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BBL’s parliamentary features questioned

By Camille A. Aguinaldo

FORMER SENATE president Aquilino Q. Pimentel, Jr. on Tuesday flagged constitutional issues regarding the current version of the proposed Bangsamoro Basic Law (BBL), particularly the structure of the Bangsamoro government aimed at adopting a parliamentary system.

At the resumption of the Senate hearing on the BBL, senators tackled its provisions with security, budget, and finance officials as well as constitutional experts providing suggestions that would further refine the proposed measure.

For his part, Mr. Pimentel said the Bangsamoro government opting for a parliamentary system was “incongruous” with the presidential structure of the 1987 Constitution.

“The autonomous region envisioned in the Constitution which the BBL intends to govern must follow the form of government provided for in the fundamental law, and that is, none other than the presidential form of government,” he said.

According to Article 4, Section 2 of the draft BBL, “The Bangsamoro Government shall be parliamentary. Its political system is democratic, allowing its people to freely participate in the political processes within its territory.”

Mr. Pimentel also questioned the electoral system of the Bangsamoro government in which there is an elected parliament while its chief minister, who heads the government and the executive authority, is chosen by the members of that parliament.

Citing Article 10, Section 18 of the Constitution, the former Senate leader said: “The section clearly mandates that the Executive Department and the Legislative Assembly of the proposed Bangsamoro entity must be ‘elective and representative of the constituent political units’ in that area of our country.”

Mr. Pimentel also proposed ideas on how to improve the reserved powers of the Bangsamoro government, particularly its electoral office, human rights commission, justice system, education system, congressional districts, civil service, among others.

In an interview with reporters, Senator Juan Miguel F. Zubiri, who chairs the subcommittee on the BBL, said they could look into the provisions in question and tweak it in a way that complies with the Constitution.

“Our suggestion was: instead of calling it parliament, maybe we can still call it an assembly. And instead of calling it minister, you can call him executive director. We can change the names so it could address the unconstitutionality questions,” he said in a mix of Filipino and English.

Mr. Zubiri added that there would be a technical working group which would focus on the bill’s constitutionality issues so it passes through the Supreme Court if contested.

On security matters, National Security Adviser Hermogenes C. Esperon, Jr. suggested that the Armed Forces create military task forces for the region, instead of forming a Bangsamoro Military Command, as stated in the bill.

“I believe the Armed Forces is better able to serve purposes of defense and security without becoming a potential instrument of the leaders or personalities in an area for their own interests. I believe the Eastern Mindanao Command and the Western Mindanao Command are enough and sufficient. We can create other task forces, like the Joint Task Force (JTF) Zamboanga or JTF Pagadian, so we can be more flexible in that kind of setup,” he said.

Budget Secretary Benjamin E. Diokno for his part said the expenditure plan for the Bangsamoro government will have to depend on the size of its territorial jurisdiction.

On matters of revenue sharing, Finance undersecretary for legal services Bayani H. Agabin said they could not yet gauge if the proposed 6% annual block grant from the national government as well as the proposed 75%-25% local taxes share between the Bangsamoro and national governments would be enough for the region’s financial stability.

Mr. Agabin also mentioned that based on the estimates of the Office of the Presidential Adviser on the Peace Process (OPAPP), money that would be spent for BBL’s first year would be around P60 billion for the block grant, P10 billion for the special development fund, and an additional P10 billion for the transition.

Unseeded Mertens routs Svitolina to reach semis

MELBOURNE — Unseeded Australian Open debutant Elise Mertens blew away world number four Elina Svitolina in straight sets Tuesday to reach a first Grand Slam semifinal.

The Belgian world number 37, on a 10-match unbeaten streak after winning in Hobart this month, knocked out the Ukrainian 6-4, 6-0 in 1 hour 13 minutes.

Mertens, who is yet to drop a set, is the first Belgian to make the last four since Kim Clijsters in 2012.

“I’m lost for words. I don’t know what to say. I just gave my all today,” she said. “I played my game today and tried to stay aggressive.”

Mertens, 22, trains with her coach and boyfriend Robbe Ceyssens at the Kim Clijsters Academy in Belgium and has seen her world ranking rise from 127 at the end of 2016.

She had never been beyond the third round of a Grand Slam before in four appearances.

“He means a lot,” she said of the importance of Ceyssens.

“He’s by my side all the time. Since we have been together my game has only gone upward. All credit to him.”

Mertens made all the initial running, returning aggressively and mixing up her game cleverly, taking every opportunity to approach the net and cut off Svitolina’s passing avenues.

She broke the world number four in the third game and then again for a 5-2 lead.

Serving for the set, Mertens tightened and a double fault on break point handed the Ukrainian a way back.

Mertens still had a second chance to serve out. Another double fault allowed Svitolina a glimmer at 15-30, but Mertens composed herself and landed three first serves to secure the set 6-4.

The Belgian had powered 16 winners to Svitolina’s eight and significantly won nine of 12 points at the net.

Svitolina was immediately in trouble at 0-40 at the start of the second.

She saved those but a weak forehand into the net gave a fourth and Mertens landed an overhead smack on the sideline to secure the break.

Another break followed, and a third courtesy of a sumptuous backhand pass took Mertens to the brink of the last four at 5-0.

She completed the humbling of Svitolina with little fuss and will face either second seed Caroline Wozniacki or unseeded Carla Suarez Navarro for a place in Saturday’s final.

If she makes it she will emulate Clijsters, who won at Melbourne Park in 2011.

Mertens had a message for her countrywoman and tennis great who she said would be following the match in the middle of the night back home.

“Kim, thanks for watching and don’t get too stressed.” — AFP

Mischa Zverev’s heavy fine for ‘poor performance’

MELBOURNE — Mischa Zverev Tuesday become the first player to be heavily fined for retiring from his first round match at the Australian Open under new rules aimed at limiting early injury withdrawals.

The German, seeded 32, withdrew from his opening match with South Korea’s Chung Hyeon last week during the second set and has been fined $45,000 for what is termed “a poor first round performance.”

That was almost all of his prize money of around $47,000.

Under the new rules “any player who competes in the first round main draw singles and retires or performs below professional standards, may now be subject to a fine up to (the equivalent) first round prize money in 2018.”

With tens of thousands of dollars at stake just for playing in round one, early injury pullouts have often caused suspicion at Grand Slams, particularly at last year’s Wimbledon.

Eight players retired from the opening round at the All-England Club, including the opponents of Roger Federer and Novak Djokovic during the second sets of their matches on center court.

It sparked the new Grand Slam rules by the International Tennis Federation, being used for the first time in Melbourne.

Players are now able to claim 50% of their prize money if they pull out before their first match, an incentive designed to allow someone else to play instead.

Their replacement — a “lucky loser” from the qualifying tournament — gets the other 50%. — AFP

Senate subpoenas anew ex-poll chief Bautista

THE SENATE committee on banks, financial institutions and currencies on Tuesday subpoenaed former Commission on Elections (Comelec) chairperson Andres D. Bautista for his failure anew to attend the committee’s inquiry on his alleged violations of the Anti-Money Laundering Act (AMLA).

The summons ordered Mr. Bautista to appear on the scheduled Feb. 12 hearing to answer his purported questionable transactions with Luzon Development Bank (LDB) amounting to P300 million.

If the former poll chief fails to attend, the Senate will hold him in contempt and move for his arrest, the subpoena indicated.

Senator Francis G. Escudero, who chairs the said committee, has also asked the Bureau of Immigration (BI) to provide the committee all travel information on Mr. Bautista since Aug. 1, 2017.

The committee has held two hearings since that time, but without Mr. Bautista. Tuesday’s hearing would have been the third, but it was later cancelled since Mr. Bautista was absent.

“The committee has consistently sent him invitations to all of the hearings we conducted but until today, he has not given any reasons for his absence. Not even a representative to act on his behalf,” Mr. Escudero said in a statement.

“We held him in his own words on the media in the past that he will appear and defend himself once invited but apparently he has been a consistent no-show,” he added.

Mr. Bautista’s alleged unexplained wealth surfaced last year after his estranged wife Patricia P. Bautista accused him of committing corrupt practices and amassing nearly P1 billion worth of bank accounts and real estate properties.

Mr. Bautista was impeached in October last year on the day he announced he was due to resign. His resignation has since mooted his impeachment. — Camille A. Aguinaldo

Car and motorcycles to be raffled off in MPBL opener

Opening Day Schedule
(Araneta Coliseum)
7 p. m. Opening Ceremonies
9 p. m. Caloocan Supremos vs Parañaque Patriots

A BRAND-NEW car and 10 motorcycles will be raffled off in the opening of the Maharlika Pilipinas Basketball League at the Smart Araneta Coliseum on Thursday.

League Commissioner Kenneth Duremdes confirmed that every paying ticket holder will have a chance to win these vehicles.

“Yes, that’s the commitment to us by Senator Manny (Pacquiao), but every ticket holder should be there at the venue. Otherwise, it would be forfeited,” said Mr. Duremdes. “The raffle will also encourage the people to stay on even though their home team isn’t playing. “

A colorful opening ceremonies is expected to be rolled out with talents from ABS-CBN, tapped to join the festivity beginning 7 p. m.

It will be followed by the lone game scheduled featuring the Caloocan Supremos and the Yakimix Parañaque Patriots coached by multi-titled mentor Aric del Rosario.

A fledgling league founded by Senator Manny Pacquiao, the MPBL provides sanctuary to players who had short-lived professional careers and want to get another crack of making it to the big league.

The league also gives opportunity to untapped talents looking for a venue to showcase their talent. The regional flavor provides a different taste to the league as cities from the metropolis and different towns from various provinces will get a chance of showcasing their wares in this home and away, single round format. — Rey Joble

5-kilometer ash column shoots out from Mayon

INTENSE LAVA fountains shot like fireworks up to 700 meters (2,300 feet) into the air above Mayon, the Philippines’ most active volcano, on Tuesday as showering debris turned morning skies dark and spread fear among anxious residents.

More than 40,000 people have already fled since smoke and ash started spewing from the mountain, with scientists warning of the danger of an explosive eruption and authorities urging people not to be complacent.

Mayon shot out a five-kilometer-high ash column early Tuesday as a rain of fine debris brought daytime darkness in some areas, volcanologists and local authorities said.

“People got scared. The kids did not understand what was happening, then suddenly it got dark and you could not see who you were with,” Danny Garcia, a spokesman for Albay province, told AFP.

The summit of the mountain was shrouded by a dense column of steam and hot rocks, creating fanciful shapes in the sky.

“The explosion looks like a cauliflower or an octopus,” Ed Laguerta, Mayon’s resident volcanologist from the Philippine Institute of Volcanology and Seismology (Phivolcs), told AFP.

“Hot ash ascends and since the volcano is conical, the pyroclastic flow seems to be the tentacles,” he added, referring to a mix of hot lava, ash and volcanic gas flowing down the volcano’s flanks.

Mayon, a near-perfect cone located about 330 kilometers southeast of Manila, is considered the most volatile of the Philippines’ 22 active volcanoes.

Volcanologists on Monday warned of a hazardous eruption within days as Mayon rained ash on communities two weeks after it began showing signs of unrest.

Authorities have ordered people to leave a danger zone stretching eight kilometers from the volcano and on Tuesday shut down schools and businesses in Albay province where Mayon is located.

FLIGHTS CANCELLED
Civil aviation authorities have closed airports in the cities of Legazpi and Naga and at the nearby island of Masbate, while small aircraft have been banned from flying near the volcano.

The Civil Aviation Authority of the Philippines, in its advisory as of yesterday afternoon, said several domestic and international flights have been cancelled, including Cebu Pacific and Philippine Airlines flights to and from Legazpi and Naga.

The international flights cancelled were: Japan Airlines (Narita-Manila), Air Niugini (Port Moresby-Manila-Port Moresby), Jetstar (Nagoya-Manila-Nagoya), Jetstar (Narita-Manila-Narita), United Airlines (Guam-Manila), United Airlines (Manila-Guam), and Jetstar (Singapore-Manila-Singapore).

For today, Jan. 24, Cebu Pacific issued an announcement yesterday that eight flights between Manila and Legazpi and the return flights between Cebu and Legazpi are also cancelled.

Some highways have also been closed, with ash showers making driving in some areas nearly impossible, the provincial government said.

Regional disaster officials were monitoring air quality as they advised people to wear face masks, goggles or glasses and to stay indoors to avoid inhaling sulphur dioxide gas.

Volcanologists told residents to heed warnings from authorities even in towns not yet affected by ashfalls.

“Not all towns will be affected at the same time so people cannot be complacent,” Mr. Laguerta said.

There have been 51 previous eruptions by Mayon in recorded history, the last one in 2014. In 1814 it buried the town of Cagsawa, killing more than 1,000 people.

AID
Meanwhile, Malacañang confirmed on Tuesday, Jan. 23, that the Internal Revenue Allotment (IRA) for Albay was already released by the Department of Budget and Management (DBM) last Monday, Jan. 22.

Presidential Spokesperson Herminio Harry L. Roque, Jr. also told reporters in a press briefing at the Palace that the different local governments of Albay may now “tap their 5% contingency funds, and this release has been confirmed by Governor (Al Francis C.) Bichara.”

The spokesman announced as well that the government has already provided more than P19 million worth of aid to affected families, of which P16,221,000 came from the Department of Social Welfare and Development, P124,000 from local governments, and P3 million from nongovernment organizations. — AFP with a report from Arjay L. Balinbin

EU encouraging use of GSP+ to boost inclusivity

By Marifi S. Jara,
Mindanao Bureau Chief

DAVAO CITY — The Philippines should fully utilize the Generalized Scheme of Preferences Plus (GSP+) privileges granted by the European Union (EU) to enhance inclusive development, an EU official said.

“What we want to do with our trade and commercial relationship is to help these people to be part of this growth, farmers, small business people… How we can make the world growth work for those people as well,” Walter van Hattum, head of the EU-Philippines Economic and Trade Section, said yesterday at the Mindanao Business Briefing at the Seda Abreeza here organized by the European Chamber of Commerce of the Philippines (ECCP).

Mr. Van Hattum cited agricultural products from Mindanao as among the commodities that stand to benefit from increased exports to the EU.

“Fruits, chocolates. Cacao — the European Union buys up 50% of the (global) production of this produce… this has zero tariff under the GSP+,” he said.

Philippine exports to the EU in 2017 stood at €2 billion, up 31%, the Department of Trade and Industry reported earlier this week.

In the first half of 2017, the EU was the Philippines’ second-largest export market accounting for 15% of total outbound goods, next to Japan with a 17% share. The totals for the US and China were 15% and 11% respectively, the Philippine Statistics Authority said. “We really want to live up to that (the second ranking), we are here to do business,” ECCP Executive Director Florian Gottein said at the forum.

The top five export products to the EU were agri-oil, electrical machinery, processed meat and fish, optical products, and processed vegetables, fruits, and nuts.

Mr. Van Hattum also noted that the European economy has been on the rebound, making it an ideal export market as well as a trading partner. “The European Union is very bullish at the moment… The crisis is definitely over… it’s a good place to do business with, whether you want to invest in Europe, whether you want European investors to come to the Philippines, or simply from a trading point of view.”

Mr. Gottein also pointed out that the EU, with its 28 member-nations with 508 million inhabitants, presents a “huge market waiting” for more Philippine products.

In terms of European investments into the country, Mr. Gottein acknowledged that there is a need for a stronger campaign to bring businesses into the regions, particularly in Mindanao, where “unfortunately, the perception still is, it’s a ‘no go’ area.”   

“We are here to bring more investments, not only to Manila, but to the regions, and also to bring more Filipino (businesses) to Europe,” he said.

The ECCP is currently working on a business guide that will focus on the regions, especially those in the country’s central and southern parts.

“We want to break it down to the regions… we highlight the Visayas, and we highlight Mindanao… to show what are the opportunities here, not just the Philippines in general,” Mr. Gottein said.

Lt. Gen. Benjamin R. Madrigal, head of the Eastern Mindanao Command, assured EU representatives at the forum that authorities are pursuing various programs to address security concerns, as well as protect the business sector.

At the same Mr. Madrigal emphasized that the problem of insurgency is “multidimensional” that needs “multi-stakeholder” participation, including the investors.

Mr. Van Hattum said the EU’s international trade agenda today is based on such principles as sustainable development, which in part address the roots of insurgency. 

He said, “We don’t just want to have trade just for economic progress, we want to have trade to make sure that the poor people also become better off… and I think that is a lot similar to the current inclusive growth agenda of the Philippines.”   

Panelo tells Napoles: Show proof and give sworn statement on Drilon campaign donation

JANET LIM-NAPOLES, the alleged mastermind of the Priority Development Assistance Fund (PDAF) scam, should execute a sworn statement in relation to her latest claim that she gave Liberal Party Senator Franklin M. Drilon P5 million as a campaign donation during the 2010 elections, Chief Presidential Legal Counsel Salvador Panelo said on Tuesday, Jan. 23.

“This Napoles should execute a sworn statement under oath para credible s’ya, otherwise chismis lang ’yon (it’s just a rumor). It doesn’t also mean na she’s credible although she has a sworn statement, syempre to be fair to everybody,” Mr. Panelo told reporters in a chance interview at the Palace.

The chief legal counsel added that Ms. Napoles’ statement should include “proof” to support her allegation.

Mr. Panelo also denied that the administration of President Rodrigo R. Duterte had a hand in Ms. Napoles’ revelation.

“This administration doesn’t interfere with anybody. That’s the policy, absolute policy. No interference with any departments, agencies, or other branches of government,” he said.

For his part, Presidential Spokesperson Herminio Harry L. Roque, Jr. said the Office of the Ombudsman should conduct an investigation on Ms. Napoles’ claim.

“Well, I think it is something that should be investigated. This is information which, for the first time, was revealed by Janet Lim Napoles. And I think, the Constitution, in providing for accountability of public officers is the legal basis for the relevant government agency to conduct an investigation. I would hope that the Ombudsman on its own would conduct its probe. And I think the DoJ (Department of Justice) also on its own should also conduct its own probe,” Mr. Roque said at Tuesday’s press briefing.

The spokesman clarified as well that the Palace does not intend to limit the investigation to the possible involvement of Liberal Party politicians in the PDAF scam. “We want the whole truth and nothing but the truth to come out of this PDAF scam.”

Mr. Roque explained as well that “the DoJ can conduct its investigation but all that it can do is to submit its findings to the Ombudsman, because the Ombudsman would still have to be the one to conduct preliminary investigation.”

“So medyo options are limited. But certainly, I’m sure that DoJ will be true to its mandate and will proceed with case buildup by investigating this,” the spokesman further said. — Arjay L. Balinbin

World Cup winner Tabora is Prima Bowler of the Year

NATIONAL bowler Krizziah Tabora was named the female Bowler of the Year while Kenneth Chua grabbed his third consecutive male Bowler of the Year title recently in the Team Prima 25th Anniversary entitled the Great Gatsby Party at the Blue Leaf Filipinos Event Place in Parañaque City.

The 26-year-old former Miriam College student was the run away winner in the award after winning the last year’s prestigious Bowling World Cup title putting her on the level of Filipino bowling legends Paeng Nepomuceno and Bong Coo.

“This is another award that I will treasure and be proud of for the rest of my life. And 2017 turned out the best year of my life because after winning the World Cup, people recognized me here in abroad,” said Tabora, who already clinched her fifth Prima Pasta athlete of the year honor.

“The Filipinos abroad, they even threw party for me and asked to have pictures with me. They kept saying that, they are so proud of me. It’s very fulfilling knowing that I brought pride to our country. Also, I gained more friends in social media and in person,” she added.

Chua, 26, captured last year the first Philippine Bowling Federation (PBF) Philippine International Open, TBAM Open Masters and Philippine Seniors Open Championship titles, while settling for a silver medal in the Asian Indoors and Martial Arts Games.

Those achievements were enough to snare his fourth overall Bowler of the Year award during the annual event organized by Team Prima chairman Alexander Lim.

Ivan Malig and Daphne Custodio won the male and female junior Bowler of the Year awards, respectively. Clarice Estrellado and Stephen Diwa copped the Most Improved Bowler citation, while the Bowler of the Year for Cebu/Davao winners were Dianne Galendez and Heber Alqueza.

Other Prima athletes awardees in other sports last year were Aires Montilla (Female Badminton Player of the Year); Gregg Paz (Male Badminton Player of the Year); Lanz Zafra (Jr. Badminton Player of the Year); Ghiselle Bautista (Jr. Badminton Player of the Year) and Eboy Farr (Cyclist of the Year).

The Photographer of the Year was Cha Pagdilao and Wacky Baniqued was the Multisport Athlete of the Year.

Employers signal resistance to bills expanding holiday leave

THE Employers Confederation of the Philippines (ECoP) said proposed changes to labor law that would increase leave entitlements for workers will be a drag on productivity and increase the cost of business especially in manufacturing and services.

In a position paper, ECoP said “excessive non-working days” will likewise affect the cost of doing businesses, pressuring micro, small and medium enterprises that make up much of the economy.

“There is no law that requires the grant of vacation or sick leave to employees in the private sector. The grant depends upon employer policy as an exercise of management prerogative or the result of collective bargaining,” it said.

“The exercise of management prerogative arises from the constitutional right of enterprises to reasonable returns on investment and to expansion and growth.”

There are currently 15 national non-working days, 12 of which are paid regular holidays with the remaining three classified as special days. In addition to the nationwide regular holidays and special holidays, special laws also provide for paid leave.

On Wednesday, the Senate Committee on Labor, Employment and Human Resources Development chaired by Emmanuel Joel J. Villanueva will convene to discuss 10 bills, all of which are related to extending worker leave for various purposes.

ECoP also raised concerns that three of the bills — which seeks to grant special leave of absence of 15 days to legitimate spouses of overseas workers and parental care leave with full pay and benefits — call for criminal sanctions for employers who refuse to comply.

The group said that proposals violate the employers’ right of legitimate exercise of management prerogative and may inhibit them from earning reasonable returns, dampening expansion and growth.

“While the bills are well-intentioned, they raise not only the issue of encroachment on management prerogative but also their necessity as well as their impact on labor productivity and cost of production,” ECoP said. — Anna Gabriela A. Mogato

Wolfgang’s Steakhouse wants a bite of corporate market

By Arra B. Francia, Reporter

UNITED STATES-BASED Wolfgang’s Steakhouse is looking to serve the Philippine corporate market as it opens its newest location at the heart of Ortigas District, aiming to capture the tastebuds of businessmen hustling through another 9 to 5 workday. 

The Ortigas restaurant, located at the ground floor of The Podium, is the group’s second location in the Philippines, after setting up shop in Newport Mall within the Resorts World complex in 2016. This is the group’s 19th outlet globally.

“We wanted to be near bankers and corporate towers. And tamang-tama naman, we’re really near the BDO tower so we talked to the SM group, and they had this place left, this one tiny spot. We managed to make it work,” Raymund Magdaluyo, the head of Excello Restaurant Management Group, said during a media roundtable for the restaurant’s opening. Excello is the local partner of Wolfgang’s Steakhouse.

“This is a natural market, you have the corporate people. And you have the families din,” he added.

The Ortigas restaurant has a capacity of 75 to 80, smaller compared to the one in Resorts World, which has 120 capacity.

Having a steakhouse in a country with a booming economy is important, according to Mr. Magdaluyo, as it becomes a place where matters of importance can be discussed.

Wolfgang’s Steakhouse is hoping to attract expats from the nearby Asian Development Bank headquarters, as well as employees working at the BDO Corporate Center or San Miguel Corp.’s head office.

“I feel each vibrant city has its own steakhouse, especially our economy is growing. When you’re closing a deal, or having a special gathering as well,” he said.

Peter Zwiener, Wolfgang’s Steakhouse president and managing partner, said the decision to put up a second location was dependent on the Resorts World restaurant’s performance, which turned out to be well-received by the market.

“Once we started doing well in Resorts World, we started looking for store number two and number three. It was either going to be here, Ortigas, or Fort Bonifacio. So we decided to do it here in Ortigas first and then Fort Bonifacio in June,” he said.

What differentiates Wolfgang’s from other steakhouses is their focus on quality, Mr. Zwiener said, adding they import beef from the United States to ensure its quality.

“We focus on the quality. We actually ship our beef from the United States on a weekly basis. The beef that you eat here could be the same as the one you’ll be eating in our New York restaurant, in our Miami restaurant. We bring the meet to whichever market we go to,” Mr. Zwiener said.

The private banker-turned-restaurant operator explained the beef is aged for 28 days.

“We never freeze our beef, we age it. We have our own aging room, use the same equipment, do all the training in New York… All the key players have actually worked in our New York restaurant to learn, to make sure the consistency level is there,” Mr. Zwiener said.

Following positive response in the Philippines, the company is looking to strengthen its brand in other Asian nations as well.

“Wolfgang brand will continue growing… We’re going to put one in Shanghai in China, probably Indonesia and Malaysia, too. So the Asian market is extremely strong, and part of it is because the brand is getting stronger,” Mr. Zwiener said.

Auto firms report ‘record-breaking’ sales

Car Models infographic

By Kap Maceda Aguila

IT came as no surprise when the consolidated vehicle sales report released on Jan. 11 by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) — an industry association of 14 brands — and the Truck Manufacturers Association (TMA) revealed that deliveries grew by 18.4% in 2017, or 66,101 units more than the 359,572-unit total for the 12 months of 2016.

The 425,673 vehicles sold by CAMPI and TMA member companies in 2017 “exceeded the groups’ target of 400,500 units, and nearly [hit] the whole industry target of 450,000 units,” according to a statement released by the associations.

It must be noted that another industry group, the Association of Vehicle Importers and Distributors (AVID) — composed of 17 companies representing 26 brands — at press time has not released its own figures. But Hyundai Asia Resources, Inc. (HARI), the group’s biggest seller, has reported sales of 37,678 vehicles in 2017.

SWELL IN SALES
Notwithstanding the projections of CAMPI and TMA, many industry observers had already anticipated a swell in vehicle sales owing to the 2018 implementation of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN), which revises taxes imposed on new vehicles. Though watered down from a more extreme tariff scheme that would have resulted in drastic rises in retail costs, TRAIN still had the net effect — in most cases — of increasing the prices of vehicles owing to a restructured excise-tax schedule.

“[In] December 2017 alone, the group sold 45,494 units with 33.4% growth from 34,104 [units] during the same month in 2016,” continued the CAMPI statement. This reflects the observations that a significant number of people scrambled to make last-minute vehicle purchases before the advent of the new year.

Interestingly, last year’s numbers actually represented a slowdown in domestic auto sales growth. A previous BusinessWorld article revealed the uptick in vehicle sales were pegged at 29.5%, 22.9% and 24.6% for 2014, 2015 and 2016, respectively. Last year’s 18.4% increase only outpaced the 2012 (11%) and 2013 (16%) rate since the double-digit spurt started.

“We ended 2017 with a positive note. Aggressive promos, new model updates and the hard work of members helped contribute to expanding the Philippine market,” said Rommel R. Gutierrez, CAMPI president and also a first vice-president at Toyota Motor Philippines (TMP).

Sales of commercial vehicles (comprised of Asian utility vehicles, light commercial vehicles, light trucks, trucks and buses) surged 26.4% from 226,384 units in 2016 to 286,249 units last year. In comparison, total passenger car sales in 2017 grew by 4.7% from 133,188 to 139,424

TOYOTA TOPS FOR 16TH STRAIGHT YEAR
Meanwhile, Toyota Motor Philippines achieved its 16th consecutive triple crown — topping total, passenger car, and commercial vehicle sales in the domestic market. Moving 183,908 units represented a growth of 15.9% over 2016’s figure of 158,728. TMP cornered a hefty 43.2% of the local market in 2017.

Toyota was followed by Mitsubishi Motors Philippines Corporation, which secured a 17.29% share (73,590 units), and Ford Motor Company Philippines, which took in 8.6% (36,623 units). Rounding out the top five were Honda Cars Philippines with 7.46% (31,758 units), and Isuzu Philippines Corp. with 7.07% (30,086 units).

TMP’s top-selling passenger car in 2017 was the Vios (36,734 sold), followed by the Wigo with 19,295 units. Still, the Fortuner — officially classified a commercial vehicle — actually outsold the Vios with 39,680 units.

RECORDS ALL AROUND
While the growth rate of sales has slowed down compared to that in 2016, a number of companies have reported achieving best-ever sales figures last year. Ford Philippines called it a “record year” with an “all-time best monthly performance.” December 2017 sales for the company registered an increase of 45% year on year to 4,629 vehicles — driven by sales of the Everest, EcoSport and Ranger. Consolidated sales revealed a “fifth consecutive year of record sales with 2017 retail sales rising 9% from the prior year to 36,623 vehicles… [with] the Everest [remaining as] Ford’s top-seller in the Philippines in 2017 with full-year sales rising slightly from the prior year to 12,455 vehicles. This included Everest’s all-time best month in December with sales increasing 48% year over year to 1,582 vehicles.”

It was the same kind of story coming out of Honda Cars Philippines, Inc. (HCPI). In a statement, HCPI reported it had “continued its growth with record-breaking sales results for the calendar year of 2017… [with] 31,758 vehicles, up by 37% compared to 2016 with 23,199 vehicles.” The company added it “beat its own record by posting the highest sales results in the brand’s history in the Philippines” with 4,961 vehicles sold in December last year, or a 77% rise over the same month in 2016.

Helping drive HCPI’s numbers were the 9,430 deliveries of the City (the company’s best-selling model), sales of which grew 6%. Following it was the BR-V SUV, with 7,212 units sold. Still, the fastest pace was set by the Civic, increasing by 66% with 4,146 units sold.

Isuzu Philippines Corporation (IPC), which sold 30,086 units last year (growing 10% from the 2016 figure of 27,361), also recorded the company’s highest-ever sales performance in a calendar year and month. A total of 13,157 Isuzu Mu-X SUVs were sold, up 4% (from 12,657 units last year). In December, 1,997 Mu-X units were sold, up 27% from the month before. Additionally, 4,675 D-Max pickup trucks were sold from January to December, up 17.9% from the previous year.

IPC’s truck sales also recorded a healthy growth rate of 23% with 4,599 units sold in 2017, from 3,734 the year before. The company attributes much of the movement to its popular N-Series model.

Over at Bermaz Auto Philippines, Inc. (BAP), distributor of Mazda vehicles and parts in the country, “record sales numbers for the month of December and the full year of 2017” were also reported. A consolidated figure of 5,244 units “represents the company’s best sales year since taking over the Mazda distributorship five years ago… [with] the December 2017 sales registration of 1,006 cars, SUVs and trucks [seeing] best-ever monthly sales performance for the brand.”

BAP said nine months in 2017 saw the company’s highest on record since 2004, and that the Mazda2, Mazda6, CX-3, CX-5, CX-9 and MX-5 all logged their “best-ever sales year in 2017.”

HARI also posted an all-time-high 37,678 units in sales last year, representing a 12% hike over the company’s 33,695-unit total in 2016. The Hyundai Accent proved to be its strongest seller, moving 16,454 units while registering a 33% growth over 2016. With 1,963 units sold, the Elantra mustered a 20% gain over the previous year.

HARI’s light commercial vehicle segment tally notched a 23% gain in 2017 with sales of 1,963 units, compared to 1,631 units in 2016. The largest contributor to the segment’s sales remained to be the Grand Starex with 4,295 units sold in 2017, increasing 15%, or 562 units, from the previous year.

“The fastest growing unit in this segment is [the] H-100, which closed at 3,439 units for 2017 from 2,280 units last year. H-100 registered an enormous growth of 51%,” HARI said in a statement.

Despite last year’s sales performance, CAMPI maintained it assumes a “cautiously optimistic outlook for 2018.” Said Mr. Gutierrez: “CAMPI remains confident that the market will be able to adjust to the new auto excise tax in 2018.”

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