MSpectrum, Inc. and Emperador Distillers, Inc. have teamed up to provide the solar power requirement in the latter’s Laguna manufacturing plants. In photo are (LR) Anglo Watsons Glass, Inc. President Alec M. Tempongko, MSpectrum President and chief executive officer (CEO) Ma. Cecilia M. Domingo, Emperador Distillers President and CEO Winston S. Co and MSpectrum Chief Operating Officer Patrick Henry T. Panlilio.
MSPECTRUM, Inc., a wholly owned solar subsidiary of Manila Electric Co. (Meralco), signed a partnership with a subsidiary of brandy and whisky producer Emperador, Inc. for a solar rooftop project.
In a statement on Sunday, MSpectrum said it signed an agreement with Emperador Distillers, Inc. (EDI), to put up a 640-kilowatt-peak solar facility at the latter’s manufacturing plant in Sta. Rosa, Laguna.
The project is expected to generate approximately 832,798 kilowatt-hours of energy annually. This will allow EDI to reduce its carbon footprint by an estimated 593.12 metric tons, equivalent to 27,242 trees planted and more than 2.36 million kilometers reduced in vehicle travel per year.
“The contract signing with MSpectrum is a continuation of the transformative journey of our business. Their solar rooftop installation will not only help us achieve our sustainability goals but also significantly reduce our electricity costs,” EDI President and Chief Executive Officer (CEO) Winston S. Co said.
“We are excited about our partnership with MSpectrum as we continue to explore more solar solutions for our facilities to maximize our energy efficiency and continue our commitment to a greener future,” he added.
With the partnership, MSpectrum will be able to leverage Emperador’s operational scale to implement “impactful solar solutions,” according to MSpectrum Chief Operating Officer Patrick Henry T. Panlilio.
“Through our tailored offerings and strategic alliances with leading technology partners, we are committed to delivering efficient, reliable, and safe solar installations that enhance energy efficiency, reduce costs, and contribute to a more sustainable future,” he said.
MSpectrum’s latest partnership builds on its collaboration with Anglo Watsons Glass, Inc., a unit of EDI, where it installed a two-megawatt-peak solar photovoltaic system in its Canlubang manufacturing plant in 2023.
“We are fully committed to our partnership and look forward to leveraging our expertise to support Emperador in achieving its sustainability goals,” MSpectrum President and CEO Ma. Cecilia M. Domingo said.
MSpectrum offers tailor-fit solar solutions for industrial, commercial, and residential customers “through an in-depth understanding of energy consumption behaviors and strategic partnerships with world-class technology partners.”
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
The late 6th century BC saw Sparta as the preeminent hegemon in the Athenian peninsula. Sparta was the preeminent leader of the Greek forces during the second Persian invasion under Xerxes that culminated in victory at the legendary Battle of Thermopylae. This repute was well deserved: the lawmaker Lycurgus saw to it that the constitution and civilian life of Sparta was focused on the cultivation of military arts; a society molded to produce formidable warriors. The upper-class males started rigorous military training at age seven, which continued throughout life.
In the aftermath of the Thermopylae, though, due to their unwillingness to campaign too far from home which was beset by growing civil unrest (partly the revolt of the Messenian zealots), Sparta retreated into relative obscurity. Athens wrested hegemony to lead the anti-Persian struggle. Sparta reasserted its claim to hegemony, which resulted in the Peloponnesian Wars which saw Athens cede hegemony back to Sparta partly because of help by Persians under Lysander whose fleet defeated the Athenian allied fleet and forced Athens to capitulate in the Battle of Aegostami.
But after their disastrous defeat at the hands of the Thebans under Epaminondas in 371 BC at the Battle of Leuctra, Sparta descended into the nadir of prestige. The Spartiates, the army proper of Sparta and the rampart of the Spartan ruling class against the more numerous and increasingly mutinous Messenian helots (slave class) was losing manpower due to strict rules on marriage.
Athens was the anti-thesis of Sparta. It cultivated citizen participation in its politics; it valued education, the theater, sports and other public activities. Its attitude towards war was lackadaisical: “Let’s cross the bridge when we come to it.” Meanwhile, there is more to life than cutting throats. As the famed lawgiver Pericles (via Thucydides’ The Peloponnesian Wars) put it: “There are certain advantages, I think, in our way of meeting danger voluntarily, with an easy mind instead of laborious training with natural rather with state-induced courage — and when they are actually upon us we show ourselves just as brave as these others who are always in strict training.”
Athens (Pericles) and Sparta (Lycurgus) displayed the two contrarian philosophies of civic duty to the state that modern societies still confront today. Nobody has come out with a convincing story on which one is the superior posture for the modern state. All we know is that today 67 countries have mandatory military service and many have mandatory Reserve Officers’ Training Corps (ROTC) at secondary and tertiary education.
The Prussians, under the Hohenzollerns, closely followed Sparta in its militarism and severe discipline. As a consequence,it emerged as a rival to top military powers in Europe in 1700s. The movement was spearheaded by the Prussian Junkers (upper-class males who followed the Bismarck-Von Clausewitz leadership) who swore to so-called Prussian virtues of loyalty, punctuality, frugality, honesty and order. Prussia as a polity, fragmented by religious (Calvinism, Pietism, Lutherans, Catholics, Jews, Slavs) and political cleavages, started to heave. It needed a centralizing principle. As war author Walter Flex put it, “He who swears by the Prussian flag no longer has anything that belongs to himself.” Duty, duty, duty. The value of the individual is nothing except as a thread forming a fabric of the carpet. According to Prussianism ideologue Oswald Spengler (1921) (The Decline of the West), Prussian instinct worshipped the whole: “…Power belongs to the whole. The individual serves it. The whole is sovereign…”
The Prussian militarism became a template for other countries still in the state-building phase — a separate body of men marching in uniform by a single anthem seems to be very attractive. Japan adopted the Prussian model for its military to quell the turmoil following the Meiji Restoration. The slogan “Enrich the country, strengthen the army” signaled the Restoration government’s belief in Prussian template. The social revolution was so successful that within 30 years Japan had become a recognized world power, the equal of European colonial powers.
These contrarian philosophies are once again pitted against each other in the 2024 Philippines. Before 2002 and the passage of the National Service Law (RA 9163), ROTC was mandatory in secondary and tertiary education. In 2002, and after the death of Mark Welson Chua, who denounced the corruption in UST’s military training program, ROTC became optional and could be replaced by the Literacy Training Service (LTS) or Civic Welfare Training Service (CWTS). It was not conviction but passion (the death of a critic of ROTC corruption) that determined the course of the country’s history. ROTC became the last choice of most students to escape the rigors associated with military training.
President Ferdinand “Bongbong” Marcos, Jr. has now called on Congress to pass the bill mandating the ROTC as mandatory component for tertiary students of higher learning (Senate Bill 2034). He designated this as a priority bill. Arrayed against it is the usual noisy phalanx of well-meaning defenders of the status quo (The National Service Law) mandating as options of LTS and CWTS to ROTC making the case for Periclean “meeting danger voluntarily with an easy mind…” But the mandatory ROTC advocacy is no longer to fight a shooting war but to confront the protracted war of underdevelopment and destitution.
The perspective that deserves consideration in the debate is where the Philippines is at with respect to state building. Japan in the Meiji era or of Florence in 1500 in the times of the Machiavelli were in the state-building stage relative to countries already established and, as it were, secure in their skin. I consider the Philippines as still in a state-building stage. While we have graduated from the Hobbesian state of “warre of all against all,” we are still some distance away from proper nationhood. As National Artist F. Sionil Jose (1999) put it, “We have become a state before we became a nation.” And we have not attained a proper rule of law. To quote F. Sionil Jose futher: “This is what ails us all — we do not ostracize them, we do not punish them — no we anoint these vermin instead.” See how the bigwig perpetrators of the Napoles scandal have mostly been exonerated. We instead imprisoned a former lady senator on trumped charges related to drugs brought by a clique in the past government. Foremost in our consciousness is “What’s in it for me?” not “What’s in it for the nation?”
By “nation” we mean an “imagined community” whose members, in the words of political scientist Benedict Anderson (1983, 1991*) “will never know most of their fellow members… yet in the minds of each lives the image of their communion.” Fellowship in a nation is a mental image of belonging. This fellowship implies an obligation contained in Margaret Mead’s parable of the “healed broken femur.” When asked where civilization started, Mead’s retort was classic: “…That in the animal kingdom, if you break a leg, you die; you are meat for prowling predators… A broken femur that healed is evidence that someone has taken the time to stay with the one who fell… had carried the person to safety… Helping someone else through difficulty is where civilization starts.” Civilization as obligation to mutual help is really a collective action personified. The grant or the sharing of one’s personal fitness with another member of the group in need, risks becoming oneself a prey to other predators — that is what started civilization. It is incompatible with the economic favorite starting postulate of homo economicus or what Nobel laureate, D. Kahneman, pejoratively calls “Econs” in Thinking Fast and Slow (2011).
From the perspective of F. Sionil Jose’s “… becoming a state before becoming a nation,” of a polity in need of a centralizing principle, I tend to favor the Spartan and the Prussian philosophy of duty to the state.
*Imagined Communities: Reflections on the Origin and Spread of Nationalism, (1991, London: Verso).
Raul V. Fabella is a retired professor of the UP School of Economics, a member of the National Academy of Science and Technology, and an honorary professor of the Asian Institute of Management. He gets his dopamine fix from bicycling, tending flowers with wife Teena, and assiduously, if with little success, courting the guitar.
The MG HS PHEV will ‘probably’ arrive in January next year, according to a SAIC Motor Philippines official. — PHOTO BY DYLAN AFUANG
By Dylan Afuang
IT’S SAFE to say that the recent 9th Philippine International Motor Show (PIMS) will drive local auto sales upward — likely all the way to the projected target of 500,000 units sold by 2024 or the succeeding year.
Vehicle sales reached 344,307 units last September, a joint report by the bi-annual PIMS organizer the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed. This represents a month-on-month increase of 1.0%, the two groups said in a release. The statement also quoted CAMPI President Atty. Rommel Gutierrez thus, “The increase can be attributed to new stock arrivals and improved promotions from the brands.”
Indeed, the 17 participating marques promoted and launched new offerings once more at the PIMS, held at the World Trade Center Manila from Oct. 24 to 27, and with the theme, “Dare. Drive. The Future Redefined.”
“The target of 500,000 units was first expressed 10 years ago,” Atty. Gutierrez was quoted previously. “We’re confident that we’ll hit that, if not this year, then the next.”
At the 9th PIMS, “Velocity” witnessed the arrival of the following vehicles — conventionally powered (ICE) and electrified (EVs) — that could contribute to the half-million sales mark.
MG
The MG HS PHEV will ‘probably’ arrive in January next year, according to a SAIC Motor Philippines official. — PHOTO BY DYLAN AFUANG
Shanghai Automotive Industry Corp. (SAIC) Motor Philippines (SMP) saw a seven-percent average monthly sales growth from January to September 2024, SMP President Felix Jiang announced at the PIMS.
While SMP has yet to officially introduce it to the local market, it held a preview of the HS PHEV. Being a plug-in hybrid, the crossover is powered by both ICE and electric power. Using electric power alone, the HS PHEV promises a range of 100km. The vehicle’s ICE and EV range combined is rated at 1,065km.
CHANGAN
The Changan Hunter REEV is presented by Changan Auto Philippines General Manager Maricar Parco. — PHOTO BY DYLAN AFUANG
Inchcape-led Changan Auto Philippines staged a preview for the brand’s Hunter, which is plugged as the world’s first “Range-Extended Electric Vehicle” (or REEV) pickup truck. It’s slated to go on sale in the first quarter of 2025 with a price falling under P2 million, Changan Auto Philippines Head of Sales and Network Development Jun Cajayon announced.
The Hunter REEV’s turbocharged engine generates charge for the 31.18-kWh battery, which is then linked to two electric motors. Depending solely on electric power, the Hunter can travel 180km and 1,031km when assisted by the range extending engine.
KIA
The EV9 GT-Line (right) takes its place in the PIMS lineup of Kia. — PHOTO BY DYLAN AFUANG
ACMobility-led Kia Philippines launched the South Korean car maker’s EV9 electric SUV. Aside from holding international acclaim — such as the 2024 World Car of the Year award — the EV9 boasts a six-seater cabin, Meridian sound system, and 512km of range with its dual-motor setup. In GT-Line AWD spec, the SUV retails for P5.888 million.
“We aim to empower individuals and families to embrace an EV-powered lifestyle,” ACMobility Chief Executive Officer Jaime Alfonso Zobel de Ayala stated during the EV9’s public unveiling at the PIMS.
DAEWOO
Daewoo’s take on the Philippine jeepney features either forward-facing seats or sideways-facing benches and air-conditioning. — PHOTO BY DYLAN AFUANG
Columbian Manufacturing Corp. (CMANC) is a local coachbuilder that specializes in public transport vehicles including South Korean Daewoo-branded buses. The company operates its assembly plant in Santa Rosa, Laguna.
CMANC presented its Daewoo BS106 bus and customizable Smartbody intended for commercial applications. The company also offers a modern take on the Philippine jeepney, featuring a cabin with forward-facing seats or sideways-facing benches and air-conditioning.
HONDA
Honda Cars Philippines, Inc. President Rie Miyake poses with the just-launched Civic RS e:HEV. — PHOTO BY DYLAN AFUANG
The stage of Honda Cars Philippines, Inc. (HCPI) represented the company’s goal of offering safe, sporty, and sustainable vehicles, HCPI President Rie Miyake underscored in her message.
But HCPI emphasized the beginning of its electrification offensive — as represented by the brand’s newly introduced EM1 e: electric scooter (P155,400) and hybrid-electric models in the Civic RS e:HEV (P1.99 million) and CR-V (P2.59 million).
FOTON
Foton’s Traveller Sierra EV (left) with the Wonder pickup truck — PHOTO BY DYLAN AFUANG
Representing the China-headquartered vehicle brand, Foton Motor Philippines, Inc. (FMPI) also operates an ISO-compliant manufacturing facility in the Clark Freeport Zone in Pampanga. FMPI General Manager Levy S. Santos led the preview of what he described as Foton’s “fully electric and hybrid models that span a wide range of automotive segments.”
These vehicles are the Traveller Sierra EV and Wonder pickup truck. The Traveller is touted to be the first-ever battery electric passenger van in the Philippines, while the Wonder features a gasoline engine and a payload capacity of up to 900kg.
MAZDA
Mazda’s partnership with AutoExe opens a range of customization options for Mazda owners. — PHOTO BY DYLAN AFUANG
“Each time you get into one of our cars, it tells our story,” Mazda Philippines President Steven Tan stated. With the company’s AutoExe program, and MX-30 R-EV plug-in hybrid (which, Mr. Tan said to “Velocity,” is meant “to showcase an EV with a rotary range extender”), Mazda’s focus on driver-oriented vehicles and exploration of carbon-neutral propulsion is evident.
With the company’s AutoExe customization program, Mazda customers can now purchase from Mazda Philippines dealerships cosmetic and performance upgrades for their vehicles. The MX-30 R-EV — previewed only at the PIMS — is powered by an single-rotor ICE engine that generates charge for an lithium-ion battery.
NISSAN
Nissan X-Trail with E-Power — PHOTO BY DYLAN AFUANG
Celebrating 55 years in the Philippine market, the Nissan Philippines, Inc. (NPI) lineup “reflects (its) dedication to diverse customers,” NPI President Yasuhisa Masuda expressed during the show.
NPI staged a preview of its Magnite subcompact crossover that could represent the brand’s most affordable model and X-Trail SUV that’s powered by Nissan’s signature hybrid-electric E-Power drivetrain, and opened the order books for the Z Nismo sports car (P4.688 million).
SPECIALIZED microinsurance products that cater to underserved sectors could help address the protection gap in the Philippines, insurance technology (insurtech) firm discovermarket said.
“Overall, while the Philippine microinsurance market has made significant strides in offering basic protection, discovermarket believes that there is still a gap in more comprehensive and specialized insurance products that could address a wider array of risks and provide greater protection to the underserved in terms of financial insurance for those who are challenged with job loss and accidents as well as victims of fraud and cyberattacks,” discovermarket Group Chief Executive Officer and Founder Patrick Bühler said in a recent e-mail interview with BusinessWorld.
For its part, discovermarket said it innovated its distribution through embedded microinsurance products in partnership with local companies.
“We see that embedded microinsurance products are not just a solution but a paradigm shift, offering new possibilities in addressing the protection gap but also having the potential to reshape industries, offering new avenues for protection coverage and empowering individuals and businesses alike,” Mr. Bühler said.
“At discovermarket, we have led this shift with innovative, embedded microinsurance products that address the needs of end-customers, which ranges from cybercrime protection to personal accident protection,” he added.
These partnerships allow the company to manage costs, making its products more affordable.
Embedded insurance also simplifies the application process by eliminating lengthy assessments and personal data disclosure, he added.
“discovermarket’s strategy modernizes insurance by partnering with major brands in sectors like telecommunications and hospitality. discovermarket embeds insurance into their core products, such as connectivity services, enhancing their value and market differentiation while providing added benefits to customers,” he said.
The insurtech firm expects mobile and digital channels to become the primary means for the underserved sectors to access insurance products.
“We’ve observed a promising trend of microinsurance availability on digital platforms, which bodes well for the industry’s future,” Mr. Bühler said.
The Philippine microinsurance market’s growth is still hampered by a lack of consumer awareness, affordability and integration issues, as well as trust and transparency concerns, he said.
“Addressing these gaps can make insurance more accessible, affordable, and tailored to the needs of consumers, given the rapid adoption of smartphones in both countries, ultimately driving higher adoption rates and better protection for all.”
Microinsurance premiums collected by the insurance industry grew by 17.35% to P13.54 billion in 2023, latest Insurance Commission (IC) data showed.
Insurance density, or the amount of premium per capita or average spending of each individual on insurance, rose by 14.37% to P1,907.19 in the first half of 2024 from P1,667.50 a year prior.
Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, went up to 1.71% from 1.63% previously, based on IC data. — A.M.C. Sy
THE Philippine College of Surgeons (PCS) is holding its 88th anniversary gala in collaboration with the Association of Women Surgeons with a fashion show titled Through the Years: A Fashion Gala. The clothes will be made by designer Twinkle Ferraren and the models will be their very own doctors.
Dr. Bernice Navarro, program director for the gala, gave the reason as to why their very own colleagues will be modeling the clothes. “You know, we as surgeons have a deeper desire (to be) somebody else,” she said with laughter. “With this fashion show, we’ll be able to bring out the other talents, or the personalities of the surgeons,” she added. “For somebody who might not be in the medical field, you’ll see your doctor as somebody who’s fixed, straight, conforming to a certain type of personality. But deep inside, there’s a funnier side, or a more laid-back side of a surgeon.”
“Doctors can be glamorous as well,” she said in an interview at the sidelines of a press conference at the Manila Hotel on Oct. 29.
This gala isn’t just for the doctors to be able to play. Proceeds — which would come from donations made during the event, sponsorships, and ticket sales — will be pooled together for the outreach programs of S.U.R.E Commission, the Association of Women Surgeons of the Philippines, and the First 1,000 days Coalition.
Ms. Navarro pointed to a map of the Philippines, modified to show where they have held surgical missions just this year. The free surgeries they have performed for residents of far-flung regions in the country number in the several hundreds (139 were performed in Cagayan alone).
“We’ve already gone to those places. What we do is we coordinate with the local government unit or a particular doctor who is a member of the PCS, who is in that area,” she said.
The fashion shows have been going on since 2016 (with a pause during the pandemic, resuming in 2022). In 2023, they tapped designer Ditta Sandico for the gala. This year, they tapped Twinkle Ferraren, known for her work with local textiles.
Ms. Ferraren will be working with the Through the Years theme, dividing the 27 pieces (worn by 27 doctors) through decades spanning the 1950s through the 2000s. She showed sketches during the press conference, and bolts of the fabric to be used. She will be using familiar fabrics like piña, but also more esoteric selections like pis syabit from Mindanao.
While rooted in Ms. Ferraren’s past work, the decision to use indigenous textiles connects to the various regions the doctors have visited for their surgical missions. “Some of them are from our partner communities that we’ve been working with… but definitely, these are all from Luzon, Visayas, and Mindanao,” the designer told BusinessWorld.
“The pandemic opened my eyes to the medical world and the doctors, and how there’s this underlying connection that’s not really visible, but it’s there. It’s all connected,” she said.
The gala will be held on Nov. 17, 5 p.m., at the Fiesta Pavilion of the Manila Hotel in Manila. For event sponsorship and ticket inquiries (P5,000 each), contact Michelle Cusi at 0917-840-2598. — Joseph L. Garcia
MWELL CHAIRMAN and MPIC Chairman and CEO Manuel V. Pangilinan
HEALTH and wellness mega app mWell has expanded its collaboration with Metro Pacific Health Corp. (MPH) to provide wider healthcare access for Filipinos.
Under the recently signed referral partnership, mWell app users now have access to 26 hospitals within the MPH network.
MPH is the healthcare unit of Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC).
Some of the hospitals under the MPH network include Asian Hospital, Makati Med, Cardinal Santos, Commonwealth Medical Center, Delos Santos Medical Center, Lourdes Hospital, Riverside Medical Center, and Davao Doctors.
“We are harnessing the combined strength and resources of the group to service the health and wellness needs of Filipinos,” mWell Chairman and MPIC Chairman and Chief Executive Officer (CEO) Manuel V. Pangilinan said in an e-mailed statement over the weekend.
“Through technology, we are able to widen the reach of our hospital services and provide the kind of services that our people need in as many areas as possible. mWell’s fully integrated digital platform enables us to make quality healthcare accessible and more convenient for our countrymen,” he added.
A member of the MPIC group, mWell is a health technology platform that offers telemedicine, health and wellness programs, and e-commerce in a tech-based healthcare digital ecosystem.
“Our mission in mWell is to streamline the healthcare journey for patients visiting MPH hospitals. Our platform can manage bookings, address pain points, and transform the healthcare journey of the patients,” mWell President and CEO Chaye Cabal-Revilla said.
MPH recently added the 26th hospital in its network after acquiring a controlling stake in Diliman Doctors Hospital, Inc. (DDHI).
DDHI is a 165-bed hospital in Quezon City that provides healthcare to nearby residential subdivisions such as Ayala Heights, Loyola Grand Villas, Capitol Hills, Capitol Homes, and Filinvest Homes.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
AGRICULTURAL OUTPUT in the third quarter likely fell due to the impact of tropical cyclones on crops and livestock, analysts said.
Former Agriculture Secretary William D. Dar gave an estimate for the third quarter of a 3% decline, citing the unfavorable weather and the continued effects of African Swine Fever (ASF).
The value of farm and fisheries production fell 0.3% in the third quarter of 2023. Output in the second quarter of 2024 had declined 3.3%.
“The onset of tropical cyclones has badly affected third quarter output… La Niña with its heavy rainfall and flooding coupled with African Swine Fever will affect greatly Philippines agricultural output in the third quarter,” Mr. Dar said via Viber.
“Regions had been reporting increasing yield per hectare but due to typhoons and floods they have been (damaged). This also includes vegetable areas in Northern Luzon,” Philippine Chamber of Agriculture and Food, Inc. President Danilo V. Fausto said via telephone.
La Niña, which has not formally been declared but could persist until early 2025, increases the likelihood of tropical cyclones, low-pressure areas, and the intensification of the Southwest Monsoon, according to the government weather service, known as PAGASA.
University of Asia and the Pacific (UA&P) Center for Food and Agribusiness Executive Director Marie Annette Galvez-Dacul said via Viber that disease outbreaks, rising farm input prices, and weather disturbances continue to dampen agricultural output.
On the other hand, she said output could be buoyed by increased food consumption and the growth of the food services sector.
The continued likelihood of strong typhoons will affect livestock, Alfred Ng, vice-chairman of the National Federation of Hog Farmers, Inc. (Nat Fed) said via Viber, particularly in terms of crops that serve as animal feed.
“Corn has suffered losses in typhoon-hit provinces,” Mr. Ng added.
According to a Philippine Statistics Authority (PSA) report released on Oct. 15, output of palay (unmilled rice) likely declined 12% to 3.35 million metric tons (MT) during the third quarter compared with actual output a year earlier.
The corn harvest is believed to have increased 2% to 2.53 million MT compared with actual output ayear earlier.
Federation of Free Farmers National Manager Raul Q. Montemayor said via Viber that delayed planting of rice due to the late onset of rains is a factor in the quarter, pushing back the main harvest to the fourth quarter, “but now even fourth quarter crop will be affected by typhoons and floods.”
Palay production is estimated to drop to a four year low of 19.41 million MT in 2024. If realized, this would be equivalent to a 3.24% decline from 2023. The current 2024 forecast had been downgraded from the 20.1 million MT estimate the DA issued in August.
The forecast suggests that the rice industry could be in for its worst production totals since 2020, during which output of the grain totaled 19.29 million MT.
The hog federation’s Mr. Ng said that respiratory diseases are likely to spread in such conditions, affecting mortality rates and animal growth.
He added that increased likelihood of flooding could potentially spread the ASF disease in unaffected areas.
Floods can also be a threat to the swine sector as ASF could bypass the biosecurity measures of otherwise clean farms, he added.
There are 108 municipalities across 25 provinces with active ASF cases as of Oct. 18, the Bureau of Animal Industry reported. The ASF virus was first detected in the Philippines in 2019.
Mr. Ng said that due to renewed outbreak of ASF cases starting August, “many farms will repopulate cautiously, but the impact on may show up sometime first quarter of next year.”
In August, the DA began a limited rollout of the ASF vaccine to smallholder farmers. The department has since included commercial hog farms enrolled into the DA’s Integrated National Swine Production Initiatives for Recovery and Expansion Program.
So far, only the AVAC ASF Live vaccine from Vietnam has been approved by the Food and Drug Administration for the controlled rollout. About P350 million was allocated by the DA to procure 600,000 doses.
The PSA is scheduled to release third-quarter data on farm output on Nov. 6, Wednesday. The agriculture industry accounts for about a 10th of gross domestic product and around a quarter of all jobs.
The Department of Finance (DoF) claims that the Philippine Health Insurance Corp. (PhilHealth) has excess, idle funds. This claim ignores not only the staggering reserve deficit of PhilHealth, but also the yawning gap in healthcare financing. The DoF cites three bases for excess: 1.) a ballooning reserve fund, 2.) benefit claims lower than the subsidy for premium, and, 3.) the funds are no longer needed. Financial statements reveal that point No. 1 is contrary to law and insurance accounting standards. Legal and finance principles prove that point No. 2 is a ridiculous comparison. National health indicators debunk point No. 3 by showing a gap between the goal and reality.
The Universal Health Care Act mandated PhilHealth to set aside a Reserve Fund to cover short-term projected expenditures and an Investment Reserve Fund to cover liabilities beyond two years. The law caps the Reserve Fund at an equivalent to two years of projected expenses, and limits the use of excess funds to improving benefits, lowering contributions, or building the Investment Reserve Fund. No portion of the reserve fund or income thereof should go to the general fund. The Investment Reserve Fund is meant to cover long-term liabilities, but PhilHealth has not created one.
The DoF implied that the Reserve Fund has accumulated a huge balance, maybe enough to exceed its ceiling. Based on PhilHealth’s March 2024 financial statements, the Reserve Fund only amounted to P488 billion, which was still below the actuarial estimate of P560.55 billion. PhilHealth has yet to release updated financial statements and prove that there is an excess over the short-term Reserve Fund. Even the Commission on Audit (CoA) issued a qualified opinion on PhilHealth and questioned the accuracy of its actuarial valuation report.
The DoF stated that the fund transfer will not come from the reserve fund nor member contributions, but from the “unused” portion of government subsidies. But it’s not true that the reserve fund or member contributions will not be affected. The cash transfer reduced the asset side of the balance sheet, and would be matched by parallel changes on the liability and equity side: a decline in provision for insurance contract liabilities (ICL) and a decline in member’s equity. In determining the transfer amount, the government calculated the difference between the subsidy given (or premiums paid) for indirect contributors and actual benefit claims of indirect contributors. Government claimed that there were unused subsidies even if these subsidies were already spent on premium payments for indirect contributors. Government is seeking a refund of premia but expects insurance to remain enforced. This is against Sections 77 and 81 of the Amended Insurance Code, which states that “An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against” and “If a peril insured against has existed, and the insurer has been liable for any period, however short, the insured is not entitled to return of premiums, so far as that particular risk is concerned.”
Despite CoA’s comments on reserves accuracy, the DoF created a circular to implement the special provision of the General Appropriations Act calling for collection of government-owned and -controlled corporation (GOCC) funds in excess of reserves. The DoF appointed itself via circular as the calculator of reserve funds, which is a case of conflict of interest. The DoF cannot be both the arbiter of excess reserves and beneficiary of collected funds. The calculation of reserves is the job of the Actuary who ideally should be independent.
PhilHealth has been reporting zero surplus since 2020. According to PhilHealth, “Surplus represents accumulated profit of the Corporation after deducting transfers made to Reserve Fund.” It boggles the mind how PhilHealth can declare excess funds when it has zero surplus, and its capital (members’ equity) has been negative since 2020 when the Philippines adopted International Financial Reporting Standards for Insurance. These standards mandated setting aside reserve for insurance contract liabilities not only for current or two-year obligations but for the whole lifespan of members.
Technically, PhilHealth is already balance sheet insolvent. While it may have the cash to pay current liabilities, it has insufficient assets to fund long-term liabilities. For March 2024, liabilities (P1.252 trillion) were twice the assets (P612 billion), with Equity already negative at P640 billion. If PhilHealth won’t adjust policies or government won’t appropriate funds to plug reserve gaps, insolvency can lead to bankruptcy. Sadly, the false narrative of excess funds encourages proposals that worsen its insolvency, such as the arbitrary expansion of some benefit packages without the review and approval of technical bodies like the Health Technology Assessment Council (HTAC). It is still imperative, however, to expand and implement some important benefits like the Konsulta package or the primary care package.
Government contends that Section 29 (3), Article VI of the 1987 Constitution allows for the transfer of special fund to the general funds “if the purpose for which the special fund was created has been xxx fulfilled.”It adds that Section 11 of the 2024 General Appropriations Act (Budget) allows the reversion of funds to the National Treasury “when they are no longer necessary for the attainment of the purposes for which said funds were established.”The Philippines is still far from the goal of Universal Healthcare, of ensuring “that all Filipinos are guaranteed equitable access to quality and affordable healthcare goods and services, and protected against financial risk.” While mandatory coverage of all Filipinos brings PhilHealth membership coverage close to 100%, actual access and affordability of healthcare remain a challenge. The National Economic and Development Authority’s (NEDA) Sustainable Development Goals report shows that out-of-pocket spending as a percentage of total healthcare expenditures remained high at 39.9% (2020), while the percentage of births attended by a skilled health personnel was still below target at 84.4% (2017).
Every field has its bag of tricks. While some maneuvers may be acceptable, this transfer of PhilHealth funds glaringly violates legal, financial, and moral principles.
A former banker, Enrico P. Villanueva is now a senior lecturer for the University of the Philippines’ Department of Economics. He was a student of the late Carlito Añonuevo, co-founder of Action for Economic Reforms. This piece is written in memory of him.
A MIX of cutting-edge technology for both ICE and electrified options defined the featured vehicles at the 9th Philippine International Motor Show (PIMS). It was a resounding success, drawing thousands of visitors despite the bad weather on opening day. It was also a barometer to ascertain the readiness of the market to certain form factors and even price points vis-à-vis what are offered.
CHERY
Chery Tiggo 2 Pro — PHOTO BY HAZEL NICOLE CARREON
Distributed by United Asia Automotive Group, Inc. (UAAGI), Chery officially launched the all-new Tiggo 2 Pro subcompact crossover and previewed the new Tiggo 5X Pro subcompact SUV that will enter the market early next year with new hybrid variants.
UAAGI also announced that it once again earned an ISO 9001 certification. “This achievement not only demonstrates our commitment for quality but also positions us as a trusted and reliable automotive company committed to continuous improvement towards customer satisfaction,” said UAAGI Managing Director Froilan Dytianquin.
SUZUKI
Suzuki eXV electric concept SUV — PHOTO BY HAZEL NICOLE CARREON
Suzuki Philippines, Inc. (SPH) unveiled the eXV electric concept SUV, whose production model is set to be released next year. The concept vehicle is a flex for SPH, showing the brand’s vision to provide “mobility solutions that not only meet current needs, but also anticipate future demands,” said SPH Automobile Division Director and General Manager Norihide Takei.
FORD
Ford Ranger Raptor 3.0L V6 — PHOTO BY HAZEL NICOLE CARREON
Making its debut at PIMS, Ford Philippines introduced the V6-powered Ranger Raptor that generates 397ps and features Fox 2.5-inch Live Valve internal bypass shock absorbers, front and rear locking differentials, selectable drive modes, and a jetfighter-inspired cabin. Only 300 units of the pickup will be available at launch.
“This product is a testament to our commitment of listening to our customers, especially off-road enthusiasts, who told us they want more power and capability in their Raptor,” Ford Philippines President and Managing Director Mike Breen stated.
ISUZU
Isuzu N-Series EV concept truck — PHOTO BY HAZEL NICOLE CARREON
On display at the Isuzu Philippines Corp. (IPC) booth were latest innovations that “combine top-tier performance with modern solutions, designed to meet both personal and commercial needs,” as IPC President Tetsuya Fujita described. The N-Series EV concept truck is designed for light-duty cargo deliveries across cities and has a range of 115km. The company also displayed the Traviz Concept Cargo Van that is aimed for logistics and last-mile businesses, and has a maximum payload of 1,660kg.
Isuzu also announced at PIMS that the D-Max 4×4 pickup is now equipped with a new differential lock system and Rough Terrain mode. It also showcased the mu-X Executive Edition that gives a luxurious treatment to the reliable SUV.
JETOUR
Jetour X50 — PHOTO BY HAZEL NICOLE CARREON
PIMS first-timer Jetour Auto Philippines, Inc. (JAPI) unveiled two new models — the X50 compact crossover and the T2 Terminator SUV.
Jetour entered the local market last year, introducing a series of vehicles that cater to a wide range of customers. “If you were to compare Jetour Auto Philippines to a car, then we have traveled faster and farther than expected… We guarantee that even more exciting Jetour models will roll out in the foreseeable future,” said JAPI Managing Director Miguelito Jose.
HYUNDAI
Hyundai Santa Fe Hybrid — PHOTO BY HAZEL NICOLE CARREON
Hyundai Motor Philippines, through its new president Jiho Son, declared its goal to “innovate and transform the car ownership experience for customers” by further expanding its presence in the country. Since the company began to handle the distributorship of Hyundai cars in the Philippines in 2022, its dealership network has grown to 34 outlets nationwide.
Hyundai’s booth at PIMS was headlined by the Santa Fe Hybrid and Tucson Hybrid SUVs, joined by the Stargazer X MPV, Staria van, and Elantra N high-performance sedan.
BMW
BMW i5 M60 xDrive Touring — PHOTO BY HAZEL NICOLE CARREON
Distributed by SMC Asia Cars Distributors Corp. (SMCACDC), BMW launched its newest electric vehicle offering: the i5 M60 xDrive Touring. Described by SMCACDC Product Planning Qualification and Training Manager Gabriel Luis Guerrero as a car that “redefines what’s possible in the electric era,” the wagon can deliver up to 601ps and can sprint from a standstill to 100kph in just 3.9 seconds. Available in a Fire Red metallic finish, the i5 Touring is priced at P7.99 million.
MITSUBISHI
Mitsubishi DST Concept SUV — PHOTO BY HAZEL NICOLE CARREON
Mitsubishi Motors Philippines Corp. (MMPC) hosted the world premiere of the DST Concept SUV at PIMS. Set to be rolled out in the ASEAN region in 2025, the production model of the concept vehicle is expected to “awaken the adventurous spirit of drivers and provide excitement for everyone on board,” the company said in a release.
With high ground clearance and five drive modes, the DST Concept is tailored to handle Southeast Asian roads. “The concept was designed with Filipino customers in mind, especially for those who are ready to upgrade to a roomy, three-row SUV,” Mitsubishi Motors Corp. Design Division General Manager Seiji Watanabe said in his speech.
The concept vehicle sports the iconic Mitsubishi Dynamic Shield design concept in front, reflecting its performance and dependability. Its spacious cabin can accommodate up to seven passengers.
SEPTIÈME REBELLE’S fashion outing a night before Halloween was decidedly hit-and-miss. While prominent audience members during the fashion show at the Marriott Ballroom certainly looked the part, we have some reservations about some looks on the runway.
On the younger models, some of the clothes, wearing what Septième Rebelle’s founder Robbie Santos calls “serious fabrics” like brocades and silks, aged them quite a bit. To be fair, the bias might be borne out of the 2020s culture of youth and the persistent pursuit of it. Think silhouettes like lampshade dresses, scalloped edges, pants under embellished dresses, and mid-calf skirts. There were also these very distracting tendrils that made the clothes look quite unfinished (and some, swinging on the runway, looked like strange tails between the legs of the models).
Some dresses, swinging in the opposite direction, looked too young (such as a number with a pink satin skirt). The menswear area did not fare so well either: structured pieces in silk and brocade, worn by men with slicked-back hair, made me think of Miami Vice, and the ability of handsome foreign men to scam older women.
But it wasn’t all bad.
Mr. Santos has a strong tailoring team, so items like blazers, such as one in cream paired over a hot pink shift dress in brocade, looked like they were touched by genius. One must also praise the trimming on certain pieces for evening — they were made with fabrics Mr. Santos picked up on his birthday trip to India last year.
To be fair, perhaps the disconnect comes from the fact that the “serious” clothes were paired with a beach-themed runway. In an interview backstage, Mr. Santos said that the collection was inspired by a picture of an island in the Dominican Republic, where fashion designer Oscar de la Renta has a summer home. “I’ve never been there. I tried to imagine how it would look like, or how it would feel like, or how it would be like to be there,” he said.
He does know what he was doing in presenting slightly mature outfits, pointing to the “serious” fabrics such as silk and brocade: “You expect someone of a certain age to be wearing that.”
Furthermore, the collection is about enjoying life after a certain period: “They like to travel, they like the good life, enjoying their hard-earned money,” he said about potential wearers of the collection. He compares it to his previous collection, about overcoming obstacles and the pursuit of beauty. Now, “It’s all about patience. How you dream of big things, then through patience and some hard work… you’ll be able to (be) where you want to be.” — Joseph L. Garcia
DOMESTIC CLAIMS of nonbank financial firms climbed year on year in the second quarter of the year, the Bangko Sentral ng Pilipinas (BSP) said.
Preliminary data from the BSP’s Other Financial Corporations Survey (OFCS) released late on Thursday showed domestic claims of nonbanks rose by 7.8% to P9.307 trillion in the second quarter from P8.63 trillion in the same period a year ago.
However, it slipped by 0.03% from the P9.309 trillion logged in the previous quarter.
“The said expansion is due mainly to the rise in the sector’s claims on the other sectors, the central government, and the depository corporations,” the BSP said in a statement.
“In particular, the other financial corporations’ claims on the other sectors grew as its holdings of equity shares issued by other nonfinancial corporations and the loans extended to the household sector increased.”
The OFCS is an analytical survey of the assets and liabilities of the OFC sector. It uses standardized report forms as required by the International Monetary Fund.
These include individual financial statements from insurance firms, holding companies, government financial institutions, investment companies, and other financial intermediaries, as well as consolidated financial statements from trust institutions.
BSP data showed OFCs’ claims on other sectors rose by 5.5% annually to P4.6 trillion in the second quarter from P4.36 trillion. Quarter on quarter, it dipped by 0.5% from P4.62 trillion.
Other sectors include the state and local government, public nonfinancial firms, and the private sector.
By component, claims on the other sectors, specifically other nonfinancial firms, comprised the bulk of the OFCs’ domestic claims during the quarter, followed by claims on depository corporations and the central government.
Other nonfinancial corporations refer to private corporations and quasi-corporations whose principal activity is the production of market goods or nonfinancial services.
The BSP also noted the rise in the sector’s claims on the central government, driven by investments in government-issued debt securities.
OFCs’ net claims on the central government increased by 11.1% year on year to P2.339 trillion from P2.1 trillion. However, it inched down by 0.4% from the P2.349 trillion in the previous quarter.
“Moreover, the sector’s claims on the depository corporations expanded as its deposits with the banks increased,” the central bank added.
Claims on depository corporations grew by 9.2% to P2.37 trillion in the second quarter from P2.17 trillion a year ago and went up by 1.3% from P2.34 trillion in the prior quarter.
Meanwhile, net foreign assets of OFCs jumped by 37.2% to P478.194 billion in the quarter ending June from P348.514 billion in the same period a year earlier. It also climbed by 16.9% from the previous quarter.
Claims of OFCs on nonresidents rose by 22.3% year on year to P635.089 billion. Liabilities to nonresidents declined by 8% to P156.896 billion. — Luisa Maria Jacinta C. Jocson
Globe Telecom, Inc. is boosting its fifth-generation (5G) expansion and long-term evolution (LTE) capacity by deploying more energy-efficient radio network systems, the Ayala-led telecommunications company said.
“We are constantly innovating to build a more sustainable and efficient telecom infrastructure across the Philippines,” Globe Service Planning and Engineering Head Joel R. Agustin said in a media release on Sunday.
Globe is advancing its commitment to network solutions and sustainable technologies by rolling out 32T32R massive multiple input, multiple output (MIMO) technology to strengthen its LTE capacity while also expanding its 5G network in about 200 areas to be completed within this year, the company said.
The deployment of this technology would allow the company to provide high-quality LTE and 5G services, Mr. Agustin said, adding that this technology also consumes lower energy.
32T32R Massive MIMO is described as a technology supporting 5G networks. It is a system that balances performance and sustainability with fewer antennas and offers sufficient capacity for LTE and 5G network expansions.
“By continuously upgrading its network infrastructure with sustainability at the forefront, Globe strengthens its position as a leader in both telecom innovation and environmental responsibility,” Globe said.
Globe has been testing technologies to help advance 5G rollout and enhance data and service coverage in the country.
For instance, Globe has announced its partnership with Transcelestial Technologies Pte Ltd. to introduce a laser communication system in the Philippines, which it said would provide high-speed and stable connections in rural areas.
In September, it said its satellite-to-SMS trial in remote areas was progressing after successfully sending text messages using standard phones via low-earth orbit satellite connection.
On Thursday, shares in Globe closed P20, or 0.92% lower, to end at P2,146 apiece. —Ashley Erika O. Jose