Suzuki: Preview of all-new Jimny mini off-roader steals show

October 30, 2018 | 8:09 pm

Text and photos by Kap Maceda Aguila

WITH the tantalizing unveiling of multiple units of a much-awaited mini 4×4 SUV badge, one could say that Suzuki Philippines (SPH) arguably annexed the 7^th Philippine International Motor Show (PIMS) crown of popularity. Its scheduled opening program at the PIMS last week was an unmitigated hit — packed with people who attended the revelation that eventually climaxed with a rousing musical number of a popular rock star.
This SUV is the fourth-generation Jimny, a model born in 1970. According to Suzuki, 2.85 million units of the Jimny (and its various names) have been sold in 194 countries and regions as of March this year. Production of the latest iteration commenced in Japan last May, and after official images made it online last June, a lot of Filipino car aficionados and fans of the marque/nameplate had clamored for the model’s release here.
Suzuki Philippines (SPH) saw an opportunity in the PIMS to further whet (and perhaps, test) the local market’s appetite. Concurred SPH vice president and general manager for automobile Shuzo Hoshikura to BusinessWorld; “We were able to show our new Jimny last July 2018 in Japan, [and] once our mother company started [revealing] it to our media friends abroad, many people started asking about our Jimny in the Philippines. [Showing] the Jimny in this motor show was not part of our original plan, but we decided on it anyway because the PIMS is a big opportunity for us to bring several units into the Philippines.”
RETRO STYLING
The all-new Jimny is marked by fun, retro styling meant to match its adventurous capabilities. Its fascia features the return of familiar round headlamps — now equipped with washers as standard for its LED beams. The angled bumpers provide more wheel clearance in aid of climbing ability, while a drip rail prevents water from dripping off the sides of the roof and into the driver’s and passenger’s windows. Inside, the Jimny boasts significant updates as well.
As a proper 4×4 vehicle, the Jimny has a “robust ladder frame, three ample body angles, three-link rigid axle suspensions with coil springs and 4WD with a low-range transfer gear.” Approach, break-over, and departure angles are 37, 28, and 49 degrees, respectively, while ground clearance is 210 millimeters. Motivation is provided by a 1.5-liter engine delivering 100hp and 130Nm to move the 1,435-kilogram (gross weight) vehicle.
SPH has announced a tentative pricing of P1.1 million, but it is still unclear if the tag refers to the five-speed manual transmission variant or the four-speed automatic. The Jimny will be made available in the first half of 2019.
BEARISH
As for unit reservations, Mr. Hoshikura confirmed that Suzuki’s 71 dealerships and authorized outlets are accepting queuing customers. “We want to ask our customer to visit our showrooms to see the actual Jimny. Our dealer can accept reservations. Of course, we will be able to consolidate all information nationwide about these reservations, meaning we are able to know how many customers want to get the Jimny. By using this information, we will talk with our manufacturer that we have customers,” said the executive.
He observed that the local market “is not so aggressive… because of TRAIN [Tax Reform and Inclusion excise tax changes] and the fuel price hike,” and is conservative about sales expectations for next year. However, there is a bright spot in the generally bearish market. “[SPH] performance has been opposite; [the] industry is down but we are still growing, meaning our market in the Philippines may start thinking that, even with a small car, we can go anywhere.”
On the back of Suzuki’s small cars such as the Dzire and Swift, Mr. Hoshikura is counting on leveraging the impact of high fuel prices. “We hope our autos have a chance at improved sales in the Philippines even next year.”
By the way, the rock star mentioned at the outset is Bamboo, who sang, among other songs, his hit “Hallelujah,” — exactly what Jimny fans must have exclaimed at the reveal of the new 4×4.

MITSUBISHI: e-Evolution Concept heralds brand’s focus on EV, AI, SUVs

October 30, 2018 | 8:07 pm

FOR Mitsubishi Motors, the future rests on electric mobility, artificial intelligence and the development of SUVs. And capturing these areas in one halo model is the car maker’s e-Evolution Concept, which it unveiled at the Tokyo Motor Show in October 2017. At PIMS, this concept model continues to highlight what Mitsubishi calls its “new brand strategy” in which the strengths of an electric-powered SUV is fused with new connected mobility systems.
Two of these areas are actually nothing new for Mitsubishi — it was among the first to build a modern, more family car-like SUV (its Pajero of 1982) and also a mass-produced full-electric car (its i-MiEV of 2009). In 2013 the company combined the two systems in the Outlander PHEV, a plug-in hybrid crossover.
Locally, Mitsubishi Motors Philippines Corporation has been actively pursuing through partnerships with government and other organizations for the eventual mainstream use of EVs.
The e-Evolution is laying the groundwork for this (not only in the Philippines but globally as well). Billed as an “all-electric, high-performance SUV,” the e-Evolution is intended to integrate new connected mobility systems, including on-board and cloud computing capabilities.

Mitsubishi 2 — Mitsubishi e-Evolution Concept captures brand’s new strategy in which the strengths of an electric-powered SUV is fused with connected mobility systems. — *ALL PHOTOS: BRIAN M. AFUANG*

It is propelled by electric motors juiced by high-capacity batteries, whose placement — in the middle, under the floor — lowers the vehicle’s center of gravity, helping in making the e-Evolution more stable. Because it’s an SUV, it gets a four-wheel drive system consisting of an electric motor that drives the front wheels, and two others for each of the rear wheels. The rear motors are paired to an active yaw control that electronically allocates the torque to the wheel that has more traction underneath. Mitsubishi’s Super All-Wheel Control vehicle dynamic control system, used on some of the brand’s existing four-wheel drive models, also finds its way to the concept vehicle.
An AI system augments the e-Evolution’s driver’s skills via an array of sensors that instantly read changes in road and traffic conditions, as well as the driver’s intent, to maximize vehicle performance. The car’s AI can also “coach” the driver to improve his or her skills, or even form a training program that communicates through voice dialogue and a large dashboard display.
Significantly, the e-Evolution Concept has already served, to varying degrees, its role as a bank of inspiration for three current Mitsubishi models — the latest Outlander PHEV, Eclipse Cross crossover and Xpander.
Along with the concept car, Mitsubshi at PIMS displayed (and offered up for test-drives) the Xpander, Montero Sport, Strada and the Mirage G4. — BMA

NISSAN: New 370Z, Juke add to Nismo lineup; heavily modified Navara teased, too

October 30, 2018 | 8:05 pm

“Welcome to the Nissan Motor Show, er, Philippine International Motor Show,” jested Nissan Philippines, Inc. president Ramesh Narasimhan as he stood in the middle of the brand’s exhibit floor — the most expansive at the event.
The executive had a couple of other reasons to crow about; among those displayed at the Nissan booth were the 370Z Nismo and Juke Nismo, both models set to be sold locally in late 2019. The high-performance 370Z and Juke will join in Nissan Philippines’ lineup the legendary GT-R.
Nismo stands for Nissan Motorsports (established in 1984), which serves as Nissan’s works division. It is the outfit from where the brand’s special road cars, race machines and everything in between that’s related to high performance spring. A Nismo badge tacked on a Nissan road car marks this as an exclusive version. Nismo parts and kit promise looks and athleticism. Nismo builds Nissan’s array of racecars.
“We have definitely seen a lot of interest and positive response to the GT-R Nismo, and we want to reach more Filipinos looking for more excitement in their cars through this latest offering of performance vehicles,” Mr. Narasimhan said.
Marking out the 370Z Nismo are its GTR-inspired aero kit that not only make the car look more aggressive, but also increases down-force in the front and rear. Powering the car is a 3.7-liter V6 engine that, with the help of variable valve event and lift control, makes 350hp and 374Nm. It has tuned independent suspension enhanced by a strut tower brace and a pair of performance dampers.
The Juke Nismo also gets the division’s signature aerodynamic pieces, as well as Nissan’s I-CON, which offers a selection of driving modes (economy to sport).
“Nismo makes it possible for drivers to experience the ultimate Nissan performance every day,” said Hiroshi Tamura, chief product specialist of Nismo, and who has developed the GT-R from the model’s R33 generation. “It’s everything from functional design to race-proven engineering that brings back the thrill of the drive.”
With Mr. Tamura presenting the 370Z and Juke Nismo, his greatest creation to date could not have been someplace else — and it wasn’t. Displayed along the newly announced models was the GT-R Nismo, which Nissan had previewed locally earlier this year.
As commanding as the Nismo trio were, the Nissan Navara Warrior X Special Edition also drew the attention of show visitors. The concept truck, according to Nissan, “unlocks the possibilities offered by the Navara’s overall versatility and timeless design.” It has a custom front and rear design, upgraded suspension, higher stance, 20-inch alloy wheels, and a special leather interior. No word yet whether this Navara variant will make it to Nissan showrooms.
But, then, who would have thought the Nismo models would? — BMA

A postscript to the 2018 Philippine International Motor Show

October 30, 2018 | 8:03 pm

Was it just me or was the seventh edition of the Philippine International Motor Show held from October 24 to 28 a bit underwhelming? Was I just jaded or did the biennial automotive event have a generally soporific effect? Was I just under the weather on opening day or was the main exhibition hall a little too dull?
If I were to rate the show in just one word, I’d say it was tired (dead tired if you want two).
I missed the ribbon-cutting ceremony, but I expected to walk into a heart-thumping gathering of the biggest car companies in the market. This, after all, was organized by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), the largest industry organization whose members include Toyota, Mitsubishi, Nissan, Honda, Mazda, Isuzu, and Suzuki, among others. The most popular Japanese brands in the country, in other words.
And so I don’t think I was being naive by looking forward to a grand celebration of automobiles. Add to this the fact that PIMS is held just once every other year, and you have no choice but to forgive me for assuming the World Trade Center would throb with palpable excitement.
I was wrong.
The moment I walked past the security personnel manning the entrance, I immediately sensed a lack of electricity in the air. Never mind the obvious shortage of visitors relative to the previous editions (or indeed relative to the Manila International Auto Show, or MIAS). When walking around a car show, I actually prefer a sparse crowd to a jam-packed room. From a visitor’s perspective, I like the feeling of spaciousness versus that of suffocation. If MIAS were SM City, PIMS would be Estancia. And my kind of mall is the latter, not the former.
So when I give this year’s PIMS a less-than-satisfactory grade, I’m not referring to the attendance (although a few industry executives did admit to me that PIMS 2018 was truly unexceptional on the basis of turnout alone). When I say the show felt (and looked) tired, I mean exactly that. It seemed like a chore on the part of the car brands. It struck me as an every-other-year obligation among the CAMPI distributors — something that had to be done as opposed to something they wanted to do.
During lunch, I heard more than one person note that the mood was kind of down, and that perhaps it was because industry sales were down. But see, this is exactly why the automakers needed to put on a show — to throw a party so euphoric that people would never even suspect there was something wrong with the market. Save for a couple of brands — the very ones that are performing particularly well sales-wise this year — the average booth vibe was tepid.
Sure, there were some concept cars and a handful of modestly modified vehicles, but the whole place appeared to be nothing more than an assembly of dealers at a regular selling event. The show’s most popular car — the new Suzuki Jimny — provided some amusement. The Nissan Navara Warrior X was a conversation piece. Pocholo Ramirez’s Mazda Miata probably appealed to the sentimental. Beyond them and the curious-looking concept cars from Toyota and Mitsubishi, there was nothing much to see, really. Even the area for aftermarket parts and affiliate products looked thin. I’m not sure if the visitors walked away feeling like they got their money’s worth.
I think I know why MIAS trumps PIMS in terms of fun factor and entertainment value every single time. MIAS is organized by car-loving businessmen who will move heaven and earth to satisfy their customers (so these customers will come back year after year). PIMS, on the other hand, is organized by an industry association that is simply tasked to stage it because it has to. And it shows.
Unsolicited, humble advice? For the eighth edition in 2020, hand over the logistics and the promotion to individuals who understand what car fans want to see in a motor show. Maybe the electricity will come back.

DICT, Kaspersky renew commitment to develop cybersecurity in gov't

October 30, 2018 | 12:40 pm

By Anna Gabriela A. Mogato
The Department of Information and Communications Technology (DICT) and global cybersecurity firm Kaspersky Lab signed another memorandum of understanding (MOU) to improve cybersecurity in the public sector.
In a statement made late Monday, Kaspersky said that the MOU, which was signed during the first Philippine International Cybersecurity Conference last week, further strengthens their commitment to support the country’s national cybersecurity framework.
“With the country’s strong and steady economic growth combined with its highly active online citizens, the steps being taken by the government come at a time when Filipinos need heightened cybersecurity measures the most,” said Yeo Siang Tiong, Kaspersky Lab’s General Manager for Southeast Asia in the same statement.
Under the MOU, both parties will establish a tuition-based training programs for the government, research and competence centers, as well as universities. This seeks to address the gap in IT security skills in the country.
Kaspersky will also support the government’s cybersecurity awareness drive, give assistance in cybercrime investigations, and comply with the transparency measures amid its ongoing Global Transparency Initiative launched last year.
According to Kaspersky Lab’s second-quarter cyberthreat report, the Philippines is the ninth-most attacked country in terms of online threats with around 10.6 million web infections recorded. Out of all the web infections, 39% of these were against individual internet users while 11% of these targeted businesses.
“Our experience at Kaspersky Lab alone shows how a collective approach in battling cybercrime is very effective at demystifying the most complex of cyberthreats and keeping ahead of the cyber criminals,” Kaspersky Lab Asia Pacific Managing Director Stephan Neumeier said.
“With our cybersecurity expertise, we hope to support the Philippines the best way we can as we do with other governments around the world,” he added.
DICT Assistant Secretary Allan Cabanlong in the same statement said that Kaspersky has “been offering invaluable support” by providing new insights and information on cyberthreats.
“We hope that this holistic private-public cooperation will be a fine example of how information and expertise-sharing will be highly beneficial to the public ultimately,” he added.
“We are confident that this partnership will bring forth a positive impact not just on the Philippines’ national cyberdefenses but also on the lives of ordinary Filipino citizens.”

Talking with Ken Hakuta, nephew of Nam June Paik and executor of the artist's estate

October 30, 2018 | 11:20 am

Ken Hakuta talks about Nam June Paik, his “crazy uncle” who is acknowledged as the founder of video art. Leon Gallery International, in collaboration with Gagosian Gallery, is exhibiting 24 works by Paik (1932-2006) in a show titled “Nam June Paik in Manila.” The exhibition features pieces made by Paik between 1983 and 2005, including “One Candle”, “TV Buddha”, and “Bakelite Robot.”
“Nam June Paik in Manila” opens October 22, 2018, at the ground floor of the Corinthian Plaza (121 Paseo de Roxas, Makati). Read the related story: https://www.bworldonline.com/nam-june-paik-and-technology-as-a-canvas/

Banks grow realty risk at slower clip

October 30, 2018 | 12:33 am

BIG BANKS still have room to expand real estate lending as latest exposure levels remain well below the 20% limit set by the Bangko Sentral ng Pilipinas (BSP), with credit growth slowing from a year ago.
Real estate loans and investments accounted for 13% of the portfolio of universal and commercial banks as of end-June — fairly manageable, the central bank said in its status report on the financial system.
Banks’ total exposure to the real estate sector reached P2.139 trillion as of end-June, 11.2% more than P1.924 trillion in the comparable year-ago period. This, however, slowed from the 18.6% credit growth in June 2017.
The BSP said slowing growth of property loans as well as consumer credit was likely the result of higher interest rates following a series of rate hikes that began in May.
The central bank raised benchmark yields by 25 basis points (bp) each in May and June, followed by back-to-back 50bp increases in August and September. The cumulative 150 bp adjustment was meant to curb inflation expectations, at a time that prices have been surging beyond the 2-4% target range for 2018.
“Such tightening of monetary policy and consequent increase in bank lending rates may have contributed to slowdown in growth of real estate and consumer loans,” the BSP said.
The central bank has tightened rules on banks’ real estate exposure as it sought to temper rapid credit growth, which some debt raters have flagged as a possible sign of an overheating economy.
Property loans handed out by big banks accounted for 13% of total approved credit, which the BSP said is comfortably within the 20% limit for such exposure.
The ratio factors in most types of real estate exposure, excluding loans to consumers for housing units and land acquisition, loans to developers building socialized units, loans backed by the Home Guaranty Corp., and loans collateralized by non-risk assets.
To add, results of the real estate stress test (REST) showed that the banking industry will remain on solid footing even if some property loans were to sour. In particular, capital buffers of these big lenders remain well above the BSP’s minimum standards as of end-June.
“[T]he results of the REST and more granular analyses of the real estate exposures of banks similarly revealed that credit exposures to the real estate and household sectors are manageable, driven by real demand, and need not warrant supervisory intervention amid low risk of sharp correction in local property prices over the medium term,” the BSP said.
In the same report, the central bank said the Philippine financial system is still sound and robust, and will remain resilient in the face of global volatility.
Industry assets, loans, investments, deposits, capital accounts and core income posted double-digit expansion rates from the previous year.
Among the key risks hounding the sector are possible faster-than-expected monetary policy tightening in the United States, prolonged global trade tensions, and rising inflation expectations amid increased world oil prices. — Melissa Luz T. Lopez

Business watches as Duterte orders military ‘takeover’ at Customs bureau

October 30, 2018 | 12:32 am

PRESIDENT Rodrigo R. Duterte is putting soldiers in key positions at the Bureau of Customs, which has reeled from revelations of a record estimated P11 billion worth of methamphetamine that slipped through the country’s ports.
Asked on this latest development at the bureau, which last week saw a change at the helm, business leaders said they would watch if it would improve transactions at the ports.
MARCHING ORDERS
“… I’d like to put on notice everybody in the Bureau of Customs [that] they are all floating status,” Mr. Duterte said in a speech in Davao City on Sunday night.
“… Customs police are also on floating status, everybody. The Customs Intelligence Unit, they are to report to Malacañang — all of them. I am ordering everybody to report to my office,” he added, recalling that he ordered newly installed Customs Commissioner Rey Leonardo B. Guerrero, a former armed forces chief-of-staff and administrator of the Maritime Industry Authority, to ask the bureau’s X-ray provider to train the military’s technical specialists to operate the equipment.
“They (current Customs staff) will be replaced all — all of them — by military men. It will be a takeover of the Armed Forces… while we are sorting out how to effectively meet the challenges of corruption in this country… Almost all of them there have… in one way or the other been charged of corruption,” Mr. Duterte continued, explaining that the government “cannot just dismiss them.”
“And yet we cannot just move on because we want to be lawfully correct so dahan-dahan lang tayo (we will have to proceed carefully)… But with this kind of games that they are playing, dirty games, I am forced now to ask the Armed Forces to take over.”
The president said he was taking this step as part of his “declaration of a state of lawlessness” at the start of his term in mid 2016, with “part of the lawless elements are there inside the Bureau of Customs.”
In a statement, the Armed Forces of the Philippines (AFP) said it “has taken cognizance of the directive of the President to support the Bureau of Customs (BoC) in the performance of its mandate”.
The AFP said its chief-of-staff (CSAFP), General Carlito G. Galvez, Jr., and Defense Secretary Deflin N. Lorenzana have agreed “that the AFP personnel to be assigned to the BoC will be [on] temporary duty”.
“The CSAFP has ordered the staff at the General Headquarters to immediately constitute a contingent from the Army, Air Force, and the Navy/Marines for such ad interim detail at the bureau,” the statement read.
“Said personnel should be of unquestionable integrity, of good repute, of known competency and professionalism. Such capability will be in, but not limited to, intelligence, technical expertise and support, and operations.”
LEGAL BASIS
In Malacañang, Presidential Spokesperson Salvador S. Panelo said during a press briefing that the AFP’s takeover of functions at the BoC “will be temporary” and “will only run until necessary.”
“We saw him, we heard him, he’s disgusted with what happened that’s why he’s asking the AFP to help,” Mr. Panelo said.
Asked on the legal basis of the President’s order, Mr. Panelo replied: “The Constitution provides that the President has control over the military and government offices. He is authorized to direct the movements of the AFP.”
Of new Customs chief Guerrero, Mr. Panelo said: “He’s competent. He (Mr. Duterte) trusts him and his experience seems to indicate that he could be a very good… chief of the graft-ridden bureau.”
Justice Secretary Menardo I. Guevarra said separately that the “temporary measure” to staff the BoC with soldiers does not violate the “civilian supremacy” enshrined in the Constitution.
“Putting the Bureau of Customs under the watchful eye of the AFP is a temporary measure to ensure that massive entry of illegal drugs, which threatens public safety, is immediately stopped,” he told reporters in a text message.
“Violate civilian supremacy rule? Certainly not, because the BoC chief is a civilian; the BoC is under the DoF (Department of Finance); and the DoF is under the President”.
He also added that the president “has the power of supervision and control over the entire Executive Dept(artment) and is duty-bound to ensure that all laws be faithfully executed”, hence, “civilian rule shall at all times be supreme.”
Article II, Section 3 of the 1987 Philippine Constitution states that “civilian authority is, at all times, supreme over the military.”
But opposition lawmakers were not convinced.
Senators Leila M. De Lima, Risa N. Hontiveros-Baraquel and Francis N. Pangilinan on Monday questioned the legality of Mr. Duterte’s latest move, warning that it may have been unconstitutional.
“It normalizes the unconstitutional act of granting the military civilian functions and power over civilian offices,” Ms. De Lima said in a statement.
“He should stop treating the military as his personal troubleshooting department. He cannot call on the the military each and every time he is facing problems in governance. He should leave the military out of unconstitutional exercises,” Ms. Baraquel said in a statement.
“The solution is not in the transfer of any agency but showing that incompetent officials and the syndicates they are in connivance with — all big fish — are punished and held to account,” Mr. Pangilinan said in a statement.
For Senator Panfilo M. Lacson: “I can only suggest that continuous, dedicated, focused, highly-classified and sophisticated counter-intelligence operations should be put in place to watch the watchdogs”, noting in a statement that putting retired military officers at the bureau’s helm in the past did not necessarily improve performance.
BUSINESS WATCHING
Sought for comment, business leaders generally welcomed this latest step in Customs, but were cautious on how it would affect transactions in the country’s ports.
In a mobile phone message on Tuesday, American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes noted that the development comes at a time of “importing peak period in November”.
“We welcome all reforms that reduce smuggling of illegal and underpaid goods. But exporters also need goods to flow smoothly since local materials are very insufficient and foreign markets need to receive orders on time,” Mr. Forbes said.
“We will need to understand what changes will result from the president’s announcement when more details are known.”
Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said Mr. Duterte was “obviously showing his will to clean up the Customs.”
At the same time, Mr. Ortiz-Luis said in a telephone interview that his “worry about the military, baka walang (they may not have) business [sense]…”
For the Philippine Chamber of Commerce of Industry (PCCI) President Ma. Alegria Sibal-Limjoco, Mr. Duterte’s move on the bureau “is a good start”, while Semiconductor & Electronics Industries in the Philippines Foundation, Inc. President Danilo C. Lachica who said he was “indifferent” to the use of soldiers for Customs work as long as they “are men of integrity.”
“We [expect] ease of doing business and expect no corruption,” Mr. Lachica said in a mobile phone message.”
Mr. Panelo said in the news briefing in Malacañang that “[t]here is no stoppage of services at the BoC.”
“There will be continuity… Definitely, walang pangamba (there should be no concern).”
The Bureau of Customs under former commissioner Isidro S. Lapeña, who last week was transferred to head the Technical Education and Skills Development Authority, raised P434.6 billion as of September, up 34% from the P323.8 billion in 2017’s comparative nine months, beating its P417.5 billion target by four percent.
September was the eighth consecutive month that the bureau topped its monthly targets.
The bureau’s nine-month revenues are equivalent to 74.76% of a P581.29-billion full-year target.
The bureau’s collections were also 20.58% of the P2.11-trillion overall state revenues recorded in the January-September period, and 22.93% of the P1.90-trillion tax revenues that grew 16% year-on-year. — Arjay L. Balinbin, Janina C. Lim, Vann M. Villegas, Camille A. Aguinaldo and Elijah J. C. Tubayan

NEDA body approves Marawi rehab work

October 30, 2018 | 12:31 am

THE NATIONAL Economic and Development Authority’s (NEDA) Investment Coordination Committee-Cabinet Committee (ICC-CabCom) has approved new road and drainage projects for the rehabilitation of Marawi City, as well as the next phase for the flood management project in Metro Manila and repair of roads in other conflict-affected areas in Mindanao.
In a statement yesterday, NEDA said that its ICC-Cabinet Committee met on Thursday to approve new projects cumulatively worth P58.09 billion.
It approved the P6.52-billion Rehabilitation and Development Plan (RDP) for a Greater Marawi-Stage 2 project expected to be completed by 2022 and will be funded by official development assistance (ODA). The RDP-Stage 2 includes the construction of two 23.9-kilometer (km) lanes for the third phase of the Marawi Transcendental Road, and the construction of the Malabang Viaduct with two 1.6-km lanes. It includes the construction of a new main outlet drainage system, slope protection works along Marawi-Bito Road, the second phase of the Bangon-Luksadatu Lake Lanao main drainage outlet, the construction of Permanent Rorogagus Bridge, and the rehabilitation of the Beyaba Damag Open Channel.
The Cabinet committee also approved the P3.45 billion Bangon Marawi Comprehensive Rehabilitation and Recovery Program also for ODA financing. It includes “programs and projects in land resource management, social services, physical infrastructure, livelihood and business development implemented by the national government or is in support of Local Government-implemented projects, and the construction of classrooms for permanent resettlement sites, in view of land-related issues arising from the Marawi siege.
The battle for Marawi began in May 2017 and lasted for about five months. The government has already begun some debris clearing as well as social protection programs in the devastated city. Groundbreaking for actual reconstruction work in ground zero is scheduled on Oct. 31.
The NEDA panel also approved the fourth phase of the Pasig-Marikina River Channel Improvement Project (PMRCIP) that will “put in place flood management infrastructure (i.e., dikes, revetments, floodgates) along the 8-km stretch of the Lower/Middle Marikina River, and the construction of the Marikina Control Gate Structure.” The P33.1-billion project and will be funded by a Japan International Cooperation Agency loan.
The committee also approved the increase in cost for the third phase of the PMRCIP to P9.03 billion from P7.55 billion “due to necessary additional civil works, including dredging works, to implement the project.”
NEDA said that the flood management projects project “covers the 5.4-km stretch of the Lower Marikina River, as well as the 9.9 km remaining sections between the Delpan Bridge and Napindan Channel covered under the second phase of the PMRCIP.”
Also approved was the Road Network Development Project in conflict-affected areas in Mindanao that will construct, rehabilitate, and improve the 178.43 km road network in the Autonomous Region in Muslim Mindanao and its neighboring regions. The project is worth P13.42 billion, also to be loaned from JICA, and is expected to be completed by 2024.
The NEDA body also approved the New Clark City High-Performance Gymnasium and Sports Museum Project that features five floors of indoor and outdoor facilities for sports medicine and sports science that will complement the internationally certified sports facilities to be built at the National Government Administrative Center. The project is worth P1.6 billion, to be funded by a grant from China. — EJCT

Philippines still compelling for miners, but mineral output growth to ease

October 30, 2018 | 12:30 am

THE PHILIPPINES will remain a compelling case for miners at least until the end of President Rodrigo R. Duterte’s term in 2022 despite an increasingly trying regulatory environment, according to Fitch Solution’s Philippines Mining Report.
“Environmental regulations, high taxes and resource nationalism will continue to plague the mining industry of the Philippines,” the report’s executive summary read.
“However, we maintain that the industry is well-positioned for longer-term growth as foreign miners look to take advantage of the country’s sizeable and relatively untapped deposits, and low operating costs.”
But the same summary showed the increase of the mining industry’s production value slowing gradually to two percent by 2022 from an estimated six percent this year.
Among others, copper production growth will slow to 4.6% annual average over 2018-2027 from an actual 18% in 2008-2017, while nickel ore production growth is projected to decelerate even more to 2.7% annually over 2018-2027 from 22% in 2008-2017 “because of the introduction of stringent regulations and depleting ore grades”.
Only gold will likely see better fortunes — turning around to a 5.7% annual average growth over 2018-2027 from an actual 2.6% drop in 2008-2017 — to be driven by “new projects coming on line and higher prices” of the precious metal in the years ahead. Fitch Solutions said it projects world gold prices to increase to $1,525 per ounce (/oz) by 2021 from $1,300/oz last year.

The Philippines’ status as one of the world’s biggest nickel suppliers and as a key producer of copper and gold notwithstanding, miners have been reeling from an unfriendly policy environment since the past administration imposed more than six years ago a moratorium on new mining permits until the government enacts a new revenue-sharing scheme with the industry.
There has been no respite from challenges as Mr. Duterte has signalled his general displeasure at the industry since the start of his administration.
A ban on open-pit mining — a method used by many extractive projects — has remained in force since last year.
Republic Act No. 10963 — or the Tax Reform for Acceleration and Inclusion Act (TRAIN) that came into effect in January — doubled to four percent the rate of excise tax which miners have to pay, while a new proposal that has just secured House of Representatives approval and is now being debated in the Senate increases royalties and introduces a margin-based windfall profit tax besides.
Miners in the country have complained that their sector is the most heavily taxed among peers in Southeast Asia, and 2015 simulations by the Finance department — before TRAIN doubled the industry’s excise tax — estimated that the industry had an average effective tax rate of 62%.
The Mines and Geosciences Bureau (MGB) reported in early September that value of metallic mineral production increased by four percent to P54.568 billion last semester from P52.423 billion a year ago, “brought about by improved metal prices in the world market”, even as volumes dropped.
Production of gold, which accounted for 41% of total metal output value, dropped to 10,703 kilograms (kg) worth P22.352 billion last semester from P11,674 kg worth P22.966 billion.
Mixed nickel-cobalt sulfide output, which accounted for 20.8% of total metal production value, dropped by eight percent in volume terms to 42,622 dry metric tons (DMT) from 46,444 DMT, even as value rose 13% to P11.376 billion from P10.085 billion.
Nickel direct shipping ore production, which contributed 17.96% to total value, dropped 10% in volume terms to 9.432 million DMT from 10.441 million DMT and by one percent to P9.801 billion from P9.908 billion.
Production of copper concentrate, which accounted for 19.05%, slipped by one percent in volume to 137,929 DMT from 138,689 DMT though value climbed 16% to P10.397 billion from P8.958 billion.
Average world prices of gold, copper and nickel went up last semester from a year ago, with nickel posting the biggest increase of 41% to $6.19 per pound (/lb) from $4.39/lb.
“Nickel price was boosted by an increase in demand from stainless steel production, coupled with falling inventories,” the MGB explained in a press release then.
Average world price of gold increased by 6.45% to $1,318.33 per troy ounce (/t oz) from $1,238.46/t oz, while that of copper gained 20.7% to $3.12/lb from $2.58/lb.
Preliminary first-half data from the Bureau of Internal Revenue show that the government raised P1.56 billion in mineral excise taxes, 67.16% more than the P940 million collected in 2017’s first six months.

Philippine mining industry value forecast

October 30, 2018 | 12:30 am

Meralco core profit up 11% in Q3

October 30, 2018 | 12:10 am

By Victor V. Saulon, Sub-editor
MANILA Electric Co. (Meralco) reported a core net income of P5.84 billion in the third quarter, up 11.2% year-on-year, but lower than the second quarter as revenues slowed in part because of the cooler temperature.
Reported net income, which includes one-off items, reached P6.24 billion during the third quarter, higher by nearly 15% from P5.43 billion a year ago.
“It’s looking good, I mean based on the nine-months results,” said Meralco Chairman Manuel V. Pangilinan during the distribution utility’s quarterly media briefing to present its operating and financial results. “I think the full year [will be] another historic number for Meralco.”
In the nine months to September, Meralco reported a core net income of P16.69 billion, higher by 8.6% from P15.37 billion a year ago. Reported profit rose 14.3% to P18.21 billion from P15.93 billion previously.
Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, said consolidated gross revenues reached P227.41 billion, or 6% higher compared with the previous year’s P214.39 billion.
“Electric revenues amounted to P221.3 billion, higher by 6% over the comparative period [in 2017] due to significantly higher generation charges resulting from the combined effects of increased prices of coal, oil and gas, and the further weakening of the Philippine peso versus the US dollar,” she said.
Ms. Siy-Yap added that non-electric revenues was at P6.1 billion, up 11% compared with the level a year ago, and represents about 3% of the total consolidated revenues for the period.
Among customer classes, industrial consumers recorded the biggest growth in terms of energy sales at 7.3% followed by commercial at 4.5% and residential at 3%.
Oscar S. Reyes, Meralco president and chief executive officer, said as of the third quarter the company recorded a customer base of 6.542 million, an increase of 4.7% from 6.252 million a year earlier.
“We are seeing continued healthy growth in our customer count,” he said.
In terms of customer count, residential consumers recorded the biggest growth of 4.8%, followed by commercial with 2.8%, and industrial at 2%.
Residential customers at 6.017 million, accounted for 92% of Meralco’s client base.
Mr. Reyes said sales volumes, net system input and peak demand within the Meralco franchise area grew by 5%, 4% and 6%, respectively.
Sales volume reached 32,921 gigawatt-hours (GWh), net system input was at 34,815 GWh, while peak demand hit 7,399 megawatts (MW) registered on May 23, 2018, which compares with Luzon’s peak demand of 10,876 MW recorded on May 28, 2018.
In a statement issued during the briefing, Mr. Pangilinan was quoted as saying: “The major driver of growth for Meralco continues to be our core distribution business, with volumes from real estate-related businesses, including the Philippine Online Gaming Operators [or POGO], having provided the uplift for the Commercial sector.”
He noted the third quarter, “which historically generated the strongest volumes in any operating year, managed to remain relatively good, albeit affected by adverse macroeconomic factors and weather disturbances.”
On Monday, shares in slipped 0.11% to close at P360 each.

1...11,76711,76811,769...14,238 Page 11,768 of 14,238