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Aboitiz group keen on Davao airport

BW FILE PHOTO

THE ABOITIZ group has expressed interest in managing and operating Davao International Airport, signaling its continued expansion in the airport management sector.

“We are looking into it, depending on the terms. It depends on how it comes out,” Aboitiz Equity Ventures, Inc. (AEV) President and Chief Executive Officer Sabin M. Aboitiz said on the sidelines of a Cebu Pacific event last week. AEV is the listed holding company of the Aboitiz group.

This follows the recent success of Aboitiz InfraCapital, Inc., the infrastructure arm of the Aboitiz group, in securing the contract for Laguindingan International Airport in Northern Mindanao.

Mr. Aboitiz said the company is waiting for the government to issue the terms of reference, as it wants the auction for modernizing and operating Davao International Airport to follow a solicited process.

“The government said they decided to do it via solicited (scheme). They are not accepting unsolicited offers now,” Mr. Aboitiz said.

In September, the Department of Transportation (DoTr) said a conglomerate had expressed interest in submitting an unsolicited proposal to manage and operate Davao International Airport.

Transportation Secretary Jaime J. Bautista declined to name the company, explaining that it had not yet submitted its formal proposal.

Mr. Bautista said Aboitiz InfraCapital will sign the concession agreement for the operations and maintenance of Laguindingan Airport within this month, while the company is expected to take over next year.

Further, the DoTr expects to award the contract for the New Bohol-Panglao International Airport within the year, with the Swiss challenge deadline set for Nov. 11.

The Swiss or comparative challenge allows other companies to submit alternative proposals to a project, with the original proponent having the right to match them.

Valued at P4.5 billion through a public–private partnership scheme, this project is expected to serve approximately 3.9 million passengers per year once completed.

The Aboitiz group secured in 2018 the original proponent status for the New Bohol-Panglao International Airport’s operations and maintenance (O&M) under a 25-year concession period.

Asked whether other companies have submitted their proposals for the Bohol airport, Mr. Bautista said that to date, no companies or other parties have expressed their interest.

The Aboitiz group also manages and operates Mactan-Cebu International Airport after finalizing a deal with Megawide Construction Corp. and GMR Airports International B.V., allowing it to acquire shares in GMR-Megawide Cebu Airport Corp., the company behind the Mactan-Cebu International Airport. — Ashley Erika O. Jose

How Lanson Place in Pasay benefits from strategic location

MICHAEL HOBSON

By Aubrey Rose A. Inosante, Reporter

LANSON PLACE Hospitality Management Ltd. (LPHM) is confident in the demand for meetings, incentives, conferences, and exhibitions (MICE) facilities at its newly opened property in Pasay.

“I think our MICE demand is good, and our facilities there are good. It’s a good mixture of local MICE business and regional. Our facilities are heavily utilized,” Michael Hobson, chief executive officer of LPHM, said in an interview with BusinessWorld.

The first Lanson Place in the Philippines opened last April in Pasay, featuring a 390-key hybrid hotel and residences, in partnership with SM Hotels and Conventions Corp. (SMHCC).

Mr. Hobson said the firm works with the SM group to attract MICE events to Pasay and share accommodation demands.

Lanson Place Mall of Asia has a strategic location and benefits from being 15 to 20 minutes away from the airport, Mr. Hobson noted.

With the pandemic having previously dampened international travel due to restrictions and closures, hospitality firms are now trying to bounce back.

The official opening of Lanson Place Mall of Asia was postponed due to the pandemic, causing construction delays from obtaining materials and the availability of workers.

However, Mr. Hobson expressed confidence in the growth of the Lanson Place property in Pasay as it receives local weekend demand from the leisure sector, particularly from families and more.

He said the Filipino hospitality sector remains strong, benefiting from a “natural fun-loving hospitable attitude” and the widespread ability to speak English, which appeals to many overseas visitors.

Mr. Hobson added that “some of the best guest service in the world can be found in the Philippines.”

“Lanson Place is a small hotel company but with key resources spread over just a few properties. We are specialists in extended stay business which has enabled us to perfect the art of getting to know our guests well and creating communities,” he said.

This management style reflects his over 40 years of hospitality experience, starting from hotel and catering school in Sussex in the late 1970s. One of his first jobs was as a sales trainee for the industrial catering division of Grand Metropolitan in the UK.

“I came to Hong Kong from Singapore in 1985. In 1987, I joined Shangri-La Hotel company and worked for the Kuok family when it used to be a private company,” said Mr. Hobson, who is now based in Hong Kong.

He later joined several firms, including Omni Hotels Asia-Pacific, and previously the Mandarin Oriental Hotel Group in 1994.

“It wasn’t until my retirement from Mandarin Oriental that this opportunity to come and run Lanson Place Hotel Management Co. Ltd. emerged and started after literally a three-day break, in January 2019,” he said.

WORKFORCE
Mr. Hobson, a seasoned hotelier, said that the industry is finding it increasingly difficult to recruit individuals who are willing to serve others and pursue a career in hospitality.

“It’s a tough industry. The ability to [engage] customers [for] their feedback, the interaction that one has, the degree that you have to go to in order to create that word of mouth,” he said.

The industry must inspire young people to pursue hospitality careers, as many hoteliers struggle to recruit for positions that were once highly desired.

Mr. Hobson emphasized that hotel general managers must hire the right people and ensure a satisfactory return to the owner by investing in critical areas and controlling costs.

Lanson Place also aims to enhance its sustainability practices by working with partners like NORDAQ for its overseas properties, eliminating single-use plastics, and using refillable glass bottles bottled on-site.

“When you’re doing the contracting with some of these multinationals unless you can demonstrate your sustainability practices, they won’t include you in their programs,” he said, adding that some choose the locations of their conference based on the hotel’s sustainability measures.

Mr. Hobson added that the company is working towards securing a Green Key certificate. The Green Key certificate is a standard in the field of environmental responsibility and sustainable operation within the tourism industry.

This certificate represents a commitment by businesses that their tourism establishments adhere to the strict criteria stipulated by the Foundation for Environmental Education, which promotes sustainable development through environmental education.

Hans Sy of SM Prime Holdings honored with 2024 PRA President’s Award as ‘Retail Development Visionary’

Hans Sy of SM Prime Holdings

The Philippine Retailers Association (PRA) proudly presented Hans Sy, chairman of the executive committee of SM Prime Holdings, with the 2024 PRA President’s Award, honoring him as the “Retail Development Visionary.”

This prestigious award was a highlight of the Outstanding Filipino Retailers (OFR) Awards Night, held last Sept. 25 at Solaire Resort North. The award celebrates individuals who have significantly contributed to the advancement of the Philippine retail industry.

Mr. Sy’s visionary leadership at SM Prime Holdings has played a pivotal role in transforming the retail landscape of the Philippines. Under his guidance, SM Prime has developed 86 malls across the Philippines and eight in China, encompassing an impressive 8,180,379 square meters of gross floor area (GFA) and 5,525,870 square meters of gross leasable area (GLA). These retail developments have become vibrant commercial hubs, hosting 17,138 tenants with long-term lease agreements and 7,239 units with short-term leases, significantly contributing to economic growth and job creation.

“We are delighted to recognize Mr. Hans Sy for his exceptional achievements and his invaluable contributions to the retail industry,” said Bobby Claudio, president of the Philippine Retailers Association. “His visionary leadership, coupled with his dedication to innovation and sustainability, has set a new standard for retail development in the Philippines.”

Mr. Sy’s commitment to innovation, sustainability, and modernization has not only enhanced the retail experience for millions of Filipinos but has also set new industry standards. His efforts have created a remarkable multiplier effect, driving progress across the nation and influencing the broader economy.

Looking ahead, Mr. Sy’s vision of reaching 100 SM malls by 2027 continues to set the bar for retail development in the country. His legacy is one of inspiration and aspiration, marked by a relentless pursuit of excellence that has positively impacted the lives of countless Filipinos.

Over the years, the PRA has recognized 15 retail luminaries with the PRA President’s Award, honoring their extraordinary achievements and invaluable contributions to the industry. Mr. Sy’s recognition in 2024 adds to this legacy of excellence, underscoring his monumental contributions to both the retail sector and the national economy.

As the PRA celebrates this achievement, it reaffirms its commitment to supporting and acknowledging those who, like Mr. Sy, embody the spirit of innovation and leadership that propels the retail industry forward.

Nickel Asia, SSI Group among new Shari’ah-compliant securities

BW FILE PHOTO

SHARI’AH-COMPLIANT securities increased to 56 from 49 after adding eight and removing one following a quarterly review ending Sept. 25, the Philippine Stock Exchange (PSE) said.

The updated list includes APC Group, Inc., Lodestar Investment Holdings Corp., and Marcventures Holdings, Inc.

Also added were Nickel Asia Corp., SSI Group, Inc., and NexGen Energy Corp.

The updated list also saw the inclusion of Metro Alliance Holdings and Equities Corp. “A” and “B.”

Meanwhile, Easycall Communications Philippines, Inc. was removed.

The PSE issues the updated list of Shari’ah-compliant securities every quarter.

The previous list was released on July 5, covering the period ending June 25, 2024.

Shari’ah is the moral and religious code of Islam that covers rules, regulations, teachings, and values governing the lives of Muslims.

The PSE’s quarterly review is conducted by Islamic finance information provider IdealRatings, Inc., which looks at the companies’ adherence to Shari’ah standards in terms of their business activities and financial ratios.

IdealRatings examines listed companies in accordance with Shari’ah standards under the Accounting and Auditing Organization for Islamic Financial Institutions.

Under the business screening, the income of companies derived from activities such as adult entertainment, alcohol, cinema, defense & weapons, financial services, gambling, gold and silver hedging, interest-bearing investments, music, pork, and tobacco must be less than 5%.

In terms of financial ratio screening, a company’s cash or interest-bearing deposits or investments should not exceed 30% of its market capitalization, while its interest-bearing debt should not go beyond 30% of its market capitalization.

“Shari’ah-compliant investment instruments create a mechanism for listed companies to gain access to potential funding from Islamic investors, including those in countries in the Middle East and other countries with high Muslim populations such as Malaysia and Indonesia,” the PSE said. — Revin Mikhael D. Ochave

Weaving the future: Likhang Habi highlights natural dyes in Philippines

ENTRIES in the abaca piña competition

By Giselle P. Kasilag

WEAVING is one of the most ancient traditions common to all civilizations. The history of the world is written in the threads and expressed in the patterns.

While the method may be old, HABI: The Philippine Textile Council is confident that weaving is where our future lies. The process may have remained largely unchanged but many innovations have been developed that are putting the spotlight back on Philippine textiles. Thus, there is much excitement for this year’s Likhang Habi Market Fair, happening at the Glorietta Activity Center from Oct. 18 to 20.

“Our theme this year is ‘Earth to Loom: Celebrating Natural Dyes in the Philippines,’” announced HABI president Mia Villanueva at a press conference. “We try to think of issues and things that affect the Philippine textile industry, and one thing we thought of recently is to put this in the forefront because, usually, what people use is chemical dyes.”

The council is encouraging the use of natural dyes which are more sustainable for the industry and better for the environment. But the risks brought about by deforestation, unbridled land development, and climate change are all infringing on the wealth of plant life used in dying threads and textiles. If unchecked, they threaten the range of colors should certain plants cease to be available to weavers.

The relationship between the weaver, the industry, and the environment could not be more direct. The challenges faced by one are also devastating to the others. Thus, for the industry to thrive, care for the weaver and planet are essential.

Now on its 14th year, the fair features weavers and artisans from all over the country, highlighting the richness and diversity of local textiles. What began in 2009 with 12 booths now boasts of 100 booths with 90 vendors — each one handpicked by the council to ensure the quality, sustainability, and the use of appropriate practices in the industry. Sixty-three are from Luzon, 11 are from the Visayas, and 16 from Mindanao.

“We really vet the people to make sure that it’s authentic,” said Ms. Villanueva. “We really meet with them. A lot of them have been our partners for years and they keep coming back. It’s like a progression. For the new ones, we go on trips. We visit them so that we’ll see their operations. We go to them to start a relationship. They are also invested in that relationship with us. So we can vouch for them.”

Among the most-awaited events of the fair are two competitions: the 7th Lourdes Montinola Piña Weaving Competition and the 3rd Eloisa Hizon-Gomez Abaca Weaving Competition. These two events encourage innovations in terms of methodology, use of materials, and creation of patterns that keep the industry fresh and moving forward. The entries will be on display at the fair.

“The stunning thing about this competition is that they would also revive old techniques of weaving and making textiles which they have stopped doing because nobody wanted it, there was no interest. But with this competition, all of these are starting to come out now so we are able to document it as well. It is very encouraging,” said Adelaida Lim, HABI president emeritus.

She added that the council has also observed a growing interest among the younger generation to continue the craft. It’s not just old ladies who are weaving, she noted. The council offered a special prize for weavers under 30 years old and were surprised with both the volume and quality of entries which now gives them confidence about the future of weaving and textiles in the country.

While the future seems bright, Ms. Villanueva said there is so much still to be done. When asked if there exists a registry of weaves which is essential in protecting the intellectual property of the weavers and their communities, as well as the integrity of the product, she admitted the council does not have one. While there is much documentation of the various communities and their indigenous weaves and patterns, she has not seen a consolidated list that the industry can use as a reference.

For their part, she told BusinessWorld that the council has begun a basic mapping of the different weaves and their origin regions. But this is a rudimentary effort and will have a long way to go before a registry is realized — a project that she hopes the government will undertake to benefit all the stakeholders. For now, the council is doing the best it can to visit and document as many weavers and weaving communities they can reach.

This also puts in focus the role of HABI and the Likhang Habi Market Fair in the development of the industry. The event is not just for shopping or fashion. It is about the preservation of a cultural heritage that has been passed on for centuries and continues to have relevance in the lives of the people.

“When we started, I didn’t know anything,” acknowledged HABI founder and chairman emeritus Maria Isabel Ongpin. “All I knew was that Philippine fabrics were unique, colorful, and varied. And they’re part of our identity as Filipinos and should be preserved. One of the first things that we did was to raise consciousness about not haggling them to the bottom. Don’t make them barat! They are weaves that you cannot do, that are done by artists, so stop this haggling! The second thing is that we learn from our weavers. The weavers also learn from us. The main thing is, let us preserve, develop, and modernize our textiles.”

Indeed, the future or the textile industry appears to be as colorful as the fabrics that they weave. And with the right education, the market is now realizing the value of every thread, every knot, and every interlacing of yarns that make up the fabric of our culture.

Steel plant in Sarangani seen to start production in Q4 2025

PIXABAY

CHINESE steel company Panhua Integrated Steel, Inc. is expected to start production at its $1-billion steel facility in Sarangani Province in the fourth quarter (Q4) of 2025, according to the Alsons group.

Occupying 40 hectares inside the Kamanga Agro-Industrial Ecozone Development Corp. (KAiEDC) — a subsidiary of Alsons Consolidated Resources, Inc. — in Barangay Kamanga, Maasim, Sarangani Province, the steel plant is eyeing a production output of about two million metric tons annually, according to Alsons.

KAiEDC is accessible to key ports, namely, Makar Wharf, GSC International Airport, and GS Fishport Complex. Its key locators are Sarangani Energy Corp. and Panhua Integrated Steel.

“It would bring in a lot of skilled people such as engineers, it would downstream industries, it will ensure quality and reliable construction materials, which we don’t have to import anymore. It will drive competition, wherever there is competition, who wins? It’s the consumers,” Alsons Development and Investment Corp. President and Chief Executive Officer Miguel Rene A. Dominguez told BusinessWorld.

He added that when fully operational, the steel plant is expected to generate P200 million in income for Sarangani.

During its construction phase, the plant will employ about 2,000 workers at the peak of its activities. Currently, the construction is ongoing and is about 41% complete.

The steel plant is expected to create 700 permanent jobs once operational and provide numerous employment and related opportunities through its downstream industries, suppliers, and allied service providers.

Mr. Dominguez said that Alsons recently completed its 15-megawatt run-of-river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani Province.

He also noted that Alsons plans to build solar facilities. — Maya M. Padillo

Renewable energy transition: Are we going in the right direction?

MACROVECTOR-FREEPIK

The Department of Energy (DoE) has recently revised the Philippine Energy Plan (PEP) 2023-2050, outlining key strategies to transition the country toward renewable energy (RE). The plan focuses on four main strategies: accelerating renewable energy development with an emphasis on offshore wind (OSW), developing a smart and green transmission system to support new RE capacity from 2024 to 2040, building port infrastructure to facilitate OSW and other marine-based energy sources, and voluntarily decommissioning or repurposing existing coal-fired power plants (CFPPs). These initiatives aim to meet the country’s growing energy demands while transitioning to a cleaner, more sustainable energy mix.

I developed an economic model to assess whether the PEP is balanced and reasonable given changes in the price of RE and battery storage, and the price of carbon and baseload fossil fuels. The model considers five critical factors: policy support, infrastructure readiness, the price and cost of renewable energy, and the risk and cost of fossil fuels. These variables provide insights into the dynamics of energy transitions and can be applied to other countries seeking to integrate renewable energy into their portfolios. My aim is to eventually create a global Renewable Energy Transition Index.

Policy support for renewable energy in the Philippines is already strong. The DoE has implemented renewable energy auctions, introduced feed-in tariffs (FIT), enabled net metering, and Congress opened up the sector to foreign investments. These policies have created a favorable environment for renewable energy investments by lowering entry barriers, attracting substantial foreign investments, and ensuring predictable returns for investors. Offshore wind, a cornerstone of the PEP, benefits significantly from these policies, as the high costs associated with its development demand strong investor confidence and financial backing. The World Bank estimates that the Philippines has an impressive 178 gigawatts (GW) of technical offshore wind potential, and the PEP aims to capitalize on this. However, the development of offshore wind projects faces a key challenge: infrastructure readiness. The Philippines lacks the necessary port infrastructure and transmission system upgrades to accommodate the scale of renewable energy planned, particularly OSW. Port upgrades and modernized transmission lines, which could represent up to 20-25% of the total cost of offshore wind projects, are critical for success. Without these improvements, delays in integrating new RE capacity into the grid could hinder the country’s ability to meet its renewable energy targets.

Despite the strong policy support, the high cost of renewable energy generation and storage remains a significant obstacle. While the price of renewable energy technologies has been steadily declining globally — solar energy costs have dropped by 89% since 2009, and wind energy by 70% — the cost of energy storage remains prohibitive. As of 2021, large-scale battery storage costs hovered around $137 per kilowatt-hour (kWh), a significant expense that adds to the overall cost of renewable energy systems. Until storage costs decrease, conventional energy sources will still be needed to provide backup power, particularly for managing the intermittency of solar and wind power.

A particular concern for the Philippines is the regressive impact of renewable energy on lower-income households. Renewable energy can be more expensive to develop, and without subsidies, these higher costs could be passed onto poor consumers, especially those who are off-grid. For example, the construction of costly port infrastructure for OSW risks exacerbating economic inequality. As recent data shows, lower-income households in countries with energy poverty can spend between 10-40% of their income on energy, and the cost per kilowatt-hour is significantly higher for them, especially when relying on renewable sources. To avoid burdening low- and middle-income households, the government should treat this infrastructure as a public good, subsidizing the costs through general taxation rather than passing them directly onto consumers.

The cost and risk of fossil fuels add further complexity to the energy transition. Coal currently accounts for approximately 57% of the power generation mix in the Philippines, with most of the coal imported from Indonesia, which supplies the bulk of the country’s coal imports. This heavy reliance on Indonesian coal makes the Philippines vulnerable to price shocks or changes in Indonesia’s export policies. The ongoing geopolitical tensions, particularly in the Middle East and Ukraine, coupled with global decarbonization efforts, have increased the price and uncertainty surrounding fossil fuel supplies, further underscoring the importance of transitioning to indigenous renewable energy sources, like OSW, to enhance the country’s energy security.

The economic model I developed suggests that given current policies, prices of RE, carbon and fossil fuels, the Philippines should be able to reach around 32% renewable energy in its energy mix by 2030. The PEP target is about 35%, which suggests that the plan is largely on track if things go as planned. Achieving the 35% target will depend on timely and effective investments in infrastructure, particularly upgrading ports and the transmission system to handle the increased renewable energy capacity. Moreover, maintaining a stable regulatory environment is essential to avoid additional costs or delays that could arise from new carbon pricing or regulatory burdens.

An additional critical factor in meeting these targets is the implementation of carefully designed hybrid green auction mechanisms. These auctions allow for a mix of renewable technologies, such as solar, wind, and storage, to be bundled together, promoting flexibility and cost efficiency. Hybrid auctions encourage innovation and allow project developers to propose combinations of technologies that can help stabilize the grid and reduce intermittency issues. By integrating diverse technologies, hybrid green auctions can also incentivize investment in underdeveloped areas, support regional development, and improve grid stability. Moreover, this auction model would promote competitive pricing, keeping costs manageable for consumers while contributing to the achievement of the 35% RE target in a timely and economically sustainable manner.

The success of the PEP will also depend on how well the government manages long-term risks. Some of the country’s coal-fired power plants are at least 20 years old, with a capacity of 3.8 GW, and could face the risk of stranded assets as the country shifts toward renewable energy. Moreover, technological advancements in renewable energy and storage could make fossil fuel investments obsolete, adding uncertainty to the future of coal and other conventional energy sources.

In addition to stranded assets, the Philippines faces the risk of fluctuations in fossil fuel supplies, especially due to changes in Indonesia’s coal policy and the escalating war in the Middle East. Any disruptions in coal imports from Indonesia could trigger significant price increases and energy shortages, complicating the country’s energy transition efforts. These risks highlight the importance of diversifying energy sources and reducing reliance on imported fossil fuels.

In conclusion, the Philippine Energy Plan 2023-2050 presents a balanced and reasonable approach to the country’s energy transition. It addresses energy security by promoting the development of indigenous renewable energy sources like offshore wind, while acknowledging the need to modernize infrastructure and reduce reliance on coal and oil. Notably, Bloomberg ranked the Philippines as 4th among developing economies for renewable energy development in 2024, further validating the country’s commitment to a sustainable energy future. However, the success of the plan will depend on timely investments in infrastructure, maintaining a stable regulatory environment, and managing the long-term risks associated with the energy transition. With careful planning and execution, the Philippines can meet its renewable energy targets while ensuring a sustainable and secure energy future.

 

Dr. Eduardo Araral  is an associate professor in Public Policy at the National University of Singapore, a former vice-dean and director at the Lee Kuan Yew School of Public Policy of the National University of Singapore, and a fellow of the Foundation for Economic Freedom.

His name in every bathroom

DAVID KOHLER, Chair and CEO of Kohler Co.

Kohler is in the business of keeping things clean – with style

A COLLEGE professor once told us that all of civilization started with the toilet. By no longer leaving their human waste in the ground, humans moved up a class above animals. By doing so, they liberated themselves from certain diseases: the decreasing mortality rate and the release from the burden of mere survival enabled humans to begin the very important business of building the rest of the world.

David Kohler, chair and CEO of Kohler Co., then runs a company that does not just make toilets — through a line stretching back to the 1800s, it could be argued that the Kohlers are helping to maintain civilization, one flush at a time.

The company is still owned and operated by the family — a release says that Mr. Kohler’s father Herbert Kohler and his aunt Ruth, both deceased, bought out 300 shareholders to consolidate ownership in their branch of the family. The company is headquartered in a town named after the company in Wisconsin, and aside from toilets, they make other bathroom fixtures too — also furniture and tiles. And the family has interests in energy through engines and generators.

On the note about toilets helping build civilization, Mr. Kohler told BusinessWorld, “I think it’s a really good point. The mission of our company is to help people live gracious, healthy, and sustainable lives.”

The company was co-founded in 1873 by Mr. Kohler’s Austrian ancestor John Michael Kohler (Mr. Kohler says that it originally meant “coal hauler” in German) to make farming implements out of metal. In 1883, however, the senior Kohler applied enamel to a water trough for pigs, transforming it into a bathtub and thus creating the company’s first plumbing product. 

Mr. Kohler is in the fourth generation of the family in the business.

“A big part of our business is health and hygiene. But I think where Kohler brings a twist to that is we bring fashion and inspiration and design to what could be a very (commodified) or mundane product line,” he said in an interview with BusinessWorld at the Admiral Hotel on Oct. 1. “We create something out of something that is incredibly important for everyday life.”

Every room in a house tells something about a person: for example, a living room would show off aspirations; a bedroom would show someone’s perception of themselves, and the things that make them comfortable. How then, can a person tell their story through their bathrooms, when their purpose is purely functional?

“Oh no, it’s not!” Mr. Kohler disagrees. “It’s your most intimate space. You spend your mornings there, your evenings there — it’s a very special place.

“Every room tells a story. Our customers really buy our products because of how it makes them feel. They love their home, they want to design an environment that’s right for them. Design is very personal. What creates emotion in you may be not what creates emotion in me. But great design should create emotion. It should make you feel good and pleasant about being in that space,” he said.

“These everyday moments — we live stressful lives, right? And hectic lives. These everyday moments — if we can make these everyday moments special, enjoyable, make you smile — we’ve done our job. We think, in life, finding these everyday special moments is really important.”

Kohler, while offering a range of products at all price points, is known (at least in the Philippines) for appearing in very important bathrooms, such as in hotels and grand houses.

The company also does custom work for very special clients: “We’ve done different gold products for famous people that I can’t name. We’ve had kings of countries that will send our products in advance to the hotel (where) they’re going to be staying, because they want to be surrounded by our products.”

Mr. Kohler discussed another important bathroom: his own. “I really like smart products. I have smart toilets, digital showering — I really like integrated news and music, so in my mirror that I use — I use a Kohler lighted mirror — I have an integrated TV screen in the mirror, because I like to catch up on news in the morning while I’m getting ready… that’s important to me.”

As the title of the story says, Mr. Kohler can find his name in almost every important bathroom in the world. “It’s a great honor. It’s a great responsibility. I really look at what I do as kind of my destiny, my service to our family, our company, and to the world, and trying to make a positive impact on the world in terms of what we do, and leading by example.”

Other companies founded by families in their time have lost both the companies and their names, but step into a bathroom and the Kohler name is still there, and will still be tomorrow. The Kohler story is the dream of every person in business — imagine: the family’s name creating recall, even in a person’s most private moments.

“I just want to leave the company in a much better place than I found it,” said Mr. Kohler.

“What’s helped us survive and thrive over 150 years is this combination of left-brain, right-brain,” he said. Perhaps that’s reflected in the family tree: politicians and businessmen, but quite a number involved in the arts (and even athletics: Mr. Kohler himself served as the General Chairman for the 2015 PGA Championship and the 43rd Ryder Cup at Whistling Straits, held in 2021). “Discipline on one side — disciplined people, disciplined thought, disciplined action — sticking to our principles of how we do business. But then, on the other side, being very creative, and entrepreneurial, and innovative. You can only survive 150 years if you adapt and change, and you innovate for the times, to stay relevant.” — Joseph L. Garcia

Lotus, positioned

The new home of Lotus in the Philippines is located at the corner of 38th Street and 11th Avenue, Triangle Drive, Bonifacio Global City. — PHOTO BY KAP MACEDA AGUILA

The sports car brand is back in the country with a new showroom and a new EV

AUTOHUB GROUP, holder of the Lotus Cars franchise in the Philippines, recently opened in a new location — still at Bonifacio Global City in Taguig — and took the opportunity to locally unveil the sports car marque’s first “four-door electric hyper grand tourer,” the Emeya.

Located at the corner of 38th Street and 11th Avenue, Triangle Drive, the “state-of-the art” facility, said Autohub Group President Willy Tee Ten, represents an “unwavering commitment to elevating the Lotus brand and delivering exceptional customer experience in the Philippines.” Meanwhile, Lotus Cars Asia Pacific, Middle East, and Africa President and CEO Dan Balmer declared in a press statement, “We are proud of our continued partnership with Autohub Group in the Philippines. Together with the professional team at Lotus Manila, we look forward to welcoming our new and existing customers to experience the complete Lotus model range at this dedicated space.”

During our conversations with Mr. Tee Ten, it became evident that the executive is a champion of electrification, and believes that additional EV-friendly government policies will further open the minds of people to the more earth-friendly powertrain. However, we asked him what this means for a brand like Lotus which has traditionally positioned itself as a driver’s car — one that has made a name through capable, visceral, and robust internal combustion engines (ICE).

“Actually, Lotus maintains that all their cars are all driver’s cars,” he insisted. “The Emira is the last of the ICE. And the Emeya and the Eletre (electric crossover) are both vehicles you have to test-drive to see that the drive sensation is still there. Lotus made sure of it.”

Lotus Manila shared that the Emeya “brings together Lotus’ design and engineering DNA, with the latest cutting-edge technologies to set a new benchmark for what it means to drive an electric car. Emeya seamlessly blends the excellent dynamic performance that Lotus is renowned for, with world-class refinement, comfort, usability, and connectivity — bringing drivers the ultimate grand tourer package.” The base variant is priced at P8 million, the S model is at P8.5 million, and the R model goes for P9.5 million.

The top-spec Emeya R boasts an impressive 905hp on tap, courtesy of an EDS 2 (high-power rear motor) two-speed transmission which helps the EV go from a standstill to 100kph in 2.78 ticks — onto a top rate of 256kph. WLTP-certified range for this is up to 485 kilometers between charging sessions. The base and S variants are meant for usability and range — promising up to 610 kilometers on a fully charged battery. Electric motors rated at 450kW enable a zero-to-100kph time of 4.15 seconds, and the claimed top speed is 250kph.

For now though, EVs exist alongside internal combustion mills in the Lotus portfolio — well and good for the myriad of customer profiles. “We’ve got our petrol heads who are into our iconic sports cars, and then we’ve got families who like to hang out with their friends. Then we go full circle with the electric vehicles which are geared more for lifestyle,” reported Lotus Asia Pacific Marketing and PR Manager Pei Leng Tan to “Velocity” in an exclusive interview. “This is exactly where we need to be; we’ve got the product offerings and we’re in the right place.”

She acknowledged that the Philippines is a “very diverse” market, and that there are multiple generations of customers from the old to the new, reckoning that Lotus EVs are attracting a younger demographic. “It’s pretty similar to the rest of the region that we look after, (and EVs) have a vast potential for performance in terms of sales and reach to our new target group.”

Ms. Tan added that she saw a lot of interest in the EVs — and the brand in general — when Lotus Manila recently had a pop-up display here. “I’ve seen the interest and desire for Lotus grow exponentially. We have a very diverse portfolio, so there’s a Lotus for everyone.”

Ms. Tan echoed Mr. Tee Ten’s sentiment about how Lotus EVs are similarly designed to appeal to drivers. “(The cars) look good, they would want to be seen in one,” she enthused. “From a technological perspective, we’re constantly innovating and introducing new technologies in our cars that will support the driver in having a similar experience (with ICE vehicles). That’s from an electric vehicle perspective; it’s still a Lotus through and through.”

Mr. Tee Ten promised about the Emeya, “It fits both former and current Lotus owners who love the feel of the car. It will still be there; the power will always be there. We, of course, cater to the more premium segment — the Lotus lovers and their children. Lotus is also for the younger generation such as successful entrepreneurs who want a good car with fantastic features and power.”

“We love the Philippines and definitely want to ramp up our presence here in the market,” concluded Ms. Tan.

T-bill rates may decline further as inflation slows

BW FILE PHOTO

RATES of the Treasury bills (T-bills) on offer this week could ease further after Philippine headline inflation slowed to an over four-year low in September, which giving the central bank room to continue its policy easing cycle.

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.

T-bill rates may drop further to track the movement of secondary market yields on Friday following the slower-than-expected September inflation print, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Ricafort said the slower September CPI “could fundamentally justify further or even more aggressive local policy rate cuts.”

“Some knee-jerk reaction was seen. However, heavy profit taking still dominated the market,” a trader added in an e-mail.

“We expect a defensive sentiment in the meantime on lack of local catalysts and as market is wary of the oil price surge on the back of geopolitical tensions in the Middle East,” the trader said.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills saw their yields decline by 14.25 basis points (bps), 8.96 bps, and 5.13 bps week on week to end at 5.1153%, 5.29225086%, and 5.5086%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Oct. 4 published on the Philippine Dealing System’s website.

Headline inflation sharply slowed to an over four-year low in September amid lower food and transport prices, the Philippine Statistics Authority reported on Friday.

The consumer price index (CPI) eased to 1.9% year on year in September from 3.3% in August and 6.1% a year ago.

This was the slowest CPI in 52 months or since the 1.6% print in May 2020.

The September print was also below the Bangko Sentral ng Pilipinas’ (BSP) 2%-2.8% forecast for the month and the 2.5% median estimate in a BusinessWorld poll of 15 analysts.

In the first nine months of the year, Philippine headline inflation averaged 3.4%, matching the BSP’s full-year forecast and within its 2-4% target range for 2024.

Analysts said the lower September CPI gives the BSP space to bring down benchmark interest rates further.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board could slash benchmark interest rates by 50 bps more this year and deliver two more 25-bp cuts at its next two meetings scheduled for Oct. 16 and Dec. 19.

The central bank began its easing cycle in August, cutting its policy rate for the first time in nearly four years by 25 bps to 6.25% from the over 17-year high of 6.5%.

Meanwhile, oil prices rose and settled with their biggest weekly gains in over a year on Friday on the mounting threat of a region-wide war in the Middle East, but gains were limited as US President Joseph R. Biden discouraged Israel from targeting Iranian oil facilities, Reuters reported.

Investors remained anxious about how Israel would respond after Iran fired missiles at it on Tuesday. Supreme Leader Ayatollah Ali Khamenei said earlier that Iran and its regional allies will not back down.

US crude settled up 0.9% at $74.38 a barrel and Brent settled at $78.05 per barrel, up 0.55% on the day.

Last week, the BTr raised P20 billion as planned from the T-bills it auctioned off as total bids reached P76.445 billion or almost four times as much as the amount on offer.

The Treasury borrowed the programmed P6.5 billion via the 91-day T-bills as tenders for the tenor reached P24.37 billion. The average rate for the three-month paper eased by 18.4 bps to 5.196% from the previous week, with accepted yields ranging from 5.15% to 5.248%.

The government also fully awarded P6.5 billion in 182-day securities, with bids reaching P26.245 billion. The average rate of the six-month debt was down by 47.5 bps to 5.005%. Accepted bid yields were at 5% to 5.02%

The Treasury likewise raised P7 billion as planned via the 364-day debt as demand reached P25.83 billion. The average rate of the one-year debt fell by 9.6 bps to 5.487% from last week, with accepted rates at 5.4% to 5.525%.

The BTr plans to borrow P145 billion from the domestic market in October, or P100 billion via T-bills and P45 billion through Treasury 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 economic output this year. — A.M.C. Sy with Reuters

USDA expects PHL raw sugar output to fall 3.6% this year

PHILSTAR FILE PHOTO

THE US Department of Agriculture (USDA) said Philippine raw sugar production is expected to decline 3.6% to 1.85 million metric tons (MMT) during the 2024 to 2025 crop year, with the decline partly offset by increased acreage planted to cane.

In a report, the USDA said the forecast is more bullish than that of the Sugar Regulatory Administration (SRA), which officially estimates output at 1.78 MMT.

The SRA said in Sugar Order (SO) no. 1 that it projects a 7.2% drop in sugar production from the 1.92 MMT reported during the previous crop year, citing crop damage sustained during the dry conditions brought by El Niño.

Sugarcane planting normally starts in October and ends in May.

The USDA on the other hand said that the expansion of acreage and a less severe El Niño than usual underpinned its own forecast.

The government weather service, known as PAGASA, declared the onset of El Niño in June 2023, bringing below-normal rainfall conditions, dry spells, and droughts. It ended in June.

The USDA added that the increase in Mindanao plantings could boost the area planted to cane to about 389,500 hectares from 388,000 hectares the prior crop year.

“The loss of area in Luzon due to land conversion to residential and commercial purposes will only partly offset area expansion in Mindanao,” it added.

SO 1 designated all sugar production for the 2024-2025 crop year as “B” sugar, for domestic use only.

The US maintained the Philippines’ export quota at 145,235 metric tons raw value of raw cane sugar under the tariff rate quota scheme of the World Trade Organization.

The SRA had earlier allowed the export of 25,000 MT of domestic raw sugar to fulfill the US quota after three years of noncompliance.

The USDA added that expects no further imports of sugar by the Philippines during the 2024-2025 crop year with the government seeking to protect Philippine producers. — Adrian H. Halili

DoE, DENR grant rights to access offshore areas for energy dev’t

INSUNG YOON-UNSPLASH

By Sheldeen Joy Talavera, Reporter

THE GOVERNMENT is seeking to fast-track the development of offshore wind projects in the Philippines, aiming to deliver power from these by 2028 by further streamlining permit processing.

The Department of Energy (DoE) and the Department of Environment and Natural Resources (DENR) signed a memorandum of agreement (MoA) on Friday last week, allowing access to offshore and auxiliary areas.

The agencies are granting rights to offshore areas covered by offshore wind energy service contracts, including auxiliary areas, to accelerate the exploration, utilization, and development of the projects, the DoE said in a statement over the weekend.

Under the agreement, developers with contracts will have access to the areas during the exploration, development, and commercial development phases of the projects, subject to necessary DENR requirements.

The DoE will provide the DENR with a list of identified offshore wind projects within 30 days after the execution of the agreement.

It noted that the list will be regularly updated, in collaboration with the DENR, to reflect new offshore wind service contracts and development activities.

The DENR has the right to impose additional conditions or deny access altogether if an area falls within an environmentally critical zone or is subject to prior vested rights, the DoE said.

“This landmark agreement streamlines the process of exploring, utilizing, and developing offshore wind projects, while ensuring that environmental safeguards are in place at every stage,” the agency said.

Under the current system, renewable energy projects are required to secure various compliances with the DENR, such as foreshore lease agreements, forest land use agreements, and miscellaneous lease agreements, before proceeding with exploration and development.

However, with the agreement, offshore wind energy service contracts now provide sufficient authority to advance these projects without needing separate agreements.

“This MoA is a crucial step in realizing the goal of the administration of President Ferdinand Marcos Jr. to deliver the first kilowatt-hours from offshore wind projects by 2028,” Energy Secretary Raphael P.M. Lotilla said.

“By streamlining the process for accessing critical areas, we are paving the way for a rapid and responsible rollout of offshore wind projects, which will contribute significantly to our clean energy transition,” he added.

While the Philippines is seizing opportunities that renewable energy can provide, DENR Secretary Maria Antonia Yulo-Loyzaga said the country “must also remain vigilant in addressing any unintended consequences on our ecosystems.”

“The exploration, development, and utilization of offshore wind resources have to be approached with care to protect our marine, terrestrial, and socio-economic environments as well,” she said in her speech.

The DoE has already awarded 92 offshore wind energy service contracts to 38 renewable energy developers with a total potential capacity of 66.101 gigawatts.

Last month, the DoE said that the Philippine Ports Authority (PPA) had initiated immediate steps to repurpose three priority ports to fulfill the operational requirements of offshore wind projects.

The DoE identified the Port of Currimao in Ilocos Norte, Port of Batangas in Sta. Clara, Batangas City, and Port of Jose Panganiban in Camarines Norte, given their proximity to high-potential offshore wind energy service contracts.

Energy Undersecretary Sharon S. Garin said the government will be able to determine the investment needed for the repurposing of ports after the completion of the asset evaluation.

“It won’t be a one-year project, probably a two-year project or multi-year,” she said.

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