PRESIDENT Ferdinand R. Marcos, Jr. has appointed a veteran banker to the last seat of the Monetary Board (MB), completing the seven-member policy-making body of the Philippine central bank.

Jose L. Querubin will take his oath at the Bangko Sentral ng Pilipinas (BSP) complex on Sept. 5, central bank Governor Eli M. Remolona, Jr. said in a text message on Wednesday.

Before his appointment, the banker served as president and chief executive officer of state-owned United Coconut Planters’ Bank from 2003 to 2007. He also held positions at Solid Bank and Citibank.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said Mr. Querubin’s experience as a banker would benefit the Monetary Board.

“He’s a veteran of the banking industry and I am sure his vast experience will be a great addition to the MB,” he said in a Viber message.

Mr. Querubin’s appointment would “result in more diversified decision-making with more perspectives,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., told BusinessWorld in a Viber message.

Mr. Querubin took up BS Mathematics (cum laude) and Mechanical Engineering at De La Salle University in Manila and holds a Master of Business Administration from Wharton Business School at the University of Pennsylvania, according to the website of Gawad Kalinga Canada, where he was vice-chairman.

He was secretary of the Bankers Association of the Philippines and president and chairman of Megalink, Inc.

He was also active in civic organizations like the Philippine National Red Cross where he served as governor, Operation Smile Philippines where he served as chairman and the Rotary Club of Makati West where he was president, according to the website.

In July, veteran banker Walter C. Wassmer was also appointed to the Monetary Board after the resignation of two board members who got embroiled in a scandal involving “ghost employees” at the Philippine central bank.

Malacañang had accepted the resignation of MB members Anita Linda R. Aquino and V. Bruce J. Tolentino effective June 30, Bloomberg reported.

Mr. Querubin and Mr. Wassmer will complete the unexpired terms of Ms. Aquino and Mr. Tolentino until July 2026.

The Monetary Board exercises the powers and functions of the BSP including the conduct of monetary policy.

Mr. Querubin’s appointment completes the seven-member board, which is led by Mr. Remolona.

The other members are Finance Secretary Ralph G. Recto, former BSP Governor and Finance Secretary Benjamin E. Diokno, ex-Finance Undersecretary Romeo L. Bernardo and former National Treasurer Rosalia V. de Leon.

The Monetary Board’s remaining policy meetings this year are scheduled for Oct. 17 and Dec. 19.

At its Aug. 15 meeting, the Monetary Board cut the benchmark interest rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.5%.

This was the first time the central bank had cut rates since November 2020, when it last delivered a 25-bp cut amid a global coronavirus pandemic.

Mr. Remolona has signaled the possibility of another 25-bp cut in the fourth quarter.

THE PHILIPPINE central bank’s expected easing cycle could reverse anemic household spending in a country where consumption accounts for more than two-thirds of the economy.

“As the BSP’s policy easing takes effect, Filipinos can look forward to a more favorable economic environment,” Marian Monette Q. Florendo, a research and business analytics officer at Metropolitan Bank & Trust Co. (Metrobank), said in a report.

“The combination of lower policy rates and easing inflation is anticipated to provide support for both private consumption and investments, potentially reversing the adverse effects of prolonged high interest rates,” she added.

The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board cut borrowing costs by 25 basis points (bps) last month, bringing the key rate to 6.25% from the over 17-year high of 6.5%. This was the first time it cut rates in nearly four years.

“This policy shift is expected to have far-reaching effects on the Philippine economy, particularly in stimulating private consumption and investments.”

Metrobank said there had been a “significant slowdown” in household final consumption expenditure amid elevated interest rates.

Growth in household spending, which accounted for 67.8% of Philippine economic output in the second quarter, slowed to 4.6% from 5.5% a year ago, according to the local statistics agency.

It was also the slowest growth since the 4.8% decline in the first quarter of 2021.

Excluding the pandemic years, Metrobank said this was the slowest pace of spending since 2010. “This tepid growth falls below the 10-year pre-pandemic average, indicating a constrained consumer spending environment,” Ms. Florendo said.

Further policy rate reductions could serve as the “catalyst to reinvigorate the Philippine economy.”

Metrobank expects the benchmark rate to end the year at 5.75% and further down to 5% by next year.

“This aligns with expectations that the US Federal Reserve will also begin its easing cycle in September,” it added.

Investors are pricing in a 42% probability of a 50-basis-point rate cut at the Sept. 17-18 meeting of the Fed, up from 30%, Reuters reported, citing the CME FedWatch Tool.

Meanwhile, the BSP’s rate-cutting cycle could pave the way for lower credit card rates and affordable loan terms. This would “provide immediate relief to consumers burdened by high-interest credit card debt.”

“As policy rates decrease, overall loan rates are likely to follow suit,” Ms. Florendo said. “This opens up opportunities for Filipinos to avail [themselves] of new loans at more favorable rates or to negotiate better terms for existing loans.”

Lower loan rates could free up cash flow for households, allowing them to either pay down existing debt more quickly or rebuild their savings, she pointed out.

Metrobank expects inflation to settle at 3.3% this year and 3.1% in 2025, within the BSP’s 2-4% target.

The forecast is supported by expected easing rice prices, backed by government policies and a balanced assessment of other inflation risks, it added.

Inflation likely slowed to 3.7% in August, according to the median estimate of 15 analysts in a BusinessWorld poll. It hit a nine-month high of 4.4% in July. — Luisa Maria Jacinta C. Jocson

THE PHILIPPINE Stock Exchange index (PSEi) is projected to close the year at as high as more than 7,600 points, spurred by easing inflation and expected interest rate cuts.

The benchmark index could end the year at 6,998.71 to 7,665.26 points, with a 5% to 15% earnings growth for PSEi companies, Philstocks Research said in a report.

“For now, we see the possibility of the downside risks occurring to be low,” it said. “Hence, the market is expected to rally further towards the year’s end.”

The stock brokerage noted that with a robust labor market and easing inflation, it expects strong demand within the economy, which would trickle down to corporate revenues. “With easing inflation, we also expect the increase in production costs to be tempered. All of these would benefit our companies’ bottom line,” it added.

The PSEi finished 2023 at 6,450.04 points, 1.8% or 116.35 points lower than the previous year’s close.

On Wednesday, the index shed 0.01% or 0.8 point to close at 6,882.12 points. The broader all-share index dropped by 0.03% or 1.26 points to 3,729.52.

Inflation likely slowed to 3.7% in August, according to the median estimate of 15 analysts in a BusinessWorld poll. It hit a nine-month high of 4.4% in July. The local statistics agency will release August inflation data on Sept. 5.

Index members posted modest combined financial results, with revenue up by 8.43% year on year and net income rising by 4.96% amid the challenging macroeconomic backdrop in the first half, Philstocks said.

Alfred Benjamin R. Garcia, research head at AP Securities, Inc. expects the PSEi to hit 7,355 points by yearend, as the Philippine central bank continues its rate cut cycle in the fourth quarter.

“Our base case scenario of 50-basis-point (bp) rate cut this year still holds, as we’re still expecting the next rate cut to come in December,” he told BusinessWorld in a Viber message. “Earnings were also mostly in line with our expectations.”

“At this point, there’s minimal risk of inflation reigniting. I guess the only major risk is that consumer spending might not pick up as quickly as we hope,” he added.

Last month, the Monetary Board cut the benchmark interest rate by 25 bps to 6.25% after keeping it at a more than 17-year high in almost four years.

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. earlier said they could deliver another 25-bp cut next quarter. The central bank’s last two policy meetings of the year will be on Oct. 17 and Dec. 19.

April Lynn C. Lee-Tan, chief equity strategist at COL Financial Group, Inc., said the PSEi could hit 7,100 by yearend.

“Risks would be weak economic and corporate earnings numbers, a recession in the United States and a weak stock market there,” she said in a Viber message.

ECONOMIC GROWTH
Cristina S. Ulang, research head at First Metro Investment Corp., kept the brokerage’s initial estimate of 7,000 to 7,500 points for the PSEi by yearend.

“The risks are a US recession and resurgent local inflation, while the catalysts for PSEi include easing food inflation, especially rice, and foreign buying on a sustained basis,” she told BusinessWorld in a Viber message.

Rice inflation slowed for the fourth straight month to 20.9% in July. Rice typically accounts for almost half of overall inflation.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the benchmark index could finish the year at 7,000 to 7,500, spurred by the country’s economic growth.

The Philippine economy expanded by 6.3% in the second quarter compared with the 5.8% growth a quarter earlier on higher state spending and investments.

“It is possible to sustain gross domestic product growth near or at 6% levels in the coming quarters due to favorable demographics and the continued recovery of some industries such as tourism and the possible increase in government spending to prepare for the May 2025 midterm elections,” he said in a Viber message.

Juan Paolo E. Colet, managing director at China Bank Capital Corp., sees a tamer increase for the index at 7,100 by the end of the year. “It could possibly be higher depending on incoming data,” he said in a Viber message.

At a news briefing last week, Unicapital Head of Research Wendy B. Estacio-Cruz lowered their estimate for the PSEi to 7,000 by end-2024 from 7,200.

“That’s a 9% gain from end-2023,” she said. “That’s based on our bottom-up analysis, which is based on an 11% earnings per share growth rate and at 12.5% target price-to-earnings,” she said.

THE PROTECTIONIST POLICIES of a potential Donald J. Trump presidency could hurt the Philippine economy through lower dollar remittances and revenues in the service sector, according to Nomura Global Markets Research.

“We remain of the view that, similar to Trump’s first term, the Philippines will be among the most vulnerable through various channels,” it said in a report.

Nomura said a Mr. Trump victory could dampen Philippines economic growth. “Overall, we estimate through these channels GDP growth could be lower by 0.2 percentage point (ppt) than our baseline, though this is still manageable as we forecast GDP growth of 6.1% year on year for 2025,” it added.

The Philippine economy grew by 6.3% in the second quarter. The government is targeting 6-7% growth this year.

“The direct exposure comes from the country’s goods trade surplus with the US, which has risen in the last few years, and exports are likely to be hurt by the 10% tariffs proposed by Trump,” Nomura said.

Mr. Trump, the Republican nominee, has been loud about his intention to go big with trade restrictions, vowing to impose tariffs of 60% or higher on all Chinese goods. He has also floated the idea of a 10% universal tariff, according to Reuters.

The US remained the top destination for Philippine-made goods in June, with exports valued at $897.8 million or 16.1% of the country’s total, according to data from the local statistics agency.

The Philippines’ business process outsourcing (BPO) sector could also be hurt by Mr. Trump’s policies, Nomura said.

“In addition, the services surplus is now slightly larger than the goods surplus at 1% of GDP (gross domestic product), partly reflecting the fact that most of the country’s BPO sector caters to US companies,” it said.

“While Trump has not been explicit about ‘bringing back jobs to America,’ the risk is similar policies might affect BPO revenues, which was clearly the case in his first term — services exports growth to the US [was] halved to 5.1% year on year in 2017-2019 versus the prior years.”

The information technology and business process management industry booked a $35.5-billion revenue last year. This year, the sector’s revenue is projected to hit $40 billion.

Remittances, which are a key contributor to the Philippines’ foreign exchange coffers, could also be hit by a Trump win.

“By the same token, remittance growth also slowed during Trump 1.0, suggesting that a tightening in US immigration policy might affect workers’ remittances from the US which are even more sizeable (3.1% of GDP),” Nomura said. 

Cash remittances jumped by 2.9% year on year to $16.25 billion in the first half, data from the Bangko Sentral ng Pilipinas (BSP) showed. The US accounted for 40.9% of the total.

“Among the less export-oriented economies, the Philippines does not have a similar cushion and instead will be at risk from various channels, including the impact on workers’ remittances from a possible tightening of US immigration policy as well as the outsourcing sector,” Nomura said.

It also cited potential geopolitical tensions between China and the Philippines due to the “lack of security support from the US under Trump.”

“An indirect channel is the impact of a possible rise in geopolitical tensions in the South China Sea if the US, which is the country’s strongest ally, provides less regional security and reduces its military presence under Trump.”

On the other hand, Nomura said the Philippine central bank’s easing cycle is unlikely to be affected.

“Meanwhile, a pause in the Fed’s cutting cycle to assess the impact of Trump’s tariffs on US inflation is unlikely to derail BSP’s cutting cycle, which is already underway and should be completed by the first half of 2025 based on our forecasts, unless the tariffs are implemented much earlier,” it added. — Luisa Maria Jacinta C. Jocson

Meralco PowerGen Corp. (MGen), a fully owned subsidiary of Meralco, is acquiring an additional 5.8 billion shares or 11.6% of SPNEC valued at P7.5 billion from Solar Philippines Power Project Holdings, Inc. led by businessman Leandro Antonio L. Leviste.

With this transaction, MGen and its affiliates have invested a total of P27.9 billion in SPNEC, representing 25.3 billion shares, according to a statement from Solar Philippines on its Facebook page on Wednesday.

On Sept. 3, MGen Renewable Energy, Inc., a wholly owned subsidiary of MGen, paid P6.7 billion to Solar Philippines. An additional P0.8 billion will be paid upon the completion of another investor’s planned entry into Terra Solar Philippines, Inc., Solar Philippines added.

Following the transaction, Solar Philippines will hold a 29.4% stake or 14.7 billion shares in SPNEC.

SPNEC, through its subsidiary Terra Solar Philippines, Inc., is developing a P200-billion solar power project, which is expected to be the largest solar farm in the world. The project, located in Nueva Ecija and Bulacan, includes a 3,500-megawatt solar power plant and a 4,000-megawatt-hour energy storage system. The first phase is set for completion by 2026, with the second phase expected by 2027.

On Wednesday, SPNEC shares rose by 1.57% or two centavos, closing at P1.29 per share, while Meralco shares fell by 1.32% or P5.40, ending at P402.80 each.

Meralco’s majority owner, 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. — Revin Mikhael D. Ochave

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WITH A positive deluge of craft beer and all sorts of new spirits in the market, isn’t it nice to come back to a classic?

Chef Junjun de Ocampo, whose last posting was corporate chef for a restaurant group, opened Blackwood at McKinley Hill in 2010, but moved to Mandaluyong’s Greenfield a couple of years later due to changing market demand. In moving, he and his partners decided to shift their focus to draft beer (beer from a keg; out of a tap). One of his partners (who already worked for a beer company) tried to discourage him due to the short shelf life of draft beer (three days tops, according to Mr. De Ocampo), but, “If you can do it right, masarap ang draft beer (draft beer is delicious). It’s not stored in a bottle, in a warehouse, for months. This is fresh… as fresh as it can get,” he told BusinessWorld at a tasting on Aug. 28.

During the tasting, we were served San Miguel Pale Pilsen, San Mig Light, Cerveza Negra, and San Miguel Blanca (San Miguel’s latest release). The familiarity of the names belies the ambition behind serving them on tap, but Mr. De Ocampo finishes his stash well before the third day. Our expectations were lowered, again, by the familiarity of the names on tap, but dare we say the usually mealy (for us) San Mig Light gained some soft floral femininity, the Cerveza Negra’s chocolate notes were heightened, and personal favorite Pale Pilsen gained toasty, crisp gravitas? The San Miguel Blanca (a wheat beer), meanwhile, was served in a glass especially made for them by San Miguel, “Because of how much attention we give to their draft beer,” Mr. De Ocampo said.

It seemed almost as if he was an endorser for the food conglomerate, but they just really like the place. “If you saw this [place] last Friday,” he said, saying that the who’s who of San Miguel Corp. (SMC) packed the restaurant.

“I was convinced by the chairman (who was his former employer) that it’s time for (me) to venture on (my) own,” Mr. De Ocampo said about opening his restaurant.

“We love to eat; of course, we like to drink. Beer is our go-to beverage,” he said. “Why don’t we highlight what we love?”

DRINKING FOOD
The menu, he said, is composed of “what we like to eat when we’re drinking.” That includes the Streetcart Special, with all sorts of things on skewers.

Our boredom with what we thought was familiar made us, again, lower our expectations, but boy oh boy, you haven’t had nice homemade pork longanisa (local sausage) on a stick, and what we thought were pedestrian squid balls were chewy, very tasty cuttlefish balls. They offered us chicharon (pork crackling) too, but we didn’t think much of the offer until it came to the table, still crackling (pun intended) on the plate. The Freshly Popped Chicharon is made to order, and like their beer, is as fresh as it can get.

“It wasn’t very difficult to come up with the menu for Blackwood. Most of it I would actually credit to our guests,” said Mr. De Ocampo.

And then there was the Goat Sisig. We’ve never had goat like this before: the goat’s face is cooked until it’s tender, then chopped up and grilled just like pork sisig. It has the familiar sticky collagen-covered texture of sisig we all love, but it has a complexity from lean bits of gamey goat meat. If just for this dish, we’d vouch for this place, and tell everybody to come.

The dish (and all of their other goat entrees; refried adobo, caldereta, and the like) was inspired by a customer. “We had a guest here, who came from the province. He’s a farmer visiting a relative,” said Mr. De Ocampo. The country lad asked for some goat, but was told they didn’t serve it there.

Mr. De Ocampo learned his lesson. “Ang bar, dapat may kambing. Ang manginginom, hindi tatanggi sa kambing (a bar should always serve goat meat. A drinker will never refuse goat meat),” he said. The next day, he was at the market buying goat meat. “And guess what? Ang lakas ng kambing (the goat is selling very well).”

LESSONS
Blackwood has a sister restaurant, Vintage, right next door. Blackwood itself has lasted more than 10 years, in a tight, restaurant-packed city where they can close as quickly as six months. Not to mention the COVID-19 lockdowns of 2020, which culled many restaurants in the metro: “We were three seconds away from throwing in the towel,” he recalled. “The only thing that kept us going — I don’t want to sound melodramatic here — but it’s the people. They’ve been with us 10 years already. They’re family to us.”

For him, the solution for longevity in the restaurant business comes down to presence. “Being here. Being physically present, being in touch with the business. We’ve always been hands-on. If there are things we need to change, we change immediately.”

We haven’t talked about the name. The name “Blackwood” comes from the Australian Blackwood tree, a species of Acacia. The name sounded cool, but Mr. De Ocampo found out that the tree symbolizes hard work, perseverance, and new hope.

“It’s not just the life we choose, it’s the life we love,” he said, and as he said it, the opening strains of Madonna’s “Like a Prayer” rose from the speakers. “It’s not for everyone, really. But ang sarap eh.”

Blackwood Bar and Grill is located at The Portal, Greenfield District, Mayflower St., Mandaluyong. — Joseph L. Garcia

POWER DISTRIBUTOR Manila Electric Co. (Meralco) expects a reduction in generation charges for September, attributed to the strengthening of the peso and a decrease in demand.

“While we have yet to receive all the final billings from our suppliers, we expect a possible decrease in the generation charge this month,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a Viber message on Wednesday.

He said that the anticipated decline in generation charges is due to the appreciation of the peso, which has reduced costs for suppliers that primarily deal in US dollars. 

In August, the peso strengthened by P2.254, ending at P56.111 per dollar on Aug. 30, compared to P58.365 per dollar on July 31.

Additionally, Mr. Zaldarriaga noted a reduction in demand during the previous supply month.

“We hope that these factors would be enough to bring down the overall electricity rate for this month,” he said.

Generation charge, which usually makes up a bulk of an electricity bill, went down by P0.0503 per kilowatt-hour (kWh) in August.

Overall, Meralco announced a slight increase of P0.0327 per kWh, resulting in a new rate of P11.6339 per kWh for a typical household. This is an increase from the previous month’s rate of P11.6012 per kWh.

Wholesale Electricity Spot Market (WESM), independent power producers, and power supply agreements, accounted for 27%, 33%, and 40% of the company’s total energy requirement for the period.

For August, WESM prices at system-wide fell with supply ample in the face of strong demand, based on the preliminary data from the Independent Electricity Market Operator of the Philippines.

Meralco’s majority owner, 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

SINCE Don Papa Rum’s launch in 2012, they’ve always had Tres Papas, collaborations with different bartenders (three; it’s in the name) served at some of the city’s coolest bars. For the Tres Papas event on Aug. 22 at The Curator in Makati (No. 33 on the Asia’s 50 Best Bars list of 2024, and thus, the best bar in the Philippines this year), they concentrated on the theme “Panghimagas” (dessert).

Don Papa Rum’s Philippine brand ambassador Audrey Gustilo, The Curator’s senior bartender Dan Santos, and Night Hawk Singapore’s Trisha “Taco” Leong took over the bar for a one-night-only shift. Night Hawk is currently ranked #16 in Asia’s 50 Best Bars, and Ms. Leong is the bar’s Operations Manager.

The three bartenders crafted cocktails that reimagined classic Filipino desserts, each bringing their unique spin to the table. Ms. Gustilo drew inspiration from the comforting flavors of rum and her beloved halo-halo (an ice-based dessert) topping, macapuno (coconut sport), along with yema (sweet custard confectionary), a childhood favorite. Mr. Santos, on the other hand, focused on refreshing dessert coolers that evoke memories of summer in the Philippines, such as the iconic mais con yelo (sweet corn with ice) and sago’t gulaman (sago pearls and jelly in brown sugar syrup) Ms. Leong, hailing from Singapore, was eager to highlight Filipino desserts known for their simplicity yet rich flavors, like ube and leche flan.

“Our Tres Papas event is truly an exceptional vehicle to pay homage to the Filipino Culture. For this particular series, it’s all about food focused on dessert favorites. We grew up enjoying them and handing these delectable treats down to our younger generation. It is about time we get to share these to the world as well by working with these extraordinary bartenders from truly world class bars. Don Papa is extremely proud to hold Tres Papas here, our mother market and soon to other parts of Asia-Pacific. I am thrilled to see how Filipinos are very supportive of our brand and how we engage them. Expect to see more from Don Papa as we continue to expand our presence here and across the region,” said JoAnn Ramos, Don Papa Rum Philippines president and Asia-Pacific marketing and commercial head in a statement.

ONGOING CHANGES
In an interview with BusinessWorld at the Don Papa offices (conveniently located behind The Curator), Ms. Ramos discussed ongoing changes at Don Papa owing to their acquisition by global spirits conglomerate Diageo (story here: https://tinyurl.com/4batusn3). “We’re taking it to greater heights: we’re expanding. In the next two to three months, we’re launching in Singapore… and distribution’s going to be a lot more expansive,” she said. In six months, they have plans to formally launch in Thailand and Vietnam, then moving on to Malaysia, Japan, South Korea, and Taiwan.

“Of course, at the end of the day, we’ll make the Philippines a lot better in terms of stability and portfolio. We’re definitely going to launch a lot more new products,” she said. “Because we’ve been partnered now, obviously, with Diageo, there’s definitely a lot more stability in terms of product availability and volume.

“We actually have other facilities now, thanks to them,” she added. “There’s a lot more in the next six months that’s coming out. I just can’t share [information about] it right now.”

The second and third Tres Papas events will be on Sept. 11 at OTO, to be done in collaboration with 28 HongKong Street, one of the most awarded bars in Asia, and on Oct. 2 at the Grasshopper in Makati City, together with Singapore’s Elephant Room, which debuted at the Asia’s 50 Best Bar list in 2023. — Joseph L. Garcia

LOPEZ-LED First Gen Corp. is seeking bidders for a new liquefied natural gas (LNG) supply cargo to be used in its gas-fired power plants in Batangas.

The energy company, through its wholly owned subsidiary First Gen Singapore Pte. Ltd., intends to procure 154,500 cubic meters of LNG cargo, according to a bid notice.

The selected bidder is set to be awarded on Sept. 16 and the delivery will commence from Oct. 14 to Oct. 18.

The LNG cargo will be delivered to the Subic Bay Freeport in Zambales, where it will be loaded into the BW Batangas, a floating storage and regasification unit, and then used for the power plants.

First Gen has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 megawatts located in the First Gen Clean Energy Complex in Batangas. These plants have been supplied for many years with gas from the Malampaya gas field, the country’s sole natural gas provider.

“FGen reserves the right at its sole discretion to cancel the invitation to bid or to reject any or all bids prior to the acceptance of a bid or proposal,” First Gen said.

In June, First Gen announced that it has awarded the contract to Japanese company TG Global Trading Co. for the delivery of its fifth LNG cargo containing approximately 125,000 cubic meters.

The LNG cargo, which was supposed to be delivered in July, has been deferred as the company said it still has residual gas.

FGEN LNG Corp., a subsidiary of First Gen, constructed an interim offshore LNG terminal and executed a five-year time charter party for BW Batangas to provide LNG storage and regasification services.

At the local bourse on Wednesday, shares in the company rose by 0.48% to close at P16.90 each. — Sheldeen Joy Talavera

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Mid-autumn treats at Marco Polo Ortigas

MARCO POLO Ortigas Manila presents a Mid-Autumn Festival celebration at Lung Hin, the hotel’s Cantonese restaurant. From Sept. 1 to 17, Lung Hin offers a set menu for groups of five and 10 for the occasion. Guests can look forward to the Signature Peking Duck, and Chicken Consommé featuring Morel Mushrooms, Fish Maw, and Bamboo Pith. Other highlights of the set menu include the Baked Abalone Puff, and Roasted Goose with Mushrooms. The menu also features Wok-Fried Sea Conch with Shrimp and XO Sauce, and Sautéed US Beef Cubes with Foie Gras. Seafood lovers will like the Steamed Grouper Fillet with Parma Ham and Shiitake Mushrooms, and the Steamed Crab with Glutinous Rice, Pork, Dried Squid, and Shrimp. The meal can end with a seasonal fresh fruit platter. Lung Hin is also offering a collection of traditional mooncakes in gift boxes. There are boxes of one, four, and six mooncakes, with limited editions for the boxes of four and six. Flavors include classics such as White Lotus with Egg Yolk, Red Lotus with Egg Yolk, Red Bean with Egg Yolk, and Mixed Nuts. For inquiries, call 7720-7777.

New World Makati offers mooncakes

NEW WORLD Makati Hotel invites everyone to celebrate the Mid-Autumn Festival with their special mooncakes which are elegantly presented in boxes inspired by traditional Chinese wooden window grilles. The hotel’s handmade mooncake collection features six flavors that include three new variants. The new flavors are Dark Chocolate, Matcha, and Durian, while classic flavors are Red Bean, Red Lotus, White Lotus. Miniature versions are also available for guests to try. An individual box is P488, a box of four is P2,388, and a box of six is P3,888. Miniature mooncakes are P168 each, and a box of six is P988. A 20% discount is offered for purchases of 100 boxes or more, and a 10% discount is given to Club Epicure members and orders of 50 boxes. For inquiries, call 8811-6888 ext. 3679 or 0917-888-4194, or e-mail fbreservations.manila@newworldhotels.com.

Gordon Ramsay: now in the Philippines

GORDON RAMSAY Bar & Grill Philippines at Newport World Resorts is now open to the public following an exclusive ribbon cutting ceremony on Aug. 31. Theures British classics, perfectly grilled steaks, fresh market seafood, and an array of sides and desserts. These include Gordon Ramsay Fish & Chips (a battered Pacific grouper served with crispy fried potato fries), Gordon’s Signature Beef Wellington (a slice of beef tenderloin wrapped in a layer of mushroom and truffle duxelles, encased within a buttery pastry, served with creamed potato and drizzled with red wine jus). The Crispy Crab Cake & Sturia Oscietra Caviar is a balance of crisp and creamy crab cake topped with a poached egg and Hollandaise. Alongside the menu, the restaurant also hosts a bar offering high-end wines from around the world, sought-after spirits, and hand-crafted cocktails. The 400-square meter space features Spanish tiles, hand-laid wood panels and bricks, as well as bespoke Philippine-made furniture. Located on the 2^nd floor of the Newport Grand Wing, the restaurant is open daily from noon to 3 p.m. for lunch and 6 to 10 p.m. for dinner; its dress code is smart casual. For more information and table reservations, visit www.newportworldresorts.com/grbg and follow @newportworldresorts and @gordonramsaybarandgrillph on Facebook and Instagram; and @newportworldresorts and @gordonramsayph on TikTok.

Celebrate Grandparents’ Day with Mang Inasal

MANG INASAL is honoring all lolos and lolas with Grandparents’ Day treats this September. From Sept. 1 to 15, visit any Mang Inasal store nationwide for combos featuring grandparents’ favorite dishes: two Palabok Solos for P129, two Extra Creamy Halo-Halos or Crèma de Leche Small for P119, and one Palabok Solo and one Extra Creamy Halo-Halo or Crèma de Leche Small for P129; with savings between P17 and P29. Mang Inasal Grandparents’ Day Treats are available for dine-in and takeout in all Mang Inasal stores nationwide. Visit  www.manginasal.ph for the latest news and https://manginasaldelivery.com.ph for delivery deals.

BUDGET CARRIER Cebu Pacific, operated by Cebu Air, Inc., aims operate two new domestic routes next month to further boost its Iloilo hubs.

In a statement on Wednesday, Cebu Pacific said it will begin operating flights between Iloilo and Tacloban four times a week — on Tuesday, Thursday, Saturday, and Sunday — starting Oct. 27.

The airline will also launch flights between Iloilo and Zamboanga three times a week — on Mondays, Wednesdays, and Fridays — beginning Oct. 28.

“The addition of our new domestic routes from Iloilo aligns with our mission of making air travel accessible to a wider range of passengers,” said Cebu Pacific President and Chief Commercial Officer Alexander G. Lao.

To date, Cebu Pacific operates in 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.

“We look forward to flying more Juans across our growing interisland network and better enabling them to discover the beautiful islands of the Philippines,” Mr. Lao said.

For the year, the company has initially set a target of 24 million passengers, significantly higher than its 2023 passenger volume.

In 2023, Cebu Pacific flew over 20 million passengers and operated more than 140,000 flights, representing increases of about 41% and 30%, respectively, from the previous year.

In the second quarter alone, Cebu Pacific carried a total of six million passengers, its highest quarterly passenger count in its history, the airline said.

The company also reported a significant increase in its cargo business, transporting nearly 36 million kilograms of cargo from April to June.

For 2024, Cebu Pacific expects to receive 17 aircraft, with 10 already having arrived at Ninoy Aquino International Airport.

The company has agreed to purchase up to 152 Airbus aircraft, with finalization expected by the third quarter. These aircraft are scheduled to be delivered starting in 2028. — Ashley Erika O. Jose

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Lecture on Khmer ceramics at the National Museum

THE National Museum of the Philippines will be holding a lecture on Khmer ceramics, led by Dr. Yukitsugu Tabata of Waseda University in Japan. On Sept. 5, 1:30 p.m., at the Ayala Room, National Museum of Anthropology, Manila, Dr. Tabata will share his expertise in ceramics through a talk titled “Introduction to the Khmer Stoneware: The Oldest Stoneware Industry in Southeast Asia.” Admission is free but registration is required via https://bit.ly/NMP-Lecture-Khmer-Ceramics.

Intramuros to celebrate its first-ever fiesta

THE historic Walled City of Manila, Intramuros, is set to celebrate the first-ever Fiesta de Intramuros on Sept. 8. This honors the feast day of Nuestra Señora de la Consolación y Correa, whom the Manila City Council, through its Resolution No. 496, series of 2024, has declared as the official patroness of Intramuros and bestowed the title Queen and Protectress of the Distinguished and Ever Loyal City. San Agustin Church in Intramuros houses the original canonically crowned image of Nuestra Señora de la Consolación y Correa, who has been a silent witness to the Walled City’s rich history for almost 400 years and is the only Marian image continuously venerated within Intramuros. The Fiesta Hispano-Filipino cultural night on Sept. 6 will feature performances that highlight the fusion of Spanish and Filipino cultures, while the Dulce Septiembre (Sweet September) Bazaar will offer visitors a showcase of sweet treats from local food vendors along General Luna St. in Intramuros on all weekends of September.

Curator Daisy Nam to hold talk in Manila

DAISY NAM, California College of the Arts (CCA) Wattis Institute for Contemporary Art Director and Curator, will discuss the process of selecting, organizing, and presenting art in different places and spaces in a free public lecture on Sept. 10, 3 p.m. The talk will walk the participants through Nam’s strategies in developing exhibitions, commissions, and teaching programs, as well as fundraising and donor cultivation. It is free and open to the public and will be conducted at the 8th Floor Learning Commons of the DLS-CSB Design + Arts Campus, 950 Pablo Ocampo St., Malate, Manila. Interested participants may register through tinyurl.com/MCADDaisyNam.

Cellist Damodar Das Castillo set for send-off concert

THE MiraNila Heritage House & Library will be the venue of Strings of Gold: Send-off Concert of Cellist Damodar Das Castillo on Sept. 19, 6 p.m. Aside from the cello prodigy, the concert will also feature concert pianist Mariel Ilusorio playing on MiraNila’s newly restored Steinway 1904 grand piano, considered rare in the Steinway & Sons catalog. Mr. Castillo’s repertoire is a blend of classical music for cello by Bach and Chopin with popular classical pieces by Nicanor Abelardo, Henry Mancini, and Richard Rogers. It will conclude with a cello concerto by Dvořák, one of the numbers that allowed Mr. Castillo to make his mark on the international competition circuit. Tickets cost P1,500 and are available by messaging 0927-277-6335 (Robeen Manalo). Guests are requested to wear soft-soled shoes as these are kinder to old floors. MiraNila Heritage House & Library is located at 26 Mariposa St., Brgy. Bagong Lipunan, Crame, Quezon City.

Película>Pelikula Spanish Film Fest poster exhibit

INSTITUTO Cervantes de Manila is putting up What is a Filmfest Like You Doing in a City Like This?! Posters of Película>Pelikula Spanish Film Festival, an exhibition celebrating the visual history of the Manila Spanish Film Festival. Running from Sept. 5 to Oct. 31 at Instituto Cervantes Manila in Intramuros, this exhibit offers a glimpse into the creative evolution of the festival through its iconic posters. For its 23^rd edition this year, the old posters and other graphic collaterals highlight the artistic expressions that have defined each edition, capturing the essence of Spanish and Latin American cinema over the years. The exhibition will also be showcased at Shangri-La Plaza Mall, the main venue of the film festival, which runs from Oct. 5 to 13.

Baylan of Mount Kalatungan exhibit at National Museum

THE National Museum of the Philippines (NMP) has launched an exhibition titled The Baylan of Mount Kalatungan at Gallery 1 of the National Museum of Anthropology. The photographic and illustrative exhibit tells the story of the sacred sites and deities of Mount Kalatungan in Bukidnon. It aims to shed light on the people and places that form the final vanguard of environmental protection — the Talaandig Manobo indigenous people who call the forests in the mountain their home. The Baylan of Mount Kalatungan opens on Oct. 11.

Sari-Sari at ARTablado

FOUR artists who are friends are holding an exhibit titled Sari-Sari at Robinsons Land ARTablado. Names after the quintessential Filipino convenience store, this exhibition brings together the unique styles and perspectives of four artists — Sarah Liuson-Ongsun, Joanne Cariaso-Gacayan, Cher Cabula-Mendoza, and Nina Tolentino-Hidalgo — each contributing their distinct voice to create a rich, eclectic mix of art, all done in watercolor. Sari-Sari is on view until Sept. 15 at Robinsons Land ARTablado, Level 3 of Robinsons Galleria, Ortigas Center.

National Artist Kidlat Tahimik at Mactan airport

THE Mactan-Cebu International Airport (MCIA) is now home to the works of National Artist Kidlat Tahimik (a.k.a. Eric Oteyza de Guia). His art installations were unveiled at the International Departures Area of Terminal 2. Crafted from wood and stone, the works depict stories of Magellan’s historic expedition to Cebu, including the legendary figure of Lapu-Lapu.

Mind Museum launches unlimited pass

THE Mind Museum has launched the Unlimited Science and Arts Pass (USAP), an offering that provides an immersive, year-long experience where science and art converge. With USAP’s Group Membership option, families and friends can enjoy all the benefits of USAP together at a discounted rate. Families can take advantage of birthday perks that include discounts on Birthday Party packages. USAP includes free access to Playtales for kids aged seven and below. USAP also offers special discounts on The Mind Museum’s Educational Programs. USAP members receive free admission to over 300 international science museums via the Association of Science Technology Centers (ASTC) Passport Program. USAP members can also take advantage of discounts on BGC Arts Center’s flagship programs. The USAP is exclusive to the registered individual and is non-transferable, and membership is valid for one year from the activation date. A valid USAP card and ID must be presented to avail of any benefits. An Individual Membership costs P3,000 per person (child/adult), while a Group Membership is P2,750 per person (child/adult) for a minimum of two members. The USAP can be purchased on-site or online at https://www.themindmuseum.org/buy-tickets.

Manny Baldemor art on UNICEF Christmas cards

UNICEF Philippines ushers in the start of the Christmas season with the joyful art of Pinoy folk artist Manuel “Manny” Baldemor who is this year’s featured artist for UNICEF Christmas Cards. An artist from Paete, Laguna, Baldemor is renowned for his paintings, wood prints, and wood carvings featuring simplified geometric forms and folk art characters.  He has been a part of the UNICEF Cards roster of artists since the 1990s. The 2024 limited-edition UNICEF Cards feature four artworks from Baldemor’s collection: Pasko sa Aming Bayan (1992), Christmas Lanterns Festival (2006), Graces from the Land (2008), and Pasko ng Pamilya Pilipino (2024). Get one box set of UNICEF Cards for every P1,000 donation to the organization and receive 12 individual cards featuring Baldemor’s four artworks. Go to https://donate.unicef.ph/ to get a set of UNICEF Christmas Cards.

REP, Bristol Old Vic Theatre School’s Bridge Project

REPERTORY Philippines (REP) has announced that it has forged a partnership with the Bristol Old Vic Theatre School for REP’s Bridge Project program that will bring UK conservatoire training to Manila in 2025. The Bristol Old Vic Theatre School is one of the most successful and well-respected drama schools in the UK, attracting students internationally and known in the industry as a benchmark of quality in professional acting, technical, production and stage management training. Some of its many notable alumni include Jeremy Irons, Patrick Stewart, Daniel Day-Lewis, and Olivia Colman. Alumnus director Victor Lirio helmed and designed REP’s Bridge Project as a collaborative congress for Filipino theater practitioners in the Philippines, UK, and US.

HOMEGROWN coffee brand Bo’s Coffee expects to open 35 new outlets this year and 50 more next year, according to its founder.

“As far as the company is concerned, we (will be) able to grow by 35 stores by the end of this year; and next year, we are looking at 50 stores,” Bo’s Coffee Founder and Chief Executive Officer Steve D. Benitez said on the sidelines of the Franchise Asia Philippines 2024 International Conference on Monday.

Founded in the Philippines, Bo’s Coffee has expanded its operations to include a growing number of outlets both locally and internationally.

He said that the company’s growth is mainly driven by franchising, and its capital expenditure will be focused more on the commissary and support systems.

If realized, the additional stores will bring the brand’s total number of locations to 160 by the end of the year and over 200 by 2025. Thirty percent of these will be company-owned outlets.

The brand is also expanding operations in Doha and Dubai.

 “We will have 16 stores by the end of this year in Doha and four in Dubai. Two are operating in Dubai, and 14 stores are already open in Doha,” he said.

“We are talking to other partners, and Canada is on the table… But it is going to be a five-year plan, so it is like a rollout of 10 stores in 10 years or 12 stores in 10 years,” he added. — Justine Irish D. Tabile

A vision for growth

Founded by Dr. George S.K. Ty on Sept. 5, 1962 to help businesses grow by establishing a bank that can provide funding and support, Metrobank became a trusted financial partner for individuals and enterprises of all sizes through the relevant financial products and services it offers its clients.

With the Bank’s products and services, thousands of clients have turned their dreams into reality — whether it’s a young entrepreneur starting a business, a family buying its first home, or a company expanding its operations and reach.

Metrobank’s wide range of services — across retail banking, corporate banking, investments and leasing, among many others — uphold its commitment of being its clients’ trusted financial partner.

Breaking records

Proof of its financial strength is its net income, which has grown from strength to strength. Metrobank posted a record first-half income of PHP23.6 billion this year, supported by robust asset expansion, stable margins and well-managed cost growth and healthy asset quality.

With total consolidated assets expanding to PHP3.3 trillion, Metrobank has maintained its position as the country’s second largest private universal bank.

At every customer touchpoint

Metrobank has also expanded its reach with over 950 domestic branches, more than 2,300 ATMs and above 30 foreign branches, subsidiaries and representative offices.

And with the drive to address changing consumer behavior and rising digital adoption, the Bank has rolled out more digital channels to cater to customer needs.

Recognized globally

Also demonstrating Metrobank’s strength and reliability as a partner for growth are the numerous awards it garnered for its excellent service. It was hailed as the Most Recommended Retail Bank in the Philippines by The Asian Banker during the publication’s recent Global Excellence in Retail Finance Awards.

It was also recognized as the Best Bank for Corporate Responsibility at the Euromoney Awards for Excellence 2024, Best Bank for Ultra-High-Net-Worth at the Euromoney Global Private Banking Awards 2024, and the Best Asset Manager for the Philippines at the Citywire Asia Asean Awards. The Bank’s Grow With Metrobank video campaign that was inspired by the many true stories of how it helped clients and communities thrive and achieve their aspirations received the Gold Stevies at the 21^st Annual International Business Awards.

A catalyst for growth

Beyond providing banking services to its customers, Metrobank contributes to nation-building and growth by providing capital to businesses that align with the Bank’s sustainability strategy, which has five focus areas, such as Sustainable Development Goals 1 (poverty eradication), 2 (zero hunger), 4 (quality education), 8 (decent work and economic growth) and 9 (industry, innovation and infrastructure). By focusing on these areas, the bank is helping achieve a sustainable future and long-term success for businesses and the society.

Metrobank is also a responsible partner for growth as it empowers communities through the Metrobank Foundation, Inc. (MBFI). Through MBFI, the Bank supports various programs on education, visual arts, and health aimed at driving positive change toward nation-building.

The MBFI also recognizes individuals for their exemplary service and long-lasting positive impact in key service sectors, such as the academe, military, and police through the Metrobank Foundation Outstanding Filipinos Awards every year.

Through its employee volunteerism arm Purple Hearts Club, Metrobankers are actively helping communities by taking part in disaster and relief efforts, and initiatives on education, health, community assistance and livelihood.

Metrobank is committed to remain a partner for growth that helps customers, Metrobankers, and communities achieve their goals and thrive in the years to come.

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The new ALogis Artico Consolacion is scheduled for completion by the third quarter of 2025 and will be the company’s second facility in Cebu following the addition of ALogis Artico Mandaue in 2022, ALLHC said in an e-mailed statement on Wednesday.

The new facility will expand ALLHC’s cold storage capacity by 6,000 pallets. It will include 16 cold storage rooms with temperatures ranging from 5°C to -25°C, and a processing room.

“Our focus is on meeting the rising demand for dependable modern cold storage solutions, which are vital for the preservation of the quality of perishable goods to reduce food waste and post-harvest losses,” ALLHC Chief Operating Officer Patrick John C. Avila said.

“By investing in this facility, we are not only broadening our capabilities, but also ensuring that we can provide our clients with various locations that can meet their needs,” he added.

The facility is accessible via the Cebu-North Coastal Road and is near key transportation hubs, including Mactan-Cebu International Airport and Cebu Port.

“The population of Cebu is tremendously multiplying. Within five years, it is going to double. Logistics is very important, and I do hope that with the opening of this facility, this will lead to more investments that will be complementing the needs of the people,” Consolacion town Mayor Teresa P. Alegado said.

ALLHC said the new Cebu cold storage facility will be registered with the National Meat Inspection Service (NMIS), Board of Investments, Bureau of Fisheries and Aquatic Resources, and the Bureau of Plant Industry to ensure compliance with food safety and quality standards.

“I consider Cebu as an economic hub that distributes meat products outside of Cebu going to Mindanao and the adjacent provinces of Cebu. This facility can really help us in our desire and our implementation to produce sound, safe meat for the meat-consuming public,” NMIS Regional Director Alvin A. Leal said.

In the first half of the year, ALLHC opened its fourth cold storage facility, ALogis Artico Santo Tomas in Batangas.

ALLHC is the industrial parks and real estate logistics arm of Ayala Land, Inc. It is engaged in the businesses of industrial parks, warehouses, cold storage facilities, data centers, and commercial leasing.

On Wednesday, ALLHC shares rose by 1.12% or two centavos to P1.80 apiece. — Revin Mikhael D. Ochave

LISTED port operator International Container Terminal Services, Inc. (ICTSI), through its subsidiary Contecon Guayaquil S.A. (CGSA), has partnered with COSCO Shipping Specialized Carriers Co., Ltd. to handle its general cargo vessels for the next three years.

“Our handling of project cargo plays a crucial role in supporting major investment projects across the country, significantly boosting economic growth and advancing regional port infrastructure,” CGSA Chief Executive Officer Javier Lancha said in a media release on Wednesday.

CGSA, a unit of ICTSI, started commercial operations at the Port of Guayaquil in 2007, data from its website showed. The company will continue operating the port’s container and multipurpose terminals until 2046 following the extension of its concession in 2019.

COSCO Shipping Specialized Carriers operates and manages a fleet of more than 100 vessels, including multipurpose and heavy lift ships, semi-submersible vessels, and carriers for automobiles, logs, and asphalt.

Its fleet is said to be the largest of its kind worldwide, making COSCO Shipping Specialized Carriers a global leader in maritime transport, ICTSI said.

For the second quarter, ICTSI reported a 32.3% increase in attributable net income to $210.67 million, driven by a rise in container volumes at its terminals and growth in ancillary services.

For the April-to-June period, the company saw its combined revenues grow to $684.03 million, a 15.4% increase from last year’s $592.73 million.

At the stock exchange on Wednesday, shares in the company closed 60 centavos or 0.15% lower at P398 each. — Ashley Erika O. Jose

YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) rose slightly on Wednesday as investors seek to lock in high returns amid expectations of further monetary easing here and abroad.

Demand for the central bank’s term deposit facility (TDF) amounted to P239.937 billion on Wednesday, above the P220-billion offering and the P231.77 billion in bids for a P200-billion offer a week ago.

Broken down, tenders for the seven-day papers reached P127.289 billion, higher than the P120 billion on the auction block but below the P133.79 billion in bids for the P100-billion offering of six-day deposits in the previous week.

Banks asked for yields ranging from 6.2475% to 6.35%, a wider band compared with the 6.2595% to 6.35% seen a week ago. With this, the average rate of the one-week term deposits went up by 0.61 basis point (bp) to 6.3094% from 6.3033% previously.

Meanwhile, the 14-day papers fetched bids amounting to P112.648 billion, above the P100-billion offer and the P97.98 billion in tenders for the same volume of 13-day term deposits auctioned off last week.

Accepted rates for the tenor were from 6.285% to 6.465%, narrower than the 6.285% to 6.535% range seen last week. This caused the average rate of the two-week papers to increase by 1.15 bps to 6.3787% from 6.3672% in the prior auction.

The central bank has not offered 28-day term deposits for more than three years to give way to its weekly auctions of securities with the same tenor.

The term deposits and 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

“Some investors in recent weeks locked in investable funds in longer-dated tenors amid the easing trend in local and global bond yields after the local policy rate cut on Aug. 15 and the widely expected Federal Reserve rate cut [this month]…,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP last month cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25%.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19.

Meanwhile, markets widely expect a rate cut at the US central bank’s Sept. 17-18 meeting following Fed Chair Jerome H. Powell’s dovish speech at the Jackson Hole Symposium last month.

Mr. Powell last month endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target.

“The time has come for policy to adjust,” Mr. Powell said in a highly anticipated speech to the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Soft US manufacturing data released on Tuesday fanned worries about a hard landing for the world’s biggest economy, with traders already nervous ahead of crucial monthly payrolls data on Friday, Reuters reported.

Risks to the US soft-landing scenario — which had been gaining traction recently in markets — saw traders raise odds of a 50-bp Fed interest rate cut this month to 38% from 30% a day earlier, according to the CME Group’s FedWatch Tool.

Economists surveyed by Reuters expect Friday’s report to show an increase of 165,000 US jobs in August, up from a rise of 114,000 in July.

Ahead of that, investors will keep a close eye on job openings data due later on Wednesday and the jobless claims report on Thursday.

TDF yields rose as the National Government’s latest global bond issuance “siphoned off some of the excess liquidity from the financial system,” Mr. Ricafort added.

The government last week raised $2.5 billion from its sale of triple-tranche dollar-denominated global bonds, which marked its second foray into the international debt market this year.

IFR reported that the government raised $500 million from 5.5-year bonds, $1.1 billion from 10.5-year notes, and $900 million from 25-year sustainability bonds. — Luisa Maria Jacinta C. Jocson with Reuters

BUSINESS LEADERS that do not have a grasp of generative artificial intelligence (GenAI) may struggle to recognize the opportunities and benefits and mitigate the risks that come with the technology, according to PwC.

“As business leaders, if you don’t have foundational knowledge of GenAI, it’s very hard for you to have strategic discussions with your own colleagues and drive meaningful innovation,” Scott McLiver, GenAI leader at PwC Asia-Pacific, said in a statement on Sept. 2.

In an AI Masterclass organized by PwC Philippines that was held on Aug. 12, Mr. McLiver said GenAI is a tool to “supercharge” employees and should not be seen as a human replacement.

“It’s not about removing people but trying to make every person more efficient and having the tech do small, time-consuming tasks,” he said.

Business leaders should invest in safe and robust AI tools for their workforce to prevent the use of “irresponsible” technologies, Mr. McLiver said.

“At PwC Philippines, we’re embracing the future of corporate efficiency through the strategic application of GenAI,” Mary Jade Roxas-Divinagracia, Deals and Corporate Finance managing partner at PwC Philippines, said.

“Our latest investment, ChatPwC, is a secure, in-house virtual assistant trained on our firm’s data and tailored to our unique needs.”

Ms. Divinagracia said the tool has provided a 40% increase in productivity in PwC territories globally.

“As we explore GenAI, balancing risk with opportunities that can be derived from using the GenAI is crucial. Having an AI governance framework and adhering to ethical guidelines ensures responsible implementation,” said Maria Rosell S. Gomez, partner and Risk Services leader at PwC Philippines.

Ms. Gomez added that this approach allows them to maximize AI’s benefits while preserving the “essential” human involvement in decision-making processes.

For her part, Veronica Bartolome, Consulting Managing Principal at PwC Philippines, said that while many Filipinos are optimistic about GenAI’s benefits, workplace adoption remains limited, citing PwC’s 2024 Global Hopes and Fears Survey.

“To drive GenAI transformation, they emphasized that leaders should focus on skills development, employee involvement in AI strategy, and fostering a culture of learning and empathy so employees view it as an enabler, not a blocker,” she added. — Aubrey Rose A. Inosante

Is the Internet of Things (IoT) a more prolonged Google Glass experiment — a cumbersome way of addressing a non-problem? Over the past 20 years companies have poured billions of dollars into the IoT. Consultancies gush in glossy reports about a wonderful future in which dumb objects are infused with intelligence — umbrella handles that glow when it is about to rain, pillboxes that yelp when you forget take your meds, intelligent ovens that produce a perfect roast, tennis rackets that feed data to your smartphone which then tells you how to improve your serve.

The hype continues. A new report from the management consultancy McKinsey and Co. estimates that “the total value potential for the IoT ecosystem could reach $12.6 trillion by 2030.” Fusion Strategy, a new book by Vijay Govindarajan of the Tuck School of Business at Dartmouth University and Venkat Venkatraman of the Questrom School of Business at Boston University predicts that the fusion of “big iron and big data, steel and silicon,” will produce nothing less than a fourth industrial revolution. But if the hype continues, so do the disappointments.

Manufacturer surveys suggest that fewer than half of internet-capable devices are connected to the internet. Companies such as LG Electronics, Inc. and Whirlpool Corp. have responded to these dismal figures by sinking yet more money into the IoT. But many customers remain indifferent. “Why Has the Internet of Things Failed” is the blunt title of a recent article by the tech blogger Pete Warden.

The simple answer to Warden’s question is that, for all too many consumers, the lemon juice is not worth the squeeze. The shiny yellow lemons turn out to be rancid. And the squeezing turns out to be difficult and time-consuming.

The consumer benefit of attaching your household devices to the internet is often small. How do you benefit by connecting your dishwasher to the internet? You might be able to start it remotely (after you’ve used your thumb to activate your phone, found the app, clicked on the app, and debated all the other things you could or should be doing on your phone). But you still must be there to load it. What is the benefit of being able to control the temperature of your fridge remotely? Fridge-freaks might revel in this power, but most of us just set the fridge to the right temperature and forget about it. The same question goes for notifications that the washing machine has finished doing the washing, or that the kettle has boiled or that the oven has heated up.

You may not have ever considered “the Role of IoT in Reusable Cups.” Rest assured that the ever-inventive IoT industry has. “IoT-enabled return stations allow users to conveniently return their used cups” while providing cleaning staff with up-to-date information on how many cups are accumulating. “IoT devices can track the location and status of reusable cups, providing valuable data on usage patterns and helping optimize the distribution and collection process.” And IoT-enabled cleaning machines can make sure the cups “are sanitized according to industry standards.” Wouldn’t it be simpler and cheaper just to install a sink and get everyone to wash their own cups?

If the benefits are often small, or indeed nonexistent, the set-up tax is high. You must download a different app for every manufacturer. You must make sure the device is connected to the internet (washers and driers are often kept in out-of-the-way places where the internet signal is poor). Setting up an iPhone or an iPad can be taxing enough even though the benefits are obvious, and the devices come equipped with keypads. But keying complicated instructions into an oven is a chore of a different magnitude.

The problems do not stop when you are connected. People tend to hang onto their white goods for years. The IoT obliges them to reprogram these devices whenever they change their service providers or their smart phones or even their passwords. One of the most vaunted benefits of the IoT is that it allows companies to upgrade products remotely. But what if the upgrading goes wrong? Users of Sonos, Inc.’s audio devices who downloaded the company’s latest app discovered that it sent their speakers bonkers — playing music at ear-splitting volumes or emitting high-pitched sounds in the middle of the night. The more interconnected appliances become, the higher the chance that they will all fail together.

The case for the IoT is a bit stronger in the world of expensive machines than in the world of ovens and washing machines. Elon Musk revolutionized the automobile industry by reimagining the motor car as a connected computer on wheels. Deere & Co. is trying to revolutionize the farm machinery industry by being equally bold about tractors. The company claims that it collects between 10 million and 15 million pieces of information per second from some 500,000 connected machines on more than 325 million acres of land around the world in order to enable precision farming — for example spraying individual weeds with weedkiller rather than blanket spraying a field. Giant infrastructure companies such as Schlumberger and Halliburton Co. use sensors to keep watch on, say, oil rigs for signs of rusting and wear and tear. Rolls-Royce Holdings Plc uses them to monitor how its jet engines are performing in the air, and whether they are wasting fuel.

In all these cases the cost-benefit analysis of linking machines to the internet is different than in the consumer sector: The lemon is worth the squeeze. But this does not prevent bitter fights between companies and their customers over both the division of spoils and the balance of power. Apple is famous for forcing its customers to go to its own shops for repairs when they break their phones rather than opting for cheaper third-party repair shops. It has even gone as far as to use software updates to disable touch screens installed by third parties. John Deere has provoked an angry revolt from farmers over its attempt to do the same thing with its tractors, even arguing that its products are so computerized and interconnected that the farmers no longer own the tractors but merely lease them.

The final worry about the IoT is that it turns everything around you into a spy. People are belatedly fretting about giving so much information about themselves to their computers and phones. Do those of us finally beginning to worry about baring our lives to our iPhones want to add our washing machines or ovens or cars to the list of listening devices? And could we trust the makers of washing machines or ovens to guard our information with the same expertise that they trust Google or Apple? The more information we put onto the IoT, the more danger there is for it to leak out or find its way into the wrong hands.

Companies have begun to complain about consumers’ resistance to technology when it comes to the IoT. But before investing yet more billions in creating an internet of things, companies should ask themselves whether this “technology resistance” is just backwardness, or is driven by a shrewd calculation of the balance between the use of the product (often minimal) and the threat to privacy. It is sometimes best to trust your customers rather than to persist in the pursuit of business hype. People may be happy to see this or that device attached to the internet if they can see obvious benefits. But an all-encompassing internet of things stretching from your toaster to your car to your reusable cup at work will remain a pipe dream.

BLOOMBERG OPINION

PETRON CORP. has secured approval from the Securities and Exchange Commission (SEC) for a follow-on offering of up to P17 billion in preferred shares.

The offering consists of 13 million Series 4 preferred shares and an oversubscription option of up to four million additional shares, Petron said in a regulatory filing.

The offer price is set at P1,000 per share.

Petron has appointed BDO Capital & Investment Corp. as the sole issue manager. Bank of Commerce, BDO Capital, Chinabank Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp. have been designated as joint lead underwriters and joint bookrunners.

Meanwhile, East West Banking Corp., First Metro Investment Corp., and RCBC Capital Corp. will act as the selling agents for the offer.

The offer period will run from Sept. 5 to Sept. 13, with a listing date on the Philippine Stock Exchange’s Main Board set for Sept. 23.

Petron said that the proceeds from the latest offering will be used to redeem the company’s Series 3A preferred shares, refinance maturing obligations, and fund general corporate purposes, including the purchase of crude oil inventory.

Last week, the oil company secured approval from the Philippine Stock Exchange for the proposed offering.

This offering represents the second tranche of Petron’s shelf registration for up to 50 million preferred shares. In the first tranche, the company offered up to 22.5 million preferred shares. — Sheldeen Joy Talavera

AMAZON Web Services’ (AWS) flagship program Activate aims to boost Filipino startups by helping democratize the cloud and building artificial intelligence (AI) applications.

“We have a substantial number of startups in the Philippines and the rest of Southeast Asia, and the Philippines is one of our fastest growing countries,” Lakshmi Priya, head of startups in the Association of Southeast Asian Nations at AWS, said at a briefing last week.

“We’re thrilled to be supporting startups in the Philippines,” she said, adding they have observed an increase in foundational startups in the country, especially in the e-commerce, logistics, and financial technology sectors.

Since 2013, the AWS Activate program has supported 2,800 startups globally. The program helps startups with credits from $1,000 to $100,000, based on the funding stage, to leverage technology tools.

Ms. Lakshmi said AWS has provided $6 billion in credits and promotional credits to startups.

As of April, AWS made Activate credits redeemable for third-party models on Bedrock, which allows startups to use the credits to build generative AI applications securely.

“AWS Activate has evolved into a one-stop shop for startups, offering comprehensive self-service business and technical content, whether it’s fundraising, legal guidance, technical documentation, and even about latest technologies like generative artificial intelligence,” Ms. Lakshmi said.

AWS in June also announced a $230-million commitment to support startups in building generative AI applications.

Roland de Ros, founder and chief executive officer of social network Kumu, which operates in 50 countries, was previously part of the Activate program. He said Kumu was one of the first startups to raise over $100 million in the country.

“We were saying ‘AWS, we need your help. Here’s the term sheet for a series A [funding round]; this is $4 million. Please help us. Can we get just a little bit more credits just to get to that next phase?,’” Mr. de Ros said.

AWS has helped democratize the cloud — which is viewed by most people to be expensive — and helped Kumu create a strong global community of users, he said.

“Now, we’ve become profitable again. AWS was critical to helping us optimize our costs and increasing the yield of our use of our tech resources so that we could be a sustainable business again,” he added. — A.R.A. Inosante

PRU Life Insurance Corp. of UK Philippines (Pru Life UK) has launched an investment fund powered by ATRAM Trust Corp. that aims to take advantage of the growth of global technology companies.

The PRULink Global Tech Navigator Fund lets investors access the ATRAM Global Technology Feeder Fund, which targets Fidelity International’s Fidelity Funds-Global Technology Fund.

The company wants to have P30 million in assets under management (AUM) for the fund within the first year of its launch, Pru Life UK Chief Product Officer Garen U. Dee said at a media roundtable on Wednesday.

The Fidelity Funds-Global Technology Fund is one of the largest in the world with $23.9 billion in assets as of July. Meanwhile, the ATRAM Feeder Fund has P7 billion AUMs.

The PRULink Global Tech Navigator Fund invests in tech-driven companies such as Alphabet, Inc., Amazon.com, Apple, Inc., Microsoft Corp., Samsung Electronics Co. Ltd., and Taiwan Semiconductor Manufacturing Ltd.

“Aside from the growth in the tech sector, since the fund invests in dollar-denominated stocks, we’re able to invest in it using our peso. There are additional potential returns coming from the foreign exchange market. Of course, take note that while there’s a potential return, there is also a potential loss, depending on the performance of the peso,” Ms. Dee added.

The fund mostly invests in stocks, but up to 10% may also go to non-equity assets such as time deposits or any central bank-issued securities.

It is benchmarked to the Morgan Stanley Capital International, the All Country World Index, and the Information Technology Index.

ATRAM Chief Marketing Officer Andrew P. Caw said that while the ATRAM Feeder Fund cannot guarantee specific returns, it has performed strongly over the past five years, with an annualized return of 23.18% and a cumulative performance of 183.59%. In 2023, the fund had a return of 40.79%.

“We can’t put a return for that but based on the forecast, in the sense of the possibilities of the market, one can really say that definitely, one should have tech in their portfolio,” he said.

The fund is suitable for investors with aggressive appetites, or those who want long-term capital appreciation but can deal with high investment volatility, he added.

Mr. Caw said investors also benefit from the fund being actively managed, which protects them from the sector’s current volatility.

“How we manage the product through Fidelity is more of a contrarian approach to what the market wants. We’re kind of avoiding the hype stocks… because we think there are some stocks that are very expensive and don’t really hold any value,” he said.

“Fluctuations happen. Volatility happens. Whenever there’s volatility, those are the opportunities for us to actually get in,” Mr. Caw added.

Interested clients can access the funds as an option by buying specific Pru Life UK variable life insurance products, namely PRULink Assurance Account Plus, PRULink Elite Protector Series, PRULink Exact Protector, PRULink Investor Account Plus, PRUHealth Prime, PRULife Your Term with Variable Rider, and PRUMillionaire.

ATRAM has P360 billion in AUMs as of June 2024.

Meanwhile, Pru Life UK has over 170 branches and general agency offices in the Philippines, with a life insurance agency force of more than 38,000 licensed agents.

It booked a premium income of P46.19 billion and a net income of P4.36 billion in 2023, data from the Insurance Commission showed. — Aaron Michael C. Sy

I used to oppose the sugar tax, or specifically, the tax imposed on sweetened beverages. In the same manner, I had opposed any effort by the State to control or regulate the amount of sugar, salt, and fat that people consume. My contention was that the government should not “regulate,” but “educate” and help people make informed decision about personal nutrition.

My other argument was that bad nutrition was better than malnutrition. And that any type of tax on food will just make food less affordable and less accessible, particularly to the poor. In short, it is better overall if people get to eat even unhealthy food, rather than not eat at all. Tax on food processing inputs like sugar, on top of value-added tax, will just make more food less affordable.

The change of heart comes from the realization that bad nutrition ends up eroding public health in general, perhaps just as bad as malnutrition. In that sense, it may be easier to deal with malnutrition rather than reversing the impact of bad nutrition. As such, I am now more inclined to support some degree of regulation through taxation.

In March, on World Obesity Day, the Department of Health (DoH) sounded the alarm yet again on the rising incidence of obesity in the country. The World Health Organization (WHO), in a statement, noted that the 2021 Expanded National Nutrition Survey showed that 14% of children five to 10 years old, 13% of those aged 10-19 years old, and 40.2% of Filipino adults were overweight and obese.

“Obesity, defined as abnormal or excessive fat accumulation that presents a risk to health, is one side of the double burden of malnutrition. It is a major risk factor for chronic diseases, including cardiovascular diseases such as heart disease and stroke,” the WHO said.

“It will not be feasible to eradicate malnutrition among children under the age of five or to reduce premature mortality from NCDs [noncommunicable diseases] without addressing obesity.”

Dr. Rui Paulo de Jesus, WHO Representative to the Philippines, added, “We must make the healthy choice the easy choice. There is a lot we can do, including restricting the marketing to children of foods high in fat, sugar, and salt, putting in place front-of-pack labeling, and promoting better access to affordable healthy foods. In our local government units, we need to make space for safe walking, cycling, and recreation. These steps we make will help us all to get healthy and stay healthy.”

In 2018, the Congress legislated a tax reform law that also included a tax on sugar-sweetened beverages or SSBs. The aim was to use the P6 per liter excise tax on sugared drinks to reduce their affordability and accessibility. The tax covered sodas, energy drinks, and sweetened teas, among others. The tax was seen as critical public health intervention targeting dietary risk factors.

Reports indicate that surveys conducted by the DoH and researchers revealed a 10-15% reduction in SSB sales within the first year of tax implementation in 2019. This decline was reportedly more pronounced among lower-income or poorer households, who are usually more affected by price increases. The tax seemed to have deterred the consumption of sweet beverages.

To date, there does not seem to be any available study on the full impact of the tax on obesity rates since 2019. It is presumed, however, that there has been a significant reduction in SSB consumption. But I have yet to encounter research or data indicating observable decreases in obesity, the incidence of type 2 diabetes, and dental cavities, or other improved health outcomes resulting from reduced sugar intake.

We have had five years of the SSB tax since 2019. Perhaps by now DoH will have some data on whether the tax on sweet drinks helped improved public health in general, or have resulted in lowering incidences of obesity particularly among children aged five to 10 years old. I believe that consumption of sweet drinks is also a matter of habit that must be curbed as early as possible.

Obviously, parents who indiscriminately consume sweet beverages will feel no particular urgency to curb the habit among their children. So, in addition to the tax, public education also plays a significant role in ensuring the success of the health intervention. Frankly, I am not aware of any public health communication initiative that pushes this agenda.

While the tax is designed to reduce the consumption of sugary drinks, there must be other interventions that encourage healthier food choices. The tax generates revenues, and part of this can be spent on other public health initiatives like information campaigns. The government cannot just rely on tax alone to reduce consumption and improve public health outcomes.

As of 2024, data available online indicates that over 50 countries have implemented some form of SSB tax. These include Mexico, the United Kingdom, South Africa, and several US cities. These countries all aim, in general, to reduce the consumption of sugary drinks, lower obesity rates, and encourage the reformulation of products to reduce sugar content.

Obviously, the tax has led to significant reductions in the consumption of sugary drinks. But there does not seem to be any clear indication as to its impact on obesity. In Mexico, for instance, there are reports that observed only a modest reduction in obesity prevalence. In short, the SSB tax contributes to reducing sugar intake, but their impact on obesity may be limited unless they are part of a broader set of public health interventions.

In this line, overall diet quality, physical activity levels, and the availability of alternative healthy food options play a significant role in determining the overall impact on obesity rates. The tax’s impact should also indicate lower rates of type 2 diabetes, cardiovascular diseases, and dental issues. Perhaps it is time that DoH go beyond the tax and consider other interventions to reduce obesity.

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

“In many countries in Southeast Asia, we have a big share of motorcycle rides. We have it in Thailand, and we have it in Laos as well. We are looking into launching motorcycle ride-hailing services in the Philippines,” inDrive Marketing Director for Asia-Pacific Natalia Makarenko told BusinessWorld on Tuesday. 

inDrive has operations in 750 cities in 46 countries. In the country, the mobility and urban services platform operates four-wheel services in Metro Manila, Bacolod, Baguio, Iloilo, Butuan, and Cagayan de Oro, with plans to expand its presence to more cities in the future. 

The company is working on introducing additional services in the Philippines, such as intercity transportation, freight delivery, and courier delivery, with a focus on entering the two-wheeler services market, she said.

“I can only hope for this to happen next year, but again, the exact plans will depend on many things primarily on the LTFRB (Land Transportation Franchising and Regulatory Board) and other regulatory compliance,” Ms. Makarenko said. 

Currently, ride hailing companies and accredited motorcycles-for-hire operate under a provisional authority, as Republic Act (RA) No. 4136, or the Land Transportation and Traffic Code, prohibits the use of two-wheeled vehicles for public transport.

In July, the proposed Motorcycles-For-Hire Act, aimed to amend RA 4136, was approved by the House of Representatives on third and final reading. 

“We want to roll out as many services as we can to bring freedom of choice to as many people in the Philippines as possible,” she said, adding that inDrive is hoping to launch its planned services at least by 2025. 

For the year, the company is targeting to double its driver-base from the current 8,000 to at least 16,000 by end-2024.

“In many countries across the globe, we have many services within the mobility industry. We have two-wheelers, we have a cargo delivery, we have an Indrive Courier,” she said.

To recall, the company initially secured the approval of the LTFRB to offer its services in the Philippines in December 2023 but was suspended a month after due to alleged fare haggling violations. — Ashley Erika O. Jose

PHILIPPINE Savings Bank (PSBank) has added new cybersecurity features to its mobile banking application amid a surge in digital payments.

Clients can now control account access to restrict it to their preferred and regularly utilized channels, the lender said in a statement.

Users can also lock and unlock their ATM cards via the app, PSBank added.

The lender said it added the new features amid a rise in digital payments and demand for online banking services.

“However, this rapid shift towards digital banking brings its own set of challenges, particularly in the area of security… PSBank reinforces its commitment to security by empowering users with greater control over their online banking experience” the bank said.

Digital payments made up 52.8% of the volume of retail transactions in 2023, latest Bangko Sentral ng Pilipinas (BSP) data showed, up from the 42.1% share in 2022.

In terms of value, 55.3% of retail transactions last year were done online, also rising from 40.1% the year prior.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The increase in digital payments was driven by wider use of online transaction channels among individuals and businesses, the central bank said, with the coronavirus pandemic accelerating this shift.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan.

PSBank’s net income grew by 14.13% year on year to P1.36 in the second quarter on the back of strong demand for consumer loans.

This brought its first-half earnings to P2.56 billion, up by 18.22% from a year ago.

PSBank shares climbed by P1.15 centavos or 2.10% to close at P55.95 apiece on Wednesday. — AMCS

SAMSUNG last week launched in the Philippines its latest entry-level smartphone offering, the Galaxy A06.

The Samsung Galaxy A06’s price starts at P5,790, the company said in a statement. It comes in two colors: Blue Black and Light Blue.

“Featuring a sleek design, cutting-edge security, and cameras that capture every moment flawlessly, this phone is the perfect way to experience the Galaxy advantage,” it added.

The phone is powered by a MediaTek G85 processor and has a 5,000mAh battery.

It has a 6.7-inch PLS LCD display with a 720×1600 HD+ resolution.

The Galaxy A06 has a dual rear camera setup with digital zoom of up to 10 times, featuring a 50-megapixel (MP) main sensor and a 2-MP depth lens. It also has an 8-MP selfie camera.

The dual-sim phone has four gigabytes (GB) of memory and 128GB in storage, which is expandable to up to one terabyte via MicroSD.

“Unlocking is a breeze with the side fingerprint sensor, giving you quick and secure access. Plus, with Samsung Knox Vault, it’s like having a double layer of security — your PINs, passwords, and private info are safe from hackers and external threats,” Samsung added.

Customers can get P1,000 off the phone’s price when they trade in any J Series device. Samsung Members can also get an additional P500 discount plus a free travel adapter worth P1,190 when purchasing a Galaxy A06 until Dec. 31.

“Additionally, you can get up to 20% off on the Galaxy Buds3 series and 10% off on Galaxy Watch Ultra and Watch7 when you buy them with the Galaxy A06 until Sept. 30,” Samsung added.

The phone is now available at Samsung Experience Stores, online shops, and participating retail partners. — BVR

Fiscal realism is having a broader outlook on the overall economic and social sectors of a country with a realistic view that fiscal resources are limited while public wants are unlimited. Thus, based on Constitutional provisions or dominant values of the people in a particular period, fiscal resources are reallocated accordingly.

I made up these definitions myself as I realized there are no existing definitions when I checked the search engines like Google, Bing and Yahoo.

So sectoral parochialism is present in all sectors and sub-sectors of the economy. Those in the education sector, police, and local governments sector, defense and military sector, social welfare sector, health sector, agriculture sector, and so on will argue that their sectors must get more of the budget every single year.

Department and agency’s annual budget preparation get inputs from local government units through the various regional development councils. Civil society organizations (CSO) and non-government organizations (NGO) input are also considered. For instance, there is a big NGO network called the Alternative Budget Initiative (ABI) with sectoral clusters. The Department of Health (DoH) holds an “Annual Consultative Meeting with CSOs on Budget Proposal” and this is participated by Health cluster NGOs and held usually in early February of each year.

Since it is nearly impossible that people will not insert their biases and sectoral or political interests when given the chance to propose budget spending, then it is safe to assume that there is “LGUs pork” by elected mayors and governors, and “NGOs pork” by self-appointed people’s representative CSOs. These leaders may not accept the term but that is part of the annual process of budget preparations before the proposed budget is submitted to Congress by late July to mid-August.

In a sense, Congress (the House and Senate) come in late with budget insertions or “Congressional pork,” but they do make the ultimate decision over which of the projects and programs funding submitted by agencies will be retained, increased, or cut.

PHILHEALTH IDLE FUNDS
A number of columnists continue to criticize the Department of Finance (DoF) for its decision to tap the P90 billion in so-called idle or excess funds of the Philippine Health Insurance Corp. (PhilHealth) to fund some unprogrammed appropriations like foreign-assisted projects, government infrastructure, and social programs, payment of personnel benefits, etc.

The usual arguments against this move by the DoF and the economic team (including the Department of Budget and Management and the National Economic and Development Authority) are the following:

1. If those projects are indeed vital and crucial for economic growth, Congress should have prioritized them and included them among the programmed appropriations with regular funding and not put them among the unprogrammed appropriations with unprogrammed funding.

2. The integrity of our social health insurance should be protected so its funding should not be diminished and used for other sectors. (This is the standard sectoral parochialism argument.)

3. Instead of including more of Congress’ pork projects in programmed appropriations that bump off funding for some important programs, the DoF should call out the legislators instead for diverting PhilHealth funds for unprogrammed appropriations.

4. PhilHealth’s excess funds will qualify only as “idle” funds once we have already achieved universal healthcare (UHC) in the country, implying 100% health insurance coverage and, by extension, having out-of-pocket expenditures (OOPE) for healthcare reduced to the minimum if not eliminated.

As discussed in this column last week, “PhilHealth’s idle funds and health spending in Asia” (Aug. 27), the four points and related arguments have become predictable, repetitive, and unconvincing. And here are the reasons why.

On point one, even excluding the unprogrammed appropriations, excluding Congressional pork, the programmed budget deficit as submitted to Congress is already big — it was P1.50 trillion in 2023 and P1.36 trillion in 2024 — because of sectoral parochialism plus LGU pork and NGO pork.

On point two, members’ contributions (from P106 billion to P158 billion from 2021 to 2023) will not be used elsewhere, they will go to members’ benefit claims (from P85 billion to P153 billion in 2021 to 2023). It is the money from gamblers and bettors (portions of the remittances from the Philippine Amusement and Gaming Corp. or PAGCOR and the Philippine Charity Sweepstakes Office or PCSO), plus money from drinkers and smokers of legal products (portions of the alcohol and tobacco tax revenues), which average around P80 billion/year over the same period, that are being tapped for the unprogrammed appropriations.

On point three, LGU pork, NGO pork, and Congressional pork have become realities in our annual budget. It is difficult to quantify how much the pork for each of these three groups is because they are embedded in each agency and department. And it is not good to single out one while giving the other pork a pass.

On point four, 100% UHC coverage is a pipedream, an illusion that even very rich countries like Singapore and Japan cannot attain until today. For instance, in 2021, OOPE per capita in Singapore was $893 in current or nominal values and $1,429 in purchasing power parity (PPP) values, which are already 10 times and 6.5 times larger than Philippines. Yet Singapore has a UHC service coverage index (SCI) of only 89, same as South Korea, never 100% (see the table).

Even in theory, UHC will never happen. Even if the UHC budget is P1 trillion or P2 trillion/year out of the P6-trillion total budget, it will not be enough. Why?

Because whenever a service is free, demand will always be larger than supply, 100%. Just a mild fever and some people will demand hospital confinement — anyway, the UHC fund has a trillion pesos. A patient that has recovered after two- or three-days confinement will demand to stay for several days more, anyway it is at zero cost to them. And hospitals, physicians and other professionals will accommodate this kind of patient and raise their fees — the UHC fund is in the trillions of pesos anyway.

What forced UHC and health socialism will achieve is not 100% coverage but 100% fiscal collapse. The government debt stock to fund very costly UHC will keep rising to the stratosphere and debt servicing for principal plus interest will be at the lower layer troposphere.

With the persistent opposition to the reallocation of PhilHealth’s “idle funds” for other sectors even for a single year, the health sector has shown itself as being addicted to the gambling fund, the alcohol and tobacco tax fund, while at the same time lambasting alcohol and tobacco products. This is double talk and lacking intellectual honesty.

I think the public health advocates and lobbyists should thank the DoF because it is helping them to wean themselves away from addiction of gambling tax, alcohol and tobacco tax money.

Finally, we should go back to assuming more personal responsibility in running our own lives. Healthcare, education, food are first and foremost a personal and parental responsibility, secondarily a government responsibility. And fiscal realism should prevail over sectoral parochialism.

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 Holdings, Inc. expects to complete its acquisition of Cemex Holdings Philippines, Inc. (CHP) by the end of November, according to a company official.

DMCI Holdings Executive Vice-President and Chief Financial Officer Herbert M. Consunji told reporters at a media gathering in Makati City late Tuesday that the company is awaiting a fairness opinion on its acquisition of CHP, the country’s fourth-largest cement producer.

“We anticipate no problems. At least we have the Philippine Competition Commission’s (PCC) approval. That is the biggest hurdle,” Mr. Consunji said.

Last month, the PCC approved DMCI Holdings’ acquisition of CHP.

Mr. Consunji also confirmed that CHP will remain listed on the stock exchange even after the acquisition is completed.

“We want them (investors) to stay. It is better to be listed,” Mr. Consunji said.

In April, DMCI, Semirara Mining and Power Corp. (SMPC), and Dacon Corp. announced the acquisition of CHP for $305.6 million under a share purchase agreement to expand the conglomerate’s portfolio.

DMCI bought the entire shares of Cemex Asia B.V. in Cemex Asian South East Corp. (CASEC), the majority owner of CHP with an 89.96% equity interest. DMCI will acquire a 56.75% stake in CASEC, Dacon will secure 32.12%, and SMPC will purchase the remaining 11.13%.

Dacon has been appointed as the bidder for the mandatory tender offer to acquire the remaining 10.14% of the total issued and outstanding capital stock of CHP.

Mr. Consunji also confirmed to reporters that he will lead CHP as the company aims for a turnaround by next year.

“We believe in local talent,” Mr. Consunji said.

In May, DMCI Chairman and President Isidro A. Consunji said the financial performance of CHP is expected to rebound by next year, led by stronger demand and the government’s infrastructure program.

The acquisition of CHP is DMCI’s “largest investment to date and first acquisition in a decade.”

CHP operates two principal subsidiaries, APO Cement Corp. and Solid Cement Corp. Both companies are engaged in the manufacture, marketing, distribution, and sale of cement and other building materials in the Philippines.

On Wednesday, DMCI shares climbed by 0.86% or 10 centavos to P11.70 apiece while CHP stocks fell by 1.64% or three centavos to P1.80 per share. — Revin Mikhael D. Ochave

THE METROBANK Foundation, Inc. (MBFI) and GT Foundation, Inc. on Wednesday awarded over P45 million in development pledges and grants to 30 partners as part of Metropolitan Bank & Trust Co.’s 62^nd anniversary celebration.

“Under the theme “Engaging Partnerships, Empowering Communities,” the George S.K. Ty Grants Turnover Ceremony underscores the collective commitment of development organizations to empower communities in addressing key societal challenges. This year’s ceremony celebrates collaborative efforts in areas such as health promotion, access to quality education, livelihood development, and disaster preparedness,” MBFI said in a statement on Wednesday.

MBFI was founded by Mr. Ty 16 years after he founded Metrobank.

“For 45 years, we have instilled the essence of a heart that serves by highlighting our commitment to the nation’s well-being beyond just economic growth. We recognize that in empowering an entire nation, we must engage in partnerships to nurture communities, support societal progress, and deepen the contribution we can make to the greater good,” MBFI President Aniceto M. Sobrepeña was quoted as saying.

In the area of health, the two foundations partnered with various organizations on programs related to nutrition, water source rehabilitation, vegetable exchange in rural areas, supporting in-patient services and in-house surgical procedures for indigent patients, and providing free eye checkups and prescription glasses to public elementary students, among others.

In the education sector, the two foundations will provide financial assistance and career opportunities for students, enhance technical-vocational education, support educational access for underprivileged students, and boost early childhood education in indigenous communities, among others.

They also aim to provide livelihood training and enterprise development to women and youth in a Mangyan indigenous community through one partnership. For disaster preparedness, MBFI will support a project that provides customized boat trailers and establishes a team to assist fisherfolk in safely transporting boats to secure areas ahead of typhoons.

MBFI’s other partnerships focus on reforestation and livelihood opportunities for indigenous communities and socio-civic initiatives for improved medical care, enhanced mental health services and academic excellence. — AMCS

Brands employ celebrities as part of their sales efforts. This marketing technique has been used with little regard to its effectiveness, and often using the same celebrity to peddle a wide range of product categories.

A medalist may be used by a bank to lift its brand profile (literally, just four years ago). There is no insinuation that an endorser understands the attributes of a stable bank. The celebrity is posed as a depositor and may use a tag line that links his sport to a bank attribute — we will land on our feet after a somersault — with just a half step hesitation.

Celebrities are not required to have any special expertise on the product they are promoting. The only quality a celebrity offers is being well known, for the moment anyway. The brand then, by osmosis, is expected to acquire the same celebrity status. There are of course attributes of the celebrity like youth, vivacity, coolness, and chic that are deemed identifiable too with the brand. Bad attributes that can crop up later on may also cling like a mollusk to the same product.

The popularity of celebrity marketing is evident in how known personalities (not just models) dominate billboards in our major thoroughfares. The chosen celebrity may not even have any achievements other than fame. This is why movie and TV personalities, especially those with daily programs, dominate out-of-home advertising.

Even online marketing has a new set of celebrities, known as influencers, who push brands and political personalities.

Celebrities offer a simple aspirational appeal for the ordinary consumer. It is a straightforward proposition — I too can have white skin and attract the boy next door. It is to be expected that the suggestion can appeal to both genders.

What happens when a celebrity ceases to be well known due to a lack of media exposure from TV program cancellations? Will a gold medalist in a family feud continue to appeal to consumers of family-oriented products endorsed by him?The principle of “brand affinity” asserts that the product being endorsed acquires a certain halo effect from the endorser. By the same token, any scandal or static from the endorser’s life may attach too to the product he is associated with.

Another kind of endorser is the expert. But is the person in a white lab coat a real dentist, or an actor pretending to be one, inspecting your tartar deposit as you come out of the mall?

Specialists can be endorsers too, even if they are not well known. These personalities are employed for products with a targeted appeal like a dental implant, dialysis treatment, or elderly care. Still, real practitioners may be loath to recommend products they do not really know. Such endorsements only make sense when the endorser has a stake in the company promoting skin care and surgical enhancements. (Are you tired of your man boobs?)

What about political celebrities? Before the actual campaign period allows outright politicking, candidates eagerly pose as celebrities for products and advocacies. (Drive safely.) In this case, it is not the product that gains marketing advantage but the endorser herself. There may not even be any product involved — have a nice day.

Endorsements are part of our culture. Fathers endorse daughters and sons to take over the family business. Sitting CEOs select their successor to continue the growth strategy already started. Political dynasties do the merry-go-round of mayor, congressman, governor, and senator.

Celebrity marketing raises the awareness level of products, especially those that are new in the market. They define the appeal the product wishes to be associated with, whether it’s with the young and cool celebrity or the motherly and nurturing personality.

Still celebrity marketing is not cheap. There is a competition for the time and appeal of a current celebrity at the height of his awareness level. It is almost an auction for his presumed marketing pull. Ironically, when the fee becomes affordable, the appeal may already have waned from overexposure — and consumer fatigue.

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com