Eduardo Ano’s remarks came after a Chinese foreign ministry spokesperson on Thursday described the Philippines’ recently concluded joint patrols with the United States in the South China Sea as “provocative” and “irresponsible”.

“Our joint patrols with the United States and potential future activities with other allies countries shows our mutual commitment to a rules-based international order and for promoting peace and stability of the region,” Mr. Ano said.

China’s embassy in Manila did not immediately respond to queries on Mr. Ano’s remarks. — Reuters

GROWTH in wholesale prices of general goods eased in November, its weakest pace in five months, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary data from the PSA showed the general wholesale price index (GWPI) slowed by 4.2% year on year, significantly lower than the 7.2% in November 2022 and 4.4% in October.

The November reading was the slowest since the 4% recorded in June 2023.

Year to date, GWPI averaged 4.9%, lower than the 7.4% a year ago.

Robert Dan J. Roces, chief economist at Security Bank Corp. said that the November might be a result of the economy adjusting post-pandemic and spending patterns returning to normal, which could lead to reduced demand pressures.

“Improved supply chain conditions, which may have reduced logistical costs and supply shortages that previously drove prices higher, as well as stabilization or decline in global commodity prices, particularly if the goods are imported or influenced by global markets,” he said in a Viber message.

Additionally, he said a possible cause for the slowdown in bulk prices is the government or central bank policies that may have reduced inflationary pressures, such as adjusting import tariffs or providing subsidies.

The indicator could also be indicating base effects from a year earlier, Mr. Roces added.

In its December policy meeting, the Bangko Sentral ng Pilipinas (BSP) decided to maintain its benchmark interest rate at a 16-year high of 6.5%.
The decision came after the BSP had raised rates by a cumulative of 450 basis points between May 2022 and October 2023 in its efforts to control inflation.

The PSA said that the downtrend seen in November is due to the downtrend in the index of mineral fuels, lubricants, and related materials which contracted by 6.7% from a 3.7% decline in October.

This was followed by miscellaneous manufactured articles (3.3% from 3.6%) and chemicals including animal and vegetable oils and fats (1.5% from 1.8%).

Other commodities that logged slower growth were the heavily weighted food index (6.8% from 7%) and machinery and transport equipment (1.3% from 1.5%).

Meanwhile, manufactured goods classified chiefly by materials remained at 4.6%.

On the other hand, beverages and tobacco stood at 6.2% from 6% in October while a slower annual decline was logged in the index of crude materials, inedible except fuels at 1.9% in November from its 3.5% decline a month earlier, the PSA said.

Bulk prices growth in Luzon and the Visayas slowed while it further rose in Mindanao.

Wholesale price growth in Luzon eased by 4.1% during the period from 7.4% in November 2022 and 4.4% in October last year.

In the Visayas, GWPI likewise slowed by 5.2% in November, significantly lower from 6.5% in the same month in 2022 and 5.3% in October 2023.

On the other hand, price growth in Mindanao grew by 3.6% against the 4.8% in November 2022. It also picked up from the 3.3% in October 2023.

“If the trends observed in November continue and barring any unforeseen supply shocks or significant policy changes, the general trajectory of wholesale prices might remain stable or continue to ease slightly,” Mr. Roces said.

Inflation slowed to 3.9% in December, settling within the central bank’s 2-4% target range for the first time in nearly two years, amid easing prices of food and utilities.

Preliminary data from the Philippine Statistics Authority (PSA) showed the overall year on year increase in prices of widely used goods and services eased to 3.9% in December, from 4.1% in November and 8.1% a year ago.

December’s inflation print was the slowest reading in 22 months or since the 3% reading in February 2022.

The latest consumer price index (CPI) is a tad lower than the 4% median estimate in a BusinessWorld poll last week. It also settled within the 3.6% to 4.4% forecast for the month given by the Bangko Sentral ng Pilipinas (BSP).

However, inflation averaged 6% for 2023, slightly higher than the 5.8% in 2022. This marked the second straight year that inflation breached the BSP’s 2-4% target band.

The 6% print was the highest in 14 years or since the 8.2% full-year average in 2008, at the height of the global financial crisis.

“The latest inflation outturn is consistent with the BSP’s projections that inflation will likely moderate in the near term due to easing supply-side price pressures and negative base effects,” the BSP said in a statement.

Core inflation, which discounted volatile prices of food and fuel, stood at 4.4% percent in December — slower than the previous month’s 4.7% and the 6.9% a year earlier.

For the entire year, core inflation averaged 6.6%, much faster than the 3.9% print in 2022.

At a press briefing, National Statistician Claire Dennis S. Mapa said December inflation print was due mainly the 1.5% growth in prices of housing, water, electricity, gas and other fuels, which was slower than the 2.5% in November.

This was followed by the 5.4% rise in the food and non-alcoholic beverages index, easing from 5.7% in November.

Food inflation alone went down to 5.5% in December, from 5.8% in November and 10.6% a year ago.

However, rice inflation quickened to 19.6% in December from 15.8% in November. It was also the most significant contributor to December inflation, adding 1.7 percentage points (ppt) to the headline print.

At 19.6%, rice inflation was the highest since the 22.9% recorded in March 2009.

Mr. Mapa said the average price of regular milled rice last month went up to P48.50 per kilo from P46.73 per kilo in November. The average price of well-milled rice also rose to P53.82 per kilo in December from an average of P51.99 per kilo a month earlier.

Year on year, prices of regular milled rice and well-milled rice grew by 22.3% and 22.4%, respectively.

In a statement, the National Economic and Development Authority (NEDA) said the extension of the Executive Order (EO) No. 50, which extended the Most Favored Nation (MFN) reduced tariff rates for key agricultural commodities like pork, corn, and rice, is crucial to ensure a stable food supply in the Philippines.

“Amid an uptrend in international rice prices and the expected negative impact of the El Niño phenomenon, the Interagency Committee on Inflation and Market Outlook will closely monitor the situation and propose further temporary tariff adjustments, if necessary,” NEDA Secretary Arsenio M. Balisacan said.

“We will also push for trade facilitation measures to reduce other non-tariff barriers. While our medium-term objective to boost agricultural productivity remains, it is important to augment domestic supply to ease inflationary pressures on consumers, particularly those in low-income households,” he added.

Meanwhile, transport inflation inched up 0.4% in December, reversal from the 0.8% contraction in November.

PSA’s Mr. Mapa said passenger transport by road such as jeepney and tricycle fares increased 2.9% in December from 2.4% a month prior.

Prices of diesel decreased by 13% year on year, but lower than the 18.4% decline in November. Gasoline also recorded a -3.9% inflation rate from the -4.8% seen in the previous month.

In December alone, pump price adjustments stood at a net increase of P0.3 per liter for gasoline. Diesel and kerosene prices had a net decrease of P0.35 and P0.51 respectively.

Meanwhile, inflation for the bottom 30% income households edged higher to 5% in December from 4.9% in a month prior. Year to date, the inflation rate for this income group stood at 6.7%.

Inflation in the National Capital Region (NCR) decelerated to 3.5% in December from the 4.2% print in November and 7.6% a year ago.

Outside of NCR, consumer prices slowed to 4% from 4.1% in November and 8.2% in December 2022.

STILL HAWKISH OUTLOOK

The BSP said risks to the inflation outlook remains significantly on the upside, citing possible inflationary pressures from higher transport charges, increased electricity rates, rising oil prices, and elevated food prices due to strong El Niño conditions.

“Looking ahead, the Monetary Board deems it necessary to keep monetary policy settings sufficiently tight until a sustained downtrend in inflation becomes evident,” the BSP said.

“The BSP will continue to monitor inflation expectations and second-round effects and take appropriate action as needed to bring inflation back to the target, in keeping with the BSP’s price stability mandate,” it added.

HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris Dacanay in a note said export prices of rice increased to $659 per metric ton amid lingering El Niño risks to supply.

“Not only is this the highest since 2008, but we have yet to see global rice prices peak. And with rice being a heavy component of the Philippines’ CPI basket, elevated export prices will likely put a floor under how much inflation can moderate,” he said.

Inflation may also quicken to above the 2-4% target in the second quarter due to unfavorable base effects.

“But once these base effects wear off, we expect headline CPI to immediately ease on a year-on-year basis and average within 3-3.5% in the second half,” he said.

“Keeping inflation more manageable is the extension of EO 50, which rolls over the low tariff rates for key food items such as rice and pork. The BSP’s tight monetary stance will also continue to stem any price pressures coming from core items such as rent and housing,” he said.

HSBC lowered its full-year headline inflation forecast to 3.5% in 2024 from 4.1% previously.

“The BSP now has more leg room to adjust monetary policy with the inflation outlook more benign. The larger concern now is the differential between BSP and Fed rates,” Mr. Dacanay said.

Mr. Dacanay said he expects the BSP to cut policy rates alongside the US Fed starting second quarter this year.

“We then expect the BSP to clock a similar pace as the Fed by cutting its policy rate by 25bp in each quarter until the benchmark rate reaches 5% in the third quarter of 2025,” he added.

The BSP has kept its benchmark interest rate unchanged at a 16-year high of 6.5% during its December policy meeting. This was after it hiked 450 basis points (bps) from May 2022 to October 2023 to tame inflation.

On the other hand, the US Federal Reserve kept borrowing costs unchanged at 5.25-5.5% in December, following the 525-bp rate hikes it did from March 2022 to July 2023.

Citi Economist for the Philippines Nalin Chutchotitham said even though upside risks remain, inflation expectations are now better anchored.

“We expect the BSP to maintain its policy rate through the first half of 2024, to help anchor inflation at around the mid-point of the policy target. We expect gradual rate cuts from third quarter onwards as inflation shows a steady declining trend,” she said.

Ms. Chutchotitham also noted that the BSP will likely maintain at least a 50-bp interest rate gap with the Fed to help ensure the peso’s stability against the dollar.

“We forecast the key rate at 5.5% at end-2024, and at 4.5% at end-2025,” she said.

The Monetary Board is scheduled to have its first policy review this year on Feb. 15.

The deal has an annual average value of $115 million, which more than triples the amount ESPN paid on average each year to the association under the previous 14-year agreement, the NCAA said.

The agreement deepens ESPN’s commitment to college sports, which have been part of the network’s DNA since its launch in 1979. The new NCAA deal includes domestic rights to 21 women’s and 19 men’s championship events, including the high-profile women’s basketball championship game, which last year drew 9.9 million viewers. It adds coverage of Division I men’s and women’s tennis team championships and the collegiate men’s gymnastic championship.

In total, the deal encompasses 24,000 college games spanning more than 20 conferences – enough to provide content across a portfolio of media properties, including the ABC network, ESPN and the ESPN+ streaming service.

Live sports have proven a resilient audience draw, even at a time when television audiences are shrinking. In October, ESPN clinched the U.S. broadcast rights for TGL – a new prime-time golf league created by Tiger Woods and Rory McIlroy.

The new NCAA agreement expands ESPN’s digital rights, setting the stage for the network’s eventual transition to streaming. Disney has said it is seeking minority partners, as the marquee sports network makes its digital leap.

“The NCAA has worked in earnest over the past year to ensure that this new broadcast agreement provides the best possible outcome for all NCAA championships, and in particular women’s championships,” said NCAA President Charlie Baker.

With the increase in value of the agreement, the association will explore revenue distribution units for the women’s basketball tournament, the NCAA said.

The tie-up between the association and ESPN began in 1979, the year of ESPN’s original network launch. – Reuters

The changes will result in 2.5 billion euros ($2.7 billion) less in savings than initially anticipated, but will not affect plans to adopt the budget at the start of February, a government spokesperson said.

The revisions follow weeks of haggling over how to fill a 17 billion euro gap in the budget after a November court ruling threw the government’s financing framework into turmoil.

The gradual phase-out of agricultural diesel subsidies, the postponement of a plastic levy and additional funds for the national railway were among the changes the government announced on Thursday following an agreement between Scholz, Economy Minister Robert Habeck and Finance Minister Christian Lindner.

“We have been talking to each other intensively again in the last few days because we can see the burden on farmers,” Mr. Habeck said.

“Counter-financing has been found” for the amended plan, he added.

Rather than abruptly ending the farmers’ tax break on agricultural diesel, the subsidy will be reduced by 40% this year, by 30% in 2025, and will end from 2026.

The abolition of preferential treatment in vehicle tax for forestry and agriculture is also no longer planned, the government spokesperson said.

“Together we have found a solution that avoids a disproportionate burden being put on the agricultural and forestry industry,” Agriculture Minister Cem Oezdemir said.

Hundreds of farmers protested in central Berlin last month at the prospect of losing the tax break and the president of the German Farmers’ Association (DBV) said the changes were not enough.

“This can only be a first step. Our position remains unchanged: both proposals for cuts must be taken off the table,” said Joachim Rukwied. “This is clearly also about the future viability of our industry and the question of whether domestic food production is still desirable at all.”

Nearly a third of the remaining spending gap from Thursday’s proposed changes is to be compensated for by making proceeds from 2023 off-shore wind projects available for the 2024 budget.

Additional cuts at the agriculture ministry and the “leeway resulting from updated economic and budgetary data in the federal budget” will cover the rest, the statement said. – Reuters

With the report from the Labor Department on Thursday also showing the number of people on unemployment rolls remained elevated towards the end of December, financial markets continued to anticipate that the Federal Reserve would start cutting interest rates in March.

The government reported on Wednesday that job openings fell to a near three-year low in November. Labor market resilience is expected to again shield the economy from recession this year.

“The labor market is not too hot and not too cold at the moment,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The total number of Americans on the jobless rolls receiving benefits remains elevated relative to prior year levels, but at the moment there is not enough unemployment to say the economy is on the downward slope to recession.”

Initial claims for state unemployment benefits dropped 18,000 to a seasonally adjusted 202,000 for the week ended Dec. 30, the lowest level since mid-October. Economists polled by Reuters had forecast 216,000 claims for the latest week.

Claims data tend to be volatile around this time of year because of holidays. They have largely bounced around in the lower end of their 194,000-265,000 range for 2023.

Unadjusted claims fell 6,820 to 268,020 last week. Claims plunged by an estimated 7,572 in California and tumbled 6,080 in Texas. That helped to more than offset notable increases in Pennsylvania, New Jersey, Michigan, Massachusetts and Connecticut.

The labor market is steadily cooling following 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022. The unemployment rate, however, has remained below 4% as companies hoard workers following difficulties finding labor in the aftermath of the COVID-19 pandemic.

“The labor market is nowhere near a tipping point lower. That’s excellent news for consumption and the economy at large,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia. “Recession calls get trampled by a strong, employed consumer and that’s currently where things stand.”

Stocks on Wall Street were trading higher. The dollar fell against a basket of currencies. US Treasury yields rose.

LAYOFFS LOW IN DECEMBER

Low layoffs were underscored by a separate report from global outplacement firm Challenger, Gray & Christmas on Thursday that showed job cuts announced by U.S.-based employers dropped 24% to 34,817 in December.

Planned layoffs, however, jumped 98% to 721,677 in 2023, the highest annual count since 2020. That largely reflected cuts earlier in the year, with most of them in the technology, retail, healthcare and media sectors. Excluding the pandemic, it was the highest tally since 2009.

Financial markets are betting the Fed will begin cutting interest rates as early as March. Minutes of the U.S. central bank’s Dec. 12–13 policy meeting published on Wednesday showed officials viewed the labor market as remaining tight, but also continuing to “come into better balance.”

They also showed that “several participants noted the risk that, if labor demand were to weaken substantially further, the labor market could transition quickly from a gradual easing to a more abrupt downshift in conditions.”

The US central bank held its policy rate steady in the current 5.25%-5.50% range at last month’s meeting and policymakers signaled in new economic projections that the historic monetary policy tightening engineered over the last two years is at an end and lower borrowing costs are coming in 2024.

The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 31,000 to 1.855 million during the week ending Dec. 23, the claims report showed. The so-called continuing claims have mostly increased since mid-September, a trend blamed largely on difficulties adjusting the data for seasonal fluctuations after an unprecedented surge in filings early in the pandemic.

Economists expect the distortion will be smoothed out when the government revises the data this year.

The claims data have no bearing on the Labor Department’s employment report for December, which is scheduled to be released on Friday, as they fall outside the survey period. Nonfarm payrolls likely increased by 170,000 jobs in December, according to a Reuters survey of economists, after rising by 199,000 jobs in November.

The unemployment rate is forecast to rise to 3.8% from 3.7% in November.

Another report on Thursday showed private payrolls increased by 164,000 jobs in December, the biggest gain in four months, after a rise of 101,000 in November.

The ADP National Employment Report, however, has been unreliable in predicting the private payrolls count in the Labor Department’s monthly employment report. It showed wage growth continuing to slow, with salaries for workers staying at their current jobs rising 5.4% year-on-year in December after increasing 5.6% in November.

“The labor market is becoming less tight but not collapsing,” said Nancy Vanden Houten, lead US economist at Oxford Economics in New York. – Reuters

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to limit its foreign exchange intervention on markets by finalizing a new framework this year, its chief said on Thursday.

In his first public event this year at the Rotary Club’s weekly meeting, BSP Governor Eli M. Remolona, Jr. said the central bank aims to make the peso more competitive and reduce restrictions in the foreign exchange market.

“We’re developing a framework for intervention… We think intervention should only happen during times of stress. It’s meant to contain stress,” he said.

Mr. Remolona told reporters that BSP Senior Assistant Governor Edna C. Villa will head the central bank’s Financial Markets department, replacing retired Ma. Ramona Gertrudes D.T. Santiago. 

The foreign exchange framework will also be implemented this year, he said.

The BSP chief has instructed Ms. Villa to identify the Philippines’ peers in the region when it comes to movements against the dollar.

“We want to do things in the right way. We want to do things based on fundamentals and also based on what we know is going on in the markets,” he said.

Meanwhile, Mr. Remolona noted that October 2022 was a stressful episode for the central bank and the foreign exchange market. 

“Those are the events in which we want to intervene,” he said. “I think we’ve been intervening a bit too much. If it’s about containing stress, that also means intervention should be infrequent.”

In October 2022, the peso reached its record low of P59 against the dollar. This also caused the peso to add to inflationary pressures during that time, which prompted the BSP to intervene in the foreign exchange market and raise interest rates. 

The peso has since rebounded to the P55 level, closing at P55.50 against the dollar on Thursday.

To tame inflation, the Monetary Board hiked borrowing costs by 450 basis points (bps) from May 2022 to October 2023. This has brought the key interest rate to 6.5%, its highest in 16 years.

Mr. Remolona said the current 6.5% policy rate is still appropriate to ensure growth and tame inflation at the same time. 

“People say we’ve been tightening too much… that’s a very difficult challenge because we want to make sure that we don’t tighten unnecessarily,” he said.

However, the BSP chief said there are still upside risks to inflation, but he is hoping that inflation will settle within the 2-4% target range for most of 2024.

BSP sees inflation settling at an average of 6% in 2023, before easing to 3.7% in 2024 and 3.2% in 2025.

A BusinessWorld poll last week yielded a median estimate of 4% for December headline inflation, within the BSP’s 3.6-4.4% forecast for the month. This is slightly slower than 4.1% in November but significantly below 8.1% in December 2022.

If realized, December could mark the first time that inflation met the central bank’s 2-4% target after 20 straight months. It would also be the slowest since the 3% print in February 2022.

This would bring the 2023 inflation average to 6%, matching the BSP’s baseline forecast.

The Philippine Statistics Authority will release December consumer price index data on Friday.

SALARY INCREASES are expected to be higher in the Philippines this year, amid growing demand for professionals and elevated inflation, according to global professional services firm Mercer.

In its Total Remuneration Survey conducted last year, Mercer said Philippine-based organizations projected a median salary hike of 6.2% in 2024, slightly higher than the actual 6% salary increase last year. 

It is also above the projected average median salary increase of 5.2% in Asia for 2024.

“The projected hike in median salary increment can be attributed to factors such as the rising demand for skilled professionals, the need to attract and retain top talent in a fiercely competitive job market, and persistent inflationary pressures,” Mercer said in a statement.

The expected median salary increase in the Philippines is the fourth highest in the region, just behind India (9.3%), Vietnam (7%), and Indonesia (6.5%).

The country surpassed the projected median salary increments in Mainland China (5.2%), Malaysia (5.1%), Thailand (4.7%), South Korea (4.4%), and Singapore (4.2%).

Meanwhile, Hong Kong SAR (2.6%), Taiwan (3.8%) and Japan (3.9%) reported the lowest projected median salary increments in the region.

Floriza I. Molon, business leader at Mercer Philippines, said that most industries are seen to ramp up hiring as businesses expand this year.

“The Philippines is poised for economic growth despite some global headwinds. Some industries will continue to hire as businesses, particularly in shared services and outsourcing industry, retail and consumer sectors expand,” Ms. Molon said.

Mercer said salary increases will likely be consistent in most industries this year, as firms seek to retain talent.

The energy sector is seen to raise salaries by 7% this year, the highest among industries in the Philippines, data from Mercer showed. This is the same as the 7% hike implemented in 2023.

The high-technology industry is expected to hike salaries by 6.8%, a tad higher than the actual 6.5% increase last year.

Firms in retail and wholesale will increase wages by 6.7%, slightly higher than last year’s 6.5%.

Consumer goods firms will hike wages by 6.5%, faster than the 6% implemented last year.

“Besides compensation, companies would need to reassess their total rewards programs focusing on the employee benefits and work experience,” Ms. Molon said.

Citing Mercer Global Talent Trends 2023 report, Ms. Molon said that employees prefer to stay with organizations that offer job security, work flexibility and high pay.

“Employees are also expecting benefits and career opportunities within their organizations. The ability to provide these creates a more holistic and strategic management on talent in the workplace,” she added.

China Banking Corp. Chief Economist Domini S. Velasquez said businesses will likely provide higher salary increases as inflation remains elevated.

The Bangko Sentral ng Pilipinas (BSP) expected inflation to have averaged 6% in 2023. It sees inflation averaging 3.7% in 2024.

“The rise in inflation could prompt businesses to provide higher compensation to offset the increased cost of living for Filipinos,” Ms. Velasquez said in a Viber message.

“Moreover, the approved minimum wage hikes in 2023 would further contribute to the upward trend in average wages for individuals earning above the minimum wage,” she added.

Ms. Velasquez said the wage increases should not “exacerbate” inflation and be balanced out by improving worker productivity.

“One key factor in achieving this balance is the improvement of worker productivity. As businesses recover from the impact of the pandemic and economic activities gradually increase, it is anticipated that Filipino workers will demonstrate higher productivity levels,” she said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that implementing salary increases will not only allow businesses to be competitive but also allow the Philippines to catch up with its regional peers in terms of per capita income.

“Given the fact that the Philippines is still among the fastest-growing economies in Asia, it still has relatively lower per capita incomes and is yet to catch up with other neighboring countries,” he said.

“Essentially the demand-supply balance of talent is a major determinant for wage growth in view of local or overseas employment choices for local talents,” he added. — Justine Irish D. Tabile

THE MAHARLIKA Investment Corp. (MIC), which is tasked to oversee the Philippines’ first sovereign wealth fund, is looking at potential investments in key sectors such as infrastructure, energy and transportation.

The MIC held its first board meeting on Wednesday, as it seeks to fully operationalize the Maharlika Investment Fund (MIF), according to a statement from the Department of Finance (DoF).

MIC President and Chief Executive Officer (CEO) Rafael Jose D. Consing, Jr. said that the wealth fund could potentially invest in the power, agroforestry industrial urbanization, mineral processing, tourism, transportation, and aviation sectors.

The MIC, which was established under Republic Act (RA) No. 11954, is responsible for mobilizing and utilizing the country’s first sovereign wealth fund for investments in transactions that would generate optimal returns.

“I look forward to your cooperation and support as we work together in mobilizing greater investments in the country’s growth-enhancing sectors, while upholding the highest standards of accountability, fiscal responsibility, and good governance,” Finance Secretary Benjamin E. Diokno told the MIC board during the meeting. He sits as the board’s chairperson in an ex-officio capacity.

“The enactment of the Maharlika Investment Fund complements recent policy initiatives, such as the new public-private partnership policy framework, the approval of 197 high-impact infrastructure flagship projects, and liberalization policies that have further opened the Philippines to foreign investments in key sectors,” Mr. Diokno added.

During the meeting, the board approved the presented MIC’s capitalization scheme amounting to P125 billion.

Under the law, state banks Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP) are required to contribute P50 billion and P25 billion, respectively, to the initial capital of the fund.

The National Government is also being counted on to contribute P50 billion. The MIC has an authorized capital stock of P500 billion.

President Ferdinand R. Marcos, Jr. signed the Maharlika fund bill into law in July despite concerns raised by economists, including questions on the possible negative impact on the operations of state banks.

Mr. Marcos had said last year that the fund would be fully operational by the end of 2023.

“Usually, a day or two does not really matter. However, given the enormous opportunity cost of this fund, every second counts,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat.

“So, the three to four days of delay is already weighing heavily on people,” he added.

During the meeting, Mr. Consing was quoted by a Palace statement as saying the investment body will operate with “utmost” openness and “rigorous” accountability.

Mr. Lanzona said these statements are “not enough to convince people about the need” of the wealth fund.

“For one thing, there has been no accounting done as to the negative effects of this fund on the operations of the LANDBANK and DBP,” he added, noting that the fund has significant effects on farmers and small-scale entrepreneurs who rely on the two state banks.

Last year the two banks sought regulatory relief from the Bangko Sentral ng Pilipinas for their contributions to the Maharlika fund.

Also during the meeting, Mr. Consing updated the board on the MIC’s startup activities such as staffing and recruitment and the hiring of its management team.

Aside from Mr. Diokno and Mr. Consing, the MIC board members include LANDBANK President and CEO Ma. Lynette V. Ortiz, DBP President and CEO Michael O. de Jesus, and MIC directors Vicky Castillo L. Tan, Andrew Jerome T. Gan, German Q. Lichauco II, and Roman Felipe S. Reyes.

The board also appointed the Bureau of the Treasury as the interim fund manager of the MIC. 

“I am confident that we have a formidable team to steer the fund effectively towards transformative investments for the Philippine economy,” Mr. Diokno said.

The MIC’s next board meeting is scheduled in the fourth week of January. — Keisha B. Ta-asan and Kyle Aristophere T. Atienza

PROJECTS BENEFITING from incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law have reached P1.02 trillion in investment capital as of October, the Department of Finance (DoF) said. 

In a social media post, the DoF said this reflects the efforts of the Marcos administration to promote the Philippines as a good investment destination. 

“This landmark milestone also gained P572.98 billion worth of foreign direct investment (FDI) pledges, with 910 CREATE-approved projects varying across priority sectors listed in the Strategic Investment Priority Plan,” it said.

Of the 910 CREATE-approved projects, around 49 big-ticket tax incentive applications with a total investment capital of P817 billion were approved by the Fiscal Incentives Review Board.

The remaining 861 projects — with a combined investment capital of P203 billion — were from investment promotion agencies (IPAs).

“These projects are expected to accumulate a committed employment count of around 99,400 jobs within its incentivized period, with the labor-intensive manufacturing sector having the highest number of approved projects among the priority sectors,” the DoF said.

“This underscores the employability of the country’s workforce in high-quality jobs that will contribute to long-term economic growth,” it added.

CREATE was signed into law in 2021 to aid enterprises that have yet to recover from the coronavirus pandemic. It reduced corporate income tax rates, provided tax relief measures, and rationalized fiscal incentives.

“As CREATE establishes a performance-based, time-bound, targeted, and transparent tax incentives regime in the country, incentivized projects or activities under the key structural tax reform are to achieve performance metrics to ensure that the grant of fiscal support to registered business enterprises leads to higher economic returns,” the DoF said. 

In August, Albay Rep. Jose Ma. Clemente S. Salceda filed the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to reconcile disparities between the CREATE Act and its implementing rules, primarily on value-added tax (VAT)-related transactions. 

Under CREATE MORE, local and export companies, even those inside ecozones and freeports, would continue to enjoy duty exemptions, VAT exemption on importation, and the VAT zero-rating of local purchases as provided in their respective IPA registrations.

Registered export enterprises would also enjoy non-income tax incentives, VAT exemption on importation and VAT zero-rating on local purchases, as long as the registered firm maintains 70% of the total annual production as export sale and continues to be registered in good standing with the IPA.

The measure also proposes to lower corporate income tax to 20% for those under the enhanced deduction regime from 20-25%.

The bill is currently being taken up in the House of Representatives. — Keisha B. Ta-asan

MANILA Electric Co. (Meralco) has started seeking bidders for 660 megawatts (MW) of capacity as it expects power demand to increase in the summer months.

In a statement on Thursday, the power distributor said the capacities up for bidding will cover its 260-MW peaking requirement and 400-MW baseload requirement this year.

Meralco’s share price rose by 0.76% or P3 to close at P397 each.

The Department of Energy has issued a certificate of conformity for the interim power supply deals.

Meralco said the competitive selection process “considers the need for additional available capacities to augment supply to customers.”

Under the setup, distribution utilities must choose the cheapest electricity supply through bidding. Bidders have until Jan. 15 to submit expressions of interest.

A pre-bid conference will be held on Jan. 22, while the deadline to submit bids for the 260-MW and 400-MW capacities was set for Feb. 26 and 27, respectively.

Last year, Meralco started seeking bidders for 1,800-MW and 1,200-MW baseload capacities.  The 1,800-MW competitive selection process aims to find new suppliers for electricity that was supposed to be supplied by the two units of San Miguel Power Global Holdings Corp. — Excellent Energy Resources, Inc. and Masinloc Power Partners Co. Ltd.

Their contracts with Meralco were terminated in March after their power supply agreement  application went past the deadline.

Excellent Energy and Masinloc Power were supposed to start delivering electricity by 2024 and 2025 after securing the supply contracts in 2021.

Six entities expressed interest in the bidding for the 1,800-MW capacity — GNPower Dinginin Ltd. Co., First NatGas Power Corp., SP New Energy Corp., Mariveles Power Generation Corp., Excellent Energy, and Masinloc Power.

Meanwhile, the 1,200-MW capacity is meant to replace the terminated power supply deals with South Premiere Power Corp., Solar Philippines Batangas Baseload Corp., and Sual Power, Inc., used to be called San Miguel Energy Corp.

The bid deadline for the 1,800-MW capacity was on Dec. 26, and Jan. 23 for the 1,200-MW supply.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

In a statement on Thursday, the company said unit Irradiation Solutions, Inc. would start commercial operations in March with the launch of the P700-million e-beam cold storage facility.

The facility is in the equipment installation and commission phase. Once completed, it has the capacity to decontaminate and sterilize 20,000 tons of food products and medical devices annually.   

E-beam technology offers a cost-effective and safe method for treating goods, according to A Brown.

“E-beam technology is recognized for its environmental friendliness, leaving no chemical residues, and is scientifically proven effective in decontaminating food and sterilizing medical equipment,” it said.

“The technology ensures high product throughput and stands as a sustainable alternative to traditional heat and chemical treatments,” it added.

The construction of the facility is in line with Irradiation Solutions’ vision of becoming a cornerstone for the Philippine economy, A Brown said. “It is designed to enhance the operations of local businesses and ensure product compliance with international export requirements.”

Irradiation Solutions President Paul B. Juat remains optimistic despite delays in the facility’s completion due to weather and supply chain disruptions, it said.

The facility started construction in April 2022, with commercial operations initially expected to begin by the third quarter of last year.   

“Our team’s resilience has kept us on track,” Mr. Juat said. “We are confident that the completion of this project will significantly improve the Philippines’ export capabilities. This is significant for the Philippine fruit and fisheries sector, which faces challenges in adhering to stringent international standards of product quality and safety.”

A Brown Chairman Walter Brown said the facility would empower local businesses and help them tap foreign markets.   

“We’re looking forward to the operational phase of our facility,” he said. “Our goal is to empower local businesses, helping them reach international markets more effectively. This facility is not just an investment in technology; it’s an investment in the Philippine economy and its people.”

Shares of A Brown, a real estate company with mixed-use, nature-themed developments in Mindanao and Luzon, gained 4.62% or three centavos to 68 centavos each. — Revin Mikhael D. Ochave

In separate advisories posted on its website, the corporate regulator flagged One 1Key Progress Booster, Inc. (OKPB) and Goldia by Shine, which are both registered with the commission.   

The certificates of registration of the two entities only grant juridical personality but do not empower them to sell securities without an approved registration statement, the SEC said.

It added that people or groups claiming to represent Power Apps under the registration of OKPB were urging the public to invest by paying a P1,000 membership fee.   

“Once registered, the member becomes part of the second business of OKPB which they refer to as ‘quest,’ whereby an investment of P5,000 will guarantee a return of 50% in just 15 days,” it said. “There is no proof of the invested money. However, the names are written on the logbook with the corresponding amount invested.”

The SEC said OKPB uses a scheme where investors could also invest P100,000 and earn 300% to 400% interest after five to 10 days.   

“Investors were advised that the operation will only last until the end of this year, but assured the members that their shares will be transferred to a new company and that it will still earn but not as much as 50% of the investment made,” the regulator said.

“Allegedly, this is to get away from paying big taxes to the Bureau of Internal Revenue,” it added.

Meanwhile, the SEC said Goldia by Shine, which is under the registered license of Fujesan Distribution Corp., claims to be selling jewelry from Hong Kong and Bangkok at low prices.   

The entity allegedly offers compensation plans with investments ranging from P20,000 to P300,000 with a promise of return of 5-8% monthly interest.    

“The public is made aware that an investment contract, which is a kind of security, exists when there is an investment or placement of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, which is prominent in the scheme of Goldia by Shine,” the SEC said. — Revin Mikhael D. Ochave

Perfetti Van Melle Philippines Managing Director David Roos on Thursday said the company, which produces brands like Mentos, Chupa Chups, and Fruit-tella, is on track to hit 50% more than the required target under the law.

“We want to continue exceeding these targets in the coming years,” he said in a statement.

Under the law, big companies must recover or divert at least 20% of their plastic packaging footprint by end-2023, 40% by 2024 and increasing by 10% yearly until at least 80% is recovered by 2028.   

“At Perfetti Van Melle Philippines, we believe that small moments and actions, when added up, can create a big, positive impact on people’s lives,” Mr. Roos said. “This goes beyond the sweet treats we are known and loved for and includes taking action to help tackle large societal challenges like plastic pollution.”

Perfetti Van Melle Philippines has a plastic diversion program consisting of community impact, co-processing, recycling, upcycling, and other projects. It also seeks to help build a circular economy through social impact.

“Together with these plastic diversion initiatives, the company is focused on innovating its packaging materials to reduce plastic usage and find proper alternatives, creating even more value for Filipinos and safeguarding a better future,” Mr. Roos said.   

PCX Markets is a global marketplace for audited and traceable plastic waste recovery and responsible processing.

It activates an ecosystem of partners who collect, transport and responsibly process plastic waste, tracked and verified through the power of blockchain technology, while supporting communities on the ground with programs that improve livelihoods and scale up social impact.

PCX is working to clean up 80 years’ worth of plastic waste, according to its website. “We encourage the elimination of unnecessary plastic and enable responsible production and waste management for any plastic that remains, so that it doesn’t wind up in nature.” — Revin Mikhael D. Ochave

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A STAR-STUDDED lineup awaits music lovers as both local and international acts are gearing up to perform on stage throughout the year. Whether it’s pop favorites, balladeers, rock bands, rap trailblazers, or indie darlings, there will be something for everyone up ahead.

Here is a rundown of live music this year — so far.

Yesung’s Unfading Sense
Jan. 6

The Korean singer and member of veteran K-pop group Super Junior, Yesung will stage his solo show, Unfading Sense, following the release of his solo album of the same name in October 2023. He will be performing at the New Frontier Theater in Cubao, Quezon City.

Circus Music Festival 3
Jan. 6 – 7

Over at the Circuit Makati Events Grounds, the third part in the Circus Music Festival series kicks off on Jan. 6 and 7. It has Ely Buendia headlining on the first day, along with acts like Juan Karlos, Silent Sanctuary, Armi Millare, Mayonnaise, 6Cyclemind, and many more. On the second day, the headliners are Parokya ni Edgar and Kamikazee, with musicians like Zack Tabudlo, Al James, Unique Salonga, Sponge Cola, and more keeping the ball rolling.

Seventeen’s FOLLOW
Jan. 13 – 14

K-pop boy group Seventeen is returning to the country for a two-night concert this January at the Philippine Sports Stadium at Ciudad de Victoria in Bocaue, Bulacan, as part of their FOLLOW concert tour. However, members Jeonghan and S. COUPS will be absent due to “rehabilitation treatment and recovery” from injuries.

Mark Tuan’s The Other Side
Jan. 14

Rapper and GOT7 member Mark Tuan will be performing at the SM North EDSA Skydome on Jan. 14 for the Asian leg of his The Other Side tour. His show is organized by concert promoter PULP Live World.

Nyoy Volante and Klarisee de Guzman
Jan. 19

Star Magic Music Room presents Nyoy Volante, considered by some to be the “King of Philippine Acoustic Pop,” and Soul singer Klarisse de Guzman collaborating for a show this January. It will take place at the Vue Bar of the Bellevue Manila Hotel in Muntinlupa.

Coldplay’s Music of the Spheres
Jan. 19 – 20

British rock band Coldplay’s Music of the Spheres world tour will be making a stop in the Philippines — their second-ever visit — this time performing at the Philippine Arena at Ciudad de Victoria in Bocaue, Bulacan, for two nights. OPM singer Jikamarie will be the opening act for both nights.

NCT 127’s The Unity
Jan. 21

K-pop group NCT 127 will be flying in this month for their third tour, The Unity. The nine-member boy group will be performing at Bulacan’s Philippines Sports Stadium, brought to the country by PULP Live World.

Melanie Martinez’s PORTALS
Jan. 23

Alternative-pop singer-songwriter Melanie Martinez will stage a show at the World Trade Center in Pasay City. Her tour, Portals, is named after her newest album which she is promoting. It will be a standing-room only concert.

The Rose’s Dawn to Dusk
Jan. 26

South Korean indie-rock band The Rose is returning to the Philippines a year after their first visit, this time taking the stage of Araneta Coliseum in Cubao, Quezon City. In addition to concert tickets, they are allowing meet-and-greets, soundcheck access, Q&A sessions, and exclusive merchandise for VIP packages.

The Jets
Jan. 26 and 27

The Jets, the American 1980s family pop band, known for hits like “Crush on You,” “You Got It All,” and many more, is returning to the country for a two-night concert. They will be performing at the Newport Performing Arts Theater at Newport City in Pasay City.

Brent Faiyaz’s It’s A Wasteland
Jan. 28

Live Nation PH is bringing R&B singer-songwriter Brent Faiyaz to the Philippines for a one-night performance at the New Frontier Theater in Cubao, Quezon City. It will be the Manila stop of his It’s A Wasteland tour.

ENHYPEN’s Fate
Feb. 3

The seven-piece K-pop boy group ENHYPEN will be back in the country over a year after their first visit. On Feb. 3, they will make history as the first act to individually headline a show at the New Clark City Stadium in Tarlac which is part of their Fate tour in Asia.

Mr. Streisand
Feb. 10

Some of the country’s best singers — Michael de Mesa, Arman Ferrer, Audie Gemora, Franco Laurel, Jett Pangan, and Michael Williams — will perform in a concert featuring a repertoire of Barbra Streisand songs. With stage direction by Mark Bautista and music direction by Rony Fortich, the concert will be held at the Music Museum at the Greenhills Shopping Center in San Juan.

SCRUBB
Feb. 10

Thai duo Scrubb, composed of Thawatpon Wongboonsiri and Torpong Chantabubpha, will be in the Philippines in February. Their concert will take place at the 123 Block Mandala Park in Mandaluyong.

ILYSM… A Valentine Harana Concert
Feb. 13

This multi-act concert at the Smart Araneta Coliseum features Arthur Nery, Adie, Rob Deniel, MRLD, Janine Tenoso,  and Rhodessa, with special guest, Alamat.

Julia Fordham’s A Valentine Concert
Feb. 16

For the season of love, Julia Fordham will be holding a concert on Feb. 16 with “Asia’s Romantic Balladeer” Christian Bautista as guest. A Valentine Concert will be held at The Theater at Solaire in Parañaque.

Sungha Jung
Feb. 16

Korean acoustic singer and guitar player Sungha Jung will return to the country to serenade Filipino audiences on Feb. 16 at the SM Skydome, SM City North EDSA in Quezon City. The show is organized by KBeam Events.

Rivermaya’s The Reunion
Feb. 17

Filipino alt-rock band Rivermaya is digging deep into their three-decade-long career and bringing back the original lineup to play their biggest hits. Bamboo Mañalac, Rico Blanco, Nathan Azarcon, and Mark Escueta will take the stage and perform together for the first time since the late 1990s at the SMDC Festival Grounds in Parañaque.

Jonas Brothers’ Five Albums. One Night.
Feb. 22

Those who grew up as Disney kids will be thrilled to relive those memories at the Jonas Brothers’ Manila concert on Feb. 22 at the Mall of Asia Arena in Parañaque. Ovation Productions is bringing the Five Albums. One Night world tour to Manila.

Bobapalooza Music and Arts Festival
Feb. 24 – 25

The second edition of the Bobapalooza Music and Arts Festival will be bigger than the inaugural edition last year according to its organizers. International headliners Pale Waves and The Band Camino are coming to play while the local lineup boasts heavy hitters like Juan Karlos, Itchyworms, Urbandub, Sandwich, Chicosci, Syd Hartha, Rico Blanco, and more. It will take place at the Filinvest City Events Grounds in Muntinlupa City.

Eric Moo
March 1

To start off March, the Malaysian-Chinese singer Eric Moo will bring his Mandopop ballads live to the Newport Performing Arts Theater in Pasay City.

Jeff Satur’s Space Shuttle No. 8
March 2

The Manila leg of Thai singer-actor Jeff Satur’s Space Shuttle No. 8 Asia Tour will be held at the New Frontier Theater in Quezon City, care of Live Nation PH.

Ed Sheeran’s +-=÷×
March 9

Irish pop sensation Ed Sheeran will be bringing his +-=÷× tour (pronounced Mathematics tour) to Manila. He will be playing at the SMDC Festival Grounds in Parañaque with special guest Calum Scott.

Wanderland Music and Arts Festival
March 9 – 10

For its 10^th edition, Wanderland will be returning to the Filinvest City Events Grounds in Alabang. Beach rock singer Jack Johnson will headline day one, leading performers like Novo Amor, Parcels, Ena Mori, Paolo Sandejas, Jeff Bernat, Beenzino, and more. The day two lineup has yet to be announced.

wave to earth’s The First Era
March 11 and 13

Korean indie band wave to earth is returning to Manila in March. As part of their The First Era tour, they will have a two-day concert on March 11 and 13 at the New Frontier Theater in Quezon City. The act added the second show after tickets for the March 11 concert quickly sold out.

Slash’s The River Is Rising
March 12

Slash of Guns N’ Roses will once again visit Manila, this time with Myles Kennedy and The Conspirators, a group made up of Alter Bridge guitarist Myles Kennedy, Todd Kerns, Brent Fitz, and Frank Sidoris. The guitar-heavy rock concert will be held at the New Frontier Theater in Quezon City.

Rod Stewart’s One Last Time
March 13

Rod Stewart, one of the bestselling pop-rock performers of all time, will be back in the Philippines to perform many of his beloved hits. His one-night only show will be in March at the Mall of Asia Arena in Parañaque.

Janet Jackson’s Together Again World Tour
March 13

Pop-R&B superstar Janet Jackson will be back in Manila for the first time in over a decade. She is bringing her Together Again world tour to the Smart Araneta Coliseum in Cubao, Quezon City.

Malasimbo Music and Arts Festival
March 15 – 17

The Malasimbo Music and Arts Festival will again be held in Puerto Galera, Mindoro, marking the festival’s comeback since it was last held in 2020. It will feature Ichika Nito, Dilaw, the Blue Rats, and other performers.

PULP SUMMER SLAM XX: Worlds Collide
March 23

The first Pulp Summer Slam since the COVID-19 pandemic hit will feature foreign metal bands Parkway Drive, Story of the Year, Fleshgod Apocalypse, Rolling Quartz, Prompts, and more. It will take place at the Amoranto Stadium in Quezon City.

James Taylor
April 8

Singer-songwriter James Taylor is bringing his timeless classics to fans in Manila for the first time in almost three decades. His show is set to take place at the Mall of Asia Arena in Parañaque.

Boys Like Girls
April 20

American rock band Boys Like Girls is bringing their Spring concert tour to the Philippines with a one-night show at the Smart Araneta Coliseum in Quezon City.

Incubus
April 25

The distinct 1990s and early 2000s sound of the American rock band Incubus will again be held live in the Philippines in April. Brandon Boyd and the rest of the band last performed in the country in 2018. This time the Manila leg of their Asia tour will be at the Smart Araneta Coliseum in Quezon City.

Niall Horan’s The Show
May 13

Irish soloist of One Direction fame Niall Horan will be in the country in May for his The Show world tour. Organized by Live Nation PH, his Mall of Asia Arena concert is taking place on May 13.

IVE’s Show What I Have
July 13

Starship Entertainment’s leading girl group IVE is returning to Manila for their first world tour, Show What I Have. The show, care of Live Nation PH, will be held at the Mall of Asia Arena on July 13. — Brontë H. Lacsamana

SOME listed Philippine energy companies are bent on diversifying their energy portfolio amid an expected surge in demand and a pipeline of projects.

“We are currently diversifying our power portfolio by developing several renewable energy facilities, with numerous others in the pipeline,” Antonio Miguel B. Alcantara, deputy chief executive officer at Alsons Power Group, said in a Viber message last week.

He said the company is optimistic for 2024 year with the operation of its 14.5-megawatt (MW) Siguil hydropower plant in Maasim, Sarangani province.

“We are committed to expanding our footprint and diversifying our power portfolio,” Mr. Alcantara said. “This year signifies a major milestone in our journey as we enter the Visayas market with the groundbreaking of our 95.2-megawatt baseload backup power plant in Ubay, Bohol.”

The project will serve as a dependable source of backup electricity for consumers in Bohol.

The energy company is also working on two additional renewable power facilities — the 37.8-MW Siayan hydropower project in Zamboanga del Norte and the 42-MW Bago hydropower plant in Negros Occidental.

Meanwhile, Emmanuel V. Rubio, president and chief executive officer at Aboitiz Power Corp. (AboitizPower), said the company is confident about this year despite tight market conditions.

“As electricity demand continues to grow, we will strive to generate more megawatt-hours in 2024 through higher plant availability and new capacities, especially as we expect coal prices to decline,” he said.

Power consumption is projected to increase by 6.6% this year, requiring 600-700 MW of power reserves, he said.

“This substantial increase in electricity demand underscores the pivotal role of power generation, transmission and distribution companies in meeting this need,” Mr. Rubio said.

He said the expected increase requires significant infrastructure development, including the construction of new power plants and the expansion of the power grid to ensure that electricity reaches demand centers.

AboitizPower has allotted P50 billion in capital expenditure this year, mostly for the expansion and construction of its renewable energy (RE) projects.

It targets to energize its 17-MW binary geothermal power project in Tiwi, Albay this year, as well as its 173-megawatt peak (MWp) solar power project in Calatrava, Negros Occidental.

It also expects several projects to come online this year and in 2025, including its 44-MWp solar plant in Armenia, Tarlac; the 85-MWp solar plant in San Manuel, Pangasinan; and the 206-MW wind project in San Isidro, Northern Samar in partnership with Singapore-based Vena Energy and Vivant Energy Corp.

The company has set a target net attributable capacity of 9,200 MW and 50:50 balance between RE and thermal portfolios by the end of the decade.

To date, it has renewable energy projects with a combined capacity of close to 1,000 MW that are in the pipeline.

Meanwhile, Manila Electric Co. (Meralco) said it would ensure stable and reliable electricity for its 7.8 million customers.

“We maintain a high level of power reliability because the company has been allocating a substantial amount of capital expenditures every year to ensure service quality,” Meralco spokesman and Vice-President for corporate communications Joe R. Zaldarriaga said in a Viber message. “We put up new substations and replaced facilities that needed to be upgraded.”

The distribution utility has launched its two competitive selection processes for a total of 3,000 MW. Meralco has just announced it is seeking bidders for 660-MW supply for the summer.

“There will be challenges for sure like the El Niño phenomenon, which we are closely monitoring especially during the summer months,” Mr. Zaldarriaga said.

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

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

In a stock exchange filing, the company said the PEZA board on Dec. 19 approved unit Cirtek Advanced Technologies and Solutions, Inc.’s (CATSI) application for registration as a domestic market enterprise. 

Cirtek shares gained 1.85% or three centavos to close at P1.65 each.

CATSI will make and assemble two-wheel and three-wheel electric motorcycles and lithium-ion battery packs, the listed company said. “With a steadfast commitment to providing affordable and reliable mobility solutions, CATSI is set to transform the landscape of transportation in the region,” it added.

Cirtek said it is partnering with electric motorcycle and lithium battery manufacturers in China as it aims to bring clean and technology innovation to the electric mobility sector.

“This collaboration brings together the expertise and resources of two industry leaders, guaranteeing that our electric motorcycles meet the highest standards of performance, safety and innovation,” it said. 

The production of its electric motorcycle and lithium-ion battery pack would start this year, the company said, adding that it expects the growing adoption of electric vehicles in the country. 

“Although the Philippines lag behind our neighbors with regard to the adoption of Electric Vehicles, we expect a big turnaround in the industry very soon,” Cirtek said.

The Electric Vehicle Association of the Philippines expects electric vehicles in the country to reach almost seven million by 2030 as the Energy department pushes faster rollout of new units. — Ashley Erika O. Jose

The Boy and the Heron — perhaps Miyazaki’s final film, done with economy and passion and a surfeit of fabulous imagery.

Killers of the Flower Moon — Less a depiction of the Native American victims (which I suspect Scorsese couldn’t presume to speak up for) than a blackly comic takedown of the thugs that preyed on them. At its emotional heart: the strange strangely moving Judas-Jesus relationship between Ernest Burkhart (a deftly dimwitted Leonardo DiCaprio) and his Osage wife Mollie (an understated Lily Gladstone).

Essential Truths of the Lake — Lav Diaz’s first-ever prequel follows the early adventures of Hermes Papauran, the “Philippines’ greatest investigator” — basically a detective with a philosophical bent and a gift for guilt-wracked obsessive brooding. He never lets go and neither does Diaz, in this latest meditation on the Marcos dictatorship.

May December — Todd Haynes’ unsettling look at tabloid narratives (in this case the Mary Kay Letourneau story) and the secrets they may or may not contain.

Asteroid City — Wes Anderson doesn’t indulge in the usual film bro cliches — guns and assassins and fast cars — but takes off in a trajectory all his own. The immersion in 1950s Space Age paraphernalia makes this a perfect double feature with Richard Linklater’s Apollo 10 ½

Infinity Pool — Brandon Cronenberg eschews his father’s clean pornographic style to do a more baroque version of John Frankenheimer’s Seconds, the true source of horror less the fleshy onscreen mutilations and more Mia Goth’s mesmerizing hold over Alexander Skarsgard.

Past Lives — Celine Song’s debut feature is quiet but graceful; the finale, an extended tracking shot along an East Village sidewalk, is unexpectedly potent.

The Holdovers — Alexander Payne and Paul Giamatti’s latest isn’t visually distinctive but does evoke lowkey emotional magic, and delivers the occasional sting.

The Killer — David Fincher at his more elliptical, more a sterile exercise of style and stylish performances than anything. Not quite Jean-Pierre Melville, master of the genre, but not bad either.

Silent Night — Man loses his son and his voice, takes a year to prepare for payback. Grimmer less stylish John Woo that nevertheless retains his spark.

Anatomy of a Fall — Justine Triet’s legal drama with the help of Sandra Huller slowly carefully compellingly assembles the portrait of a marriage that has slid sideways, throws enough uncertainty into the process that like a juror you’re not sure what verdict to deliver.

Guardians of the Galaxy Vol. 3 — James Gunn’s darkest entry of the franchise, yet still manages to be laugh out loud funny. Gunn has a gift for depicting damaged characters, makes good use of that skill here.

Godzilla Minus One — Back and badder than ever, only the humans swarming at its feet are depicted with more care than usual. Arguably the best since Hideaki Anno’s majestic 2016 incarnation, Gareth Edwards’s coyer 2014 version, and the still unmatched 1954 original. Not a fan, alas, of the have-your-cake-and-eat-it ending.

The Exorcist Believer — David Gordon Green doing to The Exorcist what he did to Halloween, picking up a well-loved horror classic and subverting its assumptions. If you’re not a fan of the William Friedkin original (which I’m not) this is for you. Easily the best of the franchise since Exorcist 2: The Heretic.

The Creator — Derivative (of Neon Genesis Evangelion, Blade Runner, and Platoon) and illogical (Why develop a floating weapons platform so vast anyone can take a potshot? And why build a counter weapon that has to grow gradually into full power?) but the core narrative — of a haunted man’s developing affection for a foundling child — is effective.

Meg 2: The Trench — The first hour is trapped underwater and dimly lit; when the movie surfaces and hits land it morphs into goofy fun, a cross between Jurassic Park and Free Fire.

Napoleon — More sumptuous and expensive looking than elegant, the movie emphasizes Napoleon the lovestruck buffoon over the brilliant strategist and innovative statesman, which leads one to ask: couldn’t they depict the strategist and leader and then demonstrate why he’s still a buffoon? Not as passionate or endlessly creative as Abel Gance’s prodigious classic.

Barbie — The first 20 minutes is a witty parody of Barbie and her neon pink world; the remaining runtime is a satire on male entitlement and corporate mismanagement with the fangs pulled, a neat-as-any demonstration of The Golden Rule: he who makes the gold (in this case Mattel, who financed) makes the rules.

Oppenheimer — Historical testimony, biographical study, investigative noir; drop in a blender and hit “puree.” Christopher Nolan is consistent — when it comes to the money shot (a leap across an abyss, a stage trick involving magic cabinets, the detonating of the first-ever nuclear fission device) he cuts away to a different angle. A mess, and not in a good way.

Indiana Jones and the Dial of Destiny — Another I liked more for the what might have been than what is — if you liked Indy, this is a passable capstone; if you like crisp and inventive action sequences, you miss the Spielberg touch.

The Flash — Better than expected, mostly for the melancholic presence of Michael Keaton and his air of What Might Have Been. Otherwise disposable.

Spider-Man: Across the Spider-Verse — everyone talks about how revolutionary it is to digitally animate on 2s (12 drawings or “frames” per second) as opposed to the standard-issue 1s (24 frames per second) — in effect moving away from the smooth and photorealistic — and how difficult this is to do with computers when the Japanese (including Shinkai, warts and all) have been and still do this all the time, largely by hand and in far better films. Miles Morales is a groundbreaking character — at least on the comic book page — but his film incarnation feels too wholesome, like a Disney princess in drag (mind you I’d welcome a Disney princess in drag, just lose the 2% lowfat wholesomeness).

Suzume — Makoto Shinkai continues to ape Miyazaki’s images, characters, and concepts, everything from Spirited Away (protagonist’s beloved cursed into taking another form, if not pigs then a nursery chair) to Howl’s Moving Castle (portals that open into different locations or the past), troweling rough edges smooth with a thick serving of sentimentality. Emotionally stunted work, fixated on fantasy encounters between boy and girl at the expense of all else.

Films I’ve found interesting:

Dust Devil (1992) — Richard Stanley’s hallucinatory film — about a serial killer demon, the woman he’s fated to meet, and the Namibian police officer hunting him — seems less affected by supernatural forces than by heat haze and highway hypnosis. Fascinatingly unhinged.

Experiment Perilous (1944) — Jacques Tourneur’s take on George Cukor’s Gaslight is hobbled by a smaller budget and an ostensibly less-than-stellar cast but does feature Tourneur’s inimitably insinuating visual style and a simmering pas de deux between George Brent and twinkle-eyed Paul Lukas.

The Suspect (1944) — Robert Siodmak’s camera stalks Charles Laughton as he spirals into mayhem and murder in this sumptuously produced Edwardian noir.

 The Furies (1950) — Walter Huston as a carnivorous King Lear and Barbara Stanwyck as his libidinous Cordelia dominate this larger-than-life psychodrama set against the backdrop of Anthony Mann’s West — a landscape of vast plains and craggy heights that reflect the characters’ emotional landscape.

Could not with much regret keep up with the always vital Filipino independent filmmaking scene — that’s my fault — but thanks to a recent project on Filipino-Asian collaborations have been able to catch the following:

Dawn of Freedom (Ano Hata O Ute, 1944) — Yutaka Abe and Gerardo de Leon’s handsomely produced propaganda film employs Manila like a gigantic studio set, yet details the tentative at times mistrustful relationship between Filipinos and their Japanese occupiers with surprising delicacy.

Shiniuma (Dead Horse, 2016) — Brillante Mendoza’s haiku depicting an undocumented Filipino worker’s life in Hokkaido, his capture by immigrant officers, and his eventual Manila homecoming. With an indelible performance by Lou Veloso.

Gensan Punch — Brillante Mendoza’s biopic of “Nao” Tsuchiyama depicts a one-legged boxing champion full of grit and spirit and a startling sweetness.

 A Hard Day — Law Fajardo’s remake of the Kim Seong-hun original, about a corrupt cop trying to fix his fractured life, is a fascinating study on what can translate from Korean to Filipino setting, and what can’t.

Kintsugi — Law Fajardo’s romance between a Filipino immigrant worker and the daughter of his Japanese boss is both a showcase for the charms of Saga prefecture (and its renowned ceramicware) and a quietly poignant romance.

Imbisibol (Invisible) — Arguably Fajardo’s best work, from a one-act play by Herlyn Alegre, an observant and ultimately devastating look at Filipino migrants, documented and undocumented, in bleak wintertime Japan.

“Generative AI can be used to streamline customer journeys via automation,” Gibu Mathew, Zoho vice-president for Asia-Pacific, said in a Viber message. “It can analyze large amounts of customer data, identify patterns and generate insights to improve service quality, identify potential issues and anticipate customer needs.”

The technology company, which is based in India, said Philippine companies could leverage generative AI to drive growth by increasing productivity through task automation and process optimization. 

AI could also be used in so-called hyper-personalization because it could deliver more impactful customer recommendations and purchase history data, allowing businesses to tailor-fit product offerings or services aligned with customers’ preferences, Mr. Mathew said. 

He said micro, small, and medium enterprises (MSME), start-up firms and other low-tech industries could benefit more from the growing adoption of AI in the Philippines.

“We’re seeing it being applied in low-tech sectors, as well as in a diverse range of business functions, from pre-production to post-production,” Mr. Mathew said.

“Generative AI can also identify patterns and generate insights to improve service quality, identify potential issues and anticipate customer needs as a result. MSMEs become more agile and proactive in the face of risks like customer churn,” he added.

Upskilling remains to be the threat in the wider adoption of AI because the lack of basic information and communications technology skills could hinder its growth.

“There are also issues such as data bias, misinformation, intellectual property rights, security concerns, and interpretability,” Mr. Mathew said. “These challenges pose serious risks to brand reputation, and responsible AI practices are imperative.” — Ashley Erika O. Jose

WHERE TO WATCH THE SHOW
The Golden Globes will be broadcast live from the Beverly Hilton starting at 8 p.m. ET/5 p.m. PT (0100 GMT on Monday) on CBS, a new network after years airing on NBC. The awards will also be streamed live on Paramount+ for subscribers who pay for the Showtime add-on. Other Paramount+ customers can stream the show the next day.

WHO IS THE HOST?
American stand-up comedian Jo Koy will host the Globes, his first hosting role for a major awards show. Koy, who is of Filipino heritage, has had stand-up specials on Comedy Central and Netflix and recently took his act on the Funny Is Funny World Tour.

WHICH FILMS AND TV SHOWS LEAD NOMINATIONS?Pink-drenched movie phenomenon Barbie topped the list of nominees, outpacing the eight for historical drama Oppenheimer. But the two films — which featured in a summer box office clash dubbed “Barbenheimer” — will compete in different categories at the Globes. Barbie vies for best comedy or musical, while Oppenheimer competes for best drama.

In television categories, media dynasty drama Succession led all series with nine nominations, followed by the restaurant comedy The Bear with five.

WHO IS FAVORED TO WIN?
Oppenheimer, directed by Christopher Nolan, is heavily favored to win best film drama, according to experts on prediction website Gold Derby, edging out Killers of the Flower Moon, directed by Martin Scorsese.

Barbie, directed by Greta Gerwig, is also the clear frontrunner in best film comedy or musical, followed by gothic comedy Poor Things.

In acting awards, Native American star Lily Gladstone is favored to win best drama actress for her role in Killers of the Flower Moon and Bradley Cooper is the frontrunner to win best film drama actor for his role as conductor Leonard Bernstein in Maestro, which he also directed.

Emma Stone is the favorite for best film comedy/musical actress for her role in Poor Things, while Paul Giamatti leads the field for best film comedy/musical actor for The Holdovers.

Christopher Nolan is heavily favored to win best director for Oppenheimer.

In TV series, Succession is expected to win drama series as is The Bear in comedy series.

MORE DIVERSE SLATE OF NOMINEES
After criticism for a lack of diversity in past years, an expanded group of Globe voters nominated two female directors: Gerwig and Past Lives director Celine Song. Acting nominees included Gladstone in Killers of the Flower Moon, gay Black American Rustin actor Colman Domingo, and Black American lead Jeffrey Wright in American Fiction.

Fantasia Barrino and Danielle Brooks were nominated for their roles in The Color Purple, but the story of Black Americans living in the early 1900s was left out of the race for best movie musical or comedy.

There are 27 first-time nominees.

NEW AWARDS CATEGORIES
The Globes introduced two new categories this year: TV stand-up comedy performance and cinematic and box office achievement.

EXPANDED VOTING MEMBERSHIP
After a 2021 Los Angeles Times investigation revealed that the Hollywood Foreign Press Association lacked diversity and some members engaged in ethical lapses, voting membership this year has expanded to 300 journalists from 75 countries around the world and 60% racial and ethnic diversity.

WHO ARE THE NEW OWNERS?
In June 2023, Eldridge Industries purchased the Golden Globe assets with Dick Clark Productions (DCP), which will continue to manage the awards telecast and focus on expanding the Globes’ viewership around the world. DCP is co-owned by Eldridge and Penske Media. The Golden Globes are now a for-profit venture.

The Hollywood Foreign Press Association was shut down as a consequence. — Reuters

In an appearance on One News this week, Mr. Laguesma said the P750 minimum wage hike proposal, which requires at least a P150 raise across all industries, will be difficult for some small businesses, noting that 96% of enterprises are micro and small firms.

“A careful balance is needed because the needs of workers alone are not the only consideration,” he said. “It might be challenging for business owners to comply even if they want to.”

The P150 wage increase proposal is pending in both the Senate and House of Representatives, with Senator Juan Miguel  F. Zubiri and Party-list Rep. Raymond Democrito C. Mendoza, and the Makabayan bloc pushing for national implementation through legislation, bypassing the current regional wage-board system.

Speaking to BusinessWorld, Nagkaisa Labor Coalition Chairman and Federation of Free Workers (FFW) President Jose G. Matula argued that industries can afford the suggested P150 across-the-board increase, which would represent a 24.6% raise from the current highest regional wage of P610 in Metro Manila.

He said higher pay hikes have been implemented via legislation before, citing 1989’s Republic Act No. 6727 or the Wage Rationalization Act, which ordered a P25 hike, equivalent to a 39.06% raise over the P64 national minimum wage. Mr. Matula said that wage hike did not cause companies to close.

Partido Manggagawa said the negative impact of the wage hike on certain businesses will be short term, with businesses expected to thrive in the long run if workers step up their consumption on the back of higher pay.

“In the short term their profit margins might be affected, but still, they can profit,” Partido Manggagawa Chairman Renato Magtubo said in a Viber message. “It’s not a good national policy for the country to maintain depressed wages so that employers continue to profit from workers’ labor.”

In a separate interview, FFW Vice-President Julius H. Cainglet said that the wage hike is a justified response to the government’s failure to control prices of goods and services.

“Workers have long been languishing on poverty wages. For decades since the enactment of the Wage Rationalization Act, the balance has always tilted in favor of employers. This is but one time in the last 35 years that the balance will tilt in favor of workers,” he said. — Jomel R. Paguian

“Tenants are expanding in the Philippines,” P. Ryan Isip, JLL Philippines head of capital markets, said in an e-mailed reply to question. “Some multinational firms are shifting jobs to the Philippines.”

The property consultant said there is an increasing stock of office spaces locally due to the growing demand for on-site work.

“Employers associate on-site work with major benefits such as social connection and cultural bonds,” Flore Pradere, JLL Global Work Dynamics research director, said. “They see it as a significant contributor to employee performance.”

She said there is more stock of office spaces locally and demand is on the rise for real estate that helps organizations meet their net zero carbon goals.

The completion of four development projects in the cities of Muntinlupa, Pasig, Quezon, and San Juan contributed to the increase in office stock by 222,000 square meters (sq.m.) in the third quarter of last year, JLL Philippines said in a report.

It added that Taguig and Makati would continue to account for majority of office stock in Metro Manila with a 26% and 20% share.

“Most of the anticipated supply by the end of 2026 is coming from Quezon City and Taguig City, which are expected to see large volumes of new stock until the end of 2024,” it said.

As of end-September last year, business process outsourcing firms accounted for most transaction volumes.

The Philippine property market would continue growing mainly due to the expected growth of local construction companies, said Lance U. Soledad, research associate at China Bank Securities Corp.

“A strong recovery in the property sector, improving business expansion appetite, as well as further progress in big-ticket infrastructure projects could improve medium-term topline and bottom-line prospects,” he said in an e-mail. — Ashley Erika O. Jose

It is reassuring to read that the Bangko Sentral ng Pilipinas (BSP) continues to sharpen its analytical tools particularly on predicting potential financial crisis and presenting a more detailed inflation outlook for more reliable forecasting. A good handle on the future is the heart and soul of the BSP’s flexible inflation targeting.

Reassuring, yes, because the BSP has not ceased producing more and more analytical tools for the macroeconomy and stress testing methodologies for surveillance of the banking system. Quite a mouthful, but all of these initiatives should further enhance the batting average of the BSP in projecting inflation and deciding on the most fitting monetary policy stance.

To be hawkish, or to be dovish, is not a question of fashion, or cut and paste, but a result of careful assessment of both past, current, and future data. It’s obvious that when the BSP can confidently manage price movements in the Philippines, we benefit from such positive consequences as more sustainable economic growth, more competitive exchange rate, and a more investment-friendly economic environment. Price stability also reinforces the economy’s resiliency to both global and domestic shocks.

But there’s something that BSP Governor Eli Remolona cited recently that should further keep the BSP economists and researchers busy in the next few years. He said: “We need to do what I call narrative identification. It’s not enough to have an index that’s based on averages. We have to somehow calibrate them so that they actually predict the crisis, especially our own crisis.”

The narrative approach, if applied to macroeconomic identification, uses qualitative sources of data and information like, but not limited to, newspapers, government records, or, in the case of central banks like the BSP, transcripts of Monetary Board meetings. This ragtag group of sources can provide information crucial in establishing causal relationships.

The husband-wife team of David H. Romer and Christina D. Romer, both of the University of California, Berkeley, employed this methodology first in 1989 in looking into the impact of monetary policy by reading the historical minutes and transcripts of the Federal Reserve Board meetings on monetary policy and incorporating these to statistical analysis. They opted for this approach to deal with the common problem of omitted variable bias to consider a more complete set of relevant explanatory factors.

In her January 2023 presidential address before the American Economic Association in New Orleans, Ms. Romer explained that their methodology allowed them to identify precisely “a subset of monetary actions that were not motivated by other factors affecting output.” The behavior of output following the US Fed monetary shocks “would provide relatively unbiased estimates of the impact of monetary policy.”

For economists, what the Romers are saying is that there are other relevant variables that do affect both output and the motivation of the US Fed to change the course of monetary policy. One common flaw, and this is something that both economists and non-economists are guilty of, is when one concludes that monetary policy does not matter when we see it morphing from hawk to dove without any perceptible effect on business activities.

Auspicious as it was, Ms. Romer’s presidential address presented her with the opportunity to revisit their 1989 paper in the context of the recent issue of the US Fed monetary policy allegedly motivating a possible recession in the US. After over three decades, the husband-wife team has learned volumes “about the pitfalls of narrative research” and how to turn it around.

Ms. Romer cited the key ingredients to a more meaningful use of the narrative approach in order to avoid being just “literary,” a term used to discredit their initial 1989 paper. First is the reliability of their source. Their 1989 paper was based on the abridged record of policy actions of the Federal Open Market Committee, or to some, minutes of those Committee meetings. This means they extracted very little information on the motivations of the Fed’s policy actions. With a shorter lag involved before these minutes were made public, the Romers felt that they were “less forthright.”

Their new research is anchored on “very detailed summaries of the discussion with extensive paraphrases, or verbatim transcripts.” As Ms. Romer stressed, they are contemporaneous with the Fed’s monetary policy decisions. With a long lag before the transcripts’ publication, the US Fed governors must have been more open and more forthright.

The second key to a good narrative approach is a clear sense of what one wants to extract from the source. Citing the genius of the iconic Milton Friedman and Anna Schwartz in employing the same methodology in their seminal work, A Monetary History of the United States (1963), proponents of the methodology should focus on those instances when monetary policy was undertaken without regard to economic activities, and the effects are expected to be unbiased estimates of causality between monetary policy and economic performance.

One drawback to this general approach is coming up with specific criteria to be used in judging for the period to be considered. It is difficult to tell whether the economy is at, or close to, potential output but it is perhaps even more difficult to determine whether the corresponding inflation target is just right, or needed some adjustment. Ms. Romer then argued that there is a scope for including not only contractionary monetary policy shocks but also expansionary monetary policy shocks. If monetary policy matters, output should be affected upwards.

The team sought to identify significant contractionary and expansionary changes in monetary policy that were not exactly considered to address real sector activities in the United States from 1946 to 2016. Based on this approach, they succeeded in identifying 10 instances when the Fed deliberately adjusted monetary policy to alter the path of business activities. There was only one case where the Fed adjusted monetary policy in response to high inflation. This is not surprising because, as Ms. Romer pointed out, no monetary shock was observed between 1988 and 2016. Even as they included almost 30 years of additional observations, inflation in the US had been steady during that period, until recently.

The Romers’ revisit confirmed most of their original findings with a few tweaks here and there on periodization and interpretations. Building on Friedman and Schwartz’ pioneering work, the Romers incorporated their narrative evidence into a more rigorous statistical technique, the Jordà local projection approach (2005). They admit that there are other statistical techniques available to achieve rigor and unbiased estimates. It was also shown that alternative specifications yielded only minor differences in the results. The results tested robustly.

How does the Romers latest study interpret current monetary conditions and US Fed policy?

For one thing, even as the transcripts of the US Fed monetary policy meetings will not be available until 2028, a reading of the narrative evidence based on the record of such meetings would indicate that the US Fed tightened monetary policy in response to record-high inflation in the last couple of years. The US Fed, on the record, announced that this was unacceptable, so monetary policy must respond. Fed funds target rate has risen a full four percentage points, or 400 basis points, something akin to the 1988 monetary policy action by the US central bank.

Ms. Romer, in her presidential address, was quite fearless in her prognosis of what to expect from such monetary policy action. She said we should not expect inflation to fall rapidly. It’s possible perhaps after two quarters after the shock. If the supply side is favorable, a more rapid decline is likely. From January 2023, the impact on unemployment should be felt throughout the same year. Finally, Ms. Romer suggested that the US Fed was facing a difficult decision on when to stop tightening monetary policy and start reducing the policy rate.

With long and variable lags of monetary actions, it is possible the US Fed might still be tightening until they see a more definitive trend decline in inflation. But that would signal that “they have gone farther than they needed to.” Ms. Romer admitted it’s an impossible call to say how much more monetary policy has to continue, and how much longer interest rates should remain high.

In our previous columns, we made the point that the BSP was correct in fighting inflation until it returns to the 2-4% target. Some of the expected effects of this monetary policy shock include economic moderation and weaker job creation. There is no way by which those factors affecting inflation could not affect output and the labor market.

Yet, we have seen that as the BSP maintains higher interest rate longer, inflation rates in the Philippines seem to have started to gravitate towards the 2-4% inflation target recently. Yet, it must be recognized that the impact on both output and jobs has not been as bad as some quarters expect. The Philippines is expecting output growth close to the lower end of the 6-7% target while the latest jobs statistics indicate lower unemployment and underemployment.

It would bring more completeness to the analysis of inflation and inflation prospects if the BSP would start implementing the call of the Governor in doing the narrative approach in addressing the usual identification problem in macroeconomic research. While other alternative techniques are available, the narrative approach is very promising, though difficult. For instance, it would require the Monetary Board greater understanding for more transparency and forthrightness in allowing the publication of the transcripts of monetary policy meetings. A longer lag may be considered to permit more open and frank discussion of monetary policy.

But we are optimistic that once this is done, inflation management in the Philippines would have a very interesting narrative.

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Willis Gibson, who goes by the streamer name Blue Scuti, said “Please crash” as he arranged the puzzle pieces cascading down the screen and moments later got his wish when the game froze, leading him to repeatedly exclaim “Oh my God!” in a video uploaded to YouTube on Jan. 2.

Mr. Gibson broke world records for the overall score, level achieved and total numbers of lines, according 404 Media.

“This is unbelievable,” Vince Clemente, chief executive officer of Classic Tetris World Championship, told Reuters.

“Developers didn’t think anyone would ever make it that far and now the game has officially been beaten by a human being.”

Previously, only an artificial intelligence computer program had beaten Tetris, Mr. Clemente said.

Mr. Willis employs a “rolling” controller technique popularized in 2021 that allows a player to manipulate the directional pad, or D-pad, at least 20 times per second to move the blocks, far more than the previously popular “hyper tapping” method, 404 Media said.

Tetris, which was first released in 1984 and became a near-immediate worldwide sensation, challenges players to rotate and conjoin seven different falling block shapes.

Created by Alexey Pajitnov at the Moscow Academy of Science during the height of the Cold War, and developed as a business by gaming entrepreneur Henk Rogers, Tetris has shown remarkable staying power, spanning generations.

It is the bestselling video game of all time with 520 million copies sold, according to The Tetris Company. — Reuters

The ongoing PhilCare study, which seeks to come up with a profile of Gen Z — the digital-native cohort born in the late 1990s and early 2000s — found that everyday expenses (44%) and homeownership prospects (39%) were their leading challenges.

The survey also found that Gen Z respondents believe they are adequately prepared for retirement (73%) and travel and leisure (65%).

PhilCare, in a separate Gen Z-focused study led by researcher Fernando dlC. Paragas, said 76% of respondents grapple with the responsibility of sharing their earnings with family.

“Companies looking to recruit and retain young talent need to be creative with their benefits to address this need,” Joseph Agustin L. Tanco, PhilCare president and chief executive officer, said in a statement on Thursday.

“Businesses should acknowledge Gen Z’s financial responsibilities toward their families,” he added. “Offering support beyond the standard paycheck could significantly impact their financial wellness.”

Monico V. Jacob, PhilCare chairman, noted that financial wellness programs could be among the employer offerings to aid in such challenges.

“They may also want to explore flexible work arrangements, including remote work options, to ease the financial burden of commuting and onsite work so employees can save money for more important things like housing,” he said. — Miguel Hanz L. Antivola

The Q3 2023 Global Risk Survey by Oxford Economics confirms geopolitical tensions related to Taiwan, Korea, and Russia-NATO are now believed to pose the greatest risk to the global economy and banking system in the near and medium term.¹ Political events can disrupt operations and supply chains. Shifting foreign exchange rates and high cost of funds discourage credit demand and investor risk taking, dampening overall economic activity. Executives are aware of the urgent need to guard against risks and uncertainties. Based on SAS Institute’s study, 81% of executives believe that business resilience will reduce the impact of crises (88%) and increase market share by adapting to market conditions (87%).²  

Building actionable contingency plans to manage operational disruption requires the right partners in both the physical and financial supply chains of the business — partners who share similar values and can be trusted in times of distress. In BDO Unibank, we pride ourselves in being the financial partner of choice.  By keeping our corporate clients front and center of all our services, we know the importance of our role in their financial supply chain.  Our Transaction Banking Group’s Cash Management Services team knows what it takes to offer the right level of products and services to keep businesses going.

BDO Cash Management Services provides real-time information and immediate funds availability to minimize supply chain interruptions. Cash inflows and outflows can be closely monitored via BDO Business Online Banking. This helps improve reconciliation and reduces the risk of late payment bookings, while optimizing and enhancing cash flow stability. Information services provide insights into cash flow forecasting, helping with working capital efficiency. By supplying timely and comprehensive information and improving cash flow, corporations can minimize their reliance on external financing and strategically plan for short, medium and long term funds allocation to improve overall profitability.

A robust financial management strategy is vital to resilience planning. It enables businesses to maintain strong liquidity and cash reserves especially during times of crisis. True to its service philosophy “We find ways,” BDO finds ways to provide the right solutions and accurate information integral in keeping the operations going. By knowing where the cash is and having easy and fast access for their payment needs, corporates can focus on the more critical and strategic activities during these challenging times.

Sources:

¹ Oxford Economics. (2023). Businesses now see geopolitical tensions as key global threat.
² Tracy Brower. (2023). Majority Of Execs Report Lack Of Business Resilience: 5 Ways To Build It.

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In a statement on Thursday, the property developer said its 10-storey Oceanfront Premier Residences inside the 462-hectare ecotourism township Paragua Coastown will offer 189 “smart home” units and feature views of Pagdanan Bay.

The property is a minute walk from the beach and the soon-to-rise Savoy Palawan.

Unit sizes at Oceanfront Premier Residences would range from studio with balcony (32 square meters), executive studio (up to 42 square meters), executive studio with balcony (up to 38, square meters), one bedroom with balcony (44 square meters), and executive one bedroom with balcony (up to 54 square meters), Megaworld said.

The property will also offer units such as a one-bedroom premier suite with balcony (up to 71 square meters), two-bedroom (64 square meters), two-bedroom with balcony (up to 71 square meters), and two-bedroom premier suite with balcony (up to 105.5 square meters).

Paragua Coastown will feature residential developments, hotels and resorts, a cultural center, educational facilities, a boutique hotel district, shophouse district and other eco-tourism facilities.

Shares of Megaworld gained 1.01% or two centavos to P2 each. — Revin Mikhael D. Ochave

THE IRIS Alborz, pride of the Iranian navy, isn’t much of a warship. Commissioned in 1971, the frigate is both long in tooth and lacking in teeth: Decades of sanctions have obliged Iran to jerry-rig it with homemade combat systems, well short of the firepower of equivalent vessels in the world’s major naval fleets.

The ship serves important symbolic purposes, though. It is a reminder that the Islamic Republic is a maritime state, if not quite a power. Its armaments, limited as they are, also advertise Iran’s indigenous weapons-making capabilities. When it sails out of its home port of Bandar Abbas on the Persian Gulf, the Alborz projects not power so much as defiance.

Right now, the vessel is serving symbolic functions on the far side of the Arabian Peninsula, as reassurance and recognition for a key ally: the Houthi rebels of Yemen, who have been attacking international shipping on one of the world’s most important sea routes. They have also fired missiles in the direction of Israel, in support of another Iranian ally, Hamas.

The Alborz will not provide them with much protection from the US-led naval flotilla, known as Operation Prosperity Guardian, that is interdicting the Houthis’ missiles and drones, as well as sinking some of their boats. But Tehran is signaling to the rebels that they are not alone.

For Iran, this is an unusually open demonstration of military support for one of its extensive network of allies and proxies in the Middle East. Tehran typically uses cloak and dagger means to train, finance, and arm groups like Hezbollah in Lebanon, Hamas in Gaza, and the Hashd al-Shaabi in Iraq. In public, Iran’s leaders limit themselves to rhetorical encouragement and approval.

That is how it has been with the Houthis. Tehran developed ties with the rebels long before they burst onto the international scene nearly 10 years ago, by capturing the Yemeni capital Sana’a, and toppling the internationally recognized government. Since then, Iran has supplied the Houthis with increasingly sophisticated missiles and drones, as well as the means to produce them locally.

This support enabled the rebels to defeat an Arab coalition led by Saudi Arabia that sought to restore the now exiled government. Tehran’s weapons have also allowed the Houthis to strike deep into Saudi territory, most spectacularly with the 2019 attacks on the kingdom’s oil infrastructure. The Saudis were eventually obliged to sue for peace.     

Throughout, Iran maintained the fiction that the Houthis were acting alone. Only once, in the spring of 2015, did it send a naval flotilla — led by the Alborz, as it happens — to try and break a blockade of Yemeni ports by Saudi Arabia and the United Arab Emirates. But after the US sent an aircraft carrier group to intercept the flotilla, the Iranians quietly withdrew. Back then, the Houthis were one of Tehran’s lesser proxies, not in the league of Hezbollah or Hamas; the situation didn’t merit the risk of a confrontation with the US.

Iran’s more determined defiance this time on behalf of the Houthis reflects their elevation to the first rank of allies. It is a reward for their humiliation of one of the Iranian regime’s sworn enemies, Saudi Arabia, as well as an appreciation of their utility in the fight against another, Israel.

The promotion is especially timely for Tehran. Its main catspaw against Israel, Hamas, is being severely degraded by the war in Gaza. Iran is reluctant to deploy Hezbollah, partly for fear of depleting its oldest, most powerful client.

Boosting the Houthis makes more sense for Iran because they can be much more disruptive than any of the other proxies — as they have just demonstrated by essentially frightening off commercial shipping from a sea lane that accounts for 12% of world trade.

While Hezbollah’s main utility to Tehran is as the protector of Iranian interests in Lebanon and Syria, and Hamas’ principal purpose is to kill Israelis, the Houthis can wreak economic damage on Iran’s near enemies, the wider world, and, by extension, the US.

It helps the Iranian cause that the Houthis operate with fewer restraints than any other proxy. Unlike Hezbollah in Lebanon or the Hashd al-Shaabi in Iraq, the Yemeni rebels don’t need to manage complex multi-ethnic and multi-sectarian local politics. Unlike Hamas, they are out of reach of the Israeli Defense Forces. They command a large country, with plenty of remote redoubts from which to fire off Iran’s missiles. And their proximity to some of the world’s main sources of energy amplifies their threat potential.

It should surprise nobody, then, if the Houthis grow in Iranian esteem, and eventually match — and perhaps even exceed — Hezbollah. This prospect terrifies Yemen’s Arab neighbors; tellingly, neither Saudi Arabia nor the UAE have dared to join Operation Prosperity Guardian.

For the wider world, responding to the growing Houthi menace will require much more than naval flotillas to the Red Sea. Rather than react to provocations by the rebels and their masters in Tehran, the US and its allies will need to impose restraints on their ability to do harm (see my Bloomberg Opinion colleague Admiral James Stavridis’ recommendations on that score) while strengthening their domestic rivals. The latter include forces loyal to the government in exile and armed elements around Aden, known as the Southern Movement. That would present challenges, such as the inconvenient fact that the Southern Movement seeks separation from Yemen, and that corrupt and inept politicians make up the exiled government.

Given its age and condition, the Alborz’s deployment is likely to be short. It has already fulfilled its symbolic purposes. But long after the frigate’s return to Bandar Abbas, Iran and its newly elevated ally will represent a danger to the Red Sea.

BLOOMBERG OPINION

BANKS’ PROFITS may grow further this year as expectations of elevated benchmark rates until the second half may drive their interest income and as robust economic growth could boost loan demand, analysts said.

“If you’re talking about profitability, higher interest rates will be favorable for them,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

Banks could see their profits grow by 10-15% as economic growth could spur loan demand, Mr. Ravelas added.

As of end-September 2023, the Philippine banking industry’s net earnings climbed by 11.3% to P272.557 billion, driven by higher interest income and lower losses on financial assets, central bank data showed.

“Considering the prevailing high interest rate environment, the outlook for the banking sector appears favorable. Higher interest rates typically boost NIMs (net interest margins), positively impacting banks’ profitability,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Overall, a cautious but optimistic stance on the banking sector is advisable, given the current macroeconomic backdrop,” he added.

For her part, First Metro Investment Corp. Head of Research Cristina S. Ulang said bank earnings may have already peaked in 2023.

“For investors and traders, profit opportunity lies in share price volatility driven by positive news flow on easing credit conditions and resilient loan growth,” Ms. Ulang said in a Viber message.

“Borrowing would remain to be constrained and banks would also be challenged in profiting from [loans],” Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said in a Viber message.

Elevated interest rates could also lead to higher non-performing loans (NPL), he added.

As of end-October 2023, the banking industry’s gross NPL ratio inched up to a five-month high of 3.44% in October from 3.4% in the previous month and 3.41% a year prior.

This was the highest bad loan ratio since 3.46% in May 2023.

The Bangko Sentral ng Pilipinas (BSP) last month kept its policy rate unchanged at a 16-year high of 6.5% for a second straight meeting.

The central bank raised benchmark interest rates by a cumulative 450 basis points from May 2022 to October 2023 to help bring down elevated inflation.

Even as the market expects the Philippine central bank to begin easing its policy stance within this year, BSP Governor Eli M. Remolona, Jr. last month said they are unlikely to cut rates in the coming months and is leaning towards keeping borrowing costs higher for longer until inflation is comfortably within their 2-4% annual target.

In the first 11 months of 2023, headline inflation averaged 6.2%, still above the BSP’s 6% forecast and 2-4% goal for the year, latest government data showed. — A.M.C. Sy

Elvis Evolution will use artificial intelligence (AI) and holographic projection, augmented reality and live theater to recreate events in Presley’s life and music, said Layered Reality, the immersive entertainment company developing the show.

“It’s going to be a joyous celebration of Elvis’s life; the man, the music, and his cultural legacy,” Layered Reality founder and chief executive Andrew McGuinness told Reuters.

Visitors will be taken on a journey from Tupelo, Mississippi, where Presley was born in 1935, to Memphis, Tennessee, home of Graceland, and Las Vegas.

“The crescendo of the experience is an AI performance by Elvis,” he said.

Layered Reality struck a deal with Authentic Brands Group, owner of the Elvis Presley estate, to develop Elvis Evolution.

The British company was given access to thousands of the star’s personal photos and hours of home-videos to create the new performances using AI, Mr. McGuinness said.

Global interest in the singer, widely acclaimed as the bestselling solo music artist of all time with more than 500 million records sold, is undimmed 46 years after he died aged 42.

Baz Luhrmann’s biography Elvis, released in 2022, created a new generation of fans, while Sofia Coppola’s 2023 Priscilla explored his complex relationship with his wife.

Mr. McGuinness said Elvis Evolution would appeal to both die-hard fans and those curious to discover more about the “Can’t Help Falling in Love” singer.

After London, Elvis Evolution will travel to cities including Las Vegas, Tokyo, and Berlin, he added. — Reuters