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Kim Jones to exit Fendi, maintains Dior Homme role, Fendi says

PARIS — Fendi artistic director Kim Jones is leaving the Italian fashion house but will stay on at Dior Homme, LVMH’s Fendi said in a statement on Friday, the latest in a series of designer shuffles at big name labels as the industry adjusts to a downturn.

A new creative organization for the label will be announced “in due time,” the company said.

One of the industry’s highest profile designers, Jones succeeded Karl Lagerfeld at the label in 2020, designing ready-to-wear and couture collections.

Last week, LVMH named Michel Rider to succeed Hedi Slimane at Celine, and in September named Sarah Burton to take over creative direction at Givenchy. — Reuters

Meralco affiliate to power Pepsi-Cola manufacturing plants

Vantage Energy and Pepsi-Cola Products Philippines, Inc. sign a contract to power five of the latter’s manufacturing facilities in Luzon and Visayas. Seen in the photo are (L-R) PCPPI Chief Manufacturing Officer Youngho Kim, PCPPI President and Chief Executive Officer Phyo Phyu Noe, PCPPI Chairman Oscar S. Reyes, Vantage Energy Solutions and Management, Inc. President Ernesto M. Cabral, and Vantage Energy Solutions and Management, Inc. Account Officer Ian Dale Ramos.

VANTAGE Energy Solutions and Management, Inc., the affiliate retail electricity supplier of power distributor Manila Electric Co. (Meralco), has forged a partnership with Pepsi-Cola Products Philippines, Inc. (PCPPI) to supply power to the latter’s manufacturing facilities.

Vantage Energy will provide electricity to PCPPI’s five manufacturing plants in Luzon and Visayas, the company said in a media release over the weekend.

“This collaboration extends past the framework of our contract. Together with PCPPI, we are committed to driving innovation and advancing sustainable practices that enrich the communities we serve,” Vantage Energy President Ernesto M. Cabral said.

Vantage Energy is the first affiliate retail electricity supplier of Meralco. A member of the retail supply sector since 2017, it has been servicing contestable customers nationwide not just with competitive supply but also with customized energy solutions.

A retail electricity supplier is an entity allowed to manage the supply requirements of qualified end-users or contestable customers.

Meanwhile, PCPPI is the exclusive manufacturer of PepsiCo beverages in the Philippines and a global leader in the convenient foods and beverages industry.

PCPPI President and Chief Executive Officer Phyo Phyu Noe said that the company’s partnership with Vantage Energy will enable “future-proofed and greener operations for the food and beverage giant’s manufacturing plants.”

“This strategic engagement with Vantage Energy is part of PCPPI’s transformation. We are committed to ensuring energy efficiency across our locations, as this brings value to our overall operations and to the communities we serve,” Mr. Noe said.

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

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

Treasury bill, bond rates may continue to climb

BW FILE PHOTO

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could rise to track the upward correction seen in secondary market yields and despite expectations that the Bangko Sentral ng Pilipinas (BSP) will cut interest rates further on Wednesday.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion in 91- and 182-day papers and P7 billion in 364-day debt.

On Tuesday, the government will offer P15 billion in reissued 10-year T-bonds with a remaining life of six years and nine months.

“The upcoming Treasury bill average auction yields would again correct higher after most of the comparable short-term PHP BVAL (Bloomberg Valuation Service) yields were mostly higher by 0.11-0.15 basis point (bp),” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The seven-year T-bond average auction yield would be similar to the comparable PHP BVAL yield,” Mr. Ricafort added.

Secondary market rates were mostly higher last week as slower-than-expected September inflation drove expectations of further cuts by the BSP and as strong US data led markets to reprice their Federal Reserve rate bets, he said.

A trader added that the reissued 10-year bonds could fetch yields ranging from 5.6% to 5.7%, with demand for the small offer size possibly affecting rates as the paper is currently illiquid.

At the secondary market on Friday, the 91-day T-bill went down by 7.22 bps week on week to end at 5.0431%, based on PHP BVAL Reference Rates data as of Oct. 11 published on the Philippine Dealing System’s website.

Meanwhile, the 182-, and 364-day T-bills saw their yields rise by 15.42 bps and 10.8 bps week on week to 5.4469% and 5.6166%, respectively

For its part, the 10-year bond’s yield went down by 2.59 bps week on week to 5.7317% on Friday, while the seven-year paper, the tenor closest to the remaining life of the T-bonds, saw its rate rise by 2.02 bps to 5.6874%.

Philippine headline inflation slowed to 1.9% year on year in September from 3.3% in August and 6.1% a year ago.

This was below the central bank’s 2%-2.8% forecast for the month and the 2.5% median estimate yielded in a BusinessWorld poll of 15 analysts.

It was also the slowest in over four years or since the 1.6% in May 2020.

Inflation averaged 3.4% in the first nine months, matching the central bank’s full-year forecast.

Slower September inflation could give the BSP confidence to cut benchmark rates further, analysts said.

A BusinessWorld poll conducted last week showed that 16 out of the 19 analysts surveyed expect the Monetary Board to reduce rates by 25 bps at its policy review on Wednesday (Oct. 16). 

This would bring the target reverse repurchase (RRP) rate to 6% from the current 6.25%.

On the other hand, two analysts expect the central bank to cut by 50 bps this week, while one analyst said the BSP may keep rates unchanged.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board could slash benchmark interest rates by 50 bps more this year via two 25-bp cuts at its last two meetings for the year.

The Philippine central bank began its easing cycle in August, cutting its policy rate for the first time in nearly four years.

Meanwhile, traders kept bets steady for a roughly 88% probability the Fed would cut rates by 25 bps at its November meeting, and a 12% chance it will leave rates unchanged, according to CME’s FedWatch tool, Reuters reported.

Last week, the BTr raised P20 billion as planned from the T-bills it auctioned off as total bids reached P38.5 billion, nearly twice as much as the amount on offer.

Broken down, the Treasury borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P12.22 billion. The average rate of the three-month paper rose by 21.8 bps week on week to 5.414%, with bids ranging from 5.2% to 5.7%.

The government also made a full P6.5-billion award of the 183-day securities, with bids reaching P12.42 billion. The average rate of the six-month T-bill stood at 5.474%, up by 46.9 bps, with accepted yields at 5.244% to 5.749%

Lastly, the Treasury raised P7 billion as planned via the 364-day debt papers as demand totaled P13.86 billion. The average rate of the one-year debt went up by 5.3 bps to 5.54, with accepted rates ranging from 5.4% to 5.64%.

Meanwhile, the reissued 10-year bonds on offer on Tuesday were last auctioned off on Nov. 9, 2021, where the BTr raised P35 billion as planned at an average rate of 5.13%, above the 4% coupon.

The government plans to raise P145 billion from the domestic market in October, or P100 billion via T-bills and P45 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — Aaron Michael C. Sy with Reuters

Let’s work hand in hand to prevent drunk driving and save lives on Philippine roads

RANDOM breath testing is implemented throughout Australia, where it has significantly reduced drink driving and fatal road crashes. — WHO/PASSMORE

Drinking and driving don’t mix. Every day, an average of over 10 people die in the Philippines due to road crashes, according to the Global Burden of Disease Study published by the Institute for Health Metrics and Evaluation. About three of these deaths are attributable to alcohol as a risk factor.

This is unacceptable. It’s high time the government and we Filipinos worked together to prevent drunk driving and save lives on our country’s roads.

‘HAPPY HOURS’ PUT INNOCENTS IN HARM’S WAY
The Move As One Coalition calls on the government to increase the public’s awareness of how alcohol consumption negatively impacts safety and health. The Coalition joins the Sin Tax Coalition in urging President Ferdinand Marcos, Jr. to designate September as “Alcohol Harms Awareness Month.”

“Even at low blood-alcohol levels, drivers experience problems with concentration, coordination, and identification of risks in the road environment,” says the World Health Organization (WHO).

Yet many drivers and motorcyclists fail to realize that every drop of alcohol they consume puts them and innocent parties, such as children and pedestrians, in harm’s way on the road. Every drop of alcohol they consume affects their friends and families, too. Their stories are heartbreaking.

Last December, a male driver under the influence of alcohol plowed into a group of people standing on a sidewalk after attending a Christmas night mass. He injured five children — three of them critically, with injuries including head trauma and a fractured leg. One of the children was left in a coma.

In February 2022, Manuel Ognes, Jr., a member of the Philippine Air Force, went to a batch party with three colleagues. Ognes drove the car that they were riding. The vehicle smashed into concrete barriers lining the EDSA Busway, burst into flames, and burned all his companions to death.

Ognes was the only survivor. A breathalyzer test found that he was driving under the influence of alcohol.

Tony (not his real name) may have survived a violent road crash; but it shattered his life and the lives of his family. One night after drinking with his buddies, while riding his motorcycle, Tony crashed into a car. The impact severely damaged his spine and caused instant and permanent paralysis in his arms and legs. Today, Tony can move only his head. Since he is single, Tony depends on the kindness of family members for his round-the-clock care.

STRONG ENFORCEMENT DETERS DRUNK DRIVING
The Move As One Coalition calls on the government to invest in stronger enforcement of Republic Act (RA) 10586, known as the “Anti-Drunk and Drugged Driving Act of 2013.” Regular and sustained enforcement can ensure that drivers stop drinking and driving.

However, our law enforcers struggle to implement RA 10586. As revealed during a Senate hearing last August, their only tool are the useless breathalyzers procured in 2017 by the Land Transportation Office.

The government must invest in enough calibrated breathalyzers. Law enforcers need to test many drivers to successfully deter people from drunk driving. The ideal proportion is at least one in 10 drivers every year, according to the World report on road traffic injury prevention. The dearth of breathalyzers makes it impossible to achieve such a scale in the Philippines; 7.8 million drivers’ licenses were processed in the country in 2023 alone.

The government must also look into why there are too few trained law enforcers. The enforcers do a thankless job, working late hours and are on shaky ground because they lack breathalyzers. They have reason to be worried that the motorists they apprehend may harm or sue them.

The Move As One Coalition recommends that RA 10586 be revised to allow random breath testing (RBT) and make it a serious offense for anyone to refuse a breathalyzer test. RBT would enable law enforcers to do roadside checks of randomly selected drivers.

RBT is not allowed under the current law, RA 10586. The law states that enforcers must have “probable cause” — a traffic violation, such as lane straddling or speeding — before they can stop motorists and do sobriety and breath tests.

RBT is worthy of consideration because it is a cost-effective measure. According to a WHO report, in New South Wales, Australia, the estimated cost-benefit ratio of random breath testing ranged from 1:1 to 1:56. RBT has saved lives in countries such as Australia, Finland, Ireland, and New Zealand.

We Filipinos must all do our share to prevent deaths and injuries due to drunk driving. Let’s educate ourselves on how alcohol consumption increases everyone’s risk of being involved in a road crash. And let’s catch up with the fact that there is no health benefit to alcohol consumption.

Working hand in hand with the government will contribute to the goal of reducing the number of road traffic deaths by 35% in 2028, a goal of the Philippine Road Safety Action Plan 2023-2028.

 

Dinna Louise C. Dayao (dinnadayao@gmail.com) is a communication consultant for the Move As One Coalition (https://www.moveasoneph.org/), which advocates for safer, more humane, and more inclusive public transportation in the Philippines. Dayao is an independent journalist and Pulitzer Center grantee whose work has focused mainly on road safety. She completed the Global Road Safety Leadership Course, organized by Johns Hopkins International Injury Research Unit, Global Road Safety Partnership, and Bloomberg Initiative for Global Road Safety, in 2017.

Meat imports up 11.06% by volume in August

REUTERS

MEAT IMPORTS increased by 11.06% year on year by volume in the eight months to August, driven by beef, pork, and chicken, the Bureau of Animal Industry (BAI) reported.

The BAI said meat shipments rose to 907.77 million kilograms from 817.35 million a year earlier. Meat imports in August grew 17.8% to 135.57 million kilos.

“The August data is showing arrivals catching up and ample supply is becoming available for the coming (holiday) season,” Meat Importers and Traders Association President Emeritus Jesus C. Cham said in a Viber message.

Shipments of pork rose 10.95% to 450.36 million kilos during the eight months, accounting for about 49.6% of all meat imports during the period.

Last week Agriculture Secretary Francisco P. Tiu Laurel, Jr. said pork imports may rise this year due to the continued threat of African Swine Fever (ASF) on the hog industry

“Because of the ASF, a lot of hogs are dying. It signals also to businessmen that there may be a shortage; Christmas is also nearing,” he told reporters on the sidelines of a Senate hearing last week.

Shipments of chicken totaled 302.03 million kilos in the eight months to August. Shipments rose 4.32% and accounted for 33.32% of meat imports.

Mr. Laurel said that chicken farmers have started importing more layers, a trend he described as “temporary.”

Imports of beef increased 36.41% during the period to 125.02 million kilos. Shipments made up 13.8% of all meat imports.

Beef from Brazil amounted to 48.57 million kilos, followed by Australia (34.26 million kilos), and Ireland (10.6 million kilos). — Adrian H. Halili

Q&A: ‘The next three years are big years for new products’

SAIC Motor Philippines President Felix Jiang at the MG Gallery on Quezon Avenue — PHOTO BY KAP MACEDA AGUILA

A quick chat with SAIC Motor Philippines President Felix Jiang

Interview by Kap Maceda Aguila

THE ALWAYS-AFFABLE Shanghai Automotive Industry Corp. (SAIC) Motor Philippines President Felix Jiang was on hand to send off the first batch of media and content creators for the very first ride-and-drive event of MG since the company took the reins of the distributorship.

Amid the surfeit of China-headquartered marques, MG is selling the most cars here — good for ninth place among Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) member brands. Just last August, it sold 821 units, up by 10.6% over the 742 vehicles it moved in July. YTD, a total of 5,496 MG cars have been sold — representing 1.8% of the CAMPI total.

“Velocity” exclusively talks to Mr. Jiang after he addressed the participants at the MG Gallery on Quezon Avenue.

VELOCITY: Per the latest CAMPI-TMA (Truck Manufacturers Association) sales report, MG in the Philippines is the ninth-leading auto brand in terms of sales. It’s the leading Chinese marque at the moment. Why do you think that is?

FELIX JIANG: First is that I think all the MG partnerships or dealerships are really focused on MG. They’re really invested in, and are taking care of, the brand — and with passion. This makes us different from the other brands.

Secondly, for the whole MG brand or our own employees and network, we take care of our customers very much. We think MG’s success or future is really based on our existing and potential customers, so we really take care of their concerns, (listen) to their suggestions, and strive to meet their expectations. This not only makes us different, but allows us to grow as fast as we expected.

We spoke with one of your dealers who said that with the establishment of SAIC Motor Philippines, MG here became focused on, as you mentioned, after-sales service, and the fulfillment rate is at 97%. Is that something you really prioritized?

Like I said, the customer is always the most important to the brand. Ours is not a short-term business, but a long-term one. No matter how many of our cars are on the road, our customers all become part of the MG family; and we want to take care of them like family members. If they are satisfied, we are satisfied — and we will succeed. This is the main logic of the company.

How are you looking at growing your portfolio? The bigger players, which we assume you want to catch up to, feature a full range of vehicles. Is that something in MG’s plans as well?

Actually, globally for MG, we call 2024 to 2026 big years for new products. There will be a lot of global models coming out — with a common European standard for all of them. These will be sold everywhere, including South America, Australia, Middle East, Europe — everywhere, including the Philippines. So, in the next three years we will definitely be reviewing our plans based on key (segments) of the Philippine market — including big SUVs and potentially light commercial vehicles.

Spain’s top fashion retailers to launch trial to collect clothes waste in 2025

MADRID — Spain’s largest fashion companies will start collecting discarded clothes from April next year as part of a voluntary pilot scheme to manage textile waste that anticipates EU regulations expected to come into force in 2026.

Zara owner Inditex, H&M, Decathlon, Ikea, and Primark are among 10 brands that will participate in a trial that will separate textiles and shoes from other waste collection so they can be reused or recycled, according to organizers of the project, dubbed Re-viste.

Spain is awaiting final approval of new EU regulations that will require member states to separate textiles from other waste before it issues rules to fashion companies, which will meet the cost of managing the textile waste, Marta Gomez, director of quality and environmental evaluation at the ministry of energy transition, told fashion leaders at an event in Madrid.

The EU regulations won’t come into force before 2026 as authorities will give companies at least a year to adapt, government officials and fashion industry sources said.

“The regulations show us the way, but we have decided not to wait to comply with the legal requirements,” said Andres Fernandez, president of Re-viste and head of sustainability at retailer Mango, which is also part of the trial.

The rules will mean that companies that sell more clothes and shoes are likely to have to pay more for managing the waste.

In Spain, just 12% of used clothes are collected separately and 88% end up in landfill, according to official data. Each resident in Spain discards 20 kilos of clothes per year compared to an average of seven kilos in Europe, authorities say.

During the year-long trial, Re-viste plans to set up dozens of containers in churches, stores, shopping centers, and streets to collect the waste in bags and take it to plants for sorting.

Once the legislation comes into force, fashion companies estimate that Spain will need one textile waste container for every 1,200 residents. — Reuters

Metro Pacific Health expands portfolio with Diliman Doctors Hospital

METRO PACIFIC Health invests in Diliman Doctors Hospital.

METRO Pacific Health Corp. (MPH), the healthcare arm of the Pangilinan-led Metro Pacific Investment Corp., has acquired a controlling stake in Diliman Doctors Hospital, Inc. (DDHI).

“DDHI is MPH’s third investment transaction this year, and its 26th hospital investment in the country, bringing the group’s total in-patient capacity to more than 4,300 beds,” MPH said in a statement on Thursday last week.

Opened in 2018, DDHI has a built-up capacity of 165 beds, situated on nearly 5,000 square meters (sq.m.) of land fronting Commonwealth Avenue, with over 16,000 sq.m. allocated for surface parking and future expansion.

The hospital has more than 500 medical practitioners serving residential subdivisions. This includes Ayala Heights, Tierra Pura, Xavierville, Loyola Grand Villas, Capitol Hills, Capitol Homes, and Filinvest Homes, among others.

“However, we also came to the humble realization that the capital and operational expertise needed to fully actualize our grand vision may well be beyond our personal capabilities,” Lani G. Ancheta, president and lead founder of DDHI, said.

She said amid unprecedented safety, clinical, and cash flow challenges during the COVID-19 years, the company “never doubted DDHI’s potential.”

Ms. Ancheta added that the firm recognized the need for a strong institutional partner, and “there was no better choice for that than the clear industry leader that is Metro Pacific Health.”

“We have full trust in the MPH leadership to deftly steer the organization onwards to realize the hospital’s full potential,” she said.

Makati Medical Center, Asian Hospital and Medical Center, Cardinal Santos Medical Center, Manila Doctors Hospital, and Marikina Valley Medical Center in Metro Manila are among MPH’s premier hospital names in its portfolio.

In addition to these are Calamba Medical Center in Southern Luzon, Riverside Medical Center (Bacolod), Davao Doctors Hospital, and St. Elizabeth Hospital in General Santos.

“MPH already has transformative plans in place for DDHI, geared to introduce clinical, operational, and financial efficiencies for better patient experience and health outcomes,” the company said. — Aubrey Rose A. Inosante

AMLC warns public on swindling activities involving sales of land

THE ANTI-MONEY Laundering Council (AMLC) is warning the public against swindling activities involving sales of land that are using its name to collect fees from potential buyers.

“As consistently reiterated by the AMLC, there is absolutely no fee for the online registration of covered persons (CPs) and for the issuance of certificates of registration and that registration with the AMLC is only for CPs, which landowners are not,” it said in an advisory on its website.

“There is no requirement for landowners, or for whatever contracts related to their properties, to be registered with the AMLC. The AMLC warns the public not to be fooled by the words and promises of these swindlers.”

The agency said that the public can report swindling incidents to the AMLC through their e-mail.

The AMLC said these swindlers are falsely engaging in real estate business and “buy parcels of land from innocent landowners or offer them alleged real estate investment opportunities.”

“The swindlers tell landowners that they need to register individually with the AMLC, as a condition to receive the payments for their lands or to be able to join as real estate investors,” it said.

It noted cases where swindlers would register victims with the AMLC and charge a fee of up to P50,000.

“The swindlers make it appear that they have close connection with an official of the AMLC who facilitates their transactions,” it said.

There have been some cases where swindlers also demand payments for documentary stamp tax (DST) and “purchase agreements.”

“They demand more fees from landowners who, although they may have already paid so much to the swindlers but are not getting anything from the latter, may continue believing upon the swindlers’ words and would still pay all their additional demands. The victims may only finally realize the deception after falling deep into it.” — Luisa Maria Jacinta C. Jocson

Natural disasters know no borders — EU and ASEAN countries joining forces against climate disasters

PHILIPPINE STAR/ MIGUEL DE GUZMAN

BOTH the Philippines and Europe know tragically the impact that natural disasters can have. Just last month the devastating typhoon Enteng that struck the Philippines caused great damage. A trail of destruction was left across Vietnam, Laos, Myanmar, Thailand, and Cambodia. The European Union (EU), as a leading global humanitarian donor, stepped in to help. We released over €2 million in emergency funding to support the victims.

While people in Southeast Asia were coping with the impact of Enteng, more than eight thousand kilometers away, storm Boris was lashing central and eastern Europe. Nearly a dozen European countries were affected.

These are clear examples that extreme weather events show a distressing trend: disasters are becoming more frequent and more intense everywhere across the world. Climate change is a global threat.

The Asia-Pacific Ministerial Conference on Disaster Risk Reduction in Manila this week is very timely. Climate-induced disasters know no borders. That is why we need to step up our international collaboration too, for the benefit of our respective citizens.

For its part, since 2020, the EU has invested nearly €87 million for disaster preparedness in Asia. We have also, since 1996, allocated over €162 million for humanitarian aid and disaster preparedness in your country. This year, as the EU and Philippines celebrate the 60th anniversary of our diplomatic relationship, we will continue to strengthen our partnership. In particular on disaster management.

Building on this experience, we want to reinforce the cooperation of EU Response Coordination Centre (ERCC) — which is the engine behind European disaster response coordination — with similar disaster management bodies across the world, such as ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management (AHA).

And this is why, during my visit to Indonesia, I will endorse a new agreement with the AHA center, the equivalent of our ERCC in Europe. The agreement will allow us to strengthen our respective capacities to respond to disasters and to exchange knowledge and good practices.

ASEAN’s countries have a long experience in disaster response to share, and I am convinced this will provide a great opportunity to learn from each other.

 

Janez Lenarčič is the EU commissioner for Crisis Management.

PHL rice import forecast raised to 4.9 MMT in 2025

REUTERS

THE US Department of Agriculture (USDA) has raised its Philippine rice import forecast to 4.9 million metric tons (MMT) for 2025.

In the Grain: World Markets and Trade Report issued Oct. 11, the USDA’s new forecast represents a 300,000 MMT from the September estimate.

The projection for next year is also higher than the 4.7 MMT forecast for 2024.

The USDA said the new import estimate was spurred by the smaller harvests expected for next year.

The USDA downgraded its Philippine domestic rice production estimate to 12.3 MMT in milled rice equivalent for 2025. This was lower than the 12.7 MMT issued last September.

Last year palay or unmilled rice production was  20.06 MMT, equivalent to about 13 MMT in milled rice.

The Department of Agriculture (DA) is projecting palay production at 20.1 MMT this year.

Palay production is estimated to have declined 11.4% year on year to 3.36 MMT during the third quarter, according to the Philippine Statistics Authority (PSA).

Asked to comment, former Agriculture Secretary William D. Dar said rice imports will offset the negative effects on rice production by the effects El Niño and La Niña, and strong typhoons.

El Niño caused drought and dry spells throughout the first half of the year affecting local agricultural production.  The government weather service, known as the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), declared El Niño to have ended in June.

PAGASA also estimates a 71% chance of La Niña forming between September and November, likely persisting until the first quarter.

La Niña weather event is expected to increase the likelihood of tropical cyclones and flooding.

“Both El Niño and La Niña including strong typhoons and the flooding have significant impact on rice production in 2024… you will have more rice imports to mitigate the potential shortfall,” Mr. Dar said via Viber.

Rice imports amounted to 3.29 MMT as of Oct. 3, the Bureau of Plant Industry reported.

In June, President Ferdinand R. Marcos, Jr. signed Executive Order (EO) No. 62 which lowered the tariff on imported rice to 15% from 35% until 2028. This was meant to tame rice prices and plug gaps in domestic production.

Fermin D. Adriano, a former Agriculture undersecretary said via Viber that imports have been spurred by weather-related crop damage.

“DA has not revealed the harvest decline this year, but we expected it,” he added.

Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said the main driver for higher rice imports was the lower tariff regime imposed by EO 62.

“Three months since the effectiveness of EO 62; rice prices are still high, the profits of importers/traders increased even more due to the reduced tariff, so it will remain the biggest driver in the deluge of rice imports,” Mr. Cainglet said via Viber.

The Philippines imports about 20% of its rice requirement due inadequate domestic production, but high rice prices have led the government to ease the way for imports.

The DA has said rice prices may decline staring mid-October, with the full impact of EO 62 expected to manifest by January.

According to DA Price monitors in Metro Manila, a kilogram of imported well-milled rice commanded prices of between P45 and P55 as of Oct. 10 dropping from P49 to P55 per kilo on Sept. 10.

Regular-milled rice fetched between P42 and P48 per kilo as of Oct. 10, falling from P49-P50 a month prior.

Meanwhile, the USDA said global rice imports are expected to increase next year due to India’s lifting of its the ban on non-basmati white rice exports. India is the world’s largest exporter of white rice.

“Global imports are forecast to rise with increases in several African and Asian markets following India’s trade policy changes, likely creating more available global supplies and lower prices,” the USDA said. — Adrian H. Halili

‘We desire to leave the smallest footprint possible’

Mini Asia Head Daren Ching presents the principles behind the brand.

Mini Asia Head Daren Ching talks electrification, and staying true to the brand

Interview by Kap Maceda Aguila

VELOCITY: Why bring in the electric Minis now? What do you see in the market?

DAREN CHING: We see that the Philippines has a big Mini fanbase, and we want to focus on that by bringing in what we call at the BMW Group the power of choice with the new generation. We’re offering them a choice between international combustion and electric. But we think the future is a little bit more electric. It will not be totally electric yet, but we’re heading in that direction.

In the Philippines, (we’re seeing) government incentives as well, a little bit. EV (adoption) is definitely growing in the market. It’s a natural progression not just in the Philippines but throughout the whole of Southeast Asia and Asia, broadly. Especially in the Philippines, we need to be represented as Mini, as the future of Mini is headed to a selected direction. So, we don’t just bring in the combustion engines. We’ve been waiting for this for a long time anyway. Countryman, Cooper, the previous models were getting long in the tooth, eight years old. Now is the time.

How does the company preserve the distinct Mini flavor in the electrified variants?

We still maintain that go-kart feel. A Mini will always be a Mini, especially when we’re talking about the Cooper. If you look at the design of the car, it does not stray far from its roots: Four wheels pushed to the corners, round headlights, round central instrument display. A lot of people say that the size has grown, but people have grown as well. I don’t expect people nowadays to fit in the classic Mini anymore. It has expanded with the times, grown slightly larger, but still smaller than a lot of cars out there. It will always be a Mini, and drive like a go-kart on the streets.

There are a lot of tactile changes in the new Mini through the use of surprising, unconventional materials. Can you talk about these in the context of the brand’s sustainability goals?

This is the biggest differentiating point in the new generation of Minis: the sustainability aspect. At Mini, we desire to leave the smallest footprint possible, not just in terms of manufacturing or CO2 emissions, but also in the way that we build our cars. If you notice, the new-generation Mini contains zero leather. What you think is leather is not actually leather but Vescin (a synthetic leather material). We’ve replaced parts that were traditionally wrapped in leather like the dashboard and steering wheel with Vescin. Meanwhile, the dashboard is made up of 90% recycled polyester from ocean waste. That’s one way we reflect sustainability in our cars.

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