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Manila’s steps to progress further to sustainability

Last January, the United Nations Development Programme in the Philippines, with support from the Government of Japan, officially handed over equipment to the City of Manila through the ACE Project. — Photo by www.undp.org/philippines

Manila, one of the oldest cities in the country, is brimming with rich history, vibrant culture, and economic activity. The city was even hailed as one of the leading destinations in 2023, according to the World Travel Awards 2023, recognizing its leadership and economic dynamism.

With continuous progress, the City of Manila is one of the frontrunners to transform the Philippines as a sustainable country.

As one of the most fast-paced and populous urban areas, the city is taking a step forward to progress by adopting a circular economy. As it is gaining momentum in the Philippines, circularity offers promising ways to cut down greenhouse gas emissions. The shift is fueled by embracing new technologies and innovative solutions, while also prompting sustainable lifestyles.

Maximizing this opportunity, Manila is seen to be well-positioned to step up their waste management game by making the most of their resources. To support local solutions, the United Nations Development Programme (UNDP) and Japan partnered together supporting local government units (LGUs) in the Philippines, and Manila is one of these LGUs. This partnership is said to enhance waste management practices and reduce waste generation.

Maria Sheilah “Honey” H. Lacuna-Pangan, mayor of the City of Manila, noted that the partnership is one step forward to the city’s transition to a circular economy, recognizing the city’s potential to drive sustainable growth and reduce environmental impact.

As part of the project, the city government recently received a material waste processing facility, equipped with plastic melters, biogas digesters, and organic waste recovery systems that help improve waste management practices within the city. This partnership marks a significant milestone of adopting a circular economy, and one step forward to sustainable growth in the city.

For Ms. Lacuna-Pangan, raising environmental awareness and getting Manila residents on board to solid waste management initiatives is a top priority.

“We are grateful to UNDP, through the ACE project, for the donation. The equipment will be brought to different communities and will take its significant role in the promotion of circular economy solutions that involves sharing, reusing, repairing, refurbishing, and recycling,” Ms. Lacuna-Pangan said.

“Our city government is continuously trying to respond to the problem of waste and its impact on the environment. One of our concrete actions is the establishment of this Materials Recovery Facility that we have right here inside the Manila Zoo. This is where we found a space appropriate to such facility; and, of course, this is a place where waste materials are accumulated every day.”

According to the UNDP, the partnership is also granting financial support and expertise to small and medium enterprises to boost their production, sustainability efforts, and expand to new and wider markets.

“By working together and training academic institutions, civil society and private enterprises, the project is helping identify innovative, grassroots circular economy solutions to scale up,” the UNDP was quoted in an article published on their website.

Further taking another step towards sustainability, the City of Manila partnered with the World Wide Fund for Nature (WWF) Philippines for the Plastic Smart Cities (PSC) project, which aims to reduce the city’s plastic pollution by 30% in 2024, and completely eliminate plastic waste leakage by 2030.

According to an article by the WWF, plastic waste is the third largest solid waste produced in the Philippines, amounting to 2,150,000 tons in 2019, and only 9% of these plastics were recycled.

Katherine Custodia, executive director of WWF-Philippines, emphasized that plastic pollution is a pressing concern as it affects both public health and the environment.

“We generate 2 million tons of plastic waste in the Philippines every year, only 9% is recycled and 35% leaks out into the open environment. As we are an archipelago of 7,640 islands, the damage caused by plastic pollution to our environment is magnified.”

Thus, Manila’s partnership to being a Plastic Smart City is a sign that the city is ready to commit to eliminating plastic pollution, Ms. Custodia noted.

“Like many around the world, Manila City believes that plastics do not belong in nature. The city has formulated and is implementing a program of auction against marine litter and has an ordinance regulating the use of single-use plastics,” she said.

A total of 1,754 households reportedly have been trained in solid waste management and 179 small waste collection vehicles have been distributed across six districts in the city. In addition, seven solution providers have expressed their support towards the city’s journey to better waste management.

The city government is actively developing efforts that address plastic pollutions, one way is by continuously cleaning up waterways, Ms. Lacuna-Pangan said during the launch of Earth Hour Philippines earlier this year.

“In our own little way, we have been helping in cleaning up the waterways in our juridical area through our own small teams without any other goal but pick up trash and clean the bay. We have dedicated teams meant to address three different waterfronts in the nation’s capital, [namely the] Baseco Beach, Roxas Boulevard, and our esteros and creeks, which lessen the chances of plastic wastes to eventually end up and float to the open sea.”

Moreover, the City of Manila was the host of this year’s Earth Hour, bringing millions of people together to play a part in restoring and reserving nature. “As the country’s capital, we’re keen on using the influence we have in engaging other cities and Filipinos to do their part in saving the environment,” Ms. Lacuna-Pangan said during the launch.

Also, part of efforts to achieve zero waste in Philippine waters is adopting policies that is centered on address plastic pollution. The City of Manila is taking a proactive approach by being the first city to implement a City Plan of Action on Marine Litter and to also localize the National Plan of Action on Marine Litter.

Along with these policies, Ms. Lacuna-Pangan shared, Manila has also taken local initiatives, including partnerships with the private sector for managing solid waste and reducing plastic pollution. Among these are programs like Kolek, Kilo Kita Para sa Walastik na Maynila; Alaskalikasan Wrapper Redemption Program; Aling Tindera: A Waste to Cash Program; and Tapon to Ipon Project. — Angela Kiara S. Brillantes

SN Aboitiz units sign energy deals with CAR

UNSPLASH

TWO units of the SN Aboitiz Power Group (SNAP) have signed a deal with the Regional Development Council of the Cordillera Administrative Region (CAR) to implement energy-funded projects.

SNAP-Benguet and SNAP-Magat signed a memorandum of agreement with the council for projects under the Energy department’s Energy Regulation No. 1-94, the company said in a statement on Friday.

The regulation wants to ensure that host communities get a reasonable share of the profit from power plants operating in their area.

SNAP said the program gives the host community a one-centavo share for every kilowatt-hour of the total electricity sales of a power generating company.

Half of the share will be used in community electrification. A quarter of the share will be allocated for livelihood programs, while the other 25% will be earmarked for reforestation, watershed management, health, and environment enhancement initiatives.

SNAP is a joint venture of Norwegian company Scatec and Aboitiz Power Corp. It owns and operates the 112.5-megawatt (MW) Ambuklao and 140-MW Binga hydroelectric power plants in Benguet, and the 388-MW Magat hydroelectric power plant on the border of Isabela and Ifugao.

The company also owns and operates the 8.5-MW Maris hydro and the 24-MW Magat battery energy storage facility in Isabela. — Sheldeen Joy Talavera

Panasonic Manufacturing Philippines Corp. to hold virtual Annual Stockholders’ Meeting on July 19

 

 


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Paris Men’s Fashion Week: Hermes goes breezy, Dior goes catty, and LV covers up

LOUIS VUITTON — EU.LOUISVUITTON.COM

PARIS — With pleated Bermuda shorts, muted pastels and cinched parkas, French label Hermes presented a breezy summer 2025 collection at Paris Men’s Fashion Week that was marked by light, natural materials.

There were few patterns on display as models wearing leather sandals with crisscrossed straps strode down the runway in short-sleeved overshirts, light-weight jackets and tailored trousers made from fabrics such as canvas and crepe cotton twill. (The show can be watched here: https://www.hermes.com/us/en/ )

They carried bags in denim canvas as well as a calfskin version of the label’s roomy Bolide model in the latest collection presented by Veronique Nichanian, the fashion house’s longtime artistic director for menswear.

Paris Men’s Fashion Week takes place this year as the luxury sector faces slowing demand for clothing and accessories, especially in China, a key market, where shoppers of high-end fashion are seeking more discreet styles.

GIANT CATS AT THE DIOR SHOW
Dior men’s artistic director Kim Jones showed his summer 2025 collection for the LVMH-owned label on a Paris runway decorated with giant cat sculptures on Friday. (You can see the show here: https://tinyurl.com/45s8fpj5)

“These are the cats that spoke to me the most — they meowed to me,” said Mr. Jones, describing the quirky ceramic animals created by South African artist Hylton Nel.

Models marched past them in tailored trousers and bermuda-length shorts, sleeveless knits in pale colors and chunky shoes with clog-like toes. Sparkly brooches and embellished coats brightened the muted color palette, and saddle bags came in extra-large and extra small sizes.

“An elegant life” was painted on the pedestal of one sculpture — a lounging cat-headed creature with a woman’s body, wearing bright red lipstick and matching high heeled shoes.

PHARRELL WILLIAMS FOR LOUIS VUITTON
Louis Vuitton (LV) men’s creative director Pharrell Williams took to an outdoor, turf-lined runway at UNESCO headquarters on Tuesday last week, opening Paris Fashion week with an evening show.

The world’s biggest fashion label, known for its checked damier patterns and monogrammed trunks, drew on a travel theme for the spring summer 2025 men’s collection, with a towering globe sculpture, rows of international flags and — in the distance — the Eiffel Tower as a backdrop. (The show can be seen here: https://tinyurl.com/2p8yp7c7)

Models strode down the grass catwalk in crisply tailored suits, slick bomber jackets and fur coats, with rhinestone-encrusted sunglasses and chunky, airplane-wing brooches, while an orchestra and choir performed music produced by Williams.

The LVMH-owned label drew an audience of 1,500, as well as screaming crowds on the street outside, angling to catch arrivals of celebrity guests, who included NBA basketball player Victor Wembanyama, actor Michael Fassbender, and K-pop star Jackson Wang.

The Paris men’s fashion shows come as France gears up for the summer Olympics, as well as two rounds of elections in the coming weeks, which have thrown the country into political disarray. Construction of Olympics venue sites has clogged traffic and pushed some fashion shows to the outskirts of the city center.

The shows wound up on Sunday and will be followed by Haute Couture week. — Reuters

Democracy is difficult and costly

PHILIPPINE STAR/ RYAN BALDEMOR

The Philippines has too much politics, which impedes economic growth because our leaders engage in “politicking,” whether they be lawmakers in congress or local government officials, instead of solving the country’s problems. In contrast, countries that are better off than us have leaders who focus on the really important issues, whether it be building infrastructure or attracting investors, which is what Thailand did in the 1990s and what Vietnam is doing today.

The reason is that our fellow Filipinos elect the supremely unqualified to office: the legitimate and illegitimate celebrities, the rich who can buy their popularity, or the corrupt who can directly bribe voters or community leaders. This happens because voters lack education, which makes them incapable of sifting the capable from inept, and therefore equate celebrity with capability, or are poor or lack ethical moorings, and thus vulnerable to vote buying. The solution is to install a strong leader until we can improve the educational system so that our countrymen know only to vote into office those who are deserving and competent, while recognizing the moral wrong of selling their vote.

That, in slightly less than 200 words, is the problem with our country. It is a diagnosis and prescription for solutions more common among the middle- and upper-income classes.

It is also wrong — very, very wrong. It mistakes the system’s distortions as its causes.

Having a strong leader is an attractive solution because we often look a bit west and south and pine to have a leader in the same vein as Singapore’s Lee Kuan Yew, who led its transformation in one generation into a developed economy. Of course, widening the universe to other strongmen during the same period would bring into the story significantly less notable examples of strong leadership: North Korea’s Kim Il-sung and Kim Jong-il or Cambodia’s Pol Pot, or the various African leaders such as Uganda’s Idi Amin or Zimbabwe’s Robert Mugabe. The Singaporeans were lucky, or blessed, smart, existentially worried, or all the above. For whatever reason, they had the initial benefit of selecting a leader able to move the country forward. It’s a crapshoot. There is no established formula for ensuring the selection of a benevolent autocrat, or for assuming that an assumed benevolent leader does not eventually become a tyrant.

Having ignorant voters is also a convenient excuse, and often cited as a reason why maybe some people should not be allowed to vote. But don’t we also claim that our education system and our leaders were much better in the 1950s and 1960s? Going by this logic, we should not have fallen into the political morass that we have today, because the better-educated Filipinos of the past should have made the right decisions to avoid the democratic and economic problems that now bedevil us. And if we want present day examples, consider the disastrous political choices that have been made by voters in richer, better educated economies — whether it be Brexit, or the election of populists now in vogue in much of Europe or large swathes of Latin America. The painfully dysfunctional politics in the USA also stands as an example. In these countries, voters, whether they are rich or poor, from the north or south, educated or less educated, have made short-term, sub-optimal, resentment-driven, and ideologically or identity-determined decisions on who to choose on election day.

But, the question goes, shouldn’t it be obvious to voters that electing someone simply based on their popularity or their celebrity status is wrong? Voters, as this line of thinking goes, should gather all the information they can about candidates, and then choose the best ones based on their capabilities, plans, and credibility. We therefore have voter education campaigns, on the premise that an informed voter is the best kind, who will likely choose the most competent.

A few years ago, just before the pandemic, Mike Luz and Frankie Roman from the Asian Institute of Management (AIM) asked me to do a few guest sessions on political risk in their classes. One common question was why people voted irrationally, for the populists and demagogues, or the celebrities and the corrupt, or both.

I asked them two questions, mainly directed at the Filipinos in the class, and maybe readers can pause and consider them as well:

First, list down the top five issues that you care about as a voter. It could be traffic, the territorial dispute with China, corruption, drug abuse, food prices, the cost and quality of education, the cost of building or buying a house, pollution in our rivers and beaches, the difficulty of finding work, or the challenges in starting a business. Name it — something that resonates with you as a voter, which if politicians can address makes you believe that the system is working.

Second, list the top 12 senators in your mind, and ask yourself their position on these issues during the previous election season (which at that time was the 2016 elections) and whether their voting history since then, public statements and actions with their political parties are consistent with both their positions and your preferences as a voter.

I asked them to prepare a spreadsheet, with the grid of senators matched against their public positions on the issues, their promises in 2016, and whether they acted consistently on these issues through public statements, alliances, and their voting records, as did their parties. Then they would have to weigh the issues they cared about, so that they could finally rank the senators in terms of having fulfilled their promises and therefore deserving of their vote in future elections.

Predictably, the answer was that doing so would take a lot more time than those students had or were willing to give, because of the demands of their coursework. Not all of it would be available online, and even the ones available online would be fragmented. They would have to go through voting records in the senate on each of the issues they listed. They were not even confident that all that effort would affect the outcome of the elections, after all they were only a handful of Filipino voters.

But I asked: Is that not one of the characteristics of a good citizen in a democracy, which is to make informed decisions on who to vote for?  Extrapolate your problem, I said as my final point, to those with less resources compared to you — the farmers, public utility drivers, service workers. Consider people without the money to buy the gigabytes of data, or the unlimited internet that most of you are accustomed to, or had to work second jobs, complete their housework. Would these voters expend the time, money, and effort to be “informed voters?” on the belief that by doing so they have a reasonable chance of changing the system and electing leaders for the better? The answer, obviously, is that they would not.

Of course, we junked the spreadsheet assignment at AIM, which was the point. One key essence of democracy is accountability, which is to hold our leaders responsible for their actions, either at the ballot box (for failure to act on their promises) or through the legal system (for their malfeasances). And then there is the further problem that many voters in the upper income classes or those who are more well educated assume that the “right” answers are obvious, when those in the lower income classes would argue that these so-called “right” answers favor only the narrow interests of the privileged and political elite.

The cost of acquiring information and knowledge to make the so-called intelligent decision at the ballot box is very high for the individual voter, in terms of time and resources, as is the problem of identifying what the “right” solution is. An office worker may want to liberalize the importation of all foods, which a farmer would then consider an act of oppression, because many of our marginalized sectors find themselves at the short end of the stick of promises that their skills will be upgraded, and new opportunities created for them.

And even if voters could make these decisions, they need an additional element, which is knowing that they can act together with like-minded voters to select their preferred candidate or candidates, and, if necessary, making second-best choices as a compromise. After all, if a single voter does not know how other voters will act, their belief in the ability of their single vote to contribute to their desired candidates winning an election will be extremely low, which adds a further disincentive to spending the time being an informed voter. There is a common saying that voters should only vote their choices, and not worry about surveys or how other people are voting. That is a myth. Voting is a strategic decision, not a pie-in-the sky, hope-for-the-best process. Surveys fulfill a key role in this process and those who do them properly provide a great public service.

This is why some people would prefer that we be ruled by strongmen or that we have single-party systems. Democracy is difficult. Acquiring information is costly. Voting with others to get candidates into office requires time and coordination. Making it all work does not start or end at the ballot box on voting day. Having a free and fair vote is an essential part of the process, but it is nowhere near what is needed for a system that responds to the needs of the citizenry and builds a shared future for all of us.

 

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.

San Miguel may start PAREX project next year or once it gets ECC, says regulator

SAN MIGUEL CORPORATION

SAN Miguel Corp. is likely to start the construction of its P95-billion Pasig River Expressway (PAREX) project next year or once the company gets an environmental compliance certificate (ECC), according to the Toll Regulatory Board (TRB).

“San Miguel wrote that they would comply with the requirements vis a vis environmental clearance certificate,” TRB Executive Director Alvin A. Carullo told reporters last week. “As of now, they are not abandoning the project. It is now a live project.”

San Miguel is finalizing the final engineering drawings of the project that are expected to be completed by October, Mr. Carullo said, adding that the company must first submit the final detailed engineering plan for PAREX.

The TRB said San Miguel must also redesign the project to ensure heritage structures are not affected, Mr. Carullo said.

“When the Office of the President approved the project there were some conditions,” he said. “For example, the original design will pass through Malacañang, but there are restrictions, so they have to redesign the main alignment.”

San Miguel has yet to submit its target construction date because it is still trying to secure all permits.

But Mr. Carullo said it is possible for the project to start construction next year as long as the company secures the environmental permit.

“It is possible,” he said. “The main problem now is the ECC. Once they secure the ECC and other permits, they will seek the notice to proceed from TRB.”

The project is expected to provide an alternative and faster link to Metro Manila’s largest business districts such as the Makati Business District, Ortigas Center, and Bonifacio Global City.

In March, San Miguel said it would abandon the 19.37-kilometer, six-lane, all-elevated expressway that traverses Pasig River amid public opposition given its impact on the environment.

However, two months after the announcement, the company said it was not abandoning the project and was trying to address concerns for PAREX to move forward. — Ashley Erika O. Jose

Watsons goes green

THE WATSONS Greener Store uses sustainable materials and fixtures, and utilizes energy-efficient lighting and appliances.

WATSONS is turning a new leaf with the opening of its first greener store, located in San Pedro, Laguna.

The wellness and beauty chain invited guests to a tour of the store on June 21. Alisandrea Coloma, Watsons Philippines Senior Manager for Sustainability, pointed out the details that made it a greener store.

First, the store is partially run with solar power, through solar panels on the roof. “You don’t see it, but it’s up there,” she said. The store earned a certification for its sustainability metrics in energy consumption from Pi Energy, Inc. “By utilizing solar panels, the store saves approximately 7.5 tons of CO2 emissions annually, equivalent to the CO2 absorption of around 377 trees annually,” said a statement.

Secondly, Ms. Coloma pointed out that the store’s collaterals and marketing materials no longer use plastic-based Sintra board — they have shifted to Solidus, made from sustainable materials. The display racks are also made of wood, and the store uses LED lights and inverter air conditioners and refrigerators.

Thirdly, they have set up a refilling station for their Naturals by Watsons line (bring them clean and empty containers to fill). The refiling station itself is made of recycled plastic. There’s also a bin where customers can bring their old beauty-product bottles, for which they are given a small reward. There’s also a big Sustainable Choices wall, where people can pick beauty products with more eco-friendly slants.

In a group interview about building the first greener store in Laguna, Ms. Coloma said: “San Pedro is really known for their commitment to sustainability… even before we started building this store, they already had very strong sustainability and trash disposal programs.”

On rolling out the concept to other areas, especially Metro Manila, she said, “This is something we want to roll out even more in other stores, to give the experience and bring it closer to customers.

“As a company (that) has over 1,000 stores around the country, we recognize that we have a commitment to influence our suppliers and our shoppers to become sustainable in the way they consume products,” she said. “It’s important for us to find ways to integrate sustainability into how we do our stores and how we do our operations.”

For more information about the Watsons Greener Store and its sustainability initiatives, follow @watsonsph on Instagram. — Joseph L. Garcia

On moral superiority

GENEVIEVE PERRON-MIGNERON-UNSPLASH

The title of this piece is bland. The reader might even get the impression that the column will be an instance of moralizing. If so, it would be moralizing against morality as the overarching framework to find the appropriate solutions to the world’s (or the country’s) knottiest problems.

The title I prefer is “Morality is the enemy of peace.” Very provocative. It would have agitated many readers regardless of their religion, ideology, or politics. But I would have been a plagiarist if I used that as my title. “Morality is the enemy of peace” is the title of Stephen Walt’s essay that Foreign Policy (FP) published on June 13.

Mr. Walt is a Professor of International Affairs at the Harvard Kennedy School. His insights into geo-political or political affairs take a realist viewpoint. A slogan that I like best to describe realism is Deng Xiaoping’s: “It doesn’t matter whether a cat is black or white so long as it catches mice.” Deng’s slogan subdues principle or morality (i.e., ever-correct socialism) in favor of what works best for society. My interpretation of Deng’s statement: A ruler or policymaker has a menu of instruments and strategies that are blind to an ideology, doctrine, or “ism,” and he chooses the most suitable and most responsive to attain his objective.

Deng’s pragmatism rejected a zero-sum game in connection with China’s competition with the US. Before the US employed a strategy of crippling and demonizing China during the terms of Donald Trump and Joe Biden, economic competition was mainly defined through cooperation.

China demonstrated goodwill by joining the World Trade Organization and other multilateral bodies. China was able to use the gains from trade and globalization to lift hundreds of millions from poverty. The US likewise reaped gains from trade, but the distribution of gains was sharply uneven, leading to a backlash that is now called “deglobalization.”

China managed well the tradeoffs found in hyper-globalization— the tension between rapid globalization and exercise of national sovereignty, the tension between globalization and mass politics, and the tension between the central state that wields national sovereignty and democratic politics.

On the current geopolitical rivalry, Walt’s realism tells him that placing morality front-and-center in resolving complex contradictions leads to worse outcomes.

Prof. Walt demonstrates his point by showing how the resort to moral arguments in the armed conflicts in Gaza and Ukraine has only prolonged and intensified the violence. In truth, the opposing parties have valid moral claims. Palestine has the right to resist an occupying force and an apartheid system. Israel has the right to secure its people from terrorism. Ukraine has the right to defend its territorial sovereignty. Russia understandably insists that it has the right to eliminate the existential threat of having the nuclear-armed NATO (North Atlantic Treaty Organization) deployed near its border.

In this context, a “good versus evil” framing does not alter the reality that the warring sides have sensible claims and interests that are better resolved through diplomacy and negotiations.

To quote Prof. Walt, a conflict framed in moral terms “makes it harder to reach a peace settlement, because anything short of total victory inevitably invites a powerful backlash from critics fearing that these critical values are being sacrificed.”

A heavy dose of realism is thus needed to make what seems intractable feasible. To quote Walt’s essay again: “But let’s not kid ourselves: In the end, conflicts often conclude in messy and morally imperfect bargains.”

In the same vein, Prof. Walt believes that the current conflicts that shake the world “will end with agreements that won’t satisfy anyone completely. None of the parties will get everything they want, and the strident moral declarations that leaders and pundits have issued while these wars were underway will ring hollow. The longer the participants cling to them, the harder it will be to bring the carnage to a close.”

While the Walt essay mainly addresses the conflicts between Israel and Palestine, and between Ukraine and Russia, it also has a significant bearing on the escalating tension in the South China Sea, especially between the Philippines and China.

It is not just China (as well as Taiwan) and the Philippines that are involved in the maritime dispute but other Southeast Asian countries as well. But it is the heightening conflict between China and the Philippines that creates a powder keg situation, with a potentially devastating impact beyond the region.

China’s aggression must stop, and the Philippines must be assertive in pushing back Chinese encroachment. That said, both China and the Philippines must pay attention to Prof. Walt’s prudent and pragmatic words.

In the case of the Philippines, the current administration has swung foreign policy towards dependence on US might. But this can only further provoke China.

Vietnam, which is a party to the dispute, has pursued a different strategy without diminishing its own claim to sovereignty over the disputed territories and waters. It is called the “bamboo diplomacy,” the bamboo being an apt metaphor to describe strength, stoutness, and flexibility.

The Financial Times (June 20) looks up to Vietnam’s “élan” in balancing geopolitical rivalries as exhibited by its successful hosting of Joe Biden, Xi Jinping, and Vladimir Putin. The FT says: “The string of visits shows how a country adept at attracting manufacturing investment from companies eager to diversify their supply chains is adroitly managing its foreign policy.” Vietnam has always followed an “independent and diversified foreign policy” or an “actively neutral” foreign policy.

The US obviously dislikes Vietnam’s hosting of Putin, but it cannot stop a proud Vietnam from acting on its own national interests.

Nguyen Khac Giang, a Vietnamese fellow at Singapore’s Iseas-Yusof Ishak Institute, offers a lesson that the Philippines can learn from: “Hanoi knows it must actively balance different powers… because that’s the way for Vietnam to gain benefits from all three powers. Otherwise, it would be drawn into political games without any ability to change the direction of the game.”

Along this line, despite the grave disputes between Vietnam and China, the two countries are exerting efforts to strengthen their ties towards a “shared future.”

The bamboo is also commonly found in the Philippines. It is high time our leaders adopted our own brand of bamboo diplomacy. The moralizing and emotional outbursts should give way to exercising flexibility anchored on strength and stoutness.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

PCPC says 135-MW coal plant in Panay to become fully operational by August

PALM Concepcion Power Corp. (PCPC) said it expects its 135-megawatt (MW) coal-fired power plant on Panay Island, which is undergoing restoration, to be fully operational by Aug. 3.

In an advisory on Friday, the company said United Kingdom-based contractor Quartzelec Ltd. is undertaking a two-phase repair for the damaged generator.

A preliminary repair, which began on June 10, would re-insulate the damaged coils that would make the power plant become fully operational by August, according to PCPC said.

“This provisional fix is to enable the power plant to be functional at the soonest possible time to ensure a stable supply of electricity to the Island of Panay,” the company said.

It said the power plant would undergo a permanent repair “concurrently” during the annual preventive maintenance schedule in October to November 2025 “due to the manufacturing lead time of the replacement parts from abroad.”

“We have notified various stakeholders across the energy sector and the government on this significant update,” it added.

The company in March said the plant would not be synchronized with the grid by the end of that month as it conducts its annual preventive maintenance service schedule, which ran from Feb. 18 to March 30. 

The company said the plant’s generator “sustained stator insulation damage” which would be fixed by replacing the damaged parts. It said it needed to import parts to fix the damage.

PCPC is a joint venture of A Brown Co., Inc. and Jin Navitas Resource, Inc. — Sheldeen Joy Talavera

T-bill, bond rates may be mixed before BSP meet

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week may end mixed ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Tuesday, or P5 billion each in 91-, 182-, and 364-day papers.

On Wednesday, it will offer P30 billion in reissued 20-year T-bonds with a remaining life of 19 years and 11 months.

Rates of T-bills and T-bonds to be auctioned off this week could track the mixed movements in secondary market yields last week amid policy signals from local monetary authorities, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The market is also anticipating the next BSP rate-setting meeting on Thursday, June 27,” Mr. Ricafort added.

At the secondary market on Friday, yields on the 91-day and 364-day T-bills went up by 3.29 basis points (bps) and 1.18 bps week on week to end at 5.6998% and 6.0896%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 182-day paper’s rate went down by 2.31 bps to 5.9463%.

On the other hand, the 20-year bond’s yield rose by 1.76 bps week on week to 6.8316%.

The BSP is widely expected to maintain its policy stance for a sixth straight meeting on Thursday amid persistent risks to the inflation outlook and a weak peso, analysts said.

All 15 analysts in a BusinessWorld poll conducted last week expect the Monetary Board to maintain its target reverse repurchase rate at a 17-year high of 6.5% at its policy meeting on Thursday.

The reissued 20-year bonds on offer this week could see “weak” demand and fetch yields ranging from 6.8%-6.95%, which could lead to a partial award, a trader said in an e-mail.

“We expect most investors to remain cautious while awaiting BTr’s borrowing schedule for the next quarter,” the trader added.

Last week, the government raised P15 billion as planned from the T-bills it offered as total bids reached P40.282 billion, or almost thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P17.18 billion. The average rate for the three-month paper inched down by 0.1 bp to 5.666% from the previous week. Accepted rates ranged from 5.645% to 5.674%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P12.56 billion. The average rate for the six-month T-bill stood at 5.914%, inching up by 0.6 bp, with accepted rates at 5.898% to 5.925%.

Lastly, the Treasury raised the planned P5 billion via the 364-day debt papers as demand for the tenor totaled P12.465 billion. The average rate of the one-year debt went up by 0.7 bp to 6.046%. Accepted yields were from 6.035% to 6.055%.

Meanwhile, the reissued 20-year bonds to be auctioned off on Tuesday were last offered on May 21, where the government raised just P22.717 billion out of the P30 billion placed on the auction block. The bonds were awarded at an average rate of 6.797%, 7.8 bps above the 6.875% coupon for the series.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion from T-bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy

Seres you in September

Seres 7 — PHOTO BY KAP MACEDA AGUILA

Premium electric vehicles are coming from another Chinese marque

I THINK it’s safe to say that we’ve reached an inflection point in our country’s mobility journey as it pertains to the brands we allow into our consideration set.

It’s already a bewildering selection as it is. Japanese, Korean, American, and European marques have long been competing for our attention and budgets. But the influx of so many Chinese brands in recent memory has been unprecedented.

Now, another challenger enters the ring. Formerly known as SF Motors and/or Chongqing Jinkang New Energy Automobile, Seres Automobile is a “new energy” vehicle specialist. The company itself falls under the larger Seres Group (itself formerly called the Chongqing Sokon Industry Group). If you’re not familiar with the term “new energy vehicles,” it’s China’s term for electrified vehicles, and even a cursory glance at the local industry reveals a growing selection of electrified mobility options from our neighbor from the north.

Of course, it is impossible to talk about China without addressing the ever-growing elephant in the room — namely, the contentious relationship of our two countries, especially when viewed through the prism of territory. “Let the customers ultimately decide if they would like to purchase a car from China. We are, after all, an open market economy, and more choices benefit the consumers and increase competition among industry players. Even top players like Toyota needed to dig deep in their product portfolio and introduce models from their Daihatsu line in order to compete with the rise of more affordable options from China,” recently wrote our occasional contributor Chris Yu — an industry veteran who now works for the United Asia Automotive Group, Inc., specifically looking after the Beijing-headquartered BAIC brand as its brand head and general manager.

Mr. Yu raised another valid point: “After World War II, there were many sentiments against both German and Japanese vehicles, because of the two nations’ involvement in the war. This clearly did not last long, as both countries now enjoy a robust automobile manufacturing industry and brands from both countries top the list in desirable automotive marques. Whether or not Chinese brands will share a similar trajectory in the Philippines is completely up to Filipino consumers.”

This is quite a long-winded introduction to my column this week, but I think it’s a needed discourse that cannot be glossed over — particularly since “mischief” between Philippine and Chinese troops in the West Philippine Sea is seemingly escalating. To say that this has no bearing on our choices and biases would be an egregious mistake. A Filipino executive for a Chinese brand here lamented how he believed sales would be a lot better without the intramurals. I agree. At the end of the day, buyers veritably “vote” with their pesos.

While technically debuting at the recent Manila International Auto Show, Seres Auto (here represented by heavy equipment distributor QSJ Motors Philippines, Inc.) did a more focused brand launch in Pasay City recently. It was a more thorough presentation that delved into the company’s roots that traces back all the way to 1986. The “technology-driven car manufacturer” counts itself among the top 500 companies in China and today is an “A-share listed company,” with new energy vehicles comprising its core business. It also is said to employ over 20,000 employees.

In a release, the partners tout the deal as “(marking) a pivotal moment in the Philippine automotive industry. This partnership leverages Seres’ expertise in electric vehicle manufacturing and QSJ Motors’ robust distribution capabilities to introduce a range of intelligent electric vehicles to the Philippines. This move is set to promote sustainable transportation solutions and support the country’s environmental goals.”

Even as a handful of models were unveiled at the brand launch, these were basically teases. We were told by Jona Chiang of QSJ Motors that pricing for the first batch of nameplates — the Seres 7 three-row SUV, Seres 5 EV, Seres SF (Saker Falcon) 5, and Seres 5 — will be available by September this year when these are officially launched. The company would also be ready to talk about dealerships by then, along with specific plans and aspirations for Seres, she promised.

What we could communicate though is that Seres is not playing in the traditional mass- to mid-market price point or even value proposition. Rather, the brand is introducing “intelligent luxury electric vehicles that combine innovation, sustainability, and unparalleled driving experiences.”

Of course, we will hold off judgment until we actually get behind the wheel of one of these models. Seres is saying, however, that many of its promises are anchored on its so-called MF platform that is said to introduce an industry-first “comprehensive safety system… covering over 150 safety scenarios (and boasting) more than 200 safety features (plus) 40 safety technologies.” Seres maintained that “this comprehensive approach significantly elevates the safety standards of the driving experience.”

But perhaps the sexiest value proposition, particularly for new energy vehicle fence-sitters, is range extender technology. Just what is it? “This technology extends the driving range of the electric vehicle by incorporating an additional generator that charges the battery when it runs low, thereby significantly enhancing the overall driving range. With this technology, (the user) gets the convenience of using electric power for city driving while also having the choice of traditional fuel for longer trips. This range extender technology ensures that drivers can travel longer distances without the anxiety of depleting the battery,” Seres reported.

Speaking of anxiety, here’s wishing our spat with our China deescalates soon. Everyone will surely be better served by peace than provocations.

For more information on Seres, e-mail info@seres.com.ph or sales@seres.com.ph. Its official Facebook account is Seres Motor Philippines; its website is www.seres.com.ph.

Farmers back 4-6 months of tariff review

REUTERS

By Adrian H. Halili, Reporter

A FOUR-TO-SIX-MONTH review of tariffs imposed on agricultural goods would promise relief for domestic producers against tariffs lowered potentially until 2028, farmers said.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said the more frequent review proposal shortens the review period from the one year the FFF originally proposed for the 15% tariff on rice.

“A review could result in cutting short the implementation period and reverting to 35% or even 50% for shipments exceeding the Minimum Access Volume quota,” Mr. Montemayor said via Viber.

Executive Order (EO) No. 62, signed by President Ferdinand R. Marcos, Jr. last week, formally approved the reduced tariff on rice imports to 15% from 35%, until 2028. It also covers lower tariffs on pork, corn, and mechanically deboned meat.

The EO also called for a review of the tariff schedule every four months to adjust to changes in global prices and supply.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said last week that he had proposed a shorter period for tariff reviews, following consultations.

In May, the Board of the National Economic and Development Authority approved a plan to lower tariffs on industrial and farm goods, including the further reduction of rice import tariffs.

Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura said that there should be a mechanism for the retraction of the executive order.

“We propose benchmarks for revoking the EO if the price of rice does not fall, and when the farmgate price falls,” Mr. Cainglet said via Viber.

He added that about 500,000 farmers would be affected by the EO due to the decline in farmgate prices of palay, or unmilled rice.

“The executive order was not clear; it did not state what (actions) would be done after a review,” Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc. said by phone.

He added that rice farmers could face a potential P10 per kilogram decline in farmgate prices should import tariffs be lowered.

“The traders and rice millers will have to buy (palay or unmilled rice) at a lower price to compete with imported rice,” Mr. Fausto said.

The average farmgate price for palay rose 30.2% year on year to an average of P24.81 per kilo in May, according to the Philippine Statistics Authority.

Mr. Montemayor said issues raised in previous consultations with the Tariff Commission have remained unaddressed.

“In the past, we carried the burden of proving that the tariffs were not effective; I think, it should be the proponents of the tariff cut who should prove that their prescription was effective,” he added.

Roy S. Kempis, a retired professor at the Pampanga State Agricultural University, said the more frequent tariff reviews would make them more responsive to changes in global prices and supply.

“A periodic review and eventual adjustments of rates can adapt to these changes. This makes the tariff regime more realistically set based on how sensitive the changes are in world prices and supply,” Mr. Kempis said via Viber.

The Philippines is expected to import about 4.6 million metric tons (MMT) this year in the face of the lowered tariffs and increased consumption, the US Department of Agriculture reported.

The Philippines has imported 2.23 MMT of rice as of June 13, according to the Bureau of Plant Industry.