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Vehicle sales growth slows in September

Vehicles clog the southbound lane of EDSA in Cubao, Quezon City, Aug. 27, 2024. — PHILIPPINE STAR /MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

PHILIPPINE AUTOMOTIVE sales growth slowed to 2.4% in September, amid flat sales of commercial vehicles, according to an industry report.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales rose to 39,542 units in September from 38,628 units in the same month last year.

The 2.4% sales growth in September was the slowest since March when vehicle sales inched up by 1.6%.

Auto Sales (September 2024)Month on month, car sales rose by 1% from the 39,155 units sold in August. 

“The increase can be attributed to new stock arrivals and improved promotions from the brands,” CAMPI President Rommel R. Gutierrez said in a statement on Wednesday.

“There were no new model releases last September, possibly due to the brands’ preparation for the upcoming Philippine International Motor Show in October where we expect new launches will be made,” he added.

September sales were driven by a 9.2% increase in passenger car sales to 10,438 units from 9,558 units sold a year ago. Month on month, passenger car sales went up by 9.54%.

On the other hand, sales of commercial vehicles inched up by 0.1% to 29,104 units in September from 29,070 a year ago. Commercial vehicles accounted for 73.6% of the industry’s total sales.

Month on month, sales of commercial vehicles declined by 1.8%.

Among commercial vehicles, Asian utility vehicle (AUV) sales surged by 43.8% year on year to 7,123 units, while sales of medium trucks grew by 23.4% to 401.

However, sales of light commercial vehicles fell 9.2% to 20,964 units, while sales of light and heavy trucks fell by 11% and 11.1% to 544 and 72, respectively.

For the first nine months of 2024, vehicle sales went up by 9.4% to 344,307 units from 314,843 units a year ago, CAMPI-TMA data showed.

Passenger car sales jumped by 13.4% to 90,765 units in the January-to-September period, while commercial vehicle sales increased by 8% to 253,542 units.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the annual sales growth rate in September was slower than the double-digit growth rates seen a few months ago.

“This may be partly attributed to higher normalizing base or denominator effects and still relatively higher interest rates in recent months,” he said in a Viber message.

“But the year-to-date vehicle sales growth is still faster than the economic growth, which is a bright spot for the economy,” he added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan attributed the slower growth to seasonal demand.

“Seasonal trends played a role, with sales dipping after August’s promotions, leading to declines in segments like light commercial vehicles and heavy-duty trucks,” said Mr. Limlingan in a Viber message.

“Additionally, the strong sales momentum in August likely pulled forward some demand, resulting in more subdued growth in September,” he added.

Mr. Limlingan said higher interest rates and elevated inflation could have also weighed on consumers’ decisions when making big-ticket purchases like cars.

In the first nine months, Toyota Motor Philippines Corp. remained the market leader with sales of 159,088 units, up by 10.3% from 144,232 units a year ago. Toyota sales accounted for 46.2% of the industry’s total.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.18%, as sales jumped by 13.7% to 66,028 units in the first nine months.

In third spot was Ford Motor Co. Phils., Inc. which saw sales drop by 7.2% to 21,438 units. This accounted for 6.23% of the industry.

Rounding out the top five were Nissan Philippines, Inc., whose sales went up by 1.4% to 20,322, while Suzuki Phils., Inc. posted an 11.1% rise in sales to 14,990 units.

CAMPI set a sales target of 500,000 this year. If realized, this will be the industry’s highest annual sales to date and will represent a 16.3% increase from last year’s 429,807 units sold.

PHL needs 8% GDP growth to bring down poverty rate

Informal settlers go about their daily routines in Manila, April 23. The government aims to reduce poverty incidence to 9% by 2028, or at the end of President Ferdinand R. Marcos, Jr.’s administration. — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINE ECONOMY needs to grow by an average of 8% annually to achieve its goal of bringing down poverty incidence to single digits by 2028, an economist said.

“I am confident that the 6-7% growth can be maintained over the next four to five years,” University of Asia and the Pacific Center for Research and Communication Director for Research Bernardo M. Villegas said at a briefing on Thursday.

“But that is not enough to bring us to a single-digit poverty incidence by 2028. We have to grow at least 8% GDP (gross domestic product) wise,” he said.

The government aims to reduce poverty incidence to 9% by 2028, or at the end of President Ferdinand R. Marcos, Jr.’s administration.

Economic managers have set a 6-7% GDP growth target this year and 6.5-7.5% next year. It also expects 6.5-8% GDP growth until 2028.

“I don’t expect that to immediately happen this year, for example. So, we should build that up… you will have President [Marcos] laying the foundation for the next president to be able to actually start growing at 8%,” Mr. Villegas said.

The Philippines’ poverty rate fell to 15.5% in 2023 from 18.1% in 2021.

Mr. Villegas noted that the Philippines has one of the highest poverty rates among Association of Southeast Asian Nations (ASEAN) countries.

Laos (32.5%) and Indonesia (18.1%) had the highest poverty incidence in ASEAN, according to the World Bank’s Poverty and Inequality Platform. Vietnam (4.2%), Thailand (0.6%) Malaysia (0.1%), have recorded a single-digit poverty rate last year.

To support growth, the agricultural sector must grow by around 3-4% every year, Mr. Villegas said.

Agricultural production, which contributes about a tenth to GDP, declined by 3.3% in the second quarter, the biggest drop since the 3.4% contraction in the first quarter of 2021.

Mr. Villegas also said the government must address the low investment-to-GDP ratio.

“Ours is in the low 21-22% and the main reason is we have the lowest savings rate in this region. We save only 9% of our GDP,” he said.

In contrast, East Asian countries have an investment-to-GDP ratio ranging between 25% and 40%, Mr. Villegas said.

The government must also address corruption to bolster growth, he said.

“Corruption leads to leakage of P800 billion a year. If we can reduce that, then that will add to the 8% growth.”

The Philippines ranked 115th out of 180 countries in the 2023 Corruption Perceptions Index, up one spot from 116th in 2022.

MANUFACTURING
Meanwhile, Mr. Villegas said the Luzon Economic Corridor will help expand the country’s manufacturing sector.

“If the Americans and Japanese succeed in building the Luzon Economic corridor, our semiconductor and chips factories will grow double-digit,” he said.

The Luzon Economic Corridor is being undertaken through a trilateral agreement among the Philippines, United States, and Japan. It aims to strengthen connectivity in major areas in Luzon, namely, Metro Manila, Batangas, Subic, and Clark.

Growth in the manufacturing sector can be bolstered by the production of semiconductors and chips, Mr. Villegas said.

“The so-called Industrial Revolution 4.0, artificial intelligence, robotics, internet of things, data, will not be possible without chips. So, everything now will depend on those chips, and if we become a superpower in chips, that is manufacturing.”

PHL’s economic freedom improves

A Philippine flag is seen at the Emilio Aguinaldo National Shrine in Kawit, Cavite, June 12. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES’ RANKING jumped nine spots in a global index on economic freedom due to higher scores in trade freedom and property rights, according to the Canada-based think tank Fraser Institute.

The country placed 59th out of 165 economies in the conservative think tank’s Economic Freedom of the World index which uses 2022 data. Its ranking improved from 68th place in the previous index which used 2021 data.

This was the Philippines’ highest placement since it ranked 57th in 2016.

Philippines’ Economic Freedom improved in 2022

The country received a score of 7.01 out of 10, a tad higher than the revised 6.93 in 2021. Its latest score was higher than the global average of 6.56.

Among Asia-Pacific jurisdictions, the Philippines lagged behind Hong Kong (8.58), Singapore (8.55), New Zealand (8.39), Australia (7.98), Japan (7.90), Taiwan (7.71), Malaysia (7.56), and South Korea (7.52).

However, the Philippines was ahead of Brunei Darussalam (6.99), Indonesia (6.96), Thailand (6.94), Mongolia (6.86), Cambodia (6.85), Vietnam (6.23), China (6.14), Papua New Guinea (6.02), Fiji (5.99), Laos (5.86), Timor-Leste (5.77), and Myanmar (4.54).

The Philippines had its highest score in the sound money category with 9.04, ranking 11th out of the 164 other countries. But it was down from 9.51 in 2021.

The country — yet again — performed worst in legal system and property rights with a score of 4.51, slightly higher than 2021’s 4.49.

The Philippine score in size of government declined to 7.83 from 7.91 in 2021. Among subcategories, it scored 8.83 in government investment and 6.91 in government consumption.

“The lesson from this is clear: a small fiscal size of government is insufficient to ensure prosperity,” Fraser Institute said. “The other areas of economic freedom — the rule of law and property rights, sound money, trade openness, and limited regulations — are also required.”

Manila’s score in the freedom to trade internationally category rose to 7.14 from 6.53 in 2021.

Its score in regulation slipped to 6.51 from 6.62 in 2021. Among sub-categories, the Philippines had its lowest score at 4.59 in business regulation and the highest score at 8.27 in credit market.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said fiscal consolidation remains a key problem for the government’s economic policy.

It leads to “too much intervention in the markets,” he said in a Facebook Messenger chat.

Finance Secretary Ralph G. Recto in September said the Marcos government was on track with its medium-term fiscal consolidation program even as its debt remained at a record high due to pandemic-related loans.

“There is limited participation from the private sector as much of the economic growth is due to government spending,” Mr. Lanzona said. “Instead of the government spending directly, they should create the environment that allows greater public sector participation.”

Hong Kong topped the economic freedom index, followed by Singapore, Switzerland, New Zealand, the United States, Denmark, Ireland, Canada, Australia, and Luxembourg.

At the bottom of the list was Venezuela, followed by Zimbabwe, Sudan, Syria, Algeria, Myanmar, Argentina, Iran, Libya and Yemen.

The think tank said Ukraine (-0.94) and Moldova (-0.63) — the two nations that have either been invaded (Ukraine) or threatened militarily — saw the largest declines in ratings between 2021 and 2022.

The rating for Russia was also down (-0.30). “It may be obvious to point out, but war is very bad for economic freedom,” the think tank said.

Another important development in the index was the declining condition of Hong Kong, whose rating fell “precipitously” to 8.58 in 2022 from 9.05 in 2018.

“This is nearly half a standard deviation decline in just four years,” it said. “Thus, we continue to sound the alarm bell about signs of declining economic — and other — freedoms in Hong Kong.”

Sonny A. Africa, executive director of IBON Foundation, said the conservative index’s metrics “come from a narrow prioritization” of market freedoms and property rights, which “don’t align with a broader and more inclusive understanding of economic well-being and development.”

“This is why the so-called economic freedom scores are so inconsistent with the economic realities faced by the majority of Filipinos who remain poor and marginalized,” he said via Messenger chat.

Mr. Africa said the government’s fiscal consolidation was “evident in the distribution of the country’s declining score in size of government.”

“The relatively high score in government investment reflects the persistent emphasis on corporate-friendly infrastructure and pork barrel hard projects, while the lower government consumption reflects insufficient social services and safety nets,” he said.

“The increase in the score in the freedom to trade internationally category merely reflects continued liberalization that has worked so much against domestic agricultural and industrial development for decades,” he added.

Mr. Africa said the country’s nine-notch improvement in the index was “inconsistent” with important social indicators on a trajectory of decline.

The number of self-rated poor Filipino families has increased to 16.3 million or 59% of total families in September, while the number of households without savings rose to 19.2 million or 71% of total households in the third quarter, Mr. Africa explained, citing data from the Social Weather Stations and the central bank.

While the Philippines was ahead of Indonesia, Thailand, Vietnam, Laos, and Myanmar in the index, it has “much worse food insecurity than all these,” he said.

Mr. Africa cited a United Nations Food and Agriculture Organization report indicating that the Philippines has 44.1% of its total population suffering moderate or severe food insecurity, “which is more than the food insecurity of Indonesia (4.9%), Thailand (7.2%), Vietnam (10.8%), Laos (36.3%), and Myanmar (32%).”

“The Fraser Institute’s index focuses narrowly on market-oriented indicators such as trade freedom, property rights, and business regulation which are presumed to improve the economy,” Mr. Africa said. “In practice, these measures favor a deregulated economy that benefits large corporations and wealthy individuals at the expense of broader social development outcomes.”

In the report, the Fraser Institute noted that high-income industrial economies generally rank quite high for legal system and property rights, sound money, and freedom to trade internationally.

Their ratings were lower, however, for the size of government and regulation.

PHL hotels target 120,463 more rooms by 2028

DISCOVERY HOSPITALITY PROPERTY MANAGEMENT

THE PHILIPPINE hotel industry hopes to bridge the 120,463-room gap by 2028 to meet the 456,055-room demand.

The room supply currently stands at 335,592, according to the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028, launched by the Department of Tourism (DoT) and the Philippine Hotel Owners Association, Inc. (PHOA) on Wednesday.

The roadmap aims to boost competitiveness, promote sustainable development, and support the expansion of the hotel sector.

“Our government is laying the groundwork to establish green lanes for strategic investments aimed at fast-tracking critical infrastructure projects, including those in tourism,” Tourism Secretary Ma. Esperanza Christina G. Frasco said during the launch.

Green lanes in government offices expedite permits and licenses for critical investment projects.

This is “coupled with an improved PPP (Public-Private-Partnership) law, as well as an expanded CREATE (Corporate Recovery and Tax Incentives for Enterprises) law and public-private partnerships to enhance airport facilities and improve transport services,” Ms. Frasco added.

The CREATE MORE bill seeks to impose a 20% corporate income tax on local and foreign corporations under the enhanced deduction income tax regime.

Ms. Frasco added that the DoT continues to work with local government units to stress the necessity of creating a business-friendly environment for investments.

“We’re hopeful that we will be able to address this gap by way of the PHISAP, on one hand, which is a framework for hotel infrastructure development, as well as all the supporting legislation and policies of the Marcos administration that encourage investment, as well as public-private partnerships,” she said.

Leechiu Property Consultants, Inc. (LPC) said in its third-quarter report that the Philippines is expected to surpass 2023’s foreign arrival numbers of 5.5 million but fall short of the 7.7 million target for this year.

LPC said the foreign tourist arrivals reached 4.4 million in the first three quarters of 2024, up from four million in the same period last year.

According to the 2024 Philippine Accommodation Pipeline Report by PHOA and LPC, private sector hotel developers have committed to 158 new accommodation projects, totaling 40,084 rooms and generating P250 billion in investments. — Aubrey Rose A. Inosante

19 energy projects endorsed for grid impact study

THE Department of Energy (DoE) endorsed 19 energy projects to the National Grid Corp. of the Philippines (NGCP) in September for a system impact study (SIS).

“In September 2024, the DoE issued 19 SIS endorsements to the NGCP, which are composed of three amendments and 16 new applications,” the department said in a document posted on its website.

Such studies are conducted to determine the adequacy and capability of the grid to accommodate the new connection.

The power projects have a combined potential capacity of more than 3,600 megawatts (MW).

Data from the DoE showed that it has issued SIS endorsements for 17 renewable energy projects, including nine solar power projects and eight wind power projects.

Among the large-scale solar energy projects are North Luzon Green and Sustainable Energy, Inc.’s 478.165-megawatt-peak (MWp) Burgos Dasol Solar Power Project in Pangasinan and Tuy Solar Power Corp.’s 425.302-MWp Magahis Solar Power Plant Project in Batangas.

Others that received SIS endorsements include Cleanergy 2, Inc.’s 209.560-MWp Casilagan Solar Power Project in Nueva Ecija, Exzal Renewable Energy Corp.’s 100-MWp Villahermosa-Danlog Solar Power Project in Sorsogon, and Linglingay Power Corp.’s 97.175-MWp Linglingay Solar Power Project in Isabela.

The DoE also endorsed Freya Renewables, Inc.’s 79.962-MWp Isabel Solar Power Project in Leyte, Kanji Solar, Inc.’s 70.013-MWp Tumauini Solar Power Project in Isabela, and Sta. Ignacia Tarlac Solar Power Corp.’s 10-MWp solar power project and its Phase 2 with 10-MWp capacity, both in Tarlac.

For wind power, among the notable projects is Vortex Offshore Wind Corp.’s 1,000-MW Mindoro Offshore Wind Power Project in Antique, as well as wpd Philippines Onshore, Inc.’s 400-MW Ilocos Onshore Wind Power Project in Ilocos Norte, Ilocos Sur, and Abra, and the 150-MW Antique Onshore Wind Power Project in Aklan and Antique.

Clearances were also issued for The Blue Circle Philippines Mindoro Corp.’s 112-MW Bulalacao Two Wind Power Project in Oriental Mindoro and First Gen Visayas Energy, Inc.’s 100-MW Kauswagan Wind Power Project in Lanao del Norte.

The list also includes MC Project Solutions, Inc.’s 100-MW Kandungaw Wind Power Project and 100-MW Alegria Wind Power Project in Cebu, as well as Citicore Wind Energy Corp.’s 50-MW Camarines Sur CW Wind Power Project in Camarines Sur.

Aside from renewable energy projects, the Energy department also issued clearances to undertake SIS for Manila Integrated Environment Corp.’s 100-MW Manila Waste-to-Energy Facility Project in Tondo, Manila and Energija Sur 2, Inc.’s 40-megawatt-hour Enerhiya Sur II Battery Energy Storage Project in Laguna.

For the nine months to September, the DoE has endorsed a total of 148 power projects, of which four are energy storage systems and one waste-to-energy project.

The DoE also issued certificates of endorsement (CoEs) for 12 power projects to the Energy Regulatory Commission last month, bringing them closer to obtaining operating permits.

Of the total endorsements, five are conventional power projects.

At the same time, the DoE issued endorsements to four renewable energy projects and three energy storage systems.

A CoE is a prerequisite for generation facilities to be issued a certificate of compliance. — Sheldeen Joy Talavera

Firms should optimize investments before tapping new tech for growth

FREEPIK

PHILIPPINE BUSINESSES should optimize their existing investments for efficiency and determine if they need to tap emerging technologies like artificial intelligence (AI) to boost their operations, a US-based software company said.

“Don’t always go looking for the shiny new toy. You have to work with the huge investments that you have. You can streamline them. You can make them more efficient,” Seth Ravin, chief executive officer (CEO) of Rimini Street, told BusinessWorld in a video interview on Oct. 4.

Rimini Street began operating in the Philippines in 2020. It offers third-party enterprise software support services to help companies reduce costs and improve the performance of their existing systems.

Mr. Ravin said most companies need to focus on existing system optimization to boost their operations rather than simply adopting the latest technologies.

“If I would say, 60 to 70% on existing structures and optimization and about 30% on new technology and innovation,” he said. “Sometimes, they’ve got a solution looking for a problem instead of a problem looking for a solution. The IT (information technology) department gets scared. They don’t want to tell the board they’re wrong.”

He noted how some boards in recent years wanted their firms to be cloud-first companies without knowing what it entailed, resulting in losses.

“Now, companies have so much cloud storage and so many different cloud providers and it’s costing them a fortune. They’re losing money. [Some companies] are now into cloud rationalization or even repatriation coming back from the cloud because [they] went too far,” Mr. Ravin said.

Similarly, firms are now overexcited about AI as the new toy, “but then when you look at it, you find out it’s very weak,” he said. “It’s not enterprise AI.”

“The reality is, to implement this new technology, whether it’s AI, big data, analytics, or even productivity and automation — which are great at reducing labor costs — the problem is everyone is trying to make investments from their daily operating budget as the board of directors does not generally approve additional money for the transformation costs,” Mr. Ravin said.

This leads to the companies being stuck as they have to pay their ongoing bills while having to fund their tech transformation, he said.

“We get to come in and find ways to find within their existing budgets. If we can reduce certain items, we can free up that capital to fund these other projects,” he said.

Philippine firms have tighter budgets than those in other countries, but this does not necessarily mean they need to scrimp on innovation, Mr. Ravin said.

He noted how one of Rimini’s local clients, Philippine Airlines, was able to maximize its investments as over 50% of its savings on annual maintenance costs were reinvested in expanded support, IT modernization, and business intelligence initiatives. — Aubrey Rose A. Inosante

PHL 7-Eleven plans 500 new stores with P6-B investment

PHILSTAR FILE PHOTO

LISTED Philippine Seven Corp. (PSC) is allotting P5 billion to P6 billion to open 500 new stores across the country next year, a company official said.

“For 2025, we are aiming to at least open 500 new stores all over the Philippines,” PSC Finance and Accounting Services Division Head Lawrence M. De Leon said during a media briefing in Pasay City on Tuesday.

“The capital expenditure for that is P5 billion to P6 billion,” he added.

PSC is the exclusive licensee of the 7-Eleven convenience store brand in the Philippines.

For this year, Mr. De Leon said the company is on track to open 450 branches, which will bring its store network to 4,100 stores.

“We are very encouraged by the sales performance of the new stores. We are aiming to open 450 stores this year. We’re already more than halfway there as we have already opened 270 stores by the end of the first three quarters. We expect to end the year with 4,100 stores all over the Philippines,” Mr. De Leon said.

“We have a lot of stores in the pipeline, so we are confident that we can achieve those 450 new stores target. This year, most of the stores are in residential clusters since the pandemic changed consumer behavior,” he added.

PSC President and Chief Executive Officer Jose Victor P. Paterno said in the same media briefing that the company is focused on opening new branches outside of Metro Manila.

“It’s basically outside (Metro Manila). The demand is outside. It’s also where the competition is. In Visayas and Mindanao, we’re the only ones with the logistics network,” Mr. Paterno said.

“(Visayas and Mindanao) are a quarter of our total stores. We’re scrambling to build fast enough, looking for contracts, sending people out, and hiring more people,” he added.

Mr. Paterno said PSC tapped an Australian-based artificial intelligence company to identify the products to be sold across 7-Eleven branches.

“People are shopping closer to home since they are already working from home. When they shop close to home, they buy different things than when they’re shopping from work. That’s how we stock the stores, by carrying only what the customers want in that location. We’re able to identify what’s needed,” he said.

On Tuesday, PSC opened its 4,000th 7-Eleven branch in Newport District, Pasay City.

PSC saw a 14% increase in its first-half net income to P1.76 billion from P1.55 billion a year ago. System-wide sales rose 18.6% to P45.9 billion.

On Wednesday, PSC shares fell by 0.41% or 30 centavos to P72 apiece. — Revin Mikhael D. Ochave

Rossini celebrates its 1st anniversary

STEAK AND POTATO PIZZA

The Italian restaurant serves classics with a modern twist

ROSSINI at S Maison, Pasay City marks its first anniversary following its successful relaunch in October 2023. Known for Italian classics with a contemporary twist, Rossini continues to delight diners with its refreshed look and elevated menu.

“I like that we were able to transform the brand of Rossini from the past to now. It’s so much different. I just feel it’s so much fresher, it’s younger, and the food is still authentic Italian, but with a twist,” Mia Teng, the chief operating officer of Rossini, said during the anniversary celebration on Monday.

Rossini continues to evolve with modern sophistication, all while preserving the rich essence of authentic Italian flavors, she added.

During its anniversary celebration, Rossini brought together members of the media and other guests as it unveiled a selection of its newest favorites alongside popular classics.

TRYING IT OUT
Rossini kicked off the meal with its Fall Mix Salad, a mélange of textures and fall flavors. Featuring roasted pumpkin, cranberries, pepitas, and assorted greens tossed in a vinaigrette dressing, the salad surprised with the roasted pumpkin’s unexpected depth, giving the dish a vibrant burst of flavor. Then came the classic Minestrone, a delicate vegetable soup infused with fresh herbs and enriched with a tomato sauce. Its light, nuanced flavor profile served as the perfect prelude to what was to come.

From its holiday menu, Rossini showcased its signature Napoletana-style pizzas. Ms. Teng told BusinessWorld that all their pizzas are hand-rolled and made from scratch, ensuring their high quality.

The Napoletana-style crust — thick and chewy around the edges, known as cornicione in Italian — serves as a versatile canvas, allowing the traditional and Rossini’s modern twist to come together. “As simple as Napoletana-style pizzas, and you can come up with most insane things,” Ms. Teng said.

The crowd favorite among the pizzas served was Steak and Potato Pizza. The tenderloin steak — cooked to a perfect medium-rare — paired beautifully with rich salsa rosso and parmesan cream. It was topped with crispy potato crackers which added texture and crunch, elevating every bite.

Another intriguing addition to the menu is the Sausage and Pumpkin Cream Pizza, featuring a sauce of velvety pumpkin puree and topped with rosemary, Italian sausage, and fresh arugula. The pumpkin puree offers a subtle nuance and compliments the robust flavors of the Italian sausage.

This October, the restaurant’s anniversary special is Seafood Pizza paired with a refreshing Valdostan Salad for P999.

Also a crowd favorite was the Salmon in Squid Ink Risotto, which features a refined pairing of creamy, briny risotto and roasted salmon, enhanced by a burst of cherry tomato confit. Despite its bold appearance, the squid ink lent a delicate creaminess, balanced by the fresh acidity of the tomatoes.

A fitting finale to the feast was the indulgent Chocolate Torta, a rich flourless chocolate cake, and Rossini Tiramisu, featuring airy mascarpone cream with notes of espresso and cocoa. Both desserts offer a delicate sweetness for a perfectly balanced finish.

As the feast drew to a close, Ms. Teng spoke with BusinessWorld about her happiness regarding Rossini’s recent milestone. She noted that over the past year, they have successfully captured emerging markets, broadening their audience, and enhanced their culinary offerings, with hopes of delighting even more diners in the future. — Edg Adrian Eva

Metro Pacific Health, mWell ink referral partnership

Officials of Metro Pacific Health Corp. and mWell signed a strategic referral partnership on Oct. 12.

METRO PACIFIC Health Corp. (MPH) has teamed up with health and wellness application mWell to allow users to book and access its network of hospitals nationwide via the digital platform.

MPH has forged a referral partnership with mWell to help provide health services to the app’s users by referring them to its network of 26 hospitals, it said in a statement.

“mWell users can directly book services for themselves through the app and access services at Metro Pacific Health (MPH) hospitals,” Chaye Cabal-Revilla, president and chief executive officer at mWell, said.

mWell doctors and HealthHub partners can refer patients to MPH for ongoing care, making the entire healthcare process seamless and integrated within the app, she said.

The signing ceremony held on Oct. 12 was attended by key executives from both companies.

MPH said the ceremony highlighted how mWell’s digital solutions can enhance patient experience, offering convenience in accessing medical care.

Facilities that are part of MPH’s network are Asian Hospital and Medical Center, Makati Medical Center, Cardinal Santos Medical Center, Commonwealth Hospital and Medical Center, De Los Santos Medical Center, Our Lady of Lourdes Hospital, Riverside Medical Center, Inc. and Davao Doctors Hospital, among others.

MPH is the healthcare arm of Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC), while mWell is its health technology platform.

MPIC is one of three key Philippine units of First Pacific, 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. — A.R.A. Inosante

Primex unit cancels deal for planned Pullman hotel in San Juan

EXTERIOR RENDERING of Primex Tower, Manila — PRESS.ACCOR.COM

LISTED Primex Corp. said its subsidiary has canceled the hotel management and consultancy services agreements for a planned Pullman hotel in San Juan City.

“Primex Realty Corp., a wholly owned subsidiary of Primex Corp., and S & P, Inc. have mutually agreed to disengage from their hotel management agreement and hotel consultancy services agreement for its proposed Pullman Manila at Primex Tower due to differences in design preference,” Primex Corp. said in a regulatory filing on Wednesday.

“Primex Realty is now exploring possible tie-ups with other world-renowned hotel operators,” it added.

In December 2020, Primex Realty tapped international hotel group Accor SA to manage the planned 200-room Pullman Manila at Primex Tower in the Greenhills district of San Juan.

The hotel would be at the topmost ten floors of the 50-storey Primex Tower, which also has retail and office spaces on the lower floors.

The Pullman brand is the high-end international brand of the Accor group.

Pullman Manila will feature two restaurants, a rooftop bar, a fitness center, a swimming pool, and event facilities. It was scheduled for completion last year.

Some of Primex Corp.’s other completed projects include the high-end residential developments Goldendale Village in Malabon and The Richdale in Antipolo City.

On Wednesday, Primex Corp. shares were unchanged at P2.17 apiece. — Revin Mikhael D. Ochave

India is finally becoming a clean energy superpower

FREEPIK

IT’S BETTER to under-promise and over-deliver. India’s clean power industry is finally making good on that dictum.

For several years, the country has fallen well short of the rosy visions proclaimed by its leaders. India should become the first major economy to industrialize without carbonizing, to paraphrase its Group of 20 sherpa Amitabh Kant. Prime Minister Narendra Modi promised to connect 500 gigawatts (GW) of clean energy by 2030, equivalent to all the generators in France, Germany, and Italy put together.

The picture on the ground has, until recently, been very different. A previous aspiration to hit 175 GW by 2022 came in 40% below target, and had to be fudged to avoid embarrassment. Ill-advised tariffs on solar panels, combined with contractual and political support for fossil fuels and constant changes to the rules of renewable power auctions, made matters worse.

Amid this policy chaos, wind and solar installations fell 19% last year, to 13 GW. That’s less than a third the level that would be needed for the country to be on track for Modi’s 2030 plan. Coal, the dirtiest fuel and the most readily available alternative to renewables in India, took up the slack: Usage by power plants jumped by 8.8% in the latest fiscal year through March. Plenty of analysts (including me) despaired about the prospects for a reversal.

The logjam, however, appears to be breaking. Solar panels and wind turbines have been springing up in 2024 like seedlings after the breaking of a drought. In the eight months through August, 18.8 GW of new renewable generators were connected, more than in the whole of 2023. Over the full year, that figure will increase to around 34 GW, the International Energy Agency (IEA) forecast last week, before nearly doubling to 62 GW in 2030.

Growth rates are set to overtake China in the second half of the decade and become the most rapid of any major nation, the IEA wrote.

The trend looks set to extend into next year as well. Tenders for renewable projects, a useful leading indicator, showed 70 GW of announcements and 33 GW of awards in the first half of the year alone, according to S&P Global Commodity Insights. Projects already in train would bring the total to 430 GW, renewable energy minister Pralhad Joshi told parliament in August. All but 76 GW of the total is either operating or under construction, sharply reducing the risk this is the same old case of over-promising and under-delivering.

Solar module manufacturers, encouraged by those counterproductive tariffs, have been busy building out factories. By 2026, the country will be able to assembly 172 GW of panels per year, according to Mercom India Research, a renewables consultancy. That’s sufficient to meet its own projected needs well into the 2040s, even on a pathway that takes the world to zero emissions.

While the Reserve Bank of India kept rates on hold last week, an easing of its monetary policy stance opens the way to cuts by the end of the year, which should also help: Finance costs have been one of the biggest factors holding back further renewable development in recent years.

The implications of all this could be profound. Rich countries and China each account for roughly a third of the world’s greenhouse pollution, but emissions from the former group have been declining for nearly two decades and China is likely to hit its peak this year. India, as the world’s most populous and fastest-growing major economy, is likely to be the biggest factor pushing up the world’s carbon footprint over the decades ahead.

That might be excusable in moral terms: India has barely contributed to the global climate problem so far, so can argue that countries who’ve been spewing CO2 for centuries should cut it some slack. But such rationalizations don’t offer much comfort to farmers in Uttar Pradesh hospitalized or killed by blistering summer heatwaves, or software developers in Bengaluru having to depend on water trucks because climate change is drying up the aquifers needed to keep India’s cities watered. What they need are signs that the upward trajectory of emissions is finally heading downwards.

We might be on the brink of that future. BloombergNEF estimates that an Indian power sector that was on track to install 506 GW of clean energy by the start of 2030 would see its own carbon footprint begin to decline as soon as 2026, putting the world as a whole on track to net zero emissions. Globally, we’re already installing enough solar and buying enough electric vehicles to avoid catastrophic climate change. Hitting Modi’s 500 GW target would be one more piece of the puzzle to avert that outcome.

Since coal furnaces kicked off Britain’s industrial revolution, it’s been an accepted fact that economic growth can only be bought at the cost of environmental damage. With the UK’s last coal-fired power station closing last month, that argument has been looking threadbare — and if India can now get rich without belching carbon, it may be dealt a decisive blow. For other emerging economies hoping to follow India’s development path, that would be a powerful lesson. The centuries-old nexus between pollution and wealth is finally being broken.

BLOOMBERG OPINION

Three decades of Happy Living

HAPPY LIVING GM Julian Gagliardi

THE CULMINATION of Happy Living’s 30th anniversary came on June 15 with their biggest event to date, a wine festival entitled “A Continuing Journey Across the World’s Most Famous Wine Regions and Wineries.”

This milestone event was held at The Tent at Enderun, McKinley Hill, Taguig and featured all of Happy Living’s portfolio that boasts of over 150 brands of wines and other libation drinks from over 50 suppliers around the world.

ABOUT HAPPY LIVING
Happy Living Philippines Corp. started out as a small family business importing premium quality Californian wines in 1994. Some of their earliest brands included Beringer, Chateau Montelena, Freeman Abbey, and Joseph Phelps — all of which remain in their portfolio today.

In the mid-1990s, Happy Living helped introduced the finest Californian wines to the country — before them, locally available California wines were just cheap, low-quality jug wines that included the still best-selling Carlo Rossi, plus others like Paul Masson, Almaden, Franzia and the old Inglenook generic wines.

Today, the Happy Living portfolio goes way beyond just Californian wines and includes wines from Australia, France and Chile among others.

In 2018, the company changed to new ownership and management, led by Managing Director Griffith Go and General Manager Julian Gagliardi.

MEET THE GM
I met the affable, yet confident Frenchman, Julian Gagliardi, way back in 2013 when he was still working for The Straits Wine Co. in their main Singapore hub. At that time, I was doing regional wine consultancy for an iconic Spanish winery from Rioja. The importer of this Rioja brand in Singapore at that time was The Straits Wine Co.

A few years later, I found out that Julian was assigned to their Philippine branch in Makati. He was then just in his late 20s, but even back then I knew he was someone to reckon with in the local wine industry as he was quite visible in the trade. And Julian surely did become someone to reckon with as he moved to and became the GM of the Happy Living “reboot” of 2018.

To say that Julian has lived a colorful life thus far is an understatement.

He started out as a young French boxer who traveled to Mexico to improve his boxing skills. He enrolled at the famed Marquez Boxing Gym where the legendary Marquez boxing brothers — three-division world champion Juan Manuel Marquez, best remembered as the biggest nemesis of our people’s champ Manny Pacquiao, and his younger brother two-division world champion Rafael Marquez — came from.

But this trip of over 9,000 kilometers from his homeland France to Mexico had two purposes as Julian was then concurrently studying for a masteral degree in International Management with Focus on Latin America at the Universidad Nacional Autonoma de Mexico or UNAM — so he was hitting two birds with one stone. Part of completing his UNAM masteral degree was a 10-month internship in Brazil, so Julian was once again on the move.

After this stint in Brazil, Julian had a change of heart about boxing and now wanted to be involved in the food and wine business. At that point he was already fluent in Spanish and Portuguese, on top of his mother tongue French, but he spoke no English at all.

He happened to have a cousin who lived in Singapore, so he set his sights on his new adventure here in Southeast Asia. Within three days upon arrival in Singapore, he found a job with The Straits Wine Co., where he was assigned to their back end, mainly in purchasing. Because Julian is French and can also communicate in Spanish and Portuguese, and since many of The Straits suppliers were French and Spanish speakers, it was not difficult for Julian to adapt immediately to his new role.

And as quickly as he picked up Spanish and Portuguese, Julian’s English also improved, and luckily without the Singlish accent.

Julian was dealing with over 300 wineries from around the world as a purchaser — a great start on his path to the wine industry.

As can be seen from the rapid increase in their portfolio, Julian has made his mark all over the present direction of Happy Living. In his last 10 years in the Philippines, Julian has slowly carved his name in the local wine industry.

On-premise accounts distribution in hotels and restaurants — simply known as on-premise accounts — is where Happy Living has thrived and this is where they get over 50% of their revenue. But as every wine importer in this industry knows, on-premise can be one of toughest channels to manage. It is a “dog eat dog” world in this channel, as most wine importers are not big enough to invest in retail listing fees, with the running rate being at P5,000/SKU per store, so you will find every wine importer competing in this channel.

Also, during the height of the COVID pandemic, several on-premise establishments closed down, and many bad debts were incurred among wine suppliers.

Yet for Julian and Happy Living, there were opportunities to be made, and they seized the moment when, towards the last quarter of 2020, many on-premise accounts re-opened and a lot of them were looking for wine suppliers who could service their needs.

I remembered that during those days — including from my personal experience — the wine industry was in shambles as even within Metro Manila, the different local city governments had different protocol procedures on social distancing, curfews, and even alcohol selling that affected the overall wine business. But as Julian proudly stated, Happy Living was able to fill in the gaps left by other wine suppliers, as they were able to service these on-premise accounts, especially big hotels that badly needed wines to resume their F&B operations.

Being strategically located in Makati also helped their cause, as Makati City was one of the first local governments to open up after the COVID scare started fading.

MOVING FORWARD
When asked what is in store for Happy Living, Julian just mentioned that they live by three principles: 1.) To pay tribute to their past legacy, respecting what the original owners had started; 2.) Embrace the current and adapt to the challenges at present; and, 3.) Look and prepare for the future.

These may be general statements, but Julian emphatically mentioned service. Service translates to giving clients the right products, at the right prices, at the right time.

Choosing Enderun, a hospitality school, as the venue for their 30th anniversary event, was also part of the Happy Living credo — to educate the new breed of hospitality practitioners. Surely, these practitioners will eventually be managing on-premise accounts, whether as owners or employees, and Happy Living will be there more than happy to service these accounts.

RECOMMENDED WINES
When I asked Julian what he feels are the best wines in their portfolio to recommend, he quickly replied, in true French fashion: “Bordeaux second or third labels from Grand Cru classified Chateaux, like the Aspirant de Beychevelle (the 3rd label of 4th growth Chateau Beychevelle in St-Julien region), and Labastide Dauzac (the 2nd label of 5th growth Chateau Dauzac in Margaux region). Bordeaux is the only region in the world that has wines that are of great quality and age very well. No other region in the world can have these types of quality and age-ability at the mid P2,000.00 range.” Amen to that, Julian.

To get to know more about Happy Living, visit their website at https://www.happylivingph.com/.

 

Sherwin A. Lao is the first Filipino wine writer member of both the Bordeaux-based Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux (FIJEV) and the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail the author at wineprotege@gmail.com, or check his wine training website https://thewinetrainingcamp.wordpress.com/services/.

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