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Basic Energy Corp. to hold Annual Stockholders’ Meeting on Sept. 18 via remote communication

 

 

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From war, better lives with clothes

PRODUCTS from Harvest: Woven clothes (above), and bags (left).

HOW OFTEN can you own something that is a true historical record, that also represents a desire for peace?

At this year’s MaArte Fair which ran from Aug. 29 to Sept. 1 at The Peninsula Manila, a prominently placed booth displayed Products of Peace, an initiative by TBWA Philippines which brought together the projects of two women who are now working together to help women achieve peace in the communities where they live.

Sinagtala Philippines is a non-profit organization focused on supporting impoverished communities affected by conflict. It was founded at the height of the Marawi Crisis of 2017, a conflict in Mindanao between the Philippine armed forces and militant groups sympathetic to the terrorist organization ISIS. The conflict lasted five months and wrecked the city. Sinagtala co-founder Jamela Alindogan, covering the conflict as a correspondent for the Doha-based news channel Al Jazeera, started the organization after meeting a weaver displaced by the conflict.

“I spoke to the Philippine military to give us space, and they were able to give us space right at the capital. So we opened a crisis center for women and children,” she said during a press conference on Aug. 30 at The Pen. Sinagtala provided looms and established weaving facilities to help Maranao women channel their emotional distress through their rich weaving heritage. From the lone weaver, they have since had more than 150 graduates from the center.

During the press conference, a weaver appeared on video to speak about her experience in the center. “Nalilimutan namin iyong mga bomba, putukan. Hindi namin naririnig (We’d forget the bombs, the shootings. We didn’t hear them),” she said. She gave her loom a click. “May sound. Sumasabay sa, iyong sa labas (it makes a sound the same time sound comes from outside),” she said of the loom.

This particular exercise gave birth to the boom-boom pattern, spikes and irregularities in the pattern of the cloth they were weaving reflecting an explosion every time a bomb was dropped as they worked.

“For the record, none of these women knew how to weave before the war,” Ms. Alindogan explained, saying that some of them had been teachers and entrepreneurs before the war. “They were weaving as bombs continued to fall. It was very surreal, because people would come, and they would be surprised that there would be a weaving center at the height of [the] Marawi [conflict].”

The weaving center had to close during the COVID-19 lockdowns of 2020 because it was used as a rehabilitation center for suspected COVID-19 patients. They then moved to Jolo in Sulu, also a center of conflict in Mindanao. Jolo had long been a hotbed of Muslim separatist groups. There, the women training to be weavers were wives, widows, daughters, and orphans of the militants.

“In war, we can count the number of fighters. But there is no number [recorded] of the female members of their family,” said Ms. Alindogan. “Women often bear the trauma of conflict.”

HARVEST
Harvest, launched in 2019, is a sustainable social enterprise that turns discarded military uniforms into high-quality handwoven products. By repurposing old uniforms, Harvest not only addresses environmental issues but also provides economic opportunities for the wives and dependents of soldiers who have served in conflict zones. Harvest is a project of the Bayo Foundation, by Bayo clothing brand founder Anna Lagon.

Ms. Lagon’s company was approached by the military to do something about their large supply of damaged uniforms. Soldiers’ uniforms are replaced yearly or every two years, according to Ms. Lagon. “They cannot just donate them, for security reasons. And if they destroy them, it will give more problems,” said Ms. Lagon at the press conference.

What they do is they break down the uniforms either to be used as off-cuts in clothes, or the threads are reused as raw material to be woven. Colored stripes, for example, represent these former uniforms.

Ms. Lagon is herself a descendant of a soldier through her grandfather. “What we will be creating is something for the families. This will now be symbolic… the reminder of how these uniforms fight for us.” The weavers for this project are the family members of soldiers. In tears during the press conference, Ms. Lagon said, “This time, sila naman (it’s their turn).”

“They’ve always been in the battle, sacrificing their lives for us,” she said. “They don’t have to worry too much, because they will be busy.

“We’re not just making clothes. We’re building lives,” she said.

TWO SIDES
The booth at the MaArte Fair was called Products of Peace (they also sold coffee grown on some of the ex-battlefields in Mindanao). The military presence is still strong in Mindanao, and despite the creation of the Bangsamoro Autonomous Region in Muslim Mindanao, a formalized peace has not been achieved between all the separatist groups and the military (no news today about another such conflict is merely breathing room for the next).

The two projects, separately, benefit the people stuck between two sides of the conflict, but now they share space. Ms. Lagon said, “This is actually not a challenge, but an exciting opportunity, to show how we can create and look at the positivity of this… both are suffering. There are different levels of challenges… but you know, we can actually work together.”

“Products of Peace represents not just one side, but both sides. In all angles, if you just look at one vision, of really creating, encouraging peace… I think it will really be a better place for everybody.”

Ms. Alindogan, meanwhile, said that some of their weavers are still married to men on a watchlist kept by the Army. “To be fair to the military, they’ve been our partners since we opened, at the height of the Marawi war,” she said. “We do have a steady partnership with the Philippine Army,” saying that the army provides them with peripheral security, among other forms of assistance. She reiterates however, that within the center, “Kami lang (it’s just us),” and conflict is left at the door.

“We’re all Filipinos. Whatever political spectrum you’re in. A loss of one life is a loss for us all. For me, as a journalist. I do not see opposing sides. I see people I love, who share the same bloodline.”

For more information, follow Sinagtala PH, and HARVEST on Facebook and Instagram, and learn more about Products of Peace at https://www.productsofpeace.ph/. — Joseph L. Garcia

PetroEnergy targets to deliver 500 MW of power by 2028-2029

PETROENERGY Resources Corp. (PERC), the publicly listed energy arm of the Yuchengco Group of Companies, aims to increase its energy capacity to 500 megawatts (MW) by 2028-2029.

“Right now, we have about 145 megawatts capacity and in the next year or so, we will be adding about 100 more megawatts. By 2028 and to 2029, we ambition to be 500 megawatts in terms of capacity,” PERC Senior Vice-President for Corporate Services Arlan P. Profeta said at a forum last week.

Mr. Profeta said that the company is still evaluating whether to participate in the upcoming rounds of the Department of Energy’s (DoE) Green Energy Auction (GEA).

“We’re looking into that also, but I cannot confirm anything right now; all of these are being studied,” he said.

The DoE is set to conduct two rounds of GEA this year, which will cover various renewable energy technologies. The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection.

In April, PetroWind Energy, Inc. (PWEI) announced that Phase 2 of the 13.2-MW Nabas wind power project had begun exporting power to the grid.

The Nabas-2 wind power project, located south of the existing 36-MW Nabas-1 wind power project, will add six turbine generators to the 18 turbines already in operation in Phase 1.

PWEI is a joint venture of PetroGreen Energy Corp., the renewable energy holding unit of PERC, and Thailand’s BCPG Public Co. Ltd.

In May, PERC, through its Dagohoy Green Energy Corp. unit, started the installation of photovoltaic panels in its 27-MW direct current solar power project in Dagohoy, Bohol.

For the second quarter, PERC reported a 27.9% increase in its attributable net income to P134.2 million. Gross revenues grew by 9.9% to P847.46 million. — Sheldeen Joy Talavera

Revisit constitutional change after the 2025 elections

PHILIPPINE STAR/EDD GUMBAN

The frenzy earlier in the year on possibly amending the constitution has died down. The focus is now on the midterm elections, including how the political feud between the administration of President Ferdinand Marcos, Jr. and the Duterte family might play out at the ballet box. It makes for good headlines and an interesting storyline: up to possibly three Duterte family members being elected to senate, challenging Marcos and those they blame for the attacks on them and their allies, and setting up the battle in 2028 between Vice-President Sara Duterte and the administration proxy. There would be some economic consequences soon after the 2025 midterms. Wary of a significant shift in policy and personnel in a few years’ time should the Dutertes emerge victorious, family conglomerates and foreign investors could slow down their investments in the second half of Marcos’ term.

The shorthand explanation for this phenomenon is that personalities dominate our politics. Our electorate chooses candidates based on who is most familiar or well-known, which is why some candidates for the senate put up posters a year or more ahead of the elections, because they can exploit a loophole that everyone knows is a loophole. Or why the most popular athletes, celebrities, and radio personalities have a good chance of making it to the highest positions in the land.

The other way is by exploiting the perceptions of a connection, no matter how distant, unreliable, or even unreal. If Pedro, the city councilor, is the cousin of my neighbor, and Pedro claims to know the son-in-law of a politician’s nephew’s driver, then maybe I should support whoever Pedro endorses, on the off chance that my neighbor can approach Pedro should I need something down the road. That, of course, is an exaggeration, but which is also why politicians recognize that local leaders can be invaluable in distributing largesse and organizing local networks that deliver votes.

After the elections, alliances are built around the short-term goals of gaining access to government funds — which is the reason for the multitude of deputy speakers in the House of Representatives, and why principled, consistent opposition is rare. Meanwhile, promises made during elections or an administration’s term hardly have any consequences for a politician’s career.

Paradoxically, many of the debates and discussions around Cha-cha highlighted how its main goal was to amend the economic provisions of the constitution to encourage economic growth. The justification seemed almost apologetic for such an important process, because attempting to do more would deem the process to failure.

But ask any Filipino, and they will give a different answer: the reason our economy is not flourishing, or why politics does not seem to deliver in terms of building a better outlook for them or their families, is that our politics is dysfunctional. Politicians are rarely punished for not fulfilling their campaign promises. A sitting president can paint the rosiest outlook, cater to powerful friends, or make the most outlandish promises, and their party or political allies will not suffer any measurable political consequences in subsequent elections. Bureaucratic or political malfeasances, whether through negligence, corruption, or in catering to vested interests to the public’s detriment, is only punished inconsistently, if at all. Politics and policy are shaped by access, not the fear of being voted out during elections.

Some of the solutions to this fundamental complaint about our system requires that we reexamine whether we should shift to a parliamentary form of government, remove presidential term limits, elect senators at a sub-national level or abandon the party-list system. Because we must address the question of why political accountability is weak, and whether the solution starts with reformulating the constitutional design of government. After all, a president constrained to one term has limited incentives to deliver on an administration’s campaign promises. Or maybe consider the analysis of Adam Przeworski, a professor emeritus of politics at NYU, who argues that the American system of presidentialism has worked only effectively in the United States. Why this is the case is for a future column, but it is an issue that deserves consideration because we adopted the presidential system of government with its concept of fixed-term elections as a historical accident of having been colonized by the United States more than a century ago. In his excellent book, The Crisis of the Middle-Class Constitution, the legal scholar Ganesh Sitaraman argues that the US’ founding fathers designed a constitution when America was relatively unequal, and therefore it was not designed to address inequality of power or wealth in the young country. In contrast, that was exactly the problem we had when our first constitution was being designed. Much land was in the hands of wealthy Spanish families or their local allies, and obviously institutions would evolve in terms of protecting those powers, benefits, and relationship.

Opening up the constitution is a difficult thing. It can lead to intense disputes, draws immense political attention domestically and abroad and is highly unpredictable. The process can result in a worse constitution, possibly just as much, as in something better. But the despondence that people feel today about politicians’ lack of accountability, the prevalence of corruption and the inability of the system to build a better outlook cause many to leave for abroad, even at the terrible cost of familial separation. There is no greater condemnation by a citizenry of a system’s failure than their desire to leave the country of their birth because of lack of hope.

The poor are faulted for voting into power incompetent leaders and corrupt politicians. But elites fail to see something else: former President Rodrigo Duterte won because of this frustration. He threatened to shake up Philippine politics — to kick the chair out from under complacent and complicit bureaucrats, make institutions deliver public goods (particularly in law and order), weaken oligarchs, and change long-standing political alliances that only benefited the elites. Whether or not he really had this intention or knew how to fulfill it can be debated, but many Filipinos who voted for him and support him until today believe this to be the urgent need of politics.

Politics, political parties, and alliances are built along social cleavages. Philippine elites had become complacent in thinking they could define these cleavages and manipulate them along artificial lines. Duterte shook them from that complacency because he promised to deliver on the grievances that people had about power, opportunity, and voice, but the lesson had not been learned. Our problem is not with the personalities in power; they are the side-effects of the failings of the system to deliver real political accountability, and for this reason a reassessment of the design of the political system is needed. The Duterte presidency was not an accident of history, but the result of it.

Any attempt to reopen the constitution after the midterms will, however, be criticized as possibly being an effort by the Marcos administration to eliminate term limits so that the president can run again. One solution is to have a constitutional convention whose term and final output will be delivered after only the next elections. But the issues with our constitution and how our system is designed both politically and socially need to be brought out into the public light and debated, warts and all, risks and all, not be the subject of some opaque signature drive or be treated as an aside.

 

Bob Herrera-Lim is a political analyst who advises investors globally. He is also a fellow for the Foundation for Economic Freedom.

Country’s biggest MG facility opens in Greenhills

PHOTO BY KAP MACEDA AGUILA

THE FAMOUS automotive row on EDSA just added another piece to its growing collection of marques. MG Greenhills, owned and operated by Britannica United Motors, Inc., was recently inaugurated by executives of MG Philippines and the aforementioned dealership group.

Located at 500 EDSA, Greenhills, San Juan City, MG Greenhills is the largest local facility of the British-heritage auto brand. It stands on a 1,900-sq.m. piece of prime real estate, upon which the 1,650-sq.m. dealership rises. In a release, MG Philippines said it is “another major step in strengthening the presence of MG in the Philippines and giving Filipino motorists access to high-quality MG cars.”

During the inauguration, MG Philippines President Felix Jiang told this writer that the company expects to have around 60 dealerships open by yearend.

Meanwhile, Britannica United Motors, Inc. President Jan Andrew Po said in a separate interview that the group now has nine MG facilities: MG Greenhills, MG Libis, MG Congressional, MG Calasiao, MG Iloilo, MG Bacolod, MG Valencia, MG Davao, and MG General Santos. “We’re still working on MG Tagum now, and we’re going to start on construction at some point,” he told “Velocity.” Additionally, the company is exploring the idea of putting up retail (1S) sites.

MG Greenhills features 19 service bays and 11 lifters, plus a six-car display showroom. “We’re focusing on improving the service infrastructure,” Mr. Po added, and explained that the service areas MG Libis and MG Congressional will be devoted solely for PMS (preventive maintenance service), with major repair work being diverted to MG Greenhills or the MG service center on Quezon Avenue. “Libis and Congressional now become express service centers,” he said.

MG Greenhills is said to boast MG-certified technicians working with the “latest diagnostic tools and equipment, ensuring accurate assessments and effective maintenance.” Britannica promises “clear and upfront pricing, with no hidden charges.” At the dealership, customers wait in comfort in “well-appointed waiting areas with amenities such as free Wi-Fi, refreshments, and entertainment options.”

Britannica can take care of bringing vehicles for repair to Greenhills or Quezon Avenue via tow truck if there are major issues with it, but Mr. Po said that if it still runs, then he suggests the customer bring it straight to either location for a quicker resolution.

The executive credits SAIC Motor Philippines for making spare parts readily available for MG’s PMS customers. “For instance, after the (Typhoon Carina) flooding, we had a total of 19 cars brought in for flood-damage repairs. We’re already done with 15,” Mr. Po shared, and added that they’re currently at 97% fill rate. “(MG Philippines) has reinforced its service process, and investment for parts. Currently, I think the parts inventory is eight times the level it was at three years ago.”

Along with its internal combustion engine (ICE)-powered offerings, MG in the Philippines has already been in the EV (electric vehicle) space for a while now, with several offerings in the BEV portfolio — namely the MG 4, MG Cyberster, MG Marvel R and MG ZS EV. “Awareness about electric vehicles is something that has to be improved still,” he commented.

As it stands though, Britannica boasts of a DC charger in MG Libis, and Mr. Po promised to put more of the same at MG Quezon Avenue and MG Greenhills. Notably, he said that, for the meantime, the charger at Libis is brand agnostic; any EV with a CS2 port can be charged for free.

MG Greenhills is open from Monday to Saturday, 8:30 a.m. to 5 p.m. For inquiries and appointments, contact (0993-GRHILLS). — Kap Maceda Aguila

Digital banks: Teaching the old banks new tricks

FREEPIK

By Karis Kasarinlan Paolo D. Mendoza, Researcher

On Nov. 26, 2020, the Bangko Sentral ng Pilipinas (BSP) introduced its Digital Banking Framework as part of its Digital Banking Transformation Roadmap — an initiative to a safe and secure digital payments ecosystem in the Philippines — with the objective of reinforcing consumer preference for digital payment options and increasing the availability of digital financial products and services.

The framework, which recognized digital banks as a new banking category, allows for a more efficient, technology-driven, and inclusive financial system.

“Digital banks operate entirely through digital platforms and electronic channels without physical branches or sub-branches. It is a distinct banking category created by the Bangko Sentral ng Pilipinas… Like other banks, digital banks adhere to a rigorous regulatory framework, reflecting their critical role in the financial ecosystem,” Angelo Madrid, President of the Digital Bank Association of the Philippines (DiBA PH) and president of Maya Bank, said in an e-mail.

He noted that while online lending platforms focus on providing loans, digital banks offer a comprehensive range of services.

“[Digital] banks provide a full suite of banking services, including savings accounts, loans, and payment services, all integrated into a seamless, user-friendly digital experience,” Tonik Digital Bank Founder and President Greg Krasnov said in an e-mail interview.

By Aug. 24, 2022, six digital banks — UNO Digital Bank, UnionDigital Bank, GoTyme, Overseas Filipino Bank, Tonik Digital Bank, and Maya Bank — were allowed to fully operate in the Philippines.

DEVELOPMENTS AND CHALLENGES
The BSP recently announced that it will be allowing four new digital banks to enter the scene as it lifts its three-year moratorium on applications for digital banking permits imposed in 2021. New licenses will be available starting Jan. 1, 2025.

“With this limit, the BSP can closely monitor developments in the digital banking industry, obtain broader perspective as these banks mature further in their operations, as well as assess the impact of the entry of new players on the banking system,” BSP Governor Eli M. Remolona, Jr., said in a press release.

Mr. Krasnov said that digital banks licensed next year will probably be operational by 2026.

“Traditional banks are likely to be interested in [securing the available slots], either by establishing their own digital banks or investing in partnerships with fintech companies. Some might even consider converting existing licenses to digital bank licenses,” Mike Singh, chief commercial and revenue officer of UnionDigital Bank, said in an e-mail.

As a relatively new category in the financial ecosystem, digital banks now face the challenge of profitability, with only two of the six digital banks reporting profits as of March.

This, however, is not indicative of the underlying trend in the digital banking sector as they are subsidiaries of large universal banks, Mr. Krasnov explained.

“Their achievement of profitability was driven by large loan portfolio transfers from their parent institutions… Digital banking involves a significant upfront investment, both in terms of [capital] and ongoing [operational expenditures] to maintain the advanced digital bank stack. It typically takes five years for a new bank to become profitable,” he said.

Collectively, digital banks have posted a net loss of P4.11 billion, while traditional banks have an aggregate net income of P178.91 billion as of end-June, data from the BSP showed.

“Despite digital banking’s early stage, the sector is already hitting record growth milestones, a strong indicator of future profitability… The continued growth in customer base and deposits, coupled with ongoing innovations, positions the digital banking sector for sustained success and profitability in the coming years,” Mr. Madrid said.

The total assets of digital banks grew 35% year on year as of end-June to P104.12 billion from P77.13 billion, outpacing the 12.4% year-on-year asset growth of universal and commercial banks, latest central bank data showed.

Similarly, digital banks’ total loans reached P28.27 billion in the first semester, up 26.2% from P22.39 billion a year ago.

Meanwhile, big banks posted an 11.9% year-on-year increase in loans with P13.25 trillion as of end-June.

By the end of the first half, the total deposits of digital banks stood at P82.36 billion, up 32.8% from P62.01 billion a year ago. The big banks’ total deposits also grew 9.3% to P18.32 trillion — more than 222 times larger than the digital banks’.

PROS AND CONS
Existing purely in the digital space comes with its advantages and disadvantages.

“Some pros of digital banks include accessibility to banking services anytime and anywhere, lower fees and competitive interest rates brought by lower overhead costs, and innovative features like quick loan approvals and seamless digital experiences,” Mr. Krasnov said.

Karl De Galicia, a 24-year-old Filipino student in Taiwan, says the features he looks for in banks are accessibility and lower processing fees.

While he says that the features and services of digital banks are more in line with his needs, he admits to using traditional banks more frequently.

“I think digital banks are more accessible because you can cash in anywhere unlike with traditional banks where you have to line up to deposit,” he said in a Facebook Messenger chat.

“While GoTyme is more accessible, I more frequently use BDO because this is where my family sends money, and it was my established account when I left for Taiwan. I have also linked my apps to BDO because I’m more certain that I have money there,” he added.

Another advantage is the ability to implement cutting-edge technology, providing a more personalized and efficient banking experience, Mr. Madrid said.

“Digital banks have a better user-interface (UI), and I appreciate being able to check my balance anytime. Meanwhile, the online and mobile applications of my traditional bank are often out of service,” Mr. De Galicia said.

Anica Ang, 23, prefers digital banks. She prioritizes being able to pay her bills online and having access to her bank internationally.

“I think digital banks are safe. Cybersecurity challenges stem from users falling for scams rather than mistakes from the banks,” Ms. Ang said.

On the other hand, Mr. Singh cited the lack of physical branches as a challenge for digital banks in a “predominantly cash-based society.”

“[Cons for digital banks] are lack physical branches, potential security concerns, and limited customer service options,” Security Bank Corp. Chief Economist Robert Dan J. Roces likewise said.

IMPROVEMENT
“Traditional banks can learn from digital banks by embracing digital transformation more fully. This includes improving their mobile and online banking platforms to offer a more seamless and intuitive user experience,” Tonik’s Mr. Krasnov said.

“Additionally, traditional banks can adopt more flexible fee structures and competitive interest rates, leveraging their existing resources to offer value-added services that digital banks might lack, such as personalized financial advice and comprehensive financial planning,” he said.

He added that traditional banks should focus on expanding their digital reach to underserved areas via partnerships with fintech companies, or by developing their own “digital-only” products.

Mr. Madrid said that traditional banks should launch new products faster and improve existing services based on customer feedback. He stressed the importance of investing in robust mobile and online banking platforms

Meanwhile, digital banks can learn from traditional banks by enhancing customer trust and highlighting robust security measures, Mr. Roces said.

“Digital banks can learn the importance of building customer trust and maintaining a strong brand reputation, which traditional banks have cultivated over many years. This can be achieved through transparent communication, robust security measures, and consistent customer service,” Mr. Krasnov likewise said.

“Traditional banks have been around for a while and often excel in relationship banking, where bank representatives build long-term customer relationships. They have utilized their branch models to hone these relationships over time. Digital banks are adopting these learnings and taking relationship management into the digital age by going beyond bank branches, utilizing technology platforms, and ensuring security and reliability,” Mr. Madrid said.

OUTLOOK
For the digital banks here in the country, there’s no other way but to grow.

“As the digital banking industry becomes more crowded, we anticipate continued growth driven by increasing consumer adoption of the convenience and benefits offered by digital banking, including our competitive interest rates on savings and time deposits. More consumers are now leveraging these advantages compared to when the industry was first introduced,” Mr. Singh said.

“For the rest of the year, digital banks are expected to continue growing, albeit cautiously due to the challenging macroeconomic environment. They will likely focus on refining their products, working towards profitability, and expanding their customer base through targeted marketing and innovative financial products,” Mr. Krasnov said.

He added that traditional banks will diversify their digital offerings and leverage their customer base.

“Both sectors will need to navigate economic challenges carefully, but the trend toward digitalization will persist, driving continued innovation and competition in the financial industry,” Mr. Krasnov said.

A case for natural diamonds

CATRIONA GRAY’S ‘Three Stars and the Sun,’ ear cuff from tessera.ph. — TESSERA.PH

WHILE lab-grown diamonds are becoming a more budget-friendly alternative to those mined naturally, a jewelry company in the Philippines is making a case for the latter.

We visited Tessera’s showroom in Arton in Katipunan last week (they have two more branches in Rockwell and in Davao’s Abreeza), and saw a display of standard engagement rings, diamond studs, and even a stunning tennis necklace, a symmetrical strand made with diamonds of uniform size. It could have been any other jewelry store in the city, except for the GIA (Gemological Institute of America) seal prominently shown among the display shelves.

“We are dedicated to upholding the highest standards of quality and ethical integrity. Our stones are GIA-certified. This certification ensures that our diamonds meet rigorous authenticity and quality benchmarks. Our commitment extends to sourcing only conflict-free and naturally mined diamonds, guaranteeing that each gem is responsibly obtained,” said Tessera co-founder Papat Fider in an e-mail. She and her husband Carl founded the brand in 2011.

“To further reassure our clients, we have implemented specialized tools and processes in-store that allow us to verify and demonstrate that every diamond we offer is both naturally mined and certified. This transparency ensures that our customers can have complete confidence in the integrity and value of their purchase,” she added.

Carl Fider himself has an exclusive line called CTJ (“Carl the Jeweler”). “The CTJ line was conceived as a more exclusive offering, specifically catering to the top of the pyramid. Created by Carl, CTJ targets discerning clients who already possess a vast collection of larger carat diamond jewelry but are eager to explore other precious gemstones,” said Ms. Fider.

While the couple were mum about their celebrity clients, they are not hard to find in the media. They did design the ear cuff worn by Catriona Gray when she won Miss Universe in 2018. Named “Three Stars and the Sun,” the ear cuff of 18K yellow gold with four carats of diamonds took a month to make, and their website lists it as costing P178,000.

“The Tessera client is an individual who values both the artistry of fine jewelry and the personal significance it holds. They seek pieces that not only celebrate life’s defining moments and milestones but also reflect their unique personality and refined taste,” said Ms. Fider.

She explained why they stick to mined (and not lab-grown) stones. “Using mined diamonds remains important because they offer a unique blend of natural beauty, rarity, and heritage that lab-grown diamonds cannot replicate. Mined diamonds, formed over millions of years, carry with them a story and timeless allure that adds to their intrinsic value. Their worth tends to increase over time, making them a meaningful investment for those seeking a piece that holds and grows in value,” she said. “These gems not only connect us to the natural world but also embody the craftsmanship and tradition of fine jewelry. While lab-grown diamonds present innovative alternatives, they typically do not offer the same enduring value that naturally mined diamonds provide.”

When she speaks about investments, one thinks about reports that millennials and those younger than them usually shy away from diamonds, mostly due to their associations with conflict, or due to the fact that for many, they have simply become out of reach, price-wise. To this Ms. Fider says, “The jewelry market is experiencing changes as younger generations develop new preferences. At Tessera, we’re dedicated to evolving with these trends while maintaining our core values of quality and craftsmanship. We understand that younger consumers seek jewelry that reflects their individuality and holds personal significance.

“By staying innovative and attuned to customer preferences, we aim to offer jewelry that resonates with a broad audience, celebrating life’s special moments and achievements,” she said.

To set an appointment to view Tessera’s gems at their stores in Rockwell Drive, Makati; The Arton Strip, Katipunan; and Ayala Abreeza, Davao, call 7091-5885. — JLG

Globe expands digital infrastructure with 20 new sites in Luzon

GLOBE Telecom, Inc. announced on Sunday the expansion of its digital infrastructure in Luzon with 20 new sites.

“With these new towers and expansion sites, we are not only enhancing connectivity but also empowering communities to thrive in the digital age,” Globe’s Head of Service Planning and Engineering Joel R. Agustin said in a media release.

The Ayala-led telecommunications company has established 20 new sites across four provinces in Central Luzon: six in Bulacan, six in Nueva Ecija, five in Pampanga, and three in Tarlac.

For the first semester of the year, the company has expanded its network infrastructure by adding 352 new cell towers and upgrading 1,942 existing mobile sites to long-term evolution (LTE) technology.

Additionally, Globe has deployed 39,880 fiber-to-the-home (FTTH) lines in the first six months of the year to enhance its high-speed fiber internet coverage.

“Better connectivity in the four provinces are seen to benefit various industries, including agriculture, food processing, aquaculture, handicraft and tourism, among others,” it said.

For the second quarter, Globe saw its attributable net income increase by 9.5% to P7.74 billion from last year’s P7.07 billion lifted by expenses cut for the period.

Gross revenues for the second quarter reached P44.32 billion, lower by 0.38% from P44.49 billion a year ago, the company’s financial report showed.

The company’s lower expenses for the period managed to offset its lower revenues, according to Globe’s financial report.

Shares in the company closed P38, or 1.7% lower, at P2,200 apiece at the stock exchange on Friday. — Ashley Erika O. Jose

Volume landed at fishports in July declines 12.9% month on month

PHILSTAR FILE PHOTO

THE catch landed at regional fishports (RFPs) totaled 50,862.42 metric tons (MT) in July, down 12.9% from a month earlier, according to the Philippine Fisheries Development Authority (PFDA).

“Despite some setbacks due to weather and closed fishing season, the PFDA and its RFPs are consistently doing their best to provide sufficient and affordable fishery products to its clients and stakeholders,” the PFDA said in a report.

The General Santos Fishport Complex reported deliveries of 25,205 MT, down from 29,635.67 MT reported the previous month.

Deliveries at the Navotas fishport decreased 18.5% to 17,765 MT during the month.

The Iloilo fishport reported landed volume of 3,053.05 MT, up 21.86% from a month earlier.

It added that the Lucena Fish Port Complex received deliveries of 1,793 MT while Bulan fishport in Sorsogon had 1,785 MT.

The Davao Fish Port Complex had deliveries amounting to 182.4 MT.

It said that a closed fishing season was in force along the Davao Gulf between June 1 and Aug. 31.

The catch landed at the Zamboanga and the Sual, Pangasinan fishports rose 10.45% and 3.69% respectively during the period. It did not provide volume data for the month. — Adrian H. Halili

Questions that the Finance secretary and former Finance secretaries must answer

BW FILE PHOTO

The former secretaries of Finance recently expressed their support for Finance Secretary Ralph Recto’s move to secure P90 billion from the Philippine Health Insurance Corp./ (PhilHealth) and P110 billion from the Philippine Deposit Insurance Corp. (PDIC). The former secretaries focused on the difficulty of mobilizing revenue to finance crucial government projects and the opportunity costs of leaving funds dormant. However, we must consider the critical matters that they have missed, if we are to evaluate from a responsible public finance perspective the action taken by Secretary Recto.

First and foremost, PhilHealth and PDIC are insurance corporations. They are organized for very specific purposes. PhilHealth was organized to “provide health insurance coverage and ensure affordable, acceptable, available and accessible healthcare services for all citizens of the Philippines.” The PDIC, on the other hand, is mandated to “provide deposit insurance coverage for the depositing public and help promote financial stability.”

The funds of these institutions should be solely used for their intended purposes. For PhilHealth, the fund is from premium payments of members. The National Government is responsible for paying the premium of indigents, senior citizens, Pantawid Pamilyang Pilipino Program (4Ps) recipients, persons with disabilities, Sangguniang Kabataan officials, and the unemployed. Is it appropriate to divert resources intended for social insurance to funding other government programs? As financial technocrats, shouldn’t we protect the integrity of our social health insurance and ensure it effectively serves its intended purpose?

The former secretaries also emphasized “the heavy responsibility the DoF (Department of Finance) bears in funding the nation’s dreams and aspirations for the Filipino people.” The former secretaries should be reminded that a functioning social health insurance program is part of our aspirations. Taking away PhilHealth funds to finance other government projects clearly minimizes the value of the health of the Filipino people. While we recognize the importance of public projects that can strengthen our economy and ensure long-term gains, shouldn’t we also uphold equity and social justice? Removing the funds from PhilHealth ultimately passes the burden of financing our social health insurance program mainly to the working classes, who as direct contributors, are required to pay PhilHealth premium. All contributors expect better health insurance coverage, but they are only getting a pittance from PhilHealth.

Part of responsible public financing is also scrutinizing how this lack of available funds for crucial government projects happened. These “crucial government projects” were placed by the members of the Congressional bicameral conference committee under the unprogrammed appropriations of the 2024 budget. Unprogrammed appropriations imply that these projects are not a priority and can only be funded if there is surplus revenue. If these projects are vital for economic growth, if these projects are indeed crucial, why did not Congress prioritize them?  In truth, Secretary Recto is the best person to answer that because during the budget deliberation, he was a congressman and a member of the bicameral conference committee.

The bicameral conference committee also made notable increases in the budget of the House of Representatives (P12 billion), Senate (P2 billion), and the Department of Public Works and Highways or DPWH (P173.89 billion). The increase in the DPWH budget is primarily for flood control and convergence programs, which include roads and multipurpose buildings.  Is it sound financial management to further increase the budget of DPWH when its disbursement rate for flood control projects is only at 58%, as was revealed in a Senate hearing?

And what was the extra P12-billion budget of the House of Representatives and the P2-billion budget of the Senate for?  We don’t know, because the bicameral conference committee deliberation is the most opaque of all the legislative processes in the country. No livestream, no publicly available minutes, no accountability. Nevertheless, before signing the endorsement letter, the former Finance secretaries could have asked Secretary Recto this information.

Given the limited budget and the already low disbursement rate of DPWH, the clouded increase in the DPWH during the bicameral conference committee meeting raises questions. Why are resources being funneled into expanding the budget of DPWH — for that matter, the budgets of the House of Representatives and the Senate — when “crucial projects” are left wanting?

The former secretaries also mentioned the opportunity costs of unused funds. The opportunity cost that is worth emphasizing is the loss in productivity and contribution to the economy resulting from failing to meet the health needs of the population. Wouldn’t it be more beneficial to have a healthy, active population driving economic growth?

As we navigate the complexities of fiscal policy, we must ensure that the hard-earned money of taxpayers is allocated transparently and effectively. The transfer of the funds of PhilHealth, PDIC, and other GOCCs to the National Government is not responsible public financing. Public finance management asserts the allocation of funds for priority development projects. These projects should not have been set aside to give away to pork barrel insertions.

How can we call prioritizing pork barrel spending and discretionary projects over vital social programs responsible public financing?

 

Cielo Magno is a trustee of Action for Economic Reforms, the co-Chair of the Open Governance Partnership, and is an associate professor at the University of the Philippines School of Economics.

Toyota Gazoo Racing GT Cup PHL winners named

From left are Toyota Motor Philippines (TMP) Senior Vice-President Masahiro Haoka, Toyota Gazoo Racing (TGR) GT Cup Philippines 2024 first runner-up Enzo Ison, champion Luis Moreno, third-placer Russel Reyes, and TMP President Masando Hashimoto. — PHOTO FROM TOYOTA MOTOR PHILIPPINES

THE TOYOTA Gazoo Racing (TGR) GT Cup Philippines recently concluded with a live event at the SM Mall of Asia. Held for the first time live in a public venue, the TGR GT Cup Philippines Finals drew large crowds as top sim racers in the country put on a show for a chance to bring home cash prizes, exclusive TGR merchandise, Autocross Challenge seats, and the honor of representing the Philippines at the Asia Finals.

The quarterfinal round ensued with the top 40 fastest e-racers from the qualifiers battling it out on Trial Mountain in the Toyota GR Yaris RZ “High Performance” ’20. The participants were seeded into four batches of 10 players each, and each batch went head-to-head for three race heats. The first race held a qualifying time trial to set the grid, while the second race put winners of the first race at the back of the grid in an exciting reverse grid. The third race once again had the racers put in their fastest lap for a chance to start higher on the grid.

Luis Moreno, who was the TGR GT Cup champion in 2021, has been sim racing for more than 10 years. He and defending champion Russel Reyes solidified their places as top contenders, winning all three races of their respective batches. Past Junior Class champion Enzo Ison also dominated his batch. Former Promotional Class champion Stanley Golez went on to win two out of the three races for his batch, the other being won by newcomer Adrian Unisa.

The semifinal round pitted the top 20 against each other on the Suzuka Circuit in the Toyota GR Supra RZ ’20. Similar to the quarterfinals, the semifinals had three race heats for two batches of 10 players each. Qualifying time trials were done for the first and third races, while the second race reversed the grid, putting the top placers of race one at the back. Weather conditions, which were chosen at random, were thrown into the races to further test the skill of the drivers. The first race was met with a drizzle, the second race with dry weather, and the third race with full-on rain.

Race One of the first batch of the Semifinals saw Luis Moreno crossing the finish line with an eight-second lead from the rest of the pack, with Jether Miole in second after a close fight with Enzo Ison, who finished third. Mr. Ison then went on to win the second race, with Messrs. Moreno and Miole close behind. The third race was dominated by Mr. Moreno with Messrs. Ison and Miole rounding up the second and third spots.

Russel Reyes drove strong and steady to maintain his lead after starting from pole position in the first race of the second batch, which he won. Matthew Ang and Stanley Golez followed right behind in second and third. The second race saw similar results to that of Batch One, with Mr. Ang taking the win, and Messrs. Reyes and Golez in second and third, respectively. The same three e-racers dominated the rainy third race, with Russel Reyes in first place, Matthew Ang in second, and Stanley Golez in third.

In the finals, three different tracks with three different cars were introduced for the three race heats. E-racers sped through the Deep Forest in the Toyota GR Yaris RZ “High Performance” ’20 for the first race, the Brands Hatch Grand Prix Circuit in the Toyota GR 86 RZ ’21 for the second race, and finally, the Fuji International Speedway in the Toyota GR Supra Racing Concept ’18.

With 10 of the best players remaining, tension was high with the races seeing more wheel-to-wheel action as the top e-racers pushed their limits on the virtual racetracks. Players who were put in different batches in the earlier races faced each other for the first time in the finals.

Luis Moreno emerged as TGR GT Cup PH 2024 champion with 75 points, Enzo Ison in second (48 points), and Russel Reyes in third (45 points). The trio will represent Team Philippines at the Asia Finals in Malaysia on Oct. 13. Special awards were also given to Mr. Ison for Driver of the Day and Matthew Ang for Fastest Lap.

Toyota Gazoo Racing GT Cup Philippines is presented by Petron and GT Radial, in cooperation with Seiko. This event is also supported by Toyota Financial Services Philippines, myToyota Wallet, Denso, AVT, 3M, ROTA, Tuason Racing, OMP, and Kinto One.

BNPLs: Tapping the potential of un(der)banked young Filipinos

FREEPIK

By Abigail Marie P. Yraola, Deputy Research Head

THE financial technology (fintech) scene in the Philippines has been booming with growth as more consumers turning to digital payment platforms to manage funds and avail financial services.

A couple of years back, it could be somehow traced to the pandemic prompting this shift of consumers adopting to digital payments and, since then, have turn to these services.

In the latest Philippines Fintech Report (https://tinyurl.com/286ryvut) published by Fintech News Philippines in partnership with Fintech Alliance PH, the country has surpassed its target of digitalizing 50% of digital payments volume based on the 2023 report on E-Payments Measurement of the Bangko Sentral ng Pilipinas.

The report highlighted that at the end of last year, digital payment transactions made up 52.8% of total monthly retail payments in the country, increasing from 42.1% in 2022.

Additionally, the report showed a thriving fintech sector in the country which is supported by robust government support, increasing digital adoption and a strong commitment to financial inclusion.

In the space of digital payments, comes the use of Buy Now, Pay Later (BNPL) services. And it’s no wonder that consumers have been attracted to these providers as they have become increasingly prevalent.

A BNPL is a payment method that enables consumers to make purchases without paying the entire amount upfront, allowing them to pay in installments over time.

The Philippine market has been proven to be a fertile ground for these kind of services with the younger generation most attracted to it.

TAPPING INTO THE PHILIPPINE MARKET
Early this year, a report (https://tinyurl.com/27v5fdq3) published by Euromonitor International revealed that since its introduction in the Southeast Asia region in 2018, BNPL has experienced a significant rise  in popularity, providing consumers with a convenient, flexible and accessible alternative to traditional financial services.

The report also underscored that the region presents promising opportunities for BNPL to expand their operations due to the significant number of unbanked and underserved individuals.

“The Philippines and Indonesia have percentages of unbanked and underserved populations of 76% and 67%, while Vietnam, Malaysia and Thailand follow closely behind with 47%, 40%, and 25%, respectively,” the report said.

By entering these markets, these providers seem an attractive option to fill in the gap for addressing the needs of unbanked and underserved consumers.

Digital Pinoys National Campaigner Ronald B. Gustilo said that consumers use BNPL platforms to purchase goods for they see them as a convenient payment option, particularly for individuals who don’t have the money to pay for the items upfront.

Personally, he does not use BNPL services and prefers to pay for items purchased using credit or debit cards or cash but is aware that many consumers patronize these services.

“BNPLs usually offer fast approval without asking for collaterals and too many requirements to avail their services,” he said in a Viber message.

He added that consumers can make purchases using BNPLs with just a minimal down payment and these are [some] reasons why consumers prefer BNPLs over credit cards and bank loans.

Additionally, he pointed out that the preference over these payment providers over the traditional loan schemes, such as credit cards and personal bank loans, underscores the current economic situation, where the needs of individuals often exceed what they earn or have saved.

YOUNGER GENERATION’S PREFERENCE
Generation Z-ers — those people born between 1997 and 2012 and who represent 32% of Southeast Asia’s population — are reshaping the retail landscape as digital natives, Erwin G. Ocampo, head of product at UnaCash, said in an e-mail.

UnaCash is a BNPL provider in the country, operated by Digido Finance Corp.

Mr. Ocampo added that their heavy reliance on smartphones for social media and online shopping has created unique consumer behavior.

As a result of their financial independence, this certain demographic prefers instant gratification and is likely to adopt digital payment platforms like BNPL.

“This generation is raised in the age of information, making them more empowered to make informed purchasing decisions,” he said.

Mr. Ocampo also highlighted that the “unique financial behaviors and preferences” of the new generation of shoppers have driven the growth of BNPLs in the country.

Anyone would want a convenient, flexible and accessible mode of payment and BNPLs appears to be the best option for that.

Another BNPL provider that tapped into the Philippine market is Neuroncredit Financing Co., Inc.’s Atome PH.

An Atome spokesperson addressed that “popularity” of BNPL to the young consumers can be traced to their experiences of life “firsts” such as job, child, home, among others and may need a way to manage monthly budgets with their salary.

But they also pointed out that given these reasons, the younger generation do not also want to miss out on things to spend such as traveling and purchasing of electronics or such.

For First Digital Finance Corp.’s BillEase’s Chief Executive Officer Georg Steiger, another BNPL provider in the country, consumers are increasingly attracted to BNPL for its transparency and the financial empowerment it offers.

“BNPL services are often available at the point of sale, making them more convenient for immediate purchases and often come with perks such as zero-interest plans and the ability to make smaller, more manageable payments over time,” Mr. Steiger said in an e-mail.

It pointed out that this flexibility is what makes younger consumers drawn to them, where in the latter value financial autonomy and prefer to avoid the long-term commitments associated with credit cards.

BNPLs OVER CREDIT CARDS
Mr. Steiger said that in BNPL services, consumers highly appreciate the clear repayment schedule, which enables them to budget effectively and make informed purchasing decisions.

Additionally, compared with the conventional credit cards which can trap users in a cycle of revolving debt if mishandled, BNPL offers a structured path to financial freedom.

“By breaking payments into manageable installments, consumers can confidently acquire essential items or indulge in desired purchases without the anxiety of hidden fees,” Mr. Steiger said.

Credit cards have been a reliable payment method, but their underlying technology can sometimes leave consumers exposed to security concerns, such as stolen card numbers or unauthorized transactions.

But with BNPLs, it provides a digital native payment solution, featuring enhanced security measures like biometrics within the app, providing peace of mind and minimizing the risk of unexpected charges.

Given these features, consumers are also likely to prefer BNPL for budget management.

Based on a study conducted by UnaCash, four in 10 Filipinos who use BNPL services always use it as a tool for budget planning and management.

It also revealed that 49.6% of respondents have heard of or used BNPL services, while 37.4% have heard about BNPL services but have not used them, which indicates the popularity and awareness of this payment method.

UnaCash’s Mr. Ocampo said that results of the study also depicted that BNPL is an effective budgeting tool.

“This itself is a strong indication that there is market potential for BNPL services in the Philippines as it serves as a tool that allows consumers to have access to certain purchases while segmenting their payment terms,” he said.

For Mr. Steiger, BNPLs are more attractive option for those who are conscious of their budget and helping new-to-credit customers develop healthy borrowing habits and discipline.

“The ability to split payments into smaller, more manageable amounts, helps consumers avoid debt traps and maintain control over their spending,” he said.

Compared with credit cards or loans, these providers provide a clear, upfront payment schedule that makes it easier for consumers to plan their finances.

RISKS AND BENEFITS
But like any other form of payment method, there are potential risks and downsides of using these services.

On the preference over the use of credit cards, Atome said that the key challenge is to provide affordable credit in a careful, risk-managed, and fiscally prudent way, from both a consumer and lender’s perspective.

Atome also underscored the difference of BNPL models from traditional credit cards.

“For BNPL, the moment a user is late with payments, we suspend the account, whereas in credit cards, you can pay minimal sum and continue using the card and get charged high interest on outstanding balance,” Atome said.

This approach prevents the user from accumulating large debts and limits credit exposure.

For UnaCash’s Mr. Ocampo, BNPLs offer flexibility and accessibility in managing finances, which in turn, empowers consumers to make larger purchases without immediate financial strain and contributes largely to credit building.

But he cautioned that responsible usage is essential to avoid potential challenges.

“While it doesn’t require traditional credit history, effective financial planning remains to avoid potential challenges. There is always a way to educate consumers to use BNPL as a tool that can become a valuable asset in modern financial management,” he said.

BillEase’s Mr. Steiger, meanwhile, listed the positive aspects of BNPLs, and why consumers would opt to use it, namely: accessibility, flexibility, and credit building.

The downsides of it, though, include impulse buying, and failure to meet payment deadlines which would result in penalties.

“Consumers may be more prone to overspending due to the perception of deferred payments, which can lead to financial difficulties if no t managed properly.”

Furthermore, he said that when applying for these services, one should consider its financial capability.

Customers should carefully assess their financial situation to ensure they can meet BNPL repayment terms without straining their overall budget.

Choosing the right BNPL provider is also crucial when one is mindful of its interest and fees to prioritize options that offer the most cost-effective solutions.

Consumers should verify the credibility of BNPL providers and ensure they are duly registered under legitimate financial institutions and licensed under government regulatory agencies.

A list (https://tinyurl.com/298jrxdc), provided by the Securities and Exchange Commission (SEC), the regulatory agency supervising the corporate sector, can help consumers choose authorized BNPL services on online lending platforms.

“When considering BNPL, it is essential to prioritize financial responsibility. Consumers must carefully evaluate their budget and spending habits to ensure that they can effectively manage installment payments,” Mr. Ocampo from UnaCash said.

ESTABLISHING BNPL FINANCIAL ECOSYSTEM
“BNPL is playing a key role in expanding financial inclusion in the Philippines, especially for those who are unbanked and underbanked. It can help improve credit building, boost economic activity, and drive competition — resulting in an overall healthy financial ecosystem,” Mr. Ocampo said.

To put it simply, BNPL offers a way to access credit and fully participate in the economy, similar to opening a door to financial opportunities that were previously out of reach.

And a good thing about it, is that it can contribute to building credit histories and by making timely payments, users can improve their credit scores over time.

“This can be a steppingstone to accessing more traditional financial products in the future, such as larger forms of loans or credit cards. It’s a way for individuals to enhance their financial standing and eventually tap into a broader range of banking services,” Mr. Ocampo said.

For Mr. Steiger, BNPL services help promote financial inclusion by providing an entry point to credit for those who may still need to qualify for traditional financial products.

“These services are often integrated with digital platforms, making them easily accessible to those who may not have access to traditional banking services.”

The bottom line, BNPL providers indeed appear to be an option to fill in the gap for addressing the needs of unbanked and underserved consumers.

For Atome, BNPLs, microlending, and insurance are expected to expand.

Additionally, they expect strategic partnerships and collaborations with traditional financial institutions and platforms to provide funding and financing, especially for user segments that are challenging to assess through traditional banking Know Your Customer processes.

Meanwhile, potential developments could include the expansion of BNPL services into new sectors such as healthcare and solar rooftop financing, Mr. Steiger said.

As BNPL continues to grow in popularity, partnerships between BNPL providers and traditional financial institutions, offering consumers a wider range of options and potentially more competitive terms may be anticipated.

“BNPL providers such as ourselves are more likely to forge strategic partnerships with retailers, banks, and other broader financial institutions to maximize our financial solutions,” Mr. Ocampo said.

He added that with significant developments underway for BNPLs, competition among these providers is expected to intensify, leading to lower fees and better terms for consumers.

But in turn, this may be beneficial as it aims for technological advancements that will bring innovations and personalized offerings based on the needs of the consumers.

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