JOLLIBEE Foods Corp. (JFC) expects achieving payback on its acquisition of South Korea’s Compose Coffee within five to six years, a company official said.
“Even if we take a very modest growth rate, just based on new franchisees, roughly 30 to 40 new franchisees per month are opening stores. If you just add that in, you get to a decent growth rate. With that growth rate, there’s no reason why, in five to six years, we should not be able to hit payback on this (Compose Coffee),” JFC Chief Financial Officer Richard Shin said in a virtual briefing on Thursday.
“In terms of reaching break-even, because it’s quite lucrative and profitable purely from the cash that it generates, we will likely have a very quick payback. We’re looking at it more from the return on invested capital (ROIC) perspective,” he added.
Earlier this month, JFC announced the acquisition of Compose Coffee for $340 million to bolster the company’s coffee and tea business. The company expects to complete the acquisition by the first half of August.
Mr. Shin said that JFC has no plans to introduce Compose Coffee in other countries, such as the Philippines and China, as the company is focused on expanding in South Korea.
Compose Coffee had 2,612 stores as of June and is ranked second in the value coffee segment industry in terms of the total number of franchisees, with over 1,900 franchise stores by the end of 2022.
“We see significant growth opportunities just in South Korea. Compose Coffee has an 8% market share. There’s plenty of focus and opportunity. We’re very focused on South Korea for at least the next five years,” he said.
“If there are experienced individuals who would like to explore China as franchisees, we wouldn’t necessarily say no, but we are not investing our capital in that direction. China is a tough market,” he added.
Mr. Shin also said that Compose Coffee will not compete with JFC’s other existing coffee brands, such as The Coffee Bean & Tea Leaf (CBTL), as the latter caters to the premium segment while the former serves the value segment.
“We don’t see it as competition. We actually see it as better synergy and a better portfolio play for us with coffee in South Korea because we now have the value segment, which we don’t have any brands in, and the well-established CBTL,” he said.
At the same time, he said that South Korea is not among the new markets being considered for the Jollibee brand due to differing palates.
“It’s a massive segment, and if Jollibee ever wants to enter South Korea in the fried chicken space, we really have to know what we’re doing because it’s a very different palate. Koreans have a very different palate for fried chicken,” he noted.
“Although we think about it once in a while as a new market entry for Jollibee, South Korea is not necessarily a top priority due to that intense, competitive market. Fried chicken is a bit tougher. We need to do our homework a little more before entering South Korea with Jollibee,” he added.
On Thursday, JFC shares fell by 1.75% or P4, ending at P225 apiece. — Revin Mikhael D. Ochave
The coronavirus disease 2019 (COVID-19) pandemic drastically altered the global economy, with the automotive industry experiencing significant disruptions.
For instance, the onset of the pandemic led to a sharp decline in new car sales. According to S&P Global Mobility, worldwide car sales dropped to 63.8 million in 2020. Factory shutdowns, supply chain interruptions, and decreased consumer spending contributed to a significant drop in automotive production and sales. In addition, the global chip shortage, caused by a lack of demand in 2020 during the pandemic followed by a sudden rebound in 2021, has made it harder for manufacturers to meet the new car demand.
Despite the challenges, the automotive industry has demonstrated resilience. In 2021, as restrictions eased and economies reopened, car sales began to climb. According to a report from S&P Global Mobility, the industry is still on track for a substantial recovery after the pandemic, with forecasts predicting 88.3 million new vehicle sales worldwide in 2024.
In the Philippines, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has set a sales target of 468,300 units for the year, representing a 9% increase from the previous year’s sales of 429,807 units.
According to Kantar, 63% of consumers actively seeking a new car are from Generation Z, while only 29% belong to the Baby Boomer generation. The trend highlights that younger consumers are more inclined to purchase vehicles; whereas many Boomers are satisfied with their current cars, with 61% expressing no desire to upgrade.
Meanwhile, younger consumers, particularly millennials and Gen Z, are more likely to prioritize technology and sustainability over conventional demographic factors, indicating a changing landscape in consumer preferences, where technological advancements and eco-friendliness are becoming more critical than age or income alone.
Consumers shift towards EVs
unsplash / Zapte
Electric vehicles (EVs) are powered entirely or partially by electricity, utilizing an electric motor instead of an internal combustion engine. Because of the increasing challenges in fossil fuels and climate change, the adoption of electric vehicles is seen as a critical strategy for the transportation sector to reduce emissions and air pollution.
The United Nations Environment Programme (UNEP) emphasized that electric mobility can significantly lower greenhouse gas emissions, especially in light-duty vehicles, which represented nearly 50% of transport emissions in 2018.
According to the International Energy Agency, the global EV fleet consumed about 130 terawatt-hour (TWh) of electricity in 2023, displacing approximately 0.9 million barrels per day of oil consumption in 2023. To align with the Net Zero Emissions (NZE) scenario, EVs must displace around 8.2 million barrels per day by 2030.
With sustainability in mind, electric car sales reached 14 million units in 2023, accounting for 18% of total sales, from 4% in 2020. This growth trajectory indicates that EVs are becoming increasingly mainstream, with projections suggesting that by the end of 2024, electric car sales could account for around 17 million in sales or more than 20% year-on-year (YoY) increase.
The 2024 Deloitte Global Automotive Consumer Study reveals that a primary driver for consumers considering EVs is the potential for lower operating costs. In fact, many respondents indicated that the desire to reduce fuel expenses outweighs environmental concerns as a motivation for adopting electrified vehicles. In markets like India and Southeast Asia, approximately 63% and 68% of consumers, respectively, cited lower fuel costs as a key reason for their interest in EVs.
Similarly, Kantar reported 59% of car owners are interested in purchasing hybrid or electric vehicles for their next car, while 41% of first-time car buyers share the same interest.
Increasing focus on connected cars
A recent survey from McKinsey & Company revealed that car buyer preferences are increasingly focused on connectivity features, which are becoming essential for attracting customers in a competitive market.
The report stated that majority of consumers express a strong preference for vehicles equipped with advanced connectivity features. It is predicted that over 90% of vehicles sold by 2030 are expected to be connected, from the current 50%.
Many consumers are also open to changing automotive brands for better connectivity options. In Asia, 55% of respondents indicated they would switch brands for superior connectivity.
Furthermore, preferences for specific connectivity features vary significantly by region. For instance, consumers in Asia show a strong inclination towards advanced technologies, while customers from Europe and the United States favor comfort and convenience features. Urban populations are also more likely to consider connectivity features compared to their rural counterparts.
The impact of price
freepik / vectorjuice
Following the COVID-19 pandemic, the automotive market has experienced fluctuations in pricing, which have dramatically affected consumer purchasing patterns. In fact, vehicle prices remain above pre-pandemic levels.
According to Bankrate, a US-based consumer financial services company, the average price for a new vehicle was approximately US$47,936 in October 2023, a stark increase from around US$37,736 in March 2020. The price surge is also coupled with rising interest rates, which averaged 7.53% for new car loans, leading to an average monthly payment of $961 — over $200 more than pre-pandemic levels.
The Consumer Price Index (CPI) for used vehicles also reflects a 35% inflation rate since early 2020, indicating that consumers are facing higher costs across the board.
Moreover, Deloitte reported that consumers express hesitation about transitioning from internal combustion engines (ICE) to EVs due to price concerns. For example, a notable portion of consumers in developed markets, including the US and Germany, are still inclined towards ICE vehicles, primarily due to affordability issues.
Cars Commerce’s 2024 Industry Insight Report stated that the anticipated increase in vehicle production this year may produce a surplus of new cars, which could lead to greater discounts and incentives for buyers. The shift is expected to create a more competitive environment, allowing consumers to negotiate better deals.
Vehicles priced under $30,000 have seen a 63% increase in listings year over year, which indicates a shift in consumer preference towards budget-friendly options.
Social and psychological influence
freepik
When it comes to gathering information for their purchase decisions, current car owners and non-owners exhibit contrasting behaviors, according to Kantar.
Existing car owners tend to rely more on traditional sources, particularly car dealerships, for information. In contrast, first-time buyers prioritize the experiences and recommendations of friends and family, indicating a shift towards social influence in the decision-making process.
On the other hand, the urgency of purchasing decisions varies significantly between current car owners and non-owners. Kantar’s research indicates that 68% of current car owners plan to buy a new vehicle within one to two years, reflecting a proactive approach to upgrading or replacing their vehicles. Conversely, only 42% of non-owners exhibit similar urgency, highlighting a more cautious approach among first-time buyers.
Meanwhile, customer perceived value is a significant determinant in the car purchasing process. It encompasses various attributes, including brand reputation, price, quality, design, utility, and technical considerations. However, the concept of value remains rooted in psychology, according to Harvard Business Review. — Mhicole A. Moral
AMERICAN rapper Snoop Dogg said he is ready to learn “some new tricks” when he collaborates with Gen Z social media influencers to showcase the Paris Olympics to a younger generation.
The 52-year-old hip hop legend-turned special correspondent for NBCUniversalhas become a cornerstone of the media company’s effort to energize its coverage of the Games and inject pop culture and celebrity into the United States broadcast.
He will explore Paris landmarks, attend competitions and provide regular reports during the network’s prime-time coverage.
“I have a house full of Gen Z,” Snoop said during a press briefing, referring to his children and grandchildren. “I love getting on the same page with them. I’m an old dog who can learn new tricks.”
NBCUniversal is sending 27 influencers to the Olympics to film their own content for platforms including Snapchat, TikTok, and YouTube to reach young fans who have grown up consuming content on their phones.
Snoop said viewers will see him embed with Team USA athletes, try out the sports himself and highlight athletes’ personal stories.
“It’s going to be a little more insightful, because I’ve spent time with these athletes and some of their families as well,” he said.
The rapper will also be among the torchbearers to carry the Olympic flame in its final stretch before the opening ceremony on Friday.
“I look at this as a prestigious opportunity. I’ll be on my best behavior,” Snoop said. — Reuters
METRO Pacific Investments Corp. (MPIC) may reconsider acquiring Ayala Corp.’s stake in Light Rail Transit Line 1 (LRT-1) due to unresolved valuation issues, according to its chairman.
“We talked to them before, but there’s a bit of a gap in valuation, and I do not know how we can bridge it,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan told BusinessWorld recently.
In February, MPIC said it was exploring the possibility of acquiring Ayala’s stake in LRT-1, following Ayala’s divestment plan announcement.
According to Mr. Pangilinan, MPIC’s interest in acquiring Ayala’s stake was driven by the potential opportunity to participate in the planned auction for the Metro Rail Transit Line 3 (MRT-3).
The Transportation department is also evaluating MPIC’s unsolicited proposal to integrate the operations of MRT-3 and LRT-1.
Earlier this year, Ayala expressed optimism about completing its $1-billion divestment plans within 2024.
Ayala intends to raise $1 billion by divesting its shares in water and infrastructure assets.
The company hopes to close the sale of its 35% stake in LRT-1 within the year to realign its portfolio in property, telecommunications, and energy.
MPIC, through its unit Metro Pacific Light Rail Corp., holds 35.8% stake in Light Rail Manila Corp. (LRMC), the operator of LRT-1.
The remaining shares in LRMC are owned by Sumitomo Corp. at 19.2% and Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) Pte. Ltd. at 10%.
MPIC is one of the three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
Album Review memory card likewise2000 A Spur of the Moment Project
THE BEST part about being a musician today is the accessibility to a plethora of tools and knowledge found on the internet. Bedroom pop and DIY musicians can make music of any genre with digitally generated sounds complementing their real voices and instruments, be they teenagers trying things out or longtime artists stuck at home.
For Clarence Garcia, guitarist of the Filipino instrumental rock band tide/edit, his computer contained all the tools he needed to kickstart his solo project as likewise2000. His first album under the moniker, titled memory card, was released on July 5.
As its title suggests, the album is a trip down memory lane to the simpler and more blissful times of the early 2000s. While still anchored in the indie subgenre of math rock, with Mr. Garcia using complex, atypical rhythms in his guitar playing, the instrument’s blend with electronic elements produces a unique concoction of contemporary sensibilities.
To evoke a lighter, freer time, the first track, “one second,” begins with bright guitar notes grounded by a dance beat. Its hopeful tone makes it a great candidate for a morning routine playlist.
The more melancholy melody of “second one” has an electronic, lo-fi tune lead into an infectious guitar melody. It is the opposite of straightforward, however, with Mr. Garcia clearly having a fun time playing with the software available to him, be they guitar effects emulators or electronic samples.
Meanwhile, “good good good” is a track that highlights the best of his instrumental rock capabilities. Complex guitar melodies with electronic effects added on make a cozy affair, reminiscent of the familiar glitches in an old Nintendo game. It’s like the eloquently played guitar notes are rendered imperfect in a way.
The fourth track, “white corolla,” is a short but sweet melodic guitar snippet extended to include a poignant electronic piano part in the middle. The effects used make the guitar notes lo-fi and overly crunchy to the ears.
Meanwhile, “mental breakdance” is the fun little upbeat tune of the album. The electric guitar is most satisfying to listen to, and the beats often intensify then give way to samples, piano notes, and tinkling electronic game sounds.
Vocalist thesunmanager comes in for the sixth track, “visual novel,” providing a softness to the music. But instead of a welcome break from the electronica, her voice is masked by a gritty, lo-fi quality in line with the album’s theme.
The seventh piece, “jpeg violence,” is memorable in that Mr. Garcia’s guitar playing sounds like it dances with the samples, beats, and piano notes. It cements how this album truly is a complex, digital-era symphony of nostalgia for an analog time.
An easy favorite is “ez,” which utilizes more traditional drum sounds that makes the track evoke standard post-rock. The guitar is as dynamic as ever, having upbeat drums to bounce off of amid the electronic samples.
Closing off the album are “centimental,” a more low-tempo, sentimental-sounding guitar melody carried forth by melancholy electric piano notes and bright drum claps; and “tree,” which aptly sounds most like a Playstation game theme transposed into a guitar melody.
While memory card is nothing dazzling, it is a comforting collection of snippets a musician crafted idly while at home on his computer. The beats and effects ground the little doodles into fully realized tracks, Mr. Garcia’s instrumental prowess as a guitarist shining amid the electronic blend.
Overall, the album is a welcome nostalgic soundtrack created for all of us who are extremely busy and burdened, who hope to look back, perhaps not actively, but through the little tunes we listen to every now and then.
LISTED home and building solutions provider Concepcion Industrial Corp. (CIC) said its second-quarter (q2) consolidated earnings rose two-fold to P541 million, surpassing pre-pandemic levels.
The growth is attributed to “well-executed sales strategies, enhanced customer engagement, and strong market demand fueled by hot weather conditions,” CIC said in a stock exchange disclosure on Thursday.
Including its associate Concepcion Midea, Inc. (CMI), CIC’s second-quarter net sales rose by 46% to P7.7 billion.
“CIC achieved a significant milestone in the second quarter. We have surpassed our pre-pandemic performance and set new records for sales and earnings. The hot weather worked in our favor, allowing us to solidify our market position and demonstrate the effectiveness of our strategies, delivering on our commitments to stakeholders,” CIC Chief Finance and Operating Officer Rajan Komarasu said.
Net sales of CIC’s consumer business grew by 42% to P4.6 billion due to strong demand for household products.
“Air conditioning product sales rose 43% due to increased demand during the hot summer, while refrigeration product sales grew by 44%, fueled by strong demand for light commercial products and no-frost refrigerators. Laundry product sales recovered in the second quarter, posting a 49% increase compared to last year,” it said.
Net sales of CIC’s commercial business increased by 25% to P1.4 billion, led by stronger heating, ventilation, and air conditioning equipment sales.
For the first half, CIC said its consolidated earnings doubled to P726.7 million. Net sales, including CMI, rose by 41% to P12.7 billion.
“This year has been a testament to the principle that ‘opportunity meets preparation,’ and together, we have seized that opportunity with outstanding results,” CIC Chief Executive Officer Isaias Ariel P. Fermin said.
“We prepared meticulously, focusing on channel execution, innovation, quality, and customer service. We were ready to meet the natural demand for our products,” he added.
CIC shares were unchanged at P12.30 per share on Thursday. — Revin Mikhael D. Ochave
Rewired. Volunteer engineers of AboitizPower’s Visayan Electric have modernized the electrical wiring systems of 5,311 classrooms and school facilities, minimizing the risk of fire hazards and electrocution accidents.
AboitizPower gives a helping hand to students and teachers returning to the classroom
Moved by the belief that Filipino students and their teachers should be in a safe and modern learning environment, Aboitiz Power Corporation (AboitizPower) is helping meet the needs of some local public schools across the country.
Since 2010, Visayan Electric Company, Inc. (Visayan Electric), an AboitizPower distribution utility, has embarked on a school rewiring project together with Aboitiz Foundation, Inc. to replace outdated electrical wiring systems in public schools within its franchise area. Visayan Electric serves the cities of Cebu, Mandaue, Talisay, and Naga, and the municipalities of Liloan, Consolacion, Minglanilla, and San Fernando.
For over a decade, Visayan Electric’s own engineers have allocated at least two weekends every year to do the rewiring themselves, conforming with industry standards and significantly reducing the risk of fire hazards and electrocution accidents.
To date, a total of 5,311 classrooms and school facilities — equivalent to 146 public elementary and high schools — have been fully rewired to modern standards. The program continues in 2024, with seven schools chosen as beneficiaries.
Supplementing the effort, Visayan Electric also supports the Department of Education’s Brigada Eskwela program, a nationwide initiative to prepare public schools for a new school year, by annually mobilizing its team member volunteers and resources to help repair damaged school facilities, as well as clean and repaint classrooms and common areas.
Like Visayan Electric, Subic EnerZone is also set to elevate its contributions through a Brigada Eskwela Plus! Beyond the usual painting and cleaning initiatives, Subic EnerZone will also check the electrical system and repair the computer laboratory of their adopted school. The Company will also do a workshop on basic electrical information, electrical safety, and energy saving tips.
AboitizPower’s Subic EnerZone operates the distribution systems of the Subic Bay Freeport Zone, covering Zambales and Bataan.
Corporate social responsibility
Other AboitizPower business units have also exercised their corporate social responsibility to schools within their selected communities.
For the coming school year, Cotabato Light and Power Company (Cotabato Light) will also engage in Brigada Eskwela by providing material support and helping repair and clean an elementary school in Cotabato. Cotabato Light provides electric power to Cotabato City, including the surrounding municipalities of Datu Odin Sinsuat and Sultan Kudarat in Maguindanao.
To encourage interest in the power sector and expand opportunities in the area, the AboitizPower distribution utility will also give financial assistance to underprivileged high school students taking the Science, Technology, Engineering, and Mathematics or STEM strand. Grade 12 students will also be offered an opportunity to participate in a work immersion program within Cotabato Light.
No school left behind.Hedcor aims to encourage students in La Trinidad, Benguet to pursue home economics and physical education extracurriculars through the donation of cookery essentials and sports equipment.
Meanwhile, Hedcor, a renewable energy subsidiary of AboitizPower, also lent its support to the Brigada Eskwela program by financing the repainting and cleaning of classrooms, the repair of desks and chairs, the restoration of facilities, and the enhancement of safety in selected schools within its host communities in the Cordilleras. Hedcor also organized skills-sharing and capacity-building workshops for the teachers and staff on maintenance, repairs, and information technology literacy.
In La Trinidad, Benguet, Hedcor supplied classroom materials, cookery essentials, and sports equipment and athletic gear to four different schools to encourage its students to pursue home economics and extracurricular activities. In several schools in Sabangan, Mountain Province, Hedcor donated Smart TVs to make the classroom more interactive and engaging.
With the same intention, Advent Energy, Inc. (AdventEnergy), together with its retail electricity customer Pascual Laboratories, donated a Knowledge TV, a portable media player, and other learning equipment to an elementary school in Balagtas, Bulacan. AdventEnergy is an AboitizPower subsidiary engaged in the business of a retail energy supplier.
No school left behind. The adopt-a-school program between SacaSun and the remote Balabag Elementary School kicks off in San Carlos City, Negros Occidental with the donation of equipment needed by teachers who choose to stay overnight.
At the same time, through an adopt-a-school program, San Carlos Sun Power, Inc. (SacaSun) and the Aboitiz Foundation donated much-needed equipment — including solar lamps, a water tank, bunk beds, canopy tents, and cement — to an elementary school in San Carlos City, Negros Occidental. Located in a remote area, the school identified the items as among those needed by its teachers, some of whom stay overnight and spend most of the week in the school.
SacaSun is AboitizPower’s first solar power plant venture, operating with a 59-MWp utility-scale solar photovoltaic facility in San Carlos City.
With the collective resources and efforts of its business units in the grassroots, AboitizPower helps ensure that classrooms are well-equipped and the future of the students is set bright.
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ATOME FINANCIAL expects the Philippines’ buy now, pay later (BNPL) market to grow “substantially” this year amid the low credit card penetration rate and increasing digitalization in the country.
“The BNPL industry in the Philippines is poised for substantial growth, driven by increasing consumer adoption of mobile-first digital financial services, a growing middle class and young, mobile-savvy internet population,” an Atome spokesperson said in an e-mail interview earlier this month.
Citing industry data, Atome said credit card penetration in the Philippines was just at around 2% in 2022. Meanwhile, debit card ownership is at almost 10 times the number of credit cards in force, it noted.
“Cash is still the most prevalent mode of payment, although digital is catching up. What this means is there is a sizable credit crunch, especially among the underbanked who need it the most,” Atome said.
Atome’s in-house data showed their accountholders mainly use their cards for bills payments, groceries, and e-commerce purchases.
“We have seen very healthy organic adoption for Atome Card in the Philippines, growing at over 20% month on month in terms of cardholder base. We also see very high daily activity, with many Filipinos using the card for utility and telephone-communication bills, household groceries and e-commerce purchases, and can even be used overseas,” it said.
“So, the key is how to provide affordable credit but in a careful, risk-managed and fiscally prudent way, from both a consumer and lender’s perspective,” it added.
Atome said it will prioritize enhancing its BNPL card as their customers are asking for higher credit limits.
“We are exploring how to do this in a fiscally prudent, risk-managed and responsible way. At the same time, we will continue to invest in financial literacy and education,” it added.
The company will also look to grow its loan book through Atome Cash.
Atome will also sell embedded insurance to provide more comprehensive financial cover and protection for Filipino users through its partnership with Chubb. In March, Atome announced that it inked a regional partnership with the global insurer, with two insurance products called Bill Secure and Shopping Secure expected to be rolled out this year.
It added that it will expand its e-commerce partnership with Lazada and is also looking to partner with other platforms.
In June, Atome secured a three-year term loan facility from a consortium led by EvolutionX Debt Capital to launch new products in the Philippines, Singapore, Malaysia, and Indonesia.
Atome Financial, which is part of Singapore-based Advance Intelligence Group, is active in the Philippines as a BNPL firm.
Its full-year operating income doubled to $170 million in 2023, mainly driven by its BNPL business, it earlier said. — Aaron Michael C. Sy
As the world tries to combat climate change and global warming, reducing carbon emissions in all sectors of society is essential in reversing their adverse effects. Responsible for more than a quarter of greenhouse gases in the atmosphere, transportation and logistics is driving towards decarbonization primarily through the use of electric vehicles (EVs).
The transition to these zero-emission automotives decreases the world’s carbon footprint significantly and paves the way to a greener, cleaner, and more sustainable future for the next generation. Due to growing awareness and concern for climate change, more and more people are switching to greener cars.
In the Philippines, the EV market is starting to become competitive as sales skyrocket. According to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), more than 10,000 EVs were sold last year, a tenfold increase from just over 1,000 in 2022.
Among these 10,000 models bought, hybrid electric vehicles (HEVs) accounted for most of the sales volume with 9,293 units purchased, while battery electric vehicles and plug-in hybrid electric vehicles (PHEVs) taking up only 462 and 106 units purchased, respectively.
With this growing preference for zero-emission automotive, President Ferdinand R. Marcos, Jr. directed the Department of Energy (DoE) and other relevant government agencies to help in the growth of the electric vehicle industry.
Focused on the integration of e-vehicles into the public transportation sector, the government has planned through the Comprehensive Roadmap for Electric Vehicle Industry (CREVI) for EVs to compose at least 50% of vehicles on the country’s roads by 2040.
In this regard, Mr. Marcos, as the chair of the National Economic and Development Authority (NEDA) Board, expanded the scope of Executive Order (EO) No. 12 on May 15. Originally, the order reduced the tariffs imposed on fully electric vehicles from 5% to 30% to zero until 2028.
Due to the expansion of the EO, all eco-friendly vehicles including PHEVs, HEVs, e-motorcycles, and e-bikes are tariff-free. The decision aims to cut the prices of these types of vehicles as well as encourage Filipinos and industries in the country to drive greener.
Taking the lead in the switch to EVs, the President ordered concerned government agencies to acquire a significant number of EVs for government use. Given a thumbs up by the Department of Budget and Management and the DoE, Mr. Marcos wants 10% of the government fleet to be EVs with corresponding charging stations for those vehicles.
Following these developments, it was recently announced that a modern EV station complete with charging terminals and a retail center will soon rise in New Clark City. Double 11 Properties Corp., in partnership with the Bases Conversion and Development Authority (BCDA), intends to build the development which is expected to house over 20 retail stores and offices, serving an estimated 200,000 motorists annually and creating about 500 jobs.
Philippine logistics company Mober’s expanded EV fleet
Logistics firms in the country are also integrating more EVs into their fleet. Logistics company Mober expanded its EV fleet to 60 vehicles this year through funding from conglomerate RT Heptagon Holdings (RTHH). The move aims to fast-track the integration of electric vehicles (EVs) into their fleet and to become one of the leaders in green logistics in the Philippines.
On the global stage, almost 14 million new EVs were sold globally in 2023 bringing the total number of registered green automotives on the roads to more than 40 million according to the International Energy Agency’s (IEA) Global EV Outlook 2024. These purchases equal 18% of all vehicles purchased last year.
Additionally, the IEA predicts that market shares of EVs in some of the world’s biggest economies could reach up to 45% in China, 25% in Europe, and over 11% in the United States in 2024. In the Southeast Asian region, EV sales grew as well specifically in Vietnam and Thailand where electric car purchases account for 15% and 10% of all automobiles sold, respectively. Overall, these regions comprise around 65% of all car sales worldwide.
Furthermore, data from the agency indicates that the EV market could keep growing this year and reach more than 17 million units sold, which will be equivalent to one in five cars sold globally. By 2035, the IEA noted that “every other car sold globally in 2035 is set to be electric” based on today’s energy, climate, and industrial policy settings.
Meanwhile, Bloomberg mentioned several global EV trends that could be game-changers in the market for the coming years. The media company said that battery technology in electric vehicles is rapidly improving, leading to longer ranges, faster charging times, and more sustainable energy storage. In addition, more and more charging stations are becoming accessible to the public with over 4 million public charging points installed around the world.
These trends are expected by Bloomberg to persist throughout the year and set the stage for 2025 and 2026 when brand new cheaper models are set to hit the global market.
While the effects are still gradual and barely felt, these initiatives, investments, and public interest in electric vehicles are beginning to show promising results environmentally. A study published in the British weekly scientific journal Nature shows that EVs do indeed reduce carbon emissions. The study indicates that the average monthly reduction rate of greenhouse gases is 9.47% with reductions from each vehicle ranging from 8.72 kg to 85.71 kg of carbon monthly.
However, electric cars, despite being climate-friendly, still take a toll on the environment. In a report released by the Pulitzer Center, the demand for nickel, which is used to make batteries for EVs, is skyrocketing and is expected to grow by 2030 to at least 10 times what it is now. This has led to expanded mines which come at the expense of the world’s few remaining rainforests.
The transition to EVs represents an important step in combatting climate change and improving air quality if done responsibly. With the Philippines and the rest of the world rapidly switching to eco-friendly vehicles, the drive towards a greener future has been revved up through electric vehicles. — Jomarc Angelo M. Corpuz
“VISION: PARADIGM” at Art Lounge Manila at Molito Lifestyle Center in Ayala Alabang, Muntinlupa gathers two generations of artists inheriting the modernist legacy of National Artist Victorio Edades and the original Thirteen Moderns such as Carlos “Botong” Francisco, Vicente Manansala, Cesar Legaspi, Diosdado Lorenzo, and Anita Magsaysay-Ho.
Organized by the University of Santo Tomas (UST) Atelier Alumni Association, Inc., the exhibit features alumni from the UST fine arts school, a cornerstone of modern art in the Philippines. It highlights students of Mr. Edades and other pioneering modernists who were faculty members at UST, now considered modern masters, such as J. Elizalde Navarro, Ang Kiukok, Danilo Dalena, Fil Delacruz, Raul Isidro, Justin Nuyda, Manuel Baldemor, Angelito Antonio, Norma Belleza, Remedios Boquiren, Edgar Doctor, Mario Parial, Lydia Velasco, Eduardo Castrillo, Ramon Orlina, and Roberto Chabet. (Mr. Orlina and Mr. Chabet graduated from the old UST College of Architecture and Fine Arts.)
These modern masters have paved the way for contemporary artists from UST, including Jose Tence Ruiz, Roland Ventura, Andres Barrioquinto, Alfred Esquillo, and Janos Delacruz, the latter being the son of Fil Delacruz. Father and son are CCP Thirteen Artists awardees. Janos continues his curatorial work from the previous UST alumni exhibit at Ayala Museum’s ArtistSpace, “Vision: Insight, “held exactly a year ago.
The earlier exhibit highlighted the original “vision” or “insight” of Mr. Edades and the original Thirteen Moderns, as articulated by Mr. Edades in a 1948 article: “Today there are progressive Filipino architects and painters who remain true to their inner vision in spite of ridicule and general indifference. With the reforming zeal of priests or saints, these artists are forcing to the forefront the issue of vitalizing the Philippine art world.”
In the new exhibit, this “vision” has evolved into a “paradigm,” representing a unique perspective and a standard for improvement and excellence. The vision has thus transformed into a mission, guiding new directions in the art world.
Ms. Boquiren’s vibrant portrayals of women and folk scenes capture a profound spiritual essence with inner luminosity. Ms. Belleza, too, illustrates folk-genre scenes of women vendors in her distinctive naif style, using earthy yet sunny colors. Velasco represents modern Filipinos through expressionist figuration, employing raw and earthy tones. Fil Delacruz’s symbolic representations of tropical flora and fauna reflect the modern spirit and creativity championed by Edades. Meanwhile, Doctor’s dynamic urbanscapes, Nuyda’s ethereal innerscapes, and Isidro’s abstracts exploring natural forces all draw inspiration from the modernist legacy established by Mr. Edades.
MODERN ART FILIPINIZED Carlos Esteban Trinidad continues to explore bold abstraction with Our Hope is Near. Jun Impas’ realistic depictions of Cebu folk scenes honor the simplicity of Filipino village life, echoing Mr. Edades’s appreciation for the aesthetic potential in ordinary objects and simple situations. Fashion designer Edgar San Diego celebrates the beauty of the female form in Apat na Dalaga. In Dilag ng Palayukan, retired UST art pedagogue Danilo Santiago also honors the female figure, reimagining it in his vibrant cubist style. For his part, Franklin Cana offers a delicately poignant interpretation of the Mother and Child in Pure Love.
Roderick Macutay, known for his historical canvases, takes a socio-realistic turn in Going Going Gone, a playful yet incisive hyper-realistic depiction of the common people’s galunggong fish. Elmer Dumlao’s mixed-media piece Puwing interprets the experience of a speck of dust in the eye, amplifying it to a monumental scale. Nixxio Castrillo’s sculptures continue the dynamic metalwork tradition of his father, Eduardo “Ed” Castrillo, pushing the expressive boundaries of the medium. Joe Datuin, celebrated for his geometric stainless-steel Olympic rings, presents Dragon Dance, a mixed-media work combining painting and sculpture. Richard Buxani’s sculptures, which celebrate pop culture and Oriental themes, uphold the modernist tradition of experimentation and self-expression.
Other artists in the exhibit are Emman Acacio, Dino Blanco, Yeye Calderon, Danny Castillo, Seb Chua, Ben Cruz, Derrick Macutay, Maryrose Gisbert, Milmar Onal, Patrick Naval, Sonny Palles, Francisco Segismundo, Melchor Segismundo, C.J. Tañedo, Melissa Villaseñor, Maneline Wong, and Rudy Yu.
“Vision: Paradigm” will benefit UST academic scholars. The exhibit runs until July 29. For details call Precy Pineda, 0935-551-1305, or e-mail precy.pineda@galeriefrancesca.com.
CEBU-BASED conglomerate Aboitiz Equity Ventures, Inc. (AEV) reported a core net income of P6.4 billion for the second quarter.
This figure represents a 1% decline from P6.5 billion in the same period last year,the conglomerate said in a regulatory filing on Thursday. The complete financial statement has not yet been made available.
Meanwhile, the conglomerate’s consolidated net income for the quarter was P6.6 billion, a 2% increase year over year.
“Power accounted for 65% of the total net income contributions from AEV’s strategic business units (SBU) for the first half of the year, while food and beverage accounted for 20%,” it noted.
“Net income contributions from financial services, real estate, and infrastructure SBUs were at 18%, 3%, and -5%, respectively,” AEV added.
The conglomerate saw a 10% increase in its consolidated net income to P11.5 billion for the first half, compared with P10.5 billion last year.
Excluding a nonrecurring net gain of P83 million, AEV logged a 2% increase in its core net income for the period, reaching P11.4 billion, up from P11.1 billion in 2023.
Aboitiz Land, Inc. reported a 14% increase in its first-half consolidated net income, reaching P445 million, up from P389 million in 2023.
“This was attributable to higher revenues from the newly launched phases in Pristina and Priveya in 2023, along with additional revenues from higher spot sales and more units sold for the first half of 2024,” the conglomerate said.
The first-half net income contribution from AEV’s food and beverage segment reached P2.8 billion, up more than 15 times from P181 million last year.
The food and beverage segment includes Pilmico Foods Corp., Pilmico Animal Nutrition Corp., Pilmico International Pte. Ltd., which houses Gold Coin Management Holdings Pte. Ltd. and Coca-Cola Beverages Philippines, Inc. (CCBPI).
“This was primarily driven by the food group’s flour and agribusiness divisions, which continued to benefit from stabilizing commodity prices and strategic selling prices adjustments, and fresh contributions from CCBPI, which AEV acquired on Feb. 23,” the conglomerate said.
Aboitiz Power Corp. contributed P9.1 billion to the conglomerate’s first-half net income, down 2% from P9.3 billion last year.
On a stand-alone basis, the company’s net income dropped 4% to P17.1 billion due to the recognition of depreciation and interest for subsidiary GNPower Dinginin Ltd. Co.’s Unit 1 and Unit 2.
First-half earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8% to P36.3 billion due to higher generation portfolio margins.
Union Bank of the Philippines, Inc. posted a 23% decline in its first-half net income contribution, falling to P2.5 billion.
The company recorded a stand-alone net income of P5.1 billion for the first half, down 17% from P6.1 billion last year.
Aboitiz InfraCapital, Inc. reported a P312 million loss for the period, a reversal from the P334 million profit last year, due to higher interest expenses from the company’s increased debt for expansion.
Meanwhile, AEV’s share in the net loss of Republic Cement & Building Materials, Inc. reached P407 million, down 10% from a P452 million loss last year.
“Although margins improved as a result of lower costs for the first half of 2024, relative to the first half of 2023, Republic Cement still incurred a loss as sales volume and selling prices still declined year on year due to weak market demand for cement,” the conglomerate said.
On Thursday, AEV shares rose 1.82% or 65 centavos, ending at P36.30 apiece. — Revin Mikhael D. Ochave
Let’s give it to President Ferdinand Marcos, Jr. that indeed “the hard lesson of this last year has made it clear that whatever current data proudly bannering our country as among the best-performing in Asia, means nothing to a Filipino, who is confronted by the price of rice at 45 to 65 pesos per kilo.”
We hope the President succeeds in rallying his fellow public servants to actually muster a whole-of-government strategy and execute it to once and for all bring down the price of rice closer to his campaign promise, and those of the other basic commodities. His rhetoric will truly connect to us. More Filipino citizenry will be buying into his pronouncements with firm conviction. On the other hand, we can only imagine the cost of failure.
In the same spirit, the perceived benefits of POGO (Philippine Offshore Gaming Operators) operations in the Philippines in the billions of pesos in public revenues and nearly half a million jobs created also mean nothing to a Filipino because these on-line gambling operations, “disguising themselves as legitimate entities,” have ventured into illicit areas furthest from gaming, such as “financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture — even murder.” For this reason, it was correct for the President to have directed the total ban on all POGOs in the Philippines. PAGCOR (Philippine Amusement and Gaming Corp.) should have no choice but to implement the presidential order “to wind down and cease the operations of POGOs by the end of the year.”
The applause was deafening, that part of the SONA received a standing ovation.
We are all for it, and as one netizen uploaded his message on the POGO ban: “Wala nang bawian, ha!” (No take-backs.)
Tuloy tuloy na ba ito? (Will this push through?)
Marcos’ directive strikes at the very heart of the POGOs because those that cater mainly to the Chinese market are in the first place illegal. As pointed out by the open letter of 1Sambayan to the President on July 16, a week before the SONA, China through its embassy here declared that “any form of gambling, including online gambling and overseas gambling by Chinese citizen is illegal.”
As such, granting a license to this type of POGOs violates PAGCOR’s own regulations. Under PAGCOR’s Regulation 2, 1Sambayan clarified, licensing of offshore POGOs which websites are accessed within the Philippines or in territories where online gambling is not allowed, is prohibited. In short, PAGCOR requires every offshore operator to cater only to foreign countries where gambling is allowed. A license from their home countries is needed. Since China prohibits gambling, they cannot produce this document and therefore PAGCOR’s license is void.
Nobody knows if the other POGOs owned and operated by non-residents are compliant with such PAGCOR requirements. If PAGCOR missed this prerequisite, there is no guarantee PAGCOR was more than diligent with the others.
The total ban is therefore logical.
Marcos enjoys popular support in this policy reversal on POGOs. 1Sambayan sent an open letter to the President recommending the immediate cancellation of licenses to operate POGOs that cater mainly to the Chinese market. Several business groups supported the economic managers’ recommendation for a total ban of POGOs. They include the Makati Business Club, Alyansa Agrikultura, the Financial Executives Institute of the Philippines, the Foundation for Economic Freedom, the Institute of Corporate Directors, the Justice Reform Initiative, the Management Association of the Philippines, and the UP School of Economics Alumni Association. Other religious and civic groups are also supportive.
They all argued that the contributions of POGOs to the Philippine economy is minimal but with great social cost based on POGOs’ involvement in criminal activities such as human trafficking, kidnapping, money laundering, torture and even slavery. Philippine National Police data shows that more than half of the 31 reported cases of kidnappings in 2022, for instance, were POGO-related. There should be no love lost in the quality of employment in these POGO establishments. Catering to the gambling industry is not the way to help build a strong economy.
More evidence of POGOs’ involvement in criminal activities was brought to light during the Senate investigation of Bamban, Tarlac Mayor Alice Guo and her involvement in Baofu’s Zun Yuan Technology, Inc., a shady POGO operator. This POGO employed nearly 700 workers of different nationalities including Filipinos, Chinese, Vietnamese, Malaysians, Rwandans, Indonesians, Taiwanese, and Kyrgyz. The raid by combined police and military forces discovered that the offshore operators were engaged in cybercrimes, qualified human trafficking, a pork barrel scam, and money laundering, among others.
Claiming she was of modest means and origin, Mayor Guo protested the decision of the Court of Appeals to freeze her assets and those of her associates. Freeze orders covered assets consisting of 90 bank accounts across 14 financial institutions, several real estate properties, and high-value personal properties such as luxury and sports vehicles and a helicopter. This freeze order was issued to prevent the dissipation of such assets should the case drag. The Bamban mayor was also suspended based on a graft complaint filed against her by the Department of the Interior and Local Government.
To be sure, the President’s directive is predated by a bill filed by Senator Sherwin Gatchalian in May which sought to repeal the taxability of POGOs pursuant to RA 11590, “the only law that acknowledges and legitimizes POGO operations in the Philippines.” This bill outlaws and prohibits offshore gaming operations. The senator invoked various police raids that proved POGOs were indeed involved in various criminal activities.
Finance department data also supports the bill. The economic benefits cited were in the vicinity of around P140 billion annually, but this could be overshadowed by the reputational cost of foregone potential investments and tourism revenues of about P148 billion. Law enforcement also comes at a cost. Thus, net gain is not even a fraction of GDP.
It’s a sad commentary that without the President’s decision to eliminate POGOs, measures with the same intent pending in the House of Representatives could have gathered dust forever. An enabling law, just like the Gatchalian proposal, should cover “all bases,” if this is to be a legacy of the President. It took House Speaker Martin Romualdez’ push to get the bills previously filed by Manila’s Rep. Benny Abante, Cagayan de Oro’s Rufus Rodriguez, and the Makabayan bloc out of the House’s games and amusements committee into a consolidated bill.
What is the wild card in this POGO story?
Some quarters have suggested using the Bamban mayor to flush out the bigger fish on the food chain. Unless she cooperates, the Presidential Anti-Organized Crime Commission (PAOCC) is not likely to qualify her as state witness. PAOCC seems to maintain its position that Guo is “the highest so far sa mga identified natin, hawak natin (the highest so far of those we have identified, that have a hold of).”
What is difficult to explain is how, in the first place, Mayor Guo suddenly appeared in Tarlac, gained Filipino citizenship, operated the biggest POGO in the Philippines, accumulated a vast amount of wealth and resources, and won the mayoralty election. Somebody high up on the food chain, or in the Philippine Government’s bureaucracy, must have given all the green lights in documenting her birth in the Philippines, granting her citizenship, securing the license to operate a POGO, eluding internal revenue assessment, and filing her certificate of candidacy.
Suddenly, everyone woke up clueless about how it all happened.
And we are seeing the start of a pushback. PAGCOR has been reported to be requesting that “12 POGO companies be spared from the nationwide ban.” Their action is as ludicrous as someone proposing to spare a prostitution house from prosecution because it is only part of an elaborate business empire, and that prostitutes and pimps depend on it for their livelihood. “PAGCOR made the appeal since 12 of the 43 POGO companies in the country are merely customer service agents for gaming companies.”
Some members of Congress have also expressed that there is a distinction between POGOs and IGLs or internet gaming licenses. But PAGCOR itself admitted that IGL is just another name for POGO, and that POGOs and IGLs are one and the same. Senate President Chiz Escudero’s point should be the guiding principle: “… if the government really wanted to ban gambling in the country, it must cover all its forms… whether it’s POGO, PIGO, or casinos — let’s ban them altogether if we truly believe that they are not doing any good for our society and our fellow citizens.”
Let’s not just be embroiled in the pluses and minuses of POGOs; it would become data dependent. Gambling is gambling, and if it is used to front for other criminal activities, by all means, let the President’s directive be implemented.
To see how this issue could proceed from here, we should recall what happened in the Senate last year when the bill on the proposed permanent ban of POGO was discussed at the Ways and Means Committee. One lady senator, in explaining her vote, said: “What I’m afraid of is that it will just get through because we know big people are behind POGO. Not only big people in the syndicate but in our government.” (Inquirer.net, Sept. 20, 2023).
Is the die cast?
Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.
