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Style (08/26/24)

Sally Hansen glosses up

SALLY HANSEN is introducing the latest additions to its range of nail products: the Miracle Gel Cozy Chic Collection, two new Miracle Gel Special Effects Top Coats — Moonlit and Glazed — and the Miracle Gel Color Grip Primer. These products promise salon-quality manicures with long-lasting color and shine, without needing a UV light. The Sally Hansen Miracle Gel Cozy Chic Collection (P645 each) is inspired by the warmth of cable knits and the comfort of creamy coffees. This lineup of creme shades will complement even the most neutral outfits. Pair it with a Miracle Gel Top Coat to get up to eight days of chip-resistant nails. The Sally Hansen Miracle Gel Special Effects Top Coats (P695) are 100% vegan, cruelty-free, and designed to mix and match with your favorite polish for a customized manicure that fits any look. For an iridescent shine, use the Sally Hansen Miracle Gel Moonlit Top Coat. To capture a pearlescent dewy manicure, try the Sally Hansen Miracle Gel Glazed Top Coat. For a manicure that truly lasts, there is the Sally Hansen Miracle Gel Color Grip Primer (P695). This primer preps the nails for optimal color adhesion, extending the life of nail polish by up to two additional days. When used as part of the Miracle Gel three-step system, it delivers up to 10 days of color and shine. Sally Hansen is available at Rustan’s (Makati, Shangri-La Plaza, Alabang), The SM Store (North EDSA, Makati, Mall of Asia, Megamall), LOOK (SM Aura, SM Mall of Asia), The Landmark (Trinoma, Makati, Bonifacio Global City), Mitsukoshi Beauty; and online at Rustans.com, Lazada, and Shopee.

COS unveils A/W 2024

NATURE continues to inspire in the COS Autumn Winter (A/W) 2024 collection, with a neutral palette enhanced by rich burgundy tones. In womenswear, an angular blazer and straight-leg trouser suit sit seamlessly alongside a Responsible Wool Standard certified hooded top, paired with a voluminous leather skirt. A sculptural checkered jacket in woven leather exhibits a uniquely tactile surface, while effortless, loose-fitting leather, wool, and denim trousers are dressed up with leather shirting or softened by fine knitwear. Leather boots, loafers, or buckled sandals finish each look, complemented by fringed or quilted clutch bags. The menswear collection features modern twists on traditional styles, including a contemporary wool herringbone coat designed for day-to-evening dressing. Experimental layering highlights innovative and well-proportioned fits, while relaxed, loose-fitting suiting, and textured knitwear contrast with the sharp, clean lines of elegantly tailored shirts. Fluid trousers are worn with oversized leather jackets, while casual denim sets feature statement topstitching. Woven leather accessories, neckties, and winter scarves complete menswear looks this season. The season’s marketing campaign features Academy Award nominee, actor, and playwright Colman Domingo, actor Christopher Abbott, and singer Aidan Bissett, alongside model and actress Mariacarla Boscono, who closed the brand’s Spring/Summer runway in Rome this spring, photographed by Karim Sadli.

NUXE Honey Lip Balm marks 30th anniversary

FOR 30 years now, the NUXE Rêve de Miel Collection has been known for its moisturizing honey-infused products with botanical oils. It all started in 1994, when NUXE founder Aliza Jabès thought of creating a honey-based balm to repair the lips. An error in the first trials produced a very thick texture, but the formula was found to be extremely effective. The NUXE Rêve de Miel Honey Lip Balm (P995) is ideal for nourishing, repairing, and softening very dry and sensitive lips with 100% natural-origin ingredients. The combination of beehive concentrates such as lavender honey from Provence, propolis, and beeswax form a “dressing” effect that soothes and nourishes the lips. Its formula contains notes of grapefruit and lemon. Other NUXE Rêve de Miel favorites include the Honey Lip Care 10ml (P1,250), the newest addition to the NUXE Rêve de Miel Collection. This transparent oil-based formula contains honey and organic camelina oil that hydrates and comforts the lips without a sticky feeling. Apply the Honey Lip Care on the lips using the foam applicator any time of the day and achieve an ultra-glossy finish. The NUXE Rêve de Miel Lip Moisturizing Stick (P595) is a staple for softening and restoring comfort to dry lips all day. Its light formula with honey and organic sunflower oil leaves a non-stick finish on the lips. To give lips a pink glow, there is the NUXE Very Rose Hydrating Lip Balm (P995). Use this moisturizing lip balm before applying lipstick for improved hold and to keep lips smooth and soothed with its rose oil extract. NUXE lip care products are exclusively available in-store at Rustan’s and LOOK; and online on Rustans.com, Lazada, and Shopee.

M&S Beauty gets buttery

MARKS & SPENCER (M&S) Beauty announces the launch of its new own-brand range, Burst Bodycare, made with up to 98% natural ingredients. Burst Bodycare’s body butters are the highlight of the range, clinically proven to provide 96 hours of moisturization. In addition to body butters, Burst Bodycare offers a body scrub, body wash, hand wash, and hand lotion in five fragrances: Shea, Orange, Mango, Melon, and Cherry. These formulas featuring shea butter are created with fruit extracts which are kind to the skin. The range is dermatologically tested, cleansing, and clinically tested. Shop Burst Bodycare in selected M&S stores: Glorietta 4, Greenbelt 5, Shangri-La Plaza Mall, Mall of Asia, SM Aura, Alabang Town Center, Trinoma, and SM North EDSA.

Health vs Wealth

The Philippine Health Insurance Corp. (PhilHealth), boasted of P22.955 billion in net income for the year ending March 31, 2024, earned from a net operating income of P16.557 billion, boosted by P6.397 billion in interest and other income.

The surplus can be simplistically gleaned from the difference between the P53.345 billion compulsory and automatically deducted premiums of contributing PhilHealth members (the “formal sector,” the “direct contributors,” those privately and publicly employed) and their employers (50-50% sharing), versus benefit claims of only P35.166 billion and P1.621 billion in operating expenses for 2024.

But of course, the net income of P22.955 billion for the year, with the prior year adjustment of P1.473 billion enriched the PhilHealth reserve fund as of March 31, 2024 to P488.107 billion. The reserve fund is for contingencies, like some unforeseen surge in benefit claims or emergency funding for extraordinary health situations. PhilHealth has complied with RA No. 7875 (July 25, 1994) to maintain a reserve fund not exceeding a ceiling equivalent to the amount actuarially estimated for two years’ projected Program expenditures. In 2023, PhilHealth’s reserve fund was P463.7 billion.

PhilHealth is healthy. Perhaps too healthy, and too wealthy.

Guess what? The Department of Finance (DoF) noticed PhilHealth’s robust health, and remembered the cumulative unutilized government subsidy for PhilHealth’s “indirect contributors” (non-paying beneficiaries) amounting to P89.9 billion between 2021 and 2023, contributing to its surpluses.

The DoF issued Circular No. 003-2024 in June, a directive to transfer unused subsidies from Government-owned- or -controlled corporations (GOCCs), specifically PhilHealth’s P89.9 billion, to the national treasury to bolster the government’s unprogrammed appropriations.  Unprogrammed appropriations are funds included in a government’s budget that serve as a financial reserve for projects, programs, or expenses that are not specifically itemized or detailed in the budget.

Public health reform advocates and budget watchdogs asked lawmakers to investigate the move of the executive department to divert billions of pesos in excess funds of GOCCs, particularly PhilHealth’s, to finance the unprogrammed appropriations this year (Philippine Daily Inquirer, July 15).  A petition has been filed with the Supreme Court, seeking to declare as unconstitutional the DoF circular and a provision in the 2024 General Appropriations Act (GAA) on which the circular was based, which allowed the impounding of the “savings” of all GOCCs for diversion to unprogrammed appropriations in the GAA — the new version of the congressional “pork barrel” (The Philippine Star, Aug. 19).

According to Finance Secretary Ralph Recto, the reversion of funds is legal and is provided for under the GAA, which says unused funds can be given back. Mr. Recto clarified, however, that only P20 billion has been remitted so far, which was used by government to fund the Health Emergency Allowance (HEA) of COVID frontliners. The remaining amount will be used for unprogrammed appropriations such as the Metro Manila Subway Project and routine maintenance of national roads. He also said they will not touch the contributions of members and that their benefits will not be affected (ABS-CBN News, July 30.)

In his third State of the Nation Address (SONA) on July 22, President Ferdinand Marcos, Jr. highlighted several improvements in the benefits packages offered by PhilHealth. However, what was not mentioned was the ongoing controversy over the diversion of billions of pesos in unused funds from the state insurer to the national treasury for unprogrammed appropriations (inquirer.net, Aug. 1). What also was not mentioned was that the PhilHealth contribution rate (premium) jumped from 4% to 5% of the contributor/employee’s monthly salary effective Jan. 1, as publicly announced on Jan. 12 this year (sunstar.com, March 1).

So, the unused subsidies (intended to alleviate the burden on PhilHealth’s direct contributors subsidizing the non-contributing indirect members — the indigent, senior, and incapacitated) would not have funded the increased benefits packages, but this will have to be funded by the increase to 5% of contributing direct premium-paying members.

On July 30, at the hearing of the Senate Committee on Health and Demography, PhilHealth President Emmanuel Ledesma, Jr. agreed with Committee chairperson Senator Bong Go that PhilHealth contributions must be reduced.  Mr. Ledesma promised to take up the reduction with Mr. Marcos Jr. along with the enhanced and expanded case rate packages, which should be funded from the “Universal Health Care (UHC) Law that provides that 50% of the National Government share from the income of PAGCOR (the Philippine Amusement and Gaming Corp.) as provided for in Presidential Decree No. 1869, as amended; and 40% of the Charity Fund (Sweepstakes), net of Documentary Stamp Tax Payments, and mandatory contributions of the PCSO (Philippine Charity Sweepstakes Office) as provided for in RA No. 1169, as amended, to be transferred to PhilHealth precisely for the improvement of its benefit packages” (philhealth.gov.ph).

Health rights advocates noted that the UHC Act is only halfway through its 10-year implementation timeline, with Filipinos still having to shoulder 45.95% of out-of-pocket health expenditure in 2022, according to the World Health Organization Global Health Expenditure report (ABS-CBN News, Aug. 2).  Reports show that the out-of-pocket share of the contributor for national health insurance in Thailand is only about 9%, and in Australia, 20%.  The late former Health Secretary Alberto “Quasi” Romualdez, Jr. (in office from September 1998 to January 2001), who pushed for universal health care, reproductive health, and tobacco control, once said that every Filipino should pay only P2 out-of-pocket for every P10 of quality healthcare (bworldonline.com/opinion, July 29).

Yet the second tranche of “excess funds” from PhilHealth amounting to P10 billion was transferred to the national treasury on Wednesday, Aug. 21, the Finance department said on Thursday.  The P10 billion was part of the P89.9 billion total in excess funds of PhilHealth that are set to be transmitted to the national treasury on a staggered basis. An initial P20 billion was already remitted last May.

“So, a total of P30 billion has been remitted to the Bureau of the Treasury,” DoF Director Euvimil Nina Asuncion said in a Bagong Pilipinas Gayon interview (gmanetwork.com, Aug. 22).

Was the admonition that the advocacy group, the 1SAMBAYAN Coalition, wrote to Finance Secretary Ralph Recto on Aug. 22 — “An Urgent Demand to recall the directive on remitting PhilHealth’s excess funds to the National Government” — too late and futile.;

“First, in the Executive Branch, only the President can be authorized by law to transfer savings from one item to another in the appropriations for the Executive Branch under the GAA (General Appropriations Act),” wrote the 1SAMBAYAN Coalition.  “The delegation of power in the 2024 GAA to the Finance Secretary to transfer savings (fund balance resulting from the review and reduction by the Finance Secretary of GOCC reserve funds to reasonable levels) from GOCCs to the Bureau of the Treasury to fund items in the Unprogrammed Appropriations in the 2024 GAA is unconstitutional for being an undue delegation of constitutional power that belongs exclusively to the President,” it said.

“Second, the two transfers of idle or unused funds to date from PhilHealth result is Technical Malversation of public funds, and constitute the crime of Plunder,” it said. “Under Section 29 (3), Article VI of the Constitution, the funds of PhilHealth are Special Funds raised through taxation for a specific purpose, and can be used only for the specific purpose intended by law, which is the universal health of the Filipino people, a purpose that has not been accomplished or abandoned.

“In view of the foregoing, we seek your sound discretion to recall the directive (DoF Circular 003-2024) to remit PhilHealth’s unused funds to the national treasury. In the event that no recall is made, we will be constrained to test the validity of the circular to the Supreme Court.”

It was signed, “in behalf of 1SAMBAYAN,” by Justice Antonio T. Carpio and Atty. Howard M. Calleja, convenors

— and in behalf of the Filipino people.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Experts from Malaysia, Singapore to advise Cotabato durian industry

BW FILE PHOTO/

DURIAN CONSULTANTS from Singapore and Malaysia recently met Cotabato Province Governor Emmylou Taliño-Mendoza to discuss ways to develop the durian industry in the province.

Ms. Mendoza said during the meeting that the two consultants, Kelvin Tay of Singapore and Lim Chin of Malaysia, explored ways to introduce new technology to increase output, yield, and quality of the province’s durian crop.

Last week, Ms. Mendoza was in Malaysia to observe industry practices there, including the processors and trading side, with the Office of the Provincial Agriculturist and industry representatives.

In April 2023, Ms. Mendoza expressed her willingness to join the China durian export trade after producers in Davao City helped open up the market.

At around that time, the Department of Agriculture Davao regional office inaugurated the China trade with a shipment of 18 metric tons of durian.

In his January state visit to China, President Ferdinand R. Marcos, Jr. signed an agreement governing the protocols for shipping fresh durian to China.

The Davao regional office said developing Cotabato’s durian industry is part of a five-year plan it is preparing.

The regional office received on April 3 China’s notice of approval for the Protocol of Phytosanitary Requirements as agreed by Mr. Marcos and  Chinese President Xi Jinping. — Maya M. Padillo

Gov’t debt yields mixed on BSP, Fed easing bets

YIELDS on government securities (GS) ended mixed last week on expectations of rate cuts from the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve in the coming months.

Yields, which move opposite to prices, went down by an average of 1.61 basis points (bps) week on week, data from the Bloomberg Valuation Service Reference Rates as of Aug. 22 published on the Philippine Dealing System’s website showed.

Rates at the short end went down, with the 91-, 182-, and 364-day Treasury bills (T-bills) dropping by 2.56 bps (to 5.9247%), 5.93 bps (6.0559%), and 4.51 bps (6.1038%), respectively.

Meanwhile, at the belly of the curve, yields went up across all tenors. The two-, three-, four-, five-, and seven-year Treasury bonds (T-bond) saw their rates rise by 1.52 bps (to 6.0165%), 1.9 bps (6.0177%), 2.33 bps (6.0244%), 2.67 bps (6.0335%), and 2.86 bps (6.0492%), respectively.

Lastly, at the long end, yields mostly went down as the 20- and 25-year debt papers fell 8.83 bps and 8.73 bps to fetch 6.1780% and 6.1773%, respectively. On the other hand, the rate of the 10-year T-bond inched up 1.53 bps to 6.0735%.

GS volume traded fell to P43.32 billion on Thursday, down from P55.79 billion on Aug. 16.

Philippine financial markets were closed on Aug. 23 for a special non-working holiday in observance of Ninoy Aquino Day. They will remain closed on Aug. 26 (Monday) for the National Heroes’ Day holiday.

Last week’s GS yield movements were driven by prospects of rate cuts by the BSP and Fed, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message.

“While the immediate impact of [the BSP’s Aug. 15] rate cut has diminished, the market remains optimistic about further reductions in local policy rates through the end of 2024. This positive outlook is reflected in the increased market activity, with average daily trading volumes in the GS space rising by P15-20 billion since the rate cuts were factored in,” Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., said in a Viber message.

“Given that the BSP often aligns its policy rate decisions with the Fed to maintain a favorable rate differential, the dovish guidance from the Fed bolstered sentiment among local market participants, particularly in the GS space,” Ms. Araullo said.

The dovish stance of both central banks spurred market participants to invest in longer duration bonds, she added.

The BSP on Aug. 15 reduced its target reverse repurchase rate by 25 bps to 6.25%, in line with the expectations of nine out of 16 analysts in a BusinessWorld poll. Prior to the cut, the Monetary Board kept the policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to rein in elevated inflation.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

Analysts also expect the BSP’s easing cycle to continue until next year amid stabilizing inflation, with at least 100 bps in rate cuts seen in 2025.

Meanwhile, Fed Chair Jerome H. Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target, Reuters reported.

“The time has come for policy to adjust,” Mr. Powell said in a highly anticipated speech to the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Analysts and financial markets had already widely expected the Fed to deliver its first rate cut at its Sept. 17-18 policy meeting, a view that was cemented after a readout of the central bank’s July meeting said a “vast majority” of policy makers agreed the policy easing likely would begin next month.

Most analysts have forecast the Fed will kick off its policy easing with a quarter-percentage-point rate reduction, the central bank’s usual increment.

Mr. Powell’s new emphasis on protecting the job market raises the chance of a bigger cut, especially if the US government’s jobs report for August, due to be released on Sept. 6, shows further deterioration in what many policy makers have called a still-healthy job market.

With its policy rate currently in the 5.25%-5.5% range, the Fed has “ample room” to reduce borrowing costs to cushion the economy, Mr. Powell said.

For this week, Mr. Ravelas expects GS yields to continue moving sideways.

“[This] week’s focus will be on the upcoming 20-year government bond auction, presenting an opportunity to extend duration if the positive market sentiment persists,” Ms. Araullo said, adding that Mr. Powell’s remarks over the weekend would also be a main trading driver.

On Wednesday, the government will auction off P25 billion in reissued 20-year bonds with a remaining life of 19 years and nine months. — Karis Kasarinlan Paolo D. Mendoza with Reuters

Packworks seeks to upgrade sari-sari stores with more services

HUBERT T. YAP

By Revin Mikhael D. Ochave, Reporter

TECHNOLOGY STARTUP Packworks is pushing to revolutionize the traditional sari-sari store model by transforming these small neighborhood shops into multifunctional hubs that offer a variety of new services.

“Our aspiration is that what you see as the sari-sari store now is not the sari-sari store of the future,” Hubert T. Yap, Packworks co-founder and chief platform officer, said in an interview with BusinessWorld.

“It’s about making them relevant. Managing their current business is just the stepping stone so that we can give them the advantage of emerging business models,” he added.

Trade department data showed that there are over 1.3 million sari-sari stores nationwide. They are categorized under the micro, small, and medium enterprises sector, which accounts for over 99% of business establishments in the country.

Mr. Yap said that in the future, sari-sari stores could go beyond their role as convenience stores, also functioning as pharmacies, banks, and power sources, thereby driving economic growth in their communities.

He said the vision for the future of sari-sari stores could become a reality within the next two years.

“We see sari-sari stores of the future as pharmacies, power plants, and banks. Imagine if we are able to give medicine access to remote areas. Sari-sari stores can also provide electricity with our solar panels, while with our collaboration to bring Starlink, they can get internet,” Mr. Yap said.

“We also aspire for sari-sari stores to be able to do banking without having to go to the city center. The money will recirculate within the local economy. We always believe that keeping money circulating in one locality is still better, like a decentralized economic system,” he added.

Recently, the startup partnered with Help.NGO, a global humanitarian organization specializing in emergency response and technology solutions, to offer SariLink, a digital connectivity initiative that provides internet to sari-sari stores through Starlink, the satellite-based internet service developed by SpaceX.

Mr. Yap, along with co-founders Bing G. Tan and Ibba R. Bernardo, established Packworks in 2018 as part of their corporate social responsibility initiative to initially help 5,000 sari-sari stores in remote areas nationwide.

Six years later, the startup has evolved into a business-to-business fast-moving consumer goods (FMCG) marketplace.

It offers various apps to help digitize the day-to-day operations of sari-sari stores, from pricing and inventory management to sales and revenue tracking, as well as access to working capital loans. The partner stores also earn more income through discounts from partner FMCG brands and companies.

The startup’s network now covers over 300,000 sari-sari stores nationwide as of the end of June, and it is eyeing 350,000 stores by yearend.

“We level up the existing entrepreneurs since a sari-sari store is one of the easiest businesses to open, but also one of the hardest to sustain. We’d like to shine the light on our stores,” he said.

“We have sari-sari stores nationwide, except in far-flung areas such as Batanes and Jolo,” he added.

According to Mr. Yap, the advent of artificial intelligence (AI) is an opportunity to support the growth of sari-sari stores since it could be used in various aspects of managing the business.

However, he said that there are still challenges hindering the increased adoption of AI and technology across sari-sari stores.

“We need store owners to experience the app first. The goal is for them to become comfortable using the app. Our mindset is to make them feel or even just try it. Once they overcome that mental barrier, they will see the benefits,” he said.

“Over time, we’ve seen that it became a digital advocacy and journey for the stores. The approach is that we are digitally nurturing the sari-sari stores. It can’t be the usual straightforward usage like those teaching franchisees of other well-known convenience stores,” he added.

Mr. Yap added that store owners can benefit from AI since it provides specific information that can be used to improve their businesses.

“We want to enable and empower them with information and insights without doing it manually. With AI, we can hyper-customize solutions that are very relevant to the individual market,” he said.

“If we do it without AI, it’s very resource-intensive. Now, we can customize it for different stores because every store sells different products and encounters various consumer shopping behaviors. The real advantage of using AI for the stores is that it helps them in predictive analysis,” he added.

In July, Packworks received P3.5 million in funding from the Department of Science and Technology to develop a precision marketing tool for sari-sari stores aimed at data-driven inventory decisions.

The AI-powered capability will be launched as an in-app service on Packworks’ Sari.PH Pro app, which allows store owners to access pricing tools, inventory management, sales and revenue tracking, and working capital loans.

Packworks also has a business intelligence tool called Sari IQ, which provides retailers with data analytics on consumer behavior and spending habits of people in a locality who purchase their needs in sari-sari stores.

GrabCar reports ‘improved booking reliability’ in PHL

PHOTO FROM GRAB PHILIPPINES

GRAB PHILIPPINES recently shared that, in H1, nine out of 10 passengers trying to book a Grab ride were successfully allocated a driver within an average of 21 seconds. Grab attributes the improved service reliability to several factors: driver-partner satisfaction with the platform’s equitable fare system, the introduction of innovative technologies on the Grab platform, and the expansion of the Transport Network Vehicle Service (TNVS) driver pool.

To ensure reliable mobility services, Grab said it “maintains fair fares for its passengers and driver-partners,” leading to a stable demand-supply situation, with cost-effective services and driver-partners earning viably.

Said Grab Philippines Chief Operating Officer Ronald Roda, “With our data-driven tools, we offer fares that are fair for both our passengers and driver-partners amid ever-changing market conditions. Fair fares mean our driver-partners can earn a living wage enough to cover their everyday expenses and costs related to maintaining a vehicle. This is approximately two times the current minimum wage in Metro Manila. Along with this, we also maintain service accessibility and affordability of our services for consumers — all in accordance with set fare guidelines by the LTFRB.”

By continuously monitoring fare fairness during dynamic market conditions — including weather, traffic, and changes in supply and demand — Grab maintained that it encourages more drivers to be active on the roads. This ensures that passengers can book a GrabCar ride and reach their destinations safely and conveniently.

Advance Booking ensures timely airport rides, eliminating travel-related stress for passengers by allowing them to book in advance for up to seven days. There is a flexible reservation window and a guaranteed on-time pickup. Grab Philippines said that this boasts a reliability rate of 98% — guaranteeing allocated rides.

The Group Rides feature enables a more “collaborative approach” among colleagues in booking a vehicle. Users can conveniently initiate a Group Ride through a widget located on the transport page, with the flexibility to opt for “Arriving Together” or “Departing Together.” Each participant in the Group Ride can independently choose their respective stops, all while sharing a standard base fare, making the journey more economical. Along with GrabShare, this bolsters Grab’s reliability by effectively optimizing the utilization of available vehicles.

Multi-Taxi Type Booking allows users to book different types of cars in a single booking process — potentially reducing booking time. An MTT booking allocates the nearest available car, regardless of ride type.

Grab Philippines said that, in 2023, the ride-hailing industry moved closer to achieving a demand-supply balance, with the LTFRB releasing around 25,000 TNVS slots, positively impacting service reliability. “This has enhanced Grab’s performance, with the average pickup time being reduced to approximately six minutes — allowing users to have enough grace period to prepare and go to the pickup point. This is a result of increased vehicle availability and streamlined operations,” maintained the company.

BTS member Suga appears before police for e-scooter drunk driving

INSTAGRAM.COM/AGUSTD

SEOUL — K-pop star Suga, a member of the boy band supergroup BTS, appeared before police on Friday for further questioning over a case of drunk driving on an electric scooter.

Earlier this month, the songwriter and rapper made an apology after police fined him and revoked his license for riding the e-scooter while drunk.

“I am deeply sorry. I truly regret I have disappointed many fans and many people,” Suga told reporters after arriving at the police station.

“I will sincerely participate in the investigation, and again I am sorry,” said Suga, wearing a black suit, with a deep bow.

Police are expected to look into how much he consumed and why he drove while intoxicated, media reports said. On the day of the incident, police had sent him home as he was so drunk that he did not respond to their questions properly, local media said.

His label Big Hit Music, which is part of K-pop firm HYBE, has said Suga rode the scooter and tripped when parking at night. He failed a breath test conducted by police, according to the label.

Some angry fans placed flower wreaths near HYBE headquarters, with messages on boards or flowers asking him to leave the band.

There was no immediate comment from HYBE.

Since announcing a break from group projects in June 2022, BTS members have pursued solo activities before starting military service.

The 31-year-old Suga has been engaged in social service work in order to meet his military duty commitment. — Reuters

Extreme weather takes bite out of China produce, sending prices soaring

REUTERS

BEIJING —  Produce prices in China have risen sharply over the past two months, affected by extreme weather from deadly floods to scorching heat that has devastated millions of acres of farmland and is now hitting consumers in their pockets.

According to the Ministry of Agriculture and Rural Affairs, an index of wholesale prices of agricultural products consistently rose every day from June 25 to Aug. 21 except for a slight dip on July 19.

Soaring food prices this summer present an additional headache for the world’s second-largest economy, which is already wrestling with thorny problems from sluggish factory output and joblessness to deflationary pressures and uncertain external demand for Chinese goods.

Notably, the average wholesale price for 28 vegetables tracked by the ministry from June 17 to Aug. 15 jumped from 4.29 yuan (60 cents) to 6 yuan per kilogram, a 39.9% increase over the period, Chinese state media said.

“I don’t know what’s going on this year, but vegetarian food is very expensive and ordinary people can hardly afford it,” complained a user on Toutiao, a Chinese news and information content platform.

At Beijing’s Xinfadi Market — China’s largest wholesale market for agricultural products — the weighted average price of vegetables in August was 4 yuan/kg, up 25% compared with the same period last year, China Central Television reported.

Prices for cabbage, cauliflower, and broccoli rose, said other state media, and the government also noted higher prices for cucumbers, spinach, eggplant and zucchini as well as pears and watermelons, in its data.

China suffered through torrid rainfall that started in the spring and continued through July, along with weeks of record-breaking heat.

In Henan, one of the country’s main commercial crop production areas, more than 1.13 million hectares were affected with some harvests lost from soaked fields.

Extreme weather led to a near doubling in economic losses from natural disasters in July from a year earlier.

China recently was also forced to provide an additional 100 billion yuan ($14 billion) to banks to support rebuilding areas devastated by floods, which damaged around 6 million acres of crops.

But consumers will find some respite as experts expect vegetable prices to come down in the middle to late September as supply increases due to the current higher prices on offer. — Reuters

Reinforcing the antibiotic pipeline

NASTYA DULHIIER-UNSPLASH

The World Health Organization (WHO) has identified antimicrobial resistance (AMR) as one of the biggest global health threats facing humanity. As bacteria evolve and become resistant to existing antibiotics, the challenge of AMR is growing.

Some estimates suggest that without reversing this trend, AMR could lead to 10 million deaths each year by 2050, a significant disruption to common surgical and medical interventions and a further 24 million people driven into extreme poverty. AMR is also estimated to lead to a global annual GDP loss of between 1.1% and 3.8% by 2050, with an annual shortfall of up to $3.4 trillion by 2030.

In 2019, there were 15,700 deaths attributable to AMR and 56,700 deaths associated with AMR in the Philippines. Our country has the 128th highest age-standardized mortality rate per 100,000 population associated with AMR across 204 countries.

To avert the threat of AMR, we need to ensure that we have a continuous pipeline that delivers new, innovative antibiotics to treat patients with infections that have become resistant to existing antibiotics. These new antibiotics should be used carefully and should be available to patients wherever in the world they live.

Unfortunately, the current antibiotic pipeline is not sufficient to protect against increasing AMR, according to a new report by the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA). Entitled “From resistance to resilience: What could the future antibiotic pipeline look like?,” the report reviews the antibiotic pipeline data against bacterial pathogens identified by the WHO and other public health agencies as of the greatest concern, and presents modelling data on the future of the pipeline.

The findings of the report are worrying. There have been only 10 new antibiotics or combinations approved by stringent regulatory authorities between 2017 and 2023, only two of which are defined as innovative by the WHO. None are considered to constitute a new class of antibiotics.

There is currently just one antibiotic candidate in Phase III clinical trials across the four bacterial pathogens defined as a critical priority by WHO. Just two of the seven high-priority pathogens have innovative candidate antibiotics in development, with five having three or fewer candidates at any stage of clinical development. There is consensus from the WHO and many other experts that the pipeline is not sufficient to meet the demands of increasing resistance in the priority pathogens.

Working with predictive health intelligence and data analytics experts from Airfinity, the IFPMA report presents new modelling that helps to build an understanding of how this pipeline might evolve over the next 10 years. Based on a number of key assumptions, two scenarios were developed.

Scenario one: no new incentives are introduced that could encourage investment into antibiotic R&D. Without additional investment, the pipeline is expected to continue to gradually decline. This is particularly apparent from 2026 onwards when existing funding for late-stage (Phase II and III) studies is expected to decline. Under this scenario, in 10 years’ time, the pipeline is expected to contain 26 treatments, of which only six are in the late stages of development.

Scenario two: effective pull incentives are successfully introduced in 2025. The introduction of effective pull incentives will attract significant additional investment, primarily from private investors, leading to a substantial impact on the future antibiotic pipeline. In this scenario, in 10 years’ time, it is expected there would be 19 new antibiotics approved and a pipeline consisting of 72 treatments in different stages of clinical research.

The report also looks at the potential population health benefits from a more robust pipeline of antibiotics, suggesting a significant reduction in the burden of resistant infections across four WHO critical priority pathogens.

Without new incentives and with no new antibiotics to treat these resistant infections, the burden in high-income countries (HICs) would be expected to increase by about 35% on average in 10 years compared to today. However, if effective incentives are introduced, and new antibiotics against these pathogens are approved as a result, these are expected to help deliver a reduction in the disability-adjusted life years (DALY) burden of more than 50% compared to no new antibiotics. One DALY represents the loss of the equivalent of one year of full health. While this impact was only modelled for HICs due to data and model limitations, a similar benefit may be expected globally.

The report notes the broad consensus to strengthen the pipeline of new antibiotics in order to manage resistance as it continues to worsen. But despite repeated warnings, the bankruptcies of specialized antibiotic biotech companies, the exodus of expert antibiotic researchers to other areas, and the recognition that the pipeline is insufficient, action remains limited.

“This analysis demonstrates why urgent action is needed if we are going to reinforce our pipeline of antibiotics and protect the world from rising drug resistance,’’ said James Anderson, Executive Director, Global Health, IFPMA.

Indeed, robust pull incentives are crucial in encouraging the research and development investment needed, and for everyone to act boldly against AMR.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

AM Best affirms Malayan Insurance’s credit ratings, keeps ‘stable’ outlook

DEBT WATCHER AM Best has kept Malayan Insurance Co., Inc.’s credit ratings on the back of its strong balance sheet.

AM Best affirmed Malayan Insurance’s financial strength rating of “B++” (Good). It likewise kept the insurer’s Long-Term Issuer Credit Rating of “bbb” (Good) and Philippines National Scale Rating (NSR) of “aa+.PH” (Superior) for 2023.

The debt watcher also maintained its “stable” ratings outlook for the nonlife insurer.

AM Best is a global credit rating agency specializing in the insurance industry.

“Despite the current economic landscape, we remain vigilant in ensuring that we can support the needs of our clients in any situation,” Malayan Insurance President and Chief Executive Officer Paolo Y. Abaya said in a statement over the weekend.

Malayan Insurance’s premium income stood at P4.27 billion in 2023 while its net income was at P600.77 million, ranking second among nonlife insurers for both metrics.

Its assets stood at P42.56 billion at end-2023, while its net worth was at P5.04 billion. The insurer’s paid-up capital was at P979.13 million.

AM Best said in a separate statement dated Aug. 9 that its latest rating action for Malayan Insurance reflects the nonlife firm’s strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.

“Malayan’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, which is at the strongest level. Risk-adjusted capitalization improved in 2023, with ongoing reinsurance claims settlement supporting a reduction in the company’s exposure to credit risk,” it said.

“In addition, recent measures to de-risk Malayan’s investment portfolio have reduced its exposure to equity investment risk. Offsetting factors include the company’s high reliance on reinsurance to support the underwriting of large commercial risks and its exposure to counterparties that are non-rated on an international financial strength rating scale. Additionally, the balance sheet is viewed to be sensitive to shock events, particularly arising from the occurrence of multiple severe catastrophe events in short succession,” the credit rater added.

AM Best also noted that the insurer posted a five-year average return on equity ratio of 3.8% from 2019 to 2023, reflecting an adequate operating performance.

“While total operating earnings remained profitable in 2023, the company reported an underwriting loss, in part due to lower reinsurance commission income. Overall underwriting performance has exhibited moderate volatility in recent years, driven by catastrophe and large loss events, which negatively impacted Malayan’s core commercial lines,” it said.

“Nevertheless, good technical results for its motor business continue to help to partially mitigate the deterioration in underwriting results. Investment income continues to be the principal contributor to Malayan’s overall earnings, supporting its track record of positive earnings. Prospectively, AM Best expects underwriting performance to remain supported by ongoing portfolio remediation measures, as well as business growth in more profitable retail segments,” the credit rater added.

Its neutral business profile assessment of Malayan Insurance reflects the company’s position as one of the largest nonlife firms in the Philippines, AM Best said.

“The company benefits from its affiliation with the Yuchengco Group of Companies, a large conglomerate in the Philippines, in terms of branding and distribution. Malayan continues to demonstrate a strong commitment toward digital transformation, which is an important pillar of its long-term strategy for retail business development.” — BMDC

Meralco share price rises on developments

MANILA ELECTRIC Co.’s (Meralco) share price rose last week due to positive developments, including a planned acquisition of a larger stake in SP New Energy Corp. (SPNEC) and its 1,000-megawatt (MW) power supply bidding, according to analysts.

Data from the Philippine Stock Exchange showed 940,050 Meralco shares worth P396.19 million were traded from Aug. 19 to 22, making the listed power distributor the 16th most actively traded stock last week.

Local financial markets were closed on Aug. 23 due to a nonworking holiday.

Meralco shares closed at P418 each on Friday.

The stock price inched down by 1.6% from a week earlier. A year ago, the stock grew by 4.8%.

Meralco’s share price grew, as it was likely influenced by investor optimism, Rastine Mackie D. Mercado, research director at China Bank Securities Corp., said in an e-mail, adding that the sideways movement last week indicated some profit taking after the recent rally to a new all-time high.  

He added that the share price of the listed power distributor grew due to investor optimism and was influenced by its strong first-semester performance and the central bank’s first rate cut in nearly four years or since November 2020, when it last delivered a 25-basis-point (bp) cut amid the coronavirus disease 2019 pandemic.  

Similarly, Aniceto K. Pangan, a trader at Diversified Securities, said that the listed power distributor hit a new high of P425 per share, which led to profit taking due to the overbought condition.  

In the latest Monetary Board meeting, the Bangko Sentral ng Pilipinas (BSP) reduced policy rates for the first time since 2020 by 25 bps to 6.25% from the over 17-year high of 6.5%.  

For the second quarter, Meralco’s attributable net income rose 31.3% to P12.84 billion, while consolidated revenues grew 11.5% to P132.93 billion.  

For the first half of the year, its bottom line rose 25.7% to reach P22.44 billion, while revenues amounted to P237.48 billion, 5.6% higher than a year ago.  

Mr. Pangan said estimated earnings for Meralco are between P43 billion and P48 billion for the entire year, with the easing of interest rates likely to further boost economic activity, enhancing growth and contributing broadly to the company’s business components.  

Last week, Meralco, through its subsidiary MGen Renewable Energy, Inc. (MGreen), was considering acquiring a larger stake in integrated solar developer SPNEC.  

MGreen is the renewable energy development arm of Meralco unit Meralco Powergen Corp. 

SPNEC, through its subsidiary Terra Solar Philippines, Inc., is currently developing a solar power project worth P200 billion, claimed to be the largest solar farm.

The project is located in Nueva Ecija and Bulacan, and it includes a 3,500-MW solar power plant along with a 4,000-megawatt-hour (MWh) energy storage system. The first phase is targeted to be completed by 2026, while the second phase is expected to be completed by 2027.

Earlier this year, MGreen raised its stake in SPNEC, with controlling interest of the company and its affiliates growing to 55.96% from 50.55% and acquisitions totaling P20.2 billion, allowing MGreen and its affiliates to hold 19.473 billion common shares of SPNEC, or 38.89% of the total outstanding common shares of the company.

For Mr. Pangan, the decision to acquire a larger stake in SPNEC will support the company’s sustained growth, particularly in the renewable solar energy sector.

China Bank’s Mr. Mercado said that a potential increase in Meralco’s stake in SPNEC is expected to have a positive impact, as it is expected to drive profit growth in its power generation business in the medium term.

“The company looking to sell up to 40% of its stake in Terra Solar to foreign investors should help raise cash for the development of the project,” he said.

Additionally, the power distributor will proceed with the bidding process for its 1,000-MW power supply requirement following the dismissal of an injunction petition.

In a statement, the company said that the Taguig Regional Trial Court has dismissed the petition and declared the 20-day temporary restraining order (TRO) as “without force and effect.”

Meralco said that all competitive selection processes (CSPs) for its supply needs “are strictly conducted in accordance with the existing rules of the Department of Energy and the Energy Regulatory Commission, which have primary jurisdiction over the CSPs.”

In June, Meralco invited bids for contract capacities of 600-MW baseload and 400-MW mid-merit supply, scheduled to take effect in August 2025.

Eight companies showed interest and participated in the pre-bid conference last month for Meralco’s 600-MW supply.

“The resumption of the bidding for MER’s 1,000-MW CSP is overall a positive for MER as this helps ensure stability of supply to its customers,” Mr. Mercado said.

He added that in terms of financial impact, this is also expected to support steady volume growth in its distribution business.

Mr. Mercado likewise said that investors may consider the listed power distributor given its attractive dividend prospects, the stable growth of its distribution, and the ongoing capacity development of its power generation business, which is expected to be the primary growth driver in the coming years.

“SPNEC’s Terra Solar project aims to develop a 3,500-MW solar power plant and a 4,000-MWh battery energy storage system,” he added.

He sees current support estimated at P400 to P406 while the resistance is projected at P425.

Meanwhile, Mr. Pangan pegged the initial support at P410 per share while resistance at P429 per share.

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. — Abigail Marie P. Yraola  

Puma x Mercedes-AMG Motorsport Collection now out

Puma Southeast Asia Motorsport Ambassador Choo Sung-hoon

SPORTS BRAND Puma launches its latest collaboration with Mercedes-AMG Motorsport, inspired by the iconic AMG 300 CE 6.0, famously known as “The Hammer.” When the vehicle was introduced in 1986, it “turned heads with its sleek design, and formidable AMG modified V8 engine and impressive 283kW,” Puma said in a release. “The sedan version was powerful enough to crack the magical 300-kph barrier and therefore received the affectionate nickname ‘The Hammer.’”

The new collection pays homage to the vehicle’s legacy through vibrant colors, bold accents, and tactile fabrics. The pilot jacket, with its vibrant colors and bold accents; and the tracksuit, made from tactile fabrics, are “standout items that echo the dynamic essence of the Hammer.”

The Hammer Collection is modeled by Puma Southeast Asia Motorsport Ambassador Choo Sung-hoon. Also known as “Sexyama,” he is a renowned Mixed Martial Arts (MMA) athlete and celebrity. The Puma x Mercedes-AMG Motorsport Collection is now available for purchase at select Puma stores.

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