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Advancements make RE reliable for Philippines’ power needs — CREC CEO

OLIVER TAN

By Sheldeen Joy Talavera, Reporter

ADVANCEMENTS have now made renewable energy (RE) a viable option for providing reliable power, capable of meeting the Philippines’ growing energy demands, according to Citicore Renewable Energy Corp. (CREC) President and Chief Executive Officer (CEO) Oliver Y. Tan.

“Others do not believe that renewable energy can be a baseload; our vision is that it is [feasible],” Mr. Tan said in an interview with BusinessWorld. “Through technology, we can actually achieve almost 100% pure renewable.”

Despite concerns about renewable energy’s intermittency, he said that it is possible to achieve pure renewable energy through technology. However, he also said that there is still a need for conventional energy sources to bridge the transition.

“We still need them. But eventually, they can be the backup ancillary, and renewable energy would be the primary source of power,” he said.

Mr. Tan said that the government is “doing the right policy” which is to transition from traditional fossil fuels, with the Philippines being a net importer of coal and oil.

The Department of Energy has set a target of increasing the share of renewable energy in the Philippines’ energy mix to 35% by 2030 and 50% by 2040.

“That (target) alone is a huge requirement. There is enough market or enough time for everyone,” Mr. Tan said.

CREC, directly and through its subsidiaries and joint ventures, manages a diversified portfolio of renewable energy generation projects, power project development operations, and retail electricity supply services.

It is the parent company of Citicore Energy REIT Corp. (CREIT), the country’s first real estate investment trust (REIT) listing focused on renewable energy.

Before starting his stint as president of CREC, Mr. Tan joined Edgar Saavedra-led infrastructure conglomerate Megawide Construction Corp. as its chief finance officer (CFO) in 2011.

With the group’s expertise in transportation and infrastructure, the company also entered new business directions.

“We think that power as an industry is one sector that we can improve the efficiency in terms of building the power plant because we are an engineering company,” Mr. Tan said.

He stepped down as CFO in 2016 and focused on his role as CREC’s CEO.

“We’re able to grow the company (CREC) to where it is today, second largest in terms of installed capacity, and CREIT (as the) largest renewable energy landlord,” Mr. Tan said.

CREIT came to life as an “innovative structure” and a “trailblazer” amid the fad in REITs conducting initial public offering (IPO), he said.

“Instead of doing a straight IPO, let us do a REIT, but this time it is a renewable energy REIT, not your traditional mall or office. So, it’s a bit innovative,” Mr. Tan said.

CREIT is engaged in renewable energy generation and property leasing, both from leasehold and freehold land assets.

Meanwhile, CREC currently has a combined gross installed capacity of 285 megawatts (MW) from its 10 solar power facilities in the Philippines.

The company is constructing eight projects worth approximately one gigawatt (GW), underway to achieve its goal of five GW of capacity by 2028.

“The immediate plan is to energize the 1,000 MW under construction… once these plants are energized, we will be feeding this asset to CREIT in order to grow its asset portfolio, that would happen next year,” Mr. Tan said.

The company is expecting its gross installed capacity to grow to six times next year, equivalent to about 1,300 MW, which could boost its revenues and earnings.

In June, CREC listed its P5.3-billion IPO on the Philippine Stock Exchange, which included a $12.5-million investment from the United Kingdom’s MOBILIST program.

“The full impact of the power generation revenues will be felt next year since projects currently under construction will start to be energized by then,” Mr. Tan said.

“We will focus on adding solar capacity and looking at other opportunities that take us close to our five-GW-in-five-years goal,” he added.

Ralph Lauren takes fashionistas to the Hamptons for spring show

BRIDGEHAMPTON — Veteran designer Ralph Lauren chose the upscale Hamptons seaside resort for his Spring 2025 fashion show on Thursday, inviting fashionistas, celebrities and US First Lady Jill Biden to his “home away from home.”

The designer, 84, presented his Ralph Lauren Collection, Purple Label, and Polo Ralph Lauren lines for men, women, and children at the show held in Bridgehampton on the eve of New York Fashion Week. (Watch the show here: https://www.ralphlauren.com/ )

Actors Naomi Watts, Justin Theroux, Colman Domingo, Tom Hiddleston and Jude Law as well as singer Usher were among the famous faces seated in the front row and models Naomi Campbell and Christy Turlington took to the runway.

“The Hamptons is more than a place. It’s a natural world of endless blue skies, the ocean, green fields and white fences, rusticity and elegance… It has been home, my refuge and always an inspiration,” Mr. Lauren said in a statement.

Models wore blazers paired with loose trousers, tailored suits as well as floaty white and pale blue dresses. There were plenty of stripes and fringes on designs, some crochet outfits, and shimmering sparkles for eveningwear in a color palette of mainly white, blue and khaki.

Bright colors — green, red, yellow and orange — featured in the Polo Ralph Lauren collection with outfits nodding to the Hamptons’ equestrian history.

New York Fashion Week kicked off on Sept. 6 and runs until Sept. 11. — Reuters

JAC unboxed

The JAC JS8 Pro seven-seater is priced at P1.35 million. — PHOTO BY DYLAN AFUANG

Brand reignites local presence with ‘value’ products, expanding dealer network

By Dylan Afuang

JAC IS AMONG the flurry of China-headquartered brands that are establishing a foothold in our market, and its reentry is backed by global mobility group Astara Philippines. Following JAC’s local relaunch last April, the brand recently fielded its entry to the heated market of models made by our northern neighbor — the JS6 compact crossover and JS8 Pro midsize SUV.

“JAC is proud to celebrate its 60th anniversary, marking six decades of providing dependable vehicles to customers around the world,” JAC International Regional Director for Asia Pacific, Left-Hand-Drive Markets Jessica Ji expressed to kick off a quick road trip that enabled the media to experience the latest, and commendable, offerings from JAC Philippines.

Formally known as the Anhui Jianghuai Automobile Group, JAC was founded in Hefei, China, in 1964, and manufactures commercial vehicles and passenger cars under various sub-brands. Leading the local distribution of the JAC-branded passenger cars is Astara Philippines, which also handles the distribution of China-headquartered GAC, JMC, and French auto marque Peugeot.

The JS8 Pro seven-seat SUV and JS6 five-seat crossover signal the brand’s local reignition — and they retail for introductory prices of P1.35 million and P1.38 million, respectively. The two models are now available at the JAC Manila Bay outlet — and soon, at the brand’s dealerships in Alabang, Calamba, Iloilo, Pasig, and Quezon Avenue, the company said in a release.

The JS8 Pro and JS6 also boast what a company executive described as value for money, given how the cars offer a wealth of convenience and safety tech for the money.

“Value is when you get more than what you pay for,” JAC Philippines Brand Head Tonette Lee explained, adding that this quality is “the strength of the positioning of JAC in the Philippines.” (Ms. Lee and company executives pronounced the brand’s name as “jack.”)

“JAC vehicles will suit every Filipino in every stage of their lives,” Ms. Lee added, “from beginning to drive, to becoming a responsible driver, and to managing a business.” Other JAC vehicles available here are the JS2 Pro and JS4 subcompact crossovers, and the T8 Pro pickup truck.

The JS8 Pro and JS6 are equipped with two 12.3-inch screens that display the instrument cluster, and the touchscreen infotainment system complemented by Apple CarPlay and Android Auto connectivity, and an eight-speaker sound system. More creature comforts include front wireless charging pads, rear USB ports, climate controls front and rear, and expansive sunroofs.

Safety equipment shared by the JS8 Pro and JS6 are a 360-degree camera, electronic stability program, hill-start assist, and blind-spot detection. Exclusive to the JS6 are lane departure warning, frontal collision warning, remote light switch, and automatic emergency braking.

Motivating the new entrants smoothly and efficiently is the same turbocharged 1.5-liter, four-cylinder gasoline unit producing 182hp and 300Nm of torque, both coursed to the front wheels through a six- (for the JS6) and seven-speed (for the JS8) dual-clutch transmissions.

Assuring owners of the reliability of the JS8 Pro and JS6 are a five-year, 150,000-km warranty and 24/7 roadside assistance. To learn more about JAC Philippines lineup, customers can visit jacmotors.com.ph and follow
@jaccarsph on Facebook and Instagram.

The rise of open banking across Southeast Asia

FREEPIK

By Baasandorj Davaasuren

OPEN BANKING, in the simplest terms, is about giving you more control over your money. Instead of being tied solely to your traditional bank, it lets you share your financial information with other trusted companies. This opens a world of possibilities, from budgeting apps to loan comparison websites.

Some of the key benefits of open banking include easier transactions and greater control. Complex transactions become a breeze with open banking. You can seamlessly switch between different financial services or providers, making online shopping and payments more efficient and secure. Imagine managing all your finances from one place. Open banking empowers you to do just that — you’ll have better control over your budget, reduce unnecessary costs, and enjoy greater transparency in your financial transactions.

While open banking has the potential to greatly enhance financial inclusion in Southeast Asia, especially with the region’s rapid digital adoption, it faces unique challenges shaped by regional and cultural differences. For example, many people in Southeast Asia are still underbanked or unbanked, lacking access to traditional banking services or digital tools needed for open banking. Bridging this gap requires a concerted effort to improve financial literacy, develop the necessary infrastructure, and implement accessible digital solutions.

Additionally, many traditional banks in the region still operate on outdated systems that aren’t compatible with modern open application programming interfaces (APIs), making it harder to integrate third-party services. Each country has its own regulatory framework, which affects compliance and creates a complex web of local laws that firms must navigate. There are also significant concerns among consumers and regulators about the security of sharing sensitive financial data through open APIs. Overcoming these challenges will require a mix of innovative strategies, including developing localized regulatory frameworks, fostering strategic partnerships, and investing in education campaigns to build consumer trust and awareness.

Changing consumer demands have been a major catalyst for the development of safer and faster financial technology (fintech) solutions. With more people becoming digitally savvy and smartphone use soaring, there has been a sharp rise in demand for digital financial services. Consumers now expect these services to be quick, secure, and tailored to their individual needs. This has pushed fintech companies to continuously innovate and enhance their offerings.

The COVID-19 pandemic also played a crucial role by accelerating the shift towards contactless payments and remote banking services. As a result, banks and fintech firms have had to prioritize safer, faster solutions like instant payments, biometric authentication, and digital wallets. Additionally, as more people seek financial inclusion, especially in underserved regions, fintech companies are focusing on creating simpler, more accessible products to bring unbanked and underbanked populations into the financial ecosystem.

Looking ahead, several exciting trends are shaping the future of finance and fintech. Embedded finance is set to grow, where businesses outside of traditional banking offer financial services directly within their platforms, providing more seamless and integrated experiences for consumers.

Decentralized finance or DeFi is also expanding, using blockchain technology to offer more transparent financial services without intermediaries, reducing costs and increasing accessibility. Advances in artificial intelligence and machine learning are improving customer service through smart chatbots, enhancing fraud detection, and delivering more personalized financial advice.

Security is another key focus area, with biometric authentication becoming more common to provide a safer and smoother experience. Meanwhile, there is a growing shift towards sustainable finance, with more emphasis on green and socially responsible products. Lastly, as cyber threats evolve, fintech companies are investing heavily in digital identity verification to protect both consumers and businesses from fraud.

Open banking empowers people with better financial management tools, personalized services, and a more seamless banking experience, resulting in increased trust and reduced friction that benefits both banks and customers.

Baasandorj Davaasuren is the chief business development officer at AND Global.

DITO CME’s ‘Secure Horizons 2024’ tackles cybersecurity challenges in the Philippines

Cybersecurity is one of the many areas where the Philippines needs to enhance its capabilities in order to protect its digital users. The country ranks second in the cybersecurity company Kaspersky’s global cyber-attack of 2023 list while only placing 45th out of 164 countries in the National Cyber Security Index (NCSI) by the e-Governance Academy Foundation.

In response to this growing threat, DITO CME Ventures, Inc., a wholly-owned subsidiary of publicly-listed DITO CME Holdings Corp., recently brought together top experts from both the public and private sectors for its first-ever one-day live event focused on cybersecurity with the theme “Secure Horizons 2024: Navigating Tomorrow’s Cyber Threats with Today’s Innovative Solutions.”

DITO’s Secure Horizons event began with a speech from the company’s President and COO Donald Patrick Lim, where he mentioned that the event almost did not push through due to the inclement weather brought on by Typhoon Enteng and the southwest monsoon.

“Cyberthreats wait for no man and no perfect weather; it could just come at any time. Thus, we made a conscious decision to push through because as they say, the show must go on,” he said.

The DITO CME COO also noted that the Philippines has been a target of numerous cyberattacks over the past months and shared that other companies have been asking him about what’s been recently happening on the cybersecurity front.

“These attacks have not been limited to any one single institution, they span government agencies, private enterprises, and even critical national infrastructure. This growing threat landscape underscores a pressing reality: our vulnerability as a nation,” he said.

Mr. Lim mentioned that rapid digital transformation, lack of focus on cybersecurity, limited investments in cybersecurity infrastructure, and its geopolitical position in Southeast Asia make the Philippines an attractive target for cyberattacks either state-sponsored or launched by transnational criminal groups.

To make the country more cyber-secure, he recommends that private and public institutions work together and invest in robust cybersecurity measures, including adopting the latest technologies, conducting regular audits, as well as training their workforce to identify, anticipate and respond to both present and future cyberthreats.

He added that there is a need for a comprehensive cybersecurity policy and legislation that provides a clear framework for protecting critical infrastructure, responding to incidents, and prosecuting cybercriminals. In addition, he recommends the integration of cybersecurity into the education curricula and running awareness campaigns to ensure that every citizen knows their role in safeguarding the digital future.

“Cybersecurity is not just a technical issue, it is a strategic imperative. The frequency and impact of cyberattacks in our country highlight the need for action. We must act collectively and decisively… Together we can build a safer digital future for our nation,” Mr. Lim said.

The event also featured a keynote speech from Department of Information and Communications Technology Director of the Cybersecurity Bureau Jose Carlos “Caloy” P. Reyes, where he spoke about the critical importance of national cybersecurity strategies and ongoing initiatives to bolster the country’s resilience against cyber threats.

Other experts from the public sector who spoke during the event include PCol. Jay Guillermo, division chief of the Cybercrime Unit of the Philippine National Police; Col. Francel Margareth Taborlupa, chief of the Information Systems Management Division of the Armed Forces of the Philippines; and Monchito B. Ibrahim, executive member at National Innovation Council.

Meanwhile, several prominent private sector experts also shared their valuable insights and expertise during the event: Red Rock IT Security, Inc. Chief Technology Officer Raymond Nunez; Impact Solutions Research Institute Founder and Senior Consultant Jan Chavez-Arceo; Blackpanda Group CEO Gene Yu; Hacktiv Colab, Inc. CEO Paul Soliman; Hacktiv Colab, Inc. Chief AI and Data Strategist Ziggy Zulueta; Asian Institute of Management Adjunct Professor Edwin Concepcion; and, ATTN Live Chief Innovation Officer and University of Michigan Professor Tim Bates.

Topics such as data privacy, artificial intelligence, blockchain, deep fakes, and even the West Philippine Sea were all covered by these experts to highlight the challenges and emerging risks in the digital landscape of the Philippines.

In closing the event, Mr. Lim expressed his appreciation towards the attendees, sponsors, experts, and stakeholders who made the event possible and highly successful notwithstanding the poor weather. He summarized the key take-aways presented by each speaker.

“Cybersecurity is not the responsibility of one single entity, it is a collective mission. Therefore, one of the recurring themes of this conference is the interconnected nature of our challenges in this rapidly growing digital space. Our security is only as good as our weakest link,” he said.

Taking off from the success of this initial event, Secure Horizons plans to do a roadshow across different key cities in the Philippines with Visayas and Mindanao legs. These will culminate in the Secure Horizons Roadshow in Manila, before the end of 2025. More details to come.

 

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Taste the Bold Flavors of the North at Hann Resorts

Pampanga, often celebrated as the culinary heartland of the Philippines, has long attracted food enthusiasts from near and far. Known for its rich heritage and vibrant flavors, the province offers a gastronomic experience that is both traditional and innovative. From the savory goodness of sisig to the sweet delight of tibok-tibok, Kapampangan cuisine showcases a profound love for food that has been passed down through generations. Yet, as the world evolves and tastes change, Pampanga continues to adapt, adding new dimensions to its culinary landscape.

Hann Resorts, an iconic landmark in Clark, Pampanga, introduces a whole new dining experience, offering a compelling reason to travel just an hour and a half from Manila by land or conveniently accessed by air via Clark International Airport. This integrated resort is home to a world-class gaming facility, and internationally renowned hotels like the Clark Marriott and Swissotel Clark, together operating a total of 15 restaurants, cafes, and bars — a diverse culinary option awaiting to be explored.

A culinary world tour under one roof

Robert Czeschka, Executive Chef of Clark Marriott

Hann Resorts presents a global culinary journey, a vibrant tapestry of local and international flavors all under one roof. Guests can travel from European classics to Asian delicacies, to innovative fusions of international culinary traditions.

Tomahawk Steak at Smoki Moto

Specialty dining destinations at Clark Marriott are directed by Executive Chef Robert Czeschka. One of the best restaurants in Central Luzon is Smoki Moto, specializing in Korean, Japanese, and American cuisines. This well-loved restaurant features premium Black Angus Beef, including a 1.6-kg Tomahawk Steak infused with roasted garlic olive oil and served with baguette, parmesan whipped potatoes, grilled asparagus, and port wine jus.

Interior of Smoki Moto, Clark Marriott

Located on the 17th floor, Smoki Moto offers breathtaking views of the Zambales mountain ranges, making it an ideal spot for a romantic dinner or a nightout with friends. The restaurant features modern interiors, including a dramatic “hanging” nook that adds a unique touch to the dining experience. It also boasts a teppanyaki-style private dining area for a more intimate meal.

Goji Kitchen+Bar is the leading buffet restaurant in Clark known for its wide array of international dishes for breakfast, lunch, and dinner. It highlights a Kapampangan station showcasing the province’s signature dishes such as sisig and buro.

Lucas Zhou, Executive Chinese Chef of Clark Marriott

Wu Xing, led by Executive Chinese Chef Lucas Zhou, offers an extensive selection of signature Cantonese dishes in an elegant setting. Renowned by locals and tourists alike, Wu Xing’s authentic Peking duck is a standout, marinated and roasted with locally sourced star-apple firewood, resulting in tender, flavorful meat and crispy skin.

Peking Duck and signature dishes of Wu Xing

Smoki Moto, Goji Kitchen+Bar and Wu Xing are listed as TripAdvisor’s best restaurants in Clark.

Roald Schuur, Area Culinary Director of Swissôtel Clark

Two-year-old Swissotel Clark elevates the dining experience with specialty restaurants led by Area Culinary Director, Chef Roald Schuur. Guests indulge in a wine-filled adventure at Ristorante di Verona, where Italian fun dining awaits. Don’t miss their authentic lasagna, baked until golden and crisp on top, offering a comforting and well-balanced blend of flavors. Savor a homemade pizza quattro formaggi, perfectly prepared in a wood-fired brick oven. For the main event, the mouthwatering tomahawk steak, is perfect for sharing and pairs wonderfully with fine wine.

Authentic lasagna at Ristorante di Verona

Inspired by the young romantic setting of Shakespeare’s Romeo and Juliet, the restaurant’s posh interiors set the stage for an equally delightful culinary offers. The unique decor, featuring industrial ceilings and mirrored walls, reflects its playful dining concept, creating an inviting and sophisticated atmosphere.

Interior of Ristorante di Verona, Swissotel Clark

Markt, the all-day dining restaurant, pays tribute to its Swiss heritage by drawing inspiration from Europe’s bustling marketplaces. Guests can enjoy ordering from dynamic food stations, including salads, appetizers, stews, pasta, fried dishes, grilled meat and fish, and desserts.

Spice, conveniently located near the gaming floor, offers quick and flavorful meals featuring local and Asian favorites. This Asian restaurant serves a mix of Chinese, Thai, Vietnamese, Japanese, and Indonesian street food, bursting with flavor and spices. Menu highlights include Pad Thai, Laksa, Beef Salpicao, homemade steamed buns, and dimsum. Don’t forget to try their unique and refreshing drinks, artisanal craft beers, and iced teas named after local cities in Pampanga: Angeles C-tea, Mabalacat C-tea, and San Fernando C-tea.

A culinary destination in Pampanga, Hann Resorts is where travelers can explore dining at new heights. With the expertise of the executive chefs, who use the freshest ingredients and incorporate impressive cooking techniques, bold flavors abound in every dish. With its unique ambiance, refreshing views of nature, and exceptional 5-star service, dining is a feast for both the palate and the senses. Whether you’re savoring a gourmet meal or enjoying a casual bite, each experience is crafted to delight. Traveling all the way to Clark becomes a journey worth making, promising a culinary adventure you won’t forget. #BoldFlavors

Learn more about Hann Resorts at www.hannresorts.com or on Facebook and Instagram at @hannresorts.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Geopolitics and economic opportunities

FREEPIK

The Philippines has repeatedly failed to take economic advantage of geopolitical events.

It was Thailand, for example, that benefited from the 1985 Plaza Accord agreement which forced the Japanese to revalue the yen. Faced with a stronger yen, Japanese manufacturers relocated to Thailand. Thailand became the “Detroit of Asia” as Toyota, Honda, Isuzu and other Japanese car makers made it a base for manufacturing and exporting to other countries in Asia and beyond.

In contrast, despite its large English-speaking, relatively educated workforce, the Philippines lost investors due to its unstable political environment, lack of infrastructure, unstable power supply, and investment-unfriendly and anti-foreign laws, starting with the 1987 Constitution. As a result, the country chose to export its people instead.

For these same reasons, the Philippines continues to lose out in the geopolitical conflict between China and the West. Investors have been skipping the Philippines and heading to Vietnam and India as their insurance against further escalation of the US-China rivalry. Meanwhile, Chinese investors, faced with more expensive labor and a shrinking demographic labor pool, are also going to Vietnam, despite the history of tense Vietnam-Chinese relations.

The Philippines continues to lose manufacturing investors. Intel left the country for Vietnam, and even Korean investors, led by Samsung, have spurned the country for Vietnam. Given the close relations between South Korea and the Philippines, forged during the Korean War, one would have thought the Philippines would be a preferred investment and tourism destination for Koreans. Alas, the Philippines continues to be the bride left at the altar.

Scanning the newspaper pages, I still see many economic opportunities the Philippines can exploit, but will we?

For example, Canada and Australia are beginning to limit the number of foreign students in their universities. An expanding foreign student population is being blamed for high housing rental prices, competition for scarce jobs, and overall decline in quality of living both in Australia and Canada even if education exports contribute to a significant share of their respective GDPs. In Australia, educational exports contribute $20 billion to the economy and are the fourth biggest export after iron ore, gas, and coal. However, for political reasons, Australia and Canada are taking away the welcome mat for foreign students and hurting their economies instead.

Why don’t we take advantage of this geopolitical development and present ourselves as an alternative to English-based tertiary education? After all, we cater to foreign students from India, Nepal, and Africa for health sciences education, and various nationalities for English language education. We certainly cannot offer ourselves as an alternative to those seeking top-tier university and post-graduate education or those seeking education as a path to permanent migration in Australia or Canada. However, we can still catch some spillovers from those who have been turned away from Australia and Canada and are looking for English-based tertiary education. We can build on our education exports as another growth driver if we are intelligent and decisive enough. However, to reach that goal, we must do several things.

First, we must remove the Constitutional restriction on foreign investment in education. Removing the restriction is already part of Resolution of Both Houses (RBH) No. 7*, which amends the Constitution on foreign ownership in education, advertising, and public utilities. It is too bad these Constitutional amendments have been stalled in the Senate, but we are missing a gigantic opportunity by not doing so.

If we allow foreign investment in education, we may be able to get prestigious foreign universities to establish campuses here, especially since their home countries have started to limit international student enrollment. Having these foreign universities here will not only raise the level of tertiary education in the Philippines but also attract foreign students to come and study in the Philippines and graduate with a degree from a prestigious foreign university, say the University of Sydney or Duke University. Imagine the spillover effects on the economy in terms of housing, food, and tourism.

Second, we must also remove the constitutional restriction on the practice of professions without the need for an enabling law. This will not only make it easier for foreign professors to teach in the Philippines (the Philippine Regulation Commission considers teaching a practice of a profession) but also expand the number of foreign student graduates who have studied here, especially much-needed doctors and nurses, to practice in the Philippines.

At the very least, Congress should amend the Foreign Medical Practices Act, to enable foreign medical students who have studied in the Philippines to get a license to practice here if they pass the Physician Licensure Examination (PLE). About 10,000 Indian medical students in the Philippines face a problem since India recently mandated a reciprocity arrangement for citizens who have studied abroad to get a license to practice in India aside from an alignment of medical curriculums. If we don’t reciprocate, the number of Indian medical students in the Philippines may dry up and present huge opportunity losses to our private colleges and universities.

Third, the Free Tertiary Education Act, which provides free tuition at state universities and colleges for P40 billion annually, should be converted into a scholarship fund for poor students instead. 

The College Tuition Law is wrong for many reasons. It subsidizes state schools, whether performing or not, so rich and middle-class students in those schools get free tuition. The more affluent students, especially those from private schools, are more likely to be admitted to those state schools, thereby creating a bias against poor students. This exacerbates income inequality. It is also inefficient since the cost of graduating a student in state schools is higher than in private colleges and universities.

Most importantly, it provides unfair competition to more efficient and better-managed private colleges and universities. As a result of this law, several private educational institutions have gone out of business and weakened the nation’s capacity to provide tertiary education.

Last, the growth of the education export sector should be part of the country’s development plan and should be an area to shower with government incentives and support.

Other geopolitical developments, from the demographic collapse in Japan, South Korea, and even Thailand, to political instability in Bangladesh and Thailand, can be exploited by the Philippines with the right policies. However, I will discuss these in another column.

Given our labor rigidities and the poor state of our infrastructure, we may be unable to attract many manufacturing investors despite Western governments’ push for “friend-shoring.” We may have no choice but to seek growth in services. Geopolitics presents us with an opportunity to grow our education export services sector. Let’s seize the day. n

*“A Resolution of Both Houses of Congress Proposing Amendments to Certain Economic Provisions of the 1987 Constitution of the Republic of the Philippines, Particularly on Articles Xll, XlV, and XVl.”

 

Calixto V. Chikiamco is a member of the board of IDEA (Institute for Development and Econometric Analysis).

totivchiki@yahoo.com

SM Prime shares dip despite developments

SM Prime Holdings, Inc. shares dipped last week despite news about its mall expansion plans and investor expectations of a rate cut, according to analysts.

Data from the Philippine Stock Exchange showed 28.39 million shares worth P857.4 million exchanged hands from Sept. 2-6, making the listed property developer the 10th most actively traded stock in the local bourse last week.

Shares in the Sy-led company finished trading at P30.10 on Friday. The stock price fell by 2.7% from a week earlier. For the year, the stock also declined by 8.5%.

Mercantile Securities Corp. Head Trader Jeff Radley C. See said in an e-mail that the listed property developer’s rally was driven by investors’ anticipation of a rate cut this year.

He also said that this would be bullish for SM Prime because it would make borrowing money cheaper.

In its Aug. 15 Monetary Board Meeting, the Bangko Sentral ng Pilipinas (BSP) cut benchmark interest rates by 25 basis points to 6.25%, its first cut in nearly four years.

With this, BSP Governor Eli M. Remolona, Jr. also signaled another rate cut before the end of the year.

Latest government data showed inflation for August slowed to 3.3% from 4.4% in July, the slowest pace in seven months and settling within the central bank’s target of 2-4%.

Last week, reports showed that the property developer is focusing on expanding its mall business in the Philippines due to its competitive advantages while maintaining stable operations in China.

Executive Committee Chairman Hans T. Sy also added that SM Prime is on track with its reclamation project, mentioning that there are ongoing discussions about potential partnerships for development and added that the budget for the reclamation is almost P150 billion.

This reclamation project is for the 360-hectare SM Smart City development, which is linked to the Mall of Asia Complex.

SM Smart City is designed as a mixed-use development similar to the Mall of Asia reclamation project. The property developer aims to finish the project and turn it over to the Pasay City local government by 2028.

SM Prime’s continued international expansion, especially in China coupled with its aggressive domestic growth, demonstrates its strong position as a regional real estate leader, Mark V. Santarina, trader at Globalinks Securities and Stocks, Inc., said in a Viber message.

He added that the company’s significant investments reinforce its commitment to growth both locally and overseas.

In the second quarter, SM Prime Holdings ‘attributable net income grew by 16% to P11.68 billion from P10 billion a year earlier.  Meanwhile, consolidated revenues increased by 8.8% to P33.97 billion from P31.22 billion.

For the first half of the year, net income grew by 13.5% to reach P22.07 billion, whereas consolidated revenues for the six-month period grew by 8.1% to P64.69 billion.

For Mr. See, he pegged the resistance at P31, while the support levels were at P29.65 and 27.85.

“The stock might range for now between P29.65 and P31,” Mr. See added. — Abigail Marie P. Yraola

Spatio: a new face for Robinsons

Going beyond a department store

THE OPUS MALL down C5 is fast becoming a place to be, and Spatio is just going to add to the buzz.

Spatio is the latest concept from Robinsons Retail, under JG Summit Holdings, Inc. During its opening on Sept. 5, shoppers and guests were taken to all its three floors, spanning Men, Travel, Watches, Women, Beauty, and even a play space for children near the Home department. It also boasts of its own wine bar (Bar Shu), a barbershop (Bruno’s Barbers), and a day spa (Laybare Plus).

The first floor boasts of a Sole Academy, which Robinsons Retail acquired late last year. Their space inside Spatio includes a cleaning service for sneakers, as well as selections from Nike, Adidas, New Balance, Asics, and Saucony.

Martin de Leon, Deputy General Manager for Spatio, estimates that the store measures around 7,500 sq.m. spread across three floors. “This has actually evolved into more of a concept store, than a department store. It’s not your usual,” he told BusinessWorld. “The concepts that you can find are more concept or more store-in-store.” For example, he points out that British brand Kangol’s first physical store in the Philippines is in Spatio, and that Martha Stewart’s home products are in the store as a store-in-store concept (meaning they carry the full line). All in all, to Mr. De Leon’s estimate, Spatio carries close to 200 brands.

A surprising find are the artisanal fair staples like Pinas Sadya, Calli, and Vesti and local designers like Rhett Eala. Although they already have solo stores in other upscale malls, they’re not exactly department store finds. “We want to kind of put a home to all these really good brands. There’s no reason to wait for a pop-up. We definitely want this to be a destination where we can support local brands and what they stand for,” said Mr. De Leon.

He emphasizes, however, “We don’t want to position this as a luxury brand per se. We have what we call our department store staples,” he said, and familiar brands like Bench come into the mix. “We want this to be still an accessible store. I guess the positioning is quite unique. It’s not all over P10,000. You can come here and still find your basic black and whites, and find something less than P500.”

That’s quite true: their beauty department has staples like Maybelline, and a few steps over, you can find a blazer by a local designer for P12,000. Just down the escalator is luxury luggage by Bric’s Milano, with some bags at P40,000.

As for rolling out the concept in other Robinsons malls, he said, “We want to focus on this first, but definitely, as we grow the business, we will continue to explore other opportunities for Spatio.”

Spatio is located at Opus Mall, Bridgetowne Destination Estate, Quezon City. — Joseph L. Garcia

Truckin’ in the city

PHOTO BY DYLAN AFUANG

Mitsubishi’s competent pickup makes a case for trucks as urban transport

By Dylan Afuang

DRIVING the 2024 Mitsubishi Triton only within the confines of the city makes one wonder if the number of buyers who choose trucks as urban transport have had the right idea all along.

The latest Triton — the successor to the Strada nameplate — comes in seven variants, with prices ranging from P1.134 million to P1.909 million. Through the Triton GLS 4×2 AT (P1.582 million), a model that’s positioned below the range-topping Athlete, we explored Mitsubishi Motors Philippines Corp.’s (MMPC) entry to the growing pickup truck market.

Indeed, sales figures (and a personal observation) reflect the market’s growing preference toward passenger pickup trucks, a vehicle category that’s defined by the Department of Trade and Industry (DTI) as light commercial vehicles (LCVs).

For the first half of 2024, sales of CVs in general rose by 9.8% to 166,404 units from 151,567 units in the same period a year ago, according to a joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

Occasionally, friends or casual acquaintances would inquire whether a particular pickup truck or midsize SUV would be suitable as everyday transport. We would notice such vehicles’ prevalence in the streets, another sign of that vehicle segment’s rising popularity.

And so the Triton GLS joins the throngs of large vehicles in the city’s heavy traffic and cramped parking spaces. What makes it stand out, however, is the truck’s striking exterior, recognized in the iF Design Award 2024, and body length (plus 60mm) and wheelbase (plus 130mm) increases over its predecessor.

These result in a roomier cabin for five passengers, and a ride quality that’s more stable and better handles road imperfections than before. On the other hand, the vehicle’s larger exterior means that parking becomes a tad more difficult than usual.

However, parking sensors and 360-degree camera offer a fine view of parking building walls and erring motorcycles on the road, and the relatively quick steering makes weaving in traffic manageable. For safety, the model offers regular cruise control, forward collision warning, and blind spot monitoring.

The following convenience features found in the Triton GLS, meanwhile, are expected in the price: Charging ports with USB-C, wireless charging, nine-inch infotainment screen with Apple CarPlay and Android Auto, remote locking, and push-button start. Exclusive to the GLS is a cosmetic package that includes step boards, 16-inch gray alloy wheels, and a bed roll bar.

The cargo bed boasts an unobstructed space that can be maximized by 1,115kg worth of cargo. During our urban-centered drive, the cargo space even proved too excessive for a trip to collect groceries and an office chair. The space is more suited for, say, moving large furniture or hauling heavy suitcases or bags of cement.

The truck’s 2.4-liter, four-cylinder, single-turbo diesel mill is certainly an efficient and strong companion. In a progressive manner, it courses 181hp and 430Nm of torque to the rear wheels through a six-speed automatic. The engine consumes 8kpl in crawling traffic, and up to 20kpl on an almost-empty Skyway.

Pickup trucks, by their design, feel too cumbersome for urban duties. These vehicles work better in commercial use cases, and the same can be said for the Triton. Nonetheless, the Triton stands out by virtue of its comfortable cabin, decent equipment with the GLS 4×2, and potentially efficient and reliable mechanicals.

SRA hoping fertilizer additive saves costs for sugar farmers

REUTERS

THE Sugar Regulatory Administration (SRA) said that it is looking to increase the use of non-traditional fertilizer additives for sugar cane production.

In a statement, the regulator said that a recently opened Beneficial Micro-Organisms (BMO) facility could expand the use of the fertilizer additive.

“(The) BMO proved helpful during the prolonged dry spell early this year because it is a foliar fertilizer and can reduce regular fertilizer inputs by about 30%or more,” Ma. Theresa Alejandrino, the facility’s supervising science research specialist, said.

Sugarcane production declined 42.3% year on year during the second quarter to 1.63 million metric tons (MMT), according to the Philippine Statistics Authority (PSA).

The SRA said the P6-million facility has the potential to reduce the cost of fertilizer inputs for sugarcane growers. Its funded was authorized by the Sugar Industry Development Act or Republic Act 10659.

“It is actually a technology that has been used as early as the 1990s as it basically functions as prevention for plant diseases, but it is only recently that farmers were interested in using it amidst rising cost of fertilizers,” Ms. Alejandrino said.

SRA board member David Andrew L. Sanson said cane farmers were able to save about P6,000 per hectare due to the use of the BMO additive.

“The SRA can increase BMO production that we hope will be utilized by our farmers, especially the small farmers that comprise a huge chunk of our sugar producers, and make sugar farming sustainable,” Mr. Sanson added.

Last year, the SRA distributed more than 10,000 gallons of BMO to over 200 beneficiaries. It was used on up to 1,000 hectares of land planted to sugarcane.

Ms. Alejandrino said that the use of the additive promotes germination, flowering, fruition, and ripening of cane crops.

“It also improves physical, chemical, and biological environment of the soil and produces high levels of beneficial enzymes and organic acids that help build solid soil structure,” she added.

Based on the SRA’s initial estimates, raw sugar production could drop to 1.78 MMT for the 2024-2025 crop year, compared to the 1.92 MMT actual output for the 2023-2024 crop year. — Adrian H. Halili

AI adoption key for finance sector growth in PHL

REUTERS

WITH RAPID DEVELOPMENT and innovation happening over the past few years, the adoption of generative artificial intelligence (AI) is set to open more growth opportunities in businesses and industries. Industry leaders have quickly come to recognize the potential of AI in many applications, which is why it’s become a race to properly utilize the technology.

The finance sector is one such field that’s ripe for the major growth that AI can unlock. In a recent presentation, Jackie Wang, Google country director for the Philippines and Thailand, shared three ways for banks, lenders, and other financial institutions to get in on the action and jump-start growth opportunities using the power of AI:

• Properly chart your organization’s roadmap for AI adoption: A clear plan has to be put in place in order to maintain a competitive advantage and maximize the establishment of AI in your company. Google has developed an assessment framework to measure how far along organizations are in adopting AI-powered marketing solutions and how successfully the plan is being implemented.

• Stand out and stay ahead with AI-powered marketing: The first part will lead to the adoption of AI-powered tools in efforts to generate leads. Google’s Demand Gen tool helps businesses optimize creative content to be as relevant as possible to customers all along the consumer journey. Meanwhile, lapsed customers can be re-engaged with Google’s App Campaigns for engagement, which uses generative AI to design highly effective ad formats and assets to bring them back. Local banks have already managed to use Google’s AI tools to earn leads.

For example, Security Bank Corp. recorded 83% more leads at a reduced cost per lead of 54% using AI-generated ads. Meanwhile, Union Bank of the Philippines, Inc. used Google’s AI-powered Performance Max tool to increase credit card conversions, hitting a 90% approval rate and netting a 77.6% return on their ad spend.

• Train people how to best use AI: Of course, AI still needs human intellect and insight to create the best results. The technology can boost their efficiency and productivity, which in turn leads to better performance for the organization.

In the bigger picture, AI also facilitates innovation by identifying new opportunities and accelerating product development. By skilling and training employees to get essential AI skills, such as those offered in Google AI Essentials online course, businesses can nurture, attract, and retain top talent and stay competitive in the ever-evolving digital landscape.

“In today’s rapidly evolving financial landscape, AI adoption isn’t merely a competitive advantage, it’s a necessity,” said Ms. Wang. “By embracing AI tools and innovation, local financial institutions can be well-positioned to win customers and achieve long-term growth.”

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