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Beating elites

Have the Washington Wizards turned the corner? It’s a fair question in light of their gains of late, with the small sample size offset by the quality of the opposition. Yesterday, they managed to overcome their biggest challenge yet; there can be no discounting their gritty homestand against the vaunted Rockets, never mind that it took them an extra period to do so. The bottom line: They got the job done, just as they did versus the West-leading Los Angeles Clippers last week.
Considering the propensity of the Wizards to underachieve, it’s equally reasonable to wonder if they’re simply collecting fool’s gold. In fact, their record in the half-dozen years their Big Three version of John Wall, Bradley Beal, and Otto Porter, Jr. have shared the court underscores their alarming predilection for roller-coaster rides that finish in a swoon and not in a surge. Still, any and all progress begins with small steps, and, if nothing else, they showed yesterday that they can hang with the best of the best in the league when they’re dialed in.
In many ways, the Wizards are fortunate to have conservative management overseeing their development. More impatient ownership would have already pulled the trigger on wholesale reform. After all, it’s hardly right to expect favorable results when the same things are being done over and over again. True, changes in personnel on the court and off have been made; on the other hand, the culture that encourages mediocrity remains, fueled by actions — or, as the case may be, lack thereof — of top players seemingly content to coast on talent.
Lately, the Wizards have been saying all the right things, owning up to deficiencies and pledging to improve for collective gains. Yesterday, they also did the right things; they showed the Houston Rockets — and all and sundry — that they’re a force when motivated and engaged. Moving forward, they need to prove that they possess the requisite determination to compete with consistency. Else, they’ll wind up with the same old, same old, with much time on their hands to lament what could have been.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Meeting ‘xpectations’:A 400-kilometer trip aboard the Mitsubishi Xpander shows why it has been worth the wait

Text and photos by Aries B. Espinosa

THE Mitsubishi Xpander MPV was launched in the Philippines early last March, and the ensuing eight months was a waiting game for its much-anticipated ride-and-drive activity. The wait ended on Nov. 23 and 24 when Mitsubishi Motors Philippines Corporation (MMPC) took the four variants of the Xpander from Quezon City to Subic Bay in Zambales, then on to idyllic Las Casas Filipinas de Acuzar in Bagac, Bataan, for a total round-trip distance of nearly 400 kilometers.
It turns out that MMPC just needed some space, and time, for more Xpander units to arrive, as senior manager for marketing services Arlan S. Reyes explained before the group rolled out of the Mitsubishi dealership in Balintawak. “There was a very long line of reservations for the Xpander, so we had to prioritize our customers. We had to wait for our vehicle allocations for the media.”
When we boarded the Xpander for the first time, we were immediately impressed with the generous cabin space. There were four of us in this seven-seat MPV, and the two people that sat in the second row, both of whom were above-average in height and build, said there was more than enough leg- and headroom for them to slouch and doze off. The third-row seats were conveniently folded down to accommodate all our luggage and gear, including tripods and bulky cases for cameras, stabilizers and drones.
Space, however, was just one of the many highlights MMPC wanted us to notice in the Xpander.
Among the more remarkable ones that we experienced during the drive were the class-leading minimum ground clearance of 205 millimeters (for the 16-inch wheels of the GLX Plus, GLS and GLS Sport) and 200 millimeters for the 15-inch wheels of the GLX variant, the easy-to-understand multimedia system (the navigation system in the GLX Plus, GLS and GLS Sport proved useful in plotting out our destinations in a loose convoy).
The gasoline-powered 1.5-liter 4A91 MIVEC engine provided an adequate power output of up to 103hp at 6,000rpm and 141Nm at 4,000rpm. Though we didn’t achieve MMPC’s recorded top fuel mileage of 22.9 kilometers per liter (kpl) for the GLS Sport A/T, our group still got an efficient average of 13 – 14kpl for the entire trip, considering the traffic outside of the expressways and the four-person load with luggage .
Mr. Reyes also guaranteed that we would enjoy the sedan-like ride of the Xpander, as he revealed that this was achieved via the interplay of the torsion beam of the rear suspension and the McPherson Strut front suspension. We had a firsthand feel of this on the sharp bends of the country road on our way to Bataan from Subic Bay via Morong, and on the rough unpaved turnoff from the highway in Bagac, Bataan to Las Casas Filipinas de Acuzar.
He also disclosed that the Xpander’s window panes and other strategic parts of the body frame underwent sound dampening processes for better noise insulation, resulting in a more quiet interior. We did notice this quietness that, even at speeds upwards of 100kph at the expressways, the drone inside the cabin was considerably lower compared to even some mid-size SUVs.
What we didn’t get to experience, thankfully, were the high-tensile steel strength Reinforced Impact Safety Evolution (RISE) body and the dual SRS airbags in action. The fact that they were there just waiting to be deployed in a millisecond’s notice to save our skins was enough to add to our peace of mind. Mitsubishi’s RISE body enhances passenger protection, such that in the event of a collision, its high cabin integrity efficiently absorbs the impact energy, diverting it from the occupants.
And it goes without saying that the Xpander is a looker, with an aggressive fascia that follows the automaker’s Dynamic Shield design concept that expresses both form and function, power and protection.
No spoilers here, whatsoever. What we discovered with the Xpander during this two-day trip, the motoring public must have long known by now. And they like what they’ve seen and felt, so far. Mr. Reyes said the waiting time for customers in the Xpander reservation list ran back to as long as three months, apparently mirroring its reception in Indonesia where it was first launched and where it received 50,000 orders immediately after its launch.
“During these ‘Ber’ months, however, we have been fortunate that our headquarters have allocated more [units] for the Philippines. So we have been able to lessen the waiting time to a little less than a month,” Mr. Reyes added.
So, there’s less waiting time, but still lots more space, for the Xpander to get into more Filipinos’ lives.


Xpander, explained

BILLED as a “next-generation MPV,” the Mitsubishi Xpander is a compact car-based model that could be configured to seat seven. It was launched in August 2017 in Mitsubishi’s largest Southeast Asian market — Indonesia.
Mitsubishi is pitching the Xpander’s mix of MPV utility and SUV toughness and style as key to the model’s commercial success. The company said the vehicle has the roomiest cabin in its class, and even out-sizes the cabin height of a competitor’s larger MPV because of a lower floor — the result of the Xpander’s monocoque structure that does not require its body to be mounted atop a ladder frame (unlike the larger truck-based MPV).
It debuted in the Philippines on March 1, and is available in four variants; GLX M/T, GLX Plus A/T, GLS A/T and GLS Sport. Prices range between P955,000 and P1.130 million.
Following the launch, strong demand in Indonesia, Philippines, Thailand and Vietnam has led Mitsubishi Motors Corp. (MMC) to increase production of the Xpander, which is built at a new manufacturing facility in Bekasi, Indonesia.
MMC said it originally planned to produce 100,000 Xpanders this year but a stronger-than-expected demand for the model will see production increase to 120,000 units. Additional welding and assembly facilities are seen to increase the manufacturing capacity of the Xpander to 10,000 vehicles per month.
The move seeks to “ensure waiting times are managed,” and that a further boost in production is “being investigated,” according to the car maker, which noted its Indonesia plant is aiming to build 150,000 Xpanders in 2019. — BMA

‘A-Class’ of its own:New-generation Mercedes-Benz hatch launched in PHL

By Kap Maceda Aguila

FIRST revealed globally at this year’s edition of the Geneva Motor Show, the fourth-generation Mercedes-Benz A-Class has now made its way into the Philippines. Auto Nation Group, official distributor of Mercedes-Benz in the country, last week unveiled the newest addition to its pantheon of vehicles while effectively serving as the entry point into its portfolio.
The subcompact executive hatch starts off strong visually, boasting the so-called “predator face,” also seen in the new CLS and is to be expected in only the brand’s “most progressive cars,” according to Mercedes-Benz chief design officer Gorden Wagener in a CarAdvice interview.
The all-new A-Class is the first model to wield the company’s new, completely revamped infotainment system MBUX (Mercedes-Benz User Experience) which is said to “[usher] in a new era in automotive connectivity.”
“Twenty years after it was first introduced in 1997, this vehicle is now smarter and sportier for the new generation. It is the synergy of modern luxury and technological breakthrough, and I believe you will agree with me the moment you see it for yourself,” said Francis Jonathan C. Ang, chief operating officer of the Auto Nation Group, in a speech during the launch at a Pasay City entertainment complex.
The MBUX features a learning ability, thanks to artificial intelligence, which allows it to be customized while adapting to suit the user. At the heart of the system are a 10.25-inch touch screen, center console touch pad, and touch-control buttons in the steering wheel — all highlighting what Mercedes-Benz calls its “touch operation concept.”
Meanwhile, a virtual assistant can be activated by pressing a button or by saying “Hey, Mercedes.” It opens the system to a host of commands to execute infotainment functions like destination input, music selection, climate control and ambient lighting. The MBUX comes with a speech recognition ability that helps it “recognize and understand nearly all sentences from the fields of multimedia and vehicle operation.”
Positioned as young and dynamic, the A-Class design idea is fancied as a “combination of uncompromisingly dynamic design and an intuitive operating concept,” seeking “sensual purity.” The aforementioned “predator face” is complemented by a low bonnet, flat LED headlamps with chrome accents, and “torch-like” daytime driving lamps.
The interior has been redesigned for spaciousness and an avant-garde feel. Along with the MBUX elements is an all-digital instrument panel display with three modes: Classic, Understated and Sport. The turbine-inspired air vents and leather multifunction sports steering wheel completes the look. Also of significant note is the large, freestanding widescreen, which dispenses with cockpit cowls above the instrument display.
Other highlights of the A-Class include standard Mercedes-Benz safety and assistive features such as Active Brake Assist, Active Parking Assist with Parktronic and rearview camera, along with seven airbags. It also has an anti-theft alarm package and Tirefit with tire inflator in case of road emergencies. Doing away with a spare wheel (and spare wheel well) saves on space and weight. The Tirefit system is composed of a tire sealant and electric pump, in addition to a tire pressure-loss warning indicator which lights up in the instrument cluster in the event of significant pressure loss.
Powering the A200 Edition 1 and A200 Progressive variants is a new powerful, fuel-efficient 1.3-liter engine delivering 163hp and 250Nm, mated to a seven-speed DCT. The A180 Progressive has a 1.3-liter engine and a seven-speed DCT system as well, this time delivering 136hp and 200Nm.
All Mercedes-Benz dealerships nationwide (EDSA Greenhills, Alabang, Bonifacio Global City, and Cebu) are now accepting pre-orders and reservations. Pricing is as follows: A200 Edition 1 (P3.29 million), A200 Progressive (P2.99 million), and A180 Progressive (P2.49 million).

2018 Chevrolet Corvette Stingray arrives in PHL via Motorama show

CHEVROLET’S current flagship sports model has arrived in the Philippines, and will be available in local showrooms in early 2019.
Debuting in the country is the 2018 Chevrolet Corvette Stingray, now displayed at this year’s edition of Chevrolet Motorama. The show, organized by local Chevrolet distributor The Covenant Car Company, Inc. (TCCCI), runs until today at the SM Megamall Fashion Hall in Mandaluyong City.
The 2018 Corvette Stingray is one of the latest versions of the nameplate’s seventh generation. The car packs a 6.2-liter V8 engine that, partly through direct fuel injection, continuously variable valve timing, active fuel management and a dry sump oil system, makes 460hp at 6,000rpm and 630Nm at 4,600rpm. An eight-speed automatic transmission sends the output to the rear wheels.
Standard performance items to the Stingray are staggered-size 19-inch and 20-inch wheels, special Brembo brakes front and rear, and the Magnetic Selective Ride Control. Also fitted to the car are HID headlamps, chrome badge package, a body-color carbon roof panel, Chevrolet’s MyLink multimedia connectivity system and eight-way power-adjustable seats, among others.
Available as options are features like performance exhaust, red or yellow brake calipers, and a variety of wheels.
TCCCI said the Corvette is the longest running sports car that has been in constant production — or since 1953, when it was introduced at the General Motors Motorama show in New York City.
TCCCI sells the 2018 Corvette Stingray for P8,546,888. — BMA

Azkals rule AFF Suzuki Cup 2018

THE ASEAN Football Federation (AFF) Suzuki Cup 2018 held on Nov. 13, 17, and 21 at the Panaad Park and Stadium in Bacolod City saw the Philippine Azkals fighting off the challenge posed by teams from Singapore and Thailand.
The match against Singapore on Nov. 13 saw the Philippine squad win 1-0. The Philippines also won 3-2 the next game, on Nov. 17, against Timor-Leste. The Azkals then scored a 1-1 draw against defending champion Thailand on Nov. 21.
According to Suzuki Philippines (SPH), the local team will “use these victories to further boost their game play in succeeding matches.” The Philippines is currently in second place in the Group B category.
SPH explained Suzuki’s support of the AFF “demonstrates its commitment to supporting the Filipino youth and upholding the Filipino pride.”
“The AFF Suzuki Cup is more than just a sports tournament. For us at Suzuki Philippines, it is an avenue to connect much more directly with the Filipino people, in particular the youth, and create unforgettable moments and memories with them. The dedicated and enthusiastic spirit exhibited by the audience shows the very meaning of the Suzuki Way of Life!, which we have always been adamant in sharing with Filipinos,” said Keiichi Suzuki, SPH director and general Manager for its automobile division.
The company noted it organized a motorcade on Nov. 13 in which more than 40 Suzuki cars and 287 motorcycles, all sporting Suzuki and Azkals banners, traversed several streets in Bacolod City. Outside the arena, a Suzuki Village featuring pop-up booths let guests enjoy various fun activities, as well as view the all-new Swift, Skydrive Sport and DF350 Outboard Motor.

Cars are now being made and marketed like high-tech gadgets

Observing young kids today, I can say that “demotorization” — the term used to describe the new generation’s loss of interest in automobiles — might be real. When I was small, I was hooked on die-cast toy cars (my favorite brand was Matchbox) and boys my age hung car posters on their bedroom walls. That was the dream, to one day save enough money to purchase a nice little runabout.
I don’t sense the same kind of automotive fondness among the youth these days. I know a nine-year-old lad who can spend hours watching videos and playing games on his iPad, but won’t even open the boxes of the toy cars I give him. It’s like motor vehicles are boring appliances to him — just necessary tools to get him to school and back home. Virtual reality has taken hold of his fancy, and I don’t see it letting go until he grows into adulthood.
Millennials today will scrimp on their daily meals just to be able to afford an iPhone X, but won’t feel anything over an irresistible financing offer for a stylish hatchback. As far as they’re concerned, there’s always Grab. Which allows them to get around without the stress of driving through horrendous traffic and without the oppressive costs that come with it (fuel, parking, maintenance). The combination of consumer electronics and the nightmare that car ownership has become is practically killing the appeal of driving among our children.
So now the question is: How do you design cars for (and market them to) a young, tech-savvy demographic that isn’t passionate about horsepower and torque? I got the answer last week at the Philippine introduction of the all-new Mercedes-Benz A-Class, a car whose cockpit features a kilometric touch screen display that will make your smart phone look like a joke.
Obviously, I vividly remember a time when car launches were dominated by lengthy product presentations that focused on the exterior design and the source of propulsion. At the A-Class event, the person tasked with said presentation did his best Steve Jobs (or Tim Cook) impression by doing a lively (scripted, yes, but lively) demonstration of the car’s so-called MBUX (Mercedes-Benz User Experience) infotainment system. He boasted that this system’s artificial intelligence could learn and memorize the personal preferences of the driver and the passengers.
Just say “Hey Mercedes” and then recite a simple command (“read my latest e-mail” or “play my favorite driving music” or “show me the fastest route to CATS Greenhills”), and your wish is granted. It’s like taking Siri along for the ride.
If you’re playful, you may even choose from 64 available colors to set up the cabin mood while you’re cruising with your anorexic date. It’s all very fancy and futuristic.
I don’t recall hearing the speaker talk about the suspension system or the dual-clutch transmission — both essential ingredients in giving guests an idea of the car’s performance potential. I guess none of those matter anymore. In this age of virtual reality and digital everything, the main selling point is how the vehicle can connect to its users and the infrastructure around it. How it hugs the bend or sprints from rest takes a backseat to wireless connectivity.
Is this necessarily a bad thing? Depends on whom you ask. Me, I just want to be entertained in traffic.

Peso plunges on Trump remarks

THE PESO plunged against the dollar on Tuesday as market players shied from riskier currencies after US President Donald J. Trump threatened to impose tariffs against Chinese goods anew.
The local unit ended yesterday’s session at P52.605 versus the greenback, 25.5 centavos weaker than the P52.35-per-dollar finish last Monday.
The peso traded weaker the whole day, opening the session at P52.52 versus the dollar. It dropped to as low as P52.62, while its intraday high stood at P52.43 against the greenback.
Trading volume spiked to $1.07 billion from the $755.4 million that exchanged hands the previous day.
Traders said the peso sharply declined against the dollar yesterday amid risk-off sentiment following the statement of Mr. Trump.
“The peso depreciated on renewed risk-off sentiment after President Trump threatened new tariffs on China, which are expected to affect the supply chains of major American companies such as Apple, Inc.,” a trader said in an e-mail.
In an interview with the Wall Street Journal published Monday, the American leader said it was “highly unlikely” he would accept Beijing’s offer to postpone the 25% levies on Chinese goods by next year. He mentioned he could also impose tariffs on Apple products such as mobile phones and laptops manufactured in China.
“US dollar was also higher versus major currencies after US President Trump signaled possible bigger trade war with China…,” Michael L. Ricafort, economist at Rizal Commercial Banking Corp., said in a text message, adding that expectations of another rate hike from the US Federal Reserve also boosted the greenback’s strength.
Mr. Ricafort said the peso also corrected following the wider fiscal gap released on Monday.
For today, two traders expect the peso to trade between P52.50 and P52.70 versus the dollar. — K.A.N. Vidal

Local stocks up as Cyber Monday boosts Wall St.

By Arra B. Francia
Reporter
SHARES CLIMBED on Tuesday despite mostly negative trading for most of the session, driven by the rally of retailer stocks in Wall Street on Cyber Monday.
The 30-company Philippine Stock Exchange index (PSEi) rose for a fourth straight session yesterday, adding 0.21% or 15.76 points to close at 7,413.63. The broader all-shares index also firmed up 0.39% or 17.67 points to 4,458.76.
“No slowdown again for Philippine investors for the last week of November still, as they continued to buy at close with the market trading in the red for most of the session,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
“Sentiment was boosted as US shares closed higher Monday with retailers rallying on expectations of strong sales from deals on Cyber Monday,” Mr. Limlingan added, referring to the Monday after the Thanksgiving holiday in the United States.
With this, Wall Street’s major indices rallied. The Dow Jones Industrial Average soaring 1.46% or 354.29 points to 24,640.24. The Nasdaq Composite index jumped 2.06% or 142.87 points to 7,081.85, while the S&P 500 index gained 1.55% or 40.89 points to 2,673.45.
Asian markets, meanwhile, were mixed, as investors focused on the meeting between US President Donald J. Trump and Chinese President Xi Jinping.
Meanwhile, Papa Securities Corp. Head of Marketing and Business Development Arbee B. Lu attributed the PSEi’s sideways movement to indecision.
“[Tuesday]’s choppy trading may be signs of indecision as we approach resistance at 7,480. We may see similar action in the days to come as investors await November inflation data next week,” Ms. Lu said in an e-mail.
Net buying also lifted the index after foreign investors booked net purchases of P312.80 million, a reversal of the net selling position of P631.89 million on Monday.
Ms. Lu noted that foreign investors bought stocks of mostly banking and property firms on Tuesday, such as BDO Unibank, Inc., SM Prime Holdings, Inc. and Bank of the Philippine Islands.
Sectoral indices were split between gainers and advancers. Moving to positive territory was the financials counter, which jumped 1.09% or 19.19 points to 1,764.56. Holding firms followed with a 0.58% or 42.24-point uptick to 7,281.64, while services added 0.04% or 0.66 point to 1,415.73.
On the other hand, mining and oil fell 1.61% or 139.91 points to 8,513.70. Property slumped 0.64% or 23.18 points to 3,577.03, while industrials dropped 0.59% or 64.24 points to 10,710.35.
Turnover went up to P7.59 billion after some 1.18 billion issues switched hands, rising from the previous session’s P6.88 billion.
Market breadth was positive with 98 advancers versus 76 decliners, while 58 names ended flat.SHARES CLIMBED on Tuesday despite mostly negative trading for most of the session, driven by the rally of retailer stocks in Wall Street on Cyber Monday.

UP Engineering launches Engineering Opening Week 2018

Every now and then, you can’t help but wish you were young again. And in the midst of college stress, students often yearn for simpler times when dragons in castles were the worst of our problems. That’s why the UP Engineering Student Council, together with Mineski Infinity, Diligence Café, Head and Shoulders, and C500 Juice Drink launched Ever After, this year’s Engineering Opening Week with fun Disney-inspired activities, bringing students and the young-at-heart back to the comforts of childhood.
The Piston Cup: Sportsfest kicked off the week-long festivities with shouts and cheers as athletes from the eight different departments and institutes battled it out to win the title of Engineering Sportsfest Champion. Players participated in basketball, volleyball, football, and e-games tournaments. Who said engineering is all about the books?
For most days throughout the week, Save The Day: Service and NGO Booths were present to save the students and staff who needed their services ASAP! Booths included PhilHealth, PhilPost, PAG-IBIG, PSA, CCAP, CARA Welfare Philippines, Unionbank (EON), Mineski, and Encarnacion Salon who offered discounted haircutting services for hair donors. For the Disney fans, free screenings of beloved Disney films like Mulan and Moana played at the Engineering Theatre.
Exceeding Limits: Academic Fair happened simultaneously, featuring different companies and organizations who offer academic services such as scholarships, study grants, study hubs and the like. Those present were Campus France Manila, Embassy of Japan, Childhope Philippines, Earth Island Institute, UP Office of Scholarships and Student Services, Daniw Study Center, College Edge (Lauan University Center), Satoshi Citadel Industries, Grimalkin, and Denso. These companies and organizations, aside from setting up booths, also gave talks to give more information and insights on their services to interested students and faculty.
On the third day, MeeskaMouska: Organization Fair was opened along Osmena Avenue inside the UP Diliman Campus. Students, most especially the freshmen, visited the booths of almost 30 Engineering-based organizations to play games, win prizes, and get to know the different organizations they can be part of over the course of their college stay.
The following night, talents were showcased at the Seize Your Moment: Talent Show. Freshies and invited guests gave stellar performances, proving that the college is indeed composed not only of smart but also talented individuals.
On the second to the last day, Escape the Rabbit Hole: Breakout session was opened the whole day. Inspired by Alice and Wonderland, this game had players solving challenges and answering puzzles to reach the end and escape the rabbit hole.
And as in every Disney movie, there is an ending that will surely captivate the hearts of its viewers. The Engineering Opening Week 2018 ended with Unto Neverland: Culmination Night wherein the sportsfest winners and freshie bloctasks winners were awarded. After the short program, games, food, and free-flowing drinks were enjoyed by freshies and upperclassmen alike. It was definitely a great way to end the celebration!

Gushcloud Intl. co-founders announce full buyback of company

Gushcloud International Co Founders announce in an email sent out to all employees and stakeholders yesterday that co-founders Althea Lim and Vincent Ha have regained control of Gushcloud International from Yello Digital Marketing Global.

“We are grateful for the last 3 years with Yello Digital Marketing Global,” they said in a joint statement. “The company has helped us break into key territories providing influencer marketing services across Asia Pacific. However, as co founders of Gushcloud International, we see the company evolving beyond influencer marketing services so we can build out a sustainable future for influencers and content creators.”
The pair bought back a 62 percent majority share from Yello Digital Marketing Global for an agreed price of $8.2 million.
“To play an important role within the media and entertainment industry, and to build out what this ecosystem looks like, we believe we had to take back control of steering the company forward and to onboard more strategic partners and investors,” they said. “We are excited for our next wave of growth and will remain close partners with Yello Digital Marketing Global.”
Gushcloud International was previously acquired in May 2015 by Yello Digital Marketing Global. The firm operates global influencer marketing, talent and entertainment agency that connects audiences and brands to influencers and content creators through representation and management, brand strategy and activations, marketing and activation services, media productions sales and distribution, licensing and co creating signature events.
Gushcloud International operates in 9 offices globally including Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, Korea, Japan, and Los Angeles; and is headquartered in Singapore.
 

AF Payments lays out their plans for a cashless future

The Philippines looks to finally be embracing what so many other nations have come to take for granted: Cashless payments. From shopping to daily commuting, these instantaneous transactions have the potential to streamline the lives of the modern consumer in an ever-growing number of ways.
AF Payments, Inc., the firm behind tap-and-go payment system beep card, had a watershed 2018, ending the year with a few notable milestones. On August 8, 2018, the company recorded its one billionth transaction in Metro Manila’s light rail network (LRT 1, LRT 2, and MRT 3) since its inception in 2015.
Today, the company claims over five million beep cards are in the market, used to fast-track payments at transportation hubs and, more recently, a growing list of retail outlets.
“2018 has been a productive year for beep,” said Peter Maher, president and CEO of AF Payments, Inc. “It allowed us to form strategic alliances and establish more innovative ways to extend our service to a wider public.”

Streamlining transportation

The beep card is most widely used as the platform powering a more streamlined light rail system, as well as the newer point-to-point (P2P) buses plying Mega Manila’s thoroughfares. AF Payments has since introduced their system to modern jeepneys across Metro Manila, e-trikes zipping through Intramuros, and private bus fleets in Mindanao.
“There’s a lot of change in the jeepney sector, including the formation of larger cooperatives,” he said. AF Payments has partnered with banks offering loans to these cooperatives. “We’ve contracted with five players so far which represent about a thousand jeeps.”
With the beep card platform, jeepney operators can more accurately track their performance, a boon for both them and the lending banks looking to track their investments. “There’s a growing acceptance of the need for the program, for the benefit of the millions of Filipinos who use these services.”
AF Payments also launched its first community partnership this year, with LNC Link. Lancaster New City (LNC), a new township in Imus, Cavite, outfitted its residents with NFC-enabled cards, allowing them to avail of a variety of services, including a new sprawling bus system connecting fixed points throughout LNC and neighboring areas.
AF Payments will soon be exploring similar partnerships with groups in Bukidnon, Iloilo, and Cebu, taking their smart city concept nationwide.
“Transportation has been and will continue to be our core strength,” Maher said, attributing a lot of their expansion efforts to government support towards developing their industry for the benefit of Filipino commuters.

The future of retail

Having cut their teeth in transportation, and proven their system’s strength and consistency, AF Payments has leveraged their wide user base to move into another ripe sector: Retail.
Beyond the food kiosks in light rail stations, AF Payments has partnered with establishments like Wendy’s, Binalot, and Worship Generation to offer customers on-the-go a more convenient buying experience.
The firm has also begun looking to partner with schools. Currently, they’ve powered St. Jude Catholic School’s student, staff, and faculty IDs with stored value credits that can be used at their cafeteria and commissaries.
The firm is also looking to revamp their mobile app, expanding its functions through a partnership with Coins.ph. Initially limited to simply checking card balances, the app will now allow users to load their cards on-the-go.
Utilizing near field communication (NFC), users can tap their beep cards on the back of their phones, and instantly top up using the new mobile app. AF Payments claims they plan to implement a loyalty system as well that rewards frequent users with bonus stored credits.
In addition to the mobile app, Chinabank debit cardholders can now load their beep cards directly using Chinabank ATMs. And the bank will soon be expanding this service to other debit cardholders looking to top up at their terminals.

Building a cashless society

“The move to cash to cashless is a multi-year effort,” Maher said. In 2019, he plans to build a stronger presence in transport, which Maher says continues to be AF Payment’s main focus. This means more cities like LNC utilizing beep cards for their buses, PUVs, and public parking systems.
While many platforms across the globe have moved into using smartphones and smartwatches as the primary devices for cashless, tap-to-pay transactions, AF Payments will continue building its services around the physical beep card.
When dealing with mass transportation systems, Maher says that expediency and reliability are key. A simpler system like an NFC-enabled, value-stored card means consistent service and zero lag time. Transactions via smart devices are still on the horizon, he says. But these will complement the beep card, never replace it.
AF Payments hopes their beep card will grow into something akin to Hong Kong’s ubiquitous octopus card, a contactless stored value smart card for making electronic payments in online or offline systems. And Maher says that future isn’t too far off.
“The numbers go up every year,” Maher said. “In the light rail network, around 60 percent of people are using beep cards. I think it will grow by one or two percent each year. In 2018, I think the e-wallet guys have had their best year. They’re targeting the unbanked communities, so that’s a hot area. I think there’s good momentum for cashless transactions in the Philippines.”

Spending fuels surge of fiscal gap

By Elijah Joseph C. Tubayan
Reporter
THE NATIONAL GOVERNMENT saw its budget deficit more than double in October as expenditure growth outpaced an increase in revenues, the Bureau of the Treasury reported on Monday.
The fiscal gap surged by 175% to P59.9 billion in October from P21.8 billion a year ago, as expenditures grew 35% to P306.6 billion from P226.9 billion and revenues increased 20% to P246.8 billion from 205.1 billion.
Tax revenues, which accounted for about 90% or P222.2 billion of the overall revenues, grew 19% year-on-year. The Bureau of Internal Revenue (BIR) collected P164.8 billion of that amount, 16% more than the year-ago P142.5 billion, while the Bureau of Customs (BoC) raked in P56 billion, increasing by 30% from P42.9 billion in October last year. Other offices raised P1.5 billion, up 45% from last year.
Non-tax revenues — including tax subsidies for state importation and other transactions — grew 32% to P24.5 billion in October. The Treasury raised P8.4 billion of that amount, up by a tenth from last year, which was due to higher income from national government deposits, interest on advances to state companies, foreign exchange risk cover fee and the national government’s share of Philippine Amusement and Gaming Corp. earnings. The government also generated P16.1 billion from other offices, surging 47% year-on-year.
Expenditures’ 35% increase in October was driven primarily by the 37% surge of “other” disbursements — which include infrastructure and other capital outlays — to P282.6 billion, accounting for 92.17% of overall state spending, from P206.4 a year ago.
Interest payments, meanwhile, amounted to P24 billion, 18% more than in October 2017.
The 10 months to October saw the fiscal deficit grow 87% to P438.1 billion from P234.9 billion in 2017’s comparable period.
Overall revenues stood at P2.358 billion in the January-October period, up 18% from the P2.007 trillion logged last year. The tax take was 16% bigger year-on-year to P2.118 trillion from P1.825 trillion in the same comparable 10-month periods. The BIR raised P1.609 trillion of that amount, 12% larger from last year, while the BoC collected P490.6 billion, surging 34%. Other offices raised P18.2 billion more than a year ago.
Non-tax revenues amounted to P240.6 billion, 33% more than last year, with the Treasury raising P98.9 billion of that amount, up by a fifth year-on-year, and other offices generating P141.7 billion, 43% higher than the past year.
The national government spent a total of P2.796 trillion in the 10 months to October, a fourth bigger than the P2.241 trillion disbursed in the same months in 2017. “Other” disbursements grew 27% to P2.501 trillion from last year, while interest payments increased by 10% to P295.3 billion.
Sought for comment, Union Bank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said that the expansion of the fiscal deficit was to be expected due to the government’s infrastructure push.
“While the fiscal deficit has almost tripled from last year and while it is very important to recognize such, this is something that is expected from the current government’s set of priorities. It is good to note that revenues have been in parallel growth with spending. And since spending is larger compared to revenue collections, expenditure should be directed and specific. Current expenditures should be sustainable and according to what was planned,” he said in an e-mail.
“In the coming months, I expect the fiscal deficit to continue to widen as aligned with (President Rodrigo R.) Duterte’s plans for higher spending on infrastructure development,” he added.
“The widening deficit, though, may impact the currency and trade… and should be carefully monitored.”
National government fiscal performance (October 2018)