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Cagelco II clarifies refund balance as P20 million

PHILIPPINE STAR/MICHAEL VARCAS

THE Cagayan II Electric Cooperative, Inc. (Cagelco II) said the outstanding refund balance to its member-consumers as of March was P20 million.

This clarification came after Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta said in July that the refund balance amounted to P20 billion.

In a letter from the ERC dated Aug. 6, signed by Ms. Dimalanta and provided by Cagelco II to BusinessWorld on Monday, the company had an outstanding balance of P20.42 million as of March.

This was part of the P27.27-million refund directed by the ERC after approving, with modifications, Cagelco II’s filings for over/under recoveries from January 2011 to December 2016, totaling P37.78 million.

“The Commission has verified Cagelco II’s submission and compliance with the decision. As of March 2024, the outstanding balance to be refunded was P20 million and not P20 billion,” Ms. Dimalanta said.

As of June, Cagelco II is implementing its refund process and has a remaining balance of around P10.25 million for refund to its member-consumers.

Cagelco II, one of two electric cooperatives in Cagayan, covers the northern municipalities of Aparri, Camalaniugan, Lallo, Abulug, Ballesteros, Gattaran, Allacapan, Lasam, Sta. Ana, and Gonzaga.

The areas also include Buguey, Sta. Teresita, Sta. Praxedes, Sanchez Mira, Pamplona, Claveria, and parts of Sto. Niño. It also provides electricity services to the lone districts of the municipality of Apayao. — Sheldeen Joy Talavera

Walt Disney forms business unit to coordinate use of AI, augmented reality

WALT DISNEY is forming a new unit to coordinate the company’s use of emerging technologies such as artificial intelligence (AI) and mixed reality, as the media giant explores applications across its film, television, and theme park divisions.

The newly formed Office of Technology Enablement will be led by Jamie Voris, who spearheaded development of Disney’s app for the Apple Vision Pro mixed reality device, according to an e-mail seen on Friday by Reuters.

“The pace and scope of the advances in AI and XR (extended reality) are profound and will continue to impact consumer experiences, creative endeavors and our businesses for years to come — making it critical that Disney explore the exciting opportunities and navigate the potential risks,” Disney Entertainment Co-Chairman Alan Bergman wrote.

“The creation of this group underscores our dedication to doing that.”

Mr. Bergman noted the unit will focus on fast-moving areas of technology, such as AI and mixed reality, which blends the physical and digital worlds. It will not centralize work on these projects, but rather, ensure the various projects around the company fit with its broader strategy.

Reuters first reported Disney had formed a task force to study artificial intelligence and how it could be applied across the entertainment conglomerate.

Various divisions within Disney are exploring applications for augmented reality, which places digital elements into the real world, virtual reality (VR), which immerses the user in a simulated environment, and mixed reality which combines both.

Disney has been building expertise across the organization to capitalize on the emerging technology.

For example, Kyle Laughlin, a Disney veteran with a background in augmented and virtual reality and artificial intelligence, returned to the company in March as senior vice-president of research and development for Walt Disney Imagineering, the creative force behind Disney’s theme park attractions. He briefly left Disney in 2019 to lead Amazon’s Alexa Gadgets division.

As Meta and Snap unveiled a new generation of lightweight glasses that provide consumers a fashionable alternative to bulky VR goggles, Disney has been quietly assembling a team focused on how best to harness the technology to bring new experiences to the company’s theme parks and consumers’ homes, the sources say.

Tech companies have sold about 1.7 million AR/VR headsets so far this year, data from market research firm IDC showed. Meta is still the clear market leader, with a 60.5% market share, but is starting to face pressure in the space from competitors like Sony, Apple, and ByteDance. — Reuters

Accused turned the tables

FORMER PRESIDENT RODRIGO R. DUTERTE — PHILIPPINE STAR/JESSE BUSTOS

“Turn the tables” is an idiomatic expression that means to make something happen that is the opposite of what is supposed to happen. That was what happened in the Senate inquiry into the War on Illegal Drugs. The tables were turned. The accused grilled the accusers and dressed them down.

BACKGROUND
During the Quad committee* hearings in the House of Representatives, resource persons implicated former president Rodrigo Duterte, Senator Ronald “Bato” dela Rosa, and Senator Christoher “Bong” Go in the alleged extra-judicial killings that happened during the war on drug. Resource persons Police Col. Jovie Espenido and retired Lt. Col. Royina Garma alleged that Duterte, when he was mayor of Davao City and subsequently when he was president, ordered police to gun down drug pushers and users. Ms. Garma also said Duterte created a reward system for police officers who killed drug lords and drug addicts, the amounts ranging from P10,000 to P1 million. The money was supposed to have flowed from Go.

Another Quad committee resource person, self-confessed drug lord Kerwin Espinosa, said Dela Rosa ordered him to implicate former senator Leila de Lima in the illegal drug trade, warning that he and members of his family would suffer the same fate as his father, Rolando Espinosa, who was killed by a Criminal Investigation and Detection Group team in his jail cell.

Dela Rosa was the Philippine National Police chief at the height of Duterte’s war on drugs, while Go was his special assistant. They denied the claims made before the Quad committee. In reaction, Dela Rosa proposed that the Senate Committee on Public Order and Dangerous Drugs, which he chairs, conduct its own investigation on the drug war.

But Senate President Francis Escudero rejected Dela Rosa’s proposal and designated the Committee on Accountability of Public Officers and Investigations (the Blue Ribbon committee) to conduct the inquiry. He appointed Senate Minority Leader Koko Pimentel as chairman of the subcommittee as the Blue Ribbon committee chairperson, Senator Pia Cayetano, is supposed to be busy with her reelection bid. The campaign period for senator does not start until Feb. 11, 2025. It should be noted that Duterte ran for president in 2016 as the nominee of PDP-Laban, of which Koko Pimentel was national president.

Dela Rosa dismissed calls for him and Go to go on leave to avoid a “conflict of interest,” insisting that he needs to attend the hearings. He assured his fellow senators that he would entertain questions from them to clarify the accusations made against him and to share what he knows about the drug campaign. Go also made known his intention to attend the hearing, both as a member of the Blue Ribbon sub-committee and as a resource person.

The sub-committee opened its probe last Monday, with Blue Ribbon committee members Dela Rosa, Go, Mark Villar, Robin Padilla, Risa Hontiveros, ex officio members Senate President pro tempore Jinggoy Estrada and Majority Floor Leader Francis Tolentino in attendance. Senator Joel Villanueva, who is not a member of the Blue Ribbon committee but who claimed to have been asked to sit as the vice-chair of the subcommittee, was also there.

Among the resource persons in attendance were former president Duterte, former Human Rights Commission (HRC) chairperson/secretary of Justice/senator De Lima, Human Rights lawyer Chel Diokno, drug war victim Kian’s uncle Randy de los Santos, the spiritual adviser of families of drug war victims SVD priest Flavie Villanueva, and several retired police generals who were prominently involved in the war against illegal drugs.

THE CHARADE
In his 13-minute opening statement, Duterte said, “My mandate as president of the republic was to protect the country and the Filipino people. Do not question my policies, because I offer no apologies, no excuses. I did what I had to do, and whether you believe it or not, I did it for my country.” He told the police when confronting criminals, “Repel the aggression only in self-defense. Do not make orphans of your children and widows of your wives.”
He added that drug-related crimes are on the rise again. “Every day, you can read about children being raped, people getting killed and robbed. And just recently, a drug den was raided within the Malacañang complex. This clearly manifests that the purveyors of this menace are back in business.”

He then pontificated:

“The war on illegal drugs is not about killing people. It is about protecting the innocent and the defenseless.

“I have always viewed people addicted to illegal drugs as victims and patients requiring medical help and not as criminals. That is why… I had a drug rehabilitation facility constructed in Davao City manned by Davao City government doctors, psychiatrists, nurses and health workers, among others, to look after the complete rehabilitation of those addicted to illegal drugs.

“I believe then and I still believe now that rehabilitation and not fear of death or incarceration to be the key to the return of the addicted individuals back to the mainstream of a just and forgiving society.”

Pimentel then asked Randy de los Santos to give his statement. He denied that his nephew Kian and Kian’s father were involved in the drug trade. Instead of allowing all resource persons to deliver their opening statements one after another, Pimentel, on the insistence of Dela Rosa, opened the floor to comments and questions from senators. Dela Rosa justified Kian and his father being suspected as sources of illegal drugs because a pusher said the De los Santos store was a drop-off/pick-up point for drugs and because Kian’s father looked like a drug addict, what with his teeth all gone.

And that is how the inquiry proceeded — resource person delivering his or her statement, the senators questioning him or her right after the statement. Dela Rosa faulted drug war widow Christina Gonzales for not reporting the involvement of policemen in the drug trade, He castigated Fr. Villanueva for “propagandizing” the death toll of police anti-illegal drug operations instead of filing cases against policemen accused of killing drug suspects. He disputed Diokno’s claim that to lower rank police officers “neutralize” means “kill.”

Pimentel then asked De Lima to make her presentation. She said the drug menace can be destroyed without destroying lives. Estrada, with an inquisitorial tone, a magisterial glare, and an admonishing index finger, grilled her, asking why when she was CHR chairperson and subsequently as Secretary of Justice she didn’t file cases against Duterte, why she focused on Davao when during the Noynoy Aquino administration there were also extra-judicial killings. Before yielding the floor, Estrada said, “I may be mistaken for defending the former president. I am not defending him.”

For him to make that disclaimer, he must have realized that he appeared and sounded like Duterte’s defender. Yes, he was unmistakably defending Duterte.

Then Pimentel allowed the senators to question Duterte. First to do so was Estrada. With a naughty smile, he asked Duterte an irrelevant and puerile question, drawing from Hontiveros a rebuke. He turned serious, asking questions that enabled Duterte to belie the damning revelations given before the Lower House’s Quad committee. But Estrada could not help being juvenile.  He asked Duterte if he courted Garma.

In the hearing of the Senate Committee on Women, Children, Family Relations and Gender Equality, he asked resource person Sual Mayor Liseldo Calugay if he had a romantic relationship with Bamban Mayor Alice Guo. Estrada should be called “The Senate Inquirer into the Private Affairs of Public Officials.”

The denial segment of the charade having been completed, Duterte went into a long monologue on the necessity and benefits of his war on drugs, the senators in rapt attention, except for the only lady among them. Hontiveros kept on interrupting Duterte’s ramblings, taking exception to his assertions and objecting to his vulgar language.

Not even Joel Villanueva, son of an evangelist, was scandalized by the expletives gushing profusely out of the mouth of the former president. In fact, he was so humbled by the presence of Duterte that he had to ask Pimentel if he could ask the former president a question. In the case of the Alice Guo inquiry, where he was also not a committee member, he just interjected at will, to the annoyance of committee chairperson Hontiveros.

Energized by the reverence and indulgence displayed by the male senators and by the cheers from the gallery, Duterte continued his narration of his principles, beliefs, the circumstances that led to his declaring war against illegal drugs, and what he had done to rid his country of the drug menace. He served notice to the committee that he was good up to 4 o’clock the following morning because he had a lot more to say.

But when his recitation of his past actions included self-incriminating admissions, his loyal supporters in the committee decided to suspend the hearing. They had to prevail upon their patron to call it a day. The tables had been turned, at least for that day.

There might not be another day, though, as Bato dela Rosa and Bong Go must have realized their scheme backfired.

*The Quad committee is composed of four committees in the House: the Committees on Dangerous Drugs, Public Order and Safety, Human Rights, and Public Accounts.

 

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

PSBank books P4-B net profit as of September

PHILSTAR FILE PHOTO

PHILIPPINE Savings Bank (PSBank), the thrift arm of Metropolitan Bank & Trust Co. (Metrobank), saw its net income grow by 19% year on year to P4 billion in the first nine months, it said on Monday.

“The bank’s solid financial performance was driven by higher operating income and better asset quality,” PSBank said in a disclosure to the stock exchange.

Its financial statement was unavailable as of press time.

“We remain well-positioned to serve the growing needs of our customers as we approach the final stretch of 2024. PSBank is gearing up for a more favorable interest rate environment, which is seen to further boost consumer loan demand,” PSBank President Jose Vicente L. Alde said.

The Bangko Sentral ng Pilipinas (BSP) has so far slashed benchmark interest rates by a total of 50 basis points (bps) since it kicked off its easing cycle in August, bringing its policy rate to 6%.

BSP Governor Eli M. Remolona, Jr. has signaled a possible 25-bp cut at the Monetary Board’s policy meeting on Dec. 19, which is its last review for the year.

PSBank’s core revenues, which include net interest income and service fees and commissions, went up by 4% year on year to P10.52 billion in the nine-month period.

Meanwhile, its operating expenses increased by 4% to P6.91 billion.

The bank’s gross loans expanded by 12% to P138 billion at end-September, which it attributed to growth in its auto, mortgage, and business loans.

“Asset quality improved as gross nonperforming loans ratio dropped to 2.8% from 3.4% a year ago,” it added.

On the funding side, deposits with the bank stood at P167 billion as of September.

PSBank had P219 billion in assets and P43 billion in capital funds at end-September.

Its capital adequacy ratio was at 24.2% and its common equity Tier 1 ratio stood at 23% in the period, both well above the central bank’s minimum requirements.

Its parent Metrobank’s attributable net profit stood at P12.124 billion in the three months ended September, up 11.35% from P10.888 billion in the same period last year

This brought its net income for the first nine months to a record P35.729 billion, up by 12.4% year on year from P31.786 billion.

Metrobank’s shares went down by 50 centavos or 0.66% to end at P75.50 each on Monday.

Shares in PSBank likewise declined by 50 centavos or 0.82% to close at P60.50 apiece. — BVR

Corporations told to avail SEC’s ECIP by Nov. 30

THE ECIP allows companies to clear their records at lower rates. — BW FILE PHOTO

THE SECURITIES and Exchange Commission (SEC) urged corporations to avail themselves of its enhanced compliance incentive plan (ECIP) before the Nov. 30 deadline to avoid higher penalties.

“With less than a month left before we officially close ECIP, we encourage noncompliant, suspended, and revoked corporations to complete their applications to ensure the continuous operations of their businesses,” SEC Chairperson Emilio B. Aquino said in a statement on Monday.

“We remind corporations that the submission of reportorial requirements is mandated by law, and failure to comply could result in the suspension or revocation of their corporate registration,” he added.

Provided under Memorandum Circular (MC) No. 13, the ECIP allows companies to clear their records at lower rates. The initiative was launched on Sept. 2.

“Corporations that have incurred fines and penalties for the late or non-filing of their annual financial statements (AFS) or general information sheets (GIS), as well as noncompliance with MC No. 28, Series of 2020, which requires corporations to designate official and alternative contact details, may apply for ECIP,” the SEC said.

Noncompliant and delinquent corporations only need to pay P20,000 to settle their fines and penalties for the covered violations, while suspended or revoked corporations will only have to pay 50% of their total assessed penalties, as well as a petition fee of P3,060 to lift their suspension or revocation order.

The SEC defines non-compliant corporations as those that have intermittently or consecutively failed to submit their GIS and AFS in previous years, or have not complied with MC 28.

On the other hand, delinquent corporations refer to those that have not filed their AFS or GIS three times, consecutively or intermittently, within a five-year period.

The SEC reminded that payment of the ECIP fees does not guarantee an automatic good standing for corporations since they still need to submit their latest AFS and GIS as part of their application.

Suspended and revoked firms also need to submit their petition to lift the suspension or revocation order along with other supporting documents.

Corporations that fail to avail themselves of the ECIP will be subjected to the updated scale of fines and penalties implemented by the SEC in April under MC No. 6.

The new rates are around 900% to 1,900% higher compared to the previous rates that had been in place for over two decades.

All SEC-registered corporations are mandated to submit their AFS and GIS as provided by Republic Act No. 11232 or the Revised Corporation Code of the Philippines. — Revin Mikhael D. Ochave

Found footage horror tests its limits

By Brontë H. Lacsamana, Reporter

Movie Review
V/H/S Beyond
SM’s Sine Sindak

FOR teenagers and young adults, Sine Sindak was the ideal Halloween treat. Too old to partake in Trick or Treat and too young to organize family visits to the cemetery, this segment of the youth was more than happy to check out an affordable horror film festival brought to malls nationwide by SM Cinemas.

With tickets priced at P150 per film, and P300 for an all-day pass, barkadas were able to scare each other effectively in a dark, comfortable, and immersive movie theater. BusinessWorld joined in the fun on Nov. 4, the day before the festival closed.

V/H/S, an American horror anthology composed of short found footage films (a genre of horror where the camera is supposedly held by a character, often leading to shaky camera movement), released its 7th installment this October.

Titled V/H/S Beyond, it was one of the many offerings at Sine Sindak that horror fanatics and eager barkadas flocked to see. Unlike other installments in the franchise, it had a central theme — science fiction and dangerous life forms — promising a bloody experience in the theater.

As with any anthology, the films presented were a mixed bag.

Stork, helmed by Jordan Downey and Kevin Stewart, was a strong start and definitely benefited from its heavy use of the video game visual style. Filmed from the point of view of body cams on a crew of cops, it follows their mission into an old house filled with what seem to be zombies. It genuinely feels like watching a video game unfold, as the characters shoot and stab their way through the horde and up to the attic where they uncover the mystery behind the alien-zombie cult colony.

A group of high school kids who were hanging out at the cinemas the whole day for Sine Sindak (probably using the watch-all-you-can day pass) came in just for this segment. They had an uproarious time reacting to it and scaring each other, then left immediately after — showing just how much fun it is for that particular demographic.

Dream Girl had potential to show us something more than a freaky monster finally running loose, but never dug in to any level of depth. It was made by Virat Pal and Evan Dickson. In it, two tabloid news cameramen gain access to the busy set of Bollywood star Tara’s latest movie, hoping to catch footage of her. While they most certainly do, it comes at a cost as they find out what kind of goddess she actually is.

While the film touched very lightly on the brutality of making it big in the film industry and the exploitation that takes its toll on aspiring stars, none of it ever really amounted to something in the plot. The climax was “beautiful star turns into a monster and goes on a killing spree while a catchy Bollywood tune plays,” which was awesome to behold, but not as satisfying as expected.

Live and Let Dive was one of the weaker films. Made by Justin Martinez and Ben Turner, it follows a group of friends going skydiving to celebrate the birthday of one of them. Before they can do so, they spot an unidentified flying object (UFO) which crashes their plane and feasts on them. While it has an interesting concept, the execution is obnoxious and all over the place.

Fur Babies, another weak link, got understandably strong reactions from the audience since it centered on a pet daycare run by a deranged lady abusing dogs. Christian and Justin Long nailed the necessary beats to get people engaged, with animal rights activists trying to infiltrate the daycare. But it was tonally out of place in an anthology of insane alien stories.

The wraparound section by Jay Cheel, named Abduction/Adduction, was a YouTube-style mockumentary attempting to thread all the films together. Though passable, it didn’t offer much enjoyment, especially the lackluster ending that didn’t leave an impact.

Stowaway should have been the strong note to end on. It was this writer’s absolute favorite, the only segment that compelled audiences to genuinely care for the lead character. Helmed by horror filmmaking couple Kate Siegel and Mike Flanagan, it followed a UFO documentarist who goes out to the Mojave Desert to document a recent influx of sightings by locals.

Little tidbits of her personaltiy, like her attachment to a keychain from childhood, and her undying curiosity being both a strength and a weakness, endeared her to audience members. Once she encounters an alien spaceship in the desert and makes the poor decision to enter the mysterious craft, the brutal transformation that awaits her builds up to a horrific end. By the end, the pure terror of her fate stays with you, providing not just visual and narrative dread, but also existential dread. Definitely one of the best in the V/H/S franchise.

Today, Nov. 5, is the last day of Sine Sindak at SM Cinemas nationwide.

On the PEB in London, the PhilHealth funds, and the US elections

Last week, from Oct. 29 to 30, the government economic team went to London for a series of investment roadshows and meetings, then another Philippine Economic Briefing (PEB) on Oct. 31. This was after they had been in Washington DC for a series of meetings with the multilaterals, credit agencies, and some big commercial banks there.

From the photos and press releases, the economic team members who were in London were Department of Finance (DoF) Secretary Ralph G. Recto, Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, Department of Energy (DoE) Secretary Raphael P.M. Lotilla, and Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila, Jr.

Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, a member of the economic team was not with the group. I checked the DBM Facebook page — she had been at the Philippine International Convention Center where she a speaker at the International Conference on Women, Peace and Security (WPS) on the third and last day, Oct. 30.

The Philippines Open Government Partnership (PH-OGP), chaired by Ms. Pangandaman, convened many notable women leaders from the Philippines and abroad for a discussion on the theme, “Empowered Women, Lasting Peace: Advancing the Women, Peace, and Security Agenda Through Open Governance.”

Meanwhile, at the PEB, Mr. Recto highlighted that “British investors brought 585.74 million British pounds of investments to the Philippines as of the end of July…. 97 British companies currently operate in our economic zones…. The Philippines is booming and has all the makings of a tiger economy…. we are among the best performing economies in ASEAN, with GDP growth averaging 6.1% since President Ferdinand R. Marcos, Jr. took office.”

Going back to Europe, London in particular, is a good move by the economic team mainly because Europe is limping economically now, so many companies there are looking for other countries as good investment alternatives. Asia in general, and Philippines in particular, should be a good destination for them.

Consider the economic performance of several European and Asian economies over first to third quarter (Q1-Q3) this year compared to last year (see Table 1).

Also at the PEB, NEDA Secretary Balisacan discussed many big infrastructure projects under the Public-Private Partnership (PPP): 214 projects which are under implementation (15 are Infra Flagship Projects or IFPs) with total estimated project cost of P3.575 trillion. And 173 projects are in the pipeline (29 are IFPs) with a total estimated project cost of P3.174 trillion. So, a total of P6.749 trillion — that is huge.

Aside from the PPPs, there are also many foreign assisted projects (FAP), or foreign aid from the multilaterals and bilateral organizations, for infrastructure. Local counterpart funding is needed for these FAPs to be disbursed.

ON PHILHEALTH AGAIN
We need more money for these FAP counterpart funds and for other social service spending in the unappropriated expenditures. The Philippine Health Insurance Corp. (PhilHealth) has the money from excess remittances by the National Government (NG) to PhilHealth to subsidize millions of non-contributing indigents, senior citizens, other government-sponsored individuals and households.

I looked through some PhilHealth finance reports where I saw that the P89.9 billion in excess funds came from three years of accumulated remittances by the NG (see Table 2).

That item “NG premium for indirect contributors” would be better called “NG collections from gamblers and bettors, drinkers, smokers and vapers.” That money comes from remittances by the Philippine Amusement and Gaming Corp. (better known as PAGCOR), the Philippine Charity Sweepstakes Office or PCSO, and excise taxes on alcohol and tobacco products. That money does not come from those employed in the formal sector, nor from indigents, not from senior citizens (who are non-contributing), and not from other sponsored individuals.

There are fears that PhilHealth’s equity is turning negative. This is because of the P1 trillion+ provision for Insurance Contract Liabilities (ICLs). ICL is Present Value of Future Outflows (benefit payments plus administrative expenses) minus Present Value of Future Inflows (Premium collections plus interest earnings).

So ICLs are just estimates, not backed up by actual claims or contracts with hospitals and health professionals. It should not be considered as a big parameter or factor in the reallocation of excess funds for current actual needs.

The government, through the DoF, has the legal right, has the moral ascendancy, to take back those excess funds to fund additional big infrastructure and additional social services that will create more jobs and reduce the number of jobless, and reduce the number of indigents.

Healthcare is first and foremost a personal and parental responsibility, secondarily a government responsibility. People should pay for their own healthcare, even at a minimal amount, and not everything should depend on the government.

THE US ELECTIONS
Meanwhile, the US Presidential and Congressional elections are being held tomorrow (Nov. 5 in the US, which is Nov. 6 in the Philippines). The US economy, the millions of new illegal immigrants, the ongoing US military involvement in many wars abroad (Ukraine, Israel, Syria, etc.) are among the key issues for the voters.

I checked the US’ total outstanding public debt and it is huge: As of Oct. 31, 2024, it comes up to $35.952 trillion. In comparison, on Oct. 31, 2023, it was $33.700 trillion; Oct. 31, 2022, $31.238 trillion; Oct. 29, 2021, $28.909 trillion; and Oct. 30, 2020, $27.135 trillion.

On Sept. 30 this year, it was $35.465 trillion; on Aug. 30, it was $35.256 trillion; and on July 31, $35.105 trillion. So, from October 2023 to October 2024, there was an increase in US public debt of $2.252 trillion or $6.17 billion/day. From September to October this year, there was an increase of $487 billion or $15.71 billion/day. From August to September, $209 billion or $6.97 billion/day. And from July to August, $151 billion or $5.03 billion/day.

So, last month, the last month before the US elections, the Biden-Harris administration was over-borrowing by $15.7 billion per day. Horrible fiscal irresponsibility.

 

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

PBB’s income surges to P768 million in 3rd quarter

PHILIPPINE Business Bank (PBB) saw its net income jump by 177.73% in the third quarter, driven mainly by trading gains.

The bank’s net earnings grew to P767.64 million in the third quarter from P276.4 million in the same period last year, its quarterly report disclosed to the stock exchange on Monday showed.

This brought its nine-month net profit to P1.8 billion, up by 57.09% from P1.146 billion in the same period last year.

This translated to an annualized return on equity of 12.7% and a return on assets of 1.5%.

“The bank’s financials showed remarkable performance and growth in the first nine months of 2024 earning P1.8-billion net income, an accomplishment that took PBB the full year to reach in 2023. This growth was driven by the ability to capitalize on the high-interest rate environment, effective cost management, and a 50% growth of fee-based income,” PBB Vice Chairman, President and Chief Executive Officer Rolando R. Avante said.

“As PBB moves into the fourth quarter of 2024, it will remain well-positioned for sustained growth and profitability. It remains steadfast in its commitment to its clients by offering products that cater to their needs. These will ensure that the bank is ready to face future challenges while continuing to deliver value to its stakeholders,” Mr. Avante said.

The bank’s net interest income inched up to P1.59 billion in the third quarter from P1.58 billion in the same period last year.

This came as its interest income went up by 14.09% to P2.65 billion, while interest expenses surged by 43.37% to P1.06 billion from P737.26 million.

Net interest margin was at 4.34% at end-September, down from 4.63% at end-2023.

PBB’s other income stood at P720.75 million in the third quarter, a turnaround from the P35.45-million loss seen in the same period last year, driven by trading gains.

Other expenses stood rose by 16.49% to P1.09 billion as it set aside more loan loss provisions and amid increased spending on compensation and taxes, among others.

This resulted in a cost-to-income ratio of 53.14% at end-September.

PBB’s total loans and receivables went up by 13.1% year on year to P120.6 billion as of September.

Its nonperforming loan ratio was at 5.87% at end-September, up from 5.7% last year.

On the funding side, deposits stood at P131.9 billion.

As a result, the bank’s loan-to-deposit ratio stood at 91.43%.

PBB’s total resources went up by 15.1% year on year to P161.32 billion as of September.

Equity stood at P19.71 billion. Its capital adequacy ratio was at 12.92%, while its minimum liquidity ratio stood at 24.55%.

PBB’s shares closed at P9.07 apiece on Monday, down by 13 centavos or 1.41% from Friday’s finish. — A.M.C. Sy

E-commerce seen altering tenancy mix in PHL malls

AYALA CENTER CEBU — AYALAMALLS.COM

THE RISE of e-commerce platforms is continuously transforming the retail landscape in the Philippines, altering the tenancy mix in malls, a real estate agency said.

“The online shopping movement has caused ripples in the retail market as brick-and-mortar stores adjust to smaller leasable areas,” Lean D. Cacatian, manager for consultancy at KMC Savills, said in an e-mailed reply to questions on Oct. 10.

Mr. Cacatian said this has been more apparent in apparel stores since more people are shifting toward buying their clothes and accessories online.

KMC said retail developments are using strategies like double-digit monthly sales (e.g., 1.1, 2.2, 3.3) and bank partnerships for discounts to boost foot traffic. It also noted transit-oriented developments to enhance community involvement and mall access.

Christopher A. Argamino, assistant manager for consultancy at KMC Savills, said the retail landscape has greatly improved since the pandemic.

He said key players are capitalizing on the growth opportunity by expanding their presence across all areas around the country.

“Leading mall developers (i.e., Ayala Malls and SM Retail) are maximizing their potential returns as they continue to renovate existing malls to accommodate prospective tenants,” he said.

Mall operator Ayala Malls has allocated P13 billion for the redevelopment of four of its malls: Glorietta, Greenbelt 2, TriNoma, and Ayala Center Cebu.

Expected changes include exterior and interior design improvements, lush greeneries and open space, as well as enhanced areas for convergence and retail spaces.

“In the past several years, much has changed for all of us — both during and before the pandemic. We’ve seen habits changes, preferences evolve, and priorities reset. With this, we feel it is an opportunity to usher in a new era for Ayala Malls — and a new experience for our customers,” Ayala Malls President Mariana Beatriz Zobel de Ayala said in a briefing in February.

Mr. Argamino said international brands that were not previously in the retail landscape — such as Love Bonito and Nitori — are leading tenant movements in local malls and expect the trend to continue.

This trend is due to the rising income levels of the population, making it profitable for more upscale brands to enter the country.

The average annual income of Filipino families increased by 15% to P353,230 in 2023 from P307,190 in 2021, as wages and quality of jobs improved, the Philippine Statistics Authority’s recent family income and expenditure survey data showed.

Overall, the retail scene may see more upscale brands entering as the country’s purchasing power improves, KMC Savills said.

Mr. Argamino also noted that tenants that encourage visitors to spend more time in malls have also seen an increase in popularity, particularly sports simulator rooms, children’s activity centers, and dance studios, aside from the typical cinemas and arcades.

He also noted that government satellite offices and various churches are occupying mall spaces. — Aubrey Rose A. Inosante

Maynilad expanding sewerage network in Parañaque

MAYNILAD Water Services, Inc. has invested P695 million to expand its sewerage network in Parañaque City, the company said on Monday.

The project involves the laying of sewer lines along portions of NIA Avenue, Radial Road, and Sucat Avenue, which will collect wastewater from over 35,000 residents of Barangays La Huerta and Santos Dionisio, the water concessionaire said in a statement.

Maynilad said the wastewater will be conveyed to its Parañaque Water Reclamation Facility for proper treatment before being safely discharged into the Kayboboy River, in compliance with environmental standards.

The project, which started in 2021, is slated for completion by the third quarter of 2025, according to Zmel Grabillo, Maynilad’s wastewater management head.

“Sewerage projects are highly complex and take time, as new sewer lines must be laid deeper than water pipelines — sometimes as deep as 14 meters below ground. This requires precise engineering and careful excavation,” Mr. Grabillo said.

The company serves Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon.

It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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

Squid Game 2 to be ‘more intriguing,’ the show’s creator promises

A scene from season two of Squid Game. — IMDB

LUCCA, Italy — Revenge will be in the air in the hotly anticipated second season of Squid Game, the TV show’s creator Hwang Dong-hyuk says, promising a bigger cast of characters and more absorbing challenges than the original.

Attending the first global promotional event for the new season in the Tuscan city of Lucca, Hwang told Reuters a third edition of the Korean drama was already in post-production, and hinted an English-language version may be in the offing too.

The first season of Squid Game became Netflix’s most watched series of all time when it was released in 2021.

Hwang went on to win an Emmy for outstanding directing for a drama series, while Lee Jung-jae scored a best actor in a drama Emmy Award. Both were the first Asians to take home those titles and the first for a non-English language series.

Given the huge viewing figures, the dystopian show was inevitably renewed and is due to hit the streaming service on Dec. 26, with the third and final installment set for rollout in 2025.

“In Season 2, Gi-hun (played by Lee), who survived Season 1, returns to the games, not to win this time around, but to put an end to these games,” said Hwang, the show’s writer, director, and producer.

“There is going to be a larger number of characters this time and more intriguing games that are all worthy of a lot of the viewers’ love and support,” he said.

The thriller series follows cash-strapped contestants who take part in deadly survival challenges featuring childhood games for a chance to win a fortune. The new season takes place three years after the events of the first and sees Lee’s character Seong Gi-hun returning to the life-or-death game with new participants.

Also attending the Lucca Comics & Games event, Lee told Reuters there was pressure to improve on the original, adding that his character, a former gambling addict, is a changed man.

“Gi-hun is a very different person in Season 2. This time around he wants revenge. He wants to catch the people behind the games and he wants to bring them to justice,” he said.

The Hollywood news site Deadline, reported this week that US director David Fincher, who made the 1999 hit Fight Club, was working on an English-language version of Squid Game for Netflix.

“I don’t think it’s official yet, so I cannot tell much about it. But, you know, I respect him as a filmmaker and creator,” Hwang said when asked about the report.

“So if he does it, you know, I’m looking forward to seeing it, watching it.” — Reuters

Restoring Filipino seafarers’ competitiveness for a sustainable maritime sector

WIKIPEDIA

The shipping industry is one of the most diverse and globalized sectors in the world due to its involvement in the international transportation of goods and products. Marine transportation is the most cost-efficient and sustainable way of moving large quantities of goods around the world. Our nation regularly supplies seafarers to meet the labor demands of merchant fleets worldwide.

According to the Department of Labor and Employment, the Philippines has long provided nearly one-third of the global maritime workforce. Filipino seafarers have been the top choice of foreign principals due to their well-established reputation and global recognition, which stem from their unique combination of diligence, adaptability, dependability, and fluency in the English language. Considering their hard work, dedication, and financial contribution, these Filipino sailors are among our nation’s greatest assets.

However, a combination of local and global events has resulted in a decreased demand for the services of Filipino seafarers. As a result, their competitive advantage is gradually diminishing. This situation seriously threatens the sustainability of Philippine manning agencies, the growth of our economy, and the well-being of the families who rely on our seafarers’ remittances.

How can we address the declining global labor market competitiveness of Filipino seafarers in the face of intense competition from other countries, an economic downturn, legal and political requirements, technological advancements driven by Industrial Revolution 4.0, and the aftermath of the COVID-19 pandemic?

One of the main obstacles contributing to their declining competitive advantage is their difficulty in keeping up with technological advancements. The maritime transport sector is adapting to the development of smart ship technology as the world moves toward higher levels of autonomy. “Autonomous technology for ships” refers to a software’s increased independence in making critical decisions within a maritime vessel, representing a significant technical advancement. For example, the Internet of Things (IoT) allows seafarers to remotely control their machines and equipment. Such technological advancements may lead to further job losses for seafarers.

Our seafarers must enhance their technological skills and knowledge to keep up with the rapidly evolving technological landscape in the maritime industry. Over the past few decades, there have been significant advancements in technology, particularly in the way seafarers are trained by various maritime institutions. For instance, several manning agencies have already invested in their maritime training facilities and hubs. Some training centers have even acquired their own shipping vessels to provide their cadets with more hands-on experience and firsthand exposure to working on a shipping vessel.

Despite innovations in shipbuilding and training methods, seafarers remain crucial as they are primarily responsible for operating and navigating these vessels. Finding the most effective way to educate and train seafarers is an ongoing responsibility that all major stakeholders must undertake to adapt to these changing times.

One of my recommendations to enhance the global competitiveness of Filipino seafarers is to establish a maritime training facility tailored to their needs. Manning agencies, trade unions, and other stakeholders in the maritime sector must form partnerships and collaborations. Manning agencies, most of which lack the resources needed to establish their own training facilities, could collaborate with each other or with other stakeholders and pool their resources to establish shared maritime training facilities, which would benefit all seafarers associated with these organizations.

Our seafarers’ maritime training is a long-term process that needs careful planning to align with global trends. This process requires significant effort and the harmonization of national legislation with international conventions. The government, manning agencies, maritime schools, training centers, and maritime trade unions should work together to ensure that Filipino seafarers understand the value of additional education and training in advancing their careers and remaining competitive in the international market. Each party has a responsibility to contribute to rekindling the global competitiveness of Filipino seafarers.

 

Dr. Rayan Dui is a full-time faculty member and chair of the Department of Marketing and Advertising at the Ramon V. Del Rosario College of Business, De La Salle University. With over 15 years of experience as a senior marketing consultant for a maritime training center, he has a keen interest in research related to the maritime sector. Through his research he aims to implement changes that will benefit the maritime training industry and ultimately, Filipino seafarers.

rayan.dui@dlsu.edu.ph

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