks, economic zones and tourism-related projects are expected to benefit as foreign firms are more likely to invest if they can be assured of longer land leases.

Last week, the House of Representatives and the Senate approved separate bills allowing foreigners to lease land up to 99 years from 75 years. Both bills allow foreign investors to sublet properties, unless barred by a contract.

Under both versions, foreign private land leases related to tourism will be allowed if the investments are not less than $5 million. Of this amount, 70% must be infused in the project within three years after a contract is signed. 

The bill is one of President Ferdinand R. Marcos, Jr.’s priority measures, that the administration aims to approve before June 2025.

Lawmakers have yet to come up with a reconciled version of the measure through a bicameral conference committee.

However, Mr. Rivera said the government must come up with clear guidelines for the measure and ensure safeguards for local stakeholders.

“There may be concerns that longer lease terms could encourage speculative investments, where land is tied up for extended periods without being used productively,” he said.

“Extending lease terms could also lead to potential disputes with local communities over land use and allocation, especially in areas where indigenous peoples’ rights and agricultural interests are at stake.”

The 1987 Constitution bars foreigners from owning land in the country, but the 31-year-old Investors’ Lease Act allows foreign investors to lease private land for 50 years, renewable only once after 25 years.

“The 99-year lease bill, if passed into law, will contribute to a more favorable investment climate for foreign investors,” Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message.

He cited a provision in a Senate bill that requires a lease to be registered with the Land Registration Authority (LRA), which he said would improve the “security and bankability” of leases.

Both bills allow foreign investors to lease land for agriculture, agroforestry and ecological conservation purposes.

They will also be allowed to enjoy longer leases to build industrial estates, factories, assembly or processing plants and tourism sites.

Sublease contracts must be registered with the registry of deeds under the LRA, according to copies of both the House and Senate bills.

The proposed measures also impose a fine of P1 million to P10 million on people who enter into illegal lease agreements.

Only the Senate version imposes jail time of up to six years for lease agreement violators. Congressmen removed the imprisonment penalty.

The upper chamber’s version also provides that in cases of corporations, associations or partnerships violating lease deals, the president, manager, director, trustees or other officers will be held criminally liable.

Both versions also mandate that only the Board of Investments or relevant investment promotion agencies may review and approve long-term lease agreements.

Lease contracts will also be subject to termination if an investment project is not initiated within three years.

Leonardo A. Lanzona, an economics teacher at the Ateneo de Manila University, said the government is better off coming up with a comprehensive plan that would ease the entry and exit of foreign companies in local markets.

“We are going to replace the restrictions to attract huge corporations that aim to take control of our markets in the long run because of their absolute control over the land,” he said in a Facebook Messenger chat.

Mr. Rivera said the Philippines still needs to work on improving the general investment environment.

“Investors look at lease terms as part of a broader environment for investment, and the Philippines must continue to improve other aspects of its investment climate,” he said.

VAT refund limit for tourists ‘just right,’ to benefit MSMEs — analysts

Tourists shop at Boracay Island, Aklan province, Philippines, Nov. 30, 2021. — REUTERS

By Aubrey Rose A. Inosante, Reporter

THE P3,000 ($51) minimum purchase requirement for nonresident tourists to qualify for a value-added tax (VAT) refund is “just right” to ensure small businesses benefit, analysts said.

President Ferdinand R. Marcos, Jr. recently signed into law Republic Act (RA) No. 12079, which allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores, in an effort to boost tourism receipts.

“The P3,000 is just right to benefit micro, small and medium enterprise (MSME) retailers and local products,” Philippine Retailers Association (PRA) President Roberto S. Claudio said.

He said the purchase cap is kept to a minimum to benefit locally made products.

“I think it’s a good entry and good starting point. Some countries are still higher than P3,000 as well. I think we’re above the middle, so I think that’s a good place to be,” Tourism Congress of the Philippines President James M. Montenegro said via phone call.

Under RA 12079, the value of the locally bought goods from accredited stores must reach at least P3,000 per transaction, provided these goods are taken out of the country within 60 days of purchase.

“This law is primarily designed to boost tourist arrivals and expenditure. Hopefully, it will also increase the sales revenue of retailers,” Mr. Claudio said.

Mr. Montenegro said the minimum purchase amount could be adjusted in the future.

The threshold is subject to review and adjustment every three years by the Finance secretary, upon recommendation of the Commissioner of Internal Revenue, considering the inflation data from the statistics agency.

“I think the minimum rate is at par with our ASEAN [Association of Southeast Asian Nations] neighbors. If you look at the minimum amounts in other countries, it is almost the same,” Eleanor L. Roque, a tax principal at P&A Grant Thornton, told BusinessWorld.

The Philippines has joined other ASEAN countries with a tax refund program for nonresident tourists. The scheme has increased retail activity, particularly in sectors such as fashion, electronics and souvenirs.

In Thailand, tourists are eligible for a VAT refund if they buy goods worth at least 2,000 baht ($58) from each store per day.

In Malaysia, the minimum purchase is 300 ringgit ($67). Singapore allows tourists to spend at least S$100 ($74), while in Indonesia, it starts at 500,000 rupiah ($31).

“It is good to have a minimum amount as it limits the refund claim to valuable expenses. De minimis spendings are normally not considered for VAT refund as it is not administratively practical. In some cases, the cost will be more expensive than the amount being refunded,” Ms. Roque said.

She said the government should tap accredited international firms in the VAT refund processing, adding that the “government should take advantage of the track record and best practices of these known companies.”

Ms. Roque said the government should ensure the goods bought are really brought out of the country.

“Physical inspection of the goods when exiting the country should be strict to ensure that local buyers do not use tourists for availing themselves of the VAT refund,” she added.

However, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the P3,000 threshold “may not be enough to significantly encourage higher spending among affluent tourists,” especially compared with ASEAN counterparts.

“A higher or more flexible threshold might align better with international best practices and encourage larger purchases,” he said.

Mr. Rivera also urged the government to simplify the VAT refund process, rather than make it “extra bureaucratic.”

He cited countries such as Singapore and Thailand, which have digitalized their VAT refund process at airports or designated outlets, reducing friction.

Mr. Rivera also urged the government to expand access by having refund points beyond airports like seaports or malls, to ensure greater convenience.

“The Philippines must also do away with excessive forms by using technology to link transactions directly to refund systems that can streamline the process and minimize fraud. Tax refund should not be as difficult as applying for a plate number, license, etc.,” he said.

SHOPPING TOURISM
At the signing ceremony last week, Mr. Marcos said the law is expected to boost tourism spending by 30% and support the county’s goal to become a major shopping destination.

“You’d probably see that shopping accounts for approximately 20% of total inbound tourism expenditure. This is where the impact of the VAT refund law for nonresidents will be felt,” University of the Philippines Professor Edieser DL. Dela Santa said in an e-mail.

As the Philippines boosts tourism spending, he said arrivals would not necessarily increase because foreign tourists are more likely to be influenced by other conditions like airfares and exchange rates.

In 2023, tourism-related spending by nonresidents stood at P697.46 billion, the Department of Tourism (DoT) said.

The United Nations Tourism said on its website that shopping is a key area of tourist spending. It significantly contributes to national economies, both directly and through its connections to other economic sectors.

The Department of Finance (DoF) has said foregone revenues from the law could be offset by higher tourism spending.

“Data from the DoF show savings from the refund fully channeled into additional tourism spending may boost economic output by P2.8 billion to P4 billion annually,” it said.

Happiness is on the way this December for Toyota customers

Amazing deals on the Corolla Cross, Yaris Cross, and more await

Toyota Motor Philippines (TMP) continues to spread the holiday cheer with deals on its popular vehicles.

Spend the Christmas break with the family in a brand-new Corolla Cross! Get the 1.8 V HEV variant for a down payment of PHP 264,450 under the Pay Low option. This option offers customers down payments as low as 15% with free insurance for the first year, free LTO registration for three years and no chattel mortgage at 60 months payment terms.

Those who opt to pay in straight cash will get a PHP 60,000 discount on their new unit.

The 1.8 G HEV variant is also available for a monthly payment of PHP 15,796 under the Pay Light option, which offers customers low monthly plans with 50% down payment at 60 months amortization.

For those looking for a first car as a way to celebrate the year’s milestones, the Yaris Cross 1.5 V CVT in Scarlet Red is available at a down payment of PHP 195,300 under the Pay Low option. Those who will pay in straight cash, meanwhile, will get a PHP 50,000 discount.

The 1.5 G CVT variant can also be availed at a monthly payment of PHP 13,220 under the Pay Light option.

Customers looking for an electrified daily drive can consider the S HEV variant of the Yaris Cross. This variant offers a PHP 100,000 discount for those who will purchase through straight cash.

Free Periodic Maintenance

With more people on the road for the holidays it is recommended that vehicles are always in top shape to prevent any accidents.

To help customers get into the habit on bringing in their vehicle for maintenance, Toyota is offering a FREE periodic maintenance service (PMS) until the 20,000 km checkup for all brand-new Raize, Veloz, Rush, and select variants of the Vios, Avanza, Innova, Fortuner and Hilux.

The free PMS may be availed within 36 months from the release date of the vehicle as long as customers don’t miss any maintenance from 1,000 to 20,000 km.

Trade-in Rebate, Insurance and Warranty

It’s the season of giving, so what better way to surprise loved ones than with a new and elevated ride.

Toyota owners who will trade in their Vios, Innova, Fortuner or Hilux for a brand-new Wigo, Yaris Cross or Zenix (Q HEV not included) will get a PHP 25,000 rebate. Meanwhile, those who opt for a new Rush, Raize, Avanza, Veloz, Fortuner or Hilux will get a PHP 15,000 rebate.

This rebate can be used as a cash discount for the purchase of the brand-new unit. It may also be used to purchase Toyota Genuine Accessories.

All brand-new Wigo, Veloz, and select variants of the Vios, Avanza, Innova, Fortuner and Hilux are also entitled to a free one-year comprehensive insurance provided by Toyota Insure when purchased during the promo period.

The free one-year insurance covers 24/7 personal accident, passenger auto personal accident, three-year CPTL, own damage (OD), loss/theft, excess bodily injury (EBI), property damage (PD), acts of nature (AON), and includes emergency roadside assistance.

All brand-new Vios G and XLE bought from authorized Toyota dealerships also get a warranty coverage of five years or 150,000 km, whichever comes first.

Make every drive this December a festive one with Toyota. Promo runs from Dec. 12 to 31, 2024, only. Check out the full mechanics, offers, and participating models here: https://toyota.com.ph/promos/ToyotaHolideals.

DTI Fair Trade Permit No. FTEB-209493 Series of 2024

Follow Toyota Motor Philippines on Facebook, Instagram and X, and join the ToyotaPH community on Viber to get the latest updates on products, services, and promos.

 


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Rate cuts may reduce energy dev’t costs and boost capacity

PHILIPPINE STAR/EDD GUMBAN

By Sheldeen Joy Talavera, Reporter

A SERIES of rate cuts totaling 75 basis points (bps) by the Bangko Sentral ng Pilipinas (BSP) this year could reduce the funding costs of energy companies and boost renewable energy capacity, analysts said.

“The recent string of rate cuts certainly lends a bit more breathing room to energy developers,” Jayniel Carl S. Manuel, an equity trader at Seedbox Securities, Inc., said in a Viber message. “Lower borrowing costs can help ease some financial strain on projects that often demand hefty upfront capital and long repayment horizons.”

Over time, the policy rate cuts could trim their expenses, “potentially making room for more competitive power rates down the line,” he added.

Andrei G. Soriano, research associate at China Bank Securities Corp., said the cuts could help reduce energy project costs especially since most of these are partly financed by debt given significant capital expenditures.

The Philippine central bank last week lowered the key rate for a third straight time at its final policy meeting of the year, even as it signaled fewer cuts next year.

The Monetary Board cut the target reverse repurchase rate by 25 bps, bringing the policy rate to 5.75%, as expected by 13 of 16 analysts in a BusinessWorld poll.

The central bank has slashed rates by a total of 75 bps this year since it began its easing cycle in August.

April Lynn C. Lee-Tan, chief equity strategist at COL Financial Group, in a Viber message noted that the BSP had also cut the reserve requirement ratio, which is an “added liquidity for banks and should theoretically help reduce funding costs.”

A developer typically takes out a loan for an energy project. Since the borrowing cost is a component of the project cost, it affects the developer’s investment returns. Assuming other expenses stay the same, a project with lower borrowing costs will be more profitable.

“A reduction in interest rates reduces the cost of borrowing for energy firms, particularly those financing large-scale infrastructure and renewable energy projects,” said Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc. “This can encourage more investments.”

“Cheaper credit may incentivize both domestic and foreign investors to fund energy projects, boosting capacity expansion,” he added.

While the interest rate cuts provide some relief, analysts said these might not have a significant impact on large-scale energy investments.

“While the rate cuts are a positive step, they alone are not enough to address the challenges faced by the energy sector,” Mr. Arce said. “A combination of financial incentives, policy reforms, and infrastructure development is essential to ensure the long-term viability and growth of energy projects.”

Mr. Manuel said obtaining an affordable loan is “only one piece of a much larger puzzle.” That includes regulatory clarity, stable policy frameworks, and streamlined permitting processes, as well as improved infrastructure for grid integration especially for renewable energy projects, he said.

He said ensuring long-term contracts are honored and that tariff structures are predictable could have “a far greater impact than even a handful of rate cuts.”

“While the cuts provide some relief, energy projects are capital-intensive and often require longer-term financing,” Mr. Arce said. “The current cuts may not significantly offset the high costs of construction, especially for renewable projects relying on imported materials.”

Metro Manila Film Festival 2024: Heartfelt drama of hope and redemption

STILL FROM Green Bones

By Brontë H. Lacsamana, Reporter

Movie Review
Green Bones
Directed by Zig Dulay

EACH person has the capacity for good and evil within them, shaped by circumstance and the influence of others. In this heartfelt drama, a corrections officer and a soon-to-be-released criminal grapple with this notion as they cross paths in a provincial penal colony where persons deprived of liberty (PDLs) are being rehabilitated for release.

The film’s title, Green Bones, refers to the belief that finding the color green in the cremated bones of a deceased person signifies their goodness in life.

The film was developed by director Zig Dulay under GMA Pictures. This marks their second foray together into the Metro Manila Film Festival territory following last year’s Best Picture winner Firefly, and it delivers a story just as modest and human. Notably, it is penned by National Artist for Film Ricky Lee with co-writer Anj Atienza.

At the heart of this gripping drama is Dennis Trillo, who gives a raw yet layered performance as the inmate Dom Zamora, opposite the capable passion of Ruru Madrid’s corrections officer Xavier Gonzaga.

The story is centered on the two and their clash of perspectives, the latter gradually figuring out the mystery of the criminal’s past as he tries to look past the thick haze of prejudice he has against murder convicts (his sister having been killed by one year before). While Madrid does a solid job, the potent pain brewing just beneath the surface of Trillo’s guarded expressions is clearly Best Actor frontrunner-worthy.

The film takes its time letting us know why Dom Zamora did what he did, and what plans he’s cooking up now, pitting the righteous officer against the morally grey criminal whose history is more complicated than expected. It’s a dynamic people may recognize from the likes of Shawshank Redemption and Les Miserables, but this time set in the terribly corrupt landscape of the Philippines. The audience is challenged to ponder what it means to be good, to question each person’s capacity to change, in a world such as this.

Supporting the two leads is a reliable cast, with Alessandra de Rossi as a mysterious helping hand to Dom; Wendell Ramos as an abusive jailer; Michael De Mesa as the veteran warden; and Sienna Stevens and Sofia Pablo as the present-day and younger versions of a little girl whose story is tightly linked with Zamora’s past. Ronnie Lazaro, Mikoy Morales, Royce Cabrera, Gerard Acao, and the other inmates surrounding Dom also do a stellar job in making the penal farm come to life and brim with hope.

The narrative, though presented as though it is full of twists and turns, actually has a straightforward premise that one can predict. Still, the moral of the story is rewarding to watch play out. The film is impeccably shot and well-acted, with the potential to leave audiences in tears as the typical firm, black-and-white stance against criminals is challenged in favor of a more humane approach to their rehabilitation and parole.

Green Bones is not the sort of escapist fare that fills theaters in this day and age, especially with movie tickets costing a fortune, so it’s sad to see that it is one of the underdogs at this year’s Metro Manila Film Festival. But hopefully the heart of its story will be a good enough draw and push more theaters to screen it over the next few weeks.

A poignant aspect of the film is the cinematography that beautifully renders the greenery of its picturesque island farm setting. A certain tree at the center of the penal colony becomes a particularly moving set piece which supports the film’s themes of hope and redemption. For a narrative-driven tale that tends to be indulgent in its presentation of morality and drama, the visuals balance it out with a naturalistic view of the world the PDLs inhabit.

Ultimately, while officer Gonzaga’s initial cynicism dictates that we be wary of others and expect the worst, Green Bones concludes with the truth of the love behind inmate Zamora’s actions, challenging us to see the complexity of humans and the possibility of kindness in each.

MTRCB Rating: PG

Barcode technology to boost healthcare sector’s efficiency

REUTERS

THE ADOPTION of barcode technology could help streamline Philippine health professionals’ workflows and address inefficiencies in the medical supply chain, according to GS1 Philippines, Inc.

“Technologies like tools for data storage and exchange, remote data capture, and virtual care are proven to enhance health outcomes by improving medical diagnoses, treatment decisions, digital therapeutics, clinical trials, and fostering evidence-based knowledge for healthcare professionals,” GS1 Philippines said in a statement.

Through barcode technology under GS1 standards, health manufacturers and distributors can easily record data in clinical systems, it said.

Healthcare professionals can also use barcodes for patient identification, medication administration, and the tracking of medical supplies and equipment.

“At GS1 Philippines, we believe that adopting streamlined barcode technology in healthcare is crucial for enhancing patient safety and improving the efficiency of healthcare workflow,” GS1 Philippines’ Roberto S. Claudio was quoted as saying. “This innovation empowers health professionals to deliver better care by having a tool for data integration and interoperability.”

“Integrating barcode technology is not just about digitalization — it’s about creating a safer, more transparent healthcare system that improves patient care, reduces errors, and ensures an efficient supply chain of authentic medicines and medical products, protecting patients from counterfeit goods,” Teodoro B. Padilla, executive director of the Pharmaceutical and Healthcare Association of the Philippines, added.

The push for modernizing healthcare processes comes as the World Health Organization (WHO) recently highlighted the transformative potential of digital transformation on healthcare.

Under the WHO’s Global Strategy on Digital Health 2020-2025, tools specializing in data storage and exchange, remote data capture, and virtual care can enhance medical diagnoses, treatment decisions, digital therapeutics, and clinical trials.

“There is a growing consensus in the global health community that the strategic and innovative use of digital and cutting-edge information and communications technologies will be an essential enabling factor towards ensuring that one billion more people benefit from universal health coverage,” it said. — Beatriz Marie D. Cruz

ERC caps reserve market price at P25/kilowatt-hour

PHILSTAR FILE PHOTO

THE Energy Regulatory Commission (ERC) has set the ceiling price for the power reserve market at P25 per kilowatt-hour (kWh), subject to review every five years.

The agency adopted a reserve offer price floor of P0 per megawatt-hour (MWh) and a cap of P25,000 per MWh, according to a document posted on its website.

The reserve market allows the system operator to buy power reserves from the wholesale electricity spot market (WESM) — the trading floor of electricity — to meet the reserve requirements of the energy system.

These reserves are services needed to maintain balance in the power system to ensure normal frequency and voltage levels in response to demand changes, variability of renewable energy and a possible loss of a large generating unit, according to the Energy department.

“The interim offer price floor and cap shall be reviewed and recomputed one year after its implementation, contingent on the collection of sufficient data from the annual submission of generation companies,” the ERC said.

The commission said it would review the offer price floor and cap every five years, or earlier when needed. The full commercial operations of the reserve market started in January.

The Energy department temporarily imposed a price cap of P32,000 per MWh, which is equivalent to P32 per kWh, and a price floor of P0 per MWh. The ERC, however, deemed the offer ceiling “excessive.”

In March, the ERC suspended the operations of the billing and settlement of the reserve market after the significant price increases in reserve costs for the month.

The commission ordered the settlement of 30% of the amounts in May to allow power generators to partially recover their costs.

The ERC then lifted the suspension in July to pave the way for the resumption of reserve trading for contracted and merchant plants.

But it ordered the Independent Electricity Market Operator of the Philippines to recalculate the amounts for the February and March billing periods.

Earlier this month, the ERC allowed the recovery of the remaining 70% or P3.05 billion for power generators that supplied the reserve market during the period, which will be collected from consumers starting next year. — Sheldeen Joy Talavera

Metro Manila Film Festival 2024: What if….

By Edg Adrian A. Eva, Reporter

Movie Review
The Kingdom
Directed by Mike Tuviera
Produced by MQuest Ventures, Inc., M-ZET TV Productions, and APT Entertainment, Inc.

(This review includes marked spoilers.)

WHAT IF the Philippines was never colonized?

This question has lingered in the minds of many Filipinos fascinated by history, myself included. The film The Kingdom takes this thought-provoking premise and brings it to life. Set in an alternative world, it reimagines the Philippines as the Kingdom of Kalayaan — a monarchy and one of the few nations that remain free from foreign colonization.

The film establishes the Kingdom of Kalayaan as a formidable stronghold, reflecting an aspiration for how the Philippines might have protected its territories if history had taken a different path, as shown in the opening scenes of the movie.

With its nuanced take on historical fiction, The Kingdom’s producers made unexpected casting choices with Vic Sotto as Lakan Makisig, in a departure from his usual fantasy and comedy roles. Piolo Pascual also shines as Sulo, an outcast farmer, showcasing his acting prowess following his performance in Mallari.

Lakan Makisig faces a difficult decision in selecting a successor from among his three children: Dayang Matimyas and Dayang Lualhati, portrayed by Cristine Reyes and Sue Ramirez, and Magat Bagwis, played by Sid Lucero. Meanwhile, Sulo, despite his anger toward the monarchy, becomes a crucial figure in determining the kingdom’s fate.

The concept of The Kingdom is ambitious, requiring a large-scale production to effectively present an alternative version of the Philippines. The film successfully incorporates Filipino beliefs and traditional attire, highlighting how they shape the nation’s identity. Notable moments include the royal wedding of Dayang Lualhati to a Thai prince, and — spoiler alert! — the Boat Burial of Lakan Makisig following his battle with Sulo, a fight he cannot refuse due to old customs.

As mentioned, the concept of creating an alternative version of the Philippines is ambitious, but it misses the opportunity to depict a reimagined Filipino community or city, which makes it difficult for the audience to fully immerse themselves in this alternate reality. Aside from the CGI exterior of the palace, the rest of the sets are filmed in recognizable locations around Metro Manila.

The story is ambitious as it explores various plotlines, such as the lives of Lakan Makisig’s children, Sulo’s banishment, and Dayang Lualhati’s kidnapping and return. However, dealing with so many plots compromises character development, especially that of Magat Bagwis. (Spoiler alert!) Despite being set up as a key figure and next in line for the throne, his abrupt death during peace talks with the separatist group Tiwalag leaves him with no significant highlights, despite his prominent role on paper.

This leads me to conclude that The Kingdom could work better as a 10-episode series, rather than just a two-hour film. The concept would be more effective in bite-sized installments. (Spoiler alert!) A key example is the sudden revelation of Dayang Matimyas as the mastermind behind her sister’s kidnapping and the plot to overthrow the king. The twist feels abrupt. Also, her motives would have been more powerful if conveyed through visual representations, like flashbacks, rather than just a simple conversation with her father.

The highlight of The Kingdom lies in its impressive fight scenes. It’s worth noting that Vic Sotto, at the age of 70, and Piolo Pascual, 47, both deliver action-packed sequences that go beyond the typical fight scenes, with each grounded in their characters’ personal motivations.

Their prison scene is another standout, highlighting the contrast between the heavy responsibilities of wearing a crown and the burdens of being an outcast. The two actors’ emotions powerfully show that their characters carry weight, whether it’s the pressure of ruling a kingdom or the struggle of living in poverty, and how society often forces individuals to bear these burdens without choice.

Overall, the film’s director Mike Tuviera effectively immerses the audience in an uncolonized Philippines. While the film has its flaws, it powerfully highlights that corruption, poverty, and inequality can persist, regardless of the form of government, when personal greed outweighs the needs of the people. This message resonates, offering a thought-provoking reflection on society’s enduring issues, even in an alternative and ideal world.

MTRCB Rating: PG

Digitalization to drive PHL rural banks’ growth

THE PHILIPPINE rural banking industry’s growth will be driven by its digitalization as more players embrace the neobank model, an industry head said.

“Growth will be driven mainly by neobanks — rural banks that operate like digital banks but are not actually digital banks. [They have] very similar business models. They have very strong growths,” Rural Banking Association of the Philippines (RBAP) Executive Director Rafael Francisco D. Amparo told BusinessWorld.

“It’s the way forward. Everyone needs digital.”

Mr. Amparo said some foreign players have entered the Philippine market via the rural banking industry to operate as neobanks amid the Bangko Sentral ng Pilipinas’ (BSP) ongoing moratorium on the grant of digital banking licenses, which will be lifted by next month.

Similar to digital banks, neobanks offer banking services via online platforms and electronic channels. However, the BSP has separate licensing and prudential requirements for digital banks as they are treated as complex banks, like universal and commercial lenders.

Meanwhile, existing thrift, rural, and cooperative banks that primarily offer financial products and services processed via digital channels can do so under an Advanced Electronic Payments and Financial Services license.

In 2021, the BSP capped the number of digital banking licenses at six as it sought to boost its regulatory capacity and supervision of the sector. It will lift the moratorium on the grant of new licenses on Jan. 1 and will allow four more digital banks to operate in the country, which would bring the maximum number to 10.

Mr. Amparo said the rural banking industry has been performing well.

“If we look at the performance of the rural banking industry in the last three years, we’re not in trouble. I think we have the most potential for growth in terms of capital, income, and loans,” he said.

“When I started in the BSP in 1998, there were more than 800 rural banks. There are less than 400 now. Consolidation has been going on for the last 30 years. It’s nothing new.”

The BSP has been encouraging rural banks to consolidate as part of its Rural Bank Strengthening Program (RBSP) that was launched in 2022.

The RBSP features five time-bound tracks that aim to strengthen the capital position of rural banks: merger/consolidation, acquisition/third-party investment, voluntary exit/upgrade of banking license, capital build-up program, and supervisory intervention.

In September 2022, the BSP raised the minimum capital requirement for rural banks with a head office and as many as five branches to P50 million, while those with six to 10 branches must have a minimum capital of P120 million. Those with more than 10 branches must have a capital of at least P200 million. Rural banks have until 2027 to comply with the new rules.

The Philippine rural banking sector’s combined net income was at P8.34 billion at end-September, up from P6.29 billion a year prior, latest BSP data showed.

Total assets stood at P430.396 billion at end-September, rising from P368.71 billion in the previous year.

Meanwhile, the sector’s total capital accounts stood at P77.92 billion as of September, with capital stock at P46.67 billion, central bank data showed.

Its solo capital adequacy ratio was at 17.74% as of September, while the total capital accounts to total assets ratio stood at 18.16%. — Aaron Michael C. Sy