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UST architect presents study on elevated walkway project at World Planning Congress

Architect Henry Felix E. Herrera of the University of Santo Tomas (UST) Graduate School and College of Architecture presents study on urban lifestyle mobility.

Architect Henry Felix E. Herrera of the University of Santo Tomas (UST) Graduate School and College of Architecture presented his research on urban mobility at the 60th World Planning Congress of the International Society of City and Regional Planners (ISOCARP), held in New Clark City from Sept. 10 to 13, 2024.

The event, which coincided with the 1st International Conference for New Cities, brought together planning experts and delegates from Europe, the United States, South Africa, and across Asia.

Mr. Herrera’s presentation, titled “Reinvigorating Urban Lifestyle Mobility: A Convenience-Value Evaluation of the Social Architecture and Planning of the Sampaloc Skywalk,” explored a proposed elevated pedestrian walkway that would link España Boulevard to the LRT- 2 – C.M. Recto Station in Manila. The study examines how the project could improve pedestrian convenience, promote economic activity, and support human well-being by integrating mass transit access with walkable infrastructure.

The proposed skywalk would connect key transportation nodes — including the North-South Commuter Railway, LRT-2 Recto, and LRT-1 Doroteo Jose stations — as well as nearby commercial and institutional buildings. Mr. Herrera’s research emphasized the importance of socially inclusive, environmentally responsive, and economically supportive urban infrastructure.

Findings from surveys, interviews, and focus group discussions suggest that the project has gained broad support among stakeholders. The study is published in Volume 9 of The Antoninus Journal.

 


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Meralco in talks with foreign firms for new nuclear energy partnership

STOCK PHOTO | Image by Vwalakte from Freepik

MANILA ELECTRIC CO. (Meralco) is engaging with other foreign firms to explore small modular reactor (SMR) development after a feasibility study with a US company failed to progress, a company official said.

“UltraSafe has been facing some financial challenges, which is why our partnership did not progress,” Ronnie L. Aperocho, Meralco’s executive vice-president and chief operating officer, told reporters on Friday last week.

“We’re looking for partners for SMR. We are talking to many [companies],” he added. 

Mr. Aperocho noted, however, that the company can only move forward with the passage of a nuclear law in the Philippines. 

Under the Philippine nuclear energy roadmap, the country aims to have at least 1,200 megawatts (MW) of nuclear energy capacity by 2032, scaling up to 2,400 MW by 2040 and 4,800 MW by 2050. 

By 2025, the necessary laws on the nuclear legal and regulatory framework are targeted to be in place.

In 2023, Meralco and UltraSafe Nuclear Corp. signed a cooperative agreement to study the potential deployment of one or more micro-modular reactors (MMRs) in the country.

The two companies conducted a feasibility study on MMR development for Meralco’s target commercial deployment, but it was not completed due to UltraSafe’s financial challenges.

Meanwhile, Mr. Aperocho said the company is exploring a partnership with Électricité de France SA (EDF), a multinational electric utility company owned by the French government, to assess the financial viability of developing a nuclear project. 

The Meralco executive was present at the signing of the memorandum of understanding (MoU) between US-based integrated energy solutions firm Eōs Organization, Fullbright Philippines, and Mindanao State University-Iligan Institute of Technology. 

“This MoU is very much aligned with our development strategy at Meralco, so we have been sending scholars already. Better that we have this local training program for our future nuclear engineers or technicians,” Mr. Aperocho said. 

Under Meralco’s Filipino Scholars and Interns on Nuclear Engineering (FISSION) program, the company has sent scholars for nuclear engineering studies to the United States and China and plans to send scholars to Canada and France.

Upon their return to the Philippines, these scholars will be reintegrated into Meralco, taking on roles in its nuclear power generation unit.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Cebu Landmasters sets P15-B capex for 2025

CEBULANDMASTERS.COM

LISTED Cebu Landmasters, Inc. (CLI) is allocating approximately P15 billion for capital expenditures (capex) this year as it seeks to expand its portfolio. 

“Around P15 billion,” CLI Chief Operating Officer Jose Franco B. Soberano said during a media briefing in Makati City on Friday last week.

This year’s capex is slightly higher than the P14.5 billion allocated in 2024.

CLI Chief Financial Officer Beauregard Grant L. Cheng said the budget covers ongoing capex for existing projects. 

“This includes all the projects we’re building up, all the projects we have launched in the recent past, potential land acquisitions, as well as projects that we are newly launching,” he said.

The VisMin real estate developer previously announced a P12-billion budget for two initial projects — a horizontal development and a condominium — as part of its planned entry into the Luzon market. 

“The P12 billion was our approximate capex spending for two projects we plan to do in Manila. But that’s over a four-year period of construction. So far, it’s still the same amount,” Mr. Soberano said.

On Friday, CLI raised P5 billion from a sustainability-linked bond issuance to fund the construction of 16,000 affordable housing units by March 2029, contributing to efforts to address the housing backlog in the Visayas and Mindanao. 

The issuance consisted of Series D bonds, totaling P2.86 billion, with an interest rate of 6.6348%, and Series E bonds, worth P2.14 billion, with an interest rate of 6.9157%. 

CLI’s issuance is the country’s second sustainability-linked bond, a financial instrument tied to environmental, social, and governance objectives. The company must build 8,500 affordable housing units by February 2027 and a total of 16,000 units by February 2029. 

Failure to meet the target will result in a 7.5-basis-point increase in interest rates.

“Right now, we have a lot of projects. We launched in General Santos. We have ongoing projects in Iloilo, Bacolod, Ormoc, and Cebu. As we finish all these projects, they’re going to count toward our compliance with these measures. They’re already in progress,” Mr. Cheng said.

The recent bond issuance is the second tranche of CLI’s P15-billion shelf-registered bond program, with the third tranche planned for the third or fourth quarter of this year.

CLI shares were last traded on March 21 at P2.57 per share. — Revin Mikhael D. Ochave

Macan-bracadabra

PHOTO BY KAP MACEDA AGUILA

Porsche’s smallest crossover weaves all-electric magic

IN CASE you weren’t paying attention, the Porsche Macan’s latest iteration (or second generation, first revealed globally in January 2024) has shed its internal combustion engine (ICE) for — in the case of the Macan 4 — two electric motors, one on each axle. A bit of news though before we commence with this piece: We asked Porsche Philippines and learned that the ICE version is still on sale, while supplies last.

That out of the way, a small group of media practitioners went on a southward drive recently aboard four units of the Porsche Macan 4, taking turns as we took a long, twisty, and undulating 83-kilometer route to scenic Escala Tagaytay. Of particular note is the winding spine of the Talisay-Tanauan Road.

The Macans glinted in the morning sunlight, all charged up and waiting for our group to board them in front of the Porsche Greenhills showroom. There was no need for a recharge, we were told. The vehicle’s range would not even be challenged. That figure, in case you’re wondering, is a WLTP-certified 613 kilometers.

I was assigned to a Dolomite Silver unit with fellow motoring scribe Alvin Uy. We noticed how refined the electric Macan drives — helped in no small way by the absence of an ICE. If you do miss the howl of a revving engine, engage the Macan’s Porsche Electric Sport Sound system for a commensurate sporty hum when you get heavy on the “throttle.”

The Macan 4’s aforementioned electric mills — called permanent magnet synchronous motors or PSM — deliver a stout 408hp and 650Nm of torque for such a compact vehicle. This translates into sprightly performance that allows a standstill-to-100kph time of 5.2 seconds. The PSM, said Porsche, consistently produces the same power “every time the throttle is applied.” Meanwhile, the vehicle’s low center of gravity and Porsche Active Suspension Management (PASM) leads to “outstanding driving dynamics, responsive and direct steering feel, and a ride quality offering a wide spectrum between comfort and performance.” What this means is that the Macan remains every inch a Porsche — earning the hallowed badge of the Stuttgart brand owing to its myriad of on-road talents.

It makes short work of winding roads even when (safely) taken at speed. Even on less-than-pristine terrain, the PASM’s shock absorbers deliver outstanding performance with two-valve technology that can be tailored for feel or comfort through rebound and compression level. The Macan also has an air suspension system, allowing the vehicle to be lowered by as much as 30 millimeters below its 185-mm standard ride height or elevated to a maximum of 225mm.

Inside, the Macan banners a highly digital affair through its display and control system, while still retaining some analog elements — more notably the tasty chrono on the dash. While the time is displayed digitally, the second hand is a physical one.

Collectively called the Porsche Driver Experience, the system tucks in a 12.6-inch curved display (instrument cluster), 10.9-inch central display (central infotainment screen), and a 10.9-inch passenger display. The content on the instrument cluster is highly customizable through the steering wheel controls.

The high-resolution central display, on the other hand, is exceptionally legible and doesn’t entail too steep of a learning curve. For the first time on the Macan, the other front seat is afforded an aforementioned passenger display, so he/she can be in charge of stuff like choosing the music or manning the navigation without distracting the driver or getting in his/her periphery.

The new-generation infotainment system is based on Android Automotive OS, and the Macan 4 features Porsche Communication Management (PCM) with the intelligent Voice Pilot function for voice commands and such. A so-called communication light stretches from one door panel to the other — helping the driver visualize, among other things, charging status. “It also works with select driver assistance systems, such as Lane Change Assist and Exit Warning, and can provide location-based warnings. For example, a pulsating signal of light in the door indicates danger to the driver if the door is opened when a cyclist is approaching from behind,” reported Porsche Philippines.

While it is a compact crossover, cabin space is decent — even for rear-seat occupants. I can report that I dozed off most peacefully while Alvin (and journalist William Herrera) were engaged in banter up front. I had A/C controls (and vents) for myself.

With regard to its electric nature, the Macan showcases 800-volt tech which, said Porsche, leads to quick charging times. When plugged into a 270-kW DC charger, the battery also reportedly “sprints” a la Porsche performance — from 10% to 80% in a scant 21 minutes. A more manageable (and battery-friendly) AC charging of 11kW yields an empty-to-full-battery time of about 10 hours. Charging of its 100-kWh lithium ion battery can be done on either side if you’re using alternating current; the DC port is on the left. The port doors are electrically retracted and closed via a touch gesture — or remotely through the PCM.

The high-voltage battery, which is situated low in the vehicle for improved center of gravity, is protected by a “lightweight but tough glass fiber composite underbody guard” versus physical damage. Additionally, “a cooling plate is integrated into the battery housing. Twelve modules, each with 15 prismatic cells connected in series, are mounted to it.”

When we got down from Tagaytay back to the Porsche Greenhills showroom — through monstrous traffic on EDSA (all the while never turning off the A/C) the Macan still had plenty of charge left — 54% after logging more than 200 kilometers — which is more than I can say for us old motoring scribes.

Wilcon eyes to open up to 10 new stores this year

WILCON.COM.PH

WILCON DEPOT, INC. plans to open up to 10 new stores this year as part of its expansion strategy, its president said.

“We already opened one, and we are going to open another in March,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan told reporters last week.

“[These stores] will be a combination of small- and medium-format,” she added.

Ms. Belo-Cincochan said most of these stores will be in Luzon, with another in Cebu, which the company targets to open in the second quarter.

The company has said its expectation of strong financial performance this year hinges on improved consumption.

The company declined to disclose the investment cost for its expansion.

Ms. Belo-Cincochan said the company is also renovating its existing stores.

“We want to focus on upgrading our existing stores to give a facelift to the older ones,” she added. 

The company operates two store formats: the traditional depots and the smaller Do-It-Wilcon stores. 

In December 2024, Wilcon opened its 100th store in Lubao, Pampanga, reaching the milestone a full year ahead of its 2025 target.

Ms. Belo-Cincochan said the company added a total of 10 stores last year.

For the first nine months of 2024, Wilcon recorded a 22.3% decrease in net income to P2.12 billion as net sales fell by 1% to P25.68 billion. 

The company attributed the decline to persistently weak demand for major home improvement and finishing construction supplies, as well as delays in construction projects due to bad weather. 

Shares in the company closed 30 centavos, or 4.17% higher, at P7.50 apiece on Friday. — Ashley Erika O. Jose

Ford PHL rolls out ‘Mobile Service Vehicle’

The Ford Mobile Service Vehicle (MSV) is fully equipped to provide after-sales service wherever the customer is. — PHOTO FROM FORD PHILIPPINES

Brand’s after-sales services can go where customers are

By Dylan Afuang

LOCAL FLEET operators and private owners of new and older vehicles from the Blue Oval will add to some 370,000 customers whose cars have been serviced or repaired, at locations most convenient to them, by the Ford Mobile Service Vehicle (MSV).

After the car maker initiated the MSV and “delivered over 370,000 experiences in 2024” in India, Thailand, South Africa, and Vietnam, Ford Philippines customers here can now have their vehicles serviced, inspected, or repaired for minor damage at their place of residence or any other feasible location.

“One way to see this is that we have another service bay outside the dealership,” Ford Philippines Customer Service Division Director Joyce Laxamana explained to the media during the MSV launch in Makati City. Aside from privately owned cars, the MSV can serve a fleet of company cars per visit, the executive added.

“The MSV is a fully equipped and capable mobile unit,” Ms. Laxamana said. “It is capable of (addressing) up to 70% of vehicle (concerns).”

“The MSV is equipped with advanced diagnostic systems and is loaded with Ford Genuine Parts and specialized tools,” a release provided by Ford Philippines said. A variety of services “which include oil changes, wiper replacements, multi-point inspections, tire rotations, brake services, boosting and replacement of batteries, replacement of filters, lamps, bulbs and fluids, field service actions, and vehicle software updating,” can also be performed by the remote service.

“The MSV saves time and eliminates the need for customers to visit a Ford dealership, while getting top-notch service from highly skilled Ford technicians,” the company added. Ford Philippines Managing Director Pedro Simoes summarized, “Ford owners can now experience convenient and expert servicing wherever needed, saving them time and ensuring that their vehicle remains in top condition.”

Ford Philippines currently has 10 MSVs deployed across its dealerships in Luzon, Visayas, and Mindanao, the company’s customer service director added. Ford owners can schedule a service appointment with the MSV by contacting their nearest Ford dealership or visiting the company’s website (ford.com.ph/service-booking).

During the media launch for the service, MSV and brand technicians from the Ford Makati dealership conducted a live maintenance service on the brand’s Territory crossover owned by a customer who resides in a gated neighborhood of the same city. A Ranger pickup was outfitted with computers, equipment, and tools to make it an MSV.

To book an MSV service, owners can use the website to enter information about their car, the kind of maintenance it needs, and their desired appointment time and date. Owners will then receive a service quotation with a breakdown of the parts and fluids to be replaced and labor costs. They will receive a reference number after completing the forms, which they may use to verify or modify their appointment.

“(For now) we plan that the MSV services two vehicles a day, one in the morning and one in the afternoon. It can be driven by traffic conditions and the kind of service that will be requested by the customer,” Ms. Laxamana clarified.

PHL seen well-positioned to avoid worst of Trump tariffs

REUTERS

THE PHILIPPINES, a domestic demand-driven economy, has the potential to avoid the worst of the new US tariff regime relative to its neighbors, Moody’s Ratings said.

“No economy in Asia and the Pacific (APAC) will be immune but those that are primarily domestically driven — such as India, Indonesia and the Philippines — will cope better,” it said in a report.

US President Donald J. Trump is planning to impose reciprocal tariffs on countries that tax US imports early next month.

Since taking office in January, Mr. Trump has imposed a 20% levy on all Chinese imports and a 25% tariff on all steel and aluminum imports.

“Intensification of geopolitical pressures could further harm the APAC region, as fragmentation policies are likely to reduce activity — and thus lower demand for exports,” Moody’s said.

The credit rater also said the Philippines is unlikely to be a primary target of tariffs.

“Indonesia and the Philippines, with smaller surpluses and growing defense ties with the US, are likely to face fewer tariffs,” it added.

The US is the top destination for Philippine-made goods. In 2024, exports to the US were valued at $12.12 billion or 16.6% of total export sales.

On the other hand, the value of Philippine imports from the US was $8.17 billion or 6.4% of total imports.

However, Moody’s warned of the indirect impact of the tariff war on the overall region.

“Growing dependence on China suggests the indirect impact of tariffs on ASEAN could be significant,” it said.

“The decline in export demand poses risks for economies striving to emulate China’s export-led growth model, as competing in an increasingly interventionist trade environment becomes difficult.”

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. has expressed concern about the indirect spillovers coming from the US trade policies.

“The potential end of the de minimis exemption could significantly reduce demand for small-parcel goods from China, creating challenges for Chinese e-commerce platforms with high US exposure,” Moody’s said.

“Additionally, redirecting exports away from the US may create competitive pressures for manufacturers in other regions, posing further barriers for China’s export sector.”

Moody’s also said heightened global policy uncertainty could “negatively impact business confidence, leading to reduced investment in the region.”

“Even if bystander economies such as ASEAN gain export share, they may still be worse off because of a smaller global economy,” it added.

The BSP reported that foreign direct investment net inflows declined 85.2% to $110 million in December, its lowest level in 11 years. — Luisa Maria Jacinta C. Jocson

D&L Industries eyes second biodiesel plant

PHILSTAR FILE PHOTO

LISTED specialty food ingredients and oleochemicals manufacturer D&L Industries, Inc. is considering building a second biodiesel plant to meet rising demand following the government’s biodiesel blend expansion.

“D&L is currently in the final stages of evaluating the risks and returns of building a new biodiesel plant, with the decision largely contingent on how well it aligns with the company’s strategic growth objectives and the goal of maximizing long-term shareholder value,” the company said in an e-mail statement over the weekend. 

D&L’s subsidiary, Chemrez Technologies, Inc., operates a biodiesel plant in Quezon City. It is the largest biodiesel manufacturer in the Philippines, with an annual capacity of 90 million liters.

Since Oct. 1 last year, all diesel fuel sold in the country has been required to contain 3% biodiesel or coco methyl ester, following a government mandate to boost the coconut industry. The blend will increase to 4% by Oct. 1 this year and to 5% by Oct. 1 next year.

“The positive regulatory developments, coupled with a greater recognition of the economic and environmental benefits of a higher biodiesel blend, present an opportune time to invest and capitalize on the industry’s potential. D&L sees this as a critical juncture in reinforcing and expanding its leadership in the industry,” the company said.

“D&L maintains a positive long-term outlook on the local biodiesel sector, recognizing the significant benefits that an increased biodiesel blend can offer to the economy, environment, and consumers,” it added. 

The company is now considering a second biodiesel plant since its P10-billion manufacturing facility in Batangas has been completed and it has no other major capital expenditures (capex) in the pipeline.

“D&L has the financial flexibility to potentially undertake the construction of a new biodiesel facility, which would require much smaller capex compared to the amount spent on the Batangas plant,” it said.

Meanwhile, D&L said further investments in biodiesel production would help reduce carbon emissions, support the local coconut industry, and lessen dependence on imported fuels. 

“With at least 20% of the Philippine population directly or indirectly benefiting from the coconut industry, the potential for economic value creation in the form of additional investments and jobs in both the agriculture and manufacturing sectors is significant,” D&L said.

D&L is allocating around P1 billion for capex this year. In 2024, the company’s net income rose by 2% to P2.3 billion, despite higher operating and interest expenses from the Batangas plant.

D&L shares were last traded on March 21 at P5.39 per share. — Revin Mikhael D. Ochave 

Hongqi Philippines eyes ‘major expansion’

Hongqi H9 — PHOTO FROM HONGQI PHILIPPINES

WITH A HISTORY dating back to 1958, Chinese auto marque Hongqi has been “synonymous with uncompromising elegance, crafting vehicles that served global leaders,” said Hongqi Philippines. Introduced in the Philippine market in 2023, the luxury brand is demonstrating its commitment through the expansion of its dealership network. After establishing a flagship showroom in Bonifacio Global City (BGC), Hongqi has broadened its presence to include new locations in Manila Bay, Alabang, and Quezon City. This strategic growth ensures that more Filipinos have access to Hongqi’s luxury vehicles, including both all-electric and internal combustion engine models. The expansion reflects Hongqi’s “dual-power approach” and its aim to meet the increasing demand for premium automobiles in the Philippines.

Spearheading Hongqi’s charge are the flagship H9 sedan, and the E-HS9, Hongqi’s all-electric SUV.

“The H9 and E-HS9 are just the beginning of a new era for Hongqi, a new bold and sustainable direction,” asserted Hongqi Philippines President Rashid Delgado. Hongqi is poised to expand its presence throughout 2025 and beyond. “By granting the Filipino market full access to the pinnacle of automotive luxury with new showrooms, new models, and a new direction, Hongqi dares drivers to defy standards.”

With Hongqi, Filipinos don’t just get groundbreaking vehicles with commanding designs; they seize the opportunity to express their individuality and rewrite the rules. To see the complete lineup, drop by Honqi dealerships at BGC, Manila Bay, Alabang or Quezon City, or visit https://www.hongqi.ph. Follow the company on Facebook (hongqi.philippines) and Instagram (hongqi.ph).

Luxury fashion betting on designer reshuffles faces tricky road ahead

PARIS/MILAN — A slump in luxury fashion is prompting designer reshuffles at top houses Gucci, Chanel, and Dior to reignite heat around their brands — while avoiding too radical a reset that could confuse affluent shoppers.

The stakes are high, as the €363 billion ($395.09 billion) global luxury goods market grapples with its lowest sales rates in years after an economic slowdown in China and rising inflation elsewhere make high-end consumers more reluctant to splash out.

“Brands are under more pressure than ever to balance creativity with commercial viability, while also maintaining relevance in a constantly shifting market,” said Lydia King, group buying and merchandising director at upscale British department store Liberty.

Kering-owned Gucci and Chanel are placing their bets on rising stars from much smaller labels, with LVMH’s Dior likely soon to follow suit. But new designers face the tricky task of bringing the right dose of renewal, with investors giving them little time to establish themselves.

The recent announcement that Gucci had appointed Balenciaga designer Demna to head its design teams sent Kering shares down over 10%, wiping around €3 billion off the group’s market value.

In an era of “superstar” creative directors, designers shape the identity of brands, even overshadowing a brand’s heritage, said Jacques Roizen, of consultancy DLG.

Many analysts had lobbied for bolder fashion at Gucci following a two-year push upmarket with more classic designs, but investors worry Demna, 43, who brought buzz to Kering’s smaller label with high-end streetwear styles, might not be the right fit.

Creative directors are redefining “not only the aesthetic direction but also the positioning and clientele of the houses,” said Mr. Roizen.

As China remains subdued, luxury brands are pinning their hopes on the US market this year, although signs of economic uncertainty are creeping in.

Chanel, which is privately owned, is bringing in Matthieu Blazy, 40, after his successful run at Kering’s Bottega Veneta. He faces the daunting task of ushering in a fresh design approach, overseen for decades by Karl Lagerfeld, and then by longtime collaborator Virginie Viard following Mr. Lagerfeld’s death in 2019.

The importance of the creative director can vary by brand, said Flavio Cereda, who manages GAM’s Luxury Brands investment strategy.

Since Ms. Viard’s abrupt departure last year, Chanel has emphasized trademarks, sending models down a runway shaped in its interlocking-C logo or wearing clothes adorned with signature black bows — at Mr. Lagerfeld’s preferred venue, the Grand Palais in Paris.

INDUSTRY-WIDE CHANGE
LVMH has yet to officially announce new creative leadership at Dior after menswear designer Kim Jones left in January, but is likely to soon hire a new designer, expected to be Jonathan Anderson. His departure from Loewe was announced on Monday, but LVMH declined to comment on Mr. Anderson’s future role.

There are also new faces at a host of smaller brands, including LVMH’s Celine and Givenchy, and Donatella Versace, 69, is stepping aside at Versace after nearly three decades, replaced by Miu Miu’s Dario Vitale.

“Clients don’t know where to go anymore with all these musical chairs,” said Yannis Ouzene, a sales assistant for a major European brand on the Avenue Montaigne in Paris, home to some of the most exclusive fashion houses.

“I don’t recall seeing such a significant shift in creative leadership across the luxury industry,” said Achim Berg, fashion and luxury industry advisor.

Change will sweep through studios, merchandising teams, marketing departments and design teams — but takes time, with no visible impact likely until next year, he added.

Brands need to be wary of bewildering clients with “too drastic changes in the aesthetic language of a brand,” said Federica Levato, senior partner at consultancy Bain.

For Chinese shoppers, the “here and now” of a brand’s design is more important than its historical context, while Western shoppers place “significant value on the continuity of a brand’s identity,” said Mr. Roizen.

For some, the designer is not a deal clincher.

“I don’t care who the designer is,” said Stephanie Gold, an American tourist in Paris who recently purchased a pair of prominent Dior glasses. “I don’t like to buy what everybody has.”

The luxury sector overall — which averaged annual growth of 10% over 2019-2023 — is expected to grow around 4% in 2025, with sales to Americans accounting for over a third of the global growth, up 7%, compared with a 1% decline from the Chinese, based on UBS estimates.

Olivier Abtan, consultant with Alix Partners, says brands have to be careful not to wait too long before shaking things up.

As the market awaits word on Dior’s new design chief, and LVMH grapples with shopper fatigue buffeting the industry, some wonder whether design change at Dior, which lags behind group heavyweight Louis Vuitton, should have come sooner.

Change needs to be made “as soon as a brand senses growth is slowing,” Mr. Abtan said. — Reuters

The real question from the midterms

FORMER PRESIDENT Rodrigo Duterte delivering his first State of the Nation Address on July 25, 2016. — PHILIPPINE STAR/KJ ROSALES

Former president Rodrigo Duterte will likely remain isolated in The Hague for the foreseeable future, possibly until the 2028 presidential elections. The mantle of leadership for the pro-Duterte opposition will, therefore, transfer to his daughter, Vice-President Sara Duterte. Senator Bong Go has a shot at being number one in the senate; but this does not automatically turn him into a presidential contender. The race for the presidency and vice-presidency of the land is littered with the political corpses of top-placing senatorial winners.

This gives the potential impeachment trial against Sara Duterte greater importance. If she is found guilty, she will not only be removed from her post but disqualified from running for the presidency. The narrative that emerges from the May 12 midterms could signal whether the administration has the momentum going into the possible impeachment trial against her. I use the word “possible” because the impeachment trial is still not certain. There may be a challenge before the Supreme Court on whether an impeachment filed in a previous congress can continue in the next congress. Also, the administration may be taking a calculated risk, because senators could be unwilling to convict the vice-president — and the answer to how they see the impeachment could depend on the outcome of the midterms.

Several surveys done in February — before Duterte’s arrest — show the administration slate winning at least nine, even possibly 10, of the 12 senate seats. Should this be the case then the administration will trumpet the outcome as validating its policies and politics, and may even use it to push its impeachment plans forward. However, should the administration win only seven seats or less, then it may give pause to senators, who could read it as a sign that the former president’s arrest may have created more sympathy for him and the Duterte family.

The senate midterms have degenerated into popularity contests, where ideological consistency and policy platforms are weak currency. At best, a candidate might sneak into the 10th to 12th positions by trying to hit the equivalent of an election bullseye — which is to ride on a popular narrative on a topic in the hope that there are enough marginal voters who care about that issue to catapult them from the ranks of the also-rans to the tail-end of senate winners. Meanwhile, congressional and local government races will be decided mainly by local issues, as well as the promise of delivering patronage, not so much on whether a local candidate can implement a national program at the local level.

Before the former president’s arrest this would, all things being equal, have worked against the nominal opposition, which for now is the slate identified with Vice-President Sara Duterte. Finding the hook on which to pull voters to the Duterte side is not as easy as it was in 2016, when the family stormed onto the national stage.

Now, however, it could try to build public animosity and anger with the administration on the arrest of President so that its second-tier candidates outside of incumbent senators Bong Go and Bato de la Rosa have a chance. And it will have to do this within two months.

But this is also not assured. The economy is doing moderately well, and inflation is broadly under control, so the gut economic issues are not problematic for the administration. International rice prices are at their lowest in years, and this should feed into the economy soon.

Also, trying to ride on the same issues that defined the Duterte brand under the former president, which is that of the political outsider who would upend the entrenched elite-dominated system in Manila while bringing lawlessness under control, and making the streets safe, is no longer a slam dunk. Duterte’s anti-drug campaign may have had some success, but at a very high cost in terms of lives, while generating significant public — even moral — anxiety over the way in which it was prosecuted. His embrace of China to balance out foreign policy was muddled by his administration’s inability to bring the worst of the POGO problems under control. And ultimately, the identification with those policies may be personal to former president Duterte, with only limited transferability to his endorsed candidates.

In analyzing why voting has degraded into a process that focuses on these political caricatures of pro- or anti-Duterte and binary formulations, instead of substantial issues and party platforms, the easy way out is to blame the voter, for being undiscerning, or the politicians, for substituting song-and-dance and comedic routines on stage, flooding the streets with their posters and billboards, or, at the local level, promising largesse to those who support them, instead of engaging in serious debate on the issues.

But both the voters and politicians are simply being efficient. Making an informed choice on who to vote for across a wide range of issues is time consuming and costly for a voter. After all, who has the time to go through the track record and programs of every single candidate for the senate, and then figure out which of their promises are proper or viable, or have the support of their allies and their parties? Holding politicians accountable once they are in office is even more difficult, because that requires coordinated action. A politician can make 10 promises easily during a campaign, knowing fully well that they will be barely held accountable three years from now on whether these promises were fulfilled or not.

The belief that the internet would make for better-informed voters is unjustified. It is a myth because we can absorb only so much information without being overwhelmed. Instead of fostering debate, the channels for political debate and engagement that have arisen through technology have instead increased the flow of disinformation, catered to biases, and walled us off into tribes.

On the other hand, politicians recognize that recall at the ballot box matters most because voters have little trust in the system, so building a consistent policy platform has low electoral returns. Instead of focusing on programs or party-building once they are in office, most politicians direct their time to fund-raising and alliance building (or preservation) and enhancing the patronage networks that they, or their relatives, will need for the next elections. Coalitions within congress are built on this assumption, i.e., the access to resources, not on differentiation based on programs or ideology.

The solution to this problem is a redesign of the political system, and public and private investment into education and, just as importantly, institutions that foster measured and informed discussions, not the demonization of voters. But the specifics will not be easy. Going straight to the voters with information campaigns is ineffective. We need to build a system that will encourage the development of what I call intermediary institutions that can effectively work between voters and candidates, and sift through information and distill these into digestible and understandable formats so that voters can focus on programs, not personalities. In the past these roles were performed by political parties, social organizations, interest groups, and the media. But these were co-opted by powerful interests through public or vested-interest corruption, and their credibility eventually diminished.

Redesigning our political system in an age where algorithms constantly adjust so that they can capture or even dominate our attention will be even more difficult than in the past. But the alternative is more of the same, where voter frustration morphs into disenchantment and polarization, which discredits institutions and leads to distorted electoral politics and more voter frustration and so on. In some societies, this leads to a social blow-up; in our case, it leads to emigration.

To move out of this spiral, we will have to pursue real democracy, but that will require a deeper overhaul of our system than what is currently achievable under our current politics.

 

Bob Herrera-Lim is a managing director at Teneo, a New-York based consulting firm that advises companies and investors globally. He covers all of Southeast Asia for the firm’s clients. He is also a fellow of the Foundation for Economic Freedom.

Treasury bills, bonds may fetch lower yields on BSP easing bets

BW FILE PHOTO

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may go down on expectations that the Bangko Sentral ng Pilipinas (BSP) could resume its easing cycle as early as next month following dovish comments from policy makers.

The Bureau of the Treasury (BTr) will auction off P22 billion in T-bills on Monday, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers.

On Tuesday, the government will offer P35 billion in T-bonds — P10 billion in reissued seven-year debt with a remaining life of three years and 27 days and P25 billion in reissued 25-year bonds with a remaining life of 24 years and 10 months.

T-bill and T-bond rates could be in line with secondary market yields, which broadly declined amid dovish signals from the BSP, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A trader said in an e-mail that the reissued seven-year bond could fetch rates ranging from 5.75% to 5.85%, while the 25-year note could see yields within 6.4% to 6.55%.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went down by 7.3 basis points (bps), 4.17 bps, and 10.43 bps week on week to end at 5.1769%, 5.5258% and 5.6877%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of March 21 published on the Philippine Dealing System’s website.

Meanwhile, the seven-year bond climbed by 2.04 bps week on week to 6.0985%, while the three-year debt, the tenor closest to the remaining life of the reissued papers to be offered this week, went down by 1.24 bps to 5.8313%. For its part, the 25-year paper inched down by 0.68 bp week on week to 6.3062%.

BSP Governor Eli M. Remolona, Jr. told Bloomberg News last week that the Monetary Board could cut rates at their April 10 policy meeting following the surprise pause at their February review, especially if March inflation turns out better than expected.

March inflation data will be released on April 4. Inflation sharply eased to 2.1% in February, bringing the two-month average to 2.5%. This is well within the central bank’s 2-4% target.

Mr. Remolona added that the BSP could deliver 50 bps in cuts this year, with 75 bps in reductions likely if economic growth weakens further.

There is a “high probability” that the BSP will deliver a rate cut at its April 10 meeting, Finance Secretary Ralph G. Recto, who is also a Monetary Board member, also told Bloomberg TV last week.

Mr. Recto added that the BSP could reduce benchmark borrowing costs by 50-75 bps this year, which could boost economic growth.

The BSP has brought down benchmark borrowing costs by a cumulative 75 bps since it began its easing cycle in August last year.

Last week, the BTr raised P30.8 billion from the T-bills it auctioned off, higher than the initial P22-billion plan, as total bids reached P118.944 billion, more than five times as much as the amount on offer.

Broken down, the Treasury borrowed P9.8 billion via the 91-day T-bills, higher than the P7-billion plan, as tenders for the tenor reached P35.384 billion. The three-month paper was quoted at an average rate of 5.118%, declining by 6 bps from the previous auction. Tenders accepted by the BTr carried yields of 5.1% to 5.123%.

The government also made a P9.8-billion award of the 182-day securities, above the programmed P7 billion, as bids stood at P31.05 billion. The average rate of the six-month T-bill was at 5.496%, 5.2 bps lower, with accepted rates ranging from 5.45% to 5.513%.

Lastly, the Treasury raised P11.2 billion via the 364-day debt papers, more than the P8 billion placed on the auction block, as demand for the tenor totaled P52.06 billion. The average rate of the one-year debt decreased by 7.6 bps to 5.697%, with bids accepted having yields of 5.693% to 5.713%.

Meanwhile, the two bond issues to be auctioned off this week were last offered on Jan. 28, where the government raised a total of P40 billion, higher than the P35-billion plan.

Broken down, the BTr raised P15 billion as planned from the reissued seven-year papers at an average rate of 5.894%.

It also borrowed P25 billion from the then-new 25-year papers, higher than the P20-billion program, as the government opened its tap facility to take advantage of the strong demand for the tenor. The issue fetched a 6.375% coupon and an average rate of 6.334%. — A.M.C. Sy