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.

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.

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

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

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

INDONESIAN authorities in the early hours of Wednesday morning arrested a former town mayor who is wanted in the Senate for her alleged links with illegal Philippine Offshore Gaming Operators (POGO).

The Bureau of Immigration (BI) said dismissed Bamban Mayor Alice L. Guo was arrested by its Indonesian counterparts around 1:30 a.m. in a hotel in Tangerang City, Jakarta. This was also confirmed by the Philippine Department of Justice (DoJ) and the Presidential Anti-Organized Crime Commission (PAOCC).   

The DoJ confirmed plans to send Ms. Guo home within the week. She is currently in the custody of the Indonesian Police at Jatanras Mabes Polri.

Philippine National Police (PNP) Spokesperson Jean S. Fajardo said in a press briefing PNP Chief Rommel Francisco D. Marbil and Interior and Local Government Secretary Benjamin C. Abalos, Jr. may personally travel to Indonesia to fetch Ms. Guo.

Stephen L. David, one of Ms. Guo’s legal counsels, welcomed the development but said they are concerned about her health, safety, and security.

“She may not know or realize it by now, but this recent event can be a good start for all her cases,” he told BusinessWorld in a text message on Wednesday night.

“We would like to remind the public that unless proven otherwise, Alice L. Guo is innocent,” he added.

He urged the public not to make “crude” and “malicious” remarks against the ousted mayor.

“All matters related to our client will be ventilated and answered in the proper forum and before courts of competent jurisdiction,” he said, adding Ms. Guo’s counsels demonstrate the highest respect for the law of the land.

The Philippines and Indonesia have extradition treaties. They are also member-states of Interpol, along with Singapore and Malaysia. 

Ms. Guo is expected to be turned over to the Senate as it investigates offshore gaming operations, which have been linked to transnational crimes.   

Senator Risa Hontiveros-Baraquel, who has initiated a probe into POGOs, said the Senate expects Ms. Guo to face its hearings as soon as possible.

Ms. Hontiveros was the first one to publicize Ms. Guo’s escape, citing immigration documents.

“The arrest of Alice Guo is a crucial breakthrough in our fight against organized crime and corruption,” Senate Francis Joseph Guevara Escudero said in a statement.

“Her capture not only moves us closer to bringing her to justice but also offers a chance to uncover the illegal POGO operations that have plagued our country.”

CASES AWAIT GUO
In a separate press briefing, Justice Secretary Jesus Crispin C. Remulla said the department may issue a resolution on the human trafficking complaint filed by the PNP and PAOCC against the former local chief on Friday.

On top of this, Ms. Guo is facing lawsuits before the Ombudsman, the Office of the Solicitor General, and the Commission on Elections (Comelec).

DoJ Prosecutors are also handling qualified human trafficking, tax evasion, and money laundering complaints against Ms. Guo and her cohorts.

Following her arrest, President Ferdinand R. Marcos, Jr. on Wednesday said the government would expedite the resolution of cases against the dismissed mayor.

Ms. Guo or Chinese national Guo Hua Ping, who went into hiding in Indonesia for weeks amid charges filed against her in the Philippines, will be “entitled to all legal protections due her under the laws of the land and pursuant to our commitment to the rule of law,” the Mr. Marcos said in a video statement.

“But we will not allow this to prolong the resolution of the case whose outcome will be a victory for the Filipino people.”

Ms. Guo is wanted by the Philippine Senate for snubbing its hearings into POGOs, which have been linked to human trafficking, scamming operations, and various transnational crimes.

She has been accused of coddling an illegal POGO in Bamban, Tarlac north of the capital Manila where she ran and won for the first time as mayor in 2022.  Raided by authorities in March, an illegal hub on land she partially owned had been linked to scamming operations.

She fled the country in July, traveling to Malaysia and Singapore, then to Indonesia a month later using her Philippine passport, PAOCC earlier told BusinessWorld.

The Anti-Money Laundering Council (AMLC) and several other agencies in late August jointly filed multiple charges of money laundering against Ms. Guo and 35 others before the Justice department.

She and her cohorts built corporations to “conceal the true nature of their businesses and to make it appear they are engaged in legitimate activities,” according to a case filed by the AMLC, PAOCC, and the National Bureau of Investigation.

‘PAY THE PRICE’
Mr. Marcos, speaking to reporters on the sidelines of a disaster briefing, said those who aided Ms. Guo’s escape “will certainly pay the price.”

“We won’t just fire them, we will file charges against them,” he said in mixed English and Filipino. “What they did violates the law and is against all of the interests of the Philippine judicial system.”

Ms. Guo was also accused of spying for China, amid questions on her nationality and identity which all unfolded in Senate hearings. She has denied the allegations, maintaining that she’s a natural-born Filipino citizen.

The government has frozen her accounts over money laundering, tax fraud, and human trafficking charges.

Her assets covered by a freeze order issued by the AMLC and affirmed by the Court of Appeals included 90 bank accounts that were registered with 14 financial institutions and that were under her name and that of her business partners, luxury vehicles and one helicopter, and a dozen real estate properties.

POGOs, which mainly cater to Chinese markets and had been widely embraced by the previous administration, have been a major headache for the Philippine government, so much so that Mr. Marcos ordered a ban in July.

Mr. Marcos in his third address to Congress said POGOs have been “disguising” as “legitimate entities” but their operations have ventured into illicit areas, linking them to financial scams, money laundering, prostitution, human trafficking, kidnapping, brutal torture and “even murder.”

Severe Tropical Storm Yagi, centered about 265 km west of northwest of Laoag City at 5 a.m., was already outside the Philippine Area of Responsibility (PAR), state weather bureau Pagasa (Philippine Atmospheric, Geophysical and Astronomical Services Administration) said in a morning report.

Still, the enhanced monsoon will bring moderate to intense rainfall in the next three days, especially in the western parts of Luzon, it said.

The bureau said later in the day that Yagi, locally known as Enteng, was moving generally westward.

The death toll from Yagi, which battered five Luzon regions as well as central and eastern Visayas, had risen to 15.

The deadliest province for Yagi was Rizal — east of the capital Manila — where authorities logged eight deaths due to drowning and landslide, Office of Civil Defense Operations Service Director Cesar Idio told President Ferdinand R. Marcos, Jr. in a situation briefing on Wednesday.

In central Philippines, Cebu City and Northern Samar logged two deaths each while Negros Occidental recorded one fatality, he said. Naga City in Bicol region recorded two deaths, he added.

Twenty-one people were reported missing while 15 others were injured, Mr. Idio said.

“These are still subject for validation.”

The OCD said about 1.72 million people or 442,804 families were affected by Yagi, adding that the Bicol region was the most affected area, followed by Central Luzon, Eastern Visayas, and Metro Manila.

The storm caused P350.85 million worth of damage in agriculture, with 13,623 farmers affected. Production losses hit 14.814 metric tons in 8,893 hectares of agricultural land involving rice, corn and high-value crops.

A 6 a.m. report by the Department of Public Works and Highways (DPWH) showed that the storm and an enhanced southwest monsoon left an initial P54.26 million worth of damage to infrastructure.

It said damaged roads, bridges, and flood control structures were reported in the Cordillera, Central Visayas and Eastern Visayas.

Central Visayas incurred the most damage with P25.78 million, followed by Eastern Visayas with P23.64 million, and Cordillera with P4.8 million.

OCD said about P33 million worth of food and non-food items have been distributed to affected people.

P23-BILLION AGRI-DAMAGE
In a separate briefing, the Agriculture department said the damage due to El Niño coupled with recent weather disturbances was estimated at P23.19 billion.

“These are due to the combined effects of El Niño, shearline, southwest monsoon, Typhoon Aghon, Typhoon Carina, and the (Severe Tropical Depression) Enteng,” Agriculture Assistant Secretary Arnel V. de Mesa said in a media briefing. A

According to data from the Agriculture department, the total volume loss for crops was estimated at 964,310 metric tons (MT), to date.

The weather events had affected 558,174 farmers and fisherfolks, with total affected area spanning 408,479 hectares of farmland.

He added that rice crops bore the brunt of the impact from the recent weather disturbances with total volume loss reckoned at 373,000 MT.

“This is already close to the annual average of 500,000 MT to 600,000 MT in losses for rice,” Mr. De Mesa said. Total estimated damage for rice crops was at P8.13 billion.

He added that the incoming La Niña could still pose a threat to local rice production amid the increase likelihood of storms.

According to the state weather bureau, PAGASA the incoming La Niña could form in the next three months with a 66% likelihood between the months of September to October.

PAGASA said that about eight to 14 tropical cyclones are forecast to enter the Philippine Area of Responsibility until January 2025. 

“This all depends on when the peak of La Niña will be felt. But, if you look at the current trend of typhoons, the amount of water they bring is huge,” Mr. De Mesa said. — Kyle Aristophere T. Atienza and Adrian H. Halili

Based on a copy of the joint explanation of the reconciled version of Senate Bill No. 2665 and House Bill No. 9034, the measure would adopt the principles on the passage of foreign vessels found in the Convention on International Civil Aviation and the United Nations Convention on the Law of the Sea (UNCLOS).

The reconciled Philippine Archipelagic Sea Lanes bill also recognizes the immunities of foreign warships and military aircraft for non-commercial purposes found under UNCLOS and international law, according to a copy of the conference committee report sent to reporters via Viber.

Once passed into law, the sea lanes measure would be submitted to the International Maritime Organization (IMO) to notify countries of what it entails, Senate Majority Floor Leader Francis N. Tolentino, who sponsored the Senate version of the bill, told the plenary.

“The IMO enforces strict compliance mechanisms, and if they (foreign vessels and aircraft, including military warships and aircraft) do not comply, we can deny them access under this measure,” Mr. Tolentino explained.

Under the bill, which the Senate approved last month, Philippine archipelagic territories would be established along three axis lines, with the first connecting the Philippine Sea, Balintang Channel and the South China Sea.

The second axis will fall within the Celebes Sea, Sibutu Passage, Sulu Sea, Cuyo East Pass, Mindoro Strait and the South China Sea.

A third axis lies within the Celebes Sea, Basilan Strait, Sulu Sea, Nasubata Channel, Balabac Strait and the South China Sea.

The measure complements the Philippine Maritime Zones Bill that establishes the country’s maritime territories extending to the South China Sea, which had been ratified in August. The two bills are among the priority measures outlined by the Legislative-Executive Development Advisory Council. — John Victor D. Ordoñez

PHILIPPINE STOCKS dropped further on Wednesday as sentiment turned negative after Wall Street posted losses overnight due to weak US economic data.

The bellwether Philippine Stock Exchange index (PSEi) inched down by 0.01% or 0.80 point to close at 6,882.12 on Wednesday, while the broader all shares index slipped by 0.03% or 1.26 points to end at 3,729.52.

“The local market closed in negative territory this Wednesday. The negative spillovers from Wall Street amid renewed concerns over the US economy’s health weighed on the market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The local bourse fell as low as 6,759.93 intraday but had its losses trimmed on the back of bargain hunting.”

“Philippine shares managed to recoup earlier losses after falling approximated 120 points to finish virtually the same as [Tuesday] session. Earlier in the morning, investors were rattled after US stocks tumbled on Tuesday as technology shares struggled, and fresh economic data reignited concerns about the economy’s health,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US stocks slumped on Tuesday, at the start of one of the market’s historically worst months, ahead of data likely to influence how much the US Federal Reserve will lower interest rates, Reuters reported.

The benchmark S&P 500 index, Nasdaq Composite Index, and the Dow Jones Industrial Average recorded their biggest daily percentage declines since early August. The Dow fell 626.15 points or 1.51% to 40,936.93; the S&P 500 dropped 119.47 points or 2.12% to 5,528.93; and the Nasdaq Composite slid 577.33 points or 3.26% to 17,136.30.

Market sentiment weakened as Institute for Supply Management data on Tuesday showed US manufacturing remained subdued despite a modest improvement in August from an eight-month low in July.

Philippine shares mostly moved sideways before the release of August Philippine inflation data on Sept. 5 (Thursday), Mr. Limlingan added.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for August inflation, within the 3.2-4% forecast of the Bangko Sentral ng Pilipinas.

Sectoral indices were mixed. Industrials dropped by 1.02% or 94.74 points to 9,160.12; services retreated by 0.19% or 4.32 points to 2,169.35; and holding firms went down by 0.09% or 5.33 points to 5,739.21.

Meanwhile, financials rose by 0.98% or 20.80 points to 2,126.68; mining and oil went up by 0.28% or 22.89 points to 8,038.90; and property climbed by 0.1% or 2.79 points to 2,787.19.

Value turnover rose to P5.56 billion on Wednesday with 653.58 million shares changing hands from P5.08 billion with 699.6 million issues traded on Tuesday.

Decliners beat advancers, 113 versus 76, while 54 names were unchanged.

Net foreign buying rose to P145.73 million on Wednesday from P20.57 million on Tuesday. — R.M.D. Ochave with Reuters

LISTED mining companies are expected to post improved results during the second half of the year due to an improved outlook for metals prices, analysts said.

“The general outlook for the performance of Philippine mining firms for the second half of the year appears positive,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said via Viber.

He added that prices are being buoyed by increased demand for metals used in technology and infrastructure projects.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that the outlook for Philippine mining firms during the second half “remains cautiously optimistic.”

“Higher metal prices are expected to contribute positively to earnings, driven by global uncertainties and strong demand from the electric vehicle (EV) sector,” Mr. Limlingan said via Viber.

Chamber of Mines of the Philippines (CoMP) Chairman Michael T. Toledo said that copper prices continue to improve due to the global push towards green energy.

“Generally, copper prices will be good over the long haul due mainly to green electrification and the renewable energy transition,” Mr. Toledo added, with the faltering Chinese economy possibly weighing on the market.

Mr. Limlingan said that miners producing materials critical for renewable energy and EVs have an opportunity to benefit from the global shift towards green technology.

The CoMP is expecting the value of nickel to improve as the increased nickel demand from Indonesia could contribute to better prices.

“Any improvement in the nickel pig iron and stainless-steel markets will also support nickel ore prices,” Mr. Toledo added.

He said nickel production by the second half may increase due to the longer operating times for Surigao mines. The Surigao provinces account for more than half of Philippine nickel production.

Nickel miners in Surigao operate for five months during the second half, against three months during the first half.

Mr. Toledo said CoMP’s outlook for gold remains bullish due to the precious metal’s role as a safe haven during times of economic turbulence.

“Some experts expect to see new record highs in the second half despite the global easing of inflation, especially if the Federal Reserve opts for more than one rate cut this year as a result of a sharper-than-expected drop in inflation,” he added.

He said that if the forecasts are borne out, miners could end up offsetting the recent rise in operating costs.

Regina Capital’s Mr. Limlingan added that, costs aside, potential regulatory risks may still pressure margins.

Newly listed OceanaGold Philippines saw its net income decline 30.7% year on year to $14.2 million for the second quarter due to lower ore production.

Philex Mining Corp. recorded an attributable net income of P214.72 million, down from P314.56 million a year ago. Revenues were at P2.24 billion from P2.05 billion a year ago.

Meanwhile, Atlas Consolidated Mining and Development Corp. more than doubled its net income to P1.51 billion during the second quarter.

Nickel ore producer Global Ferronickel Holdings, Inc. reported an attributable net income gain of 0.41% to P196.45 million.

Nickel Asia Corp. posted a 17.7% rise in attributable net income to P914.06 million.

During the second quarter, Apex Mining Co., Inc. posted an attributable net income of P1.03 billion, up 21.5% from a year earlier.

THE SUGAR Regulatory Administration (SRA) said it is planning to allocate the entire incoming sugar crop for domestic use due to an expected drop in production.

In a draft sugar order, the regulator said all sugar in the incoming crop year will be classified “B” or reserved for domestic use.

“It’s based on the effect of El Niño on the crop that was just planted in October last year until May. We feel that there will be a decline, and then it will recover towards the end,” SRA Administrator Pablo Luis S. Azcona told reporters on Wednesday.

Based on the SRA’s initial estimates, raw sugar production could drop to 1.78 million metric tons (MMT) for the 2024-2025 crop year, against the 1.92 MMT actual output for the 2023-2024 crop year.

During the second quarter, cane production dropped 42.3% year on year to 1.63 MMT, according to the Philippine Statistics Authority, making sugar the most affected single crop during the period.

“So far, based on our estimates of the crop and the actual stock on hand and our imports that are arriving, our supply is probably enough until the end of milling… by May or June 2025,” Mr. Azcona added.

Earlier, the regulator approved imports of up to 240,000 MT of refined sugar. About 176,000 MT will fill any supply gaps that may emerge during the milling off season.

“The public is assured that our sugar supply is stable. We can import what we lack; all that is balanced and calibrated,” he said.

He added that imported sugar may start arriving next week.

Asked to comment, Manuel R. Lamata, president of the United Sugar Producers Federation of the Philippines, said the approved volume of sugar imports could be sufficient to cover any shortfalls in production.

“Because of the bad El Niño we had, production will not be good. Nothing to worry about in terms of supply; the SRA has anticipated such a situation by approving imports of 200,000 plus of refined sugar — more than enough to cover the shortfall,” Mr. Lamata said via Viber.

The national inventory of raw sugar was 227,779 MT, while refined sugar stocks totaled 487,268 MT, according to SRA estimates as of Aug. 4. — Adrian H. Halili

THE Department of Energy (DoE) is looking to tap the National Power Corp. (Napocor) to test biofuels in its diesel power generators.

Energy Assistant Secretary Mario C. Marasigan said a biodiesel blend of up to 55% for power generation is being considered to reduce reliance on fuel imports and reduce carbon emissions.

“We are looking at all diesel facilities. We can possibly use Napocor’s facilities for tests, if necessary,” Mr. Marasigan said in a message to reporters late Tuesday.

Napocor is tasked with providing electricity to all areas not connected to the main grid through the Small Power Utilities Group (SPUG). To date, it operates 272 SPUG power plants in 222 areas.

“Using 55% biofuel blend will (involve) converting a diesel engine into a biodiesel engine, similar to a biomass power plant,” Mr. Marasigan said.

He noted that the possible fuel test is still under study, including whether to involve diesel-fired plants owned by the private sector.

“With the current trend of increasing imported fuel prices, higher blend (of biofuel) will reduce the impact of imports,” the Energy official said.

In May, the DoE directed oil companies to increase the coco biodiesel blend starting in October to provide price relief and to support the coconut industry.

In a circular, the DoE said all diesel fuel sold in the country should have biodiesel content of 3% starting Oct. 1, from 2% currently.

The blend rises to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026.

Since February 2009, oil companies have been required to sell diesel consisting of 2% biofuel.

In its circular, the DoE said oil companies can also offer gasoline containing 20% bioethanol on a voluntary basis. At present, the DoE requires a 10% bioethanol blend by volume in all gasoline sold on the market. — Sheldeen Joy Talavera

EIGHT8ATE Holdings, Inc., which controls the Wendy’s and Conti’s restaurant brands, said the bulk of its new locations are scheduled to open in the fourth quarter, traditionally the strongest period for the food and beverage industry.

“For Wendy’s and Conti’s, about 70% of our expansion will open towards the last quarter of the year… between the two brands, we have about 20 plus stores opening in the next three to four months” President and Chief Executive Officer Joey R. Garcia told reporters on the sidelines of the Franchise Asia Philippines 2024 International Conference.

The quarter “is when we can generate more revenue towards the Christmas season,” Mr. Garcia said.

After the fourth-quarter openings, Wendy’s will have a store network of over 80. Conti’s will have eight to 10 additional stores, he said.

According to Mr. Garcia, 80% of the new stores will open outside the National Capital Region.

“Majority of the expansion is actually in the second-tier cities and the provinces,” he added.

Eight8Ate is also readying a coffee concept to carry the Conti’s brand.

“It is actually … the next generation of Conti’s and the first branch will open in Clark,” he said. “This is our first venture now into that next level of Conti’s…  We hope this will happen by December.”

Chris Lim, chairman of the Philippine Franchise Association (PFA), said that expansions outside Metro Manila are also the trend for other franchise brands.

“Even for the PFA, our activities have actually been outside. So, we had the big expo here where we all met each other in April. But since then, we’ve done one in North Luzon in Clark, and then one in Cebu. We’re going to do another one in Bacolod,” Mr. Lim said.

“There is really a shift in looking at expanding outside Metro Manila, and that’s where the growth areas are. So, we have a big push there — outside  Metro Manila,” he added.

He added that many franchise brands have reached pre-pandemic levels in terms of number of stores and revenue.

“There’s no count, in terms of the number of stores, but at the very least, in terms of sales, I’d say a lot would have recovered,” he said.

He said that many franchise brands took the opportunity to axe stores during the pandemic.

“Some would have permanently decided not to reopen the stores … So whether the number of stores has recovered or not, I don’t have an exact figure,” he said.

“I’d be surprised if they haven’t, but I think (a more important) metric is that most of the brands recovered their system-wide sales,” he added.

From being the “hunter” last season, the Green Archers become the “hunted” and they’re ready to take the punches and scratches from everyone in the UAAP kingdom when the 87th Season unfurls this weekend at the Smart-Araneta Coliseum.

Marching into the battlefield as the undisputed heavy favorites, head coach Topex Robinson promised their readiness — and willingness — to earn their way to the top anew with a mantra as if they’re not on the summit already.

“Season 86 is a history and nobody could take it away from us. We’ve won that season but we’re not the champions anymore,” Robinson reminded his wards at the UAAP Season 87 pre-season press conference yesterday at the Novotel Manila in Cubao.

“What we want to focus on is how to be champions again and it’s something that we’ve prepared for and something that all was excited.”

La Salle in Season 86 pulled off a great comeback to frustrate three-time finalist University of the Philippines, 2-1, to regain the UAAP throne after a seven-year drought.

Gilas Pilipinas forward Kevin Quiambao led that run en route to the Season MVP and Finals MVP plum as Mr. Robinson also captured his first collegiate championship after coaching stints with San Sebastian University and Lyceum of the Philippine University in the NCAA.

Albeit La Salle lost some of its core led by Evan Nelle and Mark Nonoy, it still boasts a formidable unit with Mr. Quiambao and Mike Philips as holdovers.

“After winning a championship I thought you’ll be different but it’s not, it’s still gonna be the same mission,” promised Mr. Robinson, who readied his wards in a productive offseason camp like the season is on the line right away.

Runner-up and host UP, National University and Ateneo de Manila University loom as the closest pursuers of La Salle, which won the PBA D-League, Pinoyliga and the World University Basketball Series (WUBS) in Japan laced by a tough challenge to PBA teams in Kadayawan tourney to brace for whoever stand in the way.

“You love being here. It’s what we wanted. We bought into this. We talked about wanting to be champions. Now, we have to be responsible to act, breathe and sleep like champions,” said Mr. Robinson. — John Bryan Ulanday

This after Ms. Fronda has encountered visa problems that would expire in a few days.

If it happens, it would disallow her to suit up for the Filipinas in the Hungarian capital.

Ms. Fronda had originally applied for her Schengen visa at the Switzerland embassy that has an expiration in 45 days.

She had already used 42 days of it and would need an extension. But the Swiss embassy could only issue her an extension only after October since it takes more than a month to process it.

Hungary said it could issue Ms. Fronda a new one provided Switzerland voids her visa, which didn’t happen.

“We’re asking the Hungarian embassy to help us,” said National Chess Federation Chief Executive Officer and national women’s coach Grandmaster Jayson Gonzales, who is returning to the country today after accompanying Ms. Fronda, Janelle Mae Frayna and Ruelle Canino on their European tour.

Without Ms. Fronda, the team would have to play all four remaining team members Mses. Frayna, Canino, Bernadette Galas and Shania Mae Mendoza in all 11 games without rest.

“Jodilyn has been playing really well in Europe,” said Mr. Gonzales, whose trip was backed by the Philippine Sports Commission through chair Richard Bachmann and commissioner Ed Hayco and NCFP chairman/president Butch Pichay. — Joey Villar

Mr. Mangliwan’s event is scheduled at 9:01 p.m. Thursday (3:01 p.m. Friday in Manila) and the finals at 11:32 a.m. (5:32 p.m.) the next day.

He, however, booked a personal best of 18.65 seconds in bagging the silver medal in the same event in last year’s Hangzhou Asian Para Games, a marked improvement over his time of 20.08 seconds in placing eighth in the finals in the Tokyo edition of the elite meet three years ago.

“We realize that Jerrold is the underdog in this event so our first goal is to qualify first to the finals then think of our next game plan later,” Para Athletics Head Coach Joel Deriada said, adding that they were better prepared in case it rains in the heats and finals.

Expecting sunny conditions, the Tabuk, Kalinga pride was stymied by the downpour in the heats and finals of the men’s 400-meter T52 race last week, eventually winding up eighth among the finalists last week.

Nonetheless, the national team skipper, appearing in his third straight Paralympic Games, was determined to go the extra mile in making his country proud in the stint supported by the Philippine Sports Commission.

THE NATIONAL Government’s (NG) outstanding debt hit a fresh high of P15.69 trillion as of end-July amid an increase in domestic and external borrowings, the Bureau of the Treasury (BTr) said.

Data from the BTr on Tuesday showed that the NG’s debt level rose by 1.33% as of end-July from P15.48 trillion as of end-June.

“The NG’s debt portfolio has increased by P206.49 billion or 1.3% from the end-June 2024 level, primarily driven by the net issuance of both domestic and external debt,” the BTr said in a press release.

Year on year, outstanding debt jumped by 10.15% from P14.24 trillion as of end-July 2023.

The debt stock as of end-July already represents 97.71% of the P16.06-trillion total debt projection by yearend, according to the latest Budget of Expenditures and Sources of Financing data.

More than half (68.54%) of the debt came from domestic sources, while the rest (31.46%) came from foreign sources, the BTr said.

Domestic debt as of end-July rose by 1.7% to P10.75 trillion from P10.57 trillion last month. Year on year, it jumped by 9.6% from P9.81 trillion in July 2023.

“The rise in domestic debt was mainly due to the P180.52-billion net issuance of government securities, although partially tempered by the P0.49-billion downward revaluation effect of peso appreciation on US dollar-denominated domestic securities,” the BTr said.

The peso closed at P58.488 at the end of July, strengthening by 17 centavos from P58.659 at end-June.

Government securities accounted for nearly all of domestic debt at P10.752 trillion, according to BTr data.

On the other hand, external debt inched up by 0.54% to P4.94 trillion as of end-July from P4.91 trillion at the end of June. Year on year, foreign debt increased by 11.4% from P4.43 trillion.

“The rise in external debt can be attributed to the net availments of project loans of P5.25 billion and third-currency upward revaluation of P35.44 billion, albeit partially attenuated by the P14.23-billion impact of peso appreciation against the US dollar,” the Treasury bureau said.

External debt is comprised of P2.32 trillion in loans and P2.62 trillion in government securities. The latter consisted of P2.22 trillion in US dollar bonds, P218.49 billion in euro bonds, P67.32 billion in Japanese yen bonds, P58.49 billion in Islamic certificates and P54.77 billion in peso global bonds.

As of end-July, the NG’s guaranteed obligations edged up by 0.3% to P344.79 billion from P343.65 billion as of end-June.

“The rise in NG guarantees was mainly due to the P3.57-billion effect of third-currency adjustments against the US dollar which outweighed the P1.96-billion reduction from domestic and external net repayments as well as the P0.47-billion downward revaluation brought about by peso appreciation,” the BTr said.

Year on year, guaranteed obligations declined by 5.1% from P363.39 billion.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said NG debt levels will continue to increase but at a slower pace.

“Now that we are not in an emergency situation… we expect the debt levels to still rise but at a slower pace… especially that we are on the cusp of the start of monetary easing cycle of the US Federal Reserve, while the Bangko Sentral ng Pilipinas (BSP) has already began its cuts,” he said in a Viber message.

Last month, the Monetary Board reduced interest rates by 25 basis points (bps), bringing the benchmark rate to 6.25%. The central bank is also likely to cut rates by another 25 bps in the fourth quarter, BSP Governor Eli M. Remolona, Jr. has said.

The US Federal Reserve is also widely expected to begin cutting rates this month.

Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said the government must minimize “unnecessary expenses” to manage debt.

In a Viber message, he said the government should also fast-track infrastructure spending to attract investments.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government’s intensified tax collections and other fiscal reform measures would also help narrow the NG’s budget deficit and slow the rise in debt.

“New and higher taxes could be a final option if inflation eases further in an effort to bring down the NG debt-to-GDP ratio to below the international threshold of 60%, alongside faster GDP growth,” he said via Viber.

The NG’s debt-to-GDP ratio, or the ratio between how much a country owes and how much its economy produces to pay off debt, stood at 60.9% as of end-June.

This is still above the 60% threshold deemed manageable by multilateral lenders for developing economies. The government expects the debt-to-GDP ratio to end the year at 60.6%.

The government’s borrowing program for this year is set at P2.57 trillion, with P1.92 trillion from domestic sources and P646.08 billion from foreign sources.