BusinessMirror December 25-26, 2023

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Monday-Tuesday, December 25-26, 2023 Vol. 19 No. 74

CHRISTMAS COMES EARLY TO CACAO LAND

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Davao region farmers cement their slot among the world’s best cacao producers, making the South the country’s chocolate paradise.

By Manuel T. Cayon

HEN cacao growers from a remote northern farm in Davao City broke through a phalanx of 222 entries from across the globe to barge into the esteemed group of the world’s top 50 cacao producers, not only did it bring pride to the Philippines, but it also sent electric jolts of inspiration and fortitude to small farmgrowers, empowering them to stand tall.

The inclusion of Saloy Organic Farmers Association (SOFA) in the top 50 best cacao producers in the world was actually its second break on the world stage, having also entered the list last year.

Its journey will continue though towards February 8 next year, when the award-giving organization Cacao of Excellence proceeds to selecting the Gold, Silver and Bronze awardees, during the Amsterdam Cocoa Week and as part of the Chocoa Trade Show, Chocolate Makers’ Forum, Conference and Chocolate Festival.

The final awarding day of the Cacao of Excellence Awards will also be the event to unite the world’s best cacao producers, with

bean-to-bar chocolate makers and industry leaders.

Triumph of small farmers

SALOY’S triumph also mirrors the unique unity displayed by the stakeholders, from the other individual farmers and other small cacao producers’ associations to processors and marketing groups to buyers and government agencies like the Department of Agriculture.

Celso C. Vergara, an information officer at the Regional Agriculture and Fisheries Information System (DA Rafis), said the award demonstrated the inclusivity of the recognition “because it’s everyone’s Continued on A2

SALOY Organic Farmers Association (Sofa) INSTAGRAM.COM/AUROCHOCOLATE

PESO EXCHANGE RATES n US 55.6860 n JAPAN 0.3919 n UK 70.6767 n HK 7.1317 n CHINA 7.7980 n SINGAPORE 41.9923 n AUSTRALIA 37.8720 n EU 61.3214 n SAUDI ARABIA 14.8452 Source: BSP (December 22, 2023)

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try (PCCI), said, “I think the electronics sector is the one that will push up the numbers.”

“The US economy, if you noticed, is bouncing back especially in the electronic sectors because AI [artificial intelligence] is now popular and these are all really electronics, so it is being hyped and the stock market seems to reflect it. So definitely, the exports of which, what I hear from this sector is that they are filling up their capacity.”

This, he said, even as the Semiconductor and Electronics Industries of the Philippines Inc. (Seipi) revised its projection from flat to a decline of around 9 to 10 percent in exports for 2023, compared to the industry’s $49-billion export sales in 2022.

The Seipi head noted that the board decided to lower the industry’s growth projection for this year on the back of inventory correction issues and global headwinds.

But aside from electronics, Barcelon said some export sectors have been “doing well,” including furniture.

“The garments were not really a major player but we do have our market in Europe because we have the GSP [Generalized Scheme of Preferences] Plus. So with GSP

HE country’s exports could grow 5 to 6 percent in 2024, with the electronics sector as the growth driver, according to an official of the Philippine Exporters Confederation Inc. (Philexport).

A statement issued by the umbrella organization of Philippine exporters on Friday said Philexport Chairman George T. Barcelon is hopeful that 2024 will be better compared to 2023 as the inflation issue “has been mitigated and fuel and commodity prices have gone down.”

“We are talking to some of the exporters, they are hopeful. Probably, if we can get a midpoint of 5 to 6 percent increase, I think it would be good. One of the key exports, in electronics, they [industry players] are expanding.... We may not immediately feel it, but they are expanding,” Barcelon said.

Barcelon, who’s also the outgoing president of the Philippine Chamber of Commerce and Indus-

Breaking down the AI chatbot frenzy: 4 crucial insights from 2023

By Eric Smalley

appearance, its feel, its weight and, consequently, how we can use it: for wrapping a sandwich,” they explained.

This knowledge means people also intuitively know other ways of making use of a sandwich wrapper, such as an improvised means of covering your head in the rain. Not so with AI chatbots. “People understand how to make use of stuff in ways that are not captured in language-use statistics,” they wrote.

formation scientist Chirag Shah explains that large language models perform well as information summarizers: combining key information from multiple search engine results in a single block of text.

But this is a double-edged sword.

This is useful for getting the gist of a topic—assuming no “hallucinations”—but it leaves the searcher without any idea of the sources of the information and robs them of the serendipity of coming across unexpected information.

“The problem is that even when these systems are wrong only 10% of the time, you don’t know which 10%,” Shah wrote. “That’s because these systems lack transparency— they don’t reveal what data they are trained on, what sources they have used to come up with answers or how those responses are generated.”

2. Lack of judgment

4. Not 100% artificial

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The Conversation

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ITHIN four months of ChatGPT’s launch on November 30, 2022, most Americans had heard of the AI chatbot. Hype about—and fear of—the technology was at a fever pitch for much of 2023.

OpenAI’s ChatGPT, Google’s Bard, Anthropic’s Claude and Microsoft’s Copilot are among the chatbots powered by large language models to provide uncannily humanlike conversations. The experience of interacting with one of these chatbots, combined with Silicon Valley spin, can leave the impression that these technical marvels are conscious entities.

But the reality is considerably less magical or glamorous. The Conversation published several articles in 2023 that dispel several key misperceptions about this latest generation of AI chatbots: that they know something about the world, can make decisions, are a replacement for search engines and operate independent of humans.

1. Bodiless know-nothings

Large-language-model-based chatbots seem to know a lot. You can ask them questions, and they more often than not answer correctly.

Despite the occasional comically incorrect answer, the chatbots can interact with you in a similar manner as people—who share your experiences of being a living, breathing human being—do.

But these chatbots are sophisticated statistical machines that are extremely good at predicting the best sequence of words to respond with. Their “knowledge” of the world is actually human knowledge as reflected through the massive amount of human-generated text the chatbots’ underlying models are trained on.

Arizona State psychology researcher Arthur Glenberg and University of California, San Diego cognitive scientist Cameron Robert Jones explain how people’s knowledge of the world depends as much on their bodies as their brains.

“People’s understanding of a term like ‘paper sandwich wrapper,’ for example, includes the wrapper’s

ChatGPT and its cousins can also give the impression of having cognitive abilities—like understanding the concept of negation or making rational decisions—thanks to all the human language they’ve ingested. This impression has led cognitive scientists to test these AI chatbots to assess how they compare to humans in various ways.

University of Southern California AI researcher Mayank Kejriwal tested the large language models’ understanding of expected gain, a measure of how well someone understands the stakes in a betting scenario. They found that the models bet randomly.

“This is the case even when we give it a trick question like: If you toss a coin and it comes up heads, you win a diamond; if it comes up tails, you lose a car. Which would you take? The correct answer is heads, but the AI models chose tails about half the time,” he wrote.

3. Summaries, not results

While it might not be surprising that AI chatbots aren’t as humanlike as they can seem, they’re not necessarily digital superstars either. For instance, ChatGPT and the like are increasingly used in place of search engines to answer queries. The results are mixed.

University of Washington in-

Perhaps the most pernicious misperception about AI chatbots is that because they are built on artificial intelligence technology, they are highly automated. While you might be aware that large language models are trained on text produced by humans, you might not be aware of the thousands of workers—and millions of users— continuously honing the models, teaching them to weed out harmful responses and other unwanted behavior.

Georgia Tech sociologist John P. Nelson pulled back the curtain of the big tech companies to show that they use workers, typically in the Global South, and feedback from users to train the models which responses are good and which are bad.

“There are many, many human workers hidden behind the screen, and they will always be needed if the model is to continue improving or to expand its content coverage,” he wrote.

This article is republished from The Conversation under a Creative Commons license. Read the original article here: https://theconversation. com/chatgpt-and-its-ai-chatbotcousins-ruled-2023-4-essential-reads-that-puncture-thehype-220035.

Plus, there are about 6,000 items that give the Philippines an advantage without tax. This has been highly used by our exporters so those factors can really boost up the export,” he said.

Barcelon sees a rise in the country’s exports next year after total value exports declined by 7.8 percent in January to October 2023, compared to the same period last year amid the global economic slowdown.

By commodity group, electronic products accounted for 56.9 percent of the country’s total exports in October 2023, data at the Philippine Statistics Authority show.

Christmas comes early to Cacao Land Continued from A1

labor and work at the cacao industry in Davao City and the Davao Region.”

For example, he said, the Puentespina family’s Malagos Garden worked tirelessly with other stakeholders to uplift the Saloy cacao cooperative into a world-class operation, being a practitioner of Good Agricultural Practices. The Malagos Garden itself has been an international awardee on several occasions in European awards.

Saloy’s award likewise shows that small growership and farmholding should not hinder the quest for international recognition, partnerships, and even securing top awards if necessary.

The regional DA office extended an invitation early this year to all cacao growers to participate in the awards, with Saloy among the prospects due to its adherence to Good Agricultural Practices. Vergara added that other associations and cooperatives could have been worthy competitors as well.

For the last five months, the DA collaborated with stakeholders and the Saloy cooperative to ensure their successful entry into the finals. Throughout the process, from filing the application to processing requirements, all stakeholders supported the Saloy farmers in their quest for global recognition.

Cacao industry

THE Davao Region continues to be the primary cacao producer in the country, contributing approximately 85 percent to the total national production.

The Philippine Statistics Authority (PSA) recorded a Philippines total production of 9,341 metric tons of cacao beans in 2020, with 7,258 MT of it coming from the Davao region alone. A nonMindanao region, Central Luzon, was second at 338 MT, and Zamboanga Peninsula retrieved Mindanao’s production dominance with cacao bean production of 329 MT. The DA Davao Region recorded a steady increase in hectarage planted to cacao, turning in fivefold expansion in more than one decade. From 4,958 hectares in 2010, cacao farms now have an aggregate total of 19,980 hectares.

Davao del Norte, Davao del Sur and Davao City were dominating the race for expansion of total area

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By Andrea E. San Juan

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Exporters group says electronics sector key to 5%-6% PHL export growth in ’24

planted to cacao, with Davao del Sur claiming the lead in the years 2010 to 2013 (at 1,355 hectares by 2013), dethroned by Davao City in the years 2014-2017 (at 3,765 hectares by 2017) and then Davao del Norte in the years 2018-2020 (at 5,999 hectares by 2020).

Davao del Sur reclaimed its lead in 2021 and 2022, with 6,004 hectares.

Production tried to keep pace, though, but by as much as only threefold. In 2010, total regional production yielded 3,506.33 metric tons and with multiple fold expansion of land, production was hiked to 8,031 MT by 2022.

Aging trees, aging farmers

AGING trees may have contributed largely to the mediocre increase in yield through the years.

Ludy May Malto, the DADavao Region’s alternate cacao focal person, said many farms in the region are aging, and while some of open spaces were planted with the procured seedlings during the expansion spree, “these were three years ago yet, and majority of the farms have trees that are more than 20 years.”

She said the region last bought cacao seedlings during the years 2016 to 2019 and these were distributed to cacao farmers while expansion was still going on.

“Right now, we are concentrating on production,” she added, “and rehabilitating the senile trees to increase further the current yield.”

The Department of Agriculture has supplied essential tools like pruning shears and pruning saws, as well as fertilizers, addressing the financial burden on farmers who often struggle to afford these neces-

sities, particularly fertilizers, which have seen increased costs following the Ukraine-Russia conflict affecting gas and oil-based products.

“Since we are not an oil-producing country, fertilizers have to be imported and at a steeper price than before the Ukraine-Russia conflict,” Vergara said.

“We have to provide them the assistance to encourage them to restore the productive strength of the old trees.” Malto added.

Mixed cropping or crop diversification is also offered to farmers to derive income from other crops other than or while waiting for cacao yield. In this instance, cacao is suggested to be mixed with coconut.

“They are willing to help themselves in rehabilitating the old trees,” Malto said.

But another drawback lies with the farmers, too. “Many of them are also aging, and the problem is that their children are not keen on carrying on the farming tradition and farm ways of life of their parents.”

“Many go to the cities to find work or continue their education in courses unrelated to farming and agriculture,” she said.

The DA has been trying to help by putting up scholarships in agriculture courses.

The cacao industry is displaying signs of growth and optimism for the future, expanding to various regions. Despite being modest in scale, many provinces are motivated to revitalize their previously neglected but mature cacao trees.

In the near future, the Philippines aims to gradually address the significant supply shortage in the global cocoa and chocolate market, she said.

Monday-Tuesday, December 25-26, 2023

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

ANTA Sports headquarters in Jinjiang

CONVERGENCE of AI and IoT at Unisound’s Xiamen technopark

SM City Jinjiang’s anchor store is Walmart, America’s largest grocery

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ZHONGSHAN Road near Xiamen Ferry

Why the Chinese are successful in business Story& photos by Joseph Araneta Gamboa

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INCE the start of the 21st century, Filipino Chinese businessmen have dominated Forbes Asia’s list of the “Philippines’ 50 Richest” in terms of net worth. Every year, the list is being compiled using financial information obtained from the stock exchanges, analysts, and other sources. Net worth is based on stock prices and exchange rates as of the close of markets on a particular cut-off date.

Recently, a group of Filipino journalists embarked on a trip to Fujian Province in southern China organized by the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII). Upon the invitation of FFCCCII President Dr. Cecilio Pedro, I joined the media visit primarily to get a better insight into why it seems the

entrepreneurial spirit is very strong in the Chinese culture.

Major it y of Fi l ipi no C h i nese families originally came from Fujian Province in southern China. Their ancestors migrated to the Philippines between the 16th and 20th centuries.

These include some of our country’s Presidents as well as the taipans who play a leading role in Philippine business. Even our National Hero, Jose Rizal, traces his roots to the city of Jinjiang, where we visited a park named after him as the site of his monument that’s a bigger replica of the one at Luneta.

Our tour also covered the cities of Xiamen, Fuzhou, and Quanzhou on the eastern seaboard of Fujian Province. Aside from the temples and museums that showcased the Chinese civilization, we toured the high-tech facility of Unisound, a major startup

company specializing in artificial intelligence; Fujian Media Group, a state-owned media conglomerate; Fujian Normal University, a century-old educational institution where a good number of Filipino scholars study Mandarin; and Anta Center, the headquarters of the world’s highestearning sports equipment company.

An important port over the past centuries, Xiamen, a coastal city formerly known as Amoy was one of China’s earliest special economic zones that were set up in 1980 along with the cities of Shenzhen, Shantou, and Zhuhai in Guangdong Province.

Now one of the most sophisticated metropolis in Southern China, Xiamen is also where we toured the facilities of Unisound—the top AI unicorn startup in China specializing in speech recognition and Internet of Things (IoT) services.

Using the machine learning platform, Unisound has established a technology system in the fields of big data analysis, voice technology, knowledge computing, and language technology. It was quite an eye-opening experience for our group to get a first-hand glimpse of how this fascinating company operates.

In Fuzhou, we visited the facilities of the Fujian Media Group also known as the Fujian Radio Film and Television Group, a regional network consisting of Fujian Television, Fujian People’s Radio Station, and Fujian Film Production. With advanced and cutting-edge media technology, the state-owned conglomerate is considered a leader in media innovation.

Equally fascinating is the headquarters of Anta Sports in Jinjiang, Quanzhou that houses what is now considered the world’s largest sports

equipment company in terms of revenue. Although known mostly for its running and basketball shoes, Anta is also the third-largest manufacturer of sporting goods overall, just behind, yes, Nike and Adidas. The company has grown by leaps and bounds since its founding in 1991 that it now even houses its own Anta Museum that chronicles the company’s rich history and meteoric rise.

In our tours of these companies and cities, I observed that the people, especially the top executives we interacted with, practiced the traditional Confucian values of hard work, self-discipline, and frugality. They are almost one in telling us that at an early age, Chinese parents teach their children that entrepreneurship is more important than employment.

They believe that having one’s own business is the key to a successful life,

unlike most Filipinos whose parents teach them to find a good job instead of starting a business.

This is reflected in the Chinese business principle of being content with low profit margins while aiming for high sales volumes. Such a practice is not easy because it requires a lot of patience and commitment. If we look at the history of the top Philippine companies, their owners started with low profit margins but focused on increasing their sales volumes—and look where they are today.

All over Southeast Asia, overseas Chinese businessmen have attained exceptional success due to cultural practices such as family involvement, financial support, and social networking. Filipinos should therefore emulate the cultural traits of these entrepreneurs who value thrift, savings, and achievement-oriented education.

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Peza targets ₧202B-₧250B worth of investments in ’24

By Andrea E. San Juan @andreasanjuan

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HE Philippine Economic Zone Authority (Peza) said it wants to achieve P202 billion to as much as P250 billion worth of investments in 2024. It described this goal as the level of investment approvals posted by the agency during the leadership of a former Peza chief who served four administrations, which was deemed as the agency’s “peak years” in terms of investment approvals.

“We’re looking at P202 billion in investments by 2024 and this early I would say it’s still conservative,” Peza Director General Tereso O. Panga said at the yearend report briefing of the investment promotion agency held in Pasay City on Friday.

The Peza chief noted, however,

that the agency wants to achieve a high-end target of over P250 billion worth of investment approvals because he said this “will bring us back to the peak levels of Peza during the time of Atty. Lilia B. de Lima when we were hitting P250P300 billion.”

De Lima’s tenure spanned from

1995 during the presidency of Fidel V. Ramos to 2016, as she was “subsequently” reappointed by Presidents Joseph Ejercity Estrada, Gloria Macapagal-Arroyo, and Benigno S. Aquino III. “Because even Secretary Go pointed out that it would appear that we’re on a decline, but we’re out here to prove that we can regain that status,” Panga noted.

In 2023, Panga said the Peza Board approved P175.71 billion worth of investments, up 24.88 percent from the P140.70 billion recorded in 2022.

These investments are equivalent to 233 projects.

Pa nga stressed t hat t his could result in $4 billion worth of exports and could generate 40,527 jobs.

Of the 233 approved projects, Peza noted that 116 are on exports; 42 are on IT; 18 on logistics; 6 on domestic market; 30 are ecozone facilities; 2 are ecozone utilities and 19 on ecozone development.

Among the approved projects, the five top big-ticket investments are Raedang International Builders and Developer Corp. in North Cebu Economic Zone with

Creation of OSAPIEA will speed up devt plan’s pace–Neda chief

By Cai U. Ordinario @caiordinario

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ALACAÑANG’S decision to create the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) could improve the country’s chances of attaining the Philippine Development Plan (PDP).

Socioeconomic Planning Secretary Arsenio M. Balisacan said this is possible if OSAPIEA Frederick Go could make the government move more “efficiently and effectively” especially when it comes to the needs of investors.

Balisacan said he does not consider himself “demoted” with Go’s appointment and reiterated that his position as Neda Secretary is “not an

exercise of power” and that Secretaries only serve at the pleasure of the President.

“I don’t see my job as an exercise of power. What I wanted to do is to get things done. If this whole arrangement will make us deliver what’s expected of us, then that’s good,” Balisacan told reporters.

“But of course, we’ll have to [figure out] the work program, what are the expectations, what are the arrangements all in the interest of making this better, make it more efficient,” he added.

Balisacan also said he does not believe that the creation of the OSAPIEA will create another layer in the bureaucracy. He said he still believes in the President’s wisdom in deciding to create the office.

He said as government,

there is a tendency for agencies to operate in boxes and it can sometimes be a challenge for an oversight agency like Neda to collect data from these boxes.

The Neda Secretary said what should be emphasized is the need to work together, approach investment issues from a whole of government approach. A businessman like Go can identify and address gaps.

“I guess the intent there is that there are many issues in the private sector, whether our own private sector or foreign, it’s always said that it’s so hard to set up a business in the country, there are so many regulations, there are many inconsistencies in regulatory policies,’” Balisacan said, partly in Filipino.

Balisacan said the

P27.178-billion project cost; Green Energy with Torrefaction Technology Inc. in Gensan Economic Zone with P19.701-billion project cost; Philippine Manufacturing Co. of Murata Inc. with P12.423-billion project cost; Dyson Electronics PTE. LTD.-Philippine Branch with P12.306 billion and TI (Philippines) Inc. with P11.740 billion project cost.

From 1995 to 2022, Peza said the top ecozone locator investments originated from Japan, accounting for 27.34 percent; Philippines, 23.19 percent; United States, 14.82 percent; Netherlands, 11.68 percent; United Kingdom, 6.84 percent; Singapore,4.09 percent; and Korea, 3.3 percent.

In terms of sectors, Electronics/semiconductors accounted for 34.38 percent share of the ecozone investments; IT services, 12.45 percent; metals/fabricated metal products, 8.66 percent; Tourism, 7.09 percent; Transport, 5.54 percent; Electrical machinery and apparatus,5.08 percent; Medical, precision and optical instruments, 2.09 percent; among others, during the said period.

Economic Development Group (EDG) has yet to meet.

However, he said the meeting could occur in January 2024.

Earlier, President Ferdinand R. Marcos Jr. created a new office to serve as the government “troubleshooter” for its investment and economic priorities and initiatives.

In his three-page Executive Order (EO) No. 49, the chief executive created the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) under the Office of the President (OP).

Among its main functions is to coordinate with the EDG in identifying problems in the implementation of priority economic initiatives of the Marcos administration.

It will also provide relevant and strategic advice on economic concerns to the President, ensure the timely execution of priority economic initiatives of the government as well as the realization of investment pledges.

Business priorities as we move into 2024

seeing them as key players and mediators, at the center of the action. Additionally, Gen Z is introducing a few new trends to the workplace: n More flexibility. Gen Z is pushing for more work-life balance, including the ability to shift around the 9-to-5 schedule, picking up the workload at night or over the weekend. n Increased purpose. Gen Z is trying to find a job that gives them a deep sense of purpose—not just a livelihood. Bonus points if it’s a job that also helps people.

By Henry J. Schumacher

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HERE is no question that being a CEO is a tough job and is getting tougher all the time. Here are some priorities that executives should follow as we move into 2024:

Making generative AI work for you

IT’S probably no surprise that generative AI—which has taken the world by storm since the launch of ChatGPT—is front of mind.

Over the past year, there's been a ton of hype around innovations in the space—from a host of new chatbots to image generators. Next year though, enterprises will have to focus on how to best use it, how to scale that up and what it'll mean for their industry.

Being a “digital leader” not a “digital laggard”

FIGURING out how to actually leverage tech innovation, whether that’s AI or a new software platform, is a longstanding issue. A key element to success: leadership commitment to the time and money it takes to make the digital transformation work.

Spending money to go green

SIMPLY put, our planet is getting hotter. Companies stand to benefit from becoming more sustainable. What needs to happen is the creation of thousands of new green-technology businesses. We see this development already happening now; plenty companies are focusing on “green” investments.

Valuing your middle managers

THE mantra among some major corporations this year: there are too many “managers managing managers,” as Meta CEO Mark Zuckerberg put it. However, middle managers aren't just there to bloat the company's ranks, companies can actually benefit from

Planning for unpredictable geopolitics

NO company exists in a silo from the outside world, but it’s hard to prepare for major global happenings.

One suggestion: companies should map out three types of possible issues and how to react. One is “black swans,” unpredictable events likely to have a high impact like wars in the Ukraine or Israel/Gaza, or shipping attacks in the Red Sea. The second: “gray rhinos,” events that are probable and have a high impact (like the risk of escalating regional conflict).

The third: “silver linings,” or openings companies can use to leverage a competitive advantage.

Accepting macroeconomic uncertainty

“NEARLY four years after Covid-19 rewrote history, some CEOs are still waiting for macroeconomic certainty. That’s unlikely to happen. Lean into the uncertainty, like investing near the bottom of cycles, as well as making sure to plan for different scenarios.

In conclusion: My advocacy background is built on the premise that all businesses in the Philippines will do well if a level playing field is created. A level playing field provides ‘Juan de la Cruz’ with quality products and services at competitive prices!

Four areas need to be addressed to create the level playing field: 1. Clean business (ethical business practices) 2. Fair competition (anti-trust) 3. Equal taxation (remove unfair taxation to attract more investments) 4. Equal opportunity for all investors (remove economic provisions that limit foreign investors).

Last message for 2024: See the big picture before anyone else does!

I am looking forward to your reactions; email me at hjschumacher59@gmail.com

‘No order yet to study economic Charter change’

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EMOVING economic restrictions in the Constitution could allow the country to take advantage of economic opportunities in the next few years, according to the National Economic and Development Authority (Neda).

Socioeconomic Planning Secretary Arsenio M. Baliasacan said, however, that the Neda has not yet received any instruction

to study the conduct of an economic Cha-cha.

Balisacan said the Neda still needs to see the proposals from the House of Representatives before he can determine the impact of an economic Cha-cha.

“Clearly, the second you remove all these restrictions, particularly constitutional restrictions, it’s good for the economy because we knew all along these restrictions have prevented us from moving as fast as we want to,” Balisacan said.

The Neda Secretary said the government was able to remedy these restrictions through recent amendments to the Public Service Act (PSA) as well as the liberalization of the Negative Foreign Investment List (NFIL).

The PSA allowed foreign investments in

sectors previously deemed public services such as telecommunications; distribution and transmission of electricity; petroleum and petroleum products pipeline transmission systems; and seaports, among others.

The recent amendments in the NFIL liberalized the practice of professions such as teaching. Balisacan lamented that the Philippines was late in this regard since the liberalization came after many top universities put up campuses in Asia.

“Just for education, we missed so many opportunities when major universities around the world were setting up shop, schools in Malaysia, Vietnam, Thailand. It should have been us,” Balisacan said.

Earlier, President Ferdinand R. Marcos Jr. said he is more

interested in reviewing existing business-related laws rather than amending the 1987 Constitution to make the country more “investment friendly.”

He made the remark when asked if he supports the push of the House of Representatives to amend the 1987 Constitution.

Rather than the Constitution, he said, it is the laws, which are derived from it, which cause “opportunity cost” for investors, making the country non-viable for them.

This was after House Speaker Ferdinand Martin G. Romualdez announced that they will push for the constitutional amendments next year. The lawmaker said he wants to “lift the restrictive” economic provisions of the Constitution.

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PHL imports 120,000 MT onions, garlic to fill local need–BPI data Jasper Emmanuel Y. Arcalas

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@jearcalas

HE Philippines has imported almost 120,000 metric tons (MT) of onions and garlic to augment its domestic supply to meet its domestic requirement for the spices, latest Bureau of Plant Industry (BPI) data showed.

Latest BPI data showed that as of December 7, the country has imported a combined volume of 119,427.999 MT of red and yellow onions, as well as garlic.

Of the total volume, 8 6 ,19 4 . 257 M T were g a rl ic , while the remaining 33,233.742 MT were red and yellow onions, according to BPI data.

BPI data showed that the total garlic volume arrived in the country is only about half of the 168,869.5 MT of garlic it approved for importation since January. The BPI has issued 3,402 sanitary and phytosanitary import clearances (SPSICs) for the importation of the said volume.

To date, about 2,177 SPSICs or nearly 64 percent of the total approved SPSICs have been used by private traders and importers to bring in garlic to the Philippines.

This leaves some 1,225 SPSICs unused as of December 7.

Last year, the countr y’s garlic self-suf f icienc y ratio fel l to a record low of 5. 5 percent a s tot a l impor t volu me rose to a record h igh of 102,0 60.4 M T,

accord i n g to t he Ph i l ip pi ne St at ist ics Aut hor it y (PSA).

Earlier this year, the Department of Agriculture (DA) said Filipinos prefer to buy imported garlic since they are cheaper than the locally produced ones. The Philippines has relied on imports to meet its total garlic requirement as domestic output was insufficient in the past decades.

Latest DA price monitoring report showed that imported garlic sold in Metro Manila markets was priced between P120 and P200 per kilogram while locallyproduced garlic is around P500 per kilogram.

Historical PSA data showed the Philippines recorded its lowest garlic output last year at 5,884.93 MT since 1990, when the state statistical agency collated production figures for the commodity.

Historical PSA data showed the earliest recorded year that the country imported garlic was in 1991, even before the Philippines acceded to the World Trade Organization (WTO). Since 1996, when the country became part of

PHOTO BY NONOY LACZA

the multilateral trading system and liberalized much of its local agricultural industries, the Philippines has been importing garlic consistently.

Onions

L ATEST BPI data showed the bulk of the total onions that entered the countr y as of December 7, or about 22,322.753 MT, were yellow onions while the remaining 10,910.989 MT were red onions.

The BPI issued 654 SPSICs for imported yellow onions this year with a total approved volume of 31,032.655 MT. The BPI did not issue SPSICs for yellow onion imports from February to April due to the harvest season.

BPI data indicated that almost 72 percent of the import volume applied by private traders and importers have arrived in the country as of December 7.

Meanwhile, BPI data showed that it issued a total of 485 SPSICs for the importation of 24,093.5 MT of red onions. The BPI did not issue SPSICs from February to July and in October. BPI data also showed that only 45.29 percent of the total approved red onion import volume entered the country to date.

The Philippines suffered an onion “crisis” late last year until early this year. The state limited the entry of imported stocks as it prioritized domestic producers.

As with garlic, the country has imported onions in recent years to satisfy its total domestic requirement for the commodity.

The DA earlier projected that the country will suffer a three-day onion shortage at the end of the year as total supply of 285,781 MT falls short of meeting the 288,018 MT total estimated demand. The country’s estimated onion supply deficit is at 2,237 MT.

DA tags 12 more provinces avian influenza-free this year

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HE Philippines declared 12 provinces free from avian influenza (AI) this year, bringing to 14 the total number of areas that have recovered from the transboundary animal disease.

The Department of Agriculture (DA) recently declared the provinces of Isabela and Maguindanao as free from AI, becoming the two latest areas in the country to regain their freedom status from bird flu.

I s abe l a a nd M a g u i nd a n ao are the 11th and 12th provinces declared AI-free by the DA this year.

Agriculture Secretary Francisco P. Tiu Laurel Jr. issued Memorandum Circulars (MC) 55 and 56 that formally declared Isabela and Maguinao free from AI, respectively.

In both MCs, Laurel explained that in both provinces more than 90 days have elapsed since the end of the cleaning and disinfection operations in those two places, and recent surveillance activities have yielded negative AI test results.

The first AI outbreaks in Isabela were recorded in November last year while cases in Maguindanao were detected in May 2022, according to the DA. Isabela and Maguindanao join the growing list of provinces that have regained freedom status from AI. The DA started declaring AIfree provinces last year, with Camarines Sur and Davao Del Sur being the first two.

Latest Bureau of Animal Indus-

try (BAI) data as of December 15 showed the remaining ongoing bird flu cases in the country are down to two barangays in two provinces.

These cases are located in the City of Balanga in Bataan and in Concepcion in Tarlac, both of which affect duck farms. Each municipality has only one affected farmer.

Furthermore, BAI data showed the number of remaining cumulative municipalities that have reported AI cases nationwide has already reached 95.

However, 66 of these do not have reported cases for more than 90 days already. BAI data showed that only one municipality or city has no reported case for 61 to 90

days; and another municipality or city has no reported case for 31 to 60 days.

BAI data also showed that at least 25 cities and municipalities have already recovered from bird flu.

The BusinessMirror broke the story last year that the country lost its bird-flu free status after the government reported its first confirmed outbreaks of highly pathogenic avian influenza (HPAI) Type A subtype H5N1 that killed over 42,000 quails and ducks in four Central Luzon farms. (Related story: https://businessmirror.com.ph /2022/02/22/ phl-re por ts-ne w- a v ia n-f luoutbreaks-in-central-luzonfarms/) Jasper Emmanuel Y. Arcalas

Villafuerte hopes DA’s Laurel will pick up proposal to let govt sell rice at ₧20 a kilo

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HOUSE leader expects Agriculture Secretar y Francisco Tiu Laurel Jr. to continue interacting with the governors of the country’s biggest palay-growing provinces on how to dramatically boost the domestic supply of rice and pull down the retail cost of the staple beginning in 2024.

A former governor of one of the country’s Top 10 palaygrowing provinces, CamSur Rep. LRay Villafuerte expressed hope that the Department of Agriculture (DA) would consider, beginning next planting season, his game-changing subsidy-cumcontract-growing proposal for the government to start selling rice for as low as P20 a kilo in the coming year.

The president of the National Unity Party (NUP) hopes Laurel’s recent initiative to meet with the governors ahead of the next planting season would “give more reason for our agriculture officials and the rest of the Mr. Marcos’ economic team to give a long, hard look at an out-of-thebox proposal meant to enable the government to sell rice beginning in 2024 at the Presidentaspired retail price of P20 a kilo.”

Pulling down the retail cost of the staple is in sync with the commitment of Speaker Martin Romualdez to help President Marcos achieve his goal of making food more accessible and affordable for Filipino consumers, Villafuerte said.

At a Philippine Economic Briefing (PEB) organized recently by the President’s economic managers in Iloilo City, Romualdez said the House of Representatives “will not stop until the price of rice is within the reach of the poorest in society” and that the chamber is “exercising fully its oversight functions … to help the administration of President Marcos make food accessible and affordable to Filipinos.”

During Laurel’s CA hearing, Villafuerte, who is major it y leader of this bicameral appointments body, said at the plenary session that although farm productivity and sustainability was a very complex issue, the House contingent had decided to give its full support to the agriculture chief because of his proven “competence and integrity.”

Prior to his CA confirmation, Villafuerte had lauded Laurel for meeting with the local chief executives of the Top 10 palaygrowing provinces on how to boost harvests.

Villafuerte had proposed to

Rice prices scale fresh 15-year high as supply risks linger

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ICE prices reached a fresh 15-year high on mounting concerns that increased demand and the impact of El Niño will further tighten supplies of the grain that is a staple for billions across Asia and Africa.

Thai white rice 5 percent broken, an Asian benchmark, climbed 2.5 percent from the prior week to $650 a ton on Wednesday, according to the Thai Rice Exporters Association. That’s the highest level since October 2008.

Prices most recently rallied to that milestone in early August in the wake of sweeping export curbs from top shipper India and as dry weather threatened the Thai crop.

After retreating for most of September and October, price gains quickened in November. This could keep

food inflation elevated in the coming months, especially in rice-reliant countries like the Philippines.

India’s Prime Minister Narendra Modi is also concerned about accelerating food inflation before general elections next year. The cost of rice is increasing despite export restrictions, a good harvest and ample state stockpiles, according to the food ministry. The staple has risen about 12 percent annually in the past two years, and officials have asked millers to cut retail prices.

Thai Prime Minister Srettha Thavisin said this week Indonesia plans to buy 2 million tons from the country by the end of next year. Local millers delayed sales after the news on hopes of higher prices, said Chookiat Ophaswongse, an honorary president of the Thai Rice Exporters

the Marcos administration to provide a subsidy equivalent to P40,000 per hectare for small farmers tilling a million hectares (ha) combined in the country’s Top 10 palay-growing provinces, on condition that they then sell their produce to the government at P9 per kilo of palay.

This setup, he said, would enable the Marcos administration to sell 1.5 billion kg of rice to low-income and other vulnerable sectors at P20 a kilo in Kadiwa sa Pangulo outlets and another 1.5 billion kg at a higher P30 to other consumers all over the country.

Villafuerte said his proposal, which he hoped the newly confirmed DA secretary would consider in the next planting season, dovetails with the President’s renewed commitment during the recent 35th National Rice Conference in Nueva Ecija, to build more rural infrastructure and adopt the latest farming technologies to boost palay yields, cut imports and pull down the retail cost of the staple.

The Philippine Statistics Authority (PSA) reported recently that the average retail price of regular-milled rice (RMR) went up this December to P48.84 per kilo, with the market price reaching as high as P52.66 in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and as low as P43.79 in Western Visayas.

As for well-milled rice (WMR), meanwhile, the PSA reported a per-kilo spike to an average of P54.15, with the lowest rate recorded at P50.06 in the Ilocos Region and the highest at P57.75 in the Zamboanga Peninsula.

Villafuerte noted that a downside risk to 2024’s domestic palay output is the El Niño phenomenon of a prolonged dry spell, which Science and Technology Secretary Renato Solidum expects to peak in April, and affect about 63 provinces.

Defense Secretary Gilberto Teodoro Jr., who heads the National Task Force on El Niño, has said that President Marcos will soon issue an order on government preparations for this weather phenomenon.

Amid fears that the belownormal rainfall resulting from El Niño would reduce yields and further tighten global supplies in 2024, rice prices soared this week to a 15-year high of $650 per metric ton (MT) in the internal market, according to the Thai Rice Exporters Association.

Association, adding that the strong Thai currency also contributed to rising prices.

Looming supplies from Vietnam and Thailand may limit the potential for any sharp upside in the market, Chookiat said, noting Thailand has sufficient water reserves to guarantee a good second crop. High prices will also encourage farmers to expand planting, he said by phone on Thursday.

“Still, we expect the price to remain at pretty high levels early next year on lingering food security concerns and India’s ban,” Chookiat said.

The increase in the cost of the grain is in stark contrast to other staples—wheat and corn. The Thai white rice price is up 36 percent in the past year, while wheat futures in Chicago are down 20 percent and heading for the first decline in seven years. Corn futures have lost about 30 percent this year. Bloomberg News

Monday-Tuesday, December 25-26, 2023

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

Lacson: Nonveto of ₧450-B unprogrammed fund hike in ’24 budget sets bad precedent’

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EN. Panfilo Lacson said Friday the non-veto of a controversial P450 billion item tucked in additional “Unprogrammed Appropriations” in the 2024 budget could set a “bad precedent,” as he aired concerns over its impact on efforts to keep the budget process transparent and accountable.

Lacson said Congress could in the future add even P1 trillion or more to such fund category, diluting the transparency mechanisms in the use of state funds.

Lacson used to head the Senate’s Accounts Committee and was known as a foremost advocate of budget transparency.

“If not clarified by the Supreme Court’s interpretation of Art VI, Sec 25 of the 1987 Constitution, what can prevent Congress from adding P1 trillion or even more in the next succeeding budget deliberations, so we borrow more to fund the excess in the Unprogrammed Fund under the NEP?” Lacson asked in a statement shared with Senate reporters.

“Needless to say, this is a very bad precedent, especially so that Congress has developed the new penchant for realigning the budget to and from the Unprogrammed Appropriations,” he added.

To illustrate the point, Lacson added: “Under the 2022 GA A, Congress managed to realign to the Unprogrammed Appropriations under the Special Purpose Fund the amount of P100 billion; while under the 2023 GA A, they realigned a total of P219 billion to the Unprogrammed Appropriations.

“Under the same scheme of realignments,” Lacson recalled that “mostly done in the bicameral conference committee level, they also realigned hundreds of billions of pesos from the Unprogrammed Appropriations to the regular budget to fund their so-called “pet projects.”

Earlier, Senate leaders ex pressed confidence that President Marcos Jr w ill not veto the P450 -billion additional unprogrammed funds that Minority Leader Koko Pimentel had called illegal, as it was inserted after the bicameral conference committee.

Finance committee chairman Juan Edgardo Angara, however, defended the legality of the additional P450-billiion; and in this, he found unsolicited support from another legal eagle, former Senate President Franklin M. Drilon. Butch Fernandez

‘Polong’ Duterte bill expands PWD job slots mandate to private sector

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AVAO City 1st District Representative Paolo Duterte has proposed a measure to make it compulsory for private enterprises with more than 100 employees to allot at least one percent of their total positions to qualified persons with disabilities (PWDs).

Duterte said his proposal under House Bill (HB) 8942 will help ensure that PWDs get equal opportunities in terms of employment and career development.

Under Republic Act (RA) 10524, at least one percent of all positions in government agencies, offices or corporations shall be reserved for PWDs. Private corporations with more than 100 workers are merely encouraged to do the same under this law.

Duterte’s bill makes it obligatory for them to allot this job share to qualified PWDs. “PWDs with the necessary talents and skills have proven to be valuable assets in any enterprise. They deserve to be given the same opportunities to prove that they, too, are highly capable in performing the jobs they are quali-

fied for,” Duterte said.

Private corporations with less than 100 workers are encouraged to also reserve positions for qualified PWDs under Duterte’s bill.

“A significant population of PWDs experience disproportionately high poverty rates as they have additional expenditures related to their disability,” Duterte noted.

“Rather than exclude PWDs from the talent pool, we should be tapping their skills. On top of giving PWDs the opportunity to work and earn, companies also have the advantage of expanding their search for highly qualified job candidates instead of settling for non-disabled employees who lack drive and with mediocre skills,” Duterte said.

Under HB 8942, private firms which hire the required threshold for PWDs shall be entitled to tax credits to be deducted from their gross income.

The Department of Trade and Industry (DTI) is tasked under the bill to evaluate the compliance of private corporations on the hiring of PWDs.

NFW distributes Christmas goodies to troops in WPS

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AVAL Forces West (NFW) has facilitated the distribution of Christmas goodies and other essential supplies to the troops and communities located in the West Philippine Sea. In a statement Friday, NFW said these items were distributed to military personnel stationed in the Kalayaan Island Group and community in Pagasa Island.

“This special initiative, led by the naval ships BRP Jose Rizal (FF-150) and BRP Gregorio Del Pilar (PS-15), marked a crucial moment in the rotation and reprovisioning (RORE) operations, complemented by maritime patrol and sovereignty patrol activities in the WPS from December 11 to 18, 2023,” it added.

The RORE operation, combined with the vigilance of the maritime patrol and sovereignty patrol, ensured the seamless execution of the mission, highlighting the strategic coordination within the naval forces, NFW said.

“This integrated approach underscores the commitment of the NFW to maintain a strong and secure presence in the WPS. Moreover, this mission reflects the multifaceted efforts of the NFW to ensure the safety, security, and well-being of our military personnel in the WPS,” NFW said.

It added that this endeavor was made possible through the collaborative efforts of various Filipino organizations, partner stakeholders and generous well-wishers who rallied

A9

SC: All set for Judiciary Marshals Office’s start of operations in ‘24

By Joel R. San Juan @jrsanjuan1573

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HE Supreme Court’s Office of the Judiciary Marshals (SCOJM) is eying to start its operation by the first quarter of next year.

The creation of OJM is mandated under Republic Act No. 11691 or the Judiciary Marshals Act, which took effect in 2022.

Under that law, the OJM shall be primarily responsible for the security, safety, and protection of the members, officials, personnel, and property of the Judiciary, including the integrity of the courts and judicial proceedings.

A ssociate Justice Jose Mid as

Marquez, who is overseeing the formation of the office, said the SC has opened the positions of Chief Marshall and three deputy marshals who will lead the office.

Marquez said the OJM’s approved budget for 2024 is P200 million.

“They will be vetted including their background, capacities and abilities. We have to start this right.

Bring in the best individuals to head this office. So hopefully by first quarter of next year, we can appoint key officials. From there, we would gradually build the judicial marshal’s office,” Justice Marquez said.

The operationalization of the OJM is one of the goals of the Strategic Plan for Judicial Innovations

2022-2027, which is a brainchild of Chief Justice Alexander Gesmundo.

The SPJI lays down the plans, objectives and goals of the Court to increase efficiency, innovation, and access in the judiciary during the give-year period.

Among the qualifications for the Chief Marshal post are: natural-born citizen of the Philippines; preferably a member of the Philippine Bar; rank of at least a full Colonel in the Armed Forces of the Philippines (AFP) or the Philippine National Police (PNP) or Assistant Director in the National Bureau of Investigation (NBI), with experience in investigation in all instances For t he p o s it ion s of d e put y

marshals, who will be in Luzon, Visayas, and Mindanao, the qualifications are: natural-born citizen of the Philippines; rank of at least a full Colonel in the AFP or the PNP or Assistant Regional Director of the NBI, with experience in investigation in all instances.

However, the SC noted that under Sections 7 and 8 of the Judiciary Marshals Act, a Chief Marshal or Deputy Marshal may be appointed despite not having been a full Colonel of the AFP or the PNP, or an Assistant Director/Assistant Regional Director of the NBI, if he or she has a proven track record and adequate experience in investigation and law enforcement.

Romualdez lauds PBBM for ₧170-B actual investments from Japan visit

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PEAKER Martin Romualdez on Friday congratulated President Ferdinand Marcos Jr. for the successful outcomes of his Japan visit earlier this year, and vowed support in helping local enterprises in pursuing the business leads that these spawned.

He said this significantly bolstered the Philippine economy and created jobs for thousands of Filipinos.

The Department of Trade and Industry (DTI) recently announced that 22 percent, amounting to P170 billion, of the pledged investments from the visit have been realized. These investments stem from 34 letters of intent and agreements, contributing robustly to the country’s economic growth and job creation.

“We are witnessing the fruits of President Marcos’s strategic international engagements,” said Speaker Romualdez. “These investments are not just numbers; they represent hope, opportunities, and a brighter future for thousands of Filipinos.”

Key investments include the P4.4billion initiative by Murata Manufacturing for a new production building in Tanauan City, Batangas, creating 3,500 jobs and yielding $1.2 billion in exports. The groundbreaking of the P7-billion Hotel 101 project in partnership with Niseko and DoubleDragon Corp. marks another milestone, expecting to generate $126.7 million in sales revenue.

Noting the diversity of these investments, Romualdez highlighted the new Tamiya Corp. factory in Cebu, the renewable energy commitments from Renova Inc., and the environmentally conscious initiatives

by MinebeaMitsumi Inc. in their Cebu plant.

“These varied investments reflect our nation’s growing attractiveness as a global investment destination, capable of meeting the needs of diverse industries,” added Romualdez.

“They also align with our commit-

together to support the troops and the community in WPS during this holiday season.

“ATIN ITO Coalition, The National Youth Movement for the WPS, Rise Against Hunger, Las Piñas Horton Eagles Club, and financia l institutions based here in Pa lawan like PA FCPIC, ACDI, A MSW L A I, and PNSL A I are just a few of the many b e n e v o l e nt o r g a n i z at i o n s t h at played role in mak ing this initiative a rea lit y. T heir commitment to g iv ing back to the troops and communit y has touched lives of countless indiv idua ls, embody ing the true essence of the season. T he ATIN ITO Coa lition, initiated in October, elevated their dedication by embark ing on their inaug ura l jour ney to the W PS. T his demonstration underscores their steadfast endorsement of the nation’s leg itimate ter r itor ia l claim in the reg ion,” it noted. Rex Anthony Naval

ment to sustainable development and environmental stewardship.”

In total, these investments generated 9,700 jobs, contributing to the national employment rate and uplifting the lives of many Filipino families.

Malacañang also reported that the DTI-led business event during the President’s participation in the December 15-18 Asean-Japan Commemorative Summit in Tokyo, Japan resulted in P14.5 billion of indicated investments from Japanese businesses.

Together with the investment

agreement signed on February 2023 and the recently signed agreements, investment commitments from Japanese investors now aggregate P771.6 billion or about $14 billion, opening up 40,000 job opportunities for Filipinos, the President had reported.

At the signing of new agreements and updates on investment pledges, President Marcos said his administration continues to listen to issues, concerns, and suggestions of investors on “what needs to be done to continue supporting and ensuring their success in the Philippines.”

The President said he takes due

note of these “valuable feedbacks,” adding that they work closely with Congress to enact much-needed legislation” that would satisfactorily address such concerns.

“That is why the Speaker of the House of the Representatives of the Philippines is here, accompanying us, on what is essentially is a business delegation but because of the laws in the Philippines dictate that all revenue measures that are undertaken or new laws that are revenue measures must originate from the House of Representatives,” President Marcos told Japanese business leaders.

A10 Monday-Tuesday, December 25-26, 2023

TheWorld BusinessMirror

Editor: Angel R. Calso • www.businessmirror.com.ph

Hedge fund traders pump tens of billions of dollars, supercharge returns on bonds

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By Nishant Kumar, Donal Griffin & William Shaw

while Millennium almost fully recovered. By the end of March, Rossi was profitable again. He left LMR last year and founded Kedalion, a fund backed by Millennium.

Paul Tudor Jones, owner of the Tudor hedge fund, said recently that the Fed had “bailed out” his firm’s trades, which were under “extreme duress.” Tudor remains active today through Phillips, a onetime basketball star at MIT who joined last year.

Should a repeat happen, some hedge fund executives point to their large cash reserves, which can be used in emergencies.

ONATHAN HOFFMAN, John Bonello and Jonathan Tipermas share more than just similar first names. They’re the driving force behind a gigantic wager on government debt that’s been giving regulators sleepless nights.

They and their teams are top players in the “basis trade,” a bet by a few of the world’s biggest hedge funds that profits from the tiny price gaps between Treasuries and derivatives known as futures, people active in the market say. That makes them some of the most important individuals in finance today.

As part of a core group of 10 or so firms, they rely on vast sums of money borrowed from Wall Street banks—often 50 times what they invest themselves—to pump tens of billions of dollars into the trade and supercharge returns. So colossal are their bets that some say they’ve become central to the buying and selling of Treasuries, itself the cornerstone of global capital markets.

Hoffman, 51, of ExodusPoint Capital Management, Bonello, 52, at Millennium Management and Tipermas, 41, at Citadel have used the wager for years to produce gains that run into the billions, according to several people familiar with the traders who requested anonymity as the details aren’t public.

Others also do the trade at a vast size, the same people say, including Yan Huo and Ryan Letchworth at Capula Investment Management, Citadel’s Ivan Chalbaud, founder of Symmetry Investments Feng Guo and Steve Brown at Balyasny Asset Management. Lorenzo Rossi of Kedalion Capital Management is active, too, as is Alexander Phillips at Tudor Investment Corp.

This group is rarely in public view. But interviews with more than a dozen market participants and documents reviewed by Bloomberg point to their dominance of a wager that’s roared back to life this year. A senior Wall Street figure who’s worked for years with the core players estimates they account for roughly 70 percent of hedge fund basis-trade bets.

The firms and traders named in this piece all declined to comment.

Now regulators have the hedge funds in their sights, fearing a repeat of March 2020 when the bet blew up spectacularly—just before the Federal Reserve had to jump in to resuscitate the Treasury market. Last week the Securities and Exchange Commission, alarmed by the sheer scale of borrowing involved, voted in new rules that may make the economics of the trade less enticing.

But regulators are in a bind.

Crack down too hard and they could threaten the orderly running of a US Treasuries market that’s ballooned to $26 trillion since the pandemic. Go too easy and there’s the threat of too much financial leverage building up at these hedge funds. The size of the traders’ positions means the Fed may have to intervene if they hit trouble again.

“There are only a couple of players and these players have made themselves too big to fail,” says Kathryn Kaminski, chief research strategist at AlphaSimplex Group,

a Treasury investor. “If you limit this arbitrage, you weaken market liquidity.”

Levered up

Market makers

UNLIKE other vaunted hedge fund traders who make splashy bets on the direction of currencies or interest rates or wage high-profile campaigns against companies, Hoffman, Bonello and others quietly target differences in price between Treasuries and Treasury futures— closely linked derivatives that give investors the right to buy or sell the debt in the future.

For a mix of reasons the futures price is often higher than the bond’s, so the trader sells the former, buys the latter and pockets the difference. Because the gap is usually mere fractions of a penny this is only worth doing at scale, ramping up returns through the use of leverage. That largely limits the activity to a few trusted individuals at hedge funds with enough clout to borrow big from banks in overnight money markets.

As the availability of this shortterm lending has surged this year, the basis trade has boomed. The net short position on Treasury futures, a reasonable proxy for the wager’s popularity, has spiked to $800 billion from $650 billion in July, the Bank of England said on Dec. 6.

While it’s difficult to tell how much of this is held by the core trader group, the wager has become more concentrated this year. Eight or fewer traders are behind almost half of all bets against two-year Treasury futures, compared with 29 percent a year ago, data from the Commodity Futures Trading Commission shows.

Defenders of the trade such as Citadel’s Ken Griffin say the enormous volume of buying and selling by hedge funds means they’re helping to make the Treasury market efficient. Wall Street banks used to perform this critical “market making” role but have retreated because of new leverage rules imposed after the financial crisis.

Critics ask whether it’s wise to lean so heavily on a few hedge funds, pointing to Covid’s early days in March 2020 when market turmoil forced them to rapidly unwind their positions. That may have added to a sudden drying up of Treasury liquidity, and it left the basis traders staring at huge losses.

The Fed had to intervene to keep markets running, pledging trillions of taxpayer dollars.

The Fed’s rescue mission calmed the Treasury market and helped the traders recover. Bonello’s team at Millennium generated nearly $1.5 billion of profit in 2020, a record, and that year’s basis trade contributed to the $1 billion Hoffman has generated since joining ExodusPoint in mid-2018. Rossi, then at LMR Partners, turned millions of losses during that March into profit.

The 2020 episode may have fed a belief among some in the group

that the central bank will always ride to the rescue, market participants say. “There’s an implicit ‘Fed put’,” says Eric Rosenfeld, formerly of Salomon Brothers’ governmentarbitrage desk in the 1980s and a cofounder of Long-Term Capital Management, a hedge fund that imploded in 1998. But it’s not a question of “too big to fail,” he asserts, more that the “Fed is responsible for maintaining a liquid, free-flowing Treasury market.”

Gary Gensler, the SEC chair, told Bloomberg in October that if another meltdown happens, “It’s going to be the public that bears the risk.”

Lehman roots

THE group traces its roots to the same Wall Street banks that dominated the trade before the financial crisis. Some overlapped at the same firms and learned the wager from each other or the same mentors, people familiar say.

Hoffman joined Lehman Brothers in 1994 after studying at the University of Pennsylvania and rose the ranks as a Treasury trader. An old colleague recalls how he grasped the importance of the “repo” team—the bank unit that makes short-term loans in the overnight money markets—and was often seen standing next to the desk’s boss, peppering him with questions.

By the 2000s, Hoffman, known to colleagues as “H,” had moved to Lehman’s Miami office and was one of its best-paid employees.

His trades could be volatile but always seemed to pay off. In early 2008, fixed-income trading head Andrew Morton told the board that a team had lost $157 million in March, adding a single word to his presentation: “Hoffman.”

By year-end, “H” had turned the losses around and generated $550

million of revenue, filings show.

Bonello started as a Merrill Lynch salesman and became a trader after moving to Deutsche Bank AG in 2003. He joined Millennium three years later. Before 2020, he and his team of five to seven people had several years of making hundreds of millions of dollars in profit. The team has grown since.

Tipermas was a competitive wrestler at the Massachusetts Institute of Technology and a dollarswaps trader at Goldman Sachs Group Inc. before joining Citadel in 2014. His team of more than 20 makes on average hundreds of million of dollars yearly, people familiar say. Not all of these profits come from the basis trade. Most of the teams make other wagers as well, such as bond auctions and different punts on price gaps.

The core trader group has little online profile. But they have occasionally stepped into the public realm.

Hoffman sued Lehman in 2014, claiming the now-defunct bank owed him $83 million in pay. It emerged that Barclays Plc had already paid him $83 million to get him to join the UK bank and then awarded him $100 million for 2008 through 2010, filings show. A judge dismissed his claim. A private figure, he’s largely based in Pennsylvania, where he owns a $5 million house outside Philadelphia. He has plowed some of his fortune into a high-end property-lending business in Miami.

The more gregarious Bonello has since 2020 bought a $20 million Manhattan apartment next to Central Park and a $34 million Los Angeles mansion overlooking the Pacific, filings show. In 2006, while at Deutsche Bank, he was fined $20,000 to settle allegations by the Chicago Board of Trade that he’d engaged in “pre-execution con-

This group is rarely in public view. But interviews with more than a dozen market participants and documents reviewed by Bloomberg point to their dominance of a wager that’s roared back to life this year. A senior Wall Street figure who’s worked for years with the core players estimates they account for roughly 70 percent of hedge fund basis-trade bets.

versations.” He didn’t admit any wrongdoing.

Tipermas has a $5.6 million property in Connecticut and keeps a lower profile.

Some see Hoffman as the trade’s guiding light but its history goes back further. He learned the transaction at Lehman from Munir Dauhajre, a Wall Street veteran who also worked with Bonello and other basis traders, people familiar say. Dauhajre, in turn, picked it up from Suresh Sundaresan, a professor at Columbia University who also worked at Lehman for a time in the 1980s.

One market participant describes Sundaresan as the true intellectual godfather of the basis trade. In an interview with Bloomberg, the finance professor warned that the industry has become “more levered than ever before with the possible exception” of just before the financial crisis.

“Regulators’ concerns are fully justified,” he says. “My worry is that an exogenous shock may lead to margin calls, which may result in insolvencies or big losses for the hedge funds.”

March mayhem

UNLIKE other investors who bet on US debt, basis traders don’t have to form a view on the economy or fret over the Fed’s plan for rates.

They just need to wait for the price of the futures to drop to the level of the linked Treasury, something that almost always happens at the time the derivatives contract expires, and they can book a profit.

But things go wrong. Borrowing costs can spike overnight. Hedge funds can get demands for more collateral from banks. Even a small change can lead to “large cash outlays and in the worst-case scenario could lead to outright failure,” the US Office of Financial Research wrote in 2020.

All of this played out four years ago. Bonello’s team suffered more than $100 million in losses at one point in March 2020. Millennium, which has had just one losing year in more than three decades, was down as much as 5 percent at one stage.

ExodusPoint also faced heavy losses, the same people say. Tipermas’ Citadel suffered declines, too.

Others faced similar trouble. Rossi, then just 33, made more than $250 million for LMR in 2019, according to a person with knowledge of the matter, but as the March meltdown hit, his losses soared.

After the Fed stepped in, the basis trades bounced back. Citadel ended the month making money,

BASIS-TRADE bets can take days to complete, according to Howard Finkel, an industry veteran whose decades in finance included a stint at Millennium. This demands secrecy to stop rivals guessing what you’re up to, he says—one reason why the group is so private.

“It’s not like basis traders are one big happy family,” Finkel adds.

“When you have a huge trade on, if somebody gets wind of that, the wrong person, and they try to squeeze you, that’s your biggest fear.”

Enabling all this is the group’s abundant access to the magic ingredient that lets it happen: leverage. Wall Street giants such as JPMorgan Chase & Co. and Bank of America Corp. lend to them in massive volumes in exchange for fees.

Banks have only a fixed amount of leverage to dole out, so they tend to favor their best clients. Multistrategy hedge funds such as Millennium, Citadel and ExodusPoint are a perfect match because they have other high-turnover businesses attractive to Wall Street lenders.

The trade is “dominated by a few large hedge funds that have more balance sheet allocated to them based on how important they are,” says Martin Malloy, a professor at North Carolina’s Wake Forest University who helped lead businesses at Citigroup Inc. and Barclays that financed some of the funds.

For hedge funds, part of basis trading’s beauty is that they often borrow at “zero margin” from banks, meaning no extra collateral has to be put up and they can take more profit. The new SEC rules state that from 2026 repo deals will have to go through central clearing, increasing the margin requirement.

Whether this dims the wager’s allure is uncertain but some analysts say Treasuries will become harder to trade and more expensive.

This may create greater opportunities for the group even if they have to pursue them with less borrowed money, one person familiar with the industry’s workings says.

“Central clearing will mean higher costs for hedge funds,” UBS Group AG strategists wrote this month, “suggesting they’ll need price dislocations to be larger before they put on trades that provide liquidity to the market.”

The difficulty for policymakers, analysts say, will be fixing this fault line without causing tremors in US Treasuries, the world’s most important bond market.

“If we don’t allow regulated entities to make markets, then we set up this scenario, it’s evolution,” says Kaminski at AlphaSimplex, referring to the emergence of the basis traders on finance’s center stage.

“And if they do it in a systemically important market, they’re naturally going to have that too-big-to-fail angle.” With assistance from James Hirai and Liz Capo McCormick/Bloomberg

TheWorld BusinessMirror

www.businessmirror.com.ph

Monday-Tuesday, December 25-26, 2023 A11

Study says AI image-generators being trained on explicit photos of children

By Matt O’brien & Haleluya Hadero

H

The Associated Press

IDDEN inside the foundation of popular artificial intelligence image-generators are thousands of images of child sexual abuse, according to a new report that urges companies to take action to address a harmful flaw in the technology they built.

Those same images have made it easier for AI systems to produce realistic and explicit imagery of fake children as well as transform social media photos of fully clothed real teens into nudes, much to the alarm of schools and law enforcement around the world.

Until recently, anti-abuse researchers thought the only way that some unchecked AI tools produced abusive imagery of children was by essentially combining what they’ve learned from two separate buckets of online images—adult pornography and benign photos of kids.

But the Stanford Internet Observatory found more than 3,200 images of suspected child sexual abuse in the giant AI database LAION, an index of online images and captions that’s been used to train leading AI image-makers such as Stable Diffusion. The watchdog group based at Stanford University worked with the Canadian Centre for Child Protection and other anti-abuse charities to identify the illegal material and report the original photo links to law enforcement. It said roughly

1,000 of the images it found were externally validated.

The response was immediate.

On the eve of the Wednesday release of the Stanford Internet Observatory’s report, LAION told The Associated Press it was temporarily removing its datasets.

LAION, which stands for the nonprofit Large-scale Artificial Intelligence Open Network, said in a statement that it “has a zero tolerance policy for illegal content and in an abundance of caution, we have taken down the LAION datasets to ensure they are safe before republishing them.”

While the images account for just a fraction of LAION’s index of some 5.8 billion images, the Stanford group says it is likely influencing the ability of AI tools to generate harmful outputs and reinforcing the prior abuse of real victims who appear multiple times.

It’s not an easy problem to fix, and traces back to many generative AI projects being “effectively rushed to market” and made widely accessible because the field is so competitive, said Stanford Internet Observatory’s

chief technologist David Thiel, who authored the report.

“Taking an entire internetwide scrape and making that dataset to train models is something that should have been confined to a research operation, if anything, and is not something that should have been open-sourced without a lot more rigorous attention,” Thiel said in an interview.

A prominent LAION user that helped shape the dataset’s development is London-based startup Stability AI, maker of the Stable Diffusion text-to-image models.

New versions of Stable Diffusion have made it much harder to create harmful content, but an older version introduced last year—which Stability AI says it didn’t release—is still baked into other applications and tools and remains “the most popular model for generating explicit imagery,” according to the Stanford report.

“We can’t take that back. That model is in the hands of many people on their local machines,” said Lloyd Richardson, director of information technology at the Canadian Centre for Child Protection, which runs Canada’s hotline for reporting online sexual exploitation.

Stability AI on Wednesday said it only hosts filtered versions of Stable Diffusion and that “since taking over the exclusive development of Stable Diffusion, Stability AI has taken proactive steps to mitigate the risk of misuse.”

“Those filters remove unsafe content from reaching the models,” the company said in a prepared statement. “By removing that content before it ever reaches the model, we can help to prevent the model from generating unsafe content.”

LAION was the brainchild of a German researcher and teacher,

DAVID THIEL, chief technologist at the Stanford Internet Observatory and author of its report that discovered images of child sexual abuse in the data used to train artificial intelligence image-generators, poses for a photo on Wednesday, December 20, 2023, in Óbidos, Portugal.

CAMILLA MENDES DOS SANTOS VIA AP

Christoph Schuhmann, who told the AP earlier this year that part of the reason to make such a huge visual database publicly accessible was to ensure that the future of AI development isn’t controlled by a handful of powerful companies.

“It will be much safer and much more fair if we can democratize it so that the whole research communit y and the whole general public can benefit from it,” he said.

Much of LAION’s data comes from another source, Common Crawl, a repository of data constantly trawled from the open internet, but Common Crawl’s executive director, Rich Skrenta, said it was “incumbent on” LAION to scan and filter what it took before making use of it.

LAION said this week it developed “rigorous filters” to detect and remove illegal content before releasing its datasets and is still working to improve those filters. The Stanford report ac-

knowledged LAION’s developers made some attempts to filter out “underage” explicit content but might have done a better job had they consulted earlier with child safety experts.

Many text-to-image generators are derived in some way from the LAION database, though it’s not always clear which ones. OpenAI, maker of DALL-E and ChatGPT, said it doesn’t use LAION and has fine-tuned its models to refuse requests for sexual content involving minors.

Google built its text-to-image Imagen model based on a LAION dataset but decided against making it public in 2022 after an audit of the database “uncovered a wide range of inappropriate content including pornographic imagery, racist slurs, and harmful social stereotypes.”

Trying to clean up the data retroactively is difficult, so the Stanford Internet Observatory is calling for more drastic measures.

One is for anyone who’s built training sets off of LAION-5B— named for the more than 5 billion image-text pairs it contains—to “delete them or work with intermediaries to clean the material.”

Another is to effectively make an older version of Stable Diffusion disappear from all but the darkest corners of the Internet.

“Legitimate platforms can stop offering versions of it for download,” particularly if they are frequently used to generate abusive images and have no safeguards to block them, Thiel said.

As an example, Thiel called out CivitAI, a platform that’s favored by people making AI-generated pornography but which he said lacks safety measures to weigh it against making images of children. The report also calls on AI company Hugging Face, which

distributes the training data for models, to implement better methods to report and remove links to abusive material.

Hugging Face said it is regularly working with regulators and child safety groups to identify and remove abusive material. Meanwhile, CivitAI said it has “strict policies” on the generation of images depicting children and has rolled out updates to provide more safeguards. The company also said it is working to ensure its policies are “adapting and growing” as the technology evolves.

The Stanford report also questions whether any photos of children—even the most benign— should be fed into AI systems without their family’s consent due to protections in the federal Children’s Online Privacy Protection Act. Rebecca Portnoff, the director of data science at the anti-child sexual abuse organization Thorn, said her organization has conducted research that shows the prevalence of AI-generated images among abusers is small, but growing consistently.

Developers can mitigate these harms by making sure the datasets they use to develop AI models are clean of abuse materials.

Portnoff said there are also opportunities to mitigate harmful uses down the line after models are already in circulation.

Tech companies and child safety groups currently assign videos and images a “ hash ”—unique digital signatures—to track and take down child abuse materials.

According to Portnoff, the same concept can be applied to AI models that are being misused.

“It’s not currently happening,” she said. “But it’s something that in my opinion can and should be done.”

The end of the debt bubble has put the Chinese dream on hold

By Rebecca Choong Wilkins

I

N 2020, one of the world’s most heavily traded bonds was a 2025 note for China Evergrande Group. Investors loved the debt of the Chinese real estate conglomerate for several reasons: It was liquid; it was tied to one of the biggest companies in the country; and it gave them a piece of the world’s ­second-largest economy. It also heralded a major transition for China, symbolizing an era of turbocharged growth that had put it on a path to one day surpass the US. No longer was the country going to be merely a factory to the rich world—it would have its own consumerist middle class, with beautiful apartments and all the furniture, appliances and electronics to go in them. Evergrande was building that dream, apartment tower by apartment tower—along with theme parks and business lines in bottled water, electric vehicles, health-care­ services and even a soccer club.

Now t he Everg rande bond trades for pennies on the dollar, and its fate tells the story of an epic crash that’s affected everyone in China. For decades, real estate has been a surefire way to make money in the country—for homeowners who bought first, second and even third or fourth apartments as prices kept rising; for property companies borrowing to build projects to match de-

mand; and for local governments relying on land sales to provide cash and infrastructure projects to help meet Beijing’s ambitious economic growth targets.

In 2020 there was one problem with that bet: President Xi Jinping was ready for it all to change.

When the crackdown on property speculation began, very few understood what was really happening and just how painful it would get.

In fact, the first signs of change didn’t amount to much more than a set of financial rules—known as the “three red lines” companies couldn’t cross—and a request for a dozen developers to report their finances monthly to regulators.

Since then, China has run one of the biggest economic experiments since it opened up in the 1980s under Deng X iaoping.

Several dozen developers have defaulted on their debt, leaving hundreds of projects unfinished and even triggering a wave of boycotts on mortgage payments by homeowners protesting incomplete construction. In China, it’s common for buyers to pay for units before they’re finished and then hope they get what they paid for. Meanwhile, about 5 million workers face unemployment or lower incomes by 2026 if the housing sector continues to shrink, Bloomberg Economics estimates.

For investors and bankers, the debt squeeze marks the end of a

once-in-a-lifetime boom, when Hong Kong financiers could cut deals while taking weekend junk boat trips around the island and traders enjoyed juicy yields from a sector that, until Evergrande’s collapse, had only ever seen one major default.

Beijing wants to pop its own market bubble to end speculation that’s led to a strange combination of unaffordable housing and oversupply, as the demand to get a piece of the red-hot market meant construction outpaced actual need in some places.

Xi ’s mantra: “Houses are for living in, not for speculation.”

E v e r g r a n d e e p it o m i z e d t h e risks Beijing wants to fix. The company borrowed with apparent abandon to expand, while

rumors of its hidden debt load threatened broader disruption to the financial system.

Ultimately, Xi wants to create a more resilient housing market that better serves China’s people and reduces the risk of a massive price crash. In fact, he wants to rewrite the playbook by moving away from debt-fueled growth to something much more ­s ustainable—a model focused on boosting domestic consumer demand, as well as new technologies such as electric vehicles and batteries. “The ongoing economic transformation will be a long and difficult journey,” Pan Gongsheng, head of China’s central bank, said in a November address to bankers. “But it’s a journey we must take.”

For investors and bankers, the debt squeeze marks the end of a once-ina-lifetime boom, when Hong Kong financiers could cut deals while taking weekend junk boat trips around the island and traders enjoyed juicy yields from a sector that, until Evergrande’s collapse, had only ever seen one major default.

Yet the campaign to clean up real estate risk has shattered confidence, leaving people feeling poorer and undermining a core tenet of the revamp: getting consumers to spend and invest in new businesses.

For many in China, owning a home is a core aspiration. Before the crisis, about 70 percent of household wealth was tied up in real estate, so price drops are particularly painful.

Another development rattling consumers is that companies once seen as too big (and too ­responsible) to fail are running into fresh trouble.

As recently as October, Country Garden Holdings Co., once the nation’s biggest builder and an ­investment-grade borrower, defaulted on its debt, making it hard to believe the worst is over.

Xi now appears to have reached his tolerance for pain in the property sector. Regulators are drafting a list of 50 property companies eligible for bank support, while weighing a plan that would let banks offer them unsecured loans for the first time. Still, sales of new homes have dropped in 24 of the past 29 months.

And the crisis will leave scars on the nation’s housing stock.

Unfinished buildings will be left empty through another harsh w inter after r usting through this summer, while builders will scramble to finish projects with shoddy work before their employers run out of money.

This risks thwarting the authorities’ push to clamp down on so-called tofu construction, which has become more obvious during extreme events like earthquakes and flooding. On a recent trip to survey the building sites of a developer in debt restructuring, a lawyer tested the sturdiness of a balcony railing in Guangzhou only to find it came away from the wall in his hand. (He requested anonymity because he wasn’t authorized to speak publicly about his clients.)

Even if a homebuyer wanted to take advantage of lower prices, there’s little reason to have faith that apartments will be delivered on time or in decent shape.

Beijing finds itself in an awkward position. It needs people to spend, but it still hasn’t cracked the nut of oversupply. Bloomberg Economics estimates that despite an 18 percent drop in property construction, the market is only about halfway through the correction it needs. Economic signals in China are a little more positive these days, with signs of a return to growth, albeit fragile. But there are harder-to-quantify effects.

Officials may have one eye on a deeper social malaise tied to the housing crisis. It’s reflected in a saying making the rounds on Chinese social media: “No dating, no marriage, no kids, no home.” With

Eric Zhu, Yujing Liu and Emma Dong/Bloomberg

Opinion BusinessMirror

A12 Monday-Tuesday, December 25-26, 2023 • Editor: Angel R. Calso

www.news.businessmirror@gmail.com

editorial

Implications of the PUV Modernization Program

P

resident Marcos has announced that the December 31 deadline for consolidating Public Utility Vehicle operators nationwide will no longer be extended. In his statement, the President said “70 percent of all operators have already committed to and consolidated under the Public Utility Vehicle Modernization Program (PUVMP).”

The PUVMP seeks to address various issues such as environmental concerns, passenger safety, and efficiency. The introduction of modern PUVs, along with the potential consolidation of operators under a fleet management system, can lead to improved traffic management and reduced congestion in Metro Manila and other urban centers. Moreover, the program offers an opportunity to integrate modern jeepneys into a more comprehensive public transportation network, enhancing connectivity and efficiency.

However, the successful implementation of these changes requires careful consideration of factors such as route planning, infrastructure development, and coordination between different modes of transportation, including jeepneys, buses, and trains. The government should prioritize comprehensive urban planning and stakeholder engagement to ensure that the transportation system is integrated, efficient, and accessible to all.

The Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (PISTON), which recently staged a two-day strike, said they do not oppose giving the jeepney its much needed upgrades, especially as old models have hazardous emissions. But they said the program will be too costly for drivers and operators.

“We have no problem with jeepney modernization, but government needs to support the drivers,” PISTON head Mody Floranda said. Various groups have called the scheme “anti-poor” and “unjust.”

Based on the results of a nationwide survey released by Capstone-Intel Corp. on Friday, 41 percent of 1,503 respondents rated the initiative as “Good” and 29 percent gave it a “Very Good” performance rating. On the other hand, 24 percent graded it “Neutral.” Meanwhile, 5 percent negatively assessed it, with 3 percent saying it’s “Bad” and 2 percent as “Very bad,” and one percent said they are “not familiar” with the program. (Read the BusinessMirror report, “Most Pinoys for PUV modernization amid opposition to consolidate—poll,” December 18, 2023).

The positive sentiment was noted amid the outcomes that jeepneys (34 percent) are the second most commonly used mode of land transportation in the country, next to motorcycles (37 percent). Among the respondents, 514 are jeepney riders who viewed the PUV Modernization Program as “Very Good” at 28 percent and “Good” at 40 percent, but “Neutral” is at 26 percent compared to 24 percent of non-jeepney riders.

With the positive feedback on the upgrade of jeepneys, 56 percent think the Department of Transportation is providing a safe, accessible public transportation, with 14 percent “Strongly Satisfied” and 42 percent “Satisfied.” Around 30 percent of respondents are “Neutral” in their perception; while 12 percent are “Dissatisfied” and 2 percent are “Strongly Dissatisfied.”

Although the public support on the modernization of PUVs is high, the government should not be complacent in regulating this sector, according to Capstone-Intel Chief Data Scientist Dr. Guido David.

“We just have to make sure that we can put the proper measures [on] the safeguards or the modernization. And also to help our jeepney drivers, we have to make sure that we give them the support financially. These are the challenges that we have to sort through,” he said.

The program should be responsive to the needs of affected drivers, and should not mean that jeepney fares will increase immediately because of modernization, said Capstone-Intel Chief of Public Affairs Atty. Nick Conti. “That will directly impact on the daily expenses of our commuters.”

While the PUVMP holds immense potential for improving public transportation, it is crucial to ensure that its implementation does not burden the already financially strapped commuters. Higher fares resulting from the program can disproportionately affect low-income individuals, hinder economic growth, and undermine the efficiency gains of the modernized system. Striking a balance between progress and affordability is crucial to ensure that the benefits of modernization are accessible to all members of society, particularly the commuting public.

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Apple’s $1 trillion rally to be tough to live up to in 2024

By Subrat Patnaik

A

pple Inc. added nearly $1 trillion in market value this year.

Such gains in 2024 will be harder to come by.

As it looks to arrest four consecutive quarters of declining revenue, the world’s most valuable publicly traded company faces uncertainty in China, where government agencies are cracking down on foreign-made devices. Competition from Huawei Technologies Co. is intensifying, while Apple’s smartwatch business faces a potential US ban days before Christmas.

The stock’s 50 percent rally this year—driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy—has also left it in expensive territory. It’s priced at 29 times profits projected over the next year, nearly double its 10-year average valuation.

“The biggest risk for the business model of the megacaps right now is money rotating to other names,” said Eric Clark, a portfolio manager at Accuvest Global Advisors, who has trimmed his position in Apple and some other big tech stocks.

Clark notes such megacaps that face higher valuations, slower growth and tougher year-on-year comparisons may see investors divert funds

to “other areas that I think might have more upside for 2024.”

Traders had been sticking to bluechip tech stocks this year as the Federal Reserve raised interest rates.

Now, with signals that rates may have peaked as inflation cools, investors are developing an appetite for riskier stocks as the rally broadens.

With valuations stretched, any Apple advance would likely have to be fueled by acceleration in profits.

Wall Street is currently anticipating revenue growth of just 3.7 percent in fiscal 2024 and profit expansion of 7.6 percent, according to the average of analyst estimates compiled

by Bloomberg.

The disconnect between the firm’s ascent to a market value above $3

The stock’s 50 percent rally this year—driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy—has also left it in expensive territory. It’s priced at 29 times profits projected over the next year, nearly double its 10-year average valuation.

trillion and its tepid growth outlook, helps explain why analyst enthusiasm has cooled.

Nearly unanimously bullish on big tech, Wall Street is more cautious when it comes to Apple. The stock has attracted only 34 buy-equivalent recommendations. That pales in comparison to Amazon.com Inc.’s 67, Meta Platform Inc.’s 65 and Nvidia Corp.’s 59 bullish ratings.

However, not all are bearish.

Wedbush Securities analyst Daniel Ives projects that the stock will be worth $4 trillion in market value by the end of next year. His Street-high price target of $250 towers over the $199 expected by analysts on average, according to data compiled by

Bloomberg.

“While there are lingering worries around iPhone shadow government bans in China for now this issue is very containable and has not dented demand for Cupertino in this key region based on our recent checks,” Ives wrote in a note, referring to the California-based firm’s headquarters. Even for Accuvest’s Clark, the challenges don’t diminish his view that Apple’s iPhone is “the greatest consumer staple that’s ever been created” and therefore a “higher multiple is warranted.”

While the Nasdaq 100 Index has soared more than 50 percent this year, some stocks completely missed the rally. T-Mobile US Inc. has risen about 11 percent in 2023, but peers Verizon Communications Inc. and AT&T Inc. are both down.

AT&T is the worst performer in the group amid concerns over potentially high costs it could face if it has to clean up contamination due to lead-clad wiring throughout its nationwide network. The stocks were moving higher on Thursday, while the Nasdaq 100 also rose one percent. With assistance from Jeran Wittenstein/Bloomberg

US inflation report to show Fed’s battle is now all but complete

By Matthew Boesler

T

he US inflation outlook was already steadily improving in recent months, but last week, right in the middle of the Federal Reserve’s two-day policy meeting, the dam finally broke.

Monthly reports on consumer and producer prices published on the mornings of December 12 and December 13 indicated inflation over the last six months—as measured by the Fed’s preferred inflation gauge—has likely returned to the central bank’s 2 percent target on an annualized basis.

The surprising development led some Fed officials to make hasty revisions to their projections set to publish on the afternoon of the 13th. It also increased confidence among forecasters the next six months will look similarly subdued.

A monthly report from the Bureau of Economic Analysis due Friday morning is poised to make the achievement official, helping cement the case for lower interest rates in the coming quarters.

During 2022 and the first half of this year, Fed watchers got used “to just focusing on realized inflation,” said Blerina Uruci, the chief US economist at T. Rowe Price. “Now, the Fed is focusing on the outlook for inflation” to avoid undershooting its target, she said.

The Fed’s preferred inflation gauges—the personal consumption expenditures price index

and the measure excluding food and energy—use several inputs from the pair of Bureau of Labor Statistics reports published last week.

Together they showed softening in key categories like goods excluding food and fuel, financial services and certain health care components, leading forecasters to revise down their estimates for the PCE price measure.

Revisions to gross domestic product figures published Thursday offered more good news: The core PCE price index increased at a 2 percent annual rate in the third quarter, the slowest since the end of 2020.

“Far from facing a widely expected ‘last mile’ problem, core PCE inflation appears to have slowed” from 4 percent annualized in the first half of 2023 to 1.9 percent in the second half of the year, Goldman Sachs economists led by Jan Hatzius said in a December 13 note to clients.

Fed Chair Jerome Powell and his colleagues are now set to cut interest rates “earlier and faster,” beginning in March, “to reset the policy rate from a level” that most policymakers “will likely soon see

“The evidence suggests the economy can grow at a modest pace at the same time inflation comes down,” said Michael Gapen, the chief US economist at Bank of America. “That puts the Fed in the enviable position of likely being able to follow inflation down while not attenuating demand as much as they thought they’d have to.” as far offside with inflation trending near 2 percent,” they said.

Goods prices

Many economists pointed in particular to broad-based weakness in goods as a big aspect of the surprise softening.

“A very simple example is, apparel prices in November in the consumer price index fell by the most in any November since 1942,” said Omair Sharif, president of Inflation Insights LLC. “We saw that in other categories like household furnishings, furniture prices, electronics.

You name it, and core goods have been much weaker than expected in the last month or two.”

While merchandise has been an important driver of faster-than-expected disinflation in recent reports, services prices—an area Fed officials have been particularly focused on this year—have also largely been rising at a slower rate. That’s a big reason why forecasters are becoming more

confident that the next six months will show overall inflation staying close to the Fed’s 2 percent target.

“The evidence suggests the economy can grow at a modest pace at the same time inflation comes down,” said Michael Gapen, the chief US economist at Bank of America. “That puts the Fed in the enviable position of likely being able to follow inflation down while not attenuating demand as much as they thought they’d have to.”

Even so, there are a few potential bumps in the road left to clear in the first quarter. Lower stock prices helped drag financial services components of the price index lower in recent months, but fresh highs in the equity market since last week’s Fed meeting will probably push those components up again.

Increases in rent—the largest and most important component of the price indexes—are widely expected to moderate based on leading indicators, though the exact timing is unclear. There is also uncertainty around upcoming changes to seasonal adjustments of the monthly inflation data.

None of that, however, is enough to dissuade forecasters from rejecting the optimism implicit in the latest figures.

“I don’t know that we had actual empirical evidence to suggest that the ‘last mile’ would be hard, but people ran with that line,” Uruci said. “I mean, it sounded interesting.” Bloomberg

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The Mideast IPO boom is expected to stretch into 2024

Opinion BusinessMirror

UN says ‘leave no one behind’, yet DOTr ignores plea of jeepney drivers

By Julia Fioretti and Farah Elbahrawy

I

t’s been another dismal year for initial public offerings globally, but the Middle East has shone as a hive of listing activity that is expected to stretch into 2024.

Over the past two years, the energy-rich region has emerged as a busy IPO market, as governments intent on weaning their economies off reliance on oil have sold stakes in state-owned firms while crude prices have been high. Russia’s exclusion from the MSCI Emerging Markets index after its invasion of Ukraine last year, and China’s slowdown in economic growth, have prompted investors to look at the Persian Gulf.

While listings in the region have raised less than half the amount they did last year, at $10.5 billion it’s still set to be the third-best year since 2007 for IPO proceeds, data compiled by Bloomberg show. The Gulf accounts for about 45 percent of total IPO volumes in Europe, the Middle East and Africa this year, compared with 51 percent in 2022.

Bankers aren’t expecting the IPO flow in the Middle East and North Africa to slow anytime soon, as the tailwinds of strong growth, government reforms and investor demand remain.

“The outlook is very strong for MENA IPOs in 2024,” said Christian Cabanne, Bank of America Corp.’s head of equity capital markets in Central and Eastern Europe, the Middle East and Africa. “Maybe the difference between 2023 and 2024 is that in 2024 we expect to see more private companies come to market, including in the United Arab Emirates.”

Among companies planning listings as soon as next year are Saudi low-cost carrier Flynas, which has hired banks for its potential offering, supermarket chain Spinneys Dubai LLC, and owner of shisha brand Al Fakher, Advanced Inhalation Rituals, Bloomberg News has reported.

Startups like e-commerce firm Floward and buy-now-pay-later company Tabby are also eyeing listings.

Last year, the IPO haul in the Middle East stood at almost $23 billion and in 2019 it was $31.2 billion, mainly due to Saudi Aramco’s record-setting $29.4 billion offering.

Strong performance

The region’s strong showing stands in sharp contrast to many other ma-

jor IPO markets, from the US to Europe and China. Globally, first-time share sales are tracking for their worst year since 2009, with many marquee listings having mediocre trading debuts, such as German sandal maker Birkenstock Holding Plc. It’s a completely different story in the Middle East. The average gain for IPOs raising at least $100 million has been almost 40%, and only one company is trading in the red, Investcorp Capital Plc. The alternative investment firm has fallen 13 percent below its offering price after price stabilization ended a month after its debut.

The strong performance of the region’s IPOs is likely to keep investors coming back for more, especially as many deals come at attractive dividend yields and offer exposure to previously underrepresented sectors.

“Investors are very keen to now take exposure to these new sectors that all of a sudden are becoming available in the market,” said Rami Sidani, head of MENA portfolio management and frontier investment at Schroders Investment Management. “So there’s a massive appetite, and IPOs are relatively well-priced.”

Gaza conflict

TO be sure, it hasn’t all been plain sailing for the region’s markets. The outbreak of the war between Israel and Hamas in Gaza in early October resulted in a 3.2 percent drop for the MSCI GCC Countries Index as investors fretted the conflict would spread. The index has since rebounded 12 percent as those concerns abated.

“The market is still in a good place and has not been affected by the conflict and things could remain quite contained,” said Salah Shamma, Franklin Templeton’s Dubai-based head of equity investment for the Middle East and North Africa. “However, if things were to escalate and if the theater of operations were to widen, then definitely that could have a detrimental effect on risk premium and how investors view the region.” Bloomberg

Dr. Rene E. Ofreneo

LABOREM EXERCENS

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he United Nations, through the UN Environmental Program (UNEP) and the UN Concord on Sustainable Development Goals (SDGs), has been asking Member States to observe one major guiding principle in the world’s battle against global warming —“Leave No One Behind” (LNOB).

Simply put, efforts to make a country’s economy resilient and sustainable should not be at the expense of the poor and their livelihoods.

To fulfil this LNOB commitment, a Member State is required to undertake a comprehensive approach to sustainable development by having a program identifying who is left behind and the measures needed to avoid the exclusionary impact of any program undertaken in the name of sustainability.

To ensure that no one is indeed left behind, the UN SDG Operational Guide asks governments to ensure that there is “free, active and meaningful participation of all stakeholders.” Further, the Guide admonishes governments to adopt a “human rights-based approach” in the use of data and statistics in order to avoid “all forms of discrimination and other root causes of inequalities.”

The International Labor Organization (ILO) fleshes out the above LNOB principle of the UNEP and UN-SDGs in the ILO’s 2015 Guidelines on Just Transition. The core guideline calls for the conduct of social dialogue as a critical part of the “institutional framework for policymaking and implementation at all levels” in making the transition to environmentally sustainable social and economic arrangement. ILO stressed that “Adequate, informed and ongoing consultation should take place with all relevant stakeholders.” The ILO added that special attention should be given to sectors of the economy that are “hardest hit” by any proposed transition program.

The point is that a “green” transition should be just and equitable to all.

We cite the above UNEP, UN-SDG and ILO Guidelines on Just Transition in the light of the ongoing controversy over the public utility vehicle (PUV) modernization program being pushed by the Department of Transportation (DOTr) and

Russian women are starting to demand Putin bring their men home from war in Ukraine

By Bloomberg News

M

ore than a year after President Vladimir Putin summoned 300,000 draftees to fight in Russia’s war in Ukraine, some of their families are starting to demand that they come home.

Wives, mothers and girlfriends of mobilized Russian soldiers have begun protests calling on the Kremlin to bring their men back from the war.

Their movement, “The Way Home,” has gained more than 37,000 followers on its Telegram channel in support of calls for demobilization of the troops called up in September last year.

So far, the authorities have limited their response to sending police to warn organizers against protesting. While the number involved now is relatively small, the movement risks embarrassing the Kremlin as Putin prepares for presidential elections in March. Officials claim overwhelming public support for the invasion of Ukraine that’s lasted almost two years with no end in sight.

“We are in favor of complete demobilization, not rotation. We don’t want anyone to go through what we went through,” said Maria, 26, from Moscow, an activist whose boyfriend was among the first to be drafted. “I personally want the military operation to end. How can

you feel good about the fact that people die every day, that someone’s body gets eaten by rats in the fields?”

Maria asked not to disclose her surname or identify her boyfriend, fearing official retaliation. She said she had expected the army to send him home from Ukraine after six months and then after a year, until “the full realization came that authorities are not going to bring our men back to us.”

Mobilization is a sensitive question for the Kremlin. Putin’s decision to order the partial call-up caused a spike in anxiety among Russians over the war and triggered an exodus of hundreds of thousands of people who fled the country to avoid the draft.

The Kremlin has denied suggestions of a second wave of mobilization. Putin, who said 617,000 Russian troops were deployed in Ukraine, acknowledged at his marathon news conference last week that public concern over a new draft was a “burning issue,” while insisting there’s no need for one now.

While surveys by the Moscow-based Levada Center show about three-quarters of Russians say they support the invasion, some 60 percent also worry the war may lead to a general mobilization.

A majority say they favor peace negotiations to end the conflict.

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Monday-Tuesday, December 25-26, 2023 A13

leader Yevgeny Prigozhin promised freedom to thousands of prisoners recruited from Russian jails if they survived six months at the front in Ukraine. Russia’s Defense Ministry set no time limit for the mobilized soldiers.

“Russia’s military elite is against demobilization,” and it’s significant that Putin announced his re-election run at a meeting with people whose children died in the war, said Tatiana Stanovaya, founder of R.Politik, a political consultant. The Kremlin wants regional governors to “extinguish” the women’s protests to stop them gaining support, she said.

Kremlin spokesman Dmitry Peskov and Russia’s Defense Ministry didn’t respond to requests to comment.

Members of the protest movement published a video manifesto this month denouncing mobilization as “legalized slavery” and demanding a maximum one-year limit on military service before draftees are returned home. They questioned whether mobilized soldiers were “in the combat zone voluntarily.”

Organizers wear white headscarves, a tribute to the mothers’ movement in Argentina that campaigned for the return of their disappeared children in the military dictatorship’s “Dirty War” of 1976-1983 against domestic opponents.

With assistance from Gina Turner/Bloomberg

the Land Transportation and Franchising Regulatory Board (LTFRB).

Both the DOTr and LTFRB seem to be oblivious of the UN call to leave no one behind in a country’s efforts to fight climate change by reducing the greenhouse gases that are being emitted by different sectors of the economy. The jeepney organizations led by PISTON and MANIBELA claim that the PUV modernization scheme will destroy thousands of jobs in the transport sector.

We support the stand of the protesting jeepney drivers and operators for a review and suspension of the PUV modernization scheme. The transition program for the PUVs is not just and equitable. It is simply a transition program towards an imagined modernization of this segment of the transportation sector.

There were no proofs that the PUV modernization scheme was a product of adequate, informed and sustained dialogue among all the stakeholders. The scheme was developed in a top-down fashion by the transport officials sans consultations with the jeepney drivers and operators. If there were such consultations, there would have been serious discussions on how the drivers who would be displaced by the program can get alternative jobs. The DOTr, LTFRB and the jeepney associations could have set up mechanisms on how to develop decent jobs for those to be employed in the modernization scheme and those that cannot be absorbed by the scheme.

There are winners and losers in any modernization program. The challenge to the policy makers is how to draw up transition programs to help the winners become true winners (through programs such as re-skilling and upskilling, co-owner-investor arrangements, etc.) and those likely to be displaced to have good alternative jobs. In the PUV modernization scheme of LTFRB, a job transition scheme for all is sorely missing.

Another disturbing aspect of the PUV modernization program is the questionable system of replacing the jeepneys with imported vehicles costing around P2.8 million each.

Why resort to importations and why the unaffordable price tag for each vehicle?

In the ILO’s transition guidelines, the stakeholders (government and private players) are urged to adopt a comprehensive economic and environmental programs that strengthen national industries and the creation of domestic jobs. Ironically, in the Philippines, the PUV modernization program has become an instrument to boost the EV industries and jobs in China and other countries. The irony is further accentuated by the fact that local vehicle makers such as Francisco Motors have signified their capacity to produce the EV vehicles at a much lower cost while creating as

many jobs at home. Why the absence of a DOTr-LFTRB program promoting domestic EV production?

The point is that the intensifying global warming due to climate change will be forcing countries to overhaul existing industries to make the national economy resilient and sustainable. This is a difficult survival challenge for all countries.

However, this is also a golden opportunity for the Philippines to rebuild its eroded industrial base by building new and stronger industries in the name of sustainable development. To make this happen, our policy makers should learn to think Filipino and act Filipino in the service to the nation and its toiling masses.

Dr. Rene E. Ofreneo is a Professor Emeritus of the University of the Philippines.

For comments, please write to reneofreneo@ gmail.com.

Just Transition made easy: 10 people-centered steps Securing the support of all stakeholders for climate action is never easy. However, the ITUC and its partner CSOs have acquired experiences and lessons across the years across the globe in pushing for climate projects based on the framework of Just Transition. The following steps are culled from published ITUC materials and shared experiences by ITUC affiliates.

1. Undertake an initial assessment of the social and economic consequences of a climate problem/risk and the needed remedial climate action.

2. Consult with the affected sectors for climate solution or possible program/project.

3. Conduct social engagement and dialogue with concerned government offices at the national/local level.

4. Conduct social engagement and dialogue with the business sector involved in a given climate risk situation.

5. Involve the affected community or workers’ group in the review, design and advocacy/implementation) of the climate solution or program/project.

6. Develop a constituency and mass support for the climate solution or program/project.

7. Implement skills development and upgrading measures.

8. Design social protection policies/programs/measures for the workers and the vulnerables.

9. Ensure an inclusive, consultative and transparent planning process at all stages.

10. Review everything—continuously—based on the 2015 ILO Tripartite Guidelines for a Just Transition. (from “Just Transition Challenge: Securing Decent and ClimateFriendly Jobs for All.” Policy Paper of the Asia-Pacific Organization of the International Trade Union Confederation (ITUC-AP), 2022.)

Musk blasts public markets, says indexing has ‘gone too far’

By Emily Graffeo and Kurt Wagner

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lon Musk is lashing out at the state of US financial markets.

In a wide-ranging talk with ARK Investment Management’s Cathie Wood Thursday, he bemoaned the high regulatory burden faced by publicly traded companies, the pressure from shareholders that limits efficiency, and how passive investing is stoking volatility.

The complaints add to a litany of grievances Musk has raised over the years about the tradeoffs of tapping public markets to build some of his many ventures. His disdain for the rigidity of US securities laws has sometimes led to trouble with regulators, including a highprofile fight with watchdogs over tweets about Tesla Inc. Musk is also the chief executive of SpaceX, one of the world’s most valuable closely held companies.

“There’s a lot of pressure, like immense pressure on a public company to not have a bad quarter. So this can actually result in a less efficient operation where you’re going to great lengths at the end of the quarter to not disappoint people,” Musk said in a Spaces discussion streamed live on the social-media platform X. The “time horizons do not match between investors versus a company’s long-term vision.”

Musk has tangled in the past with the Securities and Exchange Commission, which he dubbed the “Shortseller Enrich-

ment Commission” in 2018. That year, the billionaire agreed to pay a $20 million fine to resolve the agency’s complaints about tweets suggesting he was taking Tesla private. As part of the deal, he agreed to clear future posts about his firm with an internal monitor, or “Twitter sitter.”

Musk later bought the social media platform, renaming it X. Earlier this month, he asked the US Supreme Court to consider invalidating that requirement, arguing it violates his free speech.

Musk said keeping SpaceX private has also allowed him to take more appropriate risk compared with Tesla. One benefit of taking Tesla public, however, has been the company’s access to capital, he said.

Still, Musk told Wood that he wouldn’t recommend that companies go public “unless they really have to.” Taking Twitter private has allowed him to make dramatic changes at the company without pressure from public investors.

Twitter co-founder Jack Dorsey had long argued that the social media company

struggled because of public investors, and encouraged Musk to take it private to help fix its business.

Wood and Musk also discussed how passive investing has punished stocks that are not in major indexes and unequally rewarded companies that are in key benchmarks. Their comments come as academic critics continue to lament that the passive-investing boom is distorting stock prices and causing extreme market moves. While Musk praised Vanguard Group Inc. founder Jack Bogle for bringing passive-investing into mainstream finance, he said the moneymanagement trend has “gone too far.”

“The percentage of the market that is passive is simply, is too great at this point. At the end of the day, somebody actually has to make an active decision.

The passive investors are riding on the decisions of the active investors,” Musk said. “You get essentially massive movements of the stock, based on the decisions of maybe four or five active major stock pickers.”

Wood’s flagship ARK Innovation exchange-traded fund (ticker ARKK) is actively managed, and has almost zero overlap with the S&P 500, according to an analysis from Bloomberg Intelligence.

Musk’s Tesla joined the US benchmark roughly three years ago but has lagged since joining. Bloomberg

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Amid RE’s gains, power sector faces tough hurdles next year

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By Lenie Lectura

HIS year’s push for renewable energy (RE) transition has undeniably made progress, but next year appears to be tougher for the power sector as experts warned that the El Niño phenomenon will persist until the second quarter.

States on the peaceful use of nuclear energy.

More important, the renewal of the Malampaya service contract would unlock the potential both in the existing gas field and nearby prospect areas believed to hold up to 210 billion cubic feet more of natural gas.

With the DOE’s strong renewables policy and the private sector’s active participation, the Philippines has recently moved up six spots to be the fourth most at-

tractive renewable sector among global emerging markets and the best in Southeast Asia, according to Bloomberg NEF/ Climatescope.

“We have significant momentum for renewables expansion.

GEA2 will enable 3.6 gigawatts of renewables capacity. On top of this, there is also robust demand from the retail market that is driving

With the DOE’s strong renewables policy and the private sector’s active participation, the Philippines has recently moved up six spots to be the fourth most attractive renewable sector among global emerging markets and the best in Southeast Asia, according to Bloomberg NEF/ Climatescope. renewables growth,” commented ACEN Corp. President Eric Francia.

The momentum is expected to continue in 2024 with subsequent green energy auctions and hopefully the implementation of the reserve market and renewable energy market. Scaling up renewables will also require the rapid expansion and strengthening of the transmission network, including the incorporation of energy storage across the grid, added Francia.

“We’re only weeks until the end of 2023. We did manage to contain the weaknesses in 2023.…

But there remain threats that the President is very much concerned about, particularly the El Niño,” said Lotilla.

Coal power plants usually encounter glitches while the capacities of hydro power plants are reduced during summer months.

“Our challenge this El Niño is we need to run all sources of power that are available to us during this period,” said Lotilla. “We’ve got to be open to all technologies and now we’re being taken to task for promoting natural gas. We can’t draw 100 percent RE at this point.”

Former DOE Undersecretary Jay Layug, currently president of Developers of Renewable Energy for AdvanceMent Inc. (DREAM), said 2024 supply could be tight.

“I think it’s still going to be a challenge in the next two years.

Malampaya gas is decreasing, no new coal plants are being built, and it is only now that we are shifting to more renewables.

“Remember, it takes at least two years to build new projects, so supply will still be an issue during summer months. There’s El Niño, so that’s a challenge for us,” said Layug, adding that the delay in

transmission projects is also a recurring problem.

That’s why Layug suggested allowing the generation companies to also build the transmission lines, subject to reimbursement.

“The biggest challenge really is transmission lines. It’s always a challenge. I requested DOE to issue a circular that will allow the private investor to build the lines” instead of the National Grid Corporation of the Philippines, which holds a 25-year concession contract to operate and maintain the transmission network, Layug said.

The DOE, Lotilla said, can do only so much. “Unfortunately, our task is challenging and we don’t have control over the assets. All we have is policy. I can urge, I can cajole, I can convince, but you guys should give me the big stick or whip.

“If everyone is going to think short term, then there will always be an obstacle that one party or the other is going to put up and then we delay the overall economic development of the country. There are different players and each one looks to his or her own advantage, but we got to transcend that,” Lotilla said.

Perhaps the true challenge lies not in formulating policies but in their enforcement, hindered by an unreliable permitting process.

According to a report published by WWF-Philippines, the growth of RE in the country is hampered by several obstacles, the biggest being the long process of obtaining permits even if the Energy Virtual One-Stop Shop (EVOSS) has taken effect.

“Just at the initial stage, the requirement for RE developers to secure numerous permits and signatures can already lengthen the

permitting process, especially in view of the manner by which these documents have to go through different bureaus, divisions and agencies,” the report stated.

This process is further lengthened and complicated when these agencies have clarifications regarding the applications of the RE developers.

Senator Sherwin Gatchalian, author of the EVOSS law, has renewed calls for the agencies concerned to fully implement the law.

“We pushed to institutionalize EVOSS precisely for the purpose of expediting the permitting process of generation projects that would help diversify our energy source and enhance the country’s energy supply,” Gatchalian, who currently serves as vice chairman of the Senate Committee on Energy, said.

Since the law was passed in March 2019, government agencies are still working on complying with it. Not all permitting processes have been integrated into the system, making them non-compliant with the EVOSS time frames.

The share of RE in the power generation mix stood at 22.1 percent, based on DOE’s latest data.

There is still much to be done to hit the 35-percent goal by 2030 and 50 percent by 2040.

Latest DOE data shows that out of 28,258 megawatts (MW) of installed power capacity, only 8,264MW or 29.2 percent comes from RE. In terms of power generation, RE only contributes 24,684 gigawatt hours (GWh) or 22.1 percent out of the 111,516 GWh. Asked if the targets are achievable, Lotilla said he remains optimistic. “As always, we try to under-promise but make sure we over-deliver.”

WOJCIECH WRZESIEŃ | DREAMSTIME.COM

The policy reforms introduced by the Department of Energy (DOE) this year addressed some of the issues faced by the generation, transmission and distribution components of the power sector, says the agency’s secretary Raphael Lotilla.

These include the second round of the Green Energy Auction (GEA2); the revised rules on Renewable Portfolio Standards (RPS) for on-grid and off-grid areas; and the agreement with the United

Companies BusinessMirror

Editor: Jennifer A. Ng

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‘2023 good year for real estate sector’

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By VG Cabuag

@villygc

EAL estate broker Leechiu Property Consultants Inc. said capital values across Metro Manila’s main commercial districts have sustained their levels despite local and global headwinds throughout the year.

Some landmark deals in 2023 include a P1-million per square meter commercial lot in Legazpi Village, Makati City, and another commercial lot also in Makati transacting at over P1.5 million per square meter.

In the Bay Area, a commercial lot traded hands at P400,000 per square meter. Meanwhile, Filinvest City in Alabang claimed as the main cen-

tral business district in the southern part of Metro Manila, posting a 15 percent year-on-year increase in transaction values.

“Despite these landmark deals, transaction volumes are still thin as investor outlook remains cautious on the back of the 100 basis point increase in BSP (Bangko Sentral ng Pilipinas) key policy rates this year

from 5.5 percent to 6.5 percent.

Should the anticipated interest rate cuts materialize in 2024, we may see improvement in transaction volumes,” Leechiu said.

The real estate investment trusts (REIT), meanwhile, have grown total portfolio coverage to 2.43 million square meters since the first listing of REIT in 2021.

“The REITs continue to grow their portfolios despite valuation compression due to the high interest rate market. For investors, however, REITs are viewed as an attractive investment alternative with its significantly higher yields than traditional real estate assets,” the broker said.

Share prices in golf and country clubs outside Metro Manila showed high double to triple-digit growth in 2023, propelled by improved road infrastructure. Valley Golf and Country Club in Rizal emerges

as the standout performer outside Metro Manila, growing by 173 percent, while Manila Golf takes the spotlight in Metro Manila with an 82 percent increase.

The residential market also recovered this year, mainly in Metro Manila that saw a record of 40,555 units sold.

The sector had reached its peak performance two years before the onset of Covid-19 but faced challenges during the pandemic. The ensuing market decline prompted developers to offer buyer-friendly payment terms to stimulate demand.

“However, these measures also increased backout risk. In 2023, developers reassessed their sales strategies to balance between increasing sales and mitigating buyer attrition,” Leechiu said.

The market, it said, exhibited significant growth, indicating a trajec-

tory toward a more normalized real estate cycle. Pre-sales grew by 14 percent, and new project launches surged by 66 percent from the previous year.

On the supply side, there was a surge in launches during the first quarter, reflecting the attractive sales levels achieved. However, as increased backouts became evident, developers gradually restrained launches to manage inventory, resulting in a 30 percent quarter-onquarter decline in fourth quarter aunches. Despite this trend, presales remained strong, with 9,720 units sold.

The broker said it saw a growing interest in residential units outside Metro Manila. Emerging townships, which are less congested and offer more spacious options, are witnessing increased demand due to lower acquisition costs.

“The market outlook for 2024 signals a shift toward a more inclusive growth. While residential projects within Metro Manila will continue to attract buyers, projects just outside the capital region, particularly in southern fringes, are expected to experience active demand levels,” it said.

“Infrastructure projects spanning the country are fostering enhanced connectivity among provinces, facilitating more widespread development across regions,” the broker said. Townships outside Metro Manila have relatively lower capital values due to their locations.

However, buyers can capitalize on this situation by taking advantage of the opportunities during the pre-selling stage, as property values tend to appreciate upon the completion of infrastructure developments, the broker said.

Prime Energy to park hefty cash in Malampaya project Petron to end year

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deepwater wells could transpire in 2025.

If the drilling is successful and proves that gas reserves can be produced commercially, the necessary pipelines will be installed and tied into the existing Malampaya production facilities. Thereafter, Prime Energy expects production from the new wells in 2026.

Gas operator Prime Energy has a 45-percent stake in the Malampaya project. UC38 also has a 45-percent stake while the remaining 10 percent is owned by PNOC-EC. The Malampaya consortium secured the renewal of Service Contract No. 38 (SC 38) for an additional 15 years or up to 2039. The renewal of SC 38 paves the way for new investment

Adidas, Puma dive as Nike sees weaker sales, job cuts

BYD picks Hungary for first European electric-car plant

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HARES in the biggest global sportswear brands tumbled after Nike Inc. said it would slash jobs in response to weaker sales.

Nike said it’s looking for as much as $2 billion in cost savings by dismissing workers and simplifying the sneaker company’s product lineup amid a weaker sales outlook.

The shares fell 11 percent in late trading Thursday in New York, following a 4.7 percent gain for the year to date. In Frankfurt trading on Friday morning, Adidas AG was down 6.5 percent, with Puma SE falling 4.9 percent, as investors feared a similar slowdown in sales for the US company’s European rivals.

Nike’s Chief Financial Officer Matt Friend said on the company’s conference call that the new outlook reflects a challenging environment—“particularly in Greater China and EMEA,” referring to Europe, the Middle East and Africa. He added there are “indications of more cautious consumer behavior around the world.”

The US sportswear giant sees fullyear revenue rising about 1 percent after declines in the current quarter and a modest increase in the subsequent one.

“We’ve taken a more prudent approach to our planning for the balance of the year,” Chief Executive Officer John Donahoe said on the call, adding that Nike is seeing lower levels of growth from e-commerce. Bloomberg News

to explore and develop additional gas reserves beyond the existing production area of the depleting gas field.

Aside from continuing production at the existing gas field, SC 38 required the consortium to submit a minimum work program involving geological and geophysical studies and the drilling of at least two deep water wells during the sub-phase 1 from 2024 to 2029.

The Malampaya field’s best estimate for the near field is an additional 210 billion cubic feet of gas.

To underpin the significant investment required, Prime Energy and its partners have sought the support of the Department of Energy (DOE) to ensure that there is a market for the new gas volumes,

and to streamline and simplify the permits and requirements imposed by various government agencies, which could hamper the completion of Malampaya Phase 4 on time and within budget. The firm emphasized that the support of the DOE will help to ensure the speedy and successful implementation of Malampaya Phase 4. The firm didn’t specify what type of support is needed. In more than two decades of operation, the Malampaya project supported the Philippines’ energy security, generated significant revenues of more than $13.14 billion for the government, and made significant contributions to stakeholder communities through sustainable social and environmental programs. Lenie Lectura

AZON-led Prime Energy Resources Development B.V. (Prime Energy) is allocating next year at least 31 percent of the planned $600-million work program investment for the Malampaya gas field.

Prime Energy Managing Director Donnabel Kuizon Cruz said the planned drilling and development under “Malampaya Phase 4” work program requires an investment of more than $600 million.

About $187 million of which has been earmarked for next year’s drilling preparations, which includes procurement of drilling equipment, subsea equipment and umbilicals, and pipelines, and securing the drilling rig. Actual drilling of at least two

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YD Co. plans to build its first European car factory in Hungary, part of a push by the Chinese electric-vehicle powerhouse to challenge Tesla Inc. as the dominant maker of battery-powered cars.

The plant in the southern city of Szeged will produce EVs and plugin hybrids for the European market and create thousands of jobs, BYD said Friday. The move comes a few months after Brussels announced a probe into state subsidies to Chinese EV makers and might help BYD dodge any resulting import tariffs.

BYD’s decision caps a year of courting from European countries including Germany and France, hoping to win the investment and employment coming with an auto plant. Chinese brands such as BYD, SAIC Motor Corp. and Nio Inc. have been expanding in Europe to become less dependent on their home market, where oversupply and a price war Tesla touched off over the last year are weighing on profits.

The decision is a win for Hungary, which has become one of the leading European hubs for the EV industry, where production facilities help mostly German carmakers such as Mercedes-Benz Group AG, Volkswagen AG’s Audi and, most recently, BMW AG transition from the era of combustion engines.

The country has received an estimated €20 billion ($22 billion) of EVrelated investments in the past five years, including a €7.3 billion battery plant China’s Contemporary Amperex Technology Co. Ltd. is build-

ing in the eastern city of Debrecen.

BYD already produces electric buses in the Hungarian city of Komarom.

Hungary will provide subsidies for the BYD plant, though it will only publish the amount after receiving the European Commission’s approval, Foreign Minister Peter Szijjarto said in a statement.

“This is set to be one of the biggest investments in Hungarian economic history,” Szijjarto said.

While Chinese manufacturers’ market share in Europe is still low, the country’s dominance in plug-in vehicle production has put the country in position to challenge Japan for the global lead in automotive exports.

BYD is expanding in Europe in part because it can charge higher prices there. Its Dolphin compact crossover starts at €35,990 in Germany, more than double the asking price in China. In a decree published late

Thursday, Prime Minister Viktor Orban assigned 46.3 billion forint ($133 million) in financing from the budget to upgrade road, rail, power, gas and water infrastructure around an industrial park in Szeged, without naming BYD in the document.

The EU’s executive body launched an anti-subsidy investigation into Chinese EVs in October, alleging that state support has helped to keep prices artificially low. This may lead to countervailing action such as higher tariffs against imports.

BYD along with Shanghai-based SAIC and Zhejiang Geely Holding Group Co. have been made a focus of the EU investigation. Beijing has repeatedly criticized the move, calling it a breach of World Trade Organization rules. Europe is the biggest EV export region for China, receiving more than 600,000 vehicles as of November this year. Bloomberg News

with ₧12B income

By Lenie Lectura @llectura

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HE country’s lone oil refiner may end the year with P12 billion in net income, double from last year’s P6.7 billion, Petron Corp. President Ramon S. Ang said.

“Last 2022, we were hit by the sudden fall in world oil prices; this 2023, it was more stable. For 2024, it could be like that again,” Ang said when asked for the growth drivers of this year’s income.

From January to September this year, Petron reported a net income of P9.5 billion, 16-percent higher than last year’s P8.2 billion. With a projected full-year net income of P12 billion, Petron is likely to report about P3 billion for the fourth quarter.

Petron ended 2022 with a consolidated net income of P6. 7 billion, 9-percent better than the P6 billion it recorded in 2021.

To date, Petron’s service stations reached nearly 2,100. It has been adding around 250 new stations yearly.

Ang said putting up more stations ensures that the firm’s products and services “would be accessed by more customers.”

“We are seeing consistent growth in all areas of our business. Our wide reach, superior product quality, and reliable service have allowed us to sustain our good performance throughout the year, and maintain or even strengthen our market share in

high-demand sectors,” Ang had said.

Petron is the largest oil company in the Philippines and the only one with a refinery. Also a leading player in Malaysia, Petron has a combined refining capacity of 268,000 barrelsper-day and produces a full range of world-class fuels and petrochemicals. It operates about 40 terminals in the region and has around 2,700 service stations where it retails world-class gasoline and diesel.

Latest figure from the Department of Energy showed that Petron continued to dominate the domestic market as well as in the LPG sector from January to June this year.

An independent survey by international brand research firm Standard Insights further affirmed Petron’s market leadership with Petron besting other oil and gas players across all indicators.

Petron is set to build and operate its own coco-methyl ester (CME) plant, another landmark development that will allow the company to produce its own CME. The CME plant will eliminate dependence on third-party suppliers and provide higher margins for diesel.

This is aligned with Petron’s long-term vision to increase its resilience and further cut down its environmental impact. The company similarly followed through with its retail expansion program and logistics master plan in anticipation of future demand.

Meralco eyes securing supply for Summer ’24

T

HE Manila Electric Co. (Meralco) wants to secure at least 650 megawatts (MW) of power supply intended for the summer months of 2024.

The utility firm had already informed the Department of Energy (DOE) about its planned 400MW Interim Power Supply Agreement (IPSA) and 250MW peaking supply requirement.

“That’s the reason why we have filed already the TOR [terms of reference] for the IPSA and that of the 250MW peaking which are meant to address what we see is the potential shortage in supply during summer,” said Meralco First Vice President and Regulatory Management Head Atty. Ronald Valles when asked for

preparations being undertaken by the utility firm.

The TOR needs to be approved by the DOE before Meralco can proceed with the conduct of the competitive selection process (CSP) for its power supply requirements.

The target CSP for the 400MW IPSA is close to end-January 2024.

“We’re targeting COD [commercial operation date] by February 26. So for us to be able to meet that target, we’re targeting a bid submission date in the last week of January. These are not yet definite because we’re waiting for the DOE approval on TOR. And we’re hoping that the DOE will approve as soon possible so we can make the target definite,” added Valles. Lenie Lectura

B2

Companies BusinessMirror

Monday-Tuesday, December 25-26, 2023

SMC nears BESS projects completion

By Lenie Lectura

T

@llectura

HE power unit of conglomerate San Miguel Corp. (SMC) is set to complete next month its 32 battery energy storage system (BESS) projects with a combined capacity of 1,000 megawatt hours (MWh).

“It will soon be 1,000 by next month,” SMC President Ramon S. Ang said when asked if the company has completed its BESS projects that were unveiled last year.

SMC Global Power Holdings Corp., the power unit of SMC, has put up the BESS across multiple sites in the country. The capacity of all 32 BESS has yet to be fully contracted, Ang said.

“The battery facilities that we

built [were] a big help; because of that we almost did not have brownouts, because that’s what stabilized it,” added Ang. Last March, the power firm inaugurated its BESS facilities in Limay, Bataan, which have a combined capacity of 90MWh. It was mid-2022 when Ang said the company was looking to complete all 31 facilities with a total storage capacity of 1000MWh within the next 12 months or so.

MUTUAL FUNDS

December 22, 2023

NAV

One Year Three Year

Five Year

enable the integration of capacity from small-to-medium scale renewable energy sources into the grid and help encourage more investments in renewables in the future.

“With battery energy storage, we can solve the problem with most renewable energy sources, which is intermittence, due to the irregularity or seasonality of solar and wind power sources.

Over the next couple of years, we estimate the integration of up to 5000 MW of renewable power into the grid, due largely to our BESS facilities,” Ang had said.

In October last year, Ang said that SMC Global Power was looking at raking in P8 billion to P10 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) from the BESS project.

SMC Global Power partnered with ABB Philippines, Fluence and Wartsila as its engineering, procurement and construction contractors.

STOCK-MARKET OUTLOOK

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per share Return*

The company’s BESS facilities will support the country’s power grid by storing excess power from existing plants and injecting this power back, when and where it is needed, within milliseconds. “These batteries will be a great help because it will stabilize the grid. We can export it to the grid as well,” added Ang. The BESS represent SMC’s fullscale solution to fix power quality issues in the grid. With the integration of the BESS into the grid, Ang said this would improve the power quality and help address the intermittent nature of renewables.

“We believe this and other bridge technologies, will allow us to truly achieve a just and inclusive transition to a clean energy future that will not only sustain our economic recovery and growth, but will also benefit both our environment and many Filipinos,” he added.

Equally significant, according to Ang, is how the BESS network can

Return

Stock Funds 2.09%

-2.69%

-3.69%

1.4433

9.18%

2.48%

0.18%

1.69%

7.37%

ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.9636

ALFM Growth Fund, Inc. -a

211.64

2.47%

-2.34%

-5.56%

-2.17%

Climbs Share Capital Equity Investment Fund Corp. -a 0.692

1.26%

-5.32%

-5.18% n.a

First Metro Consumer Fund, Inc. -a

-6.71%

-5.71% n.a

-4.35%

-2.71%

-0.45%

ATRAM Alpha Opportunity Fund, Inc. -a

0.6204

-3.42%

First Metro Save and Learn Equity Fund, Inc. -a 4.62910.41%

-2.6%

-0.36%

1.5%

-0.28%

First Metro Save and Learn Philippine Index Fund, Inc. -a 0.6915-0.76% -3.55% n.a n.a MBG Equity Investment Fund, Inc. -a

83.83

11.88%

-6.46%

-6.98% n.a

-3.18%

-2.91% n.a

PAMI Equity Index Fund, Inc. -a 43.0304

0.32%

Philam Strategic Growth Fund, Inc. -a

449.62

1.72%

-3.1%

-0.26%

1.18%

1.1944

3.88%

0.39%

-1.2% n.a

1.64%

Philequity Fund, Inc. -a

1.95%

-1.31%

-1.87%

1.52%

33.7233

Philequity MSCI Philippine Index Fund, Inc. -a 0.87023.26% Philequity PSE Index Fund, Inc. -a

4.5239

1.28%

-1.96% n.a n.a -2.3%

-2.08%

1.32% 1.34%

Philippine Stock Index Fund Corp. -a

752.46

1.17%

-2.48%

-2.16%

Soldivo Strategic Growth Fund, Inc. -a

0.6869

2.83%

-2.09%

-4.6% n.a

2.52% 0.63% 0.47% 1.9%

0.68%

-2.85%

-3.89%

Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.8533 0.84%

-2.79%

-2.47% n.a

United Fund, Inc. -a

0.64%

0.06%

3.0958

0.68%

-2.65%

-2.63%

-1.37%

-0.37%

1.31%

Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.3691

-1.04%

11.31%

Philequity Dividend Yield Fund, Inc. -a

-2.88%

1.67%

-0.4%

-0.12% 0.16%

Primarily invested in Peso securities (units) COL Equity Index Unitized Mutual Fund, Inc. -a 1.05850.89% n.a n.a n.a

0.22%

COL Strategic Growth Equity Unitized Mutual Fund, Inc. -a,2 1.0076 n.a n.a n.a n.a n.a Philequity Alpha One Fund, Inc. -a

1.0067

-2.77%

-2.92% n.a n.a

-3.79%

Philippine Stock Index Fund Corp. -a

913.41

1.13% n.a n.a n.a

0.43%

Exchange Traded Fund (shares) First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c102.18831.78% -2.08%

-1.85%

2.03%

1.06%

Primarily invested in foreign currency securities (shares) ATRAM AsiaPlus Equity Fund, Inc. -b

$0.7983

-6.21%

-12.63%

-2.55%

-1.77%

Sun Life Prosperity World Voyager Fund, Inc. -a

$1.6478

16.26%

-0.45%

7.73% n.a

-6.3% 15.72%

Balanced Funds Primarily invested in Peso securities (shares) ATRAM Dynamic Allocation Fund, Inc. -a 1.5163

3.86%

-3.34%

ATRAM Philippine Balanced Fund, Inc. -a 2.2212

6.25%

-1.19%

0.04%

0.54%

5.51%

First Metro Save and Learn Balanced Fund, Inc. -a 2.4969

0.16%

-1.83% -1.94%

-0.43%

-1.4%

-0.75%

2.13%

First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a 0.1894

-0.73%

-1.8% n.a n.a

-0.34%

-2.12% -0.28%

-0.64%

0.88%

1.65%

PAMI Horizon Fund, Inc. -a

3.5672

3.76%

-2.17%

0.06%

0.87%

3.7%

Philam Fund, Inc. -a

NCM Mutual Fund of the Phils., Inc. -a 15.6095

2.83%

-2.85%

-0.5%

0.5%

3.1%

2.033

2.59%

-1.18%

-0.52%

Solidaritas Fund, Inc. -a

1.9362

Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.4091

2.65%

Sun Life Prosperity Dynamic Fund, Inc. -a 0.9038

0.19%

3.33%

2.61%

1.21%

2.34%

-1.8%

-1.51%

0.05%

-0.58% n.a

2.83%

2.39%

Primarily invested in Peso securities (units) Sun Life Prosperity Achiever Fund 2028, Inc. -a 0.94043.05%

-2.87% n.a n.a

2.75%

Sun Life Prosperity Achiever Fund 2038, Inc. -a 0.8482.17%

-4.03% n.a n.a

1.48%

Sun Life Prosperity Achiever Fund 2048, Inc. -a 0.82661.26%

-4.31% n.a n.a

0.5%

$0.03326

2.53%

-5.23%

PAMI Asia Balanced Fund, Inc. -b$0.896

0.53%

-7.87%

-1.12%

0.22%

-0.83%

-1.03%

6.67%

Sun Life Prosperity Dollar Advantage Fund, Inc. -a $4.2602

10.7%

-1.86%

4.74%

Sun Life Prosperity Dollar Wellspring Fund, Inc. -a $1.0347

5.97%

-3.9%

2.65% 3.03%

1.37% n.a

10.77% 6.49%

Bond Funds Primarily invested in Peso securities (shares) 3.38%

1.71%

2.6%

2.22%

ATRAM Corporate Bond Fund, Inc. -a

1.908

1.55%

0.15%

0.54%

Cocolife Fixed Income Fund, Inc. -a

ALFM Peso Bond Fund, Inc. -a 390.21

3.3261

3.12%

1.17%

2.31%

3.78%

Ekklesia Mutual Fund, Inc. -a 2.2822

4.81%

-0.18%

1.39%

1.39%

4.43%

First Metro Save and Learn Fixed Income Fund, Inc. -a 2.4583

2.61%

0.11%

2.17%

Philam Bond Fund, Inc. -a

1.91%

0.88%

4%

4.3057

Philam Managed Income Fund, Inc. -a Philequity Peso Bond Fund, Inc. -a Soldivo Bond Fund, Inc. -a

1.0495

2.99%

-2.37%

3.23% 0.01%

1.77% 3.65% 1.21%

1.372

3.76%

1.31%

3.05%

1.76%

3.98%

4.0343

4.08%

0.36%

2.88%

1.62%

4.28%

3.31% n.a

3.24%

Sun Life of Canada Prosperity Bond Fund, Inc. -a

3.3103

4.83%

1.22%

3.68%

2.16%

Sun Life Prosperity GS Fund, Inc. -a

2.9%

4.07%

0.38%

2.82%

1.5%

4.26%

1.7679

0.34%

2.81%

5.23%

Corporate Debt Vehicle (units) ATRAM Unitized Corporate Debt Vehicle, Inc. -a,3

1.006 n.a n.a n.a n.a n.a

Primarily invested in foreign currency securities (shares) ALFM Dollar Bond Fund, Inc. -a $494.63

3.06%

0.75%

2%

2.54%

3.02%

ALFM Euro Bond Fund, Inc. -a Є213.84

1.93%

-0.82%

0.11%

0.84%

1.99%

ATRAM Total Return Dollar Bond Fund, Inc. -b$1.04012.78%

-6.58%

-1.55%

0.15%

3.04%

First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0247 3.78%

-2.44%

-0.16% n.a

PAMI Global Bond Fund, Inc. -b$0.8554

-1.46%

-7.82%

-3.73%

-3.09%

-4.96%

Philam Dollar Bond Fund, Inc. -a

$2.3103

5.91%

-3%

1.26%

1.98%

5.98%

1.55%

-0.79%

1.34%

1.6%

2.02%

3%

-4.36%

-0.31%

0.66%

Philequity Dollar Income Fund, Inc. -a $0.0609054

Sun Life Prosperity Dollar Abundance Fund, Inc. -a $2.8237

4.22%

3.76%

Money Market Funds Primarily invested in Peso securities (shares) ALFM Money Market Fund, Inc. -a 136.76

2.74%

1.77%

2.52%

2.04%

2.63%

First Metro Save and Learn Money Market Fund, Inc. -a 1.1075 3.23%

1.87% n.a n.a

Sun Life Prosperity Peso Starter Fund, Inc. -a 1.37472.78%

2.46%

1.98%

2.01%

3.16%

2.71%

Primarily invested in Peso securities (units) ALFM Money Market Fund, Inc. -a 104.46

4.09% n.a n.a n.a

3.97%

Primarily invested in foreign currency securities (shares) Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0962

2.5%

1.37%

1.54% n.a

2.53%

Feeder Funds Primarily invested in Peso securities (units) ALFM Global Multi-Asset Income Fund, Inc. -a 43.2294 1.4% n.a n.a n.a Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a

1.4628

20.96%

1.29%

9.26% n.a n.a

18.72% Sun Life Prosperity World Income Fund, Inc. -a,1

0.9973 n.a n.a n.a n.a n.a

Primarily invested in foreign currency securities (Units) ALFM Global Multi-Asset Income Fund, Inc. -a $0.802 0.63%

-6.46% n.a n.a

1.52%

a - NAVPS as of the previous banking day.

1 - Launch date is August 22, 2023.

b - NAVPS as of two banking days ago.

2 - Launch date is October 6, 2023.

Share prices closed higher for the second straight week as bulls went on to sustain the previous week’s momentum, and closed at 6,500-point level ahead of the long Christmas Holiday break.

The benchmark Philippine Stock Exchange index closed at 6,501points.

The main index was down in three of the five trading sessions, but investors bought shares for the holiday break.

Average for the week, meanwhile, was still anemic worth only at P4.15 billion from an average of P4.85 billion. Foreign investors were net sellers at P712.75 million.

Most of the other sub-indices ended on the green, with the exception of the Holding Firms index that shed 27.57 points to 6,367.59 points and the Industrial index that fell 46.85 to 8,916.57. The broader All Shares index gained 17.75 to 3,427.30, the Financials index was up 12.64 to 1,733.21, the Property index increased 38.77 to 2,850.15, the Services index rose 21.62 to 1,585 and the Mining and Oil index climbed 20.88 to 9,542.74.

For the week, gainers still was marginally ahead of the losers at 113 to 107 and 32 shares were unchanged.

Top gainers were Jolliville Holdings Corp., Pacific Online Systems Corp., Easycall Communications Philippines Inc., Philippine Racing Club Inc., ABS-CBN Corp., Century Peak Holdings Corp. and Concrete Aggregates Corp. B shares.

Top losers, meanwhile, were AgriNurture Inc., Medco Holdings Inc., NiHAO Mineral Resources International Inc., I-Remit Inc., Seafront Resources Corp., Apollo Global Capital Inc. and Discovery World Corp.

This week

Primarily invested in foreign currency securities (shares) Cocolife Dollar Fund Builder, Inc. -a

Last week

c - Listed in the PSE.

3 - Launch date is May 25, 2023.

Share prices may rise this week as market analysts expect more buoyant movement in the coming sessions the December-January season, which has historically been the most successful trading months for the benchmark index.

It will be a three-day trading week as Monday is Christmas Day and Tuesday was declared as a non-working holiday by Malacanan Palace.

“2023 looks poised to conclude without major new developments, despite global interest rates and crude oil prices on a downward trek. Investors will likely wait for 2024 developments amid robust corporate earnings and low valuations and robust GDP (gross domestic product) growth in 2023,” First Metro Investment Corp. and University of Asia and the Pacific’s market research said.

“The year may, after all, not end with a whimper despite the absence of new stimuli.

A last-minute rush to the local equities market comes with more risk appetite as the VIX Volatility Index, which usually used as an indicator of financial market risk, has gone to the calm period of below-15 points for a month now, despite the wars in Ukraine and Middle East,” it said.

Meanwhile, broker 2TradeAsia said the holiday season is also a time for reflection in as much as it is for celebration, making it un-ironically fitting for local equities to historically rally around this period.

“Note that a number of issues continue to trade closer to their 52-week lows than their highs, despite more comfortable macro backdrop heading into 2024 plus internal financials confirming cashflow strength,” it said.

“We continue to harp on value plays in banking, property, and gaming, where the risk-reward is maximized with little downside risk, that is if current base-case expectations on interest rate easing do not materialize,” it said.

Immediate support for the main index is seen at 6,350 points and resistance is at 6,600 points.

“While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www.

pifa. com.ph to see the latest NAVPS/NAVPU.”

Stock picks Maybank Securities has maintained its buy rating on Aboitiz-led Union Bank of the Philippines as it cut its net income on the lender by 14 percent this year and by 9 percent next year on higher impairment cost and higher operating expense forecast.

“Still, we maintain buy as the stock has already fallen 31 percent year-to-date, providing for an attractive upside to our target price,” the broker said.

“Also, once UBP has fully rebranded its acquired Citi cards, it will no longer have to pay significant costs, effectively freeing up funds for expansion of the business and its digital banking arm,” it said.

It has set its target price on the stock at P75 per share.

Union Bank’s shares closed at P49.90 apiece on Friday.

Meanwhile, the broker also maintained its buy rating on the stock of Ayala Land Inc. as its earnings growth for the nine months of the year came in with its 2023 forecast at a growth of 76 percent.

“Given the residential segment’s slower-than-expected growth, we lower 2023 earnings estimates and 2024 revenues estimates by 8 percent and 16 percent, respectively We also cut our cost of real estate assumption by 14 percent and 21 percent, respectively,” the broker said. It revised its income growth this year by 8 percent to P24.5 billion and cut its profits growth next year by 8 percent to P27.4 billion.

Ayala Land shares closed at P34.10 apiece last week. VG Cabuag

www.businessmirror.com.ph

PSE STOCK QUOTATIONS

December 22, 2023

Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALs

ASIA UNITED BDO UNIBANK BANK COMMERCE BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PHIL NATL BANK PHILTRUST RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL FERRONOUX HLDG FILIPINO FUND MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE

1,299,250 67,625,137 7,538 88,662,050 383,165 583,003 34,154,914.50 44,772 707,550 2,298 298,225 12,012,778.50 16,313,950 1,410 840,380 14,300 29,400 104,500 18,250 40,250 81,300

166,600 9,145,788 -9,489,119 -222,435 403,096 -7,502,175 861 -167,076 -278,875 -4,232,760.50 -592,680 -29,400 104,500 0 5,250 81,300

INDUSTRIAL ACEN CORP 4.12 4.15 3.76 4.15 3.46 4.15 110,875,000 425,664,060 ALSONS CONS 0.54 0.56 0.53 0.56 0.53 0.54 185,000 98,310 ALTERNERGY HLDG 0.7 0.73 0.73 0.73 0.7 0.73 501,000 356,690 ABOITIZ POWER 37.15 37.4 37.05 37.5 36.95 37.15 166,500 6,193,580 RASLAG 1.15 1.2 1.16 1.2 1.13 1.2 328,000 378,720 BASIC ENERGY 0.176 0.179 0.177 0.179 0.176 0.176 100,000 17,790 FIRST GEN 17.26 17.44 17.2 17.54 17.02 17.26 256,900 4,440,922 FIRST PHIL HLDG 62.8 63.5 62.95 63.5 62.95 63.5 10,080 638,921 JOLLIVILLE HLDG 3.15 6.28 5.79 5.83 5.79 5.83 20,000 116,180 MERALCO 386.8 388 385 390 384.2 388 103,260 40,051,286 MANILA WATER 18.4 18.46 18.2 18.46 18.2 18.4 617,200 11,349,982 PETRON 3.46 3.48 3.5 3.5 3.44 3.48 524,000 1,821,000 PETROENERGY 4.38 4.6 4.59 4.59 4.59 4.59 1,000 4,590 PHX PETROLEUM 4.72 4.9 4.9 4.9 4.9 4.9 4,000 19,600 REPOWER ENERGY 6.96 6.99 6.99 6.99 6.98 6.99 22,400 156,565 SYNERGY GRID 6.52 6.6 6.61 6.61 6.46 6.6 339,900 2,218,907 SHELL PILIPINAS 10.92 11 11 11 10.92 11 16,600 182,448 SPC POWER 6.91 7 6.89 7 6.88 7 67,700 468,185 SP NEW ENERGY 1.1 1.12 1.1 1.14 1.08 1.12 19,584,000 21,848,330 AGRINURTURE 0.65 0.66 0.7 0.7 0.64 0.65 8,387,000 5,495,630 AXELUM 2.34 2.35 2.41 2.41 2.35 2.35 63,000 150,310 CENTURY FOOD 30.6 31 30.55 31.2 30.45 31 707,000 21,780,860 DEL MONTE 6.48 6.5 6.59 6.59 6.5 6.5 39,700 258,059 DNL INDUS 6.2 6.22 6.15 6.24 6.1 6.22 1,235,300 7,608,713 EMPERADOR 20.75 20.8 20.65 20.8 20.65 20.75 458,100 9,492,825 SMC FOODANDBEV 50.4 50.5 50.4 50.5 50.1 50.5 10,380 523,164 FIGARO COFFEE 0.6 0.61 0.6 0.61 0.59 0.6 2,148,000 1,278,590 ALLIANCE SELECT 0.42 0.47 0.47 0.47 0.47 0.47 170,000 79,900 FRUITAS HLDG 0.95 0.97 0.98 0.98 0.95 0.95 2,613,000 2,503,370 GINEBRA 166 169 169.9 169.9 169 169 44,180 7,506,146 JOLLIBEE 244 250 242 250 240.2 250 456,170 112,989,060 KEEPERS HLDG 1.51 1.52 1.5 1.52 1.5 1.51 2,297,000 3,470,720 LIBERTY FLOUR 12.02 15.98 15.98 15.98 15.98 15.98 100 1,598 MACAY HLDG 5.56 6.35 5.6 6.35 5.6 6.35 9,700 54,395 MAXS GROUP 3.17 3.3 3.2 3.3 3.2 3.3 25,000 80,390 MONDE NISSIN 8.28 8.37 8.14 8.37 7.99 8.37 5,218,600 42,888,763 SHAKEYS PIZZA 9.69 9.7 9.55 9.7 9.55 9.7 1,566,300 14,958,995 ROXAS AND CO 0.46 0.485 0.47 0.485 0.46 0.485 290,000 138,550 RFM CORP 2.98 2.99 2.99 3 2.98 2.98 1,973,000 5,898,930 ROXAS HLDG 0.51 0.6 0.6 0.6 0.6 0.6 4,000 2,400 UNIV ROBINA 114.9 115 115 115 114.3 115 897,140 103,129,847 VITARICH 0.49 0.51 0.5 0.51 0.49 0.49 328,000 161,100 CEMEX HLDG 0.91 0.98 0.93 0.98 0.9 0.98 897,000 868,180 EC VULCAN CORP 0.61 0.65 0.6 0.63 0.6 0.63 200,000 121,080 EEI CORP 5.58 5.7 5.69 5.8 5.51 5.58 382,700 2,154,266 MEGAWIDE 3.05 3.09 3.03 3.09 3.03 3.09 804,000 2,453,300 PHINMA 19.9 20.1 20 20.1 20 20.1 10,200 205,000 CROWN ASIA 1.53 1.57 1.57 1.58 1.57 1.57 22,000 34,700 EUROMED 0.71 0.74 0.7 0.75 0.7 0.75 72,000 50,460 MABUHAY VINYL 5.96 5.99 5.98 5.99 5.98 5.99 3,300 19,757 PRYCE CORP 5.2 5.31 5.35 5.36 5.3 5.31 5,000 26,684 CONCEPCION 13.58 14.44 14.42 14.44 14.42 14.44 10,400 149,976 GREENERGY 0.222 0.224 0.23 0.23 0.205 0.224 27,370,000 5,993,160 INTEGRATED MICR 3.03 3.04 3.03 3.05 3.02 3.03 340,000 1,030,360 IONICS 0.98 0.99 0.99 1.01 0.95 0.99 1,266,000 1,228,120 PANASONIC 4.6 5.4 5.46 5.46 5.03 5.45 4,000 20,970 SFA SEMICON 1.99 2.05 2.04 2.05 2.04 2.05 484,000 990,640 CIRTEK HLDG 1.51 1.52 1.5 1.54 1.49 1.52 271,000 407,730

-74,193,840 -14,000 -2,153,665 -228,534 638,921 12,921,408 3,975,548 -80,040 -19,600 2,796 -13,443 -48,400 -1,375 5,523,450 -317,320 401,890 197,497 -7,858,305 -76,936.50 -52,130 79,900 8,550 6,780,709 17,384,516 264,000 -57,860 -929,512 106,745 92,150 -525,900 -64,026,019 772,750 11,949 476,180 18,706.00 -144,200 -12,960 -833,390 17,550 -57,400.00 3,080

ABACORE CAPITAL AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL ANSCOR COSCO CAPITAL DMCI HLDG FILINVEST DEV GT CAPITAL JG SUMMIT KEPPEL HLDG A LODESTAR LT GROUP PACIFICA HLDG PRIME MEDIA SOLID GROUP SM INVESTMENTS SAN MIGUEL CORP TOP FRONTIER

-18,782,760 -1,949,315 6,546,194 -6,816 -413,170 218,607.00 -12,669,440 -2,543,480 2,895,823 9,400 73,699,990 3,089,436 -

HOLDING & FRIMS

34 130 6.91 103.4 30 8.27 50.75 8.5 18.4 85.05 21.1 71.65 49.7 1.39 2.52 2.72 3.6 1,100 0.36 172.8 2,710

0.83 711.5 50.15 9.75 11.1 4.8 9.39 5.3 577 40.7 4.2 0.4 8.9 1.15 2.72 0.93 904.5 110.5 96.6

34.3 130.2 7.23 104.1 30.05 8.34 50.8 8.61 18.42 114.9 21.5 72.1 49.9 1.4 2.66 2.87 5.8 1,130 0.375 175 2,720

0.84 714.5 50.3 9.8 11.62 4.88 9.4 5.32 580 41 0.435 8.94 1.28 2.85 0.94 908 111 102.7

34 130 6.81 104.5 30.05 8 50.9 8.61 18.3 114.9 21.5 71.5 48.5 1.41 2.66 2.86 4.2 1,100 0.365 175 2,710

0.85 708 49.1 9.66 11.36 4.74 9.37 5.3 584 41 4.3 0.4 8.86 1.16 2.72 0.94 902.5 111 102.7

34.9 130.7 7.28 104.5 30.5 8.35 50.9 8.61 18.4 114.9 21.5 72.9 49.9 1.41 2.66 2.86 4.2 1,100 0.365 175 2,710

0.88 717 50.3 9.8 11.64 4.81 9.42 5.3 586.5 41 4.3 0.44 8.97 1.16 2.72 0.94 915 111 102.7

34 129.2 6.81 102.4 30.05 8 50.7 8.61 18.3 114.9 21.1 71.5 47.2 1.41 2.5 2.86 4.2 1,100 0.365 175 2,710

0.83 708 49.1 9.66 11.36 4.59 9.37 5.3 571.5 40.6 4.3 0.4 8.86 1.15 2.72 0.94 901 110.1 102.7

34 130 7.28 104.1 30.05 8.34 50.8 8.61 18.4 114.9 21.1 71.65 49.9 1.41 2.52 2.86 4.2 1,100 0.365 175 2,710

0.84 714.5 50.15 9.75 11.64 4.8 9.4 5.3 580 40.7 4.3 0.44 8.94 1.15 2.72 0.94 904.5 111 102.7

38,200 520,440 1,100 858,600 12,700 70,300 672,390 5,200 38,500 20 14,100 167,550 337,000 1,000 335,000 5,000 7,000 95 50,000 230 30

524,000 128,880 1,165,800 5,092,000 2,700 324,000 806,700 200 161,050 272,100 6,000 60,000 835,400 5,000 7,000 10,000 212,770 57,900 50

440,110 91,854,880 58,345,395 49,591,033 30,980 1,528,910 7,586,306 1,060 93,359,230 11,085,225 25,800 24,400 7,446,893 5,770 19,040 9,400 192,981,300 6,396,615 5,135

PROPERTY ARTHALAND CORP 0.415 0.43 0.435 0.435 0.435 0.435 80,000 34,800 ANCHOR LAND 3.6 5.1 5 5.1 5 5.1 200 1,010 AYALA LAND 34.05 34.1 33.5 34.3 33.5 34.1 7,494,500 255,222,945 AYALA LAND LOG 1.67 1.7 1.67 1.7 1.66 1.7 359,000 607,730 ALTUS PROP 8.94 9.36 8.95 8.95 8.94 8.94 41,500 371,114 ARANETA PROP 1.01 1.03 1.05 1.06 1.01 1.03 5,218,000 5,356,890 AREIT RT 33.15 33.25 33.5 33.5 33.1 33.25 309,600 10,337,145 A BROWN 0.64 0.65 0.65 0.65 0.65 0.65 9,000 5,850 CITYLAND DEVT 0.69 0.7 0.7 0.7 0.66 0.7 82,000 55,730 CROWN EQUITIES 0.06 0.067 0.059 0.067 0.059 0.067 70,000 4,260 CEB LANDMASTERS 2.54 2.55 2.48 2.55 2.47 2.55 202,000 503,470 CENTURY PROP 0.28 0.285 0.275 0.28 0.275 0.28 1,110,000 307,400 CITICORE RT 2.56 2.57 2.58 2.58 2.55 2.56 1,738,000 4,453,590 DOUBLEDRAGON 7.45 7.72 7.41 7.72 7.41 7.72 131,300 996,475 DDMP RT 1.18 1.19 1.19 1.2 1.16 1.19 3,523,000 4,142,720 DM WENCESLAO 5.01 5.5 5.95 5.95 5.5 5.5 209,000 1,191,250 EMPIRE EAST 0.124 0.128 0.128 0.129 0.128 0.129 70,000 8,970 EVER GOTESCO 0.275 0.285 0.285 0.29 0.28 0.285 760,000 215,650 FILINVEST RT 2.59 2.6 2.62 2.67 2.58 2.6 2,375,000 6,165,890 FILINVEST LAND 0.57 0.58 0.56 0.57 0.55 0.57 2,597,000 1,468,540 GLOBAL ESTATE 0.74 0.8 0.74 0.74 0.74 0.74 2,000 1,480 8990 HLDG 8.7 9.02 9.03 9.05 8.62 9.04 94,700 852,618 GOLDEN MV 827 845 820 845 820 845 1,250 1,046,570 CITY AND LAND 0.73 0.75 0.75 0.75 0.73 0.73 16,000 11,720 MEGAWORLD 1.95 1.97 1.95 1.97 1.94 1.97 4,441,000 8,680,580 MRC ALLIED 1.37 1.4 1.36 1.42 1.35 1.4 54,000 74,470 MREIT RT 12.4 12.48 12.14 12.5 12.1 12.48 642,900 7,945,082 PHIL ESTATES 0.31 0.32 0.32 0.32 0.32 0.32 10,000 3,200 PREMIERE RT 1.52 1.54 1.52 1.54 1.52 1.54 337,000 515,740 RL COMM RT 4.85 4.86 4.8 4.85 4.77 4.85 8,248,000 39,759,620 ROBINSONS LAND 15.68 15.74 15.7 15.76 15.64 15.74 1,198,200 18,814,386 ROCKWELL 1.36 1.4 1.34 1.4 1.34 1.36 45,000 62,010 SHANG PROP 3.66 3.68 3.65 3.66 3.65 3.66 67,000 244,580 STA LUCIA LAND 3.01 3.4 3.4 3.4 3.4 3.4 6,000 20,400 SM PRIME HLDG 33.1 33.2 33.05 33.3 32.95 33.1 4,672,100 154,687,065 VISTAMALLS 2.26 2.41 2.41 2.41 2.26 2.26 6,000 13,710 SUNTRUST RESORT 0.8 0.85 0.85 0.85 0.8 0.8 34,000 27,250 PTFC REDEV CORP 49 59.95 49 49 49 49 100 4,900 VISTA LAND 1.58 1.59 1.57 1.59 1.57 1.58 838,000 1,320,470 VISTAREIT RT 1.67 1.68 1.69 1.69 1.67 1.67 594,000 994,770

SERVICES ABS CBN 4.42 4.45 4.3 4.5 4.3 4.45 160,000 710,860 GMA NETWORK 8.31 8.32 8.32 8.33 8.29 8.32 210,400 1,749,852 GLOBE TELECOM 1,713 1,720 1,718 1,739 1,711 1,713 10,800 18,556,475 PLDT 1,270 1,280 1,291 1,295 1,270 1,270 61,230 78,430,310 APOLLO GLOBAL 0.013 0.014 0.012 0.014 0.012 0.013 187,300,000 2,371,800 CONVERGE 8.26 8.27 8 8.26 7.95 8.26 3,414,900 27,815,850 DFNN INC 3.07 3.16 3.15 3.15 3.1 3.1 34,000 106,180 DITO CME HLDG 2.4 2.44 2.38 2.47 2.34 2.44 2,687,000 6,464,040 NOW CORP 1.1 1.11 1.06 1.1 1.06 1.1 435,000 468,670 TRANSPACIFIC BR 0.133 0.139 0.139 0.145 0.135 0.136 410,000 57,600 ASIAN TERMINALS 15.5 15.7 15.7 15.7 15.5 15.5 9,400 145,780 CHELSEA 1.48 1.51 1.46 1.51 1.45 1.51 145,000 214,860 CEBU AIR 32.2 32.5 32.2 32.5 32 32.5 74,400 2,403,545 INTL CONTAINER 239.8 240 240.2 245 239.8 240 507,710 122,525,544 LBC EXPRESS 16.98 18.26 18.26 18.26 18.26 18.26 500 9,130 MACROASIA 3.93 3.94 3.9 3.93 3.9 3.93 180,000 706,000 PAL HLDG 5.1 5.33 5.06 5.1 5.06 5.06 6,000 30,444 HARBOR STAR 0.76 0.79 0.75 0.79 0.75 0.79 181,000 135,840 BOULEVARD HLDG 0.063 0.065 0.062 0.065 0.062 0.065 4,480,000 286,220 DISCOVERY WORLD 1.06 1.24 1.05 1.05 1.05 1.05 2,000 2,100 CENTRO ESCOLAR 8.02 8.48 8.48 8.48 8.48 8.48 800 6,784 FAR EASTERN U 568 598.5 598.5 598.5 598.5 598.5 20 11,970 IPEOPLE 7.3 7.37 7.35 7.37 7.35 7.37 2,400 17,686 STI HLDG 0.485 0.49 0.48 0.495 0.48 0.49 6,260,000 3,071,450 BELLE CORP 1.17 1.18 1.18 1.18 1.16 1.18 22,000 25,900 BLOOMBERRY 9.76 9.8 9.79 9.89 9.74 9.8 1,197,100 11,708,460 PACIFIC ONLINE 4.8 4.85 4.31 4.9 4.31 4.85 860,000 4,078,130 PH RESORTS GRP 0.89 0.9 0.88 0.92 0.85 0.89 3,315,000 2,981,150 PREMIUM LEISURE 0.59 0.6 0.61 0.61 0.59 0.59 7,865,000 4,695,440 DIGIPLUS 7.27 7.29 7.09 7.36 7.09 7.27 6,103,500 44,505,331 PHILWEB 1.68 1.71 1.65 1.71 1.65 1.71 114,000 189,710 ALLDAY 0.156 0.16 0.155 0.16 0.155 0.156 1,000,000 155,480 ALLHOME 1.14 1.15 1.15 1.16 1.11 1.15 3,002,000 3,394,240 METRO RETAIL 1.24 1.26 1.27 1.27 1.24 1.25 60,000 74,770 PUREGOLD 27.8 27.85 27.25 27.85 27 27.85 1,431,400 39,373,220 ROBINSONS RTL 39.3 39.45 38.8 39.8 38.8 39.45 183,600 7,236,790 PHIL SEVEN CORP 75.5 76 76.25 76.25 76.25 76.25 530 40,412.50 SSI GROUP 2.37 2.4 2.48 2.51 2.3 2.4 2,925,000 6,978,910 UPSON INTL CORP 1.57 1.69 1.65 1.69 1.57 1.69 8,000 13,220 WILCON DEPOT 21.25 21.5 21.2 21.5 21 21.5 246,300 5,257,770 MEDILINES 0.31 0.33 0.325 0.33 0.31 0.31 170,000 53,050 PRMIERE HORIZON 0.164 0.166 0.168 0.168 0.164 0.164 190,000 31,200

MINING & OIL ATOK 4.9 4.94 5.5 5.5 4.56 4.94 109,300 514,778 APEX MINING 2.98 3 2.98 3.01 2.97 2.98 5,027,000 15,038,490 ATLAS MINING 3.42 3.46 3.35 3.42 3.35 3.42 167,000 567,550 BENGUET A 4.71 4.79 4.79 4.79 4.71 4.75 88,000 414,720 BENGUET B 4.7 4.88 4.71 4.88 4.7 4.7 33,000 156,200 CENTURY PEAK 3.47 3.54 3.5 3.54 3.47 3.54 1,515,000 5,349,470 DIZON MINES 2.71 3.09 3.1 3.1 3 3 10,000 30,500 FERRONICKEL 2 2.05 2.03 2.06 2 2.05 429,000 872,380 GEOGRACE 0.028 0.03 0.028 0.028 0.028 0.028 500,000 14,000 LEPANTO A 0.081 0.082 0.081 0.082 0.081 0.082 1,470,000 120,140 LEPANTO B 0.079 0.082 0.078 0.078 0.078 0.078 30,000 2,340 MANILA MINING A 0.0045 0.0047 0.0047 0.0047 0.0047 0.0047 2,000,000 9,400 MARCVENTURES 1.05 1.06 1.05 1.05 1.05 1.05 107,000 112,350 NICKEL ASIA 5.05 5.07 5.05 5.09 5 5.05 8,622,300 43,343,628 ORNTL PENINSULA 0.63 0.66 0.63 0.67 0.62 0.67 21,000 13,170 PX MINING 3.15 3.16 3.12 3.2 3.12 3.16 538,000 1,711,120 SEMIRARA MINING 28.25 28.35 28.5 28.5 28.15 28.35 1,135,800 32,135,935 UNITED PARAGON 0.0038 0.0044 0.0039 0.0039 0.0039 0.0039 1,000,000 3,900 ENEX ENERGY 4.5 4.69 4.6 4.82 4.55 4.55 11,000 50,570 PHILODRILL 0.0075 0.0082 0.0082 0.0082 0.0082 0.0082 1,000,000 8,200 PXP ENERGY 3.63 3.7 3.63 3.72 3.63 3.63 131,000 478,050

PREFFERED ACEN PREF B 1,070 1,080 1,052 1,070 1,052 1,070 1,100 1,159,000 AC PREF AR 2,470 2,502 2,472 2,472 2,470 2,470 60 148,240 CEB PREF 32 32.45 32.1 32.45 32.1 32.45 18,700 605,615 DD PREF 93.75 94.5 94 94.5 94 94.45 18,420 1,733,510 EEI PREF B 95.3 96.8 96.95 96.95 96.95 96.95 50 4,847.50 JFC PREF B 910 944 920 945 920 945 520 485,250 MWIDE PREF 4 90.05 92 91.25 92 91.25 92 460 41,982.50 MWIDE PREF 5 101.3 101.4 101.3 101.4 101.3 101.4 1,190 120,660 PNX PREF 3B 23.2 24.85 23.2 24.95 23.2 24.95 2,700 62,815 PCOR PREF 3B 970.5 980 980 980 980 980 10 9,800 PCOR PREF 4C 965 1,000 1,000 1,000 1,000 1,000 10 10,000 SMC PREF 2F 72.3 72.9 72.5 72.5 72.5 72.5 1,000 72,500 SMC PREF 2K 65.15 67.95 65.1 65.35 65.1 65.15 39,940 2,601,705 SMC PREF 2O 77.35 77.5 77.5 77.5 77.35 77.35 3,600 278,750

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR GMA HLDG PDR

WARRANTS

TECH WARRANT

4.15 4.25 4.17 4.3 4.17 4.3 2,000 8.29 8.34 8.36 8.36 8.25 8.34 144,600

0.295

0.33

SMALL, MEDIUM & EMERGING

BALAI FRUITAS CTS GLOBAL HAUS TALK ITALPINAS KEPWEALTH MERRYMART XURPAS

0.38 0.75 0.97 0.68 1.53 1.01 0.19

0.395 0.76 0.99 0.69 1.77 1.02 0.2

EXHANGE TRADE FUNDS FIRST METRO ETF

102

102.5

0.3

0.34

0.3

0.34

260,000

19,207,465 -1,690 -2,221,925 167,400 41,000 319,307 -1,109,900 -270,700 -145,400 13,000 890,400 -490,270 404,968 -4,620 -32,215,200 4,287,648 -7,330 -20,400 4,151,535 -199,350 -28,550 -11,009,600 -2,890,210 70,000 5,770,728 -215,890 -32,800 6,280 611,525 16,368,210 19,500 14,168.00 735 9,800 -8,200 -3,224,530.00 -24,100 1,538,590 -1,220 7,388,369 -1,570 239,250.00 18,647,670 -2,956,685.00 -21,350 -2,635,090 1,690 1,496,745 23,250 960,750 130,650 4,071,000 -109,440 14,000 2,777,927 143,850 -1,696,395 -13,650 110,300 49,440 599,195 -

8,470 1,200,558

-4,300 946,424.00

78,700

-

0.395 0.41 0.39 0.395 310,000 122,450 15,650 0.76 0.76 0.76 0.76 5,000 3,800 0.98 1 0.97 1 745,000 726,740 0.67 0.69 0.65 0.69 114,000 76,370 -9,380 1.53 1.53 1.53 1.53 1,000 1,530 1 1.02 1 1.01 982,000 991,730 -20,200 0.2 0.2 0.2 0.2 40,000 8,000

102 102.5 101.8 102.5 21,300 2,174,540

-

www.news.businessmirror@gmail.com

‘BSP tack may goad banks to fund RE’

By Lorenz S. Marasigan @lorenzmarasigan

T

HE Department of Energy (DOE) expects the recent initiative by the Bangko Sentral ng Pilipinas (BSP) to expand financing for sustainable energy projects would stimulate lending to renewables.

This was what Energy Secretary Raphael P.M. Lotilla pointed out last Thursday as the DOE continues to seek funding for the Philippine Energy Transition (PET) program.

Lotilla specifically cited the BSP’s move to increase the Single Borrower’s Limit (SBL) for green loans by 15 percent and gradually reducing the reserve requirement for green bonds from 3 percent to 0 percent over a two-year period.

These measures are expected to encourage banks to provide more financing for sustainable and environmentally responsible energy projects, according to the DOE chief.

Lotilla explained that the DOE’s energy transition strategies under the PET program will be greatly supported by the BSP’s initiatives. The strategies are expected to achieve at least a 35-percent share of renewable energy (RE) in electricity generation by 2030 and 50 percent by 2040.

“These would entail big investments where private sector funds, including equity investments, green bonds or loans would be needed,” he said. “We are therefore pleased with this development noting that clean energy investments over the next decade will be carried out by the private developers.”

Other projects under the transition program that could benefit from the green lending policy include the construction of necessary port infrastructure to support offshore wind and other marine-based energy resource development projects as well as the provision for an avenue for voluntary early decommissioning or repurposing of existing coal-fired power plants.

Universal and commercial banks have already been involved in financing or approving loans for green and sustainable projects. Lotilla welcomed the BSP’s observation that the top five green projects supported by these banks align with the concerns of the DOE, focusing on renewable energy, energy efficiency, and green buildings.

The BSP’s initiatives are part of its 11-point “Sustainable Central Banking Strategy,” aimed at mainstreaming sustainable finance and supporting the Philippines’s climate commitments and sustainable development goals.

Lotilla also commended the Board of Investments (BOI) for offering incentives such as income tax holidays and duty exemptions for own-use renewable energy and energy efficiency projects.

“This would certainly aid energy efficient projects which will ultimately redound to the benefit of consumers. The tax incentives will result in increased economic activity and the potential to generate more jobs,” he said.

Lotilla emphasized that these collaborative actions underscore the government’s “harmonious” work environment that will accelerate the country’s energy transition program.

Banking&Finance BusinessMirror

Editor: Dennis D. Estopace • Monday-Tuesday, December 25-26, 2023

B3

DOF mulls over IMF debt-cap advice

T

By Jasper Emmanuel Y. Arcalas

@jearcalas

HE Department of Finance (DOF) will “explore” the proposal by the International Monetary Fund (IMF) to use as fiscal anchor the 60-percent of GDP debt ceiling.

This was contained in the statement issued by the DOF last Friday.

The Finance department also said it would also consider the IMF’s proposal of treating the 3-percent fiscal deficit target as an operational target “to steer fiscal policy in the medium term.”

The DOF is considering some of the policy recommendations made by the IMF stipulated in the multilateral lender’s staff report on the recently concluded Article IV Mission to the Philippines, the statement read.

Part of the recommendations by the IMF were for the Philippines to

consider making the 60-percent ratio of debt to gross domestic product (GDP) as a “fiscal anchor” while making the national government’s fiscal deficit goal as an “operational target” to guide the state’s fiscal policy over the medium term.

The Marcos administration, under its Medium Term Fiscal Framework, plans to bring down the state’s debt-to-GDP ratio below 60 percent by 2025 and trim its deficit-to-GDP ratio to 3 percent by 2028.

Pundits define a fiscal anchor as the primary fiscal or budget rule that governs a state’s decisions regarding

its fiscal space.

Last month, the Bureau of the Treasury (BTr) revealed that the national government could end the year with a debt-to-GDP ratio lower than its 61.4 percent full-year target as its outstanding debt in relation to economic output eased to 60.2 percent in the third quarter.

In a report, the BTr said the country’s debt-to-GDP ratio—which compares what a country owes with what its produces—fell in the third quarter from 61 percent in the second quarter.

Furthermore, the national government’s (NG) third quarter debt-toGDP ratio was 3.4 percentage points lower than the 63.6 percent recorded in the third quarter of last year.

The Treasury also said the national government’s deficit-to-GDP ratio eased to 5.71 percent in the third quarter from 6.45 percent in the same period of last year.

“The pace of fiscal consolidation outlined in the MTFF is appropriate, and the front-loaded fiscal consolidation starting in

2022–23 is expected to bring the national government debt down to below 59 percent of GDP in 2027 as recommended in the 2022 Article IV consultation,” the IMF said in its report.

The IMF also suggested that the Philippines introduce a “tax-policy oriented medium-term revenue strategy” that would lay out a “more ambitious” tax measures to “protect and finance more social spending” by the national government. The IMF noted that the state’s tax-to-GDP at the end of 2022 stood at 14.6 which it pointed out was “relatively low.”

The multilateral lender singled out the state’s value added tax (VAT) collection which is only able to “capture only a third” of the potential tax base. (Related story: https://businessmirror.com. ph/2023/05/31/vat-drive-missing-%E2%82%A7539b-dof/) Earlier this year, Finance Secretary Benjamin E. Diokno said that the government is collaborating with the IMF on how to boost the country’s value VAT collection, which currently

Perspectives

SSS E-CENTER This Monday,

November 13, 2023, photo courtesy of the Social Security System (SSS) shows (from left to right): SSS Senior Vice President for Visayas Operations Group Helen C. Solito; SSS Executive Vice President for Branch Operations Sector Atty. Voltaire P. Agas; SSS President and Chief Executive Officer Rolando L. Macasaet; Cebu Mitsumi Inc. (CMI) President Tatsuya Mori; SSS Vice President for Visayas Central 1 Division Atty. Alberto L. Montalbo; SSS Danao Branch Head Rocelyn F. Duay; and, CMI Director / Group Executive Officer Caesar D. Augusto during the ribbon cutting ceremony for the formal opening of the SSS e-Center in CMI, the first company in Cebu to have the facility.

ESG Integrity: Safeguarding against the rise in ESG-related fraud

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HE landscape around ESG-related disclosures and compliance is evolving. Regulators are accelerating efforts over mandatory disclosure requirements and taking action against ESG-related misconduct, in a bid to boost the transparency and accountability of companies.

For instance, the Singapore Exchange (SGX) has introduced mandatory climate reporting on a “comply or explain” basis commencing financial year 2023. While there has not been any enforcement action taken in Singapore, the SGX could soon take other countries’ lead in doing so.

Against this backdrop, it is no surprise that ESG-related fraud is also on the rise. ESG-related fraud refers to misrepresentations of ESG practices or performance to improve ESG ratings, demonstrate compliance with ESG-related disclosures or to attract stakeholders (e.g., greenwashing).

ESG-related fraud is not new, as it shares many characteristics with financial fraud and misstatement. Companies may misstate ESG-related targets and disclosures to deceive their stakeholders, which may include non-financial disclosures, such as total water consumption or greenhouse gas emissions.

Like other frauds, ESG-related fraud could lead to expensive and disruptive consequences, including fines and penalties, reputational damage, and loss of investor confidence. ESG-related fraud has the potential for additional impact on the environment and on society, as it means that a company may ultimately have failed to operate sustainably.

Prevent, detect and respond to ESGrelated fraud

TO achieve ESG integrity, ESG-related fraud risks should be a core component of your company’s risk management strategy, encompassing both proactive and reactive controls.

Prevent n Tone at the top. Do your Board and management “walk the talk” on the importance of ESG and the integrity of its reporting? How is this commitment and expectation communicated and reinforced to the rest of the company? n Oversight. Is there appropriate oversight of ESG controls and segregation of duties to mitigate the risk of ESG misconduct and misstatement? Are there defined roles and responsibilities for your ESG compliance programs and disclosures? n Communication and training. Are ESG topics incorporated into your employee training? How is their awareness of ESG and ESG-related fraud measured? n Fraud risk assessments. Have you refreshed your fraud risk assessment plans to include specific ESG-related risks (e.g. human rights breaches or environmental breaches)? Does your fraud risk assessment consider ESG misconduct (e.g. greenwashing) or mandatory reporting breaches? n Third party risk management. Are ESG risk assessments applied throughout your supply chain?

If vendors provide you with ESG data (e.g. greenhouse gas emissions), how do you gain comfort on the reliability of this data? n Policies and procedures. Do your policies, procedures and internal controls cover ESG-focused risks (e.g. supply chain related bribery & corruption, verification of non-financial disclosures of ESG metrics, and human rights issues in human resource policies)? n Technology. Do you leverage automated re-

porting to monitor the data used for your mandatory ESG disclosures? Are you using technology to proactively identify ESG-related fraud risks before they happen?

Detect n Data analytics. Are you using data analytics to detect unusual ESG metrics that may be too good to be true? How do you scrutinize ESG data provided by vendors to gain comfort on its reliability? n Independent reporting channels. Are there independent channels of communications to facilitate the reporting of potential ESG-related fraud?

Respond n Planning. Do you have a formalized process to respond to allegations or suspicions of ESG-related fraud or misconduct? Does your investigation withstand scrutiny or is it at risk of being viewed as “whitewashing”? n Stakeholders. Have you considered all relevant stakeholders, both internal and external (e.g. regulators, investors or non-financial interest stakeholders)? n The right team. Is your investigation team both qualified and independent, with the appropriate subject matter expertise? n Investigation methodology. Does your investigation encompass both quantitative (e.g. total workforce composition) and qualitative data (e.g. witness evidence on working conditions)? Are you utilizing technology to retain and analyze complex and disparate data in a forensically sound manner that can withstand scrutiny? n Communication. Are the results of your investigation tailored to and shared with the appropriate parties? Do you have a communications plan to address any public fallout from investigations?

Remediate n Once the dust settles and the root cause of the ESG-related fraud is identified, do you have a plan to apply the knowledge gained to mitigate ESG misconduct risks in the future (e.g. internal control remediation, business process improvement, technology implementation or external assurance and review)?

How KPMG can help with ESG integrity services

WE can work with you to design, implement, and assess your ESG integrity compliance programs, based on KPMG proprietary methodologies, regulatory guidance and globally recognized leading practices. We have extensive experience in assisting clients in responding to ESG integrity concerns, whistleblower allegations and litigation.

This excerpt was taken from the KPMG Thought Leadership publication: https://kpmg.com/sg/en/home/insights/2023/12/ esg-integrity.html. © 2023 KPMG Int’l Ltd. is a private English company limited by guarantee. R.G. Manabat & Co., a Philippine partnership, is a member firm of a global organization of independent member firms affiliated with KPMG Int’l Ltd. All rights reserved. Email ph-kpmgmla@kpmg.com or visit www.home. kpmg/ph.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent the BusinessMirror, KPMG International or KPMG in the Philippines.

stands at 40 percent, the lowest in Southeast Asia.

In response to the IMF’s suggestion, the DOF said it is “actively pushing” for the passage of several tax measures that include the VAT on digital service providers.

The other tax measures that the DOF outlined were: Package 4 of the Comprehensive Tax Reform Program or the Passive Income and Financial Intermediary Taxation Act; Package 3 or the Real Property Valuation and Assessment Reform; the excise taxes on single-use plastics and pre-mixed alcoholic beverages; the adjustment of the motor vehicle user’s charge; and, the rationalization of the mining fiscal regime.

Last Friday, Diokno said the DOF is pushing these measures “to boost revenue generation to support highquality spending for socio-economic development and will help attain the government’s goals in poverty reduction and enhance the country’s response to natural disasters while staying on the course of fiscal consolidation.”

CREDIT: Photo courtesy of the Social Security System (SSS)

How to end the year on a high financial note

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S we flip our calendars to the last month of the year, we not only step into a season of joy and celebration but also a crucial time to reflect on our financial journey. As the festive carols start filling the air and the twinkling lanterns light up our streets, it’s essential to remember that the end of the year isn’t just about merriment; it’s also about wrapping up our financial affairs with finesse.

With just a month left before we bid adieu to this year, it’s the perfect time to take stock of our finances. Are we ending the year richer or poorer than we started?

Have we met our savings goals?

Have we paid off our debts? These are some questions we need to ask ourselves.

Let’s navigate the hustle and bustle of December, not just with a shopping list in hand, but also with a solid game plan to strengthen our financial health. Whether you’re an overseas Filipino worker sending your hard-earned money back home, a small business owner juggling daily expenses, or a young professional trying to navigate the complicated world of personal finance, here are some tips to help you breeze through the end of the year on a stronger financial standing: n Audit your finances. The first step in our journey is to take a good, hard look at our finances. Take out your receipts, bank statements, and bills. Be honest with yourself. How much did you earn this year, and where did the money go? Once you understand your financial situation, you can make informed decisions about what needs to change. n Review your financial progress. Reflect on the financial goals you set at the beginning of the year. Did you manage to save a certain percentage of your income? Were you able to pay off a specific amount of your debt?

Understanding your progress will help you identify areas of success and those that need improvement. n Clear your financial clutter. Just like tidying up our homes, it’s necessary to clean up our financial house too. Consolidate your accounts if possible, shred unnecessary documents, and organize your important paperwork. A clutter-free financial life can help you focus on your goals and make informed decisions. n Tackle your debts. If you have debts, now is the time to tackle them head-on. Start by paying off the ones with the highest interest rates. Remember, every peso spent on interest is a peso not saved. Don’t let your hard-earned money go to waste.

Even small regular payments can make a significant difference over time. n Rebalance your investments. Whether your investments are inside or outside a retirement account, consider rebalancing them before the year ends.

Align them with your financial goals, ensuring they’re still serving your needs and risk tolerance. n Set a holiday budget. One key area where many Filipinos tend to overspend is during the festive season. While it’s important to celebrate, it shouldn’t come at the expense of your financial health. Allocate a budget for each holiday expense—from Noche Buena to gifts for your loved ones

and godchildren—and stick to it. n Plan for the future. As we prepare to turn the page on another year, let’s also start planning for our future. If you haven’t already, consider opening a savings account. If you have some extra money, why not invest it?

There are many options available, from mutual funds and UITFs to investing directly in the stock market. With some research and guidance, investing can become a reliable source of income. n Celebrate your successes. Finally, as the year comes to a close, take a moment to celebrate your financial victories, no matter how small. Acknowledge your progress and use it as motivation to continue your journey towards financial stability.

In the end, remember that the journey to financial prosperity isn’t a sprint but a marathon. It requires patience, discipline, and a commitment to continuous learning. But with these steps, you’re well-equipped to end this year on a high financial note and enter 2024 with a stronger financial footing.

Remember, it’s never too late to start. Let’s use the remaining days of the year to set ourselves up for a prosperous New Year.

Janice Sabitsana is a registered financial planner of RFP Philippines. To learn more about financial planning, attend the 105th RFP program this January 2024. Please email info@rfp.ph or visit https://www.rfp.ph for details.

B4 Monday-Tuesday, December 25-26, 2023

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From AI and inflation to Elon Musk and Taylor Swift, the business stories that dominated 2023

By Paul Wiseman & Ken Sweet

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The Associated Press

HE tide turned against inflation.

Artificial intelligence went mainstream—for good or ill. Labor unions capitalized on their growing might to win more generous pay and benefits.

Elon Musk renamed and rebranded the social media platform Twitter, removed guardrails against phony or obscene posts and ranted profanely when advertisers fled in droves.

The American housing market, straining under the weight of heavy mortgage rates, took a wallop.

And Taylor Swift’s concert tour scaled such stratospheric heights that she invigorated some regional economies and drew a mention in Federal Reserve proceedings.

A look back at 10 top business stories in 2023: THE Fed and most other major central banks spent most of the year deploying their interest-rate weapons against the worst bout of inflation in four decades. The trouble had erupted in 2021 and 2022 as the global economy roared out of the pandemic recession, triggering supply shortages and igniting prices.

By the end of 2023, though, the Fed, the European Central Bank and the Bank of England had taken a breather. Their aggressive rate hikes had brought inflation way down from the peaks of 2022, when Russia’s invasion of Ukraine sent energy and grain prices rocketing and intensified price spikes.

In the United States, the Fed’s policymakers delighted Wall Street investors by signaling in December that 2024 would likely be a year of rate cuts—three to be exact, in their expectations—and not rate hikes. The Bank of England and ECB sounded a more cautious note, suggesting that inflation, though trending down, remained above their target.

“Should we lower our guard?"

Christine Lagarde, the ECB president, told reporters. “We ask ourselves that question. No, we should absolutely not lower our guard.”

The Council on Foreign Relations, which tracks interest rates in 54 countries, found that central banks turned aggressive toward inflation in the spring of 2022.

Policies remain tight, the council found, but the overall anti-inflation stance has eased.

AI GOES MAINSTREAM

ARTIFICIAL intelligence thrust itself into public consciousness this year. But the technology, while dazzling for its ability to retrieve information or produce readable prose, has yet to match people’s science fiction fantasies of humanlike machines.

Catalyzing a year of AI fanfare was ChatGPT. The chatbot gave the world a glimpse of advances in computer science, even if not everyone learned quite how it works or how to make the best use of it.

Worries escalated as this new cohort of generative AI tools threatened the livelihoods of people who write, draw, strum or code for a living. AI’s ability to produce original content helped fuel strikes by Hollywood writers and actors and legal challenges from bestselling authors.

By year’s end, the AI crises had shifted to ChatGPT’s own maker, OpenAI, which was nearly destroyed by corporate turmoil over its CEO, and to a meeting room in Belgium, where European Union leaders emerged after days of talks with a deal for the world’s first major AI legal safeguards.

WORKERS SCORE GAINS

THE long-battered American la-

bor movement flexed its muscle in 2023, taking advantage of widespread worker shortages to demand—and receive—significantly better pay and benefits. From Hollywood writers and actors to autoworkers to hotel workers, 510,000 laborers staged 393 strikes in the first 11 months of 2023, according to Cornell University’s Labor Action Tracker.

Under its pugnacious new president, Shawn Fain, the United Auto Workers struck the Big Three automakers—Ford, General Motors and Stellantis, the parent of Chrysler, Jeep and Ram—and won pay raises, improved benefits and numerous other concessions.

Hollywood writers and actors, as a result of their walkouts, secured higher pay and protection from the unrestricted use of artificial intelligence, among other concessions.

The unions’ gains marked a resurgence for their workers after years following the Great Recession of 2007-2009 when union power further dwindled, wage gains languished and employers seemed to have their pick of job candidates. An explosive economic rebound from the COVID-19 recession of 2020 and a wave of retirements left companies scrambling to find workers and provided labor unions with renewed leverage Still, even now, unions remain a shadow of what they once were: As of last year, roughly 10% of US employees belonged to labor unions, way down from 20% in 1983. And back in the 1970s, the United States experienced an average of 500 strikes a year, involving 2 million workers, said Johnnie Kallas, a labor expert at Cornell.

MUSK’S X-RATED TRANSFORMATION

A LITTLE more than a year ago, Elon Musk walked into Twitter’s San Francisco headquarters, fired its CEO and other top executives and began transforming the social media platform into what’s now known as X. Since then, the company has been bombarded by allegations of misinformation, endured significant advertising losses and suffered declines in usage.

Disney, Comcast and other highprofile advertisers stopped spending on X after the liberal advocacy group Media Matters issued a report showing that their ads were appearing alongside material praising Nazis.

(X has sued the group, claiming it “manufactured” the report to “drive advertisers from the platform and destroy X Corp.”)

The problems culminated when Musk went on an expletiveridden rant in an on-stage interview about companies that had

VICTORIA CHIZHEVSKAYA | DREAMSTIME.COM (GENERATIVE AI)

RAGING AGAINST INFLATION

halted spending on X. Musk asserted that advertisers that pulled out were engaging in “blackmail” and, using a profanity, essentially told them to get lost.

“Don’t advertise,” X’s billionaire owner said.

HOUSING’S MISERABLE YEAR

REMARKABLY, the US economy and job market largely avoided pain in 2023 from the Fed’s relentless campaign against inflation—11 interest-rate hikes since March 2022.

Not so the housing market.

As the Fed jacked up borrowing rates, the average 30-year fixed-rate mortgage rate shot up from 4.16% in March 2022 to 7.79% in October 2023. Home sales crumbled. For the first 10 months of 2023, sales of previously occupied homes sank 20%.

Yet at the same time and despite the sales slump, home prices kept rising. The combination of high mortgage rates and rising prices made homeownership—or the prospect of trading up to another house—unaffordable for many.

Contributing to the squeeze was a severe shortage of homes for sale. That, too, was a consequence of higher rates. Homeowners who were sitting on super-low mortgage rates didn’t want to sell their houses only to have to buy another and take on a new mortgage at a much higher rate. Mortgage giant Freddie Mac says 60% of outstanding mortgages still have rates below 4%; 90% are below 6%.

CRYPTO CHAOS (CONTINUED)

IF 2022 was the year that the cryptocurrency industry collapsed, 2023 was the year of the spillover from that fall.

The year’s headlines from crypto were dominated by convictions and legal settlements as Washington regulators adopted a much more aggressive stance toward the industry.

A jury convicted Sam BankmanFried, the founder and former CEO of the crypto exchange FTX, of wire

fraud and six other charges. Weeks later, the founder of Binance, Chengpeng Zhao, agreed to plead guilty to money laundering charges as part of a settlement between US authorities and the exchange. Among the other crypto heavyweights that met legal trouble were Coinbase, Gemini and Genesis.

Yet speculation that crypto may gain more legitimacy among investors helped more than double the price of bitcoin. After years of delays, regulators are eventually expected to approve a bitcoin exchange-traded fund. Whether that would prove sufficient to sustain bitcoin’s rally over the long run remains to be seen.

BANKING JITTERS

HISTORICALLY, high interest rates benefit banks; they can charge more for their loans. But in 2023, higher rates ended up poisoning a handful of them.

The industry endured a banking crisis on a scale not seen since 2008.

Three midsized banks—Silicon Valley Bank, Signature Bank and First Republic Bank—collapsed.

For years, banks had loaded up their balance sheets with highquality mortgages and Treasurys.

In an era of ultra-low rates, those mortgages and bonds paid out puny interest.

Enter the specter of inflation and the Fed’s aggressive rate hikes.

As rates jumped, the banks’ bonds tumbled in value because investors could now buy new bonds with much juicier yields. With pressure on the banks mounting, some anxious depositors withdrew their money. After one such bank run, Silicon Valley collapsed. Days later, Signature Bank failed. First Republic was seized and sold to JPMorgan Chase.

Investors remain concerned about midsized institutions with similar business models. Trillions of dollars in commercial real estate loans that remain on these banks’ books could become problematic in 2024.

GLOBAL MARKETS RALLY

FROM Austria to New Zealand, stock markets rallied through 2023. As inflation eased, stocks climbed despite sluggish global economic growth.

A tumble in crude oil prices helped slow inflation. A barrel of Brent crude, the international standard, dropped 14% through mid-December on expectations that the world has more than enough oil to meet demand.

An index that spans nearly 3,000 stocks from 47 countries returned 18% in US dollar terms as of December 11. Healthy gains for Apple, Nvidia and other US Big Tech stocks powered much of the gains. So did the 45% return for the Danish pharmaceutical company Novo Nordisk, which sells the Wegovy drug to treat obesity and the 33% return for the Dutch semiconductor company ASML. The bond market endured more turbulence. Bond prices tumbled for much of the year, and their yields rose, over uncertainty about how far central banks would go in raising rates to curb inflation.

The yield on the 10-year US Treasury briefly topped 5% in October to reach its highest level since 2007. Yields have since eased on the expectation that the Fed is done raising rates.

WORLD ECONOMY’S RESILIENCE

OVER the past three years, the global economy has absorbed one hit after another. A devastating pandemic. The disruption of energy and grain markets stemming from Russia’s invasion of Ukraine.

A resurgence of inflation. Punishing interest rates.

And yet economic output kept growing in 2023, if only modestly. Optimism grew about a “soft landing”—a scenario in which high rates tame inflation without causing a recession. The head of the International Monetary Fund praised the global economy for its “remarkable resilience.’’

The United States has led the

way. Defying predictions that high rates would trigger a US recession, the world’s largest economy has continued to grow. And employers, fueled by solid consumer spending, have kept hiring at healthy rates.

Still, the accumulated shocks are restraining growth. The IMF expects the global economy to expand just 2.9% in 2024 from an expected 3% this year. A major concern is a weakened China, the world’s No. 2 economy. Its growth is hobbled by the collapse of an overbuilt real estate market, sagging consumer confidence and high rates of youth unemployment.

THE U.S. ECONOMY (TAYLOR’S VERSION)

TAYLOR SWIFT dominated popular culture, with her record-shattering $1-billion concert tour, her anointment as Time magazine’s Person of the Year and her high-profile romance with Travis Kelce, the Kansas City Chiefs football star.

The Swift phenomenon went further yet. It extended into the realm of the national economy.

Her name came up at a July news conference by Fed Chair Jerome Powell, when Powell was asked whether Swift’s blockbuster ticket sales revealed anything about the state of the economy. Though Powell avoided a direct reply, Swift’s name came up that same month in a Fed review of regional economies: Her tour was credited with boosting hotel bookings in Philadelphia.

Economist Sarah Wolfe of Morgan Stanley has calculated that Swifties spent an average of $1,500 on airfares, hotel rooms and concert tickets to her shows (though it’s perhaps worth noting that Beyonce fans spent even more—an average $1,800).

AP Business Writers Stan Choe in New York, Barbara Ortutay in San Francisco and Matt O’Brien in Providence, Rhode Island, contributed to this report.

Style

BusinessMirror

www.businessmirror.com.ph

Editor: Gerard S. Ramos • Monday-Tuesday, December 25-26, 2023

B5

BEAUTY CLINIC CONTINUES TO REDEFINE PERSONAL SUCCESS THROUGH THE ART OF SELF-CARE

contributions to various industries, including entertainment, fashion, business, and social advocacy.

The awardees included Cye Soriano (Promising New Singer/Recording Artist of the Year), Eraseph Winters (Live Entertainer of the Year), Kim Atienza (TV Host of the Year), Kimson Tan (Promising Young Actor of the Year), Lito Gruet (Public Servant of the Year), Maxine Misa (Advocacy Queen of the Year); and the new Encantadia sang’gres Faith da Silva (Promising Actress of the Year), and Kelvin Miranda (Teen Actor of the Year).

I’m fortunate enough to straddle the worlds of fashion, beauty, entertainment and pageantry. So, it was heartwarming to witness some of my pageantmedia colleagues receive awards for their body of work.

Pageant Blogger of the Year is Edge Tenoria while her blog site, Eventologie, won Pageant Blog Site of the Year. Pageant Vlogger of the Year is Adam Genato of HeyAdamG. Pageant Lenswoman of the Year is Joy Arguil. Pageant Chronicler of the Year is Eton Concepcion of Manila Standard.

The Pageant Producer of the Year Award went to Carlo Morris Galang, who produces Misters of Filipinas and Man of the World. Pageant System of the Year Award (Male) went to Mister Filipinas. The female category award, meanwhile, went to Miss Universe Philippines.

“The arduous task of selecting the awardees of the Philippine Pageantry Awards fell on the capable shoulders of a distinguished committee. Composed of esteemed individuals from the pageantry industry, former beauty queens and influential figures, this committee brought a wealth of knowledge and experience to the table,” Hiñola concluded. n

THERE was a time when it was unthinkable for ordinary people to spend even half a day getting pampered. Today, Flawless Face & Body Clinic stands strong on the principle of accessible beauty, cutting through the many misconceptions surrounding selfcare.

In that regard, Flawless founder and CEO Rubby Sy is a pioneer. “I have always seen [self-care] as foundational to a person’s success in the world,” she says. “I believe in putting one’s best face forward, and to achieve that is evenly split between what you put on and how you feel inside. One always affects the other.”

In the two decades since Flawless built its first branch in the bustling halls of SM Megamall, Sy’s rose-colored empire has both shaped and evolved with the times—as much as its services have literally shaped and sculpted many satisfied customers. As the “Beauty BFF” of the Philippines, it employs treatments and procedures backed by scientific research to ensure top results at a fraction of the average cost. “I did not have the same luxuries as my peers growing up, so I know the value of feeling your best,” recalls Sy. “I have gotten as far as I have because I did what I could for myself at the time. Now, I can rely on experts who care about what I want to achieve in terms of beauty. So my goal was to bring those experts to people like who I was while growing up—to help them start what I call the beauty [aspect of their self-care] journeys.”

Such journeys are best embarked on with someone you can trust, and Flawless is no stranger to holding Filipinos’ hands as they discover and uncover their unique beauty. But self-care varies from person to person, as the doctors and aesthetic experts at Flawless know all too well. “We know everyone has different goals and, more importantly, different needs,” adds Sy. “That’s why I insist that the consultations are free. You deserve to know where you are on your journey and to have access to that sort of expert-approved information.”

BFFs (the clinic’s in-term for customers) old and new can also kickstart their own journeys with 3+1 or 4+1 Medical and Non-medical Services Package, featuring Facials and Microdermabrasion services—including the ever-popular Clarifying Facial, Age Defy Facial, and Nano PowerPeel— available until the end of 2023.

“Some might call what we offer ‘indulgent’, but I could not disagree more,” concludes the founder.

“Joy is as essential to success as anything else, and anything we do to create the best version of ourselves gives us joy. I don’t think Flawless would be hitting a 22-year milestone if that were not true.”

More information is available at www.flawless.com. ph.

expansion of its Radiance Tint, and a blush palette.

The Brow Pen Pro, a fine-tip eyebrow pen offers precision and definition with its micro-brush tip and long-wearing formula. Brow Pen Pro has a water- and budge-resistant formula that guarantees your brows will stay on. It is available in four shades: Peanut (medium brown with neutral undertone), Taupe (grayish-brown with cool undertone), Coffee (dark brown with neutral undertone), and Ash (deep gray with cool undertone). It is available for P349.

The expansion of the Radiance Tint line features

skintone shades, including Butter (light medium warm olive), Beige (medium with warm neutral undertone), and Golden Sand (medium warm olive).

Another pair of new corrector shades—Pink (light pink) and Lavender (light purple)—is for specific color correction needs. Additionally, the collection offers new shifter shades, Blue (rich cool tone blue) and Yellow (rich golden yellow), to match skin tones and achieve skin-like bases. It is available for P399.

The Quad Goals Ultimate Palette: Blush features a selection of blush shades catering to different skin tones and undertones. The Baked Blush range includes shades such as Luna (light peach with warm undertone), Sola (medium dusty rose with neutral undertone) and Hera (deep dusty rose with cool undertone), giving a natural flush to the cheeks. For those who want a touch of shimmer, the Baked Blush with Shimmer collection offers shades like Mars (deep copper rose with neutral undertone), Venus (medium coral pink with warm undertone), Saturn (medium rosy bronze with warm undertone) and Mykonos (medium rose with neutral undertone). These blushes are priced at P299 per pan.

Meanwhile, the Pressed Blush is a transformative product that can be used in different ways. First, it can be an under-eye brightener because it sets and can be applied alongside a color corrector. Second, when used as a blush-setter, you can set your favorite Milk Tint with it to create the seamless look of flushed cheeks. As a blush base, it amplifies the pigment when applied over another powder blush. The Pressed Blush comes in shades including Kumi (light bright peach with warm undertone), Shiloh (light peachy pink with warm undertone), Quincy (light nude peach with warm undertone), Rohan (light nude pink with neutral undertone) and Emmarie (deep rosewood with neutral undertone). These are priced at P299 per pan.

MAXINE MISA, Daisy Reyes-Tobias (Binibining Pilipinas World 1996), Jenette Fernando (Binibining Pilipinas Tourism 1993), Melanie Marquez (Miss International 1979), Richard Hiñola, Patricia Javier (Noble Queen of the Universe 2019), Francine Reyes (Miss Eco Teen Philippines 2023), Gwendolyne Fourniol (Miss World Philippines 2022), Yana Sonoda (Miss Universe Japan 2020 Second Runner-up), and Kirk Bondad (Mister World Philippines 2022)

Beauty and excellence

T

HE wonderful world of Philippine pageantry had an early, pretty little Christmas.

Over the past 50 years, our flag-bearers to global beauty competitions have won countless titles for our country. Though we have stumbled of late in the international arena, there’s no denying that the Philippines is still a pageant powerhouse. Thus, the First Philippine Pageantry Excellence Awards 2024 was conceived.

“It is to recognize all our past and present crowned queens and kings, as well as anyone who has excelled in pageantry. The aim is to honor the remarkable achievements of Filipino beauty titleholders who have brought immense pride and glory to our nation.

With a strong focus on charity and community involvement, the event promises to be a celebration of beauty and benevolence,” explained its founder, public relations maven Richard Hiñola.

The ceremony was held on December 2 at the Teatrino Greenhills, San Juan City. The awardees were led by Miss World 1973 First Princess Evangeline Pascual, Miss International 1979 Melanie Marquez, Mister Gay World 2019 John Jeffrey Carlos, and Miss

Universe 2018 Catriona Gray.

Among the myriad awardees were Andrew Badiola (Pageant Fashion Designer—Barong de Calado), Arlene Cris Damot (Mrs. Universe 2023 2nd RunnerUp), Braeline Jade Jimenez (Miss Pre-Teen Tourism World 2023 Grand Winner), Daisy Reyes-Tobias (Binibining Pilipinas World 1996), Gianna Margarita Llanes (Miss Philippines Water 2020), Janelle Tee (Miss Philippines Earth 2019), Jenette Fernando (Binibining Pilipinas Tourism 1993); Maxine Misa (Model Mom Universe 2023-2024), Patricia Fernandez (Binibining Pilipinas International 2008), Patricia Javier (Noble Queen of the Universe 2019), RJ de Vera (Misters Filipinas Man Hot Star International 2023), Robert Douglas Walcher IV (Mister Teen International 2023), Sheralene Shirata (Noble Queen Earth 2022), Kirk Bondad (Mr. World Philippines 2021), and Maria Charo Calalo (Mrs. Universe Philippines 2019-2020 / National Director Mrs. Universe Philippines).

“The Philippine Pageantry Awards’ mission is to celebrate the exceptional talents and impact of our beauty titleholders. Through this affair, the organizers aim to inspire future generations of contestants and promote the values of beauty that transcend the surface,” added Hiñola, the organizer.

“With a vision to establish this event as the pinnacle platform for recognizing the excellence and representation of Filipino beauty queens and kings, the Philippine Pageantry Awards strives to empower individuals and advocate for charitable causes.”

The Best Awards 2024, given by Best Magazine, were also handed out that night. It acknowledged outstanding individuals who have made notable

Getting ready to beautify the country

IT has been quite a year for Filipino beauty and, without a doubt, GRWM Cosmetics is one of those leading the pack when it comes to public recognition and acceptance.

I talked to Mae Layug, CEO and president of GRWM Cosmetics, at the opening of the brand’s first physical outlet in Metro Manila at LOOK in SM Mall of Asia and she said she was happy that “goal-getters” can now try the products in person. Aside from LOOK, GRWM Cosmetics is now at SM Makati.

In 2019, Layug was in Myeongdong and she entered Olive Young, Korea’s version of Sephora. As a beauty content creator on YouTube, Layug was in awe of everything she saw in Olive Young.

“I thought of what’s next for me and logically, GRWM Cosmetics became an extension of my passion. We were already processing the papers for the brand’s permits and trademarks in 2019,” Layug narrated.

Then the pandemic happened. But that didn’t stop Layug from pursuing her passion. The research and development for GRWM Cosmetics slowed down but it continued.

Aside from her own ideas, Layug also listens to the brand’s customers, her friends, and makeup artists on

inputs for the products.

The bestsellers are the Milk Tints (the top-selling shade is Pablo’s Latte) but the newly-released Brow Lift is giving it some competition. The On The Glow Skin Booster is what Layug calls “the silent bestseller.”

For 2024, GRWM fans can expect more options and diversity. “We are expanding our corporate social responsibility. We have a new product coming out soon specifically for that,” said Layug.

GRWM Cosmetics recently introduced the “Beauty is Personal” Collection, which includes a brow pen, an

GRWM’s ‘Beauty is Personal’ collection includes a brow pen, an expansion of its Radiance Tint, and a blush palette.

PHOTO FROM GRWM COSMETICS

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DLSU University Fellow publishes article in ‘Nature’

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NIVERSITY Fellow Prof. Anthony Shun Fung Chiu of the De La Salle University Department of Industrial and Systems Engineering, coauthored an article titled, “Country-specific net-zero strategies of the pulp and paper industry,” which has been accepted for publication in “Nature.”

The article is the first from DLSU in the prestigious scientific journal, and only the 22nd from the Philippines outside of the field of medicine. “Nature” is the world’s top-ranked multidisciplinary journal with a 2022 Impact Factor of 64.8.

The paper documents the joint effort of an international team of 15 researchers from the USA, China, Philippines, and Brazil. Prof. Chiu said the research work is one of the outputs of the UNEP-NSFC funded project of 2019-2022.

It developed a comprehensive bottom-up assessment of net GHG (Greenhouse Gases) emissions of 47 domestic paper-related sectors in 30 major

ANTHONY SHUN FUNG CHIU

countries from 1961 to 2019, about 3.2 percent of global anthropogenic GHG emissions from the same period and explored mitigation strategies through 2,160 scenarios covering key factors.

To read the full article, visit: https://www.nature. com/articles/s41586-023-06962-0

REAL ESTATE EXEMPLARS SUCCEED AT 18TH PROPERTYGURU ASIA PROPERTY AWARDS GRAND FINAL

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ROPERTYGURU Group (NYSE: PGRU) recently announced the winners of the 18th A nnual PropertyGuru Asia Property Awards Grand Final, presented by Kohler and supported by Dongpeng Ceramic and Subzero Wolf, at The Athenee Hotel, a Luxury Collection Hotel, Bangkok.

Winners from 13 vibrant property markets across Asia competed for the highest marks of excellence in real estate development, construction, architecture, and design at the finale of the 2023 PropertyGuru Asia Property Awards series. More than 50 golden statuettes, accolading the finest developers and projects in the region, were presented at the black-tie gala dinner and presentation ceremony.

GuocoLand won the biggest award of the year, Best Developer (Asia), for the third time in the history of the Awards.

It marks one of five regional wins for developers from Singapore, with Frasers Property Singapore winning the Best Mixed Use Developer (Asia) award and UOL Group Limited and Pan Pacific Hotels Group winning the Best Hospitality Developer (Asia) award. UOL Group Limited also won the Best Sustainable Developer (Asia) award while EL Development Pte Ltd won the Best Hospitality Interior Design (Asia) award.

Developers from Indonesia gained eight regional wins, the most of any country. PT Sinar Mitbana Mas garnered the Best Breakthrough Developer (Asia) title, with parent company Sinar Mas Land and subsidiary PT. BSD Diamond Development also receiving regional wins. Various projects by Agung Sedayu Group & Salim Group; Summarecon Agung; and Summarecon Serpong collected regional wins.

The Philippines was represented with seven regional wins, with Aboitiz InfraCapital Economic Estates winning both the Best Industrial Developer (Asia) and Best Industrial Development (Asia) awards. RLC Residences; Robinsons Hotels and Resorts; North Bonifacio Landmark Realty and Development Inc.; Shang Robinsons Properties, Inc.; and Sunshine Fort North Bonifacio Realty

Development Corporation received golden statuettes for a wide range of projects.

Developers from Vietnam received six regional wins, led by SonKim Land Corporation, which won both the Best Lu xur y Developer (A sia) and Best Bout ique Mi xed Use Development (Asia) awards. Regional winners include ParkCity Group, which won the Best Completed Condo Development (Asia) award.

Andaman Asset Solution won the Best Boutique Developer (Asia) award in one of six regional wins for developers from Thailand. KingBridge Tower by KingBridge Tower Company Limited (Saha Pathana Inter-Holding Public Company Limited) alone earned three regional wins for the kingdom while Rawayana

by Phuket9 scored two regional wins.

Salvo was named Best Lifestyle Developer (Asia), one of five regional wins for developers from Australia. Regional winners from the country include projects by Capital Luxury Residences; Monaco Property Group; R.Corporation; and Third.i Group.

Malaysia and Cambodia each gained four regional wins. Perbadanan Kemajuan Negeri Selangor (PKNS) was hailed Best Affordable Homes Developer (Asia), with projects by Eastern & Oriental Berhad; Eupe Corporation Berhad; and Sime Darby Property also representing Malaysia with regional titles. Projects by OCIC Group and RM Commercial Co., Ltd. each clinched a regional win for Cambodia as Sir Stamford Raffles (Cambodia) Co., Ltd. gained two regional wins for the project Marum Estate.

Hanacreek by Apex Property and Aki Niseko by Takuetsu Co., Ltd. represented Greater Niseko as regional winners from the renowned Japanese skiing destination.

The Fullerton Ocean Park Hotel Hong Kong by Sino Land Company Limited and M8 by China Construction Engineering (Macau) Company Limited garnered two regional wins for Hong Kong and Macau. New Bund 31 by Shun Tak Qiantan (Shanghai) Cultural and Real Estate Company Limited was named Best Mixed Use

Development (Asia), a regional win for Mainland China.

The Grand Final drew one of the most iconic personalities in the Hong Kong real estate industry. Dr. Allan Zeman, founder and chairman of Lan Kwai Fong Group, came to accept the Icon Award from the editorial team of Property Report by PropertyGuru, the official magazine.

Dr. Zeman, who won the Real Estate Personality of the Year title in 2015, said: “It is an honour to be awarded the 2023 Icon Award. Lan Kwai Fong has become a great brand in HK and throughout the world. This is very important to us and to our partner.”

Hari V. Krishnan, CEO and managing director of PropertyGuru Group, said: “The culmination of this year’s PropertyGuru Asia Property Awards series is a fitting celebration of the changemakers who are contributing to shaping tomorrow’s cities. From lively capitals to sprawling metropolises and well-planned townships, the future of cities in Asia is in the capable hands of these fine developers, lighting the way for a more sustainable, equitable, and innovative industry in their respective countries. To all the winners—we celebrate your success and look forward to what you create next.”

Jules Kay, GM of PropertyGuru Asia Property Awards and Events, said: “Recognising and awarding excellence in 2023 led us on an insightful journey through the diverse property markets of Asia. Celebrating real estate from the cities of tomorrow, we rediscovered a shared aspiration for quality among developers, buyers, and builders, and a growing commitment to sustainability among residential, commercial, and industrial developers. The finest places to live and work in Asia have become shining examples of quality, clearly showing that this region remains focused on raising development standards, redefining design, and revitalising economies. Congratulations to all the Best in Asia winners as you continue to drive positive change and innovation.”

JOINING FORCES Pilipinas Offshore Wind Energy Resource, Inc. (POWER) a Philippine-based organization was launched with the primary objective of providing expertise and technical resources to fast-track country’s ongoing transition towards clean energy by harnessing the potential of offshore wind energy. Present during the event were, from left, Ronald Conquilla, Assistant Secretary and Chief of Staff, Department of Energy (DOE); Atty. Jay Layug, Senior Partner, DivinaLaw; Keisuke Osuga, President, Marubeni Asian Power Philippines; Atty. Poch Ambrosio, Vice President for External Affairs, ACEN; Undersecretary Rowena Cristina Guevara, DOE; Undersecretary Sharon Garin, DOE; Raymund Pascual, Country Manager, BlueFloat Energy; Secretary Raphael P.M. Lotilla, DOE; Olivier Duguet, CEO and Chairman, The Blue Circle; Undersecretary Sandy Sales, DOE; Ari Natividad, Partner-President, Ignis ZA Global; Undersecretary Giovanni Carlo J. Bacordo, DOE; Hugo Gutierrez, Project Manager, Ignis ZA Global; and Sheila Cabaraban, Director, Philippine National Oil Company.

IN the photo are, from left, Regional Chief Directorial Staff Antonio Razal Jr., Assistant Regional Director for Operations Rodrigo Reyes, Assistant Regional Director for Administration Ronel Maltezo, BFP-NCR Regional Director Nahum Tarroza, Manila Water Head of Business Continuity Gracie Leslie Denaga, Manila Water Quezon City Business Zone Manager Vic Calacsan, and BFP Chief Louie Puracan.

Manila Water receives fire safety award from BFP-NCR

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HE Bureau of Fire Protection - National Capital Region (BFP-NCR) recognized Manila Water as an Outstanding Partner for Fire Safety in the recently concluded Fire Safety Awards in Quezon City.

The award was in recognition of the company’s exceptional support and collaboration with the Bureau of Fire Protection-NCR in protecting lives and property. Also cited were the water company’s proactive efforts to improve emergency response and fire safety in the communities it serves.

Manila Water’s Head of Business Continuity, Gracie Leslie Denaga, Business Continuity Manager

Olive Marquez, and Quezon City Business Zone Manager Vic Calacsan accepted the award on behalf of the East Zone concessionaire from the guest of honor, BFP Chief Louie Puracan, and BFP-NCR Regional Director Nahum Tarroza.

As part of the partnership with BFP, Manila Water has been maintaining over 3,300 fire hydrants strategically placed in the East Zone of Metro Manila and parts of Rizal. The hydrants are regularly checked to comply with the Fire Code of the Philippines and are jointly under the care of Manila Water, BFP, and LGUs.

MR.DIY wins regional recognition again in the World Branding Awards

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EGIONAL home improvement retailer MR.DIY is once again the World Branding Award’s pick for the “Top Home Improvement Retail Brand Awards’ Regional Award Category”. The award recognizes MR D.I.Y.’s brand leadership across four markets, namely Malaysia, Thailand, Indonesia and the Philippines.

This is the Group’s sixth World Branding Award.

In 2022 and 2021, MR.DIY took home WBA’s Regional Award in the home improvement retail brand category and in the three years prior to that, it took home the national award in the same category. The six consecutive awards cement the brand’s position as Southeast Asia’s favorite home improvement store.

The World Branding Awards, organized by the World Branding Forum, held its 16th edition at Kensington Palace, London recently. With 1.3 million consumers and 765 brands from 66 countries in seven regions competing in the 2023-2024 edition, the awards are a benchmark for global brand excellence. The Regional Award is presented to brands that hold simultaneous leadership positions in several countries in a particular geographic region based on brand valuation, consumer market research results, and public online voting.

Welcoming the accolade, MR D.I.Y. Philippines’ Senior Marketing Manager Mark Charles Salecina said, “Achieving a World Branding Award in the consumer-driven home improvement retail brand category for the sixth time is no easy feat. It takes a huge commitment to deliver outstanding value, excellent customer service, as well as interesting and engaging customer experiences consistently and across multiple markets, especially when you take into consideration the fact that MR.DIY has 3,000 stores across the four markets in question. It is a strong validation that our promise of providing customers with a breadth of everyday essentials at ‘Always Low Prices’ at convenient locations in these markets continues to resonate strongly with customers. Furthermore, MR.DIY has earned recognition from

MICHAEL COHEN MR D.I.Y. Indonesia’s Head of Commercial (right) receiving the Brand of the Year Award from World Branding Forum Chairman Richard Rowles (left) at Kensington Palace, London on behalf of the retailer

WBA, standing alongside esteemed brands such as Alaska, Ayala Land, Fern-D, Hapee, Indoplas, Macao Imperial Tea, Magnolia Gold, Natures Spring, San Miguel, SM Cinema, SM Supermalls, Surf, Tanduay, Toby’s Sports, and Watsons, adding to the distinction of our brand.”

“This award would not have been possible without the passion and dedication of our employees across the four markets, our global network of manufacturing and logistics partners, and most of all, the 263 million customers in these markets who throng our stores every year. Our aim is to have a positive impact on the lives of the communities in which we operate, and awards like this are a timely reminder, especially in challenging times, that what we do every day is making a difference,” added Salecina.

Salecina congratulated the other award recipients at the World Branding Awards, saying that it was a huge honor for MR D.I.Y. to be recognized alongside them.

MR.DIY was first established in Malaysia in 2005 as a traditional hardware store. Today, the brand is recognized as Southeast Asia’s favorite DIY store, with more than 3,000 stores across the region, supported by over 33,000 employees in Malaysia, Thailand, Brunei, Indonesia, Singapore, Philippines, Cambodia, India, Turkey, Spain, Vietnam, and Bangladesh.

Marketing BusinessMirror

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Monday-Tuesday, December 25-26, 2023 B7

The media person’s

Christmas wish list, 2023 edition

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DID this kind of article last year, and received positive feedback from both journalists and public relations practitioners. Some PR friends told me they used the article as part of their training for newbies as well as a refresher for veterans. Media friends, on the other hand, said this kind of article could help PR people understand the needs of media people better.

So I decided to write one again for 2023, featuring a new set of Christmas wishes from a different roster of journalists. Surprisingly (or maybe not), some wishes from 2022 surfaced again in some of the responses: about getting names right, timing of sending press releases, asking journalists when their stories will come out.

We got some new ones though, which I think will be useful for PR practitioners like us to learn and practice.

They don’t work for you

“I WISH PRs won’t ask me to forward their press releases to my beat mates. It wouldn’t hurt to find out who’s covering which beats,” TV5 Senior News Correspondent Gerard de la Pena said.

As PR practitioners, we should do our own research on our media stakeholders. Apart from the obvious, which is getting their names right, it is also basic to know what beat they are covering. If you already have some level of relationship with a reporter, you can ask them for the names of their beat mates whom you do not know. But do not ask them to send out press releases for you.

Likha Cuevas, Head of Southeast Asia for Mergermarket, related an even worse experience with a Singapore-based PR agency: being asked to provide a backgrounder regarding her publication for the

n A Filipiniana-inspired Christmas Tree, a decade of musical excellence at the Ayala Museum MANILA, PHILIPPINES—To celebrate the 10th anniversary of its program, Ayala Museum hosted a two-part concert series featuring world class Filipino performers: Manila Symphony Orchestra and Philippine Madrigal Singers.

Coinciding with the MADZ’s 60th anniversary, the “Isang Dekada ng Musika” repertoire included pieces written and debuted this year such as “Sixty of Plenty.”

“When we first launched our con-

cert program in 2013 to celebrate Filipino musical talent, we never imagined that it would grow into what it has the past 10 years,” said Mariles Gustilo, Ayala Museum’s Director.

To celebrate their roots, the MADZ also sang madrigals, the secular genre that inspired the choir’s conception: “Sound the Trumpets,” and “Jubilate Deo,” The audience also heard well-loved Filipino songs and kundiman, and Christmas carols.

Mark Anthony Carpio, Conductor of the Philippine Madrigal Singers, said, “We invite you to continue to celebrate the season and every blessing we see in our lives.”

The concert ended with the museum’s Christmas Tree lighting.

Brought to life by events maven and stylist Vivien Sheryl Villanueva, the tree was inspired by the Juan Luna painting “Hymen, oh Hyménée!”

“It doesn’t look like any other

agency to use in their pitch to their client.

“If you’re going to make a pitch [for an exclusive interview] to a client, please don’t make the reporter make the pitch deck, i.e. what the publication is, exposure, subscribers, etc. Do your research,” she said. “We reporters and editors are already burdened with the day-to-day news cycle, and for you to order us to make this deck is too much. It’s your client, not ours.”

She added that when facilitating interviews with journalists, “do not give us a script. You can politely mention a pitch or an agenda you want to push, but do not dictate what questions we want to ask. Your client has the option to not answer our questions.”

Do your monitoring

ANOTHER pet peeve among journalists is PR people asking them about airing or publication dates, or if a story will be used or has already been used.

“I wish they wouldn’t ask me when [a story] is going to air, and also if the story has already aired,” de la Pena said. “My job is to gather news, and it’s not up to me if the story will air or not. That’s the job of the producers.”

Manila Standard Assistant Business Editor Alena Mae Flores reminded PR people that it is their responsibility to monitor whether or not their press releases were used.

“I do not understand why some PR people resend stories when they already came out. This shows they have poor monitoring or lack of coordination inside the office,” she said.

Extend common courtesy

AS simple as they are, some obvious acts of courtesy seem to not be common practice among some

tree I’ve seen in town,” said Mariles.

With a fusion of the imagery of ancient Roman wedding and Filipiniana flair, the Christmas tree makes use of native materials such as jusi, sinamay, capiz shells, and Inabel and Igorot fabrics.

“The artist, Beng Villanueva, was challenged by the opportunity to take the beauty that’s captured in that artwork and imbued it with some Christmas feel,” added Mariles.

n This is how your favorite content creator couples celebrate a ‘closer Christmas’ M A N I L A , PH I L I PPI N E S —T h e Christmas season is here, and that means there’s even more reason to get closer to your loved ones come the colder weather.

These days, there are lots of options to choose from, but there’s an undeniable charm that comes when

Alena Mae Flores, Manila Standard

Gerard de la Pena, TV5

Stella Arnaldo, BusinessMirror

Likha Cuevas, Mergermarket

Ronnel Domingo, Inquirer

Jing Garcia, Manila Times

PR practitioners.

Cuevas asked PR practitioners to please respond to journalists’ queries or requests and not leave messages seen-zoned. “Just respond to us by saying your client is not keen to reply/grant the interview. At least we know we are not talking to a wall.”

When sending press materials, Philippine Daily Inquirer Business reporter Ronnel Domingo said both timing and recipients have to be deliberately planned.

“Don’t send the same press material to the same team because it’s embarrassing, awkward, and complicated when colleagues end up sending the same story [to the desk]. Pinpoint the target reporter and then focus on that person,” he said.

In terms of timing: “Please observe regular work hours. Do not send materials in the dead of night,” he said. “I know companies/PR agencies now have digital teams for engaging vloggers and influencers. If you observe ‘regular hours,’ you accommodate both digital and the ‘old-style’ media whose hours revolve around the dinosaur called the printing press.

If you observe the hours of the digital media, you trample on the hard-to-die print media.”

Sending of event invitations also requires good timing. Veteran editor and BusinessMirror columnist Stella Arnaldo said invitations sent a day before an event

makes it “obvious [that] you considered us an afterthought.”

And do not expect to get mileage from the very same people you did not invite, she said. “Don’t send press releases about an event to which you didn’t invite us, then expect us to publish it or use it in our stories.”

ers, and calmly discuss his client’s view on a story they may not agree with, instead of going straight to their editors to complain about said story. Today’s reporters are tomorrow’s editors and, like it or not, the PR, if he is still around, will have to deal with those future editors, who will have a say whether or not the PR’s press release makes it in the paper,” she said.

The PR-media relationship, de la Pena added, is not one-sided after all. “This is not really shaming or blaming. At the end of the day, we are partners. Parang mag-jowa lang ‘yan (It’s like in a romantic relationship)—give and take.”

May we make our media partners’ wishes come true this Christmas and every day. Have a blessed Christmas, everyone!

you get to surprise your partner with seasonal moments that help you celebrate a #CloserChristmas together.

If you’re looking for inspiration on what to do with your special someone, look no further, because these #closeupCouples just shared a few ideas on how to make this season truly Ama-Zinc!

For lifestyle power couple Laureen Uy and Miggy Cruz, Christmas has always been about cherishing moments together. This year, the fiancés decided to kick off the holiday festivities with some cute activities which they documented through an IG Carousel post.

“Every gift becomes extra special when I’m with her,” Miggy expressed, emphasizing the joy of spending quality time with Laureen as she delights him with her Christmas gift.

Laureen, on the other hand, shared that she celebrates a #CloserChristmas with her fiancé by deco-

Write your stories well

IF you want to see your stories published, make sure to send well written press releases. Manila Times Tech Editor Jing Garcia suggested that PR people “learn the form and style of a publication, so there’s a better chance of your release coming out.”

Flores added that incomplete press releases, particularly those that lacked vital information, would likely not be used. “PR people should know outright what information should be made available instead of waiting for reporters to ask since this will take additional time,” she said.

Establish and nurture relationships

BEYOND our technical competency, I think we all know that our relationships with our media partners bear a lot of weight in determining our staying power in the industry.

Arnaldo said good relationships should be established early on and nurtured for the long haul.

“The PR person should learn to develop relationships with report-

rating their place together, surprising each other with gifts, and lots of wrapping presents for their loved ones.

The engaged couple highlighted on their social media posts that they can make the most out of their Christmas because both used closeup with Antibacterial Zinc for an all-day AMA-ZINC fresh breath for up to 12 hours with regular use.

Pilot Chezka Carandang and beauty queen Clare Inso were also up for some quality time before the holidays. They decided to take it outside, with each one planning a surprise for a special date.

“What better way to get closer with your loved ones? Chezka arranged an out-of-town trip for us, but what she doesn’t know is that I arranged a little surprise for her,” shared Clare in her TikTok video.

Before going out, the couple got ready and brushed with closeup.

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world.

Abigail L. Ho-Torres is AVP and Head of Customer Experience of Maynilad Water Services Inc. She spent more than a decade as a business journalist before making the leap to the corporate world.

We are devoting a special column each month to answer our readers’ questions about public relations.

Please send your questions or comments to askipraphil@gmail.com.

“We’re brushing our teeth with closeup, now with anti-bacterial zinc.

We want all-day fresh breath para we’re confident to get close as we wanna be,” she added.

Clare surprised Chezka with lunch by the beach, treating the trip as a much-needed holiday escape for the couple.

Truly, a woman’s appetite just might be the way to her heart because Chezka surprised her beau with a candlelit dinner after a scenic drive. The pilot shared, “Busy rin talaga kami ni Clare all-year round kaya we decided to go on a roadtrip to celebrate a closer Christmas.”

Just like these #closeupCouples, you too can celebrate a #CloserChristmas with your loved ones when you have all-day Ama-Zinc fresh breath from closeup! (for up to 12 hours with regular use) For more updates, follow closeup on Facebook and Instagram.

Sports

Wilder, Joshua turn extras in Fury-Usyk unification match

BusinessMirror

B8 | Monday-T

uesday, December 25-26, 2023 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

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How big a piece of sports can Saudi kingdom buy?

PHIL MICKELSON set the dividing line in what was viewed as a good vs. evil stare down between the status quo and the Saudi disrupters. AP

CRISTIANO RONALDO has joined a Saudi team in a deal worth a reported $200 million a year. AP

All but ignored in the debate was how ingrained Saudi Arabia is in virtually all parts of the world economy and the inroads the kingdom was already making into sports.

FRENCH policemen patrol near the Eiffel Tower. AP

Macron: Security options for huge Paris Olympics opening show up

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E PECQ, France—The giant opening ceremony extravaganza that Paris is planning to hold on the River Seine to launch the Olympic Games could be moved if France is hit again in the run-up by extremist attacks, French President Emmanuel Macron said.

Macron’s comments in a television interview on Wednesday night were a rare behind-the-scenes glimpse into the deep layers of planning for the July 26 ceremony. Many details about the show remain shrouded in secrecy to preserve its hoped-for wow factor. The security, with tens of thousands of police and soldiers deployed, will be intense.

The athletes will be paraded through the heart of the French capital on boats on the Seine—for the first Summer Games opening

ceremony held outside of a usual stadium setting. Both banks of the river will be lined by hundreds of thousands of spectators, behind multiple security cordons.

“We are preparing an opening ceremony that is unique, which I hope will make the French very proud,” Macron told public broadcaster France 5. “It will be a moment of beauty, of real art, of celebrating sport and our values, with the Seine and the capital as the theater.”

But he said plans could be revisited for security reasons. He cited deadly extremist attacks that hit Paris in 2015 as an example of the type of severe crisis that could force a rethink.

“You’re 15 days from the Olympic Games. You have a series of terrorist attacks. What do you do? Well you don’t organize [a ceremony] on the

A

T the dawn of 2023, the specter of Saudi Arabia’s growing influence on pro golf—and sports in general—served not only as a moral conundrum for players and their fans, but also, some argued, as an existential threat to the multibillion-dollar professionalsports industry itself.

Twelve months later, it’s a different conversation, now virtually devoid of concern about the supposed menace of “sportswashing” and the line between “right” and “wrong,” and more fixed on just how rich the Saudis might make all these athletes before they’re done investing.

Two major events sparked the change: The June 6 announcement that the Professional Golfers Association (PGA) Tour was looking to go into business with the very Saudi group that was paying for the kingdom’s LIV Golf, which the tour had labeled as a threat.

Then, six months later, the decision by the world’s thirdranked player and an early resister of LIV, Jon Rahm, to move to that league for a contract reported in the neighborhood of $500 million.

Making less-dramatic but almost equally important headlines were the continuing talks between the Saudis and leaders in pro tennis—and Saudi Arabia’s ongoing push into global soccer, reflected most vividly by a decision that smoothed the way for the Saudis to host the sport’s biggest event, the World Cup, in 2034.

“You’re investing in sports, which is one of the few growth industries in the world,” Dan Durbin, director of the Institute of Sports, Media and Society at USC, said of the Saudi strategy. “It is, as far as we can see, an almost endless growth industry.”

The conversation over golf went front-and-center when Saudi Arabia’s Public Investment Fund, or PIF, the nation’s sovereign wealth fund, was laying the groundwork for LIV in early 2022.

Six-time major winner Phil Mickelson’s interview, in which he called the Saudis “scary [expletives] a reference, in part, to the murder of journalist Jamal Khashoggi—set the dividing line in

Seine,” Macron said.

“Since we are professional, there are obviously plan Bs, plan Cs, et cetera.

“You have to be prepared for everything,” he added. “If there’s a surge of international or regional tensions, if there is a series of attacks...that’s a plan B.” But for the moment, Paris Games organizers say the ceremony along the Seine is their plan A. Prizewinning French theater director Thomas Jolly is overseeing its artistic content and the closing ceremony at the Stade de France on August 11.

Speaking at an end-of-year news conference on Wednesday, before Macron’s subsequent TV interview, chief Paris Games organizer Tony Estanguet said the Seine ceremony is “the only project that we are working on.” AP

what was viewed as a good vs. evil stare down between the status quo and the Saudi disrupters.”

All but ignored in the debate was how ingrained Saudi Arabia is in virtually all parts of the world economy—the Saudis gain most of their influence by supplying around 15 percent of the world’s petroleum— and the inroads the kingdom was already making into sports.

One of soccer’s biggest stars, Cristiano Ronaldo, had joined a Saudi team backed by the same investment fund that supported LIV in a deal worth a reported $200 million a year. The Saudis made a reported $500 million-a-year play to recruit another soccer icon, Lionel Messi, to its upstart domestic league. (Messi turned them down.) The PIF wealth fund owns the Premier League’s Newcastle soccer club.

As the calendar turns to 2024, there’s no sign of this slowing. The Saudis host a Formula One auto race that has come under scrutiny and had reportedly been considering buying the entire league from Liberty Media Corporation—a deal that didn›t take off because Liberty didn›t want to sell. They are lookig to invest some $5 billion into cricket’s Indian Premier League with an eye on expanding it into other countries.

The Association of Tennis Professionals (ATP), which runs men’s professional tennis, has a five-year deal to hold one of its biggest events in the Saudi port city of Jeddah. Talks between the Saudis and the women’s tour are reportedly ongoing. In a sign of how the conversation has shifted, Billie Jean King, who began the fight for equal pay for women in sports in the 1970s, has said bringing the sport to the kingdom might not be all bad despite its long record of repressing women›s rights.

“I don’t think you really change unless you engage,” she said earlier this year.

Durbin sees the kingdom’s embrace of sports as a move for Saudi Arabia to be viewed as more than an oil-producing kingdom with a bad human-rights record. Some might call that the quintessential definition of “sportswashing.”

“For decades, sports has been the

center of soft diplomacy,” he said.

“You try to create a positive response and feeling about your ethics because you’re holding to the rules of sports.”

The end of 2023, and all of 2024, figure to be dominated by the results of months-long negotiations between the PGA Tour and the Saudi investment fund, which will ultimately determine the fate of LIV. Rahm’s move could be seen as a preemptive gamble based on acknowledgment of the reality that golf will eventually come together again (and if that turns out to be the case, there’s nothing wrong with having an extra $500 million in the bank when it does).

One of the Spaniard’s biggest worries about moving was that he might get excluded from the Ryder Cup. Golf’s prestigious team event— which pits the best from the US against the best from Europe and where none of the players are paid to play—was considered more-or-less off limits to those who defected to LIV, especially on the European side.

Now, even LIV’s biggest detractor at the outset, four-time major champion Rory McIlroy, has suggested the Ryder Cup gatekeepers consider easing their stance against LIV players competing for Europe.

His take on Rahm: “You can’t judge someone for making a decision that they feel is the best for them,” he told Sky Sports earlier this month. “Is it disappointing to me? Yes. But the landscape of golf changed on June 6.”

In a telling sign of the impact Saudi Arabia’s entrance into the golf scene has made, the top 10 players on the PGA Tour combined made $86.6 million in prize money in the season that ended in 2022; in 2023, that number rose to $124.1 million.

Meanwhile, the top 10 on the LIV Tour made $159.4 million in 2023.

It helps explain why, in 2024, the debate in golf and the rest of the sports world doesn’t figure to center on whether all this change has been a good thing—but rather, on how big a piece of the sports universe the Saudi kingdom can buy.

“What you find is that when you’re lining your pocket with some of that money, then it can’t be ‘dirty’ money anymore,” Durbin said. AP

EONTAY WILDER and Anthony Joshua were once the main characters in heavyweight boxing’s soap opera.

Now they are extras.

While Tyson Fury and Oleksandr Usyk continue preparations for a February 17 unification bout in Saudi Arabia that will determine the division’s first undisputed champion this century, Wilder and Joshua are in the kingdom this weekend and fighting simply to stay relevant.

Wilder, the World Boxing Council (WBC) champion from 2015-20, was dethroned by Fury in February 2020 and has fought only twice since.

What kind of shape will the 38-yearold American be in when he takes on Joseph Parker, the World Boxing Organization champion from 2016-18?

After that comes the main event on what has been labeled the “Day of Reckoning” as Joshua, the former World Boxing Association, International Boxing Federsation and World Boxing Organization titleholder, fights Otto Wallin, a New York-based Swedish journeyman.

Joshua has underwhelming wins over Jermaine Franklin and Robert Helenius on his record since backto-back defeats to Usyk that left his career at a crossroads.

Whether Wilder and Joshua have the belief after their damaging losses to become heavyweight champion again is open to question. They are most likely to fight each other next—provided they both win in Jeddah—and the winner of what would be a big-money bout would, in theory, be in position to challenge for a world title.

“It’s the closest that it’s ever been in history,” Wilder said this week of a potential meeting with Joshua that he regards as “the biggest fight in the world.”

Maybe five or six years ago, but surely not anymore.

Not with Wilder having fought only Helenius since completing that trilogy against Fury in October 2021.

And not with Joshua appearing vulnerable and fragile after three losses in a fivefight span from 2019-22, crushing an aura he had built.

“I think he’s lost his confidence and momentum,” Wallin said of Joshua ahead of their fight, echoing the thoughts of many in boxing. “You can see the decline...Joshua looks unsure of himself.”

Joshua, a 34-year-old Brit who has been world champion twice after winning gold at the 2012 Olympics, has twice changed trainers to fuel his career rebuild and has been working with another—Ben Davison, who was once in Fury’s corner—for the Wallin fight. A long-time media darling, Joshua has been more tight-lipped since arriving in Saudi Arabia and seems to be all business this time.

“I know where I’m going in my life,” Joshua said, “but I’ve got to say, this is a checkpoint. And if I don’t get past this, there is no future so I’m fully locked in to Otto Wallin and doing the job.”

Wallin, a southpaw like Usyk, is not a big puncher like Joshua and has won his last five fights on points. He is on a six-fight winning streak since losing to Fury in September 2019 but none have been against a top heavyweight.

As for Parker, the New Zealander’s loss to Joe Joyce of Britain in September last year was a third defeat of his career but he has at least kept busy in the meantime with three straight wins against unheralded opponents.

The same cannot be said of Wilder, around whom there is the most curiosity this week—not least because the “Bronze Bomber” last fought outside the United States in 2014.

“I come to do what I do best, and that’s what the fans want to see,” said Wilder, who has a reputation for being arguably the biggest puncher in the division. “No one wants to see a 12-round fight and we are heavyweights and hard hitters.

They want to see us fight and then afterward go party. Nowadays my name is called Dr. Sleep.”

It’s the first time he has fought in Saudi Arabia, seemingly the new home of heavyweight boxing because of the lucrative purses the kingdom offers. It’s the third time for Joshua— and it’ll no doubt be a fourth if he and Wilder win to set up their likely fight in the spring of 2024. AP

ANTHONY JOSHUA (right) lands a blow on Oleksandr Usyk during their world title fight in the King Abdullah Sports City in Jeddah on August 21, 2022. AP