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Toyota introduces new-generation Camry in PHL

THE eighth-generation Toyota Camry, premiered at the North American International Auto Show in 2017 and sold in Japan, the US and other markets later that year, is now available in the Philippines.
The car arrives today in all Toyota dealerships in the country. Two variants are available — the Camry 2.5 G that costs P1.806 million and the Camry 2.5 V priced at P1.992 million. Both variants can be ordered in a special white color for an additional fee of P15,000. Six other paintjobs are offered.
As the variants’ designations suggest, the latest Camry is powered by a revised 2.5-liter, four-cylinder engine fitted with dual VVT-i — Toyota’s variable valve-timing system. The engine makes 181hp at 6,000rpm and 231Nm at 4,100rpm. A six-speed automatic transmission, equipped with Sport and Eco modes, is matched to the engine. A new feature of the transmission is its ability to shift to a higher gear quicker and blip the throttle when downshifting when it is set in Sport mode.
Propping up the new Camry is a structure conforming to the Toyota New Global Architecture, which the car maker said is focused on rigidity and better handling. The car has a lower center of gravity than the previous model, and its suspension — MacPherson in front, double wishbones in the rear, both with stabilizer bars — is now tuned to respond more sharply. Wheels are 17-inch alloys for the 2.5 G variant. The 2.5 V gets alloys an inch larger, which should benefit handling even more.

Toyota Camry 2
Cabin of new Camry more stylish, better equipped than previous model.

Besides better dynamics, the new Camry’s structure has also made the car safer — Toyota said the Camry scored the top 5-star rating in Southeast Asia’s version of the New Car Assessment Program. Among the car’s safety features are seven airbags, hill-start assist, stability control and ABS with electronic force distribution and assist.
While the two Camry variants are identical mechanically, distinguishing the 2.5 V from the 2.5 G are the former’s power-reclining backseat; touch screen controls for the sunshade, air-conditioning and backseat; a seven-inch touch screen multimedia panel (the 2.5 G has a 4.2-inch touch screen); a power sunshade; transmission modes; triple-zone automatic climate control (against the 2.5 G’s dual); power-adjustable steering wheel with memory function; and power-retractable side mirrors and multi-configurable, leather-wrapped front seats with memory settings.
Both variants are equipped with electric power steering assist; LED head lights, daytime running lamps and tail lights; rain-sensing wipers; smart entry with push-button ignition; multimedia with Android and Apple mirroring capability; and leather steering wheels.
Certainly, instantly recognizable in the new Camry is its more adventurous, edgier styling both inside and out. — Brian M. Afuang

Dashboard (12/12/18)

MG RX5
2019 MG RX5

MG cars come with low down payment plans

MG Philippines, under The Covenant Car Company, Inc., is offering until Dec. 31 down payment plans as low as P78,000 on purchases of MG models.
Included in the promotion are the 2019 MG ZS in Style M/T, Style A/T and Alpha A/T variants; the 2019 MG RX5 in Core M/T and Style A/T variants; and the MG 6 in Alpha 7TST and Trophy 7TST variants. The cars come with a five-year, or 100,000-kilometer, warranty coverage.
MG Philippines said the cars have access to after-sales services from MG Philippines-accredited outlets, as well as to a “Mobile Garage.”

Mercedes-Benz GLE

Mercedes-Benz cuts price of GLE

MERCEDES-BENZ Philippines is reducing by as much as P500,000 the price of the Mercedes-Benz GLE. The discount is offered until Dec. 31.
The GLE is a luxury SUV equipped with 20-inch alloy wheels, LED Intelligent Light System, and an infotainment system with a touch screen and a touch pad, among other items. Powering the car is a V6 engine matched to a 4MATIC all-wheel drive system. Some of its safety features are collision prevention assist, blind spot assist, radar-based and active brake assist with collision mitigation.

Shell Autohub
Pilipinas Shell president and CEO Cesar G. Romero (left) and Autohub Group president Willy Q. Tee Ten hold a Shell station replica to symbolize partnership.

Shell fuels now power Autohub Group

PILIPINAS Shell said it entered an agreement with the Autohub Group of Companies making its V-Power fuels the official choice for the brands sold by the vehicle distributor.
The Autohub Group distributes Rolls-Royce, Lotus, Nissan GT-R and Mini, as well as motorcycle brands Vespa, UM and Piaggio Ape, in the Philippines.
Signing the agreement were Pilipinas Shell president and CEO Cesar G. Romero, Pilipinas Shell vice-president for retail Anthony Lawrence Yam, Autohub Group president Willy Q. Tee Ten, and Autohub Group of Companies vice-president for marketing and PR Norweijann Cruz.
Purchases made from the Autohub Group will now include vouchers for Shell fuels, Shell Select and Deli2Go, as well as a motorist’s guidebook containing car maintenance and travel tips.

The shift to motorcycles isn’t limited to the masses

Based on figures available from the Land Transportation Office, motorcycles sales are going through the roof — quite expected considering their relative affordability, the horrible state of our public transportation, and the ever-worsening traffic situation in Metro Manila and similar city centers in the provinces. According to LTO records, there were a total of 1,408,835 brand-new motorcycles registered in the country in 2015, 1,572,322 in 2016 and a whopping 2,006,954 in 2017. And since 2018 isn’t over yet, the agency can only provide digits for the first six months of the year. Assuming the report is accurate, there were 1,093,044 new motorbikes registered from January to June this year — which means 2018 is very much on track to surpass 2017.
Now, many of us associate motorcycles with the masses. The messengers. The delivery guys. The traffic marshals. The blue-collar workers. These are the people we picture in our minds as enjoying two-wheeled mobility. Even their perceived reckless behavior on the road has been tied to ordinary folks. We even coined a term for their kind: kamote riders. These individuals, we’re convinced, are uneducated, undisciplined members of the motoring community.
Whatever makes us feel better behind the wheel of our cars, I guess.
But this notion can’t be farther from the truth. While it’s true that countless motorcyclists in the Philippines do belong to the lower rungs of our socio-economic strata, a good number of them are also moneyed dudes who ride either as a hobby or as a serious alternative to their slow-moving automobiles. And they’re growing in head count.
This realization struck me last Sunday, when I went to San Fernando, Pampanga, to attend BMW Philippines’ launch of two motorcycle models: the R1250 GS sport bike and the C400 X midsize scooter. The parking lot leading to the Laus Group Event Center was populated by hundreds of high-end BMW and Ducati motorcycles obviously owned by loaded riders capable of purchasing the latest offerings from Motorrad.
The event was particularly telling to me as this was my first time to get invited to a major (and out-of-town) motorcycle launch by BMW. I had always looked at the motorcycle beat as distinctly separate from the main automotive media pack. But the German automaker is apparently bent on tearing down the dividing wall between the two starting with last Sunday’s breakfast gathering.
“We are now trying to reach a much bigger market for motorcycles, and we are starting this by reaching out to motoring journalists who cover cars,” BMW Philippines president Adrian Spencer Y. Yu told me, as though needing to justify the inconvenience they had inflicted on me. “I think we’re the first motorcycle company to do this.”
BMW Motorrad director Gil Balderas patiently made me understand why the local distributor is suddenly going all out with its motorcycle offensive. In 2015, BMW sold 191 two-wheelers in our market. That total jumped to 280 units in 2016, and then to a record 470 units in 2017. From January to November this year, BMW moved a total of 697 motorbikes. With one more selling month to go, 2018 is looking like a blockbuster year for BMW motorcycles in our territory.
And so the importer wants to strike while the iron is hot. Hence the arrival of the affordable C400 X, a P450,000 scooter that is seen to coax a lot of wealthy car owners into ditching their sedans and SUVs for a quicker and more convenient way through traffic. With a 350cc single-cylinder, four-stroke engine (34hp and 35Nm), this urban transporter isn’t allowed on the expressway, but it’s plenty good enough for inner-city errands.
Judging by the crowd’s reaction to the unveiling, this scooter will sell like hotcakes, further padding motorcycle stats on LTO registration documents. It should also help change the way we perceive scooters and the people who use them. As a BMW executive shared with me, the brand’s motorcycle customers actually splurge more than its car customers during overseas incentive trips. So the next time you see a motorcycle rolling to a stop next to your car at an intersection, try not to sneer and be dismissive of its presence. Its owner likely has more cash than you’ll ever make in your lifetime. Assuming the motorbike is a BMW, that is.

The Ruined Table

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PHL stocks rebound as investors pick up bargains

LOCAL SHARES recovered on Tuesday as investors hunted for bargains following the market’s recent decline.
The bellwether Philippine Stock Exchange index (PSEi) went up 1.4% or 102.87 points to close at 7,451.08 yesterday versus the previous session’s 7,348.21. The broader all-shares index was also up by 0.84% or 37.59 points to 4,478.73.
“Our index ended up today as investors hunt for bargains after the PSEi fell for three days,” Jervin S. de Celis, equity trader at Timson Securities, Inc. said in a message on Tuesday.
“Foreigners, however, are net sellers…as they remain cautious due to the renewed tension between US and China over the arrest of Huawei’s [chief finance officer] and China’s ban of iPhone sales after granting Qualcomm an injunction against Apple,” he added.
Foreign selling was logged at P326.16 million on Tuesday, a reversal of Monday’s net buying worth P3.96 billion.
Huawei’s Chief Finance Officer Meng Wanzhou was arrested by Canadian authorities last week after allegedly violating trade sanctions against Iran.
Meanwhile, a Chinese court has ordered a sales ban of some older Apple, Inc. iPhone models in China for violating two patents of chipmaker Qualcomm, Inc. though intellectual property lawyers said enforcement of the ban was likely still a distant threat.
On the other hand, for Luis A. Limlingan, managing director at Regina Capital Development Corp. said in a text message that shares “staged a rally with the Brexit postponed and US stocks recovering from an early rout.”
Wall Street ended Monday’s volatile session slightly higher with help from technology stocks although bank stocks tumbled and uncertainty over Britain’s exit from the European Union kept investors on edge about global growth.
The Dow Jones Industrial Average rose 34.31 points or 0.14% to 24,423.26; the S&P 500 gained 4.64 points or 0.18% to 2,637.72; and the Nasdaq Composite added 51.27 points or 0.74% to 7,020.52.
Back home, majority of sector counters ended higher, led by holding firms which was up by 1.96% or 139.83 points to close at 7,275.80. Property rose 1.86% or 67.22 points to 3,667.62; industrials went up 0.99% or 106.78 points to 10,826.11; and financials gained 0.49% or 8.67 points to end at 1,775.66.
On the other hand, services went down 0.46% or 6.6 points to 1,401.07 and mining and oil dropped 0.07% or 6.44 points to 8,311.16.
Some 551.63 million shares valued at P4.72 billion switched hands yesterday, sinking from Monday’s P14.84-billion value turnover. Advancers beat decliners, 106 to 75, while 53 names remained unchanged.
“I assume the index may still go up [on Wednesday] as market participants try to retest the 7,500-7,600 resistance area. This level was also a former key support level from April to June and in the middle of the month of August… We probably need more positive catalysts to push our market higher,” Timson Securities’ Mr. De Celis said. — VMPG with Reuters

Peso inches up vs dollar

THE PESO strengthened slightly versus the dollar even as the country posted its widest trade deficit in October.
The local currency closed Tuesday’s session at P52.77 against the greenback, three centavos stronger than the P52.80-per-dollar finish on Monday.
The peso opened the session weaker at P52.83 per dollar, reaching an intraday low of P52.91. Meanwhile, its best showing stood at P52.76 versus the greenback.
Dollars traded grew to $906.85 million from the $603.12 million that switched hands the previous day.
A foreign exchange trader said the peso strengthened a tad versus the dollar even as the latest trade balance figures showed a wider deficit in October.
According to the Philippine Statistics Authority, the country’s import bill grew 21.4% to $10.3 billion in October, outpacing the 3.3% growth in exports, which stood at $6.1 billion.
This pushed the country’s trade deficit to widen to $4.21 billion from the previous month’s $3.92 billion.
“The trade balance data is actually negative for the Philippine peso, but I think there’s some correction at the P52.90 level due to technical views only,” the trader said in a phone interview.
Nicholas Antonio T. Mapa, economist at ING Bank NV-Manila, explained that capital imports and raw material growth are “not expected to slow down in the near term,” as the country continues to bring in infrastructure-related materials in line with the government’s “Build, Build, Build” push.
Michael L. Ricafort, economist at Rizal Commercial Banking Corp., attributed the slight peso appreciation to a lower dollar against major global currencies after the latest decline in the 10-year US government bond yields to a new three-month low and softer US jobs data, among others.
“Peso also stronger ahead of the seasonal surge in the conversion of [overseas] remittances…especially one to two weeks before Christmas for yuletide-related spending,” Mr. Ricafort said in a text message.
For today, the trader expects the peso to move between P52.70 and P52.90, while another trader gave a P52.65-P52.85 range. — K.A.N. Vidal

Stronger together: Embracing the hard-of-hearing in your business

How inclusive is the Philippine workforce? When it comes to persons with disabilities (PWDs), specifically the hard-of-hearing community, that becomes a complicated question to answer.
The deaf are a part of the Philippine workforce, and the law recognizes this. Republic Act 7277 states that the private sector plays a role in promoting the welfare of Persons with Disabilities (PWDs) and requires PWDs be given equal opportunities for employment. Republic Act 10524 calls businesses to reserve at least one percent of their positions for PWDs.
However, there’s still much to be done in turning legislation into reality. According to the Philippine Statistics Authority, there are 26.8 million unemployed Filipinos, with a large number being PWDs. To that end, some firms — like Helping Hands Cafe and Fruitas — have taken it upon themselves to jumpstart the integration of the deaf in the workplace.

Lending a hand

Since opening Helping Hands Cafe in 2015, Lorie Anthony Ortiaga committed his business to hiring and empowering deaf workers. A former teacher handling 30 children with disabilities, Ortiaga was forced to retire in 2015 when he suffered a mild heart attack and was diagnosed with lateral ischemia.
Refusing to end his advocacy of helping PWDs, he opened and managed the cafe’s first branch along Taft Avenue. When the branch closed, Cez Diamse, a DLSU alumnae who shared Ortiaga’s advocacy, took over as the company’s president. Since then, Diamse expanded the business with two more branches — in Makati and in Ortiaga’s native Antique.
Since many of the deaf workers at Helping Hands had never worked in food service before joining the cafe’s team, more experienced staff members train them on the job.
Joshua Mariveles, barista and cook, said it was initially a challenge interacting with his deaf co-workers. “At first, we had no idea on how to use sign language, so we couldn’t communicate properly,” he said. But with a little patience on the part of his deaf teachers, he eventually picked up signing the alphabet, and later on communicating through sign language.
In return, Mariveles and the other, more experienced employees taught them the ins and outs of cooking and serving, which they took on with gusto.  “They asked us to teach them when there’s free time,” Mariveles said. “They watched at first, then then they tried to do what they just saw.” He shared how one of their cooks — a deaf employee — started off silently observing, and now helps develop entire recipes for the cafe.

Shaking up the status quo

And while Helping Hands Cafe began with the advocacy at its core, Fruitas Holdings, Inc.’s support of the PWD community began by chance — with a resume passed in 2007 by an applicant with a mental disability. The applicant was deemed qualified, and subsequently hired. Since then, Fruitas has gone on to employ 41 employees with disabilities — 32 of which are deaf and hard-of-hearing — in both corporate and service departments.
“We just treated everyone like everyone else, and we saw that they do have the potential,” said Teresa Trujillo, Fruitas’ human resources director.  “Even our evaluation processes didn’t change, and they passed the evaluation.”
The team, however, admits that there are internal challenges to an otherwise fantastic practice. Some of their store managers, for example, hesitate to hire deaf employees because of the glaring communication gap it introduces to their team.
So, to address these concerns, the company decided to bridge it.
In August, they partnered with Unilab Foundation to launch a series of workshops on basic sign language and workplace inclusivity and sensitivity. Immediate superiors of employees with disabilities are required to participate and help cascade learnings to the rest of their team.
Training Manager Chermaine Laceda said this is par for the course in creating an inclusive workplace. Just as they adjust to communicate with their hearing co-workers, “we also need to step-up our skills to communicate with them,” she said.

‘Just like us’

Fully embracing PWDs in the workplace opens up many new possibilities for its employees. “There’s more collaboration, more opinions are shared, and you see different perspectives,” Laceda said. “This makes the company’s culture more sustainable.”
“They’re just like us,” Mariveles said. “They just can’t communicate with us verbally. But everything that a ‘normal’ person can do, they can do.”

Merchandise trade deficit widens further in October

By Jochebed B. Gonzales, Senior Researcher
The country’s merchandise trade deficit continue to widen in October as imports grew faster than exports, the government reported this morning.
Preliminary data from the Philippine Statistics Authority showed the October trade deficit at $4.212 billion, bigger compared to $3.723 billion in September and $2.585 billion in October last year.
Import payments, which outpaced exports, rose 21.4% year on year to $10.320 billion. Its growth eased from September’s 26.1% but was faster compared 17% growth recorded a year ago.
On the other hand, exports receipts rose 3.3% year on year to $6.108 billion, accelerating from 0.8% growth in September but slower compared to 17.4% recorded in October 2017.
In the first 10 months of the year, exports were down 1.2% to $57.067 billion, as opposed to imports which grew 16.8% to $90.985 billion. This brought the country’s year to date trade deficit to $33.918 billion, bigger compared to $20.128 billion in the same period a year ago.

‘Management excellence’ according to Fernando Zobel de Ayala

In the world of business, there are few forces that are more powerful than a united group of people who passionately believe in creating something great beyond corporate profit.

This collaborative spirit to effect transformative social change and achieve shared values is at the core of the entrepreneurial vision of Fernando Zobel de Ayala, this year’s MAP Management Man of the Year.

In tandem with brother Jaime Augusto, and guided by the mentorship of their father Jaime Zobel (both previous MAP Management Man of the Year winners), Fernando Zobel de Ayala ushered in a new era in the nearly 200-year history of the Ayala group by changing how the conglomerate understands and realizes profit and business gains.

Agents of sustainable change

Ayala is a pioneer in bringing the concepts of corporate social responsibility and sustainable development straight into the boardrooms of top Philippine corporations.

The company’s development arm, Ayala Foundation, operating since the 1960s, is not only one of the first corporate foundations in the Philippines. It is also one of the first to channel significant percentages of profit into developmental concerns, such as inclusive access to quality education, livelihood programs, and the best in Philippine art and culture through the Ayala Museum.

In the 2000s, Ayala companies were among the first in the region to voluntarily subscribe to sustainability reporting. The group was also one of the first large-scale corporate supporters of the government’s public-private partnership programs, resulting into the establishment of business platforms that directly address public-sector challenges.

Their vision and daring enabled the creation of Manila Water, considered by many as one of the most successful privatization programs of a water utility in the world. This same vision is now also transforming Ayala Land — long renowned for high-end property development — into a developer for all income groups, and a staunch supporter of sustainable city planning and sustainable tourism.

In 2016, Ayala became the first Philippine company to create an internal business framework that aligns overall business strategies to Agenda 2030 and its 17 Sustainable Development Goals. The company has since become a founding member of the UN Global Compact Network and a significant private-sector contributor to development cooperation channels.

Well-rounded approach

According to the Management Association of the Philippines (MAP), they are bestowing their Man of the Year prize on Mr. Zobel not only for steering the Ayala Group into heightened profitability, corporate governance, and overall management excellence.

Beyond the boardroom and bottom line, the MAP is recognizing Mr. Zobel for his active and longstanding involvement in nonprofits and artistic programs. This is evident in his “support and leadership in nation-building organizations, such as Centex (education), Habitat for Humanity (housing), HERO Foundation (fallen soldiers), Caritas (church), Asia Society (culture) and National Museum of the Philippines (arts).”

This well-rounded approach to managerial excellence appears to be the distinguishing mark of Mr. Zobel’s leadership, as he continues to bring the Ayala group into the future by integrating development models and other fresh strategies into traditional business approaches.

“[At Ayala,] we would like to be defined as a business group with a strong commitment to improving the lives of the communities we serve. With our group’s unique attributes in diversity, scale, and brand equity, we believe we can have a meaningful, positive impact on society and our country.”

Secret to Ayala’s success

When asked about the enduring success of the Ayala group, Mr. Zobel reveals that a major factor in the company’s longevity is not business cunning or a complicated mix of entrepreneurial tactics. It is all about nation-building.

“I believe a critical factor in Ayala’s success is the challenge we impose on ourselves to remain relevant not only to our stakeholders, but more importantly to the country,” he said. “We constantly strive to remain dynamic and seek new ways to evolve in line with the development of our country and the people we serve. We develop businesses to participate in the broader national development agenda.”

By merging social and environmental development indicators into managerial results frameworks, the Ayala group has now become a leader in sustainable development in the region.

In recent years, the group continues to surprise many by entering into business lines that appear to be well outside the sphere of the company’s interests. The group, for instance, has recently claimed major stakes in education (University of Nueva Caceres and National Teacher’s College), health care (Generika and FamilyDOC), and transport infrastructure (LRT-1 and Muntinlupa-Cavite Expressway), among various other shared-value and socially inclusive business solutions to development problems.

“We would like to be defined as a business group with a strong commitment to improving the lives of the communities we serve. With our group’s unique attributes in diversity, scale, and brand equity, we believe we can have a meaningful, positive impact on society and our country,” he said.

Man of the Year 2018

According to the MAP, the conferment of the MAP Management Man of the Year award follows a thorough and stringent selection process. The prize has been running for around 50 years now and it has only been conferred 42 times to now iconic names in business and government.

Reimagining a heritage brand in the face of change

An Interview with InLife
Executive Chairman
Nina D. Aguas
Insular Life, an iconic Filipino brand, has entered its 108th year, and with it a refreshed look. Why did you see the need to change your corporate logo?
Even before I joined Insular Life, I had great respect for this Filipino company. When I became part of the Insular family in 2016 as its CEO, not only did I confirm its financial strength, but I was pleasantly surprised to find out that it has a young employee force, it is well advanced in its policy administration system, it has made inroads in the digital platform, its turnaround time for benefit payments is among the best (if not the best) in the industry, there is work-life balance, and a culture of respect for the individual.
As Insular Life is strong and durable, this gave us the cushion to pivot, introduce best practices, innovate and transform—something that we cannot do if the company were not standing on solid foundations. And so, we immediately created the road map for Insular Life’s dual transformation, that will enable us to revitalize today, while developing the business model of the future. In two short years, we have made headways in transforming our company into the high performing organization that we aim to be.
Thus, we deemed it necessary that as part of this transformation ambition, we refresh our brand identity, starting with the name: InLife. The refreshed brand will represent the new realities of our workforce, our products and services, and our distribution channels. It will represent our dynamism and capability to deliver insurance and financial solutions, as appropriate for our market and in a manner that is most convenient for them.
The new corporate logo uses vibrant colors, but it still uses the eagle as your icon. Can you share the story behind this?
Yes, we retained the Philippine Eagle as our icon because it is our connection to our Filipino heritage, as well as to our corporate heritage, as the eagle was the very first symbol used when the company was established in 1910. We took the creative license to make a vector image of the eagle to make it look younger and friendlier. The eagle with its keen eyes symbolizes courage, strength, and immortality. It is also considered the “King of the Skies”and messenger of the higher gods. With these attributes, the eagle became a symbol of power and strength in ancient Rome.
This is how we will project ourselves to the world out there, as a dependable and trusted brand, who has been consistently evolving to be in step with the changing needs of our market, and bold enough to take the lead in digital transformation, yet retaining the warmth and care that only a truly Filipino company can give.
You also have a new tagline: A Lifetime for Good. How does that relate to the company?
Together with the refreshed logo is the tagline: A Lifetime for Good. We define ourselves by the good we bring to our policyholders, the bigger communities, and our country. As a life insurance company, we have products and services which inherently bring good to the individual and his/her family. As a Filipino institution that has been here for over a century, we have done good to the greater community, and the country, beyond business considerations. Thus, through our industry, our products and services, our innovation, and transformation, we are and will be bringing the good today, and in the future… for life. Thus, our tagline is not a marketing spiel. Our tagline communicates the clarity of who we are and our purpose as an institution, affirming our mission, our commitment, and vision.
Where do you want to take InLife 5 years from now?
Because Insular Life is the “Most Trusted Brand” in the life insurance industry, a distinction we carry proud and tall, it is incumbent on all of us to secure the organization’s future decades from now. The attributes of trustworthiness and credibility, quality, value, understanding customer needs, innovation, and social responsibility are intangible but powerful measures that we will continue to pursue and live by.
The coming years will continue to be challenging given the many external developments, both here and abroad, that are still unfolding and will surely influence this “new normal” space that we operate in. Transformation and allowing ourselves to be disrupted would be critical. We need to keep our focus on the strategic priorities that we laid out for ourselves.
Subsequently, all initiatives are directed towards providing customer excellence by putting their perspective first in our decisions and operational capability. With even greater resolve, we recognize the changing dynamics of customer engagement and their new expectations.
How do you address the new challenges in running a life insurance business in the face of all the technological innovations and disruptions in the business landscape?
We are standing on the brink of the great cycle of human progress—the world is rapidly changing through artificial intelligence, the internet of things, the collaborative of commons; digital disruption is upon us, so is global climate change. Change, they say, can be done unto you or we can harness it. We at InLife choose the latter.
What we call the fourth industrial revolution has come upon us in a significant way and therefore we must transform ourselves and our business models from how we operate and run our businesses, taking these from our clients’ perspective and point of view to our workforce and employees. The changes present both a challenge and an opportunity.
We need to understand the world from our clients’ lenses and their preferred way of servicing and communicating with us. For these reasons, the nature of the organization must adapt to the changes and the disruption that are taking place in order to remain relevant. This is no longer a matter of choice as this has reached every industry and organization in both the public and private sectors.
The complexity of looking at future capabilities of the workforce as well as looking at the current workforce and their existing competencies will be as interesting as it will be demanding. We now must recognize a multi-generational client base and workforce that is digitally connected all the time for example, and manage the transformation of our business model to cater
to this reality.
Logo Transformation:
On our 108th year, we’re committed to face the challenges of a digital world. And it starts with how we present ourselves.
Our eagle is no longer confined within its borders, dramatizing an expansion in our reach across horizons as we evolve to become a fully digitized company.
The eagle’s new look is inspired by the intersecting circles of The Seed of Life, a universal symbol of creation and new beginnings.
Bolder fonts mirror the bold direction our company is moving towards as it navigates through the digital age.
Gradients symbolize dynamism, showing our flexibility to move with the times.
Blue represents trust & dependability
Orange emulates warmth & care

17th Congress clock ticks on tax reform

By Elijah J. C. Tubayan Reporter
and Melissa Luz T. Lopez Senior Reporter
TIME IS RUNNING OUT on a second tax reform package to cut corporate income tax rates and streamline fiscal incentives under the current Congress, which is about to adjourn for its Dec. 15-Jan. 13 Christmas break.
While session will resume Jan. 14-Feb.8 and on May 20-June 7, the Finance department had hoped for year-end approval in the House of Representatives and the Senate of all remaining tax reforms — after Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act (TRAIN), was enacted about a year ago and took effect in January — since lawmakers are expected to be increasingly distracted by political campaign for the May 2019 mid-term elections.
The proposed second tax reform, under the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) bill bagged final House approval on Sept. 10 and is now with the Senate Ways and Means committee that has had just one public hearing so far. The Senate Web site shows there will be no hearings on this reform during the upcoming break.
“That’s too sad,” Finance Secretary Carlos G. Dominguez III told reporters on Monday at the Finance department headquarters when asked for a reaction.
“We will discuss again with them and see how we can push it… they still have to look at the martial law, they haven’t finished the budget,” he noted.
“Well, we have to try again next year, I guess.”
President Rodrigo R. Duterte said in his State of the Nation Address in July that he hoped to sign the remaining tax reforms before the year ends, noting: “It is near the elections.”
The Finance department submitted its proposals for the remaining reforms in late July.
WORLD BANK HOPES
For the World Bank, the Philippines should persevere with tax reform despite dimming chances for the passage of succeeding tax packages in Congress, citing the need to rake in more revenues.
“On revenue mobilization, the Philippines has passed one phase of far-reaching tax reform which is very encouraging. Our suggestion would be that the program for tax reform to continue. It’s one that is well worth considering going forward,” Sudhir Shetty, World Bank chief economist for East Asia and the Pacific, said in a livestreamed media briefing yesterday.
The multilateral lender said economies in East Asia and the Pacific should shift gears towards “outward-oriented” growth and sound economic governance, which is done by taking measures to improve economic competitiveness and boost domestic revenues at a time of easing global trade.
“Governments in developing East Asia will need not only to raise more revenue but also to spend that revenue more effectively,” the World Bank report read, noting that most economies are hampered by low tax collection, complex tax codes with many exemptions, weak tax administration, narrow tax bases and high cost of tax compliance.
The first tranche of the government’s comprehensive tax reform program kicked in on Jan. 1, from which the state intends to raise around P82.3 billion in additional revenues. TRAIN reduced personal income taxes but imposed additional taxes for fuel, cars, mineral and coal, sugary drinks and cosmetic surgery.
Revenue effort rose to 16.9% annually in the nine months to September, higher than the 15.9% rate recorded in the same period last year and the 16.1% target for the full year, according to the Department of Finance.
Together with up to four more tax packages expected to be passed into law, the proportion of revenues to gross domestic product is expected to rise to 17.5% by 2022, coming from this year’s 16.3%.
The World Bank economist said the government should not stop here, as the country needs more funding to support ambitious spending targets.
“By definition, this is not going to happen in one year, it will take some time. But the direction it is going is the right direction because it seeks to broaden the tax base and improve revenue modernization,” Mr. Shetty added.
Pending Senate approval is the second tax reform package that will gradually reduce the corporate income tax rate to 20% by 2029 from the current 30% by two percentage points every other year starting 2021. This will come with an overhaul for local tax incentives to replace various perks granted by investment promotion agencies. Fiscal incentives will be harmonized into a single set, limited to industries identified in a Strategic Investments Priority Plan and benefitting businesses will be subject to performance benchmarks.
Currently, income tax holidays can run as long as nine years, with a five percent tax on gross income earned in lieu of all other taxes that can be extended perpetually.
Changes also need to be installed to improve trade, Mr. Shetty added, largely to improve logistics and shipping within the Philippines.
Across the region, economies also need to consider opening up the services sector at a time of slowing global trade growth, especially as short-term trade tensions between China and the United States are “clearly weighing down” prospects for expansion this year.
External trade has been a drag to economic growth so far this year as exports remain in a slump while imports continue to grow at a double-digit pace.
NO MORE TIME
The Senate leadership, however, said that the TRABAHO bill cannot meet the timetable.
“Not possible. Time constraints,” Senate President Vicente C. Sotto III said in a mobile phone message.
Asked if the chamber will push at least this second tax reform before the 17th Congress ends, Mr. Sotto replied: “I leave it to the Ways and Means committee.”
Senate Ways and Means committee Chairman Juan Edgardo M. Angara, meanwhile, said: “We still haven’t finished the national budget that takes precedence over any and all bills still in committee.”
A proposed tax amnesty program, meanwhile, is closer to enactment, with a House leader saying that it can be ratified by both chambers this week and submitted to Mr. Duterte for signing into law before yearend.
“Bicam[eral conference committee] report will be signed today so we can ratify it before session adjourns,” House Ways and Means committee Chairperson Rep. Estrellita B. Suansing of Nueva Ecija’s 1st District said in a mobile phone message.
The bill would slap an amnesty charge equivalent to a portion of applicants’ outstanding unpaid taxes in exchange for immunity from civil, criminal and administrative penalties. The bill covers amnesty on unpaid estate taxes, general taxes and delinquencies prior to 2017, and is targeted to be implemented next year.
The other remaining planned tax reforms — higher excise taxes on mineral, alcohol and tobacco products, harmonization of property valuation, as well as streamlining of capital income and financial taxes — have also been approved by the House and are now up for Senate deliberation.

Meralco bills rise for 2nd month

MANILA Electric Co. (Meralco) announced on Monday a P0.0902 per kilowatt-hour (kWh) hike in December’s overall electricity rate to P10.1803/kWh, marking the second straight month of increase, citing a rise in generation charge from power supply contracts.
In a statement, Meralco said the “slight upward adjustment” from P10.0901/kWh in November would result in an increase of around P18 in the bill of a typical household using 200 kWh. For those consuming 300 kWh, 400 kWh and 500 kWh, the corresponding increases would be P27.06, P36.08 and P45.1, respectively.
“Since April this year, electricity rates registered a net decrease of P0.37/kWh,” the distribution utility said.
It said the higher charges from power supply agreements (PSAs) and independent power producers (IPP) pulled up the generation charge.
“From P5.2725/kWh last month, generation charge for December went up to P5.3303/kWh, an increase of P0.0578/kWh,” the company said.
The utility attributed the increase largely to the rise in cost of power from PSAs by P0.5167/kWh and IPPs by P0.1783/kWh.
It said that, despite the stronger peso, these charges rose in December due to lower average plant dispatch. It cited the scheduled maintenance outage of the San Lorenzo plant’s module 50 last Oct. 28-Nov. 7 and its module 60 on Oct. 28-Nov. 8.
“The shares of PSAs and IPPs purchases to Meralco’s total requirement this month were 42% and 38%, respectively,” the company said.
In contrast, the cost of power from the Wholesale Electricity Spot Market (WESM) went down by P1.0268/kWh due to improvement in Luzon’s power supply situation. This came at a time when demand for power in November was lower. Meralco said WESM provided 20% of its supply needs.
Meanwhile, transmission charge of residential customers went up slightly by P0.0169/ kWh, while taxes and other charges also rose by P0.0155/kWh.
“Meralco’s distribution, supply, and metering charges… have remained unchanged for 41 months, after these registered reductions in July 2015,” the company said in its press release, reiterating that it does not earn from pass-through charges such as the generation and transmission charges.
Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines.
Taxes and other public policy charges, including the feed-in tariff allowance rate, are remitted to the government. — V. V. Saulon

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